the valley voice for real estate

the valley voice APR- JUN 2024

OFFICIAL PUBLICATION OF SOUTHLAND REGIONAL ASSOCIATION OF REALTORS®

PROUDLY SERVING THE REALTORS® OF THE SAN FERNANDO AND SANTA CL ARITA VALLEYS

success occurs when

opportunity meets

preparation IN THIS ISSUE:

Upcoming SRAR Educational Classes

meeting the changing needs of our members

10 Risk Management Tips for real estate agents

7 Questions

with Kathleen "Kit" Young

- SRAR Education Manager

"the voice for real estate" © 2024 Southland Regional Association of REALTORS® | 7232 Balboa Blvd., Lake Balboa CA 91406 | www.srar.com | 28033 Smyth Drive, Valencia CA 91355

the valley voice "the voice for real estate" 2024 ASSOCIATION OFFICERS

2024 President's Message Q2

Fellow SRAR Members,

Bob Khalsa 2024 PRESIDENT

As we head into the second quarter of 2024, the housing market continues to present both challenges and opportunities for our members. While inventory remains tight, there's positive news on the horizon for buyers. Mortgage interest rates are expected to decline with the anticipated reduction in the federal funds rate. This will make homeownership more attainable for many, potentially increasing buyer activity.

Anthony Bedgood 2024 PRESIDENT-ELECT Howard Katchen 2024 TREASURER BOARD OF DIRECTORS Bryan Almeida Olivia Chavez Winnie Davis Louisa Henry Tisha Janigian Kristen Kalski Vilma Letosky

Rana Linka Rich Pisani Michael Regilio Nancy Starczyk Nicole Stinson Fred Tazartes Stephen DiGiuseppe (LEGAL COUNSEL)

ASSOCIATION EXECUTIVES Valerie Biletsky Interim Chief Executive Officer valerieb@srar.com Elizabeth de Carteret Government Affairs Director elizabethd@srar.com Jessica Cruz Communications Manager jessicac@srar.com Diane Fraser Marketing Manager dianef@srar.com

SOUTHLAND REGIONAL ASSOCIATION OF REALTORS® SAN FERNANDO VALLEY 7232 Balboa Blvd., Lake Balboa CA 91406 (818) 786-2110

www.srar.com SANTA CLARITA VALLEY 28033 Smyth Drive, Valencia CA 91355 (661) 299-2930

However, the low inventory levels we've seen will likely persist. This underscores the importance of exceptional service for both buyers and sellers.

Here at SRAR, we remain committed to providing you with the tools and resources you need to navigate this dynamic market.

Empowering You Through Buyer Representation In a competitive market, ensuring your clients have strong representation is crucial. We strongly advocate for the use of the California Association of Realtors (CAR) Buyer Representation and Broker Compensation form for all transactions. This standardized agreement clarifies the relationship between the buyer and their agent, protects both parties, and ensures a smooth transaction.

Your Value as a REALTOR® Beyond legalities, it's essential that you fully understand the value a REALTOR® brings to a client and a transaction. Clients are making significant financial decisions, and your expertise, guidance, and negotiation skills are crucial to their success. Proficiency in articulating your value in clear, understandable terms to your clients and customers is of the utmost importance. Whether it's navigating complex paperwork, securing the best financing options, or advocating for their needs during negotiations, ensure your clients understand the unique benefits you bring to the table.

Investing in Your Growth SRAR is dedicated to your professional growth. We're excited to announce the launch of a new series of classes focusing on property management and commercial sales and leasing. These courses will equip you with the knowledge and expertise to expand your service offerings and reach new client segments.

Increase your industry knowledge by attending educational sessions offered by SRAR, C.A.R., and NAR. This commitment to continuous learning will not only make you a more valuable resource for your clients but also elevate the professionalism of the entire real estate industry.

Together, let's make this a successful quarter for Southland's real estate community.

Sincerely, Bob Khalsa, President, Southland Regional Association of REALTORS® 2

THE VALLEY VOICE MAGAZINE · APRIL-JUNE 2024

APRIL-JUNE 2024 | VOLUME 2 | NUMBER 2

CONTENTS 8 Empowering Our Members Through Education

Southland Regional Association recognizes the need to support our members through continuing educational offerings.

2 6

Additional Content

President's Message

4 CRMLS Marketwatch Report 2024 1st Quarter Los Angeles County Statistics.

Bob Khalsa, 2024 SRAR President

5 Monthly Sales & Price Report Market Statistics for San Fernando & Santa Clarita Valleys.

Elevate Your Expertise

Join the Award-Winning C2EX Program

21 Case Study of Code of Ethics C.A.R. Code of Ethics Violation.

7

7 Questions

9

Upcoming SRAR Educational Classes

24 2024 Commercial Class Series Find a Commercial Real Estate class that interests you... or take the entire series.

With Kathleen "Kit" Young

Check out the wide range of classes you can register for NOW!

18 Top Real Estate Hashtags for 2024 Originally published by RentSpree

27 One Day - Two Sessions - One Phenomenal Speaker Chicago-based John LeTourneau, KW Commercial Managing Director shared his expertise on commercial real estate transactions.

28 Santa Clarita Mayor Cameron Smyth visited our office Mayor Smyth shared city updates.

30 2024 SRAR Santa Clarita Valley Platinum Sponsors

20 Attorney Comments

"Shield Yourself: 10 Risk Management Tips for Real Estate Agents" By Jeffrey S. Kahn - Spile, Leff & Goor, LLP

22 Affiliate Column

"Unlock the Hidden Value in Your Life Insurance Policy"

By Irv Selman - Founder, Selman Insurance Services

25 Meet the SRAR 2024 Commercial & Investment Division

Rev up your revenue... opportunities with commercial transactions

26 2024 Q1 SRAR Class Review ON THE COVER Opportunity + Preparation = SUCCESS!

ON THE COVER

SRAR is committed to providing our valued members with continued education and support to navigate any real estate challenges ahead in 2024 APRIL-JUNE 2024 · THE VALLEY VOICE MAGAZINE

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Local Market Update – February 2024

A Research Tool Provided by California Regional Multiple Listing Service, Inc

Los Angeles County Single Family

February

Year to Date

Key Metrics

2023

2024

% Change

Thru 2-2023

Thru 2-2024

% Change

New Listings

3,202

3,484

+ 8.8%

6,689

7,405

+ 10.7%

Pending Sales

2,690

2,173

- 19.2%

5,010

4,534

- 9.5%

Closed Sales

2,074

2,245

+ 8.2%

4,064

4,310

+ 6.1%

Days on Market Until Sale

44

35

- 20.5%

44

35

- 20.5%

Median Sales Price*

$860,000

$950,000

+ 10.5%

$850,000

$925,000

+ 8.8%

Average Sales Price*

$1,347,439

$1,401,415

+ 4.0%

$1,283,409

$1,360,175

+ 6.0%

Percent of List Price Received*

99.0%

101.1%

+ 2.1%

98.8%

100.6%

+ 1.8%

Inventory of Homes for Sale

7,814

6,503

- 16.8%

––

––

––

Months Supply of Inventory

2.5

2.4

- 4.0%

––

––

––

Townhouse/Condo

February

Year to Date

Key Metrics

2023

2024

% Change

Thru 2-2023

Thru 2-2024

% Change

New Listings

1,120

1,329

+ 18.7%

2,342

2,822

+ 20.5%

Pending Sales

933

732

- 21.5%

1,744

1,599

- 8.3%

Closed Sales

753

813

+ 8.0%

1,376

1,533

+ 11.4%

Days on Market Until Sale

44

40

- 9.1%

44

41

- 6.8%

Median Sales Price*

$635,000

$660,000

+ 3.9%

$632,250

$654,990

+ 3.6%

Average Sales Price*

$783,569

$779,855

- 0.5%

$836,654

$799,270

- 4.5%

Percent of List Price Received*

99.3%

100.2%

+ 0.9%

99.0%

99.9%

+ 0.9%

Inventory of Homes for Sale

2,650

2,690

+ 1.5%

––

––

––

Months Supply of Inventory

2.4

2.9

+ 20.8%

––

––

––

* Does not account for sale concessions and/or downpayment assistance. | Percent changes are calculated using rounded figures and can sometimes look extreme due to small sample size.

Median Sales Price - Single Family

Median Sales Price - Townhouse/Condo

Rolling 12-Month Calculation

Rolling 12-Month Calculation

State of Californa Los Angeles County

State of Californa Los Angeles County

$700,000

$1,000,000 $900,000

$600,000

$800,000 $700,000

$500,000 $600,000 $500,000

$400,000

$400,000 $300,000 1-2014

$300,000 1-2016

1-2018

1-2020

1-2022

1-2024

1-2014

1-2016

1-2018

1-2020

1-2022

1-2024

A rolling 12-month calculation represents the current month and the 11 months prior in a single data point. If no activity occurred during a month, the line extends to the next available data point.

Current as of March 15, 2024. All data from the California Regional Multiple Listing Service, Inc. Report © 2024 ShowingTime Plus, LLC.

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THE VALLEY VOICE MAGAZINE · APRIL-JUNE 2024

AS OF 4.2.2024

AS OF 4.2.2024

APRIL-JUNE 2024 · THE VALLEY VOICE MAGAZINE

5

Elevate Your Expertise:

Join the Award-Winning C2EX Program NAR’s free program empowers REALTORS® to excel in today's dynamic market.

The National Association of REALTORS® (NAR) offers a unique program called Commitment to Excellence (C2EX). Unlike traditional courses, C2EX is a self-paced, no-cost program designed to recognize your existing expertise and refine your skills to meet the ever-evolving needs of the industry.

Over 100,000 REALTORS® have already embraced C2EX, and the program has even been recognized with a prestigious industry award for its contributions to professional advancement.

development

• Continual learning: C2EX isn't a onetime event. As industry standards and best practices evolve, new content is continually added to the platform. Additionally, once you've earned your C2EX Endorsement, you'll receive notifications when new resources become available, allowing you to stay at the forefront of your profession.

Here's how C2EX empowers you:

Investing in your professional development is an investment in your future.

“ ” INVESTING IN YOUR

PROFESSIONAL

• Self-assessments: Gain valuable insights into your proficiency in 10 key areas (11 for brokers), including customer service, technology utilization, and ethics.

• Personalized learning: Based on your self-assessment results, C2EX generates a customized roadmap recommending specific experiences and resources to enhance your individual skillset.

Joining C2EX demonstrates your commitment to excellence and sets you apart in a competitive market.

Take the first step towards excellence

today! Visit https://www.nar.realtor/realtorscommitment-to-excellence and explore the C2EX program.

Be an advocate for the future of the

industry. Be committed to excellence. Join C2EX.

Article written by Wendy Furth, Broker/Owner Furth & Associates, and SRAR Member.

Ms. Furth is the 2021 RPAC Trustee for State and Local Campaign Services. She was the RPAC Trustee for the Societies, Institutes and Councils for the National Association of REALTORS®.

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THE VALLEY VOICE MAGAZINE · APRIL-JUNE 2024

n o t h g i Spotl Kit Young

SRAR Education Manager

7

Questions

Member Support Through Continuing Education

1. Focus on emerging trends: The real estate market is constantly changing. Can you tell us about some of the most important emerging trends that SRAR is incorporating into its educational offerings for members?

Technology is growing faster than most can keep up with and SRAR understands this and the critical need for information. We not only offer speakers that are experts in real estate technology, but we also offer several SRAR member benefit platforms that help agents keep up.

Platforms like ROOMVU which provides agents a communication tool that will put you automatically in social media platforms; PHIXER a platform that allows you to do virtual staging and photo “clean-up;” IXACT a powerful CRM tool from Elm Street technologies that gives agents the ability to keep up with marketing communications. All of these have ongoing presentations to keep you “in the know.”

2. Bridging the gap: Are there any educational programs or resources offered by SRAR that can help bridge the gap between new and experienced members?

SRAR offers the ability to get involved on a number of levels from networking meetings that offer dynamic speakers, association committees that invite you to offer ideas and new programs, and educational programs that encourage attendees to interact. Education is, was, and always will be the ultimate bridge between more experienced agents and newer agents. Each agent that attends classes is there for the same reasons – to learn and to grow towards success.

3. Technology and Learning: Technology plays an increasingly important role in real estate. What resources or programs does SRAR offer to help members stay up to date on relevant tech tools?

To try and keep our agents up with the latest technology we do offer monthly classes on benefit platforms that give you a presence on social media platforms, our MLS offers a number of Mobile MLS platforms, we offer classes in Chat GBT, virtual staging, platforms that automate house showings, marketing CRM’s and the list goes on. But along with technology comes the good old door knocking, phone calls, mailers – NOTHING can replace the human touch. Using and learning about the many user-friendly tools available to our members makes even the OLD FASHION way easier!

4. Continuing Education (CE) Requirements: With changing CE requirements can you explain how SRAR helps members navigate these updates and ensure they fulfill their obligations?

To be frank about Continuing Education credit courses, our professional standards department arranges for regular Ethics Training, beyond that we have found that members really can’t beat the California Association of REALTORS® not just for continuing education credits, but they offer a FREE license renewal program! CAN’T BEAT THAT! What SRAR does try, and offer are Designation and Certification classes at discounts to our members. For instance, we have offered First Time Homebuyers Specialist, Probate and Trust Specialist, Accredited Buyer’s Representation Designation, Military Relocation Professional Certificate. What we would like to know is what type of certification/designation class would our members like? I do my best to offer these classes at a discount so more of our members can take advantage of these types of opportunities.

5. Measuring Success: How does SRAR measure the effectiveness of its educational programs and ensure members are getting valuable knowledge?

All knowledge is valuable. Information is only as effective as the person using it and the willingness of the individual to seek it. At SRAR we offer presentations where an agent can learn new tricks, use new tools, understand what is working and what isn’t. I try to combine the “old” with the “new” when seeking out speakers, there is value to be had in both and if a newer agent, or an experienced agent walks away with one piece of information they didn’t have before they walked in, we have provided that agent with valuable tools that will lead to their success. Most importantly, SRAR has done their job – and THAT is what we’re here for!

6. Future of Education: Looking ahead, what are some exciting new initiatives or delivery methods SRAR is considering for future educational programs?

Moving forward SRAR will remain committed to staying on top of new trends, making sure our members are fully advised on the changing real estate environment both legally and in marketing areas. Our hope is to create workshops that will invite agents to“practice” the best ways to work with demanding clients, panel discussions to provide a broader understanding of current events in real estate, market area challenges and exposing agents to the financing options that allow all economic levels of homebuyers to own a home. Agent success depends on providing information and solutions to their clients.

7. Lifelong Learning: The real estate profession demands continuous learning. What advice can you offer SRAR members for making lifelong learning a successful habit?

Real estate IS evolving. It’s evolving with technical tools, it’s evolving with how we deal with clients, it’s evolving in marketing actions and tools. My advice is to continue to go to presentations, many of our presentations are now on zoom, which allows our membership to gain insight and information very easily. You must keep on top of the trends – there is no other avenue to succeed in the real estate arena, period.

APRIL-JUNE 2024 · THE VALLEY VOICE MAGAZINE

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THE VALLEY VOICE MAGAZINE · APRIL-JUNE 2024

SRAR upcoming

2024

EDUCATION HIGHLIGHTS

Look on our website, newsletters, social media, and CRMLS for the already schedule classes below...

Upcoming SRAR Classes

Get text reminders about SRAR Education by texting EDU to (818) 338-1414 APRIL-JUNE 2024 · THE VALLEY VOICE MAGAZINE

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THE VALLEY VOICE MAGAZINE · JANUARY-MARCH 2024

APRIL-JUNE 2024 · THE VALLEY VOICE MAGAZINE

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TAKE ACTION NOW FOR A MORE INCLUSIVE TOMORROW.

REALTORS BUILD COMMUNITIES.

®

FAIR HOUSING

IS OUR FOUNDATION. Commemorate the Fair Housing Act—advocate for accountability, culture change and training.

Elevate your business, advance homeownership and expand opportunity.

REALTORS® are members of the National Association of REALTORS®.

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THE VALLEY VOICE MAGAZINE · JANUARY-MARCH 2024

COMMITMENT TO ENHANCED COMMUNICATION

SEE THE DIFFERENCE IT MAKES TO YOUR BUSINESS! APRIL-JUNE 2024 · THE VALLEY VOICE MAGAZINE

17

Top Real Estate Hashtags for 2024 Originally published by Christy Murdock, RentSpree Author

If social media marketing is a cornerstone of your outreach, knowing which real estate hashtags to use is paramount to growing your clientele and business. In this article, we'll sharing the top real estate hashtags for 2024 and social media best practices to get the most out of your content.

Social media platforms are a powerful tool for real estate professionals to advertise their brand, share their expertise, make an influence, and attract potential clients. But it takes more than just posting pretty pictures and clever captions to grow your business on social media. To really boost engagement and visibility, you need to use the right hashtags.

Now, you might be wondering, what makes a hashtag the "right" one? And how can you be sure they're actually working? Don’t worry—we’ve compiled a list of real hashtags to incorporate into your strategy and included how to use them effectively for each platform so you can level up your game.

What are hashtags?

Simply put, a hashtag is a word or phrase preceded by the "#" symbol to categorize and sort content on social media. When users click on a hashtag, they are directed to a feed that aggregates all posts using that specific hashtag. Hashtags serve as a powerful tool for categorizing content, fostering discoverability, and connecting like-minded individuals across the digital landscape. Real estate hashtags in particular are very effective in making your content discoverable to your audience. But you can’t just use any words for your hashtags and expect to see results. If you want prospects to find your content, the key is to find hashtags that are relevant with decent search volume but aren’t completely oversaturated.

5 reasons to use real estate hashtags Using hashtags can help you maximize your real estate marketing impact in the following ways:

18

1. Amplify visibility In the vast sea of social media content, hashtags act as beacons that guide users to relevant posts. By strategically incorporating real estate hashtags, you can amplify the visibility of your listings, brand, and industryrelated content to reach a wider audience.

2. Targeted reach Tailoring hashtags to the characteristics of the property, location, or target market ensures that your content targets your specific audiences and demographics.

3. Build a brand presence Whether it's a personalized slogan, tagline, or the agency's name, branded real estate hashtags help you create a cohesive brand identity. And a distinct brand presence across social platforms can attract both new and repeat customers.

4. Boost engagement Engagement is the lifeblood of social media success and using hashtags connects you with a broader community, facilitates conversations, and encourages users to participate in discussions or share their experiences.

5. Stay relevant Trending real estate hashtags offer a real-time opportunity to join ongoing conversations within the real estate community and take advantage of popular online trends. By incorporating trending and industry-specific hashtags, you can align your content with popular searches, stay current with market trends, and position yourself as a knowledgeable professional.

THE VALLEY VOICE MAGAZINE · JANUARY-MARCH 2024

The top trending real estate hashtags for

2024

Staying on top of trending hashtags is a game-changer for increasing engagement with your audience and showcasing your listings. Whether you're focused on catering to buyers, assisting renters, or simply want to establish a broad real estate presence, using hashtags strategically can elevate your social media efforts.

Here are the top trending real estate hashtags for 2024:

Best real estate hashtags for listings These hashtags are perfect for advertising your property listings, attracting potential buyers or renters, and creating a visually compelling narrative around the homes you represent.

1. #DreamHome 2. #HomeForSale 3. #PropertyListing 4. #HouseHunting 5. #DreamHouse

6. #HomeSweetHome 7. #LuxuryLiving 8. #RealEstateForSale 9. #NewListing 10. #HouseofTheDay

Real estate hashtags for buyers Targeting the buyer demographic? These real estate hashtags will help you reach individuals actively looking to make a real estate purchase.

1. #FirstTimeHomeBuyer 2. #HomeBuyer 3. #BuyersMarket 4. #HouseHunters 5. #InvestmentProperty

6. #HomeOwnership 7. #PropertyInvestment 8. #HomeBuyerJourney 9. #BuyerTips 10. #HomeBuyerAdvice

Real estate hashtags for renters If you specialize in rentals, these hashtags cater to individuals seeking the perfect place to call home without the commitment of ownership.

1. #RentalProperty

6. #RentingTips

2. #ApartmentForRent

7. #RentersRights

3. #RentersCommunity

8. #RentalMarket

4. #LeaseAgreement

9. #ApartmentsSearch

5. #HouseForRent

10. #LeaseSigning

General real estate hashtags These broad-ranging hashtags cover the overall real estate landscape, allowing you to connect with a diverse audience and establish a comprehensive online presence.

1. #RealEstate

6. #HomeDesign

2. #RealtorLife

7. #RealEstateAgent

3. #Property

8. #RealtorLife

4. #Realty

9. #PropertyGoals

5. #HousingMarket

10. #HomeInspiration

Real estate hashtag best practices Hashtags are powerful, but have an ever greater impact when you follow best practices like these:

Be specific and relevant Precision is key when selecting hashtags. Be specific about the property type, location, and unique features.

General or overly broad hashtags might attract a larger audience, but specificity ensures that your content reaches individuals genuinely interested in what you have to offer.

Mix popular and niche hashtags Just as precision is crucial, so is balance. While popular and widely-used hashtags can increase visibility, incorporating niche or industry-specific hashtags allows you to target a more engaged and relevant audience.

READ MORE

APRIL-JUNE 2024 · THE VALLEY VOICE MAGAZINE

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ATTORNEY

COMMENTS

Jeff Kahn, Esq., Spile, Leff & Goor, LLP

Shield Yourself: 10 Risk Management Tips for Real Estate Agents Ever feel like you're walking a tightrope? As a REALTOR®, you juggle client needs, legal requirements, and a million details. But don't worry, we've got your back! Here are 10 risk management tips to help you navigate smoothly and avoid potential pitfalls: 1. Communication is Key: Keep your clients and everyone involved in the loop. Modern tech is great, but don't forget the power of a direct conversation. Discuss things clearly before contracts are signed – this builds trust and keeps everyone on the same page.

2. Paper Trail Power: Put important conversations in writing! Emails or memos are your best friends. Verbal agreements can be fuzzy, so documenting everything protects you and clarifies details.

3. Forms for the Win: The California Association of Realtors® (CAR) has a treasure trove of forms on ZipForms. Use the right ones for every transaction!

Whether it's an addendum or disclosure, having the correct paperwork ensures your clients are covered.

Take time to understand the different forms so you can choose the right ones each time.

4. The AVID: A Disclosure Tool, Not a Marketing Pitch: Did you know that both seller’s and buyer’s agents need to visually inspect 1-4 unit residential properties and provide a written report of their findings to the buyer? The Agent Verification of Inspection Disclosure (AVID) form helps with this. It's not about creating a fancy brochure, but honestly noting what you see, hear, or smell. Avoid using adjectives or giving opinions on the source of issues. Just state the facts, like "crack in driveway" instead of "major driveway crack."

5. Timely Delivery is Essential: Get those disclosures to your clients quickly! Follow the deadlines outlined in the Residential Purchase Agreement.

6. Sharing is Caring (Especially Historical Documents): Advise sellers that they must share any previous reports and inspections in their possession to the buyer. Hiding this information can lead to claims of non-disclosure and lawsuits for both the seller and you!

7. Know Your Local Area: Different areas may have specific disclosures. Selling in San Fernando Valley?

Provide the San Fernando Valley Disclosure form from the Southland Regional Association of REALTORS®.

This and similar forms for other areas help ensure buyers are informed. You can check with the appropriate Association of Realtors to determine if they have such a local disclosure form.

8. Don't Forget Mandatory Reports: Some cities require specific reports for buyers during escrow. In the City of Los Angeles, for example, there's the "9A report."

Verify that these reports are ordered early on so they're available before closing. This is especially important if you're working with an escrow company that is out of the area. Often, they are unaware of the requirement and therefore fail to timely order the report.

9. Empower, But Supervise: As the agent, you're ultimately responsible for the transaction. If you have assistants or transaction coordinators (TCs), make sure they understand their limitations and only perform tasks within the scope of their role. The California Association of Realtors has a helpful chart on "Unlicensed Assistants" – consider providing this to your assistants and have them acknowledge they've read and understood it.

10. Stay in Your Lane: You're a real estate expert, not a lawyer, tax advisor, or construction consultant. If a question falls outside your area of expertise, refer your client to the appropriate professional. Similarly, avoid representing properties in areas you're unfamiliar with.

If you don't have the local knowledge, refer your client to an agent who does!

By following these tips, you can minimize risk and focus on what you do best – making successful real estate deals happen!

Jeffrey S. Kahn | 22144 Clarendon Street, Woodland Hills, CA | 818.784.6899 | www.SpileLaw.com 20

THE VALLEY VOICE MAGAZINE · APRIL-JUNE 2024

CODE

CASE

OF

ETHICS

STUDY

A REALTOR® was found in violation of Articles 1, 3, 9, and 11 of the Code of Ethics. As a result of this violation, her association membership was suspended for 60 days, a letter of reprimand was placed in her file for three years, she was fined $10,000, and she was required to attend a Live Code of Ethics class and a class on broker supervision and contract law for real estate professionals.

The REALTOR® represented the buyers in the purchase of a residential property. Prior to close of escrow, she allowed the buyers to have access to the lockbox key to enter the property. The buyers proceeded to begin demolishing the interior of the property even though they were not yet the owners of the property. The panel found the REALTOR® violated Article 1 for failing to protect her client’s interests. Giving the buyers access to the lockbox key and allowing them to enter the property unsupervised to begin repairs prior to close of escrow exposed the sellers to potential liability. The panel noted that an accident could have occurred, and someone could have gotten hurt, and the sellers would have been liable in that event. The panel found she violated Article 3, as interpreted by Standard of Practice 3-9, by providing access to listed property on terms other than those established by the owner or seller. She was also found in violation of Article 9 because she did not get an agreement in writing on behalf of her buyers to allow them to have access to the property and to begin demolition of the property prior to close of escrow. Finally, she was found in violation of Article 11 for failing to act within the standards of practice and competence which are expected of a buyer’s agent.

- A version of this article was published by California Association of REALTORS®

Win more listings. Sell more listings Learn More

APRIL-JUNE 2024 · THE VALLEY VOICE MAGAZINE

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Affiliate Column Unlock the Hidden Value in Your Life Insurance Policy

By Irv Selman - Founder, Selman Insurance Services Did you know your life insurance policy is an asset you own? It is — just like your car or house. The Insurance Studies Institute estimates that 2,500,000 seniors a year will lapse their life insurance policies and walk away with little or nothing, and that’s after spending tens of thousands of their hard-earned dollars over their lifetime and last year.

Why do people cancel their coverage when life insurance plays an important part in a family’s financial plan?

Over time financial priorities may shift making insurance coverages no longer needed, wanted or unaffordable. For instance, perhaps a term policy is ending, a spouse has passed away, the house is now paid off, the kids are gone, a business has been sold, divorce has taken place, etc. Or, sometimes, the policy simply becomes unaffordable and no longer fits into a fixed income budget.

Instead of cancelling a policy, there is another option, a better option. Like any other asset, a life insurance policy can be sold utilizing a life settlement. Simply put, a life settlement is the sale of a life insurance policy to a third party (usually an investment group or company) who gives the seller cash for the policy. The buyer becomes the owner, beneficiary and pays all future premiums. However, the whole policy doesn’t need to be sold. The seller has the option of retaining a percentage of the policy for their beneficiary if desired.

Almost any type of life insurance policy can be sold — universal life, whole life, second-to-die, even term policies. Studies from the Wharton School and London Business School have shown that even if a policy has a cash value, a life settlement typically yields, on average three to five times more than the cash surrender value.

Like selling a car or house, there are no restrictions on what the seller can do with the money. This is a good opportunity for a senior to help build their retirement 22

income, help fund long-term care needs such as home care or assisted living, donate to their favorite charity, or take that dream vacation.

Life settlements have been legal since 1911, when a U.S. Supreme Court decision (Grigsby v. Russell) paved the legal way. Today, life settlements are highly regulated by Departments of Insurance across the country, and the process is very transparent. In order for a Life Settlement to be consummated, signatures of the insured, owner of the policy if not the insured, the beneficiary(s) and a letter of competency from the family physician must be submitted. A 30 day-escrow account is then established giving the senior the opportunity to change their mind within the escrow period with no financial penalty.

The Insurance Studies Institute shared that 90 percent of surveyed seniors would have considered a life settlement…had they known about it. If a senior no longer wants or needs a life insurance policy, unlocking the value in this “hidden asset” may make sense. After all alternatives have been considered, and the conclusion is that it is time to lapse or surrender a policy, a life settlement can offer significantly greater value.

Irv Selman is the owner of Selman Insurance Services, a broker representing most top-rated insurance companies in the areas of life settlements, life insurance, disability income insurance, annuities and long-term-care insurance. He is a U.S. Army veteran and has spent the past 50 years counseling people of all ages. For more information, he can be contacted at (818) 590-6910 or irv.selman@gmail.com.

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Mission Statement

To support and promote Commercial and Investment Real Estate by providing education and services to members who are primarily engaged in or interested in business specialties that fall under the broad umbrella of Commercial/Investment real estate. (i.e. Business Opportunity, Commercial/Industrial, Land/Lots, MultiResidential, Property Management.)

Click HERE to visit our Commercial & Investment Division website for upcoming classes, networking meetings and resources.

2024 Commercial & Investment Division Members (PICTURED ABOVE)

Don’t miss the next

valley voice

for more information on how the Commercial and Investment Division is fulfilling its mission.

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SRAR Jan - Mar

2024

EDUCATION HIGHLIGHTS

In case you missed the education classes we offered earlier this year.

Let us know if you would like us to present any of them again by emailing Kit Young: education@srar.com EET

HOW TOP AGENTS

CONSISTENTlY CONVERT lEADS Join this 1 hour presentation where Elm Street Academy will provide you with the steps on how to generate high-quality, low competition leads that you can close AND turn these leads into life-long clients and referrals

� Monday, February 5, 2024 � 10:00AM - 11:00 AM SAN FERNANDO VALLEY

&\ Free: Members Only

SANTA CLARITA VALLEY

7232 Balboa Blvd., Lake Balboa CA 91406 (818) 786-2110

D Virtual

28033 Smyth Drive, Valencia CA 91355 (661) 299-2930 “the voice for real estate”

REGISTER HERE

www.srar.com Get reminders and updates about Education by texting EDU to (818) 338-1414.

f

SAN FERNANDO VALLEY

SANTA CLARITA VALLEY

7232 Balboa Blvd., Lake Balboa CA 91406 (818) 786-2110

28033 Smyth Drive, Valencia CA 91355 (661) 299-2930

www.srar.com Get reminders and updates about Education by texting EDU to (818) 338-1414.

SAN FERNANDO VALLEY

7232 Balboa Blvd., Lake Balboa CA 91406 (818) 786-2110

SANTA CLARITA VALLEY

28033 Smyth Drive, Valencia CA 91355 (661) 299-2930

www.srar.com Get reminders and updates about Education by texting EDU to (818) 338-1414.

26

THE VALLEY VOICE MAGAZINE · APRIL-JUNE 2024

Phil

SAN FERNANDO VALLEY

SANTA CLARITA VALLEY

7232 Balboa Blvd., Lake Balboa CA 91406 (818) 786-2110

28033 Smyth Drive, Valencia CA 91355 (661) 299-2930

W

Get reminders and updates about Education by texting EDU to (818) 338-1414.

@)

D

ONE DAY TWO SESSIONS ONE

PHENOMENAL SPEAKER

John LeTourneau

HELD ON MARCH 26, 2024

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In case you missed it > > > > The March 8th Santa Clarita Valley SRAR Networking Meeting was honored to host Mayor Cameron Smyth to a packed house for a local city update and Q&A.

“the voice for real estate”

Santa Clarita Valley

NETWORKING MEETING 2nd & 4th Friday of each month - 8:30am Networking | 9:00am Meeting Sponsored Breakfast | Networking | Latest News | Education | Property Pitches Buyer’s Needs | REALTOR® Members | Affiliates | Guest Speakers

JOIN US MARCH 8, 2024 Santa Clarita City Updates with the Mayor Mayor Cameron Smyth Mayor Cameron Smyth was first elected to the Santa Clarita City Council in 2000 and re-elected in 2004. He served as Mayor in 2003, 2005 and in 2024. He is a long-time Santa Clarita resident seeking to help our community stay great!

Breakfast generously sponsored by:

28033 Smyth Drive, Valencia, CA Southland Regional Association of REALTORS® www.srar.com

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We sincerely appreciate our generous Santa Clarita Valley Platinum Sponsors for their ongoing support!

Please support them by contacting them for your real estate needs.

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INCLUDES 1 DRINK TICKET & APPETIZERS

INCLUDES 1 DRINK TICKET & APPETIZERS

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THE VALLEY VOICE MAGAZINE · APRIL-JUNE 2024

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