At Home With Coldwell Banker Tomlinson - March 2021

ISSUE 113

NEWSLETTER

MARCH 2021

@home

WITH COLDWELL BANKER TOMLINSON

REALTOR® VERSUS REAL ESTATE AGENT: WHAT THE DIFFERENCE IS AND WHY IT MATTERS

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common misconception among consumers is that real estate agents and REALTORS® are interchangeable terms.

However, to earn the trademarked title of "REALTOR®," a real estate licensee must officially join the National Association of Realtors, the largest trade organization in the country representing 1.3 million members. For context, there are an estimated 2 million active real estate licensees in the U.S. The NAR Code of Ethics sets the standard for REALTOR® business practices. Its 17 articles provide standards for conduct with clients and customers, the public, and other Realtors. If a REALTOR® violates the code of ethics, a complaint can be filed and disciplinary action is taken by the REALTOR'S® local REALTOR® association.

According to the code's preamble, REALTORS® "pledge to observe [the code's] spirit in all of their activities whether conducted personally, through associates or others, or via technological means and to conduct their business in accordance with the tenets."

What rules does the Code of Ethics set?

The Code of Ethics for real estate has existed in some form for over 100 years. The original Code of Ethics (drafted, ahem, for quote "Real Estate Men," ironic considering now 63% of all Realtors are female) was adopted in 1913 as a much leaner list of rules.

The 2019 Code of Ethics consists of 17 articles covering different areas of conduct that each feature several of what are called "Standards of Practice," or specific ground rules REALTORS® are held against.

REALTOR® Code of Ethics Preamble The preamble to the Code of Ethics sets what NAR describes as the aspirational objectives of moral conduct. Think of it like the REALTOR® mission statement, rallying cry, or anthem.

The preamble even cites the Golden Rule, "Whatsoever ye

would that others should do to you, do ye even so to them."

Duties to Clients and Customers Article 1: Protect the best interests of the client.

Article 2: No misrepresentation, exaggeration, or hiding facts about the property at hand.

Article 3: REALTORS® should cooperate with each other unless it's not in the best interest of the client.

Article 4-5: Disclose any personal interest in a property.

Article 6-8: No recommending services for a kickback or collecting money under the table. Keep client funds separate from your own.

Article 9: All documents pertaining to the transaction should be presented to the buyer/seller in understandable terms.

Duties to the Public Article 10: No denying services on the basis of discrimination.

Article 11: Provide clients with competent services only within a REALTOR'S® professional scope.

Article 12: No false or misleading advertising.

Article 13: Don't break the law.

Article 14: Cooperate with the REALTOR ® board's investigative proceedings if charged with a violation.

Duties to REALTORS® Article 15: No false or misleading statements about other REALTORS®.

Article 16: Don't solicit clients that have already signed an exclusive listing agreement with another REALTOR®.

Article 17: Contractual disputes will be mediated or arbitrated by the REALTOR® Board.

As NAR CEO Bob Goldberg told Inman in response to the reported survey results on trustworthy professionals: "Consumers can feel confident that the REALTOR® they choose to work with has taken the voluntary step of agreeing to abide by a code of ethics developed with public protection and trust in mind."

Crazy Prices: What's Really Driving Up the Cost of New Homes Article by Chris Canning, REALTOR®

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s both a licensed REALTOR® and home builder, I often scroll through my Facebook feed and see homes advertised by our area homebuilders and fellow real estate agents. I often see such remarks as: “They want how much for that house? They’re crazy!” or “Why can’t builders build more affordable homes?” The general public is not aware of the obstacles faced by members of the industry tasked with meeting the demand for housing. Chief among these obstacles are: 1. A lack of affordable land. 2. Dramatic increases in the cost of materials. 3. The scarcity of qualified tradespeople.

1. Land The first line item on any builder’s ledger is lot cost.

At present, Spokane is faced with issues in obtaining, developing, and delivering reasonably priced lots to builders. Briefly stated, Spokane’s Comprehensive Plan dictates when, where, and how development and construction can take place. Its purpose is to prioritize use of existing infrastructure and improvements before venturing into areas that would require expanding infrastructure. Unfortunately, the land within the boundaries of our “Comp Plan” that was easiest and most cost-effective to develop is gone, leaving only very complicated, expensive, steep, rocky, pieces of property to develop. Consequently, developers and builders are forced to confront more expensive and complicated properties and projects.

"Ultimately, the consumer bears the brunt of the cost increase, while the only party to benefit is the original landowner."

Many consumers who are able are paying these increases, while others have simply been forced out of the market. Let’s assume a builder can build a home for $200.00/sq/ft and obtain a fair profit. If the builder is able to obtain a building lot for $60,000, and builds a 1,500 sq/ft rancher – he would need to charge $360,000 for this home. If, due to scarcity, the cost of the lot rises to $80,000, the result is an increase in the finished cost of the home of about $22,000. Otherwise, the builder sees his/her margin of profit slip, which would make it more difficult to obtain financing. Ultimately, the

consumer bears the brunt of the cost increase, while the only party to benefit is the original landowner.

2. Materials You may have heard in the news recently that lumber prices have nearly doubled in our area and elsewhere across the nation. However, it’s not just lumber that has seen extensive price increases due to scarcity. Across the board (no pun intended), shortages in roofing, wiring, flooring and other materials, have significantly increased the cost of building a new home today.

3. Skilled Labor Ask any home builder in town why homes are costing more, and be prepared for a lecture on the shortage of labor in the building trades. As a millennial, I was pushed hard to pursue a career requiring a college degree. I wish I had known then how much demand Spokane would have for skilled labor in the building trades in 2021! Talking to the many friends and family I have working as skilled tradespeople, I find that every one of them is inundated with work, to the extent that they can choose whom they work for and what they should be paid. As a result, while today’s new homes are not framed any straighter or plumbed more reliably than those built five years ago, they are a lot more expensive to build, and, thus, to buy.

Lurking behind every one of these factors in the increasing cost of new homes is the Demon of Demand. As long as Spokane remains the wonderful place to live it is and always has been, we can expect to see increases in the cost of housing, though perhaps less steep than we are coping with now, extending into the future.

Ingredients

1 ½ lbs fresh asparagus ½ Large Walla Walla sweet onion 1 16oz. can Cannellini beans, thoroughly drained 1 cup marinated artichoke hearts, roughly chopped 2 oz. blue cheese White vinegar, rice vinegar, lemon juice, sugar and fresh black pepper

Directions

HOME RECIPES

Asparagus and Sweet Onion Salad Not that there is anything wrong with head lettuce and 1000 Island dressing, but since we live at the source of our nation’s best sweet onions, why not take advantage of them, and shake up our palates a bit? This delicious salad is light enough to accompany any meal, and substantial enough to serve as a delicious and healthful lunch or light supper.

1. Plunge the asparagus into boiling water for one minute.

Drain and pat dry. Cut the spears into 2 inch lengths.

2. Slice the onion very thin.

3. Combine all the vegetables and the cheese in a large mixing bowl and dress with: a. 2 Tbsps white vinegar b. 2 Tbsps rice vinegar c. 3 Tbsps lemon juice d. 1 tsp sugar e.

Ground pepper to taste 4. Chill for at least two hours or overnight before serving.

The Five Leading Builders in Spokane County As Determined by the Number of Active Building Permits Builder

Current Subdivisions

Remarks

Lexington Homes

Windhaven, Woodridge View, Sekani Heights, Country View Meadows, Windsor Estates, West Terrace, The Orchards, Legacy Ridge West

Started by Spokane native, Dave Nerren. Recently became a division of DR Horton, one of the nation’s largest home builders.

Hayden Homes

Center Court, Five Mile Grove, Aspen Park, Sekani, Summerfield, North Court, Sterling Hills, River Crossing, Traditions, Arrowleaf, Green Meadows, Corbin Crossing, Brookshire, Pillar Rock Estates

Founded by Robert Watson in central Oregon in 1989, now building extensively throughout the NW. Provide excellent value through advanced business management and volume purchasing.

Greenstone Corp

Kendall Yards, River District, Trutina 55+at River District, Rocky Hill. In Idaho: Montrose, North Place, Coeur D'Alene Place

Founder Jim Frank, a Spokane native, is justly known as our region’s leading developer of planned communities.

Diamond Rock Construction

Pasadena Meadows, Tori's Place, Ponderosa East, McCarrol East

Owner Dennis Crapo is able to spot needs in the market early, and provide the means to meet them. For several years, focusing on multi-family construction.

Paras Homes

Trickle Creek, Aspen Creek, Parkvue, Hazelwood Park, Valley Springs, Camden Park, 31st Ave. & Adams Neighborhood, Talon Ridge, Eagle Ridge

Spokane native, founder and hands-on owner, George Paras has since 1981 shown a unique ability to balance luxury and affordability, establishing a niche of his own and building communities of lasting value.

Coldwell Banker Tomlinson 4102 S Regal St, Suite 201 Spokane, WA 99223

@HOME WITH

ISSUE 113 | MARCH 2021 ©2021 Coldwell Banker Tomlinson. All rights reserved. Each office is independently owned and operated. If you currently have an Agent assisting you with the purchase or sale of property, this is not a solicitation for business.

SPOKANE REAL ESTATE MARKET STATISTICS – Market update February 2021 snapshot Average Sales Price

Current Listing Inventory

$355,843

136

Up 23.9%

Down 73%

Median Sales Price

Closed Sales

$326,888

424

Up 22%

Down 3.9%

Average Days On Market

Annual Residential Sales

13

866

Down 58.1%

Down 3.4%

February 2021, as compared to February 2020.

The information in this report is compiled from a report given by the Spokane Association of REALTORS® and to the best of our knowledge is accurate and current.

Think of the human stories that lie behind these numbers. What they tell us is that, at any point in the month of February, 424 buyers were competing for 136 listings. Inevitably, this leads to higher pressure and higher emotions for everyone involved: not only buyers and sellers, but brokers, also. This, in turn, means that the character of negotiations changes, and that the rules and procedures must change along with the requirements of the market.

For this reason, representatives of every part of the real estate industry in Washington collaborated in making such changes to the content of many of the most important legal forms employed in buying and selling property in our state. Your Tomlinson broker has received intensive training in these forms, and stands prepared to help you negotiate the shifting currents of this challenging market.

CONTACT ME WITH ANY QUESTIONS OR FOR DETAILED MARKET INFORMATION.