Connections Worcester Regional Association of REALTORS
June 2013 Inside this Issue: President’s Message
1
June Calendar of Events
2
Membership News
3-6
REALTOR® Build Day
7
President’s Message
THE MARKET IS BACK! I’m hearing this over and over. Many of you are experiencing a really hot market with multiple offers and driving sales prices over list price. I heard a story last week of a house inside the 128 loop that had over 40 offers and sold almost $50,000 over list! On the other hand, I’ve spoken to some REALTORS®, who are saying ‘What Recovery?’ One of the first things we learn in Real Estate is Location, Location, Location! and that the market can be very different region to region and town to town. As a REALTOR® it is our responsibility to know our local market.
2013 Awards Celebration 8 CREST
9
Prof. Development
10
Government Affairs
11
Community Action
12
Golf Tournament
13
Housing Stats
14
Legal Corner
15-16
®
So how are we doing in the WRAR area? Let’s look at the numbers: As of April, Sales of all Properties are +10%, SF +5.6% and CC +31%. Median Sales Price of all Properties +16.2%, SF +15.4% to $248,900 and CC +12.9% to $198,000. Even more impressive is the UAG Properties - 1022 SF and 189 CC. WOW!!
•Provide members with the resources that enable them to serve the public in an ethical and professional manner
In May I had the privilege of attending the NAR Mid-Year Meeting in Washington DC - I highly recommend it. You see first-hand how incredible the NAR Staff is at knowing the issues that affect homeownership and explaining them to us (in English). They sent us on a Mission to visit our Representatives and deliver this message: HOMEOWNERSHIP IS NOT A LOOPHOLE! I get goose bumps telling you about this. With lanyards around our necks and talking points in our hands, we set off to the Senate and House buildings. We met with representatives (or their aides) and delivered our talking points brochures and messages: LEAVE FHA ALONE- we need safe, affordable mortgages to help many qualified buyers. KEEP THE GSEs - that’s Fannie and Freddie, we need an efficient secondary market to keep 30 year mortgages and low down payments. PRESERVE HOMEOWNER TAX POLICIES - They help make homeownership affordable and factor into the purchase decision. Keep Property Tax Deduction, MID (Mortgage Interest Deduction) and Capital Gains Exclusion on Primary Residence.
•Take an active role regarding issues affecting sellers, buyers, tenants and landlords.
Get involved locally- JUNE 5 is REALTOR® DAY ON THE HILL. REALTORS® from all over the Commonwealth will be going to the Massachusetts State House to meet with our local representatives. PLEASE JOIN US - You’ll be amazed at the experience.
WRAR Mission Statement The purpose of the Worcester Regional Association of REALTORS® is to:
In closing, you’re all doing a Great Job! Is there anything the Board can do for you? Stay in touch - we’d love to hear from you. Rochelle Jonswold 2013 President WRAR Worcester Regional Association of REALTORS® 1 www.wrar.org
WRAR MONTH-AT-A-GLANCE June 2013 Sunday
Monday
Tuesday
Wednesday
Thursday
Friday
Saturday 1
2
9
3
10
4 9 am Gov’t Affairs Committee Mtg.
5 8-4 MLS PIN Training
5 pm WRAR Awards Celebration @ The Hanover Theatre
9:30 REALTOR® Day on the Hill
11 7:30-5 GRI-MAR
12 7:30-5 GRI-MAR
6 2-4 pm Thirsty Thursday: MassHousing
7 9-12 “Beautify the Board” Day
8
13
14 FLAG DAY
15
9 am Finance Committee Mtg. 10:30 am BOD
9:30 Membership Committee Mtg.
16 FATHERS’ DAY
17 8-4 MLS PIN Training
18
19 9-11 RPR
20 9:00 am WRAR Golf Outing @ Green Hill
21 SUMMER SOLSTICE
22 8am-8pm CEU classes
23
24
25
26
27
28
29
30
Save the Date! Friday, September 20, 2013:
Thursday, December 12, 2013
Legislative Breakfast @ Holy Cross Installation of Officers & Directors Luncheon
Worcester Regional Association of REALTORS® 2 www.wrar.org
MEMBERSHIP NEWS Welcome to Our Newest Members New Members - May Orientation
Welcome
Mary Adams......................................RE/MAX Professional Associates................................Shrewsbury Bashar Aloch.................................... RE/MAX Professional Associates................................Shrewsbury Peter Anderson................................. Keller Williams Realty-Gr.Worcester...........................Worcester Norman Bergeron.............................Keller Williams Realty-Gr.Worcester...........................Worcester Shreena Bindra................................ Community Realty........................................................ Worcester Jeffrey Brooks...................................Keller Williams Realty -Gr. Worcester.........................Worcester Beth Bruso........................................ Exit Realty Partners..................................................... Shrewsbury Melynda Christian............................ RE/MAX Professional Associates................................Charlton Shayne Dahlgren.............................. Exit Realty Partners..................................................... Worcester Christine Finn.................................. Keller Williams Realty-Gr.Worcester...........................Worcester Sara Fish........................................... Keller Williams Realty -Gr. Worcester.........................Worcester Bella Fox........................................... Coldwell Banker Residential Brokerage..................... Worcester Judith Frey........................................ Susan A. Flynn & Associates....................................... Westboro Jeffrey Goodwin................................ Buyer’s Brokers Only, LLC...........................................Haverhill Michael Gough................................. Exit Beacon Pointe Realty........................................... Northboro Cynthia Grapov.................................Coldwell Banker Residential Brokerage..................... Worcester Julius Hernandez.............................. Exit Realty Partners..................................................... Shrewsbury Vanessa Hoenig................................ Hope Real Estate Group, Inc....................................... Webster Zhuoran Li.........................................Coldwell Banker Res. Brok. Park................................Worcester Shane Ludden..................................Keller Williams Realty-Gr.Worcester...........................Worcester Tara Mason....................................... Mendon Area Real Estate...........................................Mendon Kimberly Nobrega............................Quinsigamond Realty.................................................. Worcester Paul O’Rourke...................................Keller Williams Realty-Gr. Worcester..........................Worcester Ray Paolucci..................................... Post Road Realty..........................................................W.Brookfield Keith Pentz....................................... RE/MAX Advantage1................................................... Worcester Kristin Peterson................................ Quaboag Valley Real Estate........................................ Brookfield Pamela Pollan.................................RE/MAX Professional Associates................................Shrewsbury Maury Ramirez.................................Exit Realty Partners..................................................... Worcester Michael Rivers.................................. Keller Williams Realty -Gr. Worc..................................Worcester Joan Rudman...................................ERA Key Realty Services..............................................Milford Richard Salls................................... Century 21 Irvine & Virginia Walsh............................. Worcester Brian Sanginario............................... ERA Key Realty Services..............................................Worcester Jennifer Shenk................................. C21 DeNault Realty.....................................................Leominster Nathan Stewart................................ Coldwell Banker Residential Brokerage..................... Sturbridge Matthew Stewart.............................. Coldwell Banker Residential Brokerage..................... Sturbridge Andrzej Szarama..............................Keller Williams Realty - Gr. Worcester........................Worcester
New Applicants
Amber Ellis.................................Coldwell Banker Residential Brokerage....................Worcester Michelle Lamontagne...............Quaboag Valley Real Estate.......................................Brookfield Jennifer Roux.............................Exit Realty Partners....................................................Worcester Judith Wesley.............................Exit Realty Partners....................................................Worcester Gwen Zilioli................................Real Living Barbera & Assoc......................................Worcester
Reinstated Members
John Page..................................Prudential Parent Associates.....................................Worcester
Transfer Members
Donna Caswell...........................ERA Key Realty Services.............................................Whitinsville Worcester Regional Association of REALTORS® 3 www.wrar.org
MEMBERSHIP NEWS New Affiliate Business Partners Bank of America
6 Bedford Farms, Suite 1 Bedford, NH 03110 •Thomas Garner
Milestones Births
Congratulations to Dave Samara of Prospect Mortgage, his wife Jennifer and son Joseph, as they welcomed twins Catherine Sophia and Cameron Michael to their family on May 22nd.
Fidelity Bank
9 Leominster Connector Leominster, MA 01453 •Yamilett Sickles
Residential Mortgage Services 87 Elm Street Hopkinton, MA 01748 •Christine Johnson •R. Chad Rankin •George Simone •Elizabeth Vega Witttman
On the Move
ERA Key Services has relocated their Oxford office to 304 Washington Street in Auburn. RE/MAX Acclaim has moved their office to 351 Main Street in Oxford. We wish both companies continued success!
Rogowski Verrette Insurance Agency 324 Grove Street Worcester, MA 01605 •Iwona Verrette
Sympathies
Schaefer Mortgage Corp
Our deepest sympathies are extended to Brad Roberts on the death of his dad, Les Roberts, and to Charlie Smith on the passing of his wife, Pauline.
Warren Home Inspection
Eugene “Gene” Novak, Sr., 90, passed away Saturday, May 4, 2013. Gene was a founder of Gold Star Development, Inc. and served as president up until his death. He was also a longstanding REALTOR® and member of the Worcester Regional Association of REALTORS®.
179 Shrewsbury Street Worcester, MA 01604 •Greg Gentile •Mathew Piwowarski 171 Main Street, B101 Ashland, MA 01721 •Christine Warren •Rory Warren
*************************************** Please send notice of birth, death or any milestones that you would like published to Jacki D’Innocenzo at jdinnocenzo@wrar.org.
Worcester Regional Association of REALTORS® 4 www.wrar.org
MEMBERSHIP NEWS WRAR Scholarship Winners We are proud to announce the recipients of our 2013 Scholarship Awards. Taylor Duffy will enter her senior year at Fitchburg State University in the fall, majoring in Graphic Design and minoring in Professional Writing. Taylor is the daughter of Michael Duffy, REALTOR® at Keller Williams North in Leominster. Marc Tetreault will graduate from Blackstone Valley Technical High School in June and enter St. Anselm College in the fall majoring in Political Science. Marc is the grandson of Maureen Benoit, REALTOR® at ERA Key Realty Services in Whitinsville. WRAR Scholarships are available each year to children or grandchildren of Association members and staff; and are awarded on the basis of scholastic achievement, leadership ability, community involvement, and essay. Candidates must be a high school senior or full-time college student and maintain a 3.5 or higher GPA. Congratulations to Taylor and Marc and their families!
Taylor Duffy receives her Scholarship from Lisa Bradley, 2013 Scholarship Committee
Angela Mann, 2013 Scholarship Committee Member, presents Marc Tetreault his 2013 Award
“Education is learning what you didn’t even know you didn’t know.” ~Daniel J. Boorstin
Worcester Regional Association of REALTORS® 5 www.wrar.org
MEMBERSHIP NEWS The REALTORS® Midyear Meetings & Trade Expo The REALTORS® Midyear Meetings & Trade Expo took place in Washington DC from May 13-18, 2013. WRAR and NAR members took an active role to advance the real estate industry, public policy, and their association. If you missed this year’s meeting, save the date for the 2014 Midyear Legislative Meetings & Trade Expo, taking place May 12-17 in Washington, DC.
Pictured from left to right, front row, Judy Patterson, To download meeting handouts, view photos, watch Nancy Shaw Morley, Colleen Pappas, Rochelle videos and more, visit http://www.realtor.org/midJonswold, Erika Hall, Sarah Gustafson, Diane year.nsf?opendatabase&cid=my13012. DeCiccio and Dawne Woods. Back row, left to right are Brad Roberts and David Stead.
Pictured from left to right Dawne Woods, WCR member, Erika Hall, Senator Elizabeth Warren, Nancy Shaw Morley and WCR member.
Worcester Regional Association of REALTORS® 6 www.wrar.org
REALTOR® BUILD DAY - HABITAT FOR HUMANITY As Sponsors for Habitat for Humanity MetroWest/Greater Worcester, our members participate each year in a local build. In the fall of 2012 Habitat broke ground at 133 Plantation Street in Worcester on a 4,700 square foot corner lot donated by Wells Fargo. On May 30, our REALTORS® spent the day siding the exterior and laying the front walkway. Interior work included blown in insulation, calking, framing and and interior ventilation work. Thank you to the following members who participated: Jean Kelly and Jennifer Smith of Byron Realty Corporation; Sarah Gustafson of Coldwell Banker Sturbridge; Dania Flores, Jennifer Solin, Luz Gonzalez and Shreena Bindra of Community Realty; Karen Richardson of ERA Key Realty Services; Michelle Miller of Keller Williams Greater Worcester; Rochelle Jonswold of Keller Williams North; Diane DeCiccio of Open Door Realty; Judy Patterson of RE/MAX Acclaim; David Stead of RE/MAX Advantage; Sue-Anne Bock and Mary Stolarczyk of RE/MAX Vision, Bryan Larson and Kelly Lizotte of Security First Mortgage; and Colleen Pappas and Maura O’Connor of WRAR.
Lunch courtesy of Mary Stolarczyk’s mom, Mrs. V.
Maura O’Connor
Kelly Lizotte and Michelle Miller
Sarah Gustafson
Sue-Anne Bock
Habitat Project Mgr with Dave Stead and Dania Flores
Worcester Regional Association of REALTORS® 7 www.wrar.org
2013 AWARDS CELEBRATION Each year the Worcester Regional Association of REALTORS® recognizes its members for their professional achievements including involvement with our Association and contribution to our communities. Join us in celebrating those achievements.
R FOOD FO T E P F O D CAN BRING A DRIVE AN D O O F T E P T! LE TICKE OUR CAC F F A R E E A FR WRAR RECEIVE BENEFIT S E L F F A R D SHIP FUN SCHOLAR
Join your fellow REALTORS® as we celebrate the winners of the following awards: *REALTOR® of the Year *Natalie Quinlan Distinguished Service Award *REALTORS® Choice $25 before 5/21/2013 *Affiliate of the Year $30 after 5/21/2013 *Rookie of the Year $35
WRAR 2013 Awards Cocktail Celebration Tuesday, June 4, 2013 The Hanover Theatre for the Performing Arts 5:00-6:00 Cocktail Hour 6:00 Awards & Program Member Early Bird: Member Rate Rate: Non-member Price:
To register, return this form via fax to 508-832-6620 or via email to jdinnocenzo@wrar.org. You may also call the WRAR offices at 508-832-6600. Contact Name:______________________________________________ Company:__________________________________ Billing Address:_______________________________________________ City/State/Zip_______________________________ Phone:___________________________________________ Email:_______________________________________________ Amount Due__________
____Check
____American Express
____Discover
____MasterCard
____Visa
Card No______________________________________________________________ Expiration________________________ Signature_____________________________________________________________________________________________
Worcester Regional Association of REALTORS® 8 www.wrar.org
CENTER FOR REAL ESTATE STUDIES & TRAINING Upcoming CEU Courses for June All classes are held at the Worcester Regional Association of REALTORS® CREST School, 492 Washington Street, Auburn, MA 01501.. We also hold periodic classes at the Fidelity Bank Building, 478 Mechanic Street in Leominster. WRAR Members in good standing receive FREE LOCAL CEU’s! Tuition for non-members is $30 for each 2-hour CEU. You may register for classes online at www.CrestRealEstateSchool.com or by calling the WRAR office at 508-832-6600.
Auburn, Saturday, June 22, 2013 Time
Instructor
Course Code
Course Title
8:00 - 10:00
Jeff Chute
RE18RC07
Property Assessments, Valuation & Taxation
10:00 - 12:00
Jeff Chute
RE57R07
Brokerage Relationships
12:00 - 2:00
Jeff Chute
RE42R05
Property Management
2:00 - 4:00
Jo Ann Szymczak
RE28RC07
Foreclosures
4:00 - 6:00
Jo Ann Szymczak
RE16RC01
Zoning & Building Codes
6:00 - 8:00
Jo Ann Szymczak
RE20R01
Lead Paint-Residential Sales & Rentals
Seller Agency Class Technology Training - FREE for Members
Wednesday, June 19, 2013 9:00 - 11:00 am CREST School, 492 Washington Street, Auburn FREE to WRAR Members $30 for all others Receive 2 CEU’s Get help with your listing presentations using the latest tools, including RPR, Don’t miss this class!
If you would like one-on-one training on any Microsoft office product, give us a call to arrange a private training session. It can include any and all Suite products from Outlook to Word to Excel. Call Jacki at 508-832-6600 to arrange a convenient time. Bring with you those documents and files that are causing you to lose precious time and get them taken care of! Do you need help with your iPad, iPhone and all of the accompanying apps? If you’re interested, call Lynne to get put on the class-request list. We’ll have some small classes to answer individual questions and get you running smooth in no time flat!
Worcester Regional Association of REALTORS® 9 www.wrar.org
PROFESSIONAL DEVELOPMENT WRAR Presents: THIRSTY THURSDAY
THIRST FOR KNOWLEDGE! KNOWLEDGE
June’s Topic:
Get Schooled in
MassHousing
Thursday, June 6, 2013, 2:00 - 4:00 pm WRAR, 492 Washington Street, Auburn FREE to WRAR members; $30 for all others
MassHousing Loans not only offer housing for the masses, but are also a great alternative to FHA and conventional financing with a low down payment and less restrictions for low- to moderate-income buyers. 3 ways to register: Online at www.wrar.org Call the WRAR office at 508-832-6600 Fill out the form below
Presenter:
Heather Putnam-Graham MassHousing
Our Sponsor:
Lisa Thomann Fidelity Bank 9 Leominster Connector Leominster MA 01453 (978) 874-0011
Sign me up ! Return this form via fax to 508-832-6620 or email to jdinnocenzo@wrar.org. You may also enroll online at www.wrar.org Name _____________________________________________________________________________________________________________ Billing Address______________________________________________________________________________________________________ City/State/Zip_______________________________________________________________________________________________________ Phone________________________________________________ email________________________________________________________ Credit Card #____________________________________________________________ Expiration___________________________________
Worcester Regional Association of REALTORS®
10 www.wrar.org
COMMITTEE ON GOVERNMENT & LEGISLATIVE AFFAIRS REALTOR® Day on Beacon Hill Major Investment Night June 5, 9:30am at the State House
Major Investment Night was held at the Mount Pleasant Country Club on Thursday, May 9, and over $14,000 was raised for RPAC. Thank you to all participants and donors:
Join hundreds of fellow REALTORS® and make your voice heard on current legislative issues affecting home ownership and your business. Featured speaker is Martha Coakley, Massachusetts Attorney General. This is followed by the opportunity to visit your legislators and impress upon them their dedication to private property rights.
Crystal R - $2,500 • Crystal Tropeano
WRAR Bus departs TJ Maxx parking lot in Auburn at 7:30 am and returns at 3:30 pm FREE to WRAR Members
Sterling R President’s Circle - $1,000-$2,000 • Michael Durkin
Join us and make your VOICE HEARD! Seats are Limited - Sign up TODAY!
Sterling R - $1,000 • Andrew Abu • Anthony Economou • Jane Fine • Tracey Fiorelli • Deb Flot • Lorraine Herbert • Lee Joseph • Kris Koliss • Kathy Spangler
I want to be heard! Sign me up on the bus to BEACON HILL! Name___________________________________________________________________________ Company________________________________________________________________________ email___________________________________________________________________________ Telephone______________________________________________________________________
Additional Donations • Patricia Anderson • Marianne Belanger • Lauren Demerjian • Elaine Evans • Janice Mitchell • Dan Robertson • Dave Stead Have you made your Fair Share Contribution for 2013? Log in to the www.wrar.org website .
REALTOR® Day on Beacon Hill The Annual REALTOR® Day on Beacon Hill on June 5, 9:30 am at the Massachusetts State House in Boston is an annual event providing Realtors® with a terrific opportunity to meet with state legislators and relay your views on the issues affecting your business. Featured Speaker: Martha Coakley MAR welcomes Martha Coakley, Massachusetts Attorney General to REALTOR®Day on Beacon Hill. Re-elected to her second term as Attorney General in 2010, Coakley has advocated for consumers and taxpayers, and fighting for equality for all while in office. Under her leadership, her office recovered more than $440 million for Massachusetts homeowners and taxpayers and helped keep more than 15,000 people in their homes. MAR works diligently on your behalf to eliminate efforts to over-regulate the real estate industry. Below are a few of the key issues on this year’s agenda that can be discussed with legislators at Day on Beacon Hill. Mortgage Debt Relief An Act Regulating Secondary Metals Dealing Continuing Education Requirements
Worcester Regional Association of REALTORS®
11 www.wrar.org
COMMUNITY ACTION COMMITTEE The COMMUNITY ACTION COMMITTEE of the Worcester Regional Association of REALTORS® requests your assistance with our
pet food drive to benefit
local animal shelters Baypath Animal Shelter Second Chance Animal Shelter Sterling Animal Shelter
Sweet Pea Animal Shelter Worcester Animal Shelter
Please tell your friends, neighbors and co-workers Help us spread the word! ANIMAL SHELTERS ARE A SAFE HAVEN FOR LOST AND HOMELESS CATS AND DOGS IN OUR COMMUNITY. THE WORK OF THESE ORGANIZATONS IS NEVER DONE. THERE ARE ENDLESS NUMBERS OF LOSt, HOMELESS, ABANDONED AND INJURED ANIMALS THAT NEED THE SERVICES OF SHELTERS. THEY CAN’T DO IT WITHOUT OUR HELP. Please drop off canned or dry cat/dog food at any of the following locations in addition to the wrar headquarters in auburn:
Coldwell Banker, Shrewsbury & Worcester ERA Key Realty Svcs., Worcester Janice Mitchell Real Estate, Holden Open door Real Estate, Sterling Re/MAX Vision, Worcester Ross Mortgage Company, Westboro Worcester Regional Association of REALTORS®
12 www.wrar.org
WRAR ANNUAL GOLF TOURNAMENT WRAR 15th Annual Golf Tournament Thursday, June 20, 2013 Green Hill Golf Club Worcester, MA Early Bird Rate (May 20 cut-off): Single: $125.00 * Foursome: $500.00 Regular Rates: Single: $137.50 * Foursome: $550.00
Registration: 9:00 am Shotgun: 10:00 am Luncheon: 2:30 pm
Registration includes 18 holes, cart, continental breakfast, luncheon. Each registered foursome receives certificate for a free future round
INSTANT WINE CELLAR RAFFLE! WRAR INSTANT WINE CELLAR RAFFLE!
WRAR INSTANT WINE CELLAR RAFFLE!
A portion of proceeds will be donated to Worcester area homeless shelters.
WRAR INSTANT WINE CELLAR RAFFLE!
WRAR INSTANT WINE CELLAR RAFFLE!
For more info or to register, contact Jacki D’Innocenzo at 508-832-6600 or via email at jdinnocenzo@wrar.org. You may also send this form to WRAR, 492 Washington Street, Auburn, MA 01501 * FAX 508-832-6620 No. of Players_______
Team Captain:___________________________________________________________
Player 1_______________________________________ Player 2__________________________________________ Player 3_______________________________________ Player 4__________________________________________ Contact Name____________________________________________________________________________________ Billing Address___________________________________ City/State/Zip_____________________________________ Phone__________________________________________ email____________________________________________ Amount Due $______
_____Check
_____American Express
_____Discover
_____Master Card
_____Visa
Card No.____________________________________________________ Expiration___________________________ Signature_______________________________________________________________________________________
Worcester Regional Association of REALTORS®
13 www.wrar.org
LOCAL MARKET UPDATE Local Market Update – April 2013 A RESEARCH TOOL PROVIDED BY THE MASSACHUSETTS ASSOCIATION OF REALTORS®
Worcester Regional Association of REALTORS®
+ 10.0%
+ 16.2%
- 28.8%
Year-Over-Year Change in Closed Sales All Properties
Year-Over-Year Change in Median Sales Price All Properties
Year-Over-Year Change in Inventory of Homes All Properties
April
Single-Family Properties Closed Sales Median Sales Price* Inventory of Homes for Sale Months Supply of Inventory Days on Market Until Sale Percent of Original List Price Received* New Listings
Year to Date
2012
2013
+/–
2012
2013
+/–
354 $215,750 3,422 9.9 131 91.4% 931
374 $248,900 2,485 6.1 114 92.9% 1,042
+ 5.6% + 15.4% - 27.4% - 38.3% - 12.9% + 1.7% + 11.9%
1,206 $210,000 --131 90.1% 2,996
1,293 $225,000
+ 7.2% + 7.1% --- 1.9% + 1.8% - 7.7%
April
Condominium Properties
2012
Closed Sales Median Sales Price* Inventory of Homes for Sale Months Supply of Inventory Days on Market Until Sale Percent of Original g List Price Received* New Listings
74 $175,450 861 11.1 138 94.5% 196
2013 97 $198,000 564 5.9 94 95.3% 189
--128 91.7% 2,765
Year to Date +/–
2012
+ 31.1% + 12.9% - 34.5% - 46.7% - 31.3% + 0.9% - 3.6%
256 $147,500 --149 90.7% 705
2013 337 $181,000 --121 93.9% 655
+/– + 31.6% + 22.7% --- 18.8% + 3.6% - 7.1%
* Does not account for seller concessions. | Activity for one month can sometimes look extreme due to small sample size.
Change in Median Sales Price from Prior Year (6-Month Average)** Single-Family Properties
Condominium Properties
All MLS Worcester Regional Association of REALTORS®
All MLS Worcester Regional Association of REALTORS®
b a
+ 40%
+ 15%
+ 30%
+ 10%
+ 20%
+ 5%
+ 10% 0% 0% - 5% - 10% - 10%
- 20%
- 15%
- 20% 1-2008
- 30%
1-2009
1-2010
1-2011
1-2012
1-2013
- 40% 1-2008
1-2009
1-2010
1-2011
1-2012
1-2013
** Each dot represents the change in median sales price from the prior year using a 6-month weighted average. This means that each of the 6 months used in a dot are proportioned according to their share of sales during
that period period. | All data from the Berkshire County Multiple Listing Service Service, Cape Cod & Islands Association of REALTORS® REALTORS®, Inc Inc. and MLS Property Information Network Network, Inc Inc. | Provided by MAR MAR. Powered by 10K Research and Marketing Marketing.
Worcester Regional Association of REALTORS®
14 www.wrar.org
LEGAL CORNER MAR Legal Hotline Michael McDonagh, MAR General Counsel, and Ashley Stolba, MAR Staff Attorney
Use Caution When Making Warranties and Representations about a Property
The Massachusetts Supreme Judicial Court (“SJC”) recently affirmed a 2011 Appeals Court decision ruling in favor of a buyer who had alleged that a listing broker misrepresented the zoning of the property he purchased. The case, DeWolfe v. Hingham Centre Real Estate, Ltd., reaffirms the principle that agents must exercise caution when making verbal or written representations about a property. Most importantly, the Court declined to impose a duty on real estate agents to verify the zoning classification and did not impose strict liability simply because the broker had made a misrepresentation about the zoning classification. Instead, it applied the long-standing principle that a broker must use “reasonable care” when providing information about a property in order to avoid liability if the information is found to be inaccurate.
Key Facts
The buyer sought to purchase a property to relocate his business, a hair salon. Information provided by the listing broker (who stated that the information was obtained from the seller) indicated that the property was zoned as “Business B” and that “hairdresser” was a permitted use in that zone. The property was in what seemed to be a residential area. After the sale, the buyer was unable to secure proper permits from the town necessary to open his business and was informed that the property was, in fact, was residentially zoned. He also learned that “Business B” was not a zoning designation in the town. The Court ruled that the broker did make verbal and written representations about the zoning classification upon which the buyer relied to his detriment. Those representations turned out to be inaccurate. The SJC ruling is not the end of the case. It vacated the summary judgment entered by the superior court judge in favor of the broker, and ordered that the case be sent back to the superior court for further proceedings. To avoid liability, the broker will need to prove that it had used reasonable care when passing along zoning information from the seller.
Caution Issued to Brokers
In finding against the broker, the Court decision serves as a caution for brokers and salespersons to use “reasonable care” when providing zoning information about a property in order to avoid liability. The standard of reasonable care applies to all claims for a negligent misrepresentation in Massachusetts (as well as to claims for violation of Chapter 93A Worcester Regional Association of REALTORS®
based on a negligent misrepresentation), not just to zoning claims. Provided that the broker has relied on information from a “reputable source,” and has no reason to believe that the representation is inaccurate, the broker will generally be found to have acted reasonably. Consequently, as a messenger, the broker will not be liable for an “innocent” misrepresentation. In DeWolfe, the SJC stated that what constitutes “reasonable care” depends upon the circumstances presented and an evaluation of all factors. The fact that the property was located within a visibly apparent residential area, and that the zoning designation did not actually exist, led the Court to rule that a reasonable jury could have found that the broker had not acted “reasonably” in relying on the seller’s assertions.
Steps to take to reduce your risk
As a real estate licensee, whenever you provide information to a buyer or seller on issues where there could be some level of uncertainty, it is always a good idea to identify the source of the information and to encourage the buyer to perform his/her own due diligence and confirmation. Alert buyers to any discrepancy or inconsistency with any information you have. Brokers should also suggest that the parties consult with municipal departments or speak with their attorneys in order to resolve any question.
Court Considers Whether Verbal Extension to a Listing Contract is Enforceable
A Massachusetts district court recently held that extension of a listing agreement is enforceable, even if made verbally. In the case of Estate of Kupperstein v. Baum, the listing agreement contained a clause stating that if a buyer defaulted on the purchase contract and forfeited the earnest money held in escrow by the Broker, then the “Broker shall be entitled to retain up one-half (1/2) of the Seller’s retained damages, up to an amount not exceeding the full brokerage fee due, in payment of services, advertising, and other expenses.”
Key Facts
After the expiration of the listing contract, the parties extended the contract verbally for another six months. During that time, the Broker secured an offer for the property, and held a 15 www.wrar.org
LEGAL CORNER deposit of $16,500 in the Broker’s escrow account. The buyer then defaulted on the purchase agreement and forfeited half of the deposit; the broker retrained the other half. The seller, which was an Estate, argued that it, rather than the broker, was entitled to the other half of the deposit and filed an action in small claims court. The court ruled in favor of the Estate, and the Broker appealed. On appeal, the District Court reversed the lower court and ruled on three issues:
Court Ruling
First, the court considered whether verbal extensions of the listing agreement were enforceable. It ruled that the evidence showed that the listing agreement had been extended by the Estate. For example, the Estate never took back the keys from the Broker or provided any notice of cancellation. Additionally, one of the trustees had signed a disclosure form acknowledging that the Broker was the Estate’s representative in the transaction. Next, the court considered the conversion claims brought against the Broker. Massachusetts has a two-year stat-
ute of limitations for tort claims. Since this lawsuit was filed more than two years after the Estate demanded that the Broker return the portion of the earnest money, the court affirmed the dismissal of these allegations. Finally, the court examined the breach of contract allegations brought by the Estate. Because the court ruled that the verbal extension was enforceable, the language entitling the Broker to retain half of the forfeited earnest money was enforceable as well. In addition, the court also ruled that the Estate had violated the covenant of good faith implied in every contract by using the services of the Broker to find a buyer, but then later claiming that the Broker actually did not represent them because the listing agreement had not been extended in writing. Based on those findings, the court dismissed the lawsuit and ruled that the Broker could retain the remaining forfeited earnest money. It is important to note that this case was heard before a Massachusetts district court, rather than an appellate panel or the Supreme Judicial Court and is not binding as precedent on other cases.
2013 Directors & Staff Members President, Rochelle Jonswold Pres. Elect, Dave Stead Vice President, Brad Roberts Secretary, Kris Koliss Treasurer, Mary Gale Past President, Diane DeCiccio Jayne DiLiberto, Director Tony Economou, Director Sarah Gustafson, Director Erica Hall, Director Lorraine Herbert, Director Judy Patterson, Director Judy Reynolds, Director Mary Stolarczyk, Director Leslie Storrs, Director Kathleen Cooper, Alternate Tracy Fiorelli, Alternate Gina Lewis, Alternate Executive VP, Colleen Pappas Membership Manager, Lisa Sprague Programs & Events Coordinator, Jacki D’Innocenzo Staff Accountant, Maura O’Connor Administrative Assistant, Lynne Walls
Our newest REALTORS® at our May 2013 New Member Orientation Congratulations!
WRAR office hours are 9:00 am—5:00 pm. For assistance with the MLS Lockbox system, please make an appointment with Lynne Walls at 508-832-6600.
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