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May 31, 2007
NAR President to Speak at REALTOR® Day
on the Hill
On Thursday, June 7, members from the Greater Boston Association of
REALTORS® will meet with their state representatives and senators to
discuss
issues vital to the real estate industry for this year’s REALTOR® Day
on Beacon Hill.
The featured guest will be National Association of REALTORS® President Pat
V. Combs. The keynote speaker will be Tina Brooks, Undersecretary for the
Massachusetts Executive Office of Housing and Economic Development.
GBAR has a special competition taking place to see which of its four
regions can get the most REALTORS® to the event. So far, Region 1 is
winning with 17 members. Members from the winning region will receive a $25
gas card and lunch compliments of GBAR. All members are welcome to visit
GBAR Headquarters after the event for tours, light refreshments and to meet
other members as well as staff.
If you’re not too keen on driving into the city take the “T” (commuter rail
or subway) and we’ll reimburse you for the round trip fare up to $17.50!
There is still time to register for the event. You can do so
online or by faxing in the
registration
form. For questions contact Christina Meehan at 617-399-7840. We look
forward to seeing you!
NAR Complaint Elicits Response from 60
Minutes
The National Association of REALTORS® and producers at CBS News have
exchanged letters over the past couple of weeks following the May 13
broadcast of a “60 Minutes” segment on online real estate brokerages that
has drawn criticism from many in the real state industry.
In a letter, NAR officials voiced displeasure over the one-sided nature
of the story, and pointed out several factual errors regarding real estate
industry business practices that were made in the story, which they
requested “60 Minutes” producers to correct on the network’s website.
Notably, no one in leadership from the REALTOR® organization was
interviewed for the story, despite cooperating with producers for over a
year on the segment, yet critics of REALTORS® and NAR policies were given
plenty of air time.
In a response, Richard Bonin, a producer with “60 Minutes”, said he
respectfully disagreed with NAR’s complaints about the news story, entitled
Chipping Away at Realtors’ 6 Percent, stating that “We made a real effort
to be fair and I believe our report reflected that.” Additionally, “The
segment pointed not only to the comparative price advantage of online
brokers like Redfin, but also to various comparative service advantages of
traditional real estate agents,” he wrote.
To read the full text of the NAR letter and response from CBS go online to
realtor.org. To view the “60 Minutes” story or to send your comments to
the network visit
cbsnews.com.
Two NAR-backed Bills Pass the House
This month two pieces of legislation backed by the National Association of
REALTORS® passed the U.S. House of Representatives–
the Federal Housing
Finance Reform Act of 2007, H.R. 1427 and the
Industrial Bank Holding
Company Act of 2007, H.R. 698.
The Federal Finance Reform Act is intended to overhaul the regulatory
structure of the nation’s housing finance government-sponsored enterprises
(GSEs). The bill aims to preserve Fannie Mae’s and Freddie Mac’s abilities
to accomplish their key housing mission, while allowing the GSEs to provide
regional adjustments to mortgage caps in high-cost areas that the GSEs may
buy.
Meanwhile, the Industrial Bank Holding Company Act of 2007 proposes to
close an existing loophole that currently permits large retailers, such as
Home Depot and Wal-mart, to own a type of bank called an industrial loan
company (ILC). Home Depot, for example, could use an ILC to offer its
customers home-improvement loans. This legislation, if passed, would
prohibit commercial firms from controlling an ILC, directly or indirectly.
NAR has consistently opposed blurring the lines between banking and
commerce; passage of this measure by the House is a major victory for the
real estate industry in helping to secure the stability of our nation’s
economy observed NAR President Pat V. Combs.
REALTORS® By the Numbers: New Report
Profiles Members’ Business Practices
The profile and business practices of local REALTORS® are changing as a
result of emerging technology and an influx of new members to the industry
during the housing boom years of 2004-2006, according to the new Member
Profile report conducted jointly by the Massachusetts and National
Associations of REALTORS®.
The 2007 Massachusetts Member Profile report found that nearly one-third
(30%) of all Bay State REALTORS® have been in the real estate business for
three years or less. However, the typical REALTOR® in Massachusetts is also
older (54 vs. 51 nationally), more experienced (10 yrs. of industry
experience vs. 7 nationally), and better trained (49% have earned at least
one REALTOR® professional designation vs. 30% nationally) than their
counterparts across the U.S. Also, today, one-third (34%) of Bay State
REALTORS® hold a broker’s license compared to approximately one in five
(22%) nationally.
As a testament to the business success and positive public image many local
REALTORS® currently enjoy, the typical Bay State REALTOR® reports that a
median of 25 percent of their business was based on referrals from past
customers and clients during the past year. In Massachusetts, exactly half
of all REALTORS® stated that they practice buyer and seller agency, while
31 percent practice single agency, 8 percent provide buyer agency
exclusively and 7 percent perform seller agency exclusively. Meanwhile,
over three-quarters of all Massachusetts REALTORS® maintain a home office,
nearly two-thirds (62%) maintain their own website, but just 15 percent
have a personal assistant. While most local REALTORS® primarily practice
residential brokerage, roughly one in three (30%) cite relocation as their
secondary business specialty, while one in four (26%) identified commercial
brokerage and one in five (21%) said land development was a top secondary
area of specialization.
Technology
While Massachusetts REALTORS® have proven themselves to be progressive in
many ways in recent years, a significant number have not yet embraced much
of today’s new business technologies. In fact, fewer than one in three
report using a PDA (29%) or wireless e-mail, such as a Blackberry, (20%) on
a daily basis, only one-third use a digital camera weekly, and 62 percent
rarely or if ever use a GPS device. Additionally, just 34 percent of Bay
State REALTORS® report using contact management software on a daily
basis, only
20-25 percent indicate that they use electronic contracts and forms on a
weekly or monthly basis, and the majority of members (59%) have rarely or
if ever used a transaction management platform. Finally, just 1 percent of
local REALTORS® utilize blogs or podcasts on a daily or weekly basis to
communicate with consumers and colleagues. As a result, it’s of little
surprise that Bay State REALTORS® typically spend less on technology than
their colleagues elsewhere in the U.S. ($710 vs. $820), with agents
spending almost $250 less annually ($500 vs. $730).
The executive summary and full report of the
2007 Massachusetts Member Profile is available
online in
the
Housing & Research Data section of marealtor.com.
REALTORS® Support Elimination of
Foreclosure Tax
The National Association of REALTORS® is backing the Mortgage Cancellation
Tax Relief Act (S.1394), proposed by Senators Debbie Stabenow (D-MI) and
George Voinovich (R-OH). The bill calls for a repeal of a 1986 law which
forces individuals to pay income tax when a portion of their mortgage loan
is forgiven after a short sale or as part of a foreclosure.
Taxing people on the "phantom income" is unfair to people since they more
than likely can’t afford to pay the tax said NAR President Pat V. Combs.
Currently, the federal tax code requires
lenders who forgive a debt to provide a Form 1099 to the IRS showing the
amount forgiven. The disclosure applies to short sales, foreclosures, deed
in lieu of foreclosure or any other situation where a borrower’s portion of
debt is forgiven. Thus, if a property is sold at foreclosure or is sold for
less than was borrowed then that difference is considered income and is
subject to tax. The proposed bill would ensure that any forgiven debt on
disposition of a principal residence would not be subject to tax.
Meanwhile, NAR has created a new consumer-focused
brochure entitled “Learn How to Avoid Foreclosure and Keep Your Home.”
The pamphlet illustrates examples of risky mortgages, cautions consumers
about predatory lending practices, identifies housing counseling
organizations and suggests steps homeowners should take as soon as they
think they may not be able to make a mortgage payment. The brochure also
explains other possible steps homeowners can take to avoid foreclosure,
such as forbearance, reinstatement, repayment plans and loan modifications.
The brochure can be purchased online at the
REALTOR® store. Member cost is $20 for a package of 50.
HGTV Seeks Boston Area REALTORS® for
Upcoming Show
Producers from Home and Garden’s television show My House is Worth What?
are looking for REALTORS® in the Boston area to appear on the show during
October. You’ll assess a property on site, give price evaluations, and
explain how certain renovations add or decrease value in a consumer’s home.
To express interest or for further details, visit
www.pietown.tv/shows/myHouseIsWorthWhat.html. The deadline to submit
your application to producers is July 1!
NAR Adopts Policy Opposing a Blind Draw
System for Federal Housing Program Appraisals
During the National Association of REALTORS® Mid-Year Legislative meetings
held earlier this month, the NAR Board of Directors adopted a policy
opposing a "blind draw" selection system for federal housing program
appraisers, but also supported penalties on those who would improperly
influence the appraisal process -- for example, intimidation, coercion,
bribery etc. NAR believes that the "blind draw" system, which would select
appraisers randomly from a list of qualified appraisers, discounts
experience, education and local market knowledge, and sets qualified and
experienced appraisers on an equal playing field with lesser qualified
appraisers. Though the intent of a "blind draw" system is to isolate the
appraisal process from improper influence from lenders and mortgage
brokers, NAR believes that increasing penalties for tampering with the
appraisal process would be effective in enhancing appraiser independence.
This policy also impacts NAR's position on
H.R. 1723, the "Fair FHA
Appraisals Act" which both creates a "blind draw" system for appraisals,
and increases penalties for improperly influencing the appraisal process.
This bill is expected to be a part of a larger FHA reform bill. NAR will
oppose the inclusion of the "blind draw" language in any legislation.
Let the Bidding Begin
Three-bedroom split going once, twice…sold to the cute couple at their
kitchen table! In today’s high-tech world, some consumers are house
shopping from the comforts of their homes. In fact, residential real estate
auctions jumped 39.2 percent during the period from 2002 to 2005 to $14.2
billion annually, according to this month’s issue of REALTOR® magazine.
From a buyer’s perspective, auctions are an opportunity to bid on a
property at a discounted price, thus feeling a good deal was received.
Buyers also can see market value established. For sellers, auctions provide
a quicker sales process with control over the terms of the sale and a
higher level of promotion not gained by conventional retail methods.
Because auctions create immediate interest, buyers who might have waited
for a drop in price are now quick to put in a bid.
REALTORS® interested in exploring auctions as a marketing strategy for a
property listing should be aware that there are three main types of real
estate auctions:
-
Absolute auctions – the highest bidder wins
regardless of price.
-
Minimum bid auction – A property cannot be
sold until the minimum published price is met, guaranteeing a property
won’t be sold for less.
-
Reserve auctions – the seller sets an
unpublished minimum price, which he or she reserves the right to accept or
reject.
To learn more about auctions, check out
NAR’s Field Guide
to Auctions for additional information.
Upcoming CE Classes
On June 6, the Greater Boston Association of REALTORS® will present three
CE classes which will be held at Regis College – Buyers Agency (9:00-11:00 a.m.),
Contract Law (11:15 a.m. – 1:15 p.m.), and Closing & Settlement (2:00 –
4:00 p.m.). William Mullen, Esq will be the instructor for the day.
Registration is $45 per class or $105 for members who attend all three
courses scheduled for the same day.
To register, log on to www.gbar.org or
call 617-423-8700. Don’t delay as seating is limited for these programs!
ABR Course Scheduled
This June, GBAR will present the popular Accredited Buyer Representative
(ABR) designation course for members interested in receiving comprehensive
training in buyer representation. If you want to become educated on how to
provide the same level of service and fidelity to buyers that sellers have
come to enjoy, then you’ll want to attend these classes to earn your ABR
designation, which happens to be the only buyer representative designation
recognized by the National Association of REALTORS®.
The two-day ABR course examines agency theory and practice, standards of
care in the delivery of buyer agent representation, and strategies to
target niche markets and build your buyer representation business. In
addition, attendees will receive instruction on how to successfully handle
offers and negotiations as a buyer agent, and learn about disclosure
requirements, vicarious liability and other risk management issues.
The ABR course will be offered on June 11-12, with the Negotiation class
scheduled for June 19. Both courses will be held on the campus of Regis
College in Wellesley. Registration fees for GBAR members are $300 for the
ABR course and $175 for the one-day Negotiation course, or enroll for both
programs for just $400. For more information or to register call Kristin
Langoe at
617-399-7851 or go online to the
Education & Events section of
gbar.org
Set Sail Aboard GBAR’s Sunset Dinner Cruise
On July 10, join your fellow REALTORS® for a summer networking event on the
Spirit of Boston yacht. You’ll have the opportunity to reconnect with old
friends and make new ones.
The cruise will begin with a docked cocktail hour from 6:00-7:00 p.m. and
will include a presentation of the 2007 REALTOR® of the Year and the Andrew
F. Hickey Distinguished Service award recipients. Afterward, sit back and
relax as the ship sets sail for a two-hour sunset cruise of the Boston
harbor; during which a plated dinner will be served and live entertainment
featured. This year’s Master of Ceremonies is Greater Boston Real Estate
Board CEO Gregory P. Vasil. This is sure to be an enjoyable and memorable
event for all. We recommend registering early as seating is limited. Cost
for the event is $60 which includes cocktail hour, dinner and parking. To register
online click here or you can fax a
registration
form.
GBAR
Member Forums to Address New Health Care Law
Starting in the latter half of June, the Greater Boston Association of
REALTORS® will host its inaugural regional member forums in each of its
four regions. The topic of discussion at these 60-minute sessions will be
the Massachusetts’ new healthcare reform law which mandates that all
residents have health insurance by July 1, 2007. The forums will feature a
panel of speakers who will outline the requirements and implications of the
new law for real estate agents and brokers, options for insurance coverage
available to GBAR members under a new REALTOR® Health Care Program being
provided by Health Service Administrators in cooperation with the
Massachusetts Association of REALTORS® and The Garvin Group, and financial
resources available to those who need assistance in obtaining insurance
coverage.
All forums will be held
from 4:30-5:30 p.m. Following the forums will be a cocktail hour for
members to meet and network. The schedule is as follows:
-
Region I is on June
26 at the Boston Marriott Cambridge.
-
Region II is on June
21 at the Doubletree in Bedford.
-
Region III is on June
28 at the Courtyard Boston in Natick.
-
Region IV is on June
25 at the Courtyard Boston in Norwood.
For more details on the
forums, call Kristin Langone at 617-399-7851 or via e-mail at
klangone@gbreb.com. Further details on Massachusetts’ health insurance
reform law are available on the GBAR homepage at
www.gbar.org. |
