Insight Mar-Apr 09.qxp - North Carolina Association of REALTORS

MONEY MATTERS
SOCIAL MEDIA
THE FORMS GUY
insight
NC ASSOCIATION
OF REALTORS ®
Bright Ideas
How to Make Your
Listings Shine and
Sell in Today’s Market
MARCH/APRIL 2009, VOL. 88 NO. 2 www.ncrealtors.org
PRESIDENT’S MESSAGE
By Sandra O’Connor
President, NC Association of REALTORS®
Volume 88, Issue 2
NC Association of REALTORS® Inc.
Chartered in 1921
Become Part of the Solution
PRESIDENT
Sandra O’Connor, Greensboro
T
hese days, chances are if you want a fact fast, you “Google” it. Finding information
has become pretty easy. So, as I started to reflect on the relevance of politics to
being a REALTOR®, I quickly found some thoughts in Wikipedia. Politics, it says,
“ultimately comes from the Greek word ‘polis,’ meaning state or city. Politikos describes
anything concerning the state or city affairs.” I guess that is where the phrase “all politics
is local” springs from.
As members of a powerful trade organization, we know that our business is local –
and it is where our politics begin. We know that our strength comes from our members
who are involved at the local level. It follows, then, that we commit to our communities.
I congratulate REALTOR® members like Jonathan Barfield, who was elected a commissioner in New Hanover County. He campaigned with a focus on providing more workforce housing. Jonathan believes that people should be able to afford to live where they
work.
As an industry, we do the same thing. We keep informed about coastal storm water
issues, steep slope legislation in the mountains, and water quality regulations that impact
building codes and housing affordability. We are vigilant about property insurance and
disproportionate rate increases.
NAR’s leadership has been influential in working on the housing stimulation plan for
economic recovery. We join to unlock the American economy by taking actions to restore
consumer confidence in homeownership. Housing has always driven our economy and
brought stability to it. We seek revitalization of our markets.
Thus, we support our congressional representatives who are moving in that direction.
We are non-partisan in our support. Instead, we can be identified as members of the
REALTOR® Party. You actually can join this party by visiting www.realtoractioncenter.com.
While at the site, you can inform yourself about economic issues that affect our industry,
contact your legislators – and become part of the solution.
At a time when we are finding ways to get where we want to go at minimal expense,
this will cost nothing more than a few minutes out of your day. I urge you to reflect on
our commitment to protect private property rights and promote affordable housing. We
have the ability to speak with one loud voice about restoring economic stability through
housing.
TREASURER
Tom Barton, New Bern
IMMEDIATE PAST PRESIDENT
Wendell Bullard, Durham
REGIONAL VICE PRESIDENTS
Ernie Wilkinson, Atlantic Beach, Region 1
George Laney, Wilmington, Region 2
Steve Cohen, Fayetteville, Region 3
Preston Edwards, Durham, Region 4
John Newman, Jr., Greensboro, Region 5
Paul McGill, Winston-Salem, Region 6
Sheila Rudisill, Lincolnton, Region 7
John Byers, Charlotte, Region 8
Aric Beals, Charlotte, Region 8
Kirk Booth, Asheville, Region 9
Donna Parker, Cary, Region 10
Elizabeth Allardice, Raleigh, Region 10
EXECUTIVE VICE PRESIDENT
Tim Kent
EDITOR
Kevin Brafford
ASSISTANT EDITOR
Barbara West
ADVERTISING MANAGER
Kristin Miller
BUSINESS OFFICE
NC Association of REALTORS® Inc.
4511 Weybridge Lane
Greensboro, NC 27407
Phone: (336) 294-1415
Toll Free: (800) 443-9956
Fax: (336) 299-7872
Insight (USPS 017602) is published
bi-monthly by the NCAR Management
Corp., 4511 Weybridge Lane, Greensboro,
NC 27407. Member subscriptions of
$2.89 are covered by annual membership dues. Periodicals postage rates
paid at Greensboro, NC.
Sincerely,
POSTMASTER: Send address changes to
Insight; 4511 Weybridge Lane,
Greensboro, NC 27407.
Sandra L. O’Connor
Advertising of a product or service
does not imply endorsement, unless
specifically stated.
Contact Us: NC REALTORS® staff can be reached Monday through Friday during regular business hours
of 8:30 a.m. to 5 p.m. at 800-443-9956 or via email using the person’s first initial and last [email protected]. (For example, Tim Kent’s email address is [email protected].) Our fax number is 336-299-7872.
Administrative
Tim Kent
Executive Vice President
Anne Shoemaker
Chief Operating Officer
Bryan Jenkins
Chief Financial Officer
Samantha Ashburn
Website Coordinator
Rebecca Sweeney
Governmental Affairs Assistant
Amanda Lowe
Accounting Assistant
Barbara West
Communications Specialist
Phyllis Lycan
Accountant
Legislative
Rick Zechini
Director of Government
Affairs
Marketing and Business Development
Katie Sopcik
Director of Marketing and
Business Development
Legal
Will Martin
General Counsel
Kristin Miller
Marketing Specialist
Monica Huckaby
Legal Assistant
Professional Development
Chris Rhodes
Director of Professional
Development
Events
Mandy Lowe
Events Director
Loretta Moody
Receptionist
Diane Greene
Director of Community Outreach
Pam Haire
Director of Leadership Development
Communications
Kevin Brafford
Director of Communications
Julie Woodson
Director of Public Affairs
INSIGHT
Jennifer Robson
Professional Development
Assistant
Sherry Harris
Administrative Assistant
Donna Peterson
Executive Assistant to the EVP
Denise Daly
Membership Records
Coordinator/Bookkeeper
2
PRESIDENT-ELECT
Mary Edna Williams, Raleigh
March/April 2009
Cady Thomas
Director of Regulatory Affairs
David McGowan
Political Specialist
Mary Catherine Green
RPAC Manager
Ellie Edwards
Professional Development
Assistant Director
Keri Epps
Meeting Planner
For all the latest news and
business tools, check out
www.ncrealtors.org.
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Insight March/April 2009
IN EVERY ISSUE
2
President’s Message
6
Editor’s Desk
6
By the Numbers
7
Events Calendar
8
Five Minutes With ...
12
Inside NC REALTORS®
34
End Notes
36
Closing Thoughts
Cover Story
REALTORS® around the
country – including in North
Carolina – are successfully
unearthing tactics for selling
in a challenging real estate
market.
Features
10
Gate City Gala
The installation of 2009 President Sandra
O’Connor made for a memorable midwinter’s
night in Greensboro. Through photographs, we
remember a very special occasion.
28
Staying True to Form(s)
Mandatory changes to MLS rules, plus additional
clarification regarding compensation disclosure,
prompts new forms that require your attention.
Departments
16
22
24
25
26
32
4
INSIGHT
March/April 2009
18
Government Affairs
Social Media
The Forms Guy
Money Matters
Housing Opportunity
REALTOR® Benefits
EDITOR’S DESK
By Kevin Brafford
Editor
‘For the Record’ Cuts to the Facts
G
uess what? We’re in a recession. That doesn’t
surprise you, I know, but apparently some
folks – even a few so-called experts – are
reluctant to use the “r” word. For fear of what, I ask?
That it will only make things worse?
Please. I learned a long time ago that it’s best –
at least best for me – to face adverse situations head
on. Analyze the circumstances appropriately and then
respond in a way that provides the best chance for
positive results. Yes, I realize that ours isn’t a onesize-fits-all world, but as I’ve watched those around
me in nearly three decades of adulthood, this
approach has worked more than it’s not.
I’m reminded of this as we continue to hear mostly gloom and doom with regard to the economy and
the real estate market. No doubt you’ve heard this
expression: “Don’t believe half of what you read.”
Truth is, people do believe most of what they read,
particularly if the news is bad.
The numbers
tell the story.
23 Percentage of consumers who have
mistakes on their credit report serious enough
to hurt their chances of obtaining a loan.
26 Percentage of Baby Boomers planning to
eventually move from their current home.
70 Percentage of homebuyers who would
choose a “green” home over a conventional
one during a down market.
83 Percentage of customers who say they
would use their REALTOR® again.
181,000 The number of new residents who
moved to North Carolina from June 2007 to
June 2008.
2.2 million The number of additional
households that would meet the income
requirements for purchasing a home if all
homebuyers became eligible for a tax credit
without a repayment feature.
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INSIGHT
March/April 2009
We want to alleviate the bad news, particularly if
the news isn’t that bad to begin with. Earlier this
month, the NC Association of REALTORS® published
its second issue of “For the Record.” It’s a quick,
easy-to-read one-page PDF that’s accessible on our
website (www.ncrealtors.org) under the “Latest
News” section.
This is our attempt to face an adverse situation
head on. “For the Record” dispels the myths and displays the truths regarding the real estate industry in
North Carolina in the statistical areas of the economy, foreclosures and homeownership. Every other
month, we’ll provide the facts – and only the
facts – for you to share with clients and would-be
clients.
We promise not to step around the facts, and we
promise to be honest in our reporting. Lastly, you
can believe all of what you read, and chances are,
the news won’t all be bad.
EVENTS CALENDAR
Key Dates in the Coming Months
March 20-24
Colorado Springs, Colo.
NAR AE Institute
April 20-22
NC
April 22
Legislative Day
Raleigh
April 27-30
GRI 100
Kitty Hawk
May 11-16
NAR Midyear Meetings
Washington, D.C.
July 19-22
Regional AE Conference
Pinehurst
August 10-13
GRI 300
Asheville
August 24-25
NAR Leadership Summit
Chicago
September 14-17
GRI 200
Wilmington
REALTORS®
Legislative Meetings
Raleigh
September 27-30
2009 NC
October 8-9
CRS 200
Greensboro
October 12-15
GRI 100
Greensboro
November 11-16
2009 NAR Conference & Expo
San Diego
November 16-19
GRI 200
Charlotte
December 3-4
CRS 205
Greensboro
REALTORS®
Convention & Expo
Savannah, Ga.
March/April 2009
INSIGHT
7
FIVE MINUTES WITH ...
Name:
Julie Poplin
Location:
Winston-Salem
Firm:
Allen Tate, REALTORS®
Local Association:
Winston-Salem Regional Association of REALTORS®
I was named after my great aunt Julie, who lived to be
100 years old. She was an incredibly hard worker. At 98,
she was still hoeing her garden! She lived every day like it
was her last. What a great example that was for me growing up. I think we all need to be reminded to live each day
to the fullest, as if it might be the last.
orchards and the packing house in the summers. My
first real job was putting cardboard boxes together that
held all the peaches. Even today when I smell peaches, I
think about that summer working in the pack house. It
was hard work, but fun because you were working, and
because I loved being able to get my fill of peaches.
I was raised on an island with one other family in the
middle of the Pee Dee River. We were the only kids there
and our family lived in what was once a boarding house
for CP&L (Carolina Power & Light) workers. We constantly
had the sound of water
flowing over the dam
and we would spend
most days fishing
and swimming. My
childhood was an
adventure.
We had our first grandchild in 2008. She’s a year old
and is such a joy. I love being a grandmother, and I spoil
her every chance I get. Knowing that they are not with
you all day, every day, you try to cram as much as you
can into the time you have together.
I refused to be quiet
and act like a lady
when I was
younger, because I
had to keep up
with my three
older brothers. I
heard so much
growing up …
“Shhh, be quiet.
Act like a lady!” I was definitely a tomboy. Anything
my brothers did, I wanted to do too, especially hunting,
fishing and building tree houses. I wasn’t allowed to shoot
anything, but I usually tagged along.
right
Julie and Loye biMgcGhaillircut
before th
During the 1960s, soldiers from Fort Bragg would
come in and camp out on the island just below our
house. They would bring all their guns and ammunition
and sea rations. It was really exciting when they would
come and share their stories. My dad knew the ins and
outs of the river, so they would take him on secret missions at night to practice blowing up bridges and the dam.
Playing “army” took on a whole new meaning for my
brothers and me.
My brothers and I – all four of us – worked in the peach
8
INSIGHT
March/April 2009
My hair was probably about 15 inches long when I
donated it to Locks of Love (an organization that
donates hair to children with long-term illnesses). My
hair had always been so short, even in high school. Lici
Fansler, the 2007 president of the Winston-Salem
Regional Association of REALTORS®, went through the
whole process and cut her hair for the same cause. I
thought that it was such a great idea! It took my hair
about two years to get long enough to donate.
When we were working on our RPAC auctions, we
were trying to find different things to donate. I
thought, well I’m growing my hair out, so I threw out the
idea of someone bidding on it. We decided to add the
cut to the list of the WSRAR RPAC Silent Auction items
in May of 2008. The options were either to cut my hair
at the auction or let it grow until the end of my year as
president. We decided to wait until this past December
and Loy McGill (wife of Paul McGill, Region 6 VP) got the
winning bid and cut the first ponytail
During the haircut, I wasn’t nervous because I knew
it was going to be such a relief to get rid of all that
hair. The funny thing is, my husband started letting his
hair grow when I did. He really enjoyed it, so now his
hair is longer than mine!
I’ve met so many generous people during the process
that have donated their hair. I think that’s primarily
because they’ve known someone that has been through
chemo. It’s a very personal thing and it’s encouraging to
hear others’ experiences.
Gate City Gala
M
ore than 300 members
and guests of the NC
Association of REALTORS® filled
The Empire Room in downtown
Greensboro on Jan. 22 for the
Inaugural Gala. We remember
the night in pictures.
(Above) The evening got under way
with a reception, where both smiles
and drinks were aplenty.
(Left) With Master of Ceremonies
Ronnie Thompson looking on, Betty
Smith offered greetings from the
Greensboro Regional REALTOR®
Association.
(Bottom left) Outgoing President
Wendell Bullard received a standing
ovation in recognition of his leadership efforts in 2008.
Photography by Diana Matthews
(Above) Pat Riley, president
and COO of The Allen Tate
Company, shared a light
moment with Sandra O’Connor
prior to installing the 2009 NC
REALTORS® president.
(Right) Sandra O’Connor is
pinned by her partner, Dawn
Chaney of Greensboro.
(Bottom right) Wendell Bullard
closed the festivities by surprising Durham AE Shelia Willis
with a special president’s
award.
INSIDE NC REALTORS®
NAR Survey Gauges Members’ Views
T
he National Association of REALTORS® recently
conducted a survey to gauge the views of members across the nation on the importance of
selected federal policy issues.
Each respondent was asked to rate the importance
of 38 federal policy issues from 1 (highest importance)
to 5 (lowest importance). Of note, the survey did not
ask respondents to rate NAR’s position on the issues.
At least 75 percent of the 2,922 survey respondents
rated these policy issues as highly important
(with the percentage of importance in
parentheses):
In both the 2008 and 2009 surveys, six of the top
10 issues are the same:
>
>
>
>
>
>
Capital gains exclusion on principal residence
Mortgage interest deduction
Banks in real estate
Small business health coverage
Real estate transfer taxes
Mortgage market credit crunch support
“This survey, along with
input we receive from the
Legislative/Regulatory
Policy Meeting in February,
are NAR’s marching orders
from the membership and
help set the direction for our
work in Congress over the
next year,” says Ken Wingert,
NAR legislative representative
for North Carolina, South
Carolina, Virginia and West
Virginia.
To read more about the
survey, visit www.realtor.org.
1. Capital gains exclusion on principal
residence (96 percent)
2. Mortgage interest deduction (95 percent)
3. Mortgage market credit crunch support
(90 percent)
4. Banks in real estate (88 percent)
5. Mortgage servicer regulation (87 percent)
6. Small business health coverage
(86 percent)
7. Government-sponsored enterprises
reform (85 percent)
8. Real estate transfer taxes (82 percent)
9. Veterans housing (81 percent)
10. Estate tax (81 percent)
REALTOR® Receives Order of Long Leaf Pine
J
ack Goldstein of Goldstein’s Second Wind Realty in
Salter Path has received the Order of the Long Leaf
Pine, North Carolina’s highest civilian honor.
The award, created in 1965 to recognize N.C. citizens
with a proven record of service, was presented to
Goldstein by Sen. Jean Preston (R-Carteret), during an
event hosted by the County Tourism Development
Authority.
“It’s quite a thrill to receive this award. I’ve seen
many people receive the Order of the Long Leaf Pine,
and it’s really quite an honor,” Goldstein said.
Among his accomplishments, Goldstein received
the NC REALTOR® Hall of Fame Award in 1996, the
same year he received the REALTOR® of the Year award
from the Carteret County Association of REALTORS®.
Goldstein has long been a leading proponent of the
county’s tourism industry and has served on many
boards, including the N.C. Travel Industry Association
and the County Tourism Development Bureau. The
County Hospitality
Association annually
presents the Jack
Goldstein Award in his
honor for dedicated
service to the promotion of tourism in
Carteret County.
Jack Goldstein
receiving the Order
of the Long Leaf
Pine, North Carolina’s
highest civilian honor.
Jannette Pippin/The Daily News.
12
INSIGHT
March/April 2009
Gov. Perdue Authorizes Tax Credit Program
G
ov. Bev Perdue recently signed into
action an authorization that will provide
new financial assistance to first-time
homebuyers. The authorization enables the N.C.
Housing Finance Agency to expand its Mortgage
Certificate Credit (MCC) program, allowing eligible
homebuyers to reduce their federal tax liability by
20 percent of the mortgage interest paid annually. The program could ultimately save North
Carolina homebuyers more than $30 million.
For buyers who qualify, the MCC could prove
to be even more beneficial than the homebuyer
tax credit in the Housing and Economic Recovery
Act (HERA) of 2008. The HERA tax credit has a
maximum benefit of $7,500 that can be claimed
in the first year of the mortgage, but the homebuyer must pay $500 per year for 15 years. While
the HERA tax credit expires this year, the benefit
of the MCC continues throughout the life of the
loan. Even if the homebuyer refinances, the 20
percent MCC tax credit may be reissued with the
new mortgage.
Cady Thomas (left), NC REALTORS®’ director of regulatory affairs, joined Gov.
Perdue in announcing authorization of the expanded Mortgage Certificate
Credit program.
The MCC can be used in conjunction with most mortgages, and
borrowers can apply through the Agency’s more than 700 participating lenders and their branches. For help in finding a lender, go to
www.nchfa.com.
2009 Election Dates
Set For Sept. 27-29
T
o better serve our members, the NC
REALTORS®’ 2009 election will be conducted in
advance of the Annual Convention & Expo.
Dates for the election will be Sept. 14-17, well before
the 2009 convention, which is set for Savannah, Ga.,
on Sept. 27-29.
Electronic voting, now entering its fourth year, has
increased voter participation, but with it has come new
challenges, according to Pam Haire, the association’s
director of leadership development. “The need for support during the election is clear,” says Haire. “We can
better maintain the high standards of member service
for which we strive by holding the election prior to our
gathering in Savannah.”
Haire adds that the NCAR Bylaws and Policy
Manual were modified accordingly. As always, members
needing assistance with voting during regular business
hours can call 800-443-9956. Also of note: The electronic method of voting is the only means by which
those eligible may vote. Election results will be
announced in Savannah and posted on our website
(www.ncrealtors.org).
High Point Association
Impacts Community
S
ales may have been down, but members of the
High Point Regional Association of REALTORS®
were especially busy in 2008 – serving their community.
Ed Terry, the association’s top executive, estimates
that more than 17,000 members of greater High Point
were impacted by HPRAR’s charitable activities. “Our
members continue to step up to the plate and be community leaders,” says Terry. “This is great evidence of
how much our members care.”
Their efforts during the course of 2008 included
three blood drives, an equal number of food drives,
treating children to a local baseball game, and collecting more than 1,000 toys and a matching number of
dollars in the Ward Street Toy Drive, a highly successful
annual fund-raiser.
Insight magazine is interested in publishing, as
space is available in each issue, details and photos of
your association’s charitable endeavors throughout the
year. To share your association’s efforts to help others,
contact Barbara West at 800-443-9956 or
[email protected].
March/April 2009
INSIGHT
13
INSIDE NC REALTORS®
Recognize Anyone?
NC REALTORS® President-Elect Mary Edna Williams
(right) stands with Louise Volker during the Wilmington
Inaugural in mid-January. Volker is a WRAR director.
Who’s that with the belle of the ball? It’s Tom Barton, NC
REALTORS®’ treasurer, who was among our members
attending Gov. Beverly Perdue’s inaugural celebration in
Raleigh on Jan. 10.
NAR Kicks Off New Initiative to Aid Members
T
he National Association of REALTORS® has
announced a new initiative entitled “Right
Tools. Right Now.” which is aimed at assisting
REALTOR® members across the nation during this
economic decline.
Among the most significant efforts, NAR will:
> Convert 34 “for sale” educational publications to
online PDFs and offer them to members at no charge;
> Provide seven online educational courses at cost
and a number of networking opportunities to members
at no charge;
> Convert 12 current and historical research tools to
online PDFs and offer them to members at no charge;
> Provide all MLS’s a subscription to the very popular
“MLS Economic and Market Watch Reports” at a 50
percent discount;
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INSIGHT
March/April 2009
> Offer eight courses, tools and other aids to members at a significant discount;
> Offer a marketing “concierge” to work with state
and local associations.
When announcing the new initiative
in mid-February, Dale
Stinton, NAR’s executive vice president
and chief executive
officer, said there will be a paradigm shift at the
national association from a focus on profit to a focus
on larger numbers of members helped by the programs, publications and services offered.
More specific information about the new initiative
is included on a new NAR website link (www.REALTOR.org/-RightTools), which debuted in late
February.
GOVERNMENT AFFAIRS
By Julie C. Woodson
Director of Public Affairs
Outlining Our Legislative Efforts During 2009
O
ur state and national economies are struggling, and many economists believe that
ultimately it’s the real estate industry that
will lead the country out of the current economic
quagmire.
“But the industry needs assistance to lead the
way,” says Sheila Pierce, chair of the Legislative
Committee for the NC Association of REALTORS®.
“That’s what our government affairs efforts are
focused on in 2009. This will improve the lives of our
members and improve the lives of all North
Carolinians. This will result in economic vitality as
well as intangible societal benefits.”
To accomplish these goals, the REALTORS® lobbying team will look to the
core ideals of promoting homeownership, making housing more affordable
and protecting the rights of property
owners.
Homeownership and Housing
Affordability
To promote homeownership and
housing affordability, there are several
issues of focus for NC REALTORS®
during this legislative session, which convened
Jan. 28 in Raleigh:
> Repeal of the transfer tax option. The transfer tax is
fundamentally unfair because it singles out one group
of people – those selling their property – to pay for
county programs and services that benefit everyone.
Recent statewide polling shows that 83 percent of the
public opposes the tax.
> Tax on professional services. The state will likely
consider all options to address the budget shortfall,
including a tax on professional services. REALTORS®
will continue to fight any proposed legislation regarding this tax, as it would adversely affect REALTORS®
and increase the cost of housing.
> Housing Trust Fund. REALTORS® will continue to
push for additional money for the Housing Trust Fund,
which is North Carolina’s only state-funded and statedesigned resource for affordable housing. In addition
to providing homeownership opportunities for lowincome families, the Trust Fund also finances support-
16
INSIGHT
March/April 2009
ive housing for homeless families, victims of domestic
violence and people with mental illness.
> Coastal Homeowners Insurance. A special study
committee formed to research how major hurricanes
could impact the cost and availability of property
insurance for North Carolina residents has submitted
its recommendations to the General Assembly. Recent
changes in rates, surcharges and deductibles may
also be re-evaluated. The NC REALTORS®’ government affairs staff will actively monitor the General
Assembly’s efforts.
> Federal Stimulus Funds. NC REALTORS® will work to have a seat at the
table when decisions are made at the
state level regarding the use of federal
stimulus dollars that directly or indirectly address housing issues.
Property Owners’ Rights
Well-intended regulatory efforts
also threaten affordability and negatively impact property owners’ rights.
“We can and must protect our environment and natural resources while
promoting economic
development and
homeownership,” Pierce
says. Following are some issues that the government
affairs team is monitoring and addressing:
> Coastal Property Disclosure. The NC Association of
REALTORS® and affected local associations near or
along the coast will continue to fight legislation that
requires these additional disclosures. The contemplated requirements are onerous and would not benefit
potential buyers.
> Mountain Development and Disclosure Regulation.
Legislation introduced in 2007 would have forced
local governments to more stringently regulate development in the mountain counties. The legislation
would also have escalated building costs significantly
in western North Carolina and stifled economic development. Further, the additional property disclosure
requirements are unworkable since the western part
of the state hasn’t been fully mapped and terminology used in the legislation was not used in the mapping
process. This issue will be closely monitored during the
2009 session.
> Jordan Lake Development Rules. A state agency has
adopted rules in an effort to protect the water quality
of Jordan Lake, which is a drinking water source for
the Triangle area and is also a popular recreational
site. The concern over these rules is the extremely high
implementation costs of the new regulations and the
fact that they will require environmental retrofits of
existing development. Implementation of the rules has
been delayed pending their review by the General
Assembly during this legislative session.
“This is going to be a tough legislative session
because of the economy and huge state budget
deficit,” says Rick Zechini, NC REALTORS®’ director of
government affairs. “Promoting the American Dream
of homeownership in North Carolina is the right thing
to do for our economy and for our members, and that
will continue to be our pledge.”
The North Carolina Association of REALTORS®
Would Like to Thank Our Sponsors...
Diamond
Gold
Platinum
Silver
2-10 Home Buyers Warranty
American Home Shield
Courthouse Retrieval System
The Real Estate Book
Rapattoni
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Rentals.com
ZipForm
March/April 2009
INSIGHT
17
Creative
SELLING STRATEGIES
REALTORS® Around the Country – Including North Carolina –
Are Discovering Tactics for Selling in a Challenging Market
By
Bridget
McCrea
he current real estate market can be especially tricky for real estate
agents looking to see their deals through to closing. Tighter lending
standards and the financial crisis have made the financing aspect of the
deals more difficult. Buyers who have a plethora of housing inventory
can create fickle clients who know that they can get what they want, and for the price
that they want to pay.
T
Put simply, buyers these days are asking for everything, knowing that if one seller doesn’t
cave in, another one probably will. This type of buyer’s market puts extreme pressure on
agents, whose sellers are often offended by this self-assured attitude. “Buyers are saying, ‘If I’m
going to buy in this market, then I’d better get a perfect house,’” says Dave Muti, senior mortgage planner with Millennium Home Mortgage, LLC, in Parsippany and author of Mortgages:
What You Need to Know (Pocket Guide Press, 2008).
To help smooth things over between the parties, many REALTORS® are working with sellers to help
them understand that they’ll probably have to give a little more than they’re comfortable giving.
Agents are also working a little magic of their own and testing out both new and tried-and-true strategies to sell homes. Here are a few tactics that you might want to add to your own arsenal:
Suggest a Home Warranty
In the real estate industry since 1952, Jordan Baris, chair of West Orange, N.J.-based Jordan Baris,
Inc., has seen more than his fair share of last-minute issues with home sales. One way Baris helps his
team keep deals knitted together is by encouraging all sellers to take out home warranties (with $100
deductibles) on their properties.
“This not only covers the seller if anything happens to the property while it is on the market,” says Baris,
“but it also eliminates the hassle of trying to figure out who is responsible – buyer or seller – for repairs
to electrical systems, appliances and even the garage door opener.”
Pre-sale inspections help identify potential problems with a home’s major systems before the properties
are listed in the MLS. Beware the seller who hesitates to go through the process earlier than expected,
as he or she might have something to hide. “If you can find out ahead of time if there’s a problem,”
says Joeann Fossland, CEO at Advantage Solutions Group in Cortaro, Ariz., “you’ll have a much better idea of how to price the home, get the necessary repairs done, or pass on the listing altogether.”
Get Tougher on Price
Time was that an agent could pretty much price a home at the seller’s whim, and then wait for
the market to decide whether it was too high, too low, or just right. No more, says Walter S.
Sanford, president at Sanford Systems and Strategies in Kankakee, Ill.
“It’s all about price right now,” says Sanford, who cautions that non-price-related strategies –
such as home staging – tend to raise an agent’s overhead. “Who should take the hit in profitability, the seller or the agent?”
Before listing a home, Sanford advises agents to interview a seller until they reveal
their “core motivation” for selling. From there, build a picture of how satisfying that
motivation will look and feel, he adds, and then let them know that the granddaddy of all motivators – price – will make that happen.
Maximize the Foreclosure Market
With foreclosures on the rise nationwide,
many agents are learning their role in such
transactions and working to facilitate the deals
among banks, buyers and sellers. Donna
Lasater has taken her foreclosure business a
step further by purchasing a 14-person luxury
mini-bus (outfitted with velour seating, air conditioning and a wheelchair lift) from which she
conducts weekly tours of foreclosed properties
in Dallas’ suburban communities.
“We’re experiencing a unique time in real
estate with a surplus of for-sale homes greater
than the industry has seen in a long time,” says
Lasater, a 28-year real estate veteran with
Coldwell Banker Residential Brokerage
Dallas/Fort Worth. “The national foreclosure
situation has created negative circumstances for
almost every part of the real estate industry.
Putting potential buyers in person at these properties is an efficient way to rapidly reduce
existing inventory.”
In July, Lasater launched the first foreclosure
tour, attracting 13 prospective buyers. The tour
produced one offer on the day of the event, she
says, and also generated numerous phone calls
and emails (thanks to the bus’s advertising
Be Brutally Honest
If the mailbox needs to be replaced, don’t be
afraid to let the sellers know. If the grout in the
kitchen is filthy and in need of a good steamcleaning, tell the owners about it. And if the carpeting in the living room is stained beyond
recognition, by all means inform them of the
negative impact that a bad “first look” can have
on a home’s ability to sell.
“In this market, you have to be very honest with
sellers about what it will take to sell their
homes,” says Patrice Willetts, broker with
Patrice Willetts, REALTOR®, in Wilmington.
“First and foremost, remind them that they will
never get a second chance to make a first
impression.” In sticking with her “honest”
approach, Willetts will often tell owners that
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INSIGHT
March/April 2009
wrap, which features her picture, name and Web
address). Today – with foreclosures comprising
about 20 percent of the listings on her local MLS
– Lasater runs expeditions every Saturday, rotating among the communities of Cedar Hill,
DeSoto, Duncanville, Midlothian, Red Oak,
Grand Prairie, Lancaster and Mansfield.
Lasater promotes the weekly tours on a dedicated
website (www.DonnasForeclosureBustour.com),
where prospective buyers can arrange a personal
consultation and find a schedule of tour times.
She says her efforts have been fruitful, and have
helped buoy sales in these trying times. “We’ve
sold houses off of every tour,” says Lasater.
their front doors need to be washed or their lawns
mowed.
And when all else fails, Willetts puts aside her
own financial interests and simply tells her sellers
to take their homes off the market. Last year, in
fact, she took three listings off the market because
the sellers were in no rush to unload their homes
for the lowest possible price. “I told them to wait
it out a bit longer,” says Willetts, “to see what
happens with the market.”
Reverse the Offer
The age-old system of posting a home for sale
on the MLS and sitting back to wait for appropriate offers to come in is a thing of the past for
Grace Safrin, a broker-associate with F.C.
Tucker/Advantage Realty in Valparaiso, Ind., who
in early 2008 stumbled on another REALTOR®’s
online blog posting about reverse offers and has
since used the strategy to close three deals.
With reverse offers, a listing agent has a showing
on one of her listings. If the potential buyer
requests a second showing – thus indicating
enough interest for the listing agent to collect feedback from the buyer’s agent – then the former discusses that feedback with the seller, who in turn
writes up a “reverse offer.” According to Safrin,
that offer addresses any buyer concerns (such as
the condition of the home’s carpet, which would be
factored into the reverse offer in the form of an
allowance) and is based on what the seller assumes
the buyer is willing to pay for the
property.
Primarily a listing agent, Safrin says reverse offers
not only help stimulate sales during a time when
buyers have an abundance of inventory to choose
from, but they also serve as leverage in getting listings sold. Recently, for example, she wrote up a
reverse offer on a home, only to have another
buyer show interest by requesting a second showing. “We told the agent that we had another offer
on the table, but we didn’t mention that it was a
reverse offer,” says Safrin. “The second buyer
made an offer before we even got a response back
on the reverse offer.”
And while Safrin’s sellers are typically open to the
idea of putting their offers on the table first, cooperating brokers aren’t always so willing to test this
non-traditional method of transacting real estate.
“I’ve dealt with agents who just couldn’t grasp the
concept, and who even get offended at the idea,”
says Safrin, who has to put time into the agent-education aspect of reverse offers to sell agents on the
concept, and relies on her past successes to get the
point across. “I let the agents know that it works 50
percent of the time. To me, 50 percent is better than
nothing.”
The age-old system of posting a home for
sale on the MLS and sitting back to wait for
appropriate offers to come in is a thing of the
past for Grace Safrin, a broker-associate with
F.C. Tucker/Advantage Realty in Valparaiso,
Ind., who in early 2008 stumbled on
another REALTOR®’s online blog posting
about reverse offers and has since used the
strategy to close three deals.
Charlotte, Knudsen and the participating agents
(the program is voluntary) sit down for an hour a
week to discuss books such as Blink: The Power of
Thinking Without Thinking. They then apply their
newfound knowledge in the real estate field.
“We have several book clubs under way right now,
with the goal of sharing new, motivational sales
strategies,” says Knudsen, “and stoking discussion
among agents in a way that keeps them focused in
a market where it’s easy to drop out.”
The book club also keeps agents coming into the
office during a time when the phones have slowed
considerably. Individual agents recommend the
books, which are ultimately chosen by the firm’s
management team. Knudsen says participation is
“very good” among agents, many of whom come
away with new motivations and selling skills as a
result of the interactions.
“We discuss how to get buyers off the fence in the
decision-making process, and how to get sellers to
understand the need for correct pricing in today’s
market,” says Knudsen. “So far, several of our
agents have tried, and had success with, taking
those tactics out into the field.”
Start a Book Club
Realizing that her 65 agents have a little more
time on their hands these days – and a hunger for
new selling strategies that will help them gain an
edge in the challenging marketplace – Laurie
Knudsen started a book club in her office in
December.
As broker-in-charge of Helen Adams Realty in
March/April 2009
INSIGHT
21
SOCIAL MEDIA
By Barbara West
Assistant Editor
Blogging 101: A New Communications Skills Set
W
elcome to blogging, a social networking tool
so full of possibilities and creativity that
you’ll wonder why you weren’t blogging
years ago. Right before our eyes, blogs have moved
from an online personal journal to a social networking
phenomenon that is currently at the forefront of marketing agendas worldwide.
Today, with the housing downturn commanding a
more modest approach to spending, it’s no surprise
that blogs – a free and easy-to-use platform – have
become quite popular in both the real estate community and beyond.
First Off, Relax
Even the most proficient bloggers will admit they
were nervous and anxious to see results when first
starting out. What those bloggers will tell you today is
that it takes time before people begin to follow
you – simply, that results don’t come
instantly.
Debe Maxwell, a
REALTOR® with Helen
Adams Realty in
Charlotte, has been
blogging for more
than a year now and
presently maintains one of the
top five blogs on
ActiveRain
(according to
ActiveRain),
though that distinction didn’t
come quickly. “Two
months passed
before I had a consumer look at my blog.
It was the longest two
months,” says Maxwell. “I had
been reading that you would get
business right away, but it’s simply
not true. You have to be patient.”
Chad Huck, a REALTOR® and blogging instructor
with Century 21 Hecht in Lake Norman, advises his
agents to give a blog at least six months before making judgments. “You have to blog consistently for a
couple of months before you can really judge whether
your blog is successful or not,” says Huck.
22
INSIGHT
March/April 2009
Take it from the pros, friends. Just relax and dub
this a time to learn and absorb. Once people do start
tracking your blog, you’ll transform into a confident
blogger.
Let Your Personality Shine
If you let people know who you really are, they’re
more apt to remember you. Stan Suther, a REALTOR®
in Lake Norman, echoes that sentiment. “As people
begin to get to know you and trust you, they’ll start to
ask for your business. You have to think of it as a longterm business deal.”
Maxwell also has discovered that personal touches
are what attract people in the first place. “Of all the
people that I have connected with through my blog, all
of them sought me out because of my personal comments,” says Maxwell. “That really blew me away. It’s
not about my knowledge in real estate; people just
want someone they can associate with.”
Make it ‘Stick’
“Stickiness” might
arguably be the most
important element to a
blog. Stickiness is
what keeps people
coming back for
more. Stickiness
happens by posting appealing,
amusing, or maybe
even controversial
posts on a consistent basis. “Don’t
be afraid to be controversial,” says Huck.
“It will make people
respond to you, and even
though people may not
agree with you, you will be on
their mind when they’re considering buying or selling a home.”
Stephen Huneycutt, a REALTOR® with
Elite Properties Land Acquisition & Development in
Charlotte, created a blog with the intention of meeting
one new person a day for 365 days at a particular
Starbucks. Each day he posts his newest friend’s picture and an interview to his blog, thus giving people an
incentive to keep coming back for more. “It’s the best
endeavor I’ve ever pursued,” says Huneycutt. “I’ve gotten quite a bit of listings out of it. I think it’s been successful because I’ve kept it fresh and interesting.”
people,” says Maxwell. “The more comfortable you get
with blogging, the easier it becomes to think of items to
post.”
Commit to the Process
The “stickiness” factor brings us to a vital point
when it comes to blogging. How often should you
update your blog? Most experts say to blog at least
once a week. Leaving your blog for weeks on end without a new entry will decrease your number of followers
exponentially.
“Blogs are great because they are constantly full of
fresh content,” says Fran Park, a REALTOR® with
Century 21 Hecht. “For me, my blog has really exceeded
my own website’s success because of the ability to interact. My website seems so static now.”
Maxwell posts a new entry to her blog once a day
and has found it keeps her blog at the top of the search
engines. “Even if it’s just a quick sentence about a community happening, it helps to keep your blog in front of
Get Started Today
When you just begin to blog, there’s no need to
spend a great deal of money. REALTORS® can readily
access free blogs through ActiveRain, Blogger or
MySpace – just to name a few.
One last piece of advice: Don’t be afraid to ask for
help. By commenting on others’ blogs, you can begin a
dialogue so that you can ask questions and seek out
advice and suggestions from other bloggers. The blogging community is ready to help you, so go out there
and blog!
(Check Out the NC Association of REALTORS® blog, NC
REALTORS® Talk, at www.ncrealtors1.blogspot.com!)
2009 NC REALTORS® Professional Standards Programs
Earn CE credit and satisfy your NAR
Quadrennial Code of Ethics requirement
in one day.
Bruce Aydt,
Attorney and past chair
of the NAR Professional
Standards Committee
Diane Disbrow,
Broker/Owner of BayShore
Agency and Past Chair of the
NAR Professional Standards
Committee
Join Bruce Aydt or Diane Disbrow, nationally-recognized real estate educators, in a day-long seminar
covering the Code of Ethics and processes to
enforce the Code. As past chairs of the NAR
Professional Standards Committee, Bruce and Diane
understand professional standards processes and
the Code of Ethics. Whether you are a member of
the Grievance Committee, Professional Standards
Committee or Board of Directors, this seminar will
provide you with up-to-date topical information on
how each part of the Code enforcement process
works.
Topics will include:
Due process
Grievance committee reviews
Hearing processes
Arbitration processes
Procuring cause
Registration for all
classes begins at
8:30 a.m.
Workshop hours
are 9:00 a.m.
until 5:00 p.m.
>>
March 9, 2009 (Bruce Aydt)
University of NC at Wilmington –
Executive Development Center
Wilmington, NC
>>
March 10, 2009 (Bruce Aydt)
Durham Reg. Assn. of REALTORS®
Durham, NC
>>
April 7, 2009 (Diane Disbrow)
Crowne Plaza Resort
Asheville, NC
>>
April 8, 2009 (Diane Disbrow)
NC Assn. of REALTORS®
Greensboro, NC
This program is approved for Continuing
Education as a 4-hour elective and also
satisfies your NAR Quadrennial Code of
Ethics requirement.
For a registration form, go to
www.ncrealtors.org and click on Education
& Events, or call 1-800-443-9956.
March/April 2009
INSIGHT
23
THE FORMS GUY
By Will Martin
General Counsel
Compensation Disclosure: Follow it Fully
Dear Forms Guy: I’ve come up with a clever idea about
how to comply with the N.C. Real Estate Commission’s
new compensation disclosure rule. When I fill out a
buyer agency agreement, I just put a really big number
in the “fee” blank. I explain to my client that the
chances of me getting a fee like that are really slim, and
the reason I put in such a big number is because of a
legal technicality. The client doesn’t care because they
initial the line where it says they don’t have to pay me
any difference between what I actually get and what’s in
the blank. That way, if I happen to be offered a big fee
or a bonus, I’m covered. No fooling around with extra
disclosures and paperwork! Just thought I’d pass this
along as a helpful tip. No need to respond with any
thank-you note. Sincerely, Smarty Jones
Dear Smarty: First of all, thank you for sharing.
Second, your idea, although clever, isn’t legal. The compensation disclosure rule that went into effect last Oct. 1
requires a real estate licensee to fully and timely disclose to the licensee’s client the expected receipt of any
compensation, incentive, bonus, rebate, or other consideration of more than nominal value from another party
or person. According to the rule, “full” disclosure
includes a description of the compensation, incentive,
bonus, rebate or other consideration, including its value.
Your idea of putting in an artificially large amount of
compensation in the fee blank doesn’t constitute full
disclosure in my view. The rule requires that your buyer
client knows what you actually expect to be paid before
they make or accept an offer on the property.
Sincerely, Forms Guy
Smarty: Why does the buyer need to know? Isn’t that
between the listing agent and me?
Forms Guy: Suppose your client asks you to show them
two different properties, Blackacre and Whiteacre. Both
are listed in MLS. The offer of compensation is the same
for both properties, but the difference is, on Blackacre
there is an additional $5,000 bonus offered to cooperating agents. The client likes them both and asks you
for your advice about which one they should make an
offer. Before you advise them, don’t you think your
client should know that if they buy Blackacre you stand
to make an extra $5,000?
Smarty: I am shocked – shocked – by your suggestion
that I would allow my personal interests to interfere
with my fiduciary duties to my client!
Forms Guy: Don’t get on your high horse, Smarty. I’m
not suggesting anything about you or your character. I
am suggesting that in order to avoid any appearance
that you may not be acting in your client’s best interests, the potential for the bonus needs to be disclosed.
That’s the reason for the rule.
Smarty: But if I can’t cover a potential bonus in the
buyer agency agreement, how do I do it?
Forms Guy: The buyer agency agreement actually does
contain a general authorization for you to receive a
bonus, which is necessary, but since the actual amount
of the bonus must be disclosed, further disclosure
would be required. If a selling bonus is actually offered
on a property your client wants to see, you should disclose the existence and amount of the bonus orally
before or at the time you show them the property, and
then confirm it in writing if the buyer decides to make
an offer on that property. New form 770 was designed
to satisfy the written confirmation requirement, but you
could accomplish the confirmation in other ways, too.
For example, if the MLS datasheet for the property
included the selling bonus, you could satisfy the
requirements of the rule by highlighting the bonus and
giving the buyer a copy of the datasheet when you
show them the property. For risk management purposes, it would be wise to have them date and initial a copy
for your files.
Have a question or questions for the Forms Guy?
Email Will Martin at [email protected].
24
INSIGHT
March/April 2009
MONEY MATTERS
By Milton Howell
DMJ & Co.
Stimulus Bill Should Stimulate Market
O
n Feb. 17, President Obama signed the socalled stimulus bill. Officially titled the
“American Recovery and Reinvestment Act of
2009,” the bill strengthens and improves the first-time
homebuyer credit. Encourage your potential buyers to
discuss this credit with their tax adviser – it may help
close the sale!
First, some background is in order: A credit for
first-time homebuyers was added to the law last year
with the passage of the Housing Assistance Tax Act of
2008. The Housing Act provided a tax credit of up to
10 percent for the purchase of a
principal residence (no rentals
or vacation homes), for a maximum credit of $7,500. The credit was effective for residences
purchased after April 8, 2008,
and before July 1, 2009.
Couples with income of more
than $150,000 and single taxpayers with income of more
than $75,000 begin to lose the
right to claim the credit.
In tax law, the definitions
are key. In this instance, a firsttime homebuyer is a taxpayer
who had no interest in a principal residence in the prior three
years. Clearly, this definition
includes more real estate buyers than one would first think.
Another key provision is that
the credit is refundable, meaning that the government will
actually send you a check.
Interestingly, if a taxpayer purchases a residence
in 2009 that qualifies for the credit, they can treat the
purchase as occurring in 2008 for purposes of this
credit only. This provision allows them to get this credit
on their 2008 tax return and get their refund a year
early. Those buying a house now need to make sure
that their 2008 tax adviser knows about the 2009 purchase.
Here’s the catch: The credit must be paid back
over 15 years beginning with the second year following
the claiming of the credit. That means that if a new
homebuyer claims the maximum $7,500 credit in
2008, they will pay it back at $500 per year beginning
in 2010. Thus, although called a credit, it works more
like an interest-free loan.
As REALTORS® know, few first-time homebuyers
hold their initial home for 15 years. If the taxpayer sells
the house or the house ceases being the principal residence before completing the repayment, the balance is
due with the return for the year of sale. However, the
repayment cannot exceed the gain on the house.
Now, the IRS has simplified things for joint owners
who are unmarried – a growing segment of homeowners. In January, the IRS issued Notice 2009-12 where it
explains how the credit works in this case. Here, the
government takes a taxpayer-friendly position, saying
that any reasonable allocation of the credit between
the two owners on their separate tax
returns is fine.
This IRS position brings two
planning observations. First, if one of
the two makes too much to qualify,
he or she can allocate the entire
credit to the lower-earning co-owner.
Second, if one of the two owners
cannot meet the definition of a “firsttime homebuyer,” the other taxpayer
can claim all of the credit. But the
total on both returns cannot exceed
the $7,500 maximum credit.
The new stimulus act signed on
Feb. 17 changes many of the credit
rules, all in more taxpayer-friendly
ways. First, the credit deadline is
extended to homes purchased before
Dec. 1, 2009 (previously July 1,
2009). Second, the credit remains 10
percent of the home purchase price, but the
maximum is increased to $8,000.
Third, and most importantly, the 15-year repayment rule is eliminated for principal residences purchased after Dec. 31, 2008, and before Dec. 1, 2009.
Thus, this benefit functions as a true credit, and not an
interest-free loan. However, if the home is sold or ceases being a principal residence within three years, the
entire credit must be repaid.
Lastly, please note that the information in this article is brief. Please consult your tax adviser before taking action based on this credit.
Milton Howell, CPA, is a tax partner with
DMJ & Co. in Greensboro. He can be contacted
at [email protected].
March/April 2009
INSIGHT
25
HOUSING OPPORTUNITY
By Diane Greene
Director of Community Outreach
Financing for Cash-Poor, Low-Income Buyers
W
ith mortgage rates at historical lows and a
repaid when the first mortgage is retired or when the
good supply of affordably priced homes in
homeowner sells the home, ceases to occupy the
many markets, there couldn’t be a better
home, or refinances the first mortgage. This second
time to buy a house. Still, tight credit and sagging
mortgage loan is available statewide and must be
consumer confidence continue to hamper housing
used in conjunction with NCHFA’s FirstHome first
recovery efforts. We can’t do much about the confimortgage, which is a 30-year fixed rate loan.
dence piece of this puzzle, but we can let our clients
know that money is still available – at good rates and
Mortgage Interest Tax Credit
terms – for first-time and cash-poor buyers.
Another great product that can help low-income
“There are still programs out there for homebuybuyers qualify for a loan is the Mortgage Credit
ers with good credit,” says
Certificate (MCC) program. This
Homes4NC President and
federal tax credit helps firstGreensboro REALTOR® John
time homebuyers save thouNewman. “The main thing that
sands of dollars of federal taxes
has changed is that buyers
over the life of the loan and
now have to have some money
helps them qualify for a loan
in the transaction.”
because it increases their
Homes4NC Vice President
monthly take-home pay. An MCC
Cle Newsom of the N.C.
will allow the first-time homeHousing Finance Agency
buyer to use 20 percent of the
(NCHFA) agrees that, even in
mortgage interest paid in a tax
today’s difficult market, there
year as a direct dollar-for-dollar
are programs available to help
tax credit. This tax credit can be
cash-poor and low-income
used with 30-year fixed rate
buyers get into their first
mortgages and some adjustable
home. “Lenders do have
rate mortgages. (See related
money to lend, and are lendstory on Page 13.)
ing to borrowers who are able
The MCC credit is available
Homes4NC President John Newman (left) accepts a
to make a down payment, have
every year in which the home$10,000 sponsorship check from Bob Kucab and Cle
an acceptable credit history
owner occupies the home and
Newsom of the NC Housing Finance Agency. NC REALand have the ability to manage TORS® and Homes4NC work in partnership with NCHFA
as long as the MCC-assisted
to support the NC Housing Trust Fund and to provide
all their monthly obligations,”
mortgage is still outstanding.
affordable housing opportunities around the state.
says Newsom. “The biggest
The estimated monthly MCC
challenge for buyers these
credit is used by underwriters to
days is coming up with a down payment.”
lower the qualifying ratios, thus allowing more homeNot too long ago, homebuyers could access 100
buyers to qualify for mortgages.
percent financing under most conventional lending
To qualify for an MCC, a homebuyer’s income canprograms. Now, because of the recent mortgage meltnot exceed certain maximums, which (for a family of
down, homebuyers using conventional loan programs
three or more) range from $85,000 in urban areas to
must pay a 3 percent to 5 percent down payment.
$62,000 in more rural areas. In addition, the home
Even FHA has increased its down payment requireprice can be as much as $220,000. The MCC can be
ment from 3 to 3.5 percent, explains Newsom.
used with the new $8,000 federal tax credit, until that
In response, the NCHFA recently increased its
credit expires in December 2009. (See related story
maximum down payment assistance to $8,000 for
on Page 25.)
first-time homebuyers earning 80 percent or less of
Both Cle Newsom and John Newman encourage
area median income. “This means a homebuyer using
real estate professionals to familiarize themselves
FHA financing can purchase a home using as little as
with these programs through training classes such as
$1,000 of his or her own money,” notes Newsom.
NCHFA’s “Financing Dreams” and the agency’s website
The NCHFA down payment assistance program is
(www.nchfa.com).
actually a zero-interest second mortgage that must be
“I make it a point to learn about the programs
26
INSIGHT
March/April 2009
available from different lenders, whom I call because
they just don’t put this type of information on their
website,” says Newman. He recommends that REALTORS® go to the seminars that lenders hold specifically for real estate professionals and develop relationships with the community reinvestment officers
at different banks because they focus on first-time
and low-income buyers.
And finally, Newman says, do it now so you’ll be
in a position to hit the ground running when the
market picks up. “Personally,” he adds, “I think we’ll
see more activity once people start getting their tax
refunds back – and I plan on getting a piece of that
action.”
NCHFA AT A GLANCE
First-time homebuyers may be eligible for:
> Below-market interest rate mortgage
> Down payment assistance up to $8,000
> Job loss protection
> Mortgage Credit Certificate (MCC)
For detailed program guidelines,
including income and price limits for your area, and MCC flyers, visit www.nchfa.com or call
800-393-0988.
March/April 2009
INSIGHT
27
Because it’s important at
all times to know and
understand the proper
use of forms, we’ll examine each of these in
detail.
hanges to the NC Association of REALTORS®
forms library typically take place on July 1 of
each year, but the 2008-2009 forms cycle has
been anything but typical.
C
First, as a result of an N.C. Real Estate Commission
rule change (effective Oct. 1, 2008) pertaining to disclosure of compensation, your state association
introduced a new “Confirmation of Additional
Compensation” form (#770) and revised the
Exclusive Right to Sell Listing Agreements (#101
and #103) and Exclusive Right to Represent Buyer
(#201) forms.
Now, in response to difficult economic times and
mandatory changes to MLS rules, as well as additional clarification regarding the N.C. Real Estate
Commission’s compensation disclosure rule, the
state association has rolled out four new forms and
revised four existing forms. They are:
> Short Sale Addendum (to Offer to Purchase and
Contract) (#2A14-T) (New)
> Short Sale Addendum To Exclusive Right To Sell
Listing Agreement (#104) (New)
> Seller Estimated Net Sheet (#110) (New)
> Exclusive Right To Sell Listing Agreement (#101)
> Exclusive Right To Sell Listing Agreement (Vacant
Land) (#103)
> Exclusive Right To Represent Buyer (#201)
> Exclusive Property Management Agreement
(Long-term Rentals) (#401)
> Internet Advertising Addendum (#105) (New)
We’ll begin with socalled “short sales.” NC
REALTORS® have been
faced recently with
increasing numbers of
situations where the likely sales price of a property may not be enough
to pay all the costs of
sale and the seller doesn’t have sufficient assets to
pay any deficiency. Three new forms have been
developed and two existing listing agreements
revised to help members better handle short sales.
Short Sale Addendum (to Offer to Purchase
and Contract).
This new form has been designed as an addendum
to either the Offer to Purchase and Contract (#2-T)
or the Offer to Purchase and Contract-Vacant
Lot/Land (#12-T) and may be used in situations
where any sale of the property would be a “Short
Sale” as defined in paragraph 1 of the addendum.
The addendum serves two important purposes.
First, it establishes important contractual rights of
the parties to a short sale. Paragraph 2 provides that
the seller can terminate the contract if the short sale
isn’t approved by all necessary lienholders, and
paragraph 3 provides that the buyer has the right to
terminate the contract at any time prior to receiving
notice of short sale approval from the seller. The rest
of the addendum (paragraphs 4 through 8) addresses the second important purpose of the addendum,
which is to help educate the parties about the
process and potential consequences of a short sale,
so that any decision they make to enter into a short
sale contract will be an informed one.
Short Sale Addendum To Exclusive Right To Sell
Listing Agreement.
This new form may be used as an addendum to
either the Exclusive Right To Sell Listing Agreement
or the Exclusive Right To Sell Listing Agreement
(Vacant Land) (#103). Its principal purpose is to educate the seller about short sales – what they are
(paragraph 1), the potential alternatives and consequences (paragraphs 2 and 3), what the lienholders
may or may not agree to do (paragraph 4), and what
the seller’s responsibilities will be (paragraphs 5, 7, 8
and 9).
Paragraph 6 of the addendum lists several “additional actions” that the firm may take with respect to
the marketing and sale of the property, including
rights to communicate directly with and provide
information directly to any lienholders.
Seller Estimated Net Sheet.
This new form may be used in conjunction with any
listing, but it has been added at the present time to
the NC REALTORS® forms library principally as a
tool in helping to determine whether any sale of the
seller’s property will be a short sale. The format
enables listing agents to estimate net proceeds based
on three different sales prices.
rently no circumstances that would prohibit the seller from conveying fee simple marketable title …”
In a short sale situation, that representation would
not be accurate. Thus, additional wording and several blank lines have been added where the seller may
summarize the circumstances that would cause the
seller to be unable to convey fee simple marketable
title. Wording has been added to encourage use of
the new short sale addendum to the listing agreement if the seller’s inability to convey fee simple
marketable title is due to the fact that the lienholder
approval of the sale may be required.
Additionally, new wording has been added creating
a specific duty on the seller’s part to provide the listing firm in a timely manner sufficient information to
enable the firm to estimate the seller’s net proceeds.
MLS rule changes.
Exclusive Right To Sell Listing Agreements.
In the “Seller’s Duties” paragraph in both form #101
and #103, the seller represents that “there are cur-
The lawsuit brought several years ago by the United
States Department of Justice against the National
Association of REALTORS® challenging NAR’s rules
(continued on page 30)
March/April 2009
INSIGHT
29
regarding virtual office websites, or “VOWs,” was
recently settled.
The terms of the settlement, among other things,
required board MLSs to adopt certain rules pertaining to VOWs by February 15, 2009. Under the
new rules, listing firms may not “opt out” of having their listings displayed on the VOW sites of
other MLS participants.
A seller may choose not to authorize Internet
advertising of their listing, in which case the new
rules require the listing agent to obtain from the
seller a signed opt-out document containing certain information. A seller may also authorize the
listing firm to display the listing only on the listing firm’s Internet site, but in such a case, the listing would not be eligible for inclusion in the MLS.
Sellers who do authorize Internet advertising may
prohibit MLS participants from displaying the
property’s address on the Internet, and may also
prohibit the display of third-party comments
about the property and automated estimates of
the market value of the property in connection
with their listing.
The “marketing” paragraphs of the listing agreements (forms 101 and 103) have thus been modified to be consistent with these new MLS rules.
Note that sellers who elect to prohibit display of
either the property address, third-party comments
and/or automated estimates of value should indicate their choice by not checking the corresponding check box(es). Since the new rules also
appear to apply to listings of rental property, the
Exclusive Property Management Agreement
(Long-term Rentals) has been revised accordingly.
Internet Advertising Addendum.
This new addendum may be used by listing firms
to meet the new MLS requirement that a participant must obtain a written opt-out from a seller
who desires to prohibit Internet advertising. The
form also addresses the situation where the seller
chooses to authorize Internet advertising only by
the listing firm. It is to be used an as addendum to
the listing agreements or property management
agreement, not the Offer to Purchase and Contract.
More on compensation disclosure.
It has been determined that a firm or agent’s
receipt of a fee from a home warranty company is
covered under the N.C. Real Estate Commission’s
compensation disclosure rule referred to at the
beginning of this article. As a result, new wording
has been added to the existing “Home Warranty”
paragraphs of the Exclusive Right To Sell Listing
Agreements (#101 and #103) and the Exclusive
Right To Represent Buyer Agreement (#201) to
allow the firm/agent to disclose the existence of the
fee, if applicable, including the amount.
This will allow the firm/agent to fully comply with
all requirements of the rule when the agency agreement is signed, thereby avoiding the necessity of
having to separately confirm the expected receipt of
the fee in writing at a later time.
AVAILABILITY OF FORMS
Copies of the updated forms are available on
NCAR’s Web site. To access the forms, go to
www.ncrealtors.org and enter your user name
and password. Your user name is the e-mail
address that you have on file with NCAR and
your default password is your nine-digit
NRDS number, conveniently located on the
cover of this publication. Next, click on
“Forms and Contracts” on the top toolbar then
click on the blue and white “Forms and
Contracts Library” logo.
Updated versions of the forms have been sent
to all of the state association’s approved forms
software vendors. You should contact your
vendor regarding the anticipated “roll-out”
date of an update to your forms software
program.
The NC Association of REALTORS®’ Forms
Use Policy allows permitted users a 60-day
“grace period” to continue using an old version of a standard form following a modification of the form. Thus, old versions of the
updated forms may be used through the end
of March. However, you should check with
your broker-in-charge concerning your own
firm’s policy on use of the new forms, in case
your firm requires that you use them prior to
the end of our grace period.
For more information, contact the NC REALTORS®’ legal department at 800-443-9956.
REALTOR® BENEFITS
Insurance/Financial
BENEFIT
DISCOUNT
As a leading Fortune 500 company, we offer comprehensive,
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reach your financial goals. Strategies are designed to help
you maximize your wealth to achieve your goals. Both
personal and business financial services are offered.
Discounts on Long Term Care
Insurance; Disability Income Insurance; Comprehensive Financial
Planning Fees; and Retirement
Contribution Protection may be
available for NC REALTORS® members and to select family members.
Just contact us by phone toll free at
866-340-9915 or visit our web site at
www.hinrichsflanagan.com
Discounted auto insurance program. Benefits include rates
not available to the general public; prompt, professional
service by over 700 agents in NC; convenient monthly
payment options; and 24-hr., no hassle claims service.
Special rates not available to the
general public.
Call 800-382-0661 and reference media
code #8756. Be sure to mention that you
are a NC REALTORS® member.
Fidelity Capital Management provides insurance solutions to
members including Individual Major Medical, Individual
Dental and Agency Benefit Plans.
Major medical plans, enhanced
dental and vision plans with low
premiums and great coverage.
Call 919-876-9610 or visit
www.fcmrealtorbenefits.com.
As a sponsored Partner of NC Association of REALTORS® since
1994, Pearl offers association members access to comprehensive Errors & Omissions Insurance, underwritten by XL
Insurance. We also offer members home warranty services
through our partner American Home Shield (AHS).
NC Association of REALTORS®endorsed E&O provider.
For more information, contact a Pearl
representative at 800-289-8170.
You may also visit our Web site at
www.pearlinsurance.com.
Limited benefit medical plans offer the health insurance
coverage many people need; doctor visits, x-ray and lab
work, prescription drugs and limited hospitalization.
Although the plan is not a major medical plan, it can serve
as gap coverage for members who have high deductibles, or
be important coverage for those with no health insurance.
Guaranteed acceptance regardless of health conditions or age;
coverage provided without
deductibles, co-pays or networks.
Call 877-925-1840 or visit
www.transchoicencar.com
Sears Commercial is a complete appliance and lifestyle
product resource designed specifically to meet the many
special needs of NC REALTORS®.
> Gift Cards – 5 percent off all
gift card sales.
> Appliance Select Plus-Discount
varies by item, offer extends to
member clients.
> Auto Discounts – $5 off on Oil
Change Service plus additional
discounts on tires and parts.
Visit: www.contractsales.sears.com to
find your nearest Appliance Select Plus
location.
Enjoy world class service for office supplies, furniture,
technology products and copy and print services at pricing
typically reserved for Fortune 1000 companies.
Receive an average of 10 percent
off retail prices.
Simply sign up online to receive the
discount. Visit the Partner page on the
NC Association of REALTORS® Web site at
www.ncrealtors.org.
NC REALTORS® members receive special discounts and
services on wireless solutions.
10 percent discount on
monthly service plans, up to 30
percent discount on accessories
and free activation with a two
year contract.
Stop by any company-owned AT&T/Cingular
store to activate your account. Provide FAN
2017074 to receive the discount.
HOW DO I SIGN UP?
Business & Technology
For more information, contact the partner of your choice at the number or Web site given.
Be sure to identify yourself as a NC REALTORS® member to get the great discounts and quality service you deserve.
Visit www.ncrealtors.org or call Kristin Miller at 800-443-9956 for more program information.
REALTOR® BENEFITS
Business & Technology
BENEFIT
DISCOUNT
HOW DO I SIGN UP?
UPS offers the most reliable express service
available today and savings you can count on.
There are no enrollment fees or contracts to sign.
$1.50 off UPS Next Day Air®
Letters, 10 percent off UPS Next
Day Air® Package and UPS 2nd
Day Air A.M.® Letter and
Package, and 20 percent off UPS
Worldwide ExpressSM Letter and
Package
For additional discount information or to
sign up, call 800-325-7000.
Bank of America delivers you a credit and debit card processing
program designed specifically to meet your needs and help
your business grow.
Preferred Customer Pricing.
For additional discount information or
to sign up, call 704-557-2359 or email
[email protected].
Carry the only MasterCard® with the NC Association of REALTORS® logo prominently displayed. When you make your next
purchase, you might walk away with a listing or prospect simply
by using your new NC Association of REALTORS® credit card.
Low introductory APR, no
annual fee, priority customer
service, and a year-end
summary of charges.
Call 800-932-2775 and mention priority
code FACCH9. Also, ask about the new
World Points Reward program.
Handle your staffing needs the smart way: you select staff,
decide compensation, and manage employees. Outstaffing
will handle details such as taxes, payroll and benefits.
Preferred customer pricing.
Call 888-OUTSTAFF or visit
www.outstaffing.com/ncar_index.
DeltaCom is a Southern-based premier provider of integrated
telecommunications solutions. At DeltaCom, we believe in
helping businesses save time and money by offering
competitive pricing on local, long distance, data and
internet services, all on one invoice.
3 percent association discount.
For a NO-OBLIGATION assessment of your
existing local, long distance, data and
internet service, simply call DeltaCom at
800-239-3000.
As a valued customer, you’ll benefit from our 23 years of
experience in the real estate industry. As a result, nearly 50
percent of all residential transactions rely on our technology
every single day. We’ve also leveraged that same experience
to build a product line that addresses your day-to-day needs.
We have a dedicated sales force as well as 24 X 7 X 365 live
tech support. That means we’re available at your most critical times. Simply put, we provide the right solutions at the
right price backed by the right service. Come see for yourself,
You won’t look back.
a la mode will offer NCAR members 20 percent off published
retail pricing. Identify yourself as
a NCAR member when ordering
or enter the promo code “NCAR”
when placing orders online at
www.alamode.com.
You can call our Agent Sales Department
at 1-800-252-6633, or visit our Web site at
www.alamode.com.
Realfast2Go-NEW ONLINE contract forms software contains
NC Association of REALTORS® and NC Real Estate Commission
contract forms.
FREE to NC REALTORS®
members.
Visit www.realfast.com and follow the links
to Realfast2Go. Your login name is your
email address and your password is realfast.
Call 800-571-0277 for assistance.
ZipForm is a powerful, easy-to-use software program that
helps real estate agents increase productivity while decreasing time spent doing paperwork. Special broker services
available as well as Desktop and Online versions.
NC REALTORS® member prices
are $69.90 for Desktop or
Online; $94.90 for both.
Regularly $129.95 and $179.90.
Contact 866-MY-FORMS or
www.zipform/promo/NC.
Brokers call: 866-627-4729
Formulator software is the name you trust since 1988.
Call about the New! Formulator Desktop or Online
Software that streamlines and simplifies your Forms &
Contracts preparation!
NC REALTORS® member special
prices are $119.95 for Formulator
DesktopTM. or the New! Formulator
OnlineTM. (Retail $199.00)
Call Formulator sales at 800-499-9612 or
our online store at www.formulator.com.
Forms
®
END NOTES
NC REALTORS® Sponsor Honored
Two Men and a Truck®, a Gold Sponsor of the NC
Association of REALTORS®, earned top honors in a
recent J.D. Power and Associates study measuring customer satisfaction among full-service moving companies.
Two Men and a Truck® is the largest franchised moving
company in North America and has N.C. offices in
Asheville, Burlington, Charlotte, Concord, Durham,
Greensboro, Greenville, Fayetteville, Mooresville, Raleigh,
Wilmington and Winston-Salem. In addition to receiving
J.D. Power and Associates’ top overall ranking (for the
second consecutive year), the company was ranked highest in the study’s packing services, on-time delivery and
number-of-lost-belongings categories.
Not a Very Neighborly Thing to Do
State Farm Florida Insurance Co., Florida’s largest
private property insurer, has announced plans to stop
writing homeowners insurance in the state, forcing 1.2
million policyholders to find new coverage. The
announcement followed the State Insurance Commission
turning down the company’s request for a 47.1 percent
rate hike. If the company were to continue to write insurance in Florida without a rate increase, it wouldn’t be
able to afford to pay claims by 2011, asserts Jim
Thompson, president of State Farm.
Study: Opposition Wanes for Eminent Domain
The 2005 Supreme Court ruling in Keo v. New
London, which affirmed the right of governments to take
private property and transfer it to private developers in
the interest of increasing tax revenues and eliminating
blight, isn’t the lightning rod it once was, a new study
says. In 2006, objections to the decision fueled legislation in more than 40 states and drove many local laws.
However, by 2008, the battles appeared to be focused
primarily on specific eminent domain situations, according to a recent study for the Initiative and Referendum
Institute of the University of Southern California.
Connecticut Releases ‘The MLS Bill of Rights’
A broker-controlled statewide MLS in Connecticut
has released “The MLS Bill of Rights,” a document that
denounces MLS boundaries as barriers to business and
calls for MLS participants to have access to all property
listings in the state or states where they are licensed.
“The public has the right to expect that their REALTOR®
can provide every active listing of every MLS participant
in the state where they are licensed,” according to the
document.
2009 is Business Buyers’ Market, Study Says
While the economy is expected to remain weak
throughout 2009, there will continue to be plenty of
opportunities for individuals and businesses in a position
34
INSIGHT
March/April 2009
to buy, according to a recently released survey. The
report, published by the International Business Brokers
Association, found that 61 percent of the survey participants believe that more businesses will go up for sale
in 2009, while 66 percent of the brokers and intermediaries say they will sell more businesses this year
compared to 2008. The survey also found that in a
buyer’s market, purchasers are more selective, so it’s
important for sellers to make their business more
attractive to buyers.
Obamas Tap L.A. Designer for White House Remodel
The Obamas have contracted with Michael Smith,
Los Angeles decorator to the stars, to remodel the
family quarters of the White House. Michelle Obama’s
press office praised Smith’s “family-focused and affordable approach.” The First Family’s budget for remodeling its private quarters is capped at $100,000, though
the project is expected to be subsidized by private
donations.
Builders Opt to Downsize New Homes
The National Association of Home Builders recently reported a drop in home size to an average 2,438
square feet in last year’s third quarter from 2,629
square feet in the second quarter. NAHB research
director Gopal Ahluwalia expects shrinking residence
size to be a lasting trend, noting that consumers are
more concerned about affordability and recognize that
smaller households do not need large dwellings.
Forecast: Big Drop in Nonresidential Construction
A survey by the American Institute of Architects
concludes that nonresidential construction spending
will drop by 11 percent in 2009. The situation shows no
signs of getting better anytime soon, says AIA chief
economist Kermit Baker. “It’s likely to get worse before
it gets better,” he says. One bright spot is the decline in
construction costs. Prices for steel, gypsum products,
lumber and cement have all fallen.
Homeowners Sue After Appraisal Dispute
A Seattle couple has filed suit against
Countrywide mortgage company, claiming that it violated the Racketeering Influenced and Corrupt
Practices (RICO) Act when it hired its wholly owned
subsidiary LandSafe for appraisals. The suit says
Countrywide, itself a wholly owned subsidiary of Bank
of America, forces homeowners to use LandSafe, then
subcontracts the work to independent appraisers while
charging homeowners as much as 200 percent of the
cost of the appraisals. The suit also contends that if
independent appraisers do not accept Countrywide’s
fee structure or appraisal guidelines, they stand the
risk of being blacklisted.
LAND 101
The Fundamentals of Land Brokerage
This 2-day REALTORS® Land Institute (RLI) Land
University course introduces participants to the
land brokerage specialty.
The course addresses a
broad range of topics that
include:
The basics of land brokerage
Tax deferred 1031 exchanges
Determining market value
Property rights and restrictions
Subdivision and assemblage
Environmental and regulatory issues
Land 101 counts as credit in
the following programs:
Instructors:
Course Administrator:
Dates:
Time:
Class Fee:
Location:
For More Information
Contact:
Lou Jewell, ALC and Dale Fulk, ALC
NC Association of REALTORS®
May 7-8, 2009
8:30 a.m. - 5:00 p.m.
$275 on or before April 23, 2009
$300 after April 23, 2009
4511 Weybridge Lane, Greensboro, NC
Chris Rhodes at 1-800-443-9956 or
[email protected]
1. A required course for
the prestigious and
highly coveted ALC
Designation.
2. An elective for the
ABR Designation.
NOTE: Please bring any marketing material
of your listings or Prospect want list. These
will be shared and evaluated.
Note: Real Estate License not required.
RLI COURSE REGISTRATION FORM
The entire Registration Form must be completed. Please mail or fax the Registration Form along with your registration fee. Make checks payable and
mail to: NCREEF, 4511 Weybridge Ln., Greensboro, NC 27407. Phone: 800-443-9956 Fax: 336-218-0463 Website address: www.ncrealtors.org
NAME:
COMPANY:
REAL ESTATE LICENSE NUMBER:
CITY:
STATE:
ZIP:
PHONE:
FAX:
E-MAIL:
Please indicate preferred method of payment:
Credit Card (VISA or MasterCard only)
Check for $
ADDRESS:
Make check payable to: NCREEF
ACCOUNT NAME:
3 DIGIT SECURITY CODE:
ACCOUNT NUMBER:
EXPIRATION DATE:
SIGNATURE:
TOTAL:
Please check here if you have a disability which will require services at this course, and attach a description of your needs.
CLOSING THOUGHTS
By Tim Kent
Executive Vice President
REALTORS® Credit Union to Become a Reality
A
new and exciting member benefit is heading
your way soon. Sometime around mid-year, the
REALTORS® Federal Credit Union will open for
business and all 1.1 million REALTOR® members will
have the opportunity to participate.
So what’s a credit union? It’s a cooperative owned
by its members, not outside investors or stockholders.
Credit union members pool their resources to make
loans and offer a wide range of services to fellow members. Because it’s a not-for-profit institution, a credit
union returns all financial gains to its members in the
form of improved rates on loans and investments.
Many REALTORS® are independent contractors.
This status makes it more challenging to obtain personal credit. The credit union is designed to be responsive
to the needs of REALTORS® and their cash flow as
independent contractors with commission-based pay.
The REALTORS® Federal Credit Union will be
Internet-based with no “brick and mortar” branches. A
U.S.-based member service center will provide aroundthe-clock support via telephone, e-mail and fax, 365
days a year.
As time goes on, the REALTORS® Federal Credit
Union will offer a full range of products and services,
including:
> Personal and business savings and checking accounts
> Overdraft protection
> Direct deposit
> Money market accounts
> Health savings accounts
> Certificates of deposit (CDs)
> Individual retirement accounts (IRAs)
> Personal unsecured loans
> Commission advance
> New and used vehicle loans/leases
> First mortgage (to members only)
> Home equity loans
> New REALTOR® start-up (up to $50,000)
> Debit cards
This will not be a bank, simply because it’s not
open to everyone and is strictly not-for-profit. The
credit union is for members only – as opposed to your
home-buying clients. However, like banks, credit union
deposits are insured up to $250,000.
Some people have asked, “Isn’t this the flip side of
banks getting into real estate?” No, many companies
and government agencies have their own credit unions,
including Congress and the Federal Reserve. The
National Association of REALTORS® will not own or
operate the credit union. It will be owned by the membership, chartered by the federal government and
directed by an elected volunteer board.
The REALTORS® Federal Credit Union should
be up and running by mid-year. You should make a
point of visiting www.realtor.org to stay abreast of
developments.
Homeowners Win in Avery, After All
T
he final results are in, and North Carolina
homeowners won again – this time in Avery
County. The transfer tax was defeated in a special election on a snowy Tuesday in early February by
35 votes. The final count was 1,449 opposed and 1,414
in support of the transfer tax, and we owe a debt of
thanks to the local grassroots efforts of the Avery
County Property Owners Against the Transfer Tax.
Initial results had given opponents a scare as
election night numbers indicated that the tax had
36
INSIGHT
March/April 2009
passed by 25 votes. However, because of errors
detected in two precincts, it was discovered the first
numbers were incorrect.
The final tally in Avery County marks the 24th
time in 24 attempts statewide that the transfer tax –
also known as the Home Tax – has failed. A recent
statewide poll shows that 83 percent of the public
opposes the tax. NC REALTORS® will continue to
work with communities across the state to fight this
egregious tax on homeowners.