Many Homeowners Going Green to $ave $ome Green

Transcription

GCAAR in the News
MC & DC Market Reports
pg. 3
september/october 2006
ISSN: 017-467
pg. 6
TEAR OUT SECTION! pg. 9
Affiliate Services Directory
Volume 12, Number 5
www.gcaar.com
Many Homeowners Going Green to $ave $ome Green
Most people have preconceived notions about what it means to go “green.” You may
think of big changes such as hybrid cars, low-flow toilets, or solar panels.
Or you may think simpler green thoughts, such as recycling habits,
or even Kermit the Frog. No matter what comes to mind, many
view going green as something that is either too complicated,
too expensive, or just ‘not for me.’ But despite many
misconceptions, and the well known wisdom of everyone’s
favorite Muppet, it can be easy to be green.
that eventually find the way back to the homeowners,” says Emily English,
green building manager for NAHB.
According to data collected by the National Association
of Home Builders (NAHB), there was a 20% increase
in 2005 among homeowners who were focusing
their attention on green building issues. That
number is expected to jump to a 30% increase
this year. But why this newfound popularity for
being green?
One of the biggest reasons may be the financial
advantages to going green. Even though building
a new green home will average around 10% more in
construction costs, the increased premium is often more
than worth it in the long run. And as building green evolves,
many contractors learn how to deal with it more efficiently,
which can ultimately bring the cost even further down. “Our builders give
us examples of how building green is saving them on their bottom line—savings
Greater Capital Area Association of REALTORS®
8757 Georgia Avenue, Suite 600
Silver Spring, MD 20910
The 10-Second Rule
One of the most common reasons that people find themselves in
dangerous situations is that they weren’t paying attention. Take a
few precious seconds during the course of your day to assess your
surroundings.
Take 2 seconds when you arrive at your destination.
• Is there any questionable activity in the area?
• Are you parked in a well-lit, visible location?
• Can you be blocked in the driveway by a prospect’s vehicle?
Take 2 seconds after you step out of your car.
• Are there suspicious people around?
• Do you know exactly where you’re going?
Take 2 seconds as you walk towards your destination.
• Are people coming and going or is the area unusually quiet?
With rising energy prices a major concern for homeowners, it’s
a welcome benefit that many aspects of building green
can provide relief in energy costs. Energy-efficient
windows incorporate low-emittance technology
that keep homes cooler in the summer and keep
heat from escaping during the winter. Newer toilets
use redesigned bowls to reduce water usage but
still function as efficiently as higher-flow models.
Advanced shower and sink faucet aerators provide
the same flow regardless of pressure to reduce water
use and the energy required to heat it. Of course,
these aren’t just items to be included into a newly
built home. Most energy saving appliances, can be
easily installed in existing homes, even older ones,
creating immediate energy savings and increasing
the home’s appeal to potential buyers.
And it’s not just newer technologies that can make a
home green. Simple landscaping changes can also play
a big part. Tree preservation and placement can reduce
See GOING GREEN, page 11
• Do you observe any obstacles or hiding places in the
parking lot or along the street?
• Is anyone loitering in the area?
Take 2 seconds at the door.
• Do you have an uneasy feeling as you’re walking in?
• Is someone following you in?
Take 2 seconds as soon as you enter your destination.
• Does anything seem out of place?
• Is anyone present who shouldn’t be there or who isn’t
expected?
Safety in Just 10 Seconds
It takes just 10 seconds to scope out your surroundings and
spot and avoid danger.
See REALTOR® SAFETY, page 13
2
CAPITAL AREA REALTOR ®
2006 Board of Directors
President
IN
THIS ISSUE
Association News
- GCAAR in the News
Holly Worthington, CRB, CRS, GRI
President-Elect
Brenda Small, GRI
Treasurer
Joseph Himali, GRI
Technology
- Everywhere Access
Secretary
Dennis B. Melby
Immediate Past President
Susann H. Haskins, ABR, CBR, CRS, GRI
Chief Executive Officer/Publisher
Michael Moran
Directors
Janet Ballas, GRI
Sandy Bowser, GRI
Liz Brent, CBR
Sara Lou Cardwell, CBR, CRS, SRES
Anita Centofanti
Mark Drummond, GRI
K. Adrian Hunnings
Christopher Jeffries
Lewis Laws
Sidney Menkis, GRI
Barbara Miles, CBR, GRI, CRS
Shelly Murray
Betty Pair, CBR, CRB
Betty Pelzer-Sharper, ABR, GRI
Nancy Sturgill, ASB, CRS, GRI
Editorial/Advertising
Amy Ritsko-Warren
301.590.8764
[email protected]
Capital Area REALTOR® (ISSN 017-467) is published six
times a year (January/February, March/April, July/august,
July/August, September/October, November/December)
by the Greater Capital Area Association of REALTORS®,
8757 Georgia Avenue, Suite 600, Silver Spring, MD 20910.
Periodicals postage paid at Silver Spring, MD. Member
subscriptions account for $10 of each member’s annual
dues. Annual subscriptions are available to non-members
for $25. Subscription inquiries may be sent to Capital Area
REALTOR® at the above address. Copyright© 2006 by the
Greater Capital Area Association of REALTORS®. All rights
reserved.
POSTMASTER: SEND ADDRESS CHANGES TO CAPITAL
AREA REALTOR®, ATTN: GCAAR, 8757 Georgia Avenue,
Suite 600, Silver Spring, MD 20910.
The Greater Capital Area Association of REALTORS®
makes no warranties and assumes no responsibility for
the accuracy of the information contained herein. The
opinions expressed herein do not necessary reflect the
opinions of the officers, directors or staff of the Greater
Capital Area Association of REALTORS®.
Capital Area REALTOR®
Serving the Business Needs of OUR Professionals
3
7
b Remember to Vote
November 7, 2006
The primaries may be over, but don’t forget it still is important
to vote on Election Day! Plan ahead to take some time out of
your day on Tuesday, November 7 to make your voice heard
and vote for the candidates you support. Polls will be open
in Washington DC and Montgomery County from 7 am – 8
pm.
Public Policy
- Montgomery County &
National Legislative Briefs
antitrust quiz
- Realtor.com Q&A
11
15
of REALTORS® convention in New Orleans, November 10 13. Past Presidents George H.W. Bush and Bill Clinton are the
speakers for the general session on Saturday, and New Orleans
native Harry Connick Jr. will jazz it up at a concert on Sunday.
Dozens of sessions are scheduled to help you improve your
business, and the largest real estate Expo anywhere will give
you the tools you need to succeed. Check out the full schedule
and register today! http://www.realtor.org/convention.nsf/
b GCAAR Dues Billing Earlier
Be a Part of Your Association! in ‘06
Committee Sign Up
The dues billing for 2007 will be mailed November 8 and is
b
Getting involved in a committee will not only improve
your GCAAR experience, it will help improve your business
through increased knowledge of the industry and networking
opportunities. Committees range from Community Service
to Professional Standards. To see the full range of GCAAR
committees or to sign up, visit http://www.gcaar.com/
committee/. Committee applications are due Friday, October
20.
b NARdiGras
Don’t miss one of the biggest parties New Orleans has ever
seen! Now is the time to register for the National Association
due December 31, 2006. Don’t fall behind and get assessed a
late fee – pay your bill by the end of the year!
b Regional Sales Contract Podcast
and Training Dates
The new Regional Sales Contract went into circulation
September 1. Are you still not up to snuff on the changes? Check
out one of GCAAR’s free training sessions and download or
stream the audio from an interview with Contract and Clause
Committee Chairman Chris Darby to understand the changes.
http://gcaar.com/about/newregcontract.htm
Founding Membership
You are cordially invited to become a Founding Member
of the Greater Capital Area Association of REALTORS® Cares Community Fund
The names of the Founding Members will be on permanent display in the headquarters lobby of the
Greater Capital Area Association of REALTORS®
Founding Membership: $1,000 (open to individuals only)
For more information contact Amy Ritsko-Warren at 301.590.8764.
The Greater Capital Area Association of REALTORS®
accepts submissions of articles and photographs and
remains the property of the Capital Area Association
of REALTORS®. The publisher reserves the right of full
editorial authority and to decline publication of any
article not deemed proper. Deadline for all submissions,
including camera-ready advertising on disk or film, is
the first of the month prior to publication. Reprint with
permission only. Reprint permission may be obtained
by contacting the Greater Capital Area Association of
REALTORS® at 301.590.2000; via fax at 301.590.2248; or
via e-mail at [email protected].
REALTOR® is a registered collective membership mark
that identifies and may be used only by real estate
professionals who are members of the National
Association of REALTORS® and subscribe
to its Code of Ethics.
GCAAR Cares Community Fund
The mission of the GCAAR Cares Community Fund is to support the generous involvement of GCAAR members in the
communities they serve, and to promote their giving and service. Through supporting donations to housing related charities
and organizing participation in a variety of charitable events throughout the year, GCAAR provides opportunities for its
members to contribute time, energy, and effort to their communities. To date, the GCAAR Cares Community Fund has
donated over $65,000 to housing related charities since its inception in 2005.
Beneficiaries have included: Fannie Mae Help the Homeless Walkathon, Habitat for Humanity,
Housing and Community Initiatives, Montgomery Housing Partnership, Partnership for Housing
Foundation & Rebuilding Together. For more information about the Realtors® Care Fund:
gcaar.com/care
Founding Members: Kristin Gerlach, Susann Haskins, John Mammano, Barbara Miles,
Marie K. Shannon, Jackie Simon & Jacqui Taylor (as of August 29, 2006).
Capital Area Realtor®
A
3
SSOCIATION NEWS
Montgomery Housing Partnership
On August 12, GCAAR sponsored a “Back to School Bash” held by the Montgomery
Housing Partnership (MHP) at the Great Hope Homes Community Center in Silver
Spring. GCAAR’s sponsorship helped purchase backpacks and school supplies for thirty
students to begin the year. The purpose of MHP’s children’s programs is to help bridge
the performance gap for children of low-income families by preparing them for success
in school.
Help the Homeless Walkathon –
Saturday, November 18
Join the GCAAR Cares Crew to help stomp out homelessness in our area. As we’ve done
for many years, GCAAR is again a sponsor of this event. WE WANT YOU TO BE A
PART OF IT! It doesn’t cost you anything to join the GCAAR team. (If you choose to
do so, you may, of course, make a donation.)
Simply email your interest to Wesley Cronkite at [email protected] and block out
the morning of Saturday, November 18 to come down to the National Mall and walk
the 5K with us. Bring your office, colleagues, friends, and family. You can wear your
company’s shirt and pair it with a GCAAR Cares hat, or ask us for a GCAAR Cares
sweatshirt.
Help us show Washington that REALTORS® CARE about housing the homeless!
Andrew Eisel from Gerlach Real Estate helped distribute backpacks to grateful and excited students.
GC AAR IN THE N E W S
Housing Takes a Hit in ‘Still-strong’ DC Region
“Condos are the slowest part of the market, but that’s because there are so many of them available right now,” says Holly Worthington, president of the Greater Capital Area
Association of Realtors, which represents Realtors in DC and Montgomery County. “The single-family market is still strong. There have been fewer sales and homes are staying
on the market longer, but it’s a healthy market to buy in.”
- Washington Business Journal, June 16-22, 2006
Personnel
The Greater Capital Area Association of Realtors named Susann Haskins, a Long & Foster agent who was the association’s president in 2005, as its 2006 Realtor of the year.
- Washington Post, July 15, 2006
Cropp picks up another endorsement for DC Mayor…the latest business group to endorse Cropp is the DC Association of Realtors.
- Washington Business Journal, July 18, 2006
The Gift of Endorsement
Silverman has also been endorsed by some county groups including…the Greater Capital Area Association of Realtors and the Montgomery County College Democrats.
In a Slowing Market, Price is Only the First Step
Holly Worthington, president of the Greater Capital Area Association of Realtors and a managing broker for Long & Foster in Woodley Park, said single-family houses that sit
for three to four weeks need an adjustment. The amount “depends on how much very similar inventory there is in that particular area.” She defines the area as “that particular Zip
code, because buyers generally look beyond a specific neighborhood.”
In the condominium and townhouse markets, those with the lowest price win, agents say. “And it’s getting that way for single-family homes,” Worthington said.
Local News
GCAAR member Dianne Bailey appeared on Channel 22-WETA and Channel 26-Maryland Public Television, on August 18 for a segment on closing cost credits.
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EDUCATION SCHEDULE — september - October
TUESDAY, SEPTEMBER 26
FRIDAY, OCTOBER 6 (con't)
WEDNESDAY, OCTOBER 25
MD Legal Update
9:30 am – 12:30 pm
CEUs: 3 hours MD (required) &
DC (elective)
Location: Hilton in Gaithersburg
620 Perry Parkway, Gaithersburg, MD
Early bird— $40/$65
After 09/24— $65/$65
DC Legislative Update & Landlord/Tenant
Rights
1:30 – 4:30 pm
CEUs: 3 hours DC (required),
no MD or VA credit
Location: GCAAR Conference Center
8757 Georgia Ave., Suite 600, Silver Spring
After 10/04— $65/$65
Contract Basics Class
9 am – 4 pm
CEUs: No CE
**FREE**
WEDNESDAY, NOVEMBER 1
GRI 301: Environmental Issues &
Contracts, Settlement Procedures &
Disclosures
GRI 202: Contract Law & Condos and
9 am – 4 pm
Coops
CEUs: 6 hours DC & MD, 3 hours VA
9 am – 4 pm
Location: GCAAR Conference Center,
CEUs: 6 hours DC & MD, 3 hours VA
8757 Georgia Ave., Suite 600, Silver Spring After 10/30— $110/$140
MD Legal Update
After 10/09— $110/$140
FRIDAY, NOVEMBER 3
3:15 – 4:45 pm
GRI 302: Taxes
FRIDAY, OCTOBER 13
9 am – 4 pm
DC (elective)
GRI 203: Interpersonal Skills & Personal
CEUs: 6 hours DC, 4.5 hours MD, & 3
Assistants
hours VA
9 am – 4 pm
CEUs: 6 hours DC & 3 hours MD
After 09/24— $40/$40
8757 Georgia Ave., Suite 600, Silver Spring After 11/01— $110/$140
WEDNESDAY, SEPTEMBER 27 Early bird— $75/$110
Home From Work
After 10/11— $110/$140
MONDAY, NOVEMBER 6
9:30 am – 12:30 pm
GRI 303: Professional Standards,
CEUs: 3 hours DC & MD (pending)
MONDAY, OCTOBER 16
Mediation, Arbitration, and Procuring
GRI 204: Advanced Financing & Tenants
Cause
Rights
9 am – 4 pm
$25/$25
9 am – 4 pm
CEUs: 6 hours DC & VA, no MD credit
CEUs: 6 hours DC & MD
GRI 201: Pricing Property & Appraisal
8757 Georgia Ave., Suite 600, Silver Spring Early bird— $75/$110
9 am – 4 pm
After 11/04— $110/$140
CEUs: 6 hours DC & 3 hours MD
After 10/14— $110/$140
THURSDAY, OCTOBER 19
GRI 205: Agency Law & Buyer
After 10/02— $110/$140
Representation
9 am – 4 pm
FRIDAY, OCTOBER 6
CEUs: 6 hours DC, MD, & VA
DC Fair Housing & Predatory Lending
9:30 am – 12:30 pm
CEUs: 3 hours DC (required), no MD or
VA credit
After 10/17— $110/$140
After 10/04— $65/$65
MD Fair Housing Update
1:30 – 3 pm
DC (elective)
After 09/24— $40/$40
All dates and times are subject to change. Please visit www.gcaar.com for dates and registration.
6
Prices Still Holding, Sales volume slips
Montgomery County Market Report
By Fred Flick, Ph.D., Consultant/Housing Economist
DC Market Report
By Peter Clute and Fred Kendrick
The Maryland Big Picture
Looking at Maryland as a whole, June year-to-date
sales totaled 40,491 homes, but they have slipped
17% from the first half of 2005. This is a market
“correction” caused by fewer “deep-pocket” buyers in
the market place and sellers who are hanging onto the
prices of the recent past. Due to the “stickiness” in
prices, annualized price appreciation rates still have
been good. For the first six months, Maryland prices
averaged over $354,000 -- rising 9.5% above the same
period a year ago. But, this rate of increase is below the
11.8% rate for the first 4-months of the year.
Fred Flick
However, the unit decline is hurting brokers and
agents. Cumulative dollar volume through June was
a bit over $14.3 billion and for the same period a year
ago it was almost $15.8 billion -- a drop of over 9%. Unfortunately, June contracts
were down by almost 6% compared to June 2005. A big factor affecting prices is the
level of inventory. The June inventory of 187,893 units statewide was 136% of the
June 2005 level. Accordingly, it will take a while to whittle down this over-hang, and
that will eventually cause price appreciation to adjust to lower levels.
Single Family Homes
For Montgomery County, June single-family sales were significantly down, but prices
were still showing ability to move up. This softness in the pace of sales will continue
and appreciation rates will also slow in the near term.
Compared to a year before, June sales continue to trend down. Year-to-date contracts
(5,669) declined about 22%, and the monthly contracts (920) dropped over 39%
from a year earlier. Settlements performed similarly. Year-to-date settlements (5,064)
dropped 17.5%, and June settled sales (1,011) fell 29% compared to last year.
While monthly listings are down compared to a year ago, there still is a huge inventory
bulge. On the supply side, June total active listings of 3,834 are still up over 162%
from the level of June 2005. For the month, there were 1,936 new listings, but these
were down only 3.4% from the same month in 2005. At this recent contracts pace,
there was a 4.2 months supply of actives.
Nevertheless, single-family home prices continued to move up. June single-family
home prices averaged about $595,700 – rising 5.7% from a year ago. The month-tomonth rates of price increase are lessening with the slowing market. At the middle
of the price distribution, the June single-family median price came in at $486,173
moving just 4.6% above its 2005 value.
Condominiums and Cooperatives
In Montgomery County, the condo/coop market continues to be the weakest segment
of the housing market. June stats continue to show weakness in both contracts and
settled sales compared to a year ago. Nevertheless, prices still rose, but at much slower
rates. Again, the huge inventory of active listings is keeping the pressure on.
Compared to June 2005, the month’s new listings (496) rose 7.8%, but total actives
(1,025) were an astounding 277% above. At the monthly contracts pace, there was a
3.5 months supply of actives on the market.
Accordingly, the pace of condo/coop contracts and settlements has been leveling off.
Year-to-date settlements (1,553) slipped 17% and June settlements (273) dropped
25% from a year ago. As we would expect, the large inventory is taking its toll on
condo/coop price appreciation. The June condo/coop average price hit $310,764
– rising only 1.4% over a year ago. And, while the June median price was up 3.2%
to $283,900, we can see price appreciation rapidly softening in this market. The midpriced condos are selling, and there is a flattening in prices for the higher end units.
Recent Economic Trends
The Fed Funds rate moved to 5.25% in June. Recent economic activity suggests
See MC MARKET, page 12
The housing market slowed further in July. New
contracts for condominium and cooperative units
reached a five-month low while sales of single-family
homes were at their lowest monthly level of the year.
Seven months into 2006, the combined sales volume of
residential homes and units is 17% lower than it was a
year ago at this time. It is also lower than in each of the
three previous years but for these years the major cause
of the decline is the sharp slide so far in 2006 in the
number of single-family home sales.
Compared to 2005, the single-family decline is in
almost every price range while nearly 70% of the condo
and co-op price ranges show lower numbers. Compared
Fred Kendrick
to the 2002-2004 period, home sales are down by over
35% while unit sales show gains of 11% to 23%.
The overall inventory of residential properties for sale has remained relatively level over
the last three months although it is substantially higher than earlier in the year and
higher by far than in all of 2005. There is now a 4.5 month supply of homes and units
for sale whereas a year ago this supply index stood at 1.4 months. In perspective, the
National Association of Realtors® reports that the average national inventory now
stands at over 6 months.
Sales prices continue on a much more even pace than in the last several years. Seven
months into 2006, the average sales price for all residential properties was essentially
the same as at the end of 2005, but it was somewhat higher for single-family homes
and slightly lower for condos and co-ops.
Single Family homes
New contracts for single family homes
in July dropped 13% from the number
in June and were down 19% from July
of 2005. Sales were off in most price
ranges, but gains were seen by homes
priced from $500,000 to $600,000
(+28%), $800,000 to $900,000 (+16%),
$1,000,000 to $1,250,000 (+56%) and
over $1,500,000 (+78%).
For the year-to-date, single-family sales
are down 18% from a year ago with
sales gains only for homes priced from
$1,000,000 to $1,250,000 (+ 18%) and
over $1,500,000 (+6%). This increase
in upper-bracket home sales in July, and
throughout much of the year so far, is
one explanation why average sales prices
are higher despite the overall downturn
in the single-family market.
There is currently a 4.3 month supply
of homes for sale in Washington. The
inventory is up 60% from the beginning
of the year and double that of a year ago.
There was a particularly large number
of homes available in the $300,000
to $700,000 price range and over
$1,500,000.
The average sales price of single-family
homes is up 4% from all of 2005 and
6% when compared to this time a year
ago. The median, or mid price, is up
only 0.2% compared to 2005. In either
case, these are very modest increases
compared to the 23% average price
increase in 2005 and the 15% increase
in 2004.
See dC MARKET, page 12
Rachel Lenehan, Esq.,
R. Bradley Runyan, Esq.
& Patrick Tangney, Esq.
Professionalism,
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7
echnology
Everywhere Access
New technologies and tools deliver on the promise of the virtual office.
By Mike Antoniak
Remember the first time you heard the term virtual office?
More than a decade ago, there was more promise than practical value to the term. It
wasn’t until the roll-out of “hot spots” and wireless Wi-Fi networking that most could
actually work in the field with the same efficiency as in a conventional office. Of course,
if you strayed from a hot spot, you’d lose your Internet connection.
Over the past year or so, cellular service providers have made strides with broadband
cellular service, which finally delivers the true potential of the virtual office. For example,
Cingular Wireless, with its EDGE technology, and Sprint/Nextel and Verizon Wireless
with their EV-DO technology, are expanding a new infrastructure that will liberate you
from the hot spot. With either system, mobile practitioners can have broadband Internet
access anywhere and anytime cellular service is available.
Microsoft is also taking steps to make working virtually a practical option for all. Late
in June the company unveiled its plans for a “unified communications strategy.” The
strategy will combine the capabilities of mobile hardware and wireless technologies with
software that enables a sort of moving control center. Users will have 24/7 access to all
their communications and information resources from any device, from any location.
How to Get Started
Web-based faxing are essential to mobile productivity. Instant messaging is becoming
an increasingly popular form of correspondence, especially with younger consumers.
You also need control over how correspondence is routed to you and retrieved from any
location and a solution for sharing documents electronically. These require a voice and
data plan and strategy for wireless Web access. If hot spots are abundantly available in
your area, or you can plan your day around them, they’ll suffice. Otherwise, broadband
cellular service programs make sense.
•
Adequately equip yourself. The hub of the virtual office is hardware that allows
you to run software, work with documents, and access the Web. With smartphones, your
choice in hardware will be determined by your wireless provider. Providers offer a range
of models compatible with their system and services. Those who expect to rely primarily
on a notebook enjoy more latitude. Wireless modem and Wi-Fi networking are now
built into many models, or available as PC cards to make the systems compatible with
different services.
•
Consider software. With a notebook, your software travels with you. As
you move to more compact devices, though, you may require specialized versions of
applications you use — or new software entirely — to remain productive. Whether you
use software installed on your hardware or Web-based applications, the basics include a
Web browser, contact manager with calendar, and a productivity suite.
The virtual office may also introduce some unique software requirements for activities
such as mobile MLS access, creating mini tours sent from the field, and working with
electronic forms and contracts. Avanquest Software’s Connection Manager, for example,
automatically detects available networks for connecting to as you travel about, then
manages those connections in a secure environment.
In real estate, where quality of service is often evaluated in terms of responsiveness, it’s no
longer a question of if but how you’ll work from a virtual office.
Although it’s been a long time coming, the promise of the virtual office is finally available
and accessible.
To get started on your virtual office:
•
Determine your communications needs. Voice calling, mobile e-mail, and
Mike Antoniak is a freelance journalist who writes frequently on technology.
Reprinted from realtor.org, REALTOR® Magazine Online.
© Copyright, 2006, by the NATIONAL ASSOCIATION OF REALTORS®
3% Commissions.*
Brokers warmly welcomed.
Single Family Homes Now Selling from the $500’s. Townhomes Now Selling from the upper $300’s.
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MHBR#848
8
DC Legal Hotline Q&A
By Benny L. Kass
Below are some of the questions asked since first starting the HotLine Program for
Washington DC. The answers provided here are the opinions of the author, and are for
informational purposes only for the members of the Greater Capital Area Association of
REALTORS®. He is not providing legal advice, but rather providing only a general
statement of law. No lawyer-client relationship is – or will be – established as a result of
the material which follows. Readers are encouraged to retain their own counsel for their
specific questions.
Q: I have a property I want to rent but I do not usually handle rentals. I ran a credit check
on a prospective tenant and the results came back “not so great.” Can I ask the tenant
for proof of income, such as bank statements and statement of assets and liabilities? I
have already asked for personal and professional references, as well as a reference from the
previous landlord. If the prospective tenant refuses to provide this information, can he be
rejected for the rental?
A: In my opinion, you would be derelict in your duties if you did not ask for proof of
financial wherewithal. You owe a duty to the property owner to make sure that you will get
a solid tenant. You should also make inquiry of the potential tenant’s bank and employer.
The bank and the employer will not provide you information because of the privacy act,
but they should be able to confirm your statements. i.e.: “John Smith said that he earns xx
dollars a month; can you confirm?”
Unfortunately, some references may not tell the entire truth. For example, a landlord
may be so anxious to get rid of a tenant that a good reference may be provided even if
undeserved. While this is not proper, it does happen.
If the potential tenant refuses to provide you with relevant, pertinent information, you can
reject him/her. The human rights act in DC prohibits anyone from discriminating against
such classes as “age, race, religion, sexual preference, etc.” To be on the safe side, do your
homework before you turn this person down.
Q: Can a potential purchaser receive a gift (from a relative or anyone else) in order to
purchase real estate without having to pay tax on the gift? I have a prospective client in a
situation where someone wants to help them purchase property in DC.
A: Under current law, individuals can gift up to $12,000 per year without having to worry
about a gift tax. For example, a husband and wife (as two individuals) can give each of their
children up to $24,000 per year. However, you have to confirm with the lender whether
they have a limit on the gift amount a borrower can receive.
Under new rules of the IRS, I am obligated to disclose the following:
“IRS Circular 230 Disclosure: To ensure compliance with requirements imposed by the
IRS, please be advised that any tax advice contained in this communication (including any
attachments) was not intended or written to be used, and cannot be used, for the purpose
of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or
recommending to another party any transaction or matter addressed herein.”
Q: A brother and sister were tenants in common on a property they purchased together. The
sister died, and now her heirs (two sons) are claiming they are not obligated or responsible
for paying their mother’s share of the mortgage. Is this correct?
A: This is a legal question outside the scope of my hotline, and not one which I normally
answer. I do not know all the facts, so I cannot provide you with a complete response, but
below are some things to consider.
First, on the death of the sister, since property was held as tenants in common, the sister’s
estate has to go to probate. Currently, unless there is a probate initiated and a personal
representative (PR) appointed by the court, the sister’s share (which I assume is half ) is in
limbo. The property cannot currently be sold. Once a personal representative is appointed,
the sister’s share of the property will vest by operation of law into the PR. The PR will
have to publish notice of the death and although the property can be sold (if that’s what
the brother and/or the heirs want) the sales proceeds must be held for a six month period
during the advertising (publishing) period.
Did the sister have a will? If not, then by operation of the law of intestacy, blood relatives,
etc. will inherit her share.
Assuming that the two sons want to preserve any rights they may have in the property,
they should continue to pay their mother’s share of the mortgage. Otherwise, the lender
will (1) institute probate proceedings and (2) then foreclose, and the sons will lose out, as
will the brother.
However, the brother should carefully read the promissory note he and his sister signed
when they bought the property. I suspect that the language reads that the parties are
“jointly and severally” responsible to make the monthly mortgage payments. If that’s the
case, the brother must also make sure that the mortgage, insurance, and real estate taxes are
kept current, or the lender will foreclose and everyone will lose out.
The brother would be advised to seek legal counsel to determine his rights.
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Anderson & Quinn LLC
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DuFour & Orens Chtd
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Universal Appraisal Services, Inc.
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Jackson & Campbell PC
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John F. Wolf Jr. Attorney
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Moses & Aiken LLC
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Commission Express
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Centex Homes
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ONSULTING
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Creative Comm Mgmt Solutions
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ORPORATE
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Execustay, Inc.
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GMAC Mortgage
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Washington Post Newspaper
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202-334-7638
Alban Home Inspection Svcs, Inc.
Barbara Johnston
301-662-6565
Washington Post Newspaper
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Alan Lovinger
All Star Home Inspection, Inc.
Always Keep In Touch
301-309-0303
702-743-3461
Vimal Kapoor
[email protected]
Building Inspector of America
Kimberly Henderson
301-916-0300
Greater Washington Urban League
Gary Anderson
202-667-1530
Building Specs
[email protected]
301-855-3337
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Mark Dewey
My Moving Office
Home Pro Systems, Inc.
216-374-2611
703-560-4663
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Ryan Siegler
SwiftVal
Home Smart Home Inspections
703-459-8802
301-390-4663
[email protected]
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Triangle Communities
Dwight Reynolds
919-401-4577
HouseMaster of America
301-424-9360
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Samuel Sanchez
GMAC Mortgage
202-841-1600
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Alan Beal
Mid-Atlantic Inspection Srvcs
202-607-4153
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HSBC Mortgage
800-537-8705
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Premier Home Inspection
540-785-4524
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First Horizon Home Loans
301-493-8075
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First Horizon Home Loans
301-840-3885
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FNMC The Mortgage Co.
301-962-1520
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Brian Martucci
GetLoans.com Mortgage Broker
202-588-2400
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Denise Johnson
GMAC Mortgage
240-686-1817
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Sharon O’Brien
Hyland Financial
301-682-5303
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James Benton
Montgomery Residential Mort Co.
301-548-0665
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David Illes
Morgan Stanley
301-961-1809
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Nationwide Home Mortgage, Inc.
301-610-9600
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SunTrust Mortgage
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SunTrust Mortgage
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SunTrust Mortgage
202-624-1245
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SunTrust Mortgage
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Universal Title
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Universal Title
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Professionals Title & Escrow
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Village Settlements, Inc.
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Cosmopolitan Settlements
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Professionals Title & Escrow
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Democracy Title Corp
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RAS Settlement & Title Co LLC
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District Title A Corp
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Express Title Co
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Express Title Co
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Express Title Co
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Federal Title & Escrow Co
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Reges Real Estate Settlements
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Regional Title
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RGS Title
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Settlement Pros, Inc.
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Foundation Title
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Settlement Pros, Inc.
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Allen & Rocks, Inc.
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Heritage Title & Escrow
202-265-0535
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Signature Settlement Services
301-840-8988
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Allen & Rocks, Inc.
703-556-4000
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Heritage Title & Escrow
202-265-0535
David Schattenberg Comsource
Management, Inc.
301-916-7100
[email protected]
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Main Street Settlements, Inc.
301-570-3600
Henry Clarke
301-840-8988
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Gearhart & Associates
301-869-8811
[email protected]
Geraldine Franklin
Holladay Corp
202-362-2400
Stephen Leubecker
The Lenkin Co
301-654-2100
Steven Buckman
Lotstein Buckman/Palisades
202-237-6000
[email protected]
Lelia Payne
Shift 4 Realty Management, Inc.
240-694-8174
[email protected]
Frederick Scott
VanGuard Realty Group
301-547-1000
[email protected]
Colleen Smyth Cogan
Universal Title
301-670-0100
[email protected]
Lawrence Arch
CorTitle LLC
301-610-6333
[email protected]
Richard Stefanelli
Fenton Title Co
301-590-0220
P
Marty Stanton
Universal Title
301-421-1224
[email protected]
Jill Messier
MBH Settlement Group LLC
703-277-6800
[email protected]
Stuart Orns
Monarch Title, Inc.
301-946-8800
[email protected]
Erika Tucker
Monarch Title, Inc.
301-946-8800
[email protected]
Michael Bell
Montgomery Home Title, Inc.
301-622-6000
[email protected]
Craig Sacks
National Capital Title
301-948-2300
[email protected]
Janelle Gaughan
North American Title Co
202-237-8222
[email protected]
Lawrence Anderson
301-986-4880
[email protected]
Stephanie Koren
301-840-8988
[email protected]
R. Bradley Runyan
Stewart Title Group
202-349-0220
David Kanstoroom
The Sentinel Title Corp
301-907-3980
[email protected]
Debra Schroeder
Title Central Corporation
240-631-2200
[email protected]
Lauren Buchheister
Universal Title
301-468-2545
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James Griffin
Universal Title
301-468-2545
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Andrew Reckson
Universal Title
301-421-1224
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Tax-Masters, Inc.
301-230-0200
[email protected]
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Thomas Grooms
Advanced Pest Control LLC
877-724-7241
Julio Gonzalez
Capitol Termite & Pest Control
301-657-4480
[email protected]
Charles Moore
CW Termite & Pest Control LLC
301-549-4976
William Swearinger
CW Termite & Pest Control LLC
301-549-4976
Daphnee James
Daphnee’s Termite & Pest
301-953-7047
James Glazier
Infestation Control, Inc.
301-294-0800
[email protected]
t
ITLE
INSURANCE
Sara Demb
Capitol Title Insurance Agency
301-231-7250
[email protected]
Stanley Goldstein
Capitol Title Insurance Agency
301-231-7250
[email protected]
W
ARRANTIES
Marilyn Mitchell
2-10 Homebuyers Warranty
800-795-9595
[email protected]
Belinda Rankin
Home Warranty Plus by Sears
703-568-3154
[email protected]
P
11
ublic Polic y
Montgomery county Public
Policy Update
The bill still awaits Senate approval, but NAR is hopeful that it may win approval and
become enacted within the year.
ZTA 06-17, Accessibility Improvements – Exemption
In July the County Council approved legislation that permits private property owners
to make necessary improvements to their homes that will allow for accessibility features
to be added to a home without burdensome zoning requirements. GCAAR strongly
supported this legislation because the inventory of homes with accessibility options
is currently very limited and dwindling every day. The ZTA will expand the housing
options and choices that homebuyers with mobility impairments have to look at. It will
also allow homeowners who might develop mobility impairments, the ability to stay in
their current home and make improvements necessary to stay there. This in turn will
create a greater housing stock with accessibility features and more housing choices for
the disabled community.
NAR Testifies Before Congress on Competition in the Real Estate Market
In July, NAR President-Elect Pat Vredevoogd Combs testified before the House
Financial Services Subcommittee on the current state of competition in the real estate
industry, which has come under fire recently from many in the media, as well as certain
government officials. Vredevoogd Combs testified that real estate markets are essentially
local markets and that competition within those local markets is currently fierce and
healthy.
Zoning Text Amendment 06-22, Amendment to Include Real Estate Office as a
Permitted Use in the C1 and C2 Zones
Councilmember Praisner introduced this ZTA that proposes to include real estate offices
as a permitted use in the C1 and C2 zones. C1 and C2 are commercial zones (like
strip malls) that according to Chapter 59 of the county’s zoning ordinance does not
permit real estate offices. However, there are many real estate offices currently in C1
and C2 zones. Recently when a real estate company applied to open an office in a C1
zone they were denied this request. Therefore, Councilmember Praisner has introduced
this legislation to allow real estate offices in these zones and clarify that in the zoning
ordinance.
National Public Policy Update
House Passes FHA Reform
On July 25, the US House of Representatives voted overwhelmingly to approve changes
to the Federal Housing Authority which would allow it to compete with the private
sector when issuing home loans. The “Expanding American Homeownership Act of
2006” will relax limits put on the FHA which had kept it lagging behind in today’s
marketplace. The changes include:
• increasing the FHA loan limits nationwide and especially in high cost areas;
• eliminating the 3% down payment requirement;
• eliminating the cap on reverse mortgages offered by FHA;
• streamlining the FHA condominium loan program;
• extending the loan term to 40 years;
• and allowing FHA to charge risk-based premiums to borrowers.
Going GREEN, continued from page 1
energy and landscaping costs, as well as filter out pollutants,
improving the air quality around your home.
According to English, another low-tech, high-yield
tactic involves Xeriscaping, or using only native
plants to reduce the need for watering, fertilizer,
and pesticides, as well as to provide shading,
temperature control, and to control the amount
of natural light in a home. “Plants and trees
are very important. They are always helpful
to have on the property,” said English.
According to a recent survey conducted
by Project Evergreen, a non-profit group
which raises awareness about the benefits
of environmentally friendly landscaping,
90% of homeowners believe that landscaping
can improve their home value. But there’s
more than simply a curb value appeal to a new
landscaping approach. According to Den Gardner,
executive director for Project Evergreen, “We don’t
always connect the dots between the economic,
environmental, and lifestyle benefits they provide.”
Gardner says it’s the simple things that can make a yard environmentally
FDIC Temporarily Suspends ILC Applications
At the end of July, the Federal Deposit Insurance Corp., imposed a six-month
moratorium on Industrial Loan Company (ILC) applications, protecting, for the time
being, the separation of banking and commerce. NAR has fought hard to keep banks
out of commerce, specifically real estate, by asking the FDIC to uphold long-standing
legislation by not approving Wal-Mart Corp. and Home Depot’s applications to operate
and own a federally insured bank. The moratorium provides that the FDIC will not
issue any final decisions on the applications for the deposit insurance during the sixmonth time frame ending on January 31, 2007. During that time, the FDIC will
evaluate the need for clear-cut statutory, regulatory, or policy changes which NAR hopes
will narrow, or close completely, the loophole which allows businesses to own ILCs.
“Commissions, or the price for real estate services, are independently established by
each firm or broker, as are the commission splits with the affiliated agents. Many agents
are permitted to set their own commission rates and have the ability to negotiate what
services to provide to their clients within prescribed limits set by their broker,” said
Vredevoogd Combs, in an effort to rebut those who have criticized the industry by
oversimplifying conditions concerning the market.
NAR reports that today consumers have access to a vast amount of information about
the home buying and selling process. Even so, homebuyers and sellers still depend on
real estate professionals for their information, experience, and expertise to assist them
with the complex task of completing a real estate transaction. In the most recent NAR
survey of homebuyers, 77 percent reported that they used the Internet to search for
homes. The report also found that, of those homebuyers who use the Internet to search
for a home, 93 percent of them still use a real estate agent. That data contradicts those
who insist that REALTORS® employ efforts to quash competition from websites.
friendly, such as mowing and watering at the right times and adding nutrients
to the soil. He also says that there is a misconception about the cost
of green-friendly landscaping. Many big-box stores now offer
the same high quality materials that professionals would use,
so do-it-yourselfers can save money. “More and more
consumers are making landscaping a part of their
lifestyle,” said Gardner.
There are currently two sets of guidelines which exist
to encourage homeowners to build green. The NAHB
Model Green Home Building Guidelines and the US
Green Building Council’s Leadership in Energy
and Environmental Design (LEED) for Homes
initiative. In addition, the Energy Policy Act of
2005 encourages energy efficiency by offering tax
credits to those homeowners who build green.
But despite a growing number of forces working
hard to get the message out, the idea behind
going green is still often misunderstood.
One assumption associated with building green
is that the house has to be built differently and
made to look unique, setting it apart from nongreen homes. That simply is not the case said English.
“A green home can look just like the house next door.
It’s just built smarter.”
See GOING GREEN, page 13
12
dC MARKET, continued from page 6
Condominiums and Cooperatives
ago, sales are down – usually by double digit amounts – in most price ranges. The only
price ranges to show gains over 2005 to date have been units priced from $150,000 to
$200,000 and from $700,000 to $1,000,000. In comparison to earlier years, however,
all price ranges over $300,000 have shown solid gains.
New contracts for condo and co-op units also slowed in July – down 6% from June,
lower than any earlier month in 2006 except January and February, and 4% lower than
July of 2005. But in comparison to earlier years, they were 11% to 23% higher than the
July’s of 2002 – 2004.
There is currently a 4.6 month supply of condominium and cooperative units for sale.
This compares with a 2.9 month supply at the beginning of the year and 1.4 months a
year ago. Active listings are 213% higher than at this same time in 2005 so great caution
in pricing is critical in today’s sales market.
Year-to-date sales reflect much the same picture – down 14% from the same period of
2005, even with 2004 and ahead of 2002 – 2003 by 10% to 27%. Compared to a year
The average condo/co-op price is 4% lower at the end of July in comparison to all of
2005 and 2% lower than at this same time a year ago. Median prices are also down by
almost the same amounts.
MC MARKET, continued from page 6
a slowing economy, but recent personal consumption price indexes are showing
inflation considerably above the 2% maximum the Fed indicates it will tolerate. My
guess is that one more increase is in the cards, with a pause after the summer to see
how the economy responds.
Recent real GDP growth for the second quarter slowed to 2.5%, down from a 5.6%
rate in the first quarter. There’s no doubt the economy is slowing, but prices are also
rising and prices are ultimately what the Fed is concerned about. To be safe, I would
assume short term interest rates will still go up over the next month or so.
Consumer Prices and Energy Costs
The May 2006 consumer price index for the Washington-Baltimore metropolitan area
rose by 4.2% over the same period in the prior year. For all of 2005, metro area prices
increased about 4%. This figure makes sense given the level of federal spending in the
area, and it shows inflation is creeping up.
Based on the most recent national stats, the Consumer Price Index (CPI-U, seasonally
adjusted) in June rose 0.2% from its May level – and was up 4.3% from June 2005.
Energy costs declined from the previous month; but on an annual basis, June energy
prices were running about 23% higher. On the bright side, food was only 2.2%
higher than last June, and medical care was up a stunningly reasonable 4.1%. Most
importantly, the “core” rate (food and energy excluded) rose 2.6% -- higher than it has
been in recent months, and significantly above 2%.
The Bottom Line
So far, 2006 has been solid on home value appreciation, but sales are substantially
weaker and eventually appreciation rates will move lower. While they are not likely
to go negative for single-family homes any time soon, we could see some negative
appreciation for condo/coops. Sales units will definitely be lower this year, as will be
gross commissions. Interest rates will continue to rise for the near future, but the Fed
will probably take a breather for a while.
In a slowing market, where there is lower price appreciation and fewer sales, your job
requires a lot more negotiation work. Buyers are being picky, coming in with “low-ball”
offers, and demanding more home “fix-ups” to do a deal. And, there are still sellers
out there who believe that asking prices should be set by taking what they were a year
ago plus some percentage mark-up based on last year’s market. Your job is to get them
together, but first be realistic with your sellers about prices.
3% Commissions.*
Brokers warmly welcomed.
Townhomes Now Selling from the upper $300’s. Single Family Homes Now Selling from the $500’s.
At Greentree Homes, our broker compensation is as great as it has always been—a full 3% on the total sales
price, including options.* Rest assured, this isn’t a limited time opportunity. It’s what you can expect every time
you bring a client to Tuscarora Creek, Frederick’s most exciting new planned community featuring single family
homes, townhomes, a planned recreation facility, pool, childcare, ball fields and more. Visit today.
From Washington or Baltimore, take Rte. 15 N. to L. on Hayward Rd. to R. on Opossumtown Pike. Follow
Opossumtown Pike 1/4 mi. to L. on Poole Jones Rd. Follow Poole Jones Rd. which becomes Walter Martz Rd.
Continue Straight for approx. 1/2 mi. to Sales Center on R. For complete information, please call 301-620-9455.
Open Daily 11-6. www.buygreentreehomes.com
*Commissions based on full sales price including options. See Community Sales Consultant for complete details. Subject to change without notice.
MHBR#848
REALTOR® SAFETY, continued from page 1
13
1. Let the local police know when and where you are hosting an open house. Ask them
to have a squad car drive by at least once during the open house.
Safety With Promotional Materials
2. Inform a close neighbor that you will be hosting the open house, and ask if he or she
would keep an eye and ear open for anything out of the ordinary.
Consider these tips in preparing or updating the information you use to get business:
•
All of your marketing materials should be polished and professional. Don’t use
“glamour shot” photography or other personal enticements in advertising, on the
Web or on your business cards. There are many documented cases of criminals
actually circling photographs of their would-be victims in newspaper
advertisements. These victims were targeted because of their appearance in
the photograph.
3. When you first enter an empty home, check each room and determine several escape routes. Make sure all deadbolt locks are unlocked to facilitate a faster escape.
(Remember to lock up again when you leave!)
•
Limit the amount of personal information you share. Don’t use your full name
with middle name or initial. Use your office address rather than your home
address—or list no address at all. Giving out too much of the wrong information
can make you a target.
5. Scope out the backyard and make sure that if you had to escape by the back door, you
could get out of the yard. Check any gates.
•
Make phone numbers hard to trace. Rather than use your personal cell phone
or home phone number—which can be typed into some Web sites to find your
home address—consider using a toll-free number. This can’t be traced and
prospects may appreciate the free call. You can have calls to this number automatically
forwarded to any phone.
• Concentrate on your professional proficiency rather than personal information
in newspapers, resumes, and business cards.
• Be careful how much personal information you give verbally as well. “Getting to
know your client” does not mean sharing personal information about your
children, where you live, and who you live with.
• All agents in your office should use only their first initial and last name on their
“For Sale” signs to conceal gender and prevent anyone other than a personal
acquaintance or current client asking for you by name.
Open houses are regular events for REALTORS®, but they expose you to potentially
dangerous situations. Take these simple steps to help ensure your personal safety during
these events.
A home doesn’t need drastic changes to be a little greener. With these simple
strategies, homeowners can become more environmentally conscious, while
also saving on energy and maintenance costs.
CSL Light Bulbs- Creative Lighting System (CSL) bulbs can last up to
ten times longer than traditional light bulbs while also helping you conserve
energy.
Update Appliances- The energy efficiency of refrigerators and freezers
has tripled over the past 30 years. Front-loading washers use about 40% of
the water and only half of the energy of traditional models. The newer the
appliance, the more likely it is to use energy efficiently. And new appliances
can draw the attention of potential buyers as well.
Tree and Plant Preservation- Not only do trees and other large plants
near a home provide shading to help energy costs (tree shading homes can
6. Place one of your business cards, with the date and time written on the back, in a
kitchen cabinet. Note on it if you were the first to arrive or if clients were waiting.
7. When prospects begin to arrive, jot down their car descriptions, license numbers, and
physical descriptions.
8. When you show a home, always let the prospect walk ahead of you. Direct them;
don’t lead them. Say, for example, “The kitchen is on your left,” and gesture for them
to go ahead of you.
9. Notify someone in your office, your answering service, a friend, or a relative that you
will be calling in every hour on the hour. And if you don’t call, they are to notify the
police immediately.
10. Don’t assume that everyone has left the home at the end of your open house. Check
each room and closet and the backyard prior to locking the doors. Check any
windows or sliding doors to make sure they are still locked. Be prepared to defend
yourself, if necessary.
And as always, never hesitate to dial 911 when in an emergency.
10 Safety Tips for Hosting an Open House
5 Simple Tips for Going Green
4. Once you enter, turn on the lights, and open the curtains. These are not only good
safety habits, but can also help you sell the place.
Source: NATIONAL ASSOCIATION OF REALTORS’® 2006 REALTOR®
Safety Week Kit.
For more information or to access more safety tips or promotional materials, please visit, www.
realtor.org/about_nar/safety_week/index.html.
reduce attic temps as much as 40 degrees), but plants can filter up
to 60 lbs. of pollutants from the air each year.
*Source: Project Evergreen
Covered Entries- Simply covering a
walkway with a small eave or roof can
prevent water intrusion, which reduces
maintenance and enhances durability.
Change
the Faucets- By
updating to efficient shower and sink
faucet aerators, you can help to save
water and heating costs, all without
reducing the quality or pressure of the
faucets.
For more tips on going green, visit
www.nahb.org.
14
2 0 0 6
RPAC Contributors*
Golden R
$5,000 or more
Carole Maclure, ABRM CRB, Long & Foster Real Estate, Inc.
Jack Queen, Long & Foster Real Estate, Inc
Dale Ross, CRB, Pioneer Realty Inc.
Greater Capital Area Association of REALTORS
Training Sessions for
New Regional Sales Contract
The new Regional Sales Contract went into effect September 1. GCAAR has scheduled free
education forums for members to become familiar with changes in the new contract.
General Forum: October 18th, 2006, 1:30 - 3:30 pm
Silver Spring Location: 8757 Georgia Ave, Suite 600
Classes are free to all GCAAR members. No CE will be given.
Visit the REALTOR® Store from gcaar.com to register and check for additional class offerings.
Crystal ‘R’ RPAC Contributors
$2,500 or more
Dorothy Heymann, Fairfax Realty, Inc.
Dale Mattison, CRS GRI, Long & Foster Real Estate, Inc.
Back
to
Basics
Capital Area Real Estate Summit
Sterling ‘R’ RPAC Contributors
$1,000 or more
Elizabeth Blakeslee, GRI, Coldwell Banker Residential Brokerage
Ruth Dickie, CIPS, GRI, Long & Foster Real Estate, Inc
Liz Brent, Evers & Co Real Estate Inc.
Chuck Ebert, CAE, RCE, GCAAR
Jay Feldman, ABR CBR CRB CRS GRI,
Coldwell Banker Residential Brokerage
Marc Fleisher, Long & Foster Real Estate, Inc.
Susann Haskins, ABR, CBR, CRS, GRI,
Joseph Himali, CRS GRI, Best Address Real Estate LLC
Harold Huggins, CCIM, CPM, CRB, CRS, GRI,
Harold Huggins Realty Inc.
Adrian Hunnings, GRI, W.C. & A.N. Miller REALTORS®
Christopher Jeffries, Long & Foster Real Estate Inc.
James K. Kneussl, Jr., CBR GRI SRES, Weichert REALTORS®
Alana Lasover, Coldwell Banker Residential Brokerage
Jill Pogach Michaels, Pinnacle Title & Escrow, Inc.
Barbara Miles, CBR, CRS, GRI, Coldwell Banker Residential
Michael Moran, GCAAR
Shelly Murray, Weichert REALTORS®
Ned Rich, GRI, Long & Foster Real Estate Inc.
Peter Rucci, CRB, Long & Foster Real Estate, Inc.
Holly Worthington, CRB CRS GRI,
Long & Foster Real Estate Inc.
Capital Club
$250-$999
Mary Bajwa, SRES, Long & Foster Real Estate, Inc.
Sandra Bowser, GRI, Weichert REALTORS®
Barbara Casper, Jr., Long & Foster Real Estate, Inc.
Mark Drummond, GRI, Habitat Real Estate, Inc.
Anne Errigo, Long & Foster Real Estate, Inc.
Dennis Melby, Long & Foster Real Estate, Inc.
Sidney Menkis, GRI, Menkis Real Estate
Betty Pair, CBR CRB, Tutt Taylor and Rankin Real Estate LLC
Betty Pelzer-Sharper, ABR GRI, RE/MAX Realty Services
Kevin Reid Shirley, Long & Foster Real Estate, Inc.
Brenda Small, CBR GRI, Prudential Carruthers REALTORS®
Nancy Sturgill, CRS GRI, Weichert REALTORS®
Glen Sutcliffe, CRS, GRI, Long & Foster Real Estate, Inc.
Jacqui Taylor, GRI, Long & Foster Real Estate, Inc.
Patrick Weed, CBR CRS SIOR, Patrick Realty Company Inc.
Phyllis Wiesenfelder, CRB, Long & Foster Real Estate, Inc.
Jearline Williams, Randall H Hagner & Co.
“Dollar-A-Day” Contributors
$365
Sara Lou Cardwell, CBR, CRS, SRES,
Anita Centofanti, Long & Foster Real Estate, Inc.
Sonia Foronda, Fairfax Realty, Inc.
Lenn Harley, Homefinders.Com
Roberta Kimball, Long & Foster Real Estate, Inc.
Gregory Joseph, CRB, GRI, Long & Foster Real Estate, Inc.
Joseph Rubin, Long & Foster Real Estate, Inc.
* GCAAR records as of September 7, 2006.
SAVE THE
DATE!
Wednesday
November 29, 2006
at the
DC Convention Center
Watch for more details via e-mail
and in the November/December issue
of Capital Area Realtor®
REALTOR.ORG QUIZ ANSWERS
1. True- True, but your actions are extremely risky. An offer to
conspire on uniform competitive practices, followed by conduct
consistent with the acceptance of that offer, is sufficient to violate
antitrust laws and can be sufficient evidence to persuade a judge
or jury that you participated in the conspiracy, even if you did
not. Since you didn’t agree to the conspiracy you are, technically,
not a part of it. But since your actions are consistent with the
agreement, a judge or jury still may conclude that you are a party
to the agreement. The best way to avoid participation in an illegal
conspiracy is to openly reject and repudiate any offer to conspire
and to be sure that your subsequent conduct does not reflect
participation.
2. True- A broker may require salespeople working as
independent contractors to abide by the company’s commission
rate without violating any antitrust laws. An illegal price fixing
agreement must be among different “economic actors,” that
is, parties who have their own economic interests and are not
associated with the same company.
3. False- It doesn’t matter why competitors agree to engage in a
“group boycott” of a particular company, it’s an illegal boycott
nevertheless. Competitors may choose to not cooperate with
another company that they consider to be unethical — or for
any reason whatsoever (but subject to their fiduciary and fairness
duties to clients and customers) — as long as they do so acting
on their own, unilaterally. If they choose to not cooperate with
another company in agreement with other firms, they violate the
antitrust laws.
4. False- Stating that MLS members have an “informal
understanding” about properties with exclusive-right-to-sell
agreements could be understood by the seller to mean that
there is an informal agreement — which would be an illegal
conspiracy. An “informal understanding” is just as illegal as a
written agreement that all parties sign. Participants in an antitrust
conspiracy almost never put their agreement in writing, but that
merely makes the existence of the agreement, and the parties to it,
a bit harder to prove. It is an unlawful agreement nevertheless.
5. False- A company may offer any other company any
commission split it chooses, as long as it determines to do so on
its own and advises the other company privately and in advance,
such as by sending a letter to that company. A commission split
that differs from what is offered in the MLS to all companies
generally may be referred to as a “punitive split.” However, as
long as these commission splits are determined and offered
unilaterally and not in agreement with other firms, antitrust
laws do not prohibit them. This is true even if a number of
companies decide to offer a certain company the same split that
it offers to them, with the result that they all offer the same split
to that company. As long as each company can demonstrate that
it determined to offer a different split unilaterally and without
discussion or agreement with other firms, it is not illegal under
the antitrust laws.
6. False- The prohibition on price fixing forbids agreements
among competitors on prices, such as real estate listing
commission rates, including commission splits. The law does
not preclude a competitor who establishes its commission rate
unilaterally and without agreement with other companies from
advertising that commission rate. The law also allows that
competitor to engage in competitive advertising, in which the
company explicitly compares its stated commission rate to the
rates publicly promoted or advertised by other firms, provided
that the advertising was truthful and not misleading. In fact, the
policy underlying antitrust laws — promotion of vigorous and
healthy competition — would tend to favor and encourage such
comparative advertising since it helps consumers easily compare
and contrast prices offered by various companies.
7. False- This is a classic example of a group boycott — an
agreement among competitors not to do business with a
particular third party. This group boycott has the anticompetitive
effect of eliminating the opportunity for companies to try to
attract clients and customers by advertising in the newspaper. The
very fact that no company is willing to stop advertising unless
all others agree to do so illustrates this anticompetitive effect;
The firms are unwilling to lose the “competitive advantage” of
advertising unless others agree to do the same. The fact that the
agreement may have some beneficial effects for consumers —
even if true — will not save this agreement from being unlawful.
8. True- Just as ignorance of the law is no excuse, brokers’
ignorance of their salespeople’s conduct is no defense to an
antitrust charge. A brokerage company will be held liable for the
conduct of its salespeople whether or not the principal broker
was personally aware of their conduct. To safeguard against
antitrust violations, brokerages should adopt a written antitrust
compliance program, distribute it to every employee and
independent contractor, and review it with everyone twice a year.
15
REALTOR.ORG QUIZ!
AntiTrust Quiz
Q
Do you know the ins and outs of antitrust laws? If not, you should,
because real estate brokers and salespeople frequently cooperate
with one another in the sale of properties. They have numerous
opportunities to engage in conduct that might be construed as
violations of antitrust laws. Take the following quiz and test your
knowledge of the legislation that helps ensure a competitive and fair
market place.
&
1. Two competitors in my market asked me to cooperate
with them in setting a “standard” commission for the area. I
refused, but subsequently started charging the same rate that
my competitors suggested. Because I didn’t overtly agree to
participate in price fixing, I am not part of a conspiracy.
True or False
5. My company benefits from MLS participation, but we
don’t want to pay a cooperative commission split to real estate
companies that offer only nominal compensation on their
listings, which we think they include simply so that their listings
are shown on REALTOR.com and other public real estate
web sites. But if we decide to offer them the same amount of
compensation that they offer us, we’ll be breaking the law.
6. Antitrust price fixing rules do not allow a real estate company
to engage in a public advertising campaign that highlights the
commission rate it charges to consumers.
2. Even though my salespeople are independent contractors, I
may establish the commission rate for my company and require
salespeople to charge that rate.
True or False
3. Brokers who agree not to cooperate with another company,
such as by not showing that company’s listings, do not violate
antitrust laws if they enter into that agreement because they
consider the company’s aggressive “high-tech” marketing
techniques to be unethical.
True or False
A
7. Classified and display advertising rates in a local newspaper
have increased substantially, which hurts all the real estate
companies in town. Yet, no company is willing to stop
advertising for fear of losing clients and customers to their
competitors who continue to advertise at the high rates. To
pressure the newspaper to reduce rates, which would benefit the
companies and consumers, the real estate companies can legally
agree that they will stop advertising unless and until the paper
complies.
True or False
True or False
4. The best way to persuade sellers that they should enter into
an exclusive-right-to-sell agreement with you is to tell them
that MLS members have an “informal understanding” to show
buyers exclusive-right-to-sell listings first.
True or False
8. If one of my salespeople participates in a price fixing
discussion, my company can be held liable — even if I have no
personal knowledge of the salesperson’s conduct.
True or False
ANSWERS ON PAGE 14.
True or False
S C O R I N G
0-6
0-6 Make sure you educate yourself better on this
important issue. Study the Field Guide to Antitrust from
realtor.org to make sure your business practices are legal
and ethical.
7-8
7-8 You understand the implications antitrust law. Make
sure to stay on top of this issue by continuing to educate
yourself on antitrust business practices.
Reprinted from realtor.org, REALTOR Magazine Online
© Copyright, 2006, by the NATIONAL ASSOCIATION OF REALTORS®
16
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Many Homeowners Going Green to $ave $ome Green

Transcription

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