July 08v2.qxp - Austin Board of REALTORS

PRSRT STD
U.S. POSTAGE
PAID
AUSTIN REALTOR
®
Austin, TX
Quarry Oaks Atrium
10900 Stonelake Blvd., Suite 100
Austin, Texas 78759
Permit No. 1244
2008
Diamond
Sponsors
The following Affiliate members of the Austin Board of REALTORS®
are 2008 Diamond Sponsors. These sponsors have volunteered additional financial support to the Association’s programs. Please remember
them when doing business, and always use an Affiliate first.
AUSTIN REALTOR
®
Volume XV
Issue 7
We’re Working For You
July 2008
Keys to Creating Your Best Professional Image
teaches agents how to improve
their professional images. What
follows are a few of her most
important lessons.
Renowned real estate instructor
and REALTOR® Marcie Roggow
understands the importance of a
professional image in the real
estate industry. In her popular
course, “Personal Skills for
Professional Excellence,” Roggow
Your Industry, Your Image
INSIDE:
Today’s consumers have a number
of options for buying or selling
their homes, from working with a
REALTOR® to going it alone.
While the definition of a professional image changes with each
profession, Roggow notes that all
professional images “let others
know that you are competent,
confident and considerate.”
Remember that you wield as
much influence on your company’s
images as your company does on
yours. Your colleague’s professional image — or lack thereof —
can impact the way clients see you.
Dress for Success
Because acceptable business dress
has changed so much over the past
10 years, it can be difficult to
See “Professional Image...” on page 13
ABoR Committee Forms Now Available
New Statistical Report Targets Residential Properties
Legal Topics: Understanding the Risks of Seller Financing
®
AUSTIN REALTOR
The Austin REALTOR® is published monthly by the Austin Board of REALTORS®, Quarry Oaks Atrium, 10900 Stonelake Blvd., Suite 100, Austin,
Texas, 78759, 512/454-7636. Members are encouraged to submit articles,
announcements and ideas to [email protected]. Deadline for submissions
is the 15th of the month prior to publication date. For advertising information, visit Abor.com; information is available in the “About ABoR” section.
Editor
Angela Brutsché
Assistant Editor
Katie Pfeil
Contributing Editors
Emily Chenevert/
Government Affairs
Sylvia Medrano/MLS
Sally B. Yaryan/Education
Board of Directors
Socar Chatmon-Thomas
Chairman of the Board
Coldwell Banker United,
REALTORS®
512/328-8200 / fax: 328-2559
[email protected]
Jay Gohil
Chairman-Elect
Jay Gohil Realty
512/258-4248 / fax: 258-1234
[email protected]
John Horton
Secretary/Treasurer
Realty World-John Horton &
Associates
512/834-1600 / fax: 834-2234
[email protected]
Jeanne Butterfield
RE/MAX Austin Associates
512/328-8333 / fax: 328-1763
[email protected]
Leonard Guerrero
J.B. Goodwin, REALTORS®
512/502-7800 / fax: 346-3711
[email protected]
Shelia Hawkins-Bucklew
Coldwell Banker United,
REALTORS®
512/343-7500 / fax: 343-1224
[email protected]
D.A. Henry
The Aldion Group Realty
512/892-4474 / fax: 892-5325
[email protected]
Charles R. Porter, Jr.
Immediate Past Chairman
Bryker Properties
512/476-3793 / fax: 476-4273
Jeff Osborne
RE/MAX Capital City
512/331-6644 / fax: 331-7480
[email protected]
[email protected]
David M. Foster, CAE, RCE
President and CEO
512/454-7636 / fax: 454-5369
[email protected]
Julie Potts
Hill Country Property
Management
512/346-3309 / fax: 346-2359
Paula Adkins
Paula Adkins Real Estate, LLC
512/383-0938 / fax: 383-1113
[email protected]
Gloria Arroyo-Richardson
Town and Country Realty
512/244-2761 / fax: 244-0675
[email protected]
[email protected]
John C. Shepherd
HomeSource
512/472-4663 / fax: 462-3888
[email protected]
Joe Williams
Keller Williams Realty
512/346-3550 / fax; 346-9634
[email protected]
Judith Bundschuh
Realty World-John Horton &
Associates
512/330-9299 / fax: 347-9651
[email protected]
AUSTIN REALTOR®
Industry News
service survey beginning in July.
Updates to TREC
Fingerprinting Policy
Approximately 600 members will
be selected at random by Loyalty
Research Center, an independent
firm, to participate in twentyminute telephone surveys.
Findings from this survey will be
used determine new means of serving our members, and published
results are expected in the fall.
The Texas Real Estate
Commission (TREC) now allows
real estate brokers and salespersons
renewing their licenses on time to
continue practicing real estate
while they obtain their fingerprints, provided deadlines for all
other license renewal requirements
are met. Licensees awaiting fingerprints will have a new expiration date attached to their
renewals and will show as “active”
in TREC Web site searches.
Licensees who are new or renewing late will not be approved until
TREC receives fingerprint results
that require no further review.
Should TREC receive unreadable
fingerprint results, they will contact the licensee or applicant.
Licensees whose fingerprints are
unreadable may schedule one free
re-printing session by contacting
IBT at 888/467-2080. Re-prints
may not be scheduled online and
must be taken within 30 days of
the license renewal date.
To check the status of your fingerprinting, visit the licensee search at
www.trec.state.tx.us. For more
information on the fingerprinting
process, visit www.trec.state.tx.us/
FASTPrintPass.
ABoR Customer
Service Surveys to
Begin in July
At ABoR, we strive to provide
members with the best possible
products and services. To ensure
that we meet your needs, we will be
conducting an in-depth customer
2
Watch your inbox for unapproved
surveys being distributed via email. An unsolicited e-mail was
recently distributed by Agent
Premier Web. The company does
not represent the Austin Board of
REALTORS®. ABoR’s authorized
customer service survey will be
conducted by telephone.
Deadline for Ethics
Training Approaches
The National Association of
REALTORS® (NAR) requires that
all new members complete mandatory ethics training within one year
of joining and that established
members attend an ethics course
once every four years. The cut-off
date for the current four-year cycle
is December 31, 2008. Avoid
membership suspension by satisfying your ethics requirement today.
ABoR offers a number of ways to
complete your ethics training.
Attend one of the NAR or TREC
ethics courses offered monthly at
ABoR. Visit www.abor.com/
courses for schedules and registration. If your time is limited,
try a free online ethics course from
NAR, found at www.realtor.org/
mempolweb.nsf/pages/
coetraining.
If you have taken an ethics course
with a provider other than ABoR,
July 2008
Help shape your association by
joining an ABoR committee.
Beginning Tuesday, July 1,
ABoR will be accepting requests
for 2009 Committee assignments.
ABoR offers a wide variety of
committees, from Realty Round
Up to Professional Standards to
Government Affairs. Find the
best way to utilize your talents by
reviewing the committee list at
www.abor.com/about_abor/
committees.cfm.
The deadline for submitting committee requests is Sunday, August
31. All members interested in
joining a committee in 2009,
including members currently acting on a committee, must complete a committee request form for
2009. The form is available online
at www.abor.com/committees/
ABoR congratulates Brian
Pitman, president and COO of
Independence Title
Company for
being named
Title Person
of the Year
by the Texas
Land Title
Association
(TLTA).
Pitman was recognized for his
significant contributions to the
title industry in both service and
leadership. The Title Person of
the Year award is the highest
accolade bestowed by TLTA.
In 2005, Pitman and his partner
Jay Southworth founded
Independence Title in Austin,
Texas. Their company has expanded to include 24 offices throughout Central Texas. Pitman has also
held leadership positions with
TLTA and the Independent Title
Agents of Texas. ABoR wishes
Brian continued success in the
title industry.
The Austin Board of REALTORS® thanks
CenTex House Leveling
for sponsoring the July
New Member Orientation
AUSTIN REALTOR®
3
J U LY
ABoR Member Receives
Highest TLTA Honor
Upcoming Events
AUGUST
ABoR Committee
Nomination Forms
Now Available
abor_committee_form.cfm.
All committee members are
required to have valid e-mail
addresses. For more information
on ABoR committees, contact the
Executive Department at
[email protected].
SEPTEMBER
you must submit your ethics completion certificate or your education record from the Texas Real
Estate Commission (TREC) to
ABoR’s Education Department.
Submit your forms by fax to
512/454-1730; by e-mail to [email protected]; or by post to
the Education Department,
Austin Board of REALTORS®,
Austin Texas, 78759. TREC education records are available at
www.trec.state.tx.us.
4
ABoR Office Closed
Independence Day
11
New Member Orientation
8:45 - 11 a.m.
ABoR Auditorium
25
1
21
29
31
MLS Lunch and Learn
11 a.m. - 1 p.m.
ABoR Auditorium
New Member Orientation
8:45 - 11 a.m.
ABoR Auditorium
ABoR TREPAC Wine Tasting
6-8 p.m.
Crú Wine Bar
For more information, contact the
Government and Community Affairs
Department at 512/454-7636
MLS Lunch and Learn
11 a.m. - 1 p.m.
ABoR Auditorium
Application Deadline for ABoR
Committee Assignments
Applications available online at
www.abor.com/committees/
abor_committee_form.cfm
1
ABoR Office Closed
Labor Day
5
New Member Orientation
8:45 - 11 a.m.
ABoR Auditorium
9-11
TAR Annual Convention,
San Antonio
For details, visit
www.texasrealtors.com
15
26
ACTRIS Participation Fees Due
MLS Lunch and Learn
11 a.m. - 1 p.m.
ABoR Auditorium
July 2008
EDUCATION
1
August
Educational
Courses
2
Code of Ethics: Your
Promise of
Professionalism
Visit Abor.com for
July Course Offerings
3
4
Quick Start
5
Quick Start
6
7
8
Quick Start
Quick Start
TREC Ethics MCE
Texas Promulgated
Contract Forms
The Foreclosure
Process in Texas
TREC Legal
Update MCE
9
Understanding Real
Estate Appraisal
10
17
11
12
13
14
15
GRI2
GRI2
GRI2
GRI2
GRI2
18
19
20
21
22
23
28
29
30
Accredited Buyer
Representative
(ABR)
Accredited Buyer
Representative
(ABR)
16
Advanced ABR:
Effective Negotiating
for Real Estate
Professionals
Advanced Internet
Training
24
25
26
27
31
AUSTIN REALTOR®
Registration Information
To register for an MCE course, visit the
“Courses” section of Abor.com or contact Shirley
Williams, education coordinator, at 512/454-7636,
ext. 1602. If you are in need of special assistance, please allow five days advance notice.
4
July 2008
Course Descriptions
Understanding Real Estate Appraisal
August 7 (1:30-5:30 p.m.) | Instructor: David McCollum
Taught by a licensed inspector, this course covers the many different aspects of Texas regulated real estate inspection,
including the legal procedure, liability, promulgated forms and standards of practice required to perform an inspection.
By the end of the course, you will understand how an appraisal is prepared and how to more expertly prepare a CMA.
TREC # 04-00-039-5767 (4 hrs. MCE) | Cost: $36 members/$44 non-members
Code of Ethics: Your Promise of Professionalism
GRI2: Real Estate Marketing
August 1 (1-4 p.m.) Instructors: Bill Evans, Charles R. Porter, Jr.
TREC # 03-00-049-5827 (3 hrs. MCE)
Cost: $27 members; $33 non-members
Covering the importance of the REALTOR® Code of Ethics, members are required to take the course once every four years, and new
members must complete the course within a year of joining.
August 11-15 (8:30 a.m.-5:30 p.m.) Instructor: Mark Porter
Provider # 0001(30 hrs. core credit of 9 hrs. MCE)
In June 2008, the GRI program underwent significant changes to
better align with National Association of REALTORS® (NAR)
benchmarks and Texas Real Estate Commission (TREC) requirements for CORE courses. This course aligns with what was formerly GRI-2. Topics include seller services, buyer services,
communications technology and real estate technology.
Quick Start
August 4-7 (8:30 a.m.-5:30 p.m.) Instructors: Carol Medley Parker
and Pat Strong
Provider # 0001 (30 hrs. core or 9 hrs. MCE)
Cost: $175/$200 late members/$200/$225 late non-members
The four-day Quick Start training course helps new agents succeed and is an effective refresher course for established agents.
Texas Promulgated Contract Forms
August 6 (8:30 a.m.-5:30 p.m.) Instructor: Gordon Gorychka
TREC # 08-00-070-6973 (8 hrs. MCE)
Cost: $72 members/$88 non-members
This course provides a comprehensive review of the contract forms
currently promulgated by the Texas Real Estate Commission.
The Foreclosure Process in Texas
August 7 (8:30 a.m.-12:30 p.m.) Instructor: Randy Gool
TREC # 04-00-098-5209, Provider # 0355 (4 hrs. MCE)
Cost: $79 members/$90 non-members
Course instructor Randy Gool offers real estate professionals an
overview of the foreclosure process. Gool has been active in the
Central Texas foreclosure market for over 12 years.
TREC Ethics MCE
August 8 (8:30 a.m.-12 p.m.) Instructors: Stuart Campbell, Gordon
Gorychka, Charles R. Porter, Jr.
TREC # 03-03-129-6497 (3 hrs. MCE, 3 hrs. legal)
Cost: $27 members/$33 non-members
TREC-required for license renewal, this course is also accredited
as NAR mandatory ethics training.
Accredited Buyer Representative - ABR Designation Course
August 18-19 (8:30 a.m.-5:30 p.m.) Instructor: Lynda Conway
TREC # 15-00-020-6750 (15 hrs. MCE)
Cost: $275/$300 after August 11
This designation program will create new business opportunities for
you. One advanced ABR course and a record of five closings using
a buyer rep agreement are required to complete the designation.
Advanced ABR: Effective Negotiating for Real Estate Professionals
August 20 (8:30 a.m.-5:30 p.m.) Instructor: Lynda Conway
TREC Approval Pending (8 hrs. MCE)
Cost: $100/$125 after August 11
Learn to secure the best outcomes for your clients and communicate
under pressure with effective negotiating techniques. This class satisfies the advanced ABR course requirement for the ABR designation.
Advanced Internet Training
August 20 (1-5 p.m.) Instructor: Kelly Porterfield
TREC # 04-00-099-6402 (4 hrs. MCE)
Cost: $60
Class will be held in the ABoR Computer Lab
This hands-on course covers advanced features of Microsoft
Internet Explorer and Outlook Express, along with advanced
search engine techniques and Internet security issues.
TREC Legal Update MCE
August 8 (1-4:30 p.m.) Instructors: Stuart Campbell, Gordon
Gorychka, Charles R. Porter, Jr.
TREC # 03-03-129-6496 (3 hrs. MCE, 3 hrs. legal)
Cost: $27 members/$33 non-members
Required for license renewal, this course reviews recent court cases,
TREC rules and forms, do-not-call lists and mortgage fraud.
AUSTIN REALTOR®
5
July 2008
GOVERNMENT AFFAIRS
Wine Lovers Gather at Crú
Joint Fundraiser a Huge Success
Get ready to step out for your industry. This year,
the popular TREPAC Wine Tasting fundraiser will
be held at the premiere wine bar Crú in the Domain
shopping center, located at 11410 Century Oak
Terrace, Ste. 104, Austin Texas, 78758. The event,
which benefits the Texas Real Estate Political
Action Committee (TREPAC) is scheduled for
Thursday, August 21 from 6 to 8 p.m.
Cheeseburgers in Paradise, the first TREPAC
fundraiser hosted by both ABoR and the
Williamson County Association of REALTORS®
(WCAoR) was the place to be on June 23. The two
associations moved to the island groove at Falcon
Pointe’s premiere Residents’ Club.
Enjoy wines from around the globe in a refined yet
cozy setting. And don’t forget to bring your checkbook for the silent auction! Your $40 ticket
includes wine sampling, hors d’oeuvres and a chance
to network with your fellow Austin REALTORS®.
All ticket proceeds are a direct investment in
TREPAC. Advertising opportunities for this event
are also available.
For more information on the fundraiser and advertising opportunities or to purchase tickets, contact the
Government and Community Affairs Department at
512/454-7636 or [email protected].
Invest in Your Industry —
Invest in TREPAC
The Texas Real Estate Political Action Committee
(TREPAC) works to elect officials who are committed to protecting the real estate industry and private
property rights. Your TREPAC investment serves as
an insurance policy against legislation harmful to
your profession.
With the help of many tasty cheeseburgers and margaritas, this event raised over $7,000 for TREPAC.
A special thanks is extended to members of both
associations’ Political Action Committees and event
sponsors Newland Communities, Highland Homes
and Champions School of Real Estate.
Keep Austin Affordable: Show
Your Support with Free Yard Signs
Free Keep Austin Affordable signs are now available
for ABoR members at our REALTOR® Store. The
durable corrugated plastic signs are an effort to urge
Austin City Council members to refrain from implementing energy-efficient mandates to homes at the
point of sale.
Visit the REALTOR® Store, located at Quarry Oaks
Atrium, 10900 Stonelake Blvd., Ste. 150 today for
your free sign. Please note that there is a limit of
five signs per member. For more information, contact the Government and Community Affairs
Department at 512/454-7636 or
[email protected]. To learn more about the
City of Austin’s Energy Efficiency Retrofit Task
Force, visit www.keepaustinaffordable.org.
As the need to safeguard our industry grows, so does
our TREPAC fundraising goal. September 30
marks the deadline for ABoR to meet its objective
of $230,000. To date, your generous donations have
raised 70 percent of our target amount, but we still
need your assistance.
Help us meet our fundraising goal by attending an
upcoming TREPAC event, investing online at
www.abor.com/gov_affairs/home.cfm or mailing
your contribution to the Government and
Community Affairs Department, Austin Board of
REALTORS®, 10900 Stonelake Blvd., Ste. 100,
Austin TX, 78759. With your contributions, we
can make 2008 a year to remember.
AUSTIN REALTOR®
6
July 2008
Foundation Scholarship Recipients Honored at Dell Diamond
(Right) ABoR Foundation directors (from left) John Horton of
Realty World-John Horton, Laura Pagnozzi of Independence
Title, Carol Medley Parker, ABoR Foundation chair, of
Coldwell Banker United, REALTORS®, Kara McGregor of
Independence Title and Judith Bundschuh of Realty WorldJohn Horton helped make the event a rousing success.
(Right) Scholarship
recipients joined
scholarship donors on
the field of the Dell
Diamond for a special presentation on
June 18. Due to
generous contributions, the ABoR
Foundation was able
to award 10 scholarships to Central
Texas high school
seniors this year.
(Above) Terese Peabody of Stanberry and Associates received
the Charlotte London Memorial Scholarship. Mitchel London
presented the scholarship on behalf of the Central Texas
CCIM Chapter.
(Above) Darlene King of McCallum High School enjoys the burger buffet at the ABoR
Foundation Evening at the Dell Diamond. King received the Lisa Foster Scholarship.
(Left) Carol Medley Parker of Coldwell Banker United, REALTORS® and Laura Pagnozzi
of Independence Title present William “Rocky” Suida of Fairway View Homes with the autographed Nolan Ryan baseball he won in the Foundation’s pre-game raffle.
AUSTIN REALTOR®
7
July 2008
MLS UPDATE
New Links Bring More Resources to MLXchange
MLXchange now contains even more helpful information, thanks to new links in the “My Sidebar” and
“Resources” sections. Expand the “My Sidebar” feature
by clicking on the yellow banner on the left side of all
MLXchange pages. The “Resources” section can be
found on the right side of the MLXchange homepage.
A new link has been added to the “Tax Sites” section. Labeled as “TX County Tax,” the link helps
you locate county tax Web sites throughout Texas.
If you have a listing within Texas but outside of the
ACTRIS area, use this resource to find the property’s
tax information.
Looking for a county Web site? Web addresses for all
15 counties serviced by ACTRIS can be found in the
“County Sites” section.
The “City Map Sites” section offers links to Web sites
for many cities covered by ACTRIS. These Web sites
contain a variety of maps, including Geographical
Information System (GIS), Extraterritorial Jurisdiction
(ETJ) and zoning maps.
In the “School Districts” section you’ll find links for
the school districts within the ACTRIS area. School
districts are divided into two groups, A-J and K-Z.
The “MLXchange Class Handouts” section contains
information that is distributed during ABoR’s MLS
courses. Handouts are provided for many different
aspects of the MLXchange system, including Listing
Maintenance, Comparative Market Analysis (CMA)
reports and Client Relations.
Condos and Houses: What’s the Difference?
At the request of ACTRIS subscribers, two new property subsets have
been added to the “Condo” property field: “Condo Attached” and
“Condo Detached.” These additions to the MLS system improve marketing options for free-standing single family structures that look like
homes but are zoned as condominiums. However, some subscribers still
wonder what separates houses and condominiums.
A property’s type is determined by ownership. A condominium is
owned by multiple individuals who have joint ownership of commonly
used property including sidewalks, stairs, septic systems, etc. With condominiums, each resident has an equal share in ownership of the common areas. Conversely, a house is a structure or space where one owner
controls the entire property. There is no shared property for homes.
The differences in house and condominium ownership explain why a
condominium cannot be listed as a house in the MLS system. While
some condos may lack shared walls, they still hold commons areas in
common ownership. Only properties for which the owner has total
ownership of the structure and surrounding areas may be listed as houses
in the MLS system.
Questions regarding property types may be directed to the MLS Support
Team at 512/454-7636 or [email protected].
AUSTIN REALTOR®
8
Update to MLS
Course Cancellation
Policy
If you register for an ABoR
MLS course and discover you
cannot attend, you may now
cancel your reservation online.
Simply visit Abor.com and log
in to the “My Account” section. Review the “Registered
Courses” panel on the right
side of your screen and click
on the course you wish to cancel. A pop-up window will
appear, allowing you to confirm your cancellation request.
ABoR policy requires that
students cancel course reservations at least 24 hours prior to
the start of the class to avoid a
$25 fine. Online course cancellation is only available for
MLS courses. To cancel an
MCE course, contact ABoR’s
Education and Professional
Development Department at
512/454-7636.
July 2008
Realist Improves CMA
and Map Features
Recent updates to the Realist tax
system allow MLS subscribers to
create more comprehensive CMAs
and expand the system’s mapping
functionality. Enhancements to
Realist include:
• An increase in Comparable
Search Results that allows you to
compare 50 properties instead of
only 20. Use the dropdown
menu labeled “Total Comps to
Return” to update the number of
properties.
• A comparable search option
which enables you to compare
records using the recorded date or
the settle/sale date. Access the
comparable search options through
the “Preferences” link found at the
top of each page.
• New layers for city and county
boundaries as well as ZIP code
boundaries on Realist maps. To add
a layer to your map, select the
“Boundary” button at the bottom of
the map, then choose the boundary
you wish to apply. Only one layer
may be used at a time.
• A “Mini Map” tool that shows
the geographical context of your
map. Selecting the Mini Map link
at the top of your Realist map will
open a smaller “picture-in-picture”
map that features a greater portion
of the mapped area. Mini maps may
be viewed in street or aerial format.
New Statistical Report
Highlights Residential
Listings
Beginning July 10, ACTRIS subscribers will have a new way to
view and analyze market statistics
for residential properties. The
monthly MAAR residential sales
report, produced by the
Minneapolis Area Association of
REALTORS® (MAAR), provides
comprehensive information in
easy-to-read graphs.
Similar to the statistical reports
produced by the Texas A&M
University (TAMU) Real Estate
Center, the MAAR residential
sales reports contain information
on new listings, pending sales and
closed sales. However, MAAR
residential sales report content is
specifically formulated for singlefamily homes and townhouses/condominiums. Housing affordability
indexes and housing supply outlooks are also included in these
comprehensive reports. ABoR
will provide the new MAAR residential sales reports in conjunction
with the reports generated by the
TAMU Real Estate Center.
Find the MAAR residential sales
reports online in the “Area Market
Statistics” section, located within
the “News and Media” section of
Abor.com. Download reports
from the MAAR residential sales
reports box on the right side of
the screen. Reports will also be
housed in the “My Sidebar” section of MLXchange.
Linking Accounts,
Simplified
Do you work with an MLS subscriber or assistant who requires
access to your listings? Maybe you
need a colleague to manage your
listings while you are away from
the office for extended periods.
With MLXchange’s Identity
Sharing feature, providing other
subscribers with access to your
account is easier than ever.
In the past, only ABoR staff could
link accounts. Now subscribers
have the power to grant and
revoke access to their accounts 24
hours a day, seven days a week
with the new online service. Find
detailed instructions for linking
accounts at https://www.abor.
com/mls/mlxpro.cfm.
Target Your Niche with MarketMetrics
If you are looking for an easy way to extract information for a specific location, we have the solution.
Beginning August 1, ACTRIS subscribers can access
Clarus MarketMetrics, a free Web application.
MarketMetrics allows MLS subscribers to harvest
detailed statistics by ZIP code, subdivision, MLS
area and more. Results are presented in graphs
ideal for inclusion in CMAs. Choose the “Market
Dynamics” option to produce a snapshot of current market conditions, or select the “Price
Analysis” option to show the availability of propAUSTIN REALTOR®
erties within your client’s price range. Samples of
both reports are available online at
www.abor.com/mls/vendors.cfm.
Learn how to get the most from MarketMetrics by
attending a free training course. Sessions are
scheduled for August 12-14. To register, visit
www.abor.com/courses and select the “MLS”
tab. Watch the MLXchange Welcome Screen and
upcoming ABoR publications for more information on MarketMetrics.
9
July 2008
REALTORS® Added to MLS Trainer Roster
The new REALTOR® Expertise program brings
you hands-on MLXchange training from the people who know the system best — local REALTORS®. ABoR members Joi Jones, Robert
McCleskey, Linda Randall and Lisa Stubblefield
have teamed up with our training staff to offer
you top-notch MLS education.
In 1984 Linda Randall received her Texas real
estate license and has since been active in the real
estate business. She is an approved instructor for
both the Texas Real Estate Commission and the
Texas Association of REALTORS®. Contact Randall
at [email protected].
Joi Jones, an agent with Wilson and Goldrick
REALTORS®, has been active in the real estate
industry for over three years. She is also an experienced technology user, having worked as a software trainer for various companies. Contact Jones
at [email protected].
Lisa Stubblefield of Realty World Homes and
Investments, LLC has been involved with real
estate investing since 2002. She has experience in
financial and technological fields including active
involvement in developing national defense software for Lockheed Martin. Stubblefield can be
reached at [email protected].
Robert (Bob) McCleskey is a former REALTOR®
who currently provides computer support and services to agents with Realty World-John Horton. He
has extensive experience using MLXchange, particularly with photographic software support, CMA
preparation and maintaining listing accuracy.
McCleskey may be contacted at [email protected].
Our trainers provide onsite training at ABoR as
well as customized training for your office. To
schedule an appointment, contact Kimbra
Froehlich at [email protected] or 512/4547636, ext. 1106. View upcoming MLS courses
online at www.abor.com/courses/
abor_index.cfm?fuseaction=MLX.
AUSTIN REALTOR®
10
July 2008
Ethics Case Study — Claiming False Designations
The following scenario is based on a case heard by
members of ABoR’s Professional Standards
Committee.
The Situation
One day, REALTOR® A happened to view REALTOR® B’s Web site. The Web site claimed REALTOR® B held several designations, including the
Seller Representative Specialist (SRS) and Graduate
REALTOR® Institute (GRI) designations.
REALTOR® A was not convinced that REALTOR® B
actually earned the designations he claimed, so REALTOR® A contacted the national offices of SRS and GRI.
Both offices informed REALTOR® A that they had no
record of REALTOR® B earning such designations.
The Response
REALTOR® B admitted that he had never taken SRS
or GRI classes, nor had he ever applied for those designations. However, he believed that the courses he took
through his brokerage office qualified him to use the
SRS and GRI designations on marketing materials.
The Outcome
The panel charged with hearing this case did not
accept REALTOR® B’s argument. They found instead
that by claiming to have designations for which he
never applied, REALTOR® B violated Articles 1 and
12 of the Code of Ethics and Standards of Practice of
the National Association of REALTORS®.
Under Article 1 of the Code of Ethics, “REALTORS®,
when seeking to become a buyer/tenant representative, shall not mislead buyers or tenants as to… benefits that might be realized through use of the
REALTOR®’S services.” Article 12, states that “the
obligation to present a true picture in representations
to the public includes information presented, provided, or displayed on REALTORS®’ Web sites. REALTORS® shall use reasonable efforts to ensure that
information on their Web sites is current.”
To ensure you avoid committing ethics violations,
review the Code of Ethics and Standards of Practice
of the National Association of REALTORS® available
online at www.abor.com/realtor_ethics/home.cfm
in the Downloads section to the right of your screen.
Inspections
• Residential
• Commercial
• Termite
www.burgessinspection.com
512-381-8804
TREC 8641 SPCB 9156
AUSTIN REALTOR®
11
July 2008
Legal
Topics
Understanding The Risks
Of Seller Financing
By Don R. Hancock | Hancock & McGill L.L.P | Attorneys at Law
In a down real estate market,
sellers may be required to provide some or all of the financing
to sell their property. This article will explore some of the risks
of first lien seller financing, second lien seller financing, and
wrap-around financing.
First Lien Financing
If the seller finances a portion of
the purchase price and there is no
prior lien against the property,
the lien securing the seller’s loan
will be a first lien.
There are risks in making any
loan; however, the risks of first
lien financing are relatively low
and can be managed fairly well.
With a reasonable down payment, properly prepared loan
documents, and title insurance
insuring the priority and validity
of the lien securing the loan, the
risk is reduced substantially. As
long as the value of the property
does not decrease below the
amount of the seller’s loan, taxes
are paid, and the property is
insured, there is little risk of loss
because, upon default, the seller
can foreclose the liens securing
the loan and re-take title to the
property. If the value of the
property is not less than the loan
amount, no loss should occur.
Second Lien Financing
Second lien financing increases
the risk to the seller because the
lien securing the loan is secondary to the first lien. That means
that the seller has an additional
risk; he must ensure that the first
lien is paid or risk losing the collateral for his loan.
Secondary financing is secured by
a lien which is second or inferior
to a prior lien against the property.
If there is a foreclosure of the first
lien, the foreclosure will completely eliminate the collateral for the
second lien holder. Consequently, a
second lien holder can ill afford a
foreclosure of the first lien because
it leaves the second lien holder
with no collateral.
To prevent a first lien from being
foreclosed, it is usually necessary to
pay the first lien in full or bring
the loan current. Assume the sale
of a $200,000 home with a commercial lender providing $160,000
(80 percent loan) in financing with
seller financing of $20,000 (10
percent). If there is a default in the
first lien, the seller will have to
either pay the first lien in full or
pay the past due amount to prevent foreclosure or risk losing the
security for his loan.
Assume the monthly payment on
the first lien is $1,750 and that
the loan is three months in arrears
when the seller learns of the
default. To avoid losing the collateral for the $20,000 second lien,
the minimum the seller would be
required to pay is $5,250 (plus
any attorney’s fees or collection
expenses) to bring the loan current
and continue to pay the monthly
$1,750 while he attempts to foreclose the second lien.
As you can see, these numbers
give the seller a very difficult
choice to make: either make a
substantial investment to protect
his collateral or risk foreclosure of
the first lien and the loss of collateral for the second lien.
There are two primary ways the
seller can reduce the risk of secondary financing: first, require a
substantial down payment by the
buyer and second, monitor payments to the first lender by (a)
requiring the buyer to sign
authorizations required by the first
lender to give the seller access to
payment information on the first
lien; (b) requiring the buyer to
provide written evidence each
month of payment of the first lien
note; or (c) requiring payment of
the first lien through a third party
trust arrangement. There are
practical difficulties with any of
these methods but they will proSee “Seller Financing...” on next page
Don R. Hancock is a partner in Hancock and McGill, L.L.P., attorneys at law. He received his undergraduate degree from Texas A&M University in 1968 and his J.D. from The University of Texas
School of Law in 1971. Hancock has practiced real estate law in Austin since receiving his law license.
AUSTIN REALTOR®
12
July 2008
Professional Image Extends Beyond Appearance
Continued from page 1
know what to wear. Roggow offers the following
suggestions when selecting a wardrobe: dress to fit
in with your company, and dress to meet the expectations of those with whom you do business.
Commission found that half of all ethics complaints
filed nationally are due to bad manners and poor etiquette. Clearly, your actions influence your professional image just as much as your clothing.
Suit Yourself
Listen Up
Your manner of dress should be influenced by the
clientele you represent, says Roggow. Consider the
type of property you are showing and your clients’
lifestyles. If you’re at a loss, it is best to err on the
side of caution in your clothing choices.
The ability to communicate effectively is one of the
most important skills a REALTOR® can possess.
You can improve your communication abilities by
actively listening to your clients rather than waiting
for your turn to talk; producing clear, concise and
relevant written communication; and taking notes to
ensure accuracy, says Roggow.
When dressing professionally, keep the following tips
in mind. Gentlemen should avoid ill-fitting or
unkempt clothes, loud ties and poorly-groomed facial
hair. Ladies should refrain from wearing revealing
clothing, multiple accessories and too much makeup.
Common Scents
Many people are allergic to strong scents, so avoid
wearing heavy perfume or cologne, particularly if
you will be in close quarters with others. Forego
smoking in your office and work vehicle, as cigarette
smoke can also offend.
Act the Part
Mind Your Manners
Proper etiquette goes a long way in impressing others.
Roggow advises that people stand to greet one another
and to shake hands. Keep your handshake firm but
not overpowering. Direct eye contact shows others
that you are listening attentively, and smiling sincerely
creates a positive environment that is hard to resist.
A well-crafted professional image can send you to the
head of the real estate industry. Aim for a style that
is versatile, comfortable, and above all, your own.
In a recent study, the Georgia Real Estate
Seller Financing Carries Unique Hazards
Continued from page 12
vide some level of protection.
Wrap Around Financing
Wrap around financing is actually a subset of Second Lien
Financing. With a wrap around
transaction, there is an existing
lien which is not assumed by the
buyer or paid by the seller. It
remains as a lien against the
property and the seller provides
financing secured by a second
lien against the property.
This concept is probably easier to
understand with a hypothetical
example. Assume the sale of a
property for $200,000 with an
AUSTIN REALTOR®
existing loan of $160,000 secured
by a first lien. The seller agrees
to provide financing of $180,000.
The buyer signs a note and a deed
of trust (mortgage) to the seller
for $180,000. Each month, the
buyer pays the $180,000 note to
the seller and the seller is
required to continue to pay the
existing $160,000 loan. The seller financing “wraps around” the
existing financing, hence the
name “wrap around financing.”
With wrap around financing, the
seller is able to control the risk
that the first lender is not being
paid because the seller is responsible for paying the first lien. The
13
risk of non-payment of the first
lien is shifted to the buyer. The
buyer can address these risks with
the same techniques outlined
above for minimization of a seller’s
risk in secondary seller financing.
Using wrap around financing
presents other risks because
almost all commercial loans have
a due on sale provision in the
deed of trust allowing the loan to
be called if the property is sold
without lender consent. Please
refer to the article “Selling to
Credit Impaired Buyers” published in the November 2007
edition of Austin REALTOR® for
a discussion of those issues.
July 2008
May
Facts & Figures
May 2008
$263,151
May 2007
$250,734
200,000 220,000 240,000 260,000 280,000
Average Sales Price
May 2008
2,154
May 2008
$196,120
May 2007
2,679
May 2007
$183,160
1,000
1,500
2,000 2,500 3,000
160,000 170,000 180,000 190,000 200,000
Number of Homes Sold
Median Sales Price
May 2008
10,577
May 2008
64
May 2007
8,821
May 2007
55
4,000 6,000 8,000 10,000 12,000
50
Active Listings
60
70
80
90
Average Days on Market
Austin Area Real Estate Market Remains Stable
Central Texas single-family home sales for May 2008
are up slightly from the previous month, while the
number of days on market is down.
“Despite economic conditions across the nation,
Austin continues to have a relatively low unemployment rate and cost of living index,” said ABoR
Chairman Socar Chatmon-Thomas. “While we’re
not enjoying the booming real estate markets of
2006 and 2007, we have seen steady increases in
sales volume since January 2008.”
The 2,154 single-family homes sold in May 2008
contributed $566,827,254 to the local economy. In
May, homes sat on the market for an average of 64
days. The median price for single-family homes
reached $196,120.
Free Estimates
SUPRA Keys Available
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AUSTIN REALTOR®
14
Funding Out of Closing
Financing Options
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444-LIFT
July 2008
New Designated REALTORS®
Roy Leonard Allen
Roy Allen Realty
Jim Dooley
Connect Realty.com
Frank D. Seely
Frank Seely
Anna Anami
The Boutique Real Estate
Cheryl Eskridge
Wimberley View Realty, LLC
Scott Joseph Storm
Storm Development, Inc.
Robert H. Brown
Robert Brown Company
Darren J. Fox
Darren J. Fox
Jason Tarr
Great Locations Realty
Chris Cagle
Chris Cagle, REALTOR®
Cass Gabriel
RE/MAX Elite Group
Tom Wattinger
Wattinger Properties, Inc.
Michelle Cherry
Cherry Partners, LLC
Tina Hearne Gardner
Ambassador Real Estate Team
Krisstina Wise
The Goodlife Team
Christopher Clement
Synergy Property Group
Luke A. Graves
Luke Graves Realty
Kyle Mitchell Crabb
Access Direct
Lee Ann Linder
Realtruism
Classifieds
SIGNS FOR SALE — 10 Keller Williams signs for sale. Good to excellent condition. $25 each. Also Open House and
For Sale Directionals in new condition $5 ea. Call Larry Shumake 512-422-0007 or [email protected].
LOCKBOXES FOR SALE — Lockboxes for sale. Excellent condition, used once each. Purchased in 2007. $50 each,
$80 for two or $90 for three. Call 743-3722.
FOR SALE — DocuPen RC800 (Google it) amazing pen-size color scanner with software $125. Call Anne at 512-784-7263.
LOOKING TO BUY OR SELL SOMETHING? Classified ads are free for members to advertise their used office equipment, furniture or computers. Submit your ad (maximum of 30 words, including contact info) to [email protected]
or fax to 512/454-5369, attn. Marketing, by the 15th of the month for next month’s issue.
Condolences to the family and friends of REALTOR® Royce G. McClinton. Mr. McClinton passed away in early May.
Condolences to the family and friends of REALTOR® Edward Bushak. Mr. Bushak passed away in mid-April.
AUSTIN REALTOR®
15
July 2008