The ACAR Water Cooler

NEW BLOG...well new location

2010-03-03T15:39:00.000-07:00

Bookmark our new Blog http://www.acarwatercooler.com/ same blog you love with more features! So what are you waiting for head on over and start following us there.

Don't worry all the content you want or need will be right where you need it at http://www.acarwatercooler.com/ where we are already posting informtation. See you there!

Understanding HVCC - Pop Quiz Answers

2010-03-02T15:37:00.002-07:00

1. False - REALTORS and lenders can talk to appraisers, including requests to consider additional data or to correct errors.

2. False - Lenders may directly retain the services of an independent appraiser.

3. False - Lenders may choose to use a rotating roster of appraisers but are NOT required to do so by Fannie or Freddie.

4. False - The code applies only to 1-4 single family loans sold by Fannie or Freddie and does not apply to FHA, VA or the Federal Home Loan Banks.

5. False - Nothing in HVCC requires a lender to obtain a property valuation or to use a particular methodology.

6. True - If the lender grants permission, a mortgage broker may directly contact a lender-approved AMC that retains the appraiser.

7. False - A mortgage broker may transfer an appraisal if the lender who ordered the original appraisal grants permission.

8. false - A borrower is not required to pay for an appraisal with any one particular form of payment.

9. False - Payment fro an appraisal must be made to the lender or third-party hired by the lender to retain the appraisal services.

How did you do.

Quiz and answers courtesy of "Today's Buyer's Rep" published by REBAC

Understanding HVCC - Pop Quiz

2010-03-02T15:29:00.004-07:00

1. T/F - HVCC prohibits REALTORS and lenders from talking to appraisers.

2. T/F - A lender is required to use an appraiser management company (AMC) to get an appraisal.

3. T/F - Lenders are required to choose appraisers from a rotating roster approved by Fannie or Freddie.

4. T/F - The Code applies to all mortgages that require an appraisal.

5. T/F - HVCC requires an appraisal where a lender was previously under no requirement to obtain one.

6. T/F - A mortgage broker may select the appraiser.

7. T/F - A mortgage broker may not transfer an appraisal from one lender to another.

8. T/F - Borrowers must use a credit card upfront to pay fro an appraisal.

9. T/F - A borrower may pay the appraiser directly.

Answers are coming in a minute....

March Coming In Like a Lamb?

2010-03-01T13:01:00.002-07:00

March 1st...60+ degrees...sunny day...
Is that it? Is winter done? Is the spring selling season getting ready to kick off?

Probably not the end of winter...but with the tax credit set to expire in just about 90 days...the spring season is upon us.

More than 550 REALTORS and friends gathered for the annual Circle of Excellence Awards celebration Friday night.

Highlights of the evening included recognizing:

Affiliate of the Year - Karen Beamguard, First American Title
Rookie REALTOR of the Year - Mira Piva, Coey Barton Homes
Broker of the Year - Maurice Clifton, ERA West Wind
Code of Ethics Leadership - Mary Edith Hill, Hill Real Estate Agency
Darlene Manning Humanitarian Award - Carey Farmer, Group One
Distinguished Service Awards - two recipients for 2009
* John Knipe, Knipe Land Company
* Gary Salisbury - Symphony Homes

Honor Society - inducted one new Lifetime Member - Darlene Blakeslee, ERA West Wind

REALTOR of the Year - Cherie Barton, EXIT Realty (formerly Realty Executives of Treasure Valley)

We also recognized the amazing production abilities of almost 200 Circle of Excellence honorees. In the face of one of the most difficult markets ever, these folks found a way to continue to excel.

Saturday's Real Estate Section in the Statesman lists each member inducted into this lofty circle.

We all owe Judy McLaughlin, Darlene Blakeslee (this year's event Chair) and the entire COE Committee a huge "Thank You" for a wonderful evening.

Here's Some Really Good News

2010-02-23T15:10:00.000-07:00

Origin Energy Limited and Micron Technology have announced a joint venture to develop and produce a photovoltaic solar products.
The joint venture will be located in Micron’s fabrication (fab) plant at company headquarters in Boise as well as its Spec Tech plant in Nampa.
Although specific job creation numbers have not been disclosed, these two empty plants accounted for most of Micron’s manufacturing employment in the Boise Valley.

BVEP’s role in this project was significant. In early 2009, Micron Ventures, an operating unit within the company, joined BVEP’s business attraction team to find a joint venture partner in the solar industry. Visits by BVEP representatives and Micron to solar companies and site consultants who are part of BVEP’s contact network were conducted in Chicago, Illinois; Cleveland, Ohio; Atlanta, Georgia; Dallas, Texas; and Portland, Oregon.

Introducing Micron to these site consultants resulted in discussions with several solar companies. At mid-year, CH2MHill site-consulting group in Portland, one of the original meetings, was hired by Origin Energy to find a site for its U.S. manufacturing operations. CH2MHill contacted Micron and discussions began. Six months later, the joint venture was formed.

Way to go BVEP...

ACAR Young Professionals - Meeting on February 24th

2010-02-23T12:59:00.003-07:00

The ACAR Young Professionals will be touring the Ground Floor in Meridian.

"The Ground Floor is an essential element to achieve our goal of making Downtown Meridian an attractive placewhere entrepreneurs and residents have a place to live, work and play. Today’s workspaces need to work harder by working smarter – this means turning the traditional real estate model on its head. Entrepreneurs need access to healthy work environments that support a broad range of tasks from head-down focused work to group collaboration and professional meetings - and they need the economic flexibility for space to grow or shrink with the needs of their business"

Find out what all the buzz is about and join us for a tour of this remarkable new adventure. The Ground Floor is located at 136 E Idaho in Meridian.

The tour begins at 11:30! See you there!

The Code of Ethics - Breaking It Down #4

2010-02-23T11:37:00.005-07:00

Before we begin our discussion on Article 4, find out what happened in Article 3 here.

Article 4 deals with disclosure and family ties. Families are like fudge - mostly sweet with a few nuts. ~Author Unknown

Article 4 states: REALTORS® shall not acauire an interest in or buy or present offers from themselves, any member of their immediate families, their firms or any member thereof, or any entities in which they have any ownership interest, any real property without making their true position known to the owner or the owner's agent or broker. In selling property they own, or in which they have any interest, REALTORS® shall reveal their ownership or interest in writing to the purchaser or the purchaser's representative.

The only standard of practice underneath Article 4 says that "for the protection of all parties, the disclosures required by Article 4 shall be in writing and provided by REALTORS® prior to the signing of any contract.

For the purposes of the Code of Ethics, the term "Immediate Family" is much broader than your standard (or health insurance) definition.

"As used in the Code of Ethics, the term ‘immediate family’ includes, but is not limited to, the REALTOR® and the REALTOR®’s spouse and their siblings, parents, grandparents, children (by birth or adoption), grandchildren and other descendants."

So this means, if you are representing your brother-in-law, that needs to be disclosed. The language you often see in listings and on contracts is "Agent related to buyer/seller".

If you are representing a company that you also have ownership interests in, that needs to be disclosed. "Agent has ownership interest in buying/selling entity".

It seems so straight forward! So let's examine the following situation:

Buyer X was interested in purchasing a home listed with REALTOR® B but lacked the down payment. REALTOR® B offered to lend Buyer X money for the down payment in return for Buyer X's promissory note secured by a mortgage on the property. The purchase transaction was subsequently completed, though REALTOR® B did not record the promissory note or the mortgage instrument.

Within months, Buyer X returned to REALTOR® B to list the property because Buyer X was unexpectedly being transferred to another state. REALTOR® B listed the property, which was subsequently sold to Purchaser P. The title search conducted by Purchaser P's lender did not disclose the existence of the mortgage held by REALTOR® B since it had not been recorded, nor did REALTOR® B disclose the existence of the mortgage to Purchaser P. The proceeds of the sale enable Buyer X to satisfy the first mortgage on the property, and he and REALTOR® B agreed that he would continue to repay REALTOR® B's loan.

Following the closing, REALTOR® B recorded both the promissory note and the mortgage instrument. When Purchaser P learned of this, he filed an ethics complaint alleging that REALTOR® B had violated Article 4 by selling property in which she had a secured interest without revealing that interest to the purchaser.

... So? What do you think? Did REALTOR® B have an obligation to disclose her financial relationship with the property to Purchaser P?

As always, tell me what you think in the comments!

Susan Hansen
Member Policy

Freebies in Education

2010-02-17T15:19:00.000-07:00

Right Tools, Right Now - February 25 Self-Directed IRA Webinar at No Cost

Learn how to tap your market expertise as a real estate practitioner in planning for your retirement. The Right Tools, Right Now initiative is offering a FREE webinar on February 25 explaining the benefits of a self-directed IRA. Visit www.REALTOR.org/RightTools for details. Read more...

http://www.realtor.org/prodser.nsf/RightTools/OnlineTraining?OpenDocument&wt.mc_id=RT1105&WT.mc_id=LS021710&CAT=Educ

Last Call for FREE Education

This is your last chance to access all 7 Webinars (Over a $200 value) from the RU Webinar Sumit for FREE. Thanks to NAR's Right Tools, Right Now initiative you have untill 2/26 to veiw the webinars for FREE. Also Visit the REALTOR® University Webinar Center to see the list of upcoming webinars. For more information¸ visit...
http://www.realtor.org/education/REALTOR_University/RUWebinars?wt.mc_id=ru0022&WT.mc_id=LS021710&CAT=Educ

Accredited Buyer's Representative (ABR®) Course at the 2010 Midyear Legislative Meetings

Attending the 2010 Midyear Legislative Meetings in Washington D.C.? Sign up for the ABR® course offered prior to the meetings and be on your way towards earning your ABR® today! Registration for the ABR® course is available on-line. Read more...
http://www.realtor.org/narlservredirect.nsf/pages/NT000015C2?OpenDocument&WT.mc_id=LS021710&CAT=Educ

RU Blogging for your Business?

On 2/25 Amy Chorew will help you make your blog your social media headquarters and discover which blog platform is right for you. You will gain a clear understanding of how you can use your well strategized blog as a powerful marketing and communication tool to drive business. For more information on this and all the other great upcoming webinars visit REALTOR® University. To register¸ go to...
http://www.realtor.org/narlservredirect.nsf/pages/NT000015BA?OpenDocument&WT.mc_id=LS021710&CAT=Educ

The Code of Ethics - Breaking It Down #3

2010-02-16T15:31:00.004-07:00

Before we begin on Article 3, find out how the adventure in Article 2 turned out here.

Article 3 is intriguing, especially in these times, because it deals with cooperation and compensation. For the record, cooperation is uniquely different than compensation and Article 3 defines them clearly.

Article 3 states: REALTORS® shall cooperate with other brokers except when cooperation is not in the client's best interest. The obligation to cooperate does not include the obligation to commissions, fees, or to otherwise compensate another broker.

*Note: By becoming participants in the MLS, you have agreed to share data and to compensate cooperating brokers. The requirement to compensate arises from the shared membership in the MLS. MLS is a related, but separate entity from the REALTOR® Associations.

The Standards of Practice under Article 3 state:

*When you represent a seller exclusively, you will decide on the terms to cooperate. This may or may not include an offer to compensate. If you are a buyer's agent, determine the offer compensation prior to accepting the terms of cooperation. (If you submit an offer, you are agreeing to the terms of cooperation).

*UPDATED IN 2010 - To be effective, any change in compensation offered for cooperative services must be communicated to the other REALTOR® prior to the time that REALTOR® submits an offer to purchase/lease the property. (SOP 3-2). This is not a new SOP, but was clarified because the prior language was ambiguous.

*You can still change compensation after an offer has been made, but only through broker-to-broker negotiations.

*You must disclose if you have a variable rate commission. (The total amount of commission paid out is different if the listing agent is also the selling agent). You must disclose a variable rate commission situation as soon as practical to potential cooperating brokers.

*You must disclose the existence of accepted offers, even those with unresolved contigencies, to any broker seeking cooperation.

*When getting information about a property that is listed, you must disclose that you are a REALTOR® and whether your interest is personal or on behalf of a client.

*You will not misrepresent the availability of access to show or inspect a listed property.

*NEW IN 2010 - REALTORS® shall not provide access to listed property on terms other than those established by the owner or the listing broker.

So, with all your new knowledge about Article 3, you can understand why it has been the topic of discussion for much of 2009 and already, much of 2010. Let's test your knowledge with a case study:

REALTOR® A listed Seller S's house and placed the listing in the local association's MLS. Within a matter of days, REALTOR® X procured a full price offer from Buyer B. The offer specified that Buyer B's offer was contingent on the sale of Buyer B's current home. Seller S, anxious to sell, accepted Buyer B's offer but instructed REALTOR® A to continue to marketing the property in hope that an offer that was not contingent on the sale of an existing home would be made.

A week later, REALTOR® A, another cooperating broker working with an out-of-state transferee on a company-paid visit, contacted REALTOR® A to arrange a showing of Seller S's house for Buyer T. REALTOR® A contacted Seller S to advise him of the showing and then called REALTOR® Q to confirm that he and Buyer T could visit the property that evening. REALTOR® A said nothing about the previously accepted purchase offer.

REALTOR® Q showed the property to Buyer T that evening and Buyer T signed a purchase offer for the full listed price. REALTOR® Q left the purchase offer at REALTOR® A's office.

REALTOR® A informed Seller S about this second offer. At Seller S's instruction, Buyer B was informed of the second offer, and Buyer B waived the contingency in his purchase offer. REALTOR® A then informed REALTOR® Q that Seller S and Buyer B intended to close on their contract and the property was not available for purchase by Buyer T.

REALTOR® Q, believing that REALTOR® A's failure to disclose the existence of the accepted offer between Seller S and Buyer B at the time REALTOR® Q contacted REALTOR® A was in violation of Article 3 of the Code of Ethics, as interpreted by Standard of Practice 3-6, filed an ethics complaint with the association of REALTORS®.

At the hearing called to consider the complaint, REALTOR® A defended his actions by noting that while Buyer B's offer had been accepted by Seller S, it had been contingent on the sale of Buyer B's current home. It was possible that Buyer B, if faced with a second offer, could have elected to withdraw from the contract. REALTOR® A argued that continuing to market the peroperty and not making other brokers aware that the property was under contracted promoted his client's best interestes by continuing to attract potential buyers.

So.... What do you think? Did a violation occur? Post in the comments below!

Susan Hansen
Director of Member Policy

More Alarmist Nonsense Debunked

2010-02-16T09:49:00.002-07:00

Everyone and their brother was forwarding the video last week that claimed FDIC was in cahoots with One West Bank...turns out it was just another urban myth...

FDIC Provides Additional Information on its Loss Share Agreement With OneWest Bank

FDIC Director of Public Affairs Andrew Gray said, "It is unfortunate but necessary to respond to blatantly false claims in a web video that is being circulated about the loss-sharing agreement between the FDIC and OneWest Bank. Here are the facts: OneWest has not been paid one penny by the FDIC in loss-share claims. The loss-share agreement is limited to 7% of the total assets that OneWest services, and OneWest must first take more than $2.5 billion in losses before it can make a loss-share claim on owned assets. In order to be paid through loss share, OneWest must have adhered to the Home Affordable Modification Program (HAMP).

The producers of this video perpetuate other falsehoods. The FDIC has not requested to borrow money from the Treasury Department. Indeed, we continue to be funded by the banking industry through assessments, not by taxpayers as claimed in the video.

This video has no credibility. Regardless of the personal or professional motivations behind its production, there is always a responsibility to be factually correct and transparent. The FDIC made available a fact sheet on the day that the sale of IndyMac was announced that details the terms of the contract. It's too bad that the creators of this video opted to premise it on falsehoods."

Not a List I'd Like to Be On

2010-02-12T12:19:00.000-07:00

U.S. foreclosures declined 10 percent in January compared to December, but were still up 15 percent year over year, foreclosure marketer RealtyTrac reported Thursday.

RealtyTrac CEO James Saccacio predicted an increase on the horizon: “January foreclosure numbers are exhibiting a pattern very similar to a year ago: a double-digit percentage jump in December foreclosure activity followed by a 10 percent drop in January, then a surge in foreclosures over the next few months.”

States with the top 10 foreclosure rates are:
1. Nevada
2. Arizona
3. California
4. Florida
5. Utah
6. Idaho
7. Michigan
8. Illinois
9. Oregon
10. Georgia

Six states account for nearly 60 percent of the national total: California, Florida, Arizona, Illinois and Michigan.

File this under "Why Didn't I Think of That"

2010-02-12T12:16:00.000-07:00

Will Rewarding Borrowers Prevent Defaults?

Will paying underwater borrowers to keep meeting their mortgage obligations prevent them from walking away?

Loan Value Group LLC says it is working with a major mortgage lender to test this theory.

Here’s the plan: The mortgage investor offers a cash reward to borrowers to keep paying. The amount varies by borrower based on income, negative equity, geography, and other risk factors. The more likely a borrower will default, the bigger the carrot.

The borrower can’t collect the payment until the mortgage is paid, although the rewards can be used to help pay off the mortgage if the property is sold.

The plan keeps lenders from having to mark properties to market and take big losses. Frank Pallotta, a founder of Loan Value Group and former executive at Morgan Stanley and Credit Suisse, says the program will pay for itself if only a few borrowers stay put and keep paying.

Source: The Wall Street Journal, Nick Timiaros (02/08/2010)

Going Boldly Into the New Year

2010-02-11T16:42:00.000-07:00

The big question on everyone’s mind, going into January, was: “Would January be a replay of last year; or will we continue our fragile recovery?”

The answer, in a word, “both”.

January sales pushed the 300 unit number and were up 18% compared to January ’09…remembering that January ’09 was one of our worst months in more than a decade.

January ‘10 sales were 25% down from December ’09. Historically, January does lag behind December.

Pending sales in January up were up 25% from December to 766. Is this the result of the Home buyer Tax Credit extension? To some extent… Remember that our affordability is better than ever; mortgage rates are near 30 year lows and our population continues to grow.

Almost half of our sales continue to be in the price range of the First Time Buyer. In January 48% of homes sold were <$160,000.

Median home price increased by 1% compared to December to $169,000. This is the highest our median has been since August ’09. This is like a result of several factors. Inventory continues to shrink. Competition for the lower priced inventory is growing….and there’s that tax credit.

Inventory continues to decline. In January there were 2,991 active listings. This is the lowest it’s been since April of ’06. New inventory coming on is in the prime price.

Half of all homes sold in January were less than $160,000.

We have seen positive developments in the 1st couple of weeks that suggest the Feds are making some moves that may nurse along our recovery.

NAR succeeded in convincing FHA to eliminate what was known as “anti-flipping” rules. Investors no longer have to hold a property for 90 days after closing.

Call it three birds with one stone: The federal government hopes simultaneously to help low-down-payment home buyers, investors who fix up foreclosures, and local communities burdened with too many bank-owned and foreclosed homes -- all with one potentially far-reaching policy change.

The FHA maintained its 90-day anti-flipping rule through much of the last decade. But now it's suspending the policy, at least for the next year.

The objective is to speed sales of renovated houses to first-time buyers and other purchasers. With foreclosures at record levels -- an estimated 2.8 million filings last year alone -- many communities are faced with excesses of bank-owned properties sitting unsold, often in poor repair.

By waiving the 90-day rule, private investors will be more likely to bid on these houses, fix them up and sell them to buyers who will now be able to gain early access to FHA financing, which offers 3.5% down payments.

NAR also just announced a joint effort with the National Community Stabilization Trust to reclaim neighborhoods wracked by high levels of foreclosed and abandoned property, property disinvestment, extremely low prices and low resident confidence.

The National Community Stabilization Trust is a nonprofit organization that facilitates the transfer of foreclosed and abandoned properties from financial institutions nationwide to local housing organizations, and provides access to financing in order to promote productive property reuse and neighborhood stability.

The only “fly” in our ointment is the number of distressed properties. Short sales and foreclosures continue to increase now topping 60%.

There are efforts underway to try to improve the process, but the fact remains, many of our neighbors cannot afford to keep their homes. Without an improvement to our employment picture…things can only get so much better.

The Code of Ethics - Breaking It Down #2

2010-02-08T15:46:00.004-07:00

Today, we tackle Article 2. For those of you wondering how the last scenario turned out, you can find the answer in the comments here.

Article 2 states: REALTORS® shall avoid exaggeration, misrepresentation, or concealment of pertinent facts relating to the property or the transaction. REALTORS® shall not, however, be obligated to discover latent defects in the property, to advise on matters outside the scope of their real estate license, or to disclose facts which are confidential under the scope of agency or non-agency relationships as defined by state law.

Before we get into interpretation, let's start with a definition. Latent Defects. What are those? Latent defects are hidden flaws, weaknesses, or imperfections that require a thorough inspection to detect.

Knowing that, we move forward to the Standards of Practices (SOPs) to see how we should interpret the article.

SOP 2-1 says that you are only obligated to discover and disclose adverse factors reasonably apparent to someone with expertise in those areas required by their real estate licensing authority. It does not impose the obligation of expertise in other professional or techinical disciplines.

So, if you find that the basement is flooded, we would expect you to reasonably discover that. If there is a leak in the sprinkler system, we would not expect you to find that. If your seller knows about the leak in the sprinkler system, then it is no longer a latent defect (as it is a known defect) and you need to disclose!

This is the article that also addresses the issue of "non-material" factors. Basically, stigmatized property (ie: ghosts, deaths that occurred, etc). The SOP states that anything deemed "non-material" by law or regulation as not being subject to disclosure are considered not "pertinent" for the purposes of Article 2.

Idaho law states: : “No cause of action shall arise against an owner of real property or a representative of the owner for a failure to disclose to the transferee of the real property or a representative of the transferee that the real property was psychologically impacted.”

It goes on to say if “a purchaser who is in the process of making a bona fide offer advises the owner’s representative in writing that knowledge of whether the property may be psychologically impacted is an important factor in the purchaser’s decision to purchase the property, the owner’s representative shall make inquiry of the owner and, with the consent of the owner and subject to and consistent with the applicable laws of privacy, shall report any findings to the purchaser. If the owner refuses disclosure, the owner’s representative shall advise the purchaser or the purchaser’s representative that the information will not be disclosed.”

Basically, the seller does not have to disclose anything about a "psychologically impacted" property if they don't want to. However, if they decide to disclose information, it must be a full disclosure.

So to sum up Article 2, it's all about DISCLOSURE. So let's test your knowledge:

Mrs. A, a retired college professor, came to the office of REALTOR® B, a cooperating broker, in search of a large house in which she could occupy a small apartment, using the remainder of the building to operate a residential club for graduate students. What she had in mind was a deluxe "rooming house" in which the tenants would have use of a parlor, dining room, kitchen, and laundry. She felt confident, from previous experience in the community, that she could obtain from 10 to 16 "roomers", and indicated that she would be guided in her charges to the tenants by the amount of mortgage payments she would have to make.

Most of the large houses on the market were inadequate. Finally, REALTOR® B located a massive old mansion listed with REALTOR® C that appealed to Buyer A. After repeated visits to the house, and after discussing financing with a local lending institution, Buyer A said she was interested in the house if it could accommodate as many as 11 tenants. REALTOR® B accompanied her for another inspection to check on this point.

By planning double occupancy of the large bedrooms, she found she could accommodate eight roomers. In addition, there were three small rooms upstairs that had been used for storage which REALTOR® B suggested might make acceptable single rooms. Buyer A agreed and the sale was made.

Two months later, the buyer filed a complaint with the local Board, charging REALTOR® B with failing to disclose pertinent facts. The complaint alleged that REALTOR® B knew the buyer was taking on a substantial obligation with the expectation of housing 11 persons in the structure; that REALTOR® B had suggested that three rooms might make acceptable single rooms; and that she had been subsequently advised by the building department that these rooms could not be used as dwelling rooms since the windows were too small to meet code requirements. She had been advised that it would cost $1,480 to replace the windows. She charged REALTOR® B with negligence in not advising her of this deficiency. After reviewing the complaint, the Grievance Committee referred it for hearing to before a Hearing Panel of the Professional Standards Committee.

At the hearing, REALTOR® B acknowledged the facts set out in Buyer A's complaint, but advised that the complaint did not state all of the relevant facts. With respect to the house in question, as with many other houses shown to Buyer A, he had made a special check at city hall as to zoning regulations to be sure that the kind of occupancy intended by the buyer would be lawful; that the buyer's specifications were unusual and that in attempting to meet them, he had devoted an unusual amount of time and effort to help her realize her objective; and that he had acted in good faith and had not deliberately failed to disclose any pertinent fact but had, in fact, urged the buyer to consult with an engineer to check with the zoning authorities prior to making an offer to ensure that the property could be utilized as a residential club.

So, what do you think? Did REALTOR® B meet his obligations? Did he do his due diligence? Should he have known that the windows wouldn't meet code? You tell me - in the comments!

Susan Hansen
Member Policy

The F-35 Story

2010-02-05T15:18:00.001-07:00

One of Idaho's most significant prospective economic development projects - potentially securing 3,000 jobs - is nearing a decision and we need your help.

The U.S. Air Force has short-listed both Mountain Home Air Force Base and Boise's Gowen Field as possible locations for the F-35 fighter aircraft. These new missions would secure operations at these bases for the next 50 years. This is no small matter, as these two military installations together provide more than $1.0 billion to the Idaho economy each year. If our bases are not chosen, their current missions could face phasing out in coming years, putting jobs and economic benefits at risk.

Here is how you can help: A series of environmental scoping meetings (in an open house format) will be held throughout February. We ask that you attend the most convenient one to learn more about the missions. Comment cards will be available so you can express your support. A schedule of these meetings is attached.

Idaho's bases have already made the short list for these new operations; please help us pass this next critical hurdle.

More information on Idaho's quest for F-35 missions can be found at www.idahof35.com when that site launches on Feb. 5.

NAR Legislative Priorities

2010-02-05T13:17:00.000-07:00

NAR 2010 Legislative Priorities The NAR Leadership Team has approved the top 10 list of priorities for this year. This list was developed during the NAR Policy Town Hall Meeting last week. To see the priorities, please visit the REALTOR® Action Center:

http://www.realtoractioncenter.com/realtor-party/documents/2010-Policy-Town-Hall-Top-10-Issues.pdf

Brochure Available on Federal Short-Sale Effort

2010-02-03T15:56:00.002-07:00

NAR has issued a brochure to help members understand the federal program for helping troubled home owners undertake a short sale rather than lose their home to foreclosure.

The Home Affordable Foreclosure Alternatives program takes effect on or before April 5 and includes uniform procedures, standard forms, and deadlines for lenders.

Fannie Mae and Freddie Mac are developing their own standards based on the federal program. More resources, including a video on the federal short-sale effort, are online. For more contact Jeff Lischer, jlischer@realtors.org, 202/383-1117.

The Code of Ethics - Breaking It Down

2010-02-01T13:26:00.004-07:00

I had the extreme privilege to teach an ethics class last Friday and one of the students had a great suggestion. To help keep the Code of Ethics at the forefront of your mind, we need to keep posting about it.

I thought I had been, but the message isn't making it out there. I've decided that I am going do a weekly series - One article every week. (For those of you actually familiar with the code, that means 17 weeks of fun!)

Best to begin at the beginning (profound, I know). So here we go - Article 1.

Article 1 states: When representing a buyer, seller, landlord, tenant, or other client as an agent, REALTORS® pledge to protect and promote the best interests of their client. This obligation to the client is primary, but it does not relieve REALTORS® of their obligation to treat all parties honestly. When serving a buyer, seller, landlord, tenant or other party in a non-agency capacity, REALTORS® remain obligated to treat all parties honestly.

So, what does that actually mean? The standards of practice below the article attempt to explain.

- You are obligated to uphold the Code of Ethics
- Code of Ethics applies no matter where and how you are conducting business
- Do not mislead people about the value of a property
- Dual agency is okay so long as all parties involved truly understand what that means and implies
- Present offers objectively and as soon as you can
- You must submit all offers - verbal and written - even after you have an accepted offer. Doesn't mean you have to continue to market the property.
- Keep confidential information to yourself - even after the termination of the relationship - unless you are court ordered to disclose or if your client plans to commit a crime
- Competently manage clients' property and protect it against reasonably foreseeable losses
- Fill your client in about your office policy regarding cooperation and compensation
- Let clients know that the existence, terms or conditions of their offer may not be confidential unless the parties agree otherwise.
- Your fees for doing a valuation cannot be dependent upon the amount of the valuation
- If your seller permits it, you will tell other potential buyers about the existence of other offers. If the buyer's agent asks, you must tell them the source of the other offer (you, your office, other brokerage).

Okay, so those are the basics. Now let's test your knowledge... Let me give you a hypothethical...

Client A, an army officer, was transferred to a new duty station and listed his home for sale with REALTOR® B as the exclusive agent. He moved to his new station with the understanding that REALTOR® B would obtain a buyer as soon as possible. After six weeks, during which no word had come from REALTOR® B, the client made a weekend visit back to his former community to inspect his property. He learned that REALTOR® B had advertised the house: "Vacant - Owner transferred" and found an "open" sign in the yard. Client A found that REALTOR® B never had a representative at the property but continually kept an "open" sign in the yard. Client A discovered that the key was kept in a combination lockbox and when REALTOR® B received calls from potential purchasers about the property, he simply gave callers the address, advised that the key was in the lockbox, gave them the combination, and told them to look through the house by themselves and to call him back if they needed other information or wanted to make an offer.

Client A filed a complaint with the Board of REALTORS® detailing these facts and charging REALTOR® B with failure to protect and promote the a client's interes by leaving Client A's property open to vandalism, and by not making appropriate efforts to obtain a buyer.

REALTOR® B's defense during the hearing was that his advertising of the property was evidence of his efforts to sell it. He stated, without being specific, that leaving keys to vacant listed property in lockboxes and advising callers to inspect property on their own was "common local practice".

So what do you think? Did he violate the Code of Ethics? Weigh in!

Posted by Susan Hansen - ACAR Director of Member Policy

IBR Article on ACAR's program

2010-01-22T11:21:00.001-07:00

FHA Changes Announced

2010-01-21T17:01:00.002-07:00

What's Next for the Treasure Valley Real Estate Market

2010-01-18T09:41:00.002-07:00

NAR just released their 3rd qtr numbers for our area. True...the third qtr was a long time ago, but there's still real value in the "Local Trend" data attached to the report.

Its interesting to overlay sales and price trends from the 3rd qtr to the actual of what happened in the fourth:

"Prices are down and continue to weaken" - but, we had a strong rebound in median driven by shrinking inventory and a continuation of the tax credit

"Sales growth has improved substantially form a year ago" - and continued through year end

"Employment continues to decline and could impact demand in some areas" - recent good news from Micron

Mortgage Payment to Income - "Historically strong and an improvement over 2nd qtr

"Local affordability has improved and is below historical average"

Read the entire report

FHA Will Announce Changes Next Week

2010-01-15T13:53:00.000-07:00

In October 2009, FHA announced that its capital reserve fund had fallen below the congressionally mandated level of 2 percent. The drop in capital reserves has led Congress and the Administration to call for changes to strengthen FHA.

The week of January 18, 2010, FHA will announce major changes to ensure its long-term financial soundness. FHA is trying to balance three fundamental objectives: 1) financial soundness – ensuring that its capital ratio returns above 2 percent, 2) fulfilling its mission of serving borrowers not adequately served by the private sector and 3) facilitating the recovery of the housing industry and the over-all economy.

NAR has met with the Commissioner on several occasions to discuss the state of the housing market and to underscore FHA’s invaluable role. In looking for solutions to FHA’s financial concerns, replenishing the insurance fund and lowering loan-to-value ratios have the most significant impact on the FHA’s actuarial soundness. We expect changes in the following areas:

Improve FHA loan quality:
Increasing “upfront cash” that a borrower has to bring to the table by:

Eliminating the ability to finance the upfront premium
Increase the cash investment required above 3.5 percent by:
o Reduce seller concessions from 6 percent to as low as 3 percent
o Impose a minimum FICO score
Down payment requirement will remain at 3.5 percent
Impose a loan-to-value (LTV) maximum ratio by FICO score

Increase the Mortgage Insurance Premiums:
FHA can increase the MIP as follows:
Up-front premium may be raised to 2-2.25 percent, up from 1.75 percent
Higher premiums may be introduced for certain FHA products (such as refinance transactions)

FHA Lender Eligibility Changes
FHA is requiring significant changes for lenders. Many changes recommended were published as a proposed rule on lender eligibility changes in late November. Final rule has not yet been published. There are several proposed changes for FHA lenders:
Elimination of loan correspondent approval process
Increase net worth requirements of lenders to $2.5 million over the next 3 years
Lenders will be required to have a net worth of $1 million within one year, of which 20 percent must be liquid assets
Implementation of Credit Watch for underwriting lenders to monitor defaults and claims
Codification of Mortgagee Letter 2009-31, which places additional requirements on FHA lenders

Risk Management Improvements
FHA will be overhauling its approach to risk management throughout 2010. FHA will likely begin targeting early payment defaults for reviews and loans that result in claims in the first couple of years.

Risk Management Improvements (Continued) This change will likely increase indemnification requests since FHA will be targeting their reviews on early payment defaults (i.e. loans with potential problems).

FHA will be highlighting “poor performing” lenders more prominently on their website and in press releases. This started in January when FHA and the HUD Inspector General announced subpoenas to 15 mortgage companies demanding data and documentation on failed loans.

The Commissioner has frequently discussed the development of a Lender Scorecard, which is expected in the near future.

FHA Budget Proposals (Requires Legislation) As part of the Administration’s FY 2011 budget proposal there will be several FHA legislative initiatives. They could include:
Increase the current cap for annual premiums, currently at .55 percent (FHA has said that raising the annual premium is the “most effective means of raising capital for the fund w/ least impact per borrower”)
Obtain a legislative change to Credit Watch to facilitate the suspension of an FHA lender’s entire operation not just individual branches
Increased accountability of FHA lenders for fraud or misrepresentation

These changes will require congressional action, the timetable for enacting and implementing any legislation is subject to the Congressional schedule.

Conclusion
FHA will be transformed over the next few years. The changes outlined above are the beginning of the process with additional changes expected during the tenure of FHA Commissioner Dave Stevens. Going forward, FHA will continually evaluate programmatic changes and will likely withdraw them when the capital ratio returns above 2 percent. However, it is unlikely FHA will relax risk management and lender monitoring enhancements.

http://www.realtor.org/government_affairs/fha_resources

ACAR Legislative Lobby

2010-01-11T16:05:00.000-07:00

Today the Idaho Legislature convenes for the 2010 legislative session. Governor Otter presented his State of the State speech which outlined a no-growth budget for next year, the same revenue figure as last year calling for no salary increases for state employees; and spending all but $32.8 million of the state’s reserve funds by the end of fiscal year 2011.

The theme of the legislature will be the budget. With a major budget shortfall sales tax exemptions are looked to for sources of revenue, and we will defend your hard earned commissions vigorously. We will also face new fees that ultimately increase the cost of housing at a time when costs have become much more affordable. We will face new regulations that harm future development. We will promote issues that benefit the economy of the state and attract new business to Idaho in the future.

One of the primary roles of the REALTOR® Associations is to protect the real estate industry from undue burden and further issues important to REALTORS®. As one of the most prominent lobbyist organizations in Idaho and the country, we work against poorly designed small business and real estate issues and legislation and create new laws to promote quality of life and the industry.

Special thanks to all of you who invested in RPAC during the dues renewals, the money is critical in keeping our voice strong. We will be at the Capitol to ensure the voice of the real estate industry is heard.

First-time Homebuyer Luke gets help from his local REALTOR®

2010-01-11T13:51:00.001-07:00

December...at Last

2010-01-11T13:33:00.000-07:00

To paraphrase Mark Twain…“December. This is one of the peculiarly dangerous months to speculate in housing in. The others are July, January, September, April, November, May, March, June, October, August, and February.”

Last week we read from NAR that pending homes sales were slowing. It was with some trepidation that I opened the IMLS Stats page this morning…boy was I relieved.

December sales were up 24% compared to December ’08. Total sales for 2009 were 5,558 compared to 5,144 in ’08. Overall we increased sales by 8% year-over-year.

Total homes sold in December were 378; compared to 277 in December ‘08. What a difference 12 months and a Home Buyer Tax Credit makes!

Typically sales in December lessen as the year nears end. The volatility in the housing market for the last four years makes it hard to “average the change from November to December. In December ’08, we exceeded November (but November was our worst ever month). In ’07 the December sales were off 23% from November. In ’06 the change was -10%.

December '09 sales were 32% down from October.

Pending sales in December were off only 7% from November. Not the big dip experienced nationally.

First time home buyers continue to drive our market. The announcement of the Tax Credit extension and its expansion to include current homeowners should enable us to continue to move in the positive direction. 48% of homes sold in November were <$160,000. At the same time, inventory in this price range is the lowest it’s been all year.

Median home price jumped up 4% from November to $165,000. For all of 2008, median dropped 9% (comparing January to December).

Inventory fell 6% from November to 3,428 units.

On the less positive side... distressed properties continue to hurt our friends and family. Among all active listings, 49% are either short sales, in foreclosure or REO's. 54% of all November sales were also distressed. As of today, 63% of all pending sales are also distressed.

It wouldn’t be an overstatement to say that without the Home Buyer Tax credit, we wouldn’t be where we are today. And, where we are is in a “very fragile” recovery. This morning’s business report said that our unemployment went up slightly in December; and that thousands more Idahoans had stopped looking for work.

We continue to see “suggestions” that employment in the Valley might be getting incrementally better. Small to medium size employers are making the news for their successes. Our own Micron appears to have reversed the slide they’ve endured over the last 20 months.

No matter the anecdotes, we need our elected officials to work more closely with our Boise Valley Economic Partnership to find creative incentives to bring more jobs to our Valley.

Quenching the Thirst for Knowledge

2010-01-07T13:04:00.003-07:00

The illiterate of the 21st century will not be those who cannot read and write, but those who cannot learn, unlearn, and relearn. --Alvin Toffler

As we begin preparations for 201o, the ACAR Education Committee began with the question: What do our members need to know to be more professional and better able to do their jobs?

This is not an easy question and there is no "right" answer. Education is critical to success in this industry as rules, regulations, and even the market change at a head spinning rate. If you can't keep up, you'll be left behind.

So, we began our discussion... what is the path most likely to lead to success? Is it knowledge on short sales? Is it knowledge about the basics of real estate? Is it about getting back to the service side of the industry?

We wanted to ask you, our members, what education do you want most? What can we do to start you on the path?

Drop us a line and let us know... you can comment below or email me.

Susan Hansen
Staff Liaison for the ACAR Education Committee

U.S. Loan Program May Have Made Things Worse

2010-01-04T10:35:00.002-07:00

Experts: $75 billion effort to fight foreclosures has hurt some homeowners

by: Peter S. Goodman
New York Times
Jan. 1, 2010

The Obama administration's $75 billion program to protect homeowners from foreclosure has been widely pronounced a disappointment, and some economists and real estate experts now contend it has done more harm than good.

Since President Obama announced the program in February, it has lowered mortgage payments on a trial basis for hundreds of thousands of people but has largely failed to provide permanent relief. Critics increasingly argue that the program "Making Home Affordable", has raised false hopes among people who simply cannot afford their homes.

As a result, desperate homeowners have sent payments to banks in an often-futile efforts to keep their homes, which come see as wasting dollars they could have saved in preparation for moving to cheaper rental residences. Some borrowers have seen their credit tarnished while falsely assuming that loan modifications involved no negative reports to credit agencies.

Read the rest of the article

More Than 1,000 REALTORS Receive Free Class

2009-12-21T16:33:00.003-07:00

Certificates for the free class are being mailed so if you paid your dues in full by December 15th, keep watching the mail for yours! As a reminder, in order to receive your free class, you must present the certificate to receive the discount!

The 2010 Lunch & Learn Schedule has been basically set:

Date Topic*

Thursday, January 28 Procuring Cause: Unraveling the Mystery
Thursday, February 25 Getting in Good Form - Filling Out the RE-21
Wednesday, March 10 The Arbitration Alternative: Avoiding Costly Lawsuits
Wednesday, March 31 Real Estate Marketing in the Age of Social Media
Thursday, April 29 Understanding the "Ps and Qs"
Wednesday, May 26 The Ins and Outs of Home Inspections
Wednesday, June 9 An Overview of the Title and Escrow Process
Wednesday, June 30 Understanding Your New Buyers: Marketing to Generation 'Y'
Thursday, July 29 Prizes, Incentives, and Gifts: The 3-Legged Stool
Wednesday, August 25 Using Real Estate and Related Investments Inside IRAs & Other Qualified Plans
Thursday, September 9 Real Estate Marketing in the Age of Social Media
Wednesday, September 29 Getting in Good Form - Filling Out the RE-21
Wednesday, October 27 Procuring Cause: Unraveling the Mystery
Thursday, November 14 The Ins and Outs of Home Inspections
Thursday, December 16 Selling in a Historic District
Wednesday, December 29 The Arbitration Alternative: Avoiding Costly Lawsuits

*Topics Subject to Change

Thank you for your amazing participation and we'll continue to develop new ways to better serve your needs!

Happy Holidays!

Employer Assisted Housing (EAH) The Smart Right Thing to Do

2009-12-16T10:34:00.003-07:00

Later today members of ACAR's Home From Work Task Force will be presenting our version of Home From Work (called Welcome Home Idaho) to the Boise Metro Chamber. Not to a monthly membership meeting, but to the staff management as an HR benefit for Chamber employees.

What's "Welcome Home Idaho"? ...Thanks for asking....Welcome Home Idaho is one of our critical initiatives for 2010.

"Welcome Home Idaho" is a sure fire way to make our Valley more attractive to employers considering expansion or relocation. Its a guaranteed way to increase responsible home ownership among an employee base. Its a proven way to connect HUD partner agencies (like NHS or IHFA) to people needing home ownership assistance.

Based on the successful HOPE Foundation program in Las Vegas, Welcome Home Idaho prepares REALTORS to help people who are interested in purchasing their first home, but don’t know how to get started or who to trust.

Over the course of two training sessions, HOPE Foundation founder Dawn Lane has trained nearly 50 Valley REALTORS in the Home From Work Essentials.

Last week, during the Bringing Workers Home Housing Summit, NAR Regional VP Jim Johnston addressed the conference on how/what and why this program is so important for Idaho. Here is an excerpt...

"As you know, American homeowners and homebuyers are facing some tough challenges today. According to the Harvard Joint Center for Housing Studies’ 2009 State of the Nation’s Housing Report, at last count, nearly 18 million Americans were severely cost burdened (paying more than 50% of their income on housing). But I’ve learned over the years that great challenges also present great opportunities—opportunities for innovation and creative solutions.

Employer-Assisted Housing, usually referred to as EAH, is one of those solutions; it can help address the housing issues of today’s workforce through a broad range of creative models. By implementing even the most basic EAH benefit, employers can have a positive impact on both their employees and their community.

For employees an EAH benefit can mean: the opportunity to own a home of their own for the first time; more time to spend with their family if they buy a home close to their jobs; and safety and security for their family over the long-term. Despite the challenges, homeownership continues to be one of the best long-term financial investments a person can make. In fact, it is the primary way most families build wealth.

And, there are other more immediate benefits to both homeowners and the community. Studies show that children of homeowners do better in school, and homeowners are more active in their communities.

And let’s remember, Housing Education, a core element of an EAH benefit program, is key to ensuring that prospective buyers are well-informed about the process and understand the financial commitment and responsibility of buying a home."

Read the rest of the Jim's remarks.

Overe the next months we will be bringing you more information about this and other REALTOR programs that will continue our Valley's economic recovery.

November Homes Sales Increase 100% Over 2008

2009-12-15T08:46:00.002-07:00

But then again...November '08 home sales were the lowest (269) in a very long time.

Total homes sold in November were 533; up 98% compared to last year. What a difference 12 months and a Home Buyer Tax Credit makes!

Typically sales in November lessen as the year nears end. Over the last 4 years the average change in sales from October to November is -9%. (This excludes last year's 36% plunge.)

November '09 sales were 9% down from October. Consistent with what we would expect. Pending sales in November were 649.

First time home buyers continue to drive our market. The announcement of the Tax Credit extension and its expansion to include current homeowners should enable us to continue to move in the positive direction. 44% of homes sold in November were <$160,000.

The fundamental demand for housing is driven by jobs. What happens in our employment market will determine how long this modest recovery can continue. Anecdotally...there are signs that some Valley employers are getting stronger. Mandatory overtime, longer hours, reinstatement of pay cuts...all are happening now.

Median home price nudged up 1% from October to $159,700. Existing homes continue to hold their value relatively well. New homes median reversed its downward slide as it increased from $147,390 in October '09 to $149,900 in November.

Inventory has dropped under 3,000 homes for the first time since May of '06. We now have less than 5 months of inventory (existing and new) in our most demanded price category. Likely this is supporting the tenuous grip median sales price is holding to.

Market pace increased in November as days on market fell to 76.

On the less positive side...as you saw in the Statesman yesterday, distressed properties continue to hurt our friends and family. Among all active listings, 46% are either short sales, in foreclosure or REO's. 37% of all November sales were also distressed. Although this less than the 45% we were experiencing last March, it is too high.

Our community offers resources to help families in housing crisis that we sometimes overlook. Neighborhood Housing Service's Foreclosure Prevention Counseling program continues to have a greater than 90% rate of success in helping our neighbors avoid foreclosure. Its completely free to homeowners. Click here for more information and an intake package that must be completed before counseling can begin.

What I'm hearing about December is good. Buyer interest, offer presentations and closings are all up. The key is going to be how supportive our lender partners will be.

Yesterday President Obama chided the banks for poor results in assisting in our recovery...comparing them to "overpaid ball players who've had a bad season". “Given the difficulty that businesspeople are having as lending has declined, and given the exceptional assistance banks received to get them through a difficult time, we expect them to explore every responsible way to help get our economy moving again.”

You Can't Do That

2009-12-14T15:20:00.000-07:00

This is a good article from Mr. Internet he talks about the "problem solvers" and the "problem avoiders"

There is a (soon-to-be-former) highly paid business consultant of mine that lately seems more interested in telling me what *can’t* be done rather than helping me achieve my goals. Caution is a necessary quality for any successful business person, unless it turns into a brick wall for the sake of not making mistakes.
Henry Ford was told in no-uncertain terms by his top engineers that casting a V-8 engine block was impossible. He responded by literally locking them in a room until they figured it out (you know the rest).
T
here is a huge difference between being a problem solver and a problem avoider. Something happened to this business consultant (who is also a friend). He used to be excited about possibilities and think innovatively. Now his main focus seems to be circling the wagons, figuring you have a better chance of staying alive, even if you don’t go anywhere.

Highly effective people will figure a way around, over or through the “brick walls” that place themselves in the way of every worthwhile endeavor. Don’t expect outsiders to take the ball and run with it. It takes something very special (that each of us have deep inside) to quiet the voice of naysayers…

More than anything else, it is a clear and consistent sense of purpose. When the objective is compelling enough, you will find a workable, effective way to make it happen.
-Ralph Marston

It’s the easiest thing in the world to say that something can’t be done and is a favorite pastime for those content to stay on the sidelines. Ultimately, achieving any goal or pursuing any worthwhile endeavor is totally up to you. Just remember that your deeply held sense of purpose is your shield that will protect you from the slings and arrows of those who haven’t found theirs yet.

November Sales Show Continuing Recovery!

2009-12-11T11:19:00.003-07:00

Preliminary numbers are in for November and they are very solid.

First of all, we have to remember that the announcement of the tax credit extension didn't come until well into November. So, there was real impetus to try to close as quickly as possible...

Total sales are 533 homes. This is nearly a 100% increase compared to November 2008 sales of 269!

Our median sales price held firm at $155,000. This is down 15% from 2008. New home's median actually went up about $2,000 from October.

Days on market is holding at about 84 days. Not much change form '08 or from what we've seen the last few months.

Homes in the price range of <$160,000 accounted for 36% of all sales in November.

The full data set will be available later today. Watch for an updated commentary later.

Young Professionals Social Hour

2009-12-09T11:57:00.000-07:00

The Young Professionals are having a Social Hour TODAY for December. Join us for drinks at the Barbacoa in Boise. Get Directions
We'll be there from 4pm to around 6pm, getting drinks and getting to know each other! Expand your network!

I Missed You Too...

2009-12-08T09:15:00.003-07:00

I feel terrible...my last post was 5 days ago...when I came to log in, security said, 'Oh sure, now you want to come back." The thing is, last week was so amazingly active, we didn't slow down enough to write.

Last week in Boise we had a confluence of Real Estate Leadership, Policy and Futurism.

Alice Martin, NAR VP for Leadership Development, did not 1, but 2 days of contemporary leadership coaching. On Tuesday for association exec's it was 6 hours on how to best apply lesser know NAR resources to help with current organizational challenges.

On Wednesday more than 50 volunteer leaders from IAR, Caldwell AOR, Nampa AOR, WCR and ACAR jammed the IAR conference center learning "Lessons in Executive Leadership from Abraham Lincoln". All I can say is "hold on" there's 50 new sheriffs in town all wanting to make next year the best ever.

Thursday morning the marquee at the Center on the Grove read "National Housing Conference"...right here in Boise. NAR contacted our own Miguel Legarreta to host the national "Bringing Workers Home" conference for more than 150 housing professionals from the Pacific Northwest. NAR Region 12 VP, Jim Johnson kicked off the event with compelling numbers demonstrating the need for a coalition of business community and government leaders to answer our need for sustainable housing opportunity. Mayor Bieter spoke next about Boise and the Valley and what's coming next in their eyes. He reminded us that Boise is the 3rd largest city in the Northwest...when did that happen?

Thursday night we said "Thank you" to Russ Dane for his leadership this year and welcomed Jim Paulson as 2010 President. Joining Jim for installation by Julie DeLorenzo, IAR 2010 President, were Pres-Elect Laurie Barrera, VP Kit Fitzgerald, reelected Director Eric Jensen and new Directors Dave Ferguson and Wendy Alexandre. Just a note...we used Life's Kitchen to supply the food. We got great food at a great price and in the process continued to support one of our REALTOR's Community Foundation partners.

Friday morning came pretty early to 50 REALTORS singed up for Dawn Lane's "Home From Work" program. Want to know how Boise can beat Denver in the next employer solicitation...this is the answer. Dawn explained how REALTORS can work directly with employers to help establish EAH programs that improve the lives of everyone. This was the second time Dawn taught this program here. The first class, six months ago, drew maybe 10. This time 60 signed up! We will be offering the program in its new 2010 form in the spring. Stay tuned.

Whew...Glad to get all that out.

Thanks to everyone who helped put last week together. It was a huge week-long production and you pulled it off brilliantly.

With just a few weeks left this year, we're wrapping up projects and planning 1st qtr events. Before you know it the Circle of Excellence Banquet will be upon us...and it will sell out like it did last year. Stay tuned.

Remembering Basic Courtesies

2009-11-30T15:23:00.006-07:00

More and more I am getting calls from agents about other agents who seem to be forgetting some basic rules of courtesy and safety!

As business starts to pick up, you may find that your time is getting harder and harder to schedule. No matter how busy, frazzled, or frenzied you are, don't forget the lessons that you learned when you first entered the business:

1) Avoid letting clients into properties if you won't be accompanying them - Several of the calls I've received are from an angry or irritated listing agents who stumbled across buyers who "let themselves" into the property. This is especially frequent with vacant and REO properties that have combination lockboxes. Just because a home is unoccupied doesn't mean that anyone can come in.

Never give your clients the combination to a lockbox. You don't know when they will access the property or how many times. You may be liable if damages or theft occurs. If you are too busy to meet them at the property, have a trusted colleague or co-worker assist your clients until you are available. (In the 2010 REALTOR® Code of Ethics, allowing someone unauthorized access to a lockbox or property will be a violation of Article 1!)

2) Don't let your clients move in until everything is recorded and funded - Just because your clients have signed all the documents doesn't mean the house is theirs. I am hearing that clients are moving into houses and making changes to the property before the sale has recorded. This is (again) happening frequently with REOs.

It belongs to the bank until everything is final. Accessing and changing things without the owner's [re: the bank's] permission is considered trespassing. If your clients start changing things (paint, peeling up carpet, fixing things) and something happens, there is legal liability.

If you are the one giving them the keys early, you could be liable as well. Just because the keys are in the lockbox doesn't mean you have the authority to provide them to the new homeowner. Homeowners will get keys when everything is final and they need to wait for that.

Advise your clients who are getting appointments lined up (such as cable hook ups or appliance delivery) to wait to schedule those until the property has changed ownership. It it tempting to have it all lined up for the day after "closing" but just in case of delays in recording, wait for everything to be final. Some of the new lending standards can cause delays in paperwork as well and having appointments scheduled so tightly can really cause problems. Your clients may ask you to let them in early and you don't want to put yourself in that position!

Besides those, remember basic things - call before you show a property (even if it says 'vacant' on the MLS listing!) - leave your card after showing - if you can't make an appointment or will be late, let them know - be professional in all you do: what you say, how you act, how you treat others.

Good luck and be safe!

Smart Growth Principles and Attracting Young Professionals to Boise

2009-11-23T14:12:00.002-07:00

The Idaho Business Review published a terrific article today about attracting young professionals to Boise and how important the Principles of Smart Growth are to these residents. Take a look! http://tinyurl.com/yfdstas

Kit Fitzgerald
Red Barn Real Estate

Flickr

2009-11-23T11:16:00.001-07:00

This is a test post from , a fancy photo sharing thing.

NAR RESPA Seminar Available on Realtor.org

2009-11-23T09:01:00.000-07:00

NAR's RESPA Realities seminar, recently presented at the NAR 2009 Annual Convention and Expo in San Diego, is now available on Realtor.org.
National RESPA expert, Phil Schulman, a partner at the Washington, D.C. law firm of K&L Gates, discussed the new RESPA rule with a focus on what practitioners will need to know to comply with the new mandatory Good Faith Estimate and HUD-1 forms which go into effect on January 1, 2010.
NAR members may log-in to Realtor.org and go to the "RESPA Realities" page to download Mr. Schulman's PowerPoint slides. An audio recording of the session will also be available on the RESPA Realities page in the near future.

HUD FAQs dated November 19, 2009 >

Contacts: Scott Rinn, 202-383-7508 Contacts: Marcia Salkin, 202-383-1092 Contacts: Kenneth Trepeta, 202-383-1294

HUD Announces 120-day Period of Restraint in Enforcement of New RESPA Rule

2009-11-23T08:57:00.001-07:00

On Friday, November 13, 2009, the Department of Housing and Urban Development (HUD) announced a period of "restraint" in enforcing the new Real Estate Settlement Procedures Act (RESPA) rule, which will go into effect on January 1, 2010. The period of restraint will last for 120 days.
Enforcement restraint will be shown for FHA approved lenders acting in good faith to comply with the new rule, including the mandatory Good Faith Estimate and the HUD-1. HUD also asked other federal and state enforcement agencies to exercise restraint. HUD Secretary Shaun Donovan stated: "While we will not delay implementation of RESPA's new requirements, we are sensitive to the concerns of the industry as it integrates the new rules into their day-to-day business practices."

Contacts: Scott Rinn, 202-383-7508 Contacts: Marcia Salkin, 202-383-1092 Contacts: Kenneth Trepeta, 202-383-1294

NAR Survey Shows First-Time Home Buyers Set Record in Past Year

2009-11-19T15:05:00.000-07:00

San Diego, November 13, 2009
First-time home buyers reached the highest market share on record during the past year, according to the latest consumer survey of home buyers and sellers. The study was released here today at the 2009 REALTORS® Conference & Expo.

The 2009 National Association of Realtors® Profile of Home Buyers and Sellers is the latest in a series of large national NAR surveys evaluating demographics, preferences, marketing and experiences of recent home buyers and sellers. Among national surveys, NAR’s Profile of Home Buyers and Sellers is unprecedented in size and scope.

Paul Bishop, NAR vice president of research, said several factors have been at play. “Tax incentives, record high affordability conditions and a pent-up demand brought a record share of first-time home buyers into the market,” he said. “These buyers are critical to housing and a general economic recovery because the market always heals from the bottom up – they absorb inventory, free existing owners to make a trade and stimulate related goods and services.”
The number of first-time home buyers rose to 47 percent of all home sales from 41 percent of transactions in last year’s study, and was the highest on record dating back to 1981. The previous high was 44 percent in 1991. “It’s interesting to note the last cyclical peak of first-time home buyers was during the last noteworthy economic downturn, with first-time buyers starting the chain reaction that led the nation out of recession,” Bishop said.

Read the rest of the story

Forecast Hopeful with First-Time Home Buyers Leading the Way

2009-11-19T15:03:00.002-07:00

San Diego, November 13, 2009
Aided by the home buyer tax credit, the outlook for housing and the economy appears headed for a sustainable recovery, according to the National Association of Realtors®.
Lawrence Yun, NAR chief economist, said the projections are enhanced by a tax credit expansion to more home buyers through the middle of 2010. “Given the success of the first-time buyer tax credit to date, and the need for qualified buyers to continue to absorb inventory that will include additional foreclosures over the coming year, we are hopeful about the impact of the expanded tax credit because it will stabilize home prices,” he said. “In fact, the credit is working better than first projected – it now looks like we’ll have 2.3 to 2.4 million first-time buyers this year.”
A large consumer study being released later today, the 2009 National Association of Realtors® Profile of Home Buyers and Sellers, shows first-time buyers accounted for a record 47 percent share of home sales over the past year, up from 41 percent in the 2008 survey. The share has risen steadily since a cyclical low of 36 percent in 2006.
Existing-home sales are expected to total 5.01 million in 2009, a gain of 2.0 percent over last year, and then are forecast to rise 13.6 percent to 5.69 million in 2010. “A steady draw down of inventory will help home values to turn positive in 2010, but risks such as unemployment remain in the economy,” Yun said.
New-home sales are projected at 397,000 this year, recovering to 549,000 in 2010. Housing starts, including multifamily units, should total 564,000 units this year but grow to 752,000 in 2010.
The 30-year fixed-rate mortgage will probably average 5.3 percent in the fourth quarter, rising gradually to 5.8 percent by the end of next year. NAR’s housing affordability index will set a record in 2009, averaging 30 percentage points higher than 2008. Affordability will decline from record highs next year but will remain at historically attractive levels for home buyers.
“We’ve seen a steady downtrend in housing inventory for well over a year and home prices appears to be in the early stages of stabilizing. With expansion of the tax credit to additional buyers through the middle of next year, and no major unforeseen events impacting the economy, home prices should rise between 3 and 5 percent in 2010, but with wide geographic differences,” Yun said.
He expects growth in the U.S. gross domestic product to be at a pace of 2.5 percent in the current quarter, with GDP up 2.8 percent in 2010.
The unemployment rate is close to peaking and is projected to ease to 9.5 percent by the end of next year.
“The size of the U.S. budget deficit is a concern going forward, and carries the risk of higher inflation. At this point, that risk appears to be restrained,” Yun said. Inflation, as measured by the Consumer Price Index, is seen contracting 0.4 percent this year, then rising 1.6 percent in 2010. Inflation-adjusted disposable personal income is estimated to grow 0.4 percent this year and 1.2 percent next year.
The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1.2 million members involved in all aspects of the residential and commercial real estate industries.

RPR and HouseLogic: Projects of Striking Scale

2009-11-19T15:03:00.001-07:00

By Robert Freedman, Senior Editor, REALTOR® Magazine
So many announcements are made at NAR’s annual meeting that it’s easy to lose sight of just how trend-shifting some of them are. At the opening forum of the 2009 REALTORS® Conference & Expo in San Diego yesterday, NAR CEO Dale Stinton made back-to-back introductions of two initiatives that stand to define how you’ll do business in the years ahead.
The first is the REALTORS® Property Resource, something NAR leaders first started discussing several years ago then gave the go-ahead about two years ago as part of NAR’s massive Second Century Initiatives.
When it launches in the second quarter of 2010, it will be a database of 147 million parcels of real estate accessible to all REALTORS®. For each parcel you’ll have quantitative data—size, assessment, and so on—plus qualitative data: comments from you and your colleagues on what’s really key about the property.
Any database that has 147 million of anything is a massive resource; when the data consists of the amount and quality of the information that Stinton describes, you really get a sense of its scale. It will put an unprecedented amount of informaton at your fingertips, making you a go-to resource for your customers that would have simply been impossible years ago. If you think about it, it’s exactly the kind of thing that associations should be doing for their members: pooling their resources to undertake massive projects that shift the long-term competitive landscape in their favor. Read more

HVCC: Bad Code or Badly Implemented Code?

2009-11-19T15:00:00.000-07:00

By Robert Freedman, senior editor, REALTOR® Magazine

The Home Valuation Code of Conduct is getting a bad rap for causing what real estate professionals say is a rise in inaccurate appraisals, Alfred Pollard told a packed room of REALTORS® Friday in a risk management-regulatory issues joint forum at the 2009 NAR Conference & Expo in San Diego.

Mark Johnson, chief operating officer of appraisal management company LSI.
Pollard, the general counsel for the Federal Housing Finance Agency (FHFA), said HVCC was released at a time when the economy was in a massive contraction—what he called a systemic event—and that this broader picture has to be taken into consideration when talking about valuation trends. “Concerns [over valuations] might not be 100-percent tied to this code,” he said.
FHFA oversees Fannie Mae and Freddie Mac, which earlier this year adopted HVCC and applied it nationwide in an agreement with the New York attorney general. HVCC expires in late 2010 but the two secondary mortgage market companies can retain all or parts of HVCC going forward.
Nor is it fair to rap all appraisal management companies (AMCs) for handing out valuation assignments to inexperienced or out-of-market appraisers who are willing to work for reduced fees, Mark Johnson, COO of LSI, a big AMC, said at the forum.
Any AMC that lets appraisers work outside their area of geographic competency is violating appraisal standards under USPAP and they should be reported, he said. “I do believe there have been some bad actors,” he said.
The average travel distance of the 20,000 appraisers in his company’s database is eight to 12 miles, he said. Any appraiser who wants to travel more than 25 miles under his company’s policy must explain why and get an OK. “We don’t want guys driving 50 miles,” he said. “We want to get rid of that guy [who goes outside his area of geographic competency].”
Steve White of Keller Williams Realty in Santa Clarita, Calif., and chair of NAR’s Risk Management Committee, said real estate professionals are losing deals because valuations are coming in far below the price agreed upon by the buyer and seller and that the process for getting valuations reconsidered doesn’t work.
Valuations are taking so long that there is no time to get them reconsidered before the deal collapses. What’s more, when real estate professionals try to share comparables or familiarize out-of area appraisers with unique market issues, appraisers say they can’t talk to them.
Pollard and Johnson said there’s nothing in HVCC that prohibits real estate professionals from sharing comparable or other information with appraisers. “You can talk; you just can’t drive them to a value,” said Pollard.
Johnson gave out an e-mail address, nar@lsi-lps.com, that goes directly to him that REALTORS® can use for sending in complaints if they believe one of LSI’s appraisers hasn’t produced a competent valuation or is inappropriately restricting them from sharing information. “Send me the name of the guy and let’s root him out,” he said.

FHA Head Praises Realtor Role in Recovery

2009-11-19T14:59:00.001-07:00

San Diego, November 15, 2009
Realtors® are the face of the housing market, the focal point of information, involvement and inventory, and the Federal Housing Administration is committed to help them be successful, FHA Housing Commissioner Dave Stevens told more than 1,000 Realtors® at a gathering here today.
“You help to stabilize the community, and without homeownership, there can be no stability in communities,” Stevens said. “Together, we must never let overexuberance overtake the housing market again, and interrupt the housing market and the lives of untold millions of Americans. Our goal must be nothing less than to craft a solid, sustainable housing market, a market with a secure foundation for the future.”
Stevens said he and Shaun Donovan, secretary of the Housing and Urban Development, recognize that the National Association of Realtors has been at the forefront of efforts to address the housing crisis, and he has met with NAR on several occasions to consider their concerns. FHA has taken direct action on a number of those concerns.
Stevens announced that effective Monday, Nov. 16, FHA will no longer require a second appraisal on high-balance loans for properties in declining markets. “We did not find our previous policy to be particularly helpful and were very concerned about the additional burden on lenders and consumers,” Stevens said. He noted the policy change will bring industry alignment, streamline loan processing and reduce costs to consumers.

Read the rest of the story.

October Market in Review - Sure is Better Than Last October

2009-11-11T14:47:00.001-07:00

After a few pretty tense weeks, REALTORS® succeeded in getting Congress and President Obama to do the right thing on behalf of American homebuyers.

On Friday, November 6, The Home buyer Tax Credit was extended to April 30, 2010 and expanded to include current homeowners (with certain qualifications; see Nov. 5 post for details).

No wonder then, that October sales numbers were strong.

Sales in October were up 7% over September and up a whopping 45% over October ’08. But, to be fair to the memory challenged among us, Oct. ’08 was the month when the consumer confidence was at its lowest; the stock market was crashing and pundits predicted we were entering the next Great Depression.

Month over month sales in ’09 have now been up for 9 out of 10 months. Total sales are up more than 200% from January of this year.

Median price declined from $165,000 to $155,000 in October. Digging into this number a little deeper reveals a couple of interesting points. Existing homes are tenaciously holding on to their value – declining only $2,000 from September to $160,000. At the same time new homes median dropped from $168,990 to $147,390. This is the first time that news homes median has been less than the median for existing homes. There are likely several reasons for such a decline; higher foreclosure and short sales, deep discounting and the trend in new construction is for homes in the lower price range.

Inventory fell to its lowest number since May ’06. Our highest inventory number was 5198 in July ’07. We are nearly one-third less than that record amount. Compared to October ’08 we are 25% less. Translating that into months of inventory on hand; we are at less than 7 months. (combined new and resale). This is 50% reduction from January ’09.We have traditionally defined “market equilibrium” as 6 months of available inventory. In October we are at 6.3 months overall.

Measuring the impact of the first time home buyer tax credit; NAR recently reported that the Tax Credit will result in an additional 1million sales this year. In Ada County, sales of homes under $160,000 account for almost 40% of all sales. This is up 12% from January ’09.In this price category, inventory is even scarcer. Inventory of new homes under $160,000 is at 5 months. Inventory of existing homes under $160,000 is at 4.6 months.Short sales in October were 14% of all sales; down slightly form September. REO sales in October increased to 22%; up 4% from September.

Pending sales continue to forecast a solid future. At the end of September there were 876 pending sales. This is down by about 7% from September.In theory, the expansion of the Tax Credit to current homeowners should enable more move-up buyers.

NAR ‘s Chief Economist, Lawrence Yun told us last month that, because of the incredible affordability and continued low interest rates there are now 5 million more renters that qualify to buy than there were in 2000.

The Tax Credit expires at the end of April…for real this time. Spring will come quickly.

How to Stop People From Secretly Thinking You're Full of Crap

2009-11-11T09:28:00.002-07:00

This was an article published on AgentGenius.com. I thought it had some great tips and wanted to pass along:

How To Stop People From Secretly Thinking You’re Full Of Crap

By Ken Brand on October 19, 2009

Their Problem = Who To Trust?

Full of Crap or True Blue Trustworthy? Civilians secretly think Real Estate Agents are full of crapola. The civilian perception is:

1. Real estate agents follow-up and follow-through like Donald Trump combs over, spectacularly irresponsible.

2. Real estate agents behave and screech, “It’s ALL about ME”. ”I’m famous.” ”I’m NUMBER ONE.” ”Dig ME, Dig MY awards, Dig MY bill boards.” ”I exceed your expectations (for egoism and poor performance.)!” Etc.

3. Real estate agents spend more money on their Personal Promotion than property promotion.

4. Real estate agents charge too much and do too little. List it > plant scratched, crooked, rusty framed For Sale sign > shoot lame photos > deliver William (I have no professional training) Hung service > ignore empty Take-One flyer box > run a print ad > lay low till it sells > collect a commission check.

Let’s face it. Civilians think most sales people are full of crap. Who can blame them. We have a ton to overcome. Let’s get started…

Our Problem = Lack Of Trust

Here’s How Untrustworthy Is Created, Reinforced and Forwarded:

1. Dress like you’re on vacation, a hobo or a hooker.
2. Speak in shallow generalities.
3. Demonstrate sloth, ignorance and apathy.
4. Act inconsistent.
5. Never apologize, always make excuses, blame and stay the same.
6. Screech: YOU are NUMBER ONE. Talk about YOU exclusively. Talk more than YOU listen.
7. Act like YOU are the most important person in the room.
8. Take phone calls while engaged with clients.
9. Keep people waiting.
10. Cut corners.
11. Take ka-ka photos with cheap equipment.
12. Create property flyer’s using clashing font styles, garish colors and seat-of-the-pants layout and design.
13. Sprinkle your MLS listing remarks and property promotion materials with uninspiring, overused and misspelled words.
14. Do as little as possible.

MORE>>

Industry-First Social Networking MasterMind Launched

2009-11-11T09:23:00.002-07:00

Read about this today. I know Michael Russer. Very sharp. Realtors have found lots of success in "Mastermind" type groups. I've joined one myself with a group of AE's from Associations like ours.

As I read this, it suggests that there is a cost, but I don't know what it is.

There is a requirement that you be an eTEAM member. I went on the site and read about it, but I'm still not sure of any details.

Give it a look...but keep your eyes open.

Santa Barbara , CA , November 11, 2009 — With social media being recognized as the hottest way of generating business online, Michael Russer (aka Mr. Internet®) of Online Dominance™ has teamed up with Brad Carroll and Bobby Carroll of Dakno Marketing to form a powerful MasterMind group for agents who are seriously focused on boosting transactions.
In an endeavor that changes almost daily, the Social Networking MasterMind Group will be presented with content that puts them ahead of the digital curve during its monthly meetings, as well as the best strategies for using it. This is the first ongoing venue exclusively for top performing real estate professionals to keep up with the latest in this essential trend.

“Far too many agents are given access to tools like social media, often at sizable expense to their brokerages, without understanding how to really use them correctly. They seem like so much fun to play with, but they have no concept how much time and effort is truly required to make social networking effective, resulting in nothing but mounting frustration and hours of time sucked away from productive business. Would you give a teen with a learners permit the keys to your new Ferrari? If so, you’re braver than me!” says Michael Russer.

This sentiment is echoed by top social networker and Vice President of Sales & Marketing at Dakno, Bobby Carroll, who will take the lead in facilitating the MasterMind. “Using social media today is like the California Gold Rush – a few prepared individuals struck it rich, but most laid waste to the landscape. Truth is, you can do more harm to yourself than good if you aren’t properly equipped with the right skills. To experience any measure of success with social networking, real estate professionals must understand these new, ever-changing tools, AND have a plan ready to use them!”

The Online Dominance™ Social Networking MasterMind Group is open to eTEAM Members only. Also, members will be held accountable for implementing what they learn and reporting on the results. To find out more about the Online Dominance Mentoring Program™, or for more information about Michael Russer or to book him as a speaker, call Vickie Smith at 877-977-1188 x81 or email vsmith@russer.com. For more information on Dakno Marketing, contact Bobby Carroll at Bobby@Dakno.com.

Realtors Property Resource - The Other Side of the Coin?

2009-11-09T07:40:00.002-07:00

The following is a blog post from "Notorius Rob"...

On November 6th, at roughly 3:15PM Eastern Standard Time, the National Association of REALTORS declared war on the rest of the real estate industry. To be fair, NAR probably did not realize that it did so. Judging by the initial responses, it doesn’t appear to me that most people see what I saw. But, probably because of my twisted nature and my penchant for focusing on the dark side of human nature, I am predicting nothing short of civil war in the real estate industry going forward unless REALTORS Property Resource (or RPR) in its current form is immediately scrapped.

What brings forth such hyperbole?

RPR, or REALTORS Property Resource, was a project shrouded in secrecy. Brian Larson’s post of October 19th, 2009 is a pretty good pre-unveiling summary of the questions and concerns around RPR. Brian Boero’s initial take is a very decent summary of the post-unveiling. But since Brian is a much nicer, much sunnier, much more positive guy than I am, I believe what you’ll get from Brian is the “Glass Half Full” vision.

Strap in for the darker vision.
http://www.notorious-rob.com/2009/11/07/the-coming-civil-war-in-real-estate-the-rpr-saga-begins/comment-page-1/#comments
Read the rest

Realtors Property Resource

2009-11-09T07:38:00.000-07:00

NAR's Second Century Initiatives include the creation of the REALTORS Property ResourceTM (RPR), an online real estate library/archive that will provide real estate professionals with data on every property in the United States.

This initiative will provide access to a national database of real property information and will give real estate professionals the best access to real property information needed to serve their clients and customers. It will include in-depth, trusted information on every parcel of real property including public record information, details of prior transactions, MLS-provided information, zoning information, transfer tax information, and other relevant information.
The initiative will be based on the collaborative efforts of REALTORS® and the real estate community, including MLSs. It will drive development and implementation of data standards and definitions, and will increase the breadth, depth, immediacy and power of real estate information available to REALTORS®.

REALTORS Property Resource™ Fact Sheet > (PDF: 84KB)
For ReferenceThe following resources provide a detailed overview of the initiative from its early stages.
NAR Leadership Team White Paper

House and Senate Pass Home Buyer Tax Credit

2009-11-05T13:46:00.002-07:00

By a vote of 403-12 the House just passed the Unemployment Extension Bill which contains the Home Buyer Tax Credit.

President Obama will get it...and sign it...tomorrow.

Here's NAR's latest FAQ on the extended and expanded tax Credit.

Question: Existing homeowner credit: Must the new house cost more than the old house?
Answer: No. Thus, for example, individuals who move from a high cost area to a lower cost area who meet all eligibility requirements will qualify for the $6500 credit.

Question: I am an existing homeowner. On October 25, 2009, I signed a contract to purchase a new home. I have lived in my current home for more than 5 consecutive years and am within the new income limits. I will go to settlement on November 20. If President Obama has signed the bill by the time I go to settlement, will I qualify for the new $6500 tax credit?
Answer: Yes. The existing homeowner credit goes into effect for purchases after the date of enactment (when the bill is signed). There is no reference to the date of contract for the new credit. The provision looks solely to the date of purchase, which is generally the date of settlement.

Question: I am a firsttime homebuyer but was not within the prior income limits at the time I
entered into my contract to purchase on October 30, 2009. I will be covered, however, by the new income limits. If the new rules have been signed into law by the time I go to settlement, will I be eligible for a credit?
Answer: Yes. The new income limitations go into effect as soon as the President has signed the bill. The income limit and other eligibility rules will look to your status as of the date of purchase,
which is the settlement date. So if the new rules have been signed when you go to settlement,
you should be eligible for the credit (or a portion of the credit if you're within the phaseout
range).

Question: I am an eligible existing homeowner. I have a fair amount of equity in my home. I
have found a home with a nonnegotiable price of $825,000. Will I be able to use any of the $6500 tax credit?
Answer: No. The $800,000 cap on the cost of the purchased home is firm at $800,000. Any amount above $800,000 makes the home ineligible for any portion of the credit. The $800,000 is an absolute ceiling.

Question: I owned my home for 10 years, but sold it two years ago year and have been renting
since. If I purchase a home, will I be eligible for the $6500 tax credit if I meet all the other eligibility tests?
Answer: Yes. Because you lived in the home for more than 5 consecutive years of the previous 8, you will qualify for the $6500 credit. For example, Say John and his wife bought a home in 2000
and lived there until 2008 when he got a divorce. Whether John has been renting or bought in the interim, he WOULD INDEED be eligible for the credit because he owned a home and occupied it as his principal residence for 5 consecutive years out of the last 8 years. The keyword here is "consecutive." As long as he lived in that house for 5 years straight what he did since 3 years doesn't impact eligibility.

Question: I am an eligible first time home buyer. I entered into a contract to purchase on November 1, 2009. Do I have to go to closing before December 1? How does the extension date ffect me?
Answer: You do not have to close before December 1. Once the legislation has been signed, it will be as if the Nov 30 date had never existed. Therefore, so long as the contract settles before April 30 (or July 1, worst case), the purchaser will be eligible for the credit.

More to Come....

Senate Passes Tax Credit

2009-11-04T16:20:00.002-07:00

The Senate votes 98-0 to extend the Tax Credit. It now goes to the House. Way to go REALTOR(r) Party!!!

Quick Tax Credit Extension Update

2009-11-04T13:30:00.000-07:00

The Senate is expected to pass the Unemployment Insurance bill that contains the Homebuyer Tax Credit Extension this evening. The House will take up the Senate passed bill possibly as early as tomorrow, Thursday. The bill will then go to the White House for the President's signature.

Extending the Tax Credit - ALMOST There

2009-11-02T09:05:00.001-07:00

The extension and expansion of the homebuyer tax credit is the pending business in the Senate.

After a long week of negotiation on the credit, an agreement on the scope of both expansion and extension has been reached. The extension is part of a larger bill that has not yet gone to a vote, however. A Senate vote on the underlying bill will occur in the Senate during the week of November 1.

The package will then go back to the House. The House is expected to accept the Senate amendments, vote on the package and send it to the President for signature. The underlying bill is an extension of unemployment benefits. Other provisions in the bill include expansion of the net operating loss carryback rules, new requirements for some tax return preparers and noncontroversial provisions that "pay for" these changes. The agreement on the extension and expansion of the credit is as follows:

Credit available for purchases before May 1, 2010. Prospective purchasers with binding contracts in place as of April 30, 2010 will be allowed an additional 60 days to complete the transaction.

Credit remains at $8000 for first-time purchasers. No change to definition of first-time purchaser.
New $6500 tax credit for repeat buyers who purchase between December 1, 2009 and May 1, 2010. Repeat buyers must have lived in their homes consecutively for 5 of the previous 8 years.
Income limits are expanded to $125,000 on a single return and $225,000 on a joint return. Current law $20,000 phase-out retained.
New anti-fraud limitations are imposed.

The White House has indicated that President Obama will sign the legislation.Call Your Senator >Take Action >Visit www.realtor.org/2009housingtaxcredit >Contacts: Linda Goold, 202-383-1083 Contacts: Samuel Whitfield, 202-383-1131 Contacts: Megan Booth, 202-383-1222

2009-10-28T17:18:00.001-06:00

Tax Credit Legislation Discussed in Senate

The tentative tax credit agreement of yesterday has changed. The Senate is still negotiating the terms of the credit and how to proceed. A new agreement on extending and expanding the tax credit has now been introduced as a separate, standalone bill. The Senate voting procedure on this bill is still undecided. It could be voted upon separately from the Unemployment bill or still included, and the timing of the votes is still up in the air. But the good news is that we are still very much in the mix. Stay tuned!

Tax Credit Extention Getting Closer

2009-10-27T10:52:00.001-06:00

This just in from NAR...

FROM: NAR President Charles McMillan,
NAR Government Affairs Senior Vice President Jerry Giovaniello
DATE: 27 October 2009
RE: Tax Credit Extension and Expansion

The United States Senate is expected to vote, later today, on a bill to extend Unemployment Insurance benefits. This bill will contain the Dodd - Lieberman - Isakson Amendment to Extend and Expand the $8,000 First Time Homebuyer Tax Credit.

The Extended and Expanded Tax Credit will contain the following provisions:

Amount: $8,000
Eligibility: ALL HOME BUYERS (Step-up buyers will have to have lived in their current home for SEVEN* years to be eligible)
Income Limits: $125,000 for single filers/$225,000 for joint filers
Time Frame: December 1, 2009 to April 30, 2010 plus 60 Day extension if binding contract is in place by April 30, 2010

*The 7 year ownership requirement is designed to lower the "score" or cost of the tax credit. This is still open to change. The Congressional Budget Office is going to "score" the cost of 3 year and 5 year requirements. We are continuing to push for step-up buyers to be required be in their current home for three year period.

NAR will be monitoring the progress and any potential changes to the bill. NAR will send out a notice when the legislation is voted on tonight--regardless of how late into the night or early into the morning the debate continues.

Keeping Busy and Building Your Business

2009-10-26T11:26:00.002-06:00

The current market has its challenges in our real estate industry, but I think I have found the silver lining in all of this! Quite simply, I have been keeping busy working on ways to make my business better and more productive. How you ask? The answer: I am more involved in my industry.

I have been taking more classes that are offered at ACAR from our Education Department. I even took a CORE class and I am not due for it this year. But, why not? Our industry is changing so rapidly that I felt it was in my best interest to be more knowledgeable about not only legal but the technology changes & challenges we now face. I took the NAR Green designation class for a new designation that is actually one of my passions.

I bookmark real estate news web sites and make a point to read them daily. I go to other news web sites that give me an overall picture of not only the Treasure Valley but our country. What happens in other states may or may not happen here, but it is invaluable to know before a client or customer asks. And, I visit the NAR web site more often that I ever have before http://www.realtor.org/.

I volunteer more. I have found volunteering for ACAR committees is rewarding, fun, and the networking is fantastic. I enjoy working with other volunteers and the great staff we have at ACAR because I can see, firsthand, the results of our efforts. I could write something about each committee, but I want you to go to our website instead http://www.myacaronline.com/. Take a look. Ask yourself, what is my passion? Figure out what committee would answer that question. Is it Education? Communications? Events that we produce such as Circle of Excellence? REALTOR® Outreach, which works to promote our industry in the community through programs & projects such as Rake Up Boise and Paint the Town? Have you thought about helping on the Agent2Agent committee (this is a fun group!). Do you have the skills for a Budget & Finance committee? Does Political Affairs pique your interest?

I think you get the picture: there are all sorts of opportunities to get involved or further your education, which furthers your career. After all, you never stop learning….and what better way to learn than directly from your industry and your peers!

Laurie Barrera, President Elect 2010
Group One

Hanging With the Cool Kids

2009-10-26T10:13:00.002-06:00

Remember how much fun that was in HS?

This Friday, ACAR's 2010 President, Jim Paulsen and 2010 president-Elect, Laurie Barrera will be making ACAR Committee appointments for 2010. You read about it in the Bulletin last week, and lots of you responded by going to our new website and filling out the Committee Volunteer Form.

There's still time for you to say: "I want to have some fun and help my association" (at the same time).

There are two really good reasons to join an ACAR Committee...

First...Its a great way to expand your REALTOR SOI. Find out, in a team work setting, who you're most comfortable working with. This is probably someone you'd likely do well working a RE deal with in the future. Its also a good way to declare your own worth to some other REALTORS you'd like to get referrals from.

Second...Its a fun way to do good work. Planning special events for REALTORS is one of the key things we do. Whether its the Annual Member Appreciation; Circle of Excellence or the Stan Thomas Give Back Golf Tournament...all are great events that require REALTOR leadership.

Some of my best friendships in Boise have come from working with many of you on Paint-the-Town or Agent2Agent. There's nothing that feels better that the fatigue of a long day working on a Habitat House. Please accept this invitation to join us.

All you need to do is say "I want an ACAR job" and we'll do the rest.

What do you say? Want to hang with the cool kids again?

2010 Dues - Answers to Your Questions!

2009-10-20T13:00:00.003-06:00

Ugh... it's that time again-- dues billing! There have been a number of calls about the dues and we wanted to answer them as best as we can:

1. When is the due date?

This year, you'll notice at the bottom of your statement that we have provided a variety of payment options.

Payment Option A: Pay in full on or before December 15th, and you'll receive a free Lunch & Learn Class through ACAR worth 2 CE and a lunch.

Payment Option B: Pay installments over the course of 75 days with the first payment of $130 due by December 15th, 2009. Subsequent payments can be made over the next 75 days but must be paid in full no later than March 1, 2010. Contact our membership department at 376-0363 for more details.

Payment Option C: If you have not paid in full by December 31, 2009 or made arrangements for installment payments, you will be subject to a $100 late fee. Dues must be received in full by March 1, 2010 to retain your REALTOR® privileges.

2. Why are the dues so high?

As a local association, we collect dues on behalf of the state and the national association. In September of 2009, the IAR Board of Directors, including State Directors representing local boards, voted to raise the dues for the Idaho Association of REALTORS®. The increase resulted in an increase of $28.50 over last year.

The increase of dues is to ensure that REALTOR® services can continue with the same quality of service. With decreased membership in recent years, the association has experienced a decrease in revenue. The association has been working off of their reserves for the last 2 years, but has come to a point where it is necessary to increase dues in order to maintain the level and quality of service.

Services provided by the Idaho Association of REALTORS® include:

* The REALTOR® Forms such as the representation agreements and the purchase and sale agreements;

* Representation in the legislature, which has resulted in the first time home buyer tax credits, and the tax deductibility of mortgage interest

* The legal hotline which allows brokers and REALTORS® to ask basic legal questions without having to retain counsel

* Professional Standards administration for more than 18 local boards in Idaho

* Affordable education, such as the Short Sale and Foreclosure Course being offered in November for only $15

* An annual convention that allow you to network with colleagues from around the state and receive the entire CE you would need in a license renewal cycle.

Breakdown of percentages:
42% of dues to IAR
27% to NAR
31% to ACAR

If you still have questions about the dues increase, you can contact the Idaho Association at 342-3585.

If you have questions about what benefits ACAR offers, click here.

3. Do I have to pay "RPAC"?

No. This is a voluntary contribution to the REALTOR® Political Action Committee. If you do not wish to contribute, you do not have to pay.

4. What is "RPAC"?

RPAC is the REALTOR® Political Action Committee who is responsible for endorsing candidates that support the REALTOR® Cause. To learn more about what they do, click here.

Need to pay your 2010 Dues Bill? You can pay on our website >> HERE.

What's New from the Boise Valley Economic Partnership

2009-10-15T10:29:00.002-06:00

Council met this morning. Every segment of Valley commerce is there: cities, counties, airport, power, commercial, builders Realtors, finance, chambers of commerce...you get the idea.

We've been hosting a site visit a week for last month. Mood is that once the credit becomes available, more companies will "pull the trigger" on expansion(in Boise).

Project update - as of last week the German company (700 employees) is still trying to decide. They were just involved in big acquisition (took over another company) and had to put US project on hold. We are still one of only two locations in consideration.

A Fortune 50 company is looking at a build-to-suit site here. They would bring 500 jobs.

BVEP legislative priorities are to work with counties to improve tax abatement process.

Also working to reduce corp tax rates. Gonna be tough with this budget.

BVEP has strategy to reverse tech sector employment contraction. We need to expand the work being done at BSU to create renewed interest. BSU is a national force in 3 research areas...smart materials, sensors and geophysics. But we need to expand lab and research

Some of the projects they are researching include: adding dna to ceramics (nanotech); creating ceramic fuel cells that make hydrogen for cars.

BSU is the single largest geophysics research project on earth's shallow surface. Huge interest area for oil companies.

The Chamber is hosting an Economic Outlook Forum on Nov 10 with BSUs Pres.

Social Media Rules of Engagement

2009-10-15T06:57:00.003-06:00

Give More Than You Take The more you contribute to conversations and discussions, the more people will recognize your name and what you stand for. Over time you will establish credibility and build value. Remember the well-known adage; the more you care, the more you share.

Respect Be respectful of the community, the members, the group’s overall goals, etc. Social Media is a participatory sport and that means that you are one of many. People can chose to communicate with you or they can chose to ignore you. Treat others as you want to be treated.

Listen Listening and receiving comments and feedback are two of the greatest strengths of Social Media. They represent first-hand interaction with your customer. By listening to them you gain unfiltered feedback about your products and market.

Respond When people comment or leave messages for you it’s only polite to respond in a timely fashion. By responding you are validating to the online community that you are an individual that values and acknowledges others. This adds to your credibility as an individual.

Build Relationships It’s called social networking for a reason. Make sure you build relationships with everyone that communicates with you; establish conversations, ask questions, respond to questions, etc. Discussions and relationships encourage people to return to your page, thereby building a meaningful community.

Be Authentic and Transparent Be sincere and honest; be yourself. With Social Media displaying your profile, message and comments it is critical to your success that you are genuine and dependable.

Do Not Become a Nuisance It’s generally agreed that spamming is bad, but it’s also important to avoid becoming a Keyboard Gangster, Envelope Pusher or a Social Saboteur. More about these different type in my new Social Media Report.

Collaborate Social Media is a collective medium. This means that it uses the knowledge or wisdom of the whole group; not just a single individual. For that reason, information obtained in Social Media on Wikis or reviews is seldom entirely wrong. On the other hand, it’s often not 100% right. As a result, there is a strong need to work together, updating and constantly adding value to improve the quality of the content.

Add Value Every member of a community must contribute his or her fair share. What is your contribution? Remember that contributions come in many different shapes and actions: providing information, being a resource, answering questions and redistributing information.

Consider Opportunities in the Long Tail In Social Media, every service offering has some degree of value. It’s not always wise to just focus on the few services that command a high frequency of interest among a few niche groups and the requisite competition that introduces other service providers. As technology continues to erode communication barriers, value will also come from the many niche groups in “the tail” that demonstrate interest in services that conventional (competing) service providers would otherwise consider having little value.

Idaho Conference on Housing is Next Week

2009-10-15T06:45:00.002-06:00

Join us for lively discussions with our workshop panelists and speakers, including Idaho's First Lady Lori Otter, member of the Idaho Meth Project Advisory Council, on dealing with crime and drugs in your community at the 2009 Idaho Conference on Housing at the Doubletree Hotel Boise-Riverside on October 19 and 20, 2009.

Friday, October 16 at 2:00p.m. will be the last opportunity to register online!

Registration Fees:
$125 Nonprofit/government
$175 Regular

Workshops and Presentations Include:

* Housing Crisis and Statewide Housing Conditions
* Housing Fraud: What it Means to you
* Neighborhood Stabilization - What's being done in your community
* Mayors Weigh in on the Link between Housing, Transportation, and Economic Development
* Experts will discuss what the future trends and key issues will be in Idaho
* And much more...click here to view the complete agenda.

First Time Home Buyer Tax Credit-Is The End Near?

2009-10-13T20:57:00.001-06:00

The National Association of Home Builders today reported that: “Washington turned a sharper focus last week on extending the current $8,000 tax credit for first-time buyers beyond its Nov. 30 expiration date and expanding it to a wider circle of principal home buyers”.

On Oct. 5, White House Press Secretary Robert Gibbs, said that “there has been quite a bit of success” with the home buyer tax credit, and he added that the President is considering extending it to strengthen the economy and create jobs.

NAHB estimates conservatively that the current tax credit has been responsible for some 200,000 additional home sales since early this year, resulting in a net increase of 187,000 jobs. Extending the tax incentive through Nov. 30, 2010 and making it available to all income-qualified purchasers of a principal residence would result in an additional 383,000 home sales and generate 347,000 new jobs in the coming year, according to NAHB economists.

A Meeting in the Oval Office The New York Times reported on Oct. 7 that extending the credit was briefly mentioned in a meeting that day in the Oval Office between President Obama and Democratic congressional leaders Rep. Nancy Pelosi, (Calif.), speaker of the House, and Sen. Harry Reid (Nev.), the Senate majority leader. Congressional aides indicated that a tax credit extension is being viewed as an option for stimulating the economy and job creation and extending it beyond first-time buyers is being considered.

In a statement following the White House meeting, Reid said that, “we need to continue working toward ensuring that more families can stay in their current homes and continue efforts to strengthen the housing market by extending the tax credit.”

The New York Times story also cited warnings from Mark Zandi, chief economist at Moody’s Economy.com, that allowing the tax credit to expire would slow the sales of new homes not facing foreclosure just as sales of foreclosed homes are expected to pick up, which would put downward pressure on home prices.

“The economic recovery will not evolve into a self-sustaining economic expansion and risks unraveling back into recession until house prices stop falling,” Zandi said in an interview.

September Numbers Are In - And They're Good!

2009-10-12T16:16:00.002-06:00

It is clear that buyers are getting the message.

I attended a “Finally Home” first time buyer seminar for 3 evenings last week. Gary Archer, the instructor, said: “There will never be a time in your life when real estate is a better buy.”

By the way, do your buyer clients the best favor you can. Get them in the Finally Home program. I Tweeted from class: “We think they know so much more than they really do”. I’m standing by that.

Sales in September were up 4% over August ‘09 and up 8% over September ’08.

So far in ’09 month over month sales have been up 8 months out of 9. Total monthly volume for September is nearly 2 ½ times what it was last January.

Median price in September slipped to $165,000 from Augusts’ $171,872. Most of this is from the number of short sales that closed.

Inventory fell to its lowest number since June ’06. Our highest inventory number was 5198 in July ’07. We are nearly one-third less than that record amount. Compared to September ’08 we are 15% less. Translating that into months of inventory on hand; we are at less than 7 months. (combined new and resale). This is 50% reduction from January ’09.

We have traditionally defined “market equilibrium” as 6 months of available inventory.
Measuring the impact of the first time home buyer tax credit; NAR recently reported that this category of buyer typically accounted for 45-48% of total sales. Nationally, the number is now over 50% of all sales.

In Ada County, sales of homes under $160,000 account for 32% of all inventory. This is up 20% from January ’09.

In September 45% of all sales were houses under $160,000.

In this price category, inventory is even scarcer. Inventory of new homes under $160,000 is at 4.35 months. Inventory of existing homes under $160,000 is at 4.6 months.

Short sales in September were 15% of all sales. REO sales in September accounted for just over 18% of total sales. This is down slightly from August and down 14% from our high in March.
Pending sales continue to forecast a solid future. At the end of September there were 975 pending sales.

Now, if we can just get Congress to do the right thing and extend the First Time Home Buyer Tax Credit, we're going to continue this recovery.

Cap and Trade Bill Misinformation

2009-10-09T11:56:00.003-06:00

There is an email recirculating from months ago about the impacts of H.R. 2454 (Cap and Trade bill) that is NOT based on complete reports. Most of these claims are addressed in a series of myths/facts at realtor.org. Please feel free to refer to: http://www.realtor.org/government_affairs/gapublic/american_clean_energy_security_act to get acccurate information.

The Idaho Association of REALTORS(r) are also offering additional input to NAR about the bill prior to being addressed in the Senate.

Tax Credit Call For Action Update

2009-10-09T11:38:00.002-06:00

Tax Credit Call for Action Update

The Call for Action (CFA) urging Congress to “extend and expand” the homebuyer tax credit is still open.

Nationally, just under 143,000 REALTORS® have taken action which is a 14.1% response rate. We are on track to reach our goal of 15% very soon! Targeted messaging and The Broker Involvement Program are both helping to build our response rates and we hope they will continue to grow. Please make sure all of your colleagues have responded so we can reach our goal. Take action now.

A lot of news outlets are talking about the homebuyer tax credit and it’s got a lot of people chatting. National Public Radio (NPR) recently ran a great piece on the debate over the extension of the tax credit. To read about it and listen to the story, please go to the NPR website:
http://www.npr.org/templates/story/story.php?storyId=113586552&ft=1&f=2.

Homebuyer Tax Credit Best Tool for Sustaining Housing Recovery, Says NAR

2009-10-09T09:07:00.001-06:00

Washington, October 07, 2009

The best available tool for sustaining the still-fragile housing market is the $8,000 homebuyer tax credit, and it is essential that Congress extend the credit into 2010, the National Association of Realtors® testified at a hearing of the U.S. House Small Business Committee today.
The tax credit expires November 30.

NAR Regional Vice President Joseph L. Canfora, a broker-owner with Century 21 Selmar Realty in East Islip, N.Y., also told the panel that a major stumbling block for consumers has been the implementation of appraisal processes spurred by the Home Valuation Code of Conduct, which is causing delays in closings, as well as cancelled sales that led to artificially low existing-home sales numbers for August, reported last month.

“The credit is working,” Canfora said, pointing out that the 355,000 to 400,000 transactions directly attributable to the credit made a significant dent in the housing inventory and will help to stabilize home prices. Further, the credit has provided a huge indirect benefit to local governments, shoring up property tax bases in particularly hard-hit areas.

Further, NAR data has estimated that every home purchase pumps into the recovering economy about $63,000 – the equivalent of one new job added to the employment figures.
But, Canfora said, the threat of more foreclosures coming to the market caused by mortgage rate resets, job losses, and by lender’s unburdening themselves of additional properties to take advantage of today’s more stabilized prices could disrupt the fragile recovery.

In a “normal” market, optimal housing inventory is about six to seven months, he said. When the tax credit was enacted in February, inventory was 9.1 months. Because of the spurt in homes sales since then due to the tax credit, inventory declined to 8.2 months in August, closer to “normal” than at any time since 2007.

In urging Congress to extend the credit, Canfora said, “The more robust the credit and the greater its duration, the greater the chance that the housing market can perform its traditional role of helping the economy move out of a recession.”

“But problems arising from the implementation of the HVCC may reverse the market’s positive momentum at a time when the real estate industry is just starting to show signs of a rebound in many markets,” Canfora said. According to an NAR survey of its members, approximately 40 percent of Realtors® report having lost at least one sale since May 1 because of appraisal problems due to the HVCC rules. Twenty percent say they have lost more than one sale.

The culprit, he said, was that appraisal management companies, which have gained prominence because of the HVCC, have assigned appraisers to areas where they lack geographic competence. That has resulted in unreliable appraisals. It is not uncommon that second and third appraisals have to be done to ascertain fair market value. Appraisal fees have also risen and are being passed on to consumers.

Both Fannie Mae and Freddie Mac have issued guidance on appraisals, but NAR is calling upon the mortgage giants and the Federal Housing Administration to issue a consolidated guidance that should be codified and incorporated into the existing policy to ensure proper information on appraisals is available to the real estate industry.

FHA Commissioner David H. Stevens has asked FHA staff to explore that recommendation with Fannie and Freddie. Last month, Stevens reaffirmed FHA appraisal policy, taking into consideration the unintended consequences that have burdened Fannie and Freddie, and issued two Mortgagee Letters focusing on appraisal changes. The policy reaffirms appraiser independence and geographic competence.

The FHA announcement also included timely steps to protect taxpayers: implementing credit policy changes to enhance risk management; hiring a chief risk officer for the first time in the agency’s history; and shifting responsibility for mortgage brokers away from taxpayers to the lenders who use mortgage brokers.

Canfora told the committee that FHA has performed remarkably well through the housing crises, compared to Fannie and Freddie. “That’s because FHA has never strayed from the sound underwriting and appropriate appraisals that have traditionally backed up their loans.”

“The reason the FHA capital reserve ratio fell below 2 percent had nothing to do with FHA’s current business activities. It is simply a reflection of falling housing values in their portfolio.” He cited an FHA announcement that a 2009 audit will show that even if FHA does nothing, the cap reserves are expected to rise back to that required level within a few years. He also pointed out that FHA total reserves are not in as dire straits as some have reported since the cap reserve fund is not the only FHA reserve fund – FHA also has a separate cash reserve that is higher that it has even been – and the combined assets total $30.4 billion.

The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1.2 million members involved in all aspects of the residential and commercial real estate industries.
# # #

Tax Credit Extension Still Un-Certain

2009-10-09T09:00:00.002-06:00

This yesterday from DSNews ("new and up-to-date information for the Default Servicing Professional")

White House Won't Commit to Homebuyer Tax Credit; Economists Remain Split
10/07/2009 By: Adam Weinstein

As the clock winds down on the popular $8,000 tax credit for new homebuyers, the White House has remained mum on whether it will be extended, and analysts are at loggerheads over the credit’s impact on housing markets.

The tax benefit for first-time purchasers – an emergency measure that was approved as part of the federal government’s stimulus to the ailing residential housing sector – is set to expire on Nov. 30. But despite appeals by trade advocacy groups to extend the credit, the White House said this week that it hadn’t made a decision on the matter.

The credit “helped the economy” and led to “quite a bit of success,” White House Press Secretary Robert Gibbs told reporters Tuesday. To that he would only had that President Barack Obama was considering an extension of the credit as one of many possible proposals to stimulate economic output and employment.

But some economists say the credit’s effect on the beleaguered housing industry has been exaggerated. Paul Dales, a researcher at Capital Economics, said the policy’s expiration was unlikely to reverse the recent housing recovery. He took issue with a National Association of Realtors study that estimated the tax credit was directly responsible for 350,000 home sales since January – about half the national total sold in that time. In fact, the real figure was closer to 225,000 units, or roughly 30 percent of all sales, Dales said.

“Overall, the government’s initiatives have kick-started the housing market, but they do not explain all of the recovery,” he said. “If we are right in thinking that the tax credit accounts for around 30 percent of the increase in home sales, then around 70 percent must be due to other more longer-lasting factors, such as the plunge in housing valuations and the fall in mortgage rates to historically low levels.”

That hasn’t stopped mortgage and housing groups, like the NAR, from advocating that the credit stay in place. The National Association of Home Builders has gone even farther, lobbying to expand a longer term tax credit to all home buyers.

Congress is expected to begin work soon on a bill to extend the tax credit. Though the potential bill’s fate is unclear, inside sources have told reporters that the likeliest outcome, due to federal budget reservations, is a 6-month continuance of the policy.

Foreclosure Prevention - 90% Successful - Free to Homeowner

2009-10-06T09:30:00.002-06:00

Neighborhood Housing Services Offers FREE Foreclosure Prevention Counseling

I recently became Chair of NHS's Housing Solutions Committee. The Committee oversees an amazing, and mostly unknown program to help homeowners. Called "Foreclosure Prevention Counseling", its really much more. NHS is able to do loan modifications (where possible), as part of an overall foreclosure prevention program. And...its FREE...and it has a 90% success rate (of avoiding foreclosure)!

Designed for homeowners who are behind, or anticipate becoming behind, in mortgage payments on their primary residence.

Available to all Idaho residents for their primary residence

NO COST for housing counseling services

We will work with you and your lender toward modification
NHS is a nonprofit, HUD-approved housing counseling agency.

Call us at (208) 343-4065 x119 or email home@nhsid.org

Here are four documents about the program

1. Two-sided color brochure for homeowners

2. Short Description of the Foreclosure Prevention Program

3. Homeowner Intake Packet - to initiate the program

4. Complete Program Overview

Beware of foreclosure rescue and loan modification scams! Contact the U.S. Department of Housing & Urban Development at 800-569-4287 to verify that a company is legitimate and reputable before you work with them.

Mortgage Resources to Grow their Client Base

2009-10-06T09:22:00.002-06:00

The number of products and services offered through Right Tools Right Now continues to grow.

Just released are three new Mortgage e-Products...

Traditional Mortgages: Understanding Your Options
This brochure helps consumers consider a variety of mortgage options including traditional fixed-rate mortgage and adjustable-rate mortgage (ARM).Order your copy for FREE

Specialty Mortgages: What Are the Risks and Advantages?
A consumer oriented brochure that outlines the risks and advantages of non-standard types of mortgages.
Order your copy for FREE

Learn About FHA Mortgages
This brochure outlines the changes to FHA, how to qualify for an FHA mortgage, and other resources available from FHA, HUD, and NAR.
Order your copy for FREE

Every REALTOR® who wants to sell more homes will benefit from the FHA Toolkit and information on FHA loans, which includes video FAQs and guides to major FHA-insured loan programs - all you need to help clients find the right FHA-insured loans. More new resources will e added every month, check back often!

Realtor.com meet Facebook...

2009-10-05T15:14:00.004-06:00

If you don't believe social media is impacting real estate then take a look around.

Realtor.com is now directly interfacing with Facebook! And, its free! All you have to do is sign up for the application!

Your listings on your Facebook page... automatically!

What will they think of next?

NAR Brings National Housing Conference to Boise

2009-10-05T06:39:00.002-06:00

Mark your calendar and plan to join your colleagues from around the region on Thursday, December 3 from 10:00 a.m. to 3:00 p.m. for a free one-day forum on employer-assisted housing (EAH) hosted by the National Association of REALTORS® and the National Housing Conference.

EAH is often described as a win-win-win tool because employers, employees and the community each benefit. As the nation continues to seek solutions to the housing crisis facing our country, EAH presents itself as one tool, among many, to help working families live in an affordable home near their workplace. EAH also helps to attract and retain productive, stable workforces and revitalize neighborhoods.

Join us at the Boise Centre (850 W. Front Street) for this one-day event to learn how you can be a part of a solution! Here is just a sampling of what the program will cover:

· Learn how to create and sustain an EAH program in your community.
· Understand the importance of advancing EAH through local and regional partnerships.
· Explore workforce housing issues from the perspective of employers.
· Hear from other practitioners and advocates managing successful EAH strategies.

You won’t want to miss this opportunity to learn from workforce housing experts, connect with your peers from the region, and share your story in a dynamic learning environment!

Register online today at https://216.64.136.11/exchweb/bin/redir.asp?URL=http://boise2009forum.eventbrite.com! Staying overnight? See details below on booking a discounted room at The Grove Hotel in downtown Boise!

Who Should Attend
The principal goal of the Bring Workers Home regional forum is to expand awareness of EAH as a proven housing solution among state and local leaders—including REALTORS®, REALTOR® association staff, business leaders, state legislators, city council members, other elected and appointed officials, and human resource and employee benefit professionals. This regional forum will also provide learning opportunities for housing planners, economic & community developers, practitioners and advocates.

Please feel free to share this announcement with interested colleagues!

Special Training Opportunity---Home from Work™ Class
Maximize your regional forum experience—participate in the Home from Work™ continuing education credit class on Friday, December 4 from 9:00 AM to 12:00 PM.

Designed for real estate professionals, this class will help you understand the benefits of employer-assisted housing and how to work with employers to assist them to implement an EAH benefit plan at their workplace.

Dates and Times
Bring Workers Home: 2009 Eastern Regional Forum on Employer-Assisted Housing
Thursday, December 3, 2009
10:00 AM to 3:00 PM

Home from Work™ Class
Friday, December 4, 2009
9:00 AM to 12:00 PM

Event Location and Sleeping Room Availability
The Bring Workers Home Forum and the Home from Work Class will take place at:

Boise Centre 850 W. Front StreetBoise, ID

Staying overnight? A discounted block of sleeping rooms is available at The Grove Hotel (245 S. Capitol Blvd.) The Grove Hotel is adjacent to Boise Centre and rooms are available for $109/night. To take advantage of this offer please book your room by November 18 by calling 1-888-961-5000 and referencing "National Housing Conference."

Registration Instructions
Register online today at https://216.64.136.11/exchweb/bin/redir.asp?URL=http://boise2009forum.eventbrite.com! There is no fee to participate in either event; however, space is limited. You are encouraged to register as soon as possible to confirm your participation. Registration will close on November 13.

Questions?
Please contact Lynn Ross at the National Housing Conference at lross@nhc.org.

Guess Who's Ditching Their Mortgages...Really?

2009-10-02T13:44:00.001-06:00

A study of 24 million credit files by national credit bureau Experian and consulting company Oliver Wyman has shown that home owners with high credit scores are 50 percent more likely to deliberately walk away from a mortgage than lower-scoring borrowers.

The industry calls these “strategic defaults” and their numbers grew to 588,000 in 2008, double the total in 2007, and well beyond most earlier estimates.

The study determined:
Strategic defaulters tend to go straight from paying their mortgages dependably to not paying at all.
Strategic defaulters are heavily concentrated in negative-equity markets like California and Florida.
Two-thirds of strategic defaulters have only one mortgage.
Most likely to default are home owners with large balances and the highest credit ratings.

Piyush Tantia, an Oliver Wyman partner and a principal researcher on the study, said strategic defaulters "are clearly sophisticated” and look on the decision to default as a business strategy. "Well, I'm $200,000 in the hole on my house, and yes, I'll damage my credit," Tantia says of defaulters.

ACAR Green Task Force Update

2009-10-01T11:30:00.001-06:00

Our Energy Audit on the ACAR building was facilitated and completed in June by Eco Edge and a detailed report was delivered to the Task Force in July.

Our first meeting’s focus with Sharon Patterson of Eco Edge was to develop a sustainability policy for ACAR with the intent to communicate to membership, staff and clients a commitment to improving environmental, social and economic sustainability over time through specific goals and objectives.

Our green sustainability policy is designed to work in tandem with ACAR’s Mission Statement to ensure that we are promoting responsible property development while protecting private property rights. Our sustainability policy states:

The Ada County Association of REALTORS® is committed to setting an example of environmental and social responsibility for the real estate profession and the public in Ada County with observance to the protection of private property rights for all. This commitment to sustainability starts with our office and extends to our membership and the community. We will provide members with education on the value of sustainable properties and green buildings and with the tools and resources to conduct their businesses in a more environmentally responsible manner that betters the communities in which we live.

Our next two meetings focused on digesting the results, and deciding what recommendations we felt were the most important to tackle. The process involves assigning Project Champions for each task, to research costs, vendors, possible grant money, and execution.

The recommendations and tasks at hand include correcting disconnected ducts, correcting distribution of insulation in attic, installation of carbon monoxide detectors, considering bathroom occupancy sensors, replacing cleaning products with products that meet GreenSeal criteria, replacing kitchen products with recycled products, purchasing alternative drinks, replacing lights with CFL and apply for a grant with Idaho Power to replace the fluorescent lighting. We have only just begun, but it is a great start to make our building better and more efficient.

You may have noticed we now have a Green Tip on our e-bulletins, too!

Our Green Task Force is to be commended for their work and dedication: thank you to Alicia Ralston, Alicia Reinhard, Holly Tastad-Pozel, Jan Higginbotham, Jill Giese, Jody Hinton, Judy Luce, Karyn Williams, Lydia Richards, Tempe McFarlane and from ACAR staff, Susan Hansen.

Laurie Barrera, REALTOR®, GREEN, EcoBroker Certified
2009 Green Task Force Chair

ACAR Young Professionals - Meeting on Sept 30th

2009-09-28T16:24:00.002-06:00

This month, the ACAR Young Professionals will be meeting on Wednesday, September 30th from 11:30am-1pm at Pioneer Title on Rifleman. We have a guest speaker, Ronda Conger, who will help you to find inspiration in your business!

We will be providing lunch for you, so if you are planning on coming, just let me know! (Email me: SHansen @ myACARonline.com)

See you on Wednesday!

Tax Credit Already Helped 1.1 Million Households

2009-09-23T14:19:00.001-06:00

The IRS says 1.4 million have used tax credit already. The 1.4 million total is based on the number of taxpayers claiming the $8,000 first-time home buyer tax credit on their 2008 income tax returns, including amended returns, the IRS says in a release (IR-2009-083).

Meanwhile, with it expiring Dec. 1, NAR continues its full court press to extend the credit into 2010. Watch and link to a video with NAR Government Affairs on the legislative outlook for the extension.

YPN Tech Contest - Win Big!

2009-09-18T10:55:00.002-06:00

If you're a real estate professional using technology to succeed in your marketplace, HP wants to give you an opportunity to win a mobile office. In exchange, we want to know your "technology" story.

To enter, describe how you use technology or plan to use technology to:
• differentiate yourself,
• increase your revenue, and/or
• improve your productivity

Provide examples, technology-saves-the-day scenarios - you get the picture - anything to illustrate that you're an agent who is optimizing technology to win.

Our grand prize winner will receive an HP mobile office prize package worth up to $3,841.00.
Contest details:
• Contest exclusively for U.S. real estate professionals over the age of 18.
• Entries must be submitted by 11:59:59 p.m. PT on October 28, 2009
• Winners selected:

a) Will receive a prize valued between $425.00 and $3841.00 (see prize list)
b) Will be announced at the HP-sponsored REALTOR® Magazine Young Professionals Network event on Friday, Nov. 13, at 7 PM during the REALTOR® Conference & Expo in San Diego (YOU DO NOT NEED TO BE PRESENT TO WIN.)
c) May be featured in national HP press and promotional materials and websites

To be eligible to win one of five (5) prize packages, submit the entry form and essay here by October 28, 2009. Winners will be judged on content, not grammar. So don't worry about punctuation - just be punctual in getting your entry in before the deadline.

2009-09-16T15:15:00.001-06:00

REALTOR(r) Safety Week

2009-09-16T15:10:00.005-06:00

REALTOR® Safety Week is this week, September 13-19, 2009. It is a time to be reminded of some of the dangers you face everyday, to be aware of surroundings, and to be empowered with precautions and preparations so that you can avoid risky situations.

Take precaution on the job and recognize there are a number of ways to protect yourself and have others look out for you as well!

Click here to learn more today.

30 Under 30 Applications Now Being Accepted!

2009-09-15T11:48:00.001-06:00

It’s that time of year again!

REALTOR® Magazine is now accepting applications for its annual “30 Under 30” feature. Visit our website at http://www.realtor.org/archives/30under30main, and be sure to have your NRDS# ready.

Remember that we are looking for more than just sales volume and transaction sides when considering finalists. New systems, ideas, leadership, and association involvement also play a large role. Applications will be accepted through January 31, 2010.

Please pass this announcement on to your members so that your chapter may have the opportunity to be represented in this elite group of REALTORS®!

IMLS Contributes $10,000 towards home ownership program

2009-09-14T15:29:00.002-06:00

The IMLS is joining IAR, ACAR, IHFA and the REALTOR Community Foundation in contributing $10,000 towards the Welcome Home Idaho program of promoting homeownership. The funds will be used in the interest rate buydown program for the IHFA tax credit 2nd and sustaining homebuyer opportunities. Thanks IMLS for the generous support and helping people throughout Idaho achieve the dream of home ownership!

What Do You Think About This...?

2009-09-11T13:01:00.006-06:00

...A New Member Start Up Kit.

We were talking about how we could help new members jump start their first 90 days as REALTORS.

In addition to learning where the office is, how to enter a listing and what is in the "blue brochure," there's lots of other small but important things to put together...everything from tape measures to sign riders, brochures to a zip drive with every kind of information needed. The list goes on.......

Here's an idea we were tossing around.

What if ACAR created a New Member Starter Kit available for purchase while the newbie is here purchasing their keys and signing up for the association and MLS?

One stop shopping, with a "new REALTOR®" discount too.

What do you think? What would you suggest we add to the starter kit?

First 10 Home Buyers to pay off IHFA Loan

2009-09-11T11:17:00.003-06:00

At ACAR we received the Ira Gribin Grant from NAR to help encourage homeownership and issues associated with workforce housing. One element of the program is to pay off the interest and fees associated with the first-time homebuyer tax credit loan being offered through the IHFA (one of the few states offering this advance loan). We just received the payoff statement for the first 10 home buyers to pay off their loan. The REALTORS® Community Foundation will be sending a first check to IHFA to reimburse these homebuyers their fees and interest. The homebuyer will receive a letter letting them know that Idaho REALTORS® (you!) have made this possible for them. This will help encourage homeownership and responsibility in handling the repayment of the loan. We are very excited to partner with the IHFA in this program and to be letting Idaho know REALTORS® stand behind our principles of encouraging home ownership!

FannieMae: Mortgage Fraud News

2009-09-08T11:33:00.002-06:00

FannieMae periodically publishes articles dealing with current business practice issues...here's what they had to say about Preforeclosure sales...

Fannie Mae has become aware of a new variant of property flipping involving preforeclosure (short) sales.

The trend we have observed involves a perpetrator who submits a short sale offer to purchase a preforeclosure property at a price less than the current indebtedness. This perpetrator locates a second buyer, who may not be arms length, to purchase the property at a higher price simultaneous with the short sale or in rapid succession, concealing the second (higher) transaction from the lender approving the short sale. The second transaction may involve a new loan based on an inflated appraisal.

In some cases, the perpetrator convinces the homeowner to deed the property into a land trust, with the perpetrator (or his accomplice) as trustee.

Example:
We have been advised of instances where the perpetrator is the listing agent, and the agent presents his/her short sale offer as the "best" offer, even though the agent has received other, higher, arms length offers.

As this trend has gained momentum, some title companies have begun to refuse to close the simultaneous transactions. As a result, a second version of this scheme has evolved in which the closing involves only one transaction: from the homeowner to (the perpetrator’s) ultimate purchaser. The perpetrator is paid out through or outside of closing. Some of the tactics observed include a second mortgage filed by the perpetrator against the property immediately before closing, and inflated real estate commissions.

These flips can potentially be identified and thwarted by either the pre-foreclosure lender or the lender financing the second (inflated) transaction. Fannie Mae recommends the following best practices in assessing preforeclosure sale activity:

Confirm the ownership status of the property:

Is the title held in trust? Was it an allowable transfer? (Servicing Guide, Section III, Chapter 4)

Review marketing efforts such as the MLS listing

Condition approval on disclosure of all contracts pending on the property prior to mortgage payoff

Validate the purchaser’s loan approval, deposit and funds to close

Condition approvals for preforeclosure sales on review of the final HUD-1 Settlement Statement

Review the sales price and payouts against the purchase offer

Fannie Mae recommends the following best practices to avoid financing inappropriate property flips:
Validate the purchaser’s deposit and funds to close
Use reliable appraisal valuation sources
Review the final HUD-1 and do not allow excessive seller concessions to be paid to the purchaser
Question excessive sales commissions
Validate that the seller holds clear marketable title to the property
Fannie Mae partners with a wide variety of industry groups, with law enforcement, and with our customers in mortgage fraud education and prevention efforts.

If you have any questions or suggestions about this information, please contact Fannie Mae’s Mortgage Fraud Program or your Customer Account Manager.

August, Come She Must

2009-09-08T10:12:00.003-06:00

There's an old rhyme meant to help us predict the hurricane season: "June, too soon; July, stand by; August, come she must..."

The big question going into the dog days of summer was: "Would August continue the momentum of the previous two months?"

The answer is a resounding "Yes".

Sales are up 2% from last month; and up 8% from this same month last year. This is the third month in a row for an increase over last year's same month. This three month trend reverses 35 months of year-over-year decreases. We are likely to look back at the Summer of '09 as the season of our comeback.

Pending sales also continue to climb. Last month there were 51% more Pendings than the same month last year - now there are 63% more pendings. Even New Construction Pendings are 23% above last year.

Short Sales and REO's are up slightly. Short sales were 15%. REO sales are were 20%.That makes 35% of the sales in August "distressed". Our high was 48% in Feb, 45% in March, & 44% in April.

There are some indications that more short sales are being closed.

Median home price continues to hover in the $170k to $175k range. In August the median was $171,000. This is down 2% from July and 17% from '08. There was a jump in new home median in August compared to July; up 7%. Looking back at July we observed a big drop in new home median. August seems to correct that.

Affordability is at its best ever!

Inventory is now back to 2006 levels. We now have 7.5 months of available inventory; 3289 resale and 755 new homes.

Lastly...home prices seem to be firming up. This discount between listing price and final sales price decreased to 2.9%

Right Tools Right Now Delivers SFR Certification

2009-09-04T10:31:00.004-06:00

Two weeks ago Dale Stinton announced that Right Tools Right Now will continue through 12/31/2010!

Until yesterday, if you wanted to earn this certification you had to pay a $175 registration fee; take one all-day class for about $150 and do 3 webinars (free).

Beginning in October, the registration fee is waived; the all-day class goes online (maybe free); ACAR begins offering a discounted all day class here; the webinars are still free!

Also...NAR is offering the all-day course in San Diego a day before the convention begins. Cost is $75. You don't have to register for the convention to attend. Register

The path to pursuing the SFR certification is straightforward. Follow these four steps:

1. Be a member in good standing of the National Association of REALTORS®

2. Complete a qualifying core course. Choose ONE of the following:

- REBAC’s Short Sales and Foreclosures Course

One day in length Available in classroom

Online version is coming soon

For more information, visit http://www.coursecalendar.com/.

- CRS 111: Short Sales and Foreclosures: Protecting Your Clients’ Interests One day in length Available in classroom For more information, visit http://www.crs.com./

3. Complete three 1-hour Webinars available free of charge

4. Submit application $175 application fee, waived through December 31, 2009.

Accepting applications beginning in early October 2009.

Put a reminder in your Outlook....

5 Easy Ways to Avoid Getting in Trouble

2009-09-03T14:34:00.004-06:00

There are so many things that we do every day that could have unintended consequences. Recently, there have been themes to those actions and a seemingly minor issue is becoming something more. Here are few easy things that you should never do in real estate.

1. Never Give Out Lock Box Codes-- With more short sale and REO properties on the market, there has been a resurgence of the combo lock lockboxes. NEVER GIVE OUT THE CODE TO CLIENTS OR CUSTOMERS.

It sounds so simple! If you tell your customer or client, "Yeah, that house has a combo lock on it. I can't meet you right now, so just let yourself in. The code is 1-2-3." you have just opened yourself up. You may be liable if anything happens to that property. Your client may take things, break things, or do something to the property. You don't need that on your record or your conscience. If you can't meet them right at that moment, either reschedule or arrange for another agent to tour the property with them. Maybe ask the listing agent to open the property for them. Giving them the code is the easy thing - but it doesn't make it the right thing.

2. Never Use Someone Else's Photos on a Listing Without Asking First-- Photos are subject to copyright laws. If you take the photos from an old MLS listing and post them as yours, you may find yourself explaining it to a judge. If you want to use another agent's photos, get their permission before posting. If your seller provides the photos, ask your seller who took the photos. Just because the seller has a copy of it doesn't necessarily mean they have ownership of the copyrights. Digital cameras are so prevalent in today's society, a moment or two of your time to take some new photos now may save you a headache later.

3. Always Call Before Showing-- A common courtesy typically extended to each other as professionals, it helps to avoid miscommunications and angry sellers. Just because there is a lockbox on the property doesn't necessarily mean that you have unrestricted access. If you arrive unannounced, you risk confrontation and possible embarrassment in front of your customer or client.

Additionally, calling before you show a property can be a great benefit to you and your client if the property is no longer available. If the listing agent hasn't had an opportunity to update the status on the MLS yet, it is possible you would be showing a property to your client that isn't actually available. That is a waste of time and resources for both you and your client. A simple phone call or email could clear that up quickly.

4. Never Give Out Login Information-- Your membership and access to listing information is a valuable part of your service as a real estate professional. Giving this information out to clients, customers, and random family members devalues your profession and you as a professional.

It allows folks outside the industry to gain information that they have no need to know. It gives them access to commission information, sensitive information such as the contact information for sellers, and a history of everything that has occurred on a property. Show pride in your industry and protect the information.

5. Always Ask the Question "Is this in the best interest of my client?"-- If that answer comes up as a 'no', then you need to re-evaluate the actions you are taking. As a service provider, your clients interests are primary - not to the point where you would treat another party dishonestly- but you need to ensure that you are serving and protecting your client.

Just taking a moment to reflect before you act can save you time, money, and headaches! And it may lead to better client satisfaction, better colleague interaction, and ultimately, a more successful career!

Good luck, have heart, and go Broncos!

Give-Back Golf Tournament - Wednesday, October 7th!

2009-09-01T14:56:00.002-06:00

Get ready to play! The Stan Thomas Memorial Give-Back Golf Tournament is scheduled for Wednesday, October 7th at Shadow Valley Golf Course. A few sponsorship opportunities are still available and player registration is now open. Player fees have been reduced from $125 to only $95 this year, so get your team together so you don’t miss out on a fun day with your friends and colleagues while raising money for two local charities - Habitat for Humanity and City Light Home for Women & Children.

Since this tournament began in 1997, the ACAR Community Give-Back Golf Tournament has raised $340,000 for worthy charities in our community. In 2007 the tournament was named after our good friend and colleague, Stan Thomas. Stan was an incredibly active member of our organization for many years, and because of his commitment to the community, we’ve named the tournament in his memory.

Need more info? Give me a call.

Judy McLaughlin
Director of Member Outreach
947-7230

Cross Promotion Giveaway Madness

2009-09-01T09:52:00.006-06:00

The Center for REALTOR Technology (CRT for short) has announced a contest that will help all of us increase readership of our blogs…

“How's that?"

This goes along the "show me yours and I'll show you mine" approach to managing social media sites.

I was talking to Heather Harrington about it over lunch a couple weeks back. We all have good content blogs, but not much "echo" effect. The key to increasing readership and site relevance is to comment on one another's posts and create community dialogue. Trouble is, its hard to discipline ourselves to do it.

Now comes CRT with a great incentive. They are offering a free NAR Convention registration worth hundreds of $$$. All you have to do is help with some blog promotion:

1. Make a blog post about the cross-promotion-giveaway-madness-challenge and include the Expo widget OR

2. Tweet about this blog post and the CRT session agenda at least 5 days apart.

3. Then Join the CRT Facebook Page

4. Post links to the blog(s) and/or tweets in the cross-promotion-giveaway-madness-challenge Blog comments here or in the Facebook note

5. Sit back and wait to see if you win the challenge.

One (maybe two) lucky people that complete those steps and are a CRT Facebook Page fan by the end of September will win the Full Conference Pass courtesy of NAR.

If this spreads enough, maybe there will be some other goodies thrown in the mix as well. So what do you think? Want to get in on the Super CRT Cross Promotion Giveaway Madness Challenge? Two tweets or a blog post — how simple can it be?

Interesting Social Media Statistics

2009-08-27T12:00:00.002-06:00

Stephan Swanepeol was one of the featured speakers at the NAR Leadership Summit this week. He offered these recent statistics...

• Twitter grows with 1,382% from Feb. 08 to Feb. 09
• Facebook surpasses 250 million users.
• LinkedIn is adding a member at the rate of about one per second.
• 28 million Americans update their Blog every month
• 54% of Fortune 100 companies are active on Twitter.
• 14 million photos updated to Facebook every day.
• Wikipedia has more than 13 million articles in 260 languages.
• YouTube will serve over 75 billion video streams to 375 million unique visitors during this year.
• 60% of Fortune 100 companies use Twitter.
• Over 375 million Hotmail email accounts worldwide.
• If Facebook were a country, it would be the 4th most populated place in the world.
• Formed in 2004, Flickr now hosts more than 3.6 billion user images.

Check out Stephan's blog.

Are You a Game Changer?

2009-08-26T14:48:00.004-06:00

The "New and Improved" NAR keeps coming up with bigger and better ideas.

Yesterday at the 2009 Leadership Summit they announced the "Game Changers Challenge".

In 1906 professional football was on the edge of extinction. Nine player had died the previous season, and audiences were dwindling to nothing. League owners got together and decided they needed a game changer to guarantee their survival. They invented the forward pass.

In 1956 professional basketball was so boring that no one would go. Games were often decided by scores of 20-17...or less. The owners got together and decided they needed a game changer. They created the 24 second shot clock.

NAR CEO Dale Stinton described NAR as "the organization that is redefining real estate in America. That same organization is now asking its members to help us identify our game changers. With more than 1.2 mil members nationwide, we've got lots of ideas. Until now, we just didn't have the resources to move them along.

REALTOR® associations staff and REALTORS® are invited to submit big, bold ideas that will change the course of how REALTOR® associations work.

We are being asked for a radical -- but implementable -- idea for evaluation by our panel of experts introduced at the Leadership Summit before the competition closes Oct. 1.

The best idea(s) will be completely funded by NAR for development.

Those selected will be announced at the Leadership Luncheon in San Diego. The game changing results of these innovative development(s) will be revealed at NAR's Midyear Meetings in May 2010. This is an extraordinary opportunity for uniquely innovative models of association management to be developed. President-Elect Paulson has challenged the ACAR Board and Staff to come up with a game changer for submission. I invite you to send any ideas you might have...or...would you like to sit down and brainstorm some wild blue sky ideas with us?

What do you say? Are you a game changer?

Your Realtors Community Foundation

2009-08-21T10:52:00.002-06:00

In case you haven't heard, your Realtors Community Foundation is off to a fantastic start with our new funding model. Thanks to so many of you who attended Agent2Agent yesterday, we raised an additional $1200 at the meeting! You all are helping us push forward to our annual goal of raising $100,000 a year for local housing focused charities.

If you're not familiar with your Foundation, please visit the ACAR website Foundation page at http://tinyurl.com/kwyc99 to learn more about our charities. Our Foundation has raised over $1.5 Million dollars since it's creation which makes us the largest non-corporate donor in our Valley! We want to encourage home ownership, housing and a make a positive impact in our community. Some of the charities we're proud to support this year include: Habitat for Humanity, City Lights, Meals on Wheels, Neighborhood Housing Services and so many more.

We need your help though to continue our giving. Many of our new Foundation supporters have generously agreed to donate anywhere from $5 to $50 a month, and you can too! We would like to see 500 of our members sign up to support the Foundation this year, and we'll keep you posted on our progress. Visit the website or email ACAR : jmclaughlin@adacounty-realtors.com for your sign up form and help us make a difference in our community!

Thank you again to everyone for your support!

Kit Fitzgerald
President
Realtors Community Foundation Board

Red Barn Real Estate
871-5288 (please call me if you have any questions)

Mountain Top Leadership

2009-08-18T15:07:00.004-06:00

Lessons on leadership are a dime a dozen in this age of business enlightenment.

So, as I was finishing this year's installment of the Mt Borah climb, I couldn't help but find numerous messages on leadership resident in the rocky crags that make up the climb.

Lesson #1 - Have a good guide.
While we were climbing, there was a massive rescue operation for a missing hiker; gone for 3 days. We learned he'd asked a stranger if it was "OK to go that way?" Turns out it wasn't and he was lost. A good guide knows the way. A good guide shows compassion for the less experienced. A good guide doesn't show off how much he knows.

Lesson #2 - Know your team.
We each bring different strengths to the team. We also each need different supports. We met half of our climbing team the night before we started. Around the campfire we talked about our goals for the climb; what scared us the most; what we thought we could each bring to the effort. Knowing that little bit about someone who had been a stranger, connected us when we needed to exert the most effort.

Lesson #3 - Learn the terrain.
At the end of the climb I met a man who was going up solo the next day. He showed me a route map he'd retrieved from the web. He said: "So is that where I start?"...pointing at the wrong mountain. I said there are two or three places where there are choices to be made. Good choices will reward you. Bad choices can ruin the whole day. "Ask my guide. He knows the way."

Lesson #4 - Have the right tools/resources to do the job.
I loaned out a jacket and one of my climbing poles. It hurt me a little, but without them the others would have hurt much more. Understand what you're getting into before you jump.

Lesson #5 - Pacing is everything.
Go out too fast, and you're not going to make it. Go too slow, and you'll lose touch with the group. One of guys (its always a guy) charged out hard first thing. By the top of the first pitch, he was 30 minutes ahead of the group. He didn't finish.

Lesson #6 - The team will be stronger than the sum of its members.
I really didn't think one of our team would make the summit. He was making noises about turning around. No one discounted how he felt. No one said "Suck it up you can do it." The team just started climbing closer to him. Our guide never left his side. No one got louder cheers for summitting.

Lesson #7 - Things will get hard and scary. Someone may get hurt.
Life is not a video game. Things happen. Three of us were slightly bloodied. One sprained an ankle. One of my favorite quotes is: "Its not an adventure until something goes wrong." Understand the risks going in and the team will be able to adapt to what comes along.

Lesson #8 - When you reach the summit, celebrate!
The next challenge will come soon enough. Sing, pray, laugh, clap...just do something.

Lesson #9 - Coming back done requires diligence.
Reaching the summit is just half the job. Its not the finish. You don't finish until everyone is home safe. The toughest tasks are those that come when your energy is at its lowest.

Lesson #10 - One victory leads to another.
Many say that climbing Mt Borah is a spiritual moment. Many of us look to challenge to validate our lives. I remember the first time I summitted. I'd been through a tough string of personal events. I remember thinking: "I've just done the hardest thing I've ever tried." Carry that feeling forward. Now whenever I feel too tired; or too scared to climb the really tall ladder (a'la Paint the Town) I think to myself: "Heck its not like Chicken Out Ridge, and I did that."

Don't get me wrong. You don't have to climb a mountain to be a great leader. Choose something you're passionate about and I bet you'll find that these 10 simple lessons will enable you to do it better.

Here's a link to a video of this year's climb. Enjoy.

Is the Era of the "McMansion" Coming to an End?

2009-08-11T18:00:00.000-06:00

For the first time in almost 15 years, the size of new homes built in the United States is shrinking.

New homes are now 7% smaller -- or the size of one average-sized room. To be precise, the median square footage of newly built homes fell to 2,065 square feet in the first three months of this year, compared with the same period last year, according to the U.S. Census Bureau.
This caps off 2008, when home size fell every quarter, marking first year of declines since 1994. That could indicate that the romance between Americans and morbidly obese McMansions has finally cooled.

"A new ethic is arising right now that will become commonplace -- as commonplace as is recycling today, when just a few decades ago it was rarely, if ever, done," said Sarah Susanka, author of the book, "The Not So Big House."

"As more and more people build or remodel homes that satisfy in quality rather than quantity, there will be a huge shift in what we perceive as desirable." Read More>>

Free Stuff From NAR

2009-08-11T12:25:00.001-06:00

The 'Right Tools, Right Now' initiative offers a wide range of tools. Here are just three of the many resources you can now download for FREE through NAR's 'Right Tools, Right Now' initiative.

Getting It Sold:

Get the staging conversation going with your seller and help them sell faster.

Order your copy for FREE

Relocation Reports:

Win relocation clients before they ever visit your area.

Order your copy for FREE

2009 Member Profile:

Find out what members like you are doing in this changing market.

Order your copy for FREE

Visit 'Right Tools, Right Now' homepage to see all FREE and AT-COST products and resources that are part of NAR's 'Right Tools, Right Now' initiative.

Listings are updated monthly, so check back often! These special product prices are exclusively available to REALTORS®. To access these and the hundreds of other downloadable products for FREE, member login is required at the REALTOR.org website.

Changes are coming to the ACAR Website!

2009-08-10T11:04:00.004-06:00

You've been telling us... and we listened! Our website is undergoing an overhaul!

ACAR is redesigning its website to be more user friendly and more modern! We still have some placeholder text and are working behind the scenes to fill in content, but here is a sneak peak of what is coming!

We'll have a new URL that is easier to remember (and type!). We'll have menus with options that actually make sense! We'll have a live calendar and the latest news stories so that you'll know in a glance what is happening at ACAR.

Our expected launch date is quite soon. It was delayed a little when Alexander Daniel Kestler decided to make his entry into this world a little earlier than expected! (Congrats to Sarah Kestler, our Director of Communications!!).

Stay tuned for updates and information!

July Arrives - In The Nick of Time

2009-08-10T10:10:00.000-06:00

We had our collective fingers crossed going into July. Would the trend of month-over-month sales continue? Would the small increase in median price hold? Would the huge number of pendings (a bunch of which were shorts or REO’s) actually close?

The answer is “Yes” with a couple of exceptions.

Sales are down 8% from last month, and up 5% from this same month last year. Between ’05 and ’09, the average change from June to July was a decrease of 11%. You could say then that: “July sales outperformed the average July.” This is two months in a row with an increase over last year's same month. This reverses 35 months of sales decreases.

At the same time pending sales are continuing to increase. Last month there were 38% more Pendings than the same month last year - now there are 51% more pendings. Nearly all is on the Resale side, not new construction; but NC is now about even with last year.

Short Sales are down slightly to 14% of the total sales. REO sales are up to 19%; down from the record high of 34% in February ’09.. That makes 33% of the sales "distressed" this month. This a reduction of 11% from our high of 48% in Feb.

Median price is down 1% from last month to $175,000; and down 17% from this month last year. New Construction Median fell 11% just from last month. Down 23% from this same month last year. Resale Median is up 2% this month over last and down 15% from a year ago.

Our most active price category for 2009 YTD is $120,000 to $159,999; with 901 units sold. Second is $160,000 to $199,999 with 682 units.

For the 13th month in a row, inventory levels are below one year ago. And this is the 6th month that inventory is below the prior two years at this point! Inventory is down 3% from last month, and 18% lower than last year at this time.

New Construction is down 4% from last month’s 792. Last year at this time there were 1129 new homes for sale. New Construction inventory has dropped for 28 of the last 34 months.

Resale inventory is 3366 down from 3447 last month. Last year at this time there were 3920 resale homes for sale. July 2008 was the all time record high at 3920.

On July 31 we had 7.8 months of inventory available. January 2009 set the all time new record high at 16.7 months of inventory.

The bottom line is this…We continue to see incremental improvements as we put the first half of ’09 behind us.

First time home buyers has been what has turned our market. Perhaps now the sellers of the $120,000 to $199,999 homes will be free to take advantage of the incredible “trade up” opportunities.

One note on short sale practices…We continue to hear about more and more “creative” practices. At this point, the best advice we can give is to make sure you and your broker are on the same page with the disclosures that are being made; when and how. At the Broker’s Luncheon this week we’ll be talking with the Immediate Past President of the Idaho Mortgage Brokers Association about this and other changes effecting the lending landscape. There’s still time to register. JMclaughlin@AdaCounty-Realtors.com

Special thanks to Jere Webb for his research and insight.

NPR Explains How Mortgage Backed Securities Are Stalling Our Recovery

2009-08-07T14:40:00.003-06:00

Many of you have heard me sign the praises of NPR.

Last night I had a chance to hear the best report on why its so hard for so many homeowners to get their home mortage loan modified.

Earlier this week the Obama administration's foreclosure prevention program got its first report card.
Making Home Affordable, the program is called. And the grades were decidedly mixed. A lot of banks have been slow to help homeowners manage their monthly payments. There are a lot of reasons why that's so. But a big one brings us back to what got the economy into this mess in the first place. Mortgage-backed securities. Karen Weise from the investigative newsroom ProPublica has the story.

CNN Money says 'If you want a repo'd house you'd better hurry."

2009-08-05T14:39:00.003-06:00

NEW YORK (CNNMoney.com) -- You've heard of speed dating? It's got nothin' on foreclosure buying these days. In many places, anyone who wants to buy a foreclosure better act fast, or they're going to come away with bupkus.

REOs, the industry term for homes repossessed by lenders and put back on the market, are often selling in a day -- sometimes in less.

"We're seeing REOs go very quickly. Offers come in immediately after the listing comes on the market, within 24 hours," said Brad Geisen, founder of Foreclosure.com. Some homes have been put into contract in less than 90 minutes.

In Stockton, Calif., foreclosure ground zero, the market has changed radically. Last summer, Cesar Dias became famous for founding the "foreclosure tour," in which he packed potential buyers on a bus and ferried them around to some of the thousands of distressed properties.
Foreclosures: How bad is your city?

Today, the foreclosure tour in Stockton is history. There are too few REOs.

"For every listing that comes out, we have 10 buyers," said Dias, an agent with Approved Real Estate Group. "We had a lot of inventory last summer. Now we're down to 1,500 listings -- from more than 5,000."

San Diego buyers face the same trend. "Agents have one or two REO listings now, compared with 15 or 20 a year ago," said realtor Adrianna Delgado of the Delgado Group.

Read entire story

Appreciation Night a Success

2009-08-04T10:45:00.009-06:00

What a great way to celebrate summer! It was a relaxing evening at a local park with no expectations, no schedules, and no fuss.

With a hamburger in one hand and a Coke in another, families and colleagues spent a few hours catching up and simply enjoying life.

As this crazy and tumultuous year progresses, it is important to remember the simple things in life and express your gratitude for the individuals who have helped you along the way.

ACAR wishes to thank all of the REALTORS® and Affiliates who have worked tirelessly to see that deserving people find houses that they can now call home.

As we look toward the future with expectant eyes, we know our hard work and perserverance will pay off. We'll make it through these challenging times, and we will do so together.

Here's to a successful and rewarding future!

For more pictures from the event, visit us here.

NY Times Says What we've All Been thinking

2009-07-30T07:10:00.002-06:00

Lucrative Fees May Deter Efforts To Alter Loans
Many mortgage companies are reluctant to help strapped homeowners

By Peter S. Goodman
updated 3:30 a.m. MT, Thurs., July 30, 2009

This week, the Obama administration summoned mortgage company executives to Washington to demand they move faster to lower payments for homeowners sliding toward foreclosure. Treasury officials called on the companies to hire and train more people quickly to field applications for relief.

But industry insiders and legal experts say the limited capacity of mortgage companies is not the primary factor impeding the government’s $75 billion program to prevent foreclosures. Instead, it is that many mortgage companies are reluctant to give strapped homeowners a break because the companies collect lucrative fees on delinquent loans.

Even when borrowers stop paying, mortgage companies that service the loans collect fees out of the proceeds when homes are ultimately sold in foreclosure. So the longer borrowers remain delinquent, the greater the opportunities for these mortgage companies to extract revenue — fees for insurance, appraisals, title searches and legal services.

Read the rest of the story at MSNBC.