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You can maximize your earning potential with more tools for emerging markets by enrolling in the National Association of REALTORS® (NAR) At Home with Diversity® certification course which SILVAR is offering on Thursday, September 12, 9 a.m. to 3 p.m. at the Menlo Circus Club, 190 Park Lane, Atherton.
This six-hour course taught by NAR certified instructor Jennifer Tasto will teach agents how to access and analyze demographic data to assess cultural attributes in your local market; how to attract and serve multicultural and international clients in your local market; and how to develop a business plan to address specific needs of those clients.
Earn six hours DRE continuing education credits in fair housing. Earn the confidence of your potential buyers and obtain this certification. You will also obtain a pin and logo to add to their website and business card.
Cost of the course is $49 for all AOR members. A continental breakfast and lunch will be provided.
Registration is for a limited time only and on a first-come first-served basis. There is a limit of 15 students. Registration deadline is September 4, so register now at ims.silvar.org (for members) or call (408) 200-0100 to register.
Home with Diversity®
Thursday, September 12
9 a.m. to 3 p.m.
Menlo Circus Club
190 Park Lane, Atherton
Cost: $49 for all AOR members
Continental breakfast and lunch provided
Where the stock market goes, so does real estate. These days the stock market is up; so is real estate, said Susan McHan, Opes Advisors CEO and president. McHan and chief investment officer Mike Duvall shared their analysis of the economy and Silicon Valley’s housing market with members at Wednesday’s Los Gatos/Saratoga District tour meeting.
“There is amazing infrastructure in the Silicon Valley area arising from the development of new companies and when that happens, money drops in our area. Money is coming back to Silicon Valley,” announced McHan.
McHan added that it is “an unbelievable time” to buy property in the region. Interest rates are low, values are up and home prices are at a 14-month high. Illustrating the correlation between the stock market and real estate, McHan noted indicated just as the Dow Jones Industrial and S & P 500 Composite returns increased 19 and 23 percent, respectively, from January 2012 to May 31, 2012, Bay Area median home prices rose 30.8 percent.
The mortgage advisors said interest rates are at an all-time low and cannot get any lower. They expect rates to remain this way for at least another two years and then rise. Inflation is still at a low level that the Feds are more worried about deflation at this time.
Despite the recovery, there are challenges ahead. Expect a mild recession on the horizon. During the next year, McHan anticipates earnings and revenue growth of companies to slow down. High-income earners will especially feel the impact as the tax rate policy is realized. The federal income tax on $400,000 income earners will rise from 35 percent to 39.6 percent, as will medicare taxes for those with incomes above $200,000. Companies will also feel the effect of corporate tax policies.
The global economy will likewise experience a slowdown due to debt concerns in Europe, China and the U.S. Not to worry, said McHan. This recession will not be as stark as what others predict it will be. There will be light at the end of the tunnel. She predicts 2015-2018 will be the “most bullish years” and the best years yet to come.
On the mortgage lending side, they announced effective January 10, 2014, the distinction between Ability to Repay and Qualified Mortgages (QM) will be more defined and borrowers will see a difference in rates between these two types of mortgages. Lenders need to and are beginning to enter the non-conforming market, as well.
“This is good news for us. The more lending, the better for all,” said McHan.
Members of the Silicon Valley Association of REALTORS®, Santa Clara County Association of REALTORS® and San Mateo County Association of REALTORS® met with U.S. Representative Anna Eshoo.
Members asked their representatives in Congress to:
1. Restructure Fannie Mae & Freddie Mac and Encourage the Return of Private Capital. Members requested that the chairmen of the House Financial Services Committee and the Senate Banking Committee hold hearings that focus on restructuring the secondary mortgage market, and that the emphasis of these hearings be the crafting of comprehensive bipartisan legislation that resolves the conservatorship of Fannie Mae and Freddie Mac. They stressed an efficient and adequately regulated secondary market is essential to providing affordable mortgages to consumers; that the federal government must clearly, and explicitly, offer a guarantee of some mortgage instruments; and that the government’s guarantee should ensure a wide range of safe, reliable mortgage products for creditworthy consumers.
2. Preserve homeownership tax policies. As Congress considers proposals to reform the federal tax code, SILVAR REALTORS® said lawmakers should consider the vital role that real estate tax provisions play in the nation’s housing markets and economy, as well as the financial well-being of Americans and their families. As real estate markets continue to recover, Congress must first do no harm to the following:
• Mortgage Interest Deduction: Oppose efforts to change or eliminate the mortgage interest deduction for primary and second homes.
• Property Tax Deduction: Property taxes paid are properly not considered “income” that should be subject to federal income tax. Congress should not tax “income” that doesn’t exist and oppose elimination of the deduction for property taxes.
• Capital Gains Exclusion for Sale of Principal Residence: Individuals can exclude the first $250,000 (and married couples the first $500,000) of gain from the sale of their principal residence from capital gains tax. This provision allows homeowners to build equity and save for retirement and should be maintained.
3. Preserve the Mission and Purpose of the FHA Program. SILVAR REALTORS® asked their representatives to ensure that the Federal Housing Administration (FHA) single-family
program has the tools and policies in place to meet its mission of access to safe, affordable mortgage financing to qualified borrowers nationwide. They said FHA’s single-family mortgage insurance program helps preserve private financing options for homebuyers regardless of local, regional or national economic conditions. They asked that the legislators continue support for H.R. 1145 (Waters (D-CA), Capuano (D-MA)), which provides FHA with the flexibility to make necessary changes to the program, provides taxpayer protections against lenders who make errors of material fact, and improves program oversight. They asked that Congress provide FHA with tools, but also protect FHA from any further restrictive requirements that keep more people out of the program.
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On Wednesday, over 40 SILVAR members joined hundreds of REALTORS® from across the state in Sacramento for Legislative Day, the time of year when California REALTORS® personally meet with their legislators and discuss issues affecting the industry, their clients and their business. REALTORS® make up the largest group to visit Sacramento each year and speak to their local state Assembly and Senate representatives.
Highlights of the California Association of REALTORS® morning briefing at the Sacramento Convention Center included welcome remarks by C.A.R. President Don Faught and other C.A.R. officers, and a special address by Governor Jerry Brown, who noted the importance of REALTORS® and what they do.
“You are in an important place. We have to work with you because you are so powerful,” exclaimed Brown. “We’re all working to make California a great place.”
The governor told REALTORS® that California “is on the move. Great opportunities are happening in Silicon Valley, Orange County … in manufacturing, warehousing, technology. Housing is coming back. We have got to continue.”
C.A.R. Chief Lobbyist Alex Creel briefed REALTORS® on hot issues and important points they needed to convey to their political representatives. They included:
Vote Yes to SB 30 (Calderon) and AB 42 (Perea) – Short Sale Debt Forgiveness. These bills would conform California law to federal tax law, making clear that debt forgiven in a short sale is not income. These bills were placed on “suspense files” because they are deemed to cost a certain threshold and are to be eventually considered once the state budget has passed. In the meantime, families are stuck in limbo because those currently in short sale escrows can’t finalize these transactions without the fear of potentially incurring state tax liability. Sellers need to know now that the debt forgiven is not going to be treated as income for state tax purposes. REALTORS® told their representatives that the state law needs to conform to the federal tax law passed on debt forgiveness. It’s the right thing to do and taxpayers “shouldn’t be held in suspense.”
Vote No to AB 905 (Ting) – Private Transfer “Tax.” This measure seeks to create a private transfer tax to fund environmental improvements to a property and forces a financial burden on future owners of property with no oversight, no accountability, and no limit on how long the tax can be imposed, even years after the improvement has been paid for or the useful life of the improvement has been exhausted. REALTORS® explained there is no connection between the fee and the actual cost of the improvement, no oversight on the entities receiving the funds, no “cap” on the collection or the duration of the fee. Also, the Federal Housing Finance Agency (FHFA) has already adopted regulations restricting the imposition of private transfer taxes.
Vote No to AB 1164 (Lowenthal) – Wage Liens on Property. This bill creates a super-lien for wage claim disputes. Under existing law, trades people and others who work to improve a property have the right to record a mechanics lien against the property for payment for that work. An employee who has a wage dispute can do the same with an employer. This measure seeks to expand the mechanics lien concept so an employee may record a lien against any property owned by the employer, even property that has no connection to the dispute. REALTORS® explained to legislators that legal remedies for wage disputes already exist. This measure denies property owners due process since the lien can be filed without notice or opportunity to contest the claim; the lien would increase the cost of loans and reduce the availability of lending options for borrowers; and the lien would allow an employee’s wages dispute to cloud title on all property owned by the owner.
Vote No on AB 1229 (Atkins) – Rent Control. This measure would dramatically weaken the rent control limitations contained in the landmark “Costa-Hawkins” law sponsored by C.A.R. in 1995. Under this existing law, new construction of rental units is not subject to local rent control ordinances. This measure seeks to use inclusionary zoning to allow local governments to create zones in which certain mandates are placed on builders. In this case, the mandate would be to set aside a certain percentage of units at below-market rent levels. REALTORS® told legislators this measure would discourage the creation of new rental housing at a time when it is most needed. The legislature has repeatedly made it clear its opposition to expanding rent control to new construction.
April 2013 marks the 45th anniversary of the 1968 landmark Fair Housing Act, which strives to to ensure equal housing opportunity for all. Each year REALTORS® join the U.S. Department of Housing and Urban Development (HUD), the California Department of Fair Employment and Housing, and rest of the nation in recognizing April as Fair Housing Month.
REALTORS® play a vital role in ensuring fair housing for all and strive to make homeownership accessible to everyone. The National Association of REALTORS® (NAR) works to help create an environment where everyone can choose where they want to live and not be discriminated against as they seek to achieve the American dream of homeownership.
Carolyn Miller, president of the Silicon Valley Association of REALTORS®, whose members are also members of NAR, says REALTORS® abide by a Code of Ethics that states REALTORS® shall not deny equal professional services and shall not be a party to any plan or agreement to discriminate against any person for reasons of race, color, religion, sex, handicap, familial status, national origin, or sexual orientation.
“REALTORS® want all buyers and sellers to enjoy the benefits of a housing market free from discrimination,” says Miller.
On April 26, SILVAR is promoting Fair Housing Month by offering At Home With Diversity®, a course that teaches REALTORS® and other business professionals how to work effectively within a multicultural market. The full-day course addresses topics like diversity, fair housing and business planning development. For more information about At Home With Diversity®, call SILVAR at (408) 200-0100.
“Knowing how to work effectively with diverse populations can help you build business success in today’s multicultural real estate market,” adds Miller.
Under the law, a home seller or landlord cannot discriminate in the sale, rental and financing of property on the basis of race, color, religion, sex, handicap, familial status, or national origin. They cannot instruct their real estate agent to convey any limitations in a sale or rental.
Buyers or renters have the right to expect housing will be available to them without discrimination, including:
• housing in their price range made available without discrimination.
• equal professional service.
• the opportunity to consider a broad range of housing choices.
• no discriminatory limitations on communities or locations of housing.
• no discrimination in the financing, appraising, or insuring of housing.
• reasonable accommodations in rules, practices and procedures for persons with disabilities.
• non-discriminatory terms and conditions for the sale, rental, financing, or insuring of a dwelling.
• freedom from harassment or intimidation for exercising their fair housing rights.
Buyers or renters who believe they have experienced discrimination may file a complaint with the California Department of Fair Employment and Housing within one year of the alleged discrimination.
HUD recently launched a new mobile application for iPhone and iPad that provides the public information about their housing rights and responsibilities. The app also provides information about the fair housing complaint process, and allows the public to access HUD’s toll-free discrimination hotline and link to HUD’s fair housing website: http://www.hud.gov/fairhousing
At round table discussions, REALTORS® shared their thoughts about the future. (Photo courtesy of MLSListings Inc.)
With the changing demographic and socio-economic landscape and changing economic concerns, the real estate industry sees itself facing a transformation. NAR launched the REThink Initiative in August 2012 during its annual Leadership Summit in Chicago, Ill. The REThink Initiative will use the experiences and insights of REALTORS®, academia, consumers and others to plan for and adapt to dynamic changes in the industry.
At Friday’s workshop, REALTORS® discussed different versions of what the future holds for the industry. Workshop participants were asked to consider a focal question: In an ever-changing world, what is the future of the real estate industry in 5-10 years, and how will this affect consumers, real estate professionals, industry organizations and associations?
At the round table discussions, participants examined several scenarios for the industry and elements that are likely to impact the future of U.S. real estate, including the long-term effects of the recent recession, the global economy, technology, demographic forces like the retiring Baby Boomers, emerging Echo Boomers, increasing ethnic diversity, and population growth. Environmental concerns, like growing scarcity of energy and raw materials, and how they could affect housing patterns and design, access to owning a home, and the value of homeownership, were also explored.
Cross-country workshops are being conducted through May 2013. Insights from members will provide critical input into NAR’s future strategy and help formulate a shared vision about the future REALTORS® want to create for themselves, their association, for the industry, and for society as whole.
For more information about NAR’s ReThink Initiative, visit http://rethinkfuture.com.
A Notice of Credit-Based Denial to Rent (RNDR) is a new form that has been added to the PRDS library and may be accessed online by SILVAR and SAMCAR (San Mateo County Association of REALTORS®) REALTOR® members at http://www.prdsforms.com. The RNDR is a form needed in the event a potential tenant is turned down due to an unfavorable credit rating.
In addition to Form RNDR 5-09 Notice of Credit-Based Denial to Rent, the revised PRDS Supplemental Seller’s Checklist (SSC) is now also available online for SILVAR and SAMCAR REALTOR® members.
PRDS Forms is an extensive line of paper and online forms for residential purchase and sales transactions. These forms are available online free of charge as a member benefit to all SILVAR and SAMCAR REALTOR® members. Created by REALTORS® for REALTORS®, these forms are highly acclaimed, and have been heavily used for over 25 years by listing agents from leading offices in Silicon Valley and the San Francisco Peninsula.
To access these and other PRDS forms, visit http://www.prdsforms.com.
California Governor Jerry Brown will speak to REALTORS® at the California Association of REALTORS® Morning Briefing on Legislative Day. SILVAR members are encouraged to participate in this important event, which will be held on Wednesday, May 1. The deadline to sign up is Monday, April 22.
Legislative Day is the day REALTORS® from all over California travel to Sacramento and meet with their elected officials to discuss critical legislation that can affect REALTORS®, homeowners and private property rights. REALTORS® make up the largest group that travel to the nation’s capital to speak with their legislators.
When members arrive in Sacramento, they will receive a special briefing at the Sacramento Convention Center from California Association of REALTORS® lobbyists, REALTOR® leadership, Governor Brown, and other special guests. A joint luncheon with members of SILVAR, the Santa Clara County Association of REALTORS® (SCCAOR) and San Mateo County Association of REALTORS® (SAMCAR) will follow the briefing.
After lunch, SILVAR REALTORS® will attend meetings with all of the legislators in Silicon Valley, including Senators Jim Beall and Jerry Hill, and Assembly Members Paul Fong and Rich Gordon. At these meetings, REALTORS® will have the opportunity to discuss important real estate issues, such as private property rights, legal reforms and housing opportunity policies.
Personally meeting our legislators and discussing real estate-related issues that may adversely affect our clients – buyers, sellers, homeowners and private property rights – makes a difference! For more information about Legislative Day, contact SILVAR Government Affairs Director Jessica Epstein at (408) 200-0100.
In an effort to provide California home buyers with up-to-date information about available home buyer assistance programs, the California Association of REALTORS® (C.A.R.) has launched California Mortgage Resource Directory (http://mortgage.car.org), an online search tool that identifies current mortgage programs in communities throughout the state.
“Millions of dollars go unused every year because home buyers are unaware of the various buyer assistance programs available to them,” said C.A.R. President Don Faught. “With California Mortgage Resource Directory, REALTORS® and buyers can quickly connect with any number of home buyer resources without having to search within each municipality individually.”
California Mortgage Resource Directory helps bridge the down payment gap for homebuyers and connects them with resources that they may not have otherwise known existed. Buyers can search by city or address for public- and private-funded assistance programs including FHA/VA, HUD, affordable fixed-rate mortgages, rehab loans, and more.
“The California Mortgage Resource Directory is a good resource if you are thinking of buying a home and are assessing your finances. Many buyers are unaware of down payment and other home buyer assistance programs that are out there. This would be a valuable tool for both REALTORS® and their clients,” said Carolyn Miller, president of the Silicon Valley Association of REALTORS®.
“Low mortgage interest rates help make homes affordable for buyers, but many can’t come up with the down payment needed to qualify for a loan. The more money a buyer can put on a down payment, the lower the amount of the loan, so the California Mortgage Resource Directory can prove valuable to home buyers looking for down payment assistance,” added Miller.
The new directory is powered by Down Payment Resource, the nation’s only web-based aggregator of home buyer programs. The tool was developed by Workforce Resource (www.workforce-resource.com) and is made available through Multiple Listing Services, REALTORS® associations, and nonprofits.
At its February 26 meeting, the San Mateo County Board of Supervisors voted to postpone a discussion on eliminating Propositions 90 and 110 in San Mateo County.
For over 20 years Propositions 90 and 110 have created a pathway for senior citizens (those over 55) and the disabled to move into San Mateo County. The current law states that a senior citizen or disabled individual can transfer their base tax rate from another county when they buy a home in San Mateo County, as long as the new home is of an equal or lesser value.
Without notice to SILVAR or neighboring San Mateo County Association of REALTORS® (SAMCAR), the San Mateo County Manager placed the proposal to eliminate propositions 90 and 110 on the supervisors’ agenda for the February 26 meeting. Though only made public on Thursday, February 21, SILVAR was able to mobilize REALTORS® to quickly respond by emailing the San Mateo County supervisors and letting them know their opposition to the proposal to repeal the propositions. SILVAR’s Government Affairs team also reached out to each member of the Board of Supervisors to express its concern.
SILVAR would like to thank all who responded to the Call for Action email. Over 70 REALTORS® who live in San Mateo County sent emails to the supervisors. Additionally, several REALTORS® from SILVAR and SAMCAR attended the Tuesday Board of Supervisors meeting.
Although the supervisors listened and took the item off the agenda at their Tuesday meeting, members need to remain vigilant because the issue has not gone away. It is highly likely that the item will be placed back on their agenda in the near future.
SILVAR is seeking individuals who can testify about the important role Propositions 90 or 110 played for a client in buying a home in San Mateo County. If you have a story, please contact SILVAR Government Affairs Director Jessica Epstein at (408) 200-0108 or email jepstein@silvar.org.
Silicon Valley Association of REALTORS® says ... 