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“Doing Business in the Philippines,” hosted by the global business council of the Silicon Valley Association of REALTORS® in November, attracted more than 40 association members and guests. The Philippines is Asia’s second fastest growing economy today and the business of real estate there is booming, according to Philippine-based real estate agents.
The program, moderated by National Association of REALTORS® President’s Liaison to the Philippines Jennifer Tasto, had as panelists International REALTOR® Members from the Philippines from the Chamber of Real Estate and Builders’ Associations Inc. (CREBA). CREBA is the Silicon Valley Association of REALTORS®’ cooperating real estate association. It is the largest real estate umbrella organization in that country. The delegation included Bernard Umali, Evangeline Yia, Arlene Posadas and Connie Castellano. Their presentations focused on buying and selling property, estate settlement, project selling, ownership of land and registering property in the Philippines.
The Filipino REALTORS® said Philippine real estate is one of the best businesses today. They said the country has an estimated population of 101 million people. Top buyers of Philippine property are early nesters due to the country’s young population, business process outsourcing workers, overseas Filipino workers and investors.
Why buy real estate in the Philippines? They said the Philippine economy rebounded with a growth of 5.6 percent in the second quarter of 2015, defying a regional slowdown which has affected countries like China and Japan.
“Filipinos are among the most globally connected in the world,” said Tasto.
Tasto said over 10 percent of Filipinos (an estimated 10 million people) live outside the Philippines and work in over 150 countries. Overseas Filipino worker remittances are at a record high, posting $26.93 billion in 2014. Of this money, 60 percent is devoted to real estate investment.
The cost of real estate in the Philippines is much more affordable than in other Asian countries, along with the rate of return on investments, added Tasto. The panelists also indicated growth in business process outsourcing and tourism has spurred real estate sales.
The Filipino REALTORS® noted bank real estate loans hit $24.47 billion in 2014, fueled by sustained demand for new homes and office space. The migration rate in Manila also has made the country’s capital a favored location for residential condominiums.
Small real estate businesses, agents and their clients are increasingly becoming targets of sophisticated cyber scammers, according to panelists at a risk management forum at the 2015 National Association of REALTORS® (NAR) Conference & Expo held last month in San Diego. The panelists discussed potential threats and offered tips for agents to protect themselves, their business, and their clients from cyberattacks.
NAR technology policy expert Melanie Wyne said the news often focuses on large companies falling victim to hackers, but small businesses, which often lack the vast technology and legal teams of larger businesses, actually experience majority of attacks.
“Small businesses need to pay just as much attention as large companies to possible cyber threats,” said Wyne.
Darity Wesley, founder of the Lotus Law Center, said hackers are seeking personal identifiable information, such as credit card or bank account information, login credentials, employment details or a physical address, email address, and phone or social security number.
“Identity thieves can do a lot of damage with this information; your credit and whole life could be ruined,” warned Wesley.
Wyne said businesses can suffer financial harm from expenses resulting from a data breach, legal risks from lawsuits from clients or others impacted by the hack, and reputational risks from having to publicly disclose the hack. While cloud and free public Wi-Fi services are convenient for business, they are never completely secure.
Wyne recommended researching the level of security these companies are employing before using their services and storing information or documents into them. She also recommended agents ask these services to be indemnified in case the service is hacked. Anyone using a free email service for business should encrypt emails with client data.
Jessica Edgerton, NAR associate counsel, said in recent months, real estate professionals have reported an upswing in spear phishing, a particular wire scam where a hacker breaks into an agent’s email account and obtains information about an upcoming real estate transaction. After monitoring the account, the hacker will send a mock email to the buyer as they near closing, posing as the agent or someone from the title company and requesting that the buyer wire transaction-related funds.
Edgerton related one situation in which a first-time buyer lost $13,000 when they wired funds to what they thought was the title company. Another attempt to scam a buyer in the Philippines out of $800,000 was intercepted on its way to Russia.
Edgerton recommended agents inform their clients at the beginning of any transaction about this scam. If buyers receive an email about wiring funds, they should immediately call their agent on the phone and confirm.
“It’s a fail-safe measure to call first before you send the money,” said Edgerton.
Wesley added, “It is good basic practice and most important to always communicate with your buyer.”
Although NAR has been advocating a uniform federal law for years, the majority of laws currently governing data security are at the state level, so it is important for agents to know the state laws regarding data security and privacy that affect their organization. California adopted the first data security breach notification law in 2003. Nearly 40 other states have since adopted similar laws modeled after the California law.
The panelists recommended strong passwords, developing a data security program, and implementing safeguards to protect private data. A privacy policy disclosing some or all of the ways the business collects, shares, protects, and destroys personal client information is also good business practice.
The panelists emphasized in today’s Internet world, “you are never completely secure.” With cybercriminals becoming more sophisticated, businesses constantly need to keep abreast of new data security enhancements.
SILVAR Executive Officer Paul Cardus, NAR Director Leannah Hunt, SILVAR President Chris Isaacson and President-elect Karen Trolan (seated) proudly show the NAR Platinum Award for Global Achievement they received on behalf of SILVAR’s Global Business Council at the NAR REALTOR® Conference & EXPO in San Diego this month.
SILVAR leadership with CREBA members and NAR manager of Global Business Development and Outreach Joe Schneider and NAR President’s Liaison to the Philippines Jennifer Tasto (both far left) celebrate their awards.
For the third year in a row, the Silicon Valley Association of REALTORS® (SILVAR) has earned the National Association of REALTORS® (NAR) Platinum Award for Global Achievement. The platinum award is the highest distinction presented by NAR to an association for having demonstrated through its global business council exceptional commitment to building members’ awareness of the global and multicultural business opportunities in their local markets.
SILVAR, a professional trade organization representing over 4,500 REALTORS® and affiliate members engaged in the real estate business on the Peninsula and in the South Bay, is the only association in Northern California to achieve platinum council status since the program’s inception in 2011. NAR stated SILVAR’s global council “demonstrated the utmost commitment to helping members capture their share of the global real estate market in the United States.” SILVAR leadership received the prestigious award at a special international dinner during the Nov. 13-16 NAR REALTORS® Conference and Expo in San Diego.
“We are honored to receive the National Association of REALTORS® prestigious platinum award for three years in a row. SILVAR is committed to continuing to provide our members with the proper tools that will help them expand and excel in their business here and abroad,” said SILVAR Executive Officer Paul Cardus.
Under the leadership of 2015 Global Business Council chair Mark Wong, a REALTOR® with Alain Pinel Realtors Saratoga, SILVAR’s global business council conducted a number of activities and education programs to raise members’ awareness of global business in their local market, including programs on China, Mexico, India and the Philippines, as part of its “Doing Business With” quarterly series. Also this year, SILVAR conducted its fourth Certified International Property Specialist (CIPS) Institute, attended by 31 REALTORS® from around the Bay Area, Southern California and Arizona. The CIPS Institute is a full-week program that includes courses analyzing the international business climate, including capital flow, currencies, government regulations and cultures and conducting real estate transactions with clients from Europe, Asia and the Americas.
SILVAR partners with other real estate associations throughout the year to promote awareness and education in global real estate, and continues its role as NAR Ambassador Association to the Philippines. The Chamber of Real Estate and Builders’ Associations Inc. (CREBA), SILVAR’s cooperating real estate association in the Philippines and the largest real estate umbrella organization that country, also was honored at the event. SILVAR member Jennifer Tasto is the NAR President’s Liaison to the Philippines.
SILVAR’s commitment to international real estate goes beyond members assisting foreign nationals buying property in Silicon Valley. As a membership benefit, SILVAR REALTOR® members have free access to Proxio, the global networking platform that connects them with real estate agents domestically and abroad and enables them to share their listings, including property developments here and abroad.
Among the 110 REALTOR® global councils operating nationwide, only 17 were named platinum councils. SILVAR is one of three REALTOR® associations that has been awarded the top award for three consecutive years.
Proxio CEO Janet Case says knowing the languages spoken by clients helps REALTORS® better serve them.
What language do you speak in your home? New information from the U.S. Census Bureau shows while most of the nation’s population speaks English at home, at least 350 other languages are spoken in U.S. households. In fact, 20 percent of U.S. families do not speak English at home.
“Multilingual is the new normal across the U.S.,” said Janet Case, CEO Proxio, an international networking platform that connects real estate agents and their listings, including real estate developments, around the world.
Speaking at the Silicon Valley Association of REALTORS® (SILVAR) 4th Certified International Property Specialist Institute in October, Case said according to the latest Census Bureau data, 20 percent of U.S. families speak a language other than English at home. In California, the percentage is higher – 43 percent. Other states with the most non-English speaking households are Texas, 34.2 percent; New York, 29.8 percent; Nevada, 28.2 percent; Arizona, 27.1 percent; and Florida, 26.6 percent.
Cities with the most non-speaking households are Miami, 71.9 percent; Los Angeles, 59.7 percent; New York City, 48.7 percent; San Francisco, 45.4 percent; and Chicago, 35.3 percent.
The Census Bureau information, based on American Community Survey data collected from 2009 to 2013, tabulated the number of languages and language groups to 350. The tables provide the most comprehensive data on languages spoken less widely in the nation, such as Pennsylvania Dutch, Ukrainian, Turkish, Romanian, Amharic and many others.
“While most of the U.S. population speaks only English at home or a handful of other languages like Spanish or Vietnamese, the American Community Survey reveals the wide-ranging language diversity of the United States,” said Erik Vickstrom, a Census Bureau statistician. “For example, in the New York metro area alone, more than a third of the population speaks a language other than English at home, and close to 200 different languages are spoken. Knowing the number of languages and how many speak these languages in a particular area provides valuable information to policymakers, planners and researchers.”
In the San Francisco metro area, at least 163 languages are spoken at home, with 40 percent of the metro area population age five and over speaking a language other than English at home. One of the smaller language groups found there is Panjabi, with 19,985 speakers.
In the Los Angeles metro area, at least 185 languages are spoken at home, with 54 percent of the metro area population age five and over speaking a language other than English at home. One of the smaller language groups found there is Indonesian, with 12,750 speakers.
Case said as foreign buyers continue to look at Silicon Valley property, “global marketing matters.” Knowing the languages spoken by clients helps REALTORS® better serve them.
Proxio, which is a free benefit for members of SILVAR, translates agents’ listings in 19 languages, 55 currencies and metric measurements. In addition to activating Proxio, Case said REALTORS® seeking to break into global real estate can market “international” as their specialty by including the U.S. country code with their phone number and languages they speak in their website and business cards and partner with agents who speak other languages.
Los Gatos/Saratoga District Pumpkin Auction on Wednesday, Oct. 14.
Members of the Silicon Valley Association of REALTORS® (SILVAR) continue to help those in need in their communities, especially around this time, as the holidays draw near. The SILVAR Los Gatos/Saratoga District Pumpkin Auction on Oct. 14 raised over $3,600 for Operation Reindeer, thanks to all donations of time, effort and money from SILVAR members and their companies.
Thank you Chris Morris (Alain Pinel REALTORS® – Los Gatos) for serving as auctioneer, Mary Kay Groth (Sereno Group – Los Gatos) and Diane Chandler (Alain Pinel REALTORS® – Los Gatos) for organizing the fun event, and Leslie Butlar for helping keep track of the winners. Kudos to Diane, who made many of the pumpkin centerpieces!
Many thanks for the contributions from the following companies: Keller Williams, Alain Pinel Realtors, Opes Advisors, Coldwell Banker, Intero Real Estate, Sereno Group, Montalvo Realty, and the individuals that donated the items and members who generously bid on them!
REALTORS® and affiliates of the Los Gatos/Saratoga District have supported Operation Reindeer for years. The program distributes gifts, including clothing essentials, to needy families and seniors in the community during the holiday season. The program is funded through proceeds from the District’s annual Pumpkin Auction and individual donations from the REALTORS® and affiliates. In addition to monetary contributions, many members volunteer their time to shop, wrap and distribute presents and food certificates to families.
Today, Oct. 16, members of SILVAR’s Los Altos/Mountain View District had their auction were able to raise over $3,000, which will go to the Silicon Valley REALTORS® Charitable Foundation, which distributes donations and grants to nonprofits that serve low-income families in the communities in SILVAR’s service area.
Members of the Silicon Valley Association of REALTORS® (SILVAR) continue to help those in need in their communities, especially around this time, as the holidays draw near. The SILVAR Los Gatos/Saratoga District Pumpkin Auction on Oct. 14 raised over $3,600 for Operation Reindeer, thanks to all donations of time, effort and money from SILVAR members and their companies.
Thank you Chris Morris (Alain Pinel REALTORS® – Los Gatos) for serving as auctioneer, Mary Kay Groth (Sereno Group – Los Gatos) and Diane Chandler (Alain Pinel REALTORS® – Los Gatos) for organizing the fun event, and Leslie Butlar for helping keep track of the winners. Kudos to Diane, who made many of the pumpkin centerpieces!
Many thanks for the contributions from the following companies: Keller Williams, Alain Pinel Realtors, Opes Advisors, Coldwell Banker, Intero Real Estate, Sereno Group, Montalvo Realty, and the individuals that donated the items and members who generously bid on them!
REALTORS® and affiliates of the Los Gatos/Saratoga District have supported Operation Reindeer for years. The program distributes gifts, including clothing essentials, to needy families and seniors in the community during the holiday season. The program is funded through proceeds from the District’s annual Pumpkin Auction and individual donations from the REALTORS® and affiliates. In addition to monetary contributions, many members volunteer their time to shop, wrap and distribute presents and food certificates to families.
Today, Oct. 16, members of SILVAR’s Los Altos/Mountain View District had their auction were able to raise over $3,000, which will go to the Silicon Valley REALTORS® Charitable Foundation, which distributes donations and grants to nonprofits that serve low-income families in the communities located within SILVAR’s service area. More on this event next week!
The Los Altos/Mountain View District Pumpkin Auction this morning, with Owen Halliday (Sereno Group) as auctioneer.
Congratulations SILVAR 2015 CIPS graduates!
The Silicon Valley Association of REALTORS® (SILVAR) 4th CIPS (Certified International Property Specialist) Institute ended on Tuesday. This year’s Institute had a total enrollment of 31 students. SILVAR welcomed back instructor David Wyant and his wife and assistant Patsy Wyant.
This year’s students were a very diverse and well-traveled group from all over the Bay Area, Southern California and Arizona. Once the students complete and submit their CIPS applications to the National Association of REALTORS®, they can receive their CIPS designation and get pinned at the NAR Conference and EXPO, which will be held in San Diego November 13-16.
A highlight of the last day was a visit by Joe Schneider, NAR manager of Global Business Development and Outreach. Schneider spoke to the students about the value of the CIPS designation, especially in Silicon Valley, which continues to attract many international buyers.
At the end of the last course, SILVAR’s Global Business Council hosted a CIPS Reception, which was also attended by SILVAR CIPS designees, who shared their global real estate experiences with the students. Jennifer Tasto, NAR Liaison to the Philippines, also reported on the International REALTOR® Conference held in the Philippines and NAR’s project to build a REALTOR® village for Super Typhoon Hainan victims there.
The success of this year’s CIPS Institute would not be possible without our generous CIPS Sponsors of the Day. Each sponsor had very informative presentations.
Darrell Monda, owner of TourFactory Bay Area, took students on a virtual tour of homes, a platform that works as a very good marketing tool, especially for foreign buyers who cannot physically be at a property they are interested in purchasing. TourFactory has certified aerial photographers and is the only company in Northern California that has a waiver from the FAA to use drone photography in its business.
The students enjoyed Kyle Chuang’s presentation, which included tips on how to take a multiple choice exam, a requirement at the end of each class day. Chuang, who is with Farmers Insurance, also tested students on home insurance information helpful for their clients.
Janet Case, CEO of Proxio, introduced the REALTORS® to the international networking platform that links REALTORS® and their listings with other agents around the world, including real estate developments. Proxio translates listings in 19 languages, 55 currencies and metric measurements. Case said studies show 20 percent of U.S. families do not speak English at home. In California, the percentage is higher – 43 percent. Proxio is a free benefit for SILVAR REALTORS® who are members of MLSListings Inc.
Kenneth Chan, premier mortgage consultant with HSBC, focused on how foreign buyers who don’t fall under the 2-2-2 rule (provide a two-year U.S. residency, two-year work history and two-year credit history) can qualify for a mortgage loan, other obstacles foreign buyers face, and success stories.
Anita Rodal, international liaison with AFEX (Associated Foreign Exchange) and president of SBPI Services, Inc., educated the students on foreign currency exchange and SBPI Services’ captive insurance program, which enables Chinese investors to take millions of dollars out of China and invest the money from the policy in real estate.
With the new TILA-RESPA Integrated Disclosure rule going into effect on October 3, Fidelity National Title senior sales executive Connie Montalbano-Hill and senior account executive Desiree Baker want to make sure REALTORS® are prepared, so no delays will occur with their transactions. At Thursday’s Silicon Valley Association of REALTORS® Cupertino/Sunnyvale District tour meeting, they explained the fine points of the new law, what’s different, and what REALTORS® can do to make sure a transaction won’t fall through.
The new forms are a consolidation of several forms. The Good Faith Estimate (GFE) and the initial Truth-in-Lending disclosures will be combined into a new form called the Loan Estimate. The HUD-1 and the final Truth-in-Lending disclosures will be combined into another new form called the Closing Disclosure.
Timing is critical. According to the Consumer Financial Protection Bureau, the Closing Disclosure must be delivered and received three days in advance of “consummation” of the loan. If the Closing Disclosure is not actually received in person, the new rules require an additional three-day period if it is delivered by mail or electronically. Given that Sunday is not counted, the Closing Disclosure will have to be delivered seven days before consummation. “Consummation” will typically be the day loan documents are signed, which is usually at least one day in advance of closing but could be more.
Baker said three changes would require a new 3-day review: if the APR increases by more than 1/8 of a percent for fixed rate loans, or 1/4 of a percent for adjustable loans; if a prepayment penalty is added, making it expensive to refinance or sell; and if the basic loan product changes, such as a switch from fixed rate to adjustable interest rate or to a loan with interest only payments.
The title company representatives gave SILVAR members a list of title insurance facts they need to know, including new terms and information included in a loan estimate. They said the new rule ensures that the lender take more of a leadership role in the transaction, but every lender is different. That’s why it is very important that REALTOR® have good communication with their lender, their title officer, and their client.
“Know you client well, so you avoid surprises,” said Montalbano-Hill. “Take care of the details ahead of time. The more you know your client, the better.”
Montalbano-Hill noted that a change in the name of a newly married spouse, for instance, can cause problems if not disclosed to all parties.
Baker added, “Don’t make assumptions. Everyone is going to have to be on the same page at the same time.”
SEE CFPB’S “KNOW BEFORE YOU OWE” REAL ESTATE PROFESSIONAL’S GUIDE
Left to right are Lehua Greenman (Membership Committee Chair), SILVAR President Chris Isaacson, Joe Brown, San Mateo County Supervisor Warren Slocum, Larry Tringali, Steve Trolan, Supervisor Joe Simitian (who served as auctioneer), Tom Gordon, Bill Weseloh, Mike Frangadakis, Kelly Hutter, Derrick Felton, Bill Moody and Frank Limon.
SILVAR members honored the country’s veterans this week, including their own, at the Palo Alto Hills Golf & Country Club. More than 150 members and guests enjoyed delicious hors d’oeuvres, beverages and live music, while bidding on fabulous items at the live and silent auctions on Wednesday night. Thanks to the generous donations from sponsors and members who bid generously, the event grossed over $45,000 for the SILVAR Veterans Scholarship Fund.
The SILVAR Veterans Scholarship Fund is a new component of the Silicon Valley REALTORS® Charitable Foundation’s focus on education. The scholarship fund will support eligible U.S. veterans and eligible dependents of deceased veterans residing in SILVAR’s traditional service area who wish to further their education.
Leading everyone in the Pledge of Allegiance was Bill Weseloh, a longtime SILVAR member and U.S. veteran. Tina Kyriakis, also a SILVAR member, sang “The Star-Spangled Banner.” Serving as masters of ceremonies were Santa Clara County District 5 Supervisor Joe Simitian, who also was the evening’s auctioneer, and Lehua Greenman, Silicon Valley REALTORS® Charitable Foundation trustee and chair of SILVAR’s Membership Committee.
SILVAR President Chris Isaacson and Greenman welcomed guests to the special event. They recognized special guests present, including San Mateo County District 4 Supervisor Warren Slocum, who is also a U.S. veteran, having served in the U.S. Army in Vietnam 1966-67. They noted the country’s veterans have made many sacrifices “so we can live free and with liberty.”
A highlight of the event were the presentations of the Certificate of Special Congressional Recognition “for outstanding and invaluable service to the community” from U.S. Representative Anna Eshoo and a Certificate of Commendation from the County of Santa Clara presented by County Supervisor Joe Simitian to the Silicon Valley Association of REALTORS® and all REALTOR® Veterans.
The presentations were followed by a recognition of all U.S. veterans present at the event, including those who had registered, but were unable to be present that evening. Recognized at the podium were Supervisor Slocum, Bill Weseloh (U.S. Army), Frank Limon (U.S. Army 1965-68, Vietnam 1965-67), Mike Frangadakis (Vietnam 1967-70, currently with the California State Military Reserve); Derrick Felton, (U.S. Army 1988-1992, Persian Gulf), Tom Gordon (U.S. Air Force 1984-1988, Edwards Air Force Base, CA.); Steve Trolan (U.S. Army 1981-85, Fort Shafter, HI 1987-1994, U.S. Army Reserve, 12th Special Forces); Larry Tringali (U.S. Navy Corpsman 1967-69), Kelly Hutter (U.S. Air Force 1985-1993), Bill Moody (U.S. Army, Vietnam 1966-68); John Tripp (Pacific Theater, 1947-1956); and Joe Brown (U.S. Air Force 1969-73, Vietnam 1970-71).
Members of the Silicon Valley Association of REALTORS® packed the training room yesterday to learn more about working with Indian clients. Indians are a close second to Chinese as top foreign buyers of Silicon Valley property. Their cultural nuances, traditions and spiritual beliefs, were discussed by panelists at “Doing Business with Indian Clients,” a program hosted by SILVAR’s Global Business Council.
Sharing the information with members were REALTORS® Sue Bose with Referral Realty – Cupertino, Nomita Shahani with Alain Pinel REALTORS® – Saratoga, Umang Sanchorawala with Alain Pinel REALTORS® – Palo Alto, and supervising loan officer with PNC Mortgage Jimmy Kang. Mark Wong, chair of SILVAR’s Global Business Council, served as moderator.
The REALTORS® presented important information about vastu, the ancient Indian science of architecture. Vastu, which is the counterpart of the Chinese feng shui, can influence Indian buyers in their purchase of a home. According to Bose, the principles of vastu take into account the sun’s rays, earth movement and geomagnetic forces, with fire, water, earth and sky as important elements. Design and construction of buildings are based on vastu so that harmony is created where people who live and work.
Many homes in India are built in the shape of a rectangle or square with a courtyard in the middle, open to the sky, said Bose. Kitchens face southeast with the belief that the gods rule in the east. Winds come from the northeast, so doors and windows should be structured accordingly. Shahani added a pie-shaped lot with the front yard at the tip and the backyard at the larger portion of the lot would be attractive to an Indian buyer because the lot is likened to the shape of a cow, with the tip as its head. The cow is sacred to Indians.
Most Indian buyers “have it all mapped out,” said Bose. They have already done their homework about the home, the neighborhood and the school they want their children to attend. They can also be very aggressive in negotiation, and when their offer is accepted, they think they have overpaid and want to counter or want something more in return.
“It’s just their nature to negotiate,” explained Sanchorawala. “They feel better if they get something more in return.” He said paying for the cleaning or extra work that needs to be done can often appease the buyer.
Be patient with Indian buyers because it is hard to connect with them for the first time. They are not good at returning phone calls. The agent will need to follow up with them multiple times. Sanchorawala said many Indians feel they are important to their job, so they will not interrupt their work day by returning an agent’s phone call.
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Silicon Valley Association of REALTORS® says ... 