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Members of the Silicon Valley Association of REALTORS®, the trade organization representing over 4,000 REALTORS® and affiliate members engaged in the real estate business on the Peninsula and in the South Bay, joined 2,100 California REALTORS® in Sacramento on Wednesday for Legislative Day, where they discuss critical issues that impact home ownership and private property rights with Silicon Valley’s legislators.
At the morning briefing, California Association of REALTORS® (C.A.R.) President Kevin Brown and the C.A.R. leadership welcomed California REALTORS® and thanked them to making the trip to Sacramento. He said, Legislative Day is an opportunity for REALTORS® “to demonstrate the size and power of organized real estate and represent our clients who are not here.”
California Governor Jerry Brown, a special guest at the morning briefing, also thanked REALTORS® for coming to Sacramento. He said it’s been a good year, the budget is balanced and stabilized, but the state still faces issues. Brown said diversity, which is one of California’s great assets, is also its biggest challenge and complicates issues.
“We are working out issues that the whole world has to deal with, but with enough openness, with enough skill, and enough harmony our state is going in the right direction … Wherever we look, California is leading the way,” said Gov. Brown.
“You’re in the right business,” Gov. Brown told REALTORS®. “You sell the California dream and it’s very much alive. Let’s keep it that way. So far, so good. Keep coming back every year.”
The National Association of REALTORS® (NAR) is asking members of the Silicon Valley Association of REALTORS® and other members of the national trade association to tweet their Senators to support patent reform. This is NAR’s first ever Twitter Call for Action.
“Patent trolls” are companies that own a large quantity of patents. Often, they do not produce any goods. The business model is to just own patents and sue or threaten to sue anyone who potentially violates the patent. As small business owners, REALTORS® are exposed to these threats of litigation, often for using basic business technology, like drop-down website menus, mapping features, and online checkout carts.
Many small business owners who receive one of these threatening letters will settle the case because that is less expensive than going to court. A number of multiple listing services have been required to pay millions of dollars in licensing fees due to a patent troll suit. Patent trolls sue more non-tech companies than tech companies, and have cost the U.S. economy $80 billion in litigation costs in 2012.
If you are a REALTOR® go to Twitter Call for Action for complete details on connecting to your Senators on Twitter.
For more information about Patent Litigation Reform and why NAR supports this bill, please visit NAR’s Patent Reform Litigation Reform page.
Former Santa Clara County principal planner Don Weden told members of SILVAR’s Cupertino/Sunnyvale District this week that California is experiencing a number of structural changes and will be facing bigger challenges than in the past due to population growth, household changes, and an aging population.
The California Department of Finance projects Santa Clara County’s current population of 1.8 million will grow by 140,000 people in 15 years. As population grows, so will households, but their makeup will change.
“The future looks gray,” said Weden.
Currently in Santa Clara County, one in 10 persons is age 65 and older. By 2030, one in five persons or one-fourth of the adult population will be over 65.
Weden said development plans anchored on the drivable suburban model are no longer suitable. One in five Americans over 65 do not drive – because of rising gas prices, because they can’t, and some prefer not to.
“Neighborhoods we thought were fun to grow up in may be problematic to grow old in,” said Weden.
Weden indicated the rate of home ownership among the 25-34 year old group has dropped from 40 percent in 2007 to 31 percent in 2010. Millennials, the generation born between 1980 and 2000, now number 80 million, more than the baby boomers, and projected to soon comprise majority of the U.S. workforce. This generation has never known the world without the Internet. Weden said Millennials are the most educated generation in history, but also saddled with much student debt. They are mostly renters not only due to economic necessity, but because they want to be mobile, free to move from job to job without having to worry about selling their home every time they move.
“They are also less confident in the economics of the American dream,” said Weden.
Also important is this generation does not like driving. Eighty-eight percent want to live in an urban setting that is walkable. This is why it is critical for cities to focus on planning walkable urban neighborhoods instead of drivable suburban communities, said Weden. Baby boomers would also prefer it, especially once they can no longer drive.
Weden said the evolution from the predominantly drivable suburban neighborhoods to walkable urban neighborhoods is gradually taking place in Bay Area cities. He said REALTORS® need to get involved in planning these neighborhoods. The neighborhoods need not be exotic, but should be complete, offering residents of all ages an active lifestyle, with services and shops, including grocery stores and other amenities.
April 2014 marks the 46th anniversary of the passage of the 1968 landmark U.S. Fair Housing Act. Title VII of the Civil Right Act of 1968 strives to ensure equal housing opportunity for all and prohibits housing discrimination based on race, color, national origin, religion, sex, disability, and family status.
“Fair Housing Month is an opportunity to recommit to the principle that fair housing is an essential part of everything we do. REALTORS® play a vital role in ensuring fair housing for all and strive to make home ownership accessible to everyone,” says David Tonna, president of the Silicon Valley Association of REALTORS®.
Article 10 of the National Association of REALTORS® Code of Ethics provides that, “REALTORS® shall not deny equal professional services to any person for reasons of race, color, religion, sex, handicap, familial status, national origin, sexual orientation, or gender identity. REALTORS® shall not be parties to any plan or agreement to discriminate against a person or persons on the basis of race, color, religion, sex, handicap, familial status, national origin, sexual orientation, or gender identity. REALTORS®, in their real estate employment practices, shall not discriminate against any person or persons on the basis of race, color, religion, sex, handicap, familial status, national origin, sexual orientation, or gender identity.”
Home sellers, home seekers, and real estate professionals all have rights and responsibilities under the Fair Housing law:
• Home sellers or landlords are required under the law not to 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 the licensed broker or salesperson acting as their agent to convey for them any limitations in the sale or rental because the real estate professional is also bound by law not to discriminate. A home seller or landlord cannot establish discriminatory terms or conditions in the purchase or rental; deny that housing is available, or advertise that the property is available only to persons of a certain race, color, religion, sex, handicap, familial status, or national origin.
• Home seekers have the right to expect that housing will be available to them without discrimination or other limitations based on race, color, religion, sex, handicap, familial status, or national origin. This includes the right to expect housing in their price range made available to them 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; to be free from harassment or intimidation for exercising their fair housing rights.
• Agents in a real estate transaction are prohibited by law from discriminating on the basis of race, color, religion, sex, handicap, familial status, or national origin. A request from the home seller or landlord to act in a discriminatory manner in the sale, lease or rental cannot legally be fulfilled by the real estate professional.
Complaints alleging discrimination in housing may be filed with the nearest HUD office, or by contacting them at http://www.hud.gov.
The economy has made a remarkable comeback from the Great Recession, according to a California Association of REALTORS® (C.A.R.) real estate analyst. The nation’s GDP is at 2.4 percent, up from 1.9 percent in the beginning of 2013. Personal consumption, the biggest component of GDP, hinges on consumer confidence, which has also rebounded, with its index climbing to 82.3 in March, the highest reading since January 2008.
“Right now, the economy is charging along and moving forward. There is positive economic growth,” Sara Sutachan told members of the Silicon Valley Association of REALTORS® during her visit to the area last month. Sutachan is manager of Broker and Real Estate Finance Outreach for C.A.R.
It’s even better in the Bay Area, especially in the San Jose metro area, which has experienced a 3.4 percent job growth, adding 110,000 in the area. Silicon Valley is charting a stronger course compared to other parts of the state.
“You are in a world of your own and going gangbusters,” Sutachan told the REALTORS®.
Sutachan then gave REALTORS® a heads-up on what to expect this year.
* Interest rates have begun tapering off, so consumers should expect to see rates hover around the 5 percent range. This will place a damper on housing affordability for many buyers, especially first-time home buyers.
* Financial reforms stemming from the Dodd-Frank Act are reining in lenders to ensure that they make a good faith effort to verify a borrower’s ability to repay their mortgage. Stiff penalties are imposed if they do not. Mortgage applications are required to comply with the Qualified Mortgage (QM) rule, which includes full documentation of income, assets and employment, a maximum of 3 percent for points and fees, a cap of 43 percent on the back-end debt-to-income ratio, among other requirements.
* Talk of dissolving Fannie Mae and Freddie Mac threatens home ownership since these government-sponsored enterprises are the cornerstone of housing. The GSEs and Ginnie Mae (Government National Mortgage Association) are responsible for 90 percent of mortgage originations and 99 percent of mortgage securitizations.
* The proposed draft legislation on federal tax reform could significantly impact home ownership because it proposes to lower the cap on the mortgage interest deduction, place tighter requirements on the capital gains exclusion, repeal the deduction for property taxes paid in connection with an owner-occupied home, along with all other deductions for state and local income taxes.
Sutachan forecasts statewide home sales could decline about 3 percent this year. She expects the median price to rise about 8.2 percent from last year. She said sales have stalled due to tight inventory since there has been little new construction for the past five years; sellers are reluctant to put houses their house on the market because they don’t have anywhere to go; because of the high appreciation, investors are renting instead of flipping their properties; there are fewer distressed sales in the market; off-market listings are growing.
In January, Governor Jerry Brown declared a drought emergency and urged Californians to voluntarily reduce their water use by 20 percent. Then last month, the Santa Clara Valley Water District called for mandatory measures to reach a water use reduction target equal to 20 percent of 2013 water use, through Dec. 31, 2014.
“We can’t take water for granted during this drought emergency and even under normal conditions. Water is our most precious natural resource. How we conserve and manage this resource will determine our future and that of generations to come,” said David Tonna, president of the Silicon Valley Association of REALTORS® (SILVAR).
To help consumers conserve on water, SILVAR has compiled the following water conservation tips from the Santa Clara Valley Water District and the Save Our H2O websites:
Conserve Water Indoors:
• Fix those leaks! To help detect hidden leaks, turn off anything that uses water and see if your water meter is still moving. If it is, there could be a leak somewhere. You can also put food coloring in your toilet tank. If it seeps into the bowl without flushing, there’s a leak.
• Take (short) showers instead of baths. Showers use about a third as much water.
• Do not let the water run while shaving or brushing your teeth.
• When washing your hair or hands, turn the water off while you lather.
• Wash fruits and vegetables in a pan of water instead of running water from the tap.
• Run the dishwasher or washing machine on a full load.
• Install water-efficient devices such as high-efficiency toilets, high-efficiency washing machines, low-flow showerheads and faucet aerators.
• When washing dishes by hand, fill one basin with wash water and the other with rinse water.
• Soak pots and pans instead of letting the water run while you scrape them clean.
• Use the garbage disposal sparingly. Instead, compost vegetable food waste and save gallons every time.
Conserve Water Outdoors
• Reduce the time you water your lawns and water lawns in the morning to avoid evaporation.
• Keep grass at least two inches high to shade roots.
• Water trees slowly, deeply and infrequently to encourage deep rooting. Overwatering is one of the most common mistakes people make.
• Use a broom rather than the hose to clean off walkways, patios and other outdoor areas.
• Check your sprinkler system frequently and adjust sprinklers so only your lawn is watered and not the house, sidewalk, or street.
• Choose a water-efficient irrigation system, such as drip irrigation for your trees, shrubs, and flowers. Save: 15 gallons/each time you water.
• Put a layer of mulch around trees and plants to reduce evaporation and keep the soil cool.
• Plant drought-resistant trees and plants.
• When washing your car, use a bucket of water or a hose with an automatic shut-off nozzle instead of letting the hose run.
“If we follow these simple water conservation measures, we could save a lot of water and even save on our water bill. According to the Santa Clara Valley Water District, if everyone saved 20 gallons a day, we’d save more than 13 billion gallons a year in Santa Clara County alone,” said Tonna.
For more water conservation tips, visit at http://www.saveourh2o.org/ and http://www.valleywater.org/.
On Feb. 25, SILVAR members enjoyed the Global Business Council Potluck, which featured an array of ethnic dishes provided by members and guests. Along with the good food and networking, members received information about global real estate, shared their experiences in this field of real estate, and offered tips on how to connect with foreign buyers. They also received information on how best to utilize Proxio, a new membership benefit for SILVAR REALTOR® members.
Special guest Sateesh Lele, vice chair of the California Association of REALTORS® Global Real Estate Forum, shared information from the Forum’s presentation at the C.A.R. Business Meetings in San Diego. Lele indicated Florida, California, Texas and Arizona continue to be the leading destinations for international buyers, while Canada, China, India, Mexico and the U.K. are home to majority of international buyers.
Davena Gentry, chair of the Silicon Valley Association of REALTORS® Global Business Council, said even as home prices are appreciating, the US. is still relatively inexpensive in cost of living and housing, offering value, diversification, stability, and size. She shared information from a March 2013 CNBC article that indicated in Hong Kong, for example, the average property prices in the fourth quarter of 2012 ranged from $4,570 – $5,050 per sq. ft.
SILVAR REALTOR® members may now log in to Proxio, a leading global marketing and real estate networking platform that connects real estate agents from across the country and around the world. Proxio is a new membership benefit for SILVAR REALTOR® members that will enable them to share their listings with other real estate agents in more than 140 countries. SILVAR has partnered with Proxio to provide SILVAR REALTORS® a Standard Level membership to their Global MLS.
The global networking platform has been described as “similar to a LinkedIn for real estate agents, but more.” Access to ProxioPro gives agents networking opportunities and an agent and property search. Your listings and marketing materials will be automatically translated into 19 languages, 55 currencies and metric measurements.
The SILVAR ProxioPro Standard Level membership includes a member’s profile in the network of over 600,000 real estate professionals across the U.S. and in 140 countries, and international MLS exposure for members’ listings presented in 19 languages. In addition to the Standard Level features, the SILVAR member benefit package also includes two upgrades – the Multicultural IDX (M-IDX) widget for a member’s website, which includes a full MLS search and translations of all properties in MLSListings into Proxio’s 19 languages; and the Proxio SocialSearch™ app for a member’s business page, with full IDX in five languages – English, French, Spanish, Portuguese and Chinese. Both of these features – the Multicultural IDX (M-IDX) widget and the Proxio SocialSearch™ app for your Facebook business page, will be available to members in their Proxio account within the next two weeks.
Proxio is conducting live training classes for members at SILVAR to get them up to speed on this global tool. Cameron Garcia, who teaches the Proxio overview classes, encourages SILVAR members to complete their profile as best they can. Adding their specialties and a photo of yourself will provide agents and their listings better global visibility. Studies show agents are more receptive to connecting with other agents when they see a photo on their profile. Engaging with other real estate agents and establishing relationships can increase your listings’ exposure.
Garcia also assures members that the Proxio site is secure. Everyone who is a member of the Proxio international network is a legitimate real estate professional.
Training classes on Proxio, a new SILVAR membership benefit, begin with the first class on Tuesday, February 25 from 1:30 to 2:30 p.m. at SILVAR. The Proxio Overview class will show agents how to make the most of the offered services step by step. Members will learn how to log in, build a referral network, search for properties and some marketing tools. Another overview class will be offered on March 4, 1:30-2:30 p.m. at SILVAR. More classes will be scheduled in the following months.
Proxio, a leading global marketing and networking platform that connects real estate agents from all over the world and shares their listings, is a new benefit that is free for SILVAR REALTOR® members. The Proxio international network enables real estate agents to share listings in more than 115 countries. Foreign listings are translated into 19 languages, 30 currencies and metric measurements. The network allows U.S.-based agents to connect with other agents internationally, providing them and their listings global visibility.
SILVAR’s Proxio bundle includes a member’s profile in the network of over 500,000 real estate professionals across the U.S. and in over 100 countries, and international MLS exposure for members’ listings presented in 19 languages. The bundle also includes the following two upgrades – the Multicultural IDX (M-IDX) widget for a member’s website, which includes a full MLS search and translations of all properties in MLSListings into Proxio’s 19 languages; and the Proxio SocialSearch™ app for a member’s business page, with full IDX in five languages – English, French, Spanish, Portuguese and Chinese.
The Proxio training class will be taught by Cameron Garcia. The class is free for SILVAR members. Cost is $50 for nonmembers who would like to learn more about the international marketing and networking platform.
SILVAR, which represents over 4,000 REALTORS® and affiliate members engaged in the real estate business on the Peninsula and in the South Bay, is the first REALTOR® association in the state of California to provide members with Proxio. Proxio will be providing more training webinars and classes to show agents how to make the most of the offered services.
The Proxio membership benefit is funded by the association for all SILVAR REALTOR® members. The free benefit joins the long list of other member benefits, like the DocBox™ and DocBox2Go™ document management system, the E-SIGN and UETA compliant signature solution Authentisign™ and Authentisign2Go™, PRDS Forms on Instanet and PRDS Forms on tablets.
Silicon Valley Association of REALTORS® says ... 