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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
Cupertino/Sunnyvale District Chair Mary Combes (left) and Michelle Ma are pictured here with 48 backpacks donated to West Valley Community Services to be distributed to low-income students at the beginning of the school year.
A new backpack and necessary school supplies mean the world to all students, especially those whose families can’t afford to purchase them, according to Ma. Having a good backpack and the correct supplies for school can boost a student’s self-confidence and success in learning.
Ma thanked SILVAR members for the backpacks. “These supplies are important and critical to the children because they help them succeed in their education,” said Ma.
The backpacks are an annual project of the Cupertino/Sunnyvale District. They are purchased each year with funds raised from district events. “This is just another way our district gives back to our community. Low-income middle school age children sometimes need a little extra boost at the start of the school year. A new backpack enhances their self-image,” said SILVAR President Carolyn Miller.
Miller said the Cupertino/Sunnyvale District supports the schools in other ways, too. She encourages members to participate in the district’s sign rider program. REALTORS® donate $250 of their commission for every property they sell in the school district. Signs that say they support the schools are then placed on the yards of homes they sell. The signs are available at the SILVAR store.
“Many of us also contribute to CEEF (Cupertino Educational Endowment Foundation), the Sunnyvale School District and the Santa Clara School District when we sell a home within these school boundaries. The school foundations add the $250 volunteer contributions directly into science, music, and art programs. It also shows that REALTORS® care about our schools,” added Miller.
On July 10, 2013, the National Association of REALTORS® (NAR) launched a Call for Action in response to the Senate Finance Committee’s plan to use a “blank state approach” for tax reform legislation. A “blank slate” means that as a starting point, all tax expenditures (including tax deductions such as the mortgage interest deduction, tax exemptions such as the capital gains exemption on the sale of a primary residence, and tax credits such as energy efficiency tax credits) will be removed from the tax code.
Senators have until July 26 to request that certain tax expenditures be added to the reform legislation. NAR’s Call for Action is emphasizing the need for any tax legislation to do no harm to the economy by retaining the deductions for mortgage interest and property taxes, the capital gains exclusion on proceeds from the sale of a principal residence, and extension of mortgage cancellation relief. Also emphasized are deprecation rules and the continued tax-deferred treatment of 1031 exchanges.
If you are a REALTOR® and have not answered NAR’s Call for Action, please take action today. Reach out to your U.S. Senators to make sure that real estate tax provisions are maintained in any rewrite of the tax code. Taking action is easy. Please click here to send an email to your senators
2013 SILVAR CIPS Institute graduates
The week-long courses were taught by certified National Association of REALTORS® (NAR) 2012 and 2009 International Instructor of the Year David Wyant CIPS, ABR, AHWD, ePRO, GRI, TRC, SFR. Wyant, who is based in Florida, taught the CIPS Institute at SILVAR last November and received excellent reviews from the class.
The CIPS curriculum focuses on ownership and transaction principles of international real estate, and provides training in international business issues, including currency conversion, cultural awareness, and legal and tax requirements. The courses also provide an analysis of the real estate markets in Europe, the Americas, and Asia. Upon completing the education and other requirements, REALTORS® will receive their CIPS designation and be recognized at a special ceremony during the NAR Conference and Expo, which will be held in November 8-11 in San Francisco.
Rising home prices and other factors have caused international home sales in the U.S. to decline in the past year, but they are still at their second highest level in recent years and account for over 6 percent of total existing-home sales in value, according to NAR. NAR’s 2013 Profile of International Home Buying Activity indicates interest in U.S. properties continues to grow, showing the U.S. continues to be regarded by international buyers as a great place to own property. NAR reports over a five-year time frame, more than 70 percent of REALTORS® reported a constant or increasing level in the number of international clients contacting them; 27 percent of reported having worked with international clients this year.
“We live in a global real estate market. More REALTORS® are earning NAR’s CIPS designation because they realize the specialized training the CIPS courses offer can prepare them to serve the international market,” said Wyant.
The five states that made up 61 percent of reported purchases the past year were Florida (23 percent), California (17 percent), Arizona (9 percent), Texas (9 percent) and New York (3 percent). Wyant said it is not surprising that Florida and California remain popular places to buy property.
“Foreign buyers like the weather in these states. They are close to their home country and it’s likely they have relatives already living there. Here, in Silicon Valley, the job opportunities are fantastic and the education institutions are excellent,” exclaimed Wyant.
This year’s CIPS Institute sponsors included Janet Case of Proxio, Richard Miller of ParSquare.com, Kenneth Chan of HSBC, and Evelyn Figueira and Kathy Liu of Citibank.
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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Just back from meeting their state legislators in Sacramento early this month, SILVAR’s leadership team is in Washington, D.C. this week, joining more than 9,000 REALTORS® and guests from across the nation at the National Association of REALTORS® (NAR) Midyear Legislative Meetings & Trade Expo May 13-18. They are meeting with regulators, lawmakers and industry leaders to address critical real estate issues affecting individuals, communities, and the nation.
At a general meeting on Wednesday morning, NAR CEO Dale Stinton told REALTORS® current NAR membership is at 990,000 and that it should exceed one million soon. There are 1,400 local associations; 1,100 have 300 members or less.
During their meetings with legislators on Capitol Hill REALTORS® are urging action toward preserving the mission and purpose of the Federal Housing Administration’s single-family mortgage program, encouraging the return of private capital to mortgage markets, restructuring government-sponsored enterprises Fannie Mae and Freddie Mac to guarantee affordable mortgage financing is available to creditworthy consumers in all types of markets, and maintaining current tax policies for homeownership and real estate investment. They also are participating in sessions with a number of government officials and industry experts, including representatives from the Consumer Financial Protection Bureau, Fannie Mae, Federal Emergency Management Agency, Federal Reserve Board and Freddie Mac.
“The NAR Legislative Meetings & Trade Expo is an enormous gathering of REALTORS® from every state in the country. We are here to remind our country’s elected officials that home ownership has value for all families,” said SILVAR President Carolyn Miller.
SILVAR members are meeting with Anna Eshoo, U.S. Representative for California’s 18th congressional district, which includes parts of San Mateo, Santa Clara and Santa Cruz counties; Jackie Speier, U.S. Representative for California’s 14th congressional district , which consists of portions of San Mateo County and San Francisco; and Mike Honda, U.S. Representative for California’s 17th congressional district, which includes western San Jose and Silicon Valley.
Accompanying Miller in Washington are SILVAR President-elect Dave Tonna, NAR Director John Tripp, Past President Suzanne Yost, board director David Barca, Jeff Barnett, Carole Feldstein, SILVAR PAC Chair Barbara Williams, Government Affairs Director Jessica Epstein and Executive Officer Paul Cardus
This week, for the 12th consecutive year, volunteers from SILVAR lent a helping hand to seniors and the homebound in their communities through SILVAR’s REALTOR® Service Volunteer Program (RSVP). The seniors, who ranged in age from their early 60s to 100 years old, were more than grateful for the help they received.
The seniors expressed their thanks in many ways – by personally thanking the volunteers, by sending fruit home with the volunteers, and by immediately sending notes and emails of thanks. The following note was emailed by a Los Altos senior homeowner the morning after RSVP volunteers visited her home:
“Your wonderful volunteers came to my home yesterday and provided great services for me! I am so grateful.”
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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.
The tragic events at the Boston Marathon serve as a reminder that we should always be prepared to safeguard our family and home during an emergency. The best way to prepare for any emergency is to prepare an emergency supply kit, have a family emergency plan, and keep informed.
The Silicon Valley Association of REALTORS® (SILVAR) shares the following compilation of preparedness and safety tips from the Federal Emergency Management Agency (FEMA) and American Red Cross.
1. Create a household disaster kit. Since electricity, water, gas and telephones may not be working during an emergency, you should be prepared to fend for yourself for at least one week. This kit should hold at least a one-week supply of the following items:
• Drinking water (minimum one gallon per person per day).
• First aid supplies, medications, medical consent forms for dependents spare eyeglasses, and essential hygiene items, such as soap, toothpaste and toilet paper.
• Emergency lighting—light sticks and (or) a working flashlight with extra batteries and light bulbs (hand-powered flashlights are also available).
• Whistle (to alert rescuers to your location).
• A hand-cranked or battery-operated radio (and spare batteries).
• Canned and packaged food, including snack foods high in calories and cooking utensils, including a manual can opener.
• Warm clothing, sturdy shoes, extra socks, blankets, and perhaps even a tent.
• Heavy-duty plastic bags for waste and to serve other uses, such as tarps and rain ponchos.
• Work gloves and protective goggles.
• Pet food and pet restraints.
• Copies of vital documents, such as insurance policies and personal identification.
• Cash in small bills.
• Comfort items, such as games, crayons, writing materials, and teddy bears.
• A pipe wrench to turn off gas or water
NOTE: Replace perishable items like water, food, medications, and batteries on a yearly basis.
2. Have a family emergency plan. Your family may not be together when disaster strikes, so it is important to plan in advance.
• Consider locations you frequent and have a plan for each location.
• Choose an out-of-state friend or relative to call and alert other relatives and friends that you are all right. Be sure every family member knows the phone number and has a cell phone, coins or a prepaid phone card to call the emergency contact.
3. Keep Informed. Subscribe to an alert service. AlertSCC is a free and easy way for anyone who lives or works in Santa Clara County to get emergency warnings sent directly to their cell phone, mobile device, email, or landline. To receive alerts, register with the system at http://www.alertscc.com/.
For more information on emergency preparedness and prevention tips, visit
http://www.ready.gov/today or http://www.redcross.org/prepare/location/home-family.
Silicon Valley Association of REALTORS® says ... 