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In line with its global initiative to provide educational opportunities for members to succeed in global real estate markets, SILVAR is offering members and other real estate professionals the opportunity to complete classroom requirements for the National Association of REALTORS® Certified International Property Specialist (CIPS) Designation on Nov. 26-30.
CIPS courses provide training in international business issues, such as currency conversion, cultural awareness, and legal and tax requirements. The CIPS curriculum focuses on ownership and transaction principles of international real estate, including specifics on the real estate markets in Europe, the Americas, the Middle East/Africa and the world. Attend the 5-day CIPS Institute at SILVAR and fulfill the classroom requirements for the CIPS designation. You must complete the two core courses, three elective courses, and pass a multiple-choice exam at the end of each course.
The week-long courses will be taught at SILVAR by David Wyant, CIPS, ABR, AHWD, ePRO, GRI, TRC, SFR, a certified NAR faculty member, and 2009 NAR International Instructor of the Year.
SILVAR is offering an early bird registration special of $550 for the entire CIPS Institute (five courses) for any Association of REALTOR® member who registers by Oct. 15! Regular cost for the entire institute for SILVAR members is $599/$625 after Nov. 1; non-members, $625/$650 after Nov. 1.
It is also possible to take individual courses. Each course for SILVAR members is $150/$165 after Nov. 1; Non-members $175/$190 after Nov. 1. Breakfast and light lunch included each day.
Many business professionals take one or all of the CIPS courses in order to expand their knowledge and skills about international business. The invitation to attend SILVAR’s CIPS courses is open to the public.
VIEW FLYER for more details and registration form.
It is expensive to live in the heart of Silicon Valley, but buyer demand for homes, including million-dollar homes, continues to be strong. Real estate information service DataQuick lists the following Silicon Valley communities among the highest ranked areas for million-dollar homes sales in California in the second quarter.
- Hillsborough topped the list with 134 sales in 2012 Q2, up from 118 in 2011 Q2, with the most expensive home purchased for $5.28 million.
- Saratoga ranked second with 126 million-dollar homes purchased in 2012 Q2, up from 93 in 2011 Q2, with the most expensive of purchased at $5.35 million.
- Cupertino ranked fifth (after Manhattan Beach and Newport Beach in Southern California) with 105 million-dollar homes sold in 2012 Q2, up from 88 in 2011 Q2, with the most expensive home purchased for $2.45 million.
- Los Altos ranked sixth after Cupertino with 102 million-dollar home sales in 2012 Q2. The most expensive home was purchased for $6 million. Los Altos had 81 million-dollar home sales in 2011 Q2.
- In Los Gatos, the most expensive home purchased cost $4.66 million. There were 67 million-dollar homes purchased in the zip code of 95032, up from 44 in 2011 Q2. In the Los Gatos zip code of 95030, 62 million-dollar homes were purchased last quarter, up from 31 in the second-quarter last year.
Despite the hype over Facebook’s IPO, Menlo Park and Palo Alto made the list, but had fewer million-dollar home sales in second-quarter 2012 than the same time last year, according to DataQuick. Menlo Park had 100 million-dollar homes sold in second-quarter 2012, down from 124 last year, with the most expensive home purchased for $4.8 million. Palo Alto had 62 million-dollar homes sold, down from 69 in 2011 Q2, with the most expensive home purchased for $3.15 million.
Silicon Valley Association of REALTORS® (SILVAR) president Suzanne Yost, who is an associate broker with Alain Pinel Realtors in Los Gatos, is not surprised that many of the communities located within SILVAR’s five districts made the list. “Silicon Valley’s economy is healthy compared with other parts of the state because it is the heart of innovation, with many successful tech companies,” said Yost.
Yost added, “Our members have reported a surge of foreign buyers. They are attracted to the region’s weather, diversity, excellent schools, good mix and proximity to shopping, entertainment, the arts and services. We’re not that far from San Francisco, close to the freeways and airports. Buyers know they can’t go wrong and they are willing to pay the price for these amenities.”
SILVAR has five member districts, allowing members to work closely with their communities. They are the Menlo Park/Atherton District (including Portola Valley, Woodside and East Palo Alto), Palo Alto District, Los Altos/Mountain View District (including Los Altos Hills), Cupertino/Sunnyvale District and the Los Gatos/Saratoga District (including Monte Sereno).
The Federal Housing Finance Agency (FHFA) announced on Tuesday that it will align guidelines for Fannie Mae and Freddie Mac short sales and allow lenders and servicers to quickly and more easily qualify borrowers for a short sale.
The new guidelines issued by Fannie Mae and Freddie Mac to their mortgage servicers will offer a more streamlined approach to the short sale process by consolidating existing short sales programs into one standard short sale program. The program rules will expand eligibility criteria of borrowers, so homeowners who are current on their mortgage payments, yet suffer from specific hardships, will be able to qualify more quickly for a short sale.
Effective Nov. 1, homeowners with a Fannie Mae or Freddie Mac mortgage will be allowed to sell their home in a short sale even if they are currenton their mortgage, if they have an eligible hardship. Servicers will be able to expedite processing a short sale for borrowers with hardships such as death of a borrower or co-borrower, divorce, disability, increase in housing expenses, unemployment, disability, or relocation for a job, without any additional approval from Fannie Mae or Freddie Mac.
“We are pleased with the new guidelines. REALTORS® at the local, state and national level have long advocated for a more streamlined, standardized short sale process. Improving short sale eligibility will allow more families to avoid foreclosure and reduce the negative impact foreclosures have on families and communities,” said Suzanne Yost, president of the Silicon Valley Association of REALTORS®.
Some specific changes include:
- Eliminates current Fannie Mae and Freddie Mac short sale programs and creates a single standard short sale process for both entities (Fannie and Freddie HAFA programs will expire at the end of the year).
- Enables servicers to quickly and easily qualify certain borrowers who are current on their mortgages for short sales without waiting for an approval from Fannie Mae or Freddie Mac
- Offers special treatment for military personnel with Permanent Change of Station (PCS) orders.
- Standardizes and clarifies foreclosure suspensions on a property with an approved short sale.
- May pay borrowers up to $3,000 in relocation assistance.
- Fannie Mae and Freddie Mac will offer up to $6,000 to subordinate lien holders to expedite a short sale.
Additionally, FHFA clarified that a borrower experiencing a hardship must wait at least two years before becoming eligible for a Fannie Mae or Freddie Mac loan. These changes follow FHFA’s announcement in June that established strict timelines for servicers to respond to short sales within 30 days of receipt of a short sale offer, provide weekly status updates to the borrower, and communicate a final decision to the borrower within 60 days of receipt of the offer.
At this month’s Palo Alto District tour meeting, Palo Alto brokers said the market environment has greatly improved from a year ago. While inventory is still low, it has been slowly rising.
Keller Williams managing broker Bob Stelzer indicated demand is coming back strong, and there has been a significant rise in listings since April. His data showed Menlo Park with 52 current active listings compared with 26 in April; Palo Alto 51, compared with 29 in April; and Los Altos 45 compared with 24 in April. High-end property sales increased substantially in the first half of this year in comparison to the same time last year.
Sellers are becoming realistic, according to the brokers. Many sellers caught up in the hype of Facebook’s IPO and thinking they would strike gold by waiting for prices to skyrocket, now realize the phenomenon did not create the “super market” they thought it would. These sellers are now ready to sell.
Broker Tim Foy of Midtown Realty, however, believes inventory is low because people are still looking for stability. Despite the uptick, he expects low inventory for a while. “It won’t change overnight. It’s a market reality,” commented Foy.
According to Alain Pinel Realtors broker Bob Gerlach, it’s not the Facebook IPO phenomenon that is driving the market, but rather, it’s interest from Chinese and other foreign buyers. He said majority of transactions through his office are with Chinese cash buyers. Foreign interest in property in the area has created a “dramatic effect” in the market, said Gerlach.
Gerlach indicated an obstacle to the market rebound is a pocket of sellers who can’t sell because they don’t have better places to go. Buyers these days are more selective. “It is a discretionary market,” he noted.
The brokers said listing agents need to make their sellers aware that despite the high demand, not all houses are “entitled” to top market prices because today’s buyers are more informative. There is more discretion now regarding “housing with a blemish,” added Foy.
Left to right: SILVAR Past President Gene Lentz, Board Director Bill Rehbock, Affiliate Chair Richard Miller, Board Director David Tonna, President-elect Carolyn Miller, C.A.R. President LeFrancis Arnold, President Suzanne Yost, Los Gatos/Saratoga Chair Cassie Maas, and C.A.R. Past President Jim Hamilton
SILVAR members from the Menlo Park/Atherton and Los Gatos/Saratoga districts had the opportunity to meet and listen to California Association of REALTORS® President LeFrancis Arnold at their meetings this week. Meeting California REALTORS® across the country is part of his duty as president of the state REALTOR® association, said Arnold.
Arnold said SILVAR REALTORS® are very fortunate to be working and living in Silicon Valley because compared to other parts of the state, the region was not hit as hard by the housing downturn. He has observed the growing interest in residential real estate here and in the state from foreign buyers.
“The housing industry is one of the most important assets in California,” said Arnold. Proof of this is in the billions of dollars of residential real estate purchased by international investors. Arnold noted the top foreign buyers come from Canada, China, Mexico and Great Britain, and they are looking at properties in California.
“No immigrant comes to America with a desire to be a tenant. They dream of homeownership,” said Arnold.
Global real estate is growing in importance, said Arnold. Foreign investors and immigrants create opportunities and bring diversity not only in housing, but also in the election process. It is important that everyone, regardless of race, is given the opportunity for homeownership. Arnold said another part of his duty as C.A.R. president is to meet with legislators and deliver this message. It is what C.A.R., SILVAR and the National Association of REALTORS® do at the state, local and national levels.
Arnold underlined the importance of political advocacy. REALTORS® at the local, state and federal level fight legislation that will negatively affect homeownership and allow REALTORS® to be political activists. He stressed advocacy for homeownership needs to continue because the threats are very real, particularly proposals to impose transfer taxes and continuing discussions on eliminating or reducing the mortgage interest deduction (MID).
Left to right: SILVAR President Suzanne Yost, Menlo Park/Atherton Chair Chris Isaacson, C.A.R. President LeFrancis Arnold and SILVAR Past President Gene Lentz
Arnold said REALTORS® at the local, state and national level will continue to work as a team and fight legislation that hurts the American Dream of homeownership.
“Each of us has a role to play,” said Arnold. “We have to continue to fight for homeownership rights.”
California Governor Jerry Brown signed the Homeowner Bill of Rights into law this week to help struggling Californians keep their homes. This law aims to avoid foreclosure where possible to help stabilize California’s housing market and prevent the other negative effects of foreclosures on families, communities, and the economy.
The new law will generally prohibit lenders from engaging in dual tracking; require a single point of contact for borrowers seeking foreclosure prevention alternatives; provide borrowers with certain safeguards during the foreclosure process; and allow borrowers the right to sue lenders for material violations of this law. The full text of this law, also known as Assembly Bill 278 and Senate Bill 900, is available at www.leginfo.ca.gov.
Last week, the California State Legislature passed a Conference Report that was a key element of the California Attorney General’s package of bills making up a “Homeowners Bill of Rights.”
The legislation is intended to codify the national negotiated settlement between the state’s Attorney General and major banks. The California Association of REALTORS® (C.A.R.) had opposed the legislation because it felt, while well-meaning, the legislation would encourage the filing of frivolous lawsuits that would delay the foreclosure process and further discourage lending.
While C.A.R. is disappointed in the final outcome, the bill passed by lawmakers is a much improved version of the package of bills initially sponsored by the Attorney General. The original bill would have halted all foreclosures, drying up both REO inventory and even short sales.
“The good news is what has passed is an improved version of the package of bills initially sponsored by the Attorney General. During Legislative Day in May, REALTORS® from across the state traveled to Sacramento and spoke with their legislators against these complicated and harmful provisions. The Conference Committee ultimately did not include them in the final report,” said Suzanne Yost, president of the Silicon Valley Association of REALTORS®.
The California Association of REALTORS® (C.A.R.) has issued a Red Alert, asking members to contact state legislators to urge for their “NO” vote on conference report AB 278. C.A.R. opposes provisions of the anti-foreclosure legislation sponsored by the state Attorney General, which will allow anyone to stop the foreclosure process by filing a lawsuit, with or without merit. The Silicon Valley Association of REALTORS® joins C.A.R. in asking all REALTORS® to respond to C.A.R.’s Red Alert and contact their respective state legislators.
Action Item
Please call your State Senator today at 1-800-969-3310 and enter your NRDS ID, followed by the “#” sign to be connected. Ask your Senator or his or her staff to vote “NO” on the conference report. Please note: C.A.R. is only targeting Democratic Senators only for this mobilization effort.
C.A.R. has supported careful and balanced reforms to the foreclosure process. However, C.A.R. opposes this conference report because it will further delay the housing recovery by inviting bad faith lawsuits and defaults, and make it difficult for even well-qualified borrowers to obtain financing.
Initially, the Attorney General had sponsored a package of bills, the so-called the “Homeowners Bill of Rights.” For procedural reasons, the majority of these bills have been under consideration by a Conference Committee made up of six legislators. REALTORS® had the opportunity to educate these legislators about C.A.R.’s concerns as part of Legislative Day and since then, C.A.R. lobbyists have been working directly with the conferees and legislative staff to make them aware of the unintended consequences of some of these proposals. The Conference Committee has now issued its final report and it may be considered by both houses of the Legislature as early as Monday, July 2.
One provision allows any borrower, no matter what the circumstances, to file a lawsuit. This will encourage opportunistic lawyers to pursue frivolous lawsuits, bringing unnecessary and unjustifiable delays to an already difficult and time consuming process. The language is so vaguely written that borrowers don’t even have to show that they have been harmed to file suit and be awarded damages. One-sided attorneys’ fees may still be awarded only to plaintiffs based on the very broad definition of a “prevailing party” in the report.
C.A.R. believes by restricting a lender’s ability to foreclose and exposing them to unnecessary liability, this report will dry up inventory, and it will further discourage lending other than to the most highly qualified borrowers. If lenders don’t have the remedy of foreclosure to ensure they can recover their security in appropriate situations, they will be less likely to lend; credit will be less available; and the housing market recovery will limp along even more slowly.
Additionally, these bills will artificially slow down the foreclosure process, keeping properties off the market that are legitimately in foreclosure. Finally, by removing the threat of foreclosure, the bill erodes the incentive for short sales, as well.
After nearly a decade of decline the income of REALTORS® is growing, according to the 2012 National Association of Realtors® Member Profile. The study’s results are representative of the nation’s REALTORS®, who are members of the National Association of REALTORS® (NAR).
NAR member income rose for the first time since 2002. The median income of a REALTOR® rose 2.3 percent to $34,900 in 2011, which is the first overall gain in nine years.
REALTORS® account for about half of the two million active real estate licensees in the U.S. Unlike other real estate licensees, REALTORS® go beyond state licensing requirements by subscribing to NAR’s Code of Ethics and Standards of Practice, commit to continuing education, and have access to professional resources to better serve the needs of clients.
The typical NAR member has 11 years of experience and works 40 hours per week; 60 percent are women, who account for 55 percent of brokers and 66 percent of sales agents. Members licensed as brokers typically earned $48,400 in 2011, while the median for sales agents was $27,200. Higher median income was reported by members in the business for 16 years or more, who earned $50,200. Seventy-two percent of REALTORS® receive no fringe benefits, although 23 percent are covered by errors and omissions insurance; only 6 percent receive health insurance.
“REALTORS® bring value to their clients by raising professional standards with specialized knowledge and expertise, which includes training for designations and certifications offered by NAR,” said NAR president Moe Veissi.
Thirty-two percent of REALTORS® hold at least one out of six certifications in specialized training. The most popular area of training, driven by the ongoing elevated level of distressed homes on the market, is the Short Sales and Foreclosures Resource Certification, held by 18 percent. In addition, 33 percent of REALTORS® have obtained at least one professional designation.
The typical NAR member is 56 years old. REALTORS® are well-educated, with 48 percent holding at least a bachelor’s degree; 16 percent are fluent in other languages. Sixty-two percent of NAR members have a personal website, and nine out of 10 report their firm has a web presence. Fifty-four percent of the respondents use social or professional networking sites and 10 percent have a blog.
Selling homes and property management are not all REALTORS® do, according to Suzanne Yost, president of the Silicon Valley Association of REALTORS®. The NAR survey shows REALTORS® are politically active – 93 percent participated in the last national election and 82 percent voted in the last local election.
“REALTORS® fight for homeowners and buyers at the local, state and national level,” said Yost. “As strong advocates of homeownership and private property rights, we constantly strive to educate our representatives in government about policies that could impact our clients’ ability to achieve the American dream of homeownership. It makes sense to make sure you are working with a REALTOR®, not just a licensee, to take advantage of their commitment to ethical behavior and education.”
In May, Yost and other SILVAR members attended the NAR Mid-Year Legislative Meetings in Washington, D.C. and the California Association of REALTORS® Business Meetings in Sacramento, where they discussed real estate-related issues with legislators. At these meetings REALTORS® asked legislators to continue supporting favorable legislation, such as extending the National Flood Insurance Program, preserving FHA programs, and opposing bulk sales of REOs.
The Silicon Valley Association of REALTORS® (SILVAR) has received reports from members doing business in Santa Clara County of a scam by individuals fraudulently posing as landlords and misrepresenting vacant properties for lease.
Using various websites, the scam artists advertise a home for rent, when the property is actually for sale. Prospective tenants who call the phone number provided in the false rental advertisement are then directed to provide an application fee and rental deposit immediately if they wanted to lease the unit.
The scam was discovered once prospective tenants contacted the actual listing agent to gain access to view the property. Law enforcement authorities have been notified of the attempted scam.
“It is tragic that people continue to prey on consumers who are in need of a place to rent. Potential renters are convinced to pay deposits and rent to unscrupulous people who take the money and run with the tenant left wondering what happened and with no funds to rent another property,” said Suzanne Yost, president of SILVAR. “We are asking consumers to always verify the owner of the property you intend to rent and heed guidance issued by the California Department of Real Estate (DRE).”
The DRE last year issued a warning about “impostor landlords” and provides the following guidance to protect consumers from this type of scam:
- Ask anyone offering a house for rent to provide you with proof that they own the house, and to show you their government issued picture identification. Then scrutinize the proof of ownership, as well as the identifications since there is also the risk that their identifications can be false.
- If you think that you are dealing with an owner’s/landlord’s representative, you should check with the DRE to see if that representative or agent is licensed. This is because a real estate license is required, with some narrow exceptions, for a person to offer a house for rent as an agent of the owner. Check the license records on the DRE website (www.dre.ca.gov) and make sure you are working with legitimate licensees.
- If you are an existing tenant, you should check with the County Recorder’s office to verify the property’s owner of record. If the house has been foreclosed upon, you should contact the new owner and verify with the current owner the person to whom you should be forwarding your rental payments.
If you feel you have dealt with a scammer in the area of a housing rental or have been defrauded in connection with rental of a house, please contact the DRE at the following numbers: For Spanish-speaking consumers, call 1-877-DRE-4321; for consumers in the Bay Area, call (510) 622-2552.
Silicon Valley Association of REALTORS® says ... 