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At round table discussions, REALTORS® shared their thoughts about the future. (Photo courtesy of MLSListings Inc.)
With the changing demographic and socio-economic landscape and changing economic concerns, the real estate industry sees itself facing a transformation. NAR launched the REThink Initiative in August 2012 during its annual Leadership Summit in Chicago, Ill. The REThink Initiative will use the experiences and insights of REALTORS®, academia, consumers and others to plan for and adapt to dynamic changes in the industry.
At Friday’s workshop, REALTORS® discussed different versions of what the future holds for the industry. Workshop participants were asked to consider a focal question: In an ever-changing world, what is the future of the real estate industry in 5-10 years, and how will this affect consumers, real estate professionals, industry organizations and associations?
At the round table discussions, participants examined several scenarios for the industry and elements that are likely to impact the future of U.S. real estate, including the long-term effects of the recent recession, the global economy, technology, demographic forces like the retiring Baby Boomers, emerging Echo Boomers, increasing ethnic diversity, and population growth. Environmental concerns, like growing scarcity of energy and raw materials, and how they could affect housing patterns and design, access to owning a home, and the value of homeownership, were also explored.
Cross-country workshops are being conducted through May 2013. Insights from members will provide critical input into NAR’s future strategy and help formulate a shared vision about the future REALTORS® want to create for themselves, their association, for the industry, and for society as whole.
For more information about NAR’s ReThink Initiative, visit http://rethinkfuture.com.
A Notice of Credit-Based Denial to Rent (RNDR) is a new form that has been added to the PRDS library and may be accessed online by SILVAR and SAMCAR (San Mateo County Association of REALTORS®) REALTOR® members at http://www.prdsforms.com. The RNDR is a form needed in the event a potential tenant is turned down due to an unfavorable credit rating.
In addition to Form RNDR 5-09 Notice of Credit-Based Denial to Rent, the revised PRDS Supplemental Seller’s Checklist (SSC) is now also available online for SILVAR and SAMCAR REALTOR® members.
PRDS Forms is an extensive line of paper and online forms for residential purchase and sales transactions. These forms are available online free of charge as a member benefit to all SILVAR and SAMCAR REALTOR® members. Created by REALTORS® for REALTORS®, these forms are highly acclaimed, and have been heavily used for over 25 years by listing agents from leading offices in Silicon Valley and the San Francisco Peninsula.
To access these and other PRDS forms, visit http://www.prdsforms.com.
California Governor Jerry Brown will speak to REALTORS® at the California Association of REALTORS® Morning Briefing on Legislative Day. SILVAR members are encouraged to participate in this important event, which will be held on Wednesday, May 1. The deadline to sign up is Monday, April 22.
Legislative Day is the day REALTORS® from all over California travel to Sacramento and meet with their elected officials to discuss critical legislation that can affect REALTORS®, homeowners and private property rights. REALTORS® make up the largest group that travel to the nation’s capital to speak with their legislators.
When members arrive in Sacramento, they will receive a special briefing at the Sacramento Convention Center from California Association of REALTORS® lobbyists, REALTOR® leadership, Governor Brown, and other special guests. A joint luncheon with members of SILVAR, the Santa Clara County Association of REALTORS® (SCCAOR) and San Mateo County Association of REALTORS® (SAMCAR) will follow the briefing.
After lunch, SILVAR REALTORS® will attend meetings with all of the legislators in Silicon Valley, including Senators Jim Beall and Jerry Hill, and Assembly Members Paul Fong and Rich Gordon. At these meetings, REALTORS® will have the opportunity to discuss important real estate issues, such as private property rights, legal reforms and housing opportunity policies.
Personally meeting our legislators and discussing real estate-related issues that may adversely affect our clients – buyers, sellers, homeowners and private property rights – makes a difference! For more information about Legislative Day, contact SILVAR Government Affairs Director Jessica Epstein at (408) 200-0100.
In an effort to provide California home buyers with up-to-date information about available home buyer assistance programs, the California Association of REALTORS® (C.A.R.) has launched California Mortgage Resource Directory (http://mortgage.car.org), an online search tool that identifies current mortgage programs in communities throughout the state.
“Millions of dollars go unused every year because home buyers are unaware of the various buyer assistance programs available to them,” said C.A.R. President Don Faught. “With California Mortgage Resource Directory, REALTORS® and buyers can quickly connect with any number of home buyer resources without having to search within each municipality individually.”
California Mortgage Resource Directory helps bridge the down payment gap for homebuyers and connects them with resources that they may not have otherwise known existed. Buyers can search by city or address for public- and private-funded assistance programs including FHA/VA, HUD, affordable fixed-rate mortgages, rehab loans, and more.
“The California Mortgage Resource Directory is a good resource if you are thinking of buying a home and are assessing your finances. Many buyers are unaware of down payment and other home buyer assistance programs that are out there. This would be a valuable tool for both REALTORS® and their clients,” said Carolyn Miller, president of the Silicon Valley Association of REALTORS®.
“Low mortgage interest rates help make homes affordable for buyers, but many can’t come up with the down payment needed to qualify for a loan. The more money a buyer can put on a down payment, the lower the amount of the loan, so the California Mortgage Resource Directory can prove valuable to home buyers looking for down payment assistance,” added Miller.
The new directory is powered by Down Payment Resource, the nation’s only web-based aggregator of home buyer programs. The tool was developed by Workforce Resource (www.workforce-resource.com) and is made available through Multiple Listing Services, REALTORS® associations, and nonprofits.
At its February 26 meeting, the San Mateo County Board of Supervisors voted to postpone a discussion on eliminating Propositions 90 and 110 in San Mateo County.
For over 20 years Propositions 90 and 110 have created a pathway for senior citizens (those over 55) and the disabled to move into San Mateo County. The current law states that a senior citizen or disabled individual can transfer their base tax rate from another county when they buy a home in San Mateo County, as long as the new home is of an equal or lesser value.
Without notice to SILVAR or neighboring San Mateo County Association of REALTORS® (SAMCAR), the San Mateo County Manager placed the proposal to eliminate propositions 90 and 110 on the supervisors’ agenda for the February 26 meeting. Though only made public on Thursday, February 21, SILVAR was able to mobilize REALTORS® to quickly respond by emailing the San Mateo County supervisors and letting them know their opposition to the proposal to repeal the propositions. SILVAR’s Government Affairs team also reached out to each member of the Board of Supervisors to express its concern.
SILVAR would like to thank all who responded to the Call for Action email. Over 70 REALTORS® who live in San Mateo County sent emails to the supervisors. Additionally, several REALTORS® from SILVAR and SAMCAR attended the Tuesday Board of Supervisors meeting.
Although the supervisors listened and took the item off the agenda at their Tuesday meeting, members need to remain vigilant because the issue has not gone away. It is highly likely that the item will be placed back on their agenda in the near future.
SILVAR is seeking individuals who can testify about the important role Propositions 90 or 110 played for a client in buying a home in San Mateo County. If you have a story, please contact SILVAR Government Affairs Director Jessica Epstein at (408) 200-0108 or email jepstein@silvar.org.
On Tuesday, the San Mateo County Board of Supervisors will consider eliminating Proposition 90, an important tool which for the past 20 years has made it possible for senior citizens (as defined as over age 55 in the law) and persons with disabilities to relocate and transfer their tax basis to San Mateo County, to move closer to families, jobs and vital services. Revoking Prop. 90 would negatively impact the ability of seniors and persons with disabilities to afford housing and move into the county.
Please join SILVAR, REALTORS® and homeowners in opposing this proposal by sending the message below to the Board of Supervisors before it meets on Tuesday, February 26.
The San Mateo County Board of Supervisors will consider repealing a property tax benefit for seniors and persons with disabilities wishing to relocate to San Mateo County at their upcoming meeting on Tuesday, February 26.
Proposition 90 provides anyone over the age of 55 with relief from Proposition 13 by allowing them to move from one county to another without undergoing a change in their basic property taxes. Proposition 90 stems from Propositions 60 and 110. Under these propositions, if a seller or spouse is over age 55 or if a seller of any age is disabled when their original residence is sold, the seller may transfer the base year value of their home to a replacement primary residence of equal or lesser value within the same county, provided certain conditions are fulfilled. Proposition 90 extended this benefit to seniors and the disabled who move to counties that adopted Proposition 90 rules.
Since Proposition 90 is a “local-option” law, each county has the option of participating. If a county has adopted a Proposition 90 ordinance, it accepts transfers of property tax base assessments from other California counties. If the county that the homeowner is moving from does not have a Proposition 90 ordinance, this does not affect the eligibility of the homeowner. At present, there are only eight counties that have adopted the Prop. 90 ordinance – Santa Clara, Alameda, El Dorado, Los Angeles, Orange, San Mateo, San Diego and Ventura.
In 2011, SILVAR REALTORS® successfully fought an attempt by Santa Clara County Assessor Larry Stone to eliminate the tax benefit for seniors and the disabled in Santa Clara County. Stone wanted the supervisors to eliminate Proposition 90 as a way to increase revenue, but SILVAR REALTORS® and senior residents objected to the proposal. More than 50 members from the SILVAR and the Santa Clara County Association of REALTORS® (SCCAOR) attended the county board of supervisors in June 2011 to oppose the elimination of Prop 90. Several recounted personal experiences with seniors and disabled clients who benefited from the measure, and who otherwise would not have been able to move to the county had the proposition not been in place.
In the end, the Santa Clara County supervisors listened and decided to continue to opt in on Proposition 90. “There is value to it at the personal level. We supported it then, we should support it now,” they said. The supervisors also noted, “It doesn’t feel right to take this away from the people who could use it. In the big picture, it just doesn’t feel right.”
San Mateo County’s seniors and disabled residents will be facing this dilemma when the ordinance is considered at the board of supervisors meeting next week. A majority vote by the supervisors is needed to repeal the proposition.
The Silicon Valley Association of REALTORS® (SILVAR) hailed a rebuttal by the California Association of REALTORS® (C.A.R.) to an opinion editorial piece advocating the elimination of the mortgage interest deduction (MID).
“We are happy that California Association of REALTORS® President Don Faught was able to put the facts out there about the importance of the mortgage interest deduction to all homeowners, especially low- and middle-class families,” said SILVAR President Carolyn Miller.
Doyle McManus, a columnist with the Los Angeles Times, recently wrote an opinion editorial advocating the elimination of the MID. C.A.R. President Don Faught submitted a letter to the editor refuting the op-ed piece, questioning supporting a tax measure that would put a burden on lower- and middle-class families that can least afford it.
In his letter, Faught explained if the MID is eliminated, it would cost the average California taxpayer $3,940 annually, a substantial amount for those who need it the most. In California, 59 percent of taxpayers who claimed this deduction in 2010 earned less than $100,000 a year. The amount is considered not high income in California because home prices are among the highest in the nation.
“Eliminating the deduction would mean fewer home sales, not to mention a drop in other purchases that typically accompany a home sale such as furniture and other retail purchases. Already struggling local governments would see tax revenues fall, and since housing is widely regarded as a key economic driver, our country could be driven back to recession,” wrote Faught.
The MID allows an individual to deduct mortgage interest paid on mortgage debt of up to $1 million. The ability to deduct the interest paid on a mortgage can translate into significant savings at tax time.
Faught referred to a recent C.A.R. survey that found nearly eight in 10 home buyers said the mortgage interest and property tax deductions were “extremely important” in their decision to purchase a home. A Pew Research Center study last year also found 80 percent of Americans believe buying a home is the best long-term investment they can make.
“After all, renting is not the American Dream; homeownership is. For many, the mortgage interest deduction can mean the difference between attaining that dream or not,” Faught’s letter concluded.
Miller said REALTORS® will continue to defend the MID. “The mortgage interest deduction is not a loophole. It is a fundamental building block of equity for homeowners. For aspiring homeowners who don’t have hundreds of thousands of dollars in savings to buy a home outright, tax benefits like the mortgage interest deduction help them begin building their future through homeownership,” said Miller.
Properties have been marketed off the MLS before, but these days, it’s happening more often and creating controversy because inventory is at an all-time low, said Bailey. In fact, today, inventory is at its lowest levels since 2005 and new listings continue to decline. The average days on market (DOM) is now 35 in San Mateo and Santa Clara counties, down 60 percent from 2011.
Robert Bailey, MLSListings Inc. chair, told SILVAR members this week that May 2012 had the highest exclusions of property on the MLS since 2007. Between January and November 2012, off-MLS transactions accounted for 20 percent of total home sales or nearly $1 billion in sales volume. He indicated in Menlo Park alone, during this period 20.32 percent of all home sales were off-market. In Atherton, 31 percent of total sales were off-market.
Bailey said MLSListings does not support private MLSs or MLS clubs because their purpose runs counter to the company’s goal of fostering an environment of cooperation and collaboration. He said while it is not MLSListings’ purpose to define a REALTOR®’s business model, the MLS is a cooperative effort.
MLSListings provides for the exclusion process, has rules regarding it and imposes fines if rules are broken, but it can’t stop it. It is up to REALTORS® to address the dilemma. Bailey asked members to visit the MLSListings website and take a survey on the topic and engage in the discussion. Weekly survey questions are on the Pro homepage at http://pro.mlslistings.com. For a forum for community discussion, visit
http://bit.ly/XBwdv6.
MLSListings received 1,035 responses in the first week of the survey. Findings showed 24 percent of respondents use off-market listings (OML); 34 percent never use OML; and 34 percent said they don’t know about OML. Meanwhile, 64 percent of respondents believe the use of OML is exclusionary or discriminatory, either legally or ethically. Discussions generated interesting comments for and against the OML practice.
Bailey invited members to take part in the survey and discussion. “Let your thoughts be known,” he said.
The MLSListings chair reminded SILVAR members that they own the MLS. “You are the stakeholders. That’s what makes us unique,” said Bailey.
View Bailey’s presentation here.
The PRDS Forms Committee has a revised Supplemental Seller’s Checklist (“SSC”). The revisions are intended to make the form more user-friendly and to assist sellers in making a full and complete disclosure of those material facts impacting the value or desirability of a property. These latest revisions make the form much easier for sellers to understand and use.
SILVAR will be offering a course soon on these revisions and disclosure issues that relate to both the SSC and the Transfer Disclosure Statement (“TDS”). In the meantime, SILVAR REALTOR® members can check out the August 2012 issue of the Silicon Valley REALTOR®, SILVAR’s monthly newspaper, which includes a detailed explanation of the revisions provided by SILVAR board attorney and PRDS Forms Committee member Dave Hamerslough.
PRDS Forms is an extensive line of paper and online forms for residential purchase and sales transactions. These forms are available online free of charge as a member benefit to all SILVAR (Silicon Valley Association of REALTORS®) and SAMCAR (San Mateo County Association of REALTORS®) REALTOR® members. The online version of the forms is an extremely robust and intuitive platform that is far easier to use than other platforms. Created by REALTORS® for REALTORS®, these forms are highly acclaimed, and have been heavily used for over 25 years by listing agents from leading offices in Silicon Valley and the San Francisco Peninsula.
The Standard Forms Committee, which is composed of 25 members from SILVAR and SAMCAR, meets every other week and works very hard to make sure all forms are current and reflective of local practice. The revised PRDS Supplemental Seller’s Checklist is a product of the committee’s work and efforts to continually get educated about recent laws passed and requirements in surrounding areas, take the information and input it into the forms.
REALTOR® members may access the new PRDS SCC form online free of charge by visiting prdsforms.com.
Silicon Valley Association of REALTORS® says ... 