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The business of real estate puts REALTORS® in potentially hazardous situations because a significant part of their work involves meeting with strangers. Every year, real estate agents around the country are threatened, robbed, physically or sexually assaulted while fulfilling the everyday requirements of their jobs. Some even lose their lives.
According to the Bureau of Labor and Statistics, the real estate, rental and leasing occupation has seen an average of 75 deaths a year from 2003 to 2009. There don’t appear to be solid statistics on the number of agents who were victims of specific crimes like sexual assault, non-fatal shootings, beatings, stabbings, robbery and carjacking. The latest highly publicized tragic incidents happened in February 2011. According to news reports, a real estate agent in Ottumwa, Iowa, was assaulted and tied up when she arrived at a home for a scheduled showing appointment. Her attackers then robbed the home. Two months later, in West Des Moines, a 27-year-old agent was fatally shot while working at a model home.
REALTORS® can make adjustments to the way they do business and avoid violent crimes by practicing these general REALTOR® Safety Tips from the National Association of REALTORS® and other sources, so you can avoid being a victim:
- Always meet a client for the first time in the office. Introduce him or her to coworkers and make it clear that they know you are taking him out of the office. Try to take separate cars but if that is not possible you will have slightly more control if you drive. Also, do not meet a client at the property, particularly if he is calling on a yard sign. He will already have had a chance to note if the property is vacant. Don’t identify a property as vacant to a caller, on an ad or sign.
- Get a license plate number and leave it at the front desk. Just explain that it is office policy; a customer who means no harm won’t mind. Leave an itinerary for your house tour with someone in your office.
- Agents are vulnerable when they are walking back to and from their car before or after an open house. Park where you cannot get blocked in. Take a few minutes to make sure you have a clear line of sight to your vehicle. Can you see the front door? Are there trees or shrubbery within 10 feet that can serve as a hiding place? When getting out of the car, keep looking around. When you get to the front door, turn around and walk back — are there places where someone could surprise you?
- The No. 1 place where agents are attacked during an open house is the front door, partly because lockboxes take time to open. If you are alone, turn your back against a wall to avoid being attacked from behind. If you can, work in teams. Sign up your affiliates, such as a home inspector or title officer, to sit the open house with you.
- Never go into certain rooms. When showing visitors around, never go into rooms with no escape routes. These include walk-in closets, bathrooms and laundry rooms, among others. Instead, direct visitors to those rooms.
- Establish your escape routes. Walk around the house and notice how to get in and out of rooms. If there is a fence in the backyard with a gate, unlock the gate for easy exit. As another escape route, open the garage door but lock the door leading to the inside from the garage. Direct clients to the front door with signs.
- Set up for safety. Hang decorative bells behind every outside door that you have unlocked. These will alert you whenever someone enters the house. Carry only what you need — purses go in the trunk of your car before you leave your house, not when you arrive at the open house. Do not bring your laptop to an open house. Not only can it be easily stolen, but signing on to someone’s unsecured wireless network can open you up to identity theft.
- Always carry a cell phone where it is easily accessible (not in the purse you left in the car). Make sure emergency numbers are programmed into the speed dial.
- When showing property to strangers, follow rather than lead them through the house. Don’t let them get between you and the door. Never, ever turn your back on a prospect. If a man says, “Ladies first,” to a female agent, the agent should say something like, “You are such a gentleman, thank you. But I really want you to see this home, and if I can direct you where to go, I think you’ll gain a further appreciation for this home.”
- Go with your gut. If something doesn’t feel right, if anything raises the hair on the back of your neck, escape the situation immediately. Until you really know a customer, remain vigilant regardless of the gender, appearance, dress, or charm.
For more safety tips, visit NAR’s REALTOR® Safety Web site at www.REALTOR.org/Safety.
- Left to right: Panelists Tim Anderson, Phyllis Carmichael, Ethel Green, Gary Herbert, Jim Nappo, and Los Altos/Mountain View District Chair Denise Welsh (standing), who served as moderator.
Veteran REALTORS® with experience ranging from 26 to 36 years shared their perceptions on how much the real estate business has changed over the years at last week’s Los Altos/Mountain District tour meeting. Forming the panel were Tim Anderson (Alain Pinel Realtors), Jim Nappo (Alain Pinel Realtors), Ethel Green (Intero Real Estate), Phyllis Carmichael (Coldwell Banker) and Gary Herbert (Coldwell Banker).
The panelists said technology has been the big business changer, especially in the last 10 years. Technology has contributed to the ease of doing business and quicker response time. Tools available to help REALTORS® provide better service to clients include emails, websites and virtual tours, and smartphones with the ability to send real time data to their clients.
At the same time technology has also brought new demands on REALTORS®. Buyers are now more educated than they used to be and majority do research on the Internet first before finding a home and an agent. As a result, agents show buyers fewer homes, but they are also expected to be very well-versed about the market.
The business has also become more complicated with pages of documents to wade through. Carmichael can still remember when a sale merely required a one-page document, an agreement among the agents, buyer and seller, with no lawyers involved. “We hand delivered everything and spent much time on the road, driving from Blossom Valley all the way to San Carlos, just to deliver the one-page document,” she added.
The panelists said they also feel real estate has become less of a relationship business. “A lot has been lost because people don’t talk to each other anymore. They get emails and this can be a positive as well as a negative,” said Nappo.
What hasn’t changed is they continue to take education courses, network with one another, and still see value in open houses and keeping in touch with their clients. While cell phones and computers have become valuable tools, Herbert and the others insist the best way to help people understand the market is to “pick up the phone and call them, talk to them face to face.”
How different is the local market today? “It’s fascinating. Everywhere, it’s a tailspin, but demand continues to be overwhelming here and for good reasons – the schools and jobs,” commented Anderson.
Green was just as upbeat and said, “We are fortunate because there is no more land here. If you are here for a long time, you will get equity in your house because there is just no more land in this area.”
The Carbon Monoxide Poisoning Prevention Act of 2010 became effective on July 1 and requires every existing single-family residence having a fossil fuel burning heater or appliance, fireplace, or an attached garage to install or plug in a carbon monoxide device. Other existing dwelling units will need to have the devices installed by January 1, 2013.
A carbon monoxide detector is a relatively inexpensive device, similar to a smoke detector that signals detection of carbon monoxide in the air. It can be battery powered or a plug-in device with battery backup. The following FAQs on what homeowners should know about the new carbon monoxide law are provided by the Silicon Valley Association of REALTORS® from information from the California Association of REALTORS®, in accordance with the California Health and Safety Code.
How many devices and where do I place them in the home?
It is recommended that for minimum security, a CO alarm should be centrally located outside of each separate sleeping area in the immediate vicinity of the bedrooms, at least six inches from all exterior walls and at least three feet from supply or return vents.
For new one-to-two family dwellings and townhouses not more than three stories and where work requiring a permit for alterations, repairs or additions exceeding $1,000 in existing dwellings units, a CO detector must be installed outside of each separate sleeping area in the immediate vicinity of the bedroom(s) and on every level, including basements within which fuel-fired appliances are installed and in dwelling units that have attached garages.
Are there any penalties for noncompliance with this law?
A violation is an infraction punishable by a maximum fine of $200 for each offense. However, a property owner must receive a 30-day notice to correct first. If an owner who receives such a notice fails to correct the problem within the 30-day period, then the owner may be assessed the fine.
Can a buyer rescind the sale if the dwelling doesn’t have the necessary carbon monoxide detectors?
While the Real Estate Transfer Disclosure Statement (TDS) has been amended to incorporate the seller’s certification that, by close of escrow, the seller will be in compliance with existing requirements for CO detector, smoke detector and water heater bracing, the TDS specifically states installation of a CO detector, among other appliances and devices, is not a precondition of sale or transfer of the dwelling.
Does a seller have any special carbon monoxide disclosure obligations?
Disclosure obligations are satisfied when providing a buyer with the TDS. If the seller is exempt from giving a TDS, the law doesn’t require any specific disclosures regarding CO detector devices.
Do landlords have any special obligations regarding carbon monoxide detectors?
All landlords of dwelling units must install carbon monoxide detectors. The CO device must be operable at the time that a tenant takes possession. However, the tenant has the responsibility of notifying the owner or owner’s agent if the tenant becomes aware of an inoperable or deficient CO device. The landlord is not in violation of the law for a deficient or inoperable CO device if he or she has not received notice of the problem from the tenant.
If the California Building Standards Commission adopts or updates building standards relating to carbon monoxide devices in the future, is the owner required to install the newer device?
Yes, when the owner makes an application for a permit for alterations, repairs, or additions to that dwelling unit with the cost exceeding $1,000.
For several months the National Association of REALTORS® has been working with the Federal Trade Commission (FTC) to minimize the potential impact on real estate professionals who assist financially distressed clients obtain short sales. On July 7, NAR President Ron Phipps met with FTC Commissioner Jon Leibowitz to further highlight the importance of this issue to REALTORS®. In a statement issued today, the FTC announced it will not enforce provisions of the Mortgage Assistance Relief Services (MARS) Rule against real estate brokers and their agents who assist financially distressed consumers in obtaining short sales from their lenders or servicers. This is a substantial victory for REALTORS®.
The statement says as a result of the stay on enforcement, these real estate professionals will not have to make several disclosures required by the Rule that, in the context of assisting with short sales, could be misleading or confuse consumers. As more and more American homeowners seek short sales, it is especially important that the Rule not inadvertently discourage real estate professionals from helping consumers with these types of transactions.
The MARS Rule was issued pursuant to authority granted by Congress in 2009. The issuance of the Rule followed numerous FTC and state enforcement actions against companies that claimed to be able to obtain from consumers’ mortgage lenders or servicers a loan modification or other relief to avoid foreclosure. The Rule covers companies or individuals, among others, who assist consumers in obtaining approval of a short sale from their lender or servicer.
A short sale occurs when a home is sold for an amount less than the balance owed on the mortgage loan, and the lender or servicer agrees to accept the proceeds of the sale instead of pursuing foreclosure. Short sales can benefit consumers by allowing them to escape from a mortgage that they cannot afford, while avoiding foreclosure. Many real estate professionals assist distressed homeowners by providing both traditional services associated with selling their homes (e.g., listing the property) and working to seek lender or servicer approval of a short sale.
The MARS Rule requires companies offering mortgage assistance relief services to disclose certain information to consumers about the services they provide, bans collection of advance fees, and prohibits false or misleading claims. After the Rule went into effect, a number of real estate professionals who help consumers with short sales raised concerns about complying with the Rule. These professionals pointed out that some of the required disclosures could confuse consumers or could be inaccurate in this context.
At this time, the Commission has announced that it will not enforce most of the provisions of the MARS Rule against real estate professionals who are engaged in obtaining short sales for consumers. The stay applies only to real estate professionals who: 1) are licensed and in good standing under state licensing requirements; 2) comply with state laws governing the practices of real estate professionals; and 3) assist or attempt to assist consumers in obtaining short sales in the course of securing the sales of their homes. The stay exempts real estate professionals who meet these requirements from the obligation to make disclosures and from the ban on collecting advance fees. These professionals, however, remain subject to the Rule’s ban on misrepresentations.
The Commission stated that the stay does not apply to real estate professionals who provide other types of mortgage assistance relief, such as loan modifications. In addition, the FTC will continue to enforce the Rule and Section 5 of the FTC Act, which prohibits unfair and deceptive practices, against all other providers of mortgage assistance relief services.
The Commission vote approving the MARS Rule enforcement policy was 5-0. It can be found on the FTC’s website and as a link to this press release. More information about the Rule can be found here, and information about consumers’ mortgage rights can be found here.
For additional information on the MARS Rule you can visit http://www.realtor.org/topics/mars
Joe Han, managing broker for Keller Williams Realty in Cupertino listens to a question before directing it to his company's panel of Asian REALTORS® (left to right) Harvey Young, Mimi Wang, Niru Pujare and Grace Pak.
According to 2010 U.S. Census 2010 data, Asian Americans were the fastest growing ethnic or racial group in California, rising 31.5 percent since 2000. In fact, Cupertino’s proportions of Indian and Chinese Americans are the highest in Santa Clara County. This is why Joe Han, managing broker with Keller Williams Realty in Cupertino, decided to introduce SILVAR members to a panel of Asian American REALTORS® from his office. At a Cupertino/Sunnyvale District tour meeting this month, the panel with Harvey Young, who is Chinese American; Mimi Wang, Vietnamese American; Niru Pujare, Indian; and Grace Pak, Korean American, shared their respective backgrounds, the role their culture plays in business, and practical tips to use when dealing with Asian American clients.
Han explained the Asian culture is probably the most difficult culture to understand because it has many subgroups. While the subgroups share some general traits, they also have their own distinct values and beliefs.
Traits shared by Asians are their sense of courtesy and hospitality. They value social relationships and form them before business relationships. Young said it’s a way of developing trust between business partners. In the Asian culture, trust means everything in business. With Indians trust goes so far that most Indian clients will only work with people they know, so referral is always best, Pujare noted.
Asians are very family-oriented; extended family is considered just as important. When a couple brings many family members to see a house, it is just as important to pay attention to them, especially the elders. It is also common for parents to financially contribute toward the purchase of a home for their children, said Wang. In some instances, the parents will have the final say.
Greeting clients can differ across the Asian subgroups. Pay attention to receiving and presenting business cards. Hand your business card and receive their business card with both hands while facing them. Never write on the business card or place the card in your back pocket.
Chinese Americans shake hands, but Vietnamese and Koreans bow to the elderly and make no eye contact. Pujare said Indian clients from the city may shake a woman’s hand, but if they come from a small town, they are more conservative and will not shake hands with a woman.
Young said when it comes to negotiation and decision making, among Chinese Americans the person making the most money usually makes the decisions. Wang said among the Vietnamese the husband makes the decisions, but the wife and parents have a big impact. Pujare said in the Indian culture the wife chooses the home, but the husband makes final decisions regarding money.
Asians have a strong sense of faith, but are also superstitious and pay attention to numbers, colors, and the principles of Feng Shui. When presenting a gift, a practice in many Asian cultures, do not give knives, a clock or scissors because these items signify death, cautioned Wang. Pak said Koreans will say no when initially presented with a gift, but continue to offer until the client takes it. Also, when dining with clients, Koreans take the lead from the eldest in the group.
Colors do not have the same meaning to all Asians. To the Chinese, the color red means good luck; to Koreans, it means mourning or death. White for most Asians signifies death and is worn at funerals, while black can be worn to weddings. The color purple is not worn to happy events because it is a sign that happiness “won’t last.”
The numbers 3 and 7 are lucky for Koreans and 9 means long life, so pricing an item $99.99 is good, said Pak. Young said the Chinese believe 8 is a lucky number and 4 is an unlucky number because the pronunciations of these numbers sound like words that mean wealth and death, respectively. He said many Chinese avoid the digit 4 in their phone number and home address, so don’t be surprised if they ask you to change a house number or a document that has this page number.
Pujare said Asian Indians don’t attach meaning to colors and numbers, but they are particular about direction. Don’t bother showing Indian clients a house that faces south; if it faces east then that’s all right, she said. Pak said Koreans are amenable to having a living area in the south, but they will not like a home if the stairway is by the bathroom, or if the stove is across from the sink because “fire and water don’t mix.”
See more tips in Han’s presentation “Better Understanding of Asian American Cultures.”
REALTORS® in Santa Clara County oppose a move to rescind a benefit which for more than two decades has allowed seniors and the disabled from other counties to take advantage of a tax incentive to relocate to the county. Rescinding this benefit provided by Proposition 90 could hurt seniors wishing to move and buy a home in the county.
Under Proposition 60 and 110, 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. Prop 90 extended this benefit to seniors and the disabled who move to counties that adopted Prop 90 rules.
The Santa Clara County Assessor’s Office wants the board of supervisors to eliminate this important senior tax benefit and rescind Prop 90 transfers as a way to increase revenue. Proponents admit any revenue increase would be “slight” at best. REALTORS® say a minimal increase in revenue does not outweigh the economic benefits these transactions bring to the county.
“Given the limited number of affected parcels, it is not a business or financial decision that motivates REALTORS® to speak out on this issue. We support preserving Prop 90 for the benefits it brings to the county and for qualified seniors and the disabled,” says Gene Lentz, president of the Silicon Valley Association of REALTORS®. “The law provides an incentive for seniors to move into smaller, less expensive homes without being penalized.”
Prop 90 eases the property tax burden that otherwise could prevent seniors from moving into smaller residences, so they can be closer to children and grandchildren who reside in Santa Clara County, says Lynn Grandi-Hill, whose parents moved from San Rafael to Willow Glen in 1989.
“It was wonderful having them close by. … My children got see them more often than they would have had they stayed in San Rafael,” says Grandi-Hill. “As much as families can stay connected and together, Prop 90 is a positive thing for society in general”
Prop 90 counteracts the “lock-in effect” created by Prop 13, which slowed the housing turnover and supply across the state. “Prop 90 helps seniors wanting to live in the county. By living here they, in turn, help the county’s economy since they will buy their groceries here, shop here, buy their gas here. They are a positive economic influence,” says Mike Sibilia, president of the Santa Clara County Association of REALTORS®.
A Southern California senior who moved to Santa Clara County to be close to his children after his wife died, says Prop 90 was a major factor in his decision to buy a house here. “I considered a number of options and I can tell you Prop 90 was big factor in my decision,” he says. “People considering rescinding it are short-sighted. It was a big savings for me, but people like me who move here also spend money here, so the county benefits too. “
Rescinding Prop 90 would reduce the number of qualified buyers considering a home in the county. Seniors are more likely to move and buy a new home once they qualify for Prop 60 and 90 benefits. A California Association of REALTORS® survey indicates 52 percent of Prop 90 transactions would not have taken place if the measure was not in effect.
This week REALTORS® from across the nation convened in our nation’s capitol for the National Association of REALTORS® Mid-year Business meetings and visits with members of Congress. SILVAR members joined their fellow REALTORS® in Washington, D.C. to take part in NAR business meetings and personally meet with their representatives in Congress.
Along with members from the San Mateo, Santa Clara, Santa Cruz County Associations of REALTORS®, SILVAR members met with both U.S. Representatives Anna Eshoo and Mike Honda during the meetings. The SILVAR delegation included SILVAR President Gene Lentz, President-elect Suzanne Yost, Region 13 Caucus Chair Jim Hamilton, NAR Directors David Barca, Jeff Barnett, Judy Ellis, Susan Tilling, C.A.R. Directors John Tripp, Aaron Wheeler, and Federal Political Coordinator and SILVAR PAC Trustee Carole Feldstein.
In meetings with members of Congress, REALTORS® focused on five core issues important to homeowners and the housing industry. Below are the issues that were brought to the attention of our legislators.
The Future of the Secondary Mortgage Market
The GSEs, though they have been in conservatorship for almost three years, remain critical to ensuring mortgage market liquidity. Currently, estimates of GSE loan volume range as high as two-thirds of mortgage loans. There is currently a push in Congress to eliminate the GSEs. Without a viable replacement for their secondary mortgage market mission, it will mean severely restricted mortgage capital and higher costs for qualified, creditworthy borrowers. The reduction in mortgage liquidity will exacerbate downward pressure on home prices ultimately reducing the home values for existing homeowners.
REALTORS® urged that the federal government must have a continued key role in the secondary mortgage market in order to ensure that there is capital for mortgage lending in all mortgage markets under all market conditions. California’s jumbo market over the last four years has demonstrated that a purely private market is incapable of meeting all the needs of home buyers and supplying a stable flow of capital. Reform of the secondary mortgage market, in particular Fannie Mae and Freddie Mac, should be comprehensive and undertaken methodically.
Access to Affordable Mortgage Products
The current loan limits for high-cost areas are set to expire on September 30, 2011. Reverting to the statutory limits will create a decline in liquidity and hurt our nation’s economic recovery. Many argue that the loan limit increases help only higher cost areas, but this is not the case. Reverting to the statutory limits will reduce limits in 619 counties and 41 states and the District of Columbia. The average decline in loan limits will be more than $58,000.
The Dodd-Frank Act requires mortgage securitizers to retain 5 percent of the risk unless the mortgage is a qualified residential mortgage (QRM). The proposed rule issued by six federal regulators would require families to make a 20 percent down payment and meet other stringent requirements. The QRM definition is extraordinarily important because it will determine the types of mortgages that will generally be available for borrowers for the foreseeable future. Weak underwriting and toxic mortgages are the main cause of mortgage defaults, not well-underwritten mortgages with affordable down payments.
REALTORS® urged their members of Congress to oppose any decrease to FHA and GSE loan limits. Maintaining the conforming loan limit calculation and caps in high-cost areas would allow the local economic climate of each high-cost state to dictate the necessity of an increase in its conforming loan limit. Maintaining the current conforming loan limits in high-cost areas would also give everyone equal access to the secondary market.
REALTORS® also asked that members of Congress submit comments to the six regulators during the comment period and voice concern that the proposed Qualified Residential Mortgage (QRM) rule would deny otherwise creditworthy Americans affordable financing while further concentrating the lending industry in the mega-banks that are already “too big to fail.”
Preserving Home Ownership Tax Benefits
In December 2010, the President’s National Commission on Fiscal Responsibility and Reform (best known as the Deficit Commission) issued a report identifying tax and spending changes designed to significantly reduce the deficit over the next decade. That Commission recommended different tax options. At least three different approaches were included:
- Eliminate all “tax expenditures” (deductions, exclusions, credits).
- Eliminate the mortgage interest deduction (MID) for second homes and reduce the amount of allowable mortgage debt from $1 million to $500,000.
- Convert the deduction to a 12 percent tax credit.
Since the report was issued, REALTORS® have aggressively reminded Congress that any change to the tax rules that apply to home ownership would disrupt the market and cause home values to further decline. Both Rep. Eshoo and Rep. Honda were thanked for co-sponsoring H.Res. 25, which supports the existing the mortgage interest deduction.
REALTORS® expressed any change to the MID or other home ownership provisions will slow the housing recovery. Tax rates have a way of creeping up over time. Since 1986, when the rate was 28 percent, the top rate has been as high as 39.6 percent and is presently 35 percent. Reducing, eliminating or otherwise changing the value of the mortgage interest deduction will cause the value of housing to drop even more, perhaps by as much as 15 percent in some markets. This decline would be in addition to the 30 percent decline that some markets have experienced.
Short Sales
Too often, short sales are still a story of delay and unrealistic lender views of current home values, resulting in the potential buyer canceling the contract and the property going into foreclosure. Even if successful, the process usually takes many months and countless hours and often requires re-marketing because buyers lose patience and terminate the contract. Streamlining short sales will reduce the amount of time it takes to sell the property, improve the likelihood the transaction will close, and reduce the number of foreclosures. This will benefit lenders, sellers, buyers, and communities.
REALTORS® support H.R. 1498 to require servicers to decide whether to approve a short sale within 45 days of completion of the short sale request. A hearing on H.R.1498 will shine a light on the short sales issue and identify ways to make short sales work better. Delays in approving requests for a short sale remain a significant impediment to this foreclosure avoidance option. Banks are losing more than they have to because they lose much more when selling homes after foreclosure than they would if they approved reasonable short sales.
Affordable and Available Property Insurance
Floods claimed more lives and property than any other natural disaster in the U.S. over the last century. Unable to ignore the rising cost to taxpayers of disaster payments for uninsured properties or the lack of a private market for flood insurance, Congress created the NFIP in 1968. Today, 5.6 million property owners rely on the program in 21,000 communities where flood insurance is required for federally related mortgages. Since September 2008, Congress has approved nine NFIP extensions and allowed five lapses. During the June 2010 lapse, 47,000 home sales were delayed or cancelled, according to NAR survey data. Real estate markets require certainty to make the long-term investments that are vital to the U.S. economic recovery.
REALTORS® urged Congress to reauthorize the National Flood Insurance Program (NFIP) for at least five years and end the uncertainty of extensions and shutdowns. NAR supports provisions of H.R.1300 (Biggert, R-IL) to reauthorize NFIP through 2016 but oppose its privatization pilot program which would reduce the program’s risk pool and long-term viability. NAR opposed H.R. 435 (Miller, R-MI) to sunset the NFIP by 2013 and authorize interstate compacts.
Diversity doesn’t only encompass different cultures; the term also refers to different generations. People are living longer, so society is now composed of more generations. Each generation has different traits and communicates differently. A REALTOR® needs to have a keen understanding of each generation in order to relate to clients and other agents. The method of communicating or marketing to each generation can affect a transaction, according to Tracey McNeely, a REALTOR® with Keller Williams in Cupertino.
McNeely shared information about the different generations at last week’s Cupertino/Sunnyvale District tour meeting. She identified the following four generations in today’s society and shared their general characteristics:
1. Veterans, born 1922-45
Respect for authority, conformers, disciplined and never buck the system, traditional nuclear family, savers, put away cash, communicate one-to-one, work hard, duty before fun, prefer to communicate via formal memo or mailed letter
2. Boomers, born 1946-64
Optimistic, involved, casual (“Call me any time.”), many disintegrating nuclear families, workaholics, grew up with the rotary and touch phone, “buy now, pay later” mentality, crusade for causes, question authority, their lives are broadened beyond the scope of the family, prefer to communicate in person
3. Generation X, born 1965-1980
Skeptics, like a lot of fun and informality, many grew up as latchkey kids, touch tone phone – it’s perfectly fine with them to leave messages on their answering machine, screen calls (“Don’t call me after work.”), like to eliminate tasks, self-reliant, have no patience, like immediate action, like to communicate directly
4. Generation Y Millennials, born 1981-Present
Filled with realism, confident, love extreme sports for fun, product of merged families similar to the TV show “Modern Family,” very adept with cell phones, entrepreneurial, multi-taskers, tenacious, oriented, tolerant, communicate via voicemail, email, Facebook, Skype, text messaging, like to chat online.
“Remember, when you have another agent on the other end, try to look at their generation and adjust your way of communicating,” McNeely told members.
In recognition of Fair Housing Month in April, REALTORS® continue to reaffirm their commitment to equal access to housing and home ownership. Signed into law in 1968 and amended in 1988, the Fair Housing Act prohibits housing discrimination on the basis of race, color, religion, sex, disability, familial status and national origin.
“Fair housing is not an option; it’s the law,” said Gene Lentz, president of the Silicon Valley Association of REALTORS® . “REALTORS® are on the ‘front lines,’ working with buyers and sellers to see that they enjoy the benefits of a housing market free from discrimination.”
To mark Fair Housing Month, SILVAR on April 8 offered the National Association of REALTORS® ’ At Home with Diversity certification course for all REALTORS® and affiliates. The course teaches real estate professionals how to increase their sensitivity and adaptability to future market trends and how to transact business across cultures, generations and other differences. More than 25,000 REALTORS® have completed the program.
“People have a right to live wherever they can afford to live,” Lentz said. “Fair housing means opening those doors for everyone in this country whose goal it is to own a home.”
Lentz indicated Santa Clara County is among the most diverse counties in the U.S. The 2010 U.S. Census figures show the county grew by nearly 6 percent in the past decade. Much of the growth in population is attributed to a gain of about 140,000 Asians and 76,000 Latinos, yet minority home ownership comprises a very low percentage of the population.
“Diverse neighborhoods and schools strengthen communities, and minority population growth is vital to sustaining housing markets,” said Lentz.
Lentz said the home seller, the prospective home buyer and the real estate professional all have rights and responsibilities under the law.
A home seller or landlord is 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 their agent to convey any limitations in the sale or rental because the real estate professional is also bound by law not to discriminate.
Buyers or renters have the right to expect that housing will be available without discrimination, including the right to expect housing in their price range made available 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; and freedom from harassment or intimidation for exercising their fair housing rights.
People who believe they have experienced discrimination may file a complaint with the Department of Fair Employment and Housing (DFEH). Complaints must be filed within one year of the alleged discrimination.
The current continuing resolution providing funding for government operations is set to expire today. If legislation to extend funding is not signed into law after today, the federal government could shut down. This means many, but not all government programs, including some that impact federal housing and mortgage programs, could grind to a halt as early as tomorrow, April 9. While the true impact of a shutdown is unclear until it actually begins, below is a synopsis of how federal housing programs will likely operate in the event of a shutdown.
The Office of Management and Budget requires each agency to have contingency plans in place and reportedly has instructed agencies to not provide specific information on impacted operations.
Federal Housing Administration
FHA cannot offer endorsements for any new loans in the Single Family Program and cannot make commitments in the Multi-Family Program in the event of a shutdown. FHA will maintain operational activities, including paying claims and collecting premiums. Management & Marketing Contractors managing the REO portfolio can continue to operate.
VA Loan Guaranty Program
Lenders may continue to process and guarantee mortgages through the Loan Guaranty program in the event of a government shutdown.
Internal Revenue Service
Should the federal government shut down, the IRS cannot process federal income tax returns or issue refunds (but it can deposit tax payments). Consumers who were expecting to use their tax returns as part of the down payment for a home purchase will temporarily not have access to these refunds.
Flood Insurance
The Federal Emergency Management Agency confirmed that the National Flood Insurance Program will not be impacted by a government shutdown.
Rural Housing Programs
For U.S. Department of Agriculture programs, essential personnel working during a shutdown do not include field office staff who typically issue conditional commitments, loan note guarantees and modification approvals. Thus, lenders will not receive approvals during the shutdown. If the lender has already received a conditional commitment from the Rural Development office, then the lender may proceed to close those loans during the shutdown. A conditional commitment, which is good for 90 days, is given to a lender once a USDA underwriter approves the loan. If a commitment was already issued, the funds were already set aside, the lender may close the loan at his leisure. If Rural Development has not issued a conditional commitment, the lender must wait until funding legislation is enacted before closing a loan.
Government Sponsored Enterprises
Fannie Mae and Freddie Mac will continue operating normally, as will their regulator, the Federal Housing Finance Agency.
Treasury
No official word as of yet, but the Making Home Affordable program, including HAMP (Home Affordable Modification Program) and HAFA (Home Affordable Foreclosure Alternatives), may not be affected because the program is funded through the Emergency Economic Stabilization Act, which is mandatory spending, not discretionary.
For more information, visit www.realtor.org.
Silicon Valley Association of REALTORS® says ... 