|
REALTOR'S® REPORT |
|
Published by the Knoxville Area Association of REALTORS® November 2009 |
KAAR
The purpose
of the Knoxville Area Association of REALTORS® is to unite and serve its
members and to enhance the ability and opportunity of its members to conduct
their business ethically, professionally, and successfully and to promote the
preservation of the right to own, transfer and use real property.
Getting
the Message Out!
- Use a REALTOR®
♦ REALTORS® help their
customers and clients navigate the transaction from showing to closing.
■ Show property to buyers.
■ Handle setting appointments for sellers.
■ Handle writing, presenting and negotiating the offers.
■ Ensure that the proper time frames established in the contract
are met for their customers and clients.
■ Answer any questions the customers and clients might have
relative to the transaction.
♦ REALTORS® add value to the
transaction.
■ Because this is their profession, REALTORS® know how to work with
individuals, use tools necessary to their profession, and have the ability to
make the transaction run more smoothly
and in a shorter amount of time.
■ REALTORS® know the neighborhoods and the areas they sell because
we live there!
♦ REALTORS® are a trusted
resource for the consumer.
■ As a member of the largest professional trade association in the
nation, REALTORS® bring the strength of the Code of Ethics to every transaction
■ REALTORS® are committed to obtaining education to remain at the
top of their chosen profession which enables them to be more effective in their
daily business practices.
■ REALTORS® take care of the details because this is their
profession and responsibility.
● Now is the time to buy! Or
Why would you want to wait?
♦ Interest rates can only go in one direction. They are still at historic lows. Waiting for interest rates to rise will add
onto the money you will pay out in the short and long term.
♦ The $8,000 tax credit is available for first time homebuyers or those
who have not purchased a home in the past three years. Talk to your local lender now, as these must
be closed prior to December 1, 2009.
♦ Renters don’t get the benefit of the Mortgage Interest Deduction
that homeowners receive. This is a real
benefit!
♦ The selection of homes on the market allows for countless choices
for buyers. There is a home for everyone
who wants one!
♦ As the market improves, the price of housing will also increase.
Feel free to use these as you talk
with the press or explain the benefits of using a REALTOR® in any real estate
transaction!
Extending the $8,000 Tax Credit for
Homebuyers
In
mid-October, Ron Phipps appeared before the Congress to discuss issues that
affect the real estate industry:
NAR: Housing Tax
Credit Is Working
Consumers are just starting to see the first glimmers of a bright future for
the housing market and the overall economy. It’s up to Congress to make that
glimmer a reality by building on the momentum created by the $8,000 homebuyer
tax credit. That's what National Association of REALTORS® First Vice President
Ron Phipps, told the Senate Banking, Housing and Urban Affairs Committee
Tuesday during a hearing on “The State of the Nation’s Housing Market.”
One of the key ways to do that is for Congress to extend the home buyer tax
credit, “The data on the present home buyer tax credit show that the credit has
had its intended impact—sales have jumped in recent months to a projected 5.1
million for the year and housing inventory has been trimmed, thus stabilizing
home prices noticeably,” Phipps said. He also pointed out that each home sale
generates approximately $63,000 in additional economic activity, providing a
tremendous economic boost to the national economy.
“But it is a fragile recovery, and now is the time to build on home sales
momentum by extending the tax credit throughout 2010 and expanding it to all
home buyers,” he said. The present credit, due to expire on November 30, cannot
help new purchasers now who write a contract today—they won’t be able to close
before the deadline, and will lose out on the credit, said Phipps. “Without
congressional action now, the market and our national economy may freeze
again—possibly as soon as this month.”
Make Loan Limits Permanent
Phipps called upon Congress to take action on a number of additional fronts to
strengthen the recovery. First, make the FHA and Fannie Mae/Freddie Mac loan
limits permanent; these are set to expire on December 31. “Maintaining current
loan limits would ensure that families have access to low-cost financing to
purchase homes and can refinance problematic loans into safer, more affordable
mortgages,” Phipps said.
Secondary Mortgage Markets
In addition, Congress should continue the federal government's involvement in
the secondary mortgage market. “Without the government’s involvement in the
secondary mortgage market, market participants will have no incentive to reach
out to lower-income, creditworthy consumers. We must ensure that the housing
market works in all markets and at all times, and that mortgage capital is
provided to all potential and qualified purchasers in a way that promotes
sustainable homeownership,” said Phipps.
If you have
not already sent a letter to your Senators and Representatives, please take a
moment to click on this link. Register,
if you aren’t already, sign in, and then click on the “Calls for Action” button
on the right of the page. Then click on
the “CALL FOR ACTION: Tell Congress to Extend and Expand the Home Buyer Tax
Credit!” to send a letter supporting the extension of the tax credit in 2010 to
ALL homebuyers! These emails and
Calls-For-Action are incredibly important to you and your clients and
customers!
REALTORS®
Designate November as REALTORS® Designation Awareness Month
The
NATIONAL ASSOCIATION OF REALTORSÒ (NAR) is pleased to announce the
arrival of REALTORÒ Designation Awareness Month. NAR
established November as an important month in which to encourage its members to
Keep It In The Family by starting, completing or continuing an official
NAR-endorsed designation program through NAR or one of its affiliates.
In today’s
market, continuing education is the best way to stay ahead of the
competition. Now more than ever,
successful agents must keep current on issues, involving technology, changing
legalities, and many other central components of the business. NAR and its nine Institutes, Societies and
Councils offer advanced education designation and certification programs to
help members remain up-to-date in such a dynamic environment. Although other designations exist, only these
carry an official NAR endorsement. Now thanks to NAR’s Right Tools, Right Now
initiative many high-value online education courses are being offered at
greatly reduced prices at REALTOR® University.
REALTORSÒ who
pursue professional designations have a distinct competitive edge as a result
of their increased expertise and marketability. Based on the 2009 NAR Member
Profile survey data, the median income of REALTORS® with no designation was
$28,400, and the median income of those with at least one designation was
$55,700. The difference between the two is $27,300.
The
NATIONAL ASSOCIATION OF REALTORSÒ and the Knoxville Area Association
of REALTORS® strongly encourage its mutual members to increase their
professional image, marketability, productivity, and income through the
pursuance of a designation or certification program. Click here
for a list of NAR designations.
NAR’s Podcast on Short Sales
The NAR has
put some really good information onto Realtor.org regarding short sales, and
has also had several good articles in the REALTOR®
Magazine. Below is a hyperlink to a
short sales podcast done by President Charles McMillan and President-Elect
Vicki Cox Golfer. She gives you five
tips to help in short sales.
http://www.realtor.org/about_nar/presidents_report/_podcast_archive/mcmillan_shortsale_20091006
At
Realtor.org (http://www.realtor.org/realtors/basics_short_sales)
we copied the following information:
What
is a short sale? A short sale is a transaction in which the lenders,
or lenders, agree to accept less than the mortgage amount owed by the current
homeowner. In some cases, the difference is forgiven by the lender, and in
others the homeowner must make arrangements with the lender to settle the
remainder of the debt.
Why
is the number of short sales rising? Due to the
recent economic crisis, including rising unemployment, and drops in home prices
in communities across the nation, the number of short sales is increasing.
Since a short sale generally costs the lender less than a foreclosure, it can
be a viable way for a lender to minimize its losses.
A short sale can also be
the best option for homeowners who are “upside down” on mortgages because a
short sale may not hurt their credit history as much as a foreclosure. As a
result, homeowners may qualify for another mortgage sooner once they get back
on their feet financially.
What
challenges have short sales presented for REALTORS®?
The rapid increase in the number of short sales, and the short sales
process itself present a number of challenges for REALTORS®. Major
challenges include:
- Limited experience - Many REALTORS® are new to the
short sales process; a difficulty which is compounded by many lenders'
lack of sufficient and experienced staff to process short sales. Even if
the REALTORS® are experienced, most servicers are under-staffed and still
not adequately trained, making negotiating a short sale particularly
difficult.
- Absence of a uniform process
and application - Currently, both short-sales documents and processes are
lender-specific, making it very difficult and time-consuming for REALTORS®
to become knowledgeable and efficient in facilitating these
transactions.
- Multiple lenders - When more than one lender is
involved, the negotiations are much more difficult. Second lien holders
often hold up the transaction to exert the largest possible payment, in
exchange for releasing their lien, even though in foreclosure they will
get nothing.
As a result of these
challenges our members have reported difficulties with: unresponsive lenders;
lost documents that require multiple submissions, inaccurate or unrealistic
home value assessments, and long processing delays, which cause buyers to walk
away.
What
is being done to address or eliminate these challenges?
On May 14, 2009, the Obama Administration announced its upcoming
Foreclosure Alternatives Program. Among other things, the new program:
- Establishes financial incentives for servicers,
sellers, and second lien holders to encourage the completion of short-sale
transactions.
- Requires that a timeline, of no fewer than 90 days, be
set to allow a homeowner to sell a home, without threat of foreclosure
action.
- Requires the short sale agreement to specify reasonable
and customary real estate commissions and costs to be deducted from the
sales prices. (The servicer must agree not to negotiate a lower commission
after receiving an offer.)
- Will provide standardized documents, including
short-sale agreements and offer acceptance letters.
The NAR has also announced a new
certification called the Short Sale and Foreclosure Resource Certification
(SFR). The qualifications to receive
this certification are:
- Be a member in good standing of
the National Association of
REALTORS®
- Complete a qualifying core
course. Choose ONE of the
following:
- REBAC’s Short Sales and Foreclosures Course (course outline)
One day in length
Available in classroom
Online version will be available November 2009, but at this time has no Tennessee CE
*The cost of the online course is $92.00 and will take approximately 6 hours to complete.
Find courses at www.CourseCalendar.com.
- CRS 111: Short Sales and Foreclosures: Protecting Your Clients’ Interests
One day in length
Available in classroom
Online version available at the end of 2009
Find courses at www.crs.com. - Complete three 1-hour Webinars
available free of charge.
Click here to view Webinars. - Submit application - Download
application here (PDF).
• Send completed application to SFR@realtors.org
• $175 application fee - (waived through December 31, 2009)
Take
advantage of the certification now, but more importantly, take the education
for the knowledge you will have to enable you to be of better assistance to
your clients and customers on either side of the short sale transaction!
REALTOR®
University Webinars
The NAR has
put up a relatively new site for you to be able to access webinars on all kinds
of real estate topics given by some highly respected instructors and mentors in
the real estate industry. Here is a
shortened hyperlink to this site: http://tinyurl.com/qroqj9
Some of the
webinars have an expense (but no CE) attached to them. They would be worthwhile
to all who need more knowledge on a given subject. Most of these webinars are about 60 minutes
in length (hence no CE since the TREC only approves education for credit that
is a minimum of two hours in length). Occasionally they run “specials” like
they are running now with the speakers from the NAR Leadership Summit held in
August in
You may
want to bookmark this site for future learning use!
Safety
at the NAR Conference
For those
of you traveling to the NAR Conference, take a moment to look at this short
video on how to be as safe as you possibly can while attending. It’s only about five minutes and worth the
look.
http://www.realtor.org/about_nar/safety/safety_video
Education
from THE CE Shop
The CE Shop has put together a “Thanksgiving Gratitude” should you want to take some CE on line
during the month of November. Simply go
to our website, click on the “Education Tab” and then click on the green button
for “On-Line Courses.” Scroll down and
click on the hyperlink for “The CE Shop.”
You’ll get 10% of your classes and be entered into a drawing for free
CE. Be sure to use the Promo Code “
“Thanksgiving is a time to reflect on what and whom you're
grateful for. Our company would like to thank your members for
choosing us by offering them a discount along with a chance to win FREE
continuing education for one year!” says Ashley Wilson, Account Manager for the
CE Shop.
“Education is when you
read the fine print. Experience is what
you get if you don’t!” Pete Seeger
“This is what learning
is. You suddenly understand something
you’ve understood all your life but in a new way.” Doris Lessing
Happy Learning!
Knox has
September rate dips slightly to 8.1%
County non-seasonally adjusted unemployment rates for
September 2009, released on October 23, 2008 show that the rate increased in 11
counties, decreased in 83 counties and remained the same in one county.
The
[Source: Mayor
Ragsdale’s
SCHEDULE FOR OCTOBER AND NOVEMBER 2009
ELECTION OF 2010 OFFICERS AND DIRECTORS
ON THE FOURTH BALLOT ON
OCTOBER 28th, MEMBERS WILL
ELECT UP TO THREE (3) DIRECTORS
FROM THE LIST OF NOMINATIONS FROM THE THIRD BALLOT
[Time to start at 1am on October
28th and end at 11:59 pm on November 6th]
·
Members may cast one,
two or up to three votes on the list of candidates for Board of Directors.
One vote for the office
of Director
A second vote for the
office of Director
A third vote for the
office of Director
Confidential Contract Information
At the advice of legal counsel, we will not be putting concessions made
by sellers to buyers into the MLS. The
reason for this is confidential information should be privy only to the buyer
and seller. Secondly, any concessions
made have no bearing on the value or pricing of the house. All appraisals
should be able to stand on the merits of the building/home and not on the
concessions made during a sale.
While it is recognized that under the new HVCC Regulations an appraiser
must ask if any concessions
were made, but the appraiser regulations issued by HUD also state that the MLS
should not be the sole source of information gathered by the appraiser. That which is public information at the
respective Registrar of Deeds and Tax Assessor Offices is all that should be
publicly reported in the MLS.
Recognizing that this makes the appraiser’s job a bit more difficult was
taken into consideration. However, the legal ramifications for reporting
confidential negotiated parts of the transaction are not something that is
recommended by counsel or by your Code of Ethics (Standard of Practice 1-9). Appraisers can call the affected parties to
obtain this information, and those parties may choose to give that information
or not.
Therefore, taking the advice of counsel, the MLS Committee and the Board
of Directors have determined not to place concessions into the MLS.
KAAR
Community Involvement
We continue to collect your used cell phones at the KAAR Office.
The KAAR was well represented at the
Buddy’s Walk on October 4th.
Enjoy the pictures! Buddy's Walk for Down
Syndrome
We received a nice letter from them:
“I just wanted to take aminute to thank you for the amazing help and
assistance you provided for DSAG (Down Syndrom Awareness Group) for our 2009
Buddy Walk! It was such a joy to have
representatives from KAAR making and serving popcorn for the walk. They were a big hit.
“Thank you also for the donation of $500 which helped to underwrite the
food concession booth. That was a real
blessing as our sponsor from last year pulled out at the very last minute. We were able to secure (for less than half
the donation) the necessary supplies—and we made that money back, and even
more. So, it was a good “investment” on
your part!
“We haven’t received our final numbers, but we believe that 2009 was
another record-breaking year—both in donations and attendance. This will enable us to continue our work of
empowering parents, engaging professionals, and educating the public to the
potential of indivdiuals with Down syndrome.
And, as the mother of one of these amazing kids---this is something I
hold very near and dear to my heart.
“We look forward to working with KAAR next year—and we hope that this
partnership will continue for many years to come.
Sincerely,
Angie Aubrey, 2009 Buddy Walk Coordinator”
The KAAR will be particpating in the
annual Toys for Tots campaign during the month of November. Boxes will be located at the KAAR Office, and
the following real estate offices have also volunteered to be collection points:
Century 21 Howe Realty & Auction – 675 New Highway 68 (for
Century 21 Robinson Realty –
Coldwell Banker Wallace & Wallace – 136 S. Illinois,
Coldwell Banker Wallace & Wallace – 124 Winston Pike
ERA Executive Choice Real Estate –
Keller Williams Realty – 5616 Kingston Pike
Keystone Select Properties – 455 Highway 321 North (for
Lakeman Real Estate Brokers –
Prudential Reeves & Brown – 820 N.
Realty Executives Associates – 10255 Kingston Pike
Realty III –
RE/MAX Preferred Properties –
Shields Electric – 4722 Middlebrook Pike
On November 10, 2009, the KAAR will be turning its
They are going to need some volunteers to help wrap the many donated items
they have received and get them ready to be mailed. If you can come and assist anytime that day,
you don’t need to make a reservation…just come!
Please bring tape, scissors, red and/or green ribbon and Christmas
wrapping paper. This will help to be
sure that supplies of these valuable items don’t run short. If you can’t volunteer any of your time,
maybe you could bring wrapping supplies to the KAAR Office to help in that way!
You’ll leave here feeling really good about your contribution to ensuring
that the armed forces know we care about them.
A
huge thanks to Bentley Home Inspection and Statewide Pest Services for hosting
the membership picnic in
Membership Survey
As
promised, here are the results from the survey!
Sent to
3,595 members Received responses
from 733
Questions:
1. Which County or Chapter is your office
Located in?
|
|
52 |
|
Blount |
59 |
|
|
1 |
|
Claiborne |
7 |
|
Claiborne, |
1 |
|
Cocke |
1 |
|
|
61 |
|
Fentress |
3 |
|
Grainger |
3 |
|
Hamblen |
1 |
|
|
4 |
|
Knox |
436 |
|
Loudon |
33 |
|
McMinn |
17 |
|
|
17 |
|
Rhea |
2 |
|
Roane |
15 |
|
Sevier |
5 |
|
|
1 |
|
Sullivan |
2 |
|
|
5 |
2. Which
Age Group are you in?
|
Age |
Total |
|
0-30 |
29 |
|
31-40 |
74 |
|
41-50 |
177 |
|
51-60 |
250 |
|
61+ |
194 |
3. Overall, how satisfied have you been with
the
Overall, the majority of respondents are satisfied or very satisfied.
All comments and concerns that were noted have been directed to the
appropriate committees.
To
clarify: The Staff does not set fees or policies. Your Board of Directors sets those based on
budget and the need to have clear-cut understanding of procedures. The staff is charged with implementing and
upholding those policy and fees. MLS
Fees and policy are also established by the MLS Committee. Please note that members report members for
violations; neither staff nor the MLS Committee looks for violations. Rules are clearly set and you agree to abide
by them when you become a Member.
Members need to realize our fees
include all of your non-designation or certification education, where most
associations charge in addition to dues for all education. The website has hyperlinks for online
education resources and for schools offering correspondence courses. Please go to your local Chapter President and
request local education offerings.
4. How
long have you been a member of the
The majority of the respondents
have been in the business 1-5 years.
5. Which
of the following events have you attended?
The trade show was the most attended event.
Why or
Why not?
#1 reason for not attending was schedule and time; #2 reason for not
attending was Location. Contact your
local Chapter President or the Member Service Committee to schedule after-hour
events in your area.
6. Would
you attend more social events if we had more outings organized?
The majority said, “No.”
For those of you that said yes, please check with your local chapter
President to organize after hour events in your area.
For the
7. Other
than MLS are you aware there are other services offered to members of the
The majority know there are other services available.
8.
Overall, how satisfied have you been with the Newsletter?
The majority are satisfied or very satisfied.
9. Do
you feel KAAR provides you with opportunities to be active in the Knoxville
Area Association of REALTORS®?
The overwhelming response was, “Yes.”
10. If
you answered No to Question #9 which of the following best describes why?
Location continues to be the primary reason for lack of attendance.
11.
Indicate your interest in the following proposed KAAR activities and programs
that DO NOT offer CE credit.
The majority are interested in Lunch and Learn and products.
12. What
could the
The overwhelming response was education.
13.
Would you be willing to pay for education that would have CE Credit?
Maybe based on course content and cost.
(Maybe does not help the Education Committee to schedule speakers; if
they are not attended well it will not cover costs.)
14. What
would encourage your participation more in the
The responses had no clear direction, but 198 said there would be nothing
to get them to participate, while an equal amount said more education and
understanding.
15. How
would you rate the www.kaarmls.com website in general?
16.
Please rate the www.kaarmls.com site on the following features:
17. If
you have any suggestions on how we can improve the www.kaarmls.com website,
please share them with us.
For these last three questions: The questions were
asked about the
KAAR Website www.kaarmls.com, but the majority of the comments were in regards to the MLS site.
The comments regarding the MLS have been forwarded to the MLS Committee.
To clarify: www.kaarmls.com is the Association site.
The survey has been sent to the Board of Directors,
which includes each of the five local Chapter Presidents. Additionally, the Committee Chairs who have questions and
comments from the survey have received a copy so that these can be studied in
the appropriate Committee of the KAAR. If you would like a copy of the survey please
send your requests to
We thank all of you who responded to this survey.
Sites
for Savings!
The October 2009 edition of The
Reader’s Digest listed some great sites to help us all save money during
these interesting economic times. Try
them!
http://LifeHacker.com – A daily blog on how to do anything better!
http://ShopStyle.com – You can sign up
for email alerts here to get the best find without going to the sale rack at
the local store.
http://SiteJabber.com – Consumers
review online businesses and websites, and help you save money!
http://CouponMom.com – This is a great
site for anyone to use. It tells you
what stores are running what specials that coordinate to the coupons that come
out in the Sunday paper. KAAR Staff
saved BIG money when buying schools supplies by going to this site!
Happy saving and shopping!
KAAR Family Notes
Condolences
to Shawn Headlee whose mother passed away in early October.
Congratulations
to Patricia Shepherd who was re-elected President of the Loudon Chapter of the
KAAR!
Condolences
to the family and friends of Mike Burke (Southland GMAC) who passed away in
late October after a brave fight with pancreatic cancer.
Many of us
will be attending the NAR Conference the week of November 9th. Updates on this will be included in the
December newsletter.
The KAAR
Office will be closed on Thanksgiving and the Friday following. We hope all of you have a blessed holiday,
and take the time to be thankful for our communities, our state, our industry
and our families!