March 2003

President’s Message

It's easy to imagine Spring just around the corner; the promise surrounds us everywhere, tiny buds popping out, trees beginning to take leaf, daffodils blooming throughout the countryside and the many colorful acacias along the highways.

The unfolding energy of Spring creates renewal. This is a great time to renew your skills and participate in some of the many educational programs being offered through the Association, Affiliate sponsors, Women's Council of REALTORS® and on-line.

I encourage you to look into the CRS (Certified Residential Specialist) and GRI (Graduate REALTOR® Institute) classes. These designations are designed to advance your career through increased professionalism and enable you to be of greater service to your clients.

We are very fortunate to have the GRI and CRS classes held right here in beautiful Santa Cruz. The courses are attended by REALTORS® from throughout the state and are always sellout events. Networking with 'outside' REALTORS® is also a great opportunity to learn about the real estate practice from a statewide prospective as well as the immense benefit of building your referral base.

Many thanks to the Education Committee for bringing us these topnotch offerings, and special kudos for the timely and informative 'e-mail ed.'

Be sure to check out the Association's recently renewed web site (www.scaor.org) on a regular basis for postings of class schedules, monthly market statistics, the on-line store, member and Committee Rosters, upcoming parties and events (more chances to network!), Women's Council of REALTORS® lunch meeting speakers, as well as links to NAR, C.A.R. and other real estate related sites. If you would like your personal web page posted as a link on the member roster, just e-mail Norma (nmilete@scaor.org) and she'll be happy take care of it.

Renewed energy abounds around the Association office too. Love that new Voice Mail system! LGR (Local Governmental Relations) has been busy monitoring all the activities of the County and Cities, the Board of Directors has approved a newly formed Past President's Council and the Strategic Plan is underway. The Communication Liaisons' program appears to be hugely successful. I have heard from many members that they appreciate the time and effort of the Liaisons in bringing them the extensive updates so quickly.

Another exciting update is that the Santa Cruz Association of REALTORS® has been nominated for “Business of the Year” by the Capitola Chamber of Commerce. We will find out next month if we were selected. Thank you to all the terrific volunteers and staff that keep everything running so smoothly. I look forward seeing you around the Association office and in my next transaction!

Happy St. Patrick's Day!

Ronnie Trubek

2003 President

Inside

- Weekly Open House Tour Reminder

- New REALTOR® Members

- REALTORS® Making a Difference

- Affiliate Member Spotlight

- Lake Tahoe Property Owners Fight Back

- Free Marketing Newsletter

- Important Court Decision Upheld

- Congress Takes on Predatory Lending

- ‘E-Nabling’ Driving Marketing

- Positive Interest Rates Support Sales

- Existing Home Sales Rise

- Condo Sales Break Annual Record

- Public Awareness Campaign in 6th Year

- Congress Restricts Funds for Banks

Weekly Open House Tour Input Due By 2:00 PM Tuesdays

If you would like to place a property on the Thursday tour the deadline for submitting is Tuesday at 2:00 p.m. If you need instructions to enter the data, please call the Association office (831-464-2000) and we will fax them to you. The crucial factor to having it placed on the tour is entering the correct date in the T1 or T2 field of the listing by the cutoff time.

Should you need to cancel a property that has already been put on tour, please call the Association Office by 4:30 p.m. Wednesday (the day before) and it will be placed on the weekly cancellation list.

If you would like to view the Tour sheet, it is available on the Association's website at www.scaor.org. You will be able to view and download the Open House Tour by Tuesday at 5:00 p.m. Here's how:

Go to www.scaor.org and click on the 'Members Only' tab on the navigation bar located on the left side of the home page. This will take you to the Password-Protected Area for Members Only. You will need to enter a User's Name and Password. The User's Name is your NRDS Number (nine digit number assigned by NAR 20000XXXX) and your password is the last four digits of your social security number. If our database did not have your social security number, your password is 1234.

The next screen will provide you with three links: one for the morning tour, one for the afternoon tour, and one for both the morning and afternoon tour. All you'll need to do is click on the link and then print the information. If you do not know your NRDS ID Number, please call us at 831-464-2000 and we will provide it for you.

NEW REALTOR® MEMBERS

Josh Miller, Bailey Properties, Inc.

Jennifer Fatjo, R.G.Matusich & Associates

Robert Whitelaw, Network Alliance Real Estate

Andy Payne, Santa Cruz Mountains Real Estate

Yuriko Kerby, Monterey Bay Properties

Vicki Menna, Sherman & Boone Associates

Theresa Viola, Network Alliance Real Estate

Sebastian Frey, Thunderbird Real Estate

Terry Vierra, Century 21 Showcase REALTORS®

Nancy Cleveland, Coldwell Banker Jackson & Mann

AFFILIATE MEMBERS

Aark Home Inspections, Representatives: David Parks & Michael Soik

Union Planters Mortgage (Branch Office), Representatives: Don Carroll & Malcom Brown

Law Office of John N. Kitta & Associates, Representative: John Kitta

Key Impressions, Representative: Kim Furman

Comments about an applicant’s admittance should be submitted in writing to the Santa Cruz Association of REALTORS®, 2525 Main St., Soquel, CA 95073.

REALTORS® MAKING A DIFFERENCE...

We applaud Howard Allen, Howard Allen & Co., & Jack Western, Century 21 Showcase REALTORS®, for their community contribution.

Camp Opportunity - Camp Opportunity makes an important commitment that sets this camp apart from others: a one to one relationship between counselor and camper. The Campers are what is termed children-at-risk; many come from alcohol or drug-dependent families or backgrounds of physical, sexual, or emotional abuse. This essential element of camp gives the campers the kind of attention and support that they so richly deserve and so seldom receive. Through a professionally developed self-esteem program, the campers are given important life tools in the areas of communication, problem solving, and self-management.

Affiliate Member Spotlight

PFS Mortgage Loans of Santa Cruz

Contact: Dennis and Diane Black

9565 Soquel Drive, Suite 202

Aptos, CA 95003

Phone: (831) 662-6100 or (408) 978-3930

E-mail: dianepfs@pacbell.net or dennis@pfsml.com

Web-site: www.pfsml.com

We see our role as helping our borrowers choose a loan that meets their overall short and long-term financial goals and their payment and equity objectives. We believe our borrowers should experience service from our company beyond their expectations. Our motto is “Experience and Teamwork that Works for You.”

Our customers count on us not only to have competitive rates, but they appreciate our knowledge and experience. Our customers have come to expect an unsurpassed level of communication from application to the closing of their loan.

Lake Tahoe Property Owners Fighting Back

A property owners group has filed suit against a new ordinance adopted by the Tahoe Regional Planning Agency. The ordinance, which was adopted in November, targets large homes that obstruct lakeside views. It requires some homeowners to plant trees to screen their homes from public view, and it requires developers to use natural materials, like stone and wood, as well as earth-tone colors. The opponents claim the ordinance unfairly targets single-family homes without the same restrictions applied to public dwellings for tourists.

Free Marketing Newsletter...

...Reveals Cheapest Ways to Generate Ready-to-Act Prospects, Compel FSBOs and Expireds to Call You, Generate Hot Internet Leads Every Day and MORE Top REALTOR® Secrets in Your Inbox Every Week. For more information, visit http://www.NoHardSelling.com

Court Holds Failure to Mediate Under C.A.R. Purchase Contract is Grounds for Denial of Attorney’s Fees

A recent California Court of Appeal decision serves as a reminder that parties who agree to mediate should take that commitment seriously. In Leamon v. Krajkiewcz, home sellers filed a lawsuit to unwind a contract for the sale of their property which, they claimed, they had signed under duress from the buyers. The parties used C.A.R.'s Residential Purchase Agreement which, in most cases, requires the parties to mediate disputes before resorting to arbitration or court action, and denies recovery of attorney's fees to a party who fails to do so. In this case, the buyers' requests for mediation had not been answered.

Even though the sellers claimed they did not have a valid contract with the buyers, both the trial court and the Court of Appeal denied their request for attorney's fees of over $27,000, citing their failure to honor the mediation clause in the C.A.R. purchase agreement. The Leamon case demonstrates that disregard of mediation clauses can carry very real financial consequences for a contracting party.

Congress Takes on State, Local Predatory Lending Laws

Rep. Bob Ney (R-Ohio) is expected some time next month to propose the Responsible Lending Act of 2003, a federal anti-predatory lending law that would pre-empt stricter state and local laws. Supporters say a single law is needed to avoid the situation in Georgia, where a provision that allows borrowers to sue brokers, lenders, and investors has prompted Standard & Poor's to stop rating mortgage-backed securities that include these loans.

Ney's proposal would eliminate secondary-market investor liability and establish an industry board to monitor counseling programs sponsored by the U.S. Department of Housing and Urban Development. The Mortgage Bankers Association of America and the National Association of Mortgage Brokers will likely support the bill; while the Association of Community Organizations for Reform Now, AARP, and the National Community Reinvestment Coalition, among other groups, are expected to fight the bill's less stringent consumer protections.

Source: Scripps Howard News Service: Lewis, Holden

‘E-Nabling’ Driving Marketing Efforts More Than Sales Departments

The most successful marketing departments are turning to the Internet to boost sales and find new customers for their products and services as market lifecycles shorten, according to a recent Conference Board report. The report also found that the introduction of new technologies in the past five years has had a bigger impact on the organization and processes of marketing departments than on sales departments. The new word for what is happening is "E-nabling" -- the implementation of digital and communication technologies such as the Internet, intranet, and World Wide Web to improve business performance and allow an organization to operate in real time. E-nabling has increased the speed of communication within organizations and between their markets and has flattened organizations.

E-nabling has had a greater impact on the marketing department (65% report changes to marketing) than the sales department (48%), largely because of the greater centralization of the marketing function and the greater independence of the sales organization. E-nabling also is spurring changes in corporate culture, resulting in new departments (e-commerce, e-service, Web marketing), new personnel, and a reorganization of sales and marketing. For more information: www.conference-board.org

Positive Interest Rates Should Support Strong Home Sales

Although the economy is expected to improve only gradually this year, mortgage interest rates should remain favorable and help to sustain a strong level of home sales, according to NAR. David Lereah, NAR's chief economist, said weak economic growth at the end of 2002 means momentum will build slowly this year. "The silver lining will be a continuation of affordable mortgage interest rates, especially during the first half of this year, which will help to sustain the strong momentum we currently have in the housing market." Lereah expects the 30-year fixed mortgage interest rate to average 6.2% during the first half of 2003 before rising to 6.6% in the fourth quarter. For more information, go to: http://www.realtor.org/PublicAffairsWeb.nsf/Pages/FebOutlook03

Total Existing-Home Sales Rise in 45 States

Total existing-home sales, which include single-family, apartment condominium, and cooperative sales, rose in 45 states and the District of Columbia in the fourth quarter of 2002 compared with the same period in 2001, according to NAR. The national association's latest report on total existing-home sales shows that nationwide, the seasonally adjusted annual rate was 6.55 million units in the fourth quarter, up 8.6% from the 6.03 million-unit level in the fourth quarter of 2001.

In addition, fourth-quarter sales were up 5.8% from a pace of 6.19 million units recorded in the third quarter of 2002 and were the second-highest level on record. For more information, visit: http://www.realtor.org/PublicAffairsWeb.nsf/Pages/TotalEHS4thQtr02

Condo Sales Break Annual Record

Sales of existing condominiums and cooperatives surged in 2002, putting the year significantly above the record, according to NAR. There were 824,000 existing condo and co-op sales last year, up 10.5% from the previous record of 746,000 sales in 2001. This is the seventh consecutive annual record for condo sales, and the rate of increase is double the 5% rise in existing single-family sales in 2002. For more information, go to: http://www.realtor.org/PublicAffairsWeb.nsf/Pages/CondoSales4Qtr

Public Awareness Campaign Enters 6th Year

NAR launched the sixth season of its multimillion-dollar Public Awareness Campaign Monday with an added dimension--Spanish-language radio advertisements. All told, this year NAR is spending nearly $20 million on more than 3,400 network television and radio spots. Radio advertisements began during February and will run through mid-October. Television advertisements will begin the week of March 10 and run through mid-September. Spanish-language radio advertisements will appear on Hispanic radio networks.

For a complete schedule of the media spots and placement, visit: http://www.realtor.org/rodesign.nsf/pages/FS_AWARENESSCAMPAIGN?OpenDocument

License Renewal Available Online

Real estate license renewal and change transactions can be completed online through the Calif. Dept. of Real Estate's "eLicensing" system. Online real estate license transactions that are available include broker and salesperson renewals; broker, salesperson, officer and branch-duplicate license requests; salesperson requests to change employing brokers; mailing address changes; and automated fee payment and processing.

eLicensing is now available at https://secure.dre.ca.gov/elicensing/

Congress Restricts Funds for Banks in Real Estate Rule; NAR Girds for More Effort

House and Senate lawmakers this week passed omnibus spending legislation that includes a provision restricting the U.S. Department of Treasury from spending any money to implement a rule it proposed two years ago allowing big national banking conglomerates to enter real estate brokerage and management.

Passage of the provision is a major victory for consumers and real estate professionals concerned about the potential conflicts of interest and unfair competitive advantages of national banking conglomerates should they be allowed into real estate brokerage and management, says NAR 2002 President Martin Edwards Jr. "Congress has spoken and officially declared its intent to keep banks out of real estate," he says.

The funding provision, introduced by U.S. Rep. Anne Northup, R-Ky., is identical to a provision Congress passed last year prohibiting the appropriation of funds for implementation of the proposed rule. The new provision withholds appropriations to Treasury for finalizing the rule in fiscal year 2003, which ends Sept. 30. The victory gives Realtors a boost as they continue their efforts to keep banks out of real estate. "We continue to have our work cut out for us as we seek congressional passage of the Community Choice in Real Estate Act," says NAR President Cathy Whatley. That bill, S. 98 in the Senate and H.R. 111 in the House, would enhance consumer choice by preventing banks from using the federal regulatory process to enter real estate. As of mid-February, more than 175 House members and almost a dozen senators have signed on as cosponsors of the bills.

For more info, Go To: http://www.realtor.org/gapublic.nsf/pages/keepbanksout

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Graduate, REALTOR® Institute

GRI – 105 - Legal Issues, Disclosures and More!

Friday, March 14, 2003 at the Santa Cruz Association of REALTORS®

Please call 888/785-4800 for more information

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Women’s Council of REALTORS®

New disclosure laws and guidelines regarding water conservation and ordinances. Are you in compliance?

Presented by Toby Goddard, Water Conservation Manager - City of Santa Cruz &

Bruce LaClergue, Water Program Manager for Santa Cruz County

Wednesday, March 19, 2003 - 11:30 a.m. - 1:30 p.m.

$24/Members $28/Nonmembers West Coast Santa Cruz Hotel

R.S.V.P. to Jennifer Walker by Friday, February 10th

wcrsantacruz@yahoo.com or 831/345-3675