October 2002
President’s Message
On Choice and Personal
Vision-The license may say "salesperson" but the job isn't about
selling. Those of you who have been
doing it for a while know it really isn't about "selling." Though we've all heard the real estate
buyer's three most important rules: 1. Location 2. Location 3. Location, and
the more recent seller's corollary: 1. Disclose, 2. Disclose, 3. Disclose,
there is a similar set of rules for REALTORS® that has been a closely held, but
much less talked about, mantra by those who have gained a degree of preeminence
in this business. You know, the same
20% of the licensees who do 80% of the business.
The new licensee has taken
the classes, studied the data, taken the test and now has a brand new license
issued by the state of California telling all that they are a "Real Estate
Salesperson." After some months of
no sales or listings and more than a few expenses, the new licensee begins to
notice the plague of real estate gurus who profess to know how to achieve
obscene riches in this business in thirty days or less. They've all been "multi-jillion dollar
producers" and now they're going to teach us how to do the same in a two
or three hour "free lecture" during which we are regaled with stories
of this guru's amazing successes. And
then, we're excused. "What? You mean you didn't hear the 'secret of
their success?' Oh well, you must have
gone out to take that phone message, but everything you need is contained on
this very special set of CDs for $500, which is on sale near the door. But because we're special (meaning
"we're there") we can buy them today only for just $295." It
always amazes me that these pundits figured all this out and then, at great
personal sacrifice, gave up the opportunity to make all these riches themselves
just so they could bring us the secret formula. The tapes, books, and CD's
provide the keys to the kingdom we've been seeking; or so they would have us
believe. Now this is the kind of
"selling" where a license ought to be required (How do I know all this? Well, we have many available, free, for loan
to members here at the S.C.A.O.R. office.
But if you must have your own personal copy I happen to know where you
can obtain not one, but several slightly used sets of these amazing secrets of
success, not for $500, not even $295, but today only--just $99).
What does it mean to be a
"salesperson?" We know the
standard definitions of "selling," i.e., ". . . to transfer
goods or property or render (services) in exchange for money," which is entirely straightforward and
honorable. Why is it then, that such a
large proportion of the public has come to understand "selling" by
its more pejorative connotation, e.g. "causing to be accepted, or to
deliver improperly or dishonorably in return for profit or advantage; to
betray? To cheat or hoax?" The
fact is "selling" can be either--the difference lies in the choices
we make when we begin in this business.
Whether consciously or unconsciously we all make a choice on where we're
going and the price we are willing to pay to get there. It's "all about choices,
Alfie." Many believe the reason
for the negative connotation held by much of the public is the adversarial
relationship implicit in the term "salesperson" brought about by the
emphasis on the salesperson's reward rather than the services performed for the
client/customer.
Products and techniques for
transferring goods and services constantly evolve; the three most important
rules of selling, not just for REALTORS® but for anyone are, and will continue
to be, known to most who gain success in this and any other business. Those of
us who have lost a listing to another agent and thought about filing a
"procuring cause" action might pay serious attention to these
"three rules of selling," because no matter how fashionable we are,
no matter how intelligent, erudite, brilliant, no matter how much alphabet soup
we have following our name, no matter how fantastic our self-promotional ads
are in the color real estate magazines (you know, those ads we write for each
other) no matter how beautiful the home is or whether we are the listing agent
or the buyer's agent, nothing will happen unless we have satisfied these three
rules: 1. Rapport, 2. Rapport, 3. Rapport!
If you do not have rapport with your seller/buyer there will be no sale,
no re-sale and no referrals. It is
about choices and personal vision!
Bruce A. Southstone, CRB,
CRS, GRI
President 2002
bruce@shermanandboone.com
Inside
- DRE Implements ‘eLicensing’...........2
- New REALTOR® Members ..............2
- Affiliate Member Spotlight ...............3
- CREPAC Supports McPherson ........3
- Legislative Watch........................Insert
- Compensation in MLS ......................5
- Branch Office Licensing ...................5
- Mortgage Loan Apps Up ..................5
- REALTORS® a Household Name.....6
- NAR Speaks to Insurance Industry ..6
- Housing ‘Bubble’ Theory Popped ....6
-
SCAOR
Calendar .............................7
Congratulations…... and
thank you to Misty Ewald, Century 21 Lad Realty for submitting the new name for
our newsletter!
DRE Implements eLicensing
The Calif. Dept. of Real Estate has announced the implementation
of "eLicensing," an interactive online system that allows real estate
license renewal and change transactions to be completed via the Internet.
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. User-friendly features
include customized menus, e-mail confirmations, status tracking of online
transactions and clear instructions. In order to use the services, licensees
have to register to get a login and password. eLicensing is now available at
https://secure.dre.ca.gov/ elicensing/.
To answer frequently asked questions, go to https://secure.dre.ca.gov/faqs/faqs_elc.htm.
The actual licenses still will be mailed to licensees after completion of the
process online. Electronic signatures on DRE forms are acceptable in accordance
with California's E-sign law (UETA), found in Civil Code Sections 1633.1 et
seq, which C.A.R.'s Governmental Affairs Dept. was instrumental in passing. For
more info: https://secure.dre.ca.gov/elicensing/
Condolences
To the family and friends of
Mary Lee Johnson REALTOR®
of Watsonville who passed
away on Sunday, September 9th.
---------------
To the family and friends of
Sandy Sprankle, Century 21 Showcase REALTORS®, who passed away on Thursday,
September 19th.
NEW REALTOR® MEMBERS
Sandra Arnold
Coldwell Banker Jackson
& Mann
JoEllen Smith
Bailey Properties, Inc.
Amber Floodman
Coldwell Banker Jackson
& Mann
Michael Walsh
Thunderbird Real Estate
Myra Ambrosini
Bailey Properties, Inc.
Alison Chesley
Bailey Properties, Inc.
Joseph B. Harried
The Real Estate Place
Brooke Bradshaw
Main Street REALTORS®
Kimberly Cole
David Lyng & Associates
Diana Kawamoto
Bailey Properties, Inc.
William Thayer
Bailey Properties, Inc.
Jamie Krosp
Monterey Bay Properties
Cleo O'Brien
Longacre Real Estate
Peter N. Andrews
High Bluff Realty Services
Comments about an applicant’s
admittance should be submitted in writing to the Santa Cruz Association of
REALTORS®, 2525 Main St., Soquel, CA 95073.
CONGRATULATIONS
GRI GRADUATES
Sara Bell, GRI
Marie Golobic, GRI
Gordon C. Lovell, GRI
Bill McKown, GRI
Renee Mello, GRI
Sheila Sutphin, GRI
Norman Turner, GRI
Affiliate Member Spotlight
Investment Advantage Group
Investment Advantage Group
Contact: Rodney Fitzpatrick
900 Hamilton Avenue, Suite
100
Campbell, CA 95008
Phone: 888-212-1013
Fax: (408) 879-7435
Cell Phone: (831) 901-8123
IAG is not your typical 1031
exchange company. We go well beyond our competitors to bring you a wide variety
of property tax solutions. Our mission is to provide peace of mind in all of
your tax-deferral needs. We achieve this by offering you exceptional service,
expert legal counsel, superior banking, premium security and protection,
exclusive level of insurance and access to the latest concepts and developments
that will help you get the most out of your tax-deferred exchange.
CREPAC Supports McPherson’s
Campaign
The California Association of REALTORS® CREPAC Trustees are
support ing Senator Bruce McPherson in the upcoming Senatorial Race. The CREPAC
State Fund supports candidates running for state and national elections. The funds were distributed to
Barbara Palmer - Senator McPherson’s Key Contact - who set-up the event.
Members had the opportunity to meet briefly with Senator McPherson during the
check presentation.
Members are notified via e-mail as these events are scheduled. We
hope to see you at a future event!
C.A.R. News
Varying Offers of
Compensation in MLS
CAR was recently engaged in a dialog with NAR regarding the issue
of whether a broker may offer differing amounts of compensation in the MLS
depending on the level of service that the cooperating broker will be
performing, ex: where a broker offers 3% to a buyer's agent that shows the
property and 1% to a buyer's agent that doesn't show the property. CAR has received many questions on whether
an MLS may, or must (in accordance with NAR policy) reject these listings.
CAR also gets questions on whether there can be different
commissions offered depending on lenders or service providers chosen. As you can imagine, there are many
variations on this theme. CAR had expressed
its concern, given the legal climate in California, over the potential
antitrust implications of an MLS prohibiting such a pricing arrangement in the
event it may be deemed to be an unreasonable restriction on the pricing
activities of MLS participants.
CAR has obtained clarification from NAR, however, that its
position is that NAR policy relies solely on the procuring cause test to
determine entitlement to commission, and under NAR policy it would be
inappropriate for brokers to offer varying commissions based on the performance
or nonperformance of certain "sub-activities" falling under the
umbrella of procuring cause.
Therefore, NAR policy does not allow such varying commission offers
through the MLS.
Avoid Branch Office
Licensing Snags
C.A.R. reminds all REALTORS® to comply with branch office
licensing requirements. California
Business & Professions Code section 10163 requires brokers who maintain
more than one place of business to obtain an additional real estate license for
each branch office maintained. Brokers who fail to comply may face disciplinary
action by the DRE, so please don't let this simple licensing requirement put
you at risk.
Mortgage Loan Apps Increase
to Record High
Mortgage loan applications for the week ending Sept. 6 increased
16.9% to a record high compared to the previous week, according to the most
recent survey by the Mortgage Bankers Association of American (MBA). On an
unadjusted basis, the application index decreased 7.0% for the week ending
Sept. 6 and posted a 106.2% increase compared to a year earlier.
"The actual number of mortgage applications decreased only
7% last week compared to the previous week," said MBA Economist Phil
Colling.
"This is especially remarkable when you consider that last
week included only four business days because of the Labor Day holiday. The
seasonally adjusted indexes were adjusted upward to account for the one-day
holiday effect, as has always been done during weeks with Monday holidays. The
holiday adjustment combined with strong mortgage applications activity resulted
in record highs for the seasonally adjusted market composite and refinance
indexes."
Refinancing activity represented 72.5% of total applications for
the week ending Sept. 6, increasing from 70.9% the previous week. For more
info., visit: www.mbaa.org.
Coast-to-Coast Coverage
Helps
REALTORS® Become a Household
Name
The 2003 NAR Media Plan will continue to ensure the message is
being received by potential homebuyers and sellers in their homes, cars, and
offices.
Network TV will help us create over 2.9 billion impressions on
our target audience. Early Morning, Evening News, Primetime and Late Night programming
in popular programs will enable us to reach over 95% of all target households at an average of 26
times/year. Network Radio will also continue to keep the Public Awareness
Campaign message out there--often.
NAR Opens Communications
With Insurance Industry
Although insurance issues are largely overseen by state
regulators, the National Association of REALTORS® is moving forward on several
fronts.
* In July, NAR officials met with American Insurance Association
staff for the first of a series of meetings to share information and concerns.
* On mold, which factors prominently into the homeowners insurance
issue, NAR is recommending changes to state property condition disclosure forms
to address mold problems. Some states
have already amended their forms to address mold.
* NAR supports the concept of continuing federal research into the
health effects of mold.
* NAR is working with the Environmental Protection Agency and the
other organizations to develop a consumer education brochure on mold, so that
members can provide clients and customers with information from an
authoritative source.
Housing ‘Bubble’ Theory
Popped
Federal Reserve Board Chairman Alan Greenspan in July cited
several market-based reasons for strong home-price appreciation, helping to
deflate talk that home prices are caught in a speculative bubble.
"We've looked at the bubble question and we've concluded
that it's mostly unlikely,” Greenspan said in testimony before Congress.
Greenspan's remarks came as a growing number of analysts were
expressing concern that prices were appreciating too rapidly, with investors
turning to housing as a safe haven from the shaky stock market.
Nationally, the median home price increased to $163,500 in June,
up 7.4% from the previous June.
In a joint statement following Greenspan's testimony, NAR Chief
Economist David Lereah and the chief economist for the National Association of
Home Builders, David Seiders, lauded Greenspan's remarks, saying the housing
market is fundamentally sound.
Lereah said home prices may deflate in some markets, but an
industrywide "pop" isn't in the cards.
Graduate, REALTOR® Institute
GRI - 112
Environmental Concerns,
Construction Overview and Land
Friday, October 11, 2002
at the Santa Cruz
Association of REALTORS®
Please call 888/785-4800 for
more information
WCR October Luncheon
‘Making Referrals a Business
Tool’
Gregg Fujita, CRS, GRI
Wednesday, October 16, 2002
11:30 a.m. - 1:00 p.m.
$20/Members $25/Nonmembers
West Coast Santa Cruz Hotel
175 W. Cliff Drive, Santa
Cruz
R.S.V.P. to Kathy Jo Sera by
October 11
wcrsantacruz@yahoo.com or 831/818-2651
FREQUENTLY
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RE Infolink
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481-3778
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842-8269
C.A.R.
Main………………..(213) 739-8200
Legal Hotline………(213)
739-8282
Department of Real Estate
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WinForms
Registration…………(800)
228-9466
Technical Support...(586)
293-0642
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