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

USED PHONE NUMBERS

 

RE Infolink

Local………………..(408) 874-0200

Toll-Free ……………(800) 546-5657

Fax …………………(408) 341-8900

FaxLink ....………….(408) 874-0225

 

Supra - SuperKey

Update Key………….(800) 481-3778

Field Support Line…. (800) 842-8269

 

C.A.R.

Main………………..(213) 739-8200

Legal Hotline………(213) 739-8282

 

Department of Real Estate

Sacramento…………(916) 227-0931

Oakland…………….(510) 622-2552

 

WinForms

Registration…………(800) 228-9466

Technical Support...(586) 293-0642

 

THANK YOU ADVERTISERS:

 

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Professional Inspection Services

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Contact Mitch Torres at (800)843-7270 or (831)477-7270 ext. 115

www.e-roofing.com

 

 

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