September/October

 

President’s Message

   Happy Fall! I hope everyone had a wonderful and prosperous Summer. It appears that we have all survived the MLS conversion and are back up and running. REIL has been working overtime to correct all the remaining transition issues. When all the systems are finalized and coordinated, Web Prompt & Response, HomeWorks, ListTrak and REILweb will all work seamlessly together giving you a variety of options to access the MLS data. Check out MLSAlliance.com, now live online. MLS Alliance can assist you in accessing MLS data from counties surrounding REIL territory.

   While you’re online remember to check out the Association website; that’s where you’ll find the Watch every month, updates and announcements about upcoming events and items of special interest.  “Now playing” is the opportunity to be considered for nomination to the Housing Foundation Board of Trustees, a beautiful presentation of the results of the membership survey, upcoming educational offerings and information about the 82nd Annual Installation Gala.

   This year’s SCAOR Annual Charity Golf Tournament was a smashing success!  Thank you to all the wonderful Association staff, REALTORS®, Affiliates and community volunteers who worked so hard to make this a terrific event. Donations will be made to Families in Transition, Women’s Crisis Center, Second Harvest Food Bank, Habitat for Humanity (local) and the Association’s Housing Foundation.  These recipients are the top 5 charities our members indicated in the membership survey they wanted to see supported by the Association.

   A new event this year was the “Best on the Hole” prize for the most fun and creative Hole Sponsor set up. Santa Cruz Mortgage took the prize with their tropical theme, Mai-Tai’s in coconuts and their chip shot/ rubber duckies contest…oh well, you just had to be there!

  The Board of Directors recently approved a $5,000 charitable contribution to CAR’s Housing Affordability Fund.  These monies from this fund are distributed through local associations in support of community initiatives that aim to increase housing supply, renovate existing housing stock or partner with employer-assisted housing programs, among other things.  If you know of a potential project that might qualify, please contact me or the Association so we can discuss it.

  I love seeing you around the Association office and talking with you on the phone. Your ideas and feedback help me to do a better job representing you. 

  Let’s all have a super Fall season!

Ronnie Trubek

2003 President

 

REALTORS® MAKING A DIFFERENCE...

  We applaud Wayne Shaffer, Shaffer & Associates, for his contributions to our community.

   Wayne Shaffer, a 25+ year member of the Association, is currently involved with three local non-profits, The St. Francis Catholic Kitchen, Jesus, Mary, and Joseph Home, and the Siena House Maternity Home.

   The St. Francis Catholic Kitchen, serves a nourishing meal to the poor of our community Monday through Friday at noon. The Jesus, Mary, and Joseph Home provides transitional housing for families; and Siena House Maternity Home, provides housing and programs to women who face an unplanned pregnancy and have no where to go to for help. 

   Wayne puts in many hours each week to help keep these very worthwhile enterprises running, and has served as President of the Board of Directors of all of these organizations.  Congratulations, Wayne for making a positive contribution to the community!

 

Inside

 - Stepping Outside the Box, Part II

 - New REALTOR® Members

 - SCAOR Annual Golf Tournament

 - Affiliate Member Spotlight

 - License Renewal Available Online

 - FCC Delays Do-Not-Fax Rules

 - NAR Markets New Lockbox

 - New Tech Sessions at Annual Conference

 - C.A.R. Reports Median Price Increased

 

STEPPING OUTSIDE THE BOX: SELLING OUR CLIENTS ON INVESTMENT PROPERTY Part II

Contributed by Linda Murphy, Union Planters Mortgage

  The idea of buying investment property has taken hold with your clients. You have gotten them excited with tapes, with articles, or simply with your enthusiasm for their future. Some of them will take to the idea immediately, having worried about their retirement. Some will only need to see the numbers on paper, or talk to their CPA about the tax advantages. A few will need some handholding throughout the process, as they will truly be “stepping outside the box”, especially if they are the first in their social circle to make this kind of investment.

  The first question your clients will ask is: “What can we afford to buy?”  Your answer depends on the amount of money they’re willing and able to put down.  There are advantages and disadvantages to a large down payment when buying investment property, and they are different from purchases of a primary residence.  The principle advantage of a large down payment is that the property can begin to provide a positive cash flow immediately.  The main disadvantage is that your client’s entire nest egg can be tied up in a single property.

  Two or more rentals that break even can be a better solution for clients in their 40’s or 50’s.  While they are still working they will not need extra income. After time has passed and the equity in the properties has increased, they can make improvements and increase rents, trade up from a SFR to a duplex or 4-plex, or simply enjoy positive cash flow that is mostly tax sheltered. Additional properties for them mean more commissions for us! 

  For our older clients, I recommend a new book called Secure Your Financial Future Investing in Real Estate by Martin Stone and Spencer Strauss.  The authors, both real estate investment brokers, advocate financing with as little cash as possible.  They also believe senior citizens should downsize by selling their large houses and moving into one of their rental units. A paid-off house may provide a sense of security, but adds nothing to the monthly income seniors often need to live a comfortable life.

  If a client wants to start investing, but doesn’t have the down payment sitting in an account ready for use, where can he get the money?  The first answer is the equity in his primary residence.  The next place to look is a family gift or loan. Many real estate millionaires began their careers with borrowed seed money. If a client knows a businessperson or family friend who does not want to risk their cash in the stock market, they may be willing to be a silent partner in a real estate purchase.  People who buy 2nd deed notes are already familiar with the industry, and have money they lend out on a regular basis. If the research is done well, and the property is purchased in an area appreciating at a good rate, investors are not hard to find.

  Which leads us to the last question: where are the good deals today? Obviously, good deals in Santa Cruz County are few and far between. San Lorenzo Valley, long the bargain area, has seen their property values rise. Good deals are still found there, but often need work before they are ready to rent.  Watsonville is booming right now, showing the property appreciation Santa Cruz had in the last five years.

  Out of the county, buyers from Santa Cruz are checking out Bakersfield, Merced, Sacramento and Las Vegas.  Bakersfield has the twin advantages of proximity to Los Angeles and fairly high rents compared to the purchase price.  Merced will be the site of a new California State University, to be built in 2005.  Sacramento’s property values jumped over 20% last year.  Las Vegas is still the fastest growing area in the US, with a large population of renters.  Even farther away, North Carolina is seeing a tech boom, with a lot of computer companies relocating to an area where their employees can afford a house.  Ask your clients where they might want to retire.  If they buy a small retirement property now and rent it out for 10 years, it will be worth more, and cost less, than waiting until “later”.

  The real estate agents that take the extra step of addressing their clients needs, in this case income for retirement, instead of focusing simply on their wants, are the agents whose grateful clients will refer their family and friends for life.  You have become a trusted advisor, not simply a service provider, and they will make your business flourish. In the next issue: Part three: 1031 exchanges.

 

NEW REALTOR® MEMBERS for July/August

ABE Business Services, Wallace Berry; Advantage Properties, R. C. Johnston; American Dream Realty, Jack Engler; Bailey Properties, Inc., Chris Rebele, Peter Bell, Peter Luiten, Jay Gomez, Lorraine Donner, Wendy Seaman; Central Valley Real Estate, John Ballard; Century 21 Arrowhead, Felicia Lightfoot; Century 21 Award, Debbie Jelten, Steve Smith; Century 21 Lad, Pete Cullen, Gina Wheeler, Deborah Gozzo; Century 21 Showcase, Patti Lyles, Daniel Oster, Jennifer Walker, Monique Pacurariu, Trudi Iverson; Coldwell Banker Carl Conelly REALTORS®, Jean Kavanaugh; Coldwell Banker Jackson & Mann, Mark Rehnborg, Beth Steele, Vern Burchett, John Law, Cecilia Crocker; Office of John Daniel Hoggatt, REALTOR®, Rena Mills; Forno Realty, Sonya Forno; JRW Financial Services, Inc., Ron Morck; Network Alliance Real Estate, Patrick Fitzgerald, Martha Gomez, Ivan Niswonger, John Real, Jr., James Skolnick, Rena Johnson, Savannah Properties, Forrest Campbell; Sherman & Boone Associates, Linda Darrigo, Patricia Haynes, Karen Sanderson; Unique Homes & Land, Virginia Lee Roberts, Aaron Whiting, Western Appraisal, Bruce McGuire.

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

 

AFFILIATE SPOTLIGHT

Wilks Appraisal Service

Contact: Mary Lee Wilks

1452 7th Avenue

Santa Cruz, CA 95062

Phone: (831) 476-2776

Wilks Appraisal Service is a 20-year old residential appraisal company serving Monterey & Santa Cruz counties for the past 4 years. Previously the company was located in Sonoma County. Mary Lee Wilks is the Certified Appraiser with 2 appraiser trainees providing support. Mary Lee was a member of the Affiliate Committee for 2 years assisting with the Association’s Spring Fling. The office specializes in coastal properties. The goal of the company is friendly service with well thought out concise reports prepared in a timely manner.

 

SCAOR ANNUAL GOLF TOURNAMENT RESULTS

  On Friday, August 15, 2003 the Santa Cruz Association of REALTORS® held the Annual Charity Golf Tournament to benefit Families In Transition, Women’s Crisis Center, Second Harvest Food Bank, Habitat for Humanity-Local and the Santa Cruz Association of REALTORS Housing Foundation.  The proceeds from the event totaled over $13,000!

  The tournament took place at DeLaveaga Golf Course in Santa Cruz.  There were 138 players, 20 different Hole Sponsors, and 34 Raffle Prize Donors.  The tournament began at 1:00pm and was in the form of a four-person scramble. Most players finished their rounds by 7:00 p.m. then enjoyed the barbecue dinner and prize raffle.

  The winners of the tournament were 1st Place - Neil Pearlberg, Warren Penniman, Steve Pereira and Jon Twaddle, 2nd Place - Russell Gross, Gary Meadows, Albert Rudy and Chris Rudy, and 3rd Place -Dan Maloney, Graham Morland, James Rector and Greg Smith.  A Hole-In-One contest was also offered with a Harley Davidson Sportster as the prize, but unfortunately there was no winner.

            A special thank-you to all of the volunteers from the charities, hole sponsors and raffle prize donors.  Everyone involved in the tournament had a wonderful time and this year’s has been the most successful yet!

 

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.

  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. For answers to frequently asked questions, visit https://secure.dre.ca.gov/faqs/faqs_elic.htm.

 

FCC DELAYS IMPLEMENTATION OF DO-NOT-FAX RULES

  C.A.R. is pleased to announce that the Federal Communications Commission has delayed the effective date of burdensome new rules prohibiting unsolicited fax advertisements to January 1, 2005. (These rules were originally slated to take effect as early as August 25, 2003.) Because of the dramatic impact that the FCC’s rules would have on the business practices of many REALTORS®, associations of REALTORS®, and other businesses, C.A.R. petitioned the FCC to delay their implementation. This stay now allows time to seek clarification of these rules to ensure that they can be implemented more consistent with REALTORS®’ business practices.

These sweeping new rules would have banned the faxing of unsolicited advertisements even to persons with whom an advertiser has an existing business relationship. An advertiser would have needed a signed written consent from the intended recipient prior to faxing unsolicited materials. Even faxing information such as a property flyer in response to a client’s telephone request would have violated the rules. Therefore, while unsolicited faxes are still generally prohibited under federal law, this stay of the FCC’s new rules allows REALTORS® to continue faxing advertising materials to persons with whom they have existing business relationships or who request such materials.

  Readers wanting background information on this issue may review C.A.R.’s petition to the FCC at http://gullfoss2.fcc.gov/prod/ecfs/retrieve.cgi?native_or_pdf=pdf&id_document=6514582378.

 

NAR FORMS COMPANY TO MARKET NEW LOCKBOX

  NAR announced yesterday it has taken a majority position in a newly formed company, Sentrilock, LLC, that will manufacture and market lockboxes for real estate professionals. “For the first time in years, REALTORS® and REALTOR® organizations will have a real choice in lockbox systems,” said NAR President Cathy Whatley. The lockboxes will be sold through REALTOR associations and MLSs. Sentrilock will also be a REALTOR® VIP Program partner.

  For more info about the product call a Sentrilock representative at 877-736-8745 or to view the press release go to: http://www.realtor.org/PublicAffairsWeb.nsf/Pages/Sentrilock.

 

NEW TECH SESSIONS AT ANNUAL CONFERENCE

  NAR’s Center for REALTOR® Technology is sponsoring six high-level technology sessions at the REALTORS® Conference & Expo in San Francisco on Nov. 7 and Nov. 9.  The six IT Professional sessions, designed for association, MLS, and brokerage technology staff, include: Is Your Information Technology Secure; Using Web Services: Simple Object Access Protocol (SOAP) and XML; Listing Access with Peer-to-Peer Technology; Real Estate Transaction Standard (RETS); Technical Considerations of VOW Implementation; and an association technology roundtable. There’s no additional charge for registered conference attendees. For more info and to register for the Conference, Go To: http://www.realtor.org/

 

C.A.R. REPORTS MEDIAN PRICE INCREASED 19.1% IN JULY

  The median price of an existing home in California in July increased 19.1% and sales increased 10.2% compared to the same period a year ago, C.A.R. reported Monday. “Concerns about rising mortgage interest rates helped propel potential buyers who were on the fence into the housing market last month,” said C.A.R. President Toby Bradley. “As a result, sales in July hit their highest level this year. The median price of a home in California reached its greatest year-to year increase in July, posting a 19.1% gain to a record $383,320.”

  Closed escrow sales of existing, single-family detached homes in California totaled 595,860 in July at a seasonally adjusted annualized rate, according to information collected by C.A.R. from more than 90 local REALTOR® associations statewide. Statewide home resale activity increased 10.2% from the 540,800 sales pace recorded in July 2002. The statewide sales figure represents what the total number of homes sold during 2003 would be if sales maintained the July pace throughout the year. It is adjusted to account for seasonal factors that typically influence home sales.

  The median price of an existing, single-family detached home in California during July 2003 was $383,320, a 19.1% increase over the revised $321,900 median for July 2002, C.A.R. reported. The July 2003 median price increased 2.1% compared to a revised June 2003 $375,610 median price.

 

NOMINATIONS NEEDED

  A Call for 2004 Santa Cruz Association of REALTORS Housing Foundation Board of Trustees Nominations.  The Santa Cruz Association of REALTORS® is looking for a slate of Trustees for the newly-created Santa Cruz Association of REALTORS Housing Foundation.  If you wish to be considered for nomination to the Board of Trustees, please fill out the form below or send an e-mail including your bio, to Philip Tedesco, CAE, Executive Officer (ptedesco@scaor.org) by September 30, 2003.  YOU can make a difference!

Mail or Fax to:  Philip Tedesco, CAE, Santa Cruz Association of REALTORS®, 2525 Main Street, Soquel, CA 95073.  Phone: 831/464-2000, Fax: 831/464-2881, E-mail: ptedesco@scaor.org

Required Section:

Name: __________________________________________________________________________ Firm:___________________________________________________________________________

Address: ________________________________________________________________________

Reason I wish to serve: _____________________________________________________________

Optional Section:

C.A.R. and/or NAR activity (if any): __________________________________________________

Community Activity: _______________________________________________________________

NOMINATIONS MUST BE RECEIVED NO LATER THAN SEPTEMBER 30, 2003