September 2010 El Paso Realtor Magazine
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1 September 2010 El Paso Realtor Magazine elpasorealtor.com 1
2 We ll Help Put Your Clients In The Right Home. Right Away. When it comes to providing safe and sound mortgage loans for your clients, GECU is still going strong. Just like we ve been doing for more than 50 years. We ll find the right mortgage loan that your clients can afford, and then walk them through the lending process with fast, caring service. It not only makes your clients happier, it makes your job easier, too. GECU offers your clients: GECU loans: Conventional, FHA and VA Simplified mortgage loan pre-qualification Competitive, low interest rates Lower closing costs To find out more about our services, call the Mortgage Loan Department at or log on to SmartBranch at Subject to credit approval. Anyone living or working in El Paso County or Doña Ana County not more than 25 miles from our 1500 North Resler office is eligible for GECU membership. 2 elpasorealtor.com (left to right from back) Eddie Lopez, Lorenzo El Reveles, Paso Sandra Realtor Lujan, Jose Magazine A. Avila, Jr., Terry September Vargas, Pamela Herron, 2010 Araceli Aguilera, Monica Gonzalez, (front) Lettie Ramos
3 + PRESIDENTS WELCOME D O U G H A M I LT O N Vacant Building Ordinance These last several weeks, we spent a lot of time working on the proposed new city Vacant Building Ordinance. We felt the initial proposal was greatly overreaching, expensive to property owners and unfair to many citizens. Among the changes called for were: any building vacant for 180 days to be registered and inspected by the City for a fee, a 50% occupancy meant it was considered vacant, it required a 1 hour response time from the owner 24/7/ 365, applied city wide for every building residential and commercial, required the names of all lien holders, often a minimum of $1 million insurance coverage, and sometimes retrofitting and the addition of sprinkler systems. The Governmental Affairs Committee discussed and worked on the issue as did your leadership. I appointed a special Task Force of property managers and commercial and residential members with Scott Kesner as Chairman to study and set our course of action. About noon that first day, I spoke with Travis Kessler, the President and CEO of the Texas Association of Realtors telling him about the city proposal and its potential harm to property owners. Within about 3 hours, we held a conference call with Travis, both lead TAR Governmental Affairs Directors Mark and Daniel, TAR lead attorney Tom Morgan and about five of us here in El Paso. They inspired and energized us as they reacted to the proposal, agreeing that it was overwrought, egregious and damaging to property owners! They also gave us several astute strategic ideas including a suggestion we push for a Dangerous Building definition rather than a Vacant Building one. I feel we made some gains based on that thinking as we usually referred to dangerous rather than vacant buildings. We had earlier sent TAR the City s proposal and had already started collecting vacant building ordinances from cities around the state. In studying the other ordinances we discovered our ordinance was almost an exact copy of a Dallas ordinance limited to only the Dallas Central Business District! The Task Force began to determine what our position would be, what changes were the highest priority and what was feasible to get passed. The Task Force met every time the city changed their proposal. They met several times with just City Staff and also with individual members of City Council to be sure they understood our position as well as to evaluate likely support. Then we spoke at the City Council meeting. Representative O Rourk made the key motion containing most of our priority changes. And Representative Ortega mediated the discussion to arrive at an 8-0 vote in favor. The final Ordinance included: it applied to only 4 smaller areas of El Paso plus any building already identified as Boarded and Secured, registration is required only after vacant for two years, one resident in a residential home means not vacant, 60% vacant before being identified as vacant, no fee for the inspection, no owner response time mentioned and a March 1, 2011 implementation date. Congratulations and thanks to all involved. We must and will continue to monitor the progress and implementation of the new ordinance. G R E A T E R E L P A S O A S S O C T I O N O F R E A LT O R S P R E S I D E N T - Doug Hamilton September 2010 El Paso Realtor Magazine elpasorealtor.com 1
4 IMPORTANT REMINDERS GEPAR QUARTERLY BILLING SCHEDULE 4TH QUARTER BILLING /01/2010 Suspension and $50.00 reconnect fee 11/01/2010 Suspension of office if members are past due w/active license. 12/01/2010 Termination of office if members are past due w/active license. 1st QUARTER BILLING /15/2010 Notice will be ed 11/30/2010 1st quarter payments due STAY INFORMED & CONNECT ONLINE! FOLLOW US AT /// E L PA S O R E A LT O R. C O M vote NOVEMBER2 FEDERAL, STATE AND LOCAL ELECTIONS EARLY VOTING October 18, October 29, 2010 Must register to vote by October 4, 2010 Register online: Rgister in person at the Greater El Paso Association of Realtors associations office. For further questions contact Armando Rodriguez: or arodriguez@gepar.org ASSOCIATION OFFICERS - Doug Hamilton [ President ] - Linda Bastraw [ President- Elect] - Jennifer Stroh [Secretary/ Treasurer ] - Suzy Shewmaker Hicks [ Immediate Past President ] - Sharron Ramirez [ CEO ] ASSOCIATION DIRECTORS - Frances Moran - Jim Howard - Elizabeth Golden - Yolie Stanton - Al Jurado ASSOCIATION DIRECTORS Susan Craig - Caroline Camfield - Andrew Haggerty - Mackie Sue Gilchrist - Douglas Van Nortwick MLS BOARD OF DIRECTORS - Patti Olivas [ President ] - Bill Stanton [ Vice President ] - Angel Ochoa [ Secretary/ Treasurer ] - Rick Snow - Robert Lozano - Dolores Guevara - Jesus Barraza - Andrew Gomez - Angelo Amoriello NAR DIRECTOR - Michael Bray TAR DIRECTORS - Sonja Van Nortwick - Linda Bastraw TAR NOMINATING COMMITTEE - Elizabeth Leal TAR REGIONAL VICE PRESIDENT - R. Scott Kesner TAR TREPAC TRUSTEE - Karen Porter 6400 GATEWAY EAST BLVD EL PASO, TX, (915) POLITICAL INVOLVEMENT COMMITTEE - Jenifer Stroh COMMITTEE CHAIRMAN - Jenifer Stroh [ Budget & Finance ] - Alma Miller [ Education ] - Cheryl Williams [ Fair Housing/ Equal Opportunity ] - Yoli Chavez [ Governmental Affairs ] - Socorro Cochran [ TREPAC ] - Yolie Stanton [ REALTOR / Builder ] 2 elpasorealtor.com El Paso Realtor Magazine September 2010
5 > EXPERT ADVISORS Real Estate Ethics Variable rate commissions When inputting listings, one of the boxes that needs to be answered either yes or no addresses the variable rate commission. I would guess that many times this box is checked no but in reality it should have been checked yes. The variable rate commission is a commission charged to the seller that deviates from the overall commission if you agree to charge a lesser commission if you or someone from your office sells the property. In terms of an actual scenario, let us say you charge a seller a commission of 6 per cent but tell the seller you will reduce the commission if you or someone from your office sells the listing. That is a variable rate commission and when it turns into a problem, if not accurately disclosed, is when two offers are presented and one of the offers is from you or your office. You would need to tell the other agent there is a variable rate commission on the property and what the differential would be so that the cooperating broker s client has an opportunity to match the differential to make the net effect identical to the seller. I believe in the majority of cases, the listing agent does not correctly disclose the existence of a variable rate commission. Article 3 of NAR s Code of Ethics, Standard of Practice 3-4 addresses this issue. Also, I would believe by not disclosing the existence of a variable rate commission an agent is also violating Article 1 of the Code of Ethics that states the REALTORS obligation to their client is primary, but it does not relieve REALTORS of their obligation to treat all parties honestly. Intermediary Relationship Notice This form, which is utilized on an in-house transaction, can only be used if the listing agent has a written listing agreement (which they almost always do) and the buyer s agent has a written buyer s representation agreement (which they seldom do). An important provision of this notice (Paragraph F) is frequently overlooked. This paragraph instructs the agents to disclose material information related to Broker s relationship to the parties, such as personal relationships or prior or contemplated business relationships. If you are selling a home to a friend that personal relationship must be disclosed. The sale of a property to a family member would be disclosed in the Special Provisions paragraph of the contract. Likewise, if your client is a past client, or you anticipate future business with them, that must also be disclosed in the Intermediary Relationship Notice. TAR form for withdrawal of an offer I am sometimes asked whether TAR has a form in existence for the withdrawal of an offer and the answer is no, there is not. If you have submitted an offer or a counter, and your client wants to withdraw their offer or counter, the agent needs to send a fax to the other agent notifying them of the withdrawal. Faxes are best in this situation due to the fact that they generally provide a confirmation of its receipt; and I would follow it up with a phone call as common courtesy to the other agent. Top Ten Most Stressful Occupations of 2010 Are any of us really surprised, that in a study of 200 occupations, ours placed number 10 on the list. Obviously, as markets take downward turns we have to deliver less than favorable news to many sellers, and we have a smaller pool of buyers to work with. This study showed most real estate agents worked 9 to 10 hours per day. We may want to let our clients know that we can empathize with them being that we work in one of the most stressful careers there is. I welcome your comments and questions to Steve@SteveCarvalho.com. S T E V E C A R V A L H O, C R S G E P A R N E W M E M B E R E T H I C S I N S T R U C T O R September 2010 El Paso Realtor Magazine elpasorealtor.com 3
6 GEPAR & MLS Election Guide 2011 ELECTION OF ASSOCIATION OFFICERS The Nominating Committee announces the candidates running for GEPAR Officers and Directors. You will be voting for President-Elect & Secretary / Treasurer and for five (5) Directors. You may vote by proxy and mail it back on or before October 1, 2010 or you may vote by ballot in person at the Association Office the week of September 27th through October 1st. All votes must be in b 5:00 p.m. on October 1st. > 2011 PRESIDENT - LINDA BASTRAW Realty World-C. Starr Realty President Elect 2010 Secretary/Treasurer 2009 GEPAR Director TAR Director Budget & Finance Committee 2003-present Grievance Committee Governmental Affairs Committee TREPAC Committee Professional Standards Committee > 2011 PRESIDENT - ELECT - JENNIFER STROH Century 21 The Edge Secretary Treasurer 2010 Region 16 Representative to the Political Involvement Committee at TAR Board of Directors Governmental Affairs Committee Education Committee Grievance Committee TREPAC Chair 2005 TREPAC Committee 2004-present Salesman of the Year 2005 > 2011 SECRETARY/ TREASURER ELECT - KENNY GROSS ERA Priority One Real Estate MLS President MLS Board of Directors GEPAR Board of Directors REALTOR Commercial Alliance President elpasorealtor.com 5 El Paso Realtor Magazine September 2010
7 GEPAR BOARD OF DIRECTORS NOMINEES Timothy Cantrell One Realty El Paso REALTOR Budget & Finance 2007-present REALTOR /Builder Committee Socorro Cochran Santa Fe Realty Co-owner/REALTOR TREPAC Chairman 2000 & 2010 Education Committee 2010 Governmental Affairs GEPAR Director Salesman of the Year 1998 Jim Howard RE/MAX Real Estate Group Broker/Co-Partner GEPAR Director Budget & Finance Committee GEPAR President 1985 Past GEPAR Director Al Jurado Anycasa Realty Broker/Owner GEPAR Director Grievance/Professional Standards Committee 2006 to present Governmental Affairs Co-Chair 2010 TREPAC Committee Alma Miller A2Q Realty Chairman, Education Committee 2010 Education Committee 2007-present Grievance/Professional Standards Committee 2007-present CIBA President 2010 Mickey Molina Century 21 The Pass Governmental Affairs Committee Lock Box Task Force 2010 Grievance Committee Mtg. Bankers Lifetime Honorary member & 2008 Associate of the Year Patti Olivas Dan Olivas & Associates Broker/Associate Owner GEPAR REALTOR of the Year 2009 MLS President 10 MLS Vice President MLS Board of Directors Task Forces: Innovia 2004, MLExchange 10 Jennifer Woo Sandy Messer & Associates WCR Vice President of Membership MLS BOARD OF DIRECTORS NOMINEES The MLS Nominating Committee announces the candidates running for MLS Board of Directors. The MLS Participants (DR) will be voting for two (2) Directors for the two year position. You may vote by proxy and mail it back on or before October 1, 2010 or you may vote by ballot in person at the Association Office the week of September 27th through October 1st. All votes must be in by 5:00 p.m. on October 1st. Cathy Few ACT Realty Broker/Owner Education Committee REALTOR /Builder Committee 2010 Governmental Affairs Committee 2010 Advertising Committee 2008 Rick Chumsae Skye Brokerage Broker/Owner GEPAR Board of Directors Governmental Affairs Committee Frances Moran Moran & Associates Broker/Owner GEPAR Board of Directors Budget & Finance 1994-present MLS Task Force 2010 MLS Board of Directors Robert Lozano ERA Sellers, Buyers & Assoc. Office Manager/REALTOR MLS Board of Directors Nominating Committee 2005 WCR Chapter President 2005 Rick Snow First Choice Realty Broker/Owner MLS Board of Directors MLS Secretary / Treasurer Grievance/Professional Standards Committee September 2010 El Paso Realtor Magazine elpasorealtor.com 5
8 > ASSOCIATION EVENTS AUGUST 2010 AMBASSADOR SERIES EMMA WOLLSCHALER SCHWARTZ GEPAR welcomed Emma Wollschlager Schwartz, President of the Medical Center of the Americas (MCA) Foundation at last month s Ambassador Series on August 20, She discussed on new developments that are centered to making MCA a reality and the impact it has for El Paso s future. GEPAR STRATEGIC PLAN WORKSHOP 2010 On August 23, 2010 your colleagues, members and leadership team of the Greater El Paso Association of Realtors came together in an all day work shop to strategically plan the direction of the organization for the next three years. TREPAC EL PASO ROCKS Our TREPAC El Paso Rocks Sweepstakes was held on August 26th at Forti s Mexican Elder. 6 elpasorealtor.com 7 El Paso Realtor Magazine September 2010
9 > TREPAC CONTRIBUTIONS TREPAC CONTRIBUTIONS PRESENTED TO GEPAR RECOMMENDED CANDIDATES During the Spring GEPAR recommended candidates received TREPAC contributions. Many of the candidates are facing opposition in the Tuesday, November 2 General Election. Winners of this fall s elections will serve at the local, state and federal levels of government. R. Scott Kesner, Dan Olivas, Sharron Ramirez, Al Jurado, Yoli Chavez, Andrew Haggerty, State Rep. Chente Quintanilla, Michael Bray, Karen Porter, Doug Hamilton, Sam Trimble, Martha Maldonado, Frances Munoz R. Scott Kesner, Al Jurado, Yoli Chavez, Michael Bray, State Rep. Joseph Moody, Karen Porter, Sam Trimble, Sharron Ramirez, Doug Hamilton, Andrew Haggerty, Martha Maldonado, Dan Olivas Sharron Ramirez, R. Scott Kesner, Al Jurado, Yoli Chavez, State Rep. Joe Pickett, Michael Bray, Karen Porter, Andrew Haggerty, Doug Hamilton, Dan Olivas, Sam Trimble, Martha Maldonado R. Scott Kesner, Al Jurado, Yoli Chavez, State Rep. Marisa Marquez, Michael Bray, Karen Porter, Frances Munoz, Doug Hamilton, Andrew Haggerty, Dan Olivas, Sam Trimble, Martha Maldonado R. Scott Kesner, Sharron Ramirez, Al Jurado, Yoli Chavez, Michael Bray, State Senate Candidate Jose Rodriguez, Andrew Haggerty, Karen Porter, Sam Trimble, Doug Hamilton, Martha Maldonado, Frances Munoz, Dan Olivas Al Jurado, Doug Hamilton, Karl McElhaney (Congressman Reyes Office), Linda Bastraw, Jennifer Stroh September 2010 El Paso Realtor Magazine elpasorealtor.com 7
10 + BY THE NUMBERS J U LY C O M P A R I S O N elpasorealtor.com El Paso Realtor Magazine September 2010
11 > MARK YOUR CALENDAR SEPTEMBER 1 8:00 am - Orientation 2 8:30 am - RCA Weekly Mtg 1:30 pm - Gov. Affairs Committee Mtg 2:30 pm - TREPAC Committee Mtg 6 Office Closed 7 9:00 am - EXIT Progressive Realty Office Mtg 12:00 pm - CIBA Monthly Board Mtg 1:30 pm - Education Committee Mtg 8 9:00 am - Success Realty 9 8:30 am - RCA Weekly Meeting 2:30 pm - GRI Mixer 10 TAR Convention OCTOBER 1 GEPAR Voting 4th QUARTER SUSPENSIN & $50.00 RECONNECT FEE 8:30 am - Board of Directors 4 12:30 pm - Toastmasters 5 9:00 am - EXIT Progressive Realty Office Mtg 12:00 pm - CIBA Monthly Mtg 1:30 pm - Education Committee Mtg 6 8:00 am - Orientation 9:00 am - Success Realty 7 8:00 am - PMN/ WCR 8:30 am - RCA Weekly Mtg 1:30 pm - Gov. Affairs Committee 2:30 pm - TREPAC Committee Mtg NOVEMBER 1 4th QUARTER SUSPENSION OF OFFICE IF MEMBERS ARE PAST DUE W/ ACTIVE LICENSE 12:30 pm - Toastmasters 2 9:00 am - EXIT Progressive Realty Office Mtg 12:00 pm - CIBA Monthly Mtg 1:30 pm - Education Committee Mtg 3 NAR Convention 8:00 am - Orientation 4 8:30 am - RCA Weekly Mtg 1:30 pm - Gov. Affairs Committee Mtg 2:30 pm - TREPAC Committee Mtg 11 TAR Convention 12 TAR Convention 13 TAR Convention 12:30 pm - Toastmasters 14 TAR Convention 15 TAR Convention 9:00 am - Finance Seminar 12:30 pm - Budget & Finance Committee 2:00 pm - Executive Committee 16 8:30 am - RCA Weekly Mtg 20 12:30 pm - Toastmasters 8 Office Closed 8:00 am - REALTOR Rally!!! 11 12:30 pm - Toastmasters 12 8:00 am - MCE 13 BOLC Austin 8:00 am - MCE 14 BOLC Austin 8:30 am - RCA Weekly Mtg 15 BOLC Austin 18 8:30 am - GRI 12:30 pm - Toastmasters 19 8:30 am - GRI 9:00 am - EXIT Progressive Realty Office Mtg 8 12:30 pm - Toastmasters 9 8:00 am - MCE 10 8:00 am - MCE 9:00 am - Success Realty 1:30 pm - Budget & Finance Committee 2:00 pm - Executive Committee 11 8:30 am - RCA Weekly Mtg 15 12:30 pm - Toastmasters 16 9:00 am - EXIT Progressive Realty Office Mtg 17 8:30 am - MLS Board of Directors 21 8:00 am - MCE 9:00 am - EXIT Progressive Realty Office Mtg 22 8:00 am - MCE 8:30 am - MLS Board of Directors 23 8:30 am - RCA Weekly Meeting 27 GEPAR Voting 12:30 pm- Toastmasters 28 GEPAR Voting 1:00 pm - CIBA Governing Board 29 GEPAR Voting 30 GEPAR Voting 8:30 am - RCA Weekly 20 1:30 pm - Budget & Finance Committee 2:00 pm -Executive Committee 21 8:30 am - RCA Weekly Mtg 22 1:00 pm - Ambassador Series 25 8:30 am - GRI 12:30 pm - Toastmasters 26 1:00 pm - CIBA Governing Board Mtg 8:30 am - GRI 27 8:30 am - MLS Board of Directors 28 8:30 am - RCA Weekly Mtg 8:30 am - Board of Directors 18 8:30 am - RCA Weekly Mtg 19 8:30 am - Board of Directors 1:00 pm - Ambassador Series 6:00 pm - Installation Banquet 22 12:30 pm -Toastmasters 25 Office Closed 26 Office Closed 29 12:30 pm - Toastmasters 30 1:00 pm - CIBA Governing Board Mtg G E P A R U P C O M I N G E V E N T S September 2010 El Paso Realtor Magazine elpasorealtor.com 9
12 6400 GATEWAY EAST BLVD EL PASO, TX, (915) elpasorealtor.com El Paso Realtor Magazine September 2010
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