MARYLAND REALTOR FORMS

Transcription

1 VOLUME LII NUMBER 6 / NOVEMBER 2018 NEW AND REVISED MARYLAND REALTOR FORMS mdrealtor.org / marylandhomeownership.com 4 Annual Conference Highlights Getting Back to Basics Bright Change is here MARYLAND REALTORS The Voice For Real Estate In Maryland

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3 TABLE OF CONTENTS FEATURES 2018 ANNUAL CONFERENCE HIGHLIGHTS REALTOR OF THE YEAR 6 GETTING BACK TO BASICS Why a financial game plan is so important SUMMARY OF CHANGES & PRACTICE TIPS 12 DESIGNATIONS & CERTIFICATIONS 19 SELL MORE WITH MARYLAND! ANNUAL CONFERENCE HIGHLIGHTS 4 DEPARTMENTS PRESIDENT S PERSPECTIVE 3 COMMISSIONER CORNER 26 COMMUNICATING SUCCESSFULLY WITH INTERNATIONAL INVESTORS 30 RESIDENTIAL SALES 32 BRIGHT MLS GETTING BACK TO BASICS SUMMARY OF CHANGES & PRACTICE TIPS 35 CHANGE IS HERE MARYLAND REALTOR NOVEMBER

4 2018 Maryland REALTORS Leadership Team REALTORS Merry Tobin President RE/MAX Executive 1919 Main Street Chester, MD John A. Harrison President-Elect RE/MAX Executive 8432 Veterans Hwy., Suite A Millersville, MD johnh@remax.net Maryland REALTORS 200 Harry S Truman Parkway Suite 200 Annapolis, MD Leadership Team Merry Tobin President John A. Harrison President-Elect Craig Wolf Treasurer Dee Dee Miller Secretary Boyd Campbell Immediate Past President Charles Kasky, RCE Chief Executive Officer Editor Melissa Lutz melissa.lutz@mdrealtor.org Advisory Committee Avi Adler Chair Advertising Arlene Braithwaite Publication Design HBP, Inc., 952 Frederick Street, Hagerstown, MD Dee Dee Miller Secretary Long & Foster Real Estate 568 A-Ritchie Hwy. Severna Park, MD deedee@lnf.com Craig Wolf Treasurer American Home Shield 907 Autumn View Ct. Bel Air, MD cwolf@ahslink.com Mission Statement The Maryland REALTORS exists to support all segments of its membership and their specialties. Maryland REALTORS, through collective efforts with local boards/associations and the National Association of REALTORS : Develops and delivers programs, services and related products that maintain and elevate the high standards of the real estate business and the professional conduct of its practitioners; Assists members in ethically and professionally serving the public; Promotes and preserves the right to own, transfer and use real property; and Protects the right of members to conduct business within a framework of fair and reasonable laws and government regulations. In principle and in practice, Maryland REALTORS values and seeks diversity and inclusive participation within the field of real estate and recognizes each member as a unique individual. Boyd Campbell Immediate Past President Century 21 New Millennium 4201 Northview Drive #103A Bowie, MD boyd@boydcampbell.com Charles Kasky, RCE Chief Executive Officer Maryland REALTORS 200 Harry S Truman Parkway, Suite 200 Annapolis, MD chuck.kasky@mdrealtor.org Maryland REALTOR (USPS ) is published bimonthly by Maryland REALTORS, Suite 200, 200 Harry S Truman Parkway, Annapolis, MD Periodical postage paid at Annapolis and additional mailing offices. Postmaster send address changes to: Maryland REALTOR, Suite 200, 200 Harry S Truman Parkway, Annapolis, MD Member subscriptions of $3.81 are paid with annual dues. This publication is designed to provide accurate and authoritative information regarding the subject matter covered. It is offered with the understanding that the publisher is not engaged in rendering professional advice. If legal advice or other expert assistance is required, the services of a competent professional should be sought. Articles that appear in Maryland REALTOR are an informational service to members. Their contents are the opinions of the authors alone and do not necessarily represent those of Maryland REALTORS. Permission to reprint articles appearing in Maryland REALTOR magazine must be requested in writing. Also include purpose for request. While this magazine makes a reasonable effort to establish the integrity of its advertisers, it does not endorse advertised products or services unless specifically stated Maryland REALTORS, Inc. 2 MARYLAND REALTOR NOVEMBER

5 Maryland President s Real Perspective Estate Commission MERRY TOBINNews KATHERINE CONNELLY The Value of R Hello, I am Merry Tobin, your 2019 Maryland REALTORS President. I look forward to committing my time and energy over the next year to promote and evolve the excellent services the association provides to Maryland REALTORS. First, I want to focus the Association s efforts on the value of the R by promoting the benefits & resources of the state association to our 27,000 members. There is such tremendous value in the Association. We must let everyone know where to go when they have a problem or an issue. I would like to implement a public service campaign to bring more awareness and information to the general public about what it means to have a REALTOR handle their transaction and the difference between a REALTOR and a licensed real estate practitioner. I don t believe the general public truly understands the value we bring. We need to tell our story. I would like to acknowledge outgoing President Boyd Campbell s commitment to professionalism in our industry. I plan to continue his initiative in bringing that message to our members. Veteran s housing is another issue I would like to tackle. It s vital that we promote a greater awareness of homelessness among our veterans and find ways that REALTORS and the local associations/boards can work together to provide housing solutions for those who have given us so much and helped preserve our freedoms. The Chesapeake Bay is another area I am going to be focusing my efforts on in the coming year. I have been a long-time board member for the Chesapeake Bay Environmental Center. I want to explore ways that our members can work to become better stewards of the beautiful bay that we all call home. It s yet another way we can serve our clients. We will continue to call on you to respond to Calls for Action and volunteering your time when needed. It s vital our elected officials understand the impact of real estate, and our collective voices are the ones needed to remind them of that. As one of my first acts, I will be appointing a Presidential Advisory Group to prepare recommendations as to how we might revise the current nominating committee process to make it more inclusive. This effort was initiated by my predecessor, Boyd Campbell, with the hope it will encourage more members to run for elective office within the Association structure. Lastly, I am eager to encourage more women to become Brokers and Broker Owners. A recent NAR member profiles says that 63% of the members are women, while only 57% of those are brokers. We must do a better job of providing opportunities for women to expand their businesses and give back to their associations. I ll be working closely with the staff in the coming months to plan the first ever Women in Real Estate Conference in Maryland. I look forward to seeing all of you there in June. In the meantime, I hope you have a wonderful holiday season. MARYLAND REALTOR NOVEMBER

6 2018 ANNUAL CONFERENCE HIGHLIGHTS A SPECIAL THANK YOU TO THE 2018 MAIN CONFERENCE SPONSOR BRIGHT MLS Boyd Campbell and Tom Phillips, Bright MLS President and CEO PLATINUM SPONSOR Century 21 Real Estate INSTALLATION BANQUET SPONSORS Greater Baltimore Board of REALTORS Bay Area Association of REALTORS Greater Capital Area Association of REALTORS Prince George s County Association of REALTORS RE/MAX LLC Sandy Spring Bank Cheryl Abrams-Davis (left), 2018 Prince George s County President; Nathan Murray, Broker/Owner of RE/MAX Executive; Anita Davis, Greater Baltimore Board of REALTORS ; Merry Tobin (middle), 2019 Maryland REALTORS President; Reatha Arrabal (right), Bay Area Association of REALTORS President; Tom Daley, President, Greater Capital Area Association of REALTORS. FORMER PRESIDENT SPONSORS Jack Steffey 1956 Maryland REALTORS President Bud Church 1987 Maryland REALTORS President Dale Ross 1989 Maryland REALTORS President Michael Yerman 1991 Maryland REALTORS President Harold Huggins 1999 Maryland REALTORS President JoAnne Poole 2005 Maryland REALTORS President Al Ingraham 2006 Maryland REALTORS President Carole Maclure 2008 Maryland REALTORS President Steve Meszaros 2010 Maryland REALTORS President Cathy Werner 2011 Maryland REALTORS President Carlton Boujai 2013 Maryland REALTORS President Janice Kirkner 2015 Maryland REALTORS President 4 MARYLAND REALTOR NOVEMBER

7 WILLIAM J NEARY COMMUNITY ACTION AND REALTOR EXCELLENCE (CARE) AWARD This award recognizes outstanding achievements in community service by our local Associations/Boards. Mid-Shore Board of REALTORS President, Daphne Cawley (left) accepts the Large Board Award from CARE Committee Co-Chair, Grace Masten (right). Southern Maryland Association President, Kathy Suite (left) accepts the Small Board Award from CARE Committee Co-Chair, Grace Masten (right). COMMUNITY SERVICE AWARD This award honors an individual REALTOR who gives unselfishly of their time to assist the communities in which they live. Merrilie Ford (right) with the Mid-Shore Board of REALTORS accepted the award from 2017 Communications Committee Chair, Pam Harrison (left). OMEGA TAU RHO AWARD 2017 President, Shelly Murray, 2017 REALTOR of the Year, Tim Knobloch were inducted into the Omega Tau Rho fraternity by Anne Arundel County Chief Executive Officer, Tom Quattlebaum and the Greater Capital Area Association of REALTORS Chief Executive Officer, Mike Moran. This honor is granted by state and local association/boards to members or staff who have shown exemplary dedication and service to the REALTOR organization. PRESIDENT S AWARD Ronnette Earle was this year s President s Award recipient for her hardwork and dedication as chair of the Commercial Symposium Subcommittee. Ronnette Earle (right) accepts the President s Award from President, Boyd Campbell. Anne Arundel County Chief Executive Officer, Tom Quattlebaum (left) Shelly Murray (middle) and, Greater Capital Area Association of REALTORS, Chief Executive Officer Mike Moran (right) Anne Arundel County Chief Executive Officer, Tom Quattlebaum (left) and Tim Knobloch (right) SHINING STAR AWARD This award recognizes a REALTOR who has demonstrated outstanding commitment to our programs and activities. Sarah Anderson (right) accepts the Shining Star Award from President, Boyd Campbell. MARYLAND REALTOR NOVEMBER

8 2018 REALTOR OF THE YEAR Greater Capital Area Association of REALTOR of the Year, Shelly Murray accepts the REALTOR of the Year Award from 2017 REALTOR of the Year, John A Harrison REALTOR OF THE YEAR NOMINEES Back row (L to R): Ivy Gifford, Carroll County Association; Tom Coard, Harford County Association; Cheryl Abrams-Davis, Prince George s County Association; Molly King, Pen-Mar Association; Dan Iampieri, Howard County Association. Front row (L to R): Kim Mills, Anne Arundel Association; Shelly Murray, Greater Capital Area Association; Peter Murray, Frederick County; Sheila Washburn, Mid-Shore Board; Biana Arentz, Bay Area Association. Not pictured: Ashley Richardson, Greater Baltimore Board; Deanna Murphy, Cecil County Board; Linda Moran, Coastal; Jay Ferguson, Garrett County. 6 MARYLAND REALTOR NOVEMBER

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10 Chuck Kasky, CEO, Maryland REALTORS and Outgoing President, Boyd Campbell 2018 Annual Conference Committee chair, Don Bailey 2016 Maryland REALTORS President, Bonnie Casper installed 2019 President, Merry Tobin. Mark Mansour, 2018 NAR Region 3 Vice President installed the 2019 Officers. 8 MARYLAND REALTOR NOVEMBER

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12 GETTING BACK TO BASICS Why a financial game plan is so important BRETT SAUSE LUTCF, LTCP, CLTC, RFC, LACP, FSCP 10 MARYLAND REALTOR NOVEMBER

13 Many of us are familiar with the expression, failing to plan is planning to fail. As a financial adviser, I can assure you that when it comes to financial goals and objectives this old adage still rings true. In fact, it may be more relevant than ever. It isn t easy for some Americans to make financial headway. With pensions in decline and interest rates inching up from historic lows, it usually takes persistence and sound planning to get ahead. Not sure how to begin? That s okay it s easy to become overwhelmed if you think about all your needs at once. Instead, try taking it one step at a time, starting with the basics: Build an emergency fund No matter where you are in life, it s important to set aside 8 10 months of living expenses. You don t have to do it all at once, but every dollar you save today is a dollar you won t have to borrow if something unexpected happens. Protect your home and family Most of us have people who depend on us to keep a roof over their heads and food on their plates. That s a big responsibility, but it s one life insurance can help you meet even if something tragic takes you away. You can start with an affordable term life plan at first, and then add more coverage as your needs and budget grow. Prepare for major expenses like college If you re a parent or grandparent, you naturally want the best for your loved ones. Now s the time to start a college or wedding fund so they won t have to go into debt to make their dreams for the future come true. Get ready for retirement There are plenty of ways to set aside money for retirement: 401(k)s, IRAs, and fixed deferred annuities just to name a few. But they all have one thing in common the sooner you start, the better off you ll be in the long run. Try to increase your contributions over time perhaps 1% with each raise or, if you are age 50 or older, look into some of the catch-up provisions that may allow you to contribute even more. According to the National Association of REALTORS, 43% of its members are not saving for retirement. Given that the average age of a REALTOR is 54, it stands to reason that quite a few have some catching up to do. If you ve not made retirement planning a priority, don t panic, there are steps you can take to start now. Evaluate your monthly expenses and see where you might be able to make adjustments to divert money into a retirement plan. Even just $500 per month invested wisely can help build a nest egg. You also may want to plan to work a few years longer than expected to delay drawing Social Security benefits. Although the economy has been steadily growing for the past ten years, it still makes sense to stay focused on the things that really matter. A sound financial game plan can help you accomplish many things but perhaps the most important is making sure you don t lose sight of your goals. To learn more about creating a financial plan, you can contact Brett M. Sause, LUTCF, LTCP, CLTC, RFC, LACP, FSCP, at Atlantic Financial Group, or visit the Center for REALTOR Financial Wellness at MARYLAND REALTOR NOVEMBER

14 2018 SUMMARY OF CHANGES & PRACTICE TIPS 12 MARYLAND REALTOR NOVEMBER

15 THE EFFECTIVE DATE OF THE FORMS IS OCTOBER 1ST, The New Forms are: Escrow Agreement between Buyer, Seller, and Escrow Agent This form is intended to be used in situations where a third-party escrow agent (not the Broker) will hold the deposit. PRACTICE The Escrow Agreement is not part of the contract of sale. Buyer, Seller, and Escrow Agent would sign the Escrow Agreement immediately following contract formation. TIP PRACTICE The agents involved in the transaction should confirm with the Escrow Agent that the earnest money deposit has been received. They should also make a written note to the file to document the inquiry. Additionally, the agents involved in the transaction should get written confirmation that the escrow monies have been deposited into the escrow account. TIP Buyer Hold Harmless Agreement This form is intended to be used in situations where Buyer submits an offer on a property sight unseen. PRACTICE Buyer Broker/Agent is advised to alert Buyer that Buyer should do Buyer s due diligence. Buyer Broker/Agent should inform Buyer that Buyer Broker/Agent is not an inspector, contractor, surveyor and so on. In other words, Buyer Broker/Agent is advised to put Buyer on notice that it s in Buyer s best interest to actually see the property to ensure that it suits Buyer s needs. TIP MARYLAND REALTOR NOVEMBER

16 Tenant Occupied Addendum This form is intended to be used in situations where Seller is conveying the property with a tenant in possession. PRACTICE Buyer should be alerted that Buyer may need to obtain a rental license depending on where the property is located. Additionally, if the property was constructed prior to 1978, Buyer should be alerted that lead registration is not transferable. Lastly, Buyer should be made aware that bona fide tenants living in foreclosed properties are afforded certain protections under federal and state law. TIP The following Addenda will be removed from Maryland REALTORS forms library: HAFA Addendum to Exclusive Right to Sell Residential Brokerage Agreement HAFA Addendum to Residential Contract of Sale Note These forms are being removed from the library because the HAFA Program has ended. The following revisions were made to the Contracts of Sale: Residential Contract of Sale Paragraph 14 Agriculturally Assessed Property A minor clarification was made to this provision. PRACTICE The parties should be alerted that if the property is assessed in the agricultural use category and Buyer does not intend to use the property for agricultural purposes, the Agricultural Land Transfer Tax may become due and could be substantial. TIP Paragraph 25B Transfer Charges The last four lines of Paragraph 25B were made bold. PRACTICE The parties should be advised that they only need to include the First-Time Maryland Homebuyer Addendum if they are not going to split payment of recordation and local transfer taxes. TIP Paragraph 60 Electronic Delivery A minor clarification was made to this provision. PRACTICE The parties should be advised that they do not need to create a separate agreement to conduct the transaction electronically. TIP Page 10 The initial lines for Buyer and Seller were removed. Unimproved Land Contract Paragraph 5 Estate The phrase or to be created was removed from the paragraph because no new ground rents can be established. Paragraph 18 Addenda/Disclosures Back Up Addendum was changed to Back-Up Addendum and additional lines were added to this provision to be consistent with the number of lines in Paragraph 18 of the Residential Contract of Sale. Paragraph 60 Electronic Delivery A minor clarification was made to this provision. The following revisions were made to the Addenda to the Contracts of Sale: Back-Up Contract Addendum The last sentence was added to clarify that the timeframes referenced in the contract will begin when Seller delivers written notice to Buyer that the Back-Up Contract has become the Primary Contract. Kickout Addendum Lines 3, 5, 6 & 7 were updated to be consistent with the language in Paragraph 60 of both contracts. 14 MARYLAND REALTOR NOVEMBER

17 Lease Option Agreement Paragraph 17 Option Agreement Is Integral Part of Lease This paragraph was added pursuant to HB 1257 effective October 1, PRACTICE Tenant should be advised that Tenant has protections under Title 8 of the Real Property Article which addresses Landlord/Tenant rights and obligations. TIP Property Inspections Addendum Paragraph 6 Damage to Property The language was clarified to state that if Buyer, Buyer s Agent/Broker, or Contractor damages the Property, except for damage caused by Seller s negligence, Buyer must promptly reimburse Seller. Property Inspections Notice Paragraph 3C OR was changed to AND/OR. Paragraph 3D The language Seller agrees to credit Buyer Dollars ($ ) towards Buyer s closing costs at settlement was changed to Seller agrees to credit Buyer Dollars ($ ). See attached Seller Contribution Addendum. Seller Acknowledgement The title of this form was changed from Seller Acknowledgement to Agency Change Acknowledgement. The following revisions were made to the Real Estate Brokerage Forms: Exclusive Buyer/Tenant Representation Agreement Paragraph 3 Buyer Authorization Lessor was changed to landlord and lessee was changed to tenant. Receipt of Copy The word Tenant was added. Signature lines The word Tenant was added. Exclusive Right to Lease Residential Brokerage Agreement Paragraph 17 Smoke Alarm Notice A provision discussing changes to the smoke alarm requirements was added. PRACTICE Listing Broker/Agent should alert Owner that the smoke alarm requirements have changed. If Owner has questions about whether Owner s Property is compliant, Listing Broker/Agent should direct Owner to contact the local fire marshal. If Owner or an expert, such as a home inspector, tells Listing Broker/Agents that the Property is not compliant, Listing Broker/Agent must disclose this information to prospective tenants. TIP MARYLAND REALTOR NOVEMBER

18 Paragraph 18 Carbon Monoxide Notice A provision discussing changes to the carbon monoxide law was added. is not served by public water or wastewater facilities for which deferred water and sewer charges have been established by a recorded covenant or deed. PRACTICE Listing Broker/Agent should alert Owner that as of April 1, 2018, carbon monoxide alarms must be installed on each level of a rental unit and outside the sleeping area and that they may be combined with a smoke alarm. TIP Exclusive Right to Sell Residential Brokerage Agreement Paragraph 17 Deposits Held by Escrow Agent A provision was added alerting Seller that Escrow Agents other than licensed real estate brokers are not subject to the same requirements that Maryland licensed real estate brokers are under the Maryland Real Estate Brokers Act. PRACTICE TIP Seller should be alerted that if Seller wants an escrow agent other than a licensed Maryland real estate broker to hold the escrow money, Seller should consider executing an escrow agreement. Paragraph 18 Smoke Alarm Notice A provision discussing changes to the smoke alarm requirements was added. PRACTICE Listing Broker/Agent should alert Seller that the smoke alarm requirements have changed. If Seller has questions about whether Seller s property is compliant, Listing Broker/Agent should direct Seller to contact the local fire marshal. If Seller or an expert, such as a home inspector, tells Listing Broker/Agent that the property is not compliant and Seller will not update the alarms as required by law, Listing Broker/Agent must disclose this information to prospective buyers. TIP Paragraph 20 Notice Regarding Disclosure of Deferred Water and Sewer Charges This provision was modified to require Seller to disclose whether the property is or PRACTICE If the Property is served by public water or wastewater facilities for which deferred water and sewer charges have been established by a recorded covenant or deed, Listing Broker/Agent should advise Seller to include the Notice and Disclosure of Deferred Water and Sewer Charges in the Contract of Sale. TIP Exclusive Right to Sell Unimproved Land Brokerage Agreement Paragraph 14 Deposits Held by Escrow Agent A provision was added alerting Seller that Escrow Agents other than licensed Maryland real estate brokers are not subject to the same requirements that Maryland licensed real estate brokers are under the Maryland Real Estate Brokers Act. PRACTICE Seller should be alerted that if Seller wants an escrow agent other than a licensed Maryland real estate broker to hold the escrow money, Seller should consider executing an escrow agreement. TIP Paragraph 15 Notice Regarding Disclosure of Deferred Water and Sewer Charges This provision was modified to require Seller to disclose whether the property is or is not served by public water or wastewater facilities for which deferred water and sewer charges have been established by a recorded covenant or deed. If the Property is served by public water or wastewater facilities for which deferred water and sewer charges have been established by a recorded covenant or deed, Listing Broker/Agent should advise Seller to include the Notice and Disclosure of Deferred Water and Sewer Charges in the Contract of Sale. continued on page MARYLAND REALTOR NOVEMBER

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20 continued from page 16 The following revisions were made to the Consumer Notice to Buyers of Residential Real Estate in Maryland and Addenda to the Real Estate Brokerage Forms: Consumer Notice to Buyers of Residential Real Estate in Maryland Three new provisions were added to the Notice. These provisions address wire fraud through , deposits held by escrow agents other than the broker, and changes to Maryland s smoke alarm law. PRACTICE Wire Fraud Through Buyer should be alerted that if Buyer receives an regarding wiring instructions, Buyer should verify the information with Buyer s Agent via a telephone call or in person. TIP PRACTICE Deposits Held by Escrow Agents Other than the Broker Buyer should be alerted that if Buyer wants an escrow agent other than a licensed Maryland real estate broker to hold the escrow money, Buyer should consider executing an escrow agreement. TIP PRACTICE Changes to Maryland s Smoke Alarm Law Buyer should be advised to inquire about whether a property Buyer is interested in is compliant with Maryland s smoke alarm law. Buyer Brokers/Agents should also alert Buyer that, as of January 1, 2018, no alarm battery powered or hardwired may be older than 10 years from the date of manufacture. TIP Inclusions/Exclusions Addendum to Exclusive Right to Sell Residential Brokerage Agreement Heading The heading was made bold to highlight the fact that this Addendum is not intended to be used with Maryland REALTORS Residential Contract of Sale. PRACTICE Agents and brokers are alerted that Maryland REALTORS Residential Contract of Sale includes an inclusions/ exclusions provision, Paragraph 13. TIP Notice: The Maryland Real Estate Commission revised the Maryland Residential Property Disclosure and Disclaimer Statement. The revision is dated 7/31/2018 and may be downloaded from the Maryland Real Estate Commission website at: license/mrec/mrecaff.shtml. 18 MARYLAND REALTOR NOVEMBER

21 DESIGNATIONS & CERTIFICATIONS The National Association of REALTORS (NAR) and its affiliated Institutes, Societies, and Councils provide a wide-range of programs and services that help members increase their skills, proficiency, and knowledge. Designations and certifications acknowledging experience and expertise in various real estate sectors are awarded by NAR and each affiliated group upon completion of required courses. Consider increasing your knowledge and skills through one of the numerous programs below. NAR DESIGNATIONS Accredited Buyer s Representative / ABR The Accredited Buyer s Representative (ABR ) designation is designed for real estate buyer agents who focus on working directly with buyer-clients at every stage of the home buying process. Presented by REBAC (Real Estate Buyer s Agent Council) Contact REBAC at rebac@realtors.org or Accredited Land Consultant / ALC The esteemed Accredited Land Consultants (ALCs) are the most trusted, knowledgeable, experienced, and highest-producing experts in all segments of land. Conferred by the REALTORS Land Institute, the designation requires successful completion of a rigorous LANDU education program, a specific, high-volume and experience level, and adherence to an honorable Code of Conduct. Certified Commercial Investment Member / CCIM The Certified Commercial Investment Member (CCIM) designation is commercial real estate s global standard for professional achievement, earned through an extensive curriculum of 200 classroom hours and professional experiential requirements. CCIMs are active in 1,000 U.S. markets and 31 other countries and comprise a 13,000-member network that includes brokers, leasing professionals, asset managers, appraisers, corporate real estate executives, investors, lenders, and other allied professionals. Presented by the CCIM Institute Contact CCIM at or Presented by the REALTORS Land Institute (RLI) Contact RLI at MARYLAND REALTOR NOVEMBER

22 Certified International Property Specialist / CIPS Instantly align yourself with the best in international real estate by earning the CIPS designation. The designation requires completion of five full-day courses focusing on the critical aspects of international real estate transactions. CIPS designees are connected to an influential network of over 3,500 professionals who turn to each other first when looking for referral partners. Presented by the National Association of REALTORS Contact Member Support at CIPS@realtors.org or ext Certified Property Manager / CPM CPM designees are recognized as experts in real estate management. Holding this designation demonstrates expertise and integrity to employers, owners, and investors. Presented by Institute of Real Estate Management (IREM) Contact IREM at , ext Certified Real Estate Brokerage Manager / CRB The Certified Real Estate Brokerage Manager (CRB) is one of the most respected and relevant designations offered in real estate business management and is awarded to REALTORS who have completed advanced educational and professional requirements. CRB Designees are better positioned to streamline operations, integrate new technology and apply new trends and business strategies. Join today and discover a new approach to enhancing knowledge and leveraging opportunity. Visit REBInstitute.com or contact the Real Estate Business Institute (REBI) at info@rebinstitute.com or Certified Residential Specialist / CRS The CRS designation is the highest credential awarded to residential sales agents, managers, and brokers. On average, CRS designees earn nearly three times more in income, transactions, and gross sales than non-designee REALTORS. Presented by Residential Real Estate Council Contact RRC at com/about-us/contact-us or Counselor of Real Estate / CRE The Counselors of Real Estate is an international group of recognized professionals who provide seasoned, expert, objective advice on real property and land-related matters. Only 1,100 practitioners throughout the world carry the CRE designation. Membership is by invitation only. Presented by The Counselors of Real Estate Contact CRE at or info@cre.org. General Accredited Appraiser / GAA For general appraisers, this designation is awarded to those whose education and experience exceed state appraisal certification requirements and is supported by the National Association of REALTORS. Presented by National Association of REALTORS Contact GAA program staff at ext or appraisal@realtors.org. 20 MARYLAND REALTOR NOVEMBER 2018

23 NAR s Green Designation / GREEN Through NAR s Green Designation, the Green REsource Council provides ongoing education, resources and tools to help real estate practitioners find, understand, and market properties with green features. Presented by The Green REsource Council Contact The Green REsource Council at greendesignation@ realtors.org or Graduate, REALTOR Institute / GRI REALTORS with the GRI designation have in-depth training in legal and regulatory issues, technology, professional standards, and the sales process. Earning the designation is a way to stand out to prospective buyers and sellers as a professional with expertise in these areas. Presented by National Association of REALTORS Contact Maryland REALTORS to get information on program requirements, course schedules, location, and tuition. Performance Management Network / PMN This designation is unique to the REALTOR family designations, emphasizing that in order to enhance your business, you must enhance yourself. It focuses on negotiating strategies and tactics, networking and referrals, business planning and systems, personal performance management and leadership development. Presented by Women s Council of REALTORS Contact the Women s Council of REALTORS at REALTOR Association Certified Executive / RCE RCE is the only professional designation designed specifically for REALTOR association executives. RCE designees exemplify goal-oriented AEs with drive, experience and commitment to professional growth. Presented by National Association of REALTORS Contact Renee Holland at or rholland@realtors.org. Residential Accredited Appraiser / RAA For residential appraisers, this designation is awarded to those whose education and experience exceed state appraisal certification requirements and is supported by the National Association of REALTORS. Presented by National Association of REALTORS Contact RAA program staff at or appraisal@realtors.org. Seller Representative Specialist / SRS The Seller Representative Specialist (SRS) designation is the premier credential in seller representation. It is designed to elevate professional standards and enhance personal performance. The designation is awarded to real estate practitioners by the Real Estate Business Institute (REBI) who meet specific educational and practical experience criteria. Visit or contact SRS at info@rebinstitute.com or

24 Society of Industrial and Office REALTORS / SIOR The SIOR designation is held by only the most knowledgeable, experienced, and successful commercial real estate brokerage specialists. To earn it, designees must meet standards of experience, production, education, ethics, and provide recommendations. Presented by Society of Industrial and Office REALTORS Contact SIOR at Seniors Real Estate Specialist / SRES The SRES Designation program educates REALTORS on how to profitably and ethically serve the real estate needs of the fastest growing market in real estate, clients age 50+. By earning the SRES designation, you gain access to valuable member benefits, useful resources, and networking opportunities across the U.S. and Canada to help you in your business. Presented by SRES Council Contact SRES Council at sres@ realtors.org or NAR CERTIFICATIONS At Home With Diversity / AHWD Learn to work effectively with and within today s diverse real estate market. The At Home With Diversity certification teaches you how to conduct your business with sensitivity to all client profiles and build a business plan to successfully serve them. Presented by the National Association of REALTORS For more information on this course and its business principles, please contact us at ahwd@realtors.org or ext Broker Price Opinion Resource / BPOR The BPOR certification is no longer being awarded to members. Approximately 6,000 members have earned BPOR. Certified Real Estate Team Specialist / C-RETS The Certified Real Estate Team Specialist certification is designed to improve team development, individual leadership skills, and financial performance. The courses provide the tools, strategies, and knowledge that are required of today s real estate professionals who are either considering or currently operating in a team environment. It is for team leaders, team members, those looking to start a team, and those who simply want to sharpen their management skills. Visit or contact the Real Estate Business Institute (REBI) at info@rebinstitute.com or MARYLAND REALTOR NOVEMBER

25 e-pro NAR s e-pro certification program helps REALTORS master the advanced digital marketing techniques of today. With the e-pro certification, REALTORS increase their ability to reach customers, expand their capabilities, and build trust by safeguarding client information. Presented by the National Association of REALTORS Contact e-pro at epro@realtors.org or Military Relocation Professional / MRP NAR s Military Relocation Professional certification focuses on educating real estate professionals about working with current and former military service members to find housing solutions that best suit their needs and take full advantage of military benefits and support. Presented by REBAC (Real Estate Buyer s Agent Council) Contact us at MRP@realtors.org or Pricing Strategy Advisor / PSA Enhance your skills in pricing properties, creating CMAs, working with appraisers, and guiding clients through the anxieties and misperceptions they often have about home values with NAR s PSA (Pricing Strategy Advisor) certification. Presented by the National Association of REALTORS Contact us at advisor.org/contact-us/ Real Estate Negotiation Expert / RENE This certification is for real estate professionals who want to sharpen their negotiation skills. The RENE certification program gives REALTORS the tips and tools they need to be skillful advocates for their clients. Presented by the Real Estate Business Institute Contact us at info@rebinstitute.com or Resort & Second-Home Property Specialist / RSPS This certification is designed for REALTORS who facilitate the buying, selling, or management of properties for investment, development, retirement, or second homes in a resort, recreational and/or vacation destination are involved in this market niche. Presented by the National Association of REALTORS Contact us at resort@realtors.org or ext Short Sales & Foreclosure Resource / SFR The SFR certification teaches real estate professionals to work with distressed sellers and the finance, tax, and legal professionals who can help them, qualify sellers for short sales, develop a short sale package, negotiate with lenders, safeguard your commission, limit risk, and protect buyers. Presented by the National Association of REALTORS Contact us at sfr@realtors.org or MARYLAND REALTOR NOVEMBER

26 Launched in August, SmartBuy 2.0, an expansion of SmartBuy continues to get attention. SmartBuy 2.0 broadens your selling opportunities because it includes ANY eligible home available for purchase in Maryland. We recently raised the dollar cap for the second lien to $40,000 (from $30,000). This second loan will be used to pay off the borrower s outstanding student debt balance at the time of home purchase. If there are two MMP borrowers, only one borrower s student loan balance must be paid off. The funds also may be used to pay off the other borrower s student debt only if the total amount can be paid off in full. If you re interested in learning more about SmartBuy or SmartBuy 2.0, let us know. Our team can come to your office and present on this program as well as our other innovative loan products. You can also download the latest fact sheet at The 2018 Maryland REALTORS Annual Conference & EXPO is one of the highlights of our year. It gives us an opportunity to share and learn. Our commitment as a sponsor supports our focus on helping more people become Maryland homeowners and offering innovative programs that help your clients and customers. This year s event proved to be tremendously successful with an impressive number of interested visitors to our booth and a packed house at the continuing education class we offered. I particularly enjoyed the time spent with your Association/Board, presenting to them, attending the Installation Banquet, and meeting more REALTORS interested in using our programs. During the conference, Terry Catalano, a member of our Single Family Housing team, presented our HomeCredit program which offers homebuyers significant tax savings. She also discussed down payment assistance opportunities and our loan products. From that session and conversations at our booth, it is evident that you need and want more information from us and we re listening. You ll soon be receiving a survey asking you how we can better help you. I encourage you to complete the survey and include your ideas and thoughts. Lastly, I would like to extend my congratulations to REALTOR of the Year, Shelly Murray of the Greater Capital Area Association of REALTORS, and Weichert REALTORS, as well as all the other the winners we celebrated at the event. Matthew Heckles Assistant Secretary, Division of Development Finance Director, Community Development Administration Maryland Department of Housing and Community Development MARYLAND REALTOR NOVEMBER

27 MARYLAND SMARTBUY 2.0 UP TO NOW ELIMINATE $ 40,000 IN STUDENT DEBT The Maryland SmartBuy 2.0 program can help eligible first-time homebuyers with student debt purchase a home. The program offers highly attractive 30 year fixed rate loans and closing cost assistance for any eligible home in Maryland and loan forgiveness of up to 15% of the purchase price with a maximum payoff of $40,000 to eliminate student debt. Help more homebuyers in Maryland benefit from paying off student loan debt and purchasing their first home. mmp.maryland.gov/smartbuy Larry Hogan, Governor Boyd K. Rutherford, Lt. Governor Kenneth C. Holt, Secretary Tony Reed, Deputy Secretary

28 Commissioner Corner MICHAEL KASNIC Maryland Real Estate Commission (MREC) Approves Advertising Task Force Recommendations As previously reported in Maryland REALTOR magazine, the Maryland Real Estate Commission (MREC) has been reviewing advertising regulations and guidelines. The MREC formed an Advertising Task Force during the spring, tasked with reviewing current advertising regulations, administrative guidelines, and enforcement practices for real estate professionals in the State of Maryland. The MREC received numerous compliance inquiries and complaints with respect to licensee s actual print/signage advertisements. The volume of inquiries made it clear that many licensees were seeking more guidance on how better to comply with existing rules. The MREC felt it was prudent to ascertain whether legislative or regulatory changes were needed to better protect consumers and licensees. Input was solicited from brokers across the State, real estate educators, professional trade associations, MREC Commissioners and staff, as well as consumers, in the form of three roundtables over three months to discuss the current advertising landscape. Participants were identified by the MREC Chair and invited to attend brainstorming sessions. Upon conclusion of the sessions, MREC, Industry, and Consumer members met with MREC Counsel to discuss observations and how best to implement the feedback received. The MREC Advertising Task Force, chaired by Commissioner Demetria Scott, concluded its analysis and outlined the following recommendations which were voted upon favorably by the MREC. Advertising is defined in both Maryland Statute and in the Code of Maryland Regulations. The Maryland Real Estate Brokers Act, Section ii, specifies: Advertisement includes any correspondence, mailing, newsletter, brochure, business card, for sale or for lease sign and sign rider, promotional item, automobile signage, telephone directory listing, television announcement, radio announcement, telephone solicitation, and World Wide Web and Internet voiceovers. COMAR defines advertising as all oral, written, and visual advertising done by a licensee or by others on behalf of the licensee including telephone solicitation by individuals or by machine. 26 MARYLAND REALTOR NOVEMBER

29 Recommendation #1: While multiple states have adopted the one-click rule, Maryland does not currently have it as part of its laws or regulations. A key part of this recommendation is to codify a form of the one-click rule a social media advertising policy which has been adopted by multiple states for a variety of professions. One-click would establish a standard for social media sites where character limits do not permit licensees to include full contact or identifying information. Under the proposed change, licensees using these platforms must incorporate a link to a website or another source which provides ready access to compliance information. If licensees are to be held accountable for advertising violations, it is important they have clear guidance on what constitutes advertising and their responsibilities in meeting marketing compliance standards. Although approved by the MREC, this recommendation is not final until formally published and approved through the Administrative Procedures Act. Recommendation #2: An Advertising Best Practices handout should be developed to assist licensees in evaluating advertisements for compliance. The Advertising Taskforce s meetings with industry members and Maryland REALTORS revealed that licensees across the state have confusion about proper advertising procedures as well as frustration that the existing rules are not enforced with the latter creating an impression there is not a level playing field in the industry. In addition, many Brokers participating in the Roundtable admitted having difficulty monitoring and approving social media content posted, hosted, and otherwise distributed under their brokerage name. An Advertising Best Practices Handout should be developed and posted on the MREC website as a reference. The handout should not only focus upon the licensee advertising standards, but, also emphasize that principal brokers, broker-managers, and team leaders have a responsibility to review and approve social media content prior to its dissemination (see sample on page 28). Recommendation #3: MREC should adopt an approach of immediately working directly with broker managers and principal brokers to resolve advertising reports. Currently, the Executive Director and Investigations Unit receive a steady stream of complaints regarding potential real estate advertising infractions, as well as requests for guidance. In many instances, the reports have been handled at the licensee level and are the result of the licensee s unfamiliarity with advertising regulations or a failure to seek proper approval prior to print or digital publication. Existing MREC resources are insufficient to educate licensees individually as to proper advertising practices and should be conducted at the broker level. By placing the onus on brokerage management, the Commission is reinforcing the fact that the responsibility for advertising/marketing compliance is directly under the purview of broker supervision. With the adoption of these recommendations, MREC will be able to better protect Maryland consumers as well as address confusion among licensees regarding their responsibilities when communicating and advertising to the public. This, in turn, will also minimize MREC advertising complaints received and enable greater efficiencies amongst the staff s resources. MARYLAND REALTOR NOVEMBER

30 MREC ADVERTISING CHECKLIST All advertisements to be placed by or on behalf of a real estate licensee should be submitted to the broker, office manager, or the broker- manager's designee for compliance review prior to release. If the advertisement has been created for a member of-- or on behalf of-- a team, the team leader should also review and approve the piece using the guidelines below. Name of Licensee Does the advertisement include the full name of the licensee exactly as it appears on their real estate license? YES NO License Category If the advertisement includes a licensee's category, is it correct? The only available options include Salesperson, Associate Broker, or Broker. Terms, such as Associate are not recognized licensing categories. YES NO Brokerage Name Does the advertisement "meaningfully and conspicuously" display the Brokerage's name, and include the Brokerage's full name as it appears on the MREC license (not solely a company logo or abbreviation of the company name)? YES NO Telephone Number of Broker or Office Manager Does the advertisement include the identified telephone number of the broker or branch office manager? YES NO Authority to Advertise Does the licensee have the written authorization of the owner and/or listing broker to advertise the Property? For example, if Broker A has chosen to advertise the listing of Brokerage B in their front office window, Broker A must have Broker B's written authorization to do so. Another scenario, if a licensee has created advertising that utilizes MLS photos, written permission must be obtained from the M LS to use those photos. IDX agreements do not constitute authorization. YES NO True & Accurate Picture Is the advertisement's content factual and true? Does the advertisement avoid any misstatement or exaggeration of fact? Do(es) the licensee(s) in the advertisement hold an active real estate license registered at the brokerage branch that the advertisement references? YES NO Team Advertising Does the advertisement include the full name of the licensee as the name appears on the license and the name of the team? Is the team s name directly linked to the name of the brokerage using of, from, or with? YES NO Offering of Inducements Does the advertisement avoid offering compensation or anything of value through a contest, lottery, drawing or other prize mechanism or element of chance? YES NO Payment of Compensation for Referral Fees Does the advertisement avoid offering compensation or anything of value to an unlicensed person solely for the referral of a prospective client or customer? YES NO Property Owned by Licensees If the advertisement is for the sale, purchase or lease of real property that a licensee owns, does the advertisement state the fact that the owner is a real estate licensee in the State of Maryland? YES NO 28 MARYLAND REALTOR NOVEMBER

31 Start Navigating Your Financial Freedom Today The National Association of REALTORS is proud to introduce the Center for REALTOR Financial Wellness, a new resource designed to guide you on your financial journey and prepare for the future, one step at a time. Whether you are new to the REALTOR Family or an industry veteran, the Center for REALTOR Financial Wellness is designed to help you maximize wealth today and achieve an even better tomorrow. Log-in to FinancialWellness.realtor and discover a unique and interactive website where you can: Assess your current financial profile Practice financial decision-making skills with a simulation that helps you achieve financial well-being Receive personalized goals to help navigate your financial freedom Discover financial resources related to topics such as budgeting, retirement planning and real estate investing

32 Communicating Successfully with International Investors It is no longer a fad or a luxury for businesses to become a part of the international landscape. More than ever before, organizations engage in the competitive global market for realizing economies of scale. Moving toward internationalization is both risky and complex. The multicultural environments pose thorny challenges to have successful business communications with international counterparts and investors. Any businessperson trying to break into the international market must be aware of the potential verbal and non-verbal communication breakdowns. It is equally important to develop a willingness to adapt to the variation of cultural settings. Task Orientation vs. Relationship Orientation Many business negotiators, notably from Switzerland, Germany, the United States, and Sweden, are more task-oriented. They perceive time as a limited non-renewable resource which must be managed with care. At the negotiation table, after brief greetings with their counterparts, they expect to begin business discussions and negotiations. This practice often will proceed smoothly when the business counterparts have a similar corporate culture. On the other hand, misunderstandings begin to emerge when doing business with those who have a different interpersonal approach. In international business environments, negotiators in countries such as Mexico and Greece often prescribe to relationship building before negotiation begins. They see time as a passage of life which should be utilized effectively for establishing friendships and mutual trust as a base for doing business on a long-term basis. They often arrange time for socialization. For instance, they plan dinner parties and tours of their cities to show negotiators their historical monuments, the city night attractions, and so on. They also like conversing about unrelated topics to the negotiators, and gradually begin with business discussions. Communication Breakdowns The international business negotiators who value time and efficiency may face communication breakdowns with those who practice effectiveness through relationship building. This is because negotiators who are mainly concerned with efficiency may view extra activities by the counterpart as a waste of time and a signal to end the intended business dealing. Conversely, the negotiator who values relationship and trust building may resent negotiation with someone whose only concern is closing a deal. With these cross-interpretations, business discussions begin to fall apart. Ultimately, both parties leave the table with confusion and an unpleasant experience. Non-verbal Communications Apart from misunderstanding in verbal communications, the non-verbal cues of the counterparts pose another challenge to successful business negotiations. Eye contact, posture, business card exchange, handshakes, and proxemics are a few types of silent messages which may vary from one culture to another that negotiators need to be cognizant of. As related to the study of proxemics, in the United States it is customary for professionals to remain about one fully stretched arm s length away from each other. It is to prevent an uneasy feeling unsuitable for dialogue. In most of the South American and the Middle Eastern countries, it is customary to keep a closer distance in professional settings. A Final Note Bagher Fardanesh, Ph.D. MPA The biggest hurdle in interacting with people from different cultures successfully is ethnocentrism. It is the notion of cultural superiority when comparing one s own culture with other cultures. A research survey conducted by Dr. James Lee of Harvard University reveals that we fail to develop desirable relationships with others as long as we set our own culture as a benchmark for others to continued on page MARYLAND REALTOR NOVEMBER

33 Maryland REALTORS GRI Program To achieve the GRI Designation in Maryland, you only need to take GRI Series 100 & 200. Each of these Series consists of 6 days, for a total of 72 hours. It s easy to get the GRI Designation now! Maryland REALTORS offers the additional Series 300 & 400 for those interested in pursuing their broker s or associate broker s license. Series 300 & 400 consist of 4 days each. Completion of Series will meet the education requirements to sit for the broker/associate broker s exam. It s never been a better time to sign up for GRI! See the Maryland REALTORS course offerings below. To register visit mdrealtor.org/education/programs/ realtor-institute-gri. All sessions offered through Maryland REALTORS. Classes to be held at the Maryland REALTORS offices, 200 Harry S Truman Pkwy, Suite 200, Annapolis It s never been a better time to sign up for GRI! See the Maryland REALTORS course offerings below. SERIES 100 SERIES 200 SERIES 300 SERIES 400 February 5, 6, 12, 14, 19, 20, 2019 March 5, 6, 12, 14, 19 & 20, 2019 October 15, 17, 22 & 24, 2019 November 12, 13, 19 & 20, 2019 May 7, 9, 14, 16, 21 & 23, 2019 June 4, 6, 11, 13, 18 & 20, 2019 REALTORS To learn more, go to mdrealtor.org/education/ Programs/Realtor-Institute-GRI or scan this QR code.

34 Residential Sales ANIRBAN BASU The Economic Glass is Overflowing, which is Good and Bad Economic Growth Up, Housing Affordability Down U.S. economic performance is good. Sure, there are things about which to be concerned mounting inflationary pressures, rising interest rates, unresolved trade disputes between the world s two largest economies, burgeoning national debt, and a dash of emerging world financial crisis centered in places like Ankara and Buenos Aires. But demanding perfection from economic circumstances is, well, too demanding. The nation has added jobs for 96 consecutive months, an unrivalled winning streak. Since the labor market bottomed out in February 2010, the nation has added 19.5 million jobs. The official rate of unemployment is at levels not observed since the 1960s. As of July, there were 6.94 million unfilled, available jobs in America, or 11 jobs for every 10 unemployed Americans. Financial markets have been simply breathtaking, with the Dow Jones and other indices repeatedly attaining all-time highs. Wait, there s more. Fears regarding full-blown trade wars have abated, with the U.S. reaching trade agreements with Mexico, South Korea, and Canada. Consumer confidence has surged. So too has business confidence, driven higher in part by tax reforms passed late last year and implemented at 2018 s onset. An economic recovery that could be fairly characterized as a 2 percent recovery is now a 3 percent expansion. The industrial recession that characterized much of is over. Industrial production is on the rise as is capacity utilization. Wage growth has also become more robust, with companies like Amazon establishing even higher corporate minimum wages in the context of expanding skills shortage. America s economy is now associated with a level of momentum that it had at least arguably not enjoyed during any prior portion of the economic expansion. Job growth has also been picking up in Maryland, at least in metropolitan communities like Baltimore and Maryland s D.C. Suburbs. Between August 2017 and August 2018, the Baltimore-Columbia-Towson metropolitan statistical area added 24,900 net new jobs, which translates into 1.8 percent job growth. That was a bit better than the national rate of job creation. Job growth in the Washington metropolitan area, which includes many communities beyond Maryland s boundaries, was even faster (2.0%). In both the Hagerstown and Salisbury areas, the unemployment rate stood at a reasonably healthy 4.5 percent in July. But as with most things economic, nothing is pure good news. The economic expansion, working in conjunction with certain public policies (e.g., tariffs, immigration), has begun to produce burgeoning inflationary pressures. This is increasingly apparent not only in wages, but in 32 MARYLAND REALTOR NOVEMBER

35 steel, concrete and softwood lumber prices, tuition, trucking charges, apartment rents, and, of course, the price of fuel. Partially in response to rising inflation expectations, the Federal Reserve raised short-term rates once again in September and indicated that further rate hikes are on the way. Long-term rates have also been on the rise. By late-september, the 30-year fixed mortgage rate had experienced five consecutive weeks of increase, rising above 4.7 percent, a high not seen since April 28, 2011 (4.78%) according to Freddie Mac. Despite a relative lack of inventory, higher mortgage rates, and sales prices that have rebounded over the course of years, unit sales rose 5.2 percent statewide on a year-over-year basis in July according to data released by the Maryland REALTORS. Among jurisdictions that registered more than 100 unit sales for the month, Anne Arundel County (+13.4%), Worcester County (+13.2%), and Harford County (+12.8%) experienced the largest increases. Unit sales slipped a bit in August, but there were still significant increases on a year-over-year basis registered in St. Mary s County (+37.2%), Queen Anne s County (+25.3%) and Carroll County (+12.9%). Average home sales price rose moderately across the state in July on a year-over-year basis, rising to $346,237 from $338,567, which translates into an increase of 2.3 percent. Washington County (+11.9%), Harford County (+8.2%), and Montgomery County (+5.3%) experienced significant growth in average sales price over this period over the same time period. Average sale price picked up in August, increasing 5.3 percent on a year-ago basis. Washington County (+11.6%), Baltimore City (+10.9%), and Charles County (+8.9%) each experienced significant increases in average sales price with robust corresponding solid performance along the dimension of unit sales. Thanks to a rather impressive sales pace, months of inventory in Maryland fell 0.3 months on a year-ago basis, standing at just 2.8 months in July. Inventory continued to decline in August with particularly sharp declines in available product for UNITS County July 2018 vs AVERAGE PRICE % Change % Change Allegany % $132,636 $109, % Anne Arundel % $406,146 $399, % Baltimore City % $194,298 $195, % Baltimore County 1, % $298,230 $293, % Calvert % $364,852 $356, % Caroline % $168,844 $197, % Carroll % $348,659 $338, % Cecil % $233,732 $224, % Charles % $313,859 $303, % Dorchester % $198,418 $173, % Frederick % $343,879 $335, % Garrett % $266,844 $333, % Harford % $297,676 $275, % Howard % $451,735 $460, % Kent % $321,342 $262, % Montgomery 1,204 1, % $550,689 $523, % Prince George s % $297,913 $290, % Queen Anne s % $389,990 $374, % Somerset % $127,003 $138, % St. Mary s % $288,171 $289, % Talbot % $474,513 $489, % Washington % $228,377 $204, % Wicomico % $193,362 $153, % Worcester % $269,674 $280, % TOTAL 8,015 7, % $346,237 $338, % Figures reflect resales and new properties. Residential resales are reported by MRIS and local associations MLS systems. MARYLAND REALTOR NOVEMBER

36 UNITS County August 2018 vs AVERAGE PRICE % Change % Change Allegany % $114,410 $89, % Anne Arundel % $423,716 $398, % Baltimore City % $184,433 $166, % Baltimore County 1,039 1, % $298,836 $289, % Calvert % $358,089 $384, % Caroline % $179,883 $163, % Carroll % $342,952 $339, % Cecil % $239,698 $232, % Charles % $324,188 $297, % Dorchester % $257,894 $207, % Frederick % $348,815 $324, % Garrett % $352,494 $327, % Harford % $296,231 $294, % Howard % $465,720 $448, % Kent % $363,905 $265, % Montgomery 1,213 1, % $549,035 $535, % Prince George s 976 1, % $304,831 $286, % sale in Worcester County (-1.6 months), Queen Anne s County (-1.1 months), and St. Mary s County (-1.1 months). Looking Ahead The outlook for 2019 has brightened considerably in recent months. Trade deals signed with Mexico, South Korea, and Canada have dramatically reduced the level of angst among businesses and other stakeholders. The tax cut continues to have generally positive impact, particularly on business capital spending. This ongoing economic progress will continue to exacerbate worker shortages and drive the price of key inputs into production higher. These mounting inflationary pressures will in turn translate into ongoing increases in both short- and long-term interest rates as we enter These interest rates increases working in conjunction with slender inventory implies that unit sales will likely not expand as rapidly during the months ahead as they have in the past. Deteriorating housing affordability may also render it more difficult for sellers to get the prices they seek, which may suppress average and median sales price growth even as homes for sale become increasingly scarce. Anirban Basu, Chairman & CEO, Sage Policy Group, Inc. Queen Anne s % $407,471 $345, % Somerset % $316,379 $304, % St. Mary s % $507,057 $423, % Talbot % $222,107 $199, % Washington % $152,384 $111, % Wicomico % $168,254 $167, % Worcester % $291,894 $276, % TOTAL 8,100 8, % $350,967 $333, % Figures reflect resales and new properties. Residential resales are reported by MRIS and local associations MLS systems. 34 MARYLAND REALTOR NOVEMBER

37 TOM PHILLIPS, PRESIDENT & CEO, BRIGHT MLS Change is here Two years ago, we set about to change the way real estate professionals interact with the MLS. Forty-three forward-thinking associations came together to form Bright MLS to break down market barriers and provide subscribers with access to more information and better products that could help drive their businesses forward. Since the announcement of the creation of Bright, we have been busy pulling together all the tools and systems necessary for this to happen. This month and next, all remaining Maryland REALTOR members will be converting to using the Bright system. We re excited to share with you what we ve been working on. One of the core tenets of Bright is continuous innovation. From our inception, we saw a problem in the real estate industry that consumers had access to better technology than most real estate professionals. We believe that needed to change. Here are 5 innovative features we think you ll be able to take advantage of immediately. Streamlined navigation We ve designed a whole new persistent menu, available once you login to It will take you from an MLS listing search to Financial Calculators in one click. You will also be able to quickly access

38 up-to-date market activity using Hot Sheets and Market Watch features. All of this will be available to you wherever you are in the system. The MLS Search system Bright offers the newest version of the Matrix MLS platform, Matrix 360, which combines MLS and public records reports to give you a full 360-degree picture of a property. It integrates listing data, public records data, interactive maps, and much more to give you a real information edge. A new add/edit listings system The Listing Management tool has been streamlined, to give you only the fields you need based on the property type you choose. Best of all, this new clean design is clear and easy-to-read on multiple screen sizes and is mobile responsive. Drive Time search Whether you re working with Boomers, Millennials or anyone in between, the driving distance to family or work is going to be part of their consideration when purchasing a property. Drive Time search makes it easy to enter your clients commuting needs and help them to determine where they can search for a property that will best suit their needs. Client Portal Your client s experience in Bright is important too! The client portal is a new space where your clients can view the listings and MLS reports you share, run searches and communicate with you about what they find. The new client portal is fully responsive to make it easy for them to access it on whatever device they prefer. We also have a full suite of Premium Products that we are excited to share with you. Cloud CMA and our new Sphere and Social Pro offerings are all now available to you. We recognize that this business is changing fast. That s why we ve invested in making sure our platform is state-of-the-art and why we re already identifying and pioneering new software solutions that are going to help all of our subscribers stay ahead. We are ready to drive forward together with you. Communicating Successfully with International Investors CONTINUED FROM PAGE 30 adapt and measure to. He coined this phenomenon as the Self Reference Criterion, commonly known as SRC. To communicate successfully with international investors, it is important to recognize the existence and importance of cultural differences. Reducing or eliminating our SRC will result in enhanced communications and more effective business negotiations. For questions or comments, please contact Bagher Fardanesh, Ph.D. MPA, Prof. International Business and Marketing, bf@piagetconsulting.com Copyright 2018 Bagher Fardanesh 36 MARYLAND REALTOR NOVEMBER

39 Bringing Fairness To Real Estate Since 2005 We Our Agents! The BEST Systems In The Industry: Maryland Pennsylvania *Included For No Additional Fees! 5 Sensible Commission Plans Virginia Experienced Realtors 4 States Plus Washington, DC 10 Conveniently Located Offices To Learn More Call: Or Visit: Washington, DC Delaware

40 Products to make every business more successful. This business is changing fast. Bright MLS is identifying and pioneering new software solutions that help all of our subscribers stay ahead.