Gathering of Local Leaders Puts New Laws Front and Center

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1 4845 Ronson Court San Diego, CA IN THIS ISSUE: 2 PRESIDENT S PERSPECTIVE 3 CEO REPORT 6 JANUARY REALTOR APPLICANTS 12 MARCH CALENDAR THE TRUSTED VOICE OF SAN DIEGO REAL ESTATE Gathering of Local Leaders Puts New Laws Front and Center What s Happening at SDAR February 2017 For the more than 300 attendees at SDAR s recent New Laws 2017 event, it was clear that decisions made at the city council level, as well as up in Sacramento and in Washington, D.C., have an effect on their real estate business. The gathering on February 6 at the Town and Country Resort brought together some of the movers and shakers to help explain some of the new laws and legislative updates that became effective on January 1 or will be effective in the near future. San Diego Mayor Kevin Faulconer welcomed the crowd with a nod to the issue on every REALTORS mind: housing supply. He expressed the goal of the City to speed up the process of approving development plans and community updates, and voiced his partnership with the real estate community in the daunting task of making San Diego a community where people can find and purchase an affordable home. Brian Jones, former California assemblyman from the 71st District and a new member of the Santee City Council, emceed the event. Bringing the perspective from the national level, Ralph Holmen, associate general counsel of the National Association of REALTORS, highlighted several topics of interest to real estate professionals, including: Drones The Federal Aviation Administration (FAA) posted rules last fall for small unmanned aircraft systems, or drones, that permit their commercial use and eliminates the requirement for waivers/exceptions. Holmen outlined some of the operational and privacy considerations, and encouraged anyone who has an interest to visit and search drones for background and resources. Website Accessibility Holmen also discussed the Department of Justice s regulations that all websites must be reasonably accessible under ADA interpretation. However, he noted that in California, the rules as they apply to those who are impaired physically, including by sight and hearing, may only apply when the company hosting the website has a physical structure (such as a Macy s store). Criminal History Policy Holmen noted that HUD has issued guidance on the consideration of criminal history when looking at tenants. While landlords may consider criminal history in the application process, they are advised to apply it thoughtfully and consistently, and to have a written policy in effect. Overtime Rules The Department of Labor also updated key provisions to the minimum annual salary for exempt employees and their eligibility for overtime pay. Holmen noted that these rules do not, however, apply to independent contractors, the group which includes most real estate agents. A regular at SDAR s New Laws event, Gov Hutchinson, assistant general counsel for the California Association of REALTORS, humored the crowd as he discussed topics covered in the approximately 30 new laws (out of 800) affecting real estate at the state level, including: Marijuana With the approval of Proposition 64, which legalized recreational use of marijuana in California, Hutchinson explained that there are still rules governing the age of the user, the amount they can possess or transport or grow, but that a landlord, within a lease, can still prohibit the smoking of anything on their property. He noted, however, that baking brownies in the home may sidestep that. Reasonable accommodation comes into play again regarding the new marijuana law, Hutchinson said, and C.A.R. is waiting and expecting test cases to arise. Granny Flats Known as junior accessory dwelling units under a new California law, the State has authorized cities and counties to allow the building of these 2nd dwelling units in single-family or multifamily zones, but not to require additional parking. Bedbugs Disclosures New rules have gone into effect in California to prohibit landlords to show or rent vacant units if the landlord knows of a current bedbug infestation. While the landlord doesn t page 11 Circle of Excellence - A Night of Celebration The San Diego real estate community came together on January 21 at the Fairmont Grand Del Mar for the inaugural Circle of Excellence, highlighting the outstanding achievements of REALTOR teams and individuals from the past year. Basketball great Bill Walton engaged the crowd of more than 600 guests. The event also featured the Installation of the Greater San Diego Association of REALTORS 2017 Leadership Team and President Bob Kevane. (See page 4 for details and many more photos from the evening.)

2 BOB KEVANE PRESIDENT S PERSPECTIVE 2017 PRESIDENT We must update Proposition 13, or we will have almost no turnover of housing within one more generation. During 2006 and 2007, I was vice chair and chair of the California Association of REALTORS Taxation Committee. It was during that time that I developed a program for stimulating housing turnover, and the California economy. From my years as a real estate broker and in my CPA tax practice, I had almost no clients who would ever consider selling their homes due of the property tax increase when they moved up. Some would hold off until age 55. However, that only works one time, by either buying a lesser priced home or buying straight across. There is no provision for buying up, except for a minimal cost of living adjustment if done after the sale and within two years. My proposal has been referred to as property tax portability, and would allow ALL sellers of real estate, to carry over their Proposition 13 tax base to a subsequently acquired property. Example: Proposition 13 tax base = $200,000 Sale price of property = $500,000 Result: Upon purchase, the first The Continuing Lack of Resale Housing Inventory $500,000 of purchase price would retain the transferred $200,000 Proposition 13 tax base. The excess of the new purchase price over the $500,000 sale price would obviously be added to the property tax base. The ultimate purchaser of the sold residence, in most cases, would have a property tax basis equal to their purchase price of $500,000. A property seller could do this, over and over, every two years, through as many sales as they wished, during their lifetime. This process, would once again, create the demand needed for a robust new home move up market! Sometime back, the University of Michigan did a study on the number of property turns created when a person sells their home. At that time, the study concluded that it came out to approximately 3.3 turns for every new home purchased. Meaning, if you sold your home and purchased a new one, someone else would move from their residence to purchase yours, freeing up their home to be sold, and so on. Our California Association of REALTORS has committed to placing this matter on the California General page 7 Winter Blues Hit January Home Sales The desire to close on home sales by December 31 factored into the drop of 30 percent in single-family home sales, and a drop of 27 percent in attached properties (condominiums and townhomes) in January Compared to the same month a year ago, sold listings were down less than 1 percent for single-family homes, but nearly 4 percent for condos and townhomes. The median price of resale single family homes in January dipped by about 2 percent compared to December, standing at nearly $560,000. The attached property median price was $378,750, posting almost a 4 percent increase from the prior month. Together, prices for all sale properties are up about 7.5 percent from a year ago. The supply of resale properties on the market held at 1.5 months. (Five to six months is considered a healthy level.) Homes were on the market for an average of 39 days in January. January is most often a slow month for home sales following the holidays and the end of the tax year, said SDAR President Bob Kevane, not to mention the welcome and ample rain may have kept people from venturing out to open houses. Spring will be here soon enough, and that s when the market tends to heat up. In January, the zip codes in San Diego County with the most singlefamily home sales were: (Fallbrook) with (Rancho Bernardo West) with (Escondido East) with (Carlsbad Southeast) with (Ramona) with 35 The most expensive property sold in the county last month was a 12,000-square-foot, 7-bedroom, 10-bath, Rancho Santa Fe estate, built in 1994, with a price of just over $6 million. PRICE (Month over Month Comparison) Single-Family: 2% DECREASE January 2017 = $559,500 December 2016 = $569,450 Condos/Townhomes: 4% INCREASE January 2017 = $378,750 December 2016 = $365,000 (Year over Year Comparison) Single-Family: 6% INCREASE January 2017 = $559,500 January 2016 = $530,000 Condos/Townhomes: 8% INCREASE January 2017 = $378,750 January 2016 = $351,540 (Month over Month Comparison) Single-Family: 30% DECREASE January 2017 = 1,338 December 2016 = 1,902 Condos/Townhomes: 27% DECREASE January 2017 = 670 December 2016 = 920 (Year over Year Comparison) Single-Family: 1% DECREASE January 2017 = 1,338 January 2016 = 1,348 Condos/Townhomes: 4% DECREASE January 2017 = 670 January 2016 = 696 Learn more about San Diego County housing statistics each month when you visit The San Diego REALTOR editor@sdar.com 2017 Officers Robert Kevane - President Steve Fraioli - President-Elect Zach Todaro - Vice President Angela Ordway - Treasurer Cory Shepard - Immediate Past President Chris Anderson - Immediate Past President 2017 Directors Megan Beauvais Glenn Bennett Kevin Burke Barbara DuDeck Vickie Fageol Carla Farley Ginni Field Gerri-Lynn Fives Pat Garner Michelle Hellerud Steven E. Kilgore Mark Marquez Denise Matthis Mary Mitchell Brian Nelson Frank Powell Mark Powell Rocky Rockhill Donna Sanfilippo Dottie Surdi Robert Weichelt Production Staff K. Annmarie Hylton - Managing Editor David Pedersen - Communications Coordinator Foley Publications - Design & Art Direction Neil Dulay - Art Director SDAR Staff Executive Michael T. Mercurio - Chief Executive Officer Catherine Smiley Jones - Chief Operations Officer Accounting David Kvendru Chief Financial Officer Events Melissa Waegner Manager Government Affairs Ryan Maxson - Director International/Commercial Relations Theresa Andrews - Director Marketing & Communications K. Annmarie Hylton - Manager Membership & Business Development Brandon Robbins - Manager Professional Development Jayne Fabulic - Vice President Risk Management Kyle Pietrzak, Esq. - Vice President The Trusted Voice of San Diego Real Estate Kearny Mesa 4845 Ronson Court San Diego, CA P: (858) F: (858) Coronado 120 C Avenue, Suite 140, Coronado, CA P: (858) F: (619) Carlsbad Marron Road, Suite 104, Carlsbad, CA P: (858) F: (760) East County 220 West Main Street El Cajon, CA P: (858) F: (619) Rancho Bernardo Bernardo Center Dr. San Diego, CA P: (858) F: (858) Solana Beach 981 Lomas Santa Fe, Ste. E Solana Beach, CA P: (858) F: (858) South County East H Street, Suite 1001, Chula Vista, CA P: (858) F: (619) San Diego REALTOR (ISSN ; USPS ) is the official publication of the Greater San Diego Association of REALTORS, which is affiliated with the National Association of REALTORS and the California Association of REALTORS. San Diego REALTOR is published monthly. Member subscription rate, included in dues, is $6 annually. Periodicals postage paid in San Diego, CA. POSTMASTER: Send address changes to San Diego REALTOR, 4845 Ronson Court, San Diego, CA Telephone: (858) All copy for publication should be mailed to the Editor, San Diego REALTOR, 4845 Ronson Court, San Diego, CA 92111, by the 20th of the month preceding the month of publication. All copy is subject to editorial approval. San Diego REALTOR and its publisher, the Greater San Diego Association of REALTORS, in accepting advertisement in this publication, make no independent investigation concerning the services or products advertised, and they neither endorse nor recommend the same nor do they assume any liability thereof. The opinions expressed in the articles are not necessarily the opinions of the Greater San Diego Association of REALTORS, NAR or C.A.R., and therefore they make no warranties and assume no responsibility for accuracy or completeness of the information herein. Information should not be relied upon without the consultation of your accountant or attorney, with whom you may wish to discuss the applications of the opinions to facts in individual situations. This is a copyrighted issue. Permission to reprint or quote any material from the issue may be granted upon written inquiry and provided the San Diego REALTOR is given proper credit in all reprinted articles or commentaries. The term REALTOR is a national registered trademark for members of the National Association of REALTORS. The term denotes both business competence and a pledge to observe and abide by a strict code of ethics. *Advertisements that contain offers or solicitation of agents for recruitment purposes are prohibited. 2 The San Diego REALTOR FEBRUARY 2017

3 FROM THE DESK OF THE CEO REALTOR Expo & Conference Returns April 27 The annual SDAR Expo & Conference the largest real estate trade show in San Diego County returns to the San Diego Convention Center on Thursday, April 27. We re putting together a day on the theme Elevate. a unique opportunity to elevate your real estate business, network, and professional development. Gather with thousands of your colleagues, and introduce yourself to affiliates and vendors who can be instrumental in your success. The trade show will feature local providers specializing in finance, insurance, home service industries, and much more. You can pick up free samples, participate in product trials, and build lasting relationships. The SDAR booth at the heart of the trade show floor will include giveaways and an opportunity to learn about all the new and exciting offerings from your association. SDAR will present the General Session in the morning this year, and throughout the morning and afternoon you can break away for an hour or two and attend one of the timely and popular educational breakout sessions. As the afternoon draws to a close, mingle with fellow attendees while enjoying views of the bay, refreshments, raffle prizes, and more. Tickets to a full day of the trade show and breakout sessions are now on sale. Combine your registration with tickets to the General Session and save. Attendees may also pre-purchase a parking pass when registering to expedite parking at the Convention Center. Register today at New Year New Laws! On February 6, at the Greater San Diego Association of REALTORS hosted the annual legislative updates event at the Town & Country Resort and Convention Center. The event started with a kickoff from 2017 SDAR President Bob Kevane and former Assemblyman Brian Jones. There was a number of speakers I would like to thank for participating: Mayor Kevin Faulconer; Ralph Holmen, Vice President and Associate General Counsel National Association of REALTORS ; Gov Hutchinson, General Counsel, California Association of REALTORS ; Scott Sherman Councilmember, City of San Diego, District 7; Chris Cate Councilmember City of San Diego, District 6; City of Chula Vista Mayor Mary Casillas Salas; Colin Parent, Councilmember, City of La Mesa Policy Counsel, Circulate San Diego; National City Mayor Ron Morrison; Pete Solecki, General Counsel The Greater San Diego Association of REALTORS ; Dan Sandri, Chief Deputy Commissioner Stat of California Bureau of Real Estate and Kyle Pietrzak, Vice President of Risk Management, Greater San Diego Association of REALTORS. Some of the key national issues focused on during the event: Small Unmanned Aircraft Systems Drones Rule Website Accessibility HUD Guidance on Criminal History Ant-Money Laundering Geographic Targeting Orders AT SIERRA PACIFIC MORTGAGE MICHAEL T. MERCURIO U.S. Department of Labor Overtime Rule Technology continues to be a driving factor in the changes of our society and transforming almost every industry, and drones are one of the transformers the real estate industry, helping real estate agents have additional ways to showcase properties to a broader audience. YOUR FUTURE IS OUR VISION Sierra Pacific Mortgage is dedicated to the success of all its employees. For over three decades, Sierra Pacific Mortgage has been providing the best tools and practices to help you grow your business and achieve success. Are you looking to be part of a winning team? For a confidential inquiry with one of our team members give us a call: Call us toll free at: Visit us at: JoinSierraPacificMortgage.com See what s new at REALTOR.org Sierra Pacific Mortgage, Inc. NMLS Licensed in California by the Department of Business Oversight under the Residential Mortgage Lending Act This information is intended for real estate professionals only and is not an advertisement to extend consumer credit as defined by Regulation Z. Equal Housing Lender. FEBRUARY 2017 The San Diego REALTOR 3

4 CIRCLE OF EXCELLENCE Circle of Excellence Celebrated Top REALTORS & Teams The San Diego real estate community came together in January to celebrate REALTORS and brokerage teams at the Real Estate Circle of Excellence. The evening, which also honored 2017 SDAR President Bob Kevane and 2017 Leadership Team, featured special guest and co-host Bill Walton, one of the most respected NBA players of all time, and cohost Aloha Taylor, weather anchor at Fox 5 San Diego. The San Diego Union-Tribune partnered with SDAR to present the Circle of Excellence. REALTORS were honored by their peers for their efforts and standards of excellence demonstrated in the past year. Top-producing teams and individuals at the highest sales levels were honored in a category known as the Recognition of Excellence, based on volume of units sold and/or total sales dollars. For a list of all the Recognition of Excellence honorees, go to Agents, Brokers, Office Managers and Affiliates were also recognized as recipients of the Awards of Excellence in the following categories: Broker of the Year: Judy Preston, Ascent Real Estate, Inc. Office Manager of the Year: Mark Marquez, Pacific Sotheby s International Realty REALTOR of the Year: Fiona Theseira, Keller Williams, SD Central Coastal Rookie of the Year: Alanna Strei, Reef Point Real Estate Affiliate of the Year: Carla Weichelt, Corinthian Title Company, Inc. Brokerage Achievement of Excellence: Windermere (Rich Johnson, Brian Gooding, Jim Berns) VA Housing Award: John Clay Reeves, Reef Point Realty; Jim Earl Bottrell, Ardent Real Estate Service; Penny D. Normandy, ERA Eagle Estate, Inc.; and Maurice Cornell, Military Mutual. Big Heart Award: Derrick Luckett, Destiny Six Financial Most Unusual Deal: Colleen Cotter, Keller Williams Realty Additionally, Glenn Bennett, Broker at Cowles Mountain Realty, was named Volunteer of the Year, chosen by association staff who work with scores of volunteers that serve on SDAR s many committees. Thank you to all of our sponsors and everyone that celebrated SDAR s first Circle of Excellence. For more details visit 4 The San Diego REALTOR FEBRUARY 2017

5 OUR ADVISORS Let s Brian Fraser VP of Sales NMLS ID Evan Kidwell Chief Strategy Officer Change Lending Together Josh Lander Area Manager NMLS ID Doc Spaulding Area Manager NMLS ID Dave Gaylord NMLS ID At Greenpath, we believe It s About People, Not Just the Mortgage. We provide people with peace of mind as we guide them to get on the right path to achieve their financial goals and dreams of home ownership in Southern California... one person, one home and one community at a time. Manny Cien NMLS ID Joel Berman NMLS ID Dreama Brown NMLS ID We deliver a unique home mortgage loan experience to people that is deeply rooted in the spirit of excellent customer service: Excuse-free transactions closed on time by professionals who understand that a home is more than an investment. Mark Joplin NMLS ID George Radlick NMLS ID Randy Nathan NMLS ID Strong pricing, competitive products and fast closings. We work to find the right loan to fit short & long-term financial goals. Offices in all three major county markets - (Orange, Riverside and San Diego) for easy access and community knowledge. info@mygreenpath.com Toll-free: LEND mygreenpath.com CORPORATE HEADQUARTERS: ALISO VIEJO PKWY., NO. 100 ALISO VIEJO, CA Greenpath Lending, LLC is an Equal Housing Opportunity Lender. Licensed by the Department of Business Oversight under the California Residential Mortgage Lending Act. Mortgage License # The Lending Partners, LLC (forced name in CA) Greenpath Lending, LLC. All Rights Reserved. NMLS ID FEBRUARY 2017 The San Diego REALTOR 5

6 JANUARY STATISTICS DETACHED HOMES Current Year Previous Year Current Year Previous Year Zip Code Market Area Mth YTD Mth YTD Mth YTD Mth YTD Mth YTD Mth YTD Alpine $474,500 $474, $510,000 $510, Bonita $565,000 $565, $569,750 $569, Boulevard $107,000 $107, $0 $ Campo $278,000 $278, $265,000 $265, Chula Vista $510,000 $510, $432,500 $432, Chula Vista $459,000 $459, $425,000 $425, Chula Vista $550,000 $550, $519,000 $519, Chula Vista $710,000 $710, $722,450 $722, Chula Vista $532,000 $532, $505,000 $505, Descanso $0 $ $360,000 $360, Dulzura $0 $ $0 $ Guatay $0 $ $0 $ Imperial Beach $549,950 $549, $429,500 $429, Jacumba $0 $ $135,000 $135, Jamul $632,000 $632, $475,000 $475, La Mesa $535,000 $535, $569,000 $569, La Mesa $474,000 $474, $465,000 $465, Lemon Grove $400,000 $400, $404,000 $404, Mount Laguna $0 $ $204,000 $204, National City $395,000 $395, $345,500 $345, Pine Valley $286,650 $286, $262,500 $262, Potrero $0 $ $112,000 $112, Spring Valley $425,000 $425, $370,000 $370, Spring Valley $519,250 $519, $465,000 $465, Tecate $0 $ $0 $ Bonsall $685,000 $685, $530,000 $530, Borrego Springs $158,750 $158, $197,500 $197, Cardiff By The Sea $1,940,000 $1,940, $1,150,000 $1,150, Carlsbad $877,944 $877, $925,000 $925, Carlsbad $910,000 $910, $903,000 $903, Carlsbad $725,000 $725, $675,000 $675, Carlsbad $962,500 $962, $885,000 $885, Del Mar $1,845,000 $1,845, $1,610,000 $1,610, El Cajon $505,000 $505, $478,000 $478, El Cajon $465,000 $465, $415,000 $415, El Cajon $455,000 $455, $463,000 $463, Encinitas $1,155,000 $1,155, $1,227,000 $1,227, Escondido $510,000 $510, $445,000 $445, Escondido $511,000 $511, $482,950 $482, Escondido $466,000 $466, $435,500 $435, Fallbrook $530,000 $530, $462,000 $462, Escondido $559,500 $559, $652,000 $652, Julian $334,500 $334, $230,000 $230, La Jolla $1,955,000 $1,955, $2,195,000 $2,195, Lakeside $438,000 $438, $450,000 $450, Oceanside $683,500 $683, $575,000 $575, Oceanside $480,000 $480, $469,500 $469, Oceanside $516,000 $516, $465,000 $465, Oceanside $466,000 $466, $470,000 $470, Pala $581,000 $581, $0 $ Palomar Mountain $187,500 $187, $275,000 $275, Pauma Valley $0 $ $675,000 $675,000 Zip Code Market Area Mth YTD Mth YTD Mth YTD Mth YTD Mth YTD Mth YTD Poway $659,800 $659, $572,500 $572, Ramona $495,000 $495, $460,000 $460, Ranchita $0 $ $0 $ Rancho Santa Fe $1,712,813 $1,712, $2,550,000 $2,550, San Luis Rey $0 $ $0 $ San Marcos $570,000 $570, $550,500 $550, Santa Ysabel $0 $ $0 $ Santee $472,500 $472, $469,700 $469, Solana Beach $1,500,000 $1,500, $1,475,000 $1,475, San Marcos $749,900 $749, $555,350 $555, Vista $499,238 $499, $511,000 $511, Valley Center $595,000 $595, $578,000 $578, Vista $449,000 $449, $408,000 $408, Vista $507,000 $507, $507,850 $507, Warner Springs $0 $ $320,000 $320, Rancho Santa Fe $2,337,500 $2,337, $1,115,000 $1,115, San Marcos $0 $ $0 $ San Diego Downtown $671,000 $671, $0 $ San Diego $600,000 $600, $354,000 $354, Mission Hills $1,012,500 $1,012, $779,100 $779, North Park $700,000 $700, $790,000 $790, East San Diego $385,000 $385, $360,000 $360, Point Loma $900,000 $900, $928,000 $928, Ocean Beach $978,250 $978, $940,000 $940, Mission Valley $0 $ $579,950 $579, Pacific Beach $1,225,000 $1,225, $1,029,750 $1,029, Old Town SD $796,000 $796, $705,000 $705, Linda Vista $540,000 $540, $503,000 $503, Logan Heights $337,600 $337, $250,000 $250, Encanto $382,250 $382, $360,000 $360, College Grove $540,000 $540, $540,000 $540, Normal Heights $825,000 $825, $624,950 $624, Clairemont Mesa $600,000 $600, $585,000 $585, Coronado $1,575,000 $1,575, $1,685,000 $1,685, San Carlos $579,000 $579, $559,750 $559, Del Cerro $602,500 $602, $573,500 $573, Sorrento $750,000 $750, $896,350 $896, University City $740,000 $740, $736,000 $736, Serra Mesa $544,500 $544, $505,000 $505, Tierrasanta $657,500 $657, $600,000 $600, Mira Mesa $547,800 $547, $530,000 $530, Rancho Bernardo $958,500 $958, $825,500 $825, Rancho Bernardo $700,000 $700, $635,000 $635, Rancho Penasquitos $770,000 $770, $647,000 $647, Carmel Valley $1,365,000 $1,365, $1,052,944 $1,052, Scripps Miramar $937,000 $937, $957,000 $957, San Diego Downtown $0 $ $0 $ Paradise Hills $430,000 $430, $392,500 $392, Miramar $0 $ $0 $ Otay Mesa $449,000 $449, $447,000 $447, San Ysidro $322,000 $322, $355,000 $355,000 GROUP TOTAL COUNTS: Copyright 2017 Greater San Diego Association of Realtors. Data for single-family attached and detached home sales through the Multiple Listing Service of Sandicor, Inc. Neither SDAR nor Sandicor guarantees or is responsible for its accuracy. *The median home price is the price where half of the homes sold for more and half sold for less. It is a more typical price measure than average, which can be skewed high by a relative handful of million-dollar plus transactions. JANUARY REALTOR APPLICANTS The following people have applied for membership in the Greater San Diego Association of REALTORS. Any objections to their admittance should be addressed in writing to the Greater San Diego Association of REALTORS, P.O. Box 85586, San Diego, CA, DESIGNATED REALTORS Mohammad Atefi - HBI Real Estate Richard Benjamin - Lawyers Realty Kendra Chui - Feng Shui Investments Rigoberto Garcia - Garcia Realty Shelly High - Shelly High, Broker Betina Hood - Betina Hood, Broker Todd Johnson - Price One Mortgage & Realty Gerald Koller - International Home Realty Raj Matani - Real Brokerage Technologies Jason Mills - Mills Realty, Inc. Danny Morel - Intero Real Estate Services Edmundo Pulido - Edmundo Pulido, Broker Deborah Raymond - Harmony Realty Neeta Toprani - Neeta Toprani Michael Vielma - Michael Vielma, Broker Henry Winship - Pacific Point Capital, Inc. REALTORS Fadi Abbou - Carrington Real Estate Services Nardeen Abdou - Century 21 Award Juan Carlos Aguilar - Burke Real Estate Consultants, Inc. Aaron Aiken - Allison James Estates & Homes Davante Alexander - C to Sea Realty Joseph Aliano - Shay Realtors Rita Alipour - Schneeweiss Properties Madison Allen - Intrepid Real Estate Lisa Alonzo - Keller Williams SD Central Coastal Robert Anderson - Berkshire Hathaway HomeServices Michael Appelman - Li & Associates Real Estate Services Sonomi Arcidiacono - Person Realty, Inc. Rogelio Avila - Keller Williams SD Metro Michale Azimi - M N M Real Estate Zachary Baccash - Realty One Group Marcela Badin-Kolk - Canter Brokerage Rosalba Barajas - Big Block Realty, Inc. Edward Barnard - Capitis Real Estate Nora Barraza - American Dream Homes Sherrie Barrett - HomeSmart Realty West Jason Bedsole - Teles Properties Stacy Begin - Coronado Shores Company Jean Belanger - Pacific Sotheby s Int l Realty Heidi Lynne Bierek - Silva Coast Realty Paul Blake - Laturno Kuick Realty Melanie Blaski - Berkshire Hathaway HomeServices Helen Buffington - Krone & Bushard, Inc. Alexander Caandoy - Keller Williams SD Metro Jade Caplan - Pacific Sotheby s Int l Realty Che-Hao Chang - Centermac SD, Inc. R. Scott Charles - Top Gun Realty, Inc. Xiaodan Chen - International Home Real Estate Susie Clark - HomeSmartRealty West Diana Cole - Help-U-Sell Distinctive Homes Nathaniel Cornell - Sunset Realty Daniel Dancer - Sellstate Next Generation Jeremy Davidson - Dwell Well Realty Piper Davis - Big Block Realty, Inc. Jordan DeWitt - NetWorth Realty of San Diego Abigail Ducray - Home Solutions Group Brian Echevarria - Highgarden R.E. California, Inc. Daniel England - Pacific Sotheby s Int l Realty Robin Etheridge - The Graf Group Marcelino Figueroa - Keller Williams SD Central Coastal Timothy Flint - GNP Realty, Inc. Matthew Forness - Welcome to San Diego Real Estate Barbara Lynn Frank - Premia Realty Group, Inc. Danielle Gementera - Moore & Sons Realty Sandra Glas - Harcourts Luxury Estates Christopher Gray - John Reeves Ghassan Hacher - Windermere Homes & Estates Philip Halbert - Sill Realty Group Ryan Hanninen - Keller Williams Realty La Jolla Gitit Hefetz - Keller Williams Realty La Jolla Roberto Hernandez - Century 21 Award Jeffrey Hester - Dwell Well Realty Cynthia Higgerson - Whissel Realty Brenda Hines - Watkins Realty Group Mai Hoang - California Brokerage Tien Hoang - Advantage Realty & Mortgage Barbra Hopkins - Krueger Realty Zanette Horton - Cabrillo Mortgage & Realty Services Krista Hubbard - Krueger Realty Veronica Huerta-Aguirre - RE/MAX Solutions Jaime Huizar - Keller Williams Realty Andrea Hunsinger - Berkshire Hathaway HomeServices Diana Iniguez Robles - Big Block Realty, Inc. Seth Isenbart - Keller Williams SD Metro Paul Izidoro - Keller Williams SD Metro Meghna Kamdar - On Q Real Estate Alison Katoozian - Keller Williams Carmel Valley Jeffrey Kleger - New Reality Real Estate, Inc. Sandra Kleinhammer - Keller Williams SD Metro Elizabeth Kovar - Keller Williams Realty La Jolla Rem Le - Driscoll & Royce Yaping Li - Abacus Properties, Inc. Feng Liang - San Diego Sunrise Realty Sasna Lim - Century 21 Award Jaime Limon - Deka & Associates Hannah Lindburg - Pacific Sotheby s Int l Realty Mingling Liu - Del Sol Global, Inc. David Lloyd - Venture Real Estate Kiara Lopez - Keller Williams SD Central Coastal Kristin Lopez - Redfin Corporation Johnnie Lowe - Century 21 Award Christopher Lycett - Keller Williams Realty La Jolla Grace Macdonald - Realty One Group Tomas Marquez - Keller Williams SD Central Coastal Jashua Matiaco - Keller Williams Carmel Valley Daniel Maurer - Vertical Real Estate Services Gregg McCallum - Patriot California Realty David McCormick - Keller Williams SD Metro Carly McCoy - Union Strong Homeowners Natalie Medina - Berkshire Hathaway HomeServices Pamela Mendizabal - La Jolla Realty Angelle Merrill - Real Brokerage Technologies Saul Monroy - Valerio Real Estate & Mortgage Esther Morel - Carrington Real Estate Services Christopher Mushrush - Winderemere Homes & Estates Nicholas Norvell - Town & Country Real Estate Michael Nunez - South Coast Commercial, Inc. Laura Palermo-Benbow - Coastal Pacific Properties Sandeep Parmar - HomeSmart Realty West Sherry Pedro Lee - Pacific Sotheby s Int l Realty Gabriel Peretti Tapia - Keller Williams Carmel Valley Vanessa Peraza Virissimo - Keller Williams La Jolla Cheyann Petrowich - Charles Sommer John Phillips - Dwell Well Realty Alexander Pistone - HomeSmart Realty West Kimberly Ponsoll - RE/MAX Coastal Properties Gilbert Ramos - Homeplus Corporation Acacia Raskin - Keller Williams SD Metro James Reiter - City and Coast Properties Amanda Rettenmaier - RE/MAX Pacific Kevin Rhode - AARE Robert Robeson - Pacific Sotheby s Int l Realty Tasha Robinson - Big Block Realty, Inc. America Romero - Summit Realty Group Lisa Rosas - California Home Services Elaine Ruff - Big Block Realty Richard Saccento - RC Realty of San Diego Paulina Salazar - American Dream Homes Cari Shaffer - Sustainable Realty Group Justin Shea - RE/MAX Coastal Properties Alan Slutsky - Keller Williams SD Metro Chad Smith - Windermere Homes & Estates Anna Sobyanina - Coldwell Banker Res. Brokerage Candida St. John - Pacific Sotheby s Int l Realty Taylor Stone - Keller Williams Carmel Valley Alyssa Styles - SD Real Estate Solutions Sophia Szentes - Berkshire Hathaway HomeServices Jonathan Taddeo - Pacific Coast Executive Realty Wilson Tang - Realty One Group Zachry Thayer - Premier Realty Associates Andres Torres - Berkshire Hathaway HomeServices Matthew Tovey - Cairncross & Associates Jennifer Turrieta - Absolute Results Real Estate Heather Upton - United Real Estate San Diego Christopher Vafiadis - Keller Williams SD Metro James Vangelis - Cypress Realty & Mortgage Jose Vazquez - Berkshire Hathaway HomeServices Maria Videla - Keller Williams Carmel Valley Tyler Walker - Redfin Corporation David Walsh - San Diego Real Estate & Investments Dirk Watters - San Diego City Homes Mohamed Wehba - Exceptional Realty Peter Weinrib - Mission Realty Group Josie Wells - Premiere Properities Tamera Westgate - HomeSmart Realty West Darren Wilson - Harcourts Prime Properties Nathaniel Wulff - Berkshire Hathaway HomeServices Ehren Yee - Keller Williams SD Metro Qunhong Yin - San Diego Sunrise Realty Faith Zember - Frank Galante Associates, Inc. Secondary Members DESIGNATED REALTORS Bill Arant - Windermere Homes & Estates Jill Bentley - RE/MAX United Csilla Crouch - Berkshire Hathaway HomeServices Frank De Bernardo - The Brokerage Greg Gorsuch - Sharper Properties Timothy Hawthorne - Triology Partners Jena Jonville - Keller Williams Realty Amy Kroepel - Berkshire Hathaway HomeServices Lawrence Lahr - Rincon Corporation Bonnie Maloney - Windermere Homes & Estates Avantika Shahi - Haus, Inc. Todd Stearman - Keller Williams Realty Mike Williams - Keller Williams Realty REALTORS Kris Akagi - Windermere Homes & Estates Kamren Arena - Century West Realty Lera Blevins - Single Oak Realty Bree Bornstein - Pacific Sotheby s Int l Realty Justin Manue Bringas - Coldwell Banker Katherine Brizolis - Pacific Sotheby s Int l Realty Kim Carlson - Windermere Homes & Estates Sandra Copeland - Pacific Sotheby s Int l Realty Francisco Cortes - Big Block Realty, Inc. Stephanie Cowan - Keller Williams Realty James Davis - The Brokerage Peggy Foos - Pickford Real Estate, Inc. Deborah Gaddis - Allison James Estates & Homes Elaine Gallagher - Pacific Sotheby s Int l Realty Kim Gurreri - Allison James Estate & Homes April Halvarson - Pacific Sotheby s Int l Realty Kelly Howard - Coldwell Banker Res. Brokerage Jennifer Janzen-Botts - Pacific Sotheby s Int l Realty Anne Mahoney - Keller Williams Realty Zulema Maldonado - Berkshire Hathaway HomeServices Laurie McClain - Pacific Sotheby s Int l Realty Reema Ouro - Zimkin Realty Mary Raser - Pacific Sotheby s Int l Realty Maria Scoma - Pacific Sotheby s Int l Realty Robert Seneker - Allison James Estate & Homes Thor Sorensen - Century 21 Award Dionisio Vallejos - Realty One Group Trilogy Steven Webber - Windermere Homes & Estates 6 The San Diego REALTOR FEBRUARY 2017

7 JANUARY STATISTICS ATTACHED HOMES Current Year Previous Year Current Year Previous Year Zip Code Market Area Mth YTD Mth YTD Mth YTD Mth YTD Mth YTD Mth YTD Alpine $190,000 $190, $0 $ Bonita $250,000 $250, $350,000 $350, Boulevard $0 $ $0 $ Campo $0 $ $0 $ Chula Vista $340,500 $340, $299,500 $299, Chula Vista $280,000 $280, $327,450 $327, Chula Vista $325,000 $325, $348,000 $348, Chula Vista $364,000 $364, $340,500 $340, Chula Vista $366,500 $366, $342,500 $342, Descanso $0 $ $0 $ Dulzura $0 $ $0 $ Guatay $0 $ $0 $ Imperial Beach $475,000 $475, $500,000 $500, Jacumba $0 $ $0 $ Jamul $0 $ $0 $ La Mesa $275,000 $275, $247,000 $247, La Mesa $327,150 $327, $291,500 $291, Lemon Grove $0 $ $0 $ Mount Laguna $0 $ $0 $ National City $182,000 $182, $335,000 $335, Pine Valley $0 $ $0 $ Potrero $0 $ $0 $ Spring Valley $230,000 $230, $270,000 $270, Spring Valley $0 $ $0 $ Tecate $0 $ $0 $ Bonsall $258,250 $258, $0 $ Borrego Springs $0 $ $69,900 $69, Cardiff By The Sea $1,095,000 $1,095, $905,000 $905, Carlsbad $870,000 $870, $558,000 $558, Carlsbad $445,000 $445, $436,000 $436, Carlsbad $457,500 $457, $360,000 $360, Carlsbad $585,000 $585, $575,000 $575, Del Mar $1,160,000 $1,160, $1,470,000 $1,470, El Cajon $290,000 $290, $225,000 $225, El Cajon $243,000 $243, $205,000 $205, El Cajon $258,000 $258, $233,000 $233, Encinitas $682,500 $682, $610,000 $610, Escondido $304,750 $304, $277,500 $277, Escondido $330,000 $330, $354,500 $354, Escondido $285,000 $285, $179,900 $179, Fallbrook $225,000 $225, $190,000 $190, Escondido $0 $ $269,000 $269, Julian $0 $ $0 $ La Jolla $599,000 $599, $682,000 $682, Lakeside $225,000 $225, $196,500 $196, Oceanside $448,750 $448, $477,000 $477, Oceanside $325,000 $325, $339,000 $339, Oceanside $300,000 $300, $265,000 $265, Oceanside $310,625 $310, $290,000 $290, Pala $0 $ $0 $ Palomar Mountain $0 $ $0 $ Pauma Valley $280,000 $280, $0 $0 Zip Code Market Area Mth YTD Mth YTD Mth YTD Mth YTD Mth YTD Mth YTD Poway $365,000 $365, $420,000 $420, Ramona $230,000 $230, $239,000 $239, Ranchita $0 $ $0 $ Rancho Santa Fe $950,000 $950, $0 $ San Luis Rey $0 $ $0 $ San Marcos $430,000 $430, $350,000 $350, Santa Ysabel $0 $ $0 $ Santee $344,750 $344, $270,000 $270, Solana Beach $875,000 $875, $640,000 $640, San Marcos $405,000 $405, $385,000 $385, Vista $310,000 $310, $258,500 $258, Valley Center $623,000 $623, $0 $ Vista $314,500 $314, $252,500 $252, Vista $257,000 $257, $220,000 $220, Warner Springs $0 $ $0 $ Rancho Santa Fe $880,000 $880, $802,500 $802, San Marcos $0 $ $0 $ San Diego Downtown $590,000 $590, $450,000 $450, San Diego $338,000 $338, $232,000 $232, Mission Hills $567,500 $567, $400,000 $400, North Park $335,000 $335, $283,500 $283, East San Diego $199,000 $199, $149,900 $149, Point Loma $662,500 $662, $700,000 $700, Ocean Beach $419,000 $419, $849,000 $849, Mission Valley $389,000 $389, $296,000 $296, Pacific Beach $685,000 $685, $553,600 $553, Old Town SD $380,000 $380, $384,000 $384, Linda Vista $420,000 $420, $350,000 $350, Logan Heights $315,000 $315, $179,900 $179, Encanto $355,200 $355, $199,000 $199, College Grove $272,000 $272, $208,750 $208, Normal Heights $330,000 $330, $295,000 $295, Clairemont Mesa $336,000 $336, $295,850 $295, Coronado $1,030,500 $1,030, $1,100,000 $1,100, San Carlos $260,000 $260, $266,500 $266, Del Cerro $339,000 $339, $285,000 $285, Sorrento $535,000 $535, $346,000 $346, University City $499,900 $499, $385,000 $385, Serra Mesa $427,500 $427, $320,500 $320, Tierrasanta $415,000 $415, $383,889 $383, Mira Mesa $327,000 $327, $299,000 $299, Rancho Bernardo $480,000 $480, $395,000 $395, Rancho Bernardo $420,000 $420, $375,000 $375, Rancho Penasquitos $312,250 $312, $289,500 $289, Carmel Valley $515,500 $515, $560,775 $560, Scripps Miramar $420,000 $420, $435,000 $435, San Diego Downtown $0 $ $0 $ Paradise Hills $364,650 $364, $261,000 $261, Miramar $0 $ $0 $ Otay Mesa $300,000 $300, $295,000 $295, San Ysidro $249,000 $249, $235,000 $235,000 GROUP TOTAL COUNTS: Copyright 2017 Greater San Diego Association of Realtors. Data for single-family attached and detached home sales through the Multiple Listing Service of Sandicor, Inc. Neither SDAR nor Sandicor guarantees or is responsible for its accuracy. *The median home price is the price where half of the homes sold for more and half sold for less. It is a more typical price measure than average, which can be skewed high by a relative handful of million-dollar plus transactions. EDUCATION Tax Planning For REALTORS - One-Hour Workshops at SDAR Get educated and prepared for tax season! Almost everything you buy for your real estate business is tax deductible as long as it is ordinary and necessary and the cost is reasonable. SDAR is offering one-hour workshops prior to the April tax deadline, taught by investment advisor and tax preparer Jesse Lipscomb. (See details below.) This tax planning workshop includes information on how REALTORS can save on self-employment taxes, the new Medicare surtax, and retirement planning. Topics for review include: How to save $5,000 to $10,000 in Self-Employment Taxes How to reduce/eliminate the new 3.8% Medicare Surtax How to avoid Passive Activity Loss Limitations (a must-know for real estate investors) Why you must become a CalBRE Broker now! Will You Pay Taxes On Social Security in Retirement? Retirement Planning how to invest in real estate using your own Roth 401k or Roth IRA, all tax free! A licensed investment advisor and registered tax preparer, instructor Jesse Lipscomb specializes in Tax Return Based Financial Planning. A familiar voice on San Diego radio, he hosted the Financial CPR Radio Show on AM 1170 KCBQ, and cohosted The Money Makers on AM 760 KFMB. DATES/LOCATIONS Tuesday, February 28, 2017 South County Service Center 300 East H St. #1001, Chula Vista Thursday, March 16, 2017 Carlsbad Service Center 1850 Marron Rd. #104, Carlsbad Tuesday, April 4, 2017 Kearny Mesa Service Center 4845 Ronson Court, San Diego Time: 11:00 a.m. 12:00 p.m. Instructor: Jesse Lipscomb Prices: SDAR REALTORS...$7.50 REALTOR Plus Members...$5 All Others...$10 Register: or call Member Services at (858) President s Perspective page 2 Election ballot in November 2018, limited to the transfer of personal residences. This is just one goal of your association for There are many more to improve the housing issues, housing market, and to make sure SDAR is delivering the best MLS and benefits to you, our members. I consider you some of the best professionals in real estate, and you deserve an association that is working to make sure the real estate market is healthy and that you have the tools to grow your business. With your encouragement and support, together we will build a better and brighter future for us, for our children, and for future generations. Bob Kevane FEBRUARY 2017 The San Diego REALTOR 7

8 50 Average Days on Market 2600 Sold Listings JANUARY 2017 STATISTICS Detached Attached Detached Attached Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Sales Volume Median Sales Price Detached Attached Detached Attached Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 COMPARATIVE SALES - EXISTING HOMES - JANUARY 2017 SAN DIEGO COUNTY Monthly Report DETACHED ATTACHED Sales ATTACHED % Change from % Change from Sales % Change from Prior Year Prior Month Prior Year 1 Total Sales Volume - January 2017 $934,624, % % $298,773, % % % Change from Prior Month 2 Average Sales Price - January 2017 $698, % % $445, % 0.519% 3 Median* Sales Price - January 2017 $559, % % $378, % 3.767% 4 Sold Listings - January , % % % % 5 Average Days on Market - January % 3.724% % % 6 Total Sales Volume - January 2016 $910,493,200 $302,844,986 7 Average Sales Price - January 2016 $675,440 $435,122 8 Median* Sales Price - January 2016 $530,000 $351,450 9 Sold Listings - January , Average Days on Market - January Year-to-Date Report DETACHED Sales % Change from Prior Year % Change from Prior Month ATTACHED Sales % Change from Prior Year 11 Total Sales Volume - YTD 2017 $934,624, % $298,773, % 12 Average Sales Price - YTD 2017 $698, % $445, % 13 Median* Sales Price - YTD 2017 $559, % N/A $378, % 14 Sold Listings - YTD , % % 15 Average Days on Market - YTD % % 16 YTD Total Sales Volume - YTD 2016 $910,493,200 $302,844, YTD Average Sales Price - YTD 2016 $675,440 $435, YTD Median* Sales Price - YTD 2016 $530,000 $351, YTD Sold Listings - YTD , YTD Average Days on Market - YTD % Change from Prior Month N/A Copyright 2017 Greater San Diego Association of Realtors. Data for single-family attached and detached home sales through the Multiple Listing Service of Sandicor, Inc. Neither SDAR nor Sandicor guarantees or is responsible for its accuracy. *The median home price is the price where half of the homes sold for more and half sold for less. It is a more typical price measure than average, which can be skewed high by a relative handful of million-dollar plus transactions. Assistance with HOA Payments for First-Time Homebuyers Qualified first-time homebuyers may receive up to six months of HOA dues, not to exceed $2,500, through the California Association of REALTORS Housing Affordability Fund s Homeowners Association Grant Program. The program application and certification from along with rules and conditions for HAF s Homeowners Association Grant Program will be available in zipform under the HAF library beginning December 14, Due to limited availability, funds will be distributed on a first come/first served basis. How to Qualify: Homebuyers must use a California REALTOR in the transaction Purchase a primary single family residence in California with the intent to occupy the property as your primary residence Be a first-time homebuyer* Buy a home with applicable HOA dues/fees How to Apply: REALTORS must complete a program application and certification form on behalf of their client. The program application and certification form along with rules and conditions for HAF s Homeowners Association Grant Program are available in zipform under the HAF Library HAF must receive all program requirements no later than thirty (30) days after closing escrow For additional program details and requirements visit: CARHAFHOAGRANT *See program rules and conditions 8 The San Diego REALTOR FEBRUARY 2017

9 LAW & ETHICS Uncivil Discourse: Spotting & Stopping Sexual Harassment Within a brokerage, sexual harassment claims pose a distinctive challenge. When offensive behavior crosses the line, what can you do? By Stephanie B. Goldberg It s a fact that people in the workplace don t always display exemplary behavior toward one another. But at what point do remarks or actions of a sexual nature become legal violations or even crimes? Lawsuits tell lurid stories of attacks after a holiday party or demeaning behavior at professional conferences, making it clear the problem is not limited to the office. Sexual harassment can happen anywhere, says Bruce Aydt, senior vice president and general counsel of Berkshire-Hathaway HomeServices Alliance Real Estate in St. Louis. As a worker safety issue, it should be taken seriously and thoroughly investigated. Even when it doesn t lead to a court battle, sexual harassment can destroy morale and alienate colleagues, tarnishing the reputation of a brokerage and the professional integrity of a workplace. The federal Equal Employment Opportunity Commission references unwelcome sexual advances and other conduct in its definition of sexual harassment. However, this standard applies to and protects employees, not independent contractors. As a result, real estate agents who operate as independent contractors might assume they have no recourse. And brokers may think, if an offender is an independent contractor, they are exempt from liability. But the reality of both situations is more complicated and raises important issues, not just from a legal standpoint but as a matter of professionalism. For brokers, the best course of action is prevention. That starts with making sure everyone in the office knows what constitutes harassment and understands the basics of federal sexual harassment law. According to the EEOC, sexual harassment violates Title VII of the 1964 Civil Rights Act and consists of unwelcome sexual advances or other sexually oriented conduct connected to a victim s employment or work performance. There are two broad categories: Quid pro quo harassment, as the name suggests, occurs when someone, usually a supervisor, tries to forcibly turn a business relationship into a romantic one. Submitting to sexual relations with the higher-up is the condition of continued employment or a raise or promotion. It can also result when a romantic relationship sours: The party with the upper hand may force the other person to stay in the relationship with threats or coercion. Anytime there is no line drawn between professional and casual relationships, peril exists, says attorney Andrew Lieb of Manhasset, N.Y., who represents and trains real estate professionals. Quid pro quo harassment is much less common than it was 20 or 30 years ago, says David Schein, a law professor at the University of St. Thomas in Houston and practicing attorney who trains brokers. I don t think I ve seen a case in five years. Hostile environment harassment defined by the Supreme Court as a sexualized atmosphere so severe and pervasive that it alters the conditions of employment is more prevalent, Schein says. The telltale signs are tasteless, raunchy humor; sexual banter; unwanted touching; and pornography in plain view in cubicles or on computer screens. Courts require that the behavior be objectively offensive rather than merely upsetting to the person experiencing it. Hostile environment complaints can also come from those caught in the crossfire of flagrant quid pro quo harassment who feel they re not competing on a level playing field. Not every incident that disrupts an office counts as actionable harassment. Most of what I see are insensitive remarks that weren t really intended to hurt or create a sexually charged environment, observes Schein, also a broker for the past 38 years. A typical complaint is, I really like working here, but there s an awful lot of sex talk in the lunchroom. Such complaints are just as likely to come from men as from women today, he says. What about an employee who assaults a coworker while under the influence? If it s an isolated event, is it actionable as harassment? Yes, says employment attorney Jo Bennett of Schnader Harrison Segal & Lewis LLP in Philadelphia. An assault potentially could form the basis of a sexual harassment lawsuit. In a sexual harassment claim, a plaintiff must prove, among other things, that the harassment suffered was severe or pervasive. Courts have recognized that even one severe act could rise to sexual harassment under the legal standards. It s worth noting sexual harassment is a form of discrimination connected to a work situation, while assault is a criminal matter involving physical contact. In a workplace that includes employees and independent contractors, sorting out liability issues seems daunting. In general, in businesses with more than 15 employees, those employees have the right to sue for harassment under federal law. Independent contractors represent a much lower risk of litigation exposure to broker-owners, Lieb says. That s because brokers aren t generally liable for harassment of an independent contractor under federal law unless it can be proved that the contractor has been misclassified and has limited control over hours, tools, and other aspects of the work relationship. However, local civil rights ordinances may not exempt brokers from liability with independent contractors, so the advice of an experienced attorney is crucial, Lieb adds. What if the alleged harasser is an independent contractor? If it s an employee who has made the complaint, the independent contractor s status will not necessarily protect a brokerage from liability. In comparable lawsuits filed by hospital workers who alleged harassment by contract physicians, courts have found that employers have a duty to protect employees from sexual harassment by third parties. If it s an agent complaining of harassment by another agent, the grievance should never be ignored, for business and ethical reasons if not legal ones, Lieb says. Focus on making your workplace inclusive, where everyone feels respected. A policy should be in place that specifies reporting and investigation procedures. Aydt says sexual harassment training should be part of orientation and a continuing topic of discussion. It also reinforces an ethical obligation expressed in Article 10 of the REALTORS Code of Ethics, which forbids discrimination based on race, sex, or other protected categories. The National Association of REALTORS offers a model policy for brokerages (available in the NAR REALTOR Store) which includes steps for handling complaints. Complainants should receive an assurance against retaliation and a penalty for false reports. Policies establish legal rights and responsibilities, but training communicates the importance of respect and professionalism and ensures that people understand the policies and complaint procedure, says Lieb, which can prevent people quitting out of frustration. It s one way to communicate a respectful office culture, Lieb says. Real estate companies need to be prepared to handle these problems, says broker-associate Brooke Wolford of BRIX Real Estate in Minneapolis, a 17- year veteran. Wolford had an incident years back with a colleague who made no secret he wanted to date her. When he wouldn t back off, things became uncomfortable, she says. There was no one to complain to, and I didn t think they d back me up because he was a top seller. Her solution was to leave. Wolford thinks if the problem cropped up today, she d be more likely to go through office channels. To keep issues from escalating, managers should hold moderated meetings where agents and staff can discuss what it means to be respectful and identify barriers to be overcome. Leading by example in communications and demeanor sets the professional expectations that apply to everyone affiliated with an office. (Stephanie B. Goldberg s article appeared in the January 2017 edition of REALTOR Magazine.) FEBRUARY 2017 The San Diego REALTOR 9

10 REACH SAN DIEGO S LARGEST LOCAL REAL ESTATE AUDIENCE 4.1 MILLION PRINT & DIGITAL USERS EACH AND EVERY MONTH SATURDAY MAY 21, 2016 NEW HOMES Inside NEW HOMES COMMUNITY OF THE WEEK Mortgage Guide 2 New Home Directory 4 New Home Pride SDCLT brings affordable housing to Lemon Grove Plans are underway for two affordable housing projects by the San Diego Community Land Trust, a nonprofit organization dedicated to providing affordable homeownership. The groundbreaking for nine singlefamily attached homes in Lemon Grove is scheduled for June or July, said Jean Diaz, executive director of the land trust. Plans call for three units in three buildings. The homes, designed by Platt/ Whitelaw Architects, Inc., will be 1,500 square feet and include three bedrooms, two bathrooms and an enclosed two-car garage. The threestory units also will PAT SETTER U-T REAL ESTATE be solar-ready. CORRESPONDENT The homes have modern styling and a very efficient interior layout, Diaz said. They will be priced to be affordable to buyers earning between 80 to 100 percent of the San Diego area median income, Diaz said. The median income for a family of four is currently $75,900 and Diaz expects the homes will sell in the $260,000- $320,000 range. Last year, the median home price in San Diego County was $440,000, which would require an annual income of about $120,000 to make it affordable. San Diego ranks among the least affordable metro areas in the country. The reason these homes can sell at such a low cost is because SDCLT will own the land, which the organization purchased for $1 per unit (or $9) from the city of Lemon Grove. The land will be leased to the homeowners with 99-year leases. This ensures the homes will stay affordable as the units change ownership. The purpose is to take the spiraling land cost equation out, Diaz said. The biggest cost factor is the appreciation of land. We control what is happening to the land value. Homeowners will be able to sell the homes anytime, but cannot sell it for more than what s affordable to buyers in the median income range. If the area median income goes up 10 percent, then the resale can go up 10 percent, Diaz said. The Lemon Grove project, which is called Northside Commons, also has earned certification by MOVE Alliance for its proximity to public transportation. These projects demonstrate the potential for turning an underutilized lot into compact, affordable housing that encourage residents to take transit and ride bikes rather than to use other vehisee Pride 2 Ca loan al of tim Cwi loans at eig neighborho San Diego. available th preferred l home purc escrow on Buyers can of a tempo reduction o year one; 2 two; and 3. three to 30 ing 30-year At Apex a Valley,hom stunning co family hom dining and tors will de finishes,ex outdoor en options like multigener HOMES, RENTALS, MORTGAGE RATES INSIDE SearchHomesSD.com real ru-t estate CENTRAL EDITION ADVERTISING SUPPLEMENT TO THE SAN DIEGO UNION-TRIBUNE SUNDAY MAY 15, 2016 spectacular living Thish palatial residence on the edge of Del Mar Mesa is loaded with custom upgrades and sophisticated, contemporary style. The design evokes a rustic ele- gance that perfectly captures high-end California coastal living. French windows and doors perfectly frame hillside- to-sea views while flooding the home with natural light. From the foyer, a graceful curved staircase leads you upstairs. The gorgeous living areas are appointed with finely crafted materials including porcelain floors, wroughtiron railings and dramatic fireplaces. Solid wood beams in the vaulted ceilings provide an ambience of both comforting warmth and strength. The stunning kitchen features top-of-the-line appliances and high-quality materials, including soft-close cabinets and under-cabinet lighting, in an open, functional design, ideal for prepping and cooking for large parties or intimate gatherings. The kitchen flows effortlessly into the living room, with a grand fireplace and built-in entertainment center, and dining area. The yard is a blank slate, full of possibilities and waiting for your personal touch. MORE ABOUT THIS PROPERTY ON PAGE 4 Listing provided by Gregg Neuman, Berkshire Hathaway HomeService by C ON THE SATURDAY JUNE 4, 2016 Luxury View Homes in San Elijo Hills! Now pre-selling. Set in the breathtaking hills of North Sa Diego County,The Summit by Richmond American feature an inspired home collection with an abundance of personalized options. Where: 1212 Lexi Court,Sales Office Open:10 am 5 pm Price: Starting from $1.1 Millions Size: Approx. 3,070 4,672 Sq. Ft. 3 7Bedrooms Contact: or Fletcher Hills/ La Me Open Sunday 12-3pm, 6257 Falmouth D No expense was spared renovating prop beautiful masterpiece! High end finishe essential modern kitchen, to handcrafte that flow through high ceilings. Enter & you ve found your new home! $489,000. Sean Patrick O Hara AFC Realty Inc., (619) 379- Downtown Open Daily 9am-6pm, th St. Suite Live Above It All! Now leasing from $1 design & modern day must haves. Brand bedroom luxury suites. Concrete high-r Views of the City! Outdoor pool, spa, l room, gym, BBQ. Pinnacle On The Park, (619) 54 OPEN SAT Lavade Ln, Bonita CA $599,000-$629,000 arge corner Bonita Hills el patio y un mini golf para jugar, lot 3 BR, 2.5 BA, 2,021 sq aire acondicionado y,barda de vinil L ft., cul-de sac location, tile nuevos, muy buena ubicacion, flooring downstairs & upgraded pueden pasar a verla el Sabado de carpeting 2nd, outdoor kitchenette, BBQ Grill, putting green & Español. las 12 a las 4 El Mejor Servicio En new vinyl fencing. New upgraded A/C. Casa de 3 recamaras 2.5 FERNANDO CERVANTES baños, 2021 pies cuadrados en RENOVATION REALTY Bonita Hills, terreno en esquina, (619) pisos de mosaico en el primer piso CalBRE # y alfombra de mejor calidad en fcervantes@renovationrealty.com el segundo, cocineta y BBQ en FANTASTIC BAY PARK VIEWS 3526 Baker Street, Clairemont Asking $689,000 ea World, Mission Bay, Street. Minutes to Mission Bay, ocean and mountain views - beaches and water sports, La S all day long and technicolor Jolla, downtown and the airport. sunsets in the evening. Enjoy Fantastic lot with so many these views from the living room possibilities. and dining area, kitchen and breakfast area, as well as from the enclosed front porch. Also, SUSAN MOORE DIAMOND patios outside to entertain guests & CAROLINE GLASNER while they enjoy the Sea World PACIFIC SOTHEBY S INTERNATIONAL REALTY fireworks. Corner lot, single level ranch-style home with 2BR, & BA, 2-car garage is on Baker OPEN SAT 12-4 Connect with us. Anytime. Anywhere. SearchHomesSD.com The San Diego REALTOR FEBRUARY 2017

11 New Laws page 1 have a duty to inspect for bedbugs if he/she has received no notice of an infestation, they are required to provide pest control reports to tenants when units or common areas have been inspected. Condo Owner-Occupied Percentage In order for a condominium project to be acceptable for FHA insurance, only 35 percent of family units (including those not covered by FHA-insured mortgages) need to be occupied by owners as a principal or secondary residence. Previously the requirement was 50 percent. The event also featured a lively panel discussion on local housing issues with San Diego City Council Members Scott Sherman and Chris Cate, Chula Vista Mayor Mary Casillas Salas, National City Mayor Ron Morrison, and La Mesa Council Member Colin Parent. Dan Sandri, chief deputy commissioner for the California Bureau of Real Estate, apprised the crowd on CalBRE s licensing and legislative activities. Pete Solecki, SDAR general counsel, and Kyle Pietrzak, SDAR vice president of risk management, updated the crowd on issues of dual agency and the current status of the MLS. Thanks to all participants of New Laws 2017 and your support of the REALTOR Action Fund. Your contribution to the REALTOR Action Fund (RAF) allows SDAR, C.A.R. and NAR to advance the goals of our REALTOR political action committees (PACs) at the local, state, and federal levels of government. SDAR Education Schedule SOUTH COUNTY R-Plus = REALTOR Plus Classes subject to change or cancellation. LEGEND: KEARNY MESA SOUTH COUNTY EAST COUNTY SOLANA BEACH CORONADO CARLSBAD FEB CLASS TITLE TIME R-Plus SDAR Others Credits PRESENTER 22 Paragon Tips & Tricks 9:00 am 12:00 pm Free Free Free Free Sandicor Trainer 23 QuickBooks for Property Managers & Landlords 9:00 am 12:00 pm $17 $20 $23 NA Mike LaNier 28 Fundamentals of Transaction Coordination 9:00 am 2:30 pm $79 $79 $119 NA Wendi Molina 28 Tax Planning for REALTORS 11:00 am 12:00 pm $5 $7.50 $10 NA Jesse Lipscomb MAR CLASS TITLE TIME R-Plus SDAR Others Credits PRESENTER 2 Standard Forms Updates 9:00 am 12:00 pm $12.75 $15 $17.25 NA Kevin Burke 2 zipform Plus 1:00 pm 4:00 pm $25.50 $30 $34.50 NA Kevin Burke 7 Paragon MLS: Let's Get Started (Basic) 9:00 am 12:00 pm Free Free Free NA Sandicor Trainer 7 Paragon MLS: Search to Sell (Basic) 1:30 pm 4:30 pm Free Free Free NA Sandicor Trainer 8 FHA 203K: Vital for Today's Agent 10:00 am 11:30 am $5 $7.50 $10 NA Aaron Johnson 9 Paragon Tips & Tricks 9:00 am 12:00 pm Free Free Free NA Sandicor Trainer 14 Paragon MLS: Nationwide Searches / RPR 9:00 am 12:00 pm Free Free Free NA Sandicor Trainer 14 Paragon MLS: Client Connect / Collaboration Ctr 1:30 pm 4:30 pm Free Free Free NA Sandicor Trainer 15 Pricing Strategy Advisor (PSA Certification) 9:00 am 4:30 pm $80.75 $95 $ NA Ginni Field 16 Tax Planning for REALTORS 11:00 am 12:00 pm $5 $7.50 $10 NA Jesse Lipscomb 29 Paragon Tips & Tricks 1:30 pm 4:30 pm Free Free Free Free Sandicor Trainer APR CLASS TITLE TIME R-Plus SDAR Others Credits PRESENTER 4 Tax Planning for REALTORS 11:00 am 12:00 pm $5 $7.50 $10 NA Jesse Lipscomb CEO Message page 3 On the state level, some of the issues featured included, among other topics: Recreational Use of Marijuana Passage of Prop. 64 Junior Accessory Dwelling Units (Granny Flats) Bedbugs Disclosures Condo Owner-Occupied Percentage Our local panel discussed issues ranging from new housing developments to growth plans to potholes. All in all, it was a lively and entertaining gathering, so I thank everyone who participated and attended. 5 Rev Up Your Sales in Reverse 9:00 am 12:00 pm $17 $20 $23 3 CS Ryan Kleis 6 Agent Boot Camp: Jump Start Your Career 9:00 am 3:30 pm $17 $20 $23 NA Patrick Alexander For easy registration and current information, visit or call (858) We Specialize in Smooth Transactions All Phases of Termite Treatment and Repairs $49.00 Inspection Fees Low Price Guarantee FREE Second Opinion Inspections In Every Transaction there are Challenges and a Solution! Michael Mercurio Your Solution to Quality Inspections, Repairs and Treatments. We Understand the importance of Reliability, Quality and On time service - Everytime! Our services include: Water Damage Repair Experts. Variety of treatments. Wood Decks, Patio Covers, Doors, Windows, Flooring, Siding, Fencing. We do it all. License# PR4872 Call: WOOD Fax: rsolutiontc@sbcglobal.net FEBRUARY 2017 The San Diego REALTOR 11

12 March 2017 March 2017 Calendar of Events Sunday Monday Tuesday Wednesday Thursday Friday Saturday All classes/events subject to change or cancellation New Member Orientation 8:30 am 3:30 pm (Kearny Mesa) Paragon MLS Training 9:00 am 4:30 pm (Kearny Mesa) FHA 203K - Vital for Today's Agent 10:00 am 11:30 am (Kearny Mesa) Standard Forms Update 9:00 am 12:00 pm (East County) zipform Plus 1:00 pm 4:00 pm (East County) Paragon Tips & Tricks 9:00 am 12:00 pm (Coronado) One-Day Prep Course 8:30 am 3:00 pm (Kearny Mesa) Committee meetings Government Affairs 9:00 am - 11:00 am Young Professionals Network 1:00 pm - 2:00 pm Executive 3:30 pm 5:00 pm Grievance 9:00 am 11:00 am Risk Management 12:00 pm - 2:00 pm Paragon MLS Training 9:00 am 4:30 pm (Kearny Mesa) Pricing Strategy Advisor (PSA Certification) 9:00 am 4:30 pm (Kearny Mesa) Paragon Tips & Tricks 1:30 pm 4:30 pm (South County) Tax Planning for REALTORS 11:00 am 12:00 pm (Carlsbad) Bylaws 2:30 pm 4:30 pm Commercial Alliance (CRASD) 9:00 am 10:00 am SDAR Board of Directors 9:00 am - 11:30 am Housing Opportunities 10:00 am 11:30 am CREA Board of Directors (at Coronado Service Center) 1:00 pm 2:00 pm REALTOR Political Affairs 9:30 am - 11:30 am International 1:00 pm - 2:00 pm Education 11:00 am - 1:00 pm Membership/Business Tech. 1:30 pm - 3:30 pm HOUSING LEGISLATION Industry Reacts to HUD Halting Mortgage Insurance Reduction The U.S. Department of Housing and Urban Development announced last month that it was suspending indefinitely the FHA premium rate cut that had been expected to take effect on Jan. 27. HUD had announced the reduction Jan. 9, saying continuing strength in FHA s reserve fund, the Mutual Mortgage Insurance Fund, warranted the move. According to the National Association of REALTORS (NAR), the MIP reduction would have prompted annual premiums to drop from 0.85 percent to 0.6 percent. NAR estimated the reduced premium would save the average FHA borrower $500 a year in insurance costs. The California Association of REALTORS (C.A.R.), which had also previously indicated its support of the reduction, expressed concern for California homebuyers in particular. We hope HUD and the Trump administration will make it a priority to quickly review the reduction in the FHA mortgage insurance premium, said C.A.R. President Geoff McIntosh in a statement. Homebuyers in California, who would have saved an average of $860 a year, will be negatively impacted more than any other state by the decision to not reduce the FHA premium. NAR President William E. Brown released a statement Friday in response to the announcement: According to our estimates, roughly 750,000 to 850,000 homebuyers will face higher costs, and 30,000 to 40,000 new homebuyers will be left on the sidelines in 2017 without the cut. We re disappointed in the decision but will continue making the case to reinstate the cut in the months ahead. In announcing the suspension, HUD sent a letter to the industry saying it would issue a subsequent Mortgagee Letter at a later date should this policy change." In the letter, HUD expressed its commitment to the continued long-term viability of the mortgage insurance program. 12 The San Diego REALTOR FEBRUARY 2017