February 2016 New River Valley Association of REALTORS 125 Ponderosa Dr. Christiansburg, VA 24073 Phone: 540.381.9354 www.nrvar.com www.facebook.com/nrvrealtors In this issue: 2 Regulatory Changes 4 News from VAR 5 News from NAR 6 Looking Back 7 Upcoming Events 8 Call to Action 9 RPAC Contributors 10 Affiliate List Valley Voice VAR Virginia Home Sales Report: Fourth Quarter 2015 Fourth Quarter Market Summary: The 2015 Virginia residential real estate market outperformed every year from 2007 to 2014. Virginia s 2015 residential real estate market far outperformed 2012, 2013 and 2014 in the peak of summer sales. In June, 2015 sales approached the levels Virginia last experienced in 2005 and 2006. In the fourth quarter, 2015 sales were 3.8% higher than in the fourth quarter of 2014. Annualized residential sales also increased in the fourth quarter, indicating that the Virginia residential real estate market is still growing steadily. Virginia s median sales price has remained extremely stable and experienced no year-over-year change in the fourth quarter. The median sales price followed typical seasonal trends throughout the year, although moderate changes made seasonality less pronounced. Median sales price increased year-over-year in every region except Northern Virginia. The state and national unemployment rates remained low while mortgage interest rates increased. Since mortgage interest rates remain historically low, the low unemployment rate should encourage participation in the market. Feb. 5 Feb. 10 Feb. 15 Feb. 16-18 Feb. 24 Feb. 25 CALENDAR OF EVENTS 2016 REALTOR Celebration, 6:00 PM Portrait Opportunity w/ Charlie Whitescarver, 1:00 PM NRVAR Office Closed President s Day VAR Legislative Conference Lunch & Learn, ALCOVA Mortgage, 12:00 PM NRVAR BOD Meeting, 9:30 AM
On November 1, 2015, new Virginia Real Estate Board Regulations took effect. This document will provide a comprehensive overview of all significant amendments to the regulations. ADVERTISING For Sale or For Rent Signs Placed on Property When the regulations become effective, some firms and agents may have to alter their real estate signs. The regulations provide that for sale and for lease signs placed on property must at least include the firm s name and the firm s primary or branch office telephone number. Individual licensees should also include their name on the sign. The proposed Real Estate Board Regulations did not specify where on the sign the firm s phone number must be located. Therefore, firms may include the firm phone number on a sign rider, a sticker on the sign or anywhere else on the sign. The only requirement is that the firm phone number and all other information must be clearly and legibly displayed. Also, licensees can include their phone numbers on the sign as long as the firm s phone number is included somewhere else on the sign. Other Print Advertising The regulations made clear that the firm name is all that is required for firm advertisements. Licensee advertisements must include the firm name and licensee s name. Business Cards The regulations will require that cards must at least include the firm name, licensee s name and contact information. Contact information means telephone number or web address. Electronic Advertising The amendments regarding electronic advertising will generally not change the advertising disclosures currently required due to the interplay between the Code of Ethics and Real Estate Board Regulations. However, the location in which disclosures are placed and linked may require alteration to your electronic disclosures. Please follow the bullets below all the way through for a walkthrough explaining the changes. All electronic media advertising must include the following disclosures on the viewable page (jurisdictions of licensure was eliminated): -Firm Advertising -Firm s licensed name; and -The city and state in which the firm s main office or branch office is located. -Licensee Advertising -Licensee s name; -Firm name; and -The city and state in which the licensee s place of business is located. The new regulations specify where electronic media disclosures must be located in a slightly new way. Please note this change because it is a new way of linking to your disclosures. -The firm or licensee main page must clearly and legibly include all electronic media disclosures described above on the viewable page. -The firm or licensee non-main page(s) may clearly and legibly include all electronic media disclosures on each individual online page OR link to those electronic media disclosures on the viewable main page. Therefore, it is critical to include all required disclosures on the firm or licensee main page. NAR s Code of Ethics has existing additional disclosure requirements that must be adhered to by members. -If the advertisement is on a firm or Realtor website, the firm name and states of licensure of the firm or licensee must be on the main home page. Non-main pages may just include a link back to the main home page of the firm or licensee. (Article 12, Standard of Practice (SOP) 12-9) -Other electronic advertising vehicles, like an online news site, must include at least the firm name; not just a link. (Article 12, SOP 12-5) Putting it all together: -Members should include all Real Estate Board electroni media disclosures AND states of licensure on all Firm and REALTORS main home pages. Non-main pages that are part of the same website may include a link to the main home page that includes the aforementioned disclosures. -For non-firm or non-realtor owned or operated ele tronic media sites, they must at least include the firm name and can then include a link to their main page that includes all required disclosures. Of course, every electronic media page can include all electronic advertising disclosures as well.
Agent/Owner Advertising Agents must include in all advertising that the owner is a real estate licensee if the licensee owns or has any ownership interest in the property advertised. This is new because the agent/owner advertising disclosure applies even if the property is listed with a firm. Please note that this requirement includes for sale and for rent signs, which may require a sign rider. ESCROW If the transaction is not completed, and all principals to the transaction have agreed in writing as to the earnest money deposit disposition, the funds must be returned by the escrow agent within 20 days of the agreement. The principal broker now must have signatory authority on all escrow accounts. Firms need not hold escrow funds in a Virginia bank. The ot er requirements for escrow accounts remain (federally insured, in firm name, etc.) Application deposits are defined and must be placed in escrow by the end of the fih business banking day following approval of the rental application by the landlord unless all principals to the lease have agreed otherwise in writing. Statutory interpleader options for disbursement and forecl sures are explained. Disbursement options at foreclosure are incorporated in the regulations. The regulations clarify that unless the principals agree in writing, prepaid rents and funds paid to the licensee in connection with a lease must be deposited in escrow within 5 business banking days of receipt. The regulations provide a new list of prohibitions that reflect current practice: -A licensee shall not submit copies of the same ea nest money deposit check with multiple offers. -A licensee shall not represent in offers he received the earnest money deposit when he has not or he knows the check is worthless. -A licensee shall not misrepresent who is holding the EMD. -Licensees have an obligation to submit deposits to their brokers in a timely manner. This is a specific obligation of licensees. LICENSURE/BROKER SUPERVISION Excess continuing education credits completed by the licensee that are obtained within six months immediately prior to the license expiration date will carry over in the next two-year renewal period. Home offices must now have a separate entrance accessible to the public. Members of the public should not have to pass through any parts of the residence to enter the office. Supervising brokers must now ensure licensees have active, current licenses. This may require each firm to designate an individual responsible for checking periodically to determine that all licensees affiliated with the firm still have active licenses. A helpful resource to accomplish this is DPOR s License Lookup Site: http://www.dpor. virginia.gov/licenselookup/. The Board clarified activities requiring a license: a. Showing property; b. Holding an open house; c. Answering questions on listings, title, financing, closing, contracts, brokerage agreements, and legal documents; d. Discussing, explaining, interpreting, or negotiating a contract, listing, lease agreement, or property management agreement with anyone outside the firm; and e. Negotiating or agreeing to any commission, commission split, management fee, or referral fee. The Board clarified limits on unlicensed assistants/employees: The supervising broker shall provide adequate supervision over the unlicensed employee(s) or assistants under the supervision of a broker as they perform the following permitted activities: Perform general clerical duties, including answering the phones, responding by electronic media, and providing information shown on the listing; Winter 2015/2016 Commonwealth 23 Submit listings and changes to MLS; Follow up on loan commitments after contracts have been ratified; Have keys made for listings; Compute commission checks; Place signs on properties; Act as a courier service; Schedule appointments; Record and deposit earnest money deposits, security deposits, and advance rents; Prepare contract forms for approval of the licensee and supervising broker; Prepare promotional materials and advertisements for approval of the licensee and supervising broker; Assemble closing documents; Obtain required public information from governmental entities; Monitor license and personnel files; Order routine repairs as directed by a licensee; Are compensated for their work at a predetermined rate that is not contingent upon the occurrence of a real estate transaction; and Perform any other activities undertaken in the regular course of business for which a license is not required. The new regulations create a process for brokers to exchange their licenses for that of a salesperson. A licensee who submits an activate application to the board shall not conduct business with the real estate firm or sole proprietorship set forth in the application until the application is processed and the license is issued by the board. The regulations reflect the transfer process agreed to by VAR and the VREB. The regulations make clear that a licensee is prohibited from practicing real estate after his license expires even though DPOR s system lists him as Active for 30 days after expiration.
Valley Voice Page 4 News from the Virginia Association of REALTORS Advocacy Alert: General Assembly Kickoff By Anthony Reedy, Director of Grassroots It s that time of year again! No, I m not talking about struggling to keep those New Year resolutions. Wednesday, January 13 th, kicks off the Virginia General Assembly 2016 Session in Richmond. All 100 Delegates and 40 Senators from around the Commonwealth descend on Richmond for 60 days of deliberation and voting on thousands of bills and budget amendments. Get Active 2016 Wednesday, February 17th: The keystone event, where hundreds of Virginia Realtors take to the state capitol to meet face to face with their region s representatives. REALTORS Day on the Hill 2016 Lunch will feature special guest Charlie Cook, Editor and Publisher of The Cook Political Report and a Political Analyst for the National Journal. He writes weekly for National Journal Magazine and National Journal Daily and also pens a regular column for The Washington Quarterly. Once deemed the Picasso of election analysis by The Wall Street Journal, Cook produces the sharpest political handicapping in the business, serving as the one-man, go-to-source for Americans who want to be truly informed. Using poll numbers, economic indicators, and historical data, Cook will discuss today s political and legislative environments in a balanced, non -partisan way from the policy direction of the current administration to the Congressional agenda. Register today to hear Charlie Cook speak at the REALTORS Day on the Hill Lunch. (You must be registered for Get Active 2016 to purchase ticket for lunch.) While it seems like the action is just starting, the process of developing VAR s legislative agenda began several months ago. Taking input from local associations and individual REALTORS, the volunteer members of the Common Interest Community Subcommittee and the Public Policy Committee (PPC) vetted dozens of ideas and recommended a legislative package for the VAR Board of Directors to formally endorse. The four initiatives included in VAR s 2016 legislative agenda are: - Changes to the Property and Condominium Owner s Association Acts. - Revisions to the Agency/Licensing Law. - Creation of licensure for Home Inspectors. - Allowing interpleaded escrow funds and earnest money deposits to be sent to the Housing Trust Fund. In addition to these four REALTOR requested pieces of legislation, the VAR Public Policy Committee will meet weekly during the session to vet several hundred bills, as well as a few budget items, to determine their potential impact on housing and private property rights. The Public Policy Committee will then take a position of support, oppose or amend on each of these bills. For more information on VAR s agenda and updates on real estate related legislation, visit http:// www.virginiarealtorschoose.com/bills/. Keep an eye on the Commonwealth Daily and VAR s Facebook and Twitter accounts for future Advocacy Alerts on the latest happenings at the Virginia Capitol. Finally, plan to attend VAR s annual Get Active Legislative Advocacy Conference and Day on the Hill February 16-18 and join hundreds of fellow REALTORS from around Virginia to voice your support for policies that promote home ownership and protect private property rights.
Valley Voice Page 5 News from the National Association of REALTORS Keep in Touch for the Long Haul By Lynn Olson Your best chance of ensuring a steady flow of future business is to build a legion of satisfied clients who will drive referrals to you. But beyond the transaction experience, what you do after the deal matters, too. Do you check in with your clients to see how they re doing, or do you disappear? People recommend those they know and trust, and for many, that s a small circle. But earning that trust involves a delicate balance between too much and too little contact, says real estate coach Jared James, CEO of Jared James Enterprises in Milford, Conn. He advises reaching out at least quarterly and making sure to keep it up long-term. It s probably going to be five to seven years before they move again, so you can t stop reaching out after 18 months, James says. Give Undivided Attention The quality of your communications with past clients is a factor in whether you win repeat and referral business. Technology can help you stick to a system, but don t become a robot, sending generic follow-up e-mails that sound like spam. Find ways to personalize your contact so that you remain just as important to clients a year after the sale as you were on the day the sale closed. For quality, nothing beats face-to-face contact. And since busy practitioners don t always have time for one-on-one follow-up, the client appreciation party has become a popular way to connect with many people at once. Ideally, each person you invite gets some quality time, though in a room of 50 people, that may prove difficult. Bridget Martin, broker-associate at Heritage Texas Properties in Houston, organizes small events around clients interests. She might throw a pool party for families with kids or host a happy hour for her single clients. She also holds movie nights and ornament exchanges around the holidays. It s fun, but it s strategic fun, Martin says. Or you can aim for intimate one-on-one interactions. Renee Mascia, a sales associate at RE/MAX Right Choice in Milford, Conn., believes taking clients to dinner offers a better opportunity to get personal. It makes a lasting impression, she says, and it s an appropriate environment to ask questions that inspire deeper conversation than you might have in other venues. Keep Adding Value Whether you re sending a casual note or a newsletter to past clients, always include something that reiterates your value as a real estate professional. David Kent, abr, crs, broker-owner of The Real Buyers Agent HBC in Charleston, S.C., uses his newsletter to demonstrate his community knowledge, focusing on city cultural events and tourist attractions. That helps turn visitors into clients. The newsletter also includes a popular section on local housing statistics, including inventory and days on market. Everybody s always interested in value, Kent says. James suggests keeping an eye on the number of newsletter optouts. If they re increasing, you may need to reexamine the usefulness of the information you re including. Use Technology to Drive Personal Contact Many practitioners set up their past clients on a drip campaign to maintain regular contact automatically, but clients who hear from you only via a marketing e-mail will learn to ignore you. Instead, use a drip campaign to set up future phone calls or visits. For example, send an e-mail letting clients know you are going to contact them on their closing anniversary with an update on their home value then actually follow up by phone. Use technology to remind you to pick up the phone and be personal, James says. Hearing a voice humanizes the person you are talking to more than a text or e-mail can do. Your authenticity is the key to developing loyalty. So remember that, on a call with past clients, their lives are more important than your business concerns. That means letting go of the idea that you have to end every conversation by asking for a referral. It kills any attempt you ve made to be sincere, James says. He suggests being more circumspect in seeking referrals: Tell them, Oh, by the way, we have a new home evaluation tool that gives us the value of someone s home almost instantaneously. If you know of anyone who wants to try it out, let me know. And, of course, consistency matters. Don t fall off the face of the planet and stop calling past clients. I follow up forever, Martin says, until they die or tell me to go away. NAR February Member Offer OFFER VALID FEB 1 FEB 15 2016 YOUR ACTION: Enroll in the FedEx Advantage Program with Special Savings for NAR Members through the REALTOR Benefits Program. YOUR REWARD: Up to 10% off base rates on an Avis Signature Series vehicle. Enroll for exclusive discounts on FedEx shipping and FedEx Office print and copy services that you can use for business and personal use. And FedEx will enter you into a sweepstakes for your chance to win $10,000. Use passcode: LCRS8p01. FedEx is a proud participant in NAR s REALTOR Benefits Program. Value: Up to 10% off base rates on an Avis Signature Series vehicle. DETAILS: FedEx, a REALTOR Benefits Program participant, offers a host of shipping and marketing solutions to help you save money and sell homes faster. Use your discount at your local FedEx Office to print professional listing presentations, reports, yard signs, direct mail postcards and more. And don t forget to use FedEx shipping for contracts and other important documents, as well as your personal shipping needs! Best of all, REALTORS enjoy special savings from FedEx: Save up to 26% on select FedEx Express shipments Save up to 12% on select FedEx Ground shipments Up to 20%off FedEx Office print and copy services Visit http://mvp.realtor.org/ for more information!
Valley Voice Page 6 Looking Back Personal Self-Protection for REALTORS November 18th, 2015 NRVAR Christmas Open House December 17th, 2015 2016 Installation Breakfast December 9th, 2015
Tell Your State Delegate to Protect Consumers by Licensing Home Inspectors The Virginia House of Delegates is currently considering House Bill 741, which creates consumer protection by requiring professional home inspectors to be licensed in Virginia. As a Virginia REALTOR you know the integral role a quality home inspection plays during a transaction. For years, REALTORS have advised their clients to use a certified home inspector during the buying process. Now is your chance to help guarantee that all home inspectors in Virginia will be licensed by the Department of Professional and Occupational Regulation (DPOR) just as you are a licensed real estate professional. House Bill 741 will grandfather those who have already voluntary certified with DPOR to become licensed home inspectors. DPOR will then set forth regulations for home inspectors moving forward. Help protect your clients and take action to help homeownership thrive in Virginia! Email your State Delegate and ask them to SUPPORT 741! Visit http://www.virginiarealtorschoose.com/calls-for-action/ to email your State Delegate today!
2016 RPAC Contributors Together we can reach our RPAC goal! Invest in RPAC today! RPAC Fair Share: Principal Brokers/Appraisers $99.00 Associate Brokers $65.00 REALTOR Members $35.00 Golden R $5000+ Charles Burnette Sterling R $1,000+ Rachel Anker-Johnson Jeanette Boyd Beth Dalton Jeremy Hart Amy Hudson Tina Merritt James Nolen Donna Travis NRVAR Governor s Club $500+ Dennis Bane Susan Erickson Jennifer Sowers Capitol Insider $250+ Louise Baker Tommy Clapp Frank Kregloe John Travis Club/Broker Fair Share $99+ William Angle Donald Barker David Branch Diane Boon Debra Chase Katrina Compton Roger Cupp Phillip Darnall Annette David Lawrence DeHart DeeDee Edwards Mike Eggleston David Epperly Margaret Galecki Ed Gallimore Darin Greear Mary Gwyn William Haithcock Kit Hale Leslie Jester Rob Joes Carol Lavinder Richard Lavinder Phillip Morris Ann Moore Mike Noren Nancy Page Douglas Phillips William Price Bryan Rice Jeanne Stosser Richard Varney Jim Wagoner Jane Walters Bryan Ware Associate Broker Fair Share $65+ Anne-Collins Albimino Sam Albimino Bernadette Alfonso Donita Anderson Steve Ayers Dawn Bell Chloe Bishop Reggie Britts Charlotte Chan Judy Chang Walters Christine Chittenden Karen Cox Dorothy DeHart Gary Douglas Wayne Elliot Judy Fithian Kaelyn Globig Joyce Graham Sandy Grant Rebecca Harris Maggie Hicks Matt Hicks Anne Hite Rachel Hogan William Isenhour MJ Jarrett John Johnson Brian Juanarena Jean Keith Carol Lidgard Susanna Lilly Nancy Massey Rhonda Melton Priscilla Morris Patty Mostaghimi Jeffery Price Benita Rice John Skelton Tara Skewes Tim Smoot Desi Sowers Terrance Vangelos Tina Whetzel Doug Wright Sheila Zellers Agent Fair Share $35+ Harvey Alderman Terry Alley Samuel Burnette Scott Bunn James Chitwood M Clifford Dowdy Kerry Gillispie Rolfe Grubb Rebecca Hale Roxanne Hale Cline Hall Mary John Hall Nicole Harless Benjamin Harris Susan Harrison Connie Hedrick Chris Johnson David Lane Angela Lieb Bill Linkenhoker Mary Lynch Terry McCraw Elaine McKaughan Rita McKinster Kimberly Merrell Joan Mitchell Katie Mitchell Mihwan Park David Phillips Vickie Phillips Mary Piemonte Debra Radcliffe Megan Roschelli Henry Schneider George Smith Tim Telling Deborah Toney Doug Wohlstein Thomas Woods Brenda Woody Chris Wright Yan Yang Participation Up to $35 Chandra Fultz Mike Johnston Affiliate Member Participation Lynn Gregory $35 Susan Stroup $100 Since 1969, the REALTORS Political Action Committee (RPAC) has promoted the election of pro- REALTOR candidates across the United States. The purpose of RPAC is clear: REALTORS raise and spend money to elect candidates who understand and support their interests. The money to accomplish this comes from voluntary contributions made by REALTORS. These are not members dues; this is money given freely by REALTORS in recognition of how important campaign fundraising is to the political process. RPAC doesn t buy votes. RPAC enables REALTORS to support candidates that support the issues that are important to their profession and livelihood.
Platinum Members $2,000 ALCOVA Mortgage First Bank & Trust Company First Community Bank Freedom First Credit Union Member One Federal Credit Union 2016 Affiliate Members Patrick K. Moore, P.C. Prime Lending Shelor Motor Mile Wells Fargo Home Mortgage Gold Members $1,000 Atlantic Bay Mortgage Group Farm Credit of the Virginias Mid-States Title of SWVA Silver Members $500 ATS International, Inc. Bank of Floyd BB&T Mortgage, Inc. Holiday Inn Christiansburg Home Place Magazine Hometown Mortgage Law Office of Diane L. Bibb Southwest Virginia Moving & Storage Spicer Law Firm, P.C. The Shaheen Firm, P.C. Pillar to Post Prosperity Home Mortgage, LLC Quality Pro Home Inspections The Home Depot The Roanoke Times Union Mortgage Group Virginia Title Center, LLC Bronze Members $250 Advanta Clean of Southwest Virginia Advantage Title Insurance Agency, Inc. ALL Pest Control All Seasons Pest Control, Inc. Appalachian Inspections, Inc. Brandon Semones State Farm Brown Insurance Bug Man Exterminating, Inc. Clinton s Transfer & Storage CMG Leasing Community Housing Partners Dunmar Moving/Allied Van Lines Embrace Home Loans, Inc. Energy Check Eric Johnsen State Farm Events by Sherri Foxridge/Hethwood Apartments Gay & Neel, Incorporated Gentoo Technologies Henderson Roofing Inspections, Inc. Legacy Builders NRV, Inc. National Bank National Property Inspections Project Move Up Radford Radon Abatement Radon Safe Rockingham Insurance SAS Builders, Inc. Shelter Alternatives Signature Property Management Squeaky s Laser Wash Stage 2 Smile, LLC Stateson Homes Superior Exterminating Co., Inc. SunTrust The Real Estate Book of Blacksburg & The New River Valley True North Title VHDA Virginia Tech Program in Real Estate Virginia Varsity Self Storage Whitescarver Photography, LLC For a comprehensive contact list, including address, phone numbers, and emails, please contact the Association Office. Don t forget to like us on Facebook and follow us on Twitter! www.facebook.com/nrvrealtors @nrvrealtors