EL PASO REALTOR THE VOICE FOR REAL ESTATE IN EL PASO Participate. Be Active. Get Invovled! elpasorealtor.com February 2011 September 2010 El Paso Realtor Magazine elpasorealtor.com 1
HOME OWNERSHIP MATTERS TO PEOPLE TO COMMUNITIES TO AMERICA. Studies show that home ownership has a significant positive impact on net worth, educational achievement, civic participation, health and overall quality of life. That s why, for more than 100 years, REALTORS have helped people find their piece of the American Dream. Now, with some questioning whether home ownership is still good for America, it s more important than ever to stand up for home ownership... in your community and in the nation s capital. Find out more about why Home Ownership Matters, how the NATIONAL ASSOCIATION OF REALTORS is standing up for it, and how you can help spread the word, at REALTOR.org/homeownership. 2010, National Association of REALTORS
President s Article Linda Bastraw Beginning the New Year! 2011 has already proven to be a busy year for all of us. As the 82nd Texas Legislature will convene January 11, 2011 several issues have risen that will affect the REALTOR community. This includes Appraisal Issues/ Broker Price Options, Eminent Domain, Mandatory Sales Price Disclosure, Mortgage Finance: home equity/ seller financing, Private Transfer Fees, Sales Tax on Professional Services, and Sales Tax on Real Estate to name a few. There are several ways to get involved and stay informed on these issues. You can sign up for weekly updates from the Legislative Liaison @ www. texasrealtors.com. Invest in TREPAC to protect your business at the Capitol. Respond to Calls For Action. Brokers you can help increase the response rate of your own agents to Calls for Action by enrolling in the Broker Involvement Program. Last, join us in Austin on April 12, 2011 to meet face to face with our local legislators to promote the Texas REALTOR agenda at the 2011 Hill Visits. Now as the New Year arises I would ask that you get more involved in your business and our local association by choosing a committee of your interest. Which include Budget & Finance Committee, Education Committee, Equal Opportunity Committee, Governmental Affairs Committee, REAL- TOR / Builder Committee, TREPAC, Young Professionals Network, and Professional Standards Committee. As well as attending our Ambassador Series to learn more about what s going on in our community. Voice your opinions and share your thoughts to continue to make our Association a leader in our community. Education is the key to your success in this business. GREATER EL PASO ASSOCTION OF REALTORS PRESIDENT In my opinion, we have the Best of the Best chairs for 2011. Each of them have already hit the ground running. The REALTOR / Builder Committee has started a new program this year that will bring an El Paso Builder to its monthly meeting to present their homes to our members. We are also starting up the National Association of REALTORS Young Professionals Network (YPN) meant for young REAL- TORS and Affiliates of our association. The goal is to cultivate the next generation of leaders, represent all members, and tap new ideas and fresh perspectives This is a new beginning for us all for this upcoming year and I know many have had frustration with our billing system. Please understand the policy was passed by both Board of Directors after much discussion. This is your business and in your business you have fees and deadlines to meet, please try to familiarize yourselves with the billing system. Last but not least, I have asked Dan Olivas to once again bring back our Ambassador Series. We have already met and discussed several excellent new speakers. I wish each of you a happy and successful new year. - Linda Bastraw February 2011 El Paso Realtor Magazine elpasorealtor.com 1
IMPORTANT REMINDERS GEPAR QUARTERLY BILLING SCHEDULE 2nd QUARTER BILLING 2011 02/15/2011 Invoices Posted - Email to agents invoices ready to view and pay online 02/28/2011 2nd quarter payments due 04/04/2011 Suspension and $50.00 Reconnect Fee 05/02/2011 Suspension of office if members are past due w/active license 06/01/2011 Termination of office if members are pastdue w/active license 3rd QUARTER BILLING 2011 05/13/2011 Invoices Posted - Email to agents invoices ready to view and pay online 05/31/2011 3rd quarter payments due 07/05/2011 Suspension and $50.00 Reconnect Fee STAY INFORMED & CONNECT ONLINE! FOLLOW US AT /// ELPASOREALTOR.COM El Paso REALTOR Online Look for the El Paso REALTOR to appear only online starting January of 2011. After over 90 years of keeping our members informed with a hard copy, we will now progress to online distribution. The cost of a hard copy continues to increase and the survey taken of the members indicates the majority prefers to receive news and updates online. Please watch for online notification of the EL PASO REALTOR each month and for a new weekly update bulletin. ASSOCIATION OFFICERS - Linda Bastraw [ President ] - Jennifer Stroh [ President- Elect] - Kenny Gross [Secretary/ Treasurer ] - Doug Hamilton [ Immediate Past President ] - Sharron Ramirez [ CEO ] ASSOCIATION DIRECTORS - Caroline Camfield - Susan Craig - Mackie Sue Gilchrist - Andrew Haggerty - Douglas Van Nortwick ASSOCIATION DIRECTORS 2011-2012 - Timothy Cantrell - Socorro Cochran - Jim Howard - Mickey Molina - Patti Olivas MLS BOARD OF DIRECTORS - Rick Snow [ President ] - Angela Ochoa [ Vice President ] - Jesus Barrazas [ Secretary/ Treasurer ] NAR DIRECTOR - Michael Bray TAR DIRECTORS - Linda Bastraw - Doug Hamilton TAR NOMINATING COMMITTEE - Elizabeth Leal TAR REGIONAL VICE PRESIDENT - R. Scott Kesner TAR TREPAC TRUSTEE - Karen Porter POLITICAL INVOLVEMENT COMMITTEE - Jennifer Stroh 6400 GATEWAY EAST BLVD EL PASO, TX, 79905 (915) 779-3521 COMMITTEE CHAIRMAN - Jennifer Stroh [ Budget & Finance ] - Steve Carvalho [ Education ] - Alma Miller [ Fair Housing/ Equal Opportunity ] - Al Jurado [ Governmental Affairs ] - Socorro Cochran [ TREPAC ] - Angela Ochoa [ REALTOR / Builder ] For further questions contact Armando Rodriguez: 915.783.6070 or arodriguez@gepar.org 2 elpasorealtor.com El Paso Realtor Magazine February 2011
EXPERT ADVISORS Real Estate Ethics As we embark on a New Year, let us all make the commitment to ourselves and our clients to strive for the utmost professionalism in our real estate careers. As I have repeatedly written in the past, do we want to be known simply as salespersons or professionals who display a high degree of expertise and ethics? When acting as a buyer s agent, know your duties to your client and be very proactive in your obligations. It is our duty to inform our clients what we perceive to be the market value of the home they are interested in, and to share negotiating strategies that hopefully result in a favorable transaction. We need to know the dynamics of what is happening in our market, i.e., is it a buyer s market, a seller s market, the status of the local and national economies and their impact on the market. Likewise, in the role of the seller s agent, we need to present a true and accurate picture of the market, and this can be a very difficult undertaking when someone is going to lose money on their home. Those purchasers who bought during the peak years of 2005-2007 are, in all likelihood, going to be in such a position. I recently met with a seller who had paid over $300,000 when they purchased in 2006 and paid over $120.00 per square foot. The comparables in the last 6 months of 2010 did not produce a sale anywhere close to that figure and I pointed out that an appraiser was going to use these very same comparables. In summary, these sellers were able to understand the correlation between pricing your home correctly and having the chance of selling it as compared to pricing it too high with the knowledge that it probably wasn t ever going to sell. How many times have we heard the reply, I can t sell it for that! I paid more for it, or even worse, I can t sell it for that! I owe more than that. These are difficult situations, but the reality is the decline in prices is much less in El Paso than in almost any other part of the country. Having an overpriced listing on the market reflects unfavorably on our listing inventory, not to mention the time and expense invested into an endeavor that probably is not going to produce any results. Although the final numbers have not been published for December 2010, it appears, as an Association, we had fewer sales in 2010 than any year within the last ten years. This is an important statistic to mention to any home seller in today s market. Another plea for the necessity of professionalism. When showing a home to a client, be fully prepared by having your buyer clients already qualified and try to preview as many properties as possible before showing. Sometimes, inaccurate information is listed in the MLS and when you have clients with very specific criteria, it is highly advisable to preview the home first. It cannot always be done but it has a more positive effect when you are showing the home. I have experienced several instances lately of the call from the agent who is parked at the curb in front of a listing asking me if it is vacant on lockbox. When I tell them to follow the instructions in the MLS and call and schedule the appointment with the owner, I am met with resistance and a plea to let them see the home right now because my client is going to buy something today or my client is leaving town today. I have never had a listing sell when an agent called from in front of the home wanting to go and see it right then and there. What is worse is when the agent goes up to the door, without scheduling an appointment, and asks to show the home. This has never made a seller think highly of our profession either. Nothing will elevate the status of our profession more or validate the worth of our profession than when we all work together towards this standard. I welcome your comments and questions to steve@stevecarvalho.com STEVE CARVALHO, CRS GEPAR NEW MEMBER ETHICS INSTRUCTOR February 2011 El Paso Realtor Magazine elpasorealtor.com 3
Main Article 8committees to become active in! Budget & Finance Committee Kenny Gross, Chairman Monthly Meeting: Held third Wednesday of every Month @ 1:30 pm And get involved! REALTOR /Builder Committee Angela Ochoa, Chairman Monthly Metting: Meetings are Scheduled as necessary. Contact: Hilda Beck @ 915.783.6072 Contact: Hilda Beck @ 915.783.6072 Equal Opportunity Committee Alma Miller, Chairman Monthly Meeting: Meetings are scheduled as necessary. Contact: Hilda Beck @ 915.783.6072 TREPAC Socorro Cochran, Chairman Monthly Meeting: First Thursday of every Month @ 2:30 pm. Contact: Hilda Beck @ 915.783.6072 Governmental Affairs Committee Al Jurado, Chairman Monthly Meeting: First Thursday of every Month @ 1:30 pm. Contact: Armando Rodriguez @ 915.783.6070 Young Professionals Network Angela Ochoa, Chairman Monthly Meeting: First Wednesday of every Month @ 1:00 pm. Contact: Armando Rodriguez @ 915.783.6070 Education Committee Steve Carvalho, Chairman Monthly Meeting: First Tuesday of every Month @ 1:30 pm. Contact: Hilda Beck @ 915.783.6072 Professional Standards Requires yearly training. Contact: Isela Martinez @ 915.783.6073 4 elpasorealtor.com El Paso Realtor Magazine February 2011
Budget & Finance Committee This Committee is responsible for creating the Association s annual budget based upon the Strategic Plan, which is submitted to the Board of Directors for final approval. It reviews membership changes, monitors and maintains adequate Association investments, researches new sources of income and reviews the performance of the budget throughout the year, making adjustments if necessary. Equal Opportunity Committee This committee is responsible for creating education awareness programs, communication of changes in the Fair Housing laws and assistance in the implementation of Fair Housing procedures. Participate in Education Day with the Education Committee in the Spring. Make sure there is the latest information available to our members on Fair Housing and Equal Opportunity at all times. This committee will only meet the first four months of the year unless there is a change in the laws that will affect the Fair Housing and/or Equal Opportunity. Governmental Affairs Committee Identifying, analyzing, communicating and acting on local, state and national issues that affect the real estate industry and private property owners are some of the tasks that this Committee accepts as a challenge. In addition, Committee members get involved in the interviewing and recommending endorsements of political candidates at all levels of government and including the three largest school boards. Political involvement is prompted through calls for action alerts, support of political campaigns, political forums and grassroots lobbying. Education Committee The Education Committee is entrusted with determining what educational courses will be brought to the members of GEPAR for the year. Typical courses, such as the ABR, GRI, and CRS allow members to earn coveted NAR designations but other courses of interest are also presented. In the past, courses on negotiations, Feng Shui, staging have been brought in. The Committee also oversees two of the biggest events hosted by our Association, Education Day and the REALTOR Rally. Both of these events feature National, State and Local speakers addressing the issues that impact our industry. Membership in any GEPAR committee is welcomed and appreciated. REALTOR /Builder Committee This committee is responsible for creating marketing programs, goods and services that will advance the relationship between the real estate industry and the building industry. This will require getting volunteers to help with the two Home Shows, Parade of Homes and Festival of Homes. The Chairman will be asked to attend the monthly meeting of the Builders Association and be able to readily talk about events and news from the Association of REALTORS. The REALTOR / Builder Committee has started a new program this year that will bring an El Paso Builder to its monthly meeting to present their homes to our members. Interaction with the Builders Association will be paramount on the agenda for this committee. TREPAC The political action committee is insurance to protect your livelihood and industry. During the next year, many issues affecting real estate will be debated on the national and state levels. Getting involved in TREPAC will ensure that the REALTOR voice is heard in Congress and at the Capitol. Professional Standards This Committee is charged with the responsibility of enforcing the REALTORS Code of Ethics. The Committee will also communicate and educate the membership to the rules and regulations of the Code of Ethics and Arbitration Manual of NAR and all aspects of the NAR Code of Ethics. There will be training each year for applicants for the next year. Young Professionals Committee Young Professionals Network (YPN) is a member-driven organization the helps young real estate professionals excel in their careers by giving them the tools and encouragement to become involved in four core areas: REALTOR associations. Attend REALTOR conferences and pursue leadership roles with their local, state, and national associations. Real estate industry. Take an active role in policy discussions and advocacy issues; be informed about the latest industry news and trends. Peers. Network and learn from one another by attending events, participating in online communication, and seeking out mentoring opportunities. Community. Become exceptional members of their community by setting a high level of REALTOR professionalism and volunteering for causes they feel passionate about. The goal is to cultivate the next generation of leaders, represent all members, and tap new ideas and fresh perspectives. February 2011 El Paso Realtor Magazine elpasorealtor.com 5
Just a reminder... Starting March 1, 2011 enforcement of the new Vacant Building Ordinance which was approved by El Paso City Council on August 2010 will be in full effect. Under this ordinance, all owners of a residential building that have been vacant for more than two years will have to register their property on an annual basis with the City. Same goes for commercial buildings that have been vacant for three or more years. The definition of vacant in compliance to the ordinance is if the building is 60% vacant and for residential if one resident is in a residential home then the home is not vacant. This Ordinance currently applies to certain areas of El Paso. These areas include the redevelopment area of Downtown, Segundo Barrio, Chamizal and the Lower Dyer street area. Any vacant building designated for non-residential use must be insured; owners must maintain fire suppression systems and replace broken windows along street frontage. Currently there will be no fee to register a vacant building however once an owner registers the building, inspectors from the Development Services as well as the Fire Department will inspect the structure. When the vacant building is registered, owners must provide a plan of use for the building and make sure the goals are met as stated. This policy will not affect owners of buildings that comply with current standards set forth for any building within the City. Property owners that do not comply with the new ordinance could be fined up to $2,000 Resale home sales by month for 2010 2006 2007 2008 2009 2010 Total Sales: Resells: Total Sales: Resells: Total Sales: Resells: Total Sales: Resells: Total Sales: Resells: 7,584 5,446 6,432 4,598 5,297 3,401 5,673 3,586 5,785 3,597 Median: $126,900 Median: $125,000 Median: $131,950 Median: $129,250 Median: $134,222 Median: $130,000 Median: $129,950 Median: $125,286 Median: $132,000 Median: $126,000 6 elpasorealtor.com El Paso Realtor Magazine February 2011
A Look Ahead to the 82nd Legislative Session How will you be involved...? On January 11, 2011 when the gavel strikes the block in the Senate and the House, the 82nd session of the Texas Legislature will officially be underway. For the next 140 days, lawmakers will embark on one of the most difficult sessions in Texas history. The legislature is faced with three major tasks which include balancing an estimated budget shortfall of up to $28 billion, redistricting, and the sunset review of 29 state agencies, the most ever done during a session. With these daunting tasks ahead of them, there will be no sacred cows when it comes to revenue generators and harmful legislation could easily slip through the cracks if Texas REALTORS aren t diligent in their efforts to be involved during the session. Just because you do not take an interest in politics doesn t mean politics won t take an interest in you. Pericles 430 B.C. In order to ensure that the real estate industry doesn t become a target for sales tax on services, on the transfer of real estate or any other avenue that might be proposed our strategy has to cover many fronts. There are numerous ways to get involved. First, get to know your state representative or senator or do you already know them? If so, you should join their Legislative Contact Team. We are well represented at the Capitol through our lobbying team but no one can amplify our message to legislators more than their own constituents. Our Legislative Contact Teams serve as a great way to directly communicate our REALTOR issues to legislators through a personal relationship. The Legislative Contact Team program sets us apart from other organizations and has proven to be very effective. Next, you must stay informed on what is going on during session as far as TAR s priorities and any hot issues being debated. The best way to do this is to sign up to receive the Legislative Liaison. This weekly email will give you a quick briefing on where everything stands and how it will affect your business. Calls for Action are another critical part of our grassroots efforts. Just remember Click, Click, Submit This is all you have to do to respond. The most important thing to remember about the Calls for Action from TAR is unlike NAR s Calls for Action, we may only have a few hours to send a message to our legislators. So an immediate response is imperative. Our average response rate is between 8-10% so to help increase that rate, we encourage all brokers and office managers to enroll in the Broker Involvement Program. When a CFA is sent out, it is sent under the broker s name, which means that broker s agents are more likely to open it. Finally, mark your calendar and make plans to attend the Texas REALTOR Hill Visits at the Capitol on April 12th. This is your chance to meet face-to-face with your elected official. We had a record number of REALTORS participate last session and we have to increase participation this year. It is hard for legislators to ignore a large group of voting constituents in their office and we have seen legislation pass in as little as 24 hours after the Hill Visits. If you have any questions or would like to sign up for a Legislative Contact Team, Legislative Liaison or enroll in the Broker Involvement Program please contact your Texas Association of REALTORS field representative. Kelli Stumbo is the West Texas Field Representative for the Texas Association of REALTORS. She can be reached at kstumbo@texasrealtors.com or (512) 971-8340. February 2011 El Paso Realtor Magazine elpasorealtor.com 7
+ BY THE NUMBERS OCTOBER 2010 COMPARISON SOLD TOTALS FOR THE GREATER EL PASO ASSOCIATION OF REALTORS 800 700 600 500 400 300 200 100 0 2007 2008 2009 2010 JAN JAN MAR APR MAY JUNE JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUNE JUL AUG SEP OCT NOV DEC 527 533 632 685 660 616 598 561 415 449 380 388 324 330 476 490 473 520 523 469 506 442 375 403 317 350 470 413 459 506 511 503 520 555 578 453 270 387 518 525 592 736 423 458 473 416 403 2008 2007 2008 2009 2010 TOTAL 6444 5331 5635 3909 NOVEMBER HOME SOLD REPORT: COMPILED January 10, 2011 RESIDENTIAL NEW LISTINGS SOLD LISTINGS SOLD VOLUME AVE. SALE $ HIGH SALE $ DOM CHANGE FROM CHANGE FROM YTD YTD YTD NOV-10 10/10 NOV-09 11/09-11/10 2010 2009 10-09 676-23.27% 681-0.73% 10,492 10,534-0.40% 403-3.58% 591-31.64% 5,232 5,212 2.13% $59,070,029-5.73% $86,766,364-31.92% $804,218,673 $786,727,752 2.19% $146,213-2.46% $146,813-0.41% $151,112 $150,993-0.08% $567,000 24.62% $550,000 3.09% $1,100,000 $1,250,000-12.00% 112 14.02% 93 20.41% 100 108-7.30% BREAKDOWN OF LISTINGS NEW HOMES RESALE HOMES ATTACHED PROPERTY MAN. & LOT RESALE PENDING ACTIVE 140 AVG LIST $ $156,873 AVE/MED SELL $ 156,008/141,950 LIST/SELL RATIO 100% DOM 162 251 Ave List $ $148,740 Ave/Med sell $ 142,797/129,500 List/Sell Ration 96% DOM 84 12 Ave Sell $ 113,942 DOM 126 28 182 Ave List $ $156,071 DOM 81 3,622 FORECLOSURES FOR EL PASO COUNTY FOR OCTOBER - RealtyTrac HOUSEHOLD 1 PER HOUSEHOLD % OF HOUSEHOLD NOD NTS REO TOTAL EL PASO 257,073 3,428 0.029 0 27 48 75 TEXAS 9,598,579 738 0.0136 5 6,835 6,168 13,008 8 elpasorealtor.com El Paso Realtor Magazine February 2011
Mark Your Calendar February 1 12:00 pm - CIBA Monthly Meeting 1:30 pm - Education Committee Meeting 2 8:00 am - Orientation 3 8:30 am - RCA Weekly Meeting 1:30 pm - Gov. Affairs Committee Mtg 2:30 pm - TREPAC Committee Mtg 6:30 pm - TREPAC Valentine Hottie Contest 7 12:30 pm - Toastmasters 8 12:30 pm - Dale Carnegie 9 9:00 am - Success Realty Meeting 10 8:30 am - RCA Weekly Meeting 12:00 pm - Realtor / Bldr University 11 12:00 pm - TAR Winter Meeting 12 12:00 pm -TAR Winter Meeting 13 12:00 pm - TAR Winter Meeting 14 12:00 pm - Tar Winter Meeting 15 12:00 pm - Tar Winter Meeting 8:00 am - MCE 16 8:00 am - MCE 1:30 am - Budget and Finance Committee 2:00 pm - Executive Committee 17 8:30 am - RCA Weekly Meeting 18 11:30 pm -Stories of Success Dr. Robert Nachtman (Dean College of Business, UTEP) 21 Office Closed 23 8:30 am - MLS Board of Directors 24 8:30 am - RCA Weekly Meeting 25 8:30 am - Board of Directors 28 8:30 am - GRI 2 GEPAR UPCOMING EVENTS February 2011 El Paso Realtor Magazine elpasorealtor.com 9
6400 GATEWAY EAST BLVD EL PASO, TX, 79905 (915) 779-3521 El Paso REALTOR available online only. elpasorealtor.com 10 elpasorealtor.com El Paso Realtor Magazine September 2010