august 2011 gepar magazine

1 • elpasorealtor.com El Paso Realtor Magazine | AUGUST 2011 AUGUST 2011 | El Paso Realtor Magazine elpasorealtor.com • 1

2 • elpasorealtor.com El Paso Realtor Magazine | AUGUST 2011 1 • elpasorealtor.com El Paso Realtor Magazine | AUGUST 2011

MILITARY HEROo f T H E Y E A R

G R E A T E R E L P A S O A S S O C I A T I O N O F R E A L T O R S ®

NOMINATION FORM

Name and Rank of Nominee:

Branch of Service:

Years of Service:

Wars and/or conflicts served in:

Awards and/or medals received:

In as many words as necessary, please relate why nominee should be awarded Military Hero of the Year by GEPAR:

Attach additional pages as necessary.

Please return nomination form by August 31st to Hilda at the Association or email to her at [email protected]

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2 • elpasorealtor.com El Paso Realtor Magazine | AUGUST 2011 1 • elpasorealtor.com El Paso Realtor Magazine | AUGUST 2011 AUGUST 2011 | El Paso Realtor Magazine elpasorealtor.com • 1

When was the last time you took time out for yourself? If you are like most of us, you would reply probably

not often enough. As REALTORS®, our lives get so busy with our daily duties we forget to be thankful for what we have. As many real estate markets throughout the country continue their decline, we are fortunate that our market is better than most. The number of sales through our Association during the first six months of 2011 show a decline of 23% from 2010, but we also have to realize the first six months of 2010 was the period of the Homebuyer’s Tax Credit which stimulated sales that would not have occurred otherwise. Our Association makes these statistics available to our members so take advantage of this information. Certainly one of the most frequent questions we, as REALTORS®, are asked is “How is the market doing?” and by being aware of the current market conditions, we are able to provide factual, relevant information to the public. Some of our continued success is due to our Military families moving into El Paso.

I would like to ask our members to please submit a nomina-tion for our first Military Hero Award which will be given out at the REALTOR® Convention in October. The nomination form is available to be downloaded or call our Association and request one to be sent to you.

We all know many in our community who have valiantly served our Country and so take the time to submit the name of someone you know for this honor. Deadline for submission is August 28th.

We recently sent out a news blast asking for donations to the West Texas Food Bank, whom in these challenging economic times, desperately need our help. Several offices in our Associa-tion have collection boxes available, and we have one in our lobby. Checks are gratefully accepted as well. Our donations reflect favorably on our Association and show our willingness to be of service to our community.

- Linda Bastraw

Monthly Update

+ PRESIDENTS REMARKS L I N D A B A S T R A W

G R E AT E R E L PA S O

A S S O C I AT I O N O F R E A LT O R S

P R E S I D E N T


IMPORTANT REMINDERS

ASSOCIATION OFFICERS- Linda Bastraw [ President ]- Jennifer Stroh [ President- Elect]- Kenny Gross [Secretary/ Treasurer ]- Doug Hamilton [ Immediate Past President ]- Sharron K. Ramirez [ Chief Executive Officer] 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 ]- Angel Ochoa [ Vice President ]- Jesus Barraza [ Secretary/ Treasurer ]- David Curiel - Art Moreno- Jim Howard- Robert Lozano- Frances Moran- William R. Stanton

TAR Nominating Committee - Sonja Van Nortwick

NAR DIRECTOR- Michael Bray

TAR DIRECTORS- Linda Bastraw- Doug Hamilton

TAR REGIONAL VICE PRESIDENT- R. Scott Kesner

TAR TREPAC TRUSTEE- Elizabeth Leal

POLITICAL INVOLVEMENT COMMITTEE- Al Jurado

COMMITTEE CHAIRMAN- Kenny Gross [ Budget & Finance ]- Steve Carvalho [ Education ]- Alma Miller [ Fair Housing/ Equal Opportunity ]- Al Jurado [ Governmental Affairs ]- Socorro Cochran [ TREPAC ]- Angela Ochoa [ REALTOR / Builder ]

6400 GATEWAY EAST BLVDEL PASO, TX, 79905

(915) 779-3521

GEPAR QUARTERLY BILLING SCHEDULE

3RD QUARTER BILLING

08/01/2011 •Suspensionofofficeifmembersarepastduew/active license.09/01/2011 •Terminationofofficeifmembersarepastduew/active license.

4TH QUARTER BILLING8/15/2011 •Invoicesposted–emailtoagentsinvoicesreadyto view & pay online8/31/2011 •4thquarterpaymentsdue

10/03/2011 - Suspension and $50.00 reconnect fee11/01/2011 - Suspension of office if members are pastdue w/active license.12/01/2011 - Termination of office if members are pastdue w/active license.

2012 YEARLY DUES WILL BE BILLED THE 1ST WEEK OF NOVEMBER, 2011 AND ARE DUE DECEMBER 31, 2011

E L PA S O R E A LT O R . C O M

Calling on our REALTOR® community to support those in need. Can foods and monetary donations are being accepted. Please make checks payable to: West Texas Food Bank

Please drop off donation at the Greater El Paso Associations of REALTORS® Office or give to a participating brokers office.

REALTOR®FOOD DRIVE COLLECTING NOW THROUGH AUGUST 19TH


> EXPERT ADVISORS

Ethics Article...S

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ARTICLE 16 REALTORS® shall not engage in any practice or take any

action inconsistent with exclusive representation or exclusive

brokerage relationship agreement that other REALTORS®

have with clients.

I believe, more than any other contained in the Code of Eth-

ics, this article causes more problems between REALTORS®

than any other yet its intent seems to be readily understand-

able. Here is a situation which just occurred; Sellers of a

property contacted another agent to list their property for

sale after an unsuccessful on again, off again eighteen month

listing agreement with another company. The new listing

agent made a necessary price reduction, based on comparable

sales in the neighborhood, and had the home under contract

within a short period of time. The selling agent was associated

with the firm that previously had the home listed for sale. In

a conversation with the seller, the current listing agent was

told that the previous listing agent had sent the seller an email

telling them that the purchaser had supposedly looked at the

home when they (the original listing agent) had it for sale.

That agent also gave the seller some specific information on

the buyer who had submitted the offer, based on a conversa-

tion being that the former listing agent and the selling agent

are in the same office.

The former listing agent has committed more than one viola-

tion of this article. First and foremost, the original listing

agent no longer was associated with the seller and had no busi-

ness contacting the former client. This is clearly a violation

of Article 16. Also, you have to wonder how much the buyer

would appreciate the former listing agent providing the seller

with information about them when the agent is not even a

party to the contract.

StandardofPractice16-6When REALTORS® are contacted by the client of another

REALTOR® regarding the creation of an exclusive relationship

to provide the same type of service, and REALTORS® have

not directly or indirectly initiated such discussions, they may

discuss the terms upon which they might enter into a future

agreement. There tends to be confusion regarding this issue

as well, but the intent of this is to state that even in situations

where a buyer’s representation agreement or listing agreement

is in existence, it is not a violation of the Code for an agent to

discuss the terms of future business as long as the agent did

not directly or indirectly solicit the client for business. The

agent contacted is even able to prepare a new agreement and

have it signed as long as it is dated the day after the expiration

of the previous contract. In particular, this most frequently

happens when a listing has remained on the market, hasn’t

sold, and the seller feels that switching agents may be the solu-

tion to getting their home sold.

As agents, we cannot deliberately mislead a seller as to the

value of their home (Standard of Practice 1-3). I believe a

challenge we agents face is informing a seller that the value of

their property is not as high as they thought and what is really

problematic, is the seller who owes more than they can sell

their home for; this is the seller with very limited options but

we must be honest and competent when preparing our market

analysis.

Along this line, please take note that the Education Commit-

tee will be bring Candace Cooke back in September for her

appraisal course. I talked yesterday with a well respected real

estate appraiser and I believe the trend we need to adjust to is

to rethink the price per square foot issue when pricing a home,

and instead, price according to the guidelines that appraisers

use. Candace Cooke likewise advocates this approach.

MARK THE DATEOctober 7th. GEPAR’s REALTOR® Convention. The Educa-

tion Committee has worked very hard and promises to make

this year’s event informative, exciting and fun. Stay tuned for

details.

I welcome your comments and questions to

[email protected] E PA R

N E W M E M B E RE T H I C S

I N S T R U C T O R

4• elpasorealtor.com El Paso Realtor Magazine | AUGUST 2011 5 • elpasorealtor.com El Paso Realtor Magazine | AUGUST 2011 4• elpasorealtor.com El Paso Realtor Magazine | MAY 2011 4• elpasorealtor.com El Paso Realtor Magazine | JULY 2011

SellersCanFillaVoidWhentraditionallendingavenuesfail,sellerfinancingcanhelpsealthedeal.

Butwatchoutforpitfalls.

ByRichardCrouch

4• elpasorealtor.com El Paso Realtor Magazine | AUGUST 2011 5 • elpasorealtor.com El Paso Realtor Magazine | AUGUST 2011 AUGUST 2011 | El Paso Realtor Magazine elpasorealtor.com • 5 4• elpasorealtor.com El Paso Realtor Magazine | MAY 2011 4• elpasorealtor.com El Paso Realtor Magazine | JULY 2011

If you’re working with sellers who have seen offers collapse because buyers can’t get a mortgage loan, you might want to

suggest they consider offering some variation of seller financing. If structured carefully, seller financing not only makes deals possible but also can typically help transactions close quickly, as less due diligence is required. After all, who knows the property better than the sellers?

There are other perks, too: Sellers can often negotiate an interest rate that’s more favorable than would be available for other sorts of investments. And they might also get a higher selling price as compensation for assisting the buyers. Finally, there can be some tax benefits; if the seller structures the loan as an installment sale, for example, there can be tax advantages based on how recognition of the capital gain is timed.

But against these benefits is the big downside of seller financing: the potential for buyer default. This risk is compounded if the deal is structured as a wrap-around deed of trust, as many are. With a wrap-around deed of trust, the seller issues a promissory note and deed of trust for the dollar gap between the amount of the first mortgage and the buyer’s down payment. When structured this way, the seller’s performance on the underlying first mortgage is linked to the buyer’s performance. If the buyer defaults, the seller will likely default, too.

•Requestacreditreportandcreditreferences. Sellers can get a credit report from any credit reporting agency, but they’ll want to get a signed consent letter from the buyer first. For credit references, one place to go is the buyer’slandlord, if they’re renting. Sellers should also ask for in¬dependently audited financial statements.

•Considerloanassumption. In many cases, the seller’s existing mortgage loan has a due-on-sale clause that requires the principal to

be paid upon sale of the property. Having to settle their own financ-ing makes it hard for many sellers to offer financing, especially if they’re buying a house themselves and need their sale proceeds to make their own down payment. In these cases, it might be better to simply have the buyer assume the seller’s existing loan. The buyer still must submit to the lender’s underwriting analysis and get the lender to approve a modification, but the process should be less time-consuming than if they were applying for new financing.

•Provideexpandedremedies.For many sellers, the only remedy for buyer default included in their loan documents is foreclosure. But it’s best to include lower-level remedies so foreclosure doesn’t have to be the only option. Suggest that sellers set rules for im-posing late charges or default interest. Or suggest that sellers hire a property manager to keep track of incoming payments and to spearhead collection efforts, because these activities can be time-consuming.

•Understandtheriskstobuyers,too. Although it might seem like most risks are on the sellers’ side since they’re putting their resources on the line, there are risks to buyers as well—and if you’re working with buyers, you’ll want to be aware of them. First, buy-ers could pay the loan in full but still not receive title if there are encumbrances that were never divulged by the seller. Second, if the transaction is structured as a wrap-around deed of trust and the sellers are supposed to be making payments on senior debt, the buyers could be at risk if the sellers fail to make their loan

payments, even if the buyers are scrupulous in holding up their end of the deal. Third, buyers might not have the protection of a home inspection, mortgage insurance, or an appraisal to ensure they’re not paying too much.

These are challenging times in credit markets, so there’s a role for seller financing. But be aware of risks so you can help protect your clients.

Herearesomewaystohelpsellersminimizesuchpitfalls,nomatterhowthetransactionisstructured.


> ASSOCIATION EVENTS A U G U S T 2 0 1 1

Congressman Silvestre Reyes Check Presentation

On July 29, 2011 Al Jurado, Chairman of the Governmental Affairs Committee and Linda Bastraw, President of the Greater El Paso Association of REALTORS® presented a check to Sal Payan, Chief Deputy from the office of Congressman Silvestre Reyes for the congressman continued support on REALTOR® issues.

“YPN Comic Strip Night”On June 24, 2011 members of the Greater El Paso Association of REALTORS® Young Professionals Network (YPN) relaxed and enjoyed an evening of laughs at The Comic Strip.

6 • elpasorealtor.com El Paso Realtor Magazine | AUGUST 2011 7 • elpasorealtor.com El Paso Realtor Magazine | AUGUST 2011 AUGUST 2011 | El Paso Realtor Magazine elpasorealtor.com • 7 Federal law prohibits soliciting contributions from individuals who are not REALTOR® members. Information disseminated in the public domain about TREPAC might be

considered a solicitation, therefore investments received from non-REALTOR® members through this online campaign will be returned.

This session, TREPAC paved the way for lawmakers to protect you from nuisance lawsuits—saving you attorney’s fees, court costs,higher insurance premiums,and sleepless nights.

But more threatsto your businessare always looming.

Invest in Your Future

Don’t wait till it’s too lateVisit TREPAC.com to contribute today


+ NAR SINGLE FAMILY RESIDENTIAL H O M E S A L E S R E P O R T

NATIONAL ASSOCIATION OF REALTORS®

Real Estate Trend Indicator

Board: Greater El Paso Association of REALTORS®

State: Texas

Date of Report: 07/15/11


+ BY THE NUMBERS A U G U S T 2 0 1 1 C O M PA R I S O N


DO YOU WANT TO RECOGNIZE SOMEONE IN THE COMMUNITY? DO YOU WANT TO SHARE AN ACCOMPLISHMENT OR JUST WANT TO GIVE KUDOS?Here’s your chance. We want to publish it!

Every month we want to showcase your accomplishments, share how you are making a difference in the community and show appreciation for all your hard work.

Please submit your kudos to:

Armando RodriguezCommunications/Governmental Affairs [email protected]


1 8:30 am- RCA Weekly Meeting 9:00 am- WCR Breakfast 1:30 pm- Gov. Affairs Cmtee. Mtg. 2:30 pm- TREPAC Cmtee. Meeting

5 Office Closed

6 1:30 pm - Education Cmtee. Mtg.

7 8:00 am - Orientation 1:00 pm - YPN Meeting

8 8:30 am- RCA Weekly Meeting 9:30 am- Property Taxes Class

9 TAR Convention 12:00 pm- CIBA Luncheon

12 TAR Convention 9:00 am- Appraisals Course 12:30 pm - Toastmasters

13 TAR Convention 8:00 am- MCE

14 TAR Convention 8:00 am- MCE 9:00 am - Success Realty Meeting

15 8:30 am- RCA Weekly Meeting 11:30 am - Builder University

16 8:00 am- Texas REALTORS Leadership Program 19 9:00 am- Accredited Buyer Rep Course 12:30 pm- Toastmasters

20 9:00 am- Accredited Buyer Rep Course

21 9:00 am- Accredited Buyer Rep Course 1:30 pm - Budget & Finance Meeting 2:00 pm - Executive Cmtee. Meeting

22 8:30 am - RCA Weekly Meeting 2:30 pm - GRI Mixer

26 9:00 am- WCR Board Meeting 12:30 pm - Toastmasters

27 1:00 pm- CIBA Board of Directors

28 8:30 pm- MLS Board of Directors 29 8:30 am- RCA Weekly Meeting

30 8:30 pm- Board of Directors 11:30 am - “Stories of Success” (Tentative)

1 9:00 am- WCR Board Meeting 12:30 pm- Toastmasters

2 12:00 pm- CIBA Luncheon 1:30 pm- Education Committee Meeting

3 8:00 am – Orientation 4 8:30 am- RCA Weekly Meeting 1:30 pm- Gov. Affairs Committee Mtg. 2:30 pm- TREPAC Committee Meeting

5 11:30 am- WCR Luncheon

8 8:00 am- Strategic Plan 12:30 pm- Toastmasters

9 8:00 am- TX REALTORS® Leadership Program

10 9:00 am- Success Realty Meeting

11 8:30 am- RCA Weekly Meeting

12 11:30 am- Builder University

15 12:30 pm- Toastmasters

16 8:00 am- MCE

17 8:00 am- MCE 1:30 pm- Budget & Finance Meeting 2:00 pm- Executive Committee Meeting

18 8:30 am- RCA Weekly Meeting 12:00 pm- B of A Short Sales Meeting 1:00 pm- TREPAC Cmtee. Meeting

19 11:30 am- Stories Of Success Ginger Kerrick – NASA

22 12:30 pm- Toastmasters

23 TREPAC Talent Show @The Comedy Club

24 8:30 am- MLS Board of Directors

25 8:30 am- RCA Weekly Meeting 1:00 pm VA Course

26 8:30 am- Board of Directors

29 9:00 am- WCR Board Meeting 12:30 pm- Toastmasters 1:00 pm- REALTOR/ Builder Cmtee.

30 1:00 pm- CIBA Board of Directors

31 12:00 pm- B of A Short Sales Meeting

SEPTEMBER

AUGUST

> MARK YOUR CALENDARG

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12 • elpasorealtor.com El Paso Realtor Magazine | AUGUST 2011

Thinking about running for office?

Thinking about running for office?

Don’t miss this opportunity to get a head start.Don’t miss this opportunity to get a head start.

2011 Texas REALTORS® ConventionSo you think you want to run for office?

Saturday, September 109:30–10:30am, Room 17BAustin Convention Center

Learn what it takes to becomea well-prepared and effective candidate and how to execute a winning campaign.

RealtorParty

®

august 2011 gepar magazine

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