PAR’s consulting economist Dr. Austin Jaffe says price stability and reduced foreclosures are contributing factors needed to stabilize the economy. Jaffe says it’s time to get back to basics. Although home prices won’t increase, they will stabilize in time. Jaffe believes we will be heading toward a time of low rates of appreciation and moderate borrowing, “View housing as a place to live instead of a place to trade up to,” Jaffe said. “That may be the concept of the housing market in the next decade.”

Duration: 2:58

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RealAgile.com uses predictive analytics to help REALTORS® determine which consumers have a high probability of moving, according to Ed Neiman, executive vice president of marketing and sales for RealAgile. The patent is pending on the product.

“We have an innovative product that uses 270 different sources of information, from demographics, MLSs, psychographics and more to rank the highest probability of when a property owner will be ready to sell,” Neiman explained. “In our ‘MoveScore,’ we rank properties in a geographic area based on the probability it will be offered for sale within six months.

“When we go back in 18 months to test the accuracy, we find we’re capturing 40 to 60 percent of the MoveScore list,” he added. “Our product allows REALTORS® to focus on people and properties that have a high probability of moving which saves the REALTOR® time and money. Most of all, it makes them relevant to the consumer. They’re not spending a lot of marketing efforts on people who have no probability of moving at all.”

The company also allows REALTORS® to rank their own sphere of influence by taking advantage of the MoveScore analytics. “CentreScore provides a totally new way to find the potential sellers and buyers that are hidden in a REALTOR’S® sphere of influence,” Neiman said.

Bob Bohlen, a real estate coach with both Preview Properties in Brighton, MI and Signature Properties in Andover, MA, said preliminarily RealAgile looks interesting.

“While it’s in the early stages, we received a list in November, sent a mailing in December and got an eight percent response rate from the mailing, which is about 16 times more than normal,” Bohlen said. “It seems to be a good tool and if it proves as successful over the next six months as it has starting out, it could be a real asset.” He said RealAgile is one of three systems his company uses to generate leads.

Neiman, who worked in real estate for 25 years and helped start ZipRealty, said, “If you’re prospecting, cold calling, sending out postcards, you can feel very irrelevant. You talk to 256 people and you might get one lead. If you can get that down to one in 12 – then you feel more compelled to call people. Our product helps you focus your efforts.

“This technology creates a whole new way of marketing and thinking,” he added. “REALTORS® are able to focus, spend less of their budgets on marketing and get better results.”

REALTORS® are able to subscribe to this service on a monthly or bi-monthly basis.

President Don Roth, left, accepts the gavel from 2009 President Greg Herb

The board approved $16,000 to implement the recommendations from the PA REALTORS® Institute (PRI) Presidential Advisory Group. The funding will be used to help PRI be more competitive and better aligned with the needs of local associations.

Funding for a search for a new PAR executive vice president was approved. According to Chair Bob Hay, the Executive Search Task Force will begin considering options for using an executive search firm or facilitator to assist in the process. Costs of up to $60,000 were approved.

Treasurer Bette McTamney reported that although PAR ended 2009 with a deficit that was more than originally budgeted, the association’s financial health remains strong.

Stephanie Brown and Patricia Copeland of the graduating LeadershipPAR Class of 2009 presented the class project, a web page that gives information about the program and past graduates. Diplomas were given to: Brown, Copeland, Denise Rich, Ferne Silberman, Raul Azpiazu, Frank Renaldi Jr., Joslyn Dermer, Daryl Mikolay, Steven Bodner and Todd Polinchock.

The LeadershipPAR 2010 Class was introduced and includes: Derek Canova, Patricia Carey, Jonathan Coles, Brandy Fabry, Bill Festa, Russ Greer, Tiffany Hayward, Therese Kelley, Adrienne Loughery, Jane Maslowski, Kim Rickert and Mike Rotto.

In other business, the board:

• Approved funding for the national RPAC trustee to attend the NAR Mid-Year meeting in Washington, D.C. and the annual convention.
• Approved an operational policy for the Data Mining Services Committee which would require all association committees and task forces to use Strategic Guidance Systems (SGS) for all survey and polling work and would require any entity accepting monies from PAR in order to do survey work to provide raw data back to PAR if the work was not performed by SGS.
• Approved bylaws changes which included adding provisions for clarifying the role of alternate directors, conflicts of interest and meeting by telephone and web technology, as well as changes in punctuation, renumbering of sections and articles and bringing language into conformity.
• Approved contracts for the executive vice president and legal counsel.
• Approved REALTOR® emeritus certification for Jane Kopp, William J. Reed and Ruth K. Smith of Greater Wilkes-Barre and Bernard J. Skripek, Lehigh Valley.

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Must the fees disclosed on the HUD equal the fees disclosed in the contract between the consumer and the real estate broker? If the fees on the HUD exceed the fees identified in the contract between broker and consumer, then the excess amount may be subject to review under Section 8 of RESPA.

The revised HUD-1 Settlement Sheet facilitates the disclosure because line 700 requires the total amount to be paid to be disclosed. Lines 701 and 702 are the lines on which the sharing of fees (and which consumer will be paying the fee) is to be disclosed.

HUD is not interested in how the earned fees are split between brokers and their agents, so individual internal accounting for earned broker’s fees does not need to be shared with the consumer or disclosed on the HUD-1.

HUD also said in its letter, “Charges by a real estate broker or agent that are in addition to the commission may be found to be a violation of RESPA if those charges are for no or nominal services or are duplicative.” In other words, don’t put the flat fee on a different line on the HUD-1 than the percentage-based commission. When the 700-series are to be prepared by the title company or settlement officer, the agent will know the total amount of the percentage-based fee and the flat fee that is also being charged. One number should appear on line 700: that number should be what the consumer agreed to pay.

Perhaps the last major “consumer innovation” of this era was the Option ARM. Option ARMs were used from 2004 until 2007 with five-year resets (or less) to higher interest rates with standard amortization schedules. Thus, many have come into play during 2009 and we will see many more in the months ahead.

In November 2009, Standard and Poor’s completed a study of Option ARMs. Let’s look at the details, as reported by cnnmoney:

1. Option ARMs were intended for borrowers who expected to flip their transactions or refinance their purchases as property appreciated but long before the mortgage rate reset kicked in, often five years after origination.

2. Like other ARMs, these instruments began with so-called “teaser rates,” although some were not as low as might have been expected. They were all lower than what the resets would be in the future.

3. The Option: the rules required borrowers to pay something each month: either the normal principal and interest, interest-only or something less than the interest owed for the period. S&P found, perhaps not surprisingly, that 93 percent of the borrowers chose the last option!

S&P reports that nearly all of the 350,000 Option ARM borrowers now owe more than the original balance on their loans due to negative amortization (the adding of unpaid interest to the original loan balance). Not surprisingly, default rates are sky-high at 25 percent and evidence exists that the newer the loan, the more likely the default. (Those issued in 2007 tend to default after only 20 months.)

Where are these loans? Yes, in California, Nevada, Florida and Arizona, where prices have fallen the most. Borrowers are overwhelmingly underwater in these markets to begin with and are now facing severe resets (frequently over a 100-percent increase in monthly payments), no opportunities to refinance and no chance to qualify for loan modifications. Can you say default?

As if this weren’t bad enough, 80 percent of the mortgages were liar loans (where applicants reported unsubstantiated incomes at often grossly exaggerated levels in order to borrow more money than they could manage). Now, after the party, it is hopeless to expect these borrowers to be able to service their loans.

Epilogue: There are many possible villains in this regrettable story and fingers have been pointed at everyone and at each other. To be sure, borrowers were caught up in the fury, if by no other evidence: they surely knew they could not repay 100 percent or more of their monthly pay after a reset.

This sad tale will continue to unwind into 2012.

PA Association of REALTORS® (PAR) supports the PA Housing Alliance’s effort to establish a housing trust fund. The fund would provide monies to build, rehabilitate and preserve homes for low- to moderate-income individuals and families, senior citizens and persons with disabilities.

“Now is the time to establish a Housing Trust Fund in Pennsylvania,” said Kimberly Skumanick, PAR’s Legislative Committee chair. “The Commonwealth needs to take advantage of federal stimulus funds that are available to start finding solutions to affordable housing issues without additional taxes.

“The Housing Trust Fund can be used to address affordable housing issues while helping to rebuild the state’s economy by putting properties back on the tax rolls and increasing property values,” Skumanick said.

The PA Housing Finance Agency would be charged with developing programs to build, rehab and preserve homes through the Housing Trust Fund.

“Everyone from young families just starting out to senior citizens on fixed incomes needs safe, affordable housing,” Skumanick added. “This isn’t a new problem but it’s been exacerbated by current economic conditions.”

PAR members will receive a Call-to-Action later this week asking them to send letters of support to their state representatives.

Robb Heering, who founded the first nationwide Hispanic real estate franchise, says he opened Casa Latino because there was a tremendous need for understanding diverse cultures in real estate. Heering tells REALTORS® that understanding another culture is sometimes more important than learning the language. “Learn something about the Hispanic culture, the Asian culture and learn something about other minority cultures in this country,” Heering said. “Open your doors, open your arms and you’ll do great.”  Since opening in 2005, his company has experienced triple-digit growth with more than 80 locations nationwide.

Robb Heering (Photo credit: Stuart Leask)

Duration: 2:58

Heering recently moderated a panel at the PAR January Business Meetings. He recommended reading the books in the Kiss, Bow or Shake Hands series to learn more about different cultures.

From left: Barb Roth, Don Roth and Jim Helsel (Photo credit: Stuart Leask)

Donald D. Roth was installed as the 2010 president of PAR at the annual Inaugural Banquet held Tuesday evening in Harrisburg.

Roth, a REALTOR® from Harrisburg, was sworn into office by NAR Treasurer James L. Helsel Jr., also a PAR past president.

“I’m humbled, honored and excited to have this special opportunity to lead PAR in this challenging time. I will make our association a better one in the coming year,” Roth said.

Roth said association members will face many challenges in 2010 including regulatory, legislative, business and consumer expectations. He said the association has many ongoing projects it will focus on in the coming year including the Community Reinvestment Project (CORE), the statewide housing trust fund, educational requirements and cultural diversity outreach.

“The times have changed and we will continue to change to meet the changes in our industry,” he added.

Pennsylvania Rep. Sue Helm (R-Dauphin), Glen Grell (R-Cumberland) and Ron Marsico (R-Dauphin) made a special presentation to Roth on behalf of the House of Representatives during the evening’s festivities.

Outgoing PAR President Gregory Herb thanked members for the opportunity to serve as president. He reminded them, “Never has your PAR membership been more valuable than it is today.”

Ellen Renish and Kim Skumanick presenting the RPAC Award for the Extra Large Associations/Boards category to Suburban West's Terry Kirkwood

The good-natured competition is always greatest between several local associations in the Extra Large Association category. In a close second was the Montgomery County Association with 163.60 percent. Third place went to the Greater Harrisburg Association with 149 percent.

Overall, PA Association of REALTORS® members invested $548,964 in RPAC last year, falling short of the $700,000 goal.

The 2010 RPAC fundraising goal is $600,000 with 40 percent participation.

Other per capita fundraising awards were presented to:

Large Associations/Boards

First Place – REALTORS® Association of York & Adams Counties  (163 percent)

Second Place – Pocono Mountains Association (154 percent)

Third Place – Reading-Berks Association  (143 percent)

Medium Associations/Boards

First Place – Centre County Association (259 percent)                 

Second Place – Greater Allegheny-Kiski Area Board (130 percent)

Third Place – Butler County Association  (123 percent)                                             

Small Associations/Boards

First Place – Cambria Somerset Association (205 percent)

Second Place – Mifflin-Juniata County Board (186 percent)

Third Place – Bradford-Sullivan Association  (166 percent)                                              

Recognized for the highest membership participation in RPAC fundraising were:

Small Board – Elk-Cameron County Board (89 percent)

Medium Board – Pike/Wayne Association (84 percent)

Large Board – Pocono Mountains Association (49 percent) 

Extra Large Board – Suburban West REALTORS® Association (43 percent) 

The following associations/boards achieved 50 percent participation: Bradford-Sullivan, North Central Penn, Washington-Greene, Fayette County, McKean County, Greater Meadville, Mifflin-Juniata, Greater Allegheny-Kiski Area, Lebanon County, Allegheny Highland, Cambria Somerset, West Branch Valley, Greater Wilkes-Barre and Lawrence County.

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Answer: Unfortunately, no. If you are tagged in a picture and it was posted by someone other than you, the only way to remove your association with that photo is to click the “Remove Tag” link next to your name. Every person decides how much privacy they want to have with their pictures, whether it be “friends only” or “everyone.” If they’ve chosen “friends only” that means all of their friends can see the picture (and any mutual friends you have).

If you’d like that picture to appear on your Facebook page where you control who sees it, you could ask the original poster’s permission to save the picture to your computer and upload it to your page.

To check your picture/video privacy settings:

When you are logged into Facebook, hover over the “Settings” button in the top right of any page. Click “Privacy Settings” in the drop-down menu. Choose Profile Information and you will see numerous areas where you decide who should see your information. Next to “Photos and Videos of Me” use the drop-down to decide what settings are most appropriate for you. (Mine is set to “Only Friends.”) For Photo Albums, you have the option to decide the privacy level for each album you create.

Do you have a social media question? Ask Meghan by filling out this form.

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