We celebrated Thanksgiving a month ago and are about to step over the threshold into 2010. As I get older, it seems like the holidays are closer and closer together and the years get shorter. This one is no exception. It is simply unbelievable that we are already here at 2010.
In truth, this topic was suggested. It is a great topic, but as a Realtor®, we both know how hard it is to ‘stay in the lines.’
This topic is particularly thought provoking, because 2009 was a year with accomplishments and brutal challenges. As an association, that is together, we logged an amazing number of successes: a permanent ban on banks in real estate, extension and expansion of the homebuyer’s tax credit, launching our consumer website HouseLogic.com, the establishment of the Realtors Property Resource (RPR), delivery of the Right Tools, Right Now initiative, extension of the higher conforming loan limits and the selection of the Game Changers winners. By any measure this is a bold and impressive list of accomplishments.
On the other hand, it has been an extremely challenging year for us as individual Realtors®. Yes, sales statistics show improvement in most markets, specifically more sales, but prices continue to correct.
What has changed is the work required between the sales agreement and closing. It has increased exponentially. 30 years ago when my real estate career began, the signing of sales agreement would lead to closing 99 percent of the time. Now, that percentage is closer to 80 percent, especially this past year. In every instance, the challenge has been financing. 30 years ago 90 percent of the work and time required in a transaction was prior to sales agreement. Once it was signed the details were clerical. Today, 60 percent of my transaction time is spent on pre-qualification, search, and negotiation. 40 percent of my time is now spent on inspections, FINANCING, APPRAISALS, conflict resolution, title search issues, closing logistics, and last minute lender requirements. In the digital age, how has the process become so ‘inefficient?’
So, my wish for the association is that our members engage the tools and the information that are in front of us. And that we look forward, patiently, to the future of our association and our industry, particularly with things like RPR on the horizon.
We have been through the worst of the economic storm. We thought this was going to be a 10k endurance event; it has become an economic marathon. We know there is finish line, but we still cannot see it. We are really ‘digging down deep’ to get there.
This business challenge has evidenced itself in the mindset and the health of Realtors®.
We are told that” what does not kill us, makes us stronger.’ We are now strong enough.
We as people and as professionals are ‘can do’ individuals and team members. We are positive and confident, but mature. We are also pragmatic and goal oriented. (We are also tired and the stress has evidenced itself in the overall health of many of our members).
There is a life lesson, not just an economic lesson, for us: Marathons are completed one step at a time. They are about endurance and persistence. Results driven Realtors® are not very patient. We want it yesterday. It is coming tomorrow; or rather we will get there tomorrow.
This market is changing and improving. 2010 will be the year of improved sales activity, but also an improvement in average price. It will be a true turning point.
All the best, brother and sister Realtors®. Our best days are before us. – Ron Phipps, 2010 NAR President-Elect
The holidays bring about thoughts of family. Some of us are blessed to have family to spend this special time of year with, others may not be as fortunate. Tonight while spending time with my family, my brother, sister and I had a moment to reflect on how our family has expanded exponentially with our circle of friends. Friends are an important part of most families, and we are not exceptional in that regard.
In September 2001, our state convention was to be held in Dallas, Texas. It was only a few days after September 11….a day etched in the minds of all Americans. We debated on whether or not to cancel the convention. But we decided to move forward, as all Americans were concluding that moving forward was what we could do best.
Our numbers were down, mostly because there was no air travel at the time and Texas is a pretty big place. We have always held a Prayer Breakfast on the Sunday morning of our convention, but that particular day was one that no one in attendance will forget. You see, in the midst of a crisis, unprecedented in my time, we all realized that while we left our own families to do the work of REALTORS®, we were actually with our extended REALTOR® family.
That may sound corny to many reading this, but when I am in a tough fight I cannot think of anyone I would rather have standing with me than my family. When times are tough, I can count on those who I trust. Times have been tough for most of us this past year. But when the going got tough, NAR did not hunker down and tighten up….as a matter of fact NAR opened the door of opportunity to all of our members with the Right Tools Right Now program, offering member benefits like never before.
When business was a challenge in many parts of the country, members also made their voices heard on Capitol Hill, and we saw the tax credit not only got extended, but also expanded to help in the recovery of the housing market.
The “all real estate is local” message is being heard across this country and the consumer is finally getting the message. The NAR public awareness campaign continues to send a positive message to consumers and is again one of the best values for REALTOR® membership we could ask for.
As an individual, I could not achieve any of this on my own. I know it is a collaborative effort on behalf of nearly 1.2 million REALTORS®. You are my other extended family (thank you all for not expecting holiday greeting cards from me). With you, I know I can stand proud and firm going into 2010, and I wish you all the same feeling this year.
While I work at selling homes to my clients, I know there are other people working daily with Congress and the regulatory groups to make my business better. My part in the family circle could seem small, but it’s very important. I contribute to RPAC, which an investment in my business, and answer the NAR Calls to Action, which are a mere click of the mouse. Time: Two minutes maximum. Results: Priceless!
You see, this IS my family…my business…and my future. I intend to take control of all three and I invite you to do the same. Saying you are a REALTOR® is more than just a “trademark”, consider it your family crest!
Wishing you all a prosperous 2010!– Brooke Hunt, NAR Vice President and Liaison to Committees
Happy Holidays! I’m Vince Malta, the 2010 NAR Vice President and Liaison to Government Affairs. As one of the newer members of the NAR Leadership Team, I’ve come to be even more convinced that member involvement is essential to getting the housing market and the economy back on track. Here are a couple of things that never would have happened this past year without the hard work and commitment of members:
- Extending and expanding the homebuyer tax credit
- Banning banks from getting involved in the real estate business
- Watching the Broker Involvement Program soar to nearly 3,000 members
These are tremendous successes that REALTORS® accomplished in a very challenging year. As we look to the future and dream about the year to come, my holiday wish for NAR is one that I share with NAR President Vicki Cox Golder.
She wants to further the reach of REALTORS® on Capitol Hill and urge more members to join the Broker Involvement Program. This program gives brokers the opportunity to send personalized NAR Calls for Action to their agents under their own name and logo.
When brokers send out messages to their own agents, we see the CFA response rate rise significantly. Vicki doesn’t want just 4, 000 brokers or even 5,000 brokers involved in the program. By the end of 2010, she wants 6,000 brokers signed up! That will greatly increase our influence in Washington. Brokers, if you have not registered for the Broker Involvement Program, you can do it today by going to RealtorActionCenter.com.
The challenges and opportunities in 2010 will be great. As Congress concludes its debate on health care reform, the reformation of Fannie and Freddie, real estate taxation, commercial real estate, and regulatory reform will take center stage. We need your involvement, your commitment, and your ideas to once again meet the challenges we have with each of these monumental issues.
Now, I have a question for you. When you look back at 2010, what will you want to see as our greatest accomplishment? Go ahead and tell us below on the blog. – Vince Malta, 2010 NAR Vice President and Liaison to Government Affairs
About two years ago I changed dentists. Not offices, just dentists. You see my long-time dentist was retiring and his son Victor Lowell (who happens to be the brother of Mike Lowell—the third baseman for the Marlins and the Red Sox) a young man I happened to coach in youth leagues, was going to take over.
I learned something that first day in the chair with my new dentist. Victor is a better dentist than his Dad. And I thought his Dad was a great dentist! You might say this is not much of an insight given the advances in schooling and technology, but I disagree.
Some people are more talented than others. Some are a heck of a lot more talented than others. That’s one of the big keys to our lives. Talent comes in all forms, shapes, and sizes, and talent matters when applied to your profession and passions!
The talent in our pool at NAR constitutes the beginning and the end of NAR’s value proposition, of our solutions and visions, and is our Brand!
You are the very fabric of the REALTOR® team family. You’ll be called on this year and in the coming years, to use your abilities because, in my eyes, each of you has a special gift.
Being called upon doesn’t always mean someone will ask you to volunteer. It often means that you have to seek the opportunity to serve . If you don’t use your talents, you cheat your teammates, you cheat your family, but most of all you cheat yourself.
You will have opportunities to apply your abilities through your local, state and national organizations this year. We all believe in your talent.
For the NAR team brand equity to grow, NAR must rely on both tradition and innovation from those before you, but most important, from you! When all is said and done, the essence of any team effort is its brand, and in NAR, that’s YOU.
My sincere wish is that you will decide to apply your skills for NAR! Doing that will advance the NAR brand, but more importantly, will advance your business Big Time!
Merry Christmas, Happy New Year, and all the very best of this Holiday season! — Moe Veissi, NAR 2010 First Vice President
I was recently talking to a member of the NAR staff who is looking to move closer to work. She mentioned that her REALTOR® discouraged her from looking at properties that are potential short sales. The reason? The agent explained that those transactions are difficult to close because they involved what she termed “funny money.”
In other words, the money from the sale is divided among various parties, which can delay the sale up for months.
We have heard from so many of you about this problem, and we finally have some good news to share.
As you know, last May, the Obama Administration announced that they would provide guidelines for short sales that would help improve the process. On November 30th, the Treasury Department finally released those guidelines, and we have posted a link to them – and to a FAQ – on Realtor.org.
As a recent article in the Wall Street Journal noted, the rules could help provide structure to a process that has been “chaotic.” I sure hope so.
The new rules don’t take effect until April, so until then, we’ll have to keep trudging along with the current process. But, this is a step in the right direction, and I am confident that we will see a much more robust market in 2010, as buyers return in force.
Now, if we could just get the banks to lend money. That’s a topic for another blog. – Vicki Cox Golder, 2010 NAR President
In 1986 Congress changed the tax code for commercial real property ownership causing one of the worst economic downturns the real estate market has ever witnessed. I was there…many of us were. It wasn’t a good time if you owned, sold, leased, or wanted to purchase real property.
To be blunt…Congress can give and Congress can take away…and they did in 1986. They
removed tax benefits that were available to purchasers of commercial property.
Each year the National Association of REALTORS® diligently watches Congress contemplate changes to programs and services. In particular, NAR gives close attention to both the new tax benefits that Congress might give. More particularly, NAR fights efforts to take benefits away that would adversely impact membership and our clients…lest we forget we are “The Voice for Real Estate.” That means we speak for more than just our membership. We also speak for every real property owner in the United States.
As part of a continuing look at taxes paid (and at places to raise revenue), Congress is considering a change in the “carried interest” provisions of the tax code in order to pay for tax extensions in 2010. (The “carried interest” rules determine whether general partners in real estate investments pay taxes at capital gains rates or at ordinary income rates when the investment is sold.)
Earlier versions of the carried interest rules took away any possibility of capital gains treatment of the carried interests of general partners in real estate partnerships. The current version is less burdensome because it sets out rules whereby these real estate general partners can preserve their capital gains.
In this economic climate, it would be hazardous to tax carried interest at ordinary income rates. This change, if enacted, would cause many of our members and clients to see a heavy increase in their tax burden. At a time when the commercial investment real estate market has its own financing woes and is teetering on a collapse worse than the residential sector, we don’t need another nail in the coffin.
NAR is vigilantly watching this bill in the House. We oppose any alterations to how carried interest is taxed that would affect real estate partnerships. We are working with leaders in Washington to protect your interests, and we will keep you updated on this issue.
The holiday season is upon us. Best wishes to all of you now and for a wonderful New Year!!
It has been two weeks since we left San Diego and the 2009 National Association of REALTORS® Conference & Expo. Even with the ‘interruption’ of Thanksgiving, the wow of the Conference has not worn off. The meeting was a culmination and a celebration of a great year: the Right Tools, Right Now initiative, banks permanently out of real estate, expansion and extension of the tax credit, another year of higher conforming loan limits, the Game Changer competition, roll out of the consumer Web site HouseLogic.com and the introduction of the Realtor Property Resource. Any one of these achievements would have been an accomplishment, but SEVEN is remarkable!
We have actually created a case study for business schools: How does a 100 year old trade association re-create itself to be more valuable and strategic to its members? How does a large organization move quickly, quietly and efficiency? How does a large ship move a like jet ski? How does an organization with traditions and mass become inventive and entrepreneurial? How does the organization become, to use Moe Veissi’s word, nimble?
NAR has done it all.
There are lots of books written about effectiveness in the information age: Good to Great, Blink, Seven Habits of Highly Effective People, and so many more. The new National Association of REALTORS® has embraced all of the elements articulated in these books: common sense, strategic planning, and applied business principles. There is a fresh and direct partnership between volunteer leadership and our talented professional staff. It is a balanced partnership that recognizes the strengths and competencies that each brings to the table.
We in leadership talked about a new beginning in San Diego. We suggested it was a commencement. The description is appropriate. Both the association and the world we live in are new and different. There is an old adage that if you do not learn from history, you are bound to repeat it. We have studied the history, and while we will make some mistakes (as even measured risk produces), we are committed to real progress rather than motion.
Most people, including our own members, focus on what has been accomplished. But, the real ‘revolutionary change’ is the way in which these milestones have been delivered. The association as adopted the eyes of the REALTOR® as its eyes, and now its world vision is from the perspective of the REALTOR® on the street. The eye sight is crisp and sharp. We have rediscovered our purpose in our second century. The Leadership Team, led by Vicki and Charles, and our professional staff led by Dale Stinton have reason to be proud. It’s not your Grandfather’s association any more.
It’s OUR association. Members have never had as much equity in the association as they do today. The association is more relevant for its members that it has ever been: political advocacy; research, public awareness, global business, commercial real estate, and so much more including all of our 2009 accomplishments.
You can tell from the tone of this blog that we have reason be proud and excited. But what really moves me is the innovativeness, creativity, risk taking, and determination of our membership. The best ‘applications’ of technology are often never contemplated nor intended by their inventors. Can you imagine what our membership is going to do with these new tools? Our customers and clients should get ready to be ‘wowed.” It is simply: AWESOME. – Ron Phipps, 2010 President-Elect
