REALTOR® Donna J. DeStefano outside her renovated PA RealtyWorks office

A Philadelphia brokerage located in a renovated formerly blighted building was found to be 84 percent more energy efficient during an energy audit conducted by the Wharton School of the University of Pennsylvania.

The renovations to the PA RealtyWorks office in Philadelphia incorporated green building practices and will save the company more than $1,400 a year in energy costs, according to broker Donna J. DeStefano. As a result of the energy audit, PA RealtyWorks received a grant from the state Department of Environmental Protection’s Small Business Energy Efficiency Program.

DeStefano was one of the first REALTORS® in Pennsylvania to earn the National Association of REALTORS® (NAR) Green designation when it was introduced a year ago.

NAR developed the Green designation in response to growing consumer awareness of the benefits of resource-efficient homes and buildings. Since then, nearly 100 Pennsylvania REALTORS® have earned the designation.

“REALTORS® who earn NAR’s Green designation put themselves at the forefront of the green real estate industry,” said Al Medina, director of NAR’s Green Designation and the Green Resource Council.

DeStefano sees the green industry as both beneficial to the environment and the consumer. “My target market is the value-minded consumer,” she said. “Everyone is looking to save money. Being green is beneficial to the consumer because it adds value to the property and the monthly maintenance costs are less.”

“Consumers know what green means,” she added. “Being green is getting back to basics and doing what people used to do to sustain their environment and their neighborhoods.”

NAR launched a redesigned GreenREsourceCouncil web site earlier this year to provide information for both REALTORS® and consumers. Consumers interested in energy efficiency and sustainable building practices can locate a REALTOR® with the Green designation on the web site.

PA RealtyWorks office before

NAR Region 2 Vice-President Greg Herb

PA Association of REALTORS® (PAR) President Greg Herb was recently elected Region 2 vice-president for the National Association of REALTORS® (NAR).

Herb, owner of Herb Real Estate in Gilbertsville, will represent Region 2 which consists of more than 130,000 REALTORS® in Pennsylvania, New Jersey and New York.

As a regional vice president, he will oversee NAR’s work and act as the representative of NAR President Vicki Cox Golder within his region. He’ll be responsible for identifying challenges within the region and assisting wherever possible. He also chairs the regional caucus meetings held at NAR’s Midyear Legislative Meetings and the annual REALTORS® Conference.

“I’m very excited about this opportunity and to be more involved with NAR,” Herb said. “As regional vice-presidents, we work directly with NAR’s leadership team and we have the opportunity to offer opinions on important issues.”

Herb has been on NAR’s Board of Directors since 2000. He is currently on the Business Issues Committee. He chaired NAR’s Marketing Forum in 2008 and served on the Strategy Task Force, Federal Housing, Institute Advisory and Risk Management committees.

Jim Helsel

PA Association of REALTORS® (PAR) member James L. Helsel Jr. was installed as the 2010 National Association of REALTORS® (NAR) treasurer during NAR’s convention in San Diego. He served as NAR’s treasurer in 2008 and 2009. Helsel, a third generation REALTOR® for 35 years, is a partner with RSR REALTORS® in Lemoyne.

“We know that 2009 was a difficult year for our members. NAR has worked hard to provide programs and services at no cost to help with their day-to-day businesses,” Helsel said. “Our goal is to ensure that our members continue to be profitable – even when real estate markets around the globe aren’t doing as well as we’d like. 

“While we remain cautious, we’re pleased with our legislative and regulatory efforts over the past year and we’re looking forward to continuing those efforts in a way that helps members in 2010,” he added. “As our new President Vicki Cox Golder said, we’re ‘On the Rise’.”  

Helsel served as PAR president in 1994 and was presented PAR’s Distinguished Service Award in 2008. He was named REALTOR® of the Year by both PAR and his local peers at the Greater Harrisburg Association of REALTORS®.

A member of NAR’s Board of Directors for nearly 20 years, Helsel served as the NAR Region 2 Vice President in 2001, representing Pennsylvania, New York and New Jersey.

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REALTORS® who have a designation earn approximately $27,000 more per year than those who don’t, according to a 2009 NAR Member Profile survey.

The survey revealed that the median income of REALTORS® without a designation was $28,400 and the median income of those with at least one designation was $55,700. REALTORS® who pursue professional designations have a distinct competitive edge as a result of their increased expertise and marketability.

That’s no surprise to Pat Moyer of Prudential Fox & Roach, Malvern. Moyer holds the Accredited Buyer Representative (ABR), Certified Residential Specialist (CRS), Green and sustainable real estate issues (GREEN), Graduate, REALTORS® Institute (GRI), Seniors Real Estate Specialist (SRES) and Technology Specialist (e-PRO) designations. Moyer is also an ABR, GREEN, SRES and e-PRO instructor.

“Designations give us authority and credibility,” she said. “I urge REALTORS® to ask themselves: What separates me from the other real estate agents? What value do I bring to the consumer? How does the consumer make a choice?”

She continued, “Designations teach you so much more about the real estate profession. It shows that you have gone the extra mile to attain more knowledge and training.”

Designations also help REALTORS® focus their business on a specific part of the population. Moyer believes the ABR designation gives REALTORS® a more professional level to their business. “This designation allows REALTORS® to connect with a larger group of people. It helps them better represent the buyer,” she added.

The pinnacle of residential designations, according to Moyer, is the CRS. “Attaining the CRS designation requires more coursework, years in the business and reaching certain sales levels. There are many criteria to meet in order to earn this designation compared to others,” she noted.

The NATIONAL ASSOCIATION OF REALTORS® (NAR) has named November REALTOR® Designation Awareness Month. For a complete list of the official NAR family designations and certifications, visit realtor.org/education. For designation courses throughout Pennsylvania, visit parealtor.org.

One of the first places I turn to when researching new ideas and topics is definitely NAR’s site at realtor.org. (When I was searching for a home, I’ll admit, it was realtor.com) While I may be a little biased, NAR’s website is easy to use and they are constantly editing and improving their pages and data. More importantly, they have a wealth of information for not only consumers, but also the REALTORS® they serve each and every day. Did you know that you can access state information regarding home price analysis reports via NAR’s site? The 2009 Local Market Reports contain a wealth of information including foreclosure rates, housing inventory and the health of local job markets.

The information doesn’t stop there! On NAR’s State and Local Market Information page reports concerning state fiscal conditions, mortgage conditions and even the economic impact of housing can be found. All of this and more can help you as a REALTOR® stay on top of trends in your local market area. All real estate is local, so take the first steps in becoming your local expert!

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By working together, NAR and FHA hopes to promote home ownership as well as provide the tools REALTORS® need to provide the best client service and information. NAR has published “Come Home to FHA” that is filled with information on the variety of FHA programs available. Programs include manufactured home loan insurance, rehabilitation mortgage insurance and energy efficient mortgages.

Did you know that a minimum credit score is not required for an FHA mortgage? Actually, an individual may not be turned down for an FHA mortgage for the sole reason of a lack of credit history. Information regarding FHA requirements and benefits can also be found in NAR’s FHA Online Toolkit. Set yourself apart from the crowd and become the REALTOR® that consumers rely on for the most up-to-date information on the mortgage industry.

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This blog will focus on the Smart Growth Grant program; check in next week for information on Housing Opportunity Fund Grants.

Smart Growth Grants are available to implement programs and activities that position REALTORS® as leaders in improving their communities by advancing smart growth. The grants can be used to develop a community planning workshop, support green building activities, or to help local government develop energy efficiency policies for your community.

Several of our local associations have received funding through a Smart Growth Grant.

The Pen-Mar Association of REALTORS® was awarded a grant to produce a series of classes on smart growth. All of the classes, which were held in fall 2007, qualified for CE credits from the Maryland and Pennsylvania Real Estate Commissions.

“The classes enhanced our standing with the local elected officials, who were impressed we were interested enough in the subject to dedicate the time to put together the curriculum,” says Tamar Osterman, Pen-Mar Government Affairs Director.

The REALTORS® Association of York and Adams Counties (RAYAC) received funding to support the association’s effort, as part of a coalition, to address growth concerns in the area.

“There were lots of discussions in our community regarding open space, affordable housing, and development,” says Shanna Wiest, RAYAC Government Affairs Director. “All of these discussions were taking place separately, but we needed to have them all together.”

RAYAC took the lead in forming the York/Adams Regional Smart Growth Coalition. The Coalition invited other groups to join, and together developed a model Traditional Neighborhood Design (TND) ordinance that the 72 local governments within the county can adopt.

As part of the 2009 funding cycle, the Lehigh Valley Association of REALTORS® (LVAR) recently received a grant to work jointly with Renew Lehigh Valley, a regional smart growth organization, to convene a community forum on restoring passenger rail in the Lehigh Valley.

“REALTORS® do more than just sell homes, they also help build communities,” notes Ryan Conrad, LVAR Government Affairs Director.

The forum will follow on the completion of a study – currently being conducted under the auspices of the Lehigh Valley Economic Development Corporation, Lehigh and Northampton Counties, and the Lehigh Valley Planning Commission – on the feasibility of establishing passenger rail linking the Lehigh Valley’s cities (Allentown, Bethlehem, and Easton) and connecting to other regions.

The study is expected to be completed in early 2010, with the community forum to commence shortly thereafter.

NAR considers applications twice per year, and have already awarded one set of grants for 2009. But there’s still time for your association/board to submit an application for the second round of grants. Applications are due by October 2. The maximum amount available to any one association is $5,000 in any given grant cycle.

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• TILA requirements now cover all borrowers applying for loans in transactions covered by RESPA where the loan would be secured by any dwelling. This includes second homes (it previously applied only to primary dwellings) as well as refinance loans subject to RESPA.

• Lenders are prohibited from imposing any fee (except for a credit report fee) on any consumer until after the initial TILA disclosures have been received by the consumer.

• An initial TILA disclosure must be provided to a consumer within three days of the receipt of a loan application, and at least seven days prior to consummation of the transaction. This means that no loan can close less than seven days after delivery of the TILA disclosure. This time limitation is not likely to affect many transactions, since most loan applications are made far earlier than 7-10 days before closing. Consumers looking to refinance will have a longer waiting period, however.

• If the annual percentage rate (APR) listed in the TILA disclosure changes more that 1/8 of a point (.125%), a new TILA disclosure with the changed terms must be provided no later than three days before consummation of the loan. A loan cannot close for at least three days after a new disclosure is given. (NOTE: A business day for this purpose is defined as Monday – Saturday, except for federal holidays.)

This last change is the one most likely to have a direct effect on a transaction. An APR can change for many reasons, including changes to the loan amount and fees/costs associated with a mortgage loan. If something changes in a transaction, and that change moves the APR beyond the permitted tolerances, a lender is not permitted to close on the loan for at least three days after delivery of the new TILA disclosure. If a transaction is less than three days from the closing date when a new TILA disclosure is delivered, the parties cannot have closing on the stated date. This may put the buyer in technical breach of the Agreement of Sale, although it is hoped that most buyers and sellers would agree to extend the settlement date to accommodate the changed circumstances.

For a more in-depth review of these changes, read a detailed summary on MorgageDaily.com.

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We all have opinions about energy labeling but the rule of thumb in the real estate industry is that this is a “go to the mattresses” type of issue. And that is exactly what the National Association of REALTORS® did. Through their lobbying efforts, NAR was able to favorably change the bill. The current version, which is now in the Senate, would ONLY require labels on new construction.

NAR also worked to ensure that the bill prohibits the EPA from regulating carbon emissions from residential and commercial buildings; provides property owners with financial incentives to make property improvements and reduce energy bills; and establishes green building incentives for HUD housing.

REALTORS® still have a lot of work to do. The bill must still clear the Senate and maintain the provisions put forth by NAR. As the bill makes its journey through the legislative process, NAR will have more opportunities to address unresolved issues, such as building energy code targets.

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Thus begins the 2009 edition of the NAR Legal Scan (password required), a survey done by the NAR legal department every two years to identify legal trends in real estate. For property managers there’s also a separate Legal Scan sponsored by IREM.

If you haven’t seen the Legal Scan before it’s worth taking a quick read to see what’s going on at the national level. While this is very helpful in identifying what issues are causing problems (anyone surprised to hear that dual agency and seller disclosure are near the top of the list?), what it can’t do is provide the resources to help keep yourself and your colleagues in line every day.  For that you can rely on certain PAR resources, including but not limited to:

• PAR Standard Forms: As one member says, “we have a form for that!”  Most common transactional issues are dealt with in our major forms or addenda. Always try looking for a PAR form before trying to write something yourself. And don’t forget about the detailed Guidelines for Preparation and Use that explain how to use the most popular forms. Get them. Read them. Keep them.

• Issues Resource Center: When you need information on advertising rules, CMA’s, mold, fair housing and bunches of other topics, look for these resource pages with tons of links.

• Legal and Regulatory Links: Ever had someone say “you can’t do that, it isn’t legal!” Ask them to give you the section of the law/regulation that says so…then double check here. This page has most of the relevant PA laws and regulations you’ll run into everyday.

• Legal Hotline: When all else fails, call the Hotline.  This FREE member service connects you with attorneys in the office of PAR’s outside legal counsel. They’re not ‘your lawyer’ in a dispute, but they can often help guide you so a small dispute doesn’t blow up into something bigger. (This is ONLY for members, not for clients.)

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