Andrew Wooten

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REALTOR® safety week is September 12-18 but according to Andrew Wooten, the National Association of REALTORS® (NAR) safety instructor, REALTORS® should discipline themselves to incorporate a safety routine into their daily lives.

“A REALTOR’s® comfort level is very important when meeting a client and showing a property,” Wooten said.

He added if a REALTOR® feels uncomfortable with a client he should make an excuse and leave.

“Unfortunately, as we work with folks who have been victimized in our industry they’ve all said that right before the attack happened  they felt uncomfortable and something didn’t feel right,” Wooten said.

“Listen to yourself, trust yourself. You are your best weapon,” added Wooten.

REALTORS® have free access to the Gonzales Group Experience, a multicultural website which is a repository of multicultural information, according to Dan Carrillo, managing partner of the Gonzales Group.

“The website is a compilation of the research we’ve done and public information that we’ve repackaged,” said Carrillo.

When Carrillo polled REALTORS® across the country, REALTORS® said they wanted definitive information about the multicultural market.

“They asked for very specific information that they could find in one place that would help them grow their market share in these growing markets,” Carrillo added.

The Gonzales Group Experience can be accessed through PARJustListed.com or parealtor.org.

The growing multicultural market in Pennsylvania offers untapped business for REALTORS®, according to Dan Carrillo, managing partner of the Gonzales Group. Carrillo, with the multicultural market research firm, said that the Hispanic and Asian markets will most likely drive the potential home-buying population in the coming years. “One size does not fit all,” Carrillo said. “REALTORS® really need to have a business plan that is very specific to the demographics in their market.” Carrillo estimated by 2014 the Hispanic population will grow another 20 percent and the Asian population by 15.5 percent. In Part two of our series, Dan Carrillo will discuss the new benefit for PAR members, the Gonzales Group Experience.

Business casual does not mean business sloppy, according to Anna Wildermuth, founder of Personal Images Incorporated. Wildermuth says business casual should be a relaxed form of professional dress. “No flip-flops, no shorts or plunging necklines,” said Wildermuth. “You shouldn’t dress like you’re going clubbing or like you’re getting ready to clean the garage.” Wildermuth said when meeting with a client you want them to view you as a professional business partner. “Look at your top producers, look how they dress and mirror that,” Wildermuth added.

Five hundred Pennsylvanians who encountered home foreclosure during the last 12 months were surveyed by Florida-based polling firm Strategic Guidance Systems (SGS) between June 22 and 27, 2010.  Fifty-seven percent of the sample said their household had experienced a wage-earner’s job loss in the 12 months prior to their foreclosure, while 47 percent said they had been hit by unexpected medical bills. Thirty-six percent indicated they had other “unexpected bills.”

Subprime mortgages, which many regarded as the main culprit in the meltdown of the U.S. housing market, appear to have played a minor role in Pennsylvania foreclosures. Forty-one percent of survey respondents held prime fixed-rate mortgages and 12 percent had prime adjustable-rate loans. Only 14 percent carried a subprime mortgage.

“It’s clear that housing market conditions are closely tied to economic conditions, especially employment. Subprime mortgages have never really driven foreclosures in Pennsylvania,” said Austin Jaffe, Ph.D., PAR’s consulting economist and head of the Department of Insurance and Real Estate at the Smeal College of Business at Penn State University.

“The study represents a significant number of Pennsylvanians who have personally experienced foreclosure in some way.  They’re people from all walks of life, various socio-economic backgrounds and all parts of the Commonwealth,” SGS pollster Joel Searby said.

 Many of those surveyed also did not know about the state and federal programs available to those undergoing the foreclosure process:

• 67 percent of respondents “never heard of” the federal Home Affordable Foreclosure Alternatives Program (“HAFA”)
• 57 percent never heard of the federal Making Home Affordable program
• 61 percent were unfamiliar with the Homeowner Equity Recovery Operation program of the PA Housing Finance Agency.

Ninety-one percent of those surveyed said they attempted to contact their lender about a solution to their pending foreclosure but 48 percent said their lenders were “not at all” willing to work with them. The 30 percent who worked with their lenders said it made no difference. Nineteen percent said it “made things worse.”

Most of the survey respondents were between the ages of 40 and 59. At the time of foreclosure, 71 percent had lived in their home for more than five years. Forty-one percent of the sample personally experienced foreclosure; 57 percent narrowly avoided or are currently in foreclosure.

The survey has a margin of error of +4/-4 percent.

The association commissioned the study to understand the impact foreclosures have on individual Pennsylvanians, said Don Roth, PAR president.

The study was funded by a grant from the National Association of REALTORS®.

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An unprofessional image can sometimes break a sale, according to Anna Wildermuth, founder of Personal Images Incorporated. The former REALTOR® said that a firm handshake, smile and eye contact is critical in building a professional image and is key in creating relationships with clients. “If they tend to have a quiet demeanor make sure you don’t intimidate them or if they’re very outgoing make sure you can mirror them, so they feel there’s a connection,” said Wildermuth. Being organized and looking well-pressed is also vital to creating and maintaining a professional image, Wildermuth added. Next week in the second part of the series, Wildermuth shares tips on professional attire for client meetings.

Seventy-five hours of education is now required for appraiser trainees under new regulations created by the State Board of Certified Real Estate Appraisers.

Dan Bradley, the board’s chair, said before these regulations were enacted there was no way to regulate appraiser trainees.

“Previously these individuals were not regulated in any way and in most cases the board didn’t know who these people were,” Bradley added.

Appraiser trainees have until October 1 to complete their education and according to Bradley, this will raise the bar for the industry and protect the consumer.

“We will be able to bring disciplinary charges against trainees who don’t follow the rules of the profession,” Bradley said. The requirements for the new trainee license are on the PA Bulletin website.

Military personnel have one more year to take advantage of the federal homebuyer tax credit. Those who were serving overseas between January 2009 and May 2010 are eligible. Lucien Salvant, managing director of public affairs for the National Association of REALTORS® (NAR), said since some service members may be limited by financial reserves, REALTORS® can help by checking clients’ eligibility for a mortgage and  the tax credit before looking at houses. “The tax credit is designed to help those folks meet their down payment and monthly obligations by lessening that financial burden,” Salvant said. Service members have until April 30, 2011 to sign a sales contract and until June 30, 2011 to close on a home. Both the $8000 first-time homebuyer and $6500 move-up tax credits apply.

PAR continues its work on six legislative issues but the hottest issues are Appraisal Management Companies (AMCs) and the sprinkler mandate legislation. Derenda Updegrave, director of government affairs, said that there is broad support for the AMC legislation and when session reconvenes in the fall, she is hopeful the legislation will pass. The goal of the sprinkler legislation is to roll back the mandate for at least one year. “It’s very clear that the electorate is not pleased with the mandate and it should be a choice,” said Updegrave. REALTORS® play a big part in passing legislation. “Much of our success is due to the engagement of our REALTORS® at the grassroots level,” said Updegrave.

“It’s critical that REALTORS® are engaged and understand the issues. Our strength is in our membership,” said John DiBiase, government affairs communications director for the National Association of REALTORS® (NAR).

There are four legislative initiatives that NAR is focusing its resources on:

• Expand affordable property insurance

• Commercial mortgage market liquidity

• FHA reform and FHA loan limits

• GSE reform and GSE loan limits.

While every issue is important, DiBiase said that NAR is currently focusing its efforts on flood insurance. DiBiase added REALTORS® play a big part in getting legislation passed. “When REALTORS® engage with congressional members and remind them of how real estate is important in building a stronger economy, nothing carries more weight.”