Capital Area REALTOR - Jan/Feb2014

Capital area realtOr® • Jan/Feb 2014 i

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Official publication for the Greater Capital Area Assocation of ReAltORs® january/february 2014www.gcaar.com

Legislative Breakfast - p. 5 Press Conference - p. 4

My clients are interested in Green homes. How can I help them? ... page 12

Welcome to the issue of GCAAR’s new magazine!1st

http://www.gcaar.com

ii Capital area realtOr® • Jan/Feb 2014 Capital area realtOr® • Jan/Feb 2014 1

from the editor

Welcome to the newly-designed Capital Area REALTOR®, GCAAR’s print publication published five times per year. With this issue we introduce a completely new design taking the publication from a newspaper to a magazine format.

We’re proud to say that magazine will be printed on Forest Stewardship Council (FSC) paper which promotes the responsible management of forests worldwide. In order to use the FSC logo on printed documents, the document must have flowed through the FSC Chain of Custody from the FSC-certified forest, to a paper manufacturer, merchant, and finally to a printer that has FSC Chain-of-Custody certification.

We’re excited about the new design and we look forward to hearing from you. You can check out Capital Area REALTOR® online via GCAAR.com, so please do and please share. If you have ideas, comments, or suggestions, feel free to contact us at [email protected], and follow us on Facebook, Twitter, and LinkedIn.

Enjoy,

Bobette Banks Editor

Capital Area REALTOR® (USPS 017-467) is published five times a year by the Greater Capital Area Association of REALTORS®, 15201 Diamondback Drive, Rockville, MD 20850.

Periodicals postage paid at Silver Spring, MD. Member subscriptions account for $10 of each member’s annual dues. Annual subscriptions are available to non-members for $25. Subscription inquiries may be sent to Capital Area REALTOR® at the above address.

POSTMASTER: Send address changes to Capital Area REALTOR®, ATTN: GCAAR, 15201 Diamondback Drive, Rockville, MD 20850.

The Greater Capital Area Association of REALTORS® makes no warranties and assumes no responsibility for the accuracy of the information contained herein. The opinions expressed herein do not necessarily reflect the opinion of the officers, directors, or staff of the Greater Capital Area Association of REALTORS®.

The Greater Capital Area Association of REALTORS® accepts submissions of articles and photographs and the items become the property of the Greater Capital Area Association of REALTORS®. The publisher reserves the right of full editorial authority and to decline publication of any article not deemed proper. Deadline for submissions, including camera-ready advertising, is the first of the month prior to publication. Reprint with permission only. Reprints may be obtained by contacting the Greater Capital Area Association of REALTORS® at 301.590.2000; via fax at 301.590.2248; or send an e-mail to [email protected].

REALTOR® is a registered collective membership mark that identifies and may be used only by real estate professionals who are members of the National Association of REALTORS® and subscribe to its Code of Ethics.

Copyright© 2014 by the Greater Capital Area Association of REALTORS®.

All rights reserved.

15201 Diamondback Drive, Rockville MD 20850Phone: 301.590.2000 • Fax: 301.590.2248 • www.gcaar.com

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2 Capital area realtOr® • Jan/Feb 2014 Capital area realtOr® • Jan/Feb 2014 3

board of directors

Greg FordPresident

Suzanne Des MaraisPresident-elect

Michael McGreevyiMMediAte PAst

President

Michael MorancHieF eXecUtiVe

OFFicer

Koki AdasiDavid Bediz

Thom BrockettJamie ColeyTom DaleyDorie Glass

GCAAR Cares page 6

r e a ltOr®Ca

pital

area

january/february 2014

Peg MancusosecretArY

Tim KnoblochtreAsUrer

Capital Area REALTOR® Magazine

Jacque GrenningSally Hamidi

Gwen HendersonVicky Lobos-Kirker

Hildy PollardPat Weed

directors

ask the president

in every issue3 Ask the President

4 Association News

8 Technology

9 Meet Your

GCAAR Committees

10 NAR Director’s Report

12 Green Resources

14 Housing Statistics

22 Membership Corner/ GCAAR in the News

23 RPAC

24 Public Policy

28 Legal Hotline

Q. I’ve heard that GCAAR’s headquarters are relocating to Rockville in early 2014. I’m a DC resident and my office is located here as well. Any chance you’ll be opening up a service center more convenient to me?

-An agent in Dupont Circle

A. Thanks for your excellent question. As an association, we are constantly striving to better serve our members and we believe that new Rockville facility helps us accomplish this goal. The new location has many perks (like free parking!) that we haven’t been able to offer in our current location. Having said that, we do understand that the new location may be less convenient for some of our DC-based members.

We are currently working closely with the DC Association of REALTORS® (DCAR) to find a new location that will better serve our DC members. The new location will continue to offer all the services we currently have in our present location at 500 New Jersey Avenue, such as lockboxes, keycards, REALTOR® store, dues payment, and a meeting room. Our goal is to also have a classroom in the new space thereby making it more convenient for our DC members to attend classes and other GCAAR events.

GCAAR’s footprint reaches from upper Montgomery County on the border with Frederick County, down to the Anacostia waterfront and lower Potomac River where it meets Alexandria, and everything in between. We are constantly striving to serve all of our members throughout that footprint. We’re making great strides in that direction as we look to increase the services we offer in DC. Stay tuned to GCAAR publications and emails for updates!

On the Cover: Green Resources - My clients are interested in Green homes. How can i help them? - page 12

Bobette BanksMAnAGinG editOr

Debbie BellAssOciAte editOr

Arlene BraithwaiteAdVertisinG rePresentAtiVe

Lisa Cadigan, Cadigan CreativedesiGn & lAYOUt

features1 From the Editor

4 Greg Ford Speaks at State of the Market Press Conference

6 GCAAR Cares: Grant Recipient Spotlight

13 Expand Your Reach in 2014 with a GCAAR Sponsorship

21 Using MRIS to Enhance Your Real Estate Business

27 Quiz: What Do You Know About Home Sellers?

29 Affiliate List

association news

Greg Ford Speaks at State of the Market Press Conference2014 GCAAR President Greg Ford joined fellow association leaders at the State of the Market Press Conference held at the National Press Club on December 11.

Greg was joined by Jon Wolford, 2013 Northern Virginia Association of REALTORS® Chairman, and David Versel, Senior Research Associate, George Mason University. Greg gave an overview of the 2013 housing numbers for DC and Montgomery County, and left the audience with these takeaways:

• Sales prices are increasing

• Market is stabilizing; buyers see value

• Rental prices will continue to rise

• Montgomery County is moving toward smarter growth

David Bediz, GCAAR Board Member; GCAAR CEO Mike Moran; 2014 GCAAR President Greg Ford; 2014 President-Elect, Suzanne Des Marais;

GCAAR Board Member Koki Adasi

Jon Wolford, NVAR Chairman; David Versel, George Mason University; 2014 GCAAR President, Greg Ford

Greg being interviewed by Helen Wong of Epoch Times

Elected Officials and REALTORS® Get Together at GCAAR’S Annual Legislative BreakfastCounty Executive Isiah “Ike” Leggett and other Montgomery County local, state, and federal legislators came to GCAAR to mingle with REALTORS® at the legislative breakfast on January 6. Attendees heard first-hand what to expect from their elected officials’ legislative agendas in the next year.

Addressing the packed room were GCAAR President Greg Ford, who emphasized the growing need for government to focus on population growth and housing affordability; Ike Leggett, who reinforced the importance of innovative transportation solutions and his continued focus on improving education; and Anne Kaiser (Chief Deputy Majority Whip of the Maryland House of Delegates and Montgomery County House Delegation Chair), who discussed the valuable relationships GCAAR has developed with representatives in the General Assembly and all levels of government.

The well-attended event provided a great forum for members and guests to enjoy a delicious breakfast and learn first-hand about the most important legislative issues affecting Montgomery County’s communities.

Tax Tips Seminar Linda de Marlor, President of Tax-Masters Inc., brought her usual verve and boundless energy as she shared tax tips with a packed house on January 8.

Capital area realtOr® • Jan/Feb 2014 5

Delegate Jim Gilchrist, Delegate Charles Barkley, County Executive Ike Leggett, Delegate David Fraser-Hidalgo, Delegate Anne Kaiser,

Councilmember Hans Riemer, Councilmember Nancy Floreen, Councilmember Roger Berliner

County Executive Ike Leggett and GCAAR President Greg Ford

Delegate Anne Kaiser

Visit us soon at

is moving in March!

Look for more details on Facebook, twitter, linkedin and GCAAR.com!

15201 Diamondback Drive, Rockville MD

4 Capital area realtOr® • Jan/Feb 2014

GCAAR.com


grant recipient spotlightGCaar CareS

Featured 2013 Grant Recipient: Pathways to Housing DC Grant Amount - $1,500 Pathways to Housing DC is a local non-profit committed to ending chronic homelessness by moving individuals who are homeless and coping with serious mental illnesses, co-occurring substance abuse disorders, and/or other medical challenges, off of the streets of Washington, DC and into permanent, safe, and supportive housing. At least 9 out of every 10 individuals they place in housing stay in housing and on the path to recovery, and ultimately, to independence. Since 2004, Pathways to Housing DC has been able to successfully end homelessness and support recovery for more than 600 of the most vulnerable residents in our nation’s capital.

impact of GcAAr cares Grant: “The GCAAR Cares Grants Program has made a tremendous impact on Pathways to Housing DC,” states Pathways’ Director of Development, Hannah Zollman. In 2013, Pathways moved 79 chronically homeless individuals with serious mental illnesses and other medical challenges from the streets of Washington, DC into permanent supportive apartments. Today, these men and women (many of whom are Veterans) now have a place where they can begin to rebuild their lives and live out their dreams. GCAAR’s generous support will go to help cover those critical expenses not covered by government resources (such as furniture and household items), which are necessary to transform a place into a home.

russell’s story: Russell grew up in Southeast DC before becoming homeless more than three decades ago, struggling with schizophrenia. He spent the last ten years sleeping on a park bench downtown. This fall, with assistance from his Pathways team, Russell moved off the streets and into a permanent apartment, where he is able to experience the wonderful independence and empowerment that comes with having a safe, personal space to call his own. Thanks to GCAAR, Pathways was able to provide Russell with a place to call home.

contact: For more information on Pathways to Housing DC, please contact Hannah Zollman at [email protected] or (202) 529-2972 ext. 130.



Your Professional Network (YPN)

The leaders of the future are building their networks today. GCAAR’s YPN helps them do it. The committee selects topics, speakers, and locations for quarterly events and solicits and se-cures sponsors. The committee has monthly call-meetings and quarterly meetings.

2014 RosterThomas Castagnola, ChairJessica Evans, Vice ChairSean AdderlyMichael AltobelliBriana AyalaKevin BrunellSean ForschlerJustin LevitchDanai MattisonRahkiya Reid

GCAAR Public Policy Committee

The GCAAR Public Policy Committee works with staff to serve the public policy interests of REALTORS® in Mont-gomery County, Maryland and surrounding jurisdictions. It reviews, discusses and recommends support for or against proposed regulations and legislation related to the real estate business. Working on both government and grassroots levels, the GCAAR Public Policy Committee is a key voice for REAL-TOR® issues. The committee meets monthly.

L-R: Staff Liaison, Katalin Peter; Chair, Elley Kott; Vice Chair, Dick Stoner; Staff Liaison, Meredith Weisel

2014 RosterElley Kott, ChairRichard Stoner, Vice ChairDeborah BenkertLisa BosseJan BritoBonnie CasperLiliana ChedrauyGregory CogginsSuzanne FeinsteinScott GoldbergHarold HugginsThomas KennedyErnest KnightTim Knobloch

Andrea LongAnthony MancusoPeg MancusoPhilip RaskinPramedai ReedMargaret RegnierAndres SerafiniMonica SharmaJacqueline SimonJohn SullivanMarlene TrimblePatrick WeedHuijuan Xie

as of 2/10/2014

YPN Member Danai Mattison and 2014 GCAAR Immediate Past President Michael McGreevy

technology

FotoNotes Provides A Lot More Than Photos and NotesIf property management is part of your business strategy, FotoNotes may be worth looking into.

FotoNotes is a mobile-first solution for real estate field services, including property and facilities management, property preservation, broker price opinions (BPOs), construction estimates, and more. It’s a great tool to collect and share real estate information — photos, voice notes, text, and other information in the field — and differentiate the average real estate agent from the tech savvy one. While FotoNotes is currently targeting property managers, an individual REALTOR® could use the application in several ways:

• To document client tours of a property, taking photos, captur-ing note and issues, and giving clients this information imme-diately after the tour.

• Track repairs and improvements that might need to be ad-dressed prior to the sale of a property.

• To collaborate with a client and potential contractors on home improvements during the sales process – to share ideas and get cost estimates for carpentry, painting, roofing, and other re-modeling and construction services.

• To perform BPOs (broker price opinions) faster and more thor-oughly.

• To quickly capture photos, location, and other information about a property and have it organized in a form (data struc-ture) that they define.

By Steve pacinelli, tech Savvy agent

• To highlight special features or details in a house and share them with clients.

• If they’re also property managers, to issue work orders for maintenance and property preservation.

As for the nuts-and-bolts, FotoNotes has four components:

1. Mobile application. For iPhones/iPads, it’s available today from iTunes. For Android devices, it’s coming later this fall.

2. Web application that allows users to manage and share all information on the web.

3. Web-based template configurator that a non-technical administrator can use to create mobile templates. The templates specify the data to be collected and the workflow for the tasks performed in the field.

4. Application programming interface (API) to easily integrate mobile field data with back-end office systems.

To learn more, visit FotoNotes.com

meet your GCAAR committees

Kathleen RollinsRob RothsteinJacob RyonDana ScanlonMarteina ScottAndres SerafiniKenneth StorckAbi Swington-StokesPatrick Tangneyas of 2/10/2014

DCAR Public Policy CommitteeThe DCAR Public Policy Committee is managed by the state level District of Columbia Association of REALTORS®. For more information, contact Katalin Peter at [email protected].


FotoNotes.com


Capital area realtOr® • Jan/Feb 2014 1110 Capital area realtOr® • Jan/Feb 2014

director’s reportNar

NAR Priorities for 20142014 National Association of REALTORS® (NAR) President Steve Brown has outlined a number of priorities in 2014. These include:• Delaying flood insurance rate changes

• Monitoring overly tight credit standards and the impact of caps on points and fees

• Protecting the mortgage interest deduction (MID) and other tax incentives

• Supporting REALTOR® party candidates at the federal, state, and local levels

For more information on these and other issues, visit: Realtor.org or Realtoractioncenter.org (for public policy issues).

Qualified Mortgage UpdateOn Jan. 14, 2014, NAR submitted a statement for the record to the U.S. House Financial Services Subcommittee on Financial Institutions and Consumer Credit hearing on “How Prospective and Current Homeowners Will Be Harmed by the CFPB’s Qualified Mortgage Rule.” The Dodd-Frank Wall Street Reform Act established the Qualified Mortgage (QM) as the primary means for mortgage lenders to satisfy its “ability-to-repay” requirements.

In the statement, NAR pointed out that it has been generally supportive of the Consumer Financial Protection Bureau’s (CFPB) efforts to craft a QM rule that is not unduly restrictive and provides a safe harbor for lenders making QM loans.

NAR has a policy supporting the idea that lenders measure a consumer’s ability to repay a loan. For this reason NAR strongly supports the Ability-to-Repay (ATR) rule in general but has significant concerns with some elements of the QM portion of the rule, which includes the 3 percent cap on points and fees as well as the 43 percent Debt-to-Income (DTI) limit. NAR also believes it is critical for policymakers to construct a QRM rule that mirrors the newly implemented QM rule.

Greg Ford, 2014 GCaar president

GCAAR Featured in Power of R Campaign

NAR has launched its Power of R campaign to demonstrate how REALTORS® advocate for the real estate industry and the nation’s 75 million property owners -- in the community, at city hall, at the state house, and on Capitol Hill. Standing one million strong, REALTORS® help build vibrant communities; they help people achieve the American Dream of home ownership; and they champion accurate, reliable data as part of a real estate transaction.

NAR is encouraging REALTORS® to use the #PowerofR to share all the good we do with others in the industry and with consumers. GCAAR was recently recognized in REALTOR® Magazine for demonstrating the Power of R through the work being done by our Community Service Committee, GCAAR Cares. Get involved and show us how you are demonstrating the Power of R!

How can you get involved?• Share your stories and photos on Twitter, Facebook, and Flickr

using the hashtag #PowerofR.

• Update your Facebook cover photo with one of our pre-made banners.

What kind of stories and photos demonstrate the #PowerofR?• Your advocacy work with local, state, or national officials

• Your volunteer activities that support and improve your com-munity

• Your work to educate consumers and young people about re-sponsible property ownership

Learn more at realtor.org/topics/powerofr

The National Association of REALTORS® (NAR) introduced several important revisions in ethics and professionalism for 2014.

Code of EthicsBelow are updates to the 2014 Code of Ethics that every REALTOR® must know.

Standard of Practice 3-2 Any change in compensation offered for cooperative services must be communicated to the other REALTOR® prior to the time that REALTOR® submits an offer to purchase/lease the property. After a REALTOR® has submitted and offer to purchase or lease property, the listing broker may not attempt to unilaterally modify the offered compensation with respect to that cooperative transaction. (Amended 1/14)

Article 10REALTORS® shall not deny equal professional services to any person for reasons of race, color, religion, sex, handicap, familial status, national origin, sexual orientation, or gender identity. REALTORS® shall not be parties to any plan or agreement to discriminate against a person or persons on the basis of race, color, religion, sex, handicap, familial status, national origin, sexual orientation, or gender identity. (Amended 1/14)

REALTORS®, in their real estate employment practices, shall not discriminate against any person or persons on the basis of race, color, religion, sex, handicap, familial status, national origin, sexual orientation, or gender identity. (Amended 1/14)

Standard of Practice 10-3REALTORS® shall not print, display or circulate any statement or advertisement with respect to selling or renting of a property that indicates any preference, limitations or discrimination based on race, color, religion, sex, handicap, familial status, national origin, sexual orientation, or gender identity. (Adopted 1/94, Renumbered 1/05 and 1/06, Amended 1/14)

Standard of Practice 11-1When REALTORS® prepare opinions of real property value or price they must:

1. be knowledgeable about the type of property being valued,

2. have access to the information and resources necessary to formulate an accurate opinion, and

3. be familiar with the area where the subject property is located unless lack of any of these is disclosed to the party requesting the opinion in advance.

When an opinion of value or price is prepared other than in pursuit of a listing or to assist a potential purchaser in formulating a purchase offer, the opinion shall include the following unless the party requesting the opinion requires a specific type of report or different data set:

1. identification of the subject property

2. date prepared

3. defined value or price

4. limiting conditions, including statements of purpose(s) and intended user(s)

5. any present or contemplated interest, including the pos-sibility of representing the seller/landlord or buyers/ten-ants

6. basis for the opinion, including applicable market data

7. if the opinion is not an appraisal, a statement to that ef-fect

8. disclosure of whether and when a physical inspection of the property’s exterior was conducted

9. disclosure of whether and when a physical inspection of the property’s interior was conducte

10. disclosure of whether the REALTOR® has any conflicts of interest (Amended 1/14)

Pathways to ProfessionalismAnother NAR document entitled Pathways to Professionalism includes a new professional courtesy under “Respect for Property” which states:

“Respect sellers’ instructions about photographing or videographing their properties’ interiors or exteriors”

You can access the Code of Ethics and Pathways to Professionalism documents in the Code of Ethics section of the NAR website (realtor.org). Here you will find a wealth of information and resources on ethics and professionalism. The articles and videos are valuable tools for ethics training in office meetings. Every REALTOR® should bookmark this section of the website for quick reference.

The end of 2013 marked the close of the NAR Code of Ethics Centennial celebration. Let us look forward to next 100 years of excellence in real estate through ethics and professionalism.

Nar ethics and professionalism Updates

Scan the QR code to read the NAR Statement.

Realtor.org

Realtoractioncenter.org

realtor.org/topics/powerofr

realtor.org


green resources

Do you have clients interested in buying or selling a “Green” home? You can be a helpful resource as a REALTOR®!

We know the concept of “going Green” can be intimidating if you are not familiar with it. Get the basics down and you will be well on your way to understanding environmental consciousness in real estate.

What do you mean by “Green” home or “Green” features? Energy efficiency, health, comfort, and environmental stewardship are what many people think of when they hear about a Green home. There are different ways of defining Green; national and regional standards exist and can be applied to new or existing homes (e.g., Energy Star Certified and LEED). Popular Green features include:

• Double-pane windows

• Rain water catchment systems (e.g., rain gardens, rain barrels)

• Organic paints, furnishings, and carpets

• Recycled content materials (e.g., glass or paper counter tops)

• Dual-flush toilets

• High-efficiency heating/cooling systems

I often hear the phrase “Green” REALTOR®--what is that? As with everything Green, there is no one definition for a Green REALTOR®, but many REALTORS® are concerned about environmental issues related to real estate, and have made the commitment to educate themselves to be an important resource. You can even achieve a nationally recognized “Green” real estate designation (e.g., EcoBroker and NAR GREEN).

My clients are interested in Green homes. How can I help them? As a REALTOR®, you can help consumers with purchasing, selling, or improving Green properties by helping them understand the potential benefits and implications of Green improvements and/or features in real estate. You may be able to discuss, or lead them to reliable and objective resources about issues such as:

Energy efficiency Water conservation – inside and out

Indoor air quality Landscaping with native species

Recycled-content building materials Walkability & community amenities

How can I learn more?Keep a close eye out for Green education opportunities at GCAAR in your emails. We also send out useful Green resource guides to keep handy, along with information about Green events in the community.


sponsorship

Expand Your Reach in 2014 With a GCAAR Sponsorship The Greater Capital Area Association of REALTORS® (GCAAR) represents almost 9,000 real estate agents in Maryland and the District of Columbia. GCAAR is dedicated to the advancement of the residential real estate industry and strives to meet the needs of its broad-based membership. GCAAR is looking for companies like yours who are looking to further their name recognition within our membership through sponsorship opportunities.

We offer your company direct access to the Mid-Atlantic’s leading REALTORS® who have discretionary funds for a wide array of products and services. GCAAR sponsorships are the perfect complement to any strategic marketing plan, as they support your other promotional efforts, help you gain awareness, and also target specific audiences at a variety of events. We are proud of the sponsorship packages that we maintain, and we are always adding new events and features to further enhance your experience with GCAAR.

GCAAR has two categories of events for our members – Signature Events and Education/Networking Events.

Signature EventsOur Signature Events encompass a full range of large-scale events that cater to the majority of our members. These events provide large reach and high visibility among leaders in the Mid-Atlantic Region. These events include REALTOR® Fest, our annual conference and trade show, held in July and the GCAAR Holiday Party, Installation, and Annual Meeting held in December.

Education/Networking EventsOur Education/Networking Events offer more focused events that draw targeted groups of our membership. These events allow you to direct your dollars to target markets of members such as brokers, managers, rookies, and members of Your Professional Network (YPN). The events in this category (held throughout the year) include lunch forums, non-CE classes, workshops, networking breakfasts, the GCAAR New Member Orientation, happy hours, a bowling event and new for 2014 – a picnic.

Our packages are designed with a controlled fee structure so that you can easily integrate them into your marketing budget for the

year.

Make GCAAR sponsorships part of your marketing plan. It’s more than just a sponsorship. It’s a good investment in your company’s future.

To learn more about what opportunities exist, please contact Mark Glazer, Director of Programs at [email protected] or 301-590-8787, or Hakeema Jones, Meetings & Events Manager, at [email protected] or 301-590-8793.




Maryland OverviewYear-to-date through November, the Maryland housing market continued to show very well. Property sales totaled 56,219 units, and they jumped 13% from the first eleven months of 2012. The average price of $307,723 rose 4.7% from the comparable 2012 figure; and, the median price of $260,486 was up 5.6%. The price rises are slightly below the rates through the first eleven months. At the end of November, the active inventory was 25,779 units for a 5.8 months supply. Pendings for December closings totaled 5,347, rising 4% from 2012.

For the month of November sales totaled 4,408 homes, but were down 2.7% from a year before. Statewide, the November average home price came in at $315,148, 8% above a year before. However, the median price of $257,677 rose only about 4.7%.

Montgomery County Sales Market The total December unit sales volume came in at 832 properties, rising over 10% from a year ago. The sold dollar volume totaled $418,404,055, jumping over 14.5% from a year before. The average sold price came in at $502,889 – edging up 3.6%; and, the median price of $386,000 rose 7.2% from a year ago. Properties sold in December turned over more quickly than earlier in the year. Average days on the market totaled 53 -- 13% below those of the previous December. The seller’s market continued as the ratio of average sales price to average original listing price was 95.4%, up almost 1% from last year. December active listings totaled 1,715 properties, and this level was about 10% above that of December 2012.

December Single-Family HomesBy the end of 2013, year-to-date settlements and contracts rose significantly over those of 2012. December year-to-date single-family settlements (8,661) jumped 11.4% and year-to-date contracts (8,882) moved up 9% from a year before. The monthly figures rose at slower paces. Monthly settlements (622) were up 8.4% from a year before, but new contracts for the month (483) edged up less than 1%.

The inventory trend, as expected, slipped a bit from November but was still above the levels of last December through February of 2012. At the end of the year, total single-family active listings came in at 1,330 properties -- 8% above those of last December. And, the 396 monthly new listings in December edged up 2% above the level of a year ago. However, at the December contracts pace, there still was only about a 2.8 months supply of properties.

The year ended with price performance significantly up from last year. Given the tight inventory, single-family prices continued to move up at near double-digit rates. Year-end, the average sales price was $573,281, and the median was $460,000. In 2012, the average single-family home sold for $529,026 and the median priced property cost $425,000. Accordingly, the average and median prices jumped 8.4% and 8.2%, respectively, from last year. These are great annual appreciation rates anyway you cut it.

December Condominiums and CooperativesThrough December there were 2,737 condo/coop settled sales -- a leap of about 20% from a year ago. And, the month ended on a high level as well -- 209 settlements were up almost 14% from December 2012. Similarly, year-to-date contracts through December (2,792) bumped-up 15% from a year before. However, new December contracts (159) slipped almost 2% from a year before.

Ending inventory substantially exceeded the levels of 2012. December condo/coop active listings (419) came in at 21% above the previous December and were higher than in the first three months of the year. However, December new listings (151) slipped about 2% below the 2012 monthly figure. At the December contracts pace, there was about a 2.6-months supply of properties. This ratio is higher than in the late summer; however, inventory is still tight compared to historical norms.

The year’s condo/coop market also showed very good price appreciation, although not quite as high as for the single-family market. Both average and median prices rose substantially. For all of 2012, the average and median sales prices were $250,738 and $208,225, respectively. For 2013, the average price of $269,950 was up almost 7.7% from 2012; and, the median price of $220,000 was over 5.6% above the 2012 median. Again, the pent-up demand and tight inventory have been helped to make it a sellers market.

Washington, DC Sales MarketThe District’s unit sales pace stayed strong through the late fall. In December, it totaled 675 properties, rising 21.4% from a year ago. And, the sold dollar volume was $393,677,058 – jumping almost 15.6% from the previous December. The average sold price came in at $583,225; however, it was down 4.8% from December 2012. On the other hand, the median sold price was $479,900 -- up almost 5.5%. Furthermore, the average sales price to average original listing price ratio increased relative to last year. It was up 1.3% to hit 96.7%. Inventory was up as well. December inventory included 1,060 total actives and that figure rose 5% from a year ago.

December Single-Family HomesThe Washington, DC single-family sales market significantly improved over 2012. Year-to-date settlements (4,089) rose 9% and new settlements in December (355) jumped almost 17% from the same month in 2012. In parallel, year-to-date contracts (4,243) moved up about 8%; however, December single-family contracts (257) slipped 1.5% from a year before.

housing statisticsMONtGOMerY COUNtY & DC

by Fred Flick, PhD, Consultant/Housing Economist

... continued, page 16

properties.The

properties.The


The District’s December single-family inventory exceeded the levels of a year ago, however it was down significantly from November. December total active listings totaled 534 properties—up only 1.5% above a year ago. However, new single-family listings for the month (238) bounced 16% from a year before.

Prices ended the year on a high note relatively to 2012. Through December, the average single-family home cost $711,905 with the median at $599,900. Compared to 2012 these prices yielded appreciation rates of 8.6% and 13.2%, respectively. In 2012, single-family average prices ($655,645) had risen 11% and median prices ($530,000) jumped almost 18% compared to the figures for 2011.

December Condominiums and CooperativesThe DC condominium and cooperative market, like the single-family market, also had a strong finish. Year-to-date December settlements (3,795) leaped almost 21% and contracts (3,848) jumped 16% from a year ago. Moreover, monthly settlements of 318 properties vaulted 23% from a year before. On the other hand, December monthly contracts (216) actually declined almost 3% from a year before.

December condo/coop inventory was down a bit from November, but was still above the levels of the months in the first quarter of 2013. For December, 554 total actives were about 12% above those of the previous December. And, the 233 new listings for December were almost 46% above the level of a year before. Obviously, the strong price appreciation in 2013 helped bring on the inventory. However, at the December contracts pace, there still was only a 2.6 months supply of properties. This was an improved rate over the year, but way below historical norms.

Through the end of the year, condo/coop prices averaged $454,600 and they rose about 5.9% from the 2012 average. Through December, the median price of $408,500 bumped-up 7.5% compared to the $380,000 figure for 2012. This continued the recent trend of lower priced units seeing higher appreciation rates.

Housing Industry ProductionDecember new privately owned home starts totaled 999,000 units at a seasonally adjusted and annualized rate (‘saar’). They showed a bit of a flattening trend as they were almost 10% below the November rate, and only 1.6% above the December 2012 rate. The 667,000 (saar) single-family home starts fell 7% below November, but came in about 8% above the December 2012 rate. Tracking future building, December total private housing permits (986,000 saar) slipped 3% from November. However, they rose almost 5% above the December 2012 rate. Accordingly, single-family permits (610,000 saar) were about 5% below the November, but still came in 4.5% above December 2012.

New single-family home sales in November totaled 464,000 units (saar). This figure was 2% below the revised October rate, but 16.6% above the estimate for November 2012. Furthermore, the national new houses for sale inventory (167,000 saar) tightened to a 4.3-months supply. Consequently, price performance improved from earlier in the year. The average price of $340,300 was 17% above a year before; and, the $270,900 median jumped almost 11%.

Total existing home resales through November (most recent available) totaled 4.9 million units (saar). The monthly figure slipped 4% below the October sales rate and 1% below the rate for November 2012. Nevertheless, the median price of $196,300 jumped over 9% from a year before with the $244,500 average rising 7%. At the end of November there was about a 2-million unit inventory (saar), which represented a 5-month supply of homes. This inventory was down slightly from October, but 5% above the November 2012 level.

For the single-family resales market, November sales (4.32 million, saar) declined 3.8% from October and were about 1% below the pace of November 2012. However, the single-family median price ($196,200) rose over 9% and the average ($244,300) moved up over 7% from a year ago. In the existing condo/coop market,

sales units (580,000 saar) slipped almost 8% from October and 3% from November 2012. Nevertheless, the national condo/coop median price came in at $197,400 – bouncing up 10% from a year before. The average price ($246,000) rose almost 8%.

Economic Growth and JobsThe Bureau of Economic Analysis final estimate for the 2013 third quarter real GDP growth showed an increase of just over 4%, significantly higher than the earlier estimates. The second quarter of 2013 came in at 2.5%. In general, the economy has been hovering around a 2.5% average real growth rate over the past three years. Many forecasters estimate the fourth quarter of 2012 will come in around 4%. This suggests that 2013 will be better than most thought and that 2014 has a chance for even stronger growth. Economic forecasting is a hazardous occupation. As far as the world economy is concerned, it is expected that China’s growth rate will slow and Europe is just starting to get back on its feet. The U.S. and South America will become the major engines for world economic growth.

The fall retail season actually turned out to be better than expected, boosting hopes for the economy going into 2014. Retail sales gained 0.2% in December and excluding autos, were up 0.7%. These indicated strong consumer demand responding to a stronger economy. Consumer spending makes up over two-thirds of GDP. However, retail prices are still relatively flat and bottom lines are tight. Major retailers have been lowering profit forecasts for the last quarter.

On the other hand, the December jobs report was a major disappointment and contra-indicated other good economic news. Nonfarm payroll employment increased by only 74,000 new jobs, around 200,000 are considered good. The bad weather hitting most of the country may have been a factor in causing a smaller job count. Consequently, some analysts think the bad jobs number could be revised upward in early 2014. The household survey for the unemployment rate came in with a 6.7% number; however, analysts suspect many job seekers are giving up looking or retiring. The workforce still has significant numbers of long-term unemployed and part-time workers. Even if growth accelerates in 2014, it will take more years of job growth to get the unemployment rate down to the 5% to 6% range.

Monetary Policy, Interest Rates and InflationThe confirmation of Janet Yellen to the Fed chairmanship, effective February 1, will not likely alter the recent policy trends. Already the Fed cut Treasury bond and mortgage bond purchases by $5 billion each in December, buying only $75 billion. The economy

housing statistics

... continued, page 19


housing statisticshas come back stronger than expected and the Fed decided to start “tapering” at the end of last year. In theory, there should be some pullback in stock and bond prices – meaning increases in interest rates. However, other factors are affecting both stocks and bonds, as the stock market still is close to record levels. The taper could be tapered if employment data does not improve. At the end of January, the Fed will decide whether it will cut another $10 billion. The Fed still is holding short-term interest rates near zero and is not likely to move away from that position for a while.

Mortgage Interest RatesThe Freddie Mac survey for the middle of January showed that average mortgage interest rates have pulled back a few basis points from the beginning of the year. In these recent results, the 30-year fixed-rate mortgage averaged 4.41%, while 1-year adjustables (ARMs) averaged 2.56%. Fifteen-year loans came in at 3.45% and 5/1-yr ARMs were affordable at 3.10%.

Consumer Prices and Energy CostsThe December all-items Consumer Price Index increased 1.5% over the past year – about one-half of a percentage point under the Fed’s desired rate of annual inflation. On a monthly basis, the overall CPI index increased by 0.3% from November to December. When food and energy are taken out of the December index, the annualized “core” inflation still was only at a 1.7% rate.

Examining the key components of the index over the year past: food prices edged up 1.1%; housing shelter costs (mostly rents) rose 2.5%; and, apparel prices rose 0.6%. While medical care services rose 2.5%, medical care commodities rose only 0.3% over the year. Also, energy commodities dropped 8% -- gasoline slipped 1% and fuel oil fell 1.8%. However, energy services (electricity and natural gas) increased 2.4%. In the latter half of 2012, declines in energy costs and consumer prices helped consumers afford other goods and services.

The Bottom LineThe 2013 markets maintained strong momentum through the fall and finished on a high note. Both property types and both jurisdictions experienced high sales rates and price appreciation. Nevertheless, low inventory continues to be a problem. While the problem has improved, a bigger selection of properties might net even bigger sales volumes in 2014.

The political scene in Washington improved at the end of the year. The recently passed budget bills will hopefully cut the money wrangling and also work to limit some of the sequester impacts. Hopefully we will avoid a big March debt ceiling fight. Accordingly the overall national outlook is positive and the local outlook seems even better. Analysts are expecting to see improved business investment in 2014. The metropolitan area should be a beneficiary of economic growth and experience a solid rate of increase in real estate sales and prices.


Using Market Data to Enhance Your Real Estate Business

3 Sources for timely, accurate local Data that Sets You apart

In a home sales transaction, both sides want to walk away a winner. The sellers want top dollar for their homes, while the buyers

want a great deal. This tug-of-war can take its toll on a real estate professional, especially for those who have worked on both sides.

How do real estate professionals keep their client’s expectations realistic? With data, of course! Using data for your local housing market helps support your recommendations for list prices and buyer offers. Whether its contract negotiations or impressing new clients with your local market knowledge, MRIS is here to help you showcase your expertise.

As an MRIS customer, you have timely local market data at your fingertips that you can use when meeting with potential clients who are ready to sell or counseling buyers who want to make an offer on their dream home.

1. Matrix statistics – Did you know that when you perform a search in Matrix, you have the ability to pull price and status statistics right from the Matrix Button Bar? After you run a search, select any (or all) listings and click the “Stats” button to create a report of what’s going on in your client’s desired area.

2. rBi Market statistics (Free) – Use RealEstate Business Intelligence (RBI) to bulk up your content for listing presentations and/or website. You can get basic data for your ZIP code or county from rbintel.com. This includes a Detailed Report, which is a spreadsheet showing trends broken out by property type and price range. Also, take advantage of the embeddable MarketWatch region videos. Place them on your blog or website and they will automatically update on a monthly basis.

3. rbieXPert (Subscription) – Take your statistical knowledge to a deeper level with an rbiEXPERT subscription. Impress your clients with powerful data analysis via interactive charts and market gauges for any ZIP code. In a rush? Print out the Local Market Insight report relevant to your customer’s property type – the infographics and market narrative will provide a terrific starting point for your discussion. The reports automatically include your name and contact info, so leave a stack of them at your next open house.

Don’t underestimate the power of numbers when it comes to your business. Start using local market data in your listing presentations and marketing campaigns today!

Capital Area REALTOR® Magazine readers can enjoy a special promotion on rbiEXPERT through February 28. Sign up for a year of rbiEXPERT with promo code GCAAR14 and get three months FREE. With this offer, you pay only $149.91 – 25% off the regular yearly price of $199.88. Discount applies to first year only - regular fee applies at renewal.

rbintel.com


Need GCAAR Receipts for Tax Purposes?Please email [email protected], and let us know which year(s) you need, and where to send them (i.e., mail, fax, and/or e-mail). For SentriLock receipts, please call 877-736-8745. For MRIS receipts, please call 301-838-7100.

REALTOR® Insurance BenefitsThe National Association of REALTORS® (NAR) offers many REALTOR® insurance benefits such as:

REALTORS® Core Health Insurance provided by SASid and United States Fire Insurance Company in partnership with NAR.• Access to exclusive limited medical insurance rates and plans

for NAR members between the ages of 18 and 65.

• Plans start as low as $70.69 per month

• Next-day coverage is available

For more information, visit www.REALTORSCoreHealthInsurance.com or call 877-267-3752.

membership corner

REALTORS® Dental Insurance provided by SASid and Ameri-tas in partnership with NAR.• Exclusively for NAR members and their families

• Plans include coverage for preventive, basic, and major dental expenses

• Most plans include extra benefits such as orthodontia, profes-sional whitening, and more.

For more information, visit www.REALTORSDentalInsurance.com or call 877-433-5845.

Drug Card America provided by SASid to NAR members.• Free discount prescription card (60% on generic prescriptions,

and up to 15% on name brand prescriptions)

• Card is activated instantly upon signing up

• Accepted at over 60,000 pharmacies nationwide (including CVS, Walmart, Target, Rite Aid, and more)

For more information, visit www.drugcardamerica.com/NAR or call 877-267-3752.

GCAAR in the news

Michael McGreevy, 2013 GCAAR President

GCAAR ReAltoRs® Care!

“Thank you, GCAAR members! You continue to serve our communities with dedication, commitment, and diligence.”

Greater Capital area assoCiation of realtors®

www.gcaar.com (301) 590-2000

REALTORS® support the 4th Annual GCAAR Cares Silent Auction, which helps fund grants to nonprofits in Montgomery County.

REALTOR® donations to organizations

like The Dwelling Place provide twin beds

for families in transitional housing.Each year, REALTORS® support the Affordable Housing Conference of Montgomery County by sponsoring an essay contest that awards closing costs to the essay winner.

REALTORS® volunteer at Rebuilding Together®

to repair a Montgomery County home. More than

30 volunteers participated in the 2013 project,

marking the ninth consecutive year GCAAR has

partnered with Rebuilding Together®.

Here are some of the local organizations served by ReAlToRs® in the past year:

• AffordableHousingConferenceofMontgomeryCounty• CalvaryWomen’sServices• HopeandaHome• NationalCenterforChildren&Families

two-time Winner of the Maryland Association

of ReAltoRs®special Projects Award

Bonnie CasperLong & Foster Real Estate, Inc.2013 GCAAR REALTOR® of the Year

P. Joy Siegel, Esq.Settlement Ink

2013 GCAAR Affiliate of the Year

Michael FowlerTTR Sotheby’s International Realty2013 GCAAR Rookie of the Year

Distinguished Award Winners Ads January 22, 2014

Thank You REALTORS® Ads - December 11, 2013Gazette and Current Newspapers

Federal Cutbacks Show Need to Remake Local Economy Sun Gazette December 19, 2013 - GCAAR mentioned

N.Va. Real Estate Market Solid Despite Inventory Woes Sun Gazette December 19, 2013 - GCAAR mentioned


RPACYour Voice Counts

Bonnie Casper, 2014 political and Campaign affairs Committee Chair

Now more than ever, it is critical for REALTORS® to come together and speak with one voice about the stability a sound and dynamic real estate market brings to our communities.

From city hall to the state house to the U.S. Capitol, our elected officials are making decisions that have a huge impact on the bottom line of REALTORS® and their customers.

2014 is an election year in Maryland, and your Political and Campaign Affairs Committee will be interviewing county candidates to determine whom they will endorse.

Your DC REALTORS® Political Action Committee (RPAC) Trustees are also busy interviewing candidates for Mayor and several City Council seats.

Our State Associations will be working closely with the local associations to help encourage investment in the REALTOR® Party. GCAAR’s fair share goal is almost $130,000 for the two jurisdictions. Stay tuned for some fun opportunities to get involved!

RPAC is your ‘political E&O insurance’

Join with thousands of your fellow REALTORS® by making your

investment today! You can invest online at gcaar.com or send your check made payable to RPAC to our offices at

15201 Diamondback Drive, Rockville, MD 20850.

Golden “R”Bonnie CasperCarole Maclure

Crystal “R”Jamie ColeyJill Pogach MichaelsRandy RothsteinChristopher Suranna

Sterling “R”Koki AdasiThomas DaleySuzanne Des MaraisJames DowningGreg FordHarold HugginsAdrian HunningsAngela JonesTim KnoblochPeg MancusoShelly MurrayFrank Pietranton, Jr.Jennifer SmiraPatrick WeedEdward Wood

Capital Club ($250-$999)Briana AyalaWendy BannerFrederic BatesDavid BedizThomas BrockettNathan CarnesThomas CastagnolaLori ConnorChristopher DarbyAnthony DeVolJeffrey GanzAndrea GausDorie GlassScott GoldbergJacqueline Grenning

Sally HamidiGwen HendersonColin JohnsonEllen KatzAnthony MancusoKevin McDuffieThomas MuldoonVittorio MuzzattiAllan PrigalBonnie Roberts-BurkeR. Bradley RunyanSusan SanfordMarie ShannonP. Joy Siegel

Thank You RPAC Investors

Make an investment in rpaC

(as of Jan. 20, 2014)

RealtorParty

®


www.REALTORSCoreHealthInsurance.com

www.REALTORSDentalInsurance.com

www.REALTORSDentalInsurance.com

www.drugcardamerica.com/NAR

N.Va

gcaar.com

public policy

District of ColumbiaREALTORS® Testify on Radon & Mold DisclosuresGCAAR and DCAR recently testified on legislation that would: 1) require sellers to make additional radon disclosures to buyers, and; 2) require property owners to disclose information about mold to tenants. We emphasized how comprehensive disclosures are already included in standard contracts, and any unclear disclosure requirements could lead to confusion. We urged the Council to remove language requiring disclosures where there is no known information about the presence of radon or mold.

DCAR Succeeds in Suppressing Proposals to Raise Recordation and Transfer TaxesAfter over a year of presentations and deliberations, the DC Tax Revision Commission released its final recommendations. In a big win for the REALTOR® Party, the Commission’s final report dismissed policy options to raise recordation and transfer taxes in the District. DCAR advocated heavily on this issue contributing research, testimony, grassroots outreach, and letters to oppose increases.

2014 LEGISLATIVE PRIORITIESHomeowner and Condo Association Disclosures and FeesGCAAR and MAR support making homeowner and condo association laws more uniform across the state, particularly regarding rescission rights, disclosure content, and timing. REALTORS® also support making the fees associated with resale packets commensurate with the cost of preparing the information.

Rental Security Deposit RatesGCAAR and MAR support legislation to reduce the 3% interest rate mandated for rental security deposits. It has been many years since anyone has received 3% interest on saving and checking accounts – property owners should not have to come out of pocket to pay back a renter’s security deposit.

Eminent DomainEminent domain authority gives government the right to take private property for public purposes as long as just compensation is paid to the private property owner. A number of cities are exploring using eminent domain to condemn private mortgages—allowing a homeowner to refinance into a new mortgage product. MAR strongly opposes this new use, which legal experts believe is unconstitutional.


REALTORS® can expect to see the debate over these issues continue at the Council.

Lower Property Taxes on the HorizonThe DC Council passed a bill that will seriously reduce residential property taxes for certain District homeowners: it exempts low- and moderate-income homeowners ages 75 or older who have lived in the city for at least 15 consecutive years from all property taxes. The Council is also considering legislation to cap the yearly increase in a homeowner’s property tax bill at 5% (currently capped at 10%), even if the home’s market value increases more than that. Legislation to give a property tax exemption for disabled veterans was also recently introduced.

For details and information about effective dates, email [email protected].

Maryland General Assembly The Maryland General Assembly reconvened January 8 and GCAAR is working diligently with MAR to address the legislative issues important to the real estate community.

on the HillIn 2013, NAR focused

its advocacy on creat-ing a thriving real estate

market. We made headway on keeping down-payment requirements reasonable and defending flood insurance. With a new year ahead, we have a great deal of work to do. As always we need every-one’s help in responding to Calls For Action and investing in our advocacy efforts!

Other important recommendations released include:

• Creating a lower tax bracket for middle-income residents

• Raising DC’s standard de-duction and personal ex-emption to the federal levels

• Phasing out personal exemp-tions for high-income earn-ers

• Eliminating the low income tax credit, the DC employee first-time homebuyer credit, the deduction for long-term care insurance, and the de-duction for DC and federal government retiree pensions

• Lowering business franchise taxes and exempting invest-ment funds from the unin-corporated business fran-chise tax

• Raising the estate tax thresh-old to $5.25 million (federal level)

• Raising sales tax rate to 6% and expanding the sales tax to more services (not includ-ing real estate commissions)

• Levying a local services fee on employers with over four employees every quarter

All Tax Revision Commission resources, including DCAR advocacy materials, are available at http://www.dctaxrevisioncommission.org/.

Pit Bulls and Landlord LiabilityDue to a Maryland Court of Appeals decision in 2012, landlords are currently held to the highest level of legal liability when a tenant’s pit bull attacks a person. REALTORS® strongly support legislation to return the law to the prior rule: only negligent landlords face legal liability.

Growth and the EnvironmentMaryland is considering a regulation that would require certain home builders to account for added pollution with extremely high fees. MAR is concerned that new regulations could undermine housing affordability.

Stormwater FeeGCAAR and MAR oppose any increase of the stormwater fee for residential and commercial real estate.

Budget and TransportationIn recent years, several measures have been enacted to address transportation financing needs. State and county governments need to continue to fund infrastructure needs, including the Corridor Cities Transit Way and a Rapid Transit System for Montgomery County. GCAAR supports legislation to protect funding for these vital projects.

2014 Federal Legislative & Regulatory AgendaQualified Mortgage (QM) rule

REALTORS® have achieved significant victories in the Consumer Financial Protection Bureau’s (CFPB) QM rule - a law that ensures lenders make loans to borrowers who have the ability to repay. With lingering concerns in implementation, NAR is working with Congress to fix any unintended consequences.

ensuring secondary Mortgage Market

NAR continues to work with Congress on a comprehensive approach to restructuring the secondary mortgage market. We strongly believe any new secondary market entity replacing Fannie Mae and Freddie Mac (the government sponsored enterprises, or GSEs) must have an explicit govern-ment guarantee.

Maintaining current gse loan liMits

NAR is leading the effort to keep the Federal Housing Finance Agency (FHFA) from reducing conforming loan limits for Fannie Mae and Freddie Mac.

Preserving HoMeownersHiP tax Policies

Both the House and Senate are considering options to reform the feder-al tax system by eliminating certain deductions, exemptions, and credits. NAR believes the current real estate tax provisions are vital to the health of the economy.

safeguarding consuMer data Privacy

NAR is working with federal officials to develop appropriate legislative and regulatory best practices to lessen the potential for breaches and identify theft.

Bolstering coMMercial real estate lending

NAR advocates for healthy liquidity in commercial credit markets.

continued, page 26


http://www.dctaxrevisioncommission.org

http://www.dctaxrevisioncommission.org

public policy

Montgomery CountyLong Branch and Glenmont Sector Plans ApprovedBetHesda Plan uP for review

Changes are slated for neighborhoods throughout the County. As implementation of the new Long Branch and Glenmont Sector Plans begin (both were approved by the Montgomery County Council at the end of 2013) the Planning Board turns its eye to updating the twenty-year old plan for Bethesda.

The Long Branch Plan encompasses the eastern part of Montgomery County (between Langley Park and Silver Spring) and is partially in response to the Purple Line, a Metro-transit system that would link Bethesda and New Carrollton through Silver Spring. The revised plan provides increased zoning density and supports financing tools to encourage public-private partnerships.

The Glenmont Sector Plan covers approximately 600 acres around the intersection


of Georgia Avenue and Randolph Road, envisioning a neighborhood centered on the Glenmont Shopping Center and the existing Red Line Metro station. The new plan will transform the area into a walkable community with convenient public transit options for residents and visitors.

The Bethesda Downtown Plan, which has been in effect for twenty years, is now under review by the Montgomery County Planning Board. Over the next year, the Planning

Board will reach out to the public for feedback on land use and density, urban design, mobility, and environmental quality.

For more information on all of the County’s Sector Plans, visit the Montgomery County Planning Board’s website at www.montgomeryplanning.org.

zoning corner

DC’s Zoning Rewrite Near Completion Zoning is critical to the ongoing development of your community. In the current regulation rewrite, the DC Zoning Commission is considering three issues of particular interest to REALTORS®.

Accessory Apartments The draft regulations propose simplifying and streamlining the approval process for accessory apart-ments. Residents would no longer have to go through a lengthy special exception process, and under very specific conditions could have an accessory apartment by right.

Parking Certain mandatory parking requirements would be relaxed near transit, and downtown mandatory park-ing minimums removed entirely. Parking requirements for residential areas would mostly stay unchanged.

Low Density Residential Many of DC’s lower density residential areas cannot be rebuilt under the current zoning. The new regu-lations would generally allow greater flexibility to accommodate the District’s changing demographics.

Want more details? Visit the dedicated webpage www.dczoningupdate.org.

Lobby Day in Annapolis Gives Strong Start to Maryland Legislative Session

GCAAR members and staff met in Annapolis on January 14 to participate in the Maryland Association of REALTORS®’ (MAR) annual Lobby Day. Lobby Day provides a forum for REALTORS® to personally lobby State Senators, Delegates, and staff on issues critical to homeowners and the real estate industry.

Nearly 200 participants were greeted by MAR leadership and staff and enjoyed breakfast at the famous Annapolis Governor Calvert House. REALTORS® were matched with their representatives

and headed over to the Senate and State Houses for over 100 visits with legislators. GCAAR REALTORS® met with the Montgomery County Delegation, the largest in the General Assembly, whose members hold key positions on nearly all of the House and Senate’s standing committees.

At the individual meetings, legislators learned about 2014 REALTOR® priorities, including HOA/condo fees, transportation, and security deposit interest rates (read more on page 24), as well as facts about the role of real estate in the Maryland economy. Maryland currently ranks 10th among all states for its reliance on property taxes as a major revenue source, and real estate related jobs are associated with more than $15 billion in wage/salary income.

Lobby Day is an effective, grassroots activity that helps educate our representatives on the practical concerns affecting your everyday business. Members form relationships with legislators that are important for addressing real estate industry issues today and in the future. A number of visits even lead to conversations about elected officials sponsoring REALTOR®-friendly bills!

GCAAR will continue working with MAR and other local Maryland REALTOR® associations during the General Assembly session. Stay up to date on legislation and events at www.mdrealtor.org.

GCAAR Board Member Jamie Coley and GCAAR President Greg Ford after a full

day of lobbying legislators.

???

What Do You Know About Home Sellers?

Q.1 For how many years has the typical seller lived in their home?5 years7 years9 years16 years

Q.2 What percentage of sellers were assisted by a real estate agent when selling their home?62%76%88%91%

Q.3 What percentage of sellers offered incentives, like assis-tance with home warranty policies and closing costs, to attract buyers?9%13%26%36%

Q.4 Recent sellers typically sold their homes for what per-centage of the listing price?78%81%86%97%

Q.5 What percentage of recent sellers had to delay or stall selling their home because the value of their home was worth less than their mortgage?5%9%13%17%

Correct Answers on page 28

quiz ???


www.montgomeryplanning.org

www.dczoningupdate.org

www.mdrealtor.org


Need a Service? GCAAR Affiliate Members Can Help YouGCAAR has over 160 Affiliates. Affiliates are non-REALTOR® professionals who are involved in real estate-re-lated transactions such as settlements, house inspections, mortgage services, banking, insurance, and more. Below is a list of our current Affliates. To contact an Affiliate, or if you are interested in becoming an Affiliate, visit gcaar.com (Resources>Find An Affiliate). If there are any updates to this list, please send them to [email protected].

affiliate list

For more information, or to become an Affiliate, visit gcaar.com

legal hotline

Question: If a Buyer provides a copy of the Home Inspection Report and requests a closing cost credit in lieu of repair in their initial Notice under the Specific Home Inspection Contingency contained in Paragraph 2 of the Addendum of Clauses (GCAAR Form 1332), can the Seller then cancel the contract on the 3rd day following the delivery of the request for the closing cost credit unless the Buyer withdraws the closing cost request?

Answer: No. Pursuant to Paragraph 2A, Seller at this point in the negotiations may only either accept the offer pursuant to Paragraph 2A(a) or make another offer pursuant to Paragraph 2A(b). If Seller makes another offer which Buyer accepts, the parties are bound. If Buyer makes a different offer, Seller then at that time pursuant to Paragraph 2A(c) declares the contract void unless Buyer accepts Seller’s prior offer within three (3) days.

Question: If a resident in Montgomery County is thinking about selling their home, and they live near or behind the proposed Purple metro line, do they have to disclose this to potential buyers?

Answer: Pursuant to Montgomery County Code (Sec.40-13), a Seller is required to fully disclose to Buyers all specific facts relevant to, or affecting any property, imposed by any law or regulation or any common law principle. Under this general principle, it could be argued that the potential existence of the Purple Line must be disclosed. Section 40-10(a), however, requires that “Before signing a contract for the sale of real property, the seller must give the prospective buyer an opportunity to examine the applicable county master plan and any municipal land use plan for the area in which the property is located, and any adopted amendment to either plan, and approved official maps showing planned land uses, roads and highways, parks and other public facilities affecting the property contained in the plan.” If the buyer were to review the Master Plan, the existence of the Purple Line would be ascertained and thus it could be argued that a disclosure by Seller is not necessary. Most buyers do not avail themselves of this opportunity, however, and it is my opinion that the best practice would be to disclose the potential Purple Line to potential buyers.

Question: I have a listing of a commercial building in the District with two residential tenants. Do I need to inform the tenants in writing before I list the property? What kind of notice should I use for this kind of property? Should we wait until we get a third party offer? Should notice only be given to the residential tenants?

Answer: There is no requirement to inform tenants in writing before listing a property. When an owner in the District decides to sell a property, all residential tenants are entitled to notice of two separate rights under the Rental Housing Conversion

and Sale Act of 1980, commonly known as TOPA: 1) Offer of Sale(Form B); and 2) Right of First refusal (Form C). The decision whether to provide an Offer of Sale prior to obtaining a Third Party contract depends upon the circumstances. Most sellers wait until they have a Third Party contract and then provide both the Offer of Sale and the Right of First Refusal at the same time (Form A). This allows the market to determine how much to offer. The time limits and rights are different for 2-4 unit buildings than for a single unit. TOPA only applies to residential tenants.

Question: I am about to get multiple contracts containing an Escalation Clause (GCAAR Form 1319). What kind of documentation do I have to give to the buyer who agrees to escalate the highest and must it be equal to other offers?

Answer: Since the escalation clause is non-binding and is essentially an invitation to make a counter offer, the sufficiency of the documentation needed to trigger an escalation is really in the eyes of the beholder, in this case the buyer, who is being asked to increase their offer. Some sellers will provide a redacted version of the other offer and others will simply not provide any documentation and request a best and final offer from the buyer. It is ultimately up to the buyer to determine what documentation is sufficient and what they are willing to offer and present that offer to the seller for consideration.

The answers provided here are the opinions of the authors, are for informational purposes, and are only for GCAAR members. Neither Counselors Title, LLC, nor Pardo & Drazin, LLC is providing legal advice, but rather providing a general statement of law. No lawyer/client relationship is – or will be – established as a result of the material which follows. Readers are encouraged to retain their own counsel for their specific questions. Answers may have been edited for formatting purposes.

By Chris Darby, tom Muldoon, and John Nalls of Counselors title, llC, and pardo & Drazin, llC, General Counsel

???Answers to Quiz on page 27:

1. 9 years

2. 88%

3. 36%

4. 97%

5. 13%

Business Contact Phone Number TypeeAppraisal Group Mary Garner Bremerman 301-570-6114 Appraisers

J Hansen Appraisal Assc LLC John Hansen 301-464-2878 Appraisers

Chase Commercial Appraisal Division Chad Harris 215-640-3413 Appraisers

James Blaine Miller Jr James Miller Jr. 301-933-9881 Appraisers

Roxann Novel Appraiser Roxann Novel 800-232-7196 Appraisers

Chase Commercial Appraisal Division Carlos Ortiz 215-640-3413 Appraisers

Chase Commercial Appraisal Division Anna Pagi 215-640-3413 Appraisers

Anne M Powell Appraisals Anne Powell 410-721-7505 Appraisers

Curtin Law Roberson Dunigan Thomas Dunigan 202-530-3300 Attorneys

Finkelstein & Horvitz PC Nathan Finkelstein 301-951-8400 Attorneys

Andrew FitzGerald Atty at Law Andrew FitzGerald 301-933-6550 Attorneys

Paley Rothman Diane Fox 301-951-9336 Attorneys

Ward & Klein Chartered Thomas Gibbons 240-243-7200 Attorneys

Shaner & Helf LLC Thomas Helf 301-913-9306 Attorneys

Joseph Greenwald & Laake PA Harvey Jacobs 240-399-7891 Attorneys

KVS Law David Kanstoroom 301-605-1420 Attorneys

Kass Mitek & Kass PLLC Benny Kass 202-659-6500 Attorneys

Jackson & Campbell PC Roy Kaufmann 202-457-6710 Attorneys

Law Office of Arthur Konopka Arthur Konopka 202-686-0600 Attorneys

Kayton & Kotz LLC Daniel Kotz 301-770-4107 Attorneys

Lasso & Lasso PC Ricardo Lasso 202-537-0343 Attorneys

Richard W Lawlor PA Richard Lawlor 301-340-2400 Attorneys

Greenstein DeLorme & Luchs PC Richard Luchs 202-452-1400 Attorneys

Gelman, Rosenbury & Freedman Kevin Matthews 301-951-9090 Attorneys

Law Office of Robert McCarthy Robert McCarthy 301-654-3730 Attorneys

Law Offices of David P Modell David Modell 301-634-9820 Attorneys

Law Offices of Quinn O'Connell Jr Quinn O'Connell Jr. 202-537-1820 Attorneys

Miles & Stockbridge PC Stephen Orens 301-762-1600 Attorneys

Greenstein DeLorme & Luchs PC Vincent Mark Policy, Esq. 202-452-1400 Attorneys

Bregman Berbert Schwartz Gilday LLC Wendy Pullano 301-656-2707 Attorneys

Ward & Klein Chartered Richard Ross 240-243-7200 Attorneys

Vaughn W Royal Attorney at Law Vaughn Royal 202-895-1530 Attorneys

Samuelson Law Offices LLC Kenneth Samuelson 202-494-0848 Attorneys

Paley Rothman Goldstein Rosenb Linda D Schwartz 301-656-7603 Attorneys

Siegel & Associates P. Joy Siegel, Esq. 301-907-8808 Attorneys

continued, page 30

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affiliate listBusiness Contact Phone Number TypeKVS Law Marty Stanton 301-605-1420 Attorneys

Aaron Lee Stein Attorney Aaron Stein 301-948-2383 Attorneys

Glazer Winston Honigman Ellick L. Mark Winston 202-537-5500 Attorneys

John F Wolf Jr Attorney John Wolf Jr. 301-951-0940 Attorneys

Zanelotti Law PLC Joseph Zanelotti 703-224-4402 Attorneys

Britton PLLC Lisa Britton 202-416-0121 Attorneys

Bromberg Rosenthal LLP Jonathan Bromberg 301-251-6200 Attorneys

Chasen & Chasen Ronald Chasen 202-244-4000 Attorneys

Mid-Atlantic Inspection Srvcs Alan Beal 202-403-7700 Home Inspection Companies

Sentry Home Inspection LLC Timothy Bills 202-234-9222 Home Inspection Companies

Sentry Home Inspection LLC Herbert Higson 202-234-9222 Home Inspection Companies

Building Inspector of America Vimal Kapoor 301-916-0300 Home Inspection Companies

Sentry Home Inspection LLC Lou Scerbo 202-234-9222 Home Inspection Companies

Faux Pa Home & Energy Services Donald Wade 301-874-3821 Home Inspection Companies

Old Republic Home Protection Terry Crawford 925-866-1500 Home Warranties

Capitol Title Insurance Agency Sara Demb Goldstein 301-231-7250 Housing Interests

MD Dept of Housing & Community William Ariano Jr. 410-514-7014 Housing Interests

Duffy Insurance Group LLC Diane Duffy 301-384-5000 Insurance Companies

Duffy Insurance Group LLC Mike Duffy 301-384-5000 Insurance Companies

Duffy Insurance Group LLC Sarah Vargas 301-384-5000 Insurance Companies

1st Mariner Mortgage Deborah Benkert 240-235-5337 Mortgage Companies

Caliber Home Loans Jamica Browne 301-660-3292 Mortgage Companies

SunTrust Mortgage Co Patrick Casey 301-517-5401 Mortgage Companies

George Mason Mortgage LLC Adriana Clapper 301-841-1320 Mortgage Companies

George Mason Mortgage LLC Charles Clapper 301-841-1320 Mortgage Companies

SunTrust Mortgage Co Janet Demas 301-517-5401 Mortgage Companies

McLean Mortgage Corp Frank Dodson 703-738-0900 Mortgage Companies

Wells Fargo Home Mortgage Thomas Elwood 202-237-5586 Mortgage Companies

Apex Home Loan Erin Finke 301-610-9600 Mortgage Companies

Waterstone Mortgage Corporation Dan Flavin 410-788-9100 Mortgage Companies

Home Savings & Trust Mortgage Derek Harman 703-766-4634 Mortgage Companies

TD Bank Jeremy Higgins 202-965-9450 Mortgage Companies

Prospect Mortgage Cedric Johnson 540-882-4176 Mortgage Companies

Greenwood Lending Shawn Johnson 202-594-6481 Mortgage Companies

New Penn Financial Addy Jolly 240-813-7535 Mortgage Companies

First Home Mortgage Christopher Jordan 301-562-9540 Mortgage Companies

TD Bank Yatzuri Koehler 202-965-9450 Mortgage Companies

New Penn Financial David Koonce 240-813-7535 Mortgage Companies

JP Morgan Chase Bank Michael Moss 301-233-1006 Mortgage Companies

Sandy Spring Bank Jeffrey Nelson 301-617-4233 Mortgage Companies

Suntrust Mortgage Inc Sean O'Boyle 301-961-0905 Mortgage Companies

McLean Mortgage Corp Patti O'Connor 703-738-0900 Mortgage Companies

Apex Home Loan Michael Parsons 301-610-9600 Mortgage Companies

TD Bank Lewis Perez 202-965-9450 Mortgage Companies

Susquehanna Bank Russell Rothstein 301-984-3600 Mortgage Companies

Embrace Home Loans William Rozek 301-354-8279 Mortgage Companies

First Home Mortgage Corp Jacob Ryan 301-220-0999 Mortgage Companies

Business Contact Phone Number TypeHSBC Michael Schimmel 202-203-0157 Mortgage Companies

Sandy Spring Bank Guy Silas 301-617-4233 Mortgage Companies

Sandy Spring Bank Kenneth Storck 301-617-4233 Mortgage Companies

JP Morgan Chase Bank Kurtis Tai 301-233-1006 Mortgage Companies

First Home Mortgage David Toaff 301-657-1003 Mortgage Companies

First Home Mortgage Travis Vollmerhausen 301-562-9540 Mortgage Companies

McLean Mortgage Corp Kelly Wadsworth 703-738-0900 Mortgage Companies

BB & T Mortgage Patricia Widerman 301-590-2382 Mortgage Companies

Apex Home Loan Brian Willingham 301-610-9600 Mortgage Companies

JP Morgan Chase Bank Scott Willis 301-233-1006 Mortgage Companies

BB & T Mortgage Mark Woolson 301-493-8917 Mortgage Companies

SunTrust Mortgage Co Skeeter Worthy 301-517-5401 Mortgage Companies

New Penn Financial Elliott Bresler 240-813-7535 Mortgage Companies

Perry Moving & Storage Alvin Lewis 410-799-0022 Moving Companies

Capitol Termite & Pest Control Julio Gonzalez 301-657-4480 Pest Control Companies

Capitol Termite & Pest Control Stanley Robinson 301-657-4480 Pest Control Companies

Agent Photos Online LLC John Brueske 877-774-4720 Photographer

Columbia Property Management Scott Bloom 888-857-6594 Property Management Companies

Capital Environmental Testing Todd Hix 202-257-9291 Radon Testing Companies

Long & Foster Real Estate Inc Marvin Kotz 240-497-1700 Referral Specialists

Capitol Title Insurance Agency Stanley Goldstein 301-231-7250 Title Insurance Companies

eTitle Agency Inc Carey Aquilina, Esq. 703-777-4261 Title/Settlement Companies

Counselors Title LLC Kathleen Asdorian 301-652-6615 Title/Settlement Companies

Counselors Title LLC Briana Ayala 301-670-0100 Title/Settlement Companies

Heritage Title & Escrow Stephen Ballard 202-265-0535 Title/Settlement Companies

eTitle Agency Inc Mara Bauserman 703-777-4261 Title/Settlement Companies

Classic Settlements Lisa Bosse 301-921-2667 Title/Settlement Companies

Monarch Title Inc Katherine Brewer 202-546-3100 Title/Settlement Companies

District Title A Corp Thomas Broullire 202-518-9300 Title/Settlement Companies

Home First Title Group Claire Buchner 410-266-0844 Title/Settlement Companies

Palisades Title Company Steven Buckman 202-351-6100 Title/Settlement Companies

Settlement Professionals LLC Carol Calomiris 202-363-1870 Title/Settlement Companies

Olde Key Title Lynn Caudle Boynton 301-294-3333 Title/Settlement Companies

Village Settlements Inc Leslie Childs 301-590-9300 Title/Settlement Companies

Clarke Title LLC Henry Clarke Jr. 301-840-8988 Title/Settlement Companies

Atlantic Closing & Escrow Isadora Connor 202-730-2635 Title/Settlement Companies

Counselors Title LLC Christopher Darby 202-686-0100 Title/Settlement Companies

District Title A Corp Jeff Darrah 202-518-9300 Title/Settlement Companies

Pinnacle Title & Escrow Inc Marie Daugherty 301-424-5400 Title/Settlement Companies

Settlementcorp David Deckelbaum 202-537-0005 Title/Settlement Companies

Classic Settlements Joe Detrick 301-921-2667 Title/Settlement Companies

RGS Title/Traditional Title Anthony DeVol 301-654-9800 Title/Settlement Companies

Federal Title & Escrow Co Todd Ewing 202-362-1500 Title/Settlement Companies

RGS Title Suzanne Feinstein, Esq. 301-230-0070 Title/Settlement Companies

Main Street Settlements Inc John Ferguson 301-570-3600 Title/Settlement Companies

Flynn Title Gregory Flynn 301-545-0150 Title/Settlement Companies

Olde Key Title Grace Garrett 301-294-3333 Title/Settlement Companies

32 Capital area realtOr® • Jan/Feb 2014 Capital area realtOr® • Jan/Feb 2014 iii

affiliate listBusiness Contact Phone Number TypeNorth American Title Co Janelle Gaughan 202-237-8222 Title/Settlement Companies

GPN Title Inc George Glekas 301-294-4055 Title/Settlement Companies

Title Town Settlements Todd Greenbaum 301-580-2850 Title/Settlement Companies

Counselors Title LLC James Griffin 202-686-0100 Title/Settlement Companies

Village Settlements Inc David Hahn 301-486-0799 Title/Settlement Companies

RGS Title Joseph Hansen 301-230-0070 Title/Settlement Companies

Avenue Title Group David Helfrich 202-296-4500 Title/Settlement Companies

Gemini Title & Escrow LLC John Hodges 301-656-7733 Title/Settlement Companies

Village Settlements Inc Michael Hollman 301-590-9300 Title/Settlement Companies

Monarch Title Inc Ann Johnston 703-852-1764 Title/Settlement Companies

Pinnacle Title & Escrow Inc Ilene Kanfer 301-762-6757 Title/Settlement Companies

Counselors Title LLC Robert Kuczarski 301-670-0100 Title/Settlement Companies

Sage Title Group LLC Bobby Lee 301-654-2560 Title/Settlement Companies

Closeline Settlements LLC Elliot Liss 301-622-6000 Title/Settlement Companies

MBH Settlement Group LLC Jill Messier 703-277-6800 Title/Settlement Companies

Sage Title Group LLC Carrie Anne Messina 301-654-2560 Title/Settlement Companies

Michaels Title & Escow LLC Jill Pogach Michaels 240-425-0008 Title/Settlement Companies

Monarch Title Inc Evelyn Miller 703-852-1764 Title/Settlement Companies

Moses & Aiken, LLC/Home Team Title Robert Moses 301-468-0080 Title/Settlement Companies

Counselors Title LLC Thomas Muldoon 202-686-0100 Title/Settlement Companies

Counselors Title LLC Timothy Mullin 202-686-0100 Title/Settlement Companies

Confidence Title & Escrow Vittorio Muzzatti 301-740-1880 Title/Settlement Companies

Counselors Title LLC John Nalls 202-686-0100 Title/Settlement Companies

Sage Title Group LLC Judith Nixon 301-670-2812 Title/Settlement Companies

eTitle Agency Inc Alison Orlans 703-777-4261 Title/Settlement Companies

Classic Settlements Mary Papagjika 301-921-2667 Title/Settlement Companies

Fenton Title Co Louis Pettey 301-590-0220 Title/Settlement Companies

ATG (Alltech Title Group) Victoria Poe 703-934-2100 Title/Settlement Companies

Peak Settlements LLC Adam Polsky 301-528-1111 Title/Settlement Companies

Paragon Title & Escrow Co Philip Raskin 301-986-1114 Title/Settlement Companies

Counselors Title LLC Michael Ridgway 301-652-6615 Title/Settlement Companies

Village Settlements Inc Katerina Rodgaard 301-590-9300 Title/Settlement Companies

Village Settlements Inc Kathleen Rollins 301-486-0799 Title/Settlement Companies

Paragon Title & Escrow Co Randy Rothstein 301-986-1114 Title/Settlement Companies

Paragon Title & Escrow Co Rob Rothstein 301-986-1114 Title/Settlement Companies

Stewart Title Group R. Bradley Runyan 202-349-0220 Title/Settlement Companies

Champion Title Sadaf Saberi 703-444-4100 Title/Settlement Companies

Village Settlements Inc James Savitz 301-590-9300 Title/Settlement Companies

Express Title Co Wayne Schrifrin 301-231-8200 Title/Settlement Companies

District Title A Corp Brendon Sheperd 202-518-9300 Title/Settlement Companies

Counselors Title LLC Ellie Slater 301-652-6615 Title/Settlement Companies

Counselors Title LLC Colleen Smyth Cogan 301-670-0100 Title/Settlement Companies

District Title A Corp Marc Sushner 202-518-9300 Title/Settlement Companies

District Title A Corp Steven Sushner 202-518-9300 Title/Settlement Companies

District Title A Corp Scott Sweitzer 202-518-9300 Title/Settlement Companies

Logan Title Patrick Tangney 202-400-2509 Title/Settlement Companies

Olde Key Title Caryn Wetmore 301-294-3333 Title/Settlement Companies

Capital Area REALTOR - Jan/Feb2014

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Transcript of Capital Area REALTOR - Jan/Feb2014