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REALTORS who have obtained the CRS designation from the Council of Residential Specialists have obtained a higher level of professional training in real estate through CRS classes and have qualified to be a CRS designated REALTOR by meeting the guidelines of the profile of a CRS designee including:

Experience
To earn the Certified Residential Specialist (CRS) Designation, every REALTOR® must have significant experience and demonstrate volume of real estate transactions or gross sales, as well as complete rigorous educational requirements.

Ethics
Every CRS designee is required to maintain membership in the National Association of Realtors® and to abide by its strict Code of Ethics.

Technology Expertise
The training available to CRS designees includes a strong focus on technology and its applications in the real estate business.

The Top 4 Percent
Less than 4 percent of all licensed Realtors® are Certified Residential Specialists.

Bruce Slaton of Realty World eCurb REALTORS has been a CRS designee for many years and adds to his education by attending classes created through the Council of Residential Specialists.  Interested REALTORS should check out details at the Northern California CRS Chapter at www.NorcalCRS.com.

CRS classes include classes covering items like Business Planning and Marketing (CRS 200), Financing (CRS 205), Listing Course (CRS 201), Referral Course (CRS 210) and the Technology Course (CRS 206).  A list of available courses can be found also at www.NorCalCRS.com

The Northern California CRS Chapter also offers networking opportunities through their networking meetings held several times a year and through the online website through agent to agent referrals.

One of the programs available is the HAFA program:

Home Affordable Foreclosure Alternatives (HAFA) Program

If you can’t afford your mortgage payment and it’s time for you to transition to more affordable housing, the Home Affordable Foreclosure Alternatives (HAFA) program is designed for you. HAFA provides two options for transitioning out of your mortgage: a short sale or a Deed-in-Lieu (DIL) of foreclosure. In a short sale, the mortgage company lets you sell your house for an amount that falls “short” of the amount you still owe. In a DIL, the mortgage company lets you give the title back, transferring ownership back to them.

In either case, HAFA offers benefits that make the transition as favorable as possible:

You can get free advice from HUD-approved housing counselors and licensed real estate professionals.
Unlike conventional short sales, a HAFA short sale completely releases you from your mortgage debt after selling the property. This means you will no longer be responsible for the amount that falls “short” of the amount you still owe. The deficiency is guaranteed to be waived by the servicer.
In a HAFA short sale, your mortgage company works with you to determine an acceptable sale price.
HAFA has a less negative effect on your credit score than foreclosure or conventional short sales.
When you close, HAFA provides $3,000 in relocation assistance.

Homeowners interested in avoiding short sales should call our office at 916-226-2700 or email our office at bruce@eCurbRealty.com.

GaltHomeSource.com now features linked results for homes for sale in the Galt CA real estate market including single family homes for sale, vacant land and commercial properties in the Galt area.

Home Sellers in Galt can now obtain their property valuation through Realty World eCurb REALTORS valuation request at www.GaltHomeValues.com.

Realty World eCurb REALTORS will also assist homeowners avoid foreclosure through the short sale process.  ForeclosureOptions.com will provide short sale information and updates to Galt homeowners facing foreclosure.

REALTORS interested in joining the new Galt CA office can find more information about our $795.00 Flat Fee commission structure for agents at www.JoinRealtyWorld.com

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• Real Estate Syndication, Is It Best For The Consumer? (bruceslaton.com)

Ok since most of this debate is happening between real estate agents and with little consumer input, let’s go over some of the finer details of how syndication happens and ask if it is truly beneficial to the consumer:

There is a debate that the “listing data” belongs to the Broker and if the Broker is not being compensated for it, something must be wrong.  I am of the opinion that the “listing data” in the end belongs to the seller and we as REALTORS are given the right to use the data during the period of our contractual listing period.  IF we were compensated for the use of the listing data I would wonder if (A) shouldnt the seller have to give permission for this and (B) consent to allow us to receive that compensation and IF a brokerage is being compensated outside of their commission, shouldnt that be disclosed to the seller?.  We have to come to the resolution that in this internet age, we have to embrace the opportunity to have an additional site that our listings are featured on and stop with the old age mentality that we “own” the data and should be compensated for its use.  The MLS systems we use have rules about how the data should be used and IF the brokerage is not technology oriented, that should not be an excuse to throw the baby out with the bath water.

Another issue is the reliability of data.  I agree that some of the syndication sites have unreliable data, listings showing active that have long been sold, the popular practice of companies like RealtyTrac to input listings that APPEAR to be listings but in reality may not be sellable properties, for example notice of defaults, auction listings etc.  My believe is, let the consumer find the benefit of the system for themselves or maybe not the benefit.  I find these instances when potential buyers call and the listing has been sold as a teaching opportunity.  I merely explain how syndication works and offer my own IDX enabled site such as SacramentoCondos.com , ElkGroveHomeSource.com or eCurbRealty.com as an alternative with the explanation that properties may be in negotiations and its best to contact me back with their interested properties and I as their qualified REALTOR, will do exactly what I am supposed to do and follow up and get the up to date status of the property, run comparables to let them know the estimated value and advise them on how to proceed.

When I looked into purchasing a real estate franchise and did my research into companies, I chose Realty World and one of the main reasons was their not only acceptance of syndication but their embracing the technology and running with it.  I was extremely impressed with the fact that when I input a listing into the MLS, it transmits to our Realty World system and from there I activate it and it syndicates to over 500 websites, some within hours, some within days.  The system also tracks when people click in the links, respond and I am able to provide this report to my sellers clients to show how their property is being marketed.  Never have I had a seller client not find this as a huge benefit to my marketing plan.  Just think of the labor and time management systems like that optimize by having to not enter the data over and over again in multiple systems.

Now let’s talk about the accuracy of data.  On any given day in almost every MLS, agents call on a listing that shows active only to be told that the listing has either been pending for weeks (in our MLS pending sales are supposed to be reported within 3 days) or in some extreme cases has sold (usually the case with short sales).  You show a property with 5 bedrooms only to find out its a 3 bedroom with a den and a dining room.  You find listings in different areas (for example a listing in Sacramento that is put into the AREA of Elk Grove, a common issue)  Or the marketing terms such as “located in North Elk Grove” when the property is located in Sacramento, its like saying Bakersfield is “just north” of Beverly Hills, the consumers want accurate data not creative marketing.  But it starts with the agents inputing the data.

I’ve seen so many “creative” marketing campaigns going around that I believe sometimes some brokerages (A) think their agents are sheep and (B) believe the consumer should not be educated to all of their marketing options out there BUT only the ones best for the brokerage.

I was going to post something here about a recent campaign of a recent brokerage but couldnt generalize it enough.  I believe when you dont want to offer something your associates or your consumers want, you just create a “study” of why its not best for you, call it propaganda or creative marketing.  If you dont want to offer advertising to your agents, show a study why doing it themselves is much more rewarding.  Don’t want to feature your listings on REALTOR.com, create a study as to why it doesnt work.

My advise is until you can create a website that gathers the traffic some of the syndication sites offer, use the benefits of the syndicated sites.  If you do not have the technology skills to understand the technology your talking about, dont talk about it.  If your company cannot recruit on an aspect of the business that agents might find a benefit, just state you don’t offer that as part of your brokerage benefits BUT dont put out “survey” results saying other agents don’t find it a benefit unless you truly have don’t a survey and for balance, survey those outside of your company you are trying to recruit.

I see it as basing the diet of the sheep each week on the price of straw versus alfalfa versus oat hay.  This week oat hay is good for you because of XX, this week we need skinny sheep so your eating straw, this week your eating alfalfa because all of the other sheep love it.  But at the core of it was it the benefit to the sheep or the price of the feed?  Let’s be real with our offerings as REALTORS and stop treating the consumer  like sheep, let’s do what they instruct us to do as clients and perform our real estate duties.  Our ego’s have to step aside in order for us to better serve our clients.

Time will tell on if this new approach of now allowing listings to be syndicated will be a good thing or a bad thing, my opinion has always been the MORE we can offer to our clients, the BETTER we have performed.

BTW, as a REALTOR, if I want to check out real estate in another state, do you think I rummage through all of the Google listings to find a website?  Of course not, I check out Realtor.com, Trulia, Zillow and start from there.  It gives me an idea of the style of homes, pricing etc.  I know when I want more serious information I will find a local REALTOR website and I think we underestimate the consumer, they will find what is of value to them.

I am proud of the fact that I treat our competitors as business partners in our business and you will find our listings on our competitors sites and their listings on our sites.  We are in a partnership as REALTORS to best serve our clients on both sides and to keep educated on emerging technologies that benefit our clients and use those technologies to make our clients our Raving Fans!

And remember, 3rd party syndication sites are advertising venues, they are not real estate companies and I believe we need to treat them exactly for what they are:  avenues that give our clients added exposure for their listings.

Remember “ITS ABOUT THEM, NOT US”

As Always, Make It A Great Day!

Bruce Slaton

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I also partially blame the California Association of REALTORS, their inaction in dealing with this issue for their members is also not a responsible action.

Why do we as REALTORS have to set up Google Alerts on every active listing to find instances where our for sale listings show up on Craigslist in a rental format instead scamming the rental consumer and leading to break ins in our for sale listings and going as far as rekeying our assets so the crime can be committed?  Its because Craigslist is not doing enough to battle this everyday crime.

It’s like Craig Newmark seeing a guy beating his wife on his front doorstep and instead of calling for help or assisting in preventing the crime he says “Oh I put a notice on my front door warning people that they could be a victim to a crime, that should be enough”.  Well no it is not enough.

I continue to find my for sale listings on Craigslist OR even worse people occupying my listings because they just rented them off of Craigslist.  Maybe if Craig Newmark was there on of those time seeing the crying and hopelessness some of these “renters” have when they borrowed for the deposit and 1st month rent only to find out they have been scammed.  This should not be acceptable in any form.

This is the latest:

Yes thats my listing that is pending sale

By the way, talk about policing your website Craig, I reported this listing about 5 hours ago and yet it is still up.  How many renters this Christmas season think they are moving into a home only to find out they have been scammed?  Can you celebrate your holidays knowing your great website is getting to be known as a vehicle for crime?

I don’t care about the erotic encounters issues your website had the last few years, at least you can say those were between two consenting adults, in this case you have someone waiting to mug someone else and you are providing the wall they are hiding behind.

Here are some common sense items that should be implemented:

1. Make every rental listing be a $1 charge, use the same “settlement” you did for the erotic encounters lawsuits, require a credit card to place the ad.
2. Create property management accounts where maybe property managers pay $100 a month or less and post unlimited listings BUT they are all verified and you have someone to hold accountable for the posts.
3. Make the warnings more prominent on the website.

REALTORS love your website and believe in your websites value, why allow these crimes to originate on your site and continue without any resolution on your side?  If there is a legitimate reason, please let us know.

REALTORS should petition their MLS board and Association of REALTORS to have rental listings in their MLS.  Rentals will represent a larger segment of our landscape and many of the rental prospects are going through economic issues, credit issue and are targets for this crime each and every day.

Picture this:

You just got evicted from your home because the home was foreclosed on, you find this rental on craigslist in your price range and they are willing to take you as a tenant because they understand your situation.  You scrape money together, you borrow some money from family and friends and you go to move in and found out that you have been scammed, oh and Christmas is only a few days away, what a Christmas present you are getting.

We as REALTORS should be promoting a source for RELIABLE rental data and it doesnt exist right now, this should not be an exploration committee or something we’ll get to, it should be something every MLS should make a priority issue NOW, the consumers are being scammed and guess who has to break the news, the REALTOR who has to tell the scammed renter they do not have a home to live in and sorry we cannot do anything for you, Craiglist doesnt think its a priority (but hey, didnt you read that little disclaimer on the top of the post?).

These views may not be views of my colleagues or franchise, they should be treat as views and opinions of myself only but this is getting old and if we knew on a corner someone was getting mugged every hour, law enforcement would be doing everything possible to fix the issue, yet they are not making this an issue, not acceptable.

Everyone have an incredible Christmas Holiday, I am sure there are a few families out there who will not be having a joyous Christmas but hey didnt they read that small warning on the post?

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SacramentoCondos.com is Sacramento’s Premiere Source for condominium listings.  Real estate services provided by Realty World eCurb REALTORS Lic # 01904297.

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Litigation in the complex

Its a common misconception that if an individual condominium owner is not involved in litigation that their unit should be exempt,  the reality is if there is litigation in the complex it affects each and every condominium in the complex.  Lenders are giving loans based on risk and the worst case scenario for a lender is they take a condominium unit back and face excessive assessments or limited ability to resell the unit so most loan programs will have stricter guidelines for condominium complexes with litigation in them even to the level of not offering financing for that complex.

Owner Occupied Ratios

Lenders tend to favor condominium complexes with  a larger owner occupied ratio usually at the benchmark of 51% owner occupied although some lenders may want a higher owner occupied ratio for their loan programs.

FHA : Is the complex approved for FHA financing

Homeowner associations have to provide data to show that the homeowners association is financially solid, they are properly insured and they are in compliance with state requirements imposed by the Department of Real Estate.  If the complex is not approved, it doesn’t mean FHA financing is not possible but more work may need to be done by the lender with the homeowner associations assistance to see if FHA financing is possible.

How many units are owned by one entity?

One criteria could be how many units are owned by one entity or individual.  Let’s say one investor owns 30% of the units in the complex, this could prevent financing in the complex as some loan programs do not like to see more than 10% of the units in a complex owned by one entity.

Obsolute units

Let’s say a complex is primarily studios and 1 bedroom units, a lender will usually require the appraiser to find a like kind property outside of the complex, if this is not possible they may not make the loan due to the concern of reselling the unit in the event of a default.

The Sacramento region is in the middle of a tight market for financing in condominium complexes but many of the popular complexes that have not had wide spread financing available for buyers appear to be close to opening up, either in the settlement stages of litigation or getting the homeowner associations financing in order.

SacramentoCondos.com and Realty World eCurb REALTORS have a network of qualified lenders who stay up to date on the most current status of financing for condominiums, the 1st step if you are looking is to find out what program you qualify for and find what complexes you can obtain financing in.  If your ready to start, email us at bruce@eCurbRealty.com and we’ll start the process.

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Its a common question from our investors who own and invest in homes in the Sacramento region about 1031 Tax Deferred exchanges or sometimes referred to as “trades”.   Tax deferred exchanges in the Sacramento region have been a part of the tax code since 1921 and are one of the last significant tax advantages remaining for real estate investors.  One of the key advantages of a §1031 exchange is the ability to dispose of a Sacramento property without incurring a capital gain tax liability, thereby allowing the earning power of the deferred taxes to work for the benefit of the investor (called an “Exchanger”) instead of the government. In essence, it can be considered an interest-free loan from the IRS.

BASIC TAX EXCHANGE REQUIREMENTS

The IRS allows up to a maximum of 180 calendar days between the sale of the relinquished property and the purchase of the replacement property. Within the 180 day “exchange period,” the investor must also properly identify suitable replacement properties within 45 calendar days of closing on the sale of the relinquished property. There are a number of requirements which need to be met to qualify for tax deferral under the tax code:

Requirement #1: Both the “relinquished” and “replacement” properties must be held for investment or used in a business. The IRS uses the term “like-kind” to describe the type of properties that qualify. Any property held for investment can be exchanged for any other “like-kind” property held for investment. This definition covers a vast variety of developed and undeveloped real estate. Properties which are clearly not like-kind are an investor’s primary residence or property “held for sale.”

The relinquished and replacement properties need not have identical functions (i.e. both be residential rentals or commercial strip centers). The key issue is that the Exchanger can substantiate that both properties were “held for investment.”
Requirement #2: The IRS requires an investor to identify the replacement property(s) within 45 days from closing on the sale of a relinquished property. The 45 day Identification Period begins on the closing date, and the replacement property(s) must be properly identified in a letter signed by the Exchanger. Exchangers have a number of ways to properly identify properties. They may identify up to three replacement properties without regard to their total fair market value (Three Property Rule). Alternatively, they can identify an unlimited number of replacement properties, if the total fair market value of all properties is not more than twice the value of the property sold (200% Rule). An Exchanger can not meet either of these rules if they acquire 95%of the aggregate fair market value
of all identified replacement properties.

Requirement #3: Close on the replacement property by the earliest of either: 180 calendar days after closing on the sale of the relinquished property or the due date for filing the tax return for the year in which the relinquished property
was sold (unless an automatic filing-extension has been obtained). Example: If an Exchanger closes on the relinquished property on December 27, the exchange period will end on April 15 (assuming this is the due date for their tax
return). In this case, they would have to close on the replacement property (or file the appropriate extension) by April 15. Exchangers may choose to close both transactions within a shorter period of time, thereby avoiding the potential hardship of the 45/180 day time limits.
Requirement #4: The most common exchange format, the delayed exchange, requires investors to work with an IRS-approved middleman called a “Qualified Intermediary.” The Qualified Intermediary documents the exchange by preparing the necessary paperwork (Exchange Agreement and other documents), holding proceeds on behalf of the Exchanger, and structuring the sale of the relinquished property and purchase of the replacement property.
Note: To defer all capital gain taxes, an Exchanger must buy a property or properties of equal or greater value (net of closing costs), reinvesting all net proceeds from the sale of the relinquished property. Any funds not reinvested, or any reduction in debt liabilities not made up for with additional cash from the Exchanger,
is considered “boot” and is taxable. Example: Stewart sells his duplex, which he held for investment, for $160,000. A hundred calendar days later he closes on a different duplex, which he will hold for investment, for $110,000.
Stewart receives the $50,000 in excess funds for his child’s education. Stewart must pay capital gain taxes on $50,000. (In this example, Stewart chose to take some money out of his exchange and pay the capital gain taxes.)
WHEN ARE CAPITAL GAIN TAXES PAID?
Maybe never. Many investors mistakenly believe they will “have to pay the taxes sometime” so they might as well just sell. Quite often, this is a bad investment decision. The tax on an exchange is deferred into the future and is only recognized when an investor actually sells the property for cash instead of performing an exchange. Investors can continue to exchange properties as often and for as long as they wish, thus moving up to better investments and putting
off the taxes for many years.

An Introduction To The Benefits Of 1031 Tax Deferred Exchanges Print Format

When asked by our client to provide a qualified Sacramento region 1031 Exchange company, Realty World eCurb REALTORS recomends Bill Angove from Asset Preservation Inc. Clients should so their own research on their 1031 provider and accept our recommendation only as a start.  Clients should also consult their CPA and/or Investment Manager to decide if  a 1031 tax deferred exchange is right for them.

Looking for an investment property in the Sacramento region is an easy start, just visit InvestmentHomeSource.com for instant access to all MLS listed investment property in the Sacramento region, including investment property in Elk Grove, Galt, Roseville, Sacramento, Orangevale, Carmichael, Folsom and the surrounding areas.  Investment property opportunities in the Sac

ramento region include:  duplexes, four plexes, garden level apartment homes, apartment buildings, commercial strip malls and many more options for investment.

One of our preferred lenders, Charito Bartlett from Prospect Mortgage sent me this great chart on Financing after Bankruptcy, Short Sales or Foreclosure that outlines the different programs and the CURRENT guidelines.  There are instances where Hard Money Lenders will do loans in shorter timelines usually with a minimum of 25% down according to another of our preferred lenders Scott Short from Comstock Mortage.

Some of the other considerations are:

1.  In bankruptcy, the timelines start from “discharge” date NOT filing date.

2.  Buyers should start the process of reestablishing credit and make sure their credit lines after the bankruptcy are current and any credit lines do not exceed 50% of the available credit being used.  Several local agents have recommended Blue Water Credit for this service.

3.  Buyers should start saving at least 3.5% down for an FHA loan and in my opinion another $5,000 towards the process, this can cover inspections, any unexpected repairs or reports, moving expenses, utility deposits if needed and incidental costs.  There should also be a cushion in savings in case the buyers initial home escrow is not successful due to extensive repairs needed that are not agreed to by the seller or appraisal issues.  It is not uncommon in this market to sometimes have to conduct additional inspections on a follow up property or second choice property if the initial property choice was not successful.

4.  Buyers should contact a lender 1 year prior to them becoming eligible to repurchase.  This will allow the lender to provide them the needed information that will be required to be able to repurchase.  I believe it is a good practice to work with your REALTOR and your lender and estimate what your monthly expenses will be with the repurchase then place the difference between your current rent payment and the anticipated monthly cost of your home payment, taxes and insurance into a saving account for at least a year.  This will allow you to test if you can truly afford to repurchase or if you should continue to wait until you can afford to handle the payments for at least a year and if you do not anticipate any job changes, reductions or layoffs in your profession.

Its become common for real estate agents to get blame for pushing homeowners into a purchase before they were ready leading to foreclosures, its my belief that a reputable REALTOR will lead their buyer client in the direction of a responsible purchase where the dream of sustainable homeownership is the goal.

Realty World eCurb REALTORS will introduce the Do Over Homeowner Program in 2012 in association with several of our local lenders in the Sacramento Region.  You can contact us about the program at bruce@eCurbRealty.com .

As always if your in the process of starting to home purchase process contact our office at 916-226-2700 for a referral to one of our preferred lenders and one of our REALTOR Associates.

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Realty World eCurb REALTORS is located in Sacramento CA and conducts real estate services for buyers and sellers under the CA real estate license 01904297.  Homebuyers can search for homes at the Realty World eCurb Realty. Each office independently owned and operated.

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