Voice

Valley

N e w R i v e r V a l l e y A s s o c i a t i o n o f R E A L T O R S ®

1 2 5 P o n d e r o s a D r .

C h r i s t i a n s b u r g , V A 2 4 0 7 3 P h o n e : 5 4 0 . 3 8 1 . 9 3 5 4

w w w . n r v a r . c o m

w w w . f a c e b o o k . c o m / n r v r e a l t o r s

April 2017

In this issue: 2 Time For Action

4 Fair Housing Month

5 News from VR

6 Union Mortgage Ad

7 News from NAR

8 Looking Back

9 Donation Drive

10 Upcoming Events

14 RPAC Contributors

15 Affiliate List

CALENDAR OF EVENTS

Apr 12 Town Hall Meeting 8:00 AM Apr 14 Office Closed for Easter Apr 19 Movement Mortgage Lunch & Learn Noon Apr 27 BOD Meeting 9:30 AM Apr 28 4th Annual Chili Cook-Off 11:30 AM May 5 New Member Orientation 9:00 AM May 10 GRI Class—Working With Buyers 9:00 AM

February 2017 Home Sales Report

R esidential real estate sales continue to indicate a year of market strength. Though pace year‐over‐year remained static, the spike in median price and accompanying decline

in average days on the market point to high demand and restricted inventory. Year‐over‐year, the number of transactions in February varied by only 7 units (6,569 in 2016 and 6,562 in 2017). Typical of the industry’s seasonality, February sales were 1.9 percent higher than January’s (6,440 units). February 2017 volume (the sum of all transactions) exceeded $2.074 billion, rising 3.9 percent from last year’s February volume. On the month, volume rose 2 percent (from $2.033 billion). The rise in volume was magnified exclusively by the strong performance in price, since pace was unchanged. Statewide median sales price for February 2017 was $260,000, 6.1

percent higher than the median price last February ($245,000). Typical of the season, February median price rose from January’s $255,000 (2 percent). Also reflecting buyer motivation, the average number of days on the market declined significantly year‐over‐year by 9.5 percent, from 84 to 76. The average 30‐year fixed mortgage interest rate for February 2017 rose slightly to 4.17 percent. The Federal Reserve Bank announced an increase of 25 basis points to the key rate on March 15th, acting on strong

Published by the Virginia REALTORS®, the advocate for real estate professionals and property owners in Virginia.

Time For Action By Robert Freedman , REALTOR®Mag

REALTORS® take their bipartisan agenda to Washington in May.

This year is shaping up as one of the most consequential for real estate in decades. Having open lines of communication with lawmakers and regulators will be critical, says National Association of REALTORS® CEO Dale Stinton. He and Chief Lobbyist Jerry Giovaniello have spent years cultivating good working relationships with members of Congress and the regulatory agencies. In May, they’ll join thousands of REALTORS® for NAR’s annual Capitol Hill visits, where they’ll talk directly with lawmakers and their aides about these key issues. Tax reform. In the U.S. House, lawmakers are considering the outlines of a “blueprint” to overhaul the tax code. Although the blueprint leaves the mortgage interest deduction in place, many homeowners would lose the incentive to take it because the proposed measures would eliminate the deduction for property taxes and nearly double the standard deduction. Only the wealthiest households would itemize, so owning would essentially be no different than renting from a tax perspective. Lawmakers are also talking about doing away with or limiting 1031 tax-deferred like-kind exchanges—which allow investors to defer paying capital gains taxes when they reinvest proceeds from a sale in a similar property. The provision has been a cornerstone of commercial real estate since it was written into the tax code in 1921. Housing finance reform. The debate will be over continued federal backing of conventional loans sold to investors. Without the government guarantee, 30-year fixed-rate mortgages will likely require larger down payments and have higher interest rates, and their availability may be in jeopardy. Health insurance reform. Efforts to repeal and replace the Affordable Care Act are underway. Small businesses

and independent contractors have long faced challenges obtaining adequate coverage at affordable rates. Concerns abound about whether a replacement would ensure coverage for all at a reasonable cost. Flood insurance reauthorization. The

National Flood Insurance Program expires at the end of September. Without reauthorization, the availability of flood insurance could be disrupted, leaving thousands of transactions a day unable to close. Deregulation. In a potentially positive change, reserve and reporting requirements constraining construction and commercial lending by community banks under Dodd-Frank, the banking reform law enacted in 2010, could ease. Rules pertaining to the environment could ease as well. Association leaders and staff meet regularly with lawmakers to explore policy solutions. In February, -at a federal policy conference in Washington, D.C., REALTORS® shared their input on tax reform with U.S. Rep. Kevin Brady (R-Texas), chair of the House Ways & Means Committee, and Rep. Peter Roskam (R-Ill.), chair of the committee’s tax policy subcommittee, Also at the forum were staff aides from the House Financial Services and Senate Banking committees, whose members are working on proposals for reforming or replacing the secondary mortgage market companies Fannie Mae and Freddie Mac and for revamping the FHA. “We’re at a potential crossroads this year,” says NAR President William E. Brown. “Are we going to be a nation of owners or renters? Will commercial real estate stay within reach of small investors? We’ve made a great start in our effort to educate lawmakers, but it’s just a start. More than ever, REALTORS® need to step up and stay engaged.”

Valley Voice Page 2

THE STAKES Tax Reform

“We haven’t seen a complete picture of the numbers under the tax reform blueprint. Lawmakers are talking about this theoretically. In reality, taxes rarely go down. They say they want to broaden the base and lower the rates, but I can see tax

rates going up again after they’ve been lowered and after we’ve already given up the property tax deduction and allowed the mortgage interest deduction to be weakened.” —Kevin Sears Sears Real Estate, Springfield, Mass., NAR vice president of government affairs 1031 Like-Kind Exchanges

“The government thinks it’s losing $15 billion in write-offs every year from everyone trading up, but they’re not going to bring any of that tax revenue back if they eliminate like-kind exchanges. People will simply stop selling. You also hear the argument that it’s a tax break for the rich,

but exchange accommodators say the majority of business is from mom-and-pop owners selling four-plexes, six-plexes, or 10-unit buildings. Getting rid of 1031 exchanges isn’t just a deferred-tax issue; it’s about job creation. People use the provision to expand their business and upgrade their holdings so they can hire more people.” —William E. Brown Investment Real Estate, Oakland, Calif., NAR president Health Insurance

“There have been many years I’ve gone without health insurance. It was pay as you go, and I know I’m not alone in this. We’re hanging on by the skin of our teeth, hoping we don’t get sick or have an accident. What insurance is available is expensive. Until you get your business

off the ground, you can’t afford to pay the premiums. Meanwhile, we’re trying to attract millennials to our profession. Our average age is [in the] mid-50s. What incentive do young people have to be the next wave of entrepreneurs in our industry if they can’t count on having health insurance available to them at a cost they can afford?” —Brenda Small BPOR, GRI Keller Williams Capital Properties, Washington, D.C., NAR committee liaison, Public & Federal Issues

Flood Insurance “NAR supports reauthorization of the National Flood Insurance Program and reforms to encourage a more robust private coverage market. We have Chubb here in New Jersey, which tends to provide blanket policies for higher-end homes. We need to

expand access to coverage and reauthorize the federal program so our buyers and homeowners can access insurance in all markets at all times.” —Charles Oppler AHWD Prominent Properties Sotheby’s International Realty, Franklin Lakes, N.J., REALTOR® Party director Deregulation

“Community banks really do serve a purpose. They’re the lenders that do new construction for builders and buyers. They’re the ones that lend to the mom and pops that take equity out of their homes to open storefronts. But that’s all changed. Restrictions have become so

tight, the relationships local lenders might have with people, knowing them and knowing they always pay their loans back, those are often no longer clients the bank can help because of new reserve and other requirements that were put in place.” —Carol Griffith GRI Griffith Realty, Brighton, Mich., NAR committee liaison, REALTOR® Party Disbursement

The Event

REALTORS® Legislative Meetings &

Expo, May 15-20

8,000 REALTORS® and association

executives

Insights about the issues, political

climate

Meetings with lawmakers to champion the REALTORS® Party Agenda Learn more at: https://www.nar.realtor/midyear.nsf?opendatabase=&cid=my12000

Valley Voice Page 5

News from the Virginia REALTORS®

Advocacy in Action – General Assembly Adjourns by Jenny Wortham, Senior VP of Communications & PR

At the end of February, the Virginia General Assembly adjourned “sine die,” wrapping up the bulk of its work for the 2017 Session. Each piece of legislation that passed both the House of Delegates and state Senate has or will be communicated to the Governor for his consideration. The Governor can approve, amend or veto any piece of legislation. The General Assembly reconvenes on April 5th to approve or reject the Governor’s amendments and vetoes. Virginia REALTORS® Legislative Agenda bills have fared strongly throughout the 2017 session and several have been signed already. Here are details on what’s been signed and what’s still awaiting action: Regarding the sale of rental property:

HB 1623 – Signed by the Governor and will become law July 1, 2017.

SB 991 – The Governor has until Midnight on March 27th to act. Regarding the foreclosure of rental property:

HB 2281 – The bill passed on February 24th and will be communicated to the Governor.

SB 966 – Signed by the Governor and will become law on July 1, 2017. Regarding property and condo owners associations:

HB 2045 – The Governor has until Midnight on March 27th to act.

HB 2274 – The Governor has until Midnight on March 27th to act.

SB 1231 – The Governor has until Midnight on March 27th to act.

SB 1255 – The Governor has until Midnight on March 27th to act. Regarding the Residential Property Disclosure Act:

HB 2034 – The bill passed on February 24th and will be communicated to the Governor. You can check out the full list of Legislative Agenda bills with descriptions at www.virginiarealtorschoose.com/2017-bills/. Over the coming months, be on the lookout for information regarding 2017’s new laws and how they may impact your business and your clients. As always, if you have any comments or questions regarding policy issues, please email us at Advocacy@varealtor.com.

Legal Lessons

Are you compliant with the way your listings appear online? Virginia

REALTORS® attorney Laura Farley offers up-to-date information on the

rules regarding internet advertising. Visit https://vimeo.com/208340938 today

to view the video!

Legal Video: Advertising Listings Online by Jenny Wortham, Senior VP of Communications & PR

Valley Voice Page 7

News from the National Association of REALTORS®

REALTORS® should be aware that interfering with an existing relationship between an agent and a client could constitute a violation of Article 16 of the REALTORS® Code of Ethics. But there can be confusion over specific prospecting activities and tactics and whether or not they cross the line. Real estate ethics expert Bruce Aydt, ABR, CRB, senior vice president and general counsel at Berkshire Hathaway HomeServices Alliance Real Estate in St. Louis, untangles some of the thorny issues involving client representation and business solicitation that can lead to problems. Question: Would I be in violation of the Code if I sent a prospecting mailing for both buyers and sellers to a list based on specific demographics like income and ZIP code? I am buying the mailing list from a commercial mailing list company. Answer: As long as you follow Article 16 and Article 10 of the Code, you won’t be. First, your prospecting piece must never be discriminatory or express a preference or limitation based on the protected classes in the Code. Standard of Practice 10-3 says “REALTORS® 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.” Though Article 16 is sometimes referred to as the “nonsolicitation” article, this description can be misleading. Article 16 does not prohibit all solicitations or even solicitations of other REALTORS®’ clients under some circumstances. The Article provides “REALTORS® shall not engage in any practice or take any action inconsistent with exclusive representation or exclusive brokerage relationship agreements that other REALTORS® have with clients.” Article 16 applies only to relationships with clients where the REALTOR® has an exclusive representation or exclusive brokerage relationship. If there is no exclusive relationship, Article 16 doesn’t apply. Even when there are exclusive relationships between REALTORS® and clients, there are some circumstances where prospecting that includes contacts with those clients is not an Article 16 violation. Standard of Practice 16-2 makes clear that “Article 16 does not preclude REALTORS® from making general announcements to prospects describing their services and the terms of their availability even though some recipients may have entered into agency agreements or other exclusive relationships with another REALTOR®.” Prospecting is not in violation so long as the mailing pieces are a general announcement of the REALTOR®’s services and terms of availability even if some of the people receiving the mailing are clients of another REALTOR®. So, what constitutes a “general announcement?” Standard of Practice 16-2 says it’s “general” if it is “addressed to all prospects in a given geographical area or in a given profession, business, club, or organization, or other classification or group …” It also doesn’t matter what distribution method is used, whether mail, electronic, telephone canvass, or other advertising (like a billboard). When preparing a mailing to a given geographical area, like a neighborhood or subdivision, it’s not required to be sent to every single property in the neighborhood or subdivision to be a “general” announcement. So, a nondiscriminatory demographic list from a commercial mailing company based on nondiscriminatory characteristics like household income would be a general classification or group. There would be no violation of Article 16 for this kind of mailing. Unethical solicitations are addressed in Standard of Practice 16-2. One type is telephone and personal solicitations of owners when the REALTOR® has identified the owner through the MLS or a sign. The other is when the mailing is not a general mailing but a mailing or distribution where the owners have been identified through the MLS or a sign. Both of these unethical solicitations are based on the REALTOR® “targeting” listed properties through the MLS or a real estate sign. Prospecting is not a violation of the Code if it’s a general distribution and so long as it’s not targeting specific prospects you know are exclusively represented. Have a dilemma? Send your ethics questions to ethics@realtors.org.

NAR April Member Offer OFFER VALID APR 1 — APR 15

YOUR ACTION: Purchase the Online At Home With Diversity® Course

YOUR REWARD: Application Fee Waived for the At Home With Diversity Certification. Purchase the At Home With Diversity online course between April 1st and April 15th, 2017. You must pass the final exam with an 80% or higher and submit your completed certification application form to NAR before June 1st, 2017 to qualify for the waived. You have until June 1, 2017 to apply for the At Home With Diversity certification before the reward expires. Value $75

DETAILS: April is Fair Housing Month! Purchase the At Home With Diversity online course between April 1st and April 15th, 2017. The course teaches you how to assess and understand attributes of diversity in local markets and their impact on the real estate industry, build a business plan and selling strategy to successfully serve all clients, and earn the confidence of potential buyers and sellers, regardless of race, ethnicity, religion, gender, handicaps, familial status, or national origin. After successfully passing the At Home With Diversity online course, active NAR members in good standing may apply for the At Home With Diversity Certification without paying the $75 application fee. The course can be applied toward CE Credit in most states, as well as the ABR, CIPS, CRS, RSPS and PMN designations. The certification is added to your realtor.org directory listings and earns you an official NAR certification kit and access to exclusive AHWD marketing resources and networking opportunities.

Visit http://mvp.realtor.org/ for more information!

When Prospecting Is Unethical by Bruce Aydt Don’t Forget!

September may be REALTOR® Safety month, but it’s

important to think about your safety all year. See below for this month’s REALTOR® Safety Tip!

Valley Voice Page 8

Looking Back

2017 Annual REALTOR® Celebration

February 17th

Broker Forum

March 9th

REALTOR® Safety Presentation March 2nd

Valley Voice Page 10

TOWN HALL MEETING

Join us on Wednesday, April 12th, at 8:00 AM for a Town Hall Meeting! This event will feature Delegate Nick Rush (7th District), Delegate Gregory Habeeb (8th district), Delegate Joseph Yost

(12th District), and Senator David Suetterlein (19th District) and will be a great opportunity to meet with your local representatives. The meeting will be held in the NRVAR classroom, and

a FREE hot breakfast will be provided.

To register, please e-mail mls@nrvar.com, or call the office at 540-381-9354.

R P A C C o n t r i b u t o r s T o g e t h e r w e c a n r e a c h o u r

R P A C g o a l !

Invest in RPAC today! RPAC Fair Share:

Principal Brokers/Appraisers—$99.00

Associate Brokers—$65.00

REALTOR® Members—$35.00

Golden R $5,000+ Charles Burnette Sterling R $1,000+ Jeannette Boyd Beth Dalton Susan Erickson Jeremy Hart Amy Hudson Frank Kregloe Donna Travis NRVAR Capitol Insider $250+ Rachel Anker-Johnson Louise Baker Tommy Clapp John Travis Club/Broker Fair Share $99+ Ward Angle Dennis Bane Donald Barker Diane Boon Judy Chang Walters Katrina Compton Roger Cupp Annette David David Epperley Ed Gallimore Bill Gearhart Darin Greear William Haithcock Kit Hale Leslie Jester David Lane Richard Lavinder Tina Merritt Phillip Morris James Nolen Scott Noonkester Nancy Page Douglas Phillips William Price Bryan Rice George Smith

Jennifer Sowers Jeanne Stosser Jim Wagoner Mary Wright Associate Broker Fair Share $65+ Laura Donnelly Mike Eggleston Margaret Galecki C.R. Gardner Jean Keith Carol Lavinder Tara Skewes Tina Whetzel Agent Fair Share $35+ Curtis Albert Anne-Collins Albimino Sam Albimino Bernadette Alfonso Donita Anderson Stephen Ayers Patti Bass Chloe Bishop Reggie Britts Scott Bunn Sam Burnette Charlotte Chan Chris Chittenden Karen Cox Dari Cupp Tami Cupp Judy Fithian Kerry Gillispie Joyce Graham Sandy Grant Rolfe Grubb Rebecca Hale Roxanne Hale Aaron Harris Johana Hicks Margaret Hicks Matthew Hicks Anne Hite Rachel Hogan

Bill Isenhour Michele Jeuck Chris Johnson John Johnson Carol Lidgard Susanna Lilly Bill Linkenhoker Nancy Massey Ryan McCollum Chris McHone Rhonda Melton Sheila Miles Priscilla Morris Patty Mostaghimi Mike Noren Marshall Overstreet Dave Phillips Vickie Phillips Mary Piemonte Pamela Powell Adams Jeffrey Price Derek Reynolds Benita Rice Greg Richardson Ellen Rorrer Megan Roschelli Susan Russell Janet Sadler Hank Schneider Camden Shaver John Skelton Tim Smoot Tracy Songer Desi Sowers Tim Telling Deborah Toney Terry Vangelos Greg Vidmar Brenda Woody Sheila Zellers Participation Up to $35 Dwight Atkinson Vanessa Bartley Greg Burnop

Jonathan Clark Barry Collier Alice Cook Kaleb Delk Eric Greenwood Kelly Griffin Jennifer Hanks Crystal Jeuck Catherine Kincaid Joan Mitchell John Morehead Stephen Munro Ray Musselman Rebecca Powell Jim Sarver John Scalise Rayne Stenger George Thomas Tom Trump Affiliate Member Participation Jamie Kerney Brandon Nicely Susan Stroup Scott Turner

Since 1969, the

REALTORS® Political Action Committee (RPAC) has promoted

the election of pro-REALTOR® candidates across the

United States. The purpose of RPAC is clear: REALTORS® raise

and spend money to elect candidates who understand and

support their interests. The money to accomplish this comes from

voluntary contributions made by REALTORS®. These are not

members’ dues; this is money given freely by REALTORS® in

recognition of how important campaign fundraising is to the

political process. RPAC doesn’t buy votes. RPAC enables

REALTORS® to support candidates that support the issues that are

important to their profession and livelihood.

2 0 1 7 A f f i l i a t e M e m b e r s

For a comprehensive contact list, including address, phone numbers, and emails, please contact the Association Office.

Don’t forget to like us on Facebook and follow us on Twitter! w w w. f a c eb o ok . c om / n r v r ea l t o r s

@ n r v r e a l t o r s

Platinum Members—$2,000 ALCOVA Mortgage

Atlantic Bay Mortgage Group First Bank & Trust Company First Community Bank Freedom First Credit Union

Movement Mortgage Patrick K. Moore, P.C.

Prime Lending Wells Fargo Home Mortgage

Gold Members—$1,000 BB&T Mortgage, Inc.

Farm Credit of the Virginias Hometown Mortgage Member One Federal Credit Union

Southwest Virginia Moving & Storage Spicer Law Firm, P.C.

The Shaheen Firm, P.C. Virginia Title Center

Silver Members—$500 Brooks Title & Escrow

Bug Man Exterminating, Inc.

Law Office of Diane L. Bibb Mid-States Title of SWVA Pillar to Post

Prosperity Home Mortgage, LLC

Quality Pro Home Inspections Residential Home Funding, Corp.

The Roanoke Times Union Mortgage Group

VHDA

Whitescarver Photography, LLC

Bronze Members—$250 A 2 Z Organizing

Advanta Clean of Southwest Virginia

Advantage Title Insurance & Settlement, Inc.

ALL Pest Control

All Seasons Pest Control, Inc.

Appalachian Inspections, Inc.

Back to Nature Landscaping, LLC.

Better Bathrooms & Kitchens

Brown Insurance

Clinton’s Transfer & Storage

CMG Leasing

Community Housing Partners

D.D.C Pest Solutions

Dunmar Moving/Allied Van Lines

Embrace Home Loans, Inc.

Eric Johnsen State Farm

First Citizens Bank

Foxridge/Hethwood Apartments

Gay & Neel, Inc.

Henderson Roofing

Home Place Magazine

Home Warranty of America

Inspections, Inc.

Legacy Builders NRV, Inc.

National Bank

National Property Inspections

Oculaero, Inc.

Project Move Up

Quest Floor Care, Inc.

Radford Radon Abatement

Rockingham Insurance

SAS Builders, Inc.

Service Experts Heating & Air

Shelter Alternatives

Signature Property Management

Stage 2 Smile, LLC

Stateson Homes

Superior Exterminating Co., Inc.

SunTrust

The Crossings at Blacksburg

The Real Estate Book of Blacksburg & The

New River Valley

True North Title

Virginia Tech Department of Agricultural and

Applied Economics

Virginia Varsity Self Storage