In 2018 C.A.R. will assess you an extra $100 to be a REALTOR®.  Yes, that is a big cost to your already stretched budget.  I would venture to guess, however, that that thinning wallet of yours could use a few more listings.  

While the population of California continues to grow, real estate transactions are at about the same number that they were in the 1970’s.  This is not only a problem for REALTORS®, but for young families trying to stay in Orange County.  The median home price in Orange County is upwards of $700,000.  With 20% down, a family would have to make at least $142,000 a year to afford that home.  What we have is a huge supply shortage and it’s hurting everyone.  

One of the largest factors contributing to our current supply shortage is the nature in which our Proposition 13 tax structure makes it unaffordable for people to leave their homes.  In Orange County, people are staying in their homes an average of 20 years, and for many it’s not by choice.  

C.A.R. has decided to take a significant step towards solving this problem.  The C.A.R. Board of Directors voted to work toward the placement of a ballot initiative on the November 2018 ballot.  This initiative would allow property owners over 55 to move to a home at equal or lesser value, and keep their lower property tax base.   It would also allow them to buy up and create a blended tax rate. 

Should this initiative pass it could free up as many as 40 to 60 thousand transactions a year in the state of California which releases the valve on inventory, lowers prices, and helps your business.  

Unfortunately, between signature gathering and campaigning, the initiative will probably cost between $30 and $50 million to pass.  Hence, the $100 assessment.  While the cost is undoubtedly burdensome. The benefit is well worth it.  

• $100 Member Assessment
• Property tax basis transfer ballot measure that will likely cost between $30 & $50 million to pass
• If passed could free up 40 to 60 thousand California real estate transactions a year. 
• This is much needed inventory that helps potential homeowners and REALTORS® alike.
  
  
  
  

In Memoriam: Jan Withee Bobst It is with great sadness that we announce the passing of a beloved member, Jan Withee Bobst. Jan was in the Escrow Industry from 1970 to 1994, and was involved in OCEA, AEA, OCAR and RIAOC.  She owned Jan Withee Escrows (later, JW Escrows) from 1980 until her retirement. Daughters Karen Withee and Tari Coleman followed her into the industry, where they continue to work. Jan was predeceased by her daughter Debbie Withee Fielden, a Certified Escrow Officer who served as OCEA’s 1995 President.

Viewing:                    
Friday, October 6, 2017                               
2:00 – 3:00 PM                                   
Heritage-Dilday Memorial Services
17911 Beach Blvd., Huntington Beach, CA 92647
 

Celebration of Life:  
Sunday, October 15, 2017                           
12:00 – 4:00 PM
El Bekal Shrine Center
1320 S. Sanderson Ave., Anaheim, CA 92806 

• Color scheme
  • Scarlet and Gold – the U.S. Marine Corps and Shriners International colors
• Lunch buffet will be served. *
  • Please RSVP prior to Oct. 12 for the catering head count, either through “Messenger,” or via email: taricoleman1@gmail.com 
    
    

Burial:                       
Friday, October 20, 2017                             
12:00 – 12:30PM *
Riverside National Cemetery
22495 Van Buren Blvd., Riverside, CA 92518 

* Please arrive in time to line up at noon for the caravan to the burial site, where the service will take place from precisely 12:15 – 12:30 PM

If you were unable to attend our most recent MLS Forum or just want a refresher on the topics. You can view a video recording of the event below.

We are delighted to announce that the Leadership Development Committee has selected twenty outstanding candidates to participate in the Orange County REALTORS® 2^nd Annual Leadership Academy. Competition for these limited spots was strong, and we congratulate the following people for their successful application and acceptance.  It is the mission of the academy to give participants the confidence to embrace the responsibility to serve as a leader in the real estate industry and beyond. The eight-month program begins on September 12, 2017.

RealSatisfied is a customer satisfaction platform designed exclusively for the real estate industry. The platform allows you to send customer satisfaction surveys to both buyer and seller clients at the close of each transaction, allowing you to collect valuable client feedback and testimonials to help generate new business.

When you close a transaction, RealSatisfied will send you an automated reminder that a survey is ready to send. At that point, you can opt-in and create your account (one-time) to easily send client surveys, or you can choose not to participate and opt-out entirely.

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• syndication to Realtor.com
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• widgets for sharing your client feedback

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Because September is REALTOR® Safety Month, we have devoted a special section in this issue to provide you with some tips about how to guard your online presence, how to use smartphone apps for personal safety, how to avoid several of the most common scams, and how to “sell at the safest speed.”

Featured articles:

• OCAR Committees Are Working for You
• NAR's New CEO: “We Must Lead, Not Be Led”
• The State Update - September/October
• C.A.R. Small Claims Court Assistance Manual Can Be Helpful
• 13 Ways to Stay Safe
• Selling at the Safest Speed
• Don’t Let Your Social Media Guard Down
• Be Smart About Personal Safety with Apps
• Scams 101
• Gadgetry: August Smart Lock
• Orange County Housing Update: Not Anytime Soon!
• Dave's Top Ten Economic Factors
• Zillow’s Instant Offers: The Sound of Shoes Dropping?

Familiarity with these ten factors will enable you to address questions your clients may ask about the real estate market, especially about real estate values and where they may be headed. 

By David Girling
GIRLING REAL ESTATE INVESTMENT GROUP 

Rising home prices and rents, reduced housing affordability, and limited inventories dominate the headlines. Home prices, rents, affordability, and home ownership are all interrelated, and each will be examined separately. Inventories are still constrained, and although not on the current Dave’s Top 100 list, the Dow Jones Industrial Average is again at all-time highs, in large part because of the still-low yields in the bond markets. 

As with previous editions of Dave’s Top 10, these ten factors convey different messages about real estate. Some are positive for the housing market, others are negative, and still others fall somewhere in between. As REALTORS®, we need to read past the headlines and make sense of the facts for our clients. The goal of Dave’s Top 10 is to give you some tools to address questions that may arise because of economic and other factors mentioned in the news. 

10. Tax Reform

The effect of Trump policies on the housing market has been minimal thus far, but housing tax benefits are under close review at both federal and state levels. Suggested changes include doubling, as part of the Trump plan, the standard deduction and eliminating state and local tax deductions. “The mortgage interest deduction and the state and local tax deduction make homeownership more affordable,” commented Bill Brown, president of the National Association of REALTORS® (NAR). “By doubling the standard deduction and repealing the state and local tax deduction, the plan would effectively nullify the current tax benefits of owning a home for the vast majority of tax filers.” 

Other initiatives include State Assembly Bill 71 (Chiu), which would disallow the mortgage interest deduction for second homes and create split tax rolls (residential versus commercial). 

Takeaway: Some lawmakers view housing tax benefits as subsidizing the wealthy. Tax changes are coming, and the impact of these changes on home values and on the potential home buyer’s decision-making process could be significant. 

9. Interest Rates

For the past three or four years, the Federal Reserve has employed a monetary policy that has kept interest rates low (see Figure 1). Rates have climbed since the election but are still near historical lows. The expectation was that Trump policies would lead to higher rates, but that has failed to materialize because so little has been accomplished in Washington. Although the Fed has embarked on a tapering program, many economists do not expect a “shock” so long as incomes are not outpaced by any increase in rates.

Figure 1. For the past three or four years, the Federal Reserve’s monetary policy has kept mortgage interest rates at historical lows; however, rates have increased slightly since the 2016 presidential election. 

Takeaway: One of the effects of increasing mortgage interest rates is a loss of purchasing power. The rule of thumb is that a one percent change in rates equals a 10 percent loss or gain in purchasing power. As REALTORS®, we should be able to convey to our clients exactly how an increase in rates may impact them financially. 

8. Housing Inventories

Continued low housing inventories have added support to home values. According to Attom Data Solutions, homeowners are staying put longer, an average of 9.2 years in California and 10.3 years in Orange County. Historically, the average has been 6 to 7 years. I believe that inventory levels will not improve significantly and that turnover will remain low for several reasons. Some homeowners were affected by the 2007 crisis and may still have negative equity. Other homeowners are reluctant to give up low mortgage rates, do not want to pay higher property taxes, or fear they will not find an adequate replacement home if they sell the one they currently own. Also, homebuilders are underperforming, which means that the home supply is inadequate. And many single-family homes that might be listing candidates were purchased by investors during the past few years and have become part of the rental pool. 

Takeaway: Low supplies and high demand will continue to support home prices for the foreseeable future. This is a basic economic principle. 

7. Housing Affordability

According to the California Association of REALTORS® (C.A.R. ) Housing Affordability Index (HAI), the percentage of California home buyers who could afford to purchase a median-priced, existing, single-family home as of the second quarter of 2017 was 29 percent. The number was even lower for Orange County at 21 percent. Assuming a conventional, 30-year fixed-rate mortgage with a 20 percent down payment, typical home buyers would need to earn $110,000 and $158,000 per year to afford a median-priced home in California and Orange County, respectively. The corresponding housing payments (including principal, interest, and taxes) would be $2,770 and $3,950 per month. 

The HAI peaked at 56 percent at the beginning of 2012 and has dropped since home prices started to appreciate, with the median price in California more than doubling since February 2009 (see Figure 2). The median price for a home in Orange County has risen more than 80 percent in that same period.  

Takeaway: Affordability is a big concern for most economists, and the situation does not appear to be improving. Ironically, higher interest rates made affordability levels even lower before the mortgage “meltdown”; however, affordability was not an issue then because of the ease of obtaining credit. Recall, for example, low teaser rates, no money down, and negative amortization loans.

Figure 2. According to the CAR’s Housing Affordability Index, affordability for California and Orange County peaked at the beginning of 2012 and has dropped since homes started to appreciate. 

Another driver of affordability is rents. They have increased in parallel with housing prices, growing 4.8 percent year over year in Los Angeles according to Apartment List. Rents in Los Angeles are also rising faster than they are in other cities. The yearly increase is higher than the statewide average increase of 4.2 percent. Nationwide, rents are up just 2.9 percent in the same period. 

Takeaway: Renters are future homeowners. Do not overlook them.
 

6. U.S. and California Homeownership Rates

Across the United States, the homeownership rate stands at 63.6 percent, having peaked at 69.2 percent in 2004 and reached its lowest level of 62.9 percent in the second quarter of 2016 (see Figure 3). According to Lawrence Yun, NAR’s chief economist, “There are fewer homeowners today compared to a decade ago, while renter households have risen by 8 million.” 

Takeaway: California ranks 49th in homeownership according to C.A.R. As a result, state lawmakers are under pressure to find ways to enable homeownership.

Figure 3.  Across the United States, the homeownership rate peaked at 69.2 percent in 2004 and currently stands at 63.6 percent. 

5. Millennials

As older generations downsize and sell, millennials (defined as having been born in the early 1980s and the late 1990s through the early 2000s) will fill the void. However, because of the high cost of housing, accumulated student debt, low wage growth, and lifestyle changes (delayed marriage and childbearing), they have yet to purchase homes to the extent that their age segment has done historically. 

Takeaway: Do not overlook members of this important population segment. Putting time into understanding and educating them about the benefits of homeownership will pay dividends for you in the future. 

4. Foreign Investment

Foreign investment and low interest rates were two of the main reasons that the real estate market recovered. Despite a strong U.S. dollar, which causes U.S. real estate to be viewed as more expensive, foreigners continued to purchase U.S. homes.

Lawrence Yun says, “While the strengthening of the U.S. dollar in relation to other currencies and steadfast home price growth made buying a home more expensive in many areas, foreigners increasingly acted on their beliefs that the U.S. is a safe and secure place to live, work, and invest.”  This observation is borne out in NAR’s recently released 2017 Profile of International Activity in US Residential Real Estate for April 2016 to March 2017.

Foreign buyers purchased $153 billion of residential real estate, up from $102.6 billion, and a 50 percent increase. This volume represents 10 percent of the dollar volume of existing home sales, up 8 percent from the previous period. The top five countries (51 percent of total) to invest in U.S. residential real estate were China (20.7 percent), Canada (12.4 percent), the United Kingdom (6.2 percent), Mexico (6.1 percent), and India (5.1 percent); and the average price for a home purchased by a foreign buyer was $536,9000 versus $277,700 for the average U.S. home. Florida, California, Texas, Arizona, and New Jersey accounted for 54 percent of the total volume by foreign buyers, and 44 percent of these buyers paid all-cash. 

Takeaway: Foreign investors continue to impact the U.S. real estate market, and REALTORS® need to stay focused on this segment of buyers. 

3. Home Prices and Home Sales

Price appreciation for median-priced homes in California and Orange County, as measured by the year-over-year change for each month, has leveled off in a range of 3 to 6 percent since 2014 (see Figure 4). This trend continues with the latest results of the major home price indices, including the S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index, which showed prices increasing 5.5 percent annually in April.

Figure 4. Price appreciation for a median-priced home in California and Orange County has leveled off in a range of 3 to 6 percent since 2014. 

Graphs such as the one shown in Figure 5 and indices like the Orange County Home Price Index (OCHPI) can help REALTORS® understand the relationship between current housing prices and peak levels in their focus areas. The OCHPI, which was first introduced in the July/August 2016 issue of OC REALTOR® (see pages 50–53), includes median prices for standard home sales in Orange County since January 1, 2006, in the following ten Orange County cities: Anaheim, Costa Mesa, Fullerton, Huntington Beach, Irvine, Mission Viejo, Newport Beach, Orange, Santa Ana, and Tustin. 

The OCHPI enables REALTORS® to compare housing values in a specific area. In the second quarter of 2017, this index resulted in a value of $750,000 for a standard home in Orange County. For purposes of the OCHPI, a standard home is defined as a single-family detached home that measures between 1,800 and 2,200 square feet and has three bedrooms and two baths. For more information about this index and the associated methodologies, visit http://www.girlingreig.com/blog/category/sc-research-group/.    

Figure 5. In June, the California and Orange County median home prices were $555,100 and $795,000, respectively, up 6.9 percent and 5.4 percent from the previous year according to CAR. 

Takeaway: As prices continue to rise, affordability will be negatively impacted, especially if home price appreciation outstrips wage growth. In addition, values in some areas of California are approaching, or have surpassed, peak levels. REALTORS® need to understand the relationship of current prices to peak levels in their focus areas. 

2. Delinquency Rates

According to CoreLogic’s latest Loan Performance Insights Report, 4.5 percent of U.S. mortgages were in some stage of delinquency in May 2017, representing a 0.8 percentage-point decline from 5.3 percent in May 2016. Delinquency rates continue to decline; however, they are still higher than they were before the “mortgage meltdown.” An alternative measure of delinquency rates is the Delinquency Rate on Single-Family Residential Mortgages, Booked in Domestic Offices of All Commercial Banks (see Figure 6). 

Takeaway: Delinquency rates are worth watching to see if the present downward trend continues.

Figure 6. The delinquency rate for the first quarter of 2017 was 3.90 percent compared with the peak rate of 11.36 percent, reported for the fourth quarter of 2009.
 

And the Number One economic factor REALTORS® should be following today is—  

1. Disruptive Technologies

With the advent of Zillow, Trulia, social media, and many other technologies, the real estate industry has been turned upside down in the past few years. These disruptive technologies have forced REALTORS® to reexamine how we do business and, in many instances, to make drastic changes in the way we interact with clients. The latest development is the initial public offering filing by Redfin with its billion-dollar valuation. All brokerages are watching closely because it could have significant implications for our industry. 

Compass Real Estate Group, a luxury real estate brokerage startup with 1,200 agents, is also leveraging technology and recently opened an office in Newport Beach. This company is watching the Redfin IPO closely in anticipation of its own filing. Both Redfin and Compass are examples of the many technology solutions that have surfaced over the past few years. They all warrant examination. 

Takeaway: REALTORS® should keep a watchful eye on these new technologies and adapt their business approach to the changes that result. Otherwise, they may be left behind.

David Girling completed his undergraduate work at the University of Southern California and earned the degree of Master of Business Administration from the Anderson Graduate School of Management at the University of California, Los Angeles. In 2008, he formed Girling Real Estate Investment Group (Girling REIG) with his father, Bing, and has more than thirty years of experience in the financial services industry.  Dave and Bing are also affiliated with Villa Real Estate.

In response to the devastating effects of Hurricane Harvey, I am inspired to send this letter to you and to all 14,000+ OCAR REALTOR® and Affiliate members. It is about the concept of helping and giving, and “paying it forward,” in which so many of us believe.  

As you may know, the Orange County Association of REALTORS® maintains a special fund under the OCAR Cares Foundation, which gives financial aid to our own members during times of extreme financial distress or family crisis. This program is funded largely by the efforts of our members, who sponsor fundraising events such as our annual Palooza and our Golf Tournament. Over the past few years, we have used money from this fund to help many of our members get through their struggles and, with your help, we will continue to do so well into the future.  

Although our OCAR Cares Foundation fund is specifically reserved to help our REALTOR® and Affiliate members, in the past we have contributed money from our General Fund for crisis situations nationwide. For example, we made donations following both the 9/11 and Hurricane Katrina disasters.  

And on August 29, in response to the devastation of Hurricane Harvey, we took swift action to contribute once again. Rather than waiting for the regular September meeting of the Board of Directors, we sought approval of the Board via a rare email vote to donate to the relief effort. Within twelve hours, every one of our Directors had responded, even though some of them were out of town on business or away on family vacations, and their decision was unanimous.

The Association has now contributed $5,000, to be divided equally between the National Association of REALTORS® Relief Fund (in partnership with the American Red Cross) and the Texas Association of REALTORS^® Disaster Relief Fund. 

As events continue to unfold in Texas and Louisiana, to help those in need, NAR’s REALTOR® Relief Foundation is collecting donations at www.nar.realtor/programs/realtors-relief-foundation/donate. I hope each of you will consider adding to the $5,000 contribution your Association has already made on your behalf. 

This is but one example of the many ways in which Orange County REALTORS® consistently give back to our communities, not just locally but globally. I am truly proud of our members’ commitment to helping people in distress. 

As always, if any of you have questions, concerns or suggestions about how your Orange County Association of REALTORS® can help you in any way, please feel free to call or text me on my direct cell phone at (949) 291-7250, or email me at craig12@cox.net.  

With thanks,

Craig Borner
President, Orange County Association of REALTORS®

Do you know a super REALTOR®, Affiliate, or Volunteer? Each year, at the Annual Installation of Officers and Directors, we recognize one REALTOR® and two Affiliate members who exemplify professional excellence and service to the real estate community.

In addition, we will be honoring one member for exceptional volunteer service to the local community. This honoree also will be recognized at the installation on Wednesday, November 30 at The Center Club in Costa Mesa and will receive $250 for the community organization he or she designates.

Do you know someone—including yourself—who deserves to be honored in one of these ways?  

Download and submit a form:

REALTOR of the Year Nomination Form

Affiliates of the Year Nomination Form

Volunteer of the Year Nomination Form

Completed forms may be emailed, faxed or mailed to either Orange County REALTORS® office. A single nomination ensures consideration. All nominations must be received by Friday, October 20, at 5:00 p.m.

If you don't already know about or use Google Alerts for your business then you are in for a treat!  Google Alerts allow you to keep up on posts all over the internet regarding a specific search phrase. The search phrase can be your individual name, your company name, your favorite celebrity or sports team and even your real estate listings! To track shares or posts about your listings, we recommend you create Google Alerts for each property address.  Below are instructions on how to create a Google Alert.

Create an alert

1. Go to Google Alerts.
2. In the box at the top, enter a search phrase you want to follow (e.g. 12345 Main St Laguna Hills, or ABC Realty)
3. To change your settings, click Show options. You can change:
   • How often you get notifications
   • The types of sites you’ll see
   • Your language
   • The part of the world you want info from
   • How many results you want to see
   • What accounts get the alert
4. Click Create Alert. You’ll get emails whenever we find matching search results.
5. You will then be asked to sign into an existing Google account or create a new account.

When excluding a listing from the MLS, It is required to submit to the MLS an exclusion form within 2 business days of the signed listing. All exclusion forms must be submitted to www.crmls.org/excludelisting.

In order for Days on Market not to accumulate during the exclusion period, no marketing must be occurring AND the CRMLS Exclusion form must be submitted with the no marketing selection being made. The C.A.R SELM form does not give this provision.

Below is the MLS rule that governs Days on Market.

7.9.1 Impact on Days on Market (DOM) As it Pertains to the Exclusion Form DOM stands for Days on Market, not Days on MLS. The DOM calculated in the MLS and reported to the various internet sites will be when marketing begins. As a general rule, the first Day on Market will be the beginning date of the Listing Agreement, which is either the beginning date identified on the agreement, or the date of the last signature required to make the listing agreement valid, whichever is later. The DOM may alternatively begin at a later date as long as no marketing of the Property occurs and the CRMLS Exclusion form is utilized. Marketing is identified as:

(a) Marketing is any communication made to the public containing any information, details, price or terms of any potential sale of the Property, or any communication made to the public in regard to the Brokerage firm or Agent’s representation of the Seller. Marketing includes, but is not limited to: 1) Sign on the property; 2) Internet Website posts; 3) Social Media Posts; 4) Flyers or Advertising; 5) Open Houses.

The CRMLS exclusion form can be found in several locations including the OCAR zipforms library, www.ocar.org/mlsforms , or www.crmls.org/excludelisting

Below is a video that outlines how to use the new exclusion form

https://youtu.be/RSz6xR50hD8

Please note, that Seller and Listing agent must complete the form and be signed by the broker/manager.

OCAR 2017 President, Craig Borner is pleased to announce the election results of the 2018 Officer positions of President-Elect and Treasurer held at the June 28, 2017, Orange County Association of REALTORS^®’ Board of Directors meeting. 

Board member Matt Clements will serve as President-Elect in 2018, President in 2019 and Immediate Past President in 2020 and Adam Rodell will serve a one-year term as Treasurer in 2018.  Adam currently serves as the 2017 Treasurer.

“My congratulations to Matt who has served on the Board of Directors since 2015, and Adam who will be serving his second term as Treasurer in 2018.  Both of these gentlemen bring a wealth of knowledge and experience to the Association,” said Craig.

“Our Board of Directors demonstrates aptitude, experience and the commitment to provide strong leadership; It is gratifying that Matt and Adam took my encouragement to run for these positions, and I look forward to the opportunity of continuing to work with them in the coming year.”

Matt Clements: Matt has been a REALTOR^® since 2004 and is a proud 4^th generation real estate agent.  He is CEO, The Clements Group, Berkshire Hathaway HomeServices California Properties, Laguna Niguel.

Adam Roddell: Adam has been a REALTOR^® since 1998, and he is an agent with RE/MAX Select One in Huntington Beach.

• Putting the Focus on Leadership
• The State Update - July/August
• PACE Financing Puts California Homeowners at Serious Risk
• Get Your Broker’s License with Orange County REALTORS®
• Introducing OCR’s Five Newly Elected Directors
• “Associate Broker”: A Term Still in Search of a Definition
• Incentivizing Home Ownership and Tax Reform: It’s Personal!
• Not as Hot as the Spring
• Risk Management Forum
• CRMLS Revises Its Rules and Regulations
• Gadgetry : The Ring™ Video Doorbell
• 7 Steps to a Safer Swimming Season
• Announcing the New Shop Local Program

All Supra ActiveKEYs will be shut off effective Monday, September 18.

All ActiveKEY users must switch to eKEY service in order to still access Supra lock boxes. This means that you will no longer be able to access lock boxes and you will incur fees. All ActiveKEYs are leased, therefore, you are responsible for the annual lease payment until they key is returned. Otherwise, you may pay the liquidated damages on the key.

You have the following options:

1. Return the ActiveKEY and sign up for the eKEY monthly service for only $14.78/month (the $50 activation fee will be waived)
2. Return the ActiveKEY and cancel Supra service until needed ($50 activation will apply when activating Supra service in the future)
3. Mail your ActiveKEY to us (please make sure you get a proof of delivery) and advise us by email of your intention to cancel your Supra service.

What you need to know about the transition:

• All ActiveKEYs will be shut off on September 18

• If you have an ActiveKEY, you must return or exchange it. Otherwise you will incur fees.

• You must have a smartphone or tablet in order to use the eKEY service

• You must download the Supra eKEY app

• You will need to know your Apple ID/Password for iPhone users or your Google Email/Password for Android users.

• You can also purchase an eKEY Fob for only $35+tax (regularly $59.95+tax) until September 30, 2017. Learn more about the eKEY Fob.

Worried about the eKEY not working in areas of little to no cell service?  Watch this video!

By Tony Capitelli
GOVERNMENT AFFAIRS DIRECTOR

On April 26, President Donald Trump released a one-page tax reform proposal. The goals of this proposal are to  

• Grow the economy and create millions of jobs,
• Simplify our burdensome tax code,
• Provide tax relief to American families—especially middle-income families—and
• Lower the business tax rate from one of the highest in the world to one of the lowest. 

Those in the real estate industry who are concerned about possible elimination of the mortgage interest deduction will not find much reassurance in Trump’s brief proposal. It makes only causal mention of these incentives with the words, “Protect the home ownership and charitable gift tax deductions.” Your guess as to what that means is as good as mine.  

But more important than focusing on the specific provisions of any proposal is understanding why government policy should incentivize home ownership. As an engaged industry, our purpose is not to obstruct but, instead, to support at all levels of government programs and policies that encourage home ownership and protect real property rights. 

There are enough theories about tax reform to keep Congress busy from now on. More important than theories, however, is the proven way in which tax incentives have worked to encourage home ownership and, thereby, to create and preserve the American Dream. 

The United States was once a renter society, ruled by aristocratic landowners. Fortunately, unlike any other period in history or any other place on earth, those landowners unselfishly built the lasting mechanisms of liberty and willingly spread the wealth of landowning. 

It is difficult for even the staunchest limited-government advocate to deny the correlation between government’s involvement in housing and the increase in home ownership. In the past century, home ownership was responsible for the largest redistribution of wealth in American history. It is the easiest way to move up the economic ladder, and it is the best way for those who have not inherited wealth to build it. 

The mortgage interest deduction and other tax incentives are part of a bigger picture. On a national scale, this picture includes not only tax incentives but also the government-sponsored enterprises like Fannie Mae and Freddie Mac and their work in the mortgage market. Locally, home ownership can be discouraged by factors like restrictive zoning and government-imposed building costs and fees. 

Whatever the issue, however, our messaging needs to be focused on what’s important to our industry and our clients. For us REALTORS®, this discussion is not theoretical and impersonal but emotional and personal because it affects where we live and how we work. Any decision about the “business” of buying, selling, and taxing homes is personal for us. And it is personal for our clients. Emotions cannot be ignored when the decision being made affects the largest purchase of their lives.  

The facts and figures are important, and I would encourage you to educate yourself about the effect of the home ownership incentives in the tax code. But political discourse often devolves into surface-level talking points that neither express feelings adequately nor result in a more meaningful dialog about the facts at hand. 

Remember, this time, it’s personal. Don’t just tell lawmakers what you want them to do; tell them why it matters. We cannot let them forget that we are fighting to preserve the American Dream. That message will stick with them long after the numbers have changed and the reasons for those numbers have been forgotten.  

As a husband and father, I am thankful that my family has a roof over its head and a solid foundation for economic success. More important than either economic theories or talking points is the proven way in which tax incentives have worked in the real world to encourage home ownership and, thereby, to create and preserve the American Dream. 

Disclaimer: The content in this Government Affairs column is intended as a general advisory and is not intended as a substitute for individual legal advice. Advice in specific situations may differ depending upon a wide variety of factors; therefore, readers with specific legal questions should seek the advice of an attorney.

In Memoriam

 Barbara Reily Dostal
1930-2017

Barbara Reily Dostal grew up in the Los Angeles area, where she graduated from Immaculate Heart High School in Hollywood as a member of the class of 1948. After earning a degree from Woodbury University in Burbank, she became a teacher at St. John the Baptist in Costa Mesa. Perhaps because Barbara welcomed the opportunity to meet people, she entered real estate; and for nearly thirty years, she was a REALTOR® in the Irvine area.

When Barbara was not selling homes, she enjoyed helping youngsters in need throughout Orange County. Her talents were welcomed at Orangewood Children and Family Center in Orange, at the Lighthouse Learning Center in Santa Ana, and elsewhere. In addition to volunteering, Barbara filled her spare time by traveling, raising orchids, and painting with water colors.

Barbara is survived by two sons, Kevin Michael Reily and Sean Patrick Reily; two daughters, Coleen Patricia Reily and Kathleen Reily-Dixon; and three grandchildren—with whom she shared her love of life.

At 11:00 a.m. on Saturday, June 17, family members and friends will gather at the Woodbridge Village Association Clubhouse, 31 Creek Road, Irvine, for a service to remember Barbara and to celebrate her life well lived. Lunch will be served following the service. For those who may not be familiar with the clubhouse, parking is available behind the building.     

The Orange County Association of REALTORS^© (OCAR) launched its inaugural Leadership Academy in September 2016 and accepted twenty applicants into the program. 

The program is designed to train potential leaders to develop specific skills and perspective to achieve effectiveness in leadership, business, and life.  Rita Tayenaka, Academy Chair and former President of the Orange County Association of REALTORS^© said, “It is the goal of the academy to give participants the confidence to embrace the responsibility to serve as a leader in the real estate industry and beyond.”  

She noted, “Several of our participants have already stepped up to leadership roles not only within OCAR, but at the state level of other real estate industry organizations such as the Women’s Council of REALTORS^©, and locally as President-Elect of the Aliso Viejo Chamber of Commerce.” 

“We are proud to acknowledge the graduates of our first Leadership Academy," stated Craig Borner, 2017 President of OCAR. "They have completed the eight-month program and a legislative visit to the State Capitol. Some have already accepted leadership roles within OCAR, and many are looking to embrace future leadership opportunities with OCAR and the community. We are delighted that graduates Dorinda Francois and Danielle Corliss were recently elected to serve on the OCAR 2018 Board of Directors.”  

Graduates of the program are:
Josh Atwood - Alpine Mortgage
Karen Benefield - Casa Bella Realty Group
Cheryl Carrera - @Vantage Real Estate
Lynn Clancy - New American Funding
Danielle Corliss - Corliss Realty, Inc.
Dorinda Francois - Dorinda Francois Real Estate
Suzanne Gignoux - Keller Williams Realty
Torey Gilbert - Veranda Realty
Donna Hollingsworth - First Team Real Estate
Debra Krumboltz - HomeSmart, Evergreen Realty
Liz Lewis - RE/MAX TerraSol
Len Malena - Coldwell Banker – Powered by ziprealty.com
Katie Martin - First Team Real Estate
Ron Pascual - RE/MAX TerraSol
Lacy Robertson - Keller Williams Realty
Heidi Stoops - Star Estates
Cindy Uhrik - Uhrik Group
Kathy Wall - Sierra Pacific Mortgage
Eric Wu - Excelerate Capital
Lorraine Zuschlag - HomeSmart, Evergreen Realty

Dave Stefanides, OCAR CEO is delighted with the caliber of the graduates and is hopeful that many of them will give back and mentor future Leadership Academy participants. 

The instructor-led training programs are conducted monthly. The 2017-2018 Leadership Academy is now accepting applications and the deadline to apply is July 28, 2017 by 5:00 p.m. For more information visit www.ocar.org/leadership-academy.