MEETING AGENDA | October 11th, 2019



MEETING AGENDA | October 11th, 2019REAL ESTATE MARKET OUTLOOK Fall season is here and it officially marks the slow season of the year. Pending Sales for the four main Association boards is slowing down (Graph 1) Our sales have been sluggish throughout the year and should remain the same. In addition, active listings have been decreasing between 8% to 25%.(Graph 2) As the year comes to an end, we should see further decrease in listings. One good news that could be associated with decreases is the Percent of Original Price Received. As we have been seeing for the past few months, sellers are slowly realizing the fact that they need to reduce their price in order to sell in current market. (Graph 3) The low mortgage interest rate is also another good news as it is floating around 3.7% as of 10/10/2019 (Graph 4). Experts are predicting that the mortgage rate might experience more decreases by the end of the year due to the fed cutting the Short-Term Interest Rate the 2nd time in 2019 by 0.25 points. Historically, the fed reduces interest rates to lower borrowing cost and stimulate the economy. Although the U.S economy is performing strong with historically low unemployment. Business Investments and exports have weakened due to the Trade War and various uncertainties in the political arena. On the real estate side, buyers are equally concerned about these uncertainties, a decrease in foreign buyers (36% decrease), trade war and anticipation of an economic recession. Home ownership is still yearned for by buyers. However, they are mostly on the sidelines. With active listings projected to decrease for the next 3 months, buyers should be more willing to buy between January to march of next year when they realized market inventory is decreasing. Hence, we encourage agents to work on sellers leads, pocket listings and signing listings for the next few months so that they are ready for jump in buyer demand early 2020. GUEST SPEAKERSuper Session: CAR Form Updates and Legal Session (Right After Office Meeting) Gov. Hutchinson, Assistant General counsel of the California Association of RealtorsGraph 1 (Pending Sales 4 Main Associations) Graph 2 (Active Listings 4 Main Associations) Graph 3 (% of Original Price Sold 4 Main Associations)Graph 4 ( 5Y Mortgage Interest Rates) OFFICE ANNOUNCEMENTS Non-Licensed Assistant Job Duty - GuidelineOur brokerage has seen an increase in non-licensed assistant, and it is very important for agents who have non-licensed assistant to know what the allowed Job Duties are to prevent problems surfacing. Please contact CK for the Guidelines. Statewide Rent Control! Now What? With the signing of Ab-1482, many California rental properties are now subject to rent control. The maximum allowable rent increase rates will be effective January 1st, 2020. Few things you need to know. What is Max Rent Increase rate (5% fixed increase rate +county rate of inflation) in different counties, what rental properties and cities will be included and NOT included with the rent control? and How will “just cause” affect tenant eviction?. Contact CK for information regarding max rent increases base don county and the detailed text bill for AB-1482. Certain type loan under $400,000 is no longer required appraisal reportFHA, VA, FNMAE, FNMAC are not part of these type of loan. It is only based on the valuation model only to assess for ernor signed bill to address housing crisis This new bill will make it easier for developer to obtain entitlement from city and county. Any dispute from the neighborhood to stop any approved project will be more difficult. City and County cannot unreasonably withhold and delay review of approve entitlement longer than 5 years. Cloud CMA with Open Door cash offerWith ibuyer getting noticed by Wall Street investors and most businesses related to real estate slowing down. All companies that try to go public and already public companies are trying to undergo purchase and selling property to boost up revenue. More and more company are putting ibuyer concept on their business to attract attention. That includes many Real Estate Franchise and companies. At the end, your business is a relationship business and all human being have human weaknesses.WeWork is getting complications and challenges to go publicThese new innovated model that hit the market for the past few year is facing fundamental issues of a business. It needs to be profitable in the foreseeable future. Compass which is backed by Softbank and many others will encounter this type of complication in 2020. In order to increase revenue, they need to diversify and operate on all angles of opportunities. If they cannot raise enough funds, they need to borrow the fund or somehow increase their revenue somewhere. New ACCOUNTING Dpt. Email In order to better service our agents, please use accounting@ when emailing our accountants so that any one of the three staff in the department will be well aware of your questions and concerns. In addition, you can still reach our accounting department via calling the RH office or in person.Copy of Contact and DisclosuresWe wanted to give a friendly reminder that Agents must always remember to give a copy of contract and disclosures to their seller either in soft or hard copy once it is signed. SPIKING LOAN DELAYS CAUSING MASS DELAY ON ESCROW CLOSING PERIODWe have seen a spike in Sales getting delayed due to delays in loan processing and the ability of lender to fund. Please do understand, when the buyer you represent is asked to remove all contingencies. It is crucial that your buyer understands that by signing to remove all contingencies, buyer may lose all/part of buyer’s deposit if buyer cannot close on time. If buyer is willing to take the risk, make sure you have informed the buyer in writing and buyer have written statement that they do understand the risk. When asking for extension, negotiate for more extension time as any of the projected date provided by any lender, can and will get delayed again. Better Safe than Sorry. AGENT REFERRAL PROGRAM Want to get more bonus? We have an on-going referral program that can give agents’ bonus of up to $1,000 for referring an agent. Do you know someone who is thinking to move brokerages? Do you know an agent whom you like to join us? Have them set an appointment with CK today! BUYER’S AGENT COMISSION DISPUTE CASECommission negotiation needs to be initiated from the buyer’s agent, not the listing agent.?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 an offer to purchase or lease property, the listing broker may not attempt to unilaterally modify the offered compensation with respect to that cooperative transaction. From NAR code of Ethics. For more information, please go to NAR Code of Ethics webpage:? REQUIREMENT FOR CO-LISTING & CO-SELLINGAgents who are co-listing or co-selling are required to complete the Agent Commission Sharing Agreement (C.A.R. form ACS, 12/16) when co-listing or co-selling to prevent any disputes on commission sharing even if agent is from the same brokerage. If you are co-listing or selling with agent within same brokerage, you must also attach an additional form (C.A.R. form AAA) if agents are not from the same brokerage, you will need to attach additional form (C.A.R. form ABA). Please note, RE/MAX Elite, Premier and 2000 are considered different brokerage and requires ABA form instead. UPCOMING EVENTSNovember Super Session | CAR Senior Economist Oscar Wei!We are proud to announce that Oscar Wei, Senior Economist from the CAR will be going giving us firsthand information regarding the 2019 and 2020 Real Estate Market Outlook, The Current Market in SoCal, Influence of Foreign & Local Buyer and the future of Homeownership. Seats limited. Please scan the QR code through the flyer at the back to register. 2019 Thanksgiving PotluckOur annual Thanksgiving Potluck will be on Nov 14th this year. Featuring more than 50 dishes, we are anticipating a big turn out this year as well. Announcement and registration for the potluck will be coming soon, please pay attention to the announcements on email and WeChat. Realtors Conference & Expo in San Francisco This year’s Realtors Conference & Expo is going to be in the East Coast at San Francisco from Nov 9th to 11th. If you are interested to learn more, book tickets & hotel, Visit this URL: 03, 201930-Yr FRM15-Yr FRM5/1-Yr ARMAverage Rates3.83 %3.20 %3.65 %Fees & Points0.50.50.4MarginN/AN/A2.74September26, 201930-Yr FRM15-Yr FRM5/1-Yr ARMAverage Rates3.91 %3.28 %3.70 %Fees & Points0.50.50.4MarginN/AN/A2.74September19, 201930-Yr FRM15-Yr FRM5/1-Yr ARMAverage Rates3.97 %3.31 %3.82%Fees & Points0.50.50.4MarginN/AN/A2.74September12, 201930-Yr FRM15-Yr FRM5/1-Yr ARMAverage Rates3.87 %3.22 %3.71%Fees & Points0.50.50.4MarginN/AN/A2.74September05, 201930-Yr FRM15-Yr FRM5/1-Yr ARMAverage Rates3.75 %3.11 %3.50%Fees & Points0.50.50.4MarginN/AN/A2.74August29, 201930-Yr FRM15-Yr FRM5/1-Yr ARMAverage Rates3.79 %3.13 %3.53%Fees & Points0.50.50.4MarginN/AN/A2.74August22, 201930-Yr FRM15-Yr FRM5/1-Yr ARMAverage Rates3.85 %3.17 %3.64%Fees & Points0.50.50.4MarginN/AN/A2.74 ................
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