Foremost, the title is meant to be inappropriate. When someone else from Jackson found out I was heading to DC on behalf of TBOR, references to Larry Craig started flying. Pardon me for going for the cheap laugh...
Alan Greenspan, however, is a frail man. He’s old. You’ve seen him on TV, so you know this.
But to stumble out of the men's room at the Marriott in Washington DC and come face-to-face with Greenspan will give you a slightly different perspective. You suddenly accept – or at least I did – that the man is up there in years. For me, this fact about his physical appearance only highlights how exceptional his intellect remains at age 83.
I flew to DC on Monday to attend what I thought would be just-another-real-estate conference. Yep... your dues dollars have been hard at work while, in the past, I and other TBOR Past Presidents have listened to keynote speakers drone on about national issues that don’t always affect the Jackson Hole market. If you’ve ever been to a NAR function or visited with a Realtor from another part of the country for any length of time, you quickly recognize how different we (and most resort markets) are from the rest of America.
I figured this trip to DC would be no different. Show up at the brunches. Let the rest of the Wyoming contingent tease me about being from Jackson. Endure a couple sessions where I nod incessantly at someone from middle America talking about issues I know nothing about, and then fly home 48 hours later.
For this trip to DC, I'm happy to say I was mistaken.
This morning, Day 1, opened with Pat Buchanan (yes, THAT Pat Buchanan) trading barbs with former Tennessee Congressman Harold Ford on the current administration’s first 100-odd days. Pure comedy. In the forum of a CNN or Fox News interview, you might think opponents from across the aisle harbor some genuine resentment as they spar back and forth. While there's surely some personality conflicts in DC, watching Buchanan and Ford today was enlightening. Instead of two guys fighting for sound bites in a 3-minute interview on TV, here were two seasoned veterans with time for foreplay and playful banter between the swing-for-the-fences, haymaker punches commonplace on shows like Hardball.
After today, I think politics has a lot more in common with pro wrestling than a street fight. While clearly opposed on some core issues, Buchanan and Ford both recognize one universal truth: the fight is fixed and a lot of the energy expended in the ring is simply for the entertainment of the audience.
Robert Reich, former Secretary of Labor under Clinton, was next to speak. Again, someone I had become familiar with via CNN proved to be much more substantial than the 30-second sound bites had lead me to believe.
And so went the day. Heavy hitter after heavy hitter spoke to a bunch of dirt pimps from around the country. Their theme, however, was very consistent: more than any other economic segment, real estate has the ability to either bring us out of the current economic meltdown, or to sink us deeper into the financial morass.
Greenspan took the stage after lunch. Following his introduction, he awkwardly remained seated and silent toward the edge of the podium. It became apparent this was not by design and, for a moment, I felt sorry for him as I might my grandfather when caught off guard.
Then, effortlessly, Greenspan began to speak. No ham-handed attempt at humor to break the ice. No immediate inflections in voice to capture the attention of the audience (and this was unfolding in a very large conference room with multiple JumboTron-type displays to broadcast Greenspan’s talk to those in the back of the room).
He spoke with a confidence you don’t get unless you’ve been doing something well for a very long time. He weaved a tapestry of economic history and philosophy as if it were a bedtime story. It fit together like a carefully crafted piece of fiction where the plot is conveniently wrapped up by the final page.
The Q&A session afterward, however, is where my appreciation for the man began to set in. Off the cuff, Greenspan was able to dissect complicated, real estate-based questions from the crowd, wrapping each curve ball up nicely before moving on to the next pitch. One question however – dealing with whether real estate capitalization should be tied to short-term or long-term interest rates (yeah, I know…) – is where the ego and intellect of an 83-year-old man finally bubbled to the surface. I’ll spare you the tirade, but Greenspan’s rant ended simply with “I’m sorry, but they (his dissenters on this particular issue) are wrong.” And on he moved to the next question.
In the end, maybe Greenspan was right on this particular topic. Or maybe he's slightly off the mark and his detractors truly have a clearer view. Frankly, it's irrelevant to the likes of you and me. We're insects in an ant farm encased in glass while Greenspan and others are on the outside looking in and figuring out what they need to do to keep the colony alive.
To see and hear Greenspan in person, and to pick up on the subtle nuance of his -- and others -- intellect, was a special experience. After nearly bumping into the frail man outside a men’s room, I have a deeper appreciation of the current challenges facing the real estate industry, and, moreover, the flesh and blood people trying incredibly hard to right the ship.
Tuesday, May 12, 2009
Tuesday, April 21, 2009
The Cost of a Dollar
“A lawyer's time and advice are his stock in trade” ~ Abraham Lincoln
A Realtor’s time and advice are also his or her stock in trade. But access to information, and moreover the correct interpretation of that data (which maybe falls under the title of “advice”), is really our wheelhouse.
Of all the extreme sports available around our region, I’d argue gossiping in Jackson Hole ranks right up there with dropping it in S&S. If you start a rumor at Betty Rock during lunch, and I bet someone will tell it back to you that same night over dinner at the Bistro.
In our small town, information is its own currency.
Over the past few months, the MLS Board (of which, I’m a member) has been struggling to save the MLS from becoming a glorified version of Craigslist. While there’s no shortage of new listings being submitted into the system, obviously sales are few and far between. And of the sales that are posting to Flex, an ever increasing percentage of deals are being entered with an incomplete sales price.
I’m part of the problem. I sold a property in December and, at the first sign of resistance by the potential buyer, I acquiesced to his desire to not disclose the purchase price.
Did I argue that people knowing what the Buyer paid would not cripple his ability to sell the property at its highest profit and that the buyer’s fear was unfounded? No.
Did I dismiss the notion as silly that his new neighbors would harbor resentment toward him because of his recent “low” purchase price and that, in fact, he did not single-handedly bring down property values? I did not.
Did I defend the value of the MLS database because it’s what I used to price the property and, ultimately, it’s what the new buyer and his Realtor will use when he wants to sell it? Nope.
Did I pass along that because of the lack of info, it’s getting harder and harder for appraisers to do their job and, without the appraisals, banks can’t fund loans… a loan that maybe his future buyer might need when he wanted to sell the property? Of course not.
I didn’t want to rock the boat, I told myself. In hindsight, I was both lazy and apathetic.
But I didn’t lose any sleep over my decision either. I knew appraisers would call me to ask about the transaction, and I would be happy to share the info. I was also happy to share the sale price with everyone in my office. My accountant knew about it for my annual contribution to Uncle Sam. So did the president of the neighborhood HOA. Just to make sure I didn’t miss anyone, I probably told my barber too.
Despite withholding the purchase price of my deal from MLS, the information was still out there. It still traded. In my experience, not reporting a sale price in MLS and keeping something confidential are two very different things. Have I spent more time gossiping to my barber, appraisers, other Realtors, etc., about my aforementioned sale than if I had just posted the price in MLS? Absolutely. But why should I care about a single transaction in a database of thousands of active listings serviced by nearly 650 individual Realtors?
For 2007 in MLS areas 1-10, about 8 percent (49 of 617) of the sold transactions were entered without a sale price. Last year, that number jumped to nearly 12 percent (36 of 306) but the overall pool of transactions dropped, which exasperated the challenge of finding accurate comps for any given property.
So far in 2009, the sold data in Flex is a joke. Nine of the 24 sales in Teton County, or 37 percent, are missing a sale price. There’s not a single land transaction from this year with anything other than $1.
So I ask again: why should I care about a single transaction in a database of thousands of active listings serviced by nearly 650 individual Realtors? What’s the harm of one deal going unreported?
I’d argue we’re at a tipping point. Every deal matters. And while I can certainly bang the phones trying to collect “confidential” info that didn’t get reported to Flex for one reason or another, frankly, I have better things to do with my time.
The MLS was created as a warehouse of information to save us the time and expense of tracking the info as individuals or companies, and to make sure the information for our industry was consistent. As our market has crashed and sellers (and buyers) have developed a certain level of shame for selling at less than "market value" (which, by definition, I'd argue is EXACTLY what a given property sold for...), the practice of reporting sales for $1 is literally ruining the value of the MLS.
Last week, MLS President Ray Elser announced that the MLS Board has tabled until May any decision to change the current MLS Rules and Regs concerning the mis-reporting of sold prices. At present, if you're a member of TBOR -- and moreover if you've entered a specific property into Flex -- you've agreed in advance to report the sale price when it closes. As a member of the MLS Board, I can honestly say I'm struggling on how to save the MLS database and prevent it from simply becoming a digital bulletin board.
As the MLS Board has struggled to find a fair way to impose its rules, some have argued requiring the accurate reporting of sale prices flies in the face of Wyoming's non-disclosure state status (it doesn't). Others have voiced concern that the new rules are too restrictive when, in fact, the rule requiring accurate reporting has been around since the conception of the MLS. Another argument against any change has been that reporting a sale price could contradict an agent's responsibility to his or her principal.
In the end, I've developed a wider view of the issue. My role as a real estate agent involves wearing many hats, but being efficient and effective in my interpretation of market data is one of the larger ones.
The MLS system makes us all better at our jobs. It's a tool that saves us countless hours of individual phone calls and needless repetitive questions to our peers.
Much like lawyers, our time and advice are our stock in trade. Please keep this in mind as the MLS Board works to find an effective measure to preserve the collective information warehouse that is the MLS.
A Realtor’s time and advice are also his or her stock in trade. But access to information, and moreover the correct interpretation of that data (which maybe falls under the title of “advice”), is really our wheelhouse.
Of all the extreme sports available around our region, I’d argue gossiping in Jackson Hole ranks right up there with dropping it in S&S. If you start a rumor at Betty Rock during lunch, and I bet someone will tell it back to you that same night over dinner at the Bistro.
In our small town, information is its own currency.
Over the past few months, the MLS Board (of which, I’m a member) has been struggling to save the MLS from becoming a glorified version of Craigslist. While there’s no shortage of new listings being submitted into the system, obviously sales are few and far between. And of the sales that are posting to Flex, an ever increasing percentage of deals are being entered with an incomplete sales price.
I’m part of the problem. I sold a property in December and, at the first sign of resistance by the potential buyer, I acquiesced to his desire to not disclose the purchase price.
Did I argue that people knowing what the Buyer paid would not cripple his ability to sell the property at its highest profit and that the buyer’s fear was unfounded? No.
Did I dismiss the notion as silly that his new neighbors would harbor resentment toward him because of his recent “low” purchase price and that, in fact, he did not single-handedly bring down property values? I did not.
Did I defend the value of the MLS database because it’s what I used to price the property and, ultimately, it’s what the new buyer and his Realtor will use when he wants to sell it? Nope.
Did I pass along that because of the lack of info, it’s getting harder and harder for appraisers to do their job and, without the appraisals, banks can’t fund loans… a loan that maybe his future buyer might need when he wanted to sell the property? Of course not.
I didn’t want to rock the boat, I told myself. In hindsight, I was both lazy and apathetic.
But I didn’t lose any sleep over my decision either. I knew appraisers would call me to ask about the transaction, and I would be happy to share the info. I was also happy to share the sale price with everyone in my office. My accountant knew about it for my annual contribution to Uncle Sam. So did the president of the neighborhood HOA. Just to make sure I didn’t miss anyone, I probably told my barber too.
Despite withholding the purchase price of my deal from MLS, the information was still out there. It still traded. In my experience, not reporting a sale price in MLS and keeping something confidential are two very different things. Have I spent more time gossiping to my barber, appraisers, other Realtors, etc., about my aforementioned sale than if I had just posted the price in MLS? Absolutely. But why should I care about a single transaction in a database of thousands of active listings serviced by nearly 650 individual Realtors?
For 2007 in MLS areas 1-10, about 8 percent (49 of 617) of the sold transactions were entered without a sale price. Last year, that number jumped to nearly 12 percent (36 of 306) but the overall pool of transactions dropped, which exasperated the challenge of finding accurate comps for any given property.
So far in 2009, the sold data in Flex is a joke. Nine of the 24 sales in Teton County, or 37 percent, are missing a sale price. There’s not a single land transaction from this year with anything other than $1.
So I ask again: why should I care about a single transaction in a database of thousands of active listings serviced by nearly 650 individual Realtors? What’s the harm of one deal going unreported?
I’d argue we’re at a tipping point. Every deal matters. And while I can certainly bang the phones trying to collect “confidential” info that didn’t get reported to Flex for one reason or another, frankly, I have better things to do with my time.
The MLS was created as a warehouse of information to save us the time and expense of tracking the info as individuals or companies, and to make sure the information for our industry was consistent. As our market has crashed and sellers (and buyers) have developed a certain level of shame for selling at less than "market value" (which, by definition, I'd argue is EXACTLY what a given property sold for...), the practice of reporting sales for $1 is literally ruining the value of the MLS.
Last week, MLS President Ray Elser announced that the MLS Board has tabled until May any decision to change the current MLS Rules and Regs concerning the mis-reporting of sold prices. At present, if you're a member of TBOR -- and moreover if you've entered a specific property into Flex -- you've agreed in advance to report the sale price when it closes. As a member of the MLS Board, I can honestly say I'm struggling on how to save the MLS database and prevent it from simply becoming a digital bulletin board.
As the MLS Board has struggled to find a fair way to impose its rules, some have argued requiring the accurate reporting of sale prices flies in the face of Wyoming's non-disclosure state status (it doesn't). Others have voiced concern that the new rules are too restrictive when, in fact, the rule requiring accurate reporting has been around since the conception of the MLS. Another argument against any change has been that reporting a sale price could contradict an agent's responsibility to his or her principal.
In the end, I've developed a wider view of the issue. My role as a real estate agent involves wearing many hats, but being efficient and effective in my interpretation of market data is one of the larger ones.
The MLS system makes us all better at our jobs. It's a tool that saves us countless hours of individual phone calls and needless repetitive questions to our peers.
Much like lawyers, our time and advice are our stock in trade. Please keep this in mind as the MLS Board works to find an effective measure to preserve the collective information warehouse that is the MLS.
Thursday, April 2, 2009
One Hand Washes the Other
As someone who works primarily in Jackson, there’s some fear every time I travel behind the Spud Curtain for business.
While the strict bailiwick of the Teton Board of Realtors is Teton County, Wyoming, and northern Lincoln County, the TBOR obviously covers much more ground. There’s no easy way to discern how many of our 650 members are based in Idaho, but I bet it’s safe to say a large percentage of the TBOR membership spends most of its time on the “quiet side of the Tetons.”
I’ve noticed some very real differences in license law between Wyoming and Idaho over the years. Blue Books. Limited Dual Agency. Renewing your license at the end of your birthday month. The list goes on and on.
Imagine my fear then when I heard Wyoming, Idaho and several other states were dissolving their reciprocity agreements (the Wyoming and Idaho relationship ended on March 23, 2009). Last year, I went the route of getting an Idaho primary license (vs. a reciprocal one), which basically entailed driving to Boise, sequestering myself in a hotel room for 48 hours to cram, and then taking the multiple choice test before driving back to Jackson.
But with the death of the reciprocal agreement comes some added continuing education requirements. While on the surface I selfishly don’t want to be bothered, this is probably good for our industry on the whole. Personally, I’m woefully ignorant on some of the nuances of Idaho license law… and I suspect I’d be even worse if I only held a reciprocal license. Some of the push to do away with the reciprocity was to ensure everyone is equally educated (which is not a guaranteed cure for my ignorance, but it's surely a start).
According to former Wyoming real estate commissioner John Gibbs from Buffalo, another problem was the respective real estate commissions were having a hard time keeping tabs on their reciprocal licensees. For example, let's say I'm a primary licensee in Wyoming with an Idaho reciprocal license. If for some reason I lose or don’t renew my Wyoming license, there’s a good chance the Idaho real estate commission would never know (and having a Wyoming license was the only reason I was issued an Idaho reciprocal license in the first place). Faced with this dysfunction in the reciprocity agreement, as well as – I’m sure – other administrative and logistical challenges of managing Realtors across the country, the real estate commissions did away with reciprocity.
So what’s this mean to TBOR members? Basically, it means a Wyoming licensee now needs to complete 20 Idaho continuing education hours (the real estate commission’s four-hour core course, plus 16 qualifying elective hours) every 2 years. Unlike some of the mandatory Wyoming continuing education requirements, most of the Idaho courses are offered online (http://www.mckissock.com/).
Am I glad that my continuing education requirements are now greater because reciprocity is gone? Of course not. But I’m hopeful everyone on both sides of the Spud Curtain will be slightly more proficient and professional as a function of this new climate between the real estate commissions.
For any and all questions about the old reciprocity agreement, continuing education or licensing in general, please check with the respective real estate commissions.
Wyoming Real Estate Commission (http://realestate.state.wy.us) 1-307-777-7141
Idaho Real Estate Commission (http://www.irec.idaho.gov) 1-208-334-3285
See you in class…
While the strict bailiwick of the Teton Board of Realtors is Teton County, Wyoming, and northern Lincoln County, the TBOR obviously covers much more ground. There’s no easy way to discern how many of our 650 members are based in Idaho, but I bet it’s safe to say a large percentage of the TBOR membership spends most of its time on the “quiet side of the Tetons.”
I’ve noticed some very real differences in license law between Wyoming and Idaho over the years. Blue Books. Limited Dual Agency. Renewing your license at the end of your birthday month. The list goes on and on.
Imagine my fear then when I heard Wyoming, Idaho and several other states were dissolving their reciprocity agreements (the Wyoming and Idaho relationship ended on March 23, 2009). Last year, I went the route of getting an Idaho primary license (vs. a reciprocal one), which basically entailed driving to Boise, sequestering myself in a hotel room for 48 hours to cram, and then taking the multiple choice test before driving back to Jackson.
But with the death of the reciprocal agreement comes some added continuing education requirements. While on the surface I selfishly don’t want to be bothered, this is probably good for our industry on the whole. Personally, I’m woefully ignorant on some of the nuances of Idaho license law… and I suspect I’d be even worse if I only held a reciprocal license. Some of the push to do away with the reciprocity was to ensure everyone is equally educated (which is not a guaranteed cure for my ignorance, but it's surely a start).
According to former Wyoming real estate commissioner John Gibbs from Buffalo, another problem was the respective real estate commissions were having a hard time keeping tabs on their reciprocal licensees. For example, let's say I'm a primary licensee in Wyoming with an Idaho reciprocal license. If for some reason I lose or don’t renew my Wyoming license, there’s a good chance the Idaho real estate commission would never know (and having a Wyoming license was the only reason I was issued an Idaho reciprocal license in the first place). Faced with this dysfunction in the reciprocity agreement, as well as – I’m sure – other administrative and logistical challenges of managing Realtors across the country, the real estate commissions did away with reciprocity.
So what’s this mean to TBOR members? Basically, it means a Wyoming licensee now needs to complete 20 Idaho continuing education hours (the real estate commission’s four-hour core course, plus 16 qualifying elective hours) every 2 years. Unlike some of the mandatory Wyoming continuing education requirements, most of the Idaho courses are offered online (http://www.mckissock.com/).
Am I glad that my continuing education requirements are now greater because reciprocity is gone? Of course not. But I’m hopeful everyone on both sides of the Spud Curtain will be slightly more proficient and professional as a function of this new climate between the real estate commissions.
For any and all questions about the old reciprocity agreement, continuing education or licensing in general, please check with the respective real estate commissions.
Wyoming Real Estate Commission (http://realestate.state.wy.us) 1-307-777-7141
Idaho Real Estate Commission (http://www.irec.idaho.gov) 1-208-334-3285
See you in class…
Sunday, March 8, 2009
Vegas, Baby! Vegas!
Vaughn: They're gonna give daddy the Rainman suite, you dig that?
Favreau: Do you think we'll get there by midnight?
Vaughn: Baby, we're going to be up five hundy by midnight!
Favreau: Yeeeeaaaaahhhhhh!
Vaughn: Vegas baby! Vegas!
Favreau: Vegas!
There’s a scene from the movie Swingers where Jon Favreau and Vince Vaughn decide impulsively to drive from Los Angeles to Las Vegas for… well… all the things people do in Vegas.
While their excitement waxes as the lights of LA dim in their rear view mirror, their enthusiasm wanes during the course of their drive. Their anticlimactic Vegas trip culminates with a dejected Favreau and Vaughn at a $5 blackjack table surrounded by a number of blue-haired old women and other less-than-glamorous characters.
And so was my recent trip to Vegas for the NAR Region XI Conference…
Before I lapse into that, my last entry spent some time covering the proposed legislation facing our industry. In summary:
- The Designated Agency bill passed and will take effect July 1, 2009. A redline of the new Designated Agency Bill can be downloaded from http://www.wyorealtors.com/docs/Agency_bill_121208.doc
- The Statement of Consideration and Notary bills both died on the vine.
The NAR Region XI Conference, which drew Realtors to Vegas from Nevada, New Mexico, Arizona, Utah, Colorado and the great state of Wyoming, was a 48-hour junket that featured a series of speakers – including NAR economist Lawrence Yun and NAR Lead Counsel Laurie Janik – who spoke on a number of current real estate issues.
My account of the NAR Conference needs to colored in the right light; I flew to Vegas a few days early for some R&R in the poker rooms on the Strip. And after a couple of days of the cards not falling my way, I was beginning to feel like our heroes from Swingers treading water at a cheap blackjack table.
But after punching the clock as TBOR’s representative and checking into the Region XI Conference, it quickly became apparent the challenges of the Jackson Hole market are not unique. In contrast, many of the attendees at the NAR National Conference in Orlando in November were still clinging to the belief that a positive attitude would cure just about any challenge. Candidly, it was nice to see reality had set into the minds of those in attendance last week, even if the reality of the situation was somewhat bleak.
One Realtor from SLC shared that their market transaction volume for January was the lowest it has been in 12 years. Another Realtor from Reno was encouraged that pricing had hit 2002 levels and appeared to be tipping upward.
Realtors from the Vegas market, which seems to take more than its fair share of heat from the national media, were happy to report they were turning deals. The majority of those deals, however, were distressed properties in one form or another. In chatting it up with fellow gamblers or cabbies, I collected a couple of anecdotes of neighbors who vacated their homes under the cover of darkness to avoid the embarrassment of being evicted. Another story featured a perplexed condo owner whose mortgage was $320,000 and the adjacent unit was an REO on the market for $200,000.
As usual, it quickly became apparent that despite our challenges in Jackson Hole, we still have it pretty damn good.
While some of the panel discussions at the conference focused on state-specific legal issues – some of which might impact Wyoming and/or Idaho at some point – the more pressing info came from NAR Economist Lawrence Yun and NAR Counsel Laurie Janik.
Like many of the current soothsayers of the financial markets, Yun has gotten beat up in the media for basically clinging to the premise there was no real estate bubble and things had bottomed out nationally in 2007/08. To his credit, he’s modified his stance. His presentation in Vegas addressed the potentially positive impact of the recent stimulus package.
In summary, Yun believes we’ll see a national up tick in the 3rd and 4th quarter of 2009, but whether that priming of the economic pump is enough to restart the engine remains unclear. Should things stall again, Yun said, we could be facing a political climate where the American public won’t have the stomach for yet another close-to-trillion-dollar rescue package, greatly reducing the options available to the federal government to right the ship.
In other news, Laurie Janik offered an update on the Department of Justice settlement and the new Virtual Office Website (VOW) rules and regs that all MLS Boards adopted in mid-February. On a personal level, I had some concerns about specific language in the VOW regs, but Janik helped clarify the intent of the settlement, which is basically to create an online real estate model that mimics the services a Realtor can provide in a brick and mortar office.
Another presentation showcased some improvements to Realtor.com, which NAR is still trying to leverage as the one-stop-shop for real estate info despite the growth of aggregators like Trulia, Zillow, Google Base and a slew of others. While can’t speak for the usage of Realtor.com in urban markets, it seems Realtor.com’s value is resort markets like Jackson Hole is not as strong as some other regional and national WWW sites.
Throw in a couple lunches and a dinner, and so went the Region XI Conference. Please contact me with any questions or if you’re looking for a cheap buffet on the Strip.
Vegas, baby. Vegas.
Favreau: Do you think we'll get there by midnight?
Vaughn: Baby, we're going to be up five hundy by midnight!
Favreau: Yeeeeaaaaahhhhhh!
Vaughn: Vegas baby! Vegas!
Favreau: Vegas!
There’s a scene from the movie Swingers where Jon Favreau and Vince Vaughn decide impulsively to drive from Los Angeles to Las Vegas for… well… all the things people do in Vegas.
While their excitement waxes as the lights of LA dim in their rear view mirror, their enthusiasm wanes during the course of their drive. Their anticlimactic Vegas trip culminates with a dejected Favreau and Vaughn at a $5 blackjack table surrounded by a number of blue-haired old women and other less-than-glamorous characters.
And so was my recent trip to Vegas for the NAR Region XI Conference…
Before I lapse into that, my last entry spent some time covering the proposed legislation facing our industry. In summary:
- The Designated Agency bill passed and will take effect July 1, 2009. A redline of the new Designated Agency Bill can be downloaded from http://www.wyorealtors.com/docs/Agency_bill_121208.doc
- The Statement of Consideration and Notary bills both died on the vine.
The NAR Region XI Conference, which drew Realtors to Vegas from Nevada, New Mexico, Arizona, Utah, Colorado and the great state of Wyoming, was a 48-hour junket that featured a series of speakers – including NAR economist Lawrence Yun and NAR Lead Counsel Laurie Janik – who spoke on a number of current real estate issues.
My account of the NAR Conference needs to colored in the right light; I flew to Vegas a few days early for some R&R in the poker rooms on the Strip. And after a couple of days of the cards not falling my way, I was beginning to feel like our heroes from Swingers treading water at a cheap blackjack table.
But after punching the clock as TBOR’s representative and checking into the Region XI Conference, it quickly became apparent the challenges of the Jackson Hole market are not unique. In contrast, many of the attendees at the NAR National Conference in Orlando in November were still clinging to the belief that a positive attitude would cure just about any challenge. Candidly, it was nice to see reality had set into the minds of those in attendance last week, even if the reality of the situation was somewhat bleak.
One Realtor from SLC shared that their market transaction volume for January was the lowest it has been in 12 years. Another Realtor from Reno was encouraged that pricing had hit 2002 levels and appeared to be tipping upward.
Realtors from the Vegas market, which seems to take more than its fair share of heat from the national media, were happy to report they were turning deals. The majority of those deals, however, were distressed properties in one form or another. In chatting it up with fellow gamblers or cabbies, I collected a couple of anecdotes of neighbors who vacated their homes under the cover of darkness to avoid the embarrassment of being evicted. Another story featured a perplexed condo owner whose mortgage was $320,000 and the adjacent unit was an REO on the market for $200,000.
As usual, it quickly became apparent that despite our challenges in Jackson Hole, we still have it pretty damn good.
While some of the panel discussions at the conference focused on state-specific legal issues – some of which might impact Wyoming and/or Idaho at some point – the more pressing info came from NAR Economist Lawrence Yun and NAR Counsel Laurie Janik.
Like many of the current soothsayers of the financial markets, Yun has gotten beat up in the media for basically clinging to the premise there was no real estate bubble and things had bottomed out nationally in 2007/08. To his credit, he’s modified his stance. His presentation in Vegas addressed the potentially positive impact of the recent stimulus package.
In summary, Yun believes we’ll see a national up tick in the 3rd and 4th quarter of 2009, but whether that priming of the economic pump is enough to restart the engine remains unclear. Should things stall again, Yun said, we could be facing a political climate where the American public won’t have the stomach for yet another close-to-trillion-dollar rescue package, greatly reducing the options available to the federal government to right the ship.
In other news, Laurie Janik offered an update on the Department of Justice settlement and the new Virtual Office Website (VOW) rules and regs that all MLS Boards adopted in mid-February. On a personal level, I had some concerns about specific language in the VOW regs, but Janik helped clarify the intent of the settlement, which is basically to create an online real estate model that mimics the services a Realtor can provide in a brick and mortar office.
Another presentation showcased some improvements to Realtor.com, which NAR is still trying to leverage as the one-stop-shop for real estate info despite the growth of aggregators like Trulia, Zillow, Google Base and a slew of others. While can’t speak for the usage of Realtor.com in urban markets, it seems Realtor.com’s value is resort markets like Jackson Hole is not as strong as some other regional and national WWW sites.
Throw in a couple lunches and a dinner, and so went the Region XI Conference. Please contact me with any questions or if you’re looking for a cheap buffet on the Strip.
Vegas, baby. Vegas.
Saturday, February 14, 2009
2009 Legislative Session in Cheyenne
Cheyenne, Wyoming: thoughts of it conjure up images of Elysian fields, yes?
Until earlier this week, I had spent very little time there... mostly just getting gas en route to somewhere else. Everyone I had talked to, however, lead me to believe that our state capital was suspect, at best.
Imagine my surprise when I traveled there this week with TBOR Executive Officer Barb Garrett, TBOR President-Elect Bill Helm, WAR Southwestern DVP Ron Adams, TBOR Political Affairs Committee Chair Ray Elser, and TBOR Legislative Committee Chair Janine Bay Teske. I gotta admit: it wasn’t that bad.
Maybe it was because the weather was nice (or at least nicer than Jackson Hole). Maybe it was because the wind wasn’t howling like I’m told it can in Cheyenne. Or maybe it was because I’ve never been to a Carl’s Jr. for a $6 burger before. Whatever the case, the TBOR contingent’s trip to Cheyenne for the 2009 Legislative Session was not without its charms.
For those of you unaware of the state political process (I was one…), the 60th Wyoming Legislative Session began on January 13th and runs for 6 weeks. Our 48-hour trip coincided with the Wyoming Association of Realtors' Meetings and Reception with our state lawmakers. I know it all sounds very exciting. Please contain your envy.
The high point of the trip for me was when Governor Dave stopped by and spoke to our little group of dirt pimps at a meeting in Little America. God bless the great state of Wyoming. In what other state would the Governor take the time to visit with a group of 50 random salespeople?
Things of material importance to TBOR members, however, probably boil down to three or four items:
- Senate File 110: Designated Agency. I’m hopeful anyone reading this blog would be familiar with this topic;
- House Bill 279: Statement of Consideration. Frankly, this scares the hell out of me. While WAR completely opposed an earlier version of this bill that was shot down which would have moved us away from being a non-disclosure state, this new rewrite creates the opportunity for individual tax payers contesting his or her property tax bill to view the statements of consideration (which includes sale price, mortgage amount and terms) of similar properties in the interest of creating a dialogue with County Assessor. In other words, if my neighbor contests his property tax, he can find out what I paid for my home;
- House Bill 149: Tightens what a Notary can and cannot do. It apparently also increases the required bond to $5000 and prevents a Notary from witnessing a signature for someone within the same company. I haven’t read this nor have spoken to State Rep. Keith Gingery who is sponsoring this bill, but this certainly also raises some immediate concern on my end.
There was also a Cluster Subdivision Bill (House Bill 9) that allows open space in clustered subdivisions to be taxed as agricultural vs. residential provided other conditions are met. Given this didn’t seem to apply in either Teton or Lincoln County, I tuned out whenever the conversation shifted to H.B. 9.
We also were part of a cocktail reception at Little America where all four of our regional legislators (Senator Grant Larson, Rep. Keith Gingery, Rep. Pete Jorgensen, and Rep. Jim Roscoe) attended. Again, another moment of gratitude for the state of Wyoming. While the food was free and the drink tickets were distributed liberally, I was very impressed by the number of legislators who showed up to slum with us after spending 10-12 hours working on the floor of the Capitol.
For me, the visit to the Capitol itself was another high point of my time in Cheyenne... almost like a grade school field trip. Downtown Cheyenne has some very cool old buildings – the least of which is the Capitol – and sitting in the gallery of both the Senate and the House of Representatives was genuinely interesting. Boring and painfully slow, but still interesting nonetheless.
You can also send a handwritten note to any of the legislators on the floor via a runner. I’ve had the pleasure to know Jim Roscoe for the past few years and was tempted to scribble some off-color notes to him. But given Jim is still a freshman rep., the last thing I wanted to do was put him in an awkward position or to get ejected from the class trip for misbehaving.
At the moment, it would seem like all of the above bills have a good chance of getting passed. While this was my first pass at the state legislative process and still am woefully ignorant of some of the finer points of politicking in the state of Wyoming, please feel free to contact me with any questions.
Also, if you’re ever in Cheyenne and need a place to stay, I highly recommend Little America. The rooms are clean and spacious, and they have a great breakfast buffet.
Until earlier this week, I had spent very little time there... mostly just getting gas en route to somewhere else. Everyone I had talked to, however, lead me to believe that our state capital was suspect, at best.
Imagine my surprise when I traveled there this week with TBOR Executive Officer Barb Garrett, TBOR President-Elect Bill Helm, WAR Southwestern DVP Ron Adams, TBOR Political Affairs Committee Chair Ray Elser, and TBOR Legislative Committee Chair Janine Bay Teske. I gotta admit: it wasn’t that bad.
Maybe it was because the weather was nice (or at least nicer than Jackson Hole). Maybe it was because the wind wasn’t howling like I’m told it can in Cheyenne. Or maybe it was because I’ve never been to a Carl’s Jr. for a $6 burger before. Whatever the case, the TBOR contingent’s trip to Cheyenne for the 2009 Legislative Session was not without its charms.
For those of you unaware of the state political process (I was one…), the 60th Wyoming Legislative Session began on January 13th and runs for 6 weeks. Our 48-hour trip coincided with the Wyoming Association of Realtors' Meetings and Reception with our state lawmakers. I know it all sounds very exciting. Please contain your envy.
The high point of the trip for me was when Governor Dave stopped by and spoke to our little group of dirt pimps at a meeting in Little America. God bless the great state of Wyoming. In what other state would the Governor take the time to visit with a group of 50 random salespeople?
Things of material importance to TBOR members, however, probably boil down to three or four items:
- Senate File 110: Designated Agency. I’m hopeful anyone reading this blog would be familiar with this topic;
- House Bill 279: Statement of Consideration. Frankly, this scares the hell out of me. While WAR completely opposed an earlier version of this bill that was shot down which would have moved us away from being a non-disclosure state, this new rewrite creates the opportunity for individual tax payers contesting his or her property tax bill to view the statements of consideration (which includes sale price, mortgage amount and terms) of similar properties in the interest of creating a dialogue with County Assessor. In other words, if my neighbor contests his property tax, he can find out what I paid for my home;
- House Bill 149: Tightens what a Notary can and cannot do. It apparently also increases the required bond to $5000 and prevents a Notary from witnessing a signature for someone within the same company. I haven’t read this nor have spoken to State Rep. Keith Gingery who is sponsoring this bill, but this certainly also raises some immediate concern on my end.
There was also a Cluster Subdivision Bill (House Bill 9) that allows open space in clustered subdivisions to be taxed as agricultural vs. residential provided other conditions are met. Given this didn’t seem to apply in either Teton or Lincoln County, I tuned out whenever the conversation shifted to H.B. 9.
We also were part of a cocktail reception at Little America where all four of our regional legislators (Senator Grant Larson, Rep. Keith Gingery, Rep. Pete Jorgensen, and Rep. Jim Roscoe) attended. Again, another moment of gratitude for the state of Wyoming. While the food was free and the drink tickets were distributed liberally, I was very impressed by the number of legislators who showed up to slum with us after spending 10-12 hours working on the floor of the Capitol.
For me, the visit to the Capitol itself was another high point of my time in Cheyenne... almost like a grade school field trip. Downtown Cheyenne has some very cool old buildings – the least of which is the Capitol – and sitting in the gallery of both the Senate and the House of Representatives was genuinely interesting. Boring and painfully slow, but still interesting nonetheless.
You can also send a handwritten note to any of the legislators on the floor via a runner. I’ve had the pleasure to know Jim Roscoe for the past few years and was tempted to scribble some off-color notes to him. But given Jim is still a freshman rep., the last thing I wanted to do was put him in an awkward position or to get ejected from the class trip for misbehaving.
At the moment, it would seem like all of the above bills have a good chance of getting passed. While this was my first pass at the state legislative process and still am woefully ignorant of some of the finer points of politicking in the state of Wyoming, please feel free to contact me with any questions.
Also, if you’re ever in Cheyenne and need a place to stay, I highly recommend Little America. The rooms are clean and spacious, and they have a great breakfast buffet.
Wednesday, February 4, 2009
TBOR Identity Crisis
I’ve been struggling since Diane Nodell’s term as TBOR president came to an end in December on how to continue all the great work she’s spearheaded during her term. One of her signature contributions was a monthly newsletter that was posted on at TBOR.org each month. This is the first installment of a blog I’m hopeful I’ll keep current during my time at the TBOR helm.
While most of 2008 was not a banner year for our industry, the past few months have been particular hard on some of our membership. More than one firm has folded up its tent stakes in this harsh climate. During these hardships, TBOR’s staff and officers have been asked to provide direction or some relief.
On a personal level, I have tried to empathize with the frustration of our members in distress while at the same time tried to impart TBOR’s true role in the local real estate community (which, to paraphrase its mission statement, is “to promote the real estate industry and provide services that will enhance the ability of its members to conduct their business successfully, competently and ethically”).
We all have more important issues facing us than knowing the exact bailiwick of the Teton Board of Realtors and the MLS. But from my recent conversations, it's become painfully clear to me that very few of the 645 Realtors in the TBOR truly understand the scope and purpose of each organization. Here's the spirit of some recent conversations:
(paraphrasing) “I can’t believe so-and-so did (insert any one of a number of questionable acts here). Can’t TBOR revoke his or her license?”
TBOR is a professional organization of real estate brokerages, appraisers and affiliate members in the region. The Wyoming Real Estate Commission in Cheyenne is the only entity that can issue – or revoke – real estate licenses.
You can, however, be a real estate licensee in the state of Wyoming and not be a Realtor; conversely, everyone who is a member of TBOR also is a Realtor and subsequently agrees to adhere to its Code of Ethics. In essence, the idea is that Realtors have a higher level of responsibility and professionalism than someone who is simply licensed.
(paraphrasing) “I can’t believe so-and-so did (insert any one of a number of questionable acts here). I called Barb, Carrie and/or Allison at the TBOR office and asked them to do {insert requested action here)?”
We’re incredibly fortunate to have the depth of knowledge and experience that we do at the TBOR office. Barb alone has been on staff for 25 years (which is probably longer than most members have been licensed). While the TBOR staff is a powerful resource for real estate-related issues, they are not a police force nor an investigative unit for questionable behavior within the membership.
TBOR is a professional organization run by and governed over by its fellow members.
(paraphrasing) “My coworker/broker did (insert any one of a number of questionable acts here). Can I file a complaint against him or her with TBOR?”
No. Your intra-office issues should be covered by your independent contractor’s agreement and/or your office’s policy manual. TBOR is a professional organization to foster communication between offices, not within individual offices.
Each of you paid $920 to be a member a NAR, WAR, TBOR and MLS for 2009. I’d question how many of you, however, have taken the time to read the rules and regs of the respective organizations (available at TBOR.org).
During my more than 10 years of service with both MLS and TBOR, I suspect I’ve served with fewer than 10 percent of the TBOR members. Year after year, it’s a struggle to find people who are willing to selflessly give of their time and to make the professional commitment to tackle the issues we face in a changing climate.
If you have a question about your membership in the Teton Board of Realtors or as a subscriber to the MLS, I’d strongly encourage you to read the rules and regs of each organization available at TBOR.org. If you have additional questions, I’d further encourage you to reach out to your Responsible Broker and, if need be, contact a member of either Board. As TBOR President, I’ll sit on both Boards for the next 11 months and will be happy to answer any questions if you want to email me.
I make this blanket offer knowing full well very few of our 600-plus members will take the time to read this far in this blog (let alone to read the respective rules and regs!). But if you’ve invested the time to educate yourself on your professional organization, I’d also challenge you to volunteer your time and professional insight into one of the TBOR’s various committees.
I'm hopeful this space will serve as a venue to vet issues immediately facing our real estate community in the months to come. While the current climate is certainly presenting its challenges, I'm optimistic 2009 has the potential to be a great year.
Happy New Year and best wishes!
While most of 2008 was not a banner year for our industry, the past few months have been particular hard on some of our membership. More than one firm has folded up its tent stakes in this harsh climate. During these hardships, TBOR’s staff and officers have been asked to provide direction or some relief.
On a personal level, I have tried to empathize with the frustration of our members in distress while at the same time tried to impart TBOR’s true role in the local real estate community (which, to paraphrase its mission statement, is “to promote the real estate industry and provide services that will enhance the ability of its members to conduct their business successfully, competently and ethically”).
We all have more important issues facing us than knowing the exact bailiwick of the Teton Board of Realtors and the MLS. But from my recent conversations, it's become painfully clear to me that very few of the 645 Realtors in the TBOR truly understand the scope and purpose of each organization. Here's the spirit of some recent conversations:
(paraphrasing) “I can’t believe so-and-so did (insert any one of a number of questionable acts here). Can’t TBOR revoke his or her license?”
TBOR is a professional organization of real estate brokerages, appraisers and affiliate members in the region. The Wyoming Real Estate Commission in Cheyenne is the only entity that can issue – or revoke – real estate licenses.
You can, however, be a real estate licensee in the state of Wyoming and not be a Realtor; conversely, everyone who is a member of TBOR also is a Realtor and subsequently agrees to adhere to its Code of Ethics. In essence, the idea is that Realtors have a higher level of responsibility and professionalism than someone who is simply licensed.
(paraphrasing) “I can’t believe so-and-so did (insert any one of a number of questionable acts here). I called Barb, Carrie and/or Allison at the TBOR office and asked them to do {insert requested action here)?”
We’re incredibly fortunate to have the depth of knowledge and experience that we do at the TBOR office. Barb alone has been on staff for 25 years (which is probably longer than most members have been licensed). While the TBOR staff is a powerful resource for real estate-related issues, they are not a police force nor an investigative unit for questionable behavior within the membership.
TBOR is a professional organization run by and governed over by its fellow members.
(paraphrasing) “My coworker/broker did (insert any one of a number of questionable acts here). Can I file a complaint against him or her with TBOR?”
No. Your intra-office issues should be covered by your independent contractor’s agreement and/or your office’s policy manual. TBOR is a professional organization to foster communication between offices, not within individual offices.
Each of you paid $920 to be a member a NAR, WAR, TBOR and MLS for 2009. I’d question how many of you, however, have taken the time to read the rules and regs of the respective organizations (available at TBOR.org).
During my more than 10 years of service with both MLS and TBOR, I suspect I’ve served with fewer than 10 percent of the TBOR members. Year after year, it’s a struggle to find people who are willing to selflessly give of their time and to make the professional commitment to tackle the issues we face in a changing climate.
If you have a question about your membership in the Teton Board of Realtors or as a subscriber to the MLS, I’d strongly encourage you to read the rules and regs of each organization available at TBOR.org. If you have additional questions, I’d further encourage you to reach out to your Responsible Broker and, if need be, contact a member of either Board. As TBOR President, I’ll sit on both Boards for the next 11 months and will be happy to answer any questions if you want to email me.
I make this blanket offer knowing full well very few of our 600-plus members will take the time to read this far in this blog (let alone to read the respective rules and regs!). But if you’ve invested the time to educate yourself on your professional organization, I’d also challenge you to volunteer your time and professional insight into one of the TBOR’s various committees.
I'm hopeful this space will serve as a venue to vet issues immediately facing our real estate community in the months to come. While the current climate is certainly presenting its challenges, I'm optimistic 2009 has the potential to be a great year.
Happy New Year and best wishes!
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