10 Ideas to Boost Member Professionalism Page 12

REALTOR.ORG/RAE

THE BUSINESS JOURNAL FOR REALTOR® ASSOCIATION EXECUTIVES WINTER 2014 Raise the Bar 10 Ideas to Boost Member Professionalism Page 12

AE Survey Results: How AEs Promote Professionalism Page 16

Campaigns to Boost License Requirements Page 20

Professionalism and Pocket Listings Page 26

Plus: Agent Ratings • AE Proﬁ le: Tennessee’s Stephen Harding

I-00_BC_Wi14_Cover_Rev_IM.indd 1 2/17/14 7:59 PM +01_Wi14_TOC_IFCAd_IM.indd 2 2/17/14 1:54 PM FOLLOW US! ® on Facebook and WINTER 2014 Twitter for updates, invitations, and exclusives! 2013-2014 RAE Editorial Advisory Board Contents Amanda Arwood Virginia Association of REALTORS® [email protected] Features Eric Berman Massachusetts Association of REALTORS® [email protected] 10 Ideas to Raise the Bar for Down, 14% Julie Davis Greater Nashville Association of REALTORS® Member Professionalism [email protected] By Masha Zager Page 12 Don’t know, Up, 25% 9% Amy DuBose, RCE San Marcos Area Board of REALTORS®, Texas [email protected] How AEs Promote Professionalism Karen Dumond, RCE Massachusetts Association of REALTORS® Results of RAE’s survey. Page 16 [email protected] Stayed the same, 52% Bill Head MetroTex Association of REALTORS®, Texas The Higher Ed Solution [email protected] By Melissa Dittmann Tracey Page 19 Joe Kras Michigan Association of REALTORS® [email protected] Making It Harder to Get a Susan Ray Has the number of ethics complaints Tallahassee Board of REALTORS®, Fla. ﬁ led by consumers gone up or down [email protected] Real Estate License in the last three years? p. 16 By Carolyn Schwaar Page 20 Tia Robbin, RCE Northwest Montana Association of REALTORS® [email protected]

Natalia Russo Columns Charlotte Regional REALTORS® Association, N.C. [email protected] AEC CHAIR 2 The value of professionalism. Joseph Smith Bay East Association of REALTORS®, Calif. By Andrea Bushnell, 2014 AEC Chair [email protected] BRIEFING 4 Lynn Sullivan ® North San Diego County REALTOR association news, events, people, and programs. Association of REALTORS® By Carolyn Schwaar [email protected]

® Jesse Sunday REALTOR PARTY 10 Sarasota Association of REALTORS® Association-backed candidates win again. [email protected] p. 4 By Julienne Uhlich Lisa Walker Florida Association of REALTORS® TECHNOLOGY 22 lisaw@ﬂ oridarealtors.org Who should run the agent ratings? By Carolyn Schwaar

SMALL BOARD 24 Where professionalism becomes personal. By Amy DuBose The RAE editorial board reviews each issue and provides critical feedback, proposes story ideas and industry contacts to interview, and stays in LAW & POLICY 26 touch with fellow AEs nationwide to scout out Professionalism and pocket listings. By Lesley M. Walker new programs and products to share with the AE community. To join the editorial board, write AE PROFILE 28 an article, or contribute information, e-mail Carolyn Schwaar at [email protected]. Stephen Harding, 2013 Magel Award Winner p. 22

WINTER 2014 REALTOR® AE 1

+01_Wi14_TOC_IFCAd_IM.indd 1 2/17/14 1:55 PM AEC Chair

Value of Professionalism ow much time do you spend working to en- This value equation must be applied to each and Hsure that your members reach the highest level every service we provide—tangible and intangible, of professionalism? We each devote hours, weeks, including professionalism. and months to this effort, not to mention signifi - I am fully convinced that we have the most diffi - cant fi nancial and human resources. We approach cult (and rewarding) job imaginable. Members are not professionalism through classes, online training, generic or of one thought. What one wants, another cartoons, videos, games, charades, and play-acting. will fi nd objectionable. What one fi nds of benefi t, We legislate, we regulate, and we prod, probe, cajole, another will believe is “leveling the playing fi eld.” humor, and threaten our members into educational Consolidations, shared services, and administrative “compliance.” But are we actually moving the profes- effi ciencies should be acceptable to all members, but sionalism needle? Are our members better prepared fear of losing control means that even this concept is Andrea Bushnell, RCE, to represent their clients? Are our efforts being re- up for grabs in the brokerage community. is EVP of the North Carolina warded with lowered risk, fewer claims, or better So what are we to do as a community of profes- Assocation of REALTORS®. insurance rates for our members? What would the sionals? Well, drinking wine in signifi cant amounts Contact her at 336-808-4222 landscape look like if we didn’t engage our members comes immediately to mind; but seriously, I fi nd or [email protected]. in professionalism awareness? communicating with peers, talking through issues, Each AE and staff specialist will answer these having a few laughs amid more than a few tears, brain- questions differently. In part, the answers will di- storming, creating, and planning are not only profes- rectly refl ect the amount of effort put toward pro- sionally benefi cial but personally rewarding. It is an fessionalism, but the answers will also refl ect how investment in our own professional development. personally vested we become to reaching a positive We must be willing to challenge each other, chal- outcome as a result of our efforts. Making a personal lenge the status quo, challenge traditional thoughts, investment is critical to doing a great job for our and challenge our beliefs about the value of services members, but it is also dangerous. When we get too to our members. personally invested in an outcome, for example, we In order to move the needle for our members on often lose sight of the true value of our efforts to professionalism, we must fi rst be able to move the our members. needle for ourselves. MORE ONLINE Unfortunately, our efforts are not always directly Visit the AE Committee proportional to the value that members put on those Andrea Bushnell, 2014 Chair, AE Committee page at REALTOR.org efforts. This is the value question with which we for more on AEC must grapple in order to truly serve our members: activities in 2014. How do we show them the value of professionalism?

Chair, Association Executives Committee Andrea Bushnell, RCE ©2014 by the NATIONAL ASSOCIATION OF REALTORS®0. All rights reserved. (ISSN 0034- ® CEO, NATIONAL ASSOCIATION OF REALTORS® Dale A. Stinton, RCE, CAE 0804) REALTOR AE is a professional magazine published four times yearly by the ® ® Senior Vice President, Communications Pamela Geurds Kabati NATIONAL ASSOCIATION OF REALTORS as a service for REALTOR association executives. Articles in this magazine are written from the perspective of the REALTOR® asso- Vice President, Business-to-Business Communications Stacey Moncrieff ciation executive. REALTOR® AE is an informational publication of local, state, and Editor, REALTOR® AE magazine Carolyn Schwaar national association programs, activities, and current trends and ideas in associa- Contributing Editors Paula Pisani, Bob Soron tion management and their practical application in REALTOR® associations. Views Questions and Comments e-mail: [email protected] and advertising expressed in REALTOR® AE are not necessarily those of or endorsed 430 N. Michigan Ave., ® Chicago, IL 60611–4087 Advertising Sales Natalie Matter DeSoto, 800-501-9571, by the NATIONAL ASSOCIATION OF REALTORS . Magazine archives available online at 500 New Jersey Ave., N.W., or 717-580-8184, [email protected] REALTOR.org/RAE. Reprint permission: 312-329-8874. Distribution: Washington, DC 20001–2020 Local and state executive ofﬁ cers and MLS directors. Subscriptions: 800-874-6500 Write to NATIONAL ASSOCIATION OF REALTORS®, Publications, 430 N. Michi- [email protected]; REALTOR.org REALTOR® AE magazine @REALTORAEMag gan Ave., Chicago, IL 60611, or call 800-874-6500.

2 REALTOR® AE WINTER 2014

+02-03_Wi14_Chair_IM.indd 2 2/17/14 1:56 PM +02-03_Wi14_Chair_IM.indd 3 2/17/14 1:56 PM REALTOR® ASSOCIATION NEWS, EVENTS & PEOPLE Briefing By Carolyn Schwaar

RPR Launches Dashboard Power of ‘R’ Campaign The RPR dashboard, launched in Janu- ary, provides associations the ability to easily generate reports they can use to Amplifi es Outreach answer questions from members, boards, In a world where a growing number of voic- Through the Power of ‘R’ campaign, the politicians and news outlets. es on a growing number of platforms are work of REALTORS® and associations can Where MLS data is available from speaking on real estate topics, the National be shared and amplifi ed throughout an array an RPR partner, the dashboard provides Association of REALTORS® is developing of electronic platforms. market data as well as details of how new ways to communicate to REALTORS® Whenever your association posts items members are using RPR, including how and consumers that the REALTOR® orga- demonstrating how you serve home owners, many members are visiting the site and nization—at the national, state, and local better your community, or meet with elected what RPR features and reports they use. level—is the leading advocate for the real offi cials, include #PowerofR. And search for The dashboard displays upcoming train- estate industry and the nation’s 75 million #PowerofR on any socialmedia platform to ing opportunities to enhance members’ property owners. see posts that relate to REALTORS® inter- RPR skills and has links to articles associations can republish. The Power of ‘R’ is you and all you do to advocate for the real All associations have access to a key feature of the dashboard: the Federal and estate industry and the nation’s 75 million property owners—in Local Economic Area Reports. The federal report can be generated by congres- your community, at city hall, at the state house, and on Capitol Hill. sional district boundaries, or by an entire state. The local report can be generated To tie together REALTOR® communi- acting with local, state and national offi cials, for a city, county, or zip code. Association cations from members and associations, supporting their communities, and helping staff can allow association volunteers, NAR is encouraging the use of a single slo- people become responsible home owners. such as NAR’s FPCs or elected leaders gan, “Power of ‘R’,” along with the hashtag In addition to the hashtag, there are to generate reports, which complement #PowerofR on Facebook, Twitter, Insta- several Facebook banners that associations housing statistics already provided by gram, and other social media platforms. The and members can use. For more on the NAR. For more details on dashboard hash symbol turns any group of words that campaign, visit realtor.org/topics/powerofr/ features for associations, visit http://blog directly follow it into a searchable topic. about-the-powerofr. ■ .narrpr.com. Online National Orientation Module Now Available NAR, in partnership with the 2013 AE Committee’s online orientation work group, has developed a new orientation option for all associations. NAR has negotiated preferred pricing with Learning Library Inc. to offer REALTOR® associations an online orientation national module for their new members. Associations can choose to offer the NAR national module only or develop and add local content and work with their state association to develop a custom online orientation covering all three levels of the REALTOR® family, at a reduced rate. Learning Li- brary will host webinars monthly to answer questions about offering the online national module as well as how to add local content. In addition, the hard copy Orientation Toolkit, including the new Orientation Video on DVD, was sent to all associations in early February. Visit realtor.org/orientation for more information. Attend the AEI session on the platform, 8 a.m.–8:45 a.m. Tuesday, March 25. For more, contact Kim DiGangi at [email protected]. ■

4 REALTOR® AE WINTER 2014

+04-11_Wi14_Briefing_IM.indd 4 2/17/14 7:33 PM NAR’s Midyear Legislative Meetings & Trade Expo is now the REALTOR® Party Convention & Trade Expo. 

Association Tech Fair ‘Smack Down’ Local Association Pits Tradition Against Tech Misuse of Two nationally known real estate experts, ® Dan Elzer, president of The Training Acad- REALTOR Logo emy, and Bill Lublin, CEO of the Social Mary Newill, the National Association of Media Marketing Institute, faced off on the REALTORS®’ trademark administrator, is kept importance of social media and technology busy alerting members (and others) of their versus old-school skills and sales techniques misuse of the association’s registered marks at the Greater Manchester/Nashua Board and logos. In the Fall issue of REALTOR® AE of REALTORS®’ 6th Annual Tech Fair and magazine, Newill spotted two misuses by a “Smack Down,” Oct. 17, 2013. The event local association that all associations may was open and free to all New Hampshire want to take note of. REALTORS® and association afﬁ liates. A local association The two hosts passionately defended of REALTORS® runs a their positions by offering solutions to every- From left: Bill Lublin, Ed Buczynski (N.J. member and consumer-oriented Web day market challenges. “It was a very lively event host) and Dan Elzer, the tech Smack Down winner. site with its own unique Smack Down with contrasting ideas offering name and branding. attendees insight as to where to focus their coordinator. The event also featured tech The REALTOR® block logo efforts to make the biggest impact on their vendors providing information on products was displayed on that real estate careers,” says Jessica Perry, the and services members can use to enhance site in the lower left association’s communications and marketing their real estate business. ■ corner. The problem was that, according to Newill, it was not clear that this Web site was owned or operated by the local association. Nebraska Awards Mark of Excellence Winning the “Member boards are licensed to use the Nebraska Association of REALTORS®’ Mark of Excellence Award has nothing to REALTOR® marks, including the REALTOR® logo in do with production or sales. The award’s criteria includes taking continuing connection with their name. Therefore, it’s not education classes, participating in political action, volunteering in the appropriate to use the REALTOR® logo on the community, serving on committees, and attending local, state, and national site without also using the association’s name REALTOR® events. The purpose of the recognition (represented with a lapel in connection with the trademark.” This is pin) is to honor professionalism and inspire members to reach higher. ■ important to note as more associations launch Web sites and online services that are aimed at consumers and may not have association Customize NAR’s Consumer Advertising branding. Campaign Materials to Your Local Market In addition, the association had created a video graphic on the site using the block NAR’s Consumer Advertising Campaign advantage of the opportunities in today’s R as a letter in the word “start,” as in, start launched a new commercial, “Make Your market. This latest commercial encourages your home search with a REALTOR®. Yet again, Move,” the third in a series of television com- consumers to stop waiting, start considering, this turned out to be an inadvertent misuse mercials as part of the Market Momentum and make a move by calling a REALTOR® of the block R logo because 1) the REALTOR® focus—advertising that encourages and visiting realtor.com®. In addition to the logo must always appear with the “REALTOR®” consumers to take new TV and radio ads that will run as part identiﬁ er right below the block R and 2) it of NAR’s national media buy, the campaign is never appropriate to use the block R as a includes print and digital materials that you substitute for an R in a word. and your members can use in your local The rules regarding proper format of the market. Visit the online ad generator at REALTOR® logo are available at realtor.org/ REALTOR.org (search for “ad generator”) mmm. Also, Newill says she’s happy to review to access these latest advertising ma- any use of the marks associations come up terials as you plan your own consumer with. Contact her at [email protected]. ■ outreach. ■

WINTER 2014 REALTOR® AE 5

+04-11_Wi14_Briefing_IM.indd 5 2/17/14 7:33 PM Briefing NAR PROGRAMS, PRODUCTS, & INITIATIVES Centennial Successes Code of Ethics 100th Anniversary Year Ends with Trove of Promotion Ideas for Associations REALTOR® associations across the coun- ing the Code of Ethics centennial and the try marked the 100th anniversary of the Code’s work in protecting consumers. Rep. REALTOR® Code of Ethics in 2013 with an Briggs King sponsored the resolution, and array of awareness materials, events, con- state and local REALTOR® associations in Code’s centennial, tests, and other resources. Delaware contributed toward getting the MAR planned articles for its In Pennsylvania, the state Association of resolution passed. e-newsletter and member Web site as well REALTORS® celebrated the centennial with The Greater Albuquerque Association as a public awareness campaign. a video contest encouraging members to of REALTORS® developed the Code Kiosk, The Virginia Association of REALTORS® share what the Code means to them. Three an online Code of Ethics resource for mem- published a special centennial edition of members won prizes—including an Apple bers. The main goal of the Code Kiosk, an Commonwealth, its quarterly magazine. The iPad and a Samsung Galaxy Note 10.1—and interactive Web site, was to support GAAR’s issue is full of articles on the Code of Eth- had their videos shown at the PAR spring members in conveying the ideals and rele- ics, including a handy cheat sheet about the business meeting. vance of the Code to the public during open types of information that must be disclosed In July, in San Marcos, Texas, Mayor houses, marketing presentations, and other online. A feature story discusses NAR’s Daniel Guerrero and the City Council pre- consumer outreach. Users can easily click Code of Ethics in relation to Virginia state sented a proclamation honoring the Code through the site and read key facts about law. Another feature outlines speciﬁ c sce- of Ethics’ 100th anniversary. Members of NAR’s Code of Ethics. narios where the Code of Ethics might come the San Marcos Area Board of REALTORS® Adding its new Code of Ethics image to into play during real estate transactions. showed their REALTOR® pride with Code a custom postage stamp enabled the Mis- These innovative ideas are also great of Ethics centennial banners created by souri Association of REALTORS® to promote ways to keep the code in front of members the Texas Association. the centennial on all its mailings. MAR also anytime. For links to all of these resources In June, the Delaware General Assembly created T-shirts and custom graphics. To and more, visit NAR’s centennial page at approved House Resolution 13, recogniz- educate members and the public about the realtor.org/coe100. ■

Professional See You at the AE Institute in Baltimore! Conduct Video No AE should miss the AE Insti- tute, the annual event that deliv- Highlights Respect ers real estate industry insights and Chances are that you’ve seen NAR’s 10-minute provides a wide range of education video “A Pathway to Professional Conduct: designed to help AEs across the Respect Starts Here,” which offers members country better serve their mem- six tips to professionalism and conducting bers. The conference kicks off business with the utmost respect for peers, Saturday, March 22, at 8:15 a.m. with the public, and property. It’s included in the 2014 NAR President Steve Brown annual New Member Orientation Toolkit mailed and a keynote address from Con- to associations. But did you know you can also nie Podesta, comedian and moti- post it to your association Web site, include it vational speaker. The REALTOR® on your YouTube association page, and link it to Party Luncheon on Sunday features your Facebook groups? The companion brochure a keynote address by Donna Bra- Immersion Day (Friday, March 21) is a work- highlights all the tips in the video. View it online zile, veteran Democratic political strategist shop to help AEs identify their role in the or purchase a pack of 100 for $39.95. See these and syndicated newspaper columnist. On REALTOR® organization’s strengthened fo- resources and more at REALTOR.org (search for Monday, NAR CEO Dale Stinton, RCE, CAE, cus on state and local advocacy and outreach. “Pathway to Professional Conduct”). ■ hosts the popular Q&A update on NAR Pre-registration is required. Full details are issues. New this year, the REALTOR® Party online at realtor.org/events/ae-institute. ■

6 REALTOR® AE WINTER 2014

+04-11_Wi14_Briefing_IM.indd 6 2/17/14 7:33 PM +04-11_Wi14_Briefing_IM.indd 7 2/17/14 7:33 PM Briefing AE CONTINUING EDUCATION, AWARDS Cummings Meet the New RCEs These 21 REALTOR® association executives earned their Receives RCE (REALTOR® association Certifi ed Executive) designation after an extensive course of study and exam in November. Not pictured: Jon Weber, RCE, Minneapolis Area Association of REALTORS®, Minn. RCE is the only McDermott designation created specifi cally for REALTOR® association executives. It exemplifi es goal-oriented AEs with drive, experience, and commitment to professional growth. Candidates earn the designation by accumulating Award points through experience, education and a comprehensive written exam. Dave Cummings, communications director for the New Hamp- shire Association of REALTORS®, is the recipient of the 2013 Terry McDermott Community Leadership Award. The award honors an AE who goes above and beyond his or her service to the commu- M. Steven Anaya, RCE Amanda Arwood, RCE, CAE Kipp Cooper, RCE Della Csehoski, RCE nity. Cummings founded the Hoops For REALTORS® Association Virginia Association of Huntsville Area Association Cambria Somerset Assoc. of Heroes initiative, which raised roughly of New Mexico REALTORS® of REALTORS®, Ala. REALTORS®, Pa. $95,000 for the Intrepid Fallen Heroes Fund for wounded veterans. Pledging to shoot 1 million basketball free throws as a fund-raising event, Cummings solicited donations on his Web site and Facebook and through word of mouth. His efforts gathered a strong social media and na-

Modene Gaulke, RCE Marc Gould, RCE Tina Grimes, RCE Debra Hansen, RCE tional media following. He made a shot Montrose Association National Association Rogue Valley Association REALTOR® Association of during the second quarter of a Celtics ® ® of REALTORS , Colo. of REALTORS®, Ill. of REALTORS , Ore. Southern Minnesota game at the Boston Garden (pictured above) and reached the midway mark on the ﬂ ight deck of the USS Intrepid aircraft carrier on Veterans Day 2010. Cummings will be formally recog- nized at the 2014 AE Institute in Balti- more on March 22, at which time NAR

Phil Hawkins, RCE Nicci Haynie, RCE Jessica Hickok, RCE Kathleen Hinman, RCE will make a $500 donation to the In- Paciﬁ c West Association Texas Association Greater Springﬁ eld Board Nevada County Association trepid Fallen Heroes Fund. ■ of REALTORS®, Calif. of REALTORS® of REALTORS®, Mo. of REALTORS®, Calif. AEs on the Move ■ Sandy Naragon is the new CEO for the Akron Cleveland Association of REALTORS® after the Akron and Cleve- land boards merged in October to form

Nicole Jensen, RCE Melissa Maldonado, RCE Lindsey Martinez, RCE Mary Martinez-Garcia, RCE a 4,500-member association serving ® REALTORS® Association South Metro Denver South Padre Island Board National Association REALTOR across Northeast Ohio. of Lincoln, Neb. REALTOR® Association, Colo. of REALTORS®, Texas of REALTORS®, Ill. ■ Jarron Springer, CAE, joined the Greater Nashville Association of REALTORS® as CEO in February. Springer comes to the REALTOR® family from the Tennessee Grocers & Convenience Store Association. Don Klein, former GNAR CEO, stepped down in January after 16 years with the association and Sue Pyzynski, RCE Regina Tubre, RCE Janie Weston, RCE Robert Wigton, RCE Mid-State Association New Braunfels/Canyon Lake Greater Lakes Association Nevada Association launched his own leadership and com- ® ® ® ® of REALTORS , Conn. Assoc. of REALTORS , Texas of REALTORS , Minn. of REALTORS munications consulting company. ■

8 REALTOR® AE WINTER 2014

+04-11_Wi14_Briefing_IM.indd 8 2/17/14 7:34 PM Roxanne Daiuto

FALL 2013 REALTOR® AE 9

+04-11_Wi14_Briefing_IM.indd 9 2/17/14 7:34 PM REALTOR® Party

Association-Backed Candidates Win Again Getting REALTOR® champions—politicians in tune with the REALTOR® organization’s views—elected to public ofﬁ ce has long been a priority. Since the laws governing campaign contributions

were relaxed in 2010, more advocacy organizations toric preservation, preferring a case-by-case basis to have entered the arena with huge amounts of money a blanket approach. for federal candidates. In response, REALTORS® have The San Jose Mercury News said of the candidates stepped up their efforts and engaged in nearly 500 in its endorsement editorial that “Hendricks and Julienne Uhlich is a campaign state and local campaigns in the past two years. Larsson have in common excellent preparation for services manager at the Case in point: Sunnyvale, Calif., holds its City the council on the planning commission, listening NATIONAL ASSOCIATION OF Council elections in the off-year, so there is relatively to all sides and making thoughtful decisions.” NAR REALTORS® in Washington, D.C. low turnout in these elections. With low turnout, polled area voters to check on candidate viability and She can be reached at vociferous anti-business, no-growth candidates can confi rmed that the association’s choices were solid. 202-383-1325 or take up a much larger proportion of the vote than After discussing the various campaign tools avail- [email protected]. is refl ective of the beliefs of the general population. able, the Silicon Valley Association opted to help get The 4,000-member Silicon Valley Association Larsson and Hendricks elected the old-fashioned of REALTORS® knew something had to be done to way—knocking on doors. In addition to running change the course of politics in the area. Three of online ads that would drive Internet traffi c directly the seven City Council seats were up for election in to the candidates’ Web sites, the association sent November 2013, two of which were open seats. The out dozens of canvassers to knock on doors during association identifi ed two REALTOR® champions to the month of October up to Election Day. Wearing run for those seats. “Neighbors of Glenn” and “Neighbors of Gustav” T- Association Government Affairs Director Jessica shirts, the canvassers (who were recruited and paid; Epstein contacted NAR about how she could take many were students) reached out to those most likely action and learned about the resources and grants to vote in this off-year election. Event: Sunnyvale City available to run an independent expenditure cam- By the time the polls closed on Election Day, the Council Elections paign* through the REALTOR® Party. It took only door-to-door fi eld team had knocked on 34,000 doors, 10 days from the time Epstein applied for funds and spreading the word about our REALTOR® champion assistance from the REALTOR® Party to get the fund- candidates and encouraging the voters to get to the ing approved. polls. And the effort was well worth the end result: REALTOR® champion and Sunnyvale planning Larsson won with 53 percent of the vote; Hendricks Commissioner Gustav Larsson was an ideal choice won with 58 percent. to run. Elected offi cials and community leaders who November is election time in many areas. Associa- • When: Fall, 2013 were already REALTOR® champions supported him. tions should plan now to get involved by supporting • Total amount of REALTOR® He understood the needs of homeowners, opposed their issue champions and working to replace real Party Grant: $124,900 point-of-sale mandates and rent control, and sup- estate-unfriendly elected offi cials. Open seats are the • Costs: $22,000: online ported the temporary placement of real estate signs best opportunities to change the shape of a governing ads; $102,900: fi eld on public property. body. Now is also the time to recruit local candidates program elements, The association also identifi ed planning Com- to run—maybe even a REALTOR®. ■ including T-shirts, door missioner Glenn Hendricks as an ideal candidate.

hangers, canvassers, He promoted the development of small affordable- * A political campaign that expressly advocates the election or defeat of a candidate that and more. housing units and took a nuanced approach to his- is not made in cooperation with or at the request of a candidate or a political party.

10 REALTOR® AE WINTER 2014

+04-11_Wi14_Briefing_IM.indd 10 2/17/14 7:34 PM +04-11_Wi14_Briefing_IM.indd 11 2/17/14 2:13 PM Raising the Bar by Masha Zager 10 Ideas to Raise the Bar for Member Professionalism

or the past 100 years, the National Association of REALTORS®’ Code of Ethics has remained a reliable Fguide for REALTOR® professionalism—and overall, REALTORS® do a good job of following it, say association executives, professional standards administrators, and trainers around the country. But what

can be done to maintain or improve professionalism moving forward into the Code’s second century?

“Right now, no one objectively knows whether REALTOR® professionalism is getting better or worse,”

says Ted Loring, a California REALTOR® who serves on the Interpretation and Procedures Advisory Board

for NAR’s Professional Standards Committee.

Rather than seeing a rise in the number or severity of complaints, experts pointed to a new challenge:

changes in the types of complaints being made due to shifts in the real estate market.

For example, Sue Flucke, president of the Arizona Association of REALTORS®, and Terry Tolman, chief

staff executive of the REALTORS® Association of Maui, say that because more properties were rented in a

slow market, the incidence of complaints associated with property management rose. Flucke and others

also say the housing crisis triggered many complaints about the way brokers handled short sales.

Complaints often reflect EALTORSR ®’ inexperience, either with the profession in general or with

a particular type of transaction. But other complaints, experts agree, reflect genuine moral lapses—

REALTORS® responding to difficult situations with shortcuts they know to be wrong but hope to

get away with.

Even though the complaint rate is low—and many credit ombudsmen and mediation programs for helping

resolve minor issues before they escalate into formal complaints—there is always room for improvement.

Experts, along with AEs responding to RAE’s anonymous survey, suggest a variety of measures that might set higher standards for professionalism.

12 REALTOR® AE Winter 2014

+12-15_Wi14_Feature_Raise_Bar_IM.indd 12 2/17/14 8:40 PM “We at the association can preach until we are blue in the face but unless the membership has the will to act, nothing will change. We get a lot of verbal allegations of unprofessional behavior, but few written complaints.” Promote the resources already in place. AE quotes from . “Use the bar, rather than raise the bar,” urges Hank RAE’s anonymous 1 professionalism survey. Lerner, director of professional practice at the Pennsylvania As- sociation of REALTORS®. “Guide agents to the resources that already exist so they can pick up the phone, call the other agent making professional-standards education stick. NAR provides and explain, ‘I’m not going to do this because the Code of Eth- a self-populated database of instructors at realtor.org/pstmrsrc.nsf. ics says it’s not right.’ We need to emphasize that it’s everyone’s responsibility.” Increase the frequency Among the resources that an association could use to craft a or length of training. professional standards page for its Web site are links to NAR’s 3. Currently, REALTORS® must complete training on “A Pathway to Professional Conduct: Respect Starts Here” video the Code of Ethics every four years and take continuing educa- and brochure.* State and local associations created new and in- tion classes every year or two to retain their real estate license. novative ethics materials last year as part of NAR’s Code of Ethics “If I were king for a day,” says broker Mary Ann Bush, who has centennial celebration. These ranged from ethics competitions to several decades of experience training REALTORS®, “I’d make a newsletter series (view them online at realtor.org/coe100). that four to six hours every six months.” In RAE’s professionalism survey, 28 percent of AEs said in- Improve the quality of creasing education would raise professionalism. Find interactive professionalism training. training materials online at REALTOR.org.** 2. “Good trainers give case scenarios that relate to the agent,” Flucke says, “but some of them just read the Code. The Increase fines for areas with better training have better results.” serious violations. Bruce Aydt, one of the top real estate instructors in the coun- 4 June Barlow, vice president and general counsel of . ® try, says NAR’s initiative to break up its online Code of Ethics the California Association of REALTORS , says NAR’s deci- training videos into easily digestible 20- to 30-minute chunks sion to implement a California task force recommendation is a welcome development. Aydt says in-person training should to increase the maximum fi ne for violations of the Code to incorporate a variety of teaching methods—demonstrations, $15,000, up from $5,000, sets the amount of the fi ne to a level role-playing, quizzes, lectures, and case studies—to accommodate REALTORS® won’t regard as simply a cost of doing business. different learning styles. The $15,000 maximum fi ne took effect Jan. 1, 2014, but it may Tolman recommends that training focus on specifi c issues that not be assessed unless the violation occurred in 2014. In other are problems—this would require associations to be proactive in words, if the infraction occurred in 2013 but the hearing is held surveying members and keeping track of complaints, whether in 2014, the maximum fi ne allowed would be limited to $5,000. formally fi led or not. In RAE’s professionalism survey, one AE said: “Too often, In RAE’s professionalism survey (p.16), one AE suggested: “The unethical behavior is rewarded by increased income to the Code and Standards of Practice needs to be published (and taught) member, while those who do complain fi nd themselves wonder- with a second-column commentary written without legalese, in ing why they should behave. Making bad behavior really costly common, everyday English as is done in some study Bibles. The would be benefi cial.” commentary needs to answer the reader’s questions of relevance of the Code: What does this mean to me? How does this apply to Publish the names of violators. my business? How does this apply to my business relationships?” The California task force also recommended allow- The National Association does provide a 15-video collec- 5 ing local associations to publish to their members . ® tion that covers each article the names of REALTORS who receive any punishment beyond a of the Code of Eth- reprimand. (Currently, only suspended or expelled respondents’ ics (and more) in names may be published, unless a local board voluntarily opts to easy-to-under- publish the names of respondents found in violation of the Code “Mandatory CE courses stand language, a second time within three years; consistent with Professional should include fair housing, online at realtor Standards Policy Statement No. 45.) The threat of publication consumer protection, and .org/codevideos. would serve as a deterrent, Barlow believes. In addition, she says, business regulations during Finding quality “for those reluctant to turn in someone, it shows that something each license renewal period.” instruction is key to clearly does happen.” The task force also said details of the

WINTER 2014 REALTOR® AE 13

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“There need to be higher standards for membership. violation should be included in Encourage brokers As long as we’d rather have the publication—which would to improve agent more members than raise the help other members learn ex- supervision. standards for being a member, 8. actly what is prohibited. nothing will change.” In RAE’s professionalism survey, one AE said: At the same time that NAR in- “Brokers need to enhance supervision of agents and creased the maximum fi ne, it clarifi ed hold them accountable for their conduct. Principal brokers other administrative issues. For instance, only individuals and offi ce managers must be better trained in the supervision (and not corporations or other business entities) may fi le of agents and provide more training in real estate best practices an ethics complaint, and complaints cannot be brought in and etiquette.” Another AE wrote: “Technology has taken away the name of third parties. the broker mentoring from the equation. There are fewer offi ce In RAE’s professionalism survey, one AE said: “The meetings for the REALTOR® spirit to be communicated.” anonymous nature of the COE enforcement process creates the impression that nothing happens and no one is Increase the requirements held accountable. The fact that it’s optional whether or not for REALTOR® membership. to publish names means very few associations will publish 9 “The only way to increase professionalism in our . ® the names of offenders, which keeps the problem in place. membership is to raise the standards for being a REALTOR ,” said Members are reluctant to fi le against one another since they one AE in RAE’s professionalism survey. “We will take anyone as expect retaliation for what they do, saying, ‘I have to work a member and we almost never kick anyone out. As long as we’d with these people.’ Most members are ethical but unwilling rather have more members than raise the standards for being a to stand up to the bad apples.” member, nothing will change.” Another survey respondent added: “With the inability to deny Create statewide databases membership and take everyone regardless of history, our result of disciplinary actions. is a large population of members that just do not care to do the 6. The same California task force recommend- right thing. Our true professionals are around 20 percent at most.” ed statewide databases that would facilitate the search of REALTORS®’ disciplinary records. Loring says consolidating Make filing complaints data would help weed out any offenders who move from one faster and easier. locality to another and would also provide information about 10. By far, the most common idea presented by trends in violations. AEs in RAE’s survey focused on improving and promoting the In May 2013, NAR approved changes to the Code of complaint process. Here are some views and ideas: Ethics and Arbitration Man- • “We need to do a better job of letting our members know ual to clarify that hearing they can fi le ethics complaints and how they can do this.” panels may include • “The process to fi le a complaint is tedious, confusing, and “There needs to be more information about a time-consuming to our mem- or better understanding member’s prior viola- bers. Most of our members of how the Code makes tions in its decision, and don’t understand the pro- “Members feel that a difference.” that the panel must consider cess and they want things fi lling out the complaint is previous violations of the Code resolved and handled too much work for a little when determining discipline. quickly. It takes too much slap on the hand.” time, so they say, ‘Forget it’ Encourage REALTORS® and move on.” 7 to “live the Code.” • “ Members feel that fi lling out the com- . In a proposal Loring made that is under discus- plaint is too much work for a little slap on sion by the Professional Standards Committee, he suggested the hand.” periodic surveys and tests to study how REALTORS® imple- How to File an Ethics Complaint can be found at: realtor.org/ ment the Code of Ethics in their business practices. Cur- code-of-ethics/brochure-before-you-file-an-ethics-complaint. rent tests, he said, ask routine questions (“Can you specify To adopt procedures to mediate potentially unethical conduct gender or race in advertising?”). More useful surveys or tests go to: realtor.org/ae/manage-your-association/association-policy/ would ask open-ended questions about complex situations, ethics-mediation. ■ eliciting information about REALTORS®’ propensity for ethical problem-solving. He explained, “If it’s successful, * View online at realtor.org/articles/a-pathway-to-professional-conduct- and it makes education more effective, then the ability of respect-starts-here. REALTORS® to serve their clients ethically would increase. ** realtor.org/policy/professional-standards-and-code-of-ethics/professional- That’s a huge win for the industry and the public.” standards-training-information-resources.

14 REALTOR® AE WINTER 2014

+12-15_Wi14_Feature_Raise_Bar_IM.indd 14 2/17/14 8:23 PM +12-15_Wi14_Feature_Raise_Bar_IM.indd 15 2/17/14 8:23 PM Raising the Bar Professionalism Survey Says ... Nearly 100 AEs (and a few professional standards administrators and staff) participated in REALTOR® AE magazine’s professionalism survey. Results appear throughout this issue, with 11 key ﬁ ndings here.

At your association, how much of a “We have the members concern is member professionalism recite the REALTOR today compared to three years ago? ® Q. every membership meeting pledge and at tell them at the beginning of each year to be mindful of what Less, professionalism is.” It’s AS MUCH of a concern As 4%  little, as ever, 63% 7%  It’s MORE of a concern today than it was, 26% As much  It’s AS LITTLE of a More, as ever, concern as ever, 7% 63% 26%  It’s LESS of a concern Would public reviews or today than it was, 4% ratings of REALTORS® and the Q. services they provided boost member professionalism?

Don’t know, How important do you feel No, 27% 42% professionalism is to your Q. members (on average)?

 Somewhat important, 48% Yes, 31% Somewhat,  Very important, 46% Not at 48%  Not that important, 4% all, 1%  Not at all important, 1%

Very, 46% “I see professionalism Not much, linked to an individual’s core 4% values; and I am not sure we ® REALTOR AEs and association staff were can change core values.” surveyed between Dec. 15, 2013, and Jan. 10, 2014. Ninety-one participants completed the full survey.

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+16-19_Wi14_Feature_Survey_IM.indd 16 2/17/14 7:38 PM

“We most often see failure to provide signed documents in a timely manner and failure to communicate the What specific type of status of a transaction or return phone calls.” unprofessional behavior Q. (pick one) is most common at your association today?

Do you feel the  Lack of professional courtesy REALTORS® Code of Ethics among members, 64% Q. comprehensively addresses  Lack of professional courtesy today’s ethical issues? by members to consumers or their property, 11%  Issues over disclosure (offers, agency, etc.) 10% No  Issues over advertising, 7% 21%  Issues over discrimination, 0%  Other, 9% Yes 79%

“The Code covers more than enough ground, but members continually attempt to interpret it narrowly instead of

broadly, as intended.”

What does your association Q. do to promote professionalism?

 We include  We regularly promote column in our print “In 2014 we will a segment on to consumers that or electronic member be implementing mandatory professionalism in REALTORS® are different communications, 21% professional etiquette training our new member from other real estate for all members.” orientation, 75% practitioners because of  We have a speciﬁ c of associations. their adherence to the public communications Code of Ethics, 44% campaign promoting  We have printed REALTORS®’ ethics and materials on hand or  We include professionalism, 9% online that explain what professionalism in many the Code of Ethics is of our member classes,  Other, 19%, including: and how the association 32% “We have the members enforces it, 67% recite the REALTOR®  We hold pledge at every  We regularly regular classes on membership meeting,” promote the Code of professionalism, 22% and “We hold sales Ethics in our member meetings and forums communications, 67%  We have a regular on professionalism professionalism throughout the year.”

WINTER 2014 REALTOR® AE 17

+16-19_Wi14_Feature_Survey_IM.indd 17 2/17/14 7:38 PM Raising the Bar

In your opinion, how much unethical Q. behavior at your association actually results in an ethics Is the use of complaint being filed? association Q. mediation services  Less than 5%, 44% up, down, or the  Between 5% and 10%, 26% same at your  Between 10% and 30%, 22% association in the  Between 30% and 60%, 4% last three years?  Between 60% and 80%, 2%  Between 80% to 100%, 1% Don’t know, 13% Up, 26% Down, 7%

“I get a lot of feedback from members that they don’t ﬁ le complaints because they are worried about retaliation by the other The same, 54% member, the member’s broker, or their entire ofﬁ ce.”

Is the number of ethics Q. complaints filed by consumers Is the use of up, down, or the association same in the last Down, 14% Q. arbitration services three years? Don’t up, down, or the same know, Up, 25% at your association in 9% the last three years?

Don’t know, The same, 52% 16%

Up, 19% Down, 19% Don’t know, 9% The same, 43% Down, The same, 46% 17%

Up, 27% Is the number of ethics complaints Q. filed by members Many REALTOR® AEs indicated that they “don’t know” up, down, or the the numbers or types of complaints because such same in the last complaints are handled by a state association or a three years? regional ethics and standards shared services program.

18 REALTOR® AE WINTER 2014

+16-19_Wi14_Feature_Survey_IM.indd 18 2/17/14 7:38 PM Could higher education become the By Melissa Dittmann Tracey Solution to a lack of professionalism?

igher education is one way REALTORS® are developing ranging as dual agency, dispute arbitration and mediation, ethics Hthe skill sets to meet greater customer demands for in management, accounting practices, and marketing. professionalism in the industry, says William Hardin III, director Many graduate programs also bring in real estate brokers of the Hollo School of Real Estate at Florida International and industry leaders to share their experiences with challenging University. transactions and ethical dilemmas.“It helps to take the abstract After all, the real estate agent’s role has changed dramatically to the concrete,” says Hardin says. in the last 15 years to focus more on helping customers interpret “Real estate is a large global industry, but when you’re working real estate information—much of which they’ve gathered them- in it, it can feel incredibly small. One’s reputation, integrity, and selves—to make more informed buying and selling decisions. ethics can’t be underestimated,” Funk says. “In our coursework, Agents who are committed to higher learning may engender we never get away from the fact that real estate is a people busi- higher degrees of trust and confi dence from clients in meeting ness. Projects and transactions get done through networks with that evolving role, Hardin says. people.” While a college degree in real estate is not a requirement to Indeed, many graduate programs urge students to build con- meet higher levels of professionalism, the industry only benefi ts nections during their training, such as by establishing mentor- by having more agents and brokers seek higher levels of training, ships with others in the fi eld, connecting with alumni, joining the says David Funk, director of Cornell University’s Baker Program national and local REALTOR® associations, attending business in Real Estate. networking events, and earning REALTOR® des- “Buying a home is often a per- ignations for the networking and added training son’s biggest investment in life,” “As more professionals opportunities. Funk says. “The trust and respon- earn master’s degrees, sibility that comes with that is employers will take notice A Growing Differentiator? huge. University programs and a of the quality of their work As more real estate professionals earn master’s master’s degree raise the bar and degrees, could they pave a big change for profes- move the industry more toward a and the sophisticated sionalism in the industry? professional status that aligns it to analyses of real estate “Any time it’s easy to enter a fi eld, you have dif- the importance real estate plays in that they have. It may fi culty with the idea of ‘professional,’ ” says Mark most people’s lives.” one day influence more Lee Levine, professor at the Franklin L. Burns hiring decisions.” School of Real Estate and Construction Manage- Building a Solid Foundation ment at the University of Denver. “As more earn — Mark Lee Levine, professor, So how are graduate programs help- University of Denver master’s degrees, employers will take notice of ing students achieve this higher the quality of their work and the sophisticated level of professionalism? For one, analyses of real estate that they have. It may one they’re putting ethical training at the forefront of their programs. day infl uence more hiring decisions. And consumers will see the Although you may not fi nd a specifi c course on real estate benefi ts of people who are well-trained, ethical, and honest.” ethics in many graduate programs, educators say that’s because Still, the industry has a “tremendous ways to go in develop- teaching ethics is so important that they infuse it throughout a ing programs in higher education to serve all of the real estate graduate student’s curriculum, such as in law, fi nancing, and busi- industry’s needs,” Funk says. Associations can help, he adds, by ness courses. The REALTOR® Code of Ethics is the foundation creating university linkages, mentoring programs, and scholar- for most of the ethical training students receive in real estate ships, and developing greater opportunities that connect students programs such as REALTOR® University, University of Denver, at the undergraduate and graduate levels to the association. Late and Florida International University, among others. last year, NAR launched its student membership category to Real-world, practical applications are an important factor in emphasize the value of involvement in the National Association. graduate education and the teaching of ethics, says Marc Gould, Whether it’s through graduate training, designations, or con- dean of student services at REALTOR® University. Students often tinuing education, Hardin says, one thing will remain certain: receive ethics training in the form of case studies that allow “The professionals in our fi eld tend to be those who invest in them to confront challenging circumstances related to real estate themselves and invest in understanding how the market works. practice, business, and regulation—examining scenarios as wide- And in the long term, they will be the ones left standing.” ■

WINTER 2014 REALTOR® AE 19

+16-19_Wi14_Feature_Survey_IM.indd 19 2/17/14 7:38 PM Raising the Bar by Carolyn Schwaar Making it harder to get a real estate License ou hear it all the time: “If only it were harder to get a real estate license in the ﬁ rst place, then Yfewer bad apples would join the industry, or they’d learn earlier the right way to do business.” More than 50 percent of the AEs in our professionalism survey (page 16) said heightened education requirements to obtain or retain a real estate license would be the best way to boost professionalism.

Several state REALTOR® associations are now working with their legislatures to change licensing

requirements with this goal in mind.

Yet real estate licensing is a complex, political, and shift- the business looking for ways to set themselves apart, and ing issue that varies with each state, says Jeanne Jackson- sometimes this can lead them down the wrong path.” Heim, executive director of the Idaho Real Estate Com- This is why Idaho’s push right now is for targeted new- mission, current president of Association of Real Estate licensee education. “I don’t think that most long-time prac- License Law Offi cials, and a former REALTOR® AE. titioners need more education,” says Jackson-Heim. “We “In Idaho, for example, legislators have very little appe- just want to help the new folks get off on the right foot.” tite for increasing licensing requirements for any trade,” says By contrast, the South Carolina Association of Jackson-Heim. “They often view any change to licensing REALTORS® had drafted 38 license law revisions that it requirements as imposing a ‘barrier to believes will raise the standards of professional- entry’ for that profession.” And, based ism for all practitioners in the state. “There should be on her experience, reluctance to a completely separate CE The proposed revisions, which are increase licensing requirements track for managing brokers that expected to be introduced to is nonpartisan. should include offi ce policies, the the state legislature later this Nearly every state has, in stat- independent contractor agreement, year, will double the number utes or rules, the number of hours sexual harassment, MLS rules, of hours of required preli- the real estate licensing commission working with buyers’ agents, and censing education to 120 and can require for a license, along with double the number of hours procuring cause.” requirements for hours of continuing to 16 for required continuing education and fi rst-year, post-licensee education. education every two years. The Idaho already requires 90 hours of prelicense education proposal also includes a new and 20 hours of CE every two years. So instead of proposing continuing education requirement for brokers- more requirements, the Idaho commission is suggesting in-charge and property managers, as well as a new to the legislature a change in the content of the education “documented fi eld experience” requirement for fi rst-year required for the fi rst-time licensees. “We have seen a need licensees. Going even further, the revisions will require for increased education in professionalism,” says Jackson- criminal background checks for all licensees and real estate Heim. “It’s not that new licensees always have problems, instructors, eliminate the continuing education age ex- but there is a predominance of new people getting into emption for those older than 65, and require ethics to be

20 REALTOR® AE WINTER 2014

+20-21_Wi14_Feature_License_IM.indd 20 2/17/14 7:42 PM “I believe those who want to be professional already are and those who aren’t, don’t care. The only way to increase professionalism in the industry is to make it harder for the lazy ones to AE quotes from RAE’s anonymous

professionalism survey. be in the industry.” included as a topic in every prelicensing course. “PAR believes these changes will Cashion Drolet, senior vice president of gov- result in an enhanced level of ser- ernment affairs for the South Carolina Association of vice for consumers and a higher level of REALTORS®, is optimistic that the new regulations will pass, but competency throughout the real estate industry,” says it will be a two-year process. “We strongly believe this is another association CEO Dave Phillips. avenue toward improving professionalism in the industry,” In North Dakota, the real estate commission is proposing an she says. “Some changes we’ve asked for—increased inspec- amendment to licensing regulations to curtail unprofessional tions, random inspections, faster turnaround on disciplinary behavior. The proposal will limit the number of continuing actions, and criminal background checks—have been en- education hours a licensee can claim to have taken in one day acted via administrative action, while others require regula- to eight to minimize what appear to be fraudulent claims. tory action.” “We have a lot of people taking their courses online now and In Pennsylvania, the REALTORS® association backs a Senate it’s amazing some of the claims that go to the commission for bill introduced in 2013 that would heighten real estate license the number of hours taken in 15 minutes,” says Nancy Willis, requirements to bring them more in line with national averages. government affairs director for the North Dakota Association For example, the bill would increase continuing education hours of REALTORS®. for all real estate licensees from 14 hours to 18 hours every two Yet Jackson-Heim notes that licensing requirements are only years. (According to ARELLO statistics, part of the answer. “I think what else might 18 hours of continuing education every help would be more broker involvement, two years is the average for the 50 states.) more training and mentoring,” she says. The bill would also require 95 percent “Perhaps licensees should “Brokers could be required to do more, attendance at prelicensure and con- have at least an associate’s show the new folks the ropes until tinuing education courses, and require degree and we should make they’ve gotten their feet wet. Perhaps a high school diploma. All this “will common courtesy a part of the Code of Ethics requirements could be help elevate the professionalism of all state exam and pre-license more frequent than every four years, or licensees, as well as provide additional training.” perhaps there could also be some increased protection to the consumers they serve,” ac- education to attain REALTOR® membership. cording to the association. The legislation was passed There’s no right answer to this question or one right by the Senate Consumer Protection and Professional Licensure solution to this problem of professionalism. We should Committee in April 2013 and is awaiting action by the Senate. be attacking it on all fronts.” ■

Q. Among these options, which is the one most effective way you feel professionalism could be increased? “PAR believes heightened real estate license  Heightened education requirements will result requirements to obtain a real estate license. in an enhanced level of 18% service for consumers 29%  Heightened continuing and a higher level of education requirements competency throughout on professionalism to retain a license. the real estate industry,” 26% — Dave Phillips, CEO, Pennsylvania  More professional Association of REALTORS® 27% standards enforcement.

 More professionalism education at the state or local REALTOR® association.

WINTER 2014 REALTOR® AE 21

+20-21_Wi14_Feature_License_IM.indd 21 2/17/14 7:42 PM Technology by Carolyn Schwaar Who Should Run the Agent Ratings? REA LTOR ® associations generally steer clear of promoting one member over another. Most association programs and services keep the playing ﬁ eld level. Online membership lists are in alphabetical order, and “Find a

REALTOR®” functions rarely stray from offering just desig- be volume-based, activity-based, referral-based? There are so nation, specialty, and language options to narrow the search many factors that go into selecting the right agent.” for consumers. Sites that do review and rate agents, such as Zillow, Trulia, So while associations may be happy to stand on the side- or Yelp, rely on whatever information they can get to formu- lines of the ratings battle, more are being dragged into the late unique rating criteria. Ratings can include feedback from fray. Members are either talking about association-sponsored clients, days a home sat on the market, list price-to-sale price rating systems they believe could be more neutral, fair, and ratios, agents’ years of experience, how many homes sold, and member-centric—as is the association norm—or asking the a wide range of public data. Then, add the opportunities for associations to intervene on their behalf against rating sites agents to purchase ranking “enhancements” or “placements,” believed to be unjust. and have friends and family write glowing endorsements, and it is no wonder REALTORS® are dismayed with the current “For a program to succeed in rating or ranking rating site offerings. agent production, you would have to fi rst standardize “For a program to succeed in rating or ranking agent production, you would have to fi rst standardize data feeds data feeds so that you’re gathering consistent and accurate so that you’re gathering consistent and accurate informa- information on everyone.” tion on everyone,” says Lisa Noon, RCE, CAE, CEO of the Oklahoma Association of REALTORS®. “Some REALTORS® — Lisa Noon, RCE, CAE, CEO, Oklahoma Association of REALTORS® Inc. work as individuals, some work in teams, and others are teams where production is all given to the team leader. The ques- “Just last week, I received a frantic e-mail from an offi ce tion then is how to extrapolate quality service or production manager at one of our largest fi rms,” says Kathy Roberts, from different business models. Then we must ask ourselves, RCE, AE of the Sarasota Association of REALTORS®, Fla. is production the only parameter for success?” “One of her agents sent her a link to a rating on [a listing Indeed, as seen in realtor.com®’s controversial Agent- site] that she was extremely upset about. It was using data Match beta test, metrics such as days on market or list price- it had from an unknown source to rate her, and the results to-sale price ratio, “while useful within a real estate brokerage, painted her in a bad light.” could be confusing or even misleading to consumers,” said Errol Unfortunately, there’s very little associations can do to Samuelson, chief strategy offi cer of Move Inc., which operates help agents who believe they’ve been wrongly rated. Although realtor.com®. “Numbers don’t lie, but they don’t necessarily some MLSs decline to share data on sold properties or other tell the whole story, either.” Realtor.com® expects to release facts that are often used to rank members, the only defense is a retooled agent fi nder in 2014. a good offense, AEs say. Educating members on how the rating systems work or advising them on alternative methods of MAKE NO MISTAKE, MORE RATING SITES ARE COMING promotion are currently hot classroom topics at REALTOR® Although disagreement on how to best rank or rate associations nationwide. REALTORS® remains, sites that do so aren’t going away. From HomeLight and Mountains of Agents to Brokur and Stik, the CAN THERE BE A “FAIR” RANKING PROGRAM? number of startups aiming to match home buyers and sellers “Pleasing everyone, or most everyone, with a rating system with agents skyrocketed in the past few years. And all—like would be very diffi cult,” says Jeanette Newton, RCE, CEO, the home listing sites before them—are striving to profi t from Dulles Area Association of REALTORS® Inc.,Va. “Would it claiming a space between the REALTOR® and the consumer.

22 REALTOR® AE WINTER 2014

I-22-23_Wi14_Tech_Reviews_IM.indd 22 2/19/14 8:20 PM “Credibility is the most important element in agent ratings, and you need that third-party relationship to show it.” — Kathy Roberts, RCE, AE, Sarasota Association of REALTORS®, Fla.

Currently, no single player dominates the agent clients and friends for posting across social media rating space—which industry analysts say is still sites. The reviews are linked to authors’ Facebook nascent—creating an opportunity for anyone’s or LinkedIn accounts to establish credibility. entry. So now, in addition to the question of Similarly at Trulia, agents can add endorsements how to rate agents, there’s the question of who from Facebook friends to their profi le, and at should rate agents. realtor.com®, agents can add client recommenda- tions (garnered through a RealSatisfi ed survey) LEAVE RATINGS TO THE BROKERAGES? to their profi le. “Agent ratings should be a broker option, and it would be best done outside of the association,” LEAVE RATINGS TO THE ASSOCIATION OR MLS? says Newton. “This is a perfect example of ‘level- The Houston Association of REALTORS® has run a ing the playing fi eld’ that our brokers would not popular agent rating system since 2009. Key to its be pleased about.” success, say Bob Hale, HAR’s CEO, are its opt-in Many large national brokerages, including element and the option for agents to make their ZipRealty and Redfi n, already have their own reviews public or not. review platforms for agents. At the Sarasota association, members can par- ZipRealty’s opt-in system posts the unedited ticipate in the REALTOR® Excellence Program reviews from all the agents’ clients while giving the offered through the My Florida Regional MLS. agent the opportunity to respond to the review “I think the REP program really fi lls a need,” says to clarify or explain. The brokerage says 9 out Roberts, “and I don’t understand the reluctance of of 10 agents participate in the platform. Redfi n, the brokers to use it.” Florida broker participation likewise, says it not only surveys every client— in the REP has been low. whether a deal closes or not—and posts all the Roberts says the ideal rating tool would have reviews, but it pays its real estate agents based association involvement in development, but data on those reviews. gathering done by a third-party business partner. As an alternative to a brokerage—or an associa- “Credibility is the most important element in tion—building its own review platform, there’s a agent ratings, and you need that third-party rela- growing list of third-party customer satisfaction tionship to show it.” and service measurement companies, including In January, the small Pinehurst-Southern Pines RealSatisfi ed and Quality Service Certifi ed, which Area Association of REALTORS®, N.C., became both specialize in the real estate market. the fi rst REALTOR® association to sign onto the Quality Service Certifi ed currently partners RealSatisfi ed platform, which integrates with its with several REALTOR® associations in a NATION- MLS to automatically send customer surveys. AL ASSOCIATION OF REALTORS®-sponsored Members can choose to use client feedback in beta test of member ratings called the REALTOR® their marketing, but AE Paula Nash said the pro- Excellence Program. More generalized customer gram is for members to learn from their client’s satisfaction software that any entity can custom- feedback. ize is available from companies such as Customer Although her members in Oklahoma have Thermometer and Hively. not pushed the idea of an association-run rating system, Noon says associations could be best po- LEAVE RATINGS TO THE AGENTS? sitioned to manage them. “My impression is that Agents are arguably the most motivated to build programs overseen from within the organization and manage their professional reputation. Glow- are more readily accepted not only by members ing client endorsements that agents post on their but also by the public. Anytime that we can create own Web sites are still a powerful sales tool, and programs that take into account our members’ agents increasingly are using new technologies to opinions and insight, we’re going to have a much boost the number of testimonials and credibility better chance of success,” she says. of the positive feedback they receive. Who will claim the ratings space and how Services such as Stik, an online reputation man- agents will be rated are questions associations, agement platform (for all types of professionals), brokers, agents, and others will continue to ask offer agents a way to solicit endorsements from themselves. ■

WINTER 2014 REALTOR® AE 23

I-22-23_Wi14_Tech_Reviews_IM.indd 23 2/19/14 8:08 PM Small Board Where Professionalism Becomes Personal Especially in small associations, where REALTORS® know one another, their families, and their dogs (the one who dug up the neigh- bor’s ﬂ ower beds), one’s professional reputation is very important. In

tight-knit communities where it’s hard to sweep any- REACHING INFORMAL SOLUTIONS thing under the rug, professionalism can ﬂ ourish or “Since I often know the parties well, I can guide them it can falter. through to an appropriate resolution and correction informally,” says Kevan Lyons, RCE, EVP/COO, of Amy DuBose, RCE, e-PRO, TALKING IT OUT FIRST the 151-member REALTORS® of Central Colorado asociation staff, San Marcos When I receive a call on a possible violation of the Inc. “It’s funny to me how both parties often come Area Board of REALTORS®, Texas. Code of Ethics at my association, I ask if the agent running, phoning, or e-mailing to tell me their side She can be reached at has talked with his or her broker about it. If so, then of the story. I never have to go search it out.” 512-396-5478 or perhaps the broker is able to discuss the situation Yet despite the opportunity for discussion and [email protected]. with the other agent’s broker. Since the brokers want informal remedies at small associations, sometimes to maintain a good working relationship, they’re in- serious ethics violations do occur and require solu- clined to work out any problems quickly. There’s no tions in keeping with the standards all members need for REALTORS® to go to war with one another have sworn to uphold. The need to enforce the Code if there is a better and more effective way to handle of Ethics is something that is paramount at asso- the situation. ciations of all sizes. In order for our profession to grow, we need solid case studies that provide details “Some of our members may be cautious to ﬁ le a of when things go awry. It’s like the warning on the paint can cautioning against ingesting it—it’s there complaint against a top producer knowing that they will likely because someone actually drank the paint. Without have to work with him or her again on another transaction.” warnings and stories to tell to our members, we risk not just the REALTOR® reputation but also perma- ® — Jim Haisler, CEO, Heartland REALTOR Organization nent damage to the industry as a whole.

“I think that our smaller size allows for more bro- FEAR OF FILING FORMAL COMPLAINTS ker-to-broker contact,” says Jim Haisler, CEO of the Unfortunately, members of small associations are 800-member Heartland REALTOR® Organization in particularly reluctant to fi le offi cial complaints be- Illinois. “Often when agents call me with a situation cause, even though ethics proceedings are confi den- and are hesitant to fi le a formal complaint, I suggest tial, not much in a small town is secret. Plus, mem- they consider contacting the other agent directly to bers fear being blacklisted as a tattletale, even if the make the agent aware there is an issue. In my experi- ethics violation is true and serious. ence, most agents don’t intend to violate the Code of “Some of our members are cautious to fi le a com- Ethics, but rather, something happened that caused plaint against a top producer knowing that they’ll them to or they were unaware that they did violate have to work with him or her again or at least show the Code.” his or her listings,” says Haisler. And you see other For most small associations, the offi cial Code of agents at the grocery store. Ethics and Standards of Practice hearings, arbitra- Although there’s no easy answer to dealing with tions, and mediations are done at the state or region- unprofessional behavior, associations of all sizes al level. But AEs still do their fair share of informal must keep to the code and remain impartial, fair, and refereeing between members. consistent with whatever remedy works best. ■

24 REALTOR® AE WINTER 2014

+24-25_Wi14_SmallBoard_IM.indd 24 2/17/14 7:44 PM +24-25_Wi14_SmallBoard_IM.indd 25 2/17/14 7:44 PM Law & Policy Professionalism and Pocket Listings By now pocket listings are a concept most real estate professionals are familiar with, and in some circles they have become something of a dirty word. Lower inventory has created a surge in pocket

listings, especially in markets such as Northern Cali- their clients, meaning real estate professionals must fornia, where as much as 30 percent of all listings place their clients’ interests above their own and act are believed to be pocket listings. However, mar- in the best interests of their clients at all times. kets across the United States are dealing with this Legal risk concerning pocket listings arises when Lesley M. Walker issue more often lately as real estate recovers and agents or brokers keep listings off the MLS for is associate counsel at the demand outpaces supply. Pocket listings can be legal, reasons that are not in the best interest of the client. National Association of but agents must proceed cautiously and consider the For example, unlike MLS listings, pocket listings are REALTORS®. Contact her at related risk management concerns they pose. more likely to result in the agent representing the 312-329-8834 or A pocket listing, off-MLS, or “offi ce exclusive” seller and the buyer, and the outcome would be a [email protected]. listing as it is sometimes called, generally refers to a higher commission for the agent. This in itself is not listing in which an agent has a listing agreement and illegal or unethical, but if the prospect of a double the seller does not authorize the placement of the commission is the reason an agent suggests a pocket listing on the MLS. Instead, the agent markets the listing to the client, then this could violate the Code of property through informal networks or new online Ethics, MLS rules, and laws in most states. In another platforms. MLS rules commonly require agents to example, assume brokerages in a high-end market place listings on the MLS within two days of receiv- have numerous pocket listings, which creates an aura ing a signed agreement. Failure to do so violates MLS of exclusivity for their business and attracts high-end rules, garnering the agent signifi cant penalty and fi nes. clients. This also is not illegal or unethical by itself. Of course, sellers can always elect not to have their Yet if the listings are kept off the MLS in order to property included in the MLS. In these instances, boost the brokerage’s reputation, not to benefi t the agents must have the seller sign an MLS opt-out seller-clients, the result can be a violation. form evidencing the seller’s direction not to have the Therefore, prior to recommending and entering property placed on the MLS. into a pocket listing, real estate agents must always en- sure that they are doing so because of the anticipated Suggesting a pocket listing benefi ts for the seller and not because of any benefi t The REALTOR® Code of Ethics’ Article 1 requires the agent or brokerage might receive. REALTORS® “to promote and protect the interests It cannot be overlooked that Article 3’s duty to of the client.” REALTORS® must always keep this in “cooperate with other brokers except when coop- mind when recommending a pocket listing to a client. eration is not in the client’s best interest” is rooted Even beyond the Code of Ethics, state law generally in the premise that broad exposure and cooperative dictates that real estate agents owe a fi duciary duty to marketing often produces the best results for sellers.

Pocket Listings: A Threat to the Culture of Cooperation? An informal working group convened by NAR in September 2013 to explore pocket listings’ effects on broker cooperation in general concluded that associations could take the following steps to enhance the REALTOR® culture of cooperation: 1) Increase member education about the potential risks inherent in pocket listings, 2) develop sample disclosure and consent forms explaining the possible consequences of withholding property from MLSs, and 3) continued emphasis on the value of cooperation, both informally and through the mechanism of MLSs.

26 REALTOR® AE Winter 2014

+26-27_Wi14_Legal_IM.indd 26 2/17/14 7:46 PM Associations deliver pocket listing facts to members and consumers. In addition to a webinar and Q&A document on pocket listings posted at CAR.org (which has been reprinted across the Internet), the California Association of REALTORS® added a section to its residential listing agreement that states: “Any reduction in exposure of the Property may lower the number of offers and negatively impact the sales price.” Sellers and brokers must initial the warning.

When an agent recommends a pocket listing to a client, it is these scenarios, a pocket listing may make sense to protect and crucial that he or she thoroughly discuss with the seller the pros maintain the client’s privacy. and cons of listing a property through the MLS. The agent should go one step further and be sure that the seller understands the Market impact of pocket listings benefits being waived by not including the property on the MLS. There is an industrywide impact of pocket listings. Many times, In general, the MLS offers sellers the greatest exposure of their properties offered as pocket listings are never entered into the MLS property, allowing it to be actively marketed to every real estate once they are sold. This limits the available information about the agent belonging to that MLS. In addition, by listing on the MLS, market and makes it difficult for other agents, buyers, and sellers the property may be downloaded to and displayed on third-party to determine values of nearby properties, and for appraisers trying advertising sites used by the general public. Withholding a prop- to determine the current market value of a particular property. erty from listing on the MLS significantly diminishes these mar- Without this information, an MLS’ database is also compromised keting opportunities, which may result in reaching fewer poten- because a true and accurate picture of price, sales time, and sales tial buyers and a longer time from listing to selling the property, activity is not recorded. and, perhaps at the core of most sellers’ minds, it may not yield Still, a pocket listing may make sense for a seller. The National the highest price for the property. Association of REALTORS® has no official policy on pocket listings. Yet, there are situations where pocket listings may be appropri- The decision to recommend a pocket listing to a seller is subject ate. One example is a seller with privacy concerns. High-profile to a REALTORS®’ adherence to the Code of Ethics requiring the individuals or celebrities may not want the general public to know utmost ethical and professional standards. Pocket listings should they are selling their property. Another situation is when a seller be used only if the agent has determined that doing so would not may not want a lot of people coming through the property. In compromise the legal and ethical duties they owe to their client. n

Winter 2014 REALTOR® AE 27

+26-27_Wi14_Legal_IM.indd 27 2/17/14 7:46 PM AE Profile

AE’s Secret to Longevity ® When REALTOR AE magazine asked Steve Harding, CEO of the Tennessee Association of REALTORS®, what he thought had led him to receive the 2013 William R. Magel Award of Excellence, he

recalled the inspiring guidance given to him many estly attributes his career success to being lucky and years ago by Magel himself. also having his parents as role models, a spouse that “I was a newly minted state EO [in 1977] and “keeps every thing running at home” without him, and between class sessions at what’s now called the AE having a “most talented administrative vice president Institute, Bill and I talked about how I liked being in Linda Woods.” the chief of staff at TAR. I confi ded in him that as Only a handful of AEs have a 40-year perspective executive assistant and education director at TAR, I on the changes in the industry. When Harding looks found the hands-on work of the association fulfi lling, back to his early days as a state EO, he sees a vastly so I wasn’t sure that I would enjoy turning that over different industry. to others whom I would then manage as EVP. Bill “When I fi rst came to work for the Tennessee As- told me that I should embrace this new opportunity sociation of REALTORS®, NAR had just created the and I should not become a ‘manager of people.’ He REALTOR®-Associate membership category, which said, ‘Nobody worth their salt wants to be managed; allowed nonbroker licensees to join our ranks. In what they want is to be collaborated with.’ Bill told me Tennessee, our membership more than doubled in a true leaders manage things, such as calendars, events, few years. The typical member was a white, middle- Stephen D. Harding is and priorities, but they leave the daily workfl ow to aged, male broker who worked in an independent real CEO of the Tennessee others on staff. This gives the EVP time to do the estate fi rm. TAR’s dues for nonmanaging sales agents Association of REALTORS®. most important and rewarding stuff like fi nding new were $10 annually. Services provided to members were Contact him at 615-440-5032 ways to help members and staff reach their goals. basic—education (mostly GRI courses), a monthly or [email protected]. “Later, Bill and I talked about the priorities and newsletter, three business meetings per year (one the things that really mattered. He said, ‘Steve, in being a convention with paid registration), and part- your job everything matters, but people matter most. time lobbying of Tennessee’s legislature. Show the people you work with how much you value “Today we have a much more diverse member- the work that they do for the association. Openly ship, which more closely represents the ethnic mix acknowledge their achievements and let them know of our state’s population. Women outnumber men they are an important part of the team.’ ” in the membership and within our committees and Indeed, in Harding’s 40 years in elected leadership. All members need, and have come REALTOR® association manage- to expect, a broad range of specialized training and ment, he has built a nationwide services that include a legal and ethics hotline, a tech- reputation for his leadership. nology hotline, more than 80 standardized real estate He gives his staff direction, forms, both topical and mandated courses for CE support, encouragement, credit, dedicated lobbying of interest to members and and the authority to carry property owners, and a range of other services that out their responsibilities we never dreamed about in those years.” as they meet members’ In addition to staying on top of industry changes, ever-changing needs. He technology advances, and member needs, Harding has also served as a mentor says AEs need to look for opportunities to get in- to local AEs in Tennes- volved in the political process and support candidates see and throughout the in local, state, and national elections. “It might just country. become the most important thing you can do to Yet Harding mod- make a real difference.” ■

28 REALTOR® AE WINTER 2014

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