TRIPLE PLAY ED TALKS: VISIONARIES WILL INSPIRE YOU TO REACH HIGHER NEW YORK STATE ® RTHE OFFICIAL PUBLICATIONE OFA THE NEW YORKL STATE ASSOCIATIONT OF REALTORSO® SEPTEMBER/OCTOBERR 2015 WORKING WITH FIRST-TIME HOMEBUYERS: NAVIGATING THE CHALLENGES AND OPPORTUNITIES Who is the ‘Typical’ NY REALTOR®? VOLUME 12, ISSUE 5 NEW YORK STATE ® RNEWE YORK STATEA ASSOCIATIONLT OF REALTORS®,O INC.R 12 CONTENTS 6 President’s message 7 From the CEO’s desk 8 New York news briefs 12 Legal Line – The Commission Escrow Act: A step-by-step reminder 15 Who is the ‘typical’ New York REALTOR®? 16 Smart home technology can drive home sales 15 17 NY REALTORS® to place legislative focus on first-time homebuyers 18 Working with first-time homebuyers: Navigating the challenges and opportunities 21 Home financing programs help first-time buyers get to closing 23 Triple Play ED Talks: Visionaries will inspire you to reach higher 17 25 It’s back to school time at the REALTOR® Institute 26 RPAC of New York thanks its 2015 major investors 29 Fall 2015 national designation course schedule 30 Advertiser.com View current and past issues of New York State REALTOR® at NYSAR.com. NEW YORK STATE REALTOR® (ISSN 1555-8343) is published bimonthly by the New York State Association of REALTORS®, Inc., 130 Washington Ave., Albany, NY 12210, 518.463.0300. Subscription rate for members is $2, which is included in the dues. ©2015 by the New York State Association of REALTORS®. Permission to reprint material may be granted upon request to Editor, NEW YORK STATE REALTOR®, at the above address. Published for: New York State Association of REALTORS®, Inc., 130 Washington Ave., Albany, N.Y. 12210-2220, Telephone: 518.463.0300, Fax: 518.462.5474, E-mail: [email protected], www.nysar.com NYSAR Officers: Michael Smith, President; Linda Bonarelli-Lugo, President-elect; Dawn Carpenter, Secretary/Treasurer; Duncan R. MacKenzie, CEO NYSAR Staff: Salvatore I. Prividera Jr, Director of Communications, Editor of New York State REALTOR®; S. Anthony Gatto, Director of Legal Services; Michael J. Kelly, Director of Government Affairs; Ali Mann, Director of Divisions; J. Austin Moran, Director of Information Technology; Kristen Pooler, Director of Marketing; Patrick Reilly, Vice President of Board and Member Services; Libby Rentz, Vice President of Finance; Priscilla Toth, Director of Education Published by: Naylor, LLC, 5950 NW First Place, Gainesville, FL 32607, Telephone: 800.369.6220, Fax: 352.332.3331, www.naylor.com. Publisher, Heidi Boe; Editor, Ruth Ellen Rasche; Research, Raquel Serrato; Advertising Sales Team Leader, Shaun Greyling; Advertising Sales, Tracy Jones, Shaun Greyling, Jacqueline McIllwain, Barb Scott; Layout & Design, Gordon Klassen While this publication makes a reasonable effort to establish the integrity of advertisers, it does not endorse advertised products or services unless specifically stated. NYSR Online - You can read New York State REALTOR® online at www.nysar.com, PUBLISHED SEPTEMBER 2015/NYR-S0515/1448 New York State REALTOR® 5 President’s message For our experienced REALTORS®, it is As you will read in this issue of New no surprise that one of the key components York State REALTOR® on page 16, work of a healthy real estate market is the entry has already begun on the NYSAR legisla- of first-time homebuyers into the owner- tive agenda for 2016. We must begin to ship role. provide incentives for our future New York Looking back at the beginnings of homeowners to save for their closing costs upturns in historically positive markets, while they are trying to manage their daily the first-time buyer always paves the way living expenses. for trade-up homes, second and resort To that end, NYSAR will propose the homes, new construction and even retire- creation of a first-time homebuyer savings Mike Smith ment homes. Frequently, the equity the account that will allow participants to save 2015 NYSAR President seller captures in a sale to a first-time buyer pre-tax dollars in an account earmarked allows them to provide a larger home for a for the purchase of a home. The home growing family, diversify into a vacation could be a one- to four-family residence, home or even become an active investor townhome, condo or co-op. The plan in real property. would allow an individual to save up to Where does the first-time buyer fit in $5,000 per year while couples would be today’s market and economic policies? able to save as much as $10,000. The answers to both of these questions are Your 2016 NYSAR leadership team straightforward. The first-time homebuyer and association staff will be looking to remains a vital cog in a healthy housing all members to help take our message to market and in our state’s economy. Our their state Senator and Assembly member state needs to create new policies and through Calls for Action and Lobby Day, programs to assist those who aspire to be among other activities. We will need the homeowners overcome the hurdles that unified voices of our more than 50,000 exist in the Empire State. REALTORS® telling the story of the chal- Regardless of the price levels of the lenges faced by first-time homebuyers diverse markets around New York State, when it comes to saving for closing costs. our nation-leading closing costs and We will also need to educate them about high property taxes are daunting to the the positive impact first-time homebuyers first-time buyers we need. Other closing have on the housing market and the overall cost expenses creep upward each day as state economy. We will need to explain insurance costs climb, and processing fees how supporting homeownership benefits will escalate with the new TILA RESPA all New Yorkers. We will have to ask them Integrated Disclosure (TRID) require- directly for their support of this legislation. ments. Seller-funded closing costs are Whether it’s a $75,000 house in market driven. In tight inventory mar- Genesee County, a $350,000 starter home kets, sellers can be less generous. Adding on Long Island or a $475,000 home in the costs to the purchase price may still Westchester, first-time homebuyers face mean the house may not appraise, so it is the same challenges in saving for closing likely that the buyer needs to provide most costs. REALTORS® are the only organized of the funding. voice representing homeowners and those REALTORS® were on the front lines of who want to become homeowners. Please gaining the initial passage of the Property lend your support to this effort when Tax Cap and its extension earlier this year. NYSAR asks. Now, we must raise our voices on behalf of programs to boost first-time home buying in New York State. 6 SEPTEMBER/OCTOBER 2015 From the CEO’s desk For most of us, it’s in our nature to be fearful We’ve even been able to expand the number of change or hesitant to do things differently of carriers and plans available to you through from the way it’s always been done. When the our private insurance exchange. Developed Affordable Care Act went into effect, it forced by Member Perks partner USI Affinity exclu- us all to adapt to a new way of obtaining health sively for NYSAR members, the NYSAR private insurance. There’s still confusion and misun- exchange enables you to shop plans by county derstanding when it comes to both health offered by every New York State-approved insurance coverage and NYSAR’s programs insurance carrier. Where NYSAR’s exchange designed to ease that burden for REALTORS®. differs from the public New York State of Health Our recent research study shows that there marketplace, and what we see as a major benefit Duncan MacKenzie is an overall lack of awareness that NYSAR has of having a private exchange for members, is NYSAR Chief a private health insurance exchange available the pricing. The NYSAR private exchange is Executive Officer to members shopping for coverage. For those able to offer the absolute lowest price possible who are aware, there’s a lack of understanding for the plans available. about the benefits of the private exchange, not When open enrollment begins on November to mention the costs. I hope to clear up the 1, I urge you to visit NYSAR’s private exchange largest misconceptions in this column. at www.MyREALTORinsurance.com/NYSAR A big change brought on by the Affordable to shop for your health insurance coverage. Care Act is the limited open enrollment For one-on-one support, call USI Affinity’s period people have to secure their insurance dedicated benefits’ counselors at 888-834-3713. for the year ahead. Please take note that the They’re experts on the carriers and plans open enrollment for 2016 coverage begins available in New York State and are eager to on Sunday, November 1, 2015 and runs until help you. They’ll even help you determine if Sunday, January 31, 2016. The only way to you’re eligible for a subsidy. obtain health insurance outside of the open If you take anything away from reading this, enrollment period is to qualify for a special let it be these two things: enrollment brought on by a major life change 1. NYSAR’s private exchange gives you access such as getting married, having a baby, chang- to every approved insurance carrier in New ing jobs or moving. In addition to all of the York State at the lowest possible price; and health and financial risks of not having insur- 2. Secure your 2016 health insurance coverage ance, if you choose to go without you’ll pay a tax prior to the January 31, 2016 deadline.