coldwell banker danforth broker’s...
TRANSCRIPT
BROKER’SBANTER
C O L D W E L L B A N K E R D A N F O R T H
MARCH/APRIL 2018
ISSUE# 2
CBDANFORTH.COM
Record-breaking 1st Quarter
Listing Photos Ownership Rights
2017 Awards06
12
15
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Hi CB Danforth Brokers!
The awards banquet is always one of my favorite events, and this last banquet was no different.
It is an honor for me to spend this time with such a great group of brokers who all have a common goal; to grow their business by always keeping a client-first attitude. This focus always pays off in the end and is why our top producing brokers are award winners year-after-year. I am truly humbled to lead such an amazing brokerage with a like-minded sales team.
This year, we switched things up, and instead of having a keynote speaker, we had a magician for entertainment. I have no idea how he did what he did, but it seemed as if everyone really loved his magic and sense of humor!
We are off to an amazing start this year; our best ever! Make sure to read the “Market Trends” section for all the details.
Keep up the great work, and thanks for being on our team!!
Dave
Dave’s DeskA letter from Dave Danforth, President of Coldwell Banker Danforth
Featured Story
Contents03 ANNIVERSARIES
04 NEW BROKERS
05 TOP PRODUCERS
06 2017 AWARD WINNERS
11 ALLAN'S RETIREMENT
12 MARKET TRENDS
13 ANNUAL MARKETING CLASS
14 LEGAL UPDATE
15 LISTING PHOTOS OWNERSHIP RIGHTS
16 SELLER FINANCING
18 CBD IN THE COMMUNITY
19 CONCIERGE
20 GPS
ALLAN'S RETIREMENT ANNOUNCEMENT: PAGE 11
1 YEAR
3COLDWELL BANKER DANFORTH | BROKER’S BANTER | MARCH/APRIL 2018
1 YEAR
5 YEARS 10 YEARS
Brenda BakkenFederal Way
Nancy EricksonBurien
Jeanne ShockleyBurien
Steve UdyNorthgate
Jonathan MartisNorthgate
Corey OrvoldFederal Way
Eleanor WilsonFederal Way
Leigh Ann BarthNorthgate
Linda JusthamNorthgate
Carol ReanierNorthgate
Linda McFarlaneNorthgate
Sherry ParkerNorthgate
James CadeFederal Way
Leona LytleFederal Way
Keoki MorganFederal Way
Kathleen “TK” PhilipsbornFederal Way
AnniversariesThank you for your time with Coldwell Banker Danforth and congratulations to our 1, 5, and 10 year anniversaries! We appreciate you!
Welcome to CB Danforth!Help us welcome the brokers who recently joined our team!
Julia ChonNorthgateFrom: Skyline Properties
Amanda StanfieldFederal WayFrom: CB Bain, Puyallup
Jennifer Fassnacht NorthgateNew Broker
Ryan RileyNorthgate From: Fairview Partners, LLC
Jeff Stoddard Federal WayNew Broker
Armida DiazFederal Way From: Kensington University Place Inc. Des Moines
Helping our Team Grow1 Month Desk Fee Waived!
The month that a broker you have referred to us pays their first desk fee, you get a FREE DESK FEE! Then, starting one year after that, you get a $25.00 credit EVERY month the broker is with us.
Additional incentive: If you ever reach the point where you have referred 13 brokers who are working at CBD, we will waive your desk fee every month going forward.
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5COLDWELL BANKER DANFORTH | BROKER’S BANTER | MARCH/APRIL 2018
Heidi BrightListing Volume
Christine HidalgoListing Volume
Joy TsuiListing Volume
Carrie Pierce-JohnsonSales Volume
Carrie Pierce-JohnsonSales Volume
Carrie Pierce-JohnsonSales Volume
Forey & JanieDuckettTeam Listing Units
Kelly FulksCathy VanDykeTeam Listing Units
Kelly FulksCathy VanDykeTeam Listing Units
Dwell Home TeamTeam Sales Units
Dwell Home TeamTeam Sales Units
Dwell Home TeamTeam Sales Units
Dwell Home TeamTeam Sales Volume
Dwell Home TeamTeam Sales Volume
Dwell Home TeamTeam Sales Volume
Renee GraySales Units
Jay GraumanSales Units
Jay GraumanSage SandersSales Units
Forey & JanieDuckettTeam Listing Volume
Kelly FulksCathy VanDykeTeam Listing Volume
Kelly FulksCathy VanDykeTeam Listing Volume
Alicia DalsegListing Units
Christine HidalgoListing Units
Christine HidalgoListing Units
FEBRUARY
MARCH
Q1
Congratulations to our Top Producers!We are proud to have a wonderful team of talented brokers here at Coldwell Banker Danforth! Here are some of our recent top producers.
Congrats to our Residential and Commercial Brokers!CB Danforth Residential and Commercial divisions each
received Top National Brokerage Awards
Residential awarded the prestigious Chairman's Circle Award for the 14th straight year!
Commercial awarded the exclusive Commercial Elite Award for
top 15 franchises worldwide!
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7COLDWELL BANKER DANFORTH | BROKER’S BANTER | MARCH/APRIL 2018
2017 Award Winners
Awards Banquet Highlights
Congrats to Carrie Pierce-Johnson, CBD's:
• Top Producer • Highest Gross Commission Income• Most Closed Units • International President’s Premier
Nate Jester, Magician, having fun with two CBD brokers
A toast to Allan & his upcoming retirement
Property Management team
Corey Orvold receiving the Rookie of the Year award
Bob Fredrickson with the Mergers & Acquisitions team
"The Jims" celebrate another award-winning year
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2017 Award Winners
International President’s Elite Team
International President’s Circle
International President’s Elite
Lisa Bibb
Gina Lane
Michelle Clyborne
Carol Reanier
Jon Catlow
Steven Lieu
Alex Eckardt
Sage Sanders
Forey Duckett
Dawn Bourdo & Corey Hays
Christina Fitzer & Susan Darnell
Christine Hidalgo
Angelina Goveia-Dahlgren
Brent Fosso
Ben Synder
Jane KimRenee Gray
Susan Krueger
9COLDWELL BANKER DANFORTH | BROKER’S BANTER | MARCH/APRIL 2018
International Diamond Society
Kathy Arpe Stan Athan Laurence Barratt Sabine Bestier Rhonda Bleck Jenifer Brawner Tami Foust David Frasch Heidi Gilbert Kim Harlington Helen Hendricks
David Hodgson Lisa Jones Paul Kim Nancie Kosnoff Virginia Lawson Kimberly Morgan-Storey Monica Posada-Garcia Mick Prandi Saviya Robinson Diana Russell Gary Sjoblom
David Smith Rebecca Smith Tracy ThesenvitzJane Tobin Susan Torrey Loretta Wells Larry Woods-Palmer Michelle Wright Big Mike Young
International Diamond Society TeamJim Brown Jim Richardson
International Sterling SocietyLorna Ava Kathy Beckes Margaret Berg James Borrud Deidre Daly Nancy Erickson Kerry Farrell Nancy Fong Michael Good Laura Hoffman Larry Hsu
Stephanie Kastner Wanda Kristjanson Joyce Lowe Carrie McCarthy James McCarthy Bruce Meratinia Kirk Mitchell Scott Morton Christina MullenbergChris OppfeltAnjanette Reed
Dan Sanchez Julie Shefts Fekade Tessema-Barke Joy Tsui Steve Udy Paul Uhl Karen Wagner Alex Zeiady
Danforth Sapphire AwardLaura Cahill Ken Kerr Todd MacDonald Jonathan Martis Sunny Mays Jodi Meinjohans Chris Moyer
Corey Orvold Terrene ReynoldsJoan RobinsonMichelle Stowe Qasim TangaLisa Woods Z Zorrilla
2017 Award Winners
Danforth Sapphire Society TeamMarisa Callaghan Tony Ogden
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Kim Adams, CCIM 2017 Top Producer (Gold)Circle of Distinction (Silver)
Rahsaan Freeman 2017 Top Producer (Silver)Circle of Distinction (Bronze)
Michael Swanson 2017 Top Producer (Bronze)President’s Achievement of Excellence
Byron Hiller 2017 Circle of Distinction (Platinum)
Bill Abbott, MBA 2017 President's Achievement of Excellence
Steve Comstock 2017 President’s Achievement of Excellence
Bob Fredrickson, CCIMPresident
206.595.7232 [email protected]
2017 Commercial Award WinnersOUR BEST YEAR EVER!
Please read Sam DeBord's letter to the Northgate Brokers
Congratulations Allan!Thank you for all you have done for CB Danforth and
the Real Estate community!
Please join us as we recognize Allan Kuipers and wish him well on his retirement.Wednesday, April 25th | 3–6pm | The Ram in Northgate
Come by the Ram anytime between 3pm and 6pm in Northgate to join us in wishing Allan a happy retirement. We look forward to seeing you there!
11COLDWELL BANKER DANFORTH | BROKER’S BANTER | MARCH/APRIL 2018
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PUGET SOUND
KING COUNTY
SEATTLE
EASTSIDE
SNOHOMISH
EVERETT
PIERCE COUNTY
TACOMA
SOUTH KING COUNTY
KITSAP COUNTY
THURSTON COUNTY
CLICK ON THE LINKS TO VIEW THE LOCAL MARKET TRENDS
Crushing All-Time Records!
We had our best 1st quarter in our 24+ year history, beating our previous best by over 20% in two major benchmarks: Gross Sales Volume and Gross Income Earned. February was definitely the catalyst behind these numbers, mounting an amazing 54% increase over the same month the previous years.
If this is any indication of how the year is going to be, then we are in for another banner year. The deals are flowing in the transaction center very briskly this month, and our team is ready to review each and every one of them, so keep them coming!
NWMLS NEWS RELEASE FOR MARCH’S STATISTICS
Market Trends
13COLDWELL BANKER DANFORTH | BROKER’S BANTER | MARCH/APRIL 2018
CBD ANNUAL MARKETING CLASS
Training will focus on these subjects:
Coldwell BankerTori from CB National will be going over all the tools you should be using to close more deals.
NWMLS• HomeSnap Application, free with your NWMLS subscription
• Take a picture of any property and immediately see tax & census data, schools, etc.
• Stay connected with your client through the chat feature
• Use the Safety timer to send a distress signal
Coldwell Banker Danforth• Social media update
• CBx: Live demonstration of how to use this tool to land more listings
Join Us!Tukwila Community Center | May 10th | 10:30am - 2pm
GUEST INSTRUCTOR:
Roxanne FaryarTraining Supervisor
NWMLS
CBD INSTRUCTOR:
Sam DeBord Vice President Strategic Growth
Northgate Branch Manager
FEATURING:
Tori KeichingerSenior Manager, Brand Marketing
Coldwell Banker
Sign Up
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Legal Update
22A, 22AA, and 22AD: Financing Addenda in a Hot MarketBrokers are looking for creative ways to get their buyers a winning offer in this competitive market. Unfortunately, the forms being used are often too creative. You may have seen Annie Fitzsimmons’ recent Get The Facts on these forms. Here’s a quick and practical rundown for your usage:
Buyers who need financing to close a transaction must disclose it. Either through a 22A Financing Contingency or a 22EF with a notice of contingent funds, this source of funds must be disclosed to the seller in the contract to avoid potentially committing fraud.
Buyers who need financing but wish to waive their financing contingency must still get permission in writing from the seller to have an appraiser enter the property. There is no standard form for this. Write this permission in to your contracts. See Form 22A’s item 6 for model language:
“Seller shall permit inspections required by lender, including but not limited to structural, pest, heating, plumbing, roof, electrical, septic, and well inspections. Seller is not obligated to pay for such inspections unless otherwise agreed.”
Buyers who need financing, wish to waive their financing contingency, and want to retain a contingency in case of a low appraisal should use form 22AA as a standalone addendum.
Buyers who need financing, wish to waive their financing contingency, and want to guarantee the seller that they’ll pay an additional amount of down payment if their appraisal comes in low, have
no standard forms available to produce this result prior to mutual acceptance.
The 22AD is for use only in conjunction with a 22A financing contingency. Buyers may give evidence of additional funds to seller and express their intent to use those funds if the appraisal comes in low, but the 22AD cannot be used to accomplish this without a 22A.
A workable solution: If seller and listing broker understand these forms and are amenable to this solution, buyer brokers may propose an offer with a 22A and 22AD, including two items on the 22A:
Item 3a of 22A: “At any time 1 day after mutual acceptance, Seller may give notice that Seller may terminate the agreement....”
Item 3c of 22A: “Buyer’s waiver of the Financing Contingency under this Paragraph 3 WILL NOT constitute waiver of Paragraph 7...” The “Will Not” box MUST be checked at mutual acceptance to protect the buyer.
The seller can now deliver the 22AR notice to waive financing to buyer one day after mutual acceptance. The buyer must waive financing or potentially have the contract terminated within 4 days of mutual acceptance, yet the buyer retains paragraph 7 of 22A which has been replaced by 22AD, ensuring the larger down payment.
Access for Appraisal Reminder
In any of these situations, it is advisable to write language into the contract that ensures buyer’s appraiser can access the property, no matter which addenda are being used, if there is or will be no financing contingency available.
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LISTING PHOTOS OWNERSHIP RIGHTS
Who Owns the Rights to the Listing Photos?
In 2017, Zillow was ordered to pay $8.3 million in a copyright photo infringement lawsuit!
Read Full Story
To avoid this type of headline, the following is our recommendation...
Know who owns the photo—and make sure you have the rights
Broker
If the Broker personally took the photo then there is no question as to the ownership. All rights associated with the photo are retained by the Broker.
Homeowner
Best Practice is to verify with the Homeowner that the pictures were taken by them. Section 7 of the Listing Agreement Form 1A warrants that Seller has the necessary rights in the photographs to allow Firm to use them as contemplated by the agreement. The Seller also agrees to hold NWMLS and CB Danforth harmless in the event that they did not have the right to use the photo.
If however, the homeowner did not take the photos then the Best Practice would be to have the actual photographer sign Form 13 for that individual
property. Without the signed permission of the photographer, you cannot use the photos.
Professional Photographer
Best Practice is to verify the License Agreement status between the Photographer and NWMLS. Have they signed either NWMLS Form 13, 13A or 13B?
• Form 13 is used for an individual property and only gives the rights to use the photographs for that one home
• Form 13A is a Master License between CB Danforth and the Photographer which gives the rights to use any photographs.
• Form 13B is a Master License between NWMLS and Its Members and the Photographer which gives the right to use any photographs. When the Photographer signs this agreement, their contact information is made available to all member of NWMLS. Click here to see a list of Companies that have already granted a license to use their photos.
CBD will be keeping a list of all photographers that have either signed the 13A or 13B and this will be published and available to all of our brokers in the All Things CBD Document for your easy access. If you have procured a 13A or 13B please send it to [email protected]
If you only received a 13, please attach it to your listing file.
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SELLER FINANCING FOR EVERY MARKET
A little background…
In the early 80’s when institutional interest rates were 19% seller financing became the preferred method for transacting a sale. Sellers were more than willing to “carry paper” and charge a discounted 12% rate to the buyer. What seller would not like to have a 5 to 30 year time frame for collecting monthly payments at 12%?
Wraparound notes (wraps) became the norm. If the seller had an underlying mortgage at 7-10% the entire amount would be wrapped with a new Real Estate Contract or Promissory Note secured by a Deed of Trust at 12% or whatever the market would bear. The buyer was happy with a reduced (less than 19%) interest rate and the seller was ecstatic to have a nice rate of return, as well.
The banks were not happy being undercut by consumers, but that soon changed. When the Garn St. Germaine Act was implemented in the mid 80’s, federally chartered lenders had the right to include a “due on sale” clause in their notes. Loans were no longer assumable, therefore, no longer wrappable without some assumption of liability.
Fast forward to 2018
Seller Financing still has a niche market. Consider the many sellers in today’s hot Seattle Real Estate market who are selling at a high price, netting so much equity that they are taking a huge tax hit above their federal exemption of $250K for a single person
or $500K for a married couple. Many of these sellers have zero balances owing on their homes, thereby becoming prime candidates for seller financing.
Example:
1. Home is free and clear.
2. Sells for $1 million dollars.
3. Seller is willing to seller finance (carry back paper) interest only.
4. Buyer puts down $300,000.
5. Parties agree to a 10 year loan from the seller at 6% before a balloon cashout.
6. Loan balance is $700,000.
7. Annual interest is $42,000.
8. Monthly income to seller of $3,500.
9. Over 10 years the seller nets an additional $420,000.
Seller received $300K up front (less closing costs), then $420K over 10 years, then a balloon of $700K for a total of $1,420,000 instead of $1 million.
Instead of a big capital gains tax hit on non-exempt dollars, the seller now spreads that over 10 years!
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SELLER FINANCING CONTINUED
Form 22C makes all of this easy to do. Let’s take a quick look!
1. General Terms: if the property qualifies for seller financing the first step is done. Attorney review paragraphs safeguard the parties involved.
2. Down Payment and Interest rate: fill them in.
3.
A. Check appropriate box for how payments will be made.
B. Promissory Note and Deed of Trust. Check this box. This is the preferred method of seller financing in Western Washington urban/suburban areas. Pull up the Promissory Note and Deed of Trust referenced as LPB forms.
Important Note: Mark each of them as Exhibit 1 and Exhibit 2. Do not fill in these forms. At the top of each form write: “A form similar to this will be used at closing.” Then have buyer and seller initial and date each one by that verbiage. These exhibits must be attached in order to have an enforceable Seller Financing Agreement!
C. Ignore (real estate contract is used primarily in agricultural areas these days).
4. Ignore (assumptions are rarely done these days and require full qualifying by the buyer).
5. Other Terms:
A. Payments to Collection Account: check all boxes. You want to have this in place for buyer and seller.
B. Seller’s review of Buyer’s Finances Contingency: Check need for credit report and box for other: have buyer fill out a loan application form to divulge cash and other assets, including real estate.
C. Title Insurance: check box.
Differences between Note and Deed of Trust and Real Estate Contract
1. Note and Deed of Trust
a. Title passes to buyer at closing
b. Can be foreclosed in 180 days.
c. Preferred method of SF in our area.
2. Real Estate Contract
a. Title is held by seller or 3rd party until note is paid in full.
b. Can be foreclosed in 3-4 months.
c. Preferred method of SF in agricultural areas.
In summary, Seller Financing can be a great vehicle for the seller and buyer. Be sure to observe the proper protocols when filling out Form 22C. When appropriate, educate your buyers and sellers about this very viable option!
Respectfully submitted,Allan KuipersCBD Northgate
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Concierge
Thank you volunteers!!
On Saturday, March 31st, our team helped package up 13,015 pounds of apples at the NW Harvest warehouse in Kent. This is enough to provide 10,011 snacks. These apples were shipped to food banks across the state the week of April 2-6. Great work everyone!!
CBD in the Community
Upcoming Events:Build with Habitat for Humanity of Pierce County
Save the date! We will be having our next volunteer event on Wednesday, June 20th. We will be participating in a build with Habitat for Humanity of Pierce County. More details will be available as we get closer to the date.
We are always looking for new and different ways to get involved in the community.
Please email Valerie at [email protected] with any organizations you think we should know about!
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Concierge
Announcing a major expansion of the CBD Concierge Program
Promoting Brokers and VendorsThis is another way we can promote our Coldwell Banker Danforth Brokers and Vendors.
Contact for HelpWe will start contacting CBD Brokers and Vendors asking for five local merchants and suppliers for us to invite to list in the "Welcoming Services" section.
Live Links to the CB Danforth Website and Brokers lists will be added to the top of the CBD Concierge Website. www.cbdanforth.com and 1.800.945.4110.
ExposureUsing the CBD Concierge Website increases exposure for both Brokers and Vendors!
Please begin thinking about some local merchants and suppliers you could recommend for us to contact. Thanks again for using the CBD Concierge Program to support our clients and vendors.
Thanks for your support, the Concierge Team
Roy & Jodi Kauer, Directors
Business ClosingsAs you might know, in 2017, internet companies like Amazon have contributed to the closing of over 6300 local businesses and local vendors.
Internet UsageResearch has suggested that more than ever customers use the internet to search for and find products and services, merchants, vendors, and brokers. Local visibility can add to internet credibility.
Local SupportThe message is clear: Businesses need more internet exposure and more local support.
Welcoming ServicesIf you would look at the top of the list on the CBD Concierge website, you will see a section called “Welcoming Services”. This is where we list local merchants and suppliers, just before the list of 250 Vendor Services.
AdditionsNow, at no cost to them, we will add many more merchants and suppliers to this list. In exchange, we will seek their help in promoting our brokers and vendors using fliers, posters, business cards, and their company websites.
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GPS Escrow
One Thing to Know
Okay, there may be two things to know:
1. There are a lot of things to know
2. GPS Escrow knows a lot of things
Being a smart and capable broker doesn’t mean you have to remember all of the particulars about international wires, holdback agreements, recording timing, the difference between a Trustee’s Deed and a Statutory Warranty Deed, or who signs when a trust or estate buys or sells a home. These are things we deal with every day. So, whatever your topic may be just ask – no question too small!
“How do I ask?” You ask? Well, call, email or text. Our teams all have text-enabled phone numbers and are often checking emails outside of normal business hours. Let us help you stand out to your client or
save you some time from wondering. We can make a difference in your business and we are a resource for you even if your inquiry doesn’t relate to an active transaction in our office.
Keep us in mind!
Coldwell Bank Danforth Primary Team Members
Amy Lipscomb, Lead Closer/LPO [email protected] / 425.233.6552
Sam Boche, Escrow Processor [email protected] / 425.233.6555
Kayla Jackson, Escrow Closer [email protected] / 425.233.6551
Daren Hamilton [email protected] 206.391.0255