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June 2008
Index of all
messages
from the Association President
President’s Message – The strength of membership
By David DeElena
In this time of technological advances, it often seems that trade associations are losing their relevance.
We sometimes hear that the younger generation of real estate agents sees the activities of the various associations as mundane and perhaps outdated. It is in these challenging situations that the need to communicate the effectiveness of the local, state and national Association of REALTORS® in dealing with problems affecting our industry and our economy becomes even more critical.
Every day, we as REALTORS® are faced with challenges to our business and industry. Government regulation, changing economics and competition from within create situations that need to be monitored and addressed. Associations can effectively assess and take on these issues, as the following examples show.
Initiative #109
Recently, the Colorado Trial Lawyers Association introduced several ballot initiatives that could have a dramatic impact on several business communities. Initiative #109 would mandate that real estate commissions be paid at governmentally-regulated levels. The proposed structure includes six percent commissions for properties under $250,000; three percent for homes between $250,001 and $499,999; and one percent for homes over $500,000. This initiative would create a situation in which both the consumer and the REALTOR® would lose.
Homeowners at the lower price levels would have paid more for the sale of their homes than those with more expensive properties. The initiative as proposed would have allowed hourly fees – but the negotiable commission as we know it would have disappeared.
The Colorado Association of REALTORS® conducted meetings with Trial Lawyers Association to discuss the concerns of the real estate community and impact to the consumer. Thanks in large part to the efforts of the CAR President Greg Zadel and CEO Bob Golden, this ballot item, and other initiatives that would have affected other businesses, was withdrawn.
Declining markets
Recently, due in large part to the foreclosure impact on our nation’s banking industry, Fannie Mae and Freddie Mac instituted the policy of declining markets. This rule allowed identified zip codes – or in some cases entire counties – to have additional down payment requirements placed upon homebuyers purchasing in an area listed as in decline.
Unfortunately, this policy, coupled with a tightening of credit, caused a dramatic decrease in the number of buyers qualifying for mortgages. With fewer purchasers buying the foreclosed properties, prices on homes began to drop even faster. A policy created to stem the tide of defaulted mortgages created problems as an unintended consequence.
Officials from the National Association of REALTORS® met with the directors of Fannie Mae and Freddie Mac and began a dialogue on changing this rule. NAR President-Elect Charles MacMillan received accolades for his personal efforts in obtaining the withdrawal of this policy. Fannie Mae announced May 19 the withdrawal of this policy and reaffirmed the return of three percent to five percent down payment programs.
Membership means power
The ability of our trade associations to address industry challenges far exceeds anything that a lone individual could hope to achieve.
As a member, you are part of the power that presses for change. Your voice is important, as is your contribution to the Political Survival Fund (PSF). PSF donations make the difference in the REALTOR® Associations’ – local, state and national – ability to work for continued improvement for the real estate industry.
Your Association’s responsiveness to the many challenges facing you as a REALTOR® on a daily basis is yet another member benefit that often goes forgotten.
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