Arcadia REALTOR Magazine - June 2014

ArcadiaREALTOR®The Official Publication of the Arcadia Association of REALTORS®

VOL. 18, NO. 6WWW.THEAAR.COMJUNE 2014

PROUDLY SERVING THE REALTORS® OF ARCADIA, BRADBURY, DUARTE, MONROVIA AND SIERRA MADRE

Ask an Attorney?See page 11

Did You Get to

The Shredwith

Street CredSee page 8

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Arcadia Association of REALTORS®601 South First Avenue

Arcadia, California 91006626.446.2115

626.446.4072 FAXwww.TheAAR.com

2014 ASSOCIATION OFFICERSMike Vachani {President}

Joe Pacilio {President-Elect}Roy Blume {Vice-President}

Sylvia Ramos {Secretary/Treasurer}

2014 ASSOCIATION DIRECTORSMicah Adams

Ryan AsaoAndy Bencosme

Kelvin ChangMargaret Garemore

John LeeMark Ramos

Dave ScarminachIrene Yamagata -Bermudez

2014 C.A.R. DIRECTORSRyan Asao

Andy BencosmeMargaret Garemore

Joe PacilioRandall Traw

Mike VachaniKelvin Wong

ARCADIA ASSOCIATION STAFF

Robin Allen Ext. 307 Director of Finance / Office Manager [email protected]

Michael Beltran Ext. 302 IT Director / Webmaster [email protected] Brenda Faltes Ext. 304 Director of MLS Data Integrity, Supra & Social Media [email protected] Jamie Hu Ext. 309 Administration [email protected]

Stephanie Maertens Ext. 303 Director of Education, Publications & MLS Caravan [email protected]

Maria Roberts Ext. 305 Director of Membership & Professional Standards [email protected] Jane Shriver Ext. 301 Director of Association Services [email protected]

Andrew Cooper Ext. 308 Chief Executive Officer [email protected]

{ Arcadia REALTOR® | June | Two Thousand and Fourteen | Volume Eighteen | Number Six}06.14

ArcadiaREALTOR®

June 2014

REGULAR FEATURES

4 Events Calendar

4 From the CEO’s Desk Andrew Cooper, Chief Executive Officer

5 Attorney Comments Dave Freeman, AAR Legal Counsel

6 Market Matters

9 Affiliate Corner “Where are All the Buyers?” Leslie Villavicencio, Great American Financial

10 Through the Lens A Look at What’s Happening Around the AAR

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ON THE COVER11 Ask an Attorney A recap of the attorney panel held at the Courtyard Marriott in Monrovia.

ADDITIONAL CONTENT3 AAR New Members The AAR welcomes its newest REALTOR® Members.

5 AAR Recieves Recognition AAR received recognition from the City of Monrovia City Council for sponsoring the Monrovia Community Easter Egg Hunt & Healthy Kids Day on April 19, 2014.

8 Tech / YPN Charity Poker Night A photo recap of the recent Tech / YPN Charity Event.

8 Paper Shreading Day A photo recap of the recent AAR Papershred Day.

Arcadia REALTOR® Magazine3

AAR New MembersThe Arcadia Association of REALTORS® would like to formally welcome our newest REALTOR® members!

AAR new members with Membership Committee Vice-Chairman, Cindy Shiao; Committee Chairman, Alma Aguilar and 2014 President, Mike Vachani are (in no particular order): Vivek Anand, Coldwell Banker Dynasty, T.C.; Augustine Avila, Coldwell Banker, Arcadia; Honghua L. Borja, IRN Realty; Amy Buckner, Podley Properties; Danielle Chen, IRN Realty; Jianmiao Chen, Highland Real Estate; Annie Chou, Re/Max Omega; Yanping Ding, Re/Max Omega; Tina C. Fan, Long Dragon Realty Group, Inc.; Leah L. Fulton, Dilbeck Real Estate; Carmen O. Garcia, Coldwell Banker Dynasty, T.C.; Xiuyun Guan, Highland Real Estate; Diana C. Hua, Century 21 West Coast Brokers; Shiao B. Huang, TNG Real Estate Consultants; Michelle Y. Hung, Coldwell Banker Dynasty, T.C.; Bonnie A. Joung, Keller Williams West Foothills; Timothy S. Komlos, Coldwell Banker, Arcadia; Ping Kuo, Highland Real Estate; Minh V. Lac, Podley Properties; Peixin Li, IRN Realty; Xiaoyan Li, TNG Real Estate Consultants; Kim Lim, Century 21 Ludecke Inc.; Wenbo Lu, Coldwell Banker George; Clemen Mendoza, Maryam Mosallaie, Coldwell Banker George; VasTree Real Estate; Catherine Ngan, Poly Grand LLC; Richard Ni, Re/Max Advanced Realty; Mary Jane Rodriguez, Re/Max 6000 Realty; Dongqing Wang, Long Dragon Realty Group, Inc.; Sherry Y. Wang, Keller Williams Realty; Yingying Wang, Coldwell Banker George; Guo Y. Wong, Coldwell Banker Dynasty, Arcadia; Chunmei Yang, C.B. Investment & Funding; Simon Yang, Coldwell Banker Dynasty, T.C.; Yu Yang, Highland Real Estate; Xiaoping Yu, Highland Real Estate; Yi Z. Zhang, Treeline Realty & Investment; Yue Zhang, Paradise R.E. Investment and Xing M. Zheng, Highland Real Estate.

Smokin’ Jack IIAAR Events 4 Charity presents:

Thursday, July 24, 20145:30 p.m. - 9:30 p.m.

Matt Denny’s Ale House Restaurant145 Huntington Dr, Arcadia, CA 91006

www.TheAAR.com ~ 601 S. First Ave. Arcadia, CA 91006 ~ 626-446-2115

Includes: •All-you-can-eatappetizers •3Whiskey“Tastings” •1Drinkticketforany drinkofyourchoice

$40

Tickets available at the AAR Building or Online100% of the event profits will go to Charity

Aseparate&outdoorcigarsmokingareawillbeavailable.Bothcigarsmokers&non-smokerscanenjoytheevent!

Charity Cigar & Whiskey Tasting Night

Everyone is Welcome

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FROM THE CEO’S DESK

Sandbox Rules 101

I was watching my 3 year old son play in his sandbox the other day. When my wife or I went over to play with him he welcomed us in with a big smile and a toy to play with. By

contrast I remember a time when a neighbor’s child was playing with our son and that child wasn’t being particularly nice that day. As a result, my son’s body language indicated he was very reluctant to let him in the sandbox to play.

This little story correlates with how so many wildly successful people conduct their business practices. If they cannot trust the people with whom they are doing business or if they are negative and pessimistic, they simply won’t spend even a minute with them.

So who do you allow into your sandbox? Are you surrounding yourself with people of integrity, character and high ethical standards? Are you associating with highly infectious, positive people? As REALTORS® we’re obligated to follow the REALTOR® Code of Ethics in our business dealings, but what if we do the same with the people in our personal lives as well?

Some people may argue that in business you have to deal with people that you don›t enjoy being around or who are negative because of the personal contacts they may have. I disagree. We have a choice with whom we associate and there are hundreds of thousands of examples of people who become successful on their own terms.

After taking a long, hard look at who is presently in your sandbox, ask yourself these questions: Are they the kind of people you really want to be associated with? Who would you most like to be in your sandbox and who would you most like to be out of it? Lastly, what (or who) is keeping you from making those changes?

There are so many really good, honest, positive and supportive people that I would rather choose to associate with and who are likewise happy to associate with me. It’s a mutual admiration society which can work miracles in your personal life if you so allow it. I’m a firm believer in the more you intentionally choose who you spend your time with, the more enjoyable your life will become.

Legendary sportscaster Charlie Jones summarized it best, “In five years you will be the same person you are today with the exception of the books you read and the people you hang out with.”

I hope the next sandcastle you build in your sandbox is the biggest and best one ever.

M 2 9:00 a.m. - 10:30 p.m. - “Advanced Technologies”

T 3 10:00 a.m. - 12:00 p.m. - zipForm Plus Training 11:00 a.m. - Global Real Estate Committee Mtg.

W 4 8:00 a.m. - Special Membership Meeting 8:30 a.m. - MLS Caravan 10:30 a.m. - Events 4 Charity Auxiliary Mtg.

Th 5 9:30 a.m. - Commercial / Investment Committee Mtg. 11:00 a.m. - Commercial Education & Networking Session

F 6 12:00 p.m. - 1:30 p.m. - AAR Speech Masters

M 9 10:00 a.m. - 2:00 p.m. - CRMLS Training

T 10 9:00 a.m. - 11:00 p.m. - “Maximizing Your Deductions” 11:00 a.m. - Tech / YPN Committee Mtg.

W 11 8:30 a.m. - MLS Caravan 8:45 a.m. - Affiliate Committee Mtg. 9:30 a.m. - MLS Committee Mtg.

T 12 10:00 a.m. - 12:00 p.m. - “Listing Hub” Training 1:00 p.m. - 2:00 p.m. - Cloud CMA

F 13 1:00 p.m. - 3:00 p.m. - “Dealing with Unpermitted Construction”

T 17 2:00 p.m. - Education Committee Mtg.

W 18 8:30 a.m. - MLS Caravan 9:30 a.m. - Equal / Housing Opportunity & Public Relations Committee Mtg. 1:30 p.m. - Local Governmental Relations Committee Mtg.

Th 19 11:00 a.m. - 12:00 p.m. - Lunch & Learn Series Class 2:00 p.m. - 4:00 p.m. - “Earthquake 7.0”

F 20 12:00 p.m. - 1:30 p.m. - AAR Speech Masters

T 24 9:00 a.m. - 11:00 a.m. - “How to Invest in Real Estate with IRA Funds” 1:30 p.m. - Budget and Finance Committee Mtg. W 25 8:30 a.m. - MLS Caravan

F 27 8:30 a.m. - Board of Directors Mtg. 6:00 p.m. - 9:00 p.m. - E4C Red, White & Bingo

June 2014

June Events

Andrew CooperChief Executive Officer

AttorneyComments

By Dave Freeman, Association Counsel

June 2014

TRANSFER DISCLOSURE STATEMENT: The new document at Paragraph 16 contains a great deal of confusing language and terminology. There are several references to Section 900, 903, 910, and 914, with no explanation of what these sections mean, nor what they are sections of. As crazy as this sounds, the reason CAR included this language, is because our beloved legislators passed a law that requires it be quoted exactly this way. To clarify the language: The sections refer to the California Civil Code, which can be found online (and will bore you to sleep). Basically, this paragraph in the TDS states that the Seller must disclose any construction defect suit or similar action regarding deficiencies in the property, by or against the Seller, or by or against the Home Owners Association.

DUAL AGENCY: Once again

the courts have expressed their displeasure with dual agency. It does remain legal and proper. Just don’t have a client complain or file suit claiming improper representation. In the Horiike case, regarding a 15,000 square-foot property in Malibu that sold for $12 million, the Buyer, who spoke no English but hired an agent who spoke Japanese and got the plans and permits regarding the property, sued the LISTING AGENT and broker for discrepancies in the property. Though the jury found for the Broker Defendant, the appellate court reversed, saying there could be breach of the fiduciary duty to the Buyer, as the listing agent and the selling agent were in the same office. Similar cases have gone the other way, but it is extremely expensive to have to contest this issue. Best solution (though not always practical) is to be sure that

listing and selling agents are from different brokerages. (In this case, the Buyer did not sue the selling agent.)

NON-REFUNDABLE DEPOSITS: Often, the seller insists on a release of, or a non-refundable deposit. The Liquidated Damages clause is another provision mandated by the Legislature and has the full force of law. To vary from it, or to make a deposit non-refundable, requires some separate consideration. That is, if the Seller wishes to retain the deposit if the Buyer fails to complete the transaction, the Buyer must receive something in return. Language should be included, for instance that the Seller would suffer unusual damages as a result of the failure to close, and that the deposit is a fair compensation for those spelled-out damages. Give the court a reason to feel that this was a bargained for trade.

Arcadia REALTOR® Magazine5

AAR received recognition from the City of Monrovia City Council for sponsoring the Monrovia Community Easter Egg Hunt & Healthy Kids Day on April 19, 2014.

(L to R): Councilmember Larry Spicer, AAR 2014 President Mike Vachani, Councilmember & AAR Broker Tom Adams, AAR CEO Andrew Cooper, Mayor Maryann Lutz, Mayor Pro Tem Becky Shevlin and Councilmember Alex Blackburn

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MarketMatters

Market Statistics for the San Gabriel ValleySingle Family Homes Condominiums SFR Only

City Zip Code

Sales of Single Family

HomesPrice Median SFR ($1,000)

Price % Chg from April 2013

Sales Count

Condos

Price Median Condo

($1,000)

Price & Chg from April 2013

Median Home Price/

Sq. Ft.Alhambra 91801 18 $581 38.3% 13 $468 26.8% $425Alhambra 91803 10 $480 -2.1% 4 $374 6.8% $418Altadena 91001 33 $550 -3.9% 2 $900 167.7% $364Arcadia 91006 25 $1,525 60.5% 6 $715 32.3% $557Arcadia 91007 20 $1,150 9.4% 9 $498 6.0% $634Azusa 91702 22 $337 5.1% 11 $278 23.6% $267Duarte 91010 14 $369 23.0% 11 $310 -1.0% $338El Monte 91731 6 $380 9.5% 2 $319 60.3% $288El Monte 91732 10 $390 11.1% 8 $340 5.4% $334El Monte - South 91733 5 $311 13.1% n/a n/a n/a $353Glendora 91740 16 $415 15.0% 2 $379 49.3% $310Glendora 91741 20 $535 19.6% 1 $350 4.5% $331La Cañada Flintridge 91011 27 $1,230 6.8% 1 $823 11.2% $612La Verne 91750 21 $660 51.7% 5 $431 72.2% $314Monrovia 91016 27 $565 27.8% 12 $453 30.2% $405Pasadena 91101 n/a n/a n/a 17 $385 -14.4% n/aPasadena 91103 7 $773 95.6% 3 $430 -10.4% $577Pasadena 91104 26 $554 -3.2% 1 $260 n/a $409Pasadena 91105 15 $1,335 23.0% 7 $678 1.2% $603Pasadena 91106 8 $807 -44.9% 18 $425 -4.1% $548Pasadena 91107 31 $825 14.7% 9 $512 -4.8% $483Rosemead 91770 23 $460 -0.5% 2 $376 14.7% $341San Gabriel 91775 19 $700 14.5% 1 $470 n/a $434San Gabriel 91776 10 $533 9.1% 1 $540 45.9% $375San Marino 91108 15 $2,159 14.7% n/a n/a n/a $855Sierra Mdre 91024 9 $827 -17.2% 1 $535 -17.5% $419Temple City 91780 26 $628 -0.9% 4 $429 -23.3% $488

Source: DQNews.com

April 2014

June 2014

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June 20148

Tech / YPN Charity Poker Tournament

AAR PAPERSHREDDING DAY

Monday, May 19, 2014

Sponsored by:Over $1,900 Raised for Local Charities!

Sponsored by:

Affiliate Corner“Where are All the Buyers?”

By Leslie Villavicencio, Great American Financial

In April 2014, the LA Times reported that a national research study found that consumers overwhelmingly believe they cannot qualify for a home loan in today’s market. The study cited that many people feel intimated by the “fear of the home-loan unknown.”

The study also reported that:

•56%ofpotentialhomepurchaserssaythey’re out of the market because they don’t want to face the possibility of rejection by lenders. •74%ofpotentialbuyerswhowouldneeda mortgage concede that they have not scoped out the current market or taken the steps needed to qualify. •Manypotentialbuyersbelievethattheyneed near-perfect credit scores to get a home loan. •Debttoincomeratio(seemed)another insurmountable obstacle in many potential buyers’ eyes - enough so that they don’t even try to obtain a mortgage.

The truth is that the current lending environment offers significant choices, flexibility and loosening of underwriting standards which can actually benefit consumers. REALTORS® can do their clients a huge service by explaining that getting a home loan is highly likely in today’s mortgage market.

The key is to work with a mortgage expert that gets to know the client and carefully understands their situation and qualifications. Getting a home loan is a highly PERSONALIZED process and depends on the client’s specific income, credit, assets, reserves and debt, etc.

A client’s fears can be eased by a mortgage expert who works to put together the pieces of the puzzle in order to provide him/her with customized home loan options. This

requires collecting accurate supporting documentation and maintaining open communication. If in case a client does not immediately qualify for financing, a mortgage expert is the crucial partner that helps outline the necessary steps needed to be able to qualify for financing in the near future.

Today’s lending market is evolving and continues to provide offerings to meet consumer needs. Some of these include: •Financingforthosewithlowercreditscores •Limiteddownpaymentrequirements(aslittleas 0.5%) - Lender Paid mortgage insurance (wrap the cost of mortgage insurance into the interest rate to be tax deductible) - Piggyback loans - 1st and 2nd loans secured concurrently to avoid mortgage insurance all together •DownPaymentAssistanceprograms •GovernmentFinancing(FHA,VA,USDA) •ConventionalandHighBalance •JumboLoans;greaterthan$625,500inLACounty •Alternativedocumentationforwage-earnerswith high 2106 expenses and self-employed borrowers •ForeignNationalFinancing •EnergyEfficiencyHomeLoans •Andlast,thisfinancingcanbefoundineither fixed rates, adjustable rates, or interest only rates

REALTORS® have an opportunity to inform, educate and empower their clients about the home loan process in order to facilitate their next purchase and provide them with a satisfying experience, while insuring their own success and productivity.

Leslie Villavicencio and Wendy Silva are Loan Officers from the Silva-Villa Team at Great American Financial - A Mortgage Broker. Find out more at www.silva-villa.com or contact us at Wendy (818) 522-6644 or Leslie (626) 975-4010.

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A Look at What’s Happening Around the AARthroughthe lens

10June 2014

Discover Global Event | May 8, 2014 | Diamond Bar, CA

Taste of Duarte | May 21, 2014 | Duarte, CA

“Incorporating for Real Estate Agents”

AAR Speech Masters

11Arcadia REALTOR® Magazine

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“ASK AN ATTORNEY”Saturday, May 17, 2014 | Courtyard Marriott, Monrovia

“Incorporating for Real Estate Agents”

The AAR held its first Annual “Ask an Attorney” event on Saturday, May 17, 2014. A packed-house got to listen to four attorneys speak on their legal specialty and then had the opportunity to ask questions. This event was brought to you by the Education Committee of the AAR. The attorneys include: David D. Fu, Scott B. Mahler, Greg C. Pyfrom and Romy S. Rahmanian. Special thanks to event chair April Kass of La Rocca Inspections and Education Committee Chair Julie Bencosme of Dilbeck Real Estate for coordinating such a worthwhile event and our Master ofCeremonies,AndyBencosme,Century21Village.Additionalthanks go to our generous sponsors: Stephanie LaPorte, Old RepublicHomeProtection;AprilKass,LaRoccaInspectionsandJason Landes, RPM Mortgage. (L to R): Education Committee Chair Julie Bencosme,

Scott B. Mahler, Attorney; Cecil Griffin; April Kass, La Rocca Inspections; Greg C. Pyfrom, Attorney; Jason Landes, RPM Mortgage; David D. Fu, Attorney; Stephanie LaPorte, Old Republic Home Protection; Romy S. Rahmanian, Attorney and Andy Bencosme.

Sponsored by:

Jason Landes, RPM Mortgage

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www.DownstreamExchange.com

909 East Green Street, Pasadena CA 91106-2930

Phone: (800) 743-1031Fax: (626) 796-8222

C. Anthony Phillips, CPA President

We Provide A Complete Service To Successfully Accomplish Tax Deferred Exchanges

®

Pre-Exchange Tax Planning

Accommodation of Tax Deferred Exchange

Post Exchange Tax Planning

Call for your free Exchange Tax Analysis

Arcadia Association of REALTORS®601 South First AvenueArcadia, California 91006

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• Estate Planning• Trust Administration• Probate• Business Law• Commercial Transactions• Corporation, LLC & Partnership Formations• Business Contracts

Romy S. Rahmanian, Attorney

(626) 869-878733 East Huntington Drive • Arcadia, CA 91006

Call today for a free consultation

(626) 869-8787(626) 869-8787

[email protected] • www.RahmanianLaw.com

Dedicated to Providing High Quality Legal Services

(626) 869-8787

Call today for a free consultation

33 East Huntington Drive • Arcadia, CA [email protected] • www.RahmanianLaw.com

GREAT BINGO RAFFLE PRIZES & MORE!

RED, WHITE

& BINGO!

Arcadia Community Center; 365 Campus Dr. Arcadia, CA 91006

Friday, June 27 ~ 6:00 p.m.

The Arcadia Association of REALTORS® Events 4 Charity presents...

PURCHASE TICKETS AT THE AAR BUILDING

www.TheAAR.com ~ 601 S. First Ave. Arcadia, CA 91006 ~ 626-446-2115 ~ Fx. 626-446-4072

OR ONLINE @ WWW.THEAAR.COM

FREE

SPACETicket Includes:

- 1 Bingo Card

- Ticket for 1 Habit Burger, Fries & Beverage!

Advance Ticket Purchase

Adults: $20

Children (15 and under): $15

Tickets at the Door

Adults: $25

Children (15 and under): $20