Illinois REALTOR®, January 2015 by Illinois REALTORS®

JANUARY 2015

THE VOICE FOR REAL ESTATE IN ILLINOIS

2015 IAR President

JIM KINNEY

Taking a

BROAD VIEW

Time Management Tips to Rev Up Performance

of the World and the Real Estate Industry

REALTORS速 Share Goal-Setting Victories

www.illinoisrealtor.org

+ PLUS

Are You Making These Common Advertising Mistakes? List of Ethics Hearings Debuts

THE OFFICIAL PUBLICATION OF THE ILLINOIS ASSOCIATION OF REALTORS速

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CONTENTS JANUARY 2015

Departments 4 President’s Message: Being a REALTOR® Means Something 5 What’s Online: 2015 IAR Leadership Directory, Illinois Housing Report Videos 6 Quick Takes: Today’s Buyers and Sellers, Election Scorecard 8 At the Capitol: Notable New Laws for 2015 9 RVOICE: Looking Out for Commercial Real Estate 10 Legal Update: Hot Topics from the IAR Legal Hotline 14 Ethics Hearings 33 Market Watch: What Will the Market Look Like in 2015? 34 REALTOR® Community: IAR Earns RPAC Triple Crown Award; REALTORS® in New Orleans

Kinney photos credit: Michael Hudson

ILLINOIS ASSOCIATION OF REALTORS®

THE VOICE FOR REAL ESTATE IN ILLINOIS

Features Re Ear gi ly Ap str Bir ril atio d 15 n

12 15 19 21

www.illinoisrealtor.org/springconference

Professional Standards: Are You Making These Common Advertising Mistakes? Meet 2015 IAR President Jim Kinney REALTORS® Share Goal-Setting Victories Get More Out of Your Day: Accomplish More with These Time Management Tips Illinois GRI Celebrates 50th Anniversary

ILLINOIS REALTOR® January 2015

PRESIDENT’S MESSAGE Jim Kinney | ABR, CRB, CRS, GRI, 2015 IAR President

ETHICS HOTLINE BEGINS TAKING CALLS IAR launches effort to educate members on professional standards

he REALTOR® name is only as good as those who stand behind it. The brand means IAR’s members do business the right way, follow ethical guidelines and make sure that clients get the best possible service. The Illinois Association of REALTORS® recently approved a measure that calls for the creation of an Ethics Citation Program which is further discussed in this issue (page 12). As part of the move, citations for failure to follow the Code of Ethics will also be published in future issues of Illinois REALTOR® magazine and on IAR’s members’only section of the website. Since its inception in Fall 2014, the association’s Ethics Citation Program has handled 13 complaints through its hotline, and a panel which reviews the cases has issued citations totaling $2,000. Also at the September meeting of the Board of Directors, they approved publishing a summary of ethics hearings held throughout the state (page 14). The association also committed to creating a toolkit for brokers to learn more about avoiding violations of the Code of Ethics. After all, education is the key to ensuring IAR’s members understand industry best practices. Being a REALTOR® means something. Making sure IAR’s members adhere to the highest standards of conduct guarantees the REALTOR® brand will always stand for the best of the best in the real estate profession.

ETHICS CITATIONS PROGRAM Illinois REALTORS® operate under the REALTOR® Code of Ethics which outlines standards of professional practice. If a dispute arises with a REALTOR® regarding several provisions of the Code, complaints may be filed for review by a panel of IAR members which specializes in ethical standards. The complaints, which can be filed anonymously, can come from REALTORS® or REALTORS®’ clients.

How It Works If a filing is found to meet the program’s standards, a Citation Panel will review the case. If the Citation Panel believes a violation has occurred, a citation will be issued to the Respondent, along with a set fine. The Respondent has the opportunity to pay the fine within 30 days or request a hearing before an Ethics Hearing Panel. Fines range from $250 to $1,000, depending on the nature and severity of the violation. If a hearing is requested by the Respondent, the complaint will be sent to the Grievance Committee for review.

There are two ways to file a complaint: 1.

Fill out an online form. It will be reviewed typically within one business day. Find the form at www.illinoisrealtor.org/citationform.

Call IAR: The Ethics Citation Hotline can be reached at 217-529-2600 from 8:30 a.m. to 4:30 p.m. Monday through Friday. (Closed major holidays)

Best regards,

“Being a REALTOR means something.” —Jim Kinney ®

4 www.illinoisrealtor.org

Read IAR’s FAQ on the service at www.illinoisrealtor.org/Ethics-FAQ Learn more about the Ethics Citation Program at www.illinoisrealtor.org/disputes

ILLINOIS ASSOCIATION OF REALTORS® THE VOICE FOR REAL ESTATE IN ILLINOIS

WHAT’S ONLINE

2015 IAR OFFICERS President Jim Kinney, ABR, CRB, CRS, GRI jim.kinney@bairdwarner.com President-Elect Mike Drews mdrews@dossrealtors.com Treasurer Doug Carpenter, ABR, AHWD, SFR doug21@comcast.net Immediate Past President Phil Chiles, ABR, CRS, GRI, SRES pchiles@thegroup.com Chief Executive Officer Gary Clayton, CAE, RCE Editor Jon Broadbooks Senior Editor Stephanie Sievers Content Marketing Specialist Bill Kozar Graphic Designer Katie Grant For advertising information contact Arlene Braithwaite, 410-772-0820, arlenetbg@comcast.net The ILLINOIS REALTOR® (ISSN 0744-221) is published four times a year during the months of January, April, July, and October by the Illinois Association of R EALTORS®, Post Office Box 19451, Springfield, Illinois 62794-9451. Periodical postage paid at Springfield, Illinois and at additional mailing offices. Postmaster: Send address changes to: The ILLINOIS REALTOR®, Post Office Box 19451, Springfield, Illinois 62794-9451, 217/529-2600. Opinions expressed in any signed articles of the ILLINOIS REALTOR® are those of the author and do not necessarily represent the opinions of the Illinois A ssociation of REALTORS ®. Advertising of product or services does not imply endorsement. Advertising rates are available at www.illinoisrealtor.org or on request. Annual dues of every REALTOR®, REALTORASSOCIATE®, and Affiliate member of IAR includes $3 for a one-year subscription to the ILLINOIS REALTOR®.

Like us on Facebook. Join us on LinkedIn. Follow @ILREALTOR and @ILREALTORmag on Twitter. Subscribe to YouTube.com/illinoisrealtor

2015 IAR LEADERSHIP DIRECTORY

Find an updated directory of 2015 IAR committee members, committee guidelines, leadership forms and more with IAR’s Leadership Directory now available online at www.illinoisrealtor. org/leadership. www.illinoisrealtor.org/leadership

WHAT TO WATCH: ILLINOIS HOUSING REPORT VIDEOS www.youtube.com/ illinoisrealtor Gain greater insight into the economic trends shaping the Illinois housing market by watching monthly in-depth videos with Dr. Geoffrey J.D. Hewings, director of the Regional Economics Applications Laboratory of the University of Illinois.

NEW YEAR BRINGS NEW FORM Effective Jan. 1, 2015 the revised Residential Real Property Disclosure Report form (#108) must be used. The revised “seller disclosure” form includes windows and doors in the section related to material defects in walls and floors. www.illinoisrealtor.org/ downloads Download the most upto-date forms, brochures, manuals and guides FREE for members

ILLINOIS REALTOR® DIGITAL VERSION Read Illinois REALTOR® “on the go” with our digital version. In addition to the print edition that you receive as a member of IAR, the latest issues of Illinois REALTOR® are also available in a digital flipbook format. Find it at www. illinoisrealtor.org/ magflipbook

ILLINOIS REALTOR® January 2015

QUICK TAKES Who are Today’s Buyers and Sellers? Homebuyer and seller demographics are changing. The share of first-time buyers in the market is at its lowest in nearly 30 years and 13 percent of buyers purchased multigenerational homes. Learn more about how buyers and sellers are shaping the market with NAR’s 2014 Profile of Home Buyers and Sellers, www.realtor.org/topics/profile-of-home-buyers-and-sellers. Highlights include:

10 10

13%

13 percent of buyers purchased multigenerational homes.

First-time buyers accounted for 33 percent of recent home buyers, the lowest share since 1987.

WEEKS

92 percent of buyers used the Internet during their home search.

The typical buyer viewed 10 homes and searched for 10 weeks, two weeks less than last year.

Sixty-five percent of buyers were married; 16 percent were single women; 9 percent were single men; and 8 percent were unmarried couples.

Sellers are staying in their homes longer. The typical tenure is 10 years compared to six years in 2007. (Source: 2014 Profile of Home Buyers and Sellers)

IAR Housing Data Now Available in Spanish Precio Medio de Venta

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The IAR monthly and quarterly housing reports for the state of Illinois, Chicago PMSA and the city of Chicago are now available in Spanish. Find the translated reports and market infographics at IAR Market Stats, www.illinoisrealtor.org/ marketstats

Rules Approved; Fracking Can Begin in Illinois A state legislative panel has approved rules regulating the practice of hydraulic fracturing or “fracking” in Illinois, allowing energy companies to obtain permits for the practice extracting natural gas and oil from underground rock formations.

83 PERCENT OF OPPORTUNITY RACE CANDIDATES WIN; 100 PERCENT REFERENDA SUCCESS RATE

32%

Not only do Illinois REALTORS® vote, but they make a real difference in electing pro-REALTOR® candidates and defeating local initiatives, such as Home Rule, which can be harmful to housing and private property owners. In the 2014 Illinois General Election in November, IAR RPAC Trustees identified 12 “Opportunity Races” for the Illinois General Assembly and 10 REALTOR®-backed candidates won election (an 83 percent success rate). Opportunity Race candidates were in tough races and are supportive of the issues important to REALTORS® and their businesses. For more in-deph results: www.illinoisrealtor.org/node/3650

living with a roommate in 2012

26%

living with a roommate in 2000

The Roommate Effect on Households

WON

LOST ILLINOIS HOUSE REP. MICHAEL MCAULIFFE (R) 20th District

More adults are choosing to live with roommates. That can put a damper on the housing market recovery as fewer new households are formed. The number of people living with a roommate rose to 32 percent in 2012 compared to 26 percent in 2000. That equates to a loss of 5 million new households during that time, according to U.S. Census data.

CANDIDATE MARGO MCDERMED (R) 37th District REP. ANNA MOELLER (D) 43rd District REP. SHERI JESIEL (R) 61st District REP. AND REALTOR® SAM YINGLING (D) 62nd District REP. JOHN ANTHONY (R) 75th District REP. MIKE UNES (R) 91st District CANDIDATE AND REALTOR® MARK BATINICK (R) 97th District CANDIDATE KRISTIN WILLIAMSON (R) 103rd District REP. DWIGHT KAY (R) 112th District

ILLINOIS SENATE

Illinois makes top 10 list for highest property taxes With a median

real estate

tax of $3,939,

Illinois ranks sixth when it comes to states with the highest property tax bills, according to the U.S. Census Bureau’s 2013 American Community Survey. New Jersey still ranks the highest in the country with median real estate taxes of $7,331.

SEN. MIKE JACOBS (D) 36th District SEN. ANDY MANAR (D) 48th District LOCAL REFERENDA AND RACES

YES

HOME RULE POWERS CRESTWOOD (Mainstreet Organization of REALTORS® opposed) MATTESON (Mainstreet Organization of REALTORS® opposed) LYNWOOD (Mainstreet Organization of REALTORS® opposed) LAKE ZURICH (Mainstreet Organization of REALTORS® opposed) BARRINGTON (North Shore-Barrington Association of REALTORS® opposed)

ILLINOIS REALTOR® January 2015

AT THE CAPITOL Julie Sullivan | Assistant Director, Legislative and Political Affairs

NOTABLE NEW LAWS FOR THE NEW YEAR For your new year checklist, be aware of these new state laws going into effect in 2015. •

RELA Changes: (SB 3044) was an IAR initiative and received unanimous approval in both chambers of the Illinois General Assembly in the 2014 spring session. The law changes the Real Estate License Act regarding the regulation of real estate brokers who do a Broker Price Opinion (BPO) and/or a Comparative Market Analysis (CMA) and the extent to which those activities may be regulated by or exempt from the Real Estate Appraisal Licensing Act. See the October edition of Illinois REALTOR® magazine for a Q&A on the changes online at www.illinoisrealtor. org/node/3662. Public Act 98-1109

•

Got Forms? Be sure to check your supply of Residential Real Property Disclosure Report forms. Under (SB 2597), item #6 in the “seller disclosure” form (related to material defects in walls and floors) now specifically includes windows and doors. The legislature made changes as a result of a recent appellate court case. Effective Jan. 1, 2015 the revised forms must be used. Public Act 98-754

•

Protection from Patent Trolls: (SB 3405) was enacted on the state level to protect real estate licensees targeted by “patent trolls.” This is a practice where companies claim patent infringement based on the use of certain technologies such as multifunction copiers. Real estate professionals have been targets of this deceptive practice. The new law declares this practice to be unlawful under the Consumer Fraud and Deceptive Business Practices Act. Public Act 981119

•

Housing Incentives: (SB 336), Illinois Housing Development Authority initiative supported by IAR, will provide tools to local governments throughout the state to get vacant homes back on the tax rolls.

The calendar for the 2015 spring session of the General Assembly is now available www.ilga.gov

8 www.illinoisrealtor.org

This property tax assessment freeze will provide incentive to home buyers OR investors to undertake costly rehabilitation efforts in targeted areas. Public Act 98-789 •

Funding Options: (SB 498) will allow local economic development authorities to undertake and fund (through bonds) housing or residential projects as part of their powers. Public Act 98-750

•

Lead Paint Updates: (HB 5410) amends the Lead Poisoning Prevention Act to make various changes, suggested or required, to be made in order for the state to remain eligible for federal assistance in enforcing the law pursuant to federal guidelines. Public Act 98-960

•

Disaster Recovery: Looking ahead to Illinois’ spring and summer tornado season, it is important to remember that residential and commercial properties are eligible for property tax relief as owners rebuild. The 2014 Public Act 98-702 added a section to the Illinois Property Tax Code providing tax breaks for qualified commercial and industrial properties that need to be rebuilt following a tornado. The 2012 Public Act 97-716 created the Natural Disaster Homestead Exemption. This allows an additional exemption for a residential structure that is rebuilt following a natural disaster (fire, flood, earthquake, wind, storm or severe inclement weather).

•

Agency Reorganization: The new year will bring additional refinement to the Illinois Department of Financial and Professional Regulation’s (IDFPR) Division of Real Estate. This new division was created by gubernatorial Executive Order in early 2014 with IAR’s enthusiastic support and we believe the reorganized IDFPR ensures a diligent, fair, efficient and responsive real estate enforcement division.

Jan. 19-22

IAR Public Policy Meetings, Embassy Suites, East Peoria

June 15-16

IAR Business Meetings, Springfield

April 14

Capitol Conference, Springfield

Oct. 5-6

IAR Business Meetings, Oak Brook Hills

Mike Scobey |

Assistant Director, Advocacy and Local Issues

LOOKING OUT FOR COMMERCIAL REAL ESTATE REALTORS® have always understood that in order to have a healthy housing market, commercial real estate must also be strong. Conversely, a robust residential market spurs economic growth which helps commercial real estate. A National Association of REALTORS® study found that one job is generated or supported for every two home sales. At the national, state and local levels, REALTORS® have always been vigilant in opposing legislation which adds burdens and costs to the business of selling and leasing commercial real estate. Because of the strength of the Illinois Association of REALTORS® (IAR), these legislative proposals in Illinois were recently STOPPED: 33 A bill to require commercial Brokers to disclose their compensation to prospective tenants before a lease is signed. 33 A bill to impose limits on the amount of retainage (money held back until completion of services) in construction on commercial real estate. 33 A bill to extend “criminal housing management” provisions of current state law to non-residential properties. These provisions would add new and unnecessary liabilities to brokerage activities. 33 A proposed commercial “lease tax” in Chicago and Deerfield. 33 A bill to require at least 15 percent masonry components in new commercial construction. 33 Numerous transfer tax proposals and excessive sprinkler requirements (on commercial building owners) at the state and local levels.

33 A Stormwater Management Ordinance (affecting suburban Cook County) provides some flexibility in stormwater detention for owners of non-residential properties who choose to re-develop.

REALTORS® CAN KEEP AN EYE ON ALL LOCAL ISSUES WITH SKYLIGHTS

Skylights is a one-stop location on IAR’s website where you can learn about real property issues that affect your livelihood. You can log into Skylights through IAR’s homepage—www.illinoisrealtor.org— or at www.ilskylights.com by entering your NRDS number. There you will you find a wealth of information about REALTOR® advocacy efforts in your geographic area. You can also find your legislative districts.

RVOICE SUCCESS IN LOCAL ISSUE BALLOT

Illinois REALTORS® went to the polls in the November election and helped defeat Home Rule questions in five municipalities. IAR and local associations often oppose Home Rule referenda because of the significant powers granted which can affect real estate transfers and real estate ownership and management. The RVOICE Program funded mail pieces to voters and homeowners informing them about the implications of Home Rule powers. RVOICE also supported efforts on school funding measures in Rockford and Morgan County (Jacksonville area), both of which were approved by voters.

IAR has also secured passage of legislation which helps commercial real estate and commercial practitioners: 33 REALTORS® can provide customers with a basic market analysis or BPO as part of the normal course of handling real estate transactions. 33 Another 2014 bill will provide for property tax breaks on non-residential properties that are damaged or destroyed by tornadoes.

ILLINOIS REALTOR® January 2015

LEGAL UPDATE Elizabeth A. (Betsy) Urbance | IAR Legal Hotline Attorney; Associate, Sorling Northrup Attorneys

HOT TOPICS FROM THE IAR LEGAL HOTLINE IN 2014 #1 - SCOPE OF REAL ESTATE LICENSE

requires REALTORS® to divulge the existence of offers on the property so long as the seller approves. The general rule for the listing agent is to follow the direction of the seller client. It is helpful to document seller’s direction.

Q Is it legal for me to pay a referral fee to an

unlicensed person for referring my services to a seller or buyer of real estate? A No. Generally speaking, you may not pay anything of value to an unlicensed person in exchange for referring real estate brokerage business to you. You are licensed and the Illinois Real Estate License Act applies to you. Section 10-15(a) says that “no compensation may be paid to any unlicensed person in exchange for the person performing licensed activities in violation of this Act.” If you look at Section 1-10 of the Act under the definition of Broker, you will see that if a person assists in “procuring or referring of leads or prospects, intended to result in the sale, exchange, lease, or rental of real estate” for another and for compensation, that person needs a real estate license. If you pay compensation in violation of Section 10-15 of the Act, your license is subject to discipline. Thus, a real estate licensee may not pay an unlicensed person (who is not a party to the transaction) anything of value in exchange for a real estate referral.

#2 - PURCHASE CONTRACT QUESTIONS Q How should I handle multiple offer presentations,

and how can I be sure my offer is presented if I am the buyer’s agent? A The Act and the REALTOR® Code of Ethics (the Code) require licensees to present all offers as soon as practicable, unless the seller waives the right to see each offer. •

There is no legal requirement that an agent present offers in the order in which they were received. However, offers must be presented in a manner that is in the seller-client’s best interest, not necessarily that of the agent.

•

If possible, it might be best for the listing agent to present all offers at the same time.

•

There is no legal requirement that the agent disclose to all other buyers that there are other offers. The agent should check office policy as well as consult with the seller whether or not to disclose this fact to all buyers. There is language in the Code at Standard of Practice 1-15 that

10 www.illinoisrealtor.org

•

After considering all terms of each offer, it is ultimately the seller’s decision, which, if any, to reject, counter or accept. If a seller client wants to counter more than one offer at a time, recommend that the seller consult legal counsel. This could become quite complicated if more than one buyer delivers their acceptances to the counters at the same time.

•

With regard to assuring the offer is presented, the model Multiple Listing Service (MLS) rules give the buyer’s agent the right to attend the presentation of the buyer client’s offer unless the seller objects in writing. The buyer’s agent may then ask to see a copy of the seller’s written objection. The buyer’s agent does not have the right to be present during any discussions about the offer on the table. (Check local MLS rules for similar provisions).

#3 - AGENCY QUESTIONS Q What can be done in a situation where a listing

agent has a bank-owned property listing (lender has taken the property back through foreclosure) and the listing agent is non-responsive to my buyer client’s offer? May I go around the listing agent directly to the seller? A No, it is not legal to “go around” the listing agent directly to the seller. The Act requires licensees to deal through the exclusive listing agent. So a buyer’s agent may not go directly to the seller without consent from the listing agent. On the other hand, the Act does not apply to unlicensed buyers, in which case, the buyer might go directly to the seller to make sure his offer has been received. The other piece of information that is typically not known in these cases is what the seller is directing the listing agent to do as far as presenting offers that come to the listing agent. However, the listing agent does have a duty to present all offers to the seller in a timely manner up until closing unless the listing agent is directed otherwise by the seller client.

If the listing agent seems unresponsive and he has a managing broker, the buyer’s agent might contact the managing broker who could then check the status of the buyer’s offer. The listing agent could also ask for something in writing signed by the seller. Keep in mind that sellers of foreclosed properties might not be willing to sign something to prove the offer was received or even considered by the seller. Listing agents should communicate with buyers’ agents in some way to let them know what is happening or at least to describe the procedure that the listing agent is following. If the listing agent is “stonewalling” and there is some proof of this, a complaint should be filed with the Illinois Department of Financial and Professional Regulation, Division of Real Estate (DRE). If the listing agent is a REALTOR®, an ethics complaint at their local association of REALTORS® might also be filed.

#4 - DISCLOSURE OF DEFECTS Q Was there a recent change made to the Illinois

GOT A LEGAL QUESTION? The IAR Legal Hotline is the Designated REALTOR®/managing broker’s go-to source for legal information. Phone: 800.952.0578 Email: burbance@iar.org HOURS: 9 a.m. to 4 p.m., Monday through Friday

GOT A LEGAL QUESTION ON TRANSACTIONS? Call the IAR Transaction Helpline. Phone: 844.647.3833 Email: jbaker@iar.org

Residential Real Property Disclosure Act? A Yes. Public Act 98-0754 adds the words “windows” and “doors” to Question number 6 on the Illinois Residential Real Property Disclosure Form. These amendments are effective Jan. 1, 2015. The changes are a result of a case where the court found that leaking windows and doors were not included in the definition of walls. Therefore, the seller had no obligation to disclose defective conditions involving windows and doors.

NEED HELP RESOLVING A DISPUTE WITH A REALTOR®?

#5 - BUSINESS PRACTICES

Help Line: 217.529.2600 8:30 a.m. to 4:30 p.m. Monday through Friday www.illinoisrealtor.org/ombudsman-request

Q May a licensee offer a cash inducement to a buyer or

The Illinois Association of REALTORS® (IAR) has a Consumer Help Line to try and resolve questions relating to real estate transactions.

seller? A Yes, it is permissible to offer cash or another type of inducement to a party to a transaction. It is still illegal, however, to offer compensation to an unlicensed person for referring business to you. (See Q & A 1) •

•

ONLINE LEGAL RESOURCES LEGAL WEBINARS: IAR holds webinars on legal topics six times a year. Find them at www.illinoisrealtor. org/legal/webinars

A broker must be certain that the inducement is going directly to the actual owner of the property he is listing or to the party taking title to the property. The Act further requires that whenever a licensee advertises merchandise or services as being “free” that all conditions of the offer must appear in the ad. This means that if a clause in the ad says, “call the office for further details,” the ad may be incomplete. All limiting conditions of the offer must be contained in any advertising of the promotion, e.g. offer contingent on sale closing.

LEGAL VIDEOS: Want quick training on legal issues that could affect your business? Short legal videos can be found at www.youtube.com/user/ IllinoisRealtor

A listing or selling office that offers an inducement to a buyer should notify the seller in writing prior to submitting an offer that the buyer will be receiving the cash or merchandise.

THE REST OF THE STORY: FIND FIVE MORE 2014 HOT LEGAL TOPICS AT www.illinoisrealtor.org/ node/3688

ILLINOIS REALTOR® January 2015

Use Your Membership to Your

Full ‘Ad’vantage By Bill Kozar Don’t be in such a hurry to close your next deal that you hurt your professional image, lose valuable time or put a dent in your wallet. Use the resources available to you as a REALTOR® to prevent mistakes in your advertising and resulting complaints by clients or fellow IAR members. For example, if you follow the guidance provided in Article 12 of the REALTOR® Code of Ethics, it’s possible that you could avoid complaints similar to many of the ones filed with the IAR Ethics Citation Program. A majority of the complaints submitted so far involve advertising issues. And since the Code of Ethics is available online, even if you can’t remember the Code, you can always access it with a smartphone, tablet or computer.

CAN YOU SPOT THE POTENTIAL VIOLATIONS IN THIS AD? 1. If you claim to be “#1,” you need to clarify how you measure your status (units sold or dollars sold), when you achieved this status (monthly, quarterly, annually) and where you achieved it (in the town, city, county).

2 3

2.You can’t use the company website address instead of your company name. 3. According to the NAR Member Marks Manual, this is the wrong version of the REALTOR® mark. 4. If you sell insurance or provide other services to potential customers, the other services cannot be listed adjacent to the REALTOR® mark.

CHECK THE FINE PRINT (IF THERE IS ANY)

Generally speaking, IAR Executive Secretary Becky Carraher and IAR Legal Hotline Attorney Betsy Urbance say they’ve seen unethical or deceptive ads in newspapers, on websites and in different kinds of social media. They’ve seen ads when Illinois REALTORS®: •

Don’t disclose the companies they work for;

•

Portray themselves as “No. 1” without data to back up the claim; or

•

Claim to have sold a large number of units without divulging the source of the data or the true time frame.

Brokers whose ads use language such as “more than $1 million sold” shouldn’t leave potential customers with the idea that the achievement occurred in a short period of time, if, for instance, it really took 25 years to reach that transactional level. Kate Sax, Director of Professional and Ethical Practices for the Mainstreet Organization of REALTORS® (MORe), noted three kinds of ethics code violations she’s seen recently: •

Advertising another broker’s listing, without authority, on Craigslist

12 www.illinoisrealtor.org

•

Advertising a property as “sold” when the purchase is outdated

•

Violations of the REALTOR® trademark in ads, websites, Twitter usernames and email addresses.

IAR ETHICS CITATION PROGRAM CAN HELP

Created in September 2014, the IAR Ethics Citation Program gives IAR members and their clients a way to file complaints against Illinois REALTORS® for violating one or more specific sections of the Code of Ethics. Complaints may be filed anonymously. During the first two months of the program, a large percentage of Ethics Citation complaints involved advertising in newspapers, on websites or through social media. Complaints that fall outside of Articles 1, 3, 4, 5, 6, 12, 14 or 16 of the code will be automatically dismissed. Complaints involving license law violations should be filed directly with the Illinois Department of Finance and Professional Regulation/Division of Real Estate. A panel of IAR members who specialize in ethical standards will review submitted complaints. If the panel

EXCERPTS OF CODE OF ETHICS WORTH NOTING WHEN IT COMES TO ADVERTISING Whether it’s been awhile since you read the NAR Code of Ethics or you’re new to the business, several parts of Article 12 apply to advertising. Please take a look.

Introduction REALTORS® shall be honest and truthful in their real estate communications and shall present a true picture in their advertising, marketing and other representations. REALTORS® shall ensure that their status as real estate professionals is readily apparent in their advertising, marketing and other representations, and that the recipients of all real estate communications are, or have been, notified that those communications are from a real estate professional.

SOCIAL MEDIA & LISTINGS When posting a listing to Facebook: 1. You must have the permission of the listing agent to mention that listing – especially if you’re inviting someone to contact you for a tour. 2. Although the Internet Data Exchange (IDX) allows the public to search approved Multiple Listing Service properties in a certain area, broker reciprocity does not allow you to post other broker’s listings on social media, too.

believes a violation has occurred, a citation will be issued to the REALTOR® in question, along with a pre-set fine. A REALTOR® can pay the fine within 30 days or request a hearing before an Ethics Hearing Panel. Fines range from $250 to $1,000, depending on the nature and severity of the violations. If REALTORS® request hearings, the complaints will be sent to the Grievance Committee for review. For information on what Illinois law requires of real estate agents, visit www.ilga.gov and search for the Real Estate License Act of 2000. You can also visit: www.illinoisrealtor.org/legal/ issues/advertising.

FILING A COMPLAINT Complaints can be filed online at www.illinoisrealtor.org/disputes 24 hours a day/seven days a week but those who prefer to use the telephone can call (217) 529-2600 from 8:30 a.m. to 4:30 p.m. Monday through Friday (closed on major holidays).

Sample Standards of Practice 12-1 – REALTORS® may use the term “free” and similar terms in their advertising and in other representations provided all terms governing availability of the offered product or service are clearly disclosed at the same time. 12-4 – REALTORS® shall not offer for sale/lease or advertise property without authority. When acting as listing brokers or as subagents, REALTORS® shall not quote a price different from that agreed upon with the seller/landlord. 12-5 – REALTORS® shall not advertise nor permit any person employed by or affiliated with them to advertise real estate services or listed property in any medium (e.g., electronically, print, radio, television, etc.) without disclosing the name of that REALTOR®’s firm in a reasonable and readily apparent manner. This Standard of Practice acknowledges that disclosing the name of the firm may not be practical in electronic displays of limited information (e.g. “thumbnails”, text messages, “tweets”, etc.). Such displays are exempt from the disclosure requirement established in the Standard of Practice, but only when linked to a display that includes all required disclosures. 12-7 – Only REALTORS® who participated in the transaction as the listing broker or cooperating broker (selling broker) may claim to have “sold” the property. Prior to closing, a cooperating broker may post a “sold” sign only with the consent of the listing broker. 12-8 – The obligation to present a true picture in representations to the public includes information presented, provided or displayed on REALTORS®’ websites. REALTORS® shall use reasonable efforts to ensure that information on their websites is current. When it becomes apparent that information on a REALTOR®’s website is no longer current or accurate, REALTORS® shall promptly take corrective action. 12-9 – REALTOR® firm websites shall disclose the firm’s name and state(s) of licensure in a reasonable and readily apparent manner. Websites of REALTORS® and non-member licensees affiliated with a REALTOR® firm shall disclose the firm’s name and that REALTOR®’s or non-member licensee’s state(s) of licensure in a reasonable and readily apparent manner. Find the full Code of Ethics here: www.realtor. org/code-of-ethics

ILLINOIS REALTOR® January 2015

ETHICS HEARINGS In September 2014, the IAR Board of Directors approved publishing the results of ethics hearings throughout the state. These are the conclusions of ethics hearings and are not part of the Ethics Citation Program.

TIME PERIOD: FROM May 1, 2014 to Oct. 31, 2014

Articles found by Hearing Panel to have been violated and ratified by the Board of Directors

Discipline and fines imposed

Previous violation(s) in last three (3) years? Yes or No

Complaint #1

Article 1

$500 fine and three-hour continuing education course

Yes

Complaint #2

Article 1

Three-hour continuing education course

Complaint #3

Articles 1 and 3

$1,000 fine, Letter of Reprimand and three-hour continuing education course

Complaint #4

Articles 1 and 12

Letter of Warning

Complaint #5

Articles 1 and 3

$750 fine, Letter of Reprimand and two three-hour continuing education courses

Complaint #6

Articles 1 and 2

$2,500 fine, Letter of Warning and two three-hour continuing education courses

Complaint #7

Articles 1, 2, 3, 12 and 16

$242.50 fine, Letter of Warning and four three-hour continuing education courses

Complaint #8

Articles 1, 2 and 12

$2,500 fine, Letter of Warning and two three-hour continuing education courses

Complaint #9

Articles 1, 15 and 16

$500 fine and two three-hour continuing education courses

Yes

Complaint #10

Articles 1, 15 and 16

$250 fine and two three-hour continuing education courses

Complaint #11

Article 2

$1,000 fine, Letter of Reprimand and three-hour continuing education course

Complaint #12

Article 2

Letter of Reprimand and three-hour continuing education course

Complaint #13

Article 3

$1,000 fine, Letter of Reprimand and three-hour continuing education course

Complaint #14

Article 3

Letter of Warning

Complaint #15

Article 3

$500 fine, Letter of Warning and two three-hour continuing edu- No cation courses

Complaint #16

Articles 3 and 16

$500 fine, Letter of Warning, two three-hour continuing education courses

Complaint #17

Article 3

Letter of Reprimand

Complaint #18

Article 12

$500 fine, Letter of Reprimand and two three-hour continuing education courses

Complaint #19

Article 12

$250 fine

Complaint #20

Articles 12 and 15

$500 fine and three-hour continuing education course

Complaint #21

Article 13

Letter of Warning and three-hour continuing education course

Complaint #22

Article 15

$1,000 fine and three-hour continuing education course

Complaint #23

Article 16

$1,000 fine and Letter of Warning

Complaint #24

Article 16

$1,500 fine, Letter of Reprimand and two three-hour continuing education courses

Complaint #25

Article 16

Letter of Warning and three-hour continuing education course

Complaint #26

Article 16

Letter of Reprimand

14 www.illinoisrealtor.org

2015 IAR President

JIM KINNEY

Taking a

BROAD VIEW

of the World and the Real Estate Industry BY STEPHANIE SIEVERS

Jim Kinney thinks big when it comes to real estate, whether it’s the luxury properties he sells in Chicago or his interest in global real estate and the need to promote Illinois to international investors and buyers. Now Kinney, vice president of luxury home sales at Baird & Warner in Chicago, is bringing that perspective to the Illinois Association of REALTORS® as he leads the association as the 2015 state president. “I have been passionate in my involvement at the local, state and national level,” said Kinney, ABR, CRB, CRS, GRI. “I really love the people that I share the profession with and I think, ultimately, we’re all here to make each other’s lives easier and more productive.”

ILLINOIS REALTOR® January 2015

THE ROAD TO REAL ESTATE

Kinney is a native of West Virginia and his father was a petroleum engineer with Marathon Oil. That meant Kinney’s family moved often, with stays in Texas, Louisiana, Indiana and southern Illinois. There were even four years when the Kinney family lived in Tripoli, Libya. Kinney eventually made his way to Chicago to attend Northwestern University. After graduation and a few years in retail management, Kinney and a partner created a successful business producing finished advertising art for retail clothing stores such as Marshall Field’s and Carson Pirie Scott. In the 1970s, photography wasn’t commonly used to illustrate the clothing in newspaper advertising. Instead, the fashions were drawn on figures. Kinney handled the layout, design and working with clients while his partner drew the finished art.

AN INVESTING HOBBY TURNS INTO A SECOND CAREER

Department store advertising was a lucrative niche business, but as photography became more affordable and advertisers began moving in that direction, it was a business that was in danger of obsolescence. Kinney soon changed careers. While still in advertising, he had begun investing in condominiums and three-flats in Lincoln Park. He enjoyed buying and managing properties and decided to jump into real estate full time in 1979. But real estate, which had been peaking, headed downward and Kinney quickly found himself in a “survivors market.” Despite high interest rates (10- to 12-percent mortgage rates were coveted at the time) and a slow market, Kinney was able to survive and learned a valuable lesson: “If you can survive the down periods in our market, you can survive anything,” he says. And in some ways, getting into real estate during a down market can be a good thing. There is less competition from other new agents and the slower market gives agents the time to get educated, learn the business and get established, he says.

WORKING EVERY ANGLE

During his more than 30-year real estate career, Kinney has worked in nearly every real estate role: investor, real estate agent, managing broker and broker owner. Early in his career, Kinney worked for Baird & Warner in Chicago before moving to Rubloff Residential Properties where he would spend more than 20 years and where he would eventually become a broker owner. When Rubloff was sold in 2009, Kinney headed back to Baird & Warner where he has served as the vice president of the agency’s luxury division for the last six years. The switch has been a good fit and one that has gotten him back on the selling side of the business. The luxury market is a niche but one that he has nurtured and built through the years as his sphere became more successful in their careers and sought larger move-up properties.

GIVING BACK TO THE INDUSTRY

Throughout his career, Kinney has been a proponent of donating his time to further the real estate industry at the local, state or national REALTOR® association levels. He was named REALTOR® of the Year by the Chicago Association of REALTORS® in 2002 and the Illinois REALTOR® of the Year by the IAR in 2004. Loretta Alonzo, 2012 IAR President and the managing broker of Century 21 Affiliated in LaGrange Park, has worked with Kinney over the years and says he is a leader who can be counted on. “He’s always fair and he listens before he makes a decision on anything,” she said. “His strong point is that he is a man of conviction. He’s unwavering when it comes to what he believes is the right thing.” When Kinney was president of the Multiple Listing Service of Northern Illinois, which preceded Midwest Real Estate Data (MRED), and Alonzo was vice president, technology and attention to detail were priorities for Kinney. “He always wanted the data to be right. We used to tease him because he would start his weekend by checking listings for everybody to make sure all of the information was correct,” she said. 16 www.illinoisrealtor.org

Eight Questions with Jim Kinney What is your leadership style? I seek consensus. What is your best advice for someone entering real estate? Make sure you are financially able to get through the first year of little to no earnings. Most people fail in this business because they can’t afford to last until their business clicks in. What has been your greatest accomplishment? Having a lot of really great friends. What do you love most about the real estate business? The people. What do you like to do in your free time? I like to travel and sail. What is your favorite vacation destination? Italy. What’s the last good book you read? “The Sea” by John Banville. Love his work. What’s something people would be surprised to know about you? I raised a pig for 4-H.

“I really love the people that I share the profession with and I think, ultimately, we’re all here to make each other’s lives easier and more productive.”—2015 IAR President Jim Kinney

Kinney photos credit: Michael Hudson

GOALS FOR THE YEAR AHEAD Some of Kinney’s goals for 2015 build on ongoing IAR priorities — improving professional standards and growing RPAC and RVOICE advocacy efforts — while others are initiatives he can put his own personal stamp on:

Continuing RPAC’s momentum. In 2014,

the Illinois REALTORS® Political Action Committee (RPAC) for the first time earned the prestigious Triple Crown Award for RPAC fundraising from the National Association of REALTORS®. Now the goal is grow even more member participation. Ideally, Kinney believes every Illinois REALTOR® should at least give the $20 Fair Share contribution. “I feel that to be a Fair Share giver to RPAC should just be synonymous with being a REALTOR®,” he said. “(RPAC) is in so many ways how we make a living because of what our advocacy efforts do.”

Getting more from technology. IAR’s

Taking a global view.

A longtime member of the International Real Estate Federation (FIABCI), Kinney is attending MIPIM, an annual international real estate event in France this spring. Chicago and the state of Illinois are driving economic forces in the heartland, and more can be done to attract the interest of international investors, particularly when it comes to commercial real estate and development in the state, he says.

resurrected Technology Advisory Group will look at how technology can be used to improve the real estate process for members. Are there technology tools to improve online transactions? Are there apps or programs that could be developed or used to assist agents? “The charge of our committee is not to be product driven but to look at real estate transactions and see if there are holes in how we do business that can be helped with technology,” Kinney said.

A looming elder care crisis? Another

issue important to Kinney is the aging Baby Boomer population and the financial and housing concerns this group faces in the years ahead as they live longer and deplete retirement savings. Kinney says he already sees middle and upper-middle class clients who are concerned about their future and the problem is only likely to grow. It is important for the real estate industry to investigate what can be done in terms of housing options.

2015 IAR LEADERSHIP www.illinoisrealtor.org/officers PRESIDENT Jim Kinney, ABR, CRB, CRS, GRI Vice-President of Luxury Home Sales for Baird & Warner in Chicago

PRESIDENTELECT Mike Drews BrokerAssociate with Charles B. Doss & Co. in Aurora

TREASURER Doug Carpenter, ABR, AHWD, SFR Managing Broker of Coldwell Banker HonigBell in Orland Hills

IMMEDIATE PAST PRESIDENT Phil Chiles, ABR, CRS, GRI, SRES Broker-Associate with the Real Estate Group in Springfield ILLINOIS REALTOR® January 2015

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2015

MANAGING BROKER LICENSE RENEWAL

Goal-Setting Victories

By Bernice Ross

You have a written business plan.You’re prospecting regularly. And you’re hitting your goals. Everything is going well until an unexpected business downturn or personal crisis turns your life upside down. How do you cope? Making it in real estate can be tough. Many agents report feeling overwhelmed by recessionary prices, fierce competition, fast-paced technology changes and stringent lending standards. Couple these factors with a personal challenge and the pressure can literally destroy your business. Take heart—you can achieve “goal-setting victories” by following the suggestions below.

1. Shift With the Market

Jay Rodgers

When the market shifted in 2007, Jay Rodgers of RE/MAX Excels in Geneva, reinvented his business. “In 2007, my practice was one-third new construction and land, one-third serving the high-end ($700,000+), and one-third everything else. In 2008, the market became extremely volatile. Rather than planning for the volatility, I was reactive. As the downturn progressed, new construction went away, high-end sales dropped by 70 percent, and the remainder of the market became unpredictable. I decided to stop working sporadically and be more intentional about my business.” Rodgers says, “I have always loved business planning. To me, your business plan is not fixed—it’s a living document, map and tool to advance your career and your life.” Rodgers credits his business turnaround to the one-page strategic business plan from Verne Harnish’s book, “Mastering the Rockefeller Habits.” “The book forced me to concentrate on the fundamentals—the key drivers or objectives. The one-page plan kept me on target rather than getting bogged down in the details.” Rodgers’ business remake included downsizing his team, moving into a home office and aggressively trimming business expenses. For his high-end clients, he shifted from selling them primary residences to helping them buy homes for their children and for investment. As Rodgers moves into 2015, he has a new team that includes his wife, one new agent and an assistant. He is doing more traditional and investment sales, fewer foreclosures and is starting to work with some new construction. His education business plan includes learning how to incorporate DocuSign’s transaction rooms into his business and obtaining his CRS designation. In terms of your business plan, Rodgers advises, “It’s always easy to slip back into income goals. You also need a formula and a framework. Many agents fail to keep accountability with their accountant and bookkeeper. Don’t just set a year-end goal. Instead, ask yourself what do you need to do to hit your mid-range goals as well as your year-end goals. It’s also important to ask what tools and education will be required to achieve those goals.”

2. Educate Yourself, Educate Your Clients

Carrie Sebold

Carrie Sebold of Baird & Warner Fox Valley has shifted her business plan to fit the market. Her niche was serving clients in the $500,000-$600,000 price range. The percentage of listings she sold in this price range declined from 70 percent in 2013 to 60 percent in 2014, and the number of properties she sold in the $250,000-$400,000 price range increased. Her listing-buyer ratio changed from 70 percent listings in 2013 to 80 percent in 2014. Her sales of investment properties increased as well.

ILLINOIS REALTOR® January 2015

Sebold’s strategy for coping with these shifts was to proactively educate her clients. “My job has changed. Sellers want an agent who knows how to market both their home and their community’s lifestyle. I educate sellers on how to sell their property. Today’s buyers want each room to be useful. When I stage a formal dining room, we often turn it into an office.” Sebold educates her sellers about where they need to spend money vs. where they can save. For example, sellers can often reface kitchen cabinets rather than replacing them. In contrast, installing granite kitchen countertops usually yields a higher return than the cost. In terms of educating her first-time buyers, Sebold has joined ACTHA (Association of Condominium, Townhouse, and Homeowners Associations) which has a mission to “provide information and education to boards, owners and professionals involved with community associations, to help their organizations run more effectively and efficiently.” Buyers can join for $50 per year. This site provides a wealth of resources to help buyers navigate through the purchase process and to learn about key issues related to living in these types of properties.

3. Let People Know Who You Are

When two of her deals fell apart days before closing, Myrna Santiago-Martinez of United Real Estate Chicago, found herself holding back tears. She wondered if she could ever return to how well she was doing at the beginning of 2014. Her son saw what she was going Myrna through and said, “Remember when you first Santiagostarted? Just get out there and let people know Martinez what you do.” Santiago-Martinez is no stranger to making a comeback. She buried her husband on Christmas Eve 2007. A year later, she was laid off from her five-year position at a non-profit. Even with a college degree she couldn’t find a job. To make ends meet, she applied for part-time minimum wage work helping the elderly. As she was mopping floors, she realized she had to regain control of her life. That’s when she entered real estate. She took her son’s advice and became more active in her community. In 2014, she joined two different chambers of commerce, participated in the Membership Committee for ACTHA and worked with the Northwest Side Housing Center to educate first-time homebuyers. She began aggressively marketing her business. She has a magnetic sign on her car advertising her business, wears a baseball cap embroidered with her business website, and hands out business cards at every opportunity. Everywhere she goes she tells people, “This is what I do. If you’re interested or need some help, just give me a call.” Santiago-Martinez said: “I never push. I really am serious about helping my clients.” When Santiago-Martinez is feeling discouraged, she can always count on her son’s encouraging words. 20 www.illinoisrealtor.org

Recently, he reminded her of a quote from their friend, Mel Roberson: “Comfort Zone: The place where people die because they refuse to take risks, explore possibilities, and fail to try because of what others may think.” Santiago-Martinez adds, “The truth is, you’ll never know if you can do something unless you try.”

4. Real Estate Not Life or Death

No one is prepared for a major illness Susan Peloso or the unexpected loss of a loved one. Susan Peloso of United Real Estate Chicago was a multi-million dollar producer when the market crashed and her office closed. She transferred to a smaller office where she wound up working mostly from home. Just prior to her office closure, Peloso was diagnosed with breast cancer linked to the BRCA-1 gene that also causes ovarian cancer. She worked throughout her recuperation never letting her clients or her young son know what she was fighting. Peloso had always been the one who helped others. The cancer changed that. “Being a Type ‘A’ personality, I wasn’t accustomed to asking others for help. That quickly changed when I was fighting for my life. You quickly learn who is there for you and who is not. I found that when you face a crisis, no matter what it is, most people are willing to help—you just need to ask. It is a humbling experience,” she said. The cancer also changed her priorities. “My business used to come first. Today my personal life is my top priority, especially since I survived a second cancer. It’s important to schedule personal time into your business plan. For example, I have dinner with my husband and son every night. We treasure those moments. I stopped working late hours and missing family events.” Peloso also added, “I can no longer tolerate clients who act as if their deal is a life or death matter. Life is too short to put up with clients who don’t get it. You must be on the same page with your clients for the relationship to be successful. If that’s not the case, I don’t want their business.” Based upon her experience, Peloso highly recommends that agents obtain life insurance coupled with a disability policy. “Be prepared for the worst. There was no way my husband and I could have paid our mortgage when I was not working to full capacity. My disability policy kept us from losing our home. You never think it could happen to you. I was in my 30s and it happened to me.” In 2015, Peloso is looking forward “to starting over and having a great comeback.” As you create your 2015 business plan, be prepared to cope with market shifts. Educate your clients and grow your knowledge as well. When you face a tough time, ask for help and always remember, your family and loved ones come first—that’s the best way to achieve your personal goal-setting victory. About the writer: Bernice Ross, CEO of RealEstateCoach.com, is a national speaker, author and trainer with over 1,000 published articles and two best-selling real estate books.

Time Out of Your Day

Get More

TIME MANAGEMENT TIPS TO HELP YOU ACCOMPLISH MORE IN LESS TIME

By Stephanie Sievers

efore REALTOR® Angie Lotz came up with a detailed system for plotting and tracking her time, she often felt overwhelmed. She’d put in long hours only to leave the office feeling like she should have done more. A self-described “ultra Type A” person, she set about creating a time management system to get more control. She’s fine-tuned a plan that works for her and now she and her assistant, who has access Lotz’s calendar, know at any given time what she will be doing. “I’m accomplishing projects faster and it’s actually giving me more time to build more business, but it’s also freeing up more time to spend with my family,” said Lotz, a broker with RE/MAX All Pro in Bloomingdale. Lotz and other Illinois REALTORS® share their tips for managing hectic work days so that you can get more accomplished in less time.

blocks out time for everything including spending time with her family. Unexpected things may pop up, but Lotz goes into the week with an overall blueprint. REALTOR® Mike Van Cleve with Angie Lotz Mike Van Cleve Traders Realty in Peoria blocks out his time to the hour. On a typical day, he spends the first hour at the office catching up with his assistant and prioritizing the day. From 10-11 a.m., he’s prospecting and from 11 a.m. to noon, he responds to emails and voicemails. The afternoon is reserved for showings and business outside the office. It is important for agents to strike a healthy work-life balance and Van Cleve said time blocking helps. “The great thing about this job is that it’s different every day but the difficult thing about this job is that, if you let it, it will be all consuming,” he said.

Break out your day in blocks

If you write it down, it’s more likely to happen

The key for Lotz and many other REALTORS® is “time blocking.” Lotz divides her day into blocks, designating specific times for prospecting, posting on social media or handling appointments outside of the office. On Sunday nights, Lotz plugs her appointments and tasks for the week into her smartphone calendar. She

One of the benefits of adding everything to your calendar is that when it is scheduled in writing, it holds you more accountable for actually getting it done, Van Cleve says. It also allows you to identify and eliminate the things that aren’t working.

ILLINOIS REALTOR® January 2015

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Van Cleve tracks everything and then when it comes time to put together his business plan for the next year, he goes back to his time management system and analyzes what helped his business and what didn’t. He eliminates the bottom 15 percent, which is how he decided to stop holding open houses. He found he wasn’t getting enough return on his time investment. Another time saver, Van Cleve revamped his website to serve as the platform for his first interview with potential clients. If people like what they see from his website, he has to spend less time convincing them that he’s the right agent and can spend more time working directly to serve them.

Tackle unpleasant jobs first and stay focused on the task at hand

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22 www.illinoisrealtor.org

Do the difficult jobs early in the day and check them off your list. REALTOR® Connie Scott, of RE/MAX At Home in Rolling Meadows, puts a star next to the day’s tasks that she is least looking forward to and does those when she first gets to work. “If you take care of those first, you will have such a sense of accomplishment that the rest of your day will be more productive,” she said. Otherwise that unpleasant call you need to make or note you need to write will weigh heavily on you all day and distract you from the other things you are doing. Scott says that Connie Scott since she started knocking out the hard tasks first, it has made a real difference in productivity. Scott finds that she also gets more done when she focuses on the task at hand and tunes out distractions that pull her attention elsewhere. That can be hard to do when you are being bombarded with phone calls, emails and texts, she said. “All clients deserve 100 percent focus and attention to detail,” she said. “If you are stopping in the middle of a task for a client to answer the phone, text or email from another, you have just put one client’s needs ‘on hold.’”

Ashton Gustafson

Ashton Gustafson, a successful Texas REALTOR® and real estate industry speaker, shared some of his time management tips at the 2014 IAR Fall Conference & Expo. Here are a few more:

• Don’t check email before 11 a.m. and only check it three times a day. • Plan your days in advance. Time blocking is essential for greater effectiveness and efficiency. Tell your day where it is going or it will tell you. • Don’t multitask. Studies have shown that multitasking can actually hurt your effectiveness. Instead bring laser-like focus to what you do. • Make sure everything you do builds, establishes or polishes your relationships. This is a relationship-driven business and your goals must always point to managing your sphere of influence.

Six Tips to Improve Your Efficiency The National Association of REALTORS® offers training tools on time management including the handout, “14 Tips for Better Time Management.” Here are six of those tips but you can find the rest at http://realtormag.realtor.org/tool-kit/sales-meetings/timemanagement.

1 2 3 4 5 6

se waiting time effectively by planning small tasks U you can do in short segments of time. Divide a difficult job into several parts so you don’t burn out before it’s done When you return a phone call, minimize phone tag by including a time you can be reached. Set completion dates for tasks to avoid procrastination. Reward yourself with 15 minutes of fun after completing a difficult job. ake a break to refresh yourself; you’ll be more T productive.

Get involved! ReAltoR® lobby day April 14, 2015 learn the issues and discuss the ReAltoR® agenda with your state legislators at the iAR Annual Capitol Conference events! legislative briefings and Capitol visits Meet with members of the illinois House and Senate on key ReAltoR® issues legislator networking reception

www.illinoisrealtor.org/capitolconference January 2015 Mag Ad c.indd 1

#PowerofR ® ILLINOIS REALTOR12/2/2014 January 11:56:15 2015 AM 23

THANKS A MILLION! The Illinois REALTORS® Political Action Committee (RPAC) Trustees extend a sincere THANK YOU to all 2014 RPAC Major Investors. RPAC

RPAC

In total, 358 members invested at least $1000 - a significant portion of the $1,076,983 raised. IAR set itself apart from all other state associations of 20,000+ members and received the prestigious National Association of REALTORS® Triple Crown Award for money raised, mAjOR INvESTORS, and participation - the first time in our history.

RPAC HAll of fAme Aggregate lifetime investment of at least $25,000

Douglas Carpenter 2002 Gary Clayton 2004 Peggy Kayser 2005 Gerald Perlow 2005 John C. Kmiecik 2006 Lynn Madison 2006 John A. Veneris 2007 Darcy Dougherty 2008 Steven Good 2008 Nancy Suvarnamani 2008 Patrick Dalessandro 2010 Daniel L. Goodwin 2010

Albert M. Suguitan 2010 Arthur van der Vant 2010 John P. Vranas 2010 Jean Crosby 2011 William T. Griffin 2011 Ronald E. Hardgrove 2011 John F. Kretchmar 2011 Pamela A. Krieter 2011 Piero Orsi 2011 Robert J. Zoretich 2011 Daniel W. Bock 2012 I Mac Boyd 2012

Ginger Downs 2012 Jim Kinney 2012 Stan Sieron 2012 Frank Wehrstein 2012 Greg St. Aubin 2012 Ann Hammerstad 2013 Mike Onorato 2013 Chris Read 2013 Gerry Schuetzenhofer 2013 Christopher Tenggren 2013 Kay Wirth 2013

* 2014 RPAC Hall of Fame members will be announced in 2015 and celebrated first at the NAR REALTOR® Party Convention in Washington, D.C. in May 2015.

PLATINUM “R”s ($10,000)

IllInoIs PResIdent’s CIRCle membeRs

RPAC PACesetteRs

are indicated with a round frame.

are indicated with a red star.

RPAC AmbAssAdoRs are indicated with a light blue star.

President’s Circle members are an influential group of REALTORS®/major Investors who contribute directly to REALTOR® Party Champions through this NAR program. RPAC PACESETTERS pledged to be major Investors by Feb. 1 2014. RPAC Ambassadors recruited at least 10 non-investors to invest at least $20 to RPAC in 2014.

24 www.illinoisrealtor.org

goLdeN “R”s ($5,000)

North Shore-Barrington Association of REALTORS®

Philip E. Chiles Springfield

Matt Difanis Champaign

Adam Lofgren Peoria

Norm Willoughby Decatur

SUSTAININg goLdeN “R”s ($2,000)

Sonia Anaya Chicago

Dan Bock Lincoln

Mac Boyd Arcola

Doug Carpenter Orland Hills

Colleen Clavesilla Algonquin

Gary Clayton Springfield

Ginger Downs Chicago

Matthew Farrell Chicago

Michael Golden Chicago

Daniel L. Goodwin Oak Brook

William T. Griffin Pekin

Ann Hammerstad Geneva

Dana Hybl Carol Stream

Jim Kinney Chicago

Amy Kite Naperville

John C. Kmiecik Oak Lawn

Lynn Madison Schaumburg

Ed Prodehl Joliet

Chris Read Woodridge

Wayne Reuter Geneva

Hugh G. Rider Chicago

Millie Rosenbloom Chicago

Gerry Schuetzenhofer Edwardsville

Stan Sieron Belleville

Greg St. Aubin Springfield

Al Suguitan Glen Carbon

John P. Vranas Chicago

Dan Wagner Oak Brook

Frank Wehrstein Rockford

Nancy Suvarnamani Christopher Tenggren Chicago St. Charles

Michael D. Oldenettel Springfield

Patrick A. Dalessandro Niles

Joe Hanauer Laguna Beach

Piero Orsi Gurnee

ILLINOIS REALTOR® January 2015

CRySTAL “R”s ($2,500)

SUSTAININg CRySTAL “R”s ($1,500)

Loretta Alonzo Nicholas H. Apostal La Grange Park Chicago

Jim Haisler Crystal Lake

Sharon Harkness Champaign

Ed Neaves Bloomington

Doug Hartmann Collinsville

Pam Krieter Downers Grove

Carol Meinhart Hickey Champaign

Sam Powell Chicago

Teresa Ryan Naperville

Kay Wirth Crystal Lake

Connie Conway Winnetka

Jeff Gregory Plainfield

Sheryl Grider Whitehurst Peoria

Mabél Guzmán Chicago

David McClintock Joliet

Ezekiel (Zeke) Morris Chicago

Mike Onorato Coal City

Georgia Pierini Winnetka

Karen Robertson Plainfield

Eric Ryden Moline

Carl Wasco Rockford

EmErald “r”s ($2,000)

Tonya Burris East Peoria

Tonya H. Corder Homewood

Richard Davis Marion

Bill Embry Mackinaw

Edward McCarthy Glen Carbon

Kirk W. Swensen Mattoon

Amanda Wycoff Bloomington

RUby “R”s ($1,500) Photo Not Available Jim Barbagallo Rockford

Ayn Bartok Harrisburg

Paula Cooley Decatur

Karen Cupp Carterville

Judy Doyle Swansea

Joe Kenny Darien

Matt Laricy Chicago

Michael Maloof Peoria

Max Mitchell Champaign

Steve Myers Springfield

Debbie Prodehl Homer Glen

Julie Roth Champaign

26 www.illinoisrealtor.org

Tim Ryan Frankfort

Deb Sanders Effingham

Chris Seniker Edwardsville

Shawna Holtman

Gary Jacklin Lisle

Pattie Palzet-Taylor Debbie Pawlowicz

Wauconda

Lisle

Kathy Shemwell Rebecca Thomson Collinsville Chicago

Jerry Jansen Effingham

Richard Pisoni Herrin

PJ Trautman Champaign

Linda Wheaton Edwardsville

STERLING “R”s ($1,000)

Ron Abrams Chicago

Angela Aeschliman Chicago

Jayme Ahlden Champaign

Mack Alsaidi Chicago

Kyle Anderson Hamel

Rebecca Arce Chicago

John Armstrong Bloomington

Vic Armstrong Bloomington

Mary Bahry Wheaton

Elizabeth Ballis Chicago

Karen Barbagallo Rockford

Jack Bataoel Bloomington

Scott Bechtel Champaign

Jenni Beck Alton

Scott Beilfuss Richmond

Steve Bennett Mascoutah

Brian A. Bernardoni Carrie J. Bey-Little Chicago Glen Ellyn

Tim Binning Bloomingdale

Genie Birch Lincolnwood

Susie Blanchet Swansea

Gary T. Bohn Hoffman Estates

Steve Bois Rockford

Russ Bergeron Lisle

Lori A. Bonarek Morris

Terri Booker Decatur

Pam Borowski Freeport

Mitzi Brandenburg Springfield

Charay Brewer Marion

Carla Brinkoetter Decatur

Conor Brown Rockford

Cari Brunner Swansea

Mike Buscher Springfield

Nate Byram Danville

Pat Callan Wheaton

Teresa Camarato Herrin

Debra Campbell Columbia

Nicholas Campo Pawnee

Daniel Carcasson Bloomington

Anthony Casaccio Oak Brook

William Caton Naperville

Christine Chase Wheaton

Tommy Choi Chicago

Timothy A. Clark Bartonville

Jim Cleveland Decatur

Rob Cole O’Fallon

John Collins Bloomington

Richard Conte Naperville

Bill Craig Champaign

Jean Crosby Rockford

Carie Cycholl Springfield

Rosalie D’Andrea Joliet

Bob Davenport Carbondale

Juan Del Real Cicero

Rebecca Demond Swansea

Mark Deubel La Grange Park

Charles Dinolfo Oak Lawn

Bob Dohn Schaumburg

Andrew Cook Morris

Janie Davis Carterville

G. Joseph Cosenza Gailene Cowger Oak Brook Orland Park

Kristie L. DeBrun Pawnee

Brett Decker Chicago

ILLINOIS REALTOR® January 2015

STeRLINg “R”s ($1,000) continued

Brian K. Dolan Aurora

Daniel Dolan Aurora

Chad Doyle Swansea

Tom Ewing Rockford

Linda Feinstein Hinsdale

Gasper Flores Chicago

Bryce Fuller Northbrook

Kathleen A. Garst Springfield

Vicki Geiger Morris

Sharon Gorrell Naperville

Linda Green Savoy

Mike Gross O’Fallon

Keith A. Hancock Glenview

Dave Hanna Chicago

Richard W. Hanselman

Springfield

Lee Hansen New Lenox

Doug Hartmann, Jr. Collinsville

Royal Hartwig Palatine

Phil Harvey Peoria

Tammy Mitchell Hines

Madeline Hoeft Champaign

David Holden O’Fallon

Columbia

Phil Johnson Swansea

Bruce Kaplan Connie Kappert-Knipp Lake in the Hills Mascoutah

28 www.illinoisrealtor.org

Mike Drews Aurora

Robert Eby La Grange Park

Wayne Edwards Chatham

David Erutti Edwardsville

Ron Ewing Elgin

Deb Frazier Belleville

Linda Frierdich Columbia

Kevin Kritzsche Decatur

Bobbie Gerbrecht Grayson St. Charles

Judy Gibbons Chicago

John E. Ginder Peoria

Michael Gobber Westchester

Heather Gustafson Tammy Kim Hajjar Chicago Chicago

Mari Halliday Peoria

Maurice L. Hampton Chicago

Dallas Hancock Peoria

Moin Haque Naperville

Ron Hardgrove Peoria

Joe Hardin Shiloh

Hank Hart Alton

Lisa Hathaway Lake Forest

Valentina Hatzelis Oak Lawn

Matt Hernacki Palatine

Marc Hernandez Chicago

Chris Hilton East Peoria

Susan Holden O’Fallon

Gregory Holthaus Carbondale

Dana Hudson Elkhart

Karen Irace Orland Park

Marianne James Marion

Lisa C. Keating La Grange Park

Kim Keefe Woodstock

Vicky Keene Chicago

Linda P. Kepple Peoria

Kyle Killebrew Springfield

Kathy Frankenberger Sharlyn Franzen Arlington Heights Champaign

Bev George Edwardsville

STERLING “R”s ($1,000) continued

Vera Kincaid Saint Charles

Lynn Klein Hampshire

John Klemm Springfield

Daniel Kniery Bloomington

Marilyn Kohn Peoria

Jeff Kolbus Peoria

Karen Kramford Naperville

Thomas Krettler Palatine

Julie Lading Edwardsville

Adam LaHood Peoria

Heidi Lawton Elmhurst

Claire Leopold Swansea

Rita Liberatore Plainfield

Nick Libert Chicago

Ann Londrigan Springfield

Patrick Lynch Chicago

Susan Madison Springfield

Erin Mandel Chicago

Jan Mandis Carbondale

Jan Mansfield Rockford

Bill McCarthy Peoria

Pat McCarthy Peoria

Mike McElroy Chicago

Donna McQuade Geneva

Marcos Mendez Chicago

Daniel Merrion Chicago

Jim Merrion Elgin

Casey Meyers Woodstock

Sandy Michel Vandalia

Jim Miller Chicago

Sue Miller McHenry

Suzanne Miller Peoria

Lauren Mitrick Chicago

Frank Montro Chicago

Jim Mulvoy Aurora

Todd Musso Virden

Dave Naso Chicago

John Nimmo Anna

Barbara O’Connor Tamara O’Connor Chicago South Elgin

Tammy Anderson Owens

Collinsville

Judy Panozzo Frankfort

Karen Parent Wheaton

Michael Parent Wheaton

Alisa Patterson Byron

Doug Payne Smithton

Christine Pepmeyer Galesburg

Gerald Perlow Lincolnwood

Ted Popov Carbondale

Stefanie M. Pratt Champaign

Michael Prodehl Orland Hills

Dawn Purple Peoria

John Purple Peoria

Linda Rayho Edwardsville

Larry Reedy Elmhurst

Joseph Reposh Joliet

Elaine Rhodes Godfrey

David Richert Aurora

Matthew Rittof Plainfield

Roger W. Roddy Swansea

Lisa Klein Rossow Marengo

Edward Ruettiger Plainfield

John K. Rutledge Wheaton

Cheryl Ruzich Herrin

ILLINOIS REALTOR® January 2015

STeRLINg “R”s ($1,000) continued

Sandra Ryden Moline

Dan Sale Springfield

Rob Schaid McHenry

Mike Scobey Chicago

Ronald G. Sears Chicago

Linda Shafer Mokena

Brandon Shaffer Bloomington

Margery Shinners Downers Grove

Pradeep Shukla Des Plaines

Vicky Silvano Chicago

Matt Silver Chicago

Jim Sim Mokena

Michael Simpson West Dundee

Margie Smigel Chicago

Gail Spreen Chicago

Ginger Sreenan Rockford

Madelyn Staack Fox Lake

Connie Stellhorn Belleville

Gary T. Stittgen Libertyville

Winnie Stortzum Arcola

Dede Strano Belleville

Akos Straub Chicago

Teresa Stultz South Elgin

Julie Sullivan Springfield

Laura F. Swinden Libertyville

Dan Tatum O’Fallon

Len Taylor Springfield

Nick Taylor Mahomet

Russ Taylor Mahomet

Catherine Terpstra Naperville

Jennifer Teske Collinsville

Sheila Thomas McHenry

Dave Thompson Marion

Tricia Tialdo Belleville

Kristie Tindall Decatur

Phil Trautman Champaign

Terri Trotter Earley Plainfield

Marty Trunk Bloomington

Kevin Van Eck Chicago

Erika Villegas Chicago

Bryan Vogt Swansea

Steve Volkodav Northbrook

James L. Votanek Barrington

David Wolf Chicago

Lorrie (Palladini) Wu Peoria

Allan R. Young Springfield

Stephen Snyder Bogdan Sokolowski Bloomington Chicago

Photo Not Available Kim Tumas Frankfort

Patrick Turner Chicago

Vicky S. Turner Dixon

Martin Walsh Winnetka

Sarah L. Ware Chicago

Carolyn Weinert Saint Charles

Chuck Wiercinski Sue Wiskowski-Fair Park Ridge Aurora

Rockford Chapter

Ray Zabielski Naperville

Deena Zimmerman Chicago

30 www.illinoisrealtor.org

GOVERNOR’S CLUB ($500-$999) Jim Barr Debra Bell Debbie Borgwald Robert Bray Fran Broude Joe Castillo Laurie Christensen Mark Coleman Chad Cox Nancy Crowder Valerie Curry Cheryl Dambacher Ryan Deiss Joe Doolin JP Doolin

Hank Erwin Antje Gehrken Mark Haeffele Jane Hay Sam Hazleton Lawrence Hines Matt Horn Tom Joseph Timothy Kearney Mary Ann Knell Jonathan Krause Brad Krueger Michelle Largent Neil Malone Dondi Maricle

Laura Martin Roger Massey Colleen McLaughlin Joyce Meiser Roberta Monson Charles Montgomerie Paula Nabb Scott Newman Cheryl Nolden Northwest Bank Karen Pence Wayne Powell Jeanette Pritchard Rob Reuter Dean Rouso

Gay Schaake Stacey Schneidewind Kendra Sipes Jeffrey Speer Karen Stailey-Lander Gregory Staton Michael Staton Ruta Susinskas Susan Temple Joanna Theismann Gabriel Velixaru Melissa Vorreyer Bobbi Jo Ward Beverly Whipple Neal Wood

Brian Wood Tricia Yocum Kathy York Sara Young Illini Valley Association of REALTORS® Quad City Area REALTOR® Association Women’s Council of REALTORS® Chicago Chapter

Julie Kellenberger Dale Klockenga Wendy Kolbus Thomas Krieger Wayne Kurchina Mary Ann Ladendorf Corey Leach Constance Legris Michael Lescher Linda Linder Jeff Lochbaum Jon Loquist Christin Luckman Michael Lullo Ed Mahoney Brandie Malay Barbara Manka Chris Marek Debbie Maue Sheri McAdams Max McComb Judith McConville Lynn Merritt Kerby Metropolitan Title Agency Wendi Mielke Mark Mielnicki Catherine Miller Andrea Miller Christopher Mitchell Dotty Mitchell

Ira Mizell Gary Mueller Donna Munson JR Obrecht Jared O’Brien Kathy O’Brien Boston Richard O’Connor William Offerman Francis O’Malley Kimberly Overholtzer Heather Oyler Alex Pappas Tammy Parzygnat Grigory Pekarsky Becky Peterson Paula Pezza Nykea Pippion-McGriff PNC Mortgage Paul Polarek Kathleen Powers Kazimierz Przybysz Tyler Ragan Southwest Realty Board Kenneth Redeker George Relias Lois Rowland Katie Ruthstrom Michael Santanello Swati Saxena James Schaid

Christine Schroeder George Schultz George Shanley Karen Sheesley Carol Shields Harsha Shukla Sandra Slingsby Shirley St Germaine Bruce Steinke Connie Stelling Peter Steward Robert Straka Molly Surowitz Travis Tarrant Camill Tedrick Annette Thompson Underwriters Title Jacquelyne Turner Melanie Walker Ginger Westin Glenda Williamson Penny Wilson Donna Wood Suzanne Wood Greg Yount Northern Illinois Commercial Association of REALTORS® West Central Illinois Association of REALTORS®

CAPITOL CLUB ($250-$499) Jim Ahring Daniel Alcorn Jean Anderson Paula Anderson Susan Anderson Lisa Anger Joy Baez Zack Baker James Banks Connie Beard Denise Becker Caitlin Behrends Aimee Bick Blackhawk State Bank Kristin Blankenship Jeanie Blue Liz Bradbury William Brady Colleen Brinkoetter Peggy Brown Shannon Burke Kristen Butcher Gerard Canavan William Coduto Diane Cote Seth Couillard Sidney Crane Timothy Cunniff Heather Cunningham Nancy Dahlberg

Matthew Dammerman Tina Davidson Chris Dixon Ronald Duff Betty Ebert-Rylko William Ehlers Kimberly Elliott Kristie Engerman Suzie Fessler Neil Freeman Tyler Fuhr Sonil Gehani Judy Glenn Joanne Gross Thomas Hall Jay Hein Rebecca Hendricks Janet Hibbs Linda Holt Marsha Hudson Richard Hunt Alyssa Husfield John Hybl Kay Johnson Thomas Jones Janet Jordan Janet Jurich Marshall Kaisner Lance Kammes Jeff Kellenberger

In 2014, Illinois RPAC achieved the coveted "Triple Crown Award" for the first time in our fundraising history due in large part to the "1,000 Points of Light" RPAC Ambassador Campaign which helped boost participation in RPAC from 22% in 2013 to 28% (goal) in 2014. In total, 128 IAR members pledged and secured at least 10 non-investors to invest at least $20 in RPAC. Ambassadors who are also Major Investors or Capitol/Governor's Club members show a blue star by their photo/name. We also thank these RPAC Ambassadors for reaching out to non-investors, educating about the importance of RPAC to the business of real estate, calling and asking for others to give their "fair share" to RPAC. Ahmed Badat Jeff Barkstall Michael Collins

Linda Dressler Marilyn Glazer Maureen Greenawalt

Howard Handler Kristine Heiman Betty Jackson

Hasime Jashari Kristen Jungles Kris Keller

Tiff Krause Cindy McDowall Rachel Neally

Dianna Ocheskey Wayne Paprocki Mark Pasquesi

Ginny Sylvester Joni Utnage

Disclosure: Contributions are not deductible as charitable contributions for federal income tax purposes. The Illinois REALTORS® Political Action Committee (RPAC) collects contributions from members of the National Association of REALTORS (NAR) for political activities. A portion of each contribution will be used for state political activities; at least 30% will be used for federal campaign purposes. The federal portion will be charged against an individual’s federal contribution limits under 2 USC 441a. Contributions are VOLUNTARY and refusal to contribute does not affect membership rights. A member may contribute more or less than the suggested amount. A copy of our report filed with the State Board of Elections is (or will be) available on the Board’s official website www.elections.il.gov or for purchase from the State Board of Elections, Springfield, Illinois.

Colleen Wilcox Pam Wilken

www.RPACnow.com

ILLINOIS REALTOR® January 2015

Illinois GRI Turns 50 In 1964, the leadership of the Illinois Association of REALTORS® decided better training was needed for the growing real estate industry. That year, the Graduate, REALTOR® Institute designation was launched in the state, and on Dec. 1-4 IAR members celebrated the training course’s 50th anniversary. The event was held where the course began, at the Pere Marquette Hotel in Peoria, and it attracted hundreds of some of the best real estate professionals in the state. Honored at the event was former IAR Director of Professional Development Wayne Edwards, who was an integral part of staging the training during his more than 30 years with the association. The GRI Graduate Course was named in his honor at a Dec. 3 celebration which featured the band Jammsammich.

Wayne Edwards, former IAR director of professional development, gets a standing ovation as he is honored at the GRI celebration Dec. 3, 2014, in Peoria. The GRI Graduate Course was named in Edwards’ honor.

Participants listen during a presentation at the GRI Graduate Course. Hundreds of Illinois REALTORS® took part in the specialized training.

32 www.illinoisrealtor.org

Lynn Madison is honored for 20 years of service as an instructor for GRI.

Julie Roth, outgoing dean of GRI, is honored for her service by 2015 GRI Dean Rick Hanselman. The award was given at the GRI 50th anniversary celebration in Peoria.

GRI grads take part in a contest to determine who had the designation for the most years. The winner of the contest was John Guio (standing, left) a 1977 GRI graduate who got a $50 gift card.

MARKET WATCH By Dr. Geoffrey J.D. Hewings | Director of the Regional Economics Applications Laboratory of the University of Illinois

2014 HOUSING MARKET CONDITIONS AND A LOOK AHEAD TO 2015 The Current Market

In 2014, median prices grew with continuing strong momentum while sales slowed. Prices showed robust positive growth in Illinois, where annual growth rates of each month varied between 4.4 percent and 13.4 percent, and the Chicago nine-county market, where the comparative range was between 5.4 percent and 17.7 percent. As for sales, the strong momentum in 2013 disappeared in 2014. In 2013, both Illinois and the Chicago PMSA experienced solid two-digit annual gains varying between 15.3 percent and 39.1 percent in each month. Not surprisingly, the sales growth achieved in 2013 — the highest since 2008 — would be hard to match. In 2014, sales growth was far more modest, between -9.2 percent and 9.9 percent for Illinois and between -12.0 percent and 10.1 percent for the Chicago PMSA. A significant drop in foreclosed property sales was a primary factor in the decline in overall home sales in 2014. In the Chicago PMSA, monthly regular sales changed by -7.7 percent to 5.6 percent from a year ago, while foreclosed sales decreased by 14.3 percent to 30.3 percent. As for median sales prices, both foreclosures and regular property sales contributed to robust gains in overall median prices. Foreclosed properties and regular properties respectively experienced year-over-year gains by 5.0 percent to -14.2 percent and 2.8 percent to -18.8 percent respectively since the beginning of 2014.

Forecast for 2015 Market Conditions

Median prices are forecast to continuously grow in 2015 but at a slower pace than 2014. On a year-over-year basis, these gains will range from 5.5 percent to 10.1 percent for Illinois and 3.7 percent to 8.7 percent for the Chicago PMSA. By December 2015, the median price is forecast to be $169,878 in Illinois and $199,021 in Chicago PMSA, an annual gain of 8.4 percent and 8.6 percent respectively. As a complement to the median housing price index (HPI), the REAL HPI forecast indicates more mixed growth trends in the months ahead. In Illinois, the REAL HPI (Jan 2008=1) is forecast to experience a growth rate between -3.5 percent and 6.9 percent for Illinois and -4.5 percent to 9.5 percent for the Chicago PMSA. REAL HPI takes housing characteristics into account and constructs comparable “baskets” of homes for each month. Sales are forecast to see more positive gains in 2015 compared to the sluggish growth in 2014. Annual growth in monthly sales is forecast to be between 1.94 percent to

“Sales growth did not match the amazing numbers in 2013, but the growth in both sales and prices continued to be positive in both Chicago and Illinois. Robust job growth has resulted in more upbeat consumer sentiments about the economy. “The forecasts suggest both positive growth for sales and prices in 2015 but with a moderation in the growth of prices and a slight acceleration of sales rates compared to 2014.”—Hewings 15.81 percent for Illinois and -0.27 percent to 13.22 percent for the Chicago PMSA. If foreclosed sales are excluded, regular property sales in the Chicago PMSA will grow in a lower range between 1.09 percent and 6.65 percent. According to the latest Freddie Mac Multi-Indicator Market Index, the Illinois housing market has recovered by 29.2 percent compared to the historic low recorded in November 2011 and now ranks 46th among all states. The Chicago recovery rate is 42.3 percent, ranking 44th out of 50 Metro areas. The local employment situation has improved in the past three months, while home purchase applications, payment-to-income ratios and portion of on-time mortgages are still weaker than their historically stable levels.

Find the full forecast at www.illinoisrealtor.org/marketstats

ILLINOIS REALTOR® January 2015

REALTOR® COMMUNITY FOLLOW US:

IAR Earns RPAC Triple Crown Award Thanks to all the IAR members who invested in RPAC in 2014 and helped IAR achieve the RPAC Triple Crown Award for the first time. Illinois earned the prestigious honor after meeting or exceeding RPAC goals for overall participation, fair share, Major Investors and President’s Circle. IAR was honored during the 2014 REALTORS® Conference & Expo in New Orleans in November.

REALTORS® In The Swing in New Orleans Illinois REALTORS® and leaders attended the REALTORS® Conference & Expo and National Association of REALTORS® governance meetings in New Orleans in November.

Check out the hair and go-go boots from GRI in 1971

GRI Celebrates 50 Years Illinois’ Graduate, REALTOR® Institute has come a long way since it began in 1964. Fifty years ago, 231 real estate professionals from throughout Illinois gathered in Peoria to enhance their knowledge. The program grew and today, the GRI program is one of the premiere professional designations a REALTOR® can earn. Happy 50th GRI! See page 32 for event photos.

Government Affairs Forums Draw REALTORS® and Lawmakers REALTOR® Government Affairs Forums held in the fall provided Illinois REALTORS® a chance to meet and inform local officials, state legislators and members of Congress. Forums were held at the Mainstreet Organization of REALTORS® and the Three Rivers Association of REALTORS®.

(l to r) State Rep. John Anthony, R-Plainfield, Local GAD Tom Joseph and State Rep. Emily McAsey, D-Lockport

Kudos to Commercial Real Estate Stars Dan Wagner, Vice President of Government Relations for The Inland Real Estate Group in Oak Brook, and Sandra Hamilton, of RE/MAX Professionals in Springfield, who were honored at the 2014 REALTORS® Conference & Expo for excellence in commercial real estate. Dan Wagner Sandra Hamilton

34 www.illinoisrealtor.org

! V E TE SA DA

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P 6 hrs. CE P Business Expo P Referral P Expert Speakers Networking

Ashton Gustafson

Lynn Madison

Joe Niego

Chris Read

Betsy Urbance

Terry Watson

“We’ve Got it All Backwards”

1. Core A CE Session 2. Professional

“5 Steps to BIG Production”

Professional Standards Breakfast

IAR Legal Update

1. “The Yelp Effect -

Standards Breakfast

Pleasing The Empowered Customer” 2. Elective CE Session

12/2/2014 3:59:25 PM

ILLINOIS REALTOR® January 2015

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