Illinois REALTOR® July 2020 by Illinois REALTORS®

THE VOICE FOR REAL ESTATE IN ILLINOIS

JULY 2020

Virtual agents Taking home tours and the transaction online Use storytelling to attract buyers Finance moves to make now

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THE OFFICIAL PUBLICATION OF ILLINOIS REALTORS® ILLINOIS REALTOR® July 2020

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TABLE OF CONTENTS JULY 2020

04 Inside Track

Stand out from your competition

Making the Best Virtual Tours

Use your own style to develop a winning brand

Commercial real estate recalibrates

05 President's Message

Looking ahead at our ROI: Revitalize, Opportunity and Influence

06 Quick Takes

• Small-space fatigue could prompt consumers to think bigger • Nine REALTORS® reach RPAC milestones • Best exterior paints for home sellers

9 Legal Update

Hot topics on the Legal Hotline

28 RVOICE

Advocating local government policies to keep housing on track

30 Outreach

COVID-19 can’t curb Outreach connections

32 At the Capitol

Global health crisis shortens spring session

34 Weave a great story and watch buyers’ imaginations ignite

35 Community Finance moves to make now

ILLINOIS REALTOR® July 2020

INSIDE TRACK What strategies do you use to stand out from your competition?

ILLINOIS REALTORS®

THE VOICE FOR REAL ESTATE IN ILLINOIS 2020 OFFICERS President Ed Neaves eneaves@thesnydercompanies.com President-elect Sue Miller, ABR, BPOR, C2EX, CRB, CRS, GRI, ePro, LTG, PMN, SFR, SRS smiller001@aol.com

"Video is a huge part of my marketing strategy. Not only for houses, but for my brand. Consistent use of listing videos, market update videos, and Instagram stories allows viewers to see my personality, values and attitude when faced with all aspects of the real estate roller coaster."

Treasurer Ezekiel "Zeke" Morris zekemorris@zekemorris.com Chief Executive Officer Gary Clayton, CAE, RCE Deputy Chief Executive Officer Jeffrey T. Baker

Monica Bullington

RE/MAX Rising, Bloomington

Executive Vice President Kristen Butcher, CMP Senior Editor Stephanie Sievers

"Anticipating the needs and concerns a client may have is one of my best business strategies. In such a fast-paced real estate environment, clients can easily become overwhelmed. My process includes templates, road maps and frequent check-ins to stay in front of any issues, as well as being an advocate and providing that friendly reminder when needed." Sheena Baker

CarMarc Realty Group, Aurora

DON’T MISS Important News from Illinois REALTORS® Your members-only benefits include our digital resources, such as...

Graphic Designer David Hine For advertising information contact: Advertising & Sponsorship, 217-529-2600, info@IllinoisRealtors.org ILLINOIS REALTOR® (ISSN 0744-221) is published four times a year during the months of January, April, July, and October by Illinois REALTORS®, Post Office Box 19451, Springfield, Illinois 62794-9451. Periodical postage paid at Springfield, Illinois and at additional mailing offices. Postmaster: Send address changes to: ILLINOIS REALTOR®, Post Office Box 19451, Springfield, Illinois 62794-9451, 217-529-2600. Opinions expressed in any signed articles of ILLINOIS REALTOR® are those of the author and do not necessarily represent the opinions of Illinois REALTORS®. Advertising of product or services does not imply endorsement. Advertising rates are available at www.IllinoisRealtors.org or on request. A nnual dues of every REALTOR®, REALTOR-ASSOCIATE®, and Affiliate member include $3 for a one-year subscription to the ILLINOIS REALTOR®.

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PRESIDENT'S MESSAGE Looking ahead at our ROI: Revitalize, Opportunity and Influence

Ed Neaves

2020 President

If 2020 has taught us anything so far, it is how resilient our members and our industry can be. COVID-19 and the statewide stayat-home order forced us to rethink the way we do business and represent our clients. When we couldn’t meet face-toface, we shifted online and found digital ways to walk clients through properties or finalize their home purchase or sale. REALTORS® are adept at finding new ways to adapt to current needs. At Illinois REALTORS®, we recognize the need to think postCOVID, but as we have seen in the growing movement to finally address structural flaws in our society, we must also think long term about even more profound changes to how we live and work. “ROI” is a common acronym for anyone who is involved in real estate. For Illinois REALTORS®, it is a mantra

that will form the foundation of our programming and leadership not just in the months to come, but into the next year as well. Our goal is threefold:

Revitalize – our businesses, our communities, our state

Opportunity – to grow, to learn and to serve

Influence – to advocate for

homeowners and private property rights

REALTORS® can play a vital role in strengthening our communities and being a force of positive change. ROI: Revitalize, Opportunity and Influence gives you the tools to make that happen and you can find them at www.IllinoisRealtors.org/ROI.

Ed Neaves Illinois REALTORS® President

t In a video to members, Neaves introduces the new ROI resources and encourages REALTORS® to take advantage of this benefit.

ILLINOIS REALTOR® July 2020

QUICK TAKES

67,905

The economic impact of a typical home sale in Illinois in 2019, according to the National Association of REALTORS®. Total economic impact was determined by income generated from real estate industries ($18,315), expenditures related to the home purchase ($4,650), the multiplier of housing related expenditures ($11,023) and new home construction ($33,917). bit.ly/HomeSaleImpact

Choi named 2021 NAR Vice President Association Affairs Tommy Choi, of Keller Williams Chicago-Lincoln Park, has been appointed NAR VP of Association Affairs for 2021. In 2019, Choi served as president of the Chicago Association of REALTORS®.

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Oldenettel elected NAR Region 7 Vice President for 2021

Michael D. Oldenettel, managing broker of RE/MAX Professionals in Springfield, has been elected NAR Region 7 Vice President. The region includes Illinois, Indiana and Wisconsin. Oldenettel was the 2013 president of Illinois REALTORS® and in 2018 was named REALTOR® of the Year.

Small-space fatigue could prompt consumers to think bigger

After months of staying cooped up at home during the COVID-19 pandemic, more people may be rethinking their living spaces and looking to upsize. Toluna Insights and Realtor.com surveyed homeowners this spring and found the top “must-have” feature for their next home will be more space (16 percent) followed by a home with an outdoor area (14 percent). bit.ly/SmallSpaceFatigue

Best exterior paints for sellers?

White and gray top the list

If you have a home seller who is thinking about sprucing up their home with new exterior paint, home improvement experts say white and gray are the most popular colors to boost curb appeal, according to the home improvement site Fixr. Find Fixr’s full 2020 Paint & Color Trends Report at bit.ly/PaintColorTrends2020

Nine REALTORS® reach RPAC milestones

Congratulations to the REALTORS® who reached the $25,000 milestone for lifetime aggregate contributions to the REALTORS® Political Action Committee (RPAC).

Deborah Ahrens

Greater Gateway Association of REALTORS® Dolan REALTORS®

Michael Maloof

Peoria Area Association of REALTORS® Jim Maloof Realty, Inc.

Nicholas H. Apostal

Chicago Association of REALTORS® Keller Williams Chicago-Lincoln Park

Mark Massey

Greater Gateway Association of REALTORS® Berkshire Hathaway HomeServices

Matthew Farrell Chicago Association of REALTORS® Urban Real Estate

Georgia Pierini

North Shore-Barrington Association of REALTORS® Baird & Warner

Dallas Hancock

Peoria Area Association of REALTORS®

Debbie Prodehl

Mainstreet Organization of REALTORS® Coldwell Banker The Real Estate Group

Illinois REALTORS® Greg St. Aubin reaches RPAC $50,000 milestone ILLINOIS REALTOR® July 2020

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LEGAL UPDATE Hot topics on the Legal Hotline

Repercussions for violating Just Housing, virtual tour commission questions and collecting rent after a lease expires What are the potential repercussions to violating the Just Housing Amendment recently passed in Cook County?

Anneliese Fierstos Illinois REALTORS® Legal Hotline Attorney

Have a legal question?

Illinois REALTORS® Legal Hotline is the Designated REALTOR®/ managing broker’s go-to source for legal information. Hours: 9 a.m. - 4 p.m. Monday – Friday Phone: 800-952-0578 Email: afierstos@ IllinoisRealtors.org.

The Just Housing Amendment (“JHA”) is a local ordinance in Cook County which went into effect on Dec. 31, 2019. Under the JHA, it is unlawful in Cook County for landlords or property managers to deny housing or change the terms of the rental agreement because of an arrest record, juvenile record, a conviction that has been expunged, sealed, or pardoned or a conviction. (See Section 42-38 of the Cook County Civil Rights Ordinance). It also affects how landlords advertise their rental listings in Cook County. For example, housing providers may not say “no felons,” “no convicted drug dealers,” “no criminal history,” or “no arrest history” in their advertisements. Under the JHA, before accepting an application fee, a housing provider must now disclose the following information: a) Tenant selection criteria i n writing, which describes how an applicant will be evaluated; b) Applicant’s right to provide evidence demonstrating inaccuracies relevant to conviction history, evidence of rehabilitation, or other mitigating factors; and c) A copy of the Cook County Board of Commission’s procedural rules or the link to commission’s website: bit.ly/Illinois_JustHousing Once the application fee is accepted, housing providers must follow a twostep process, under which an inquiry into an applicant’s criminal background can only be made after the initial financial and tenant history application criteria is considered.

The process for compliance with the JHA can appear to be both cumbersome and intimidating to landlords and brokers. However, all parties should consider reviewing the new provisions, and consulting with their attorneys about adopting procedures that assure compliance a nd consistency when screening applicants. On the surface, the penalties for violating the J HA provisions might not appear significant. The amendment provides for penalties including complainant’s compensatory damages, attorneys’ fees and Commission fines. Although some may consider the threat of Commission fines to be worth the risk of violating the JHA, the compensatory damages and attorneys’ fees could be very significant. For REALTORS®, there are even more potentially significant repercussions. The provisions of the JHA are stricter than the Illinois Human Rights Act because it protects applicants with a conviction from having that criteria even being considered in the initial evaluation of an applicant. But, if a violation of the JHA were to be considered a violation of the Illinois Human Rights Act and/or a violation of the Real Estate License Act (RELA) prohibiting illegal discrimination, penalties are potentially severe. Section 20-50 of RELA specifically prohibits illegal discrimination by licensees and provides for possible suspension of revocation of the offender’s license: Sec. 20-50. Illegal discrimination. When there has been an adjudication in a civil or criminal proceeding that a licensee has illegally discriminated while engaged in any activity for ILLINOIS REALTOR® July 2020

which a license is required under this Act, the Department, upon the recommendation of the Board as to the extent of the suspension or revocation, shall suspend or revoke the license of that licensee in a timely manner, unless the adjudication is in the appeal process. When there has been an order in an administrative proceeding finding that a licensee has illegally discriminated while engaged in any activity for which a license is required under this Act, the Department, upon recommendation of the Board as to the nature and extent of the discipline, shall take one or more of the disciplinary actions provided for in Section 20-20 of this Act in a timely manner, unless the administrative order is in the appeal process. (Emphasis added). Additionally, RELA Section 20-20a (31) also prohibits “[e]ngaging in any act that constitutes a violation of any provision of Article 3 of the Illinois Human Rights Act, whether or not a complaint has been filed with or adjudicated by the Human Rights Commission, and provides that a violation could result in a suspension or revocation of a license. The bottom line is that repercussions for violating the JHA could lead to both significant financial penalties as well as a suspension or loss of your Illinois real estate license. For more general information about the JHA visit the Illinois REALTORS® web page: bit.ly/IllinoisRealtors_ JustHousing

REALTORS® can play a vital role in strengthening our communities and being a force of positive change. ROI gives you the tools to make that happen and you can find them at

www.IllinoisRealtors.org/ROI. 10

www.IllinoisRealtors.org

In response to an inquiry from a buyer, I obtained and provided a link to a virtual tour of a home that was on the market. The home could not be shown in person due to the restrictions associated with COVID-19. The buyer viewed the home through the link that I provided and used another REALTOR® to make an offer on the property. I am the REALTOR® who obtained the video link from the listing agent and provided it to the buyer. Am I the procuring cause of the sale of the property and entitled to a commission? The answer is maybe. However, there is no bright-line rule that helps to determine the procuring cause in the sale of a property when there is an offer of compensation made through the MLS. Initiating a chain of events that leads to the sale of a property, like sending the video link, does not automatically support a claim that a REALTOR® is the procuring cause. This would apply even in these unusual times in which faceto-face interaction may not occur in the showing of a property. While not verbatim from the National Association of REALTORS® (NAR) “Code of Ethics and Arbitration Manual,” the definition goes something like this: The procuring cause will be the agent who not only originated the chain of events, without abandonment (agent leaving client) or estrangement (client leaving agent), that leads to the successful sale with that buyer. The successful sale is generally defined as one that closes with that buyer. The Legal Hotline cannot offer any opinion on who might be the procuring cause in a sale because there are too many factors to consider. Many of these claims require settlement among the parties, mediation or arbitration to reach a final conclusion. An arbitration hearing panel would need to consider all the facts and circumstances presented by both sides of the argument and determine

who best fits within the definition of procuring cause. NAR produced a 17-question “Arbitration Worksheet” available at bit.ly/NAR_Ethics_ ArbitrationWorksheet that lists pertinent questions for the panel to ask in a hearing. The worksheet features guidance for panel members to consider when deciding who best fits the definition of procuring cause.

I am a property manager and I have tenants who stayed in the property past the end of their lease term. Am I able to collect additional rent for the time period that they held over? The lease has a clause that provides that additional fees may be charged any tenant (three times the monthly rent) that unlawfully remain in the property after the termination or expiration of the lease. Will I be able to collect the additional fees?

On March 20, 2020, the governor issued an Executive Order which included suspending residential evictions until the declared state of disaster ends. The order does not state that landlords or property owners could not collect rent during the state of disaster, or that they could not charge tenants for any hold over period past the term of a lease. If a tenant stopped paying rent during the pandemic period, they are generally still responsible for meeting the terms of their lease agreement. The landlord or property owner could negotiate a month-to month lease agreement to cover the time period during which it was difficult to move due to the “stay-at-home” order. However, the question of whether a landlord can invoke any contingency provisions in a contract which penalizes the tenant for holding over during the pandemic require a case-by-case analysis because the final conclusion will depend upon the terms of the lease as well as other specific circumstances.

Under normal circumstances, courts in Illinois strictly interpret contracts and, in the absence of a clear intent to excuse or delay performance under certain circumstances (e.g. pursuant to a force majeure clause) a court would be reluctant to excuse or delay the obligation of a tenant to pay rent. If the lease contains a force majeure clause that includes an epidemic or pandemic among covered hazards, that may support a tenant’s argument that they could be excused from their contractual obligations from any holding over penalties in the lease. The term force majeure is understood to encompass acts of nature (e.g. floods or tornadoes), and acts of man (e.g. war). In the context of a legal contract, a force majeure clause addresses circumstances in which contractual performance becomes either impossible or impracticable because of events that could not have been foreseen. Force majeure clauses generally do not

provide for termination of an agreement. However, they may suspend a party’s obligation to perform under the agreement (usually only for the duration of the force majeure event). The language of the specific force majeure provision is the key factor in determining whether the clause will apply in the current pandemic situation. In some contracts, the provisions may expressly exclude pandemics or global health crises from the application of the force majeure clause, while others expressly include such health events, and others are silent on the issue. Landlords and property managers should review their lease agreements with legal counsel to determine if there is a force majeure clause and how it may impact their ability to enforce the terms of the lease when the declared state of disaster ends. Even if a lease or other real estate contract does not contain a force majeure clause, there is another legal theory that has been recognized in Illinois which may allow courts to excuse obligations

of tenants (or other parties to a real estate contract). That is the “doctrine of commercial frustration.” The doctrine might be employed to argue that a contract is unenforceable if a party’s performance under the contract is rendered meaningless due to an unforeseen set of circumstances. A party who seeks to excuse performance under the doctrine must satisfy a two-part test: (1) the event that has caused the commercial frustration must not have been reasonably foreseeable; and (2) the value of the parties’ performance must be totally, or nearly totally, destroyed by the intervening event. In applying the test, a court will consider many factors including whether the purpose of the contract (and any penalty clause for holding over) was destroyed as result of COVID-19. Housing providers seeking to enforce the terms of a lease agreement, including a penalty clause, should consult with their attorneys.

ILLINOIS REALTOR® July 2020

Making the Best Virtual Tours By Lee Nelson

yan Gorman got his real estate license 20 years ago. “I thought I needed something a little extra for my business,” says Gorman, a broker at Campo Realty Inc. in Pawnee. So, a few years after becoming an agent, he looked into virtual tours and invested in a nationwide company called Real Tour Vision (RTV, Inc.). With that company's software and platform, he opened up his own photography and virtual tour business, 360 Through the Door Virtual Tours, while still being a REALTOR®. When the pandemic stopped Illinois REALTORS® from holding open houses, Gorman received an increase of more than 25 percent in requests from real estate agents wanting his video and virtual tour service. Virtual tours used to be reserved for some of the most luxurious and large properties. But experts believe this

Ryan Gorman 12

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Robert Koenekamp technology will become the norm from now on with most homes, despite their price or location. Clients will expect it. Even before COVID-19, 46 percent of home buyers found virtual tours very useful, according to the 2019 NAR Home Buyer and Seller Generational Trends Report. “A virtual tour can be interactive by adding in amenities in the area that you can’t get in photographs,” Gorman says. “You can click and get a nice brochure. You can highlight so much inside and outside the house that just photographs can’t capture.” The price depends on the size of the home and the company doing the filming. Virtual tours can be done in a variety of ways – depending on an agent’s budget, time, technology skills and preferences of the seller. The agent can create the video with a smartphone or specialized 3D camera or hire it done.

Ways to create and use virtual tours

One of the easiest ways to show off a home virtually is to get out the smartphone and start recording while walking through each room. With permission from the seller, agents can use this as a live virtual open house, showing it on platforms such as FaceTime or Zoom where permitted viewers can ask questions along the way. A video can also be made to stream on the agent’s website and other sites.

“You can be creative and buy a Samsung camera for $150,” says Robert Koenekamp, CEO and founder of Aerial Look. “You can get 360-degree views, still photography and videos for your listing all out of one camera.” His company, headquartered in North Carolina, has been pioneering 3D, virtual reality, and drone technologies on America’s East Coast, China, Dubai, and London. About six years ago, Koenekamp bought a Matterport 3D camera, which had just been created to offer 360-degree views in a video. He spent eight months on the road introducing the new technology to REALTORS®, developers and others across the country. “But it’s never been an easy sell until now,” he says. “Some agents still don’t really want it, but their clients want it and ask for it.” He admits no one wants to spend extra money. But virtual tours can be cheaper than photography. “It’s definitely for the forwardthinking REALTOR® out there. When you are supposed to serve the client, but you don’t implement the right solutions available, it’s a disservice to your clients and your brand,” he adds. Recently, Frank Pavone had more phone calls, website traffic, and other inquiries about 3D virtual tours. He owns and operates Virtual Vista LLC in Oak Brook. He got his real estate license about six years ago. But shortly

after getting into real estate, he began photographing listings for other agents in the office and ended up growing it into a successful business. He offers a series of services including Matterport 3D virtual tours, aerial photos and videos, floor plans, virtual staging and HD photography. With a single scan, a Matterport camera creates 3D walk-throughs, photos, floor plans, videos and more. “I don’t think people will go back to pre-COVID ways anytime soon. People are not going to want everyone walking through their house,” he says. When using virtual tours, REALTORS® look more professional, Pavone adds. Ninety percent of agents using virtual tours say it helps them build a stronger brand in the marketplace, and 95 percent of people are more likely to call about homes with 3D walk-throughs, according to a Matterport survey.

Virtual tours becoming commonplace

Frank Pavone

When the option for in-person open houses was off the table this spring, live virtual open houses became the only way to get people’s eyes inside the home besides private showings. “We adapted to virtual open houses. We are seeing agents in our area adapting to the technology,” says Kendra Sipes, a broker with The Knell Group of Coldwell ILLINOIS REALTOR® July 2020

Virtual home buying Besides being able to view homes with virtual tours, homebuyers and sellers have more digital options these days to stay safe and have more conveniences. “Most of it can be done digitally, but the inspectors and appraisers still have to do their jobs in person,” says Niko Apostal, principal broker at The Apostal Group at Keller Williams Chicago-Lincoln Park. “Everything else can be done virtually,” he adds. “We have digital contracts, digital closings, and notarizations being done digitally. Ninetyeight percent of closings can be done upfront digitally.” At the end of March, Secretary of State Jesse White and Gov. J.B. Pritzker partnered to temporarily allow Illinois notaries public the authority to perform remote, online notarizations during the COVID-19 pandemic under the governor’s executive order. Notaries can use real-time electronic technologies with audio and visual communication. When the stay-at-home rules began in the state and real estate became an essential business, Kendra Sipes, an agent with The Knell Group of Coldwell Banker Real Estate Group in Peoria, says her agency put together an entire Virtual Buyer Experience guide on its website. The information explains everything available digitally to allow people to search and view homes, put in offers and eventually close 14

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on their dream home without being in a room with a bunch of people. The guide helps buyers understand all their digital options including showing homes virtually in several ways, wiring earnest money*, using electronic signatures, viewing live walk-throughs with inspectors, moving to paperless with many lenders and the evolving capability of off-site closings. “The COVID-19 pandemic has really forced all of us as REALTORS® and consumers to adapt to new technologies much quicker than we were originally anticipating,” she says. She believes a lot of great things have come out of this new way of doing business. “We are anticipating that a lot of buyers and sellers will continue to utilize new technologies and more virtual experiences going forward even when the shelter in place and restrictions are removed,” she adds.

*Legal Note: Be aware of wire fraud attempts any time money is being wired, especially during this time. Bad actors insert themselves into the transaction, typically by using email addresses that look almost exactly like the actual emails in the transaction group. Verify email addresses and any wire instructions by calling a known contact on a known number to be sure everything is accurate. Find resources to protect yourself from cybercrime at www. IllinoisRealtors.org/Legal/LegalA-Z/ Cybercrime

Kendra Sipes Banker Real Estate Group in Peoria. She also serves as the 2020 Peoria Area Association of REALTORS® President. “It was on their list, but now it’s forced on them to get it done,” she adds. She has some agents purchasing their own Matterport 3D cameras. Some just use their smartphones. “This is becoming the norm,” she explains. “Right now, virtual tours or 3D tours are an additional service to the seller. They don’t have so many people coming through their houses.” But with virtual tours growing in popularity, brokers will have to develop the content around those listings on a much deeper level, says Niko Apostal, principal broker at The Apostal Group at Keller Williams Chicago-Lincoln Park. “The expectations will be more and more if you really want to attract a buyer. You have to generate some serious content especially in super competitive areas,” he says.

Niko Apostal

For instance, you can be standing near the blazing fireplace with a cocktail in your hand and set the stage of what can be done with a space.

Other technologies to choose

Not only can you make your own virtual tour or pay someone else to create tours for your clients, you can also offer your clients other add-ons to enhance the look of the listing and intrigue more buyers. Virtual staging – This is when furniture and accessories are added virtually to an empty room. You can also take a room with furniture that’s outdated, virtually remove it and then add in newer furniture, Pavone says. Dollhouse view –The Matterport 3D camera allows you to offer a dollhouse image of the space. It shows the entire home as if it were a dollhouse giving you the angles and the flow from one room to another. “It’s a much better way of showcasing the size and shape of the home,” says Apostal. Drone virtual tours – The advantages to having drone videos for the outside of the home comes down to information. “If you have a house near schools, a park, pond or golf course, the aerial view is very good for that,” Pavone says.

Making virtual tours sizzle

Whether you plan on hiring someone to do your virtual tours for you or you use your own camera, the experts have some tips to make everything better. 1. Offer the dollhouse view. “I get a lot of requests for this,” Pavone says. “It’s such a great way to see the layout of the house.” 2. If you make the video yourself, make it buyer-driven not agent-driven, Koenekamp says. “Everyone is afraid they might say something wrong. But consumers love realism.” 3. Have professional equipment if doing it yourself. “It is just more elevated and can create a real

showcase,” says Sipes. You need good editing techniques, a stabilizer if you are walking while doing a video, good lighting for the tour, and a good microphone. 4. Keep each virtual tour as short as possible. “If you are doing it live, just do a 10-15 minute segment, then shut it down,” says Apostal. “You can save each segment as videos on your website or other sites. Viewers can ask questions on your chat box.” 5. Make sure the property is decluttered, blinds and shades open, and all lights are on before filming. “You will probably spend 30 minutes getting the home ready even after the homeowner prepped for it,” Gorman says. “I don’t know if virtual tours will net a REALTOR® more money,” Sipes says. “But it will help with how many days the home is on the market, and maybe it will help buyers narrow down and focus on properties they are more interested in for actual showings.” About the writer: Lee Nelson is a freelance writer in Illinois. She can be reached at leenelson77@yahoo.com.

Editor’s Note: Illinois REALTORS® does not endorse the companies or products mentioned in the article. REALTORS® are encouraged to make their own informed decisions on products for their business. Also, make sure you get proper permissions from the seller to use these staging technologies, proper authority or license to the use them and understand the extent of that use if they are offered by third parties and not something you create yourself. ILLINOIS REALTOR® July 2020

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Weave a great story and watch buyers’ imaginations ignite By Bridget McCrea

How REALTORS® are thinking beyond the basic “three bed/two bath, two-car garage” property descriptions and using creative content and storytelling to show what makes their listings unique.

Julie Bielfeldt Each house can have a story to tell and Julie Bielfeldt, a broker with Keller Williams Premier Realty in Peoria, is one Illinois REALTOR® who looks beyond the traditional listing description. Inspired by Vogue’s “73 Questions Answered by Your Favorite Celebs” article format, where interviewees are asked to answer a series of rapid-fire questions,

Bielfeldt decided to truncate the approach when listing a home once owned by Murray Baker, who is responsible for bringing the Caterpillar plant to Peoria. About 11 minutes in length, “37 Qs at the Mansion on Moss,” features an interview with the current homeowner who talks about how long she’s lived there (53 years), the best aspect of certain rooms (e.g., “beautiful cross breezes when enjoying a coffee on the terrace”), and whether she found any treasures in the home (a travel trunk owned by Baker). “The home is basically my celebrity, with the owner walking me through all of the property’s best features,” says Bielfeldt, who is now working on another 37-questions video for another listing. “I think I’ve started a series here.” “It’s about going beyond the statistics,” she says, “and getting the word out in interesting ways.”

Activating the buyer’s imagination

The real estate industry has come a long way since the days of old MLS books and print advertisements that were brief, to the point and about three lines long. The web has created the opportunity to go beyond the basics and really show buyers what it would be like to own a specific property, but many agents still stick to the old fundamentals. Agents who skip the storytelling are doing themselves a disservice, says Eduardo Martinez, marketing director at Rose Rock Realty in Moore, Okla. For example, this verbiage may be commonly seen on real estate listings: “Single story with garage conversion offering two living areas, three bedrooms, one bath plus an island kitchen. Work is required to make this home move-in ready but could be worth the effort. Whether you decide to customize this home for yourself or rent it out, this house could be a great option.” Martinez says his company prefers a more interesting storyline, like this one (taken from a recent listing description): “Arriving at the home, you are greeted with a large porch to enjoy your morning. Once inside, you will find a large living area centered around the fireplace with plenty of natural light. Past the living room is ILLINOIS REALTOR® July 2020

Eduardo Martinez the kitchen with granite counters, tile floor, oversized pantry, open dining room, and more. Next is the second living area with wood laminate floors and natural light. From there you enter the east-facing backyard with plenty of space for activities and a storage shed. From the living room, you enter the master suite with bathroom which has a separate standing shower, soaking tub, water closet, double vanity, and entrance to the wrap-around closet connecting to the laundry room. Leaving the laundry, you enter the main hallway to find two guest bedrooms, an office and a full bath. Don’t let this opportunity pass you by!” Martinez says his company gets more showing appointments on homes that include more detailed descriptions. That’s because phrases such as “look out the window for a beautiful view of the nearby park” can do more to raise a buyer’s curiosity. “Storytelling is a must when it comes to listing a home because you want potential buyers to imagine themselves living in that home,” Martinez says. “This is your first and best chance to activate a potential buyer’s imagination.”

“It’s like a new release for a movie,” he says, “in that you want to put out a trailer first to stir up some initial interest.” Tapping into a network of top agents in the city, Rowland uses a “coming soon” approach to pique interest. “They know they’re not going to see it on Zillow or Realtor.com, and we use our social platforms, corporate website, and personal websites to strike some early interest,” says Rowland, who uses 3D imaging, videos, photos and market statistics to create a public-facing storyline when the property hits the market. To help prospects envision themselves in the home – a point that’s become more important than ever in light of COVID-19 and social distancing – Rowland embeds information about the nearest coffee shops, grocery stories, pharmacies, eateries, recreational parks and the L-train into his listing description. “In my marketing materials, I always include a map that has the home as the focal point and the starred locations for each of these lifestyle options,” says Rowland, who uses a similar “storytelling” approach with the rental properties that his firm manages, including the three-unit historic home on Janssen Street that was literally the first home on the block.

Giving them what they want

When Jason Rowland, broker at Rowland Group at Compass in Chicago, starts advertising a new listing, he puts on his movie producer’s hat and thinks first about how he can promote it off-market. 18

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Jason Rowland

Maura Neill “There’s a photo hanging in the lobby from the early 1900s that shows the home when it was the only building on the whole street,” says Rowland. “I point to it every time I’m showing the home, knowing that people are always interested in dwellings that have rich historical backgrounds.”

Find what stands out

Maura Neill, founder at Buy Sell Live Atlanta at RE/MAX Around Atlanta Realty in Alpharetta, Ga., sees storytelling as more crucial than ever now that social distancing is keeping people inside and separated from one another. She uses a case-by-case approach with her own listings, some of which are historic. Others come with original building blueprints (which she’s incorporated into her marketing materials), and others still include the property’s original avocado green appliances from the 1970s. To eke the most interesting details out of her sellers, Neill hands out a questionnaire during the listing appointment. Key questions include: What’s your favorite room in the house and why? What are some of the best memories from living in this home? Why is this home special to you? “When someone puts love and care into their home,” says Neill, “those are often the same things that are going to stand out for the next buyer.” Whitney Walker, a real estate professional with Kale Realty in

Chicago, uses a similar approach, asking current owners what attracted them to the property in the first place and what they’ll miss the most once they’ve moved out. The answers to these and other questions help her paint a more accurate, detailed picture for potential buyers who want to view the property online before taking the time to get out and tour in person. “In real estate school, we learned that no two parcels of land are the same, even if the architect drew them identically,” says Walker, “There’s something unique about each property and a good story will describe in detail what sets it apart from the next home.” The details go over particularly well with the digital-savvy Millennial generation, she says, which doesn’t like to waste time on unsuitable options. “Buyers read and watch everything online these days, so we have the perfect opportunity to highlight and showcase the features that set the property apart from other homes in the neighborhood,” says Walker. “That way, buyers know exactly what they’re getting into before even walking in.”

5 tips for telling a great story 1. Know what your audience is looking for.

What do potential buyers want to know about the home that they might buy? What details, information or scenarios can you paint for them with words or images that will help them feel like they’re already living there?

2. Ask sellers for their stories.

Use seller questionnaires, live interviews or just casual conversations to find out what they loved about the house when they bought/built it, and what they’ll miss most about it.

3. Show a day in the life.

For one listing, Neill created a video showcasing the best parts of the home, from enjoying the home’s pool to cooking dinner in the kitchen and ending the night watching a movie in the home theater room.

4. Use different mediums.

Start with your property descriptions, but don’t stop there. For the biggest impact, take your storytelling into your videos, virtual tours and other marketing materials.

5. Create a personalized virtual tour. In this age of social distancing and limited movement, consider offering a personalized virtual tour so buyers can tune in while you virtually walk them through the home and show off its best features.

Whitney Walker About the writer: Bridget McCrea is

a business, real estate and technology writer in Tampa, Fla. She can be reached at bridgetmc@earthlink.net ILLINOIS REALTOR® July 2020

Combining fundamentals with your own style to develop a winning brand By Bill Kozar, Content Marketing Specialist

Illinois Young Professionals Network

Illinois YPN Chair and REALTOR® Eddie Ruettiger served as moderator. Ruettiger, a broker for Baird & Warner in Plainfield, is the State Legislative Contact for state Sen. Pat McGuire of Joliet and was the 2018 REALTOR® of the Year for the Three Rivers Association of REALTORS®. Illinois YPN Vice-chair Megan Beechen, of Realty Executives Elite in Lemont also helped put together the event.

Make sure to check out this discussion at Podcast. illinoisrealtors.org or wherever you get your podcasts and search for Illinois REALTORS® Podcast 20

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Mabél Guzmán Although Mabél Guzmán, Rebecca Donatelli and Sam Powell have taken slightly different paths to succeed as REALTORS®, all three relied on trust to build their brands. The trio shared career insights during an Illinois REALTORS® Young Professionals Network (YPN) virtual panel discussion, “#werk Your Brand,” in April.

Solutions depend on situations

Face-to-face encounters have always been an important part of Guzmán’s success, whether the 22-year real estate professional is helping consumers find the right home or asking for referrals. But the growth of social media in recent years has played a growing role in her business. Now, she uses it to reinforce the brand she’s built as a real estate expert. “When customers reach out to me, I get a chance to go back to them for follow up,” she says. “For me, it’s about consistency and being that resource for someone.” “You have to be your authentic self,” says Guzmán, a broker with @properties in Chicago. “You can’t have one persona somewhere and then another persona somewhere else. When you are true about who you are, then people will say, ‘This is somebody I can trust.’”

Social media has helped Rebecca Donatelli build her brand faster than she could have ever imagined. In five short years, she attracted more than 14,000 followers on Instagram and has achieved “influencer” status. Not only is she a broker for McDowell Homes Real Estate Services in Cleveland, Ohio, but she is the founder of the Rebecca Donatelli Team and the owner of her own speaking consulting business. “Instagram started as a hobby because of my love for photography. But the more I became involved in the industry, the more people took to it,” says Donatelli. “It is really just about putting yourself out there, showing who you are, and people getting to know you. My goal now is to make people trust me before they even know me.” Sam Powell, a broker with DreamTown Realty in Chicago, also uses her love of photography to connect with customers. She started her real estate career in 2002. She learned about others’ best practices and to trust in her own abilities through her involvement with the Chicago Association of REALTORS® and the Women’s Council of REALTORS® Illinois. That positive reinforcement fostered her sense of camaraderie and collaboration. “I feel our gift to the industry is to share our knowledge and (learn from) our mistakes,” says Powell. “We’re raising the bar in our industry by willingly sharing our talents side-by-side with each other.”

Facebook, niche marketing and design

All three panelists said authenticity was an essential ingredient in building their own brands. For example, early in her career, Powell used her talent for graphic design to create fliers that helped

her prospect for business in targeted neighborhoods. She also found Facebook helpful as she developed a niche market in the LGBT community. “I was an early embracer of Facebook,” she said. “The digital face-to-face . . . allowed me to be more authentic.” She has a passion for educating consumers and colleagues, loves volunteering on local charity projects and has won numerous awards during her 17-year career. Powell is Governor for the Women’s Council of REALTORS® Illinois and has been active with the Chicago Association of REALTORS® and Illinois REALTORS®.

Instagram, coffee and photography

Donatelli built her following on Instagram by first sharing photos with friends. The more friends she made in the industry, the more she found herself encouraging those

Rebecca Donatelli

friends and congratulating them on accomplishments. Her involvement with her local YPN group, the local association’s board of directors and making the President’s Circle trip to Miami boosted her numbers. Becoming a finalist for REALTOR® Magazine’s 30 Under 30 Class and her work on the NAR YPN Advisory Board also helped. These days, her goal is to post something new every day. And while most followers seem more interested in her coffee drinking experiences than her real estate successes, she occasionally gets unexpected leads. “I had someone (recently) reach out to me on Instagram,” Donatelli said. “She said, “Hey, I’ve been following you for a while, and I have to buy a house with my husband. We need to go this weekend; I feel like I already know you and I’m not interested in interviewing anybody else.”

Research, politics and networking

Guzmán’s passion for real estate has provided her with numerous opportunities to serve colleagues, too. She is the National Association of REALTORS® (NAR) vice president for association affairs and a past president of the Chicago Association of REALTORS®. She is also the Illinois REALTORS® State Legislative Contact for state Sen. Iris Martinez of Chicago. She has testified before Senate and House committees on real estate-related

issues and has developed a reputation for professionalism, tell-it-like-it-is honesty and relationship-building. She has burnished that reputation with colleagues by attending some of their committee meetings and providing useful information on topics she is passionate about. Her willingness to go above and beyond has been evidenced by the 2012 CAR REALTOR® of the Year and Illinois Presidential Medallions in 2014, 2015 and 2018. “I see myself as an educator and a facilitator,” says Guzman. “There’s a big responsibility with that because then people come to you as that resource.” Today, some people refer to her as their own personal Google search engine. “If I don’t have all the answers, I’m going to connect you to the right resources,” she says. “I have a list of resources to share and I’ve built a network of friends. You start building resources by connecting with each other.”

Sam Powell ILLINOIS REALTOR® July 2020

COMMERCIAL CORNER Commercial real estate industry recalibrates during COVID-19 By Alex Ruggeri

As millions of people self-distanced, stayed home and couldnâ&#x20AC;&#x2122;t visit businesses or offices temporarily shuttered out of safety concerns, the economic ripple effect could be felt across all sectors of the commercial real estate industry. Illinois REALTORÂŽ talked to three practitioners in retail, multifamily, office and industrial to find out how the sectors adjusted to the unprecedented changes and what could happen next. Retail: New economic challenges could permanently change the retail landscape

Mike Mallon, CCIM, CRX is a Senior Vice President at Draper and Kramer Incorporated, a privately held real estate firm. Mallon has more than 40 years of experience in the Chicagoland market, specializing in retail development, brokerage and consulting.

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The COVID-19 pandemic brought the country to a halt and the resulting lockdowns and social distancing temporarily closed a wide range of businesses, from restaurants and retail to gyms and shopping malls. The entire commercial real estate sector has been affected, and the uncertainty hits tenants and landlords alike. The retail industry had already been fending off internet sales, overbuilding and retail bankruptcies. Now it is getting clobbered by a pandemic-fueled economic crisis. Worse, our industry may be forever changed by it. In addition to the countless independent retailers and restaurant businesses that may be forced to

permanently vacate their stores because they can no longer afford them, a growing number of corporate chains are unwilling or unable to pay their rent. LA Fitness, Subway and Mattress Firm have also stopped paying rent as a way to strong-arm shopping center owners into rent reductions, lease amendments and other courses of action designed to offset the losses they are incurring because of COVID-19. That begs the question, what happens next? While some may look to muscle their way into distressed assets, it is very possible the commercial real estate market will never look the same. While small retailers and restaurants melt away, some of their online rivals are beefing up. Amazon, despite no shortage of bad publicity, gains market share by the day. In fact, it recently sailed into trillion-dollar territory. Walmart, Target, and Costco are poised to come out of COVID-19 even stronger and more formidable than they were before, as smaller rivals suffer and wither. The cold, hard reality is that many retailers will not survive. However, retail has always been about survival of the fittestâ&#x20AC;Śor the biggest. This downturn will create new and unpredictable opportunities for retailers who respond accordingly and provide customers with what they want, which is a safe shopping experience at a price they can afford.

Multifamily: Restricted access and rent concerns affecting multifamily housing

Besides the obvious health and safety concerns associated with large groups of people living in close proximity, the multifamily housing industry is facing the immediate short-term concern of tenants’ ability to pay rent in the coming months. Much of the service industry, as well as hourly wage earners, represent a significant portion of the renter pool, many of which are living paycheck to paycheck. The inability to work due to shutdowns and shelter-in-place rules will have a profound impact on the ability of renters to meet their rental obligations. Long term, even if tenants can pay their current rents, they may not be able to absorb rent increases. Fannie Mae and Freddie Mac provided mortgage forbearance options to multifamily property owners who suspend evictions. The eviction suspensions are in place for the entire time a property owner remains in forbearance. The forbearance is available to all multifamily properties with an enterprise-backed performing multifamily mortgage that has been negatively affected by the COVID-19 emergency. From a multifamily management standpoint, all common areas including exercise rooms, business centers, pools, etc. are now closed in some form. Property tours for prospective tenants switched to the virtual world to avoid placing onsite staff and potential tenants in harm’s way. This most likely will result in reduced traffic to the site and potentially delayed rentals. Altering property tours – or in some cases halting them all together – also affects those on the sales/brokerage end. With many people now in their units working (or not working) from

home, the practice of social distancing will not make property inspections and tours acceptable to standards. The need for virtual tours and video marketing will be extremely important during this uncertain time. Virtual tours and videos are not going to satisfy many of the prospective buyers and their investors in the market, thus resulting in much longer marketing campaigns. Prospective investors are altering their acquisition strategy by removing the short-term rental increases from their underwriting model. In doing so, cap rates are increasing between 50 to 75 basis points. This may drive up the bid/ask gap during this period as owners have not seen significant delinquencies with spring rentals and will not accept discounted prices if there is not a need to sell. Beyond the initial site tour, third-party reviews of assets have been affected by social distancing requirements. Examples would include surveys, inspections, environmental studies and architectural reviews, all of which involve access to a percentage of the individual apartment units (both occupied and unoccupied). Not to mention the challenge of onsite staff exposing themselves during the interaction between third-party vendors and tenants.

Reid Bennett, CCIM, is National Council Chair of Multifamily Properties for SVN International and a Senior Vice President for SVN-Chicago Commercial. Bennett is a licensed managing broker focusing on the sale of apartment communities across the Midwest. He also works with members of his council to serve clients across the country in more than 150 markets. ILLINOIS REALTOR® July 2020

Commercial Office and Industrial: Use and need of office space could change significantly Lloyd Berry, CCIM, RPA, is Managing Director of Asset and Property Management for Colliers International in Chicago. A 30-year veteran in commercial real estate, Berry oversees the strategic direction and business plan execution for more than 48 million square feet of office, industrial, medical office and retail real estate throughout Chicago, northwest Indiana, and southern Wisconsin. He also runs Colliers International property management.

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The initial impact to Illinois’ commercial office market was a rapid depopulation of properties as companies implemented work-from-home strategies for many employees and allowed only essential personnel in properties. Companies in the leisure and travel industries were immediately affected and experienced significant staff displacement, either through furloughs or termination. Many companies have responded by listing office locations for sublease. Chicago, home to United Airlines and Hyatt Hotels, will see significant amounts of office space return to the market via sublease just as four to five new office developments are expected to be completed in the city. The use of and need for office space will change significantly and it is too early to see what the impact will be on occupancy rates and values. Rent payments have been forgiven, deferred or enforced. The percentage of rents collected in the office and industrial sectors have generally held up. In the Colliers Chicago portfolio, we saw early collection rates in the 80-85

percent range for office and 90 percent for industrial-based tenants. Most of our clients are now keenly focused on summer rents. The true economic impact is looming in our industry. Commercial real estate has always been a laggard to react to economic impacts, so the next 12-36 months will be critical when it comes to impact and values. Illinois, the city of Chicago and Cook County were already on shaky financial footing and the pandemic will only exacerbate their/our financial predicament, i.e. higher taxes. The key for the market will be the continued flow of money via rents into the system from tenants so that owners/landlords can continue to fund their key payments of mortgage, real estate taxes and insurance. Industrial vacancy has historically been closely tied to, and slightly lagged, the U.S. unemployment rate. With the pandemic and the immediate economic response erupting at the end of the first quarter, the unemployment rate climbed significantly. While certain segments of Chicago’s industrial market will perform comparatively well, the overall vacancy rate is expected to escalate as well. With respect to industrial real estate, e-commerce demand – especially from Amazon and a few key retailers making a renewed e-commerce push – is strong, but it won’t be enough to carry the entire industrial segment, according to Craig Hurvitz, senior director of research for Colliers in Chicago. The market already is experiencing a large increase in new sublease listings, and users who have committed to new development coming online will look to shed some of that space. The vacancy rate will rise; however, the industrial segment looks to suffer the least of all the commercial real estate property types. Rental rates will likely dip, but probably not significantly. The immediate issue for landlords is the same as other asset types: tenants looking to landlords for economic relief.

The approach by each landlord is different. However, many landlords are offering to amend leases, providing relief now and additional lease term to cover the relieved economic value. The response for both office and industrial is usually tied to landlord liquidity. Every industrial segment is affected in some way by the pandemic. “While commercial real estate is experiencing a significant impact due to the pandemic, several industrial occupier types including e-commerce, food and beverage users, packaging companies and healthcare-related industries aren’t as negatively impacted by the stayat-home directives and supply chain adjustments of the current situation. Certain users who are quick to respond to the evolving changes in our daily lives and plan for what is to come, can take advantage of the “new normal,” according to Hurvitz.

Development projects that were already well underway when the disruption and shutdowns occurred will continue as planned, but many planned speculative buildings will be put on hold. Many users will defer real estate decisions in the near term until the impacts of the pandemic and the economic response are clearer. While the next six months may be unpredictable, Chicago’s industrial market has been stable in past downturns and crises relative to more turbulent coastal markets and is poised to come roaring back once the situation improves.

NAR Commercial Economic Issues and Trends During the 2020 REALTORS® Legislative Meetings, NAR Chief Economist Lawrence Yun spoke about trends in the commercial real estate market. Download his presentation at bit.ly/NAR_ CommercialForum

REALTOR® Alex Ruggieri, CCIM, CIPS, CRE, SEC, is a contributing editor to Commercial Corner. He is a senior investment advisor with SVN-Ramshaw Real Estate in Champaign.

ILLINOIS REALTOR® July 2020

Financial moves to help you and your business weather a crisis By Stephanie Sievers, Senior Editor

A global pandemic, record unemployment and political unrest may be fueling feelings of anxiety about the economy and your finances. Now could be a good time to reevaluate what you are currently doing and make changes to put yourself on a stronger financial footing. “When we’re in uncertain times, you’re going to think about your income and commission differently, and you’re going to think about it more wisely,” says Leigh Brown, a real estate industry trainer and REALTOR® from North Carolina. Her advice for riding out current and future financial storms? Adopt a 40-3020-10 saving and spending plan. The plan can help you weather the highs and lows, Brown says. Here’s how it works: u 40 percent – business expenses: This money is for the costs associated with running your business including customer relationship management (CRM) tools, signs, lead generation

systems, sponsorships, etc. u 30 percent – personal spending: This bucket covers your home mortgage, car payment, food and other living expenses. u 20 percent – taxes: Don’t forget to set aside money for taxes or you’ll be hit with an unwelcome and hefty bill come tax time. u 10 percent – giving: This is where you allocate money for charity, tithes, etc. Brown shared the financial strategy in her 2020 REALTOR® Legislative Meetings session, “Getting your financial house in order: evaluating your finances in a crisis.” The majority of REALTORS® are independent contractors relying on the ebb and flow of commissions and that can bring uncertainty when markets change. But Brown reminds that real estate is cyclical and all disruptive markets end at some point.

Leigh Brown, CEO

One Community Real Estate™, Leigh Brown & Associates

Another tool to use:

Take advantage of this REALTOR® member resource to assess your financial goals and get advice on budgeting, retirement planning, investing and more. Get started at: FinancialWellness.realtor

Three more tips from Chris Bird

Here are a few more financial recommendations REALTORS® should consider during these uncertain times.

If you have received a Paycheck Protection Program (PPP) loan by the time this article is published, we will know the exact Small Business Administration (SBA)/Congress guidelines to ensure the forgiveness of much, if not all, of the original PPP loan. SBA guidelines indicate borrowers need to submit very detailed records to lenders to obtain forgiveness of any or all PPP loans. Use SBA form 3508.

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From a tax/investment planning standpoint, every selfemployed person (sole proprietor, S Corporations, etc.) should take a good look at commission income received so far in 2020 AND reasonably estimate anticipated commission income and expenses

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for the balance of the year. Schedule a summer meeting with your tax professional to assist with an accurate forecast. If your forecasted commission income and expenses are similar to 2019, then you only need to make sure your estimated tax payments meet your tax liabilities. However, if your commissions and expenses will result in a much lower net profit for 2020, consider converting part of an IRA, SEP IRA or 401k to a Roth IRA. This recommendation is popular with financial planners based on the knowledge that our tax rates are fairly low now, and the assumption that tax rates in the future will be considerably higher. Personally, I agree with this theory.

Take a fresh look at your spending habits. What credit card balances are you carrying and at what interest rates? Do you have real estate loans that need to be refinanced? Are there areas where you would like to cut back on spending? Critically analyze your spending habits. Some habits you picked up during the shutdown, such as cooking more at home, might save you money long term.

Chris Bird, CFP, EA Chris Bird Seminars

ILLINOIS REALTORÂ® July 2020

All real estate is local

Advocating local government policies aimed at keeping vital economic driver on track

Mike Scobey

Senior Director of Local Advocacy & Global Programs

In late March, our team of local governmental affairs directors (GADs) closely monitored what municipalities would do in light of Gov. J.B. Pritzker’s stay-at-home order. While real estate was deemed an essential service in Illinois, it raised questions about what would happen at the local level. Would Home Rule units – those that do point-of-sale home inspections and impose real estate transfer taxes – continue to perform those functions? The issuance of transfer tax stamps is essential for the recordation of a deed, and therefore is a prerequisite in most real estate closings. There was good news here. Nearly all Home Rule municipalities continued to process transfer tax payments and do home inspections. Many municipalities, in an attempt to comply with social distancing requirements, made modifications to their procedures and practices and most of those changes are expected to remain in effect for a large part of the summer. These new protocols, however, make the process slower and REALTORS®, 28

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attorneys and title agencies have been adapting to this new reality. Another issue for local governments will be addressing the significant revenue shortfalls that are expected from the COVID-19 crisis. We encourage municipalities not to impose new taxes on real estate, but to think of ways to keep the real estate market vital in a recovery period. Real estate has been, and remains, a critical link in the flow of goods, services and income for millions of Illinoisans. As the National Association of REALTORS® (NAR) has documented, each home sale generates direct economic activity from furniture purchases, repairs, professional services, transfer tax revenue, etc. That activity is good news for the local economy. Illinois REALTORS® will be advocating these possible policies for our local governments: u Consider switching – temporarily – any available housing program funds to a program to: 1) assist owners of rental properties who may have received less rental income; and 2) provide rental assistance to those renters impacted by the COVID-19 crisis (job loss, illness). u Consider adopting some forms of property tax abatement for vacant, non-residential properties. A state law passed in 2009 permits municipal governments this ability and would allow a targeted approach to distressed properties and help in the restoration of business to those properties. u Examine existing building and other codes to determine what regulatory

barriers may exist to homeownership and the production of affordable housing. Illinois REALTORS® has developed a downloadable brochure directed to local policy makers titled, “Working to Make Your Building Code and Zoning Code More Affordable for Housing.”

bit.ly/RVoice_Downloads u For non-Home Rule units, the adoption of a sales tax (after approval in a referendum) would help address revenue shortfalls. As consumers who were not deleteriously affected by the crisis re-enter the consumer marketplace, this is a viable revenue option. u Illinois REALTORS® will be vigilant on referenda proposals that could be on the November ballot. New or higher real estate transfer taxes is on our radar and will be opposed. Municipalities have until Aug. 17 to decide on referenda proposals.

Illinois REALTOR® July 2020

Articles inside

Use your own style to develop a winning brand

Commercial real estate recalibrates