Illinois REALTOR® April 2018 by Illinois REALTORS®

THE VOICE FOR REAL ESTATE IN ILLINOIS

APRIL 2018

50 YEARS OF FAIR HOUSING

Understanding current fair housing legal issues 4 Advanced tech tools available to REALTORS®

www.IllinoisRealtors.org

THE OFFICIAL PUBLICATION OF ILLINOIS REALTORS®

2 www.IllinoisRealtors.org

CONTENTS 50 YEARS

APRIL 2018

OF FAIR HOUSING PAGE 12

Departments

ILLINOIS REALTORS®

Advocacy • Education • Ethics • Legal • Outreach

5 President’s Message: Fair Housing Act fundamentally changed the industry

Features

6 What’s Online 8 Quick Takes: Profile of Illinois buyers & sellers, Illinois Treasurer relaunches rural economic development programs, IHDA introduces Access Mortgage financing products

12 The fight for fair housing REALTORS® commemorate 50 years of the Fair Housing Act

10 Legal Update: Understanding current fair housing legal issues

18 Katie Lance: Using social media to connect

28 At the Capitol: Opposing repeal of rent control ban

23 4 Advanced tech tools to use now

31 RVOICE: March primary ballot issues: home rule and rent control

26 Michael D. Oldenettel 2018 Illinois REALTOR®of the Year

34 Market Watch 36 Member Outreach: RPAC All Star Office Challenge

32 REALTORS® looking for opportunity, global connections at MIPIM

37 Ethics Hearings: Misleading images in advertising

33 Inland celebrates 50th anniversary

38 REALTOR® Community

ILLINOIS REALTOR® April 2018

4 www.IllinoisRealtors.org

PRESIDENT’S MESSAGE Matt Difanis | ABR, CIPS, GRI | 2018 President

ACT'S POWER RESONATES 50 YEARS LATER Throughout my real estate career, I’ve known the federal Fair Housing Act was important. In fact, as a licensed real estate instructor I have taught many new REALTORS® about how this 50-year-old law forms a foundation for this association’s belief that everyone deserves an opportunity to realize the American Dream of homeownership. Title VIII of the Civil Rights Act of 1968 makes it illegal to discriminate on the basis of race, color, religion or national origin. Later, protections for familial status, disability and sexual orientation were added, necessary additions to make sure fair housing is

accessible to all. Despite learning about and teaching on the Act, it really wasn’t until I talked to Illinois REALTORS® who lived through the turmoil surrounding the Act’s implementation that I gained a true understanding of the the struggle for housing equality. Frank Williams, former president of the Dearborn REALTIST® and the Chicago Association of REALTORS®, was on the front lines of the struggle. He had his home firebombed and endured harassment because he dared sell in white neighborhoods. Loretta AlonzoDeubel, a former Illinois REALTORS®’ president, was once bluntly told Mexicans didn’t live

“ I F WE ARE GOING TO GROW, WE HAVE TO BE COMFORTABLE WITH BEING UNCOMFORTABLE.” in the community she wanted to call home. Vicky Silvano, former national chair of the Asian Real Estate Association of America, shared the sometimes-subtle ways in which Asians face discrimination when they look for housing. These stories were powerfully told in a video produced to mark the 50th anniversary of the Fair Housing Act. It debuted at a forum at the Illinois REALTORS® January Public Policy Meetings in East Peoria. While there was much to celebrate at the event, it was tempered with the realization there’s still much to do. REALTOR® Jessica Barrera, president of the National Association of Hispanic Real Estate Professionals Chicago chapter, said many of the agents in her office could

relate experiences they had with housing discrimination. So, are we better off than we were in 1968? Undoubtedly, we are. But this 50th anniversary provides an opportunity to renew our commitment as REALTORS® to uphold the Fair Housing Act and demand all adhere to it. As Zeke Morris, a past president of the Chicago Association of REALTORS® and the chair of the National Association of REALTORS® Fair Housing Act Anniversary Working Group, said in the video, “If we are going to grow, we have to be comfortable with being uncomfortable.” We’re only going to get better as an industry if we have an honest conversation about what’s right, what’s wrong and what needs to change in regard to fair housing.

ILLINOIS REALTOR® April 2018

ILLINOIS REALTORS® THE VOICE FOR REAL ESTATE IN ILLINOIS

WHAT'S ONLINE

2018 OFFICERS President Matt Difanis, ABR, CIPS, GRI matt@mattdifanis.com President-Elect Dan Wagner wagner@inlandgroup.com Treasurer Ed Neaves eneaves@thesnydercompanies.com Immediate Past President Doug Carpenter, ABR, AHWD, GRI, SFR doug21@comcast.net Chief Executive Officer Gary Clayton, CAE, RCE Executive Vice President Luke Bell, RCE Editor Jon Broadbooks Senior Editor Stephanie Sievers Content Marketing Specialist Bill Kozar Graphic Designer David Hine For advertising information contact Advertising & Sponsorship, 217-529-2600, info@IllinoisRealtors.org The ILLINOIS REALTOR® (ISSN 0744-221) is published four times a year during the months of January, April, July, and October by the 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: The ILLINOIS REALTOR®, Post Office Box 19451, Springfield, Illinois 62794-9451, 217-529-2600. Opinions expressed in any signed ar ticles of the ILLINOIS REALTOR ® are those of the author and do not necessarily represent the opinions of the Illinois R EALTORS ®. Adver tising of product or services does not imply endorsement. Advertising rates are available at www.IllinoisRealtors.org or on request. Annual dues of every REALTOR®, REALTORASSOCIATE®, and Affiliate member includes $3 for a oneyear subscription to the ILLINOIS REALTOR®.

ARE YOU READY TO LEAD? APPLY FOR THE 2019 BOARD OF DIRECTORS Illinois REALTORS® is accepting applications for six positions on its 2019 Board of Directors. Deadline to apply is April 15, 2018. All applicants will be reviewed based on criteria which include association involvement and professional expertise as a REALTOR®. If selected, you will join

a 28-member board which sets policies for the more than 47,000-member trade association. Watch a video from Illinois REALTORS® President Matt Difanis to learn more about the process. The application form, campaign rules and selection criteria are at the link below.

www.IllinoisRealtors.org/About/Leadership/BOD2019 PROFESSIONAL STANDARDS TOOLKIT OFFERS VIDEO UPDATES Stay up-to-date on specific professional standards issues by watching the library of videos available in the toolkit. Two new videos feature REALTORS® Sue Miller and Michael D. Oldenettel talking about the Ethics Citation Program and ethics complaint hearings.

Like us on Facebook. Join us on LinkedIn. Follow @ILREALTOR and @ILREALTORmag on Twitter. Follow @IllinoisRealtors on Instagram. Subscribe to www.youtube.com/IllinoisRealtor

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www.IllinoisRealtors.org/Ethics/ToolKit 12 QUICK-HIT MEMBER RESOURCES Did you know Illinois REALTORS® members can access free legal forms and download consumer brochures to share with clients? Check out these and other members-only benefits to use in your real estate business. www.IllinoisRealtors.org/Membership/MemberBenefits

ILLINOIS REALTORS®

Licensing & Training Center Real Estate Licensing & Continuing Education

2018

BROKER LICENSE RENEWAL

Your TRUSTED SOURCE for state-approved education. LEARN FROM THE INDUSTRY LEADERS

ALL ONLINE / NO TRAVEL / NO HASSLE Lynn Madison

Norm Willoughby

Brokers 1st licensed

30 Hours of Broker Post-License

ON or AFTER

• Complete Online Package - $269 • 15-hour Post-License Topics Online Course - $120 • 15-hour Post-License Practices Webinar - $159

Feb. 1, 2016

12 Hours of Continuing Education

Brokers licensed

PRIOR TO

• Complete 12-hour Online CE Package - $79 • 3-hour Online CE Courses - $19.95 per course

Feb. 1, 2016

Brokers licensed

You do NOT need to Renew in 2018

Feb. 1, 2018

You must complete 30 hours of Broker PostLicense Coursework by the next renewal cycle deadline of April 30, 2020.

AFTER

Go to: www.IllinoisRealtors.org/Education

Don’t Let Time

RUN OUT!

• Email: Education@IllinoisRealtors.org • 1-800-523-5077

ILLINOIS REALTOR® April 2018

QUICK TAKES AT A GLANCE: ILLINOIS BUYERS & SELLERS

First-time buyers made up 31 percent of all homebuyers in 2017, a drop from 35 percent the year before. The typical Illinois buyer was older — 44 years old in 2017 compared to 40 years old in 2016 — while the median income of buyers declined from $103,800 to $93,000 in 2017. On the other side of the transaction, sellers typically lived in their home for 12 years before selling, an increase from 10 years the year before. Get a better understanding of your potential clients with the 2017 Profile of Home Buyers and Sellers Illinois Report at www.IllinoisRealtors.org/Marketstats/Members-Only/

ILLINOIS BUYERS VS SELLERS

• 88 percent purchase through a real estate agent

• 89 percent worked with a real estate agent to sell their home

• Buyers typically searched for 10 weeks and looked at 10 homes

• Recently sold homes were on the market for a median of two weeks

• 10 percent of buyers said saving for a down payment was the most difficult step

• 34 percent of sellers offered incentives to attract buyers

MORE FACTS ABOUT ILLINOIS BUYERS:

MORE FACTS ABOUT ILLINOIS SELLERS:

• 63 percent of buyers were married couples, 20 percent were single women, 9 percent were single men and 6 percent were unmarried couples

• Home sellers sold their homes for a median gain of $14,500 more than they purchased it.

• 16 percent were veterans and 3 percent were active-duty service members

• 64 percent of sellers found their agent through a referral from a friend, neighbor or relative or used an agent they had worked with before

(SOURCE: 2017 Profile of Home Byers and Sellers Illinois Report)

HARVARD STUDY FINDS RENTAL HOUSING MARKET GROWTH MAY BE COOLING After a decade of growth, the rental sector may be moderating with fewer renter households forming and rent increases slowing, according to the latest “America’s Rental Housing 2017” report from the Joint Center for Housing Studies of Harvard University.

Takeaways from the report: • More renters are older and have higher incomes than before. Between 2006 and 2016, the median age of renters climbed from 38-40. • During the same time, the number of renter households earning more than $100,000 rose from 3.3 million to 6.1 million.

• For families with children, there are more households renting (33 percent) than who own a home (30 percent). • When it comes to new rental units, the supply of higher-cost rentals has outpaced that of lower- and moderate-cost units.

Read the full report at http://bit.ly/Harvard_RentersReport

8 www.IllinoisRealtors.org

Share of consumers who say that owning a driverless car would encourage them to move farther away from work. Of those surveyed, Millennials and Gen X consumers were more likely to consider buying a driverless car. SOURCE: National Association of Home Builders Poll

ILLINOIS TREASURER’S OFFICE RELAUNCHES RURAL ECONOMIC DEVELOPMENT PROGRAMS Illinois State Treasurer Michael Frerichs has committed $500 million for Invest in Rural Illinois Programs, a package of investment programs targeting rural businesses and homeowners, including the mortgage finance program, Finally Home. Illinois President Matt Difanis accompanied Frerichs as he traveled the state announcing the program. “Because we work with so many people, our members know firsthand how hard it can be for many of those who live in rural areas of the state to realize the American Dream of Homeownership,” Difanis said at the news conference in Champaign.

“And, for those who really do want to enjoy the many benefits of homeownership, gaining access to the credit necessary to finance a home purchase can be difficult.” The Invest in Rural Illinois programs include the Community

Uplift Program for economic development, Ag Invest for farm businesses and Finally Home for homebuyers and homeowners looking to refinance. Learn more about Invest in Rural Illinois at http://bit.ly/ InvestInRuralIllinois.

Illinois REALTORS® President Matt Difanis (right) speaks at an event sponsored by Illinois Treasurer Michael Frerichs (left) to promote a new package of programs designed to increase investment in rural communities.

HOME PRICE TRENDS FOR CITIES ON AMAZON’S SECOND HEADQUARTERS SHORT LIST With Amazon hunting for a location to build a second headquarters, will residential real estate prices be a factor in choosing the final city? CoreLogic posed the question as it analyzed home price trends in the 20 cities that made the short list. The results? Home prices have risen in all of the cities and more than half are what CoreLogic considers overvalued markets. Chicago is among the cities identified as having a normal market. http://bit.ly/AmazonHomes

IHDA introduces Access Mortgage financing products The Illinois Housing Development Authority (IHDA) now offers up to $10,000 in down payment assistance through its new Mortgage Access programs: IHDA Access Forgivable, IHDA Access Deferred and IHDA Repayable. Here are descriptions of the different Access programs and find a full list of popular home financing programs available for your clients at www.IllinoisRealtors.org/Membership/MemberBenefits/Mortgage-Loan-Programs IHDAccess MORTGAGE

IHDAccess MORTGAGE

• 4 percent of the purchase price up to $6,000 cash assistance for down payment & closing costs, forgiven monthly over 10 years – it’s a gift that does not have to be repaid

• 5 percent of the purchase price up to $7,500 cash assistance for down payment & closing costs offered as an interest-free loan, deferred for the life of your mortgage – you don’t need to repay until you sell your house, refinance, or pay off your mortgage

• 10 percent of the purchase price up to $10,000 cash assistance for down payment & closing costs offered as an interest-free loan – repaid monthly over a 10 year period

Forgivable

• 30-year, fixed rate mortgage with an affordable interest rate • Available for all mortgage types, including FHA, VA, USDA and FNMA HFA Preferred • Available to first-time and repeat homebuyers statewide

Deferred

• 30-year, fixed rate mortgage with an affordable interest rate

Repayable

• 30-year, fixed rate mortgage with an affordable interest rate

• Available for all mortgage types, including FHA, VA, USDA and FNMA HFA Preferred

• Available to first-time and repeat homebuyers statewide

ILLINOIS REALTOR® April 2018

LEGAL UPDATE Elizabeth A. (Betsy) Urbance | General Counsel and Vice President of Legal Services

COMMEMORATING FAIR HOUSING AND UNDERSTANDING CURRENT LEGAL ISSUES April 2018 marks a milestone in the real estate industry as REALTORS® observe the 50th Anniversary of the Fair Housing Act, which was signed into law on April 11, 1968. In honor of this notable anniversary, the Legal Update focuses on three fair housing issues. Q. In a residential lease transaction, is it appropriate for a landlord to refuse to rent to tenants who are recipients of the federal Section 8 or housing choice voucher (HCV) program? A. Generally speaking, landlord participation in the federal HCV program is still voluntary UNLESS there is a local ordinance which includes source of income as a protected class and the source of income class includes the HCV program. It is extremely important for licensees to be aware of local ordinances which can be stricter than federal or state fair housing laws. For example, both the city of Chicago and Cook County have local ordinances protecting source of income as a class, and both interpret their source of income class to include receipt of HCV subsidies. As a result, if the property is located within these areas, a landlord or property manager may not deny an applicant based on participation in the HCV subsidy program. The applicant could be denied for other permissible reasons, such as a bad credit history, bad tenant history, poor employment history, and in some cases, a history of criminal convictions.*

Brokers and landlords should take great care to determine whether source of income is a protected class in the areas where the subject property is located. There are a few other locations within the state of Illinois that include source of income in their local fair housing ordinances. So, it is important for the broker and/or the landlord to seek legal advice if they get this question.

* Stay apprised on the question of using criminal records for checking residential tenant applications. For more information on this important subject read this article by the National Association of REALTORS’® [http://bit.ly/FairHousingAct_ CriminalHistory]. Also, be aware that there are local governmental entities seeking to limit the use of an applicant’s criminal history in rental applications.

HAVE A LEGAL QUESTION? The Illinois REALTORS® Legal Hotline is the Designated REALTOR®/ managing broker’s go-to source for legal information.

Phone: (800) 952-0578 • Email: burbance@IllinoisRealtors.org • Hours: 9 a.m. - 4 p.m. Monday – Friday 10 www.IllinoisRealtors.org

Q. Jane Doe is a residential property manager for Mr. Owner. Is it still permissible for Jane to use credit history as a factor in evaluating applicants for Mr. Owner’s residential units?

Q. A landlord received an application from a well-qualified individual who wants to rent the landlord’s unit. The tenant applicant is deaf and has a service dog to help him with his daily activities.The dog alerts him to the doorbell, the phone and alarms among other assistance activities. The landlord’s building has a “no pets” policy so the landlord wants to know if he can decline the lease to this applicant based on the policy. If not, how should the landlord proceed? Are answers the same for other situations that might be similar but involve different types of tenant challenges and/or different animals? A. The short answer regarding the ability of the landlord to deny the wellqualified applicant is no, the landlord could not deny based on his “no pets” policy and would need to provide this “reasonable accommodation” for the tenant. On these facts, it appears that the dog is a legitimate service animal that helps his person carry out basic life functions. The landlord could ask for some basic proof from the prospective tenant that he needs the service animal, if the need is not obvious. This might be accomplished by a note from the tenant’s physician explaining the tenant’s need for the assistance animal. The landlord is not entitled to detailed medical records supporting the tenant’s request. In addition, if the situation is obvious as to why a person needs an assistance animal, the landlord may not ask for further proof. An example is where a visually impaired person requires a guide dog.

Once it has been established that the tenant needs the service animal to assist him in his daily life, either because it is obvious or because the tenant has provided some basic assurance to the landlord (or the landlord’s agent), the landlord should know that he can’t legally charge a higher security deposit based on the presence of the service animal. At this point the animal is not a “pet.” This is considered a form of impermissible discrimination. When the tenant moves out, the tenant might be responsible for the actual costs of any needed repairs beyond regular wear and tear in the unit. The service or assistance animal does not have to come with any specific training. In the example presented, the service dog is likely trained for specific duties to assist his non-hearing person. However, if a tenant has an “emotional support” animal and some basic level of proof defining the assisted person’s need, similar analysis should apply and the assistance animal must be accepted for an otherwise qualified tenant who seeks housing. An exception to this general rule is where the specific assistance animal poses a danger to others. However, an animal could not be automatically denied based on its breed. These questions are addressed on a case-by-case basis. The real question is whether that particular animal poses any danger to others. A good source of information on this and related questions is a document entitled FHEO-2013-01, issued April 25, 2013, produced by the U.S. Department of Housing and Urban Development. http:// bit.ly/FairHousing_ServiceAnimals.

A. Yes. Credit history is neutral on its face. Jane and Mr. Owner should be able to continue using this information when considering rental applications for housing. Information like credit, tenant and employment histories (although be cognizant of source of income as a protected class in some locales) have long been held to be lawful factors in assessing residential rental applications. Sometimes an applicant might not have a “traditional” credit history, so alternate methods might need to be employed to evaluate a tenant’s ability to pay the rent. An example is actually contacting the utility company and other service providers to check for timely payments. A landlord should be willing to consider other information if an applicant does not have a “credit score” of history. There would need to be more factors present before a court could be asked to declare that Jane’s use of the “protected class neutral” credit check produced a discriminatory effect or impact on particular applicants seeking to rent Mr. Owner’s property. Generally, facially neutral processes will be allowable for rental questions such as the example given. However, it is important for real estate professionals and owners to be aware that in 2015 the U.S. Supreme Court held that a cause of action could proceed on the basis of a discriminatory effect or an afterthe-fact disparate impact on protected classes, even where the policy, regulation or statute was neutral on its face. The question could go forward to determine whether the policy, rule, regulation or statute is being implemented to realize a legitimate goal in a manner that does not disproportionately affect protected classes. Analysis on these disparate impact cases will be very fact specific. Legal advice on how to legally proceed should be sought on these important questions. For more on this and other legal topics, go to www.IllinoisRealtors.org/Legal.

ILLINOIS REALTOR® April 2018

THE FIGHT FOR FAIR HOUSING REALTORS® commemorate 50 years of the Fair Housing Act By Stephanie Sievers, Senior Editor

n April 11, 1968, President Lyndon B. Johnson signed the Fair Housing Act into law. The law sought to prohibit housing discrimination and defined it as a “refusal to sell or rent a dwelling to any person because of his race, color, religion or national origin.” It would take years for the fair housing mandate to become everyday practice. Even today there are problems with equal access to housing that need to be addressed. Over the years, REALTORS® have grown to accept and ultimately champion fair housing as part of business. To commemorate the 50-year anniversary and highlight the progress and challenges to come in fair housing, Illinois REALTORS® produced a video with a number of association members who played roles in shaping the association – and the industry’s approach to fair housing. The video, a planned monument commemorating the 50th anniversary of the Fair Housing Act at Bicentennial Plaza – A REALTOR® Community Partnership and a panel discussion in August are part of a yearlong emphasis on fair housing and the role it plays in the real estate industry.

To commemorate the 50th anniversary of the Fair Housing Act, Illinois REALTORS® worked with The Storytellers Studio to produce a video telling the story of REALTOR® involvement, past and present, in the fair housing movement. In the video, Illinois REALTOR® members share their personal experiences in the fight for equal opportunity in housing and reflect on what more needs to be done. Their expanded interviews are featured in this article. Watch the video at www.IllinoisRealtors.org/Legal/Legal-A-Z/FairHousing

ON THE FRONT LINES OF FAIR HOUSING The fight over fair housing came right to Frank Williams’ front door. In the 1970s, when community opposition to his work helping African Americans move into Chicago’s Beverly neighborhood reached a fever pitch, someone threw a Molotov cocktail into his family’s home and firebombed the front door. But Williams, who never wavered in his commitment to making sure housing was accessible to everyone, was not one to back down in the face of adversity. “The game is inside, not outside, and you’ve got to be there and you’ve got to make it known what your concerns are, “ he said. “You will be heard and accepted sometimes and sometimes you won’t be. But if your message is righteous and you’ve got your soldiers following you and working with you, things will improve.”

Williams got his real estate license and by 1971 had formed his own company, F.J. Williams Realty, that he ran with his wife, Joanne. When they worked with African American clients who wanted to move into the Beverly neighborhood, they were harassed and accused of blockbusting by residents. “We were selling a lot of houses, a lot of properties and the community organizations attacked us that first year, breaking our office windows and demonstrating in front of the office,” he said. There was also a network of residents in town who would call his office all day long, jamming the phone lines and warning him to stop selling in their neighborhood. But Williams persevered and pushed forward, getting involved in local and state

Frank Williams

broker-owner of F.J. Williams Realty in Chicago PHOTO BY MATT DIFANIS

Commemorating 50 Years Of Fair Housing

REALTOR® organizations, even when he was the only African American member in the meetings.

“We all want the same thing.” “I made my presence known over and above just being seen,” he said. “I always attempted to be certain that we had a seat at the table and that we let the organization know what our concerns were as it relates to the treatment of all people.” He would also get involved with the Dearborn REALTIST® Board and serve as president for several terms. That service along with a term as president of the Chicago Association of REALTORS® would give him a platform to advance equal housing opportunities. In 2017, Williams received the Gale Cincotta Community Visionary Award from the Neighborhood Housing Services of Chicago, Inc. and was inducted into the Chicago Association of REALTORS® Hall of Fame. “We all want the same thing,” he said. “We want a nice place for our children to grow up. It’s not just the house, it’s the community.”

www.IllinoisRealtors.org

AN INDUSTRY JOURNEY FROM OPPOSITION TO SUPPORT ON FAIR HOUSING The journey from opposing fair housing policies to one where REALTORS® embrace them as a core value was a complicated, lengthy process, said a longtime housing activist. As REALTORS® recognize the 50th anniversary of the Fair Housing Act and real estate’s commitment to upholding fair housing laws, it is important to look back at the industry’s history on equal access and its goals for the future, said Fred Underwood, NAR’s director of diversity and inclusion. “It’s important because we’ve evolved,” Underwood said. “We’ve changed from opposing these principles of equal opportunity to supporting them, and this shift is really the story.” The push for fair housing and allowing people to live where they wanted regardless of their race, gender or other status faced opposition from many, including those in the real estate industry. REALTORS® opposed “forced housing,” which was perceived to take away the right to choose who to sell or rent to, he said. African American brokers had already founded the National Association of Real Estate Brokers in

1947 with a call for fair housing or “Democracy in Housing." As the movement for fair housing grew, the Chicago Freedom Movement invited Dr. Martin Luther King Jr to Chicago to march for open housing in Cicero and Marquette Park. In response, civic and business leaders created the Leadership Council for Metropolitan Open Communities, one of the nation’s early and influential fair housing organizations, Underwood said. Despite the public commitment to housing equality, the Act signed days after King’s assassination, was largely toothless in the face of lax enforcement and community buy-in. Lawsuits alleging discrimination could be filed, but active, ongoing enforcement was still more than a decade away. “It took a lot of people challenging the old assumptions,” Underwood said. “It took a lot of people bravely fighting. It took

Fred Underwood

director of Diversity and Inclusion at the National Association of REALTORS® PHOTO BY MATT DIFANIS

people selling homes to African Americans and others when they were ostracized by their colleagues in the business or in the community.” Most early efforts focused on REALTOR® associations signing voluntary affirmative marketing agreements to encourage fair housing. The REALTOR® organization didn’t just wake up one day and realize that it had been wrong on fair housing, Underwood said. Eventually, NAR and its REALTOR® members became proponents of fair housing and made adherence and education not only an integral part of being a REALTOR®, but also of staying one, Underwood said. The fair housing fight is far from over. Discriminatory practices are now more subtle, Underwood said. It can be as simple as offering a higher level of service to a white client or steering someone from a particular demographic background to properties in certain neighborhoods. More work still must be done and all REALTORS® have a stake in making sure that happens, Underwood said. “We have to own fair housing,” he said. “We have to own the concept of what fair housing means and that it means full participation of everybody…in the real estate market, in the housing market.”

EDUCATION A KEY TO AVOIDING MISTAKES OF THE PAST Despite fair housing initiatives, African American homeownership still lags behind other groups and that is something the National Association of Real Estate Brokers (REALTIST®) and the Chicago Dearborn REALTIST®, wants to see change. The Dearborn REALTIST® Board was founded in March 1941 and chartered in October 1941 by twelve African American real estate brokers to be the "conscience" to combat oppressive and repressive conditions existing for African Americans in the real estate industry. The Dearborn REALTIST® Board's mission was to bring professionalism, access to training and economic power to its members. African American brokers were unfairly confined by restrictive covenants to a narrowly defined south side area. At the time, African Americans were even restricted in which parts of Chicago they were allowed to live, said Courtney Q. Jones, a broker with Chicago Homes Realty Group and the 2018 president of the Dearborn REALTIST® Board. Today, the African American homeownership rate is 39 percent compared to 72 percent of the Caucasian population. The group’s primary initiative is to get 2 million African American homeowners into homes in the next five years, Jones said.

But there are still hurdles to overcome, many of which have been issues for years. Even today, African Americans face more roadblocks on the road to homeownership. It is not uncommon for an African American family to put in a competitive offer on a home only to lose out and find out later that the buyer who did get the home, actually had a lower offer, Jones said. “It begins to be glaring that this is more than just a financial decision,” he said. In other circumstances, an African American family might pay higher basis points on the same size loan of a white family. “It’s important that we educate the people that we represent...what’s appropriate, what’s illegal, what’s discrimination,” he said. “When I start thinking about fair housing champions and how we can individually be that champion, it’s picking up the issues that we know are wrong and dirty and trying to get them clean.”

The Dearborn REALTIST® Board (DRB) headquarters stands at 8454 S. Stony Island Avenue in Chicago. (L-R) Ronald Branch - NAREB/DRB Past President, Millie Reyes-Williams - DRB Board of Director and Courtney Q. Jones - DRB President. PHOTO BY ANN LONDRIGAN

Courtney Q. Jones of Chicago Homes Realty Group in Chicago, 2017-2018 president of Dearborn REALTIST® Board PHOTO BY STORYTELLER STUDIOS

ILLINOIS REALTOR® January 2018

STORIES FROM THE PAST BUILD BETTER INDUSTRY FOR THE FUTURE A past Illinois REALTORS® state president and a trailblazer in her own right, Loretta Alonzo-Deubel is no stranger to being treated differently in the home buying process because of her race and gender. When she and her late husband purchased their first home in 1971, she was taken aback when the lawyer reviewing her contract asked why she wanted to move to Berwyn as there were no other Mexicans living there. “I don’t care,” she told him. “That’s where I want to live.” As the process moved forward, Alonzo-Deubel, who was working full time and making a good income, was told by the lender that her salary would not be counted as income toward qualifying for the mortgage loan because as a married woman she would eventually stop working to have children. “Being the strong-

willed woman that I am, I was appalled that they wouldn’t count my income as well,” she said. When she did move into her home, a next-door neighbor moved out, saying they didn’t want to live next to a Mexican family. Alonzo-Deubel later got her real estate license and was among the first Latino REALTORS® in the community. She started to make a difference by getting involved with her local REALTOR® association. They tackled local government efforts to restrict real estate signs in yards, a move to make it harder for people to drive through the community and see what was for sale. Other communities tried to push strict inspection ordinances or severe restrictions on the square footage allowed for bedrooms in an attempt to keep the number of people who could live in a home low, she said.

Loretta Alonzo-Deubel

broker with Century 21 Affiliated in Westchester

PHOTO BY STORYTELLER STUDIOS

“We’ve made a lot of progress, but we still have a long way to go,” she said. “Prejudices are never going to go away. They’re better than they were before, but you’re still going to see them because people grow up with them.”

“ We’ve made a lot of progress, but we still have a long way to go.” Diversity in the REALTOR® community has grown significantly, but Alonzo-Deubel said it’s important for people to share their history so that new REALTORS® know the legacy of fair housing and recognize what still needs to be done. One way to build even more industry inclusion is to encourage more members from diverse backgrounds to get involved in leadership, she said. “There are plenty (of potential leaders) out there that just are sort of sitting back and not taking that next step,” she said. “I think it’s our responsibility as past leaders, and myself as a woman and a minority, to tap them on the shoulder and say, ‘try it, go for it.’”

INDUSTRY DIVERSITY STRENGTHENS FAIR HOUSING COMMITMENT For Illinois REALTORS® President Matt Difanis, 2018 marks a chance to commemorate the anniversary of the Fair Housing Act and to build the association for the future through a focus on inclusion and diversity. The anniversary provides an important moment in the association’s history to celebrate the Act and its far-reaching impact on the industry. As Difanis notes, many of those in the real estate industry today have no direct connection to the struggle for housing equality. In fact, new REALTORS®’ only connection to fair housing may be through mandated training on how to avoid discriminatory practices they receive when they train to become brokers. Difanis said it wasn’t until he heard the personal stories of colleagues who lived through the early days of the battle for fair housing protections that he gained a new appreciation for the Act and what it stands for. This year, Difanis has led the association to frankly assess its role in promoting fair housing. A video featuring Illinois REALTORS® who played prominent roles in the debate and a forum held at the association’s January Public Policy Meetings underscore his commitment to building bridges to diverse communities. “In terms of the Illinois REALTORS® and the history, our goal in doing this project is we want to make sure that we’re providing a completely unvarnished look at the history,” Difanis said. “It’s

way too easy to come into the business today and if you’re not made aware of that history, you may not realize that there really is a compelling moral imperative to continue making progress,” For REALTORS®, the journey to embracing the Act wasn’t a quick one. “The REALTOR® trade organization gradually adopted and updated its Code of Ethics to promote and recognize fair housing,” he said. “But for a very long time the Code of Ethics itself was discriminatory and recognized that neighborhoods needed to be protected by not introducing populations that would be deemed injurious to property values.” Difanis teaches classes to those seeking to become REALTORS® and emphasizes that they need to take care they aren’t unwittingly discriminating. He uses the scenario of a parent working with a REALTOR® to find good housing for a daughter

Matt Difanis

broker-owner of RE/MAX Realty Associates in Champaign and 2018 President of Illinois REALTORS® PHOTO BY JOANNA STRAUSS

Commemorating 50 Years Of Fair Housing

who will be attending college. A REALTOR® has to be careful not to become the arbiter of what is a “safe” neighborhood or weigh in on where she should live. “It’s an issue that has a serious impact today and if you aren’t sensitive to it, there’s a very good chance that one way or another you would find yourself perpetuating existing housing patterns that probably are not in the best interest of the client or broader society,” Difanis said. Illinois is a diverse state and it is important that REALTOR® organizations reflect that, he said. One way to do that is to encourage more minority practitioners and women to take on leadership roles within the state REALTOR® organization. There’s an extensive talent pool of REALTORS® involved in minority-focused real estate trade groups and more outreach must be done to encourage them to become more active, he said. But outreach doesn’t always have to come from the top down. “Embrace those who don’t look like you by spending time engaging in organizations that cater to a constituency that is not you,” he said.

www.IllinoisRealtors.org

REMOVING BARRIERS TO HOMEOWNERSHIP

TOUGH CONVERSATIONS MOVE US FORWARD

REALTOR® Vicky Silvano says addressing fair housing issues means making sure you and your community are being seen and heard. When Silvano served as national chair of the Asian Real Estate Association of America (AREAA) in 2016, the organization discovered Asian Americans/Pacific Islanders were not identified as a specific category in the U.S. Census Bureau’s quarterly homeownership reports. This group was just lumped into the “other” category, which prompted AREAA to launch a successful campaign to have Asian Americans/ Pacific Islanders specifically represented in the count. Building on the success of the organization’s “No Other” campaign, AREAA is looking to increase homeownership in the Asian American community and make it easier for those consumers to qualify and apply for a mortgage. Language can be a barrier in the Asian American community where there are as many as 26 different languages spoken, said Silvano, who serves as NAR’s 2018 Global Real Estate Commitee Liaison. “You cannot engage a homebuyer who speaks a different language from the loan officer,” Silvano said. “The loan officer cannot explain the technical words of the loan documents to a person who is a first-time buyer.” The Federal Housing Finance Agency will begin including Spanish, Chinese, Korean and Tagalog as language options on uniform mortgage applications. Silvano said a barrier to homeownership for some minority

For Chicago REALTOR® Zeke Morris, chairing the NAR Fair Housing Act Anniversary Working Group provides an opportunity to further the organization’s commitment to upholding equal housing access. That won’t happen without tough conversations along the way, he said. “NAR is the voice of real estate throughout the United States” Morris said. “In order to maintain that title, we have to take on some uncomfortable situations or have some fierce conversations. Conversations that will ultimately change the narrative for years to come.” Morris, a former president of the Chicago Association of REALTORS® who currently serves as the Chair of the Housing Opportunity Working Group of the Illinois REALTORS®, is leading the 10-member panel shaping NAR’s commemoration of the historic act signed 50 years ago. The challenge before us was to look at the REALTOR® organization’s role in supporting fair housing in the years since the Act’s 1968 signing. Which meant that we had to first acknowledge that the REALTOR® organization was on the wrong side of fair housing in the past. This allowed a space for healing, and with the help of our fair housing partners, we were able to look at what is important to all of the communities that we serve, Morris said. “I’m looking at

buyers is failing to meet the traditional mortgage qualifying standards. Many minority homebuyers use cash more than they use credit, or they may be small business owners who don’t have W-2s. The result can be loan denials or credit extended with exorbitant interest rates. One solution is to look at alternative credit scoring methods which expand the types of credit that can be considered. Using alternative credit measures such as car insurance, phone bills or rent payments could help boost homeownership across the board in minority communities, she said. Fair housing access is improving, but discrimination still exists and is often subtle, Silvano said. A minority homebuyer might get shown fewer property listings or a seller might assume that an Asian American buyer will be paying with cash. “I try to educate my clients and make sure that they are aware that there are rules and that it’s just fair to get all the offers in and you judge based on their ability to pay, you judge based on their credit and not on the color of their skin because you’ll never know who these people are,” she said. “I have fired some of my clients because they want me to do something that is against what I believe in,” she said. “I grew up with my father saying, ‘Just do the right thing. Do the right thing.’”

LEGAL NOTE: A broker who has a client indicating a desire to discriminate based on protected classes, should be “fired” immediately and referred to their attorneys to advise them on fair housing laws and regulations that apply to them.

this as an opportunity for us to say, 10 years from now, what do we want to look like?” he said. “What do we want our community to look like?” It is important for REALTORS® and the real estate industry to lead by example. Morris said he is encouraged to see a new generation of leaders addressing fair housing issues and partnering with multicultural real estate groups.

“ If we’re going to grow, we have to be comfortable with being uncomfortable.” “I’m encouraged that we’re having these conversations today. From the perspective of 50 years ago, they were very uncomfortable and even today they’re uncomfortable, but I think that I’m encouraged that people are at least willing to have that conversation,” Morris said. “If we’re going to grow, we have to be comfortable with being uncomfortable.” Morris saw firsthand how the struggle for fair housing played out. Ninety-eight percent of students at Lindblom Technical High School were white during his freshman year. By the time he graduated, the school was 98 percent African American, he said. Fair housing doesn’t mean every community will be the same. It doesn’t mean that underserved communities need million dollar homes to be equal, Morris said. What it means is that each community should have the chance to be a thriving and sustainable place where people can work and live and build a normal, healthy life for themselves and their children, he said. “That’s what our job is, to prepare and make things better for the future,” Morris said.

Ezekiel (Zeke) Morris

Vicky Silvano

broker-owner of EMA Realty and Management in Chicago

broker with Century 21 SGR in Chicago PHOTO BY ANN LONDRIGAN

ILLINOIS REALTOR® April 2018

FAIR HOUSING PARTNERS The Asian Real Estate Association of America was founded in 2003 to represent the interests of the Asian real estate market nationwide and to promote the mission of increasing Asian American homeownership. AREAA has one chapter in Illinois, the Greater Chicago chapter. www.areaa.org/chicago The National Association of Gay and Lesbian Real Estate Professionals was founded in 2007 with the mission of advocating on behalf of the Lesbian, Gay, Bisexual and Transgender (LGBT) community on issues of housing and discrimination laws. naglrep.com/join The National Association of Hispanic Real Estate Professionals was founded in 1999 with a mission of advancing Hispanic homeownership through industry education, community advocacy and networking. NAHREP has a chapter in Chicago. nahrepchicago.org The National Association of Real Estate Brokers was founded in 1947 and is the oldest minority professional trade association in the country. The Chicago board, the Dearborn REALTIST® Board, predates NAREB’s founding, having been formed in 1941. NAREB has a mission to promote democracy in housing for the African American community and other minority groups through advocacy, action and activism. chicagoREALTIST.com The Women’s Council of REALTORS® was formed in 1938 and has the mission of advancing women as professionals and leaders in business, the real estate industry and in their communities. WCR has eight chapters in Illinois including Peoria, Rockford, Chicago and five in the Chicago suburbs. www.wcr.org

Forum participants (l to r): Moderator Genie Birch, Nykea Pippion-McGriff, Tommy Choi, Jessica Barrera, Vicky Silvano and Courtney Q. Jones.

FIGHT FOR FAIR HOUSING CONTINUES

At the Illinois REALTORS® Public Policy Meetings in January, a panel of REALTORS® talked about the state of fair housing, equality in the homebuying process and some of the issues that still exist. Here are their insights: NYKEA PIPPION-MCGRIFF

broker with DreamTown Realty in Chicago and a past president of the Women’s Council of REALTORS®, Chicago

“The fair housing fight is not a 50-year fight; it’s a 2018 fight, a 2019 fight,” REALTOR® Nykea PippionMcGriff said. REALTORS® are doing a good job of identifying what not to do, but they could stand to do a better job promoting what to do, she said. One key is staying educated about potential fair housing issues. She said it’s not uncommon for her to get asked by another broker if someone has to rent to someone with a Section 8 voucher, which is a fair housing question since Section 8 voucher holders are included in the definition of source of income, a protected class under Cook County’s Human Rights Ordinance. “It is our job to stop what we’re doing at that point to educate the consumer, to educate the client, to educate your peer who is asking you that question and point them to some resources and, preferably some classes,” she said. “The face of the fair housing fight has changed.” It is also important for REALTORS® to be well-versed in the different affordable housing and accessible credit programs that are available to help people stay in their homes in neighborhoods that are going through gentrification. People who have lived in communities for years could find themselves forced to move as property values climb beyond affordability, she

Commemorating 50 Years Of Fair Housing

said. Too often, minority communities can find themselves hardest hit in the transition and REALTORS® need to be proactive in helping them. Overall, it is imperative that REALTORS® educate themselves, but they must also hold themselves accountable when they see something that seems wrong, she said. “When discrimination is blatant or someone is doing something that’s illegal, against license law or against the REALTOR® Code of Ethics, you’ve got to call them on the carpet. “

TOMMY CHOI

co-founder of Weinberg Choi Residential Team and broker-owner of Keller Williams Chicago-Lincoln Park, president-elect of Chicago Association of REALTORS® and vice chair of NAR’s Young Professionals Network Advisory Board

An important part of adequately and fairly representing minority clients is understanding the cultural differences that might play into the homebuying process and their decision-making. REALTOR® Tommy Choi’s parents immigrated to the U.S. from Korea, so he understands the cultural nuances of working with other Korean American clients. For example, they might not push for a home inspection because they don’t want to inconvenience the parties or because many of them are small business owners, they might not have the W-2s needed to apply for a mortgage. Understanding people and building relationships is a lesson his father instilled in him. “You’re going to meet people that you’re

www.IllinoisRealtors.org

FAIR HOUSING AT A GLANCE:

going to be the very first Korean, let alone Asian person, that they have ever met and they might like that and some might not,” Choi said. “Either way you have to treat everyone equally and find a way to build a relationship.” When there are fair housing issues, REALTORS® need to share their stories and not to dwell on the problem, but to bring them to the light and focus on the solutions, he said.

The Fair Housing Act codifies a national policy of fair housing throughout the United States. The law makes illegal any discrimination in the sale, lease or rental of housing, or making housing otherwise unavailable, because of race, color, national origin, religion, sex, disability, familial status.

OTHER PROTECTIONS: Americans with Disabilities Act – Title III of the 1990 law prohibits discrimination against persons with disabilities in places of public accommodations and commercial facilities.

JESSICA BARRERA

broker-owner of West Town Realty in Chicago and president of the National Association of Hispanic Real Estate Professionals - Chicago Chapter

REALTOR® Jessica Barrera got into real estate after seeing her parents get bad advice from a real estate agent. Her parents weren’t familiar with the homebuying process, didn’t speak English and signed paperwork that wasn’t in their best interest, she said. The experience prompted her to become a REALTOR® to help her family, but she soon saw that there were other people in her community like her parents who needed a bilingual agent. Buyers who don’t speak English have the common goal to become a homeowner, and they shouldn’t have to worry about being taken advantage of, she said. “We signed faithfully because of a dream that we have, praying that the person in front of us or representing us is being an honest person,” Barrera said. Everyone needs to realize that sometimes discrimination is right in front of you and sometimes you don’t see it until you go back and compare notes, she said. Barrera shared the experience of an agent in her office who took a client dressed in construction work clothes to see an expensive home. The listing agent stopped them and said the client wouldn’t be able to afford the property. Unbeknownst to the listing agent, the client owned the construction company and was ready to pay cash for the home. “Have zero tolerance for it and it really starts with us,” she said. “We’re not just here to serve our own communities, we need to be an example that we are here as REALTORS® to serve everybody.”

Equal Credit Opportunity Act – The 1974 law makes discrimination unlawful with respect to any aspect of a credit application on the basis of race, color, religion, national origin, sex, marital status, age or because all or part of the applicant’s income derives from any public assistance program. State and Local Laws – It is also important to check local guidelines as there are state and local laws prohibiting discrimination against additional classes not covered by federal law. For example:

In Illinois, the Illinois Human Rights Act prohibits discrimination on the basis of race, color, religion, sex (including sexual harassment), national origin, ancestry, military status, age (40 and over), order of protection status, marital status, sexual orientation (which includes gender-related identity), pregnancy, unfavorable military discharge and physical and mental disability. In Cook County, Section 8 voucher holders were included in the source of income protected class under Cook County’s Human Rights Ordinance effective Aug. 8, 2013. And some municipalities, such as Naperville and Champaign, have city ordinances that further identify protected classes.

The REALTOR® Code of Ethics addresses fair housing: Under Article 10 it states: “REALTORS® shall not deny equal professional services to any person for reasons of race, color, religion, sex, handicap, familial status, national origin, sexual orientation, or gender identity. REALTORS® shall not be parties to any plan or agreement to discriminate against a person or persons on the basis of race, color, religion, sex, handicap, familial status, national origin, sexual orientation, or gender identity. REALTORS®, in their real estate employment practices, shall not discriminate against any person or persons on the basis of race, color, religion, sex, handicap, familial status, national origin, sexual orientation, or gender identity.”

A LASTING MONUMENT TO FAIR HOUSING Illinois REALTORS® is marking the 50th anniversary of the Fair Housing Act with a monument in Bicentennial Plaza – A REALTOR® Community Partnership at Illinois REALTORS’ Springfield headquarters. It will be an enduring symbol of the progress made in fair housing and the industry’s commitment to protecting this right. The monument will be unveiled at an April 9 ceremony, and when installed will anchor a corner of the Plaza.

FAIR HOUSING RESOURCES: Fair housing resources from National Association of REALTORS® (NAR): FairHousing.Realtor

Fair housing resources, links and videos from Illinois REALTOR®: http://bit.ly/IllinoisREALTORS_FairHousing Illinois Human Rights Statute: http://bit.ly/IL_HumanRightsAct

ILLINOIS REALTOR® April 2018

USING SOCIAL MEDIA TO CONNECT WITH CLIENTS AND GROW YOUR BUSINESS:

Q&A WITH KATIE LANCE By Bill Kozar, Content Marketing Specialist

Katie Lance wants REALTORS® to feel the same joy she gets when her social media posts cause followers to say, “I feel like you know me.” That kind of connection comes through sustained effort, but she advises newcomers to start simply and not get overwhelmed by the multitude of available choices. As REALTORS® gain more experience with social media, they can nurture relationships that will grow their businesses. “My goal is always to make people feel empowered no matter their age or background,” she says. The social media and marketing expert will offer her best ideas to attendees of the May 3 Illinois REALTORS® Conference & Expo at the Gateway Center in Collinsville. The CEO and owner of Katie Lance Consulting will deliver two sessions: “Get Social Smart: How to Hone Your Social Media Strategy” and “How to Tell Your Story Online.” She agreed to answer a few questions about her favorite topics in anticipation of her Illinois appearance.

18 www.IllinoisRealtors.org

Q.WHAT DO YOU LOVE ABOUT SOCIAL MEDIA LATELY? The whole issue of whether Facebook is just showing us the news we want to see or not is fascinating. And then there’s the subject of ‘fake news.’ But what do I love? I’d have to say Facebook Live has captured my attention. In social media, you have to be a ‘thumb-stopper’ and Facebook Live is doing that. You have to have content that’s the most engaging. It’s more important than ever before to create content that sparks conversation. Q. HOW IMPORTANT IS ORGANIZATION TO SOCIAL MEDIA SUCCESS? I learned the value of having an editorial calendar when I worked on real estate news, so I think it’s important to develop a social media calendar that projects topics three, six or even 12 months out. Use social media to answer the questions your customers frequently ask you. I think you can work smart and sometimes prepare several messages in one sitting while scheduling them to appear in the future. Q. HOW DO REALTORS® PREVENT SOCIAL MEDIA FROM BECOMING A ‘TIME SUCK?’ Although REALTORS® wear so many different hats in their jobs, when it comes to social media they don’t have to be all things to all people. First, they need to determine the social media platforms that they enjoy the most. Second, they need to find out the platforms their clients like the most and then focus on the platforms of their ideal clients. For example, if your ideal market is millennials, you’d be wise to learn about Instagram and Snapchat. But, the biggest mistake agents can make is what I call ‘spray and pray.’ That’s when they use the same messages for everyone, regardless of the platform. It just doesn’t work. Every platform has its own unique language and characteristics.

For example, on Twitter, we use hashtags. But not so much on Facebook. Q. HOW DO YOU MEASURE THE EFFECTIVENESS OF YOUR SOCIAL MEDIA STRATEGY? With the social strategy, it’s a marathon, not a sprint. It might take six, 12 or 18 months before you get the right response. Find out where you’re getting traction. If certain things are doing well, keep doing them. If you can stick with social media strategy long-term, that’s where the magic happens. Q.WHAT DO YOU MEAN ABOUT EVERYONE HAVING AN ONLINE STORY TO TELL? Hand in hand with social media presence is developing an online story for every REALTOR®. One of the first things people do these days is ‘Google’ a business to learn more about it, to get reviews from customers. I want REALTORS® to discover what pops up when somebody ‘Googles’ them. It is

SPONSORS

22 www.IllinoisRealtors.org

4 ADVANCED TECH TOOLS THAT REALTORS® ARE USING NOW By Bridget McCrea

REALTORS® and brokers from across the nation share their thoughts on innovative technology that’s helping real estate professionals connect with clients and work smarter. It’s been 63 years since Delbert Williams crafted the first Supra lockbox out of a Yale bicycle lock and an aluminum container. Since then, the pace of technological innovation has picked up, bringing real estate professionals along with it. Today, with an ever-expanding array of new technology applications, devices, software and gadgets in front them, real estate pros still like to stay a step ahead of their clients— many of whom are also technophiles—on the communication, marketing and business

management fronts. “We’re constantly having technology thrown at us, almost on a daily basis,” says Geoff Bray, broker and co-owner at Engel & Völkers in Minneapolis. Sorting through all of the options is both time consuming and a bit of a crapshoot, particularly for busy real estate professionals who don’t always have the resources to thoroughly experiment with and test the new innovations before buying.

ACCURATE, INTERACTIVE CMAS IN REAL-TIME

Whether it’s a two-page synopsis or a lengthy tome, the comparative market analysis (CMA) stands as one of the most important tools for homeowners who want to know what their properties are worth. Recently, @properties in Chicago rolled out a new, interactive CMA platform that updates continuously in real-time (from the local MLS) to determine market conditions and trends, and to gauge the current value of a home. According to Kevin Van Eck, vice president

of training and brokerage services, the platform continually evaluates comparable properties relative to a specific home sale or search, taking into account variables such as location, property features, market times and price changes. “In the past, the only CMA solutions we’ve used were ‘static,’ and/or had to be printed out on paper,” Van Eck says. “If the seller had questions, agents had to then log into the MLS and get the information, or use a different tool to find what they needed.” Van Eck says the brokerage also realized

To help, Illinois REALTOR® spoke to a handful of agents and brokers around the country who are using advanced technologies that are producing results right now. Here are four that you’ll want to consider adding to your company’s tech toolbox:

that sellers were visiting syndicated sites to get their home valuations—a process that left agents wondering exactly which properties the sellers were viewing to come up with their own comps. “We built this digital, interactive CMA to pull directly from the MLS, so it’s all accurate and updated by the minute,” says Van Eck, noting that adoption has been high for the platform, which was rolled out in late-2017. “Agents can create and send out a CMA ahead of meetings with the sellers, who can then search for their own comps and ‘pin’ their own relevant properties.”

Kevin Van Eck

vice president of training and brokerage services @properties in Chicago

continued on p24

ILLINOIS REALTOR® April 2018

SHOWCASING HOMES IN A VIRTUAL REALITY THEATRE The days of driving buyers around to get a “first look” at prospective homes is over, at least for the team at Engel & Völkers, where a recently-built virtual reality (VR) theater serves as a place where clients can stop in and view listings using the firm’s Oculus Rift VR device. Featuring all of the national brokerage’s listings that have been shot in VR (not just those in the Minneapolis area), the theater has only been operational since October and is already paying for itself. Lindsay Bacigalupo, CEO and coowner, says the idea came about when local statistics revealed that typical buyers spend less than 30 seconds looking at a listing online, but that they spend 7-8 minutes on a VR listing. “With our theater, we can give our sellers very real, tangible exposure,” says Bacigalupo, whose agents are using the theater for wine-and-cheese nights and other events. The fact that VR headsets are a novel

concept for most consumers has boosted attendance at these events. Bacigalupo says the VR theater has also proven valuable in marketing new construction, where homes sell so quickly that builders don’t even have models available to visit anymore. “We were at the point where we had to ask past clients if we could come in and show their homes,” she recalls. “Now, we can create a tour in VR and bring buyers to one place (the theater) to tour anywhere from two to 10 homes, depending on the size of the community. They can walk through them all in person.”

Lindsay Bacigalupo CEO and co-owner, Engel & Völkers in Minneapolis

FILLING THE HUMAN ROLE WITH CHATBOTS

Mark Choey

co-founder and CTO Climb Real Estate in San Francisco

24 www.IllinoisRealtors.org

Computer programs designed to simulate conversation with human users, especially over the Internet, chatbots help companies save time and effort by automating functions like customer support. And while real estate is still a largely relationship-based business, where “real” people talk to one another on the way to the closing table, there is also a place for non-human-based customer interactions. At San Francisco-based Climb Real Estate, chatbots are helping to fill the void that can form online when a customer needs help but an agent isn’t standing by ready to chat live. “Let’s face it. Real estate agents aren’t always at their desks, waiting to chat with someone online,” says Mark Choey, co-founder and

Chief Technology Officer for the brokerage, which is currently utilizing ReadyChat’s live chat service, but also keeping an eye out for more advanced chatbot offerings. Those built on artificial intelligence (AI) platforms, for example, could play an even larger role in the online customer service realm. “At this point, most chatbots start off being handled by the computer, but then hand the customer off to a human when things get too [complicated],” Choey says. When a potential client mistypes a word, for example, or uses non-traditional (or unexpected) language, the chatbot can’t always handle those complexities.” Chatbots are also helping Climb Real Estate’s agents be more productive. For instance, looking up public tax records that show property purchases, owners, home size and purchase prices has “always been very onerous,” says Choey. “It requires multiple logins and the user interfaces are poor. A chatbot allows agents to open up Messenger, enter a request (i.e., look up 123 Main Street, Chicago, IL) and move onto more pertinent work as the bot gathers all of the relevant details. This results in real productivity gains for agents, who can get more work done in the limited time that they have.”

HOLDING FACEBOOK LIVE ʼVIRTUALʻ OPEN HOUSES More than just a social media platform, Facebook is a place where many real estate professionals start (and continue) conversations with current and prospective customers. At AE Home Group in Maryland, Jeff Miller, co-founder, says his team has been using Facebook Live to hold virtual open houses to attract buyers. (Facebook Live is a basic feature that offers live-streaming video capabilities to users.) It works like this: On Sundays between 1 p.m. and 3 p.m., team members set up a camera at one of their listed properties and then use Facebook to answer attendees’ “live” questions. The events often attract hundreds of local buyers, says Miller, who has sold several properties using this marketing approach. To capture the content, the company uses livestream cameras from Mevo. Add a cheap microphone stand and a mobile app to the equation and you get a professional setting for streaming to platforms such as Facebook and YouTube. “The cool thing is that we can edit in realtime,” says Miller. “It gives the presentation a more professional feel than you can get from just streaming them on a mobile device.” “Video is becoming more and more important for our clients, who are spending more time on YouTube than they are on Google,” says Miller. “It gives us a chance to get more

impressions, put up more advertising and make more revenue.” It also helps AE Home Group showcase some of the social media platform’s new promotional strategies, which are less focused on company pages. “Facebook is trying to get more video on its platform and allowing those videos to achieve a larger reach,” says Miller. “By holding Facebook Live events, we can create content that actually gets us more impressions and—at least in real estate—the more times people see you, the more likely it is that you’ll find a buyer.” That’s exactly what he says happened recently when a buyer made an offer and purchased one of AE Homes’ listings within one week of seeing the virtual open house. The live events are equally as valuable for listing agents. “From the thousands of people who come to them, we always get at least one person who wants to do business with us as a result,” says Miller. “In

terms of acquiring new clients, it’s been a real silver bullet in this market.” About the writer: Bridget McCrea is a business, real estate and technology writer in Miami, Fla. She can be reached at bridgetmc@earthlink.net.

Jeff Miller

co-founder AE Home Group in Maryland

3 Ways Blockchain Could Change Real Estate Real estate is an industry where a lot of money changes hands and where the typical American moves 11.7 times during his or her life, according to the U.S. Census Bureau. Blockchain is being looked upon as a viable route to more secure, streamlined transactions. A shared, distributed ledger that facilitates the process of recording transactions and tracking assets in a business network, blockchain applies to tangible assets (i.e., a house, a car, cash, land) or intangible like intellectual property (patents, copyrights, or branding). The Forbes article, “Three Ways Blockchain Could Transform Real Estate In 2018,” outlines three ways blockchain could change the way buyers and sellers conduct their financial transactions: 1. MLS Property Data: Because it enables secure data sharing, blockchain can serve as the foundation for a shared, national database that provides real-time access to accurate “straight from the source” property information. It also opens up more opportunities for collaboration among players in the real estate industry.

2. Title Records: Two years ago, Cook County began experimenting with blockchain for the transfer and tracking of property titles. When someone buys a property, he or she receives a “digital token” and the traditional paper deed. The documentation of the token transfer is then used as proof of ownership.

3. Transactions: Because blockchain doesn’t require a “trust” between two parties to conduct business, it allows consumer financial information to be shared securely with other parties. For instance, one person can send funds to a recipient with the knowledge that those funds won’t be released until the transaction is formally complete, thus speeding up the transaction management process.

ILLINOIS REALTOR® April 2018

Meet the 2018 Illinois REALTOR® of the Year

Michael D. Oldenettel

By Courtney Westlake

During a real estate career spanning nearly three decades, Michael D. Oldenettel has demonstrated a dedication to industry excellence. Oldenettel was named the 2018 Illinois REALTOR® of the Year at the state association’s Public Policy Meetings in East Peoria in January. He will be formally recognized for this achievement at the REALTOR® of the Year Award banquet on April 9 in Springfield. HOW DID YOU GET STARTED IN THE REAL ESTATE BUSINESS? I was asked! In the late 1980s, I was a local radio announcer, writer and advertising rep. A co-worker would take me to a coffee club gathering where I grew to know several local businessmen. One of them, REALTOR® Charlie Heitbrink, simply said to me, “Did you ever think about getting into the real estate business?” That’s all it took. I was fresh out of college and had to dress the part of a real estate professional. I wore a jacket and tie and fake glasses to look older. Charlie not only brought me into the business, but he also mentored me. I don’t think he realized the influence he would have on my career. WHAT CHANGES HAVE YOU SEEN IN THE INDUSTRY DURING YOUR CAREER? I can remember how excited we were to get a fax machine! As “seasoned” REALTORS®, we talk about the printed MLS books which are a far cry from the systems we now enjoy. The industry has evolved and technology has led the way.  I’ve witnessed changes in the way we transact business, in lending practices, in the state’s License Law, in business models, in training and even in clients’ needs and expectations. I’ve also witnessed the evolution in the role of agents, brokerages and associations. WHY IS POLITICAL ADVOCACY SO IMPORTANT TO YOU? I realized a long time ago that external influences upon our industry are dictating how we conduct our business. That’s a concern, especially as legislation often touches directly on the real estate business and private property rights. I discovered through REALTOR® advocacy I had a vehicle not only to protect those property ownership rights, but also the rights of my neighbors and clients. It’s a passion of mine to be involved and to let others know how these decisions affect them. 26 www.IllinoisRealtors.org

Michael D. Oldenettel is congratulated by his colleagues after being announced 2018 Illinois REALTOR® of the Year during the association's Public Policy meetings.

WHAT ADVICE DO YOU GIVE TO SOMEONE JUST BEGINNING A REAL ESTATE CAREER? Find a brokerage that has the right culture of caring and sharing. Find a brokerage that will invest in you and has the tools for an agent’s success. And don’t think for a minute the “old ways” don’t work. Frankly, “back-to-basics” is a resonating theme! But also: Don’t kid yourself. You must be self-motivated. Someone can keep you accountable, but they can’t do the work for you. Take advantage of every training opportunity you get, and filter out what you don’t need. And remember, it’s rare that an agent comes out of a learning experience without at least one good idea.

WHAT DO YOU CONSIDER A TOP ACHIEVEMENT?  I personally take credit for none. I am a consensus leader and any achievements I enjoyed have been the result of a team effort. I have been a part of difficult organizational changes for associations, but I always approach these with a mission of doing what’s best for our members. An example was the reduction of the Illinois REALTORS®’ Board of Directors from more than 100 members to just 28. We are the sixth largest state association in the country, and now have one of the smallest working boards in the nation. That means I was Illinois REALTORS®’ president when we

Michael D. Oldenettel is managing broker of RE/MAX Professionals in Springfield, Ill. He is a longtime member of the National Association of REALTORS®’ Board of Directors, and he led the statewide association as president of Illinois REALTORS® in 2013. As a proponent of REALTOR® political advocacy, Oldenettel is among an elite group of REALTORS® who have been inducted into the RPAC Hall of Fame for lifetime contributions of at least $25,000. He is a past president of the Illinois Real Estate Educational Foundation and has served as dean of the REALTOR® Institute Working Group. He was appointed in 2016 by Gov. Bruce Rauner to serve on the Illinois Real Estate Administration and Disciplinary Board. In 2017, Oldenettel was honored as local REALTOR® of the Year for the Capital Area REALTORS® in Springfield.

2018 LOCAL ASSOCIATION REALTORS® OF THE YEAR

asked many on our old Board of Directors to vote themselves out of a job! It was a brave, bold step for everyone involved, but it was the right thing to do for the future of the association.   WHAT HAS BEEN THE MOST MEANINGFUL EXPERIENCE TO YOU, AND WHY WOULD YOU ENCOURAGE OTHER REALTORS® TO GET INVOLVED WITH THEIR ASSOCIATIONS? Two things come to mind:  My recent appointment to the Illinois Real Estate Administration and Disciplinary Board provides me the opportunity to make a difference in the industry by reviewing and approving education courses for licensees, and serving as a regulator protecting the consumer. Secondly, helping others to get involved in their association and leadership. If we don’t help others to grow where we have grown, then we don’t grow, we don’t adjust, and we don’t evolve.     WHAT DO YOU SEE AS THE MOST PRESSING ISSUES IN REAL ESTATE TODAY? The need for an agent, a brokerage and an association to continue to demonstrate their relevancy: whether as an agent to the consumer, a brokerage to its agents or an association to its members. I firmly believe the real estate industry is a relationship business, and the key to relationships is communication. Political issues are another priority. We have to be involved, not just for our own sakes, but for anyone who owns real estate. Finally, we still need better controls on our data. We can’t sit idly by while others attempt to change our business landscape for us. We have to evolve. WHAT ARE YOUR THOUGHTS ON BEING NAMED 2018 ILLINOIS REALTOR® OF THE YEAR? There is nothing more humbling than having your peers bestow this honor on you. You reflect on all the meetings you’ve attended, the classes you’ve taught, the discussions you’ve led and you focus on the task at hand. I have always been a volunteer, and I choose to be involved. I’m grateful for everyone I have worked alongside, and I can’t thank my colleagues enough for making me feel appreciated.

Lisa Lockenvitz

Steve Myers

Joe P. Doolin

Jeffrey Barkstall

Bloomington-Normal

Capital Area

Central Illinois

Champaign County

Dan Wagner

Janet Shank

Marianne James

Joy Baez

Chicago

Danville

Egyptian

Fox Valley

Paul Lauschke, Jr.

Casey Meyers

Vicky Turner

Crystal Lilley

Greater Gateway

Heartland

HomeTown

Illini Valley

Cindy Schimmel

Thomas Krettler

Carrie Healy

Andy Velkme

KIFAR

Mainstreet

NSBAR

NICAR

Pat Cesario

Jana Heffron

Marty Eilers

Patricia (Patti) Kloepping

Oak Park

Peoria

Quad City

RANWIL

Sponsored by the Illinois Real Estate Educational Foundation and the Illinois REALTORS®

Courtney Westlake is a writer and photographer from central Illinois.

Brad Kreuger

Michelle Huber

Eddie Ruettiger

RASI

Rockford

Three Rivers

ILLINOIS REALTOR® April 2018

AT THE CAPITOL Julie Sullivan | Senior Director of Legislative & Political Affairs

REPEAL IN RENT CONTROL BAN OPPOSED BY REALTORS® While the 2018 legislative session will be dominated by the budget, this year’s election will also impact the legislative calendar and the issues that become front and center. We urge you to take the unique opportunity to engage with your legislator on these issues at our annual REALTOR® Lobby Day on April 10 in Springfield. Legislators count on your expertise in real estate to help them understand the true impact of legislative proposals on their communities and their constituents. A top issue on our agenda this year will be stopping legislative efforts to repeal the Rent Control Preemption Act. The Rent Control Preemption Act was put on the books by a proactive REALTOR® effort in 1997, and strictly prohibits local governments from enacting rent control measures. We STRONGLY OPPOSE several bills currently pending in the Illinois General Assembly. House Bill 2430 (Guzzardi), Senate Bill 2310 (Biss) and Senate Bill 3542 (Sandoval) seek to repeal the Rent Control Preemption Act. The sponsor and supporters of the bills have said they want their local communities to be able to impose rent control ordinances (See a related article on page 31 regarding a non-binding advisory referendum in a handful of wards in the city of Chicago). Senate Bill 3512 (Hunter), which also repeals the Rent Control Preemption Act, goes well beyond in that it actually establishes rent control statewide. The bill creates a “rent control board” in each county charged with setting rent amounts for persons at 120 percent or below the area median income for owner-occupied residential structures of six or fewer units.

Rent control in the news: http://bit.ly/RentControl_Retirement http://bit.ly/RentControl_Harms 28 www.IllinoisRealtors.org

Rent control, a legislatively mandated regulatory mechanism, is widely discredited by many if not most economists and many housing advocates. Rent control is destructive and counterproductive in many ways, is very complicated to administer and would have many unintended consequences. Here are just a few of the concerns we have expressed to lawmakers with a legislative measure that would allow communities to impose rent control by local ordinance: Rent control is a complete disincentive to investment in rental property. It obviously caps the return on investment for rental property, and when you cap the costs that can be recovered, you’re going to get less of it – in this case, rental property. It’s mind-boggling that after what we’ve been through in the housing market since 2008, that Illinois would consider a bill that sends the message, “We don’t want to develop, rehabilitate or improve our housing stock.” In our view, that’s the message these bills send. In addition to drying up investment in

rental property, one of the worst effects of rent control is that it discourages property owners from maintaining and upgrading their property. Regulatory costs, property taxes and costs for services will continue to rise, but the owner’s rental revenue will remain stable, leaving a shrinking pool of funds available for maintenance and improvement. Property taxes and other fees and regulations placed on rental property owners are already very high and are rising faster than rent increases in many cases. Out of control property taxes and regulations are a big factor in the upward pressure on rents – and yet these costs aren’t capped, only the income from the property is capped. We can only imagine the morass of bureaucracy it will take to administer rent control, and it may encourage an illegal black market in rent-controlled units. Greg St. Aubin, Senior Vice President for Governmental Affairs for Illinois REALTORS®, contributed to this article.

APRIL AND MAY 2018 SESSION SCHEDULE AND KEY DATES Apr 9-13 Apr 13 Apr 17-20 Apr 23-27 Apr 27 May 1-3 May 8-11 May 15-18 May 18 May 21-25 May 25 May 26-31 May 31

House and Senate in Session First Chamber Committee Hearing Deadline House and Senate in Session House and Senate in Session First Chamber Third Reading (Final passage) Deadline Senate in Session House and Senate in Session House and Senate in Session Second Chamber Committee Hearing Deadline House and Senate in Session Second Chamber Third Reading (Final passage) Deadline House and Senate in Session Scheduled Adjournment Date

ILLINOIS REALTORÂ® April 2018

Congratulations

Michael D. Oldenettel

REALTOR of the YEAR ÂŽ

2018

Illinois REALTORSÂŽ and all of its members congratulate Michael D. Oldenettel on this prestigious recognition.

Thanks, Michael, for all you have given to the real estate industry! 30 www.IllinoisRealtors.org

Mike Scobey | Director of Local Advocacy and Global Programs

HOME RULE AND RENT CONTROL ISSUES IN BUSY ILLINOIS MARCH PRIMARY Home Rule: In almost every election cycle, Illinois REALTORS® gets involved in opposing Home Rule referenda and the March Primary Election was no exception. There were three municipalities seeking Home Rule status: Homewood, Merrionette Park (both in Cook County) and Rockford in Winnebago County. Home Rule is a form of municipal government which authorizes several policies that are troubling to REALTORS® and property owners including: real estate transfer taxes, point-of-sale home inspections, rental property inspections and licensure. In addition, Home Rule units have the ability to increase property taxes without any kind of limitation. Under the Illinois Constitution, municipalities with a population of 25,000 or more are automatically granted Home Rule status. For those under 25,000, municipalities must seek voter approval in order to become a Home Rule unit.

Rockford is a unique situation. Back in 1983, citizens there made the extraordinary effort to get Home Rule rescission (also allowed under the Constitution) on the ballot, and voters followed suit and ended Home Rule status. This year, the question of returning to Home Rule status was put on the ballot by the city council. Rent Control: In 10 wards in the city of Chicago, an advisory question was placed on the ballot regarding rent control. The question, “Should the state repeal the ban on rent control?” is an advisory ballot measure and has no legally binding effect. If these are approved by voters, Chicago lawmakers are not required to adopt a rent control policy in the city. But more importantly, all local and state lawmakers are prohibited—by state law—from enacting any kind of rent control law or regulation. The Rent Control Preemption Act was passed by the Illinois legislature in 1997, with the support of Illinois REALTORS®. In 2017 and again this year, there have been legislative attempts to repeal this Act. Illinois REALTORS® strongly opposes any repeal attempt. Rent Control is discredited by many, if not most, economists and

many housing advocates. Rent control is counterproductive to producing more affordable housing, and is very complicated to administer. Independent Expenditure Activity: In every election cycle, there are “REALTOR® Champions.” These are local and state legislators who strongly support REALTOR® positions and who have tough re-election campaigns. Illinois REALTORS® will work to help them get re-elected. We do this through “Independent Expenditures” which allow us to do direct voter outreach on behalf of these candidates.

Here is an example of a mailer Illinois REALTORS® did on behalf of State Rep. Jim Durkin in the March Primary.

For more election coverage visit: www.IllinoisRealtors.org/Advocacy/March-2018-Primary-Roundup

ILLINOIS REALTOR® April 2018

REALTORS® LOOKING FOR OPPORTUNITY, GLOBAL CONNECTIONS AT MIPIM By Bill Kozar, Content Marketing Specialist

A delegation of Illinois REALTORS® traveled to Cannes, France March 13-16 to attend MIPIM, the largest international real estate conference in the world. Ten Illinois REALTORS® received stipends up to $1,500 to offset costs to attend this annual conference that allowed them to market the state to foreign real estate investors, build their own businesses and network with

business, development and real estate professionals from around the world. Before they left for France, three REALTORS® — Joy Axelson, Vicky Silvano and Moses Hall — talked about what drew them to the MIPIM conference, what they hope to accomplish on the trip and how they think the experience will help them in business.

Joy Axelson,

managing broker for Axelson Realty LLC in Northborook

Vicky Silvano,

broker associate for Century 21 SGR in Chicago and 2018 NAR Global Real Estate Committee Liaison PHOTO BY MATT DIFANIS

For more info about these delegates visit

http://bit.ly/IllinoisREALTORS_MIPIM 32 www.IllinoisRealtors.org

Moses Hall,

investment property specialist of Miller Chicago Real Estate

INLAND CELEBRATES 50-YEAR ANNIVERSARY IN 2018 By Bill Kozar, Content Marketing Specialist

In 1968, four Chicago Public School teachers combined their interest in real estate with teamwork and determination and incorporated their own business. Fifty years later, The Inland Real Estate Group of Companies, Inc., has become one of the largest commercial real estate and finance organizations in the United States, and the four former educators continue to play vital roles in its success. Inland, which is based in Oak Brook, employs more than 1,000 people, manages more than 73,000 apartments nationally, sponsors more than 720 investment programs and serves more than 490,000 investors. Since its founding, Inland has purchased more than $45 billion in commercial real estate across 49 states. Dan Goodwin, the chairman and chief executive officer, serves as the organization’s leader, strategist and governmental lobbyist. Bob Baum is The Inland Real Estate Group’s executive vice president and general counsel, and he manages nearly 30 lawyers and paralegals. Joe Cosenza, vice chairman of The Inland Real Estate Group and president of Inland Real Estate Acquisitions, acquires property for investment groupings. Bob Parks, the director of Inland Real Estate Investment Corporation, sells Inland’s products to investors.

Meet the four founders of Inland (l to r): Bob Baum, Bob Parks , Joe Cosenza and Dan Goodwin.

SIGNS OF GROWTH Inland’s early success began by building and managing apartments, converting condominiums and developing land. Within five years, the four founders had quit teaching to devote themselves totally to the business. By 1979, Inland was managing more than 10,000 apartments. By 1985, the number of their Chicago-area apartments reached 40,000. In the 1990s, Inland added retail shopping centers and industrial properties to its repertoire. By 1992, it owned commercial property in 36 states, and in 1993 Shopping Center World magazine ranked it the 47th top shopping center owner in the

U.S. In 1994, it opened its first real estate investment trust (REIT). The successes continued in 2001 as Inland formed a subsidiary to help investors complete Section 1031 exchanges. In 2004, it listed its first REIT on the New York Stock Exchange, and by 2016 Inland had created eight real estate investment trusts for investors. The recipient of more than 60 awards, Inland earned the Better Business Bureau Torch Award for Ethics three times in the last decade. Inland was the first corporation named to the Chicago Association of REALTORS® Hall of Fame. In 2017, the Illinois REALTORS® honored Goodwin with its first Lifetime Achievement Award.

ILLINOIS REALTOR® April 2018

MARKET WATCH ILLINOIS REALTORS® TO OFFER MSA, PENDING SALES DATA Illinois REALTORS® is adding two new housing data tools for our members and the media in 2018: housing data by Metropolitan Statistical Area and a Pending Home Sales Report. Housing data by Metropolitan Statistical Area - While Illinois REALTORS®’ data currently breaks out the nine-county Chicago area in this manner, this level of local detail will now be available for other MSAs ranging from Bloomington-Normal to the Metro East. Pending home sales report – Illinois REALTORS® will release a pending sales report the last week of each month in conjunction with the National Association of REALTORS®’ (NAR) national pending sales index. This new monthly release will provide a forward-looking indicator of what the market may look like in the month

ahead. This data will provide median price and sales data, and we will break it out by MSA. Why the emphasis on MSAs? Illinois REALTORS® has provided market data in some form for nearly two decades. During that time there has been a constant evolution in what the association provides in its quest to help give a fuller picture of the market. Illinois REALTORS® initially provided statewide housing numbers and then added housing category and data for the city of Chicago. MSAs are defined by the U.S. Census Bureau using county boundaries, and offering this information is a natural extension of what the association already provides. MSAs are often used when comparing the state’s economic markets, and the aim is to provide Illinois REALTORS®

members and the public with a more well-rounded picture of what is happening. How will providing pending sales enhance the association’s data offerings? Illinois REALTORS® has obtained pending sales information for years but hasn’t broken out the data for members or the public. NAR already produces a monthly pending sales index. By breaking out a state pending sales report, Illinois REALTORS® will be able to provide a forward-looking indicator to give members, their clients and the media some idea of what the next month is going to look like. What’s the timing of the reports? The current Housing Market Report is usually released the third week of each month. The Pending Sales Report, when it debuts, will be released a week later.

HAVE YOU SEEN THE NEW MARKET STATS? When Illinois REALTORS® launched its new website this year, the Market Stats pages were redesigned to make it easier for members to find the housing data information they need. Find monthly

news releases, infographics to share and the latest market forecasts from the Regional Economics Applications Laboratory (REAL) at the University of Illinois. As an Illinois REALTOR®, you can also access the Members Only Market Stats reports to drill down for more information. www.IllinoisRealtors.org/MarketStats Monthly Local Market Update for January 2018 A Research Tool Provided by Illinois REALTORS®

McLean County Year to Date

January Key Metrics for All Properties

2017

Closed Sales

133

2018

Percent Change

- 27.1%

173

147

in December 2016

in December 2017

$150,000

$147,000

Inventory of Homes for Sale

790

Days on Market Until Sale

Previous Month's Closed Sales Median Sales Price*

Thru Jan 2017 Thru Jan 2018 133

Percent Change

- 27.1%

2,510

2,471

in December 2016

in December 2017

- 2.0%

$150,000

$147,000

792

+ 0.3%

- 8.5%

- 15.0%

- 1.6% - 2.0%

* Does not account for seller concessions. | Activity for one month can sometimes look extreme due to small sample size.

Activity by Property Type for January 2018 Closed Sales

Median Sales Price $162,500

$147,000 $83,500

†

- 23.5%

- 50.0%

- 27.1%

+ 8.3%

- 43.4%

- 2.0%

Single-Family

Condo

All Properties†

Single-Family

Condo

All Properties

For Closed Sales, All Properties is not necessarily a sum of Single-Family and Condo.

Historical Median Sales Price

Illinois — McLean County —

$220,000

$200,000

$180,000

$160,000

$140,000

$120,000 1-2013

7-2013

1-2014

7-2014

1-2015

7-2015

1-2016

7-2016

1-2017

7-2017

1-2018

34 www.IllinoisRealtors.org

ILLINOIS REALTORÂ® April 2018

OUTREACH Gideon Blustein | Member Outreach Manager and Local Governmental Affairs Director

BOOST YOUR OFFICE’S PARTICIPATION WITH THE RPAC ALL STAR OFFICE CHALLENGE The crack of a bat connecting with a ball, the perfect pairing of peanuts and beer in the bleachers and the sound of REALTORS® saying, “yes, I’ll invest in RPAC!” Did that last one catch you by surprise like a pop-up foul into the stands? Then let me tell you about the RPAC All Star Office Challenge. The RPAC All Star Office Challenge is a fun, easy and effective way to increase RPAC “Fair Share” participation at the $20 level. Each participating office receives a game package including a promotional poster and card stock baseball cut outs. Baseballs are already filled out for REALTORS® who’ve invested in RPAC and blank baseballs are included for

those who have not. The poster and filled out baseballs are hung prominently in the office, announcements are made and each new RPAC investor gets to hang their baseball. Any office that hits 70 percent or greater participation receives statewide recognition and a prize for sharing in the office. Wondering if it works? Last year participating offices saw a big jump in $20 fair share investments in RPAC. The game requires at least one “coach” in the office to make sure the materials are hung, announcements are made and REALTORS® are encouraged. The visual materials

help start a conversation and educate REALTORS® about the importance of RPAC and are a great way to incorporate RPAC into your office culture. The Challenge kicks off in May and runs until July 9 with the announcement of winners made on July 17, the same day as the Major League Baseball All-Star Game. Step up to the plate and sign up for the RPAC All Star Office Challenge by contacting your Outreach Team Member. Meanwhile, I’m going to go find some peanuts.

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(Disclaimer: The Illinois REALTORS® Political Action Committee (RPAC) solicits contributions from Illinois REALTORS® members only.)

36 www.IllinoisRealtors.org

ETHICS Rebecca Carraher | Director of Ethics and Professional Standards

CODE OF ETHICS: MISLEADING IMAGES IN ADVERTISING At their November 2017 meeting, the Board of Directors of the National Association of REALTORS® approved the following change to Article 12, Standard of Practice 12-10 of the Code of Ethics.

ORIGINAL PHOTO

REALTORS®’ obligation to present a true picture in their advertising and representations to the public includes Internet content posted, images, and the URLs and domain names they use, and prohibits REALTORS® from:

1 engaging in deceptive or 2 3 4 5

unauthorized framing of real estate brokerage websites; manipulating (e.g., presenting content developed by others) listing and other content in any way that produces a deceptive or misleading result; deceptively using metatags, keywords or other devices/methods to direct, drive, or divert Internet traffic; or presenting content developed by others without either attribution or without permission, or otherwise misleading consumers, including use of misleading images.

MANIPULATED PHOTO

As consumers increasingly rely on images of listed property in tailoring their home search, excessive use of photo altering techniques or extreme distortion of a space’s size in a photograph may not only mislead consumers, but damage the credibility of REALTORS® and the industry that relies on photographs in the MLS or on websites to accurately represent listed property. When posting photos, please be careful not to alter the photo, such as removing parts of the landscape, a building or other structures and ensure that your photos are an actual representation of the property.

ILLINOIS REALTOR® April 2018

REALTOR® COMMUNITY FOLLOW US:

2018 LEADERSHIP DEVELOPMENT CLASS

The association’s Leadership Development Program class of 2018 kicked off earlier this year. The 12 Illinois REALTORS® chosen for the program will attend a variety of training sessions this year to help them prepare for future work on committees, boards or as officers in their local real estate associations. This year’s class includes:

(Back Row L-R): Brian Kwilosz, Exit Real Estate Partners of Downers Grove (Mainstreet), Andrea Greenwalt, Janko Realty & Development LLC of Peru (Illini Valley Association of REALTORS®), Kim Kerbis, @properties of Chicago (Chicago), John LeTourneau, Coldwell Banker of Hinsdale (Mainstreet), Gaspar Flores, Jr., Su Familia Real Estate Inc. of Chicago (Chicago Association of REALTORS®) and Naja Morris, @properties, Chicago & Elmhurst, (Mainstreet). (Front Row L-R): Tracey Williams, ARE Partners INC of Chicago (Chicago), Donna Baker, RE/MAX Preferred of O’Fallon (REALTOR® Association of Southwestern Illinois), Judy Gibbons, Jameson Sotheby’s International Realty of Chicago (North Shore-Barrington Association of REALTORS®), Lisa Radke, Choice Realty of Freeport (REALTOR® Association of Northwestern Illinois), Kinga Korpacz, Exit Realty Redefined of Rolling Meadows (Mainstreet Organization of REALTORS®) and Celeste Wheeler, Berkshire Hathaway HS Elite Properties of Fairview Heights (RASI). PHOTO BY MATT DIFANIS

Difanis honored by AREAA Illinois REALTORS® President Matt Difanis received the Member of the Year Award from the Asian Real Estate Association of America Chicago Chapter (AREAA) in February. Difanis was recognized for his work to increase diversity within the state association, and his commitment to building bridges with REALTOR® constituencies. The award was given at AREAA’s Inaugural Skyball Gala honoring 2018 AREAA Chicago Chapter President Maurel Samonte, a REALTOR® with eXp Realty in Chicago. Samonte is pictured with Difanis. 38 www.IllinoisRealtors.org

Piero Orsi honored for political involvement REALTOR® Piero Orsi has been honored with the association’s 2017 Political Involvement Award. He is the broker-owner of RE/MAX Showcase with offices in Long Grove, Waukegan and Gurnee. The award is given to individuals for outstanding political and legislative service to the REALTOR® organization. Orsi is a REALTORS® Political Action Committee (RPAC) Major Investor and is a member of NAR’s RPAC Hall of Fame, achieving a new tier of RPAC lifetime achievement of $50,000 He has served on all of the Illinois REALTORS®’ political fundraising committees, chaired the Major Investor Working Group and in 2018 will be serving his sixth consecutive year as an RPAC trustee.

Public Policy Meeting Highlights Illinois REALTORS® held the annual Public Policy Meetings in East Peoria, Jan. 15-18. The meetings give REALTORS® a voice in local, state and federal public policy issues and legislative battles that affect their business.

Julie Sullivan, State Rep. Mike Unes (R-East Peoria), Greg St. Aubin and Matt Difanis at the association's annual Public Policy meetings.

ILLINOIS REALTORÂ® April 2018

40 www.IllinoisRealtors.org