APRIL 2021 VOLUME 25 • ISSUE 12
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Are Pre-Listing Inspections A Good Idea? Here’s What Your Sellers Need to Know
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written by RIKI MARKOWITZ The way a home inspection typically works is that after a buyer gets into contract with the seller, during an agreed-upon option period, the buyer schedules a home inspection. A few days later, with the inspection report in hand, the buyer can initiate a round of negotiations, if applicable, or simply accept what’s on the report and move forward with the purchase. But recently, a non-traditional way of handling home inspections has been gaining in popularity. And that’s if the seller gets a pre-listing inspection. Most real estate transactions are still not handled this way, but in Central Texas, it’s not uncommon either. That’s because a pre-listing inspection can speed up the sale and in a hot real estate market, there’s no downside to being non-traditional. Not every agent or broker completely agrees with pre-listing inspections. Karin Chappell, a REALTOR at Coldwell Banker Realty, says when she starts working with sellers who already had their inspection, then it’s time for a frank conversation. It’ll go along these lines: “Now that you’re knowledgeable about everything, as per the seller’s disclosure, you have to share a copy of the inspection report with any buyer.” Chappell says it can complicate the transaction. In ordinary real estate transactions, about 85 percent of homebuyers order a home inspection. By contrast, according to their 2018 Consumer Housing Trends Report, Zillow reported that a quarter of “do some of it yourself” sellers secure a home inspection. Most of them still hire a real estate agent, but opt for a pre-listing inspection to get a jump on the transaction. “It’s the third-most common pre-listing, pre-agent activity,” says Zillow. This isn’t the only shift that the inspection industry — at least here in Austin — has been seeing. Some clients are calling inspectors with a lot more urgency. Brian Meyerdirk has been inspect-
ing houses in Austin since he was 6 years old. His father, Billy, started Austin Inspection Services in 1989 and the younger Meyerdirk recalls testing light switches for his dad. Now an adult, and a licensed inspector since 2001, Brian says that the real estate market here is so hot that a lot of clients are shortening their option period, sometimes from 10 days down to one day. “Customers call me all the time and ask, ‘Can you come out today?’ The housing market is flipping that fast,” says Brian. “It’s been like this [for] probably a year or two.”
Phase Inspection with Austin Inspection Services
KB Home - West Canyon Trails
Brian has noticed that more buyers are also skipping inspections, too. But that doesn’t mean that the Meyerdirks are having trouble filling up their schedules. That’s because sellers are filling the gap. Home inspections are crucial. That point is not debatable and sellers, buyers and agents know that. When an inspector comes out to a property, he or she conducts a visual examination of the home, surveying defects, hazards and mechanical issues indoors and out. Traditionally, this process occurred during the agree-upon option period and if the report came back with any issues, the buyer could ask for repairs or try to knock some money off the asking price. The strategy to conduct pre-listing inspections has made it easier to reduce the option period and that’s something that both sides have benefited from. Sellers can flip their property faster and buyers can move in faster. It hastens the entire sales process.
Chats with Floor King pt. 2
Santa Rita Ranch pt. 2
How it Works A pre-listing inspection report lets sellers know what they’re working with. They have the option to address any issues they want pre-sale, or they can adjust their asking price if there’s a problem they don’t want to deal with. For example, says Meyerdirk, if a homeowner needs a new roof but they don’t want to deal with it, they can just take $20,000 off the asking [Pre-listing inspections continues on page 14]
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n i l e n ! O D on ate HomeAid Austin 2021
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Babies Drive
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View the Builders for Babies Amazon Wish List Here Choose HBA of Greater Austin as your shipping option! All donations will be distributed to non-profit organizations serving families at risk of or currently experiencing homelessness. For more information contact: Kelsey Helton, HomeAid Austin at kelsey@homeaid.org Julia Vazquez, HBA PWB at jivazquez@mlalabs.com
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Austin Board of REALTORS®
ABoR Advocacy: Serving as the Organized Voice for Your Business Locally, Regionally and Nationally We have been on a wild ride these last 12 months, haven’t we? It’s incredible to think that just a year ago we barely knew what COVID-19 was and now the precautions we all take in our personal and professional lives have become almost second nature. While our world and the way we do business has changed, how we advocate for you has not.
SUSAN HORTON
2021 PRESIDENT
Local Advocacy Wins & Updates When I say that the advocacy team has been working harder than ever, I mean it. Even through the pandemic, we’ve had more advocacy wins than ever before. Over the last year, your ABoR Advocacy team has accomplished the following tasks on your behalf: • Successfully secured real estate as an essential service on day one, when local Stay at Home orders were put in place • Stood up for housing providers and called for increased rental assistance and relief programs for small landlords
business issues and practices. These new priorities ensure that we remain laser-focused on the issues that directly impact you and your business day to day • Realigning our Policy Teams to mirror our new Public Policy Principles and shifting programming so that Policy Teams are a place where you can become an expert As a result of these efforts, ABoR was awarded the Mark Lehman Governmental Affairs Achievement Award by Texas REALTORS®. This award recognizes the local REALTOR® association that has demonstrated excellence in fundraising, grassroots involvement and other local initiatives for the year.
Advocacy in the 87th Texas Legislative Session Advocacy doesn’t just happen at the local level, of course. This year is a session year, so the staff at Texas REALTORS® has been hard at work monitoring over 2,500 bills that may impact our profession and the business environment in Texas. The issues we’re tracking include changes to homeowners’ associations, broadband access and civil liability reform. The Texas Legislative Session is also an opportunity to build relationships with state leaders. Our profession is lucky to have TREPAC, one of the strongest PACs in the state that works to maintain our relationships with lawmakers in the Capitol year-round. During session years, though, ABoR members have the opportunity to meet directly with their legislators at REALTOR® Day at the Texas Capitol. This year, ABoR members were able to meet with 10 legislators virtually throughout the month. I
• Mobilized our members in Pflugerville to ensure the adopted property tax rate was within the guidelines set by SB2
hope you were able to join us. Several ABoR members had the opportunity to meet with Rep. Celia Israel
• Ensured that existing and future singlefamily homes would be exempted from the City of Austin’s Street Impact Fee
versation into account as she takes key votes in the coming weeks.
At the same time, we also worked hard to deliver relevant programming and new opportunities for you to stay informed and advocate for your community, including:
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(ABoR.com/PublicPolicyPrinciples) from top to bottom to focus on housing, strategic land use and
to discuss some important bills currently making their way through committees. As a REALTOR® herself, it’s exciting to know that Rep. Israel knows the importance of good advocacy and will be taking our conIt’s not too late to get engaged with statewide advocacy initiatives. I strongly encourage you to sign up for Texas REALTORS®’ weekly Legislative Liaison email newsletter at TexasRealEstate.com/Liaison.
Next Month: May Elections & NAR Legislative Meetings On May 1, voters in Austin will have the opportunity to make their voice heard on eight different
• Bringing in the experts to discuss needto-know topics, such as the CARES Act and local rental issues
ballot measures. Those ballot initiatives could impact our city long-term, so you’ll definitely want to be
• Launching a new candidate interview process, which allowed more members to be involved in the candidate vetting process and, for the first time ever, watch a livestream of the interviews from the convenience of their home or office
opportunity for REALTORS® from across the country to come together and meet with their Members of
• Reimagining our Public Policy Principles
Advocacy team at advocacy@abor.com and they will make sure you’re in the know.
APRIL 2021 | REALTYLINE.US
informed before you head to the ballot box. Visit ABoR.com/Vote to find REALTOR® Voting Resources. In May, NAR will once again be hosting its Legislative Meetings virtually. Those meetings are an Congress. I’m already registered and hope you’ll join me in speaking up for Central Texas REALTORS®, homeowners and renters by visiting Legislative.REALTOR to get signed up. As you can see, we’ve had a banner year in advocacy and we’re not slowing down any time soon. I’m proud of the work we’ve done and excited about what’s to come. To join me in these efforts, email ABoR’s
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HBA of Greater Austin
Coming Up at the Home Builders Association! It’s hard to believe but it’s been over a year since the world virtually shut down due to the COVID-19 pandemic. Now, thanks to the release of the vaccine, in addition to vigilant safety protocols, Texas is reopening slowly. The Home Builders Association of Greater Austin is looking forward to doing the same. We are busy planning safe ways in which to hold many of our flagship events with in-person attendance options knowing many of our members are eager to get out and see
CHAD DURHAM
2021 PRESIDENT
one another. For those who have never attended an HBA event, we truly offer something for everyone - from data-driven housing forecasting conferences to good old-fashioned sporting competitions. From ritzy galas and awards ceremonies to casual get-togethers and networking opportunities. All offer unlimited opportunities to make connections and network with hundreds of HBA members and industry partners while having a blast. To get even more exposure, we encourage sponsorship which guarantees your business will be recognized throughout the promotion of the event and the day of. One event I’d like to highlight in particular for realtors is the Marketing & Advertising Excellence (MAX) Awards taking place on June 26. Presented by the HBA’s Sales and Marketing Council, this annual awards gala is the only local awards program to recognize the best in residential construction, development, sales achievement and marketing. HBA members may enter dozens of categories for nearly 100 individual awards - and this includes YOU! The coveted Realtor of the Year Award is the perfect way to showcase your hard work and success in an unprecedented year. Entries are due May 3, so don’t delay. Go to the HBA website at www.hbaaustin.com to enter. Both members and non-members are invited to attend the event virtually or in person at the new J.W. Marriott Downtown. Should you have any questions about upcoming events or sponsorship, Erin Scott, our Director of Programs and Membership would love to speak with you. She can be contacted at Erin@HBAaustin.com. Want to ensure you don’t miss out on any of the HBA’s events, education and programming? Sign up to receive our communications by visiting our website. We hope to see you soon!
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APRIL 2021 | REALTYLINE.US
FRIDAY, MAY 21 HBA Presents: Whisper Valley BBQ Ballyhoo! SATURDAY, JUNE 26 Marketing & Advertising Excellence (MAX) Awards — Havana Nights THURSDAY, JULY 22 Mid-Year Housing Forecast THURSDAY, AUGUST 19 Design Summit SEPTEMBER 10-12, 17-19 Parade of Homes™ FRIDAY, OCTOBER 22 Fall Golf Classic at Avery Ranch FRIDAY, NOVEMBER 12 Sporting Clay Shootout THURSDAY, DECEMBER 2 President’s Awards & Installation
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APRIL 2021
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WCREALTORS Continues to Set the Pace to Keep You Connected and in the Forefront of Your Business
WCREALTORS
We at Williamson County REALTORS® are continuing to set the PACE, springing forward into action, keeping REALTORS® connected to their community and keeping education at the forefront of our endeavors. The market is booming here in Central Texas and, with widespread access to vaccines, local communities are gaining confidence and starting to show more activity. To stay ahead of the curve, Williamson County REALTORS® members have been busy planning for
KRISTON WOOD
2021 PRESIDENT
a successful 2021. We will be restarting our Broker Round Tables. The goal: to PROMOTE Professional Standards through the discussion on hot topics, such as ethics in negotiations and proper listing advertisement. This allows Brokers from all over Central Texas to discuss best practices on maintaining REALTOR® professionalism. Governmental Affairs has been busy attending City Council meetings, school board meetings and more, to advocate by identifying and harnessing resources directed at protecting real property rights and increasing political awareness. The past few weeks Williamson County REALTORS® has been heading to Capitol Hill, virtually, to meet with lawmakers who have a direct impact on our industry and the community. This is one of the best events of the year as we gather as one voice, with fellow Associations and REALTORS® from all over the great state of Texas, to protect the rights of homeowners and REALTORS® alike. The members here at Williamson County REALTORS® have been busy planning events for the upcoming months to CONNECT REALTORS®, affiliates,
tion. On the left are some events to be on the lookout for. For more event information, check out our calendar at https://members.wcrealtors.org/events. Education has been the key to staying abreast of new contract changes and market trends over the past year. Along with the many cutting-edge courses offered, Williamson County REALTORS® now offers courses that are included with your Primary Board Membership: Legal Update 1, Legal Update 2 and Completing the 1-4 Contract Correctly. There are so many opportunities to plug into at Williamson County REALTORS®. We have Central Texas Multiple Listing Service, where you can post your “coming soon” listings and promote them through our virtual property tours. You can subscribe to CTXCIE, powered by Catylist. Central Texas CIE is a commercial information exchange — a database dedicated to commercial real estate information. We encourage you to leverage our tools and we will help you set the
consumers and persons with real property industry connections. Many of those connections are made at events held by committees here at the Associa-
PACE for an amazing 2021!
Monday, April 26th Annual Spring Golf Tournament 2021 Forest Creek Golf Course, Round Rock — Player Registration starts at 10:30 a.m. — Shotgun starts at 12:00 p.m. — Dinner will be available starting at 5:00 p.m.
More Details Coming Soon — Community Service Annual Summer Food Drive — TREPAC’s Cheeseburger Cook-off June Event
You are Invited.
90 Days to Pay or At Closing Terms: No out of pocket money. No credit check. 90 Days or Closing whichever comes first. Credit Card held for payment options. 8
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AREAA Golf Tournament
Bryan’s Going Away Party: WCREALTORS President Kristin Wood and Bryan Hutchinson
Floor King: Cain Scott and Robert Marquez, both of Floor King
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RealtyLine is published monthly by Caxton Publications, Inc.™ as a non-subscription publication for the more than 16k+ members of the Austin Board of REALTORS® (ABoR), the more than 1,800+ members of the Williamson County Association of REALTORS® (WCREALTORS) and the Home Builders Association (HBA) of Greater Austin. RealtyLine is a proud member of ABoR, WCREALTORS, HBA and an honorary member of WCR Austin Chapter. We are equally proud to be a Major Investor in TREPAC (2019, 2020). RealtyLine is not responsible for opinions or facts expressed by non-staff writers or for errors and any by-products in advertising or editorial copy. REALTOR® is a registered trademark. The word REALTOR® sometimes appears in this publication without the registered trademark symbol (®) to save space. Wherever the word REALTOR® appears in this publication, the registered trademark should be assumed.
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contributors Riki Markowitz, Katie Agness 2021 Presidents Susan Horton, Austin Board of REALTORS® Chad Durham, Home Builders Association of Greater Austin Kriston Wood, Williamson County Association of REALTORS®
lake life all the way. For quality lake living, The Hollows has you covered. APRIL 2021
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AREAA Golf Tournament: Gabriella Saravia, Romeo Manzanilla of Realty Austin and Diane Valverde
Bryan’s Going Away Party: Kim Talley of Talley Real Estate, Jodi Blynn of The Hollows at Lake Travis, Angela Dean and Suzanne Gantner of Realty Texas
Mission Mortgage: Lesley Guerrero and Kevin Ginsburg, both of Mission Mortgage
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Texas National Title
Advertiser Feature written by Katie Agness
Experts You Need, Partners You Can Trust in Real Estate
Providing a full range of residential and commercial closing services, Texas National Title specializes in residential resale, land purchases, federal tax credit construction loans, multi-tract, multi-county transactions and builder transactions. To ensure a successful closing experience, Texas National Title works closely with REALTORS, their clients, builders of all sizes, commercial brokers and developers, real estate attorneys and commercial and residential lenders. “At Texas National Title, we have one of the most experienced title and escrow teams in the industry,” says David Tandy, president and CEO of Texas National Title. “As a large independent agent, we have greater flexibility than most title companies to make sure closings run smoothly.” Texas National Title began its operations in May 2017. Within its first 60 days, the company opened multiple branch offices throughout Austin and hired 100 employees. Texas National Title is a division of one of the largest independent agents in the United States, Mother Lode Holding Company, which has been in business for more than 45 years. “We are wholly owned by one of the largest title holding companies in the nation, providing us best in class technology and support,” Tandy says. “We were able to hit the ground running with excellent service because of the deep support we have from our parent company and our amazing employees.” Recently, the Texas Department of Insurance published its Statistical Report listing 593 licensed title companies for 2018, TNT’s first full year of operations. Texas National Title was 20th in size of all title companies and 7th in size of all Independent Agents. Today, Texas National Title operates nine branch locations in the Austin area, including Round Rock, Cedar Park, Lake Travis, Dripping Springs, Wimberley, Buda and three offices in Austin. Additionally, the company has three offices in Corpus Christi. “We continue to look at opportunities for expansion in Texas,” Tandy says. “Our focus is more on hiring great people and giving them opportunities to grow and succeed than on any set geographic targets.” Tandy says that one of the primary reasons he formed Texas National Title was to provide a better experience for buyers and sellers. “This is the largest transaction the vast majority of our buyers and sellers will ever be involved with,” he says. “The closing should be a celebration of someone getting their first home, a move-up home or maybe an important relocation for a new job, so it should be as stress free as possible.” In addition to focusing on the buyers and sellers, Texas National Title also prioritizes the relationships with their REALTOR partners. “We could never have opened up so many offices so quickly if our REALTOR partners could not trust us to have the best closing experience possible,” Tandy says. “Our partners can expect extremely high-quality title exams, the most knowledgeable escrow officers in the industry and a sales team that truly acts as a partner to help agents grow their business. With five underwriters, we have great flexibility to solve title and closing challenges that can arise and would otherwise delay a closing.” As Texas National Title continues to grow and expand, it has incorporated extensive continuing education programs and innovative technology tools. Continued Education courses for real estate partners include better prospecting, growing your business, building and executing a business plan, implementing cyber protection systems and efficiently using technology. Additionally, Texas National Title provides web and mobile apps to help customers with their day-to-day business. “As CEO, I meet with different clients each month to provide market insights and help them navigate the changes in our local economy and overall real estate market,” Tandy says. “Each of our Sales Executives participates in ongoing training in how to best partner with our customers to help them succeed in their business. Our vision statement of ‘Experts You Need, Partners You Can Trust’ is something we live by. We work every day to be the most knowledgeable closing teams in the industry through ongoing training and audit programs and to earn our customers trust through rock-solid closing services.” To ensure a successful closing for their buyers, sellers and REALTOR partners, Texas National Title places a strong focus on hiring the highest quality employees. “Everyone on our management team has been promoted up within the industry and truly understands how important it is to make the closing run smoothly,” Tandy says. “Something that continues to set us apart from our competition is our ongoing focus on better education, better technology and better processes for our employees. This enables them to do the kind of job that builds trust and loyalty with our referring customers.” Texas National Title is ready to hit the ground running in 2021. For more information visit www.TexasNationalTitle.com.
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[Pre-inspection inportance continued from front page]
Austin
New M/I Homes Models
price. Or maybe they don’t have to take anything off the asking price because if one buyer passes, there are 10 more waiting in line with an offer. “But if you don’t know what you’re selling,” says Meyerdirk, “you’re not going to be able to price the property accurately. You’re just shooting in the wind.” Some industry professionals would prefer if everyone would take their time again. Things especially get dicey when the option agreement is taken off the table. Once a buyer is in contract, then there’s no backing out. Of course, if the seller comes to the transaction with an inspection report, there’s less risk in foregoing the option period. And since the market is so competitive, buyers are offering a shorter option period — or none at all — to get sellers to pick their bid out of several they receive in the first day or two a property is listed. Chappell is even less on board with this strategy, though. “As a listing agent, I just don’t agree with that. As part of the code of
ethics, we’re supposed to have an equitable transaction for both buyer and the seller. So it’s just better that buyers are knowledgeable about what they’re getting.” Most buyer’s agents want their clients to get an inspection, regardless of whether the seller had their own and even if it increases the chance of igniting a new round of negotiations. “Two separate inspectors may not see anything different at all,” says Chappell. “And one may find things the other inspector didn’t see.” It’s important the buyer knows what they’re getting. Chappell also wants to be sure the buyer is aware of any major problems. “I tell them it’s in your best interest from a legal standpoint to make sure all of the safety issues are addressed.” Some agents don’t really linger on the issue of who orders an inspection because they know the property will sell. “That’s upsetting to me,” said Chappell. “I don’t care how crazy the sellers’ market is.”
These popular communities have new models to tour this April! • The Hills at Estancia in Hays CSID from the high $300s
2020 International Diamond Society: Susie Adams, Dawn Smith McKimGarcia, Frankie Solis, Warren Kull and Frank West, all of Coldwell Banker Realty Source: Facebook
• Sweetwater in Travis ISD from the $500s
Schedule private tours at: 512.253.7338 or SalesAustin@mihomes.com
HomeAid Austin: CEO Cynthia Herrera of Doug’s House; Desmon Odunusi of AIA designvoice; and Melissa Nicewarner Daly, HomeAid Austin Director Source: Instagram
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APRIL 2021 | REALTYLINE.US
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APRIL 2021
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AREAA Golf Tournament: Alex Roy, Dean Ong, Butters the dog, Travis Langner and Tim Kuo
Bryan’s Going Away Party: Jim Smith and Candy Cook
WCREALTORS Events Committee
29
183
Guide Families Home At Brohn, we are here to help guide your clients to communities that are now selling with more coming soon! And with an abundance of floor plans, styles and design selections, your families will have the flexibility to create a home uniquely theirs. Explore the newest communities today.
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®
Clayton Properties Group, Inc. Formerly known and Qualified to do business in Texas as CMH Parks Inc. DBA Brohn Homes reserves the right to make changes to pricing, floor plans, specifications, features, dimensions, elevations, and incentives without prior notice. Stated dimensions and square footages are approximate and should not be used as representation of the home’s precise or actual size. Copyright © 2014 Clayton Properties Group, Inc. Formerly known and Qualified to do business in Texas as CMH Parks Inc. DBA Brohn Homes.
LOCKHART
130 SAN MARCOS
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APRIL 2021 | REALTYLINE.US
Floor King: Cain Scott of Floor King and Doren Carver of RealtyLine
AREAA Golf Tournament: Ashley Long, Lori Goto of Realty Austin and Denise Vincent
AREAA Golf Tournament: AREAA Houston Vice President Merry Tran
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AREAA Golf Tournament: Christine Chau of Texas Urban Realty and Liza Fong
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APRIL 2021 | REALTYLINE.US
AREAA Golf Tournament: Lori Goto of Realty Austin, 2020 AREAA Past Presidnet Lezlie Le, Christine Chau of Texas Urban Realty and Rela Mangisaca of Realty Austin
ABoR Scholarship Foundation: Doren Carver of RealtyLine and Albert Allen of Realty Austin
Bryan’s Going Away Party
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AREAA Golf Tournament: Memo Vargas of The Vargas Team and Laz Garcia
Lennar: Doren Carver of RealtyLine and Lennar Austin Division President Charlie Coleman
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APRIL 2021 | REALTYLINE.US
Bryan’s Going Away Party: Amy Kozba of Better Life Realty and Mary Minor of Nextage Lone Star Realty
Happy Hour: Todd Ruggirello of On Air Realty, Tawanna Verock of RealtyLine and Karen Hookstra of Pure Realty
AREAA Golf Tournament: Michael Stavinoha of Keller Williams Realty and AREAA Global CEO Carmen Chong
AREAA Golf Tournament: Rowdy Andrews and Sam Trantham, both of the Premier Turbo Team
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AREAA Golf Tournament: Christine Chau of Texas Urban Realty and AREAA President Miguel Benavides
Bryan’s Going Away Party: Kim Dale of Realty Texas, Michelle Sherwood of Keller Williams Realty, Ruby Johnson of Better Life Realty and Suzanne Gantner of Realty Texas
Bryan’s Going Away Party: Cyndi Bell of Realty Texas and Amanda Keeley of ERA Colonial Real Estate
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APRIL 2021 | REALTYLINE.US
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APRIL 2021 | REALTYLINE.US