the Bullet The Weekly Newsletter of the Silicon Valley Association of REALTORS® April 20 , 2007
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GOVERNMENT AFFAIRS NEWS
VIEW C.A.R. NEWSPAPER AD						HELP ELIMINATE PRIVATE TRANSFER TAXES Did you know that anyone selling a home in California is free to add a “private transfer tax” costing tens of thousands of dollars that has to be paid at the time of every subsequent sale? The California Association of REALTORS® (C.A.R.) is sponsoring SB 670 (Correa) to prohibit the future imposition of private transfer taxes. SILVAR Realtors support this legislation which seeks to close this loophole in California law now. This loophole lets developers and other private entities impose a “private transfer tax” on home buyers every time the home is sold – with no oversight, no accountability over how the money is spent, and no limit on how many different “private transfer taxes” can be added or “piled” onto a home. Private transfer taxes are collected as long as mandated by the deed, which can be indefinitely. There are no controls over how the collected revenue is spent. The benefactor levying the tax is free to decide how the money is spent, with absolutely no controls. The proceeds may even be used for personal benefit.
Private transfer taxes will hurt homebuyers and ultimately, the housing market. The highest rate for a private transfer tax C.A.R. is aware of is currently 1.75 percent of the home’s value, but there is no legal limit. For example, a home buyer in San Mateo County purchasing a single-family home at the February 2007 median resale price of $795,000, could be subject to a tax of $13,913. For Santa Clara County, where the median home resale price was $749,000, that’s a tax of $13,108, due and payable every time the property is sold or transferred. SB 670 was scheduled for a vote this week in the Senate Transportation and Housing Committee. C.A.R. and Senator Lou Correa opted to put off consideration of the bill to allow enough time to adequately review amendments suggested by the committee’s staff. The decision was made as a courtesy to the committee’s Chair, Senator Lowenthal. Senator Joe Simitian is a member of the Transportation and Housing Committee. In the meantime, C.A.R. and SILVAR continue to ask Realtors in targeted Senate districts to call their Senators in support of the bill. For those of you not affected by the current Red Alerts, please help educate your office colleagues and clients on the threats and inequity posed by private transfer taxes. For more information contact SILVAR Government Affairs at 408.200.0100. Please remember, despite some developers’ claims, private transfer taxes aren’t “mitigation fees” - they are taxes. They don’t benefit the assessed homeowners, but are an ongoing revenue source for those who receive the funds from homeowners. Only government should have the power to tax.
						SAVE THE DATE: LEGISLATIVE DAY IS JUNE 6TH Ever wonder how laws get made? Want to influence the legislative process and protect your business and your clients at the same time? Soon you will have your chance, because, Legislative Day is coming soon. Legislative Day is an annual event, where Realtors from all over California come to Sacramento and meet with their elected officials to discuss critical legislation that can affect Realtors, homeowners and private property rights. Many Realtors have found Legislative Day particularly instructive because it aptly demonstrates how government can affect the real estate industry. DRE Commissioner Jeff Davi, a Realtor and former President of the Monterey Association of Realtors, points to his attendance at Legislative Day as the event that got him involved in politics. This year, Legislative Day is Wednesday June 6, 2007. The cost for Realtors will be $45, which includes transportation, continental breakfast, lunch, and refreshments on the return trip. As in previous years, a motor coach will take members to Sacramento where they will receive a special briefing from C.A.R. lobbyists and Realtor leadership and hear from invited elected officials. Following the briefing will be a joint luncheon with the Santa Clara County and San Mateo County Associations, along with a speech by well-known political, media and technology consultant Donnie Fowler.
After lunch there are meetings with all of the legislators in Silicon Valley, including Senators Elaine Alquist, Abel Maldonado, and Joe Simitian and Assemblymembers Jim Beall, Sally Lieber, and Ira Ruskin. At these meetings, Realtors will have the opportunity to discuss important real estate issues such as private property rights, legal reforms and housing opportunities policies. Following the meetings, for those who are interested, there is the annual Capitol Reception. Open only to REALTOR Action Fund $197 contributors, the Capitol Reception allows Realtors and elected officials to interact on a more personal level. Remember to save the date, because June 6^th is coming very soon and limited spacing will be available on a first come first serve basis. Sponsorship opportunities are still available. Contact Adam Montgomery for details. Realtors who plan to attend Legislative Day should register for the event by calling the SILVAR office or sign-up on-line at www.silvar.org or by printing and returning this flyer/registration form to SILVAR (fax: 408-200-0101).
		MEMBER NEWS Charitable Foundation Scholarship Presenters Sought The Silicon Valley REALTORS® Charitable Foundation 2007 Scholarship Committee, headed by Scholarship Program Chair Nina Yamaguchi, is choosing the recipients of this year’s Association scholarships. $1000 scholarships will be awarded at the following high schools: Cupertino High School, Fremont High School, Gunn High School, Homestead High School, Leigh High School, Los Altos High School, Los Gatos High School, Lynbrook High School, Menlo-Atherton High School, Monta Vista High School, Mountain View High School, Palo Alto High School, Prospect High School, Santa Clara High School, Saratoga High School, Westmont High School, and Woodside High School.
SILVAR is looking for members who would like to present scholarships on behalf of the Association at Senior Awards Nights, which will occur in late May and early June (usually at 6:00pm or 7:00 pm) at each high school (Note: Menlo-Atherton and Woodside High Schools do not allow presenters). If you are interested in being a presenter, please contact Sarah Kishler at 408-200-0112 or skishler@silvar.org. Special thanks to the 2007 Scholarship Committee: Beth Clark, Anneke Dury, Willi Krauss, Dale Stansbury, and Dennis A. Young.
Ethical Dilemmas Realtors® Can Face (Third in a Series) It is the duty and responsibility of every REALTOR® member of SILVAR to abide by the "Code of Ethics" of the National Association of REALTORS®. The term "REALTOR®" is a registered collective membership mark which identifies a real estate professional who is a member of the National Association of REALTORS® and who subscribes to its strict Code of Ethics. Here is another dilemma a Realtor® could face and advice from Sharon Steele, 2007 chair of NAR's Professional Standards Interpretation and Procedures Subcommittee, and other ethics experts on how to respond. This excerpt is taken from “5 Everyday Ethical Dilemmas,” an article written by Buck Wargo, in a recent publication of REALTOR® Magazine Online. Dilemma 3: Ethics in Advertising “REALTORS® shall be careful at all times to present a true picture in their advertising and representations to the public.” (Article 12) The scenario: You’re looking for a way to differentiate yourself from the competition and give your marketing materials a kick. You decide on a new tagline: “The No. 1 Real Estate Agent for You.” The risk: Stretching the truth. If your statements are truthful and accurate, it’s not wrong to tell prospects how you measure up to competitors. But when you make an advertising statement about being the “No. 1” agent, you could be misleading the public. What to do: Making the claim of being No. 1 is perhaps the most abused or misused term in real estate advertising, Aydt says. If you really want to use that phrase, be careful to explain what you mean by “No. 1.” For example, cite your market share, a date range, and a specific geographic area. Experts advise focusing on your own merits and what you bring to a prospective client rather than comparing yourself directly to competitors. Ethics in advertising extends to property marketing, too. Be clear about how you describe the home, Steele says, and stay away from sweeping statements or exaggerations. It’s incumbent to avoid mistakes as well, she says. Double-check property tax figures with your local government, and be sure that square footage is measured correctly. Finally, never say anything to buyers that you can’t confirm as a fact. “You can only represent what you know,” Steele says. “If you don’t know the answer, say ‘I don’t know, but I will go to City Hall and try to find an answer.’ In this business, you don’t make assumptions.”
				Review Earthquake Safety Measures Study shows Californians expect major earthquake, but not many are prepared Many Californians ask themselves, “If another massive earthquake just like the one that hit the state on April 1906 struck today, are we prepared?” A recent study shows few Californians are. A survey shows while 70 percent of Californians expect a major earthquake will strike, just two in 10 people – 19.8 percent -- say they are well prepared; 38.8 percent somewhat prepared; and 41.4 percent - over four in 10 California adults, representing about 9.8 million people, say they are not very well prepared, don’t know, or not prepared at all. And despite much criticism about local, state and federal response to Hurricane Katrina in New Orleans, nearly half of California adults – 48 percent – expect government will provide relief when the big one hits.
These are some of the results of a poll of 955 Californians conducted last year by the Survey & Policy Research Institute at San Jose State University in conjunction with the California Consumer Confidence Survey. Of those surveyed in the Bay Area, only 14.4 percent stated they were well prepared, compared with 22.2 percent in Los Angeles area and 23.2 percent in the Central Valley. Nearly 20 percent stated they are not prepared at all, compared with 16.9 percent in the Los Angeles area and 26.5 percent in the Central Valley. You can protect yourself and your families and reduce the risk of destruction from an earthquake by following a few simple recommendations made by California’s Department of Conservation and the U.S. Geological Survey: RECOMMENDATIONS
					Cross-Association RSVP Effort Members of the Silicon Valley Association REALTORS® (SILVAR), the San Mateo County Association of REALTORS® (SAMCAR) and the Santa Clara County Association of REALTORS® (SCCAOR) joined together for the first time this week at SAMCAR for an RSVP Pre-viewers/House Captains training session. RSVP is scheduled for May 6-12. You can still volunteer for the program, which helps seniors and the homebound with household tasks they cannot perform.
Realtor® Etiquette and Ethics – May 24 Panel Discussion SILVAR’s Cultural Diversity and Equal Opportunity Committee will be hosting a series of panel discussions focusing on the importance of cross-cultural understanding and cooperation at different stages of the real estate transaction. The first event is slated for May 24, 2-4 p.m. A greater understanding of the customs and cultures of all homebuyers will enable all Realtors to better serve their clients. Cost is $10. Call SILVAR at 408-200-0100 or register online at http://ims.silvar.org/. VIEW THE FLYER
Lockboxes – Daylight Savings Time Reminder Because Daylight Savings Time is currently in effect, lockboxes on the standard time of operation settings will work from 8 am – 12 midnight daily. If you want to open a lockbox that you own outside of these hours, scroll down to the “Programming” item on your Display key, press enter, and select “2 = 24-hour access.” You will be prompted to enter the lockbox’s shackle code and point the key at the lockbox to open it. To reset the standard 8 am – 12 am time setting, scroll to programming again, select “1” for timed access, and follow the steps.
			EDUCATION AT SILVAR Featured Classes: May 1, 2007: "Delivering Customer Value" Instructor: Chris Alston Time: 1:00 - 4:00 pm. Cost: $10. FREE REIL TRAINING @ SILVAR: April 30: REIL.com Version 3.0 Choose from one of three sessions: 9:00 - 10:30 am OR 11:30 am - 1:00 pm OR 2:30 - 4:00 pm Call SILVAR at 408-200-0100 to or go to http://ims.silvar.org to sign up for classes unless otherwise indicated. SEE FULL SCHEDULE OF UPCOMING CLASSES
	UPCOMING EVENT SCHEDULE Featured Events: April 25: Menlo/Atherton District Affiliate Mixer, Premier Atelier, 1155 Chestnut Street, Menlo Park. 5:00 - 7:00 pm. No registration required. For both affiliates and Realtors. May 7 – May 12: RSVP Week. Register to volunteer now at http://ims.silvar.org/! 2007 RSVP Brochure 2007 RSVP Poster 2007 RSVP HomeOwner Application 2007 RSVP Volunteer Application Call SILVAR at 408-200-0100 to or go to http://ims.silvar.org to sign up for events. SEE FULL SCHEDULE OF UPCOMING EVENTS
	UPCOMING TOUR AND DISTRICT MEETING SCHEDULE HERE © SILICON VALLEY ASSOCIATION OF REALTORS®. 19400 Stevens Creek Blvd., #100.  Cupertino, CA. 95014. 408-200-0100.  We thrive on your feedback! Send us a note at bullet@silvar.org PRINT THIS PAGE