California Association of Realtors® (C.A.R.) President Colleen Badagliacco projects 2007 is going to be a great year in real estate, but she indicates the year will not be without its challenges and opportunities. Today, more than ever, home buyers and sellers will need the expertise of a Realtor to guide them through their transactions.
Due to troubles in the subprime market, Badagliacco says there will be tighter qualifications for buyers, making it more difficult for first-time homebuyers to get loans. Home sales statewide will be spotty; flip markets and submarkets with large new home inventories will be "more dicey," but she believes the Bay Area, from Santa Clara County all the way up to the Peninsula, will do all right.
Badagliacco is a South Bay resident and a partner with her husband Dennis, at RE/MAX Valley Properties, which has five offices in the Silicon Valley area. She has been a Realtor since 1978, a broker since 1981 and was named Realtor of the Year by the San Jose Real Estate Board in 1991. She is a member of the Santa Clara County Association of Realtors® (SCCAOR), where she served as president in 1992. Badagliacco has been a National Association of Realtors® (NAR) director since 1994 and a C.A.R. director since 1985.
"Northern California is fortunate because it appears to be insulated from the ups and downs of the real estate market," according to Badagliacco.
"Our field represents people in every generation, in every neighborhood, with expertise in every area. That's what makes it a strong profession," says Badagliacco.
She says amid these normal market conditions, with only sketchy and limited information received from the media, now, more than ever, clients are going to need a Realtor's expertise in pricing, negotiation and professional experience in the market place.
"We need to be aware of the challenges ahead and take advantage of the opportunities. No matter what the market does, it's always changing and you need to be that person on the top of the hill," Badagliacco urges Realtors.
Realtors should "take the customer's point of view" by being familiar with the sites potential homebuyers visit, getting a feel of what they're reading, keeping current with up-to-the-minute data about their local areas, educating themselves, "because buyers will now have increased focus on your expertise," explains Badagliacco. This means Realtors need to get all the techniques available and reflect them in their business practices.
"No matter what demographics, we need to move beyond the Web pages and Web sites and interact with the client online," notes Badagliacco. "The customer is looking for a partner, not a dictator. You need to stay in touch, keep them updated with their transactions online, retain values of integrity and responsiveness, and be an integrated real estate professional."
Badagliacco reports that C.A.R. has been working hard to upgrade the standards of the real estate profession. Beginning Oct. 1, new licensees can no longer get a conditional salesperson license. A person must complete three real estate classes before applying for the real estate salesperson exam.
C.A.R. also sought to eliminate the "degree broker license" during the last legislative session, but this piece of legislation did not pass. Badagliacco says it appears the requirement that individuals have a college degree "with a specialization in real estate" is being ignored and individuals with just any degree can become brokers. She says C.A.R. is currently working hard with the Department of Real Estate to tighten regulations for brokers.
Badagliacco says the association is likewise seeking to prohibit the imposition of private transfer taxes. Imposed by some developers and private entities, these taxes must be paid by the first buyer and every subsequent buyer each time the home is sold. These fees have totaled as much as 1.75 percent of the purchase price of a home and must be paid for 20 to 25 years or, even, in perpetuity, and many homebuyers are unaware that these fees are being imposed. If a home requires the payment of a private transfer tax, the association would like this information disclosed to the potential home buyer.
The Silicon Valley Association of REALTORS® (SILVAR) is a professional trade organization representing over 4,000 REALTORS® and Affiliate members engaged in the real estate business on the Peninsula and in the South Bay. SILVAR promotes the highest ethical standards of real estate practice, serves as an advocate for homeownership and homeowners, and represents the interests of property owners in Silicon Valley.
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.
Variations of this article have appeared in local area newspapers.
For further information, please email or call the SILVAR office at (408) 200-0100.