Starting May 29, users will have access to the optional Concessions in Price (CiP) fields when creating a listing. 

The facts:

• In 2023, nearly 40% of closed residential listings included some form of concessions, including the seller paying for escrow and title fees, loan discount points, and repair and/or upgrade costs.
• 15% of those closed residential listings in 2023 had some sort of advertisement for Concessions being offered in the Private Remarks section of the listing.

With such a large amount of our user base actively offering concessions, we saw an opportunity to create a specific set of dedicated fields for the benefit of our users and their clients. These new CiP fields will allow agents to convey their willingness to offer concessions at the listing level, thus allowing for clearer communication and cooperation between agents and brokers. 

The new fields benefit all parties:

• Listing agents and sellers
  Will gain a dedicated space to advertise/market their willingness to consider concessions at the listing input level
• Buyer's agents
  Will be able to better serve their clients with up-front information on which listings will consider concessions to assist in transaction fees 
• Homebuyers
  Enhanced transparency on which listings are willing to consider concessions to assist with their financial needs  

What's changing?
Currently, concessions are recorded only at the close of a transaction with a mandatory requirement to state the amount of any concession. The new, more descriptive CiP fields will be available for input at the listing level.

To be clear, the new CiP fields will be optional and only reflect a client's willingness to consider concessions. Details regarding the concessions that may be offered must be discussed outside of the MLS and after a written agreement is signed.

The new fields will be titled: 

• Concessions in Price: a text box for numerical input only. This amount should include any and all potential concessions in a single total amount.
• Concessions in Price Type: classify the number above as either $ or %
• Seller Consider Concessions?: either Yes or No. If Yes, then the listing will include the phrase “A Seller may consider a buyer concession if made in an offer.”  

As of May 29, the new fields in your Matrix system will appear here:

Additional CiP Resources
FAQs
The Facts About Concessions Infographic
Concessions in Price Infographic

In the wake of emergencies, the real estate industry in California faces unique challenges. Understanding the state's anti-price gouging laws is crucial whether you're a sales agent, broker, or property manager. These laws not only protect consumers during crises but also guide professionals in maintaining ethical standards.

Here's what you need to know: 

The Essence of Price Gouging in Real Estate
Price gouging occurs when prices for housing, rentals, or other essential services are significantly increased to exploit an emergency. For real estate professionals, this typically relates to the pricing of rentals, homes for sale, and emergency lodging. The goal is to prevent undue strain on those affected by disasters, ensuring access to housing remains fair and equitable.

California’s Stance on Price Gouging
California law, specifically Penal Code Section 396, restricts increasing the price of housing and other essential services by more than 10% following an emergency declaration. This applies to sales, rentals, and services across the board, ensuring that real estate professionals are aligned with legal and ethical pricing standards during critical times.

Timing and Application of the Law
These protections activate immediately upon an emergency declaration by federal, state, or local authorities and are initially set for 30 days. For real estate-related services, like reconstruction and cleanup, the period extends to 180 days. Importantly, officials can extend these timeframes to meet ongoing needs, affecting how properties are marketed and managed.

Staying Informed on Declarations
Real estate professionals should closely monitor emergency declarations to comply with legal requirements. This includes staying updated through the Governor's website and local government channels. Awareness of state and local declarations is key to ensuring your practices align with current regulations. The following locations are under price gouging protections.

Who and What Is Covered?
The statute broadly applies to all entities within the real estate sector, including individuals and companies involved in selling, renting, or managing properties. It covers a wide range of necessities, notably including rental housing, hotels, and motels, ensuring that the industry's response to emergencies is comprehensive and compliant.

Addressing Cost Increases and Violations
If your costs increase due to supplier price hikes, the law allows the cost to be factored into pricing, provided it can be justified. However, compliance with the statute is closely monitored, and violations can lead to severe penalties, including fines and criminal charges. Ensuring transparency and fairness in pricing is crucial to avoid legal repercussions.

Role of Real Estate Professionals in Compliance
As gatekeepers of housing and essential services, real estate professionals have a pivotal role in upholding these laws. This involves adhering to pricing regulations and advising clients and the community on their rights and protections. Your guidance can help navigate the complexities of emergencies, ensuring access to housing remains fair and stable.

Conclusion
For real estate professionals in California, understanding and complying with anti-price gouging laws is essential. These regulations ensure that during emergencies, the industry acts with integrity, maintaining fair pricing and access to housing. By staying informed and adhering to these laws, you play a vital role in supporting communities during their most vulnerable times, reinforcing the ethical standards that define the real estate profession.

This link provides useful guidance for identifying if a state of emergency affecting price gouging in rental housing is in effect. Simply locate your rental property's county on the list and note the code (a letter in parentheses) next to it. Then, refer to the explanations at the bottom of the page to understand which price gouging laws apply to your situation

Important Disclosure
Please note that the information provided in this blog post is for general informational purposes only and does not constitute legal advice. Real estate laws and regulations can be complex and subject to change. While we strive to present accurate and up-to-date information, we cannot guarantee the completeness, reliability, or applicability of the content to your specific situation.

As a real estate professional, it's essential to understand your actions' legal implications, especially in emergencies and price-gouging laws. Therefore, we strongly recommend consulting with a qualified attorney or legal expert to obtain advice tailored to your specific circumstances. Doing so will ensure you navigate these challenges with the utmost compliance and integrity, safeguarding your professional practice and the communities you serve.

Katie Johnson NAR's General Council shared an update today regarding the Department of Justice's (DOJ) Statement of Interest in the ongoing lawsuit, Nosalek v. MLS PIN, which scrutinizes the practice of cooperative compensation between listing and buyer brokers.

MLS PIN, not fully owned by REALTOR® associations and not bound by NAR's guidelines, mandates that listing brokers offer compensation to buyer brokers. The DOJ challenges this tradition, suggesting that listing brokers and sellers should not offer compensation to buyer brokers, aiming to change longstanding practices in real estate transactions in the U.S.

Johnson argues that the DOJ's stance could harm consumers by making it more expensive for buyers to obtain representation and limit access to housing, noting the DOJ's lack of new analysis to back its claims. She emphasizes that such DOJ interventions overlook the potential negative impacts on homebuyers, including those buying for the first time or belonging to minority groups, and could disrupt the housing market.

Despite these challenges, NAR remains committed to defending free market competition and ensuring fair home ownership access. Johnson urges members to fully understand the DOJ's position, highlighting its implications for cooperative compensation practices and the broader real estate market. She asserts NAR's dedication to navigating these issues, aiming for outcomes that support property owners and real estate professionals across America.

Hee entire update may be found on the Realtor Hub Here.

Read the DOJ,'s Statement of Interest Here

The National Association of REALTORS® released its 2023 Profile of Home Buyers and Sellers this morning, garnering coverage in a wide range of national media outlets, including CNN , Bloomberg and The Washington Post.

For most home buyers, the purchase of real estate is one of the largest financial transactions they will make. Buyers purchase a home not only for the desire to own a home of their own, but also because of changes in jobs, family situations, and the need for a smaller or larger living area. This annual survey was conducted by the NATIONAL ASSOCIATION OF REALTORS® of recent home buyers. Download Highlights (PDF 7 MB) | Get the Full Report(link is external) | News Release

Read additional highlights of the report in REALTOR® Magazine’s “12 Trends That Explain Your Clients’ Real Estate Journey.”

The annual report, which NAR has been conducting since 1981, covers demographics, preferences, and experiences of recent buyers and sellers across the United States. Data was collected from a nationally representative sample of home buyers who purchased a primary residence in the 12-month period between July 2022 and June 2023.

This year’s report shows that reliance on real estate professionals remains strong. Although 100% of respondents said they used the Internet in the home search process, a vast majority—89% of both buyers and sellers—said they worked with a real estate professional on their sale or purchase. Only 5% of sellers cited the “agent’s commission” as an important factor in choosing their agent: The reputation of the agent, whether the agent was “honest and trustworthy,” and knowledge of the neighborhood ranked as the most important factors.

Household annual income among buyers was 22% higher than last year, an indication that high sales prices and rising interest rates have eroded lower-income households’ ability to purchase a home. Among buyers who financed their purchase, the median down payment amount was also up. In this year’s report, it was 8% for first-time buyers, 19% for repeat buyers, and 15% for all buyers.

After several years of losing share in the homebuying market, first-time buyers are making headway. They made up 32% of the market, according to this year’s report—still below the historical rate of 38% but notably higher than last year’s rate of 26%.

As in past years, buyers and sellers report satisfaction with the service provided by their real estate professionals. Ninety percent of buyers said they would definitely (75%) or probably (15%) use their agent again or recommend their agent to others. Eighty-seven percent of sellers said they would definitely (73%) or probably (14%) recommend their agent for future services.

Highlights From the Profile of Home Buyers and Sellers

The Homesnap app, which is a listing search product for both listing and buyer agents, will be changed to the Homes Pro app, a LISTING-Agent search and advertising platform. While Homesnap is still currently available, the Homesnap app will fully become the Homes Pro app on October 23.   

This update comes from Homesnap: Most elements of Homesnap will forward to the Homes Pro app or redirect to Homes.com, regardless of whether or not you're a CRMLS user. In fact, many MLSs that had relied upon Homesnap have already made the transition to Homes Pro, so we're hoping for an easy change to the different platforms. 

When opening the Homesnap app or accessing the website, you'll see this splash screen informing you of the switch taking place on 10/23.

CoStar's business model is to steer all leads to the listing broker or agent and not to the buyer's agent working with a client. The business plan is to see advertising to the listing agents. 

Finding a suitable replacement for a familiar tool can be a daunting task, and the process of replacing it is no easy feat. However, below is a comprehensive list of comparable product solutions tailored to your particular MLS system. Carefully review each offer and determine whether the Homes Pro app or another CRMLS core product is a better fit for you.  Advantages of these tools include the client portal, the ability to Add/Edit, 

Paragon App Comparison
Matrix App Comparison

Learn more about the Paragon Connect Moblie Web Site

• How to Access Paragon Connect
• Learn more about Paragon Connect Video Library
• Latest Paragon Connect updates

CoStar's move to discontinue Homesnap came nearly three years after CoStar acquired Homesnap for $250 million in 2020, initially intending to enter the residential real estate market. In 2021, CoStar acquired Homes.com for $156 million and decided to make it their primary consumer brand. 

By the end of the year, Homesnap's website will redirect home searchers to Homes.com, and eventually, Homesnap will be completely phased out.

For now, Homes Pro will remain free for agents and multiple listing services (MLSs).

Check out the DRE 2o23 Summer Bulletin and gain awareness of the DRE's priorities this quarter. Below are highlights.  Download the PDF for the full update. Take a look at the California DRE Summer Bulletin here.

• Commissioner’s Update
• New Pre-License Statutory Course Requirements Coming in 2024
• Vacant Land Property Scams
• Originating Nontraditional Mortgage Loan Products
• Succession Planning
• Ensure Protection of Trust Funds Collected by Real Estate Brokers
• What Would You Tell Your Younger Self?  
  
  

Douglas R. McCauley

Real Estate Commissioner
Department of Real Estate

_______________________________________________

PSAR's Mission is to empower Real Estate Professionals

Since 1928, the Pacific Southwest Association of REALTORS® has played a significant role in shaping the history, growth, and development of the Real Estate industry in San Diego County.

PSAR broker Patti McKelvey has authored a book in which she reflects on her 50 years in real estate.

Titled, “Real Estate Magic: How a Real Estate Rock Star Helped 6,000 Families Attain the American Dream,” McKelvey’s 171-page, self-published book is priced at $15 on Amazon.

Patti considers the book as her memoir. It includes stories about her childhood in South Dakota, her career as owner and operator of a children’s furniture retail store prior to real estate, and her record-setting success in real estate sales.

"The title came from my clients who would say to me when a real estate deal hit a difficult point, `Patti, do your magic,’” she said.

“Hopefully, the readers, including other agents and entrepreneurs, will find something motivating and encouraging in the book. It’s about my journey through business and real estate. I’m an example of not doing things the normal, scripted way. On the contrary, my journey has been far from ordinary.”

According to the book’s description on Amazon, “Her total is north of 6,000 units, which to Patti means helping all those individuals and families attain the American Dream. 

The book includes several real estate client success stories as well as mentions her longtime support of St. Pius X Roman Catholic Church on Cuyamaca Avenue in Chula Vista. At the church, Patti serves as a Eucharistic minister and regularly attends 7 a.m. Mass on Sundays and daily Mass most mornings. Patti also has supported a number of charitable organizations, including South Bay Family YMCA, American Heart Association, Rady Children’s Hospital, National Latino Peace Officers Association, and the Las Primeras Group, a philanthropic organization.

In Patti’s book is her description of her strong beliefs in ethics, honesty, and personal relationships.

“I believe in a strong work ethic, honesty, integrity, and consistency and I admire great role models of ethics, such as John Wooden, and the founders of Hobby Lobby and Chick-fil-A,” Patti said. “I also believe strongly in building enduring relationships. My friendship with clients does not end at the close of escrow. It continues long after.

“I love calls from clients asking for recommendations on home repair and professional services. I want to do the best job for my clients because that’s my job. I want to make a difference in helping people get their new homes. I want to meet and exceed the wishes of my clients. In some cases, I have represented clients who were children years ago when I worked with their parents and now they’re grown up.”

On occasion, Patti said she might provide a copy of her book to new clients so they can learn more about her. “But, I’ll probably do a lousy job at promoting the book. I would rather work in real estate than post something on social media about my book.”

Patti grew up in Lestervillle, South Dakota, population of 115. “My mother and father ran the town’s restaurant, so I was around customers all the time,” Patti said, “I grew up thinking about customer service.”

Patti earned a Bachelor’s degree in business and English from Southern State University in South Dakota. She married Bill McKelvey and later they moved to Southern California, where  Patti started designing children’s furniture while  Bill worked for the Drug Enforcement Administration (DEA). After moving to San Diego in 1976, Patti continued working in the furniture industry and operated a retail store, which she sold in 1987.

 “I loved painting and designing children’s furniture,” Patti said. “Even back then, it was difficult to run a small business in California. Too many rules and regulations. So, I sold the business after many years, went to work on my Master's degree, and got my real estate license.”

Patti has been a top producer since beginning her real estate career in 1987. She has been ranked in the top 1 percent of real estate professionals in America in listings, sales, and dollar volume. She was the #1 agent for sales in San Diego County in 2013, 2014, and 2015, selling the most units of any agent in the entire county. She was the top-producing agent in both sales and listings for 29 consecutive years at her previous brokerage of McMillin Realty, which was acquired in 2016.

In 2017, Patti and Jeff McKelvey, a mother-and-son real estate sales team, joined Coldwell Banker West (CBW). Since 2017, they have been ranked as CBW’s top-producing team every year. Patti says she owes much of her success to  Jeff, who has worked with her in real estate for nearly 30 years. The McKelvey team staff includes April Martin, Tyler Rowean, TJ Hughes, Chriselia Sandoval, Alex Medina, and Lauren Ortiz as transaction coordinators.

“I enjoy real estate because I love helping people realize their dreams of home ownership,” said Patti. “I want to meet and exceed the wishes of my clients. It never gets old seeing the joy of helping people live the American dream.” 

The McKelvey group (CalDRE #00956130) can be reached at (619) 271-8300, or patti@mckelveyrealty.com.

Check out this month's DRE Bulletin and gain awareness of the DRE's priorities this quarter.  Below are highlights. Download the PDF for the full update. Take a look at the California DRE Spring Bulletin here

• Update from Commissioner Douglas McCauley:  DRE prioritizes equity, fraud, and consumer communication campaign to assist first-time buyers. It also emphasizes how to select an agent and understand mortgages.  
• Download the 2023 DRE Real Estate Law Book.
• Living in a Common Interest Development.
• Helping your client understand an architect's role.
• Broker Supervision: What is the broker's role?  Broker's obligation to supervise, assign supervisory authority, broker supervision in advertising, and ensure license requirements are met.
• Updated Rules for Discrimination as a Basis for Discipline.
• A look inside DRE’s complaint process: Filing a complaint, Complaint review, Formal investigation, and Clear and Convincing Evidence. 
• PG&E warns of an emerging scam initiative
• The important role of Enforcement in regulating California’s Real Estate industry
• Los Angeles County launches Property Owner e-Notification Alert (San Diego Launched Owner Alert last year).

Douglas R. McCauley

Real Estate Commissioner
Department of Real Estate

What are live buyer tours?
If you use Cloud CMA, then you’re likely already familiar with buyer tours, the reports that build on MLS data to give your buyer clients a better sense of what they’re looking at. In fact, buyer tours have become one of the most popular types of reports in Cloud CMA overall! 

Live buyer tours build on the existing functionality to turn static reports into dynamic ones—with real-time data that you and your buyers can easily read on any device. So you get a new way to show off properties, and your clients get live access to the most relevant information about their favorite listings. 

What can your clients see with live buyer tours? 

Their list of showings, organized by time 
Details like drive time and directions 
Feedback fields that share directly with their agent 
And more! 
 

Why the change? 
Home shopping and touring habits aren’t what they used to be.  Now, people have pocket computers with them constantly, so they can browse listings, request showings, get directions, whatever they need to do—all from the palm of their hands. 

Paper tours are outdated.  With live buyer tours, your clients have the technology on hand to interact with you and tour property more seamlessly. It’s a subtle contributor to their overall experience; they’ll appreciate the convenience and thoroughness of the information you provide. 

 
Here is how it works.

The California Department of Real Estate released its fall bulletin.  Check out the highlights in this quarter's issue.

In this issue:

New Required CE Coursed Now Available. Licensees renewing for the frst time on or after January 1, 2023, complete a new two-hour course in implicit bias training and a revised three-hour course in fair housing that includes an interactive participatory component

The Important Role of Enforcement in Regulating California’s Real Estate Industry  DRE posts on its website summaries of the most serious enforcement actions taken against licensees, as well as other disciplinary actions. 

Licensees Urged to Protect Themselves from ID Theft Scam  DRE recently issued a statewide Consumer Alert. 

DRE Stats include a 5% reduction in licensees prior to last year.  5,202 Complaints received.  67,768 exams administered.

External Audit Stats on Property Management, Broker Escrow, Mortgage Loan, and Sales.  Given DRE’s number of auditors as compared to its licensee population, audit efforts in FY 2021-22 focused on brokers who handle a high volume of trust funds. Audit cases completed during the fiscal year revealed a troubling high incidence of trust fund shortages.

Legal Activity, Enforcement, Subdivisions, Communications, and a look forward.

Learn from a wealth of information and insight provided in the Fall Real Estate Bulletin.

Click Here