GREC REnews, 2017 September

GREC RENews September 2017
Volume 13 Issue 9

Monthly Newsletter of the Georgia Real

Estate Commission

2017Calendar
Common Violations Class Dates:

This Issue
Education Opportunities HUD Guidelines of LEP Focus on Terminology The Appraisers Page

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October 4, 2017 Central GA BOR Warner Robins, GA 478-922-0099
October 17, 2017 GAMLS Morrow, GA 770-493-9000
November 9, 2017 Augusta BOR Augusta, GA 706-736-0429
Link to GREC Disciplinary Actions View Current
Suspensions and Revocations

Education Options & Opportunities
The Real Estate Education, Research and Recovery Fund is maintained by the Georgia Real Estate Commission, and one of its core purposes is to underwrite the cost of education programs for the benefit of licensees and the public. At its June meeting, the Commission approved a $30,000 grant from the Real Estate Education, Research, and Recovery Fund to the Georgia Association of Realtors Scholarship (GAR) Foundation. The Georgia Association of Realtors Scholarship Foundation exists to promote professionalism and continuing education in the real estate industry. The Foundation accomplishes its mission by providing partial and full scholarships to Georgia licensees taking qualifying education courses in 2017. Both Realtors and non-Realtor licensees can apply for a scholarship for a wide variety of education courses including courses for designation such as the GRI (Graduate, REALTOR Institute), CPM (Certified Property Manager), CAE (Certified Association Executive), CRS (Certified Residential Specialist), CRB (Certified Real Estate Brokerage Manager) and the many other designations in real estate related fields. If a course is not on the list, a licensee can request approval through GAR for a specific course to determine if it might meet the requirements and be eligible for scholarship. For a list of approved certifications/or designations please, click here. For more information on the Scholarship Foundation and how to apply for a scholarship, click here. .
The Real Estate Education, Research and Recovery Fund also provides funding for the Common Violations Classes ("You Can't Fix Stupid, But we Can Work with Ignorance"), the Brokerage and Trust Account Workshop Classes and the GREC Online Courses.

Link to the Georgia Real Estate License Laws, Rules, and Regulations

Click Here

Click here to review a legend of the disciplinary actions the Commission may impose.
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Online Courses from GREC
$10 each 3 Hour CE
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Total of 9 Hours CE Available
(Also Approved as Instructor CE, not approved as License Law CE)
"Avoiding Trust
Account Trouble"
"Practicing Real Estate & Staying Out of Trouble"
"Being a Broker and Staying Out of Trouble"
Georgia Real Estate Commission Suite 1000 International Tower 229 Peachtree Street NE Atlanta, GA 30303-1605 Phone 404-656-3916

GREC RENews August 2017, Volume 13 Issue 8
HUD Issued Guidance On Fair Housing Protections For People With Limited English Proficiency (LEP)
Article excerpts quoted from HUD Website at https://portal.hud.gov/hudportal/HUD?src=/press/press_releases_media_advisories/2016/HUDNo_16-135.
September 15, 2016, the U.S. Department of Housing and Urban Development (HUD) issued "Limited English Proficiency" (LEP) guidance that addresses how the Fair Housing Act would apply to claims of housing discrimination brought by people because they do not speak, read, or write English proficiently. The Fair Housing Act prohibits both intentional housing discrimination and housing practices that have an unjustified discriminatory effect. People with limited English proficiency are not a protected class under the Fair Housing Act. However, the Fair Housing Act prohibits discrimination on seven protected bases, including national origin, which is closely linked to the ability to communicate proficiently in English. Housing providers are therefore prohibited from using limited English proficiency selectively or as an excuse for intentional housing discrimination. The law also prohibits landlords from using limited English proficiency in a way that causes an unjustified discriminatory effect. More than 25 million people in the United States do not communicate proficiently in English. Nearly 9 percent of the U.S. population is limited in English proficiency. Approximately 16,350,000 (or 65 percent) of these individuals speak Spanish, while 1,660,000 (7 percent) speak Chinese, 850,000 (3 percent) speak Vietnamese, 620,000 (2 percent) speak Korean and 530,000 (2 percent) speak Tagalog. Housing decisions that are based on limited English proficiency may have a greater impact on these and other groups because of their nationality.
Read the new limited English proficiency guidance here.
Focus on Terminology: "LEP"
Question: Who are limited English proficient (LEP) persons?
For persons who, as a result of national origin, do not speak English as their primary language and who have a limited ability to speak, read, write, or understand. For purposes of Title VI and the LEP Guidance, persons may be entitled to language assistance with respect to a particular service, benefit, or encounter. All programs and operations of entities that receive financial assistance from the federal government, including but not limited to state agencies, local agencies and for-profit and non-profit entities, must comply with the Title VI requirements.
https://portal.hud.gov/hudportal/HUD?src=/press/press_releases_media_advisories/2016/HUDNo_16-135.

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The Appraisers Page

Georgia Real Es1tate Appraisers Board

September 2017

Useful Links:
GREAB Web Site

Appraisal Act

GREAB Disciplinary Sanctions


Consequences of Overpricing
By: Hudson Holder, SRA
The Atlanta real estate market has undoubtedly made leaps and bounds since the dark years following the market crash. Many sellers have regained the equity needed to facilitate a long deferred move, while other 2011/2012 buyers have realized handsome returns-on-investment upon recent resale bolstering market conception of real estate as a sound investment vehicle. Seller optimism abounds at all price points, market segments, and locales. Great for Realtors, correct?
The best agents work markets with which they are familiar, areas where they know what drives buyers and sellers, markets where they know typical marketing times, price trends, recent comparable sales, absorption rates, etc. Sellers tend to view the real estate market through the rose-colored scope of their own property, to which they have strong emotional ties. Sellers often seek to recoup dollars invested in a property through this equation:
Market Value = (acquisition price + amount spent on improvements during ownership) x often over generalized or inflated rates of appreciation

Is this equation true? The wild fluctuations in the market in the past 10 years tell us that this equation is not true! Property values are always changing, much like stocks. Your house is probably not worth the exact same as it was a year or two ago, nor do we know what your house will be worth one or two years into the future, regardless of improvements made the market dictates the value of your home, which is not equivalent to personal capital outlays over time. Money invested in a property may drive the temptation to overprice the property. Media coverage of housing or misinterpretation of broad market indices or locational nuances may also lead to overpricing of a property. Regardless of reasoning, overpricing is the primary reason that properties fail to transact within typical marketing periods in an area.
To a typical seller, the consequences of overpricing a property may not be evident and overpricing may seem justified as a function of optimism:
"Someone will love my house so much they will pay what I am asking." "My house is by far the best in the neighborhood." "We will just reduce the price later if we have to." "The market is increasing we will wait until it increases to our asking price." "We've been on the market for seven years, just waiting for the right buyer."
While grossly overpricing a property may not seem detrimental to a seller, it is important to understand potential consequences of this approach:

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The Appraisers Page

Georgia Real Estate Appraisers Board

September 2017

Useful Links:

Consequences of Overpricing

GREAB Web Site


By: Hudson Holder, SRA
1. Overpriced properties do not transact, meaning the seller continues to incur costs associated with ownership including taxes, mortgage payments,

Appraisal Act

insurance, maintenance, etc. The goal of transferring ownership is not achieved. The hourly wage rate for the listing agent is $0/hour! 2. Overpriced properties stay on market for an extended period. The first two or



three weeks are typically crucial in marketing a property. It is important to be priced competitively from the onset to capture those buyers who are already

GREAB Disciplinary Sanctions


looking for your product in the marketplace. A property that sits on the market for an extended period runs the risk of becoming stigmatized has this property not sold because it has a flaw or problem? Further, an extended marketing time can lead to `chasing the market.' If your property is overpriced during a strong spring and summer sell season, a fall price reduction could be too late because the bulk of buyers are already settled into their new homes,

which were lower priced substitutes. Overpricing could also lead to missing

out on showings altogether, as your house may not even be on the radar for buyers and agents due to

asking price. If your buyer is looking at properties between $200,000 and $250,000, they are not even coming to look at your $315,000 listing. 3. Overpriced properties may ultimately sell for less. Largely driven by extended marketing times, sellers

typically become more motivated with longer days on market, few showings, and no offers. While a seller

may not consider themselves motivated on day one on the market, they may be very motivated on day 364 on market and much more likely to accept a below market offer out of necessity.

It pays to price your listing correctly! Seek out the advice of other agents in your office or a local appraiser to help accurately price your listing.
Mr. Holder can be reached at hholder@dsmurphy.com

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