GREC REnews, 2019 December

GGRREECC RREENNeewwss December 2019
Volume 15 Issue 12

Monthly Newsletter of the Georgia Real
Estate Commission

2020 Calendar
To be published in January 2020
Happy Holidays From the Georgia Real Estate
Commission!
Happy Holidays from the Georgia Real Estate Commission!
Link to the Georgia Real Estate License Laws, Rules, and Regulations

This Issue Proposed Rules Changes: Teams Disciplinary Stats AMK Section Focus on Terminology The Appraisers Page

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Proposed Rule Changes Regarding Teams

On December 11, 2019, the Georgia Real Estate Commission posted a Notice of Intent to Adopt Proposed Amendments to the Georgia Real Estate Commission Rules. There are 2 proposed amendments, both of which are summarized below. The complete Notice and documents can be reviewed from the Georgia Real Estate Commission web site or at this link Notice of Intent regarding Teams. The second Notice of Intent regarding Advertising Teams is summarized below and the full Notice can be viewed at the same link.

The proposed rule amendments will be considered for adoption by the Commission at its meeting on March 11, 2020, at 9:30 a.m. following the public hearing. A public hearing will be held at 9:30 a.m. on March 11, 2020, at the Georgia Real Estate Commission to provide the public an opportunity to comment upon and provide input into the proposed rule amendments. For additional information regarding submitting comments, refer to the full Notice at this link.

CHAPTER 520 Rule 520-1-.02 Purpose: The purpose of this proposed amendment is to define the terms "Team" and "Team Leader" as they relate to real estate brokerage activity in Georgia. Main Feature: Defining the terms "Team" and "Team Leader".

(u) "Team" is comprised of two or more licensees who

1. act on behalf of, and are affiliated with, the same firm;

2. work together on a regular basis to provide real estate brokerage services;

3. represent themselves to the public as a team; and

4. are identified by a team name.

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Link to Proposed Rule
Changes

Click Here

Click here to review a legend of the disciplinary actions the Commission may impose.
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GREC RENews December 2019, Volume 15 Issue 12

Proposed Rule Changes...

(v) "Team Leader" is a licensee designated by his or her qualifying broker or broker as a Team Leader. Each Team in a firm must have a Team Leader. Each Team Leader shall maintain an accurate list of the names, license numbers, contract information for each team member, and provide the list to the qualifying broker or broker of the firm.

CHAPTER 520 Rule 520-1-.09 Purpose: The purpose of this rule is to provide guidance for real estate firms and to help prevent confusion by the general public, regarding the advertising of real estate Teams in Georgia, by identifying requirements that are specific to the advertising of Teams for Georgia real estate salespersons, brokers and firms.

Main Features: Identifying the responsibilities of Team Leaders, qualifying brokers or brokers when advertising Teams. Identifying required and prohibited words and phrases used in Team advertising.

(11) Advertising as Teams. (a) It shall be the Team Leader's responsibility to submit all team advertising to the qualifying broker or broker of the Firm of which the Team is affiliated. The qualifying broker or the broker shall timely review all advertising by Teams to assure compliance with the advertising rules of Chapter

520-1-.09. Page 12 of 12 (b) The word "team" or "group" must be included as part of the name for all Teams. Real estate team or group names may not include the following words or phrases, or variations thereof: Associate; Brokerage; Broker; Company; Corporation; Corp.; Incorporated; Inc.; LLC; LLP; LP; Real Estate; Realty.
Link to Notice of Intent

bsolutely ust now Section

A licensee must first obtain the written permission of the owner, the owner's authorized agent, or the owner of a leasehold estate in order to advertise any real estate for sale, rent lease, or exchange

Information on a website maintained by a

licensee that is outdated shall be updated

or removed from the website within thirty

(30) days of the information becoming

outdated.

520-1-.09

(11) Any sign placed on any property offering it for sale or rent must be removed within ten (10) days after the expiration of listing; 43-40-25 (b) (11) 520-1-.09

Focus on Terminology: "Media"

For purposes of the real estate brokerage, Media includes all forms of advertising. The Definitions of Advertising and Media in Rule 520-1-.09 are shown below: (a) Advertising or Advertisement. For purposes of this rule Advertising or the term "advertising" or
"advertisement" means any manner, method, or activity by which a licensee through the use of any manner, method, or activity by which a licensee through the use of any media makes known to the general public real estate for sale, rent, lease, or exchange. (b) Media. For the purposes of this Rule, the term "media" includes, but is not limited to, print, photographs, broadcast, and the Internet including, but not limited to, such examples as newspapers, magazines, flyers, posters, business cards, billboards, radio, videos, television, signs (including office, directional, "for sale," "for lease," "sold," or vehicle signs), newsletters, voicemail, email, facsimile transmissions, Internet websites, blogs, video blogs, property listing database services, email farming, news groups, discussion lists, bulletin boards, social networking/social media, instant text messages, multimedia advertising, banner ads, pop-ups, and similar media.
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The Appraisers Page

Georgia Real Esta1te Appraisers Board

December 2019

Useful Links:
GREAB Web Site

Appraisal Act

GREAB Disciplinary Sanctions


Real Estate Valuation 2019 a year in review
By: D. Scott Murphy, SRA & E. Grant Murphy
According to census data released last month, the number of people who moved in the past 12 months fell to the lowest level on record (back to 1947). It appears people are staying put in record numbers. This fact directly impacts the supply of homes on the market.
One factor responsible for the decline in people moving is the aging of the U.S. population as the baby boomers move into retirement years. There is a growing trend of "aging in place" partly out of necessity as there is a lack of homes to move to. Particularly, there is a shortage of smaller homes which are affordable as many are looking to downsize.
According to Dr. Lawrence Yun, chief economist for the National Association of Realtors (NAR), despite historically low mortgage rates, US home sales have not commensurately increased, in part due to a low level of new housing options. Per Dr. Yun, the existing stock of homes fell to 3.9 month of supply in October. Most economists consider a 6month supply to be a balanced market. New home construction levels are far below those of the past, held back by high land costs and increasing regulatory hurdles imposed by local municipalities. Average developed lot prices and material costs have skyrocketed making it very difficult for builders to deliver affordable housing.
In contrast, the current housing supply in many of Atlanta's suburban mini-mansion communities now exceeds 9 months. This higher than average months of supply can be attributed to the fact that most of these homes were built in the 1990's through the early 2000's when larger, well-appointed homes were in vogue. This was fueled by the baby boomer generation who were at their peak income earning years and desired large homes to raise their families. Fast forward to today and that same generation is generally trying to sell en masse and downsize. Younger generations of buyers, who have lived through the recent recession, generally have more conservative needs in housing and have a taste for a more simple and modern design, leaving the suburban "mini mansions" with few potential buyers.
Condition of the home plays a huge role in the marketability and value of the subject property. We see many owners of these large homes either unable or unwilling to renovate their home. If no significant improvements have been made, it is not uncommon for the necessary updates to cost in excess of $100,000. Some multi-million-dollar properties may require remodeling in excess of $200,000. I have tracked a number of these properties where they are listed for as much as half as much as the current owner has invested in the property and the property still will not sell. There is such a lack of demand that it is uncertain

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The Appraisers Page

Georgia Real Estate Appraisers Board

December 2019

Useful Links:
GREAB Web Site

Appraisal Act

GREAB Disciplinary Sanctions


Real Estate Valuation 2019 a year in review
By: D. Scott Murphy, SRA & E. Grant Murphy
how low the seller will have to reduce the price in order to attract a buyer. While this information may be difficult for some sellers to hear, it is important to understand these changes in the real estate market and prepare accordingly. Today's buyers are looking for homes which are current and in great condition. In order to maximize value and minimize the time it takes to sell your home, take steps in the months or years leading to the time you are considering selling your home to make the necessary improvements to bring your home up to the current trends.
Start with the curb appeal and work your way inside. Refresh landscaping and consider painting your brick exterior. Focus on renovating the kitchen and the master bath. Earth tone colors and wallpaper are out or at least the wallpaper we used in the 90's. Wood tone cabinets are less popular and buyers are looking for lighter colors. Paint interior walls neutral colors of whites and grays. Refinish or replace flooring with contemporary colorings. The trend is moving towards lighter flooring. Open spaces are preferable to closed off spaces. Remove obsolete items such as intercom systems. Add technology everywhere you can. Move next to outdoor living. Buyers are seeking a peaceful get-away. Large decks and patios; screened porches; fireplaces and fire pits are very popular.
It is important for sellers to invest wisely. They should consult an appraiser or real estate agent for input. I recommend visiting other homes in the area, particularly new homes to gleam ideas to best improve the subject property. There are a number of companies who specifically specialize in property improvements prior to listing. One such company is UpSell Your Listing (www.upsellyourlisting.com) who will tour your home with the seller, outline a plan to renovate it in a way as to give the maximum return, complete the work and postpone collecting their payment until the home sells.
2020 is anticipated to continue to trend towards more efficient, modern, and technologypacked homes so sellers should take the necessary steps to capitalize on the market and maximize your value.

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