Happy Fathers Day Dad

Today is Fathers Day. I am a dad of two great kids and I am also the son of great man. I like most children have idolized their dad.

Well my parents are definitely up there in age, my dad is 76 and mom is 74 and they have been married 55 years.

My mom has advanced lung disease and is pretty much on her last days. She is at home on in house hospice. She has nurses that come and help…

Why do I talk about this on Fathers Day? Well because I have realized more and more of how much of a great man my dad is. He is a now full time nurse that has to lift my mom in and out of bed, in and out of the bathroom change her, feed her, tend to her every need. Remember he is 76 years old and is working 24/7.

He has gotten help from sister till she recently hurt herself. But he is still the primary care giver. Mom also has alzheimer’s, if you know anything about it, they go into periods where they sit and holler and complain…  That is a tough job a 24/7 caregiver to someone that complains and hollers at you.

So my dad has brought his hero status to a new level, he is showing me a new level of unconditional love. I ask myself if could do it, I have my doubts, BUT I am being taught by my hero.

I hope I am half the man you are to my wife and children.

Thanks Dad I Love you.

Wahoo We Are Somebody

Real Estate Agents Win IRS Battle Over Status


Rental income is called passive income for tax purposes, there is nothing passive about collecting rent. It also has to do with passive losses. The passive loss guidelines that were put into place were because at one time it became more profitable for some groups to buy property just for the losses. That caused weird things to the supply and demand. Back during the last banking debacle ( you thought this was the first time) we had lot of unoccupied commercial properties because their value was a tax loss. Well we all know what happens when construction stops. So the IRS came up with the passive loss rule, that said if real estate was not your primary income or a certain amount of hours per year were in the real estate business, then the losses had to spread out. 

Well the IRS has been challenging real estate agents status as “Real Estate Professionals” stating that only a real estate broker could claim that. The IRS’s position was that an agent was an idependent contractor  of the broker and therefore not active.  Which is hog wash if that is there primary business. Well it has been established in court that a real estate agent can claim themself as a “Real Estate Professional” in the eyes of the IRS.

Salt Lake Home Buyers CANNOT Use the $8,000 For A Down Payment


Salt Lake Home Buyers CANNOT Use the $8,000 For A Down Payment

She loves me, she loves me not, she loves me, she loves me not. That seems to be the ride we have been on since HUD  Secretary Shaun Donovan announced on May 12th 2009 that FHA is going to permit lenders to allow homeowners to use the $8,000 tax credit as a down payment. 

Well it seems that the Salt Lake 1st Time Home Buyers can get a bridge loan and use the $8,000 Tax Credit for almost everything BUT the down payment.

Kinda, the money can be applied to a down payment as long as it is in addition to the 3.5% minimum down payment required for an FHA Loan. So you can use for closing cost, buying down your interest rate, but you are still going to have to come up with 3.5%.

$8,000 Tax Credit For Downpayment Update

The Ups and Downs of the $8,000 Tax Credit For Down Payment


There is a lot of rumbling going on about being able to borrow the $8,000 tax credit for a down payment. Some say it is going away, that is NOT TRUE according to a spokesperson from the U.S. Department of Housing and Urban Development or HUD. It is a logistical issue, it has to go through state agencies, then these state agencies will loan the money and then collect it. 

Well as you can imagine these same state agencies have lots of questions. Here’s a good question. What are the rules? Seems fair enough to me. One of the biggest problems I see is how is it determined that a person is actually getting an $8,000 credit? If someone has a $10,000 tax liability then they would only have a $2,000 liability afterwards.

Then how do you collect it? Does the IRS send the credit to the agency?  

I think they better hurry, because to get the credit you have to buy a home by December 1st, 2009. Hmmm, I smell an extension don’t you but I wouldn’t bet on it.

Realtor, Agent, Broker, Sales Executive what’s the difference


Realtor, Agent, Broker, Sales Executive what’s the difference?


For those of us inside the industry we don’t realize how confusing and misunderstood it is. What are all those titles?


First let’s break it down into two categories. One is about a license and the other is an association. Each state has its own set of rules and guidelines, they pretty much mirror each other, differences are usually local issues that are being dealt with. Here is a link to Utah’s Administrative Rules for Real Estate which comes under the department of Commerce. It is not very exciting reading by any means.


In Utah there are two basic licenses, Real Estate Broker and Real Estate Agent. Brokers are broken into two categories Principal Broker or an Associate Broker. An associate broker is someone that has a broker’s license but is not the principal.  All real estate companies MUST have a principal broker. All active real estate licensees are either a principal broker or they are licensed under a principal broker. A company can have all brokers but only one is the principal and then the rest would be associates.


Then there is Realtor. Not all real estate agents and brokers are Realtors. A Realtor is someone that is a member of the National Association of REALTORS or as it is called in the industry the NAR. The NAR is a trade association and not a licensing agency. The NAR has a set of rules that its members agree. Locally NAR members are also members of the Utah Association of Realtors and their local board, I am a member of the Salt Lake Board of Realtors.


So then what the heck is a Real Estate Sales Executive or a Real Estate Sales Professional? Those are just fancy names for a real estate agent. There is the notion that being sales person is not a good thing or just a real estate agent is not very sexy or something, and people try to disguise that. I say hogwash, being a sales person is like any other profession, there are great, mediocre, lousy and downright not nice. It just seems that the only ones that ever get any press are the latter. A professional is a professional no matter what the profession whether you are a Doctor, Painter, Lawyer, Plumber, Accountant, Electrician or Real Estate Agent.


What about all those letters? GRI, CRS, ABR, CCIM, CIPS, CPM, SRES…?

That is a seperate topic I could spend time on but I won’t.

NAR Accredited Designations & Courses

Below are descriptions of all those initials you see after real estate agents names.  Below was copied from the www.realtor.org Realotrs typically know what they are but the general public has no clue and frankly I think most don’t care. 

I just consider myself a DGR (Darn Good Realtor) LOL

NAR Accredited Designations & Courses

REALTOR® Family Designation Programs

The NATIONAL ASSOCIATION OF REALTORS® has nine affiliated Institutes, Societies, and Councils that provide a wide-ranging menu of programs and services that assist members in increasing skills, productivity and knowledge. Designations acknowledging experience and expertise in various real estate sectors are awarded by each Affiliated group upon completion of required courses. In addition, NAR offers five certification programs to its members.

ABR, Accredited Buyer Representative

With over 40,000 members, REBAC is the largest association of real estate professionals focusing on all aspects of buyer representation. Over 30,000 ABR® designees have completed the REBAC course, passed the test and provided documentation of buyer agency experience.


REBAC (Real Estate Buyer’s Agent Council)

Contact REBAC, 800/648-6224, or visit the REBAC Web site.


ABRM, Accredited Buyer Representative Manager

Geared to real estate firm brokers, owners and managers that have or wish to incorporate buyer representation into their daily practice, designees have taken and passed both the ABR® and ABRMSMcourse and provided documentation of past management experience.

REBAC (Real Estate Buyer’s Agent Council)

Contact REBAC, 800/648-6224 or visit the REBAC Web site.

RLI logo

ALC, Accredited Land Consultant

ALC’s are the recognized experts in land brokerage transactions of five specialized types: (1) farms and ranches; (2) undeveloped tracts of land; (3) transitional and development land; (4) subdivision and wholesaling of lots; and (5) site selection and assemblage of land parcels. Acquire valuable skills through educational offerings leading to the ALC designation.

REALTORS® Land Institute (RLI)

For information on the ALC designation call 800/441-5263, visit the RLI Web siteor e-mail rli@realtors.org.


CCIM, Certified Commercial Investment Member®

CCIMs are recognized experts in commercial real estate brokerage, leasing, valuation and investment analysis. The CCIM business network includes more than 7,500 designees and an equal number of candidates principally in North America, but also in Asia and Europe. CCIMs are backed by a respected education program, as well as superior technology products and business resources.

CCIM Institute

Call 800/621-7027, visit the CCIM Web site.


CIPS, Certified International Property Specialist

The CIPS network is comprised of 1,500 real estate professionals from 50 countries who deal in all types of real estate, but with one common element: they are focused specifically on the “international” market. Whether traveling abroad to put deals together, assisting foreign investors, helping local buyers invest abroad, or serving an immigrant niche in local markets, CIPS designees are consumers’ best resource to ensure they are dealing with a professional skilled in the unique aspects of international real estate.


Call NAR Customer Service at 800/874-6500, e-mail NAR International or visit theCIPS Education page.



Acquire valuable real estate management skills through educational offerings leading to the CPM® designation. CPM® members have the competitive edge in every area of real estate management from residential to commercial to industrial.

Institute of Real Estate Management (IREM)

Contact Customer Service at 800/837-0706, ext. 4650 or visit the IREM Web site.


CRB, Certified Real Estate Brokerage Manager

The Certified Real Estate Brokerage Manager (CRB) designation is recognized industry-wide as the measure of success in brokerage and real estate business management. The designation is awarded by the Council of Real Estate Brokerage Managers to REALTORS® who have completed the Council’s advanced educational and professional requirements. CRB designees consistently increase their level of industry knowledge, advance their earning and career potential, increase their firm’s profitability and benefit from active involvement in our network of real estate professionals. The new CRB Designation Program now provides credit for management experience, higher education and previously earned NAR designations. Additional credits can be earned through the Council’s management education programs delivered live or by Self Study on CD-ROM.

Council of Real Estate Brokerage Managers

For more information, contact CRB, call 800/621-8738 or visit the CRB Web site.


CRS®, Certified Residential Specialist®

Agents can maximize their potential by earning the CRS® Designation and joining the organization that has served top-producing residential sales agents since 1977. The more than 35,000 CRS® Designees benefit from nationwide referral opportunities, a professional image that attracts customers, and sales and marketing support. The CRS® Designation is awarded to experienced REALTORS® who complete advanced training in listing and selling, and meet rigorous production requirements.

Council of Residential Specialists

Contact Customer Services at 800/462-8841, visit the CRS Web site.


CRE, Counselor of Real Estate

The Counselor of Real Estate – or CRE – is a member of The Counselors of Real Estate, an international group of recognized professionals who provide seasoned, objective advice on real property and land-related matters. Only 1,100 practitioners throughout the world carry the CRE designation. Membership is by invitation only.

Counselors of Real Estate

Call 312/329-8427 or visit the CRE Web site.


GAA, General Accredited Appraiser

Certified general appraisers wishing to increase their visibility should consider pursuing the GAA designation. The GAA designation is awarded to appraisers whose education and experience exceed state appraisal certification requirements and is supported by the NATIONAL ASSOCIATION OF REALTORS®.


Call 800/874-6500 ext. 8393 or visit theNAR Appraisal page.

Green sustainable property designation

Green Designation

The National Association of REALTORS® (NAR) Green Designation is the definition of green professionalism, excellence, and leadership for today’s real estate practitioners. Specifically designed to address the educational needs of practitioners in residential, commercial, and property management markets, this training program is a true cross-over designation and the only green designation recognized by NAR.


The Green REsource Council

Established by the National Association of REALTORS® (NAR), the Green REsource Council serves real estate professionals by providing comprehensive training and access to cutting-edge resources and tools as well as promoting green excellence, leadership, and consumer awareness within and across multiple real estate disciplines. Practitioners who complete the 3-day program are awarded NAR’s Green Designation, the only green training program recognized by the NAR.

For information on the Green Designation, visit the Green Web site (at www.greenresourcecouncil.org) or emailgreendesignation@realtors.org


GRI Graduate REALTOR® Institute

Members involved in residential real estate who want a solid base of information for their practice will want to participate in the REALTOR® Institute program and earn the GRI designation.


Contact your State REALTOR® Association for course dates and locations or go to the listing of State REALTOR® Associations available here.

NAR maintains a clearinghouse of information for individuals interested in the GRI program. For more information, visit the new GRI site


PMN, Performance Management Network

The Performance Management Network (PMN) is a new REALTOR® designation that’s built from the ground up to bring you the real-world skills, the know-how and the tools that will keep your business out front and on top of a lighting-fast market. This designation is unique to the REALTOR® family designations, focusing on the idea that in order to enhance your business, you must enhance yourself. The curriculum is driven by the following topics: negotiating strategies and tactics, networking and referrals, business planning & systems, personal performance management and cultural differences in buying and selling.

Women’s Council of REALTORS®

Contact the WCR Education Department, 800/245-8512 or visit the WCR Web site.


RCE, REALTOR® association Certified Executive

Association executives interested in demonstrating commitment to the field of REALTOR® association management should pursue the RCE designation. AEs are recognized for their specialized industry knowledge and their association achievements and experience.


Contact Renee Holland, 312/329-8545. More information can be found at theAssociation Executives Homepage.


Residential Accredited Appraiser

Certified residential appraisers wishing to increase their visibility should consider pursuing the RAA designation. The RAA designation is awarded to appraisers whose education and experience exceed state appraisal certification requirements and is supported by the NATIONAL ASSOCIATION OF REALTORS®.


Call 800/874-6500, ext. 8393, or visit theNAR Appraisal page.

SRES®, Seniors Real Estate Specialist

The SRES® Designation program trains REALTORS® to profitably and ethically serve the real estate needs of clients age 50+. Includes first year membership in SRES Council and its umbrella of services.

SRES Council

Call 800-500-4564 or visit the SRES Web site.

SIOR, Society of Industrial and Office REALTORS®

Individuals certified with the SIOR designation are top producers in industrial and office real estate brokerage. SIOR’s network includes more than 2,800 members in 480 cities in 20 countries on six continents. The Society’s mandatory re-certification requirement assures clients of the designee’s excellence in the fast changing commercial brokerage field.

Society of Industrial and Office REALTORS®

Contact Membership at 202/449-8200 or visit the SIOR Web site.

NAR Family Certifications and Certificate Courses

At Home with Diversity Certification

A ground-breaking professional education initiative designed to provide America’s real estate professionals with training and tools to expand their business as well as home ownership opportunities for more Americans.

AHWD certification relays to the public that those certified have been professionally trained in and are sensitive to a wide range of cultural issues inviting a wider volume of business from a greater variety of cultures.

For more information on this course and its business principles, please visit the At Home With Diversity sub-site or contact Diversity, 202/383-1201.


e-PRO® is a revolutionary training program presented entirely online to certify real estate agents and brokers as Internet Professionals. The NATIONAL ASSOCIATION OF REALTORS® is the first major trade group to offer certification for online professionalism.

e-PRO® is not just about technology – it’s about how you can leverage your most powerful asset, your people-skills, into doing more business on the Internet.

e-PRO® gives you:

  • Exhaustive Internet Training
  • Unique Competitive Advantage
  • Professional Distinction
  • CE credit is now available in several states

For more information on the e-PRO® certification, visit the REALTOR e-PRO® Web site.

REPA(sm), Real Estate Professional Assistants(sm) Certificate Course

REPA is a comprehensive two-day certificate course that provides an intensive introduction to the real estate business and to the specific ways support staff can become valuable assets to their employers. Every administrative employee in the brokerage office, from listing secretary to the personal assistant, will benefit tremendously from this quick-start program.

For more information, visit the Real Estate Professional Assistant Web site.

Resort & Second-Home Property Specialist Certification

RSPS certification is offered by NAR Resort for resort and second-home professionals around the world. REALTORS® specializing in resort and second-home markets and interested in demonstrating their knowledge and expertise should pursue the RSPS certification. The RSPS core certification requirements include the NAR Resort & Second-Home Market Course and the RLI Tax-Deferred (1031) Exchange Course. RSPS applicants will also choose from nine different elective choices including courses from the NAR Education Matrix and the NAR Resort Symposium held every 18 months.

For more information, NAR Resort 312/329-8393, or visit the NAR Resort Web site.

Transnational Referral Certification

The goal of this certification offered by the National Association of REALTORS® is to prepare real estate professionals to make and receive compensated referrals using the Transnational Referral system developed NAR and the International Consortium of Real Estate Associations (ICREA). Students will learn how to integrate international referrals, resulting in increased income, into their business plans.

When you are involved in an international referral, as a referring or receiving agent, the Transnational Referral Certification demonstrates to other real estate professionals that you are well versed in the procedures of the Transnational Referral system, have pledged to follow a code of conduct in business dealings, and expect that compensation, paid in a timely manner, will be an integral part of the transaction.


Salt Lake Home Buyers TO Get Zero Down Loans


On Tuesday May 12th HUD Secretary Shaun Donovan announced that FHA is going to permit lenders to allow homeowners to use the $8,000 tax credit as a down payment.

Donovan’s remarks came in an address to several thousand Realtors® gathered this morning at The Real Estate Summit: Advancing the U.S. Economy, a special daylong session at the Realtors® Midyear Legislative Meetings & Trade Expo.

The way it will work is the 1st time home buyer will be able to borrow from the lender the $8,000 in the form of a bridge loan. Bridge loans usually have a little higher interest rate. But if you amend your tax return and get your money quickly it shouldn’t be that big of a deal.

The terms and guidelines have not been laid out yet, I recommend you fill out the amendment and apply for the loan now, so that when it hits you’re out of the gate first. This will put pressure on prices of entry level homes that seem to already be in a short supply in Salt Lake Housing Market. See article on market conditions in Salt Lake.

To get started call me now while rates are low. This is going to cause a surge of 1st time buyers entering the market and a rush of loan applications will cause a bump in rates and a slowdown of underwriting.

Call me Today at 801-694-4762 or email me at Rob@Aubrey.net

What Makes A Buyer’s Market or a Seller’s Market

What Makes A Buyer’s Market or a Seller’s Market?

buyers-market-sellers market


A buyers market is when there is more than 7 months supply of homes in a given market, a seller’s is when there is less than 6 months supply of homes in a given market and 6 months supply is called a neutral market.

So how do you determine how many months supply of homes on the market?

Also what is a market?

A market is any given set of parameters. Area, Price Range…

So once you pick an area, a price rang…

Then you determine the # Active Listings

Then add the Sale Pending and the Sold listings for the last 60 days

Divide that number by 3, then divide the active listings by it.


So let’s go through a run.

I will do a report on Salt Lake County, Single Family Homes.

Using a price range from 0-$250,000

We have

2,740 Active Listings

848 Listings that have a sale pending

702 listings sold in the last 60 days

We add the 848 (pending) and 702 (sold 60 days back) and get 1,550.

We divide the 1,550 by 3 = 516.67

Then we divide 2,740 (active listings) by 516.67 = 5.30 Months Supply of homes.

Based on that we have a slight seller’s market. Not to be confused with the run away seller’s market of ’04-07. What it means that these seller’s are not taken a beating and giving away the farm to sell.

Because the 100% loan has all but gone away buyers have to come up with at least a 3.5% down payment and are asking the seller to pay the buyer’s closing cost. So sellers are getting about 97-98% of the value.


The $250,000-350,000 range is a neutral market with a 6.53 Month supply of homes

Active 1,485

Pending 358

Sold (60 days back) 324


The $350,000 and above market is definitely a buyer’s market with 10.56 months supply of homes


Active 1,978

Pending 293

Sold (60 days back) 269


Now bear in mind these are for Salt Lake County as a whole. You can break it even further and get different results.

Some cities or zip codes in $250-350,000 price range may very well be a buyer’s market and not a neutral market.

Utah Division of Real Estate Update

Utah Division Of Real Estate Update

New things happened during the Utah legislative session this year and it affects our real estate industry.

Utah’s Governor Jon M. Huntsman Jr. signed bills that change our education requirements. First, our continuing education will change to eighteen (18) hours, currently it is 12 hours with 6 hours being core. Second, pre-licensing hours will increase to a minimum of one hundred and twenty (120) hours, currently it is 90 hours. The dates for when the changes will go into affect have not yet been announced. The Salt Lake Board will announce this information as soon as it is released. I was told by a reliable source any license that expires this year will fall under the current guidelines.

We still are the only profession that breeds part timers. As long as real estate has a fairly easy entry we will have a lot of part timers. So where do you draw the line between easy and keeping everything professional. IMNSHO I think we should raise the membership fee to $5,000 that will get rid of the not so serious ones and then you will see professionalism. Because there will a lot less part timers it will become a very respectable profession.

Third, Utah has finally dropped out of the top ten for loan fraud. Since Utah was number one in loan fraud for a very long time, this is quite the accomplishment. To be # 1 in loan fraud at our size is scary, we are a small market compared to other places like New York, Los Angeles, San Francisco, Dallas, Houston, Philadelphia, Seattle, Denver, Miami, and Atlanta the list goes on. The division strives to increase the professional level of our real estate agents as well as the industry. I agree the division has done some things to circumvent the fraud, but I really believe it has more to do with the banks tightening up their stuff than anything else.

Information gathered from the Salt Lake Board of Realtors weekly newsletter with my views and opinions thrown in.