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WESTWORDS JUNE 2021

WE ARE

I AM ANDY GREGG PROPERTIES I AM GENUINE

I AM EMPATHETIC

I AM TRUSTING

I AM RELENTLESS

I AM AVAILABLE

I AM WEST USA

HIGHLY RECOMMENDED

WHAT PEOPLE ARE SAYING Unbelievable service and quality. Very knowledgeable of our area the market. Always available for us answering all questions and concerns. Highly recommend Andy Gregg Properties. Andy Gregg Properties provided impeccable service! Through the process of searching and buying my home they were on top of everything right away and also had perfect communication! Their enthusiasm and excitement to help me find my home eased the normal stresses of home shopping! Not only would I recommend them to anyone looking to buy/sell, I would go as far as saying you are making a BIG mistake by not choosing them! Andy and his team know the market and know how to get you the home of your dreams. With their expertise, they were able to locate the most amazing home, and advised us on the perfect offer that was accepted. They have helped us make our AZ dreams a reality!

BROKER BLOG WITH DEAN BECKER BUYERS FINDING ITEMS NOT DISCLOSED After Close of Escrow, buyers may find new conditions to their home that they believe should have been disclosed during the transaction by the seller. These new discoveries may be notifications the seller did not make or items the buyers did not investigate during their due diligence.

• HOA-HOME OWNERS ASSOCIATION via the

First, Let’s go through 5 of the ways sellers can make their disclosures.

Here are a few of the ways that buyers could discover more items that should have been investigated or disclosed to them prior to but typically found after COE.

• SPDS- SELLERS PROPERTY DISCLOSURE

STATEMENT should be filled out to the best of owner’s ability, correctly noting all conditions and repairs. Not only for the questions asked on the SPDS, but for anything that may be material to a buyer’s decision making on the purchase of the home. • Insurance Claims History- 5 year past insurance

claims or length of time of ownership if less than 5 years. Seller should also provide info if seller knows of a major insurance claim that happened maybe 8 years ago. This can also be investigated by the buyer’s insurance agent in the diligence period. • Affidavit of Disclosure is for properties/homes

that are not in subdivided neighborhoods in unincorporated areas where the seller owns 5 or fewer parcels. This disclosure works in conjunction with the SPDS to disclose what the seller knows about the property and area. • LBPA-LEAD BASED PAINT ADDENDUM for

properties built PRIOR to 1978. Sellers shall provide lead-based paint information or the ability for the buyer to investigate for LBP.

first page of the HOA addendum the seller should disclose contact information, costs, and fees within the HOA. Page 2 is for additional obligations and the information required to be disclosed to the buyers.

• Talk to the Neighbors. The home may not be

next to Glady & Abner Kravitz, but the neighbors tend to know what the scoop is on a property. • HOA- Go to a meeting and discuss

neighborhood issues, upcoming events, and future improvements within the area. • Evidence of repairs. Sometimes sellers attempt

to repair a property on their own as cheaply as Possible. Those repairs can conceal larger problems that are not often evident at a general home inspection. Have your home inspection be as thorough as possible with a tradesperson to inspect their specialty. Reinspect with the trades person prior to COE on the final walk through. • Documents left behind by sellers. Many times in

the sellers moving, they leave behind document proving items they knew about but did not disclose… repair quotes, replacement manuals, termite warranty, etc… Should your buyer run into this or any scenario, please call the brokers office to discuss.

QUESTIONS, CONTACT: Managing Broker, Dean Becker 602-942-4200

A LETTER FROM THE CEO To keep our Agents and their Clients data safe, in partnership with our email provider, West USA Realty is rolling out double authentication beginning June 1st, 2021 for our email accounts. In an effort to stop hackers, spammers, spoofers from gaining access to our Agents email accounts, on June 1st when you log into your West USA email account by going to www.westusamail.com, you will be prompted to enter a code, that will be sent in a variety of ways to you. Once this code has been entered, along with your email password you will be able to access your email. This double authentication will be optional for agents to set up and then will become mandatory July 1st, 2021. This will not impact anyone using a 3rd party email client like Outlook, Thunderbird, etc. Or anyone who has email directly on their mobile device.

2. Avoid pop-ups, unknown emails, and links Beware of phishing. Phishers try to trick you into clicking on a link that may result in a security breach. Phishers hope you will open pop-up windows or other malicious links that could have viruses and malware embedded in them. That’s why it’s essential to be cautious of links and attachments in emails from senders you don’t recognize. With just one click, you could enable hackers to infiltrate your computer network. Here’s a rule to follow: Never enter personal or company information in response to an email, pop-up webpage, or other forms of communication you didn’t initiate. Phishing can lead to identity theft. It’s also the way most ransomware attacks occur.

3. Use strong password protection and authentication Solid and complex passwords can help stop cyber thieves from Anytime you or anyone tries to access your West USA Realty accessing company information. Simple passwords can make email account you will receive a text with a code, if you are access easy. If a cybercriminal figures out your password, it not trying to access your email when you receive the code, could give them access to your network. Creating unique, you will know someone is trying to access your account. As many of you probably have seen, this is how banks and other complex passwords is essential. A strong password contains at least ten characters and industries who handle sensitive data allow users to log into their accounts. West USA Realty requests agents set up double includes numbers, symbols, and capital and lowercase letters. authentication with all email accounts, and any accounts that You should change your passwords regularly. Changing and remembering all of your passwords may be challenging. A holds sensitive data. password manager can help. Best Practices to keep you, your data, and your accounts safe: As often as possible, set up multi-factor authentication when you try to access sensitive network areas. This adds an 1. Protect your data additional layer of protection by asking you to take at least In your daily life, you probably avoid sharing personally one extra step — such as providing a temporary code sent to identifiable information like your Social Security number or your smartphone — to log in. credit card number when answering an unsolicited email, phone call, text message, or instant message. It’s essential 4. Connect to secure Wi-Fi to exercise the same caution at work. Keep in mind that Office & Home Wi-Fi networks should be secure, encrypted, cybercriminals can create email addresses and websites that and hidden. Public Wi-Fi networks can be risky and make your look legitimate. Scammers can fake caller ID information. data vulnerable to being intercepted. Hackers can even take over company social media accounts and send seemingly legitimate messages.

SHOW YOU’RE THE

NEIGHBORHOOD EXPERT WITH THESE 4 STEPS BY WISE AGENT To be a successful real estate agent, it’s vital that you know every detail about the neighborhood your clients are interested in. The knowledge you have of certain areas and neighborhoods can be the key to earning more clients and helping your current clients find their dream homes. Show your clients that you are the neighborhood expert with these 4 easy steps: 1. Send Newsletters In your newsletter, highlight popular neighborhoods and include information on the school district, entertainment and transportation in the area to show that you are knowledgeable about the neighborhood. Include photos and details on homes listed in the neighborhood as well. With Wise Agent, sending newsletters has never been easier. In less than two minutes you can create a newsletter your clients and prospects will enjoy. 2. Offer Market Reports on Neighborhoods Offer your clients a market report to show them how the neighborhood is doing in terms of homes on the market, average sales price, and other statistics your clients will be interested in knowing. By giving your clients an inside look at the neighborhood with useful information provided in market reports, you can show them that you are an expert on the area and that you can help them determine which neighborhood will best fit their family. 3. Offer to Do a Comparative Market Analysis A comparative market analysis will evaluate similar homes that have sold in the

neighborhood and will show the current market value of the prospect’s home. By showing your client the details of sold homes that are similar in the neighborhood, you will be giving them a more detailed look at what the market in the area looks like – establishing yourself as a market expert with this knowledge. Just because homes are listed for a certain price, does not mean that is what they will be appraised and sold for. Comparative Market Analysis will give an evaluation on homes that are similar and this information can be useful to your client when they are deciding where to purchase a home, especially if a home is near the top of their budget. 4. Send Emails Highlighting Neighborhood Events A simple email with a list of neighborhood events can show your clients that you know what’s going on in the neighborhood. Maybe the neighborhood is having a movie night in the park or an annual neighborhood garage sale — the more insight you can give to your client, the better. To find out about events going on, you can visit the neighborhood’s HOA site or call them – better yet, just a quick drive through the neighborhood may tell you what’s going on. Getting Started Like the old saying goes - “stick to what you know.” By staying up to date on neighborhood happenings and sharing this information with your clients, you will become a go-to resource for information on any neighborhood your client is interested in. Be prepared and let Wise Agent help you establish yourself as a neighborhood expert with tools like the Wise Agent newsletter feature.

LAWSUITS ARE ON THE RISE NEW LEGAL HOT BUTTONS HOW DO YOU PROTECT YOURSELF? WITH TODD MENARD

MARKET ADVISORY What are you telling the consumer about the current market? Are you advising them there is an inventory shortage? Are you advising the consumer that they need to pay more for a property than Comparable Value (CMA)? These conversations are a new hot spot for litigation. How you ask? Are we really in an inventory shortage or is there a supply and demand issue? These are not necessarily the same. Just like Month’s Supply and Absorption Rates, similar but different. Since 2019, every price range within ARMLS has increased in unit sales somewhere between 30% and 155%. The only portion of the market that is losing unit count is under $300,000. If we are in an inventory crisis, then how have we sold 48% more units than in 2019? Sure, we are static at the 5000 active property baseline as additional inventory is consumed by the increase in population, however the number of available properties has increased dramatically since 2019. Since we are meeting the demand, the prices are not increasing organically due to supply and demand principles. Rather, the licensees are telling consumers that they need to pay above comparable value to have their offer win over the multiple offers. This fact in combination with the reduction in home sales under $300,000 is causing the average/median sales price to increase above typical appreciation rates. The act of telling a consumer they need to pay more than Comparable Value is out of our wheelhouse. Comparable values take current sales into consideration in the final calculation. If there is advice it would be that some buyers are paying above what homes are worth which may mean at some point in time the values could reset at a lower price than what is being paid. In addition, we should advise clients as to the current and historical perspectives to allow them to make good pricing decision all by themselves. When you establish this

as a requirement for an acceptable offer you exceed your limitations of the real estate licensee role. Our brokers recommend you offer comparable value CMA’s to your buyers and allow them to decide if they want to pay more. Don’t tell them they need to in order to compete. These lawsuits will arise following the market reset and the statute of limitations may not have run out! EARNEST MONEY Ernest Money is not and does not make a better buyer, and it does not make a buyer more likely to complete the sale. What is earnest money for anyway? Read Section 7b lines 317-321 for the definition of why there is earnest money to begin with. Note: the buyer may submit an Unfulfilled Loan Contingency Form and cancel the contract with a refund of earnest money. If you desire to make earnest money non-refundable, check with the broker team for preferred language. In some cases, even if the additional terms indicate “earnest money to become non-refundable after the inspection period”, earnest money may be required to be refunded to buyer, like in the case of an FHA/ VA Amendatory Clause regarding appraised value. AAR PREQUAL FORM There is also a concern when listing agents accept buyer offers which do not include the AAR Prequal Form. The contract states in Section 2a, lines 69, “An AAR Pre-Qual Form IS attached here to and incorporated herein by reference.” There are many terms within the contract which reflect back to the AAR Pre-Qual, like the Unfulfilled Loan Contingency Form. How does not using the form affect the seller? How does not using the form affect the buyer? What affects does it have on the buyers ability to issue the Unfulfilled Loan Contingency form? These are all questions you CANNOT answer. These answers must come from a real estate attorney advising the person on the buyer’s breach of this covenant. The issue is not with the big box

banks… the banks are not a party to the contract and therefore are not ‘required’ by law to provide this form. However, the Buyer IS obligated to the seller for the ‘covenant’ of providing the AAR PreQual form as the contract states. Contact the broker team for their advice should you receive a contract without it. Also, as a buyer’s agent, you should explain to the buyer the covenant as worded in the contract. This will position your buyer to know what to say to their lender to fulfill the buyer’s obligation relating to this form. EXPIRED LISTINGS So you are looking for buyers and sellers. What do you do to generate new business? In the old days licensees were taught to hold open houses, and call property owners whose listings recently expired. Since the enactment of the Do Not Call Legislation “DNC”, the rules have changed but many agents are still calling expired listings. So, what is the rule? Agents shall not call, fax, email, or text owners of expired listings, period. This is a violation of the DNC list if the owner has protected their home and or cell phone. You would need to follow the do not call guidelines before contacting the owner. The DNC does not however prevent an Agent from knocking on the front door, unless of course the owner has a No Soliciting sign. There are major lawsuits brewing on the topic of Expired listings. You have the right to contact your past clients for 6 months following closing. The best advice that can be provided is to remain in contact with your past clients and continue to invite them to access your website for valuable information that they can download or that they can ask you to contact them. This is called permission-based marketing and is the only form of legal communication with consumers. Think of it this way, the consumer must ask you before you can call them. Expect to hear more about Expired Listings and permission-based marketing in the months to come.

MAY MARKET STATS

KRISTIN HARGRAVE If you would like to nominate an agent that is doing great things in the community or making a difference, please fill out the nomination form on the Mywestusa.com website under the downloads tab and the Cares button.

Kristin Hargrave from our Snowflake office is our June Agent in Action. She is making big things happen up north when it comes to organizing charitable opportunities for all the offices in the northern part of the state. She joined the West USA Cares Committee in January 2021 because she loves working for a company that has a culture of giving and generosity. Kristin wanted to be apart of that and dove in to help spread the love. In addition, she volunteers on the planning and zoning committee for Taylor, as well as, she has been volunteering the last 2 years on the Reservation for Chin Le Planting Hope. There she is helping put together a mobile Library because they only have one public Library which in New Mexico. She also organizes food deliveries for the elderly and is helping get a Thrift store up and running. Keep doing amazing things Kristin, and we love everything you do for our communities!

WEST USA HAS SOME OF THE VALLEY’S

TOP TEAMS & COACHES! DO YOU LIKE WORKING ALONGSIDE TOP PRODUCERS? LOOKING FOR LEADS? WANT TO GROW YOUR BUSINESS? M I N DY T H O M P S O N DIRECTOR OF BUSINESS DEVELOPMENT

602.316.8826

CALL FOR INFO

M O N DAY

T U E S DAY Broker Round Table w/ Kyle Fouts 10:00am - 11:00am / Zoom

ProStart Training Session 1 9:00am - 4:00pm / Zoom

West USA Weekly Webinar 9:00am - 10:00am / Webinar

ProStart Training Session 1 9:00am - 4:00pm / Zoom

W E D N E S DAY

Broker Round Table w/ Dean Becker 10:00am - 11:00am / Zoom

West USA Agent Orientation 10:30am - 12:00pm / Webinar

02 FREE REMOTE CE CLASS Agency and Industry Related Issues 3Hrs Agency Law 9:00am - 12:00pm / Zoom

FREE REMOTE CE CLASS Master the AAR Listing Contract 3Hrs Contract Law 9:00am - 12:00pm / Zoom

JUNE 2021

T H U R S DAY

F R I DAY

Instagram Basics for Real Estate Professionals w/ Keith Flynn 10:00am - 11:30am / Webinar

Facebook Basics for Real Estate Professionals w/ Keith Flynn 10:00am - 11:30am / Webinar

ProStart Training Session 1 9:00am - 4:00pm / Zoom

Don’t Do Dat w/Broker Bob Stephens 2:00pm - 2:30pm / Webinar

ProStart Training Session 2 9:00am - 4:00pm / Zoom

Company Wide Office Meeting 10:00am - 11:00am / Zoom

West USA Weekly Webinar 9:00am - 10:00am / Webinar

FREE REMOTE CE CLASS Duties to Clients and Customers 3Hrs Commissioner Standards 9:00am - 12:00pm / Zoom

Personal Branding for Real Estate Professionals w/ Keith Flynn 10:00am - 11:30am / Webinar

Coffee with Justin 10:00am - 11:00am / Zoom

ARMLS Training - Ask the Triner 1:00pm - 2:00pm / Webinar

Don’t Do Dat w/Broker Bob Stephens 2:00pm - 2:30pm / Webinar

Surprise Office Happy Hour 5:15pm - 8:00pm

ProStart Training Session 3 9:00am - 4:00pm / Zoom

West USA Weekly Webinar 9:00am - 10:00am / Webinar

FREE REMOTE CE CLASS To Be or Not To Be Paid, That is the Question - 3Hrs Contract Law 9:00am - 12:00pm / Zoom

Go West USA Marketing Spotlight (TBA) w/ Keith Flynn 10:00am - 11:30am / Webinar

Don’t Do Dat w/Broker Bob Stephens 2:00pm - 2:30pm / Webinar

28 West USA Weekly Webinar 9:00am - 10:00am / Webinar Don’t Do Dat w/Broker Bob Stephens 2:00pm - 2:30pm / Webinar

• CE- Continuing Education Renewal Training • Luxury Division Event

FREE REMOTE CE CLASS The NAR Code and the AZ Law (Triannual) 3Hrs Legal Issues 9:00am - 12:00pm / Zoom

• Commercial Division Event • Office Meetings