The TAR Digest: The Membership Newsletter of the Tennessee Association of Realtors

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Posted by Phil Newman | Comments Off on 8-29-16 TAR DIGEST
8-29-16 Vol.: 2016 Iss.: 32 Randy Durham, 2016 President • Phil Newman, TAR Digest Editor

? Convention deadline is Thursday—are you booked? #GreatBlue
? How to help our friends in Louisiana
? Meet the newest TREC commissioner, Rick Douglass of Memphis
? TN home sales dip, prices rise, inventory tightens in July


In the News
1. Last Call for Charleston: Thursday!
2. Tennessee Home Sales Dip, Prices Rise, Inventory Tightens
3. How to Help in Louisiana
4. TREC Stars: Rick Douglass

Member Services
5. TAR Leadership Directory
6. RETI Webinar: Remote Agents
Professional Development
7. Must-See CE: Master Minds Panel
Legal & Ethics Hot Line
Changing the Sales Price
8. Change List Price in MLS?

9. Mistake in Contract Sales Price?
10. Reduction in Lieu of Repairs?
Key Links & Resources

**Register for Fall Convention!**

1. Last Call for Charleston: Thursday!
Thursday, Sept. 1, is the deadline to register in advance for our 2016 Fall Convention, Sept. 14, 15 and 16, in Charleston, S.C. To reserve your place, go HERE. View this handy guide to Charleston HERE. This will be a huge party, a great opportunity to hear insights from inspiring speakers (and earn up to 10 hours of CE), and a golden chance to connect with friends old and new. Don’t miss it! #GreatBlue

2. TN Sales Dip, Prices Rise, Inventory Tightens
In July 2016, Tennessee single-family home sales dipped 3.7 percent (7,453 to 7,177 sales), the median price rose 10.7 percent ($187,000 to $207,000) and inventory fell 5.8 percent (33,978 to 24,511) vs. July 2015, according to statistics compiled by the Tennessee Association of REALTORS®. Meanwhile, July condo sales fell 13.6 percent (738 to 638) and the median condo price rose 10.9 percent ($151,950 to 168,500) over the previous July. “As we have seen in recent months, an overall tightening supply of available properties across the state spurred a decline in sales in July while contributing to a continued uptick in median prices,” said 2016 President Randy Durham. “This ongoing trend underscores the importance of moving quickly and wisely for those seeking to purchase a home. As REALTORS®, it also reminds us of the opportunities we have each day to work closely with buyers and sellers to help them navigate the challenging market.” Nationwide, total existing-home sales fell 3.2 percent to a seasonally adjusted annual rate of 5.39 million in July from 5.57 million in June. For only the second time in the last 21 months, sales are now below (1.6 percent) a year ago (5.48 million). The median U.S. existing-home price in July was $244,100, up 5.3 percent from July 2015 ($231,800)—the 53rd consecutive month of year-over-year price gains.
3. How to Help in Louisiana
The directors of the REALTORS® Relief Foundation will provide up to $350,000 to help flood victims in South Louisiana after record flooding has caused widespread damage. At press time, the floods had killed 17 people and damaged an estimated 60,600 homes as well as businesses, including some real estate brokerages. The floods are being called a “1,000-year event,” having produced two+ feet of rain in some areas. If you would like to contribute to the Foundation and support this vital effort, visit HERE. The full article about RFF’s initiative for Louisiana is HERE. [© AP Photo/Max Becherer]

4. TREC Stars: Rick Douglass
We recently featured each member of the Tennessee Real Estate Commission (TREC) in the Digest. This week we spotlight TREC’s newest member, Rick Douglass of Memphis, who brings a diverse business background and a heart for helping others.

Rick Douglass has held many titles: native Memphian, husband, dad, foster and adoptive father, electronics pro, seminary student, pastor, MBA grad, college instructor, loan originator, affiliate broker, and now TREC commissioner—yet the description that he hopes sums up his life most succinctly is one word: ministry.

In his family, career, community and beyond, Douglass, who was appointed to TREC by Governor Bill Haslam, looks for ways to put faith into action and make a positive difference.

“I have a passion for ministry, and that is a big part of our life,” he says, referring to his family—wife Melissa; daughter Donis, 25; son Bryson, 9; and grandson Mason, 2. “I enjoy serving as a volunteer pastor [for FaithWalk Midsouth in Memphis], teaching a Bible study, leading a Connection class on Sundays, being a deacon, and being involved in a hospital-visitation ministry.”

Bluff City Roots
Douglass grew up in Memphis and graduated from Elliston Baptist Academy before studying at State Technical Institute and launching a 16-year career in electronics, including stints at Motorola and at FexEx as a radio-data engineer. In his early 30s, fueled by “a passion for evangelism, biblical studies and pastoral ministry,” he enrolled at New Orleans Baptist Theological Seminary, earned a four-year degree, and began serving as a pastor.

To support his income during seminary, Douglass had spoken to a pastor friend whose wife owned a mortgage company. “I became an originator for the company part time. When I moved back to Memphis, trying to figure out what was next, I went to work for a bank out of Tuscaloosa (Ala.), and I originated loans for five or six years.”

In 1998, he earned his real estate license and became an affiliate broker, first at Norman and Long, then Crye-Leike, and later Keller-Williams. Today he is with KAIZEN Realty, LLC. He also earned his master’s in business administration from Union University in Jackson.

In another twist, his IT background led Douglass to join the Memphis location of the University of Phoenix in 2009 as Campus College Chair, managing part of the school and teaching classes in IT, business management and math—all while working full time in real estate.

Commission Trip
Acknowledging that he has “a lot to learn” as the newbie among TREC’s nine commissioners, Douglass says, “There are a lot of changes in the industry unfolding, and more probably need to take place. I feel like sometimes real estate might be behind other industries as far as innovation.”

In light of his IT expertise, Douglass says, “I love technology; I love exploring new technologies and how they can be integrated with or applied to real estate.”

Keeping up with emerging generations may require adjusted laws and rules to accommodate the rapid tech shift, he says, noting “the advent of more technology integrated into real estate transactions, the role of advertising online and on social media. Those are all going to be challenges. I want to be on the cutting edge and play my part. I am not one who feels comfortable sitting back; I want to help set the vision and create the direction that we move in.”

Douglass loves being on a team, especially one like TREC that is focused on upholding high standards. “On a very basic level, I’m a people person,” he says. “Having a ministry background, I think ethics will be a strong area for me. One of TREC’s primary purposes is to protect the consumer, and secondarily to educate the agent, which in turn further protects the consumer. It’s also to foster a business environment where people can excel while doing that.”

Meeting a Need
Back at home, the Douglass family is joyously busy. Rick and Melissa “have made multiple mission trips to Guatemala and overseas several times,” he says. “We have a passion for orphan children. We have ministered to them, led teams to build houses, and other activities. But we also realized there are a lot of orphans in our own city—about 1,200 children in foster care in Shelby County alone.”

Responding to “a conviction to play our part,” the family became certified as foster parents but “with no intention to adopt.” Bryson came to stay with them at age 5. “We fell in love with him, and it has been a life-changing experience,” Douglass says.

Four years later, Bryson is a permanent part of the family—and “a great little uncle” to toddler grandson Mason, his dad says.

Find more about Rick Douglass HERE and more about TREC HERE.

5. TAR Leadership Directory
Did you know you can look up all of the volunteer leaders and staff who serve on our state Association committees, along with PAGS, local Association leaders, past REALTORS® of the Year, and much more, all with a few clicks? Visit HERE on our website for a directory of leaders throughout Tennessee. (Member login required.)

6. Free RETI Webinar: Remote Agents
Leading far-flung agents has its challenges. To share several great techniques in this area, the Real Estate Technology Institute (RETI), a TAR partner, is offering a FREE webinar at 3 p.m. EDT/2 p.m. CDT this Wednesday, Aug. 31: “Managing & Motivating Remote Real Estate Agents,” led by Alex Camelio. Register HERE.

7. Must-See CE: Master Minds Panel
Among the many CE highlights at our Fall Convention in Charleston, the Master Minds panel of top performers on Friday, Sept. 16, shines as one not to miss. Moderated by Kristy Hairston (photo, center) of Nashville’s Village Real Estate Services, the panel will feature Patrick Lilly (left), an accomplished luxury broker in New York City; Sasha Farmer (far right), a top U.S. residential agent from Virginia; Valerie Hunter-Kelly (far left), a seasoned pro with Keller-Williams Realty-Clarksville; and Dave Friedman (right), a top-tier REALTOR® in Charleston. If you haven’t done so yet, save your spot for the Convention!

Legal & Ethics Hot Line Source: TAR Legal & Ethics Hot Line Counsel

Changing the Sales Price
When it is appropriate and how to amend the contract

There are many reasons why a list or sales price may change. The market could be fluctuating, your seller could be more motivated, there may have been a mistake in the sales contract, or a reduction may be made in lieu of repairs. Whatever the reason, you need to be careful in these situations and ensure that you follow MLS rules if altering the list price on the MLS.

8. Change List Price in MLS?

QUESTION: Can a licensee change the list price on a listing after there has been an accepted contract and the listing is showing as pending in the MLS system? I have heard about a mortgage company wanting to include the closing costs in the sales price, or for a short sale, and the bank wanting to reduce the list price in the MLS in order to close. Is this something that should be done after the buyer and seller have agreed and accepted the terms of a Purchase and Sale Agreement?

ANSWER: MLS is designed to be an accurate reflection of the listing agreement. Any changes to the list price must be at the request of the seller and signed by the seller and broker. Once an offer to purchase is accepted, the list price cannot be changed. This is because, unless there is a flat fee arrangement, your commission (and cooperative compensation to the selling agent) is established by the list price in the listing agreement. Obviously, if an incorrect list price has been entered into the MLS, you should contact your MLS to find out the process to get it corrected. The sales price entered into MLS should be the price reported on the HUD-1 closing statement.

9. Mistake in Contract Sales Price?

QUESTION: Buyer and seller verbally agreed to a purchase price. The listing agent typed up the Purchase and Sale Agreement, but accidentally listed the sales price as $900 higher. How should the price be remedied? Should we draw up another counteroffer with a different binding date, or amend the contract?

ANSWER: The best way to handle this is to execute an amendment to the contract, as this would have no impact on the Binding Agreement Date. Drawing up a different counter would open the door to the question of when the binding date should be—the date orignially agreed upon or the date the mistake was caught.

10. Reduction in Lieu of Repairs?

QUESTION: We have a contract that was contingent upon the home inspection. The inspection was completed, and in lieu of repairs, we want to reduce the purchase price. Which form do we use for this situation?

ANSWER: The boilerplate language of the TAR Purchase and Sale Agreement does not contain specific language that the buyer and seller can agree to a reduction in purchase price in lieu of repairs. However, the parties may do so during the Resolution Period if they wish. We recommend using RF653, the Amendment form, and stating:

1. Sales price shall be $__________
2. No repairs are required to be made by seller.

Use the blank amendment instead of the repair/replacement amendment in this situation, since the parties are not agreeing on specific repairs.

To check your CE
For CE and other courses around TN:
For online CE courses:
To ask a TAR Legal and Ethics Hot Line question:
TAR website:
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2016 TAR Fall Convention
Sept. 14, 15 and 16


**Advanced Registration Deadline THURSDAY!**


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