ArcadiaREALTOR®The Official Publication of the Arcadia Association of REALTORS®

VOL. 18, NO. 4WWW.THEAAR.COMAPRIL 2014

PROUDLY SERVING THE REALTORS® OF ARCADIA, BRADBURY, DUARTE, MONROVIA AND SIERRA MADRE

Events 4 Charity - Day at the Races

See page 8

2

Arcadia Association of REALTORS®601 South First Avenue

Arcadia, California 91006626.446.2115

626.446.4072 FAXwww.TheAAR.com

2014 ASSOCIATION OFFICERSMike Vachani {President}

Joe Pacilio {President-Elect}Roy Blume {Vice-President}

Sylvia Ramos {Secretary/Treasurer}

2014 ASSOCIATION DIRECTORSMicah Adams

Ryan AsaoAndy Bencosme

Kelvin ChangMargaret Garemore

John LeeMark Ramos

Dave ScarminachIrene Yamagata -Bermudez

2014 C.A.R. DIRECTORSRyan Asao

Andy BencosmeMargaret Garemore

Joe PacilioRandall Traw

Mike VachaniKelvin Wong

ARCADIA ASSOCIATION STAFF

Robin Allen Ext. 307 Director of Finance / Office Manager Robin@TheAAR.com

Michael Beltran Ext. 302 IT Director / Webmaster Michael@TheAAR.com Brenda Faltes Ext. 304 Director of MLS Data Integrity, Supra & Social Media Brenda@TheAAR.com Jamie Hu Ext. 309 Administration Jamie.Hu@TheAAR.com

Stephanie Maertens Ext. 303 Director of Education, Publications & MLS Caravan Stephanie@TheAAR.com

Maria Roberts Ext. 305 Director of Membership & Professional Standards Maria@TheAAR.com Jane Shriver Ext. 301 Director of Association Services Jane@TheAAR.com

Andrew Cooper Ext. 308 Chief Executive Officer Andrew@TheAAR.com

{ Arcadia REALTOR® | April | Two Thousand and Fourteen | Volume Eighteen | Number Four}04.14

ArcadiaREALTOR®

April 2014

REGULAR FEATURES

4 Events Calendar

4 From the CEO’s Desk Andrew Cooper, Chief Executive Officer

5 Attorney Comments Dave Freeman, AAR Legal Counsel

6 Market Matters

9 Affiliate Corner “Three Reasons You Want Higher Mortgage Rates” John Thompson, TGLoans

10 Through the Lens A Look at What’s Happening Around the AAR

3

ON THE COVER8 AAR Day at the Races A short recap of the annual charity event hosted by the AAR Events 4 Charity Auxiliary.

ADDITIONAL CONTENT3 AAR New Members The AAR welcomes its newest REALTOR® Members.

5 Windows XP and Office 2003 - Support Ending As of April 8th, 2014 Microsoft will end support for Windows XP and Office 2003.

11 SRES Deignation A recap of the recent designation offering of the AAR.

11 Appy Hour What do you get when you mix a YPN Happy Hour and a Technology class?

Arcadia REALTOR® Magazine3

AAR New MembersThe Arcadia Association of REALTORS® would like to formally welcome our newest REALTOR® members!

AAR new members with Membership Committee Vice-Chairman, Cindy Shiao; Committee Chairman, Alma Aguilar and 2014 President, Mike Vachani are (in no particular order): Jia Bao, Coldwell Banker George; Kenneth Burns, K&M Realty; Jessimine Chang, A&C Intl Investment Inc.; Ally Chau, Resource Real Estate Services; Christine Chen, Highland Real Estate; Jui-Yu Chen, Coldwell Banker Arcadia; Renee Chen, Keller Williams West Foothills; Ye Chen, Highland Real Estate; Christopher Edwards, Keller Williams West Foothills; Stephen Eng, Re/Max Omega; Jessica Fu, Long Dragon Realty Group, Inc.; Francisca Garibay-Villagomez, Re/Max 6000 Realty; Yi Gong, Long Dragon Realty Group, Inc.; David Gould, CP Realty; Malak Hakimeh, HomeSmart Realty; Chien Hui Huang, IRN Realty; Jieun Jung, Keller Williams West Foothills; Poyuan Kuo, Long Dragon Realty Group, Inc.; Wun Kwan, Highland Real Estate; Shui Lai, Keller Williams West Foothills; Jong Lee, IRN Realty; Shu Ling Lee, Castlewood Corporation; Jiabao Liang, Keller Williams West Foothills; Brian Lin, Brian Lin; James Ly, Century 21 West Coast Brokers; Pui Man, Coldwell Banker George Realty; James Manoledes, Berkshire Hathaway Homeservice; Jesus Pulido, Re/Max 6000 Realty; Minjuan Qiao, Coldwell Banker George; Tom Safa, Tom Safa; Alexandra Sciarra, Coldwell Banker Arcadia; Sair Tam, IRN Realty; Sau Tam Lam, IRN Realty; Ying Tsang, Keller Williams West Foothills; Fuying Wang, Highland Real Estate; Alexandria Wong, Coldwell Banker George; Jeff Wong, Keller Williams West Foothills; Kenny Wong, Re/Max Omega; Selina Wong, Long Dragon Realty Group, Inc.; Jeng Yang, Keller Williams Realty; Nikki Yang, Essence Business Group; Qiong Yang, Highland Real Estate; Qizhi Zhang, IRN Realty and Vicky Zhang, Highland Real Estate.

LEARN HOW TO KEEP THEM FROM STRAYING

Who you are, and what you are, make a big difference. ABR® after your name tells buyers that you’ll provide the attentive service they expect - and that you’ll be loyal to them too as you track the scent of their new home together.

The cornerstone of buyer representation education, this comprehensive course covers this specialty top to bottom and is required to earn the ABR® designation. For complete information on designation requirements, see the back of this fl yer or visit www.rebac.net.

MAY 29-30, 20149:00 A.M. TO 5:00 P.M.

ARCADIA ASSOCIATION OF REALTORS®

601 SOUTH FIRST AVENUEARCADIA, CA 91006

COURSE FEE: $189

To register, please visitwww.Th eAAR.com and click on the

course title under“Upcoming Events”.

Lunch on fi rst day sponsored by Mary

Kay, Advanced Group Property Inspections

A continental breakfast and light lunch will be provided

both days of the course.

4

FROM THE CEO’S DESK

Go Ahead - Embrace your Mistakes!

I recently read an article about an entrepreneur named Josh Linkner. Josh Linkner starts and sells many start-up tech companies. A recent project of

his is to revitalize downtown Detroit - not an easy task. In the article, Josh talked about a fundamental need to make mistakes if we want to excel. I found this to be a fascinating concept because it goes against conventional thinking.

Most of us are fearful of making mistakes - we were taught that mistakes are bad while growing up. Linkner said that it’s vitally important to rid ourselves of that thought process and to remind ourselves that past mistakes do not equal future mistakes. And when we do make a mistake, if we are too quick to judge ourselves and say, “Boy, I’ll never do ‘that’ again…”, you may be depriving yourself from important growth opportunities. Just because you stumbled or miscalculated once doesn’t mean you will do it again.

Here’s an interesting thought; some companies actually build a 20% factor for mistakes into their annual budgets. It gives them the freedom to be wildly experimental and to try innovative strategies, realizing that there likely will be mistakes that they’ll have to rectify along the way. But because the other 80% is such a productive payoff, they don’t mind paying the 20% premium for these mistakes. Josh Linkner went one step further and said that he gives his employees 2 “Get Out of Jail Free” cards each year. This empowers his employees to go out and try insanely creative things, all for the good of the company. What if we did the same thing to build our business? Think of the liberation you would feel and the results you would derive from that new mental paradigm shift!

It’s critically important to accept that mistakes are a mandatory part of success. The bottom line is this: If we’re not making mistakes then we’re not trying.

Past mistakes are past mistakes. Let’s use them, let’s learn from them, but let’s not dwell on them. There is tons of success to be achieved for you - and glorious new mistakes to be made along the way.

T 1 10:00 a.m. - 12:00 p.m. - zipForm Plus Training 11:00 a.m. - Global Real Estate Committee Mtg.

W 2 8:30 a.m. - MLS Caravan 9:30 a.m. - Events 4 Charity Auxiliary Mtg.

Th 3 9:30 a.m. - Commercial / Investment Committee Mtg. 11:00 a.m. - Commercial Education & Networking Session 1:00 p.m. - 5:00 p.m. - “Real Estate Contract Training” 5:30 p.m. - 7:30 p.m. - New Member Welcome Reception

F 4 12:00 p.m. - 1:30 p.m. - AAR Speech Masters

M 7 10:00 a.m. - 2:00 p.m. - CRMLS Training

T 8 9:00 a.m. - 12:00 p.m. - “Legal & Tax Consequences of Short Sales vs. Foreclosures” 11:00 a.m. - Tech / YPN Committee Mtg.

W 9 8:30 a.m. - MLS Caravan 8:45 a.m. - Affiliate Committee Mtg. 9:30 a.m. - MLS Committee Mtg. 1:00 p.m. - 5:00 p.m. - “Real Estate Contract Training”

T 10 9:00 a.m. - 12:00 p.m. - “Business Opportunities 102” 9:00 a.m. - 1:00 p.m. - Forest Lawn Museum Tour 3:00 p.m. - 5:00 p.m. - Global Mixer

F 11 9:00 a.m. - 5:00 p.m. - “AIR Commercial Contract Forms Review” 10:00 a.m. - 12:00 p.m. - “Listingbook AI Training”

T 15 9:00 a.m. - 12:00 p.m. - “Save Your Commissions, Don’t Get Fines” 2:00 p.m. - Education Committee Mtg.

W 16 8:30 a.m. - MLS Caravan 9:30 a.m. - Equal / Housing Opportunity & Public Relations Committee Mtg. 1:30 p.m. - Local Governmental Relations Committee Mtg.

Th 17 11:00 a.m. - 12:00 p.m. - Lunch & Learn Series Class 1:00 p.m. - 5:00 p.m. - “Real Estate Contract Training”

F 18 AAR Office Closes at 1:00 p.m. for Good Friday

T 22 1:30 p.m. - Budget and Finance Committee Mtg. W 23 8:30 a.m. - MLS Caravan

Th 24 1:00 p.m. - 5:00 p.m. - “Real Estate Contract Training”

F 25 8:30 a.m. - Board of Directors Mtg.

T 29 9:00 p.m. - 12:00 p.m. - “45-Hour Continuing Education Review & Exams”

April 2014

April Events

Andrew CooperChief Executive Officer

Why is Microsoft ending support for Windows XP and Office 2003?

In 2002 Microsoft introduced its Support Lifecycle policy based on customer feedback to have more transparency and predictability of support for Microsoft products. As per this policy, Microsoft Business and Developer products, including Windows and Office products, receive a minimum of 10 years of support (5 years Mainstream Support and 5 years Extended Support), at the supported service pack level.

Thus, Windows XP SP3 and Office 2003 will go out of support on April 8, 2014. If your organization has not started the migration to a modern desktop, you are late. Based on historical customer deployment data, the average enterprise deployment can take 18 to 32 months from business case through full deployment. To ensure you remain on supported versions of Windows and Office, you should begin your planning and application testing immediately to

ensure you deploy before end of support.

What does end of support mean to customers?

It means you should take action. After April 8, 2014, there will be no new security updates, non-security hotfixes, free or paid assisted support options or online technical content updates.

Running Windows XP SP3 and Office 2003 in your environment after their end of support date may expose your company to potential risks, such as:

Security & Compliance Risks: Unsupported and unpatched environments are vulnerable to security risks. This may result in an officially recognized control failure by an internal or external audit body, leading to suspension of certifications, and/or public notification of the organization’s inability to maintain its systems and customer information.

AttorneyComments

By Dave Freeman, Association Counsel

April 2014

1. POOL DRAINS: Pool drains and covers on public pools must comply with the Federal law requiring: compliant drain covers installed and a second anti-entrapment system installed, when there is a single main drain other than an unblockable drain.

This is a somewhat major installation in an existing pool, as it usually requires the cutting of the plaster and adding a separate drain path, in addition to the installation of the new drain cover. The purpose is to prevent death and injury from the suction created when the pool is circulating and draining.

Such a drain system is not required on pools and spas that are open to no more than a single family residence, but are required on apartments and condominiums. Something to inquire about when your clients are purchasing

condos or apartment buildings.

2. SHORT SALES: Junior Trust Deed holders (seconds and thirds) can be difficult to deal with when negotiating short sales. But don’t ignore them or close the deal without including them. I had a client who was told that the second wouldn’t cooperate in the short sale and that they could not sue the client later.  They completed the short sale and the client went forward, paying only the first, for years. As you know, the second trust deed remains in place. Three years later, the second holder came after the client, demanding full payment as well as penalties and late fees.  Become educated if you intend to work in this area, and encourage your fellow agents to do so as well, and to ask questions of knowledgeable people.

3. INSPECTIONS: Never underestimate

the seller’s ability to fail to disclose. I frequently see matters where sellers don’t tell agents, who don’t tell buyers of problems with the property being sold. Leaks, bad plumbing, noisy neighbors, property line disputes all are a lawyer’s dream. To complicate matters, condominium HOAs try to tell the new owner that the problem belongs to the individual owner.

Save the buyer, seller and yourself a lawsuit by telling the seller to disclose, in writing anything that he/she would want to know and that the buyer could be upset about later. Additionally avoid the inspector that you know will OK the property with only minor recommendations. If you see any signs of previous leaks for instance, help the buyer follow up. Help the buyer to know any potential problems before you close escrow.

Arcadia REALTOR® Magazine5

Windows XP & Office 2003 - Support Ending

(Continued on Page 9)

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MarketMatters

Market Statistics for the San Gabriel ValleySingle Family Homes Condominiums SFR Only

City Zip Code

Sales of Single Family

HomesPrice Median SFR ($1,000)

Price % Chg from February

2013

Sales Count

Condos

Price Median Condo

($1,000)

Price & Chg from February

2013

Median Home Price/

Sq. Ft.Alhambra 91801 4 $548 14.1% 10 $433 3.1% $408Alhambra 91803 11 $490 9.0% 2 $428 44.9% $374Altadena 91001 17 $550 17.0% 1 $1,150 n/a $340Arcadia 91006 25 $820 -4.7% 8 $434 -27.7% $483Arcadia 91007 18 $1,365 21.3% 12 $464 -0.7% $555Azusa 91702 15 $328 27.3% 8 $214 5.7% $285Duarte 91010 17 $380 35.5% 3 $273 -14.0% $325El Monte 91731 3 $370 23.3% 1 $527 157.1% $314El Monte 91732 10 $380 24.6% 6 $438 34.8% $298El Monte - South 91733 2 $406 21.3% 4 $362 33.6% $247Glendora 91740 12 $420 26.3% 5 $323 n/a $291Glendora 91741 18 $543 2.5% 3 $386 1.3% $339La Cañada Flintridge 91011 17 $1,165 -1.5% n/a n/a n/a $510La Verne 91750 19 $575 17.3% 4 $210 -6.7% $296Monrovia 91016 13 $579 -3.8% 6 $360 13.4% $403Pasadena 91101 1 $396 8.5% 6 $610 71.0% $432Pasadena 91103 14 $465 24.8% 2 $637 35.6% $346Pasadena 91104 17 $605 2.5% 1 $515 40.1% $393Pasadena 91105 2 $1,118 28.8% 5 $700 -14.9% $501Pasadena 91106 5 $986 10.5% 15 $433 30.1% $613Pasadena 91107 18 $595 -26.4% 2 $220 -37.1% $433Rosemead 91770 15 $450 13.9% 2 $360 -4.5% $345San Gabriel 91775 11 $703 35.1% 1 $260 n/a $460San Gabriel 91776 9 $534 0.7% 1 $420 19.3% $374San Marino 91108 9 $2,000 29.0% n/a n/a n/a $828Sierra Mdre 91024 7 $840 60.8% 2 $455 -12.9% $512Temple City 91780 20 $655 12.6% 6 $380 -20.9% $479

Source: DQNews.com

February 2014

April 2014

7Arcadia REALTOR® Magazine

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April 20148

DAY AT THE RACES!REALTORS®, family and friends all enjoyed a beautiful afternoon at the Santa Anita Racetrack for the AAR Annual Day at the Races. It was a day filled with good fun, good food and fantastic company. With a gorgeous view of the San Gabriel Mountains, what a setting for such an event! A big thank you to those who came and participated in helping to make this such a great event. Special thank you to Event Chairperson, Kal Antoun of First Priority Financial and all those who helped to sell tickets for the event.

FRIDAY, MARCH 14

Affiliate Corner“Three Reasons You Want Higher Mortgage Rates”

By John Thompson, TGLoans

Most experts believe rates on longer term mortgages will rise later this year and into 2015 – this tends to be viewed as a negative for the real estate market and that may be true in the short run. However, higher mortgage rates on long term fixed rates will actually be good for the health of the market and therefore your clients and your income.

1) Stabilize the Market - Mortgage rates have been low for so long that many of us have forgotten when a 30 year fixed was in the 6%-8% range in a normally functioning market, let alone when they were in the high double digits for a short while in the early 80’s. With tight inventory and lending standards our market is skewed in favor of sellers now. Higher rates will encourage more sellers (who assume appreciation will slow) and buyers (who worry about the higher cost of ownership) to get off the sidelines. Over time this should normalize the marketplace.

2) Bring Back Private Investors and Products - The biggest reason higher rates are needed is that the government still has a hand in 80-90% of mortgage financing today. Private investors are not coming back into the market quickly, simply because yields/returns are too low for them. Experts estimate that mortgage rates are artificially low by 1-2% if it were not for the support of the Federal Reserve. FNMA and Freddie cannot continue to be the buyers of all the mortgage debt because they are compelled to lend in a narrowly defined box. Private investors will create new products for self-employed borrowers, lower down payments

and higher debt ratios. Some may argue that this may not be prudent but the reality is that there are a ton of responsible borrowers who don’t fit in the box right now and want to buy and sell homes but don’t because they cannot qualify. We have seen some growth in this area in the last year but if rates rise 1.0%-1.5% I believe we will see a flood of new product and investors opening doors for a new wave of sellers and buyers.

3) Create Inflation - Inflation has been benign for years and some argue that we should be worried about deflation. However, most economists agree 2%-3% inflation is good for homeowners and the economy in general. Normal inflation leads to higher asset prices, higher incomes and improve returns on fixed income investments like savings, money market funds, bonds etc. This generates added income for owners of these assets, typically older investors, which drives more money into circulation to be spent - leading to a virtuous cycle within our overall economy.

So don’t be afraid of higher rates - they are coming and it is a good thing!! Understand how they help you and your clients. Take advantage of where we are now but be prepared to advise and assist your clients over the next decade as rates rise along with a healthier real estate market!

John Thompson is a Mortgage Advisor and Branch Director with First Priority Financial - A Direct Lender and Mortgage Broker. The TGloans Team creates a Remarkable Borrow Smart/Repay Smart Experience for their clients. Find out more at www.borrowsmartgo.com 626-583-1623 | john@tgloans.com.

9Arcadia REALTOR® Magazine

Lack of Independent Software Vendor (ISV) & Hardware Manufacturers support: A recent industry report from Gartner Research suggests “many independent software vendors (ISVs) are unlikely to support new versions of applications on Windows XP in 2011; in 2012, it will become common.” And it may stifle access to hardware innovation: Gartner Research further notes that in 2012, most PC hardware manufacturers will stop supporting Windows XP on the majority of their new PC models.

How do I begin my migration?

Enterprise Customers: Microsoft offers large organizations in-depth technical resources, tools, and expert guidance to ease the deployment and management of Windows,

Office and Internet Explorer products and technologies. To learn more about migration and deployment programs, please contact your Microsoft sales representative or Certified Microsoft Partner. Learn how to pilot and deploy a modern desktop yourself, download the free Microsoft Deployment Toolkit and begin your deployment today.

Small to Medium Business: There are many options for small and medium businesses considering moving to a modern PC with the latest productivity and collaboration tools. Small to mid-size organizations should locate a Microsoft Certified Partner to understand the best options to meet their business needs. If your current PC meets the system requirements for Windows 7 or Windows 8.1, you can buy Windows 7 Professional or Windows 8.1 Pro from a local retailer or Microsoft Certified Partner. If your PC does not meet system requirements, consider purchasing a new business PC with Windows 8.1 Pro.

(Continued from Page 5)

Source: Microsoft

10

A Look at What’s Happening Around the AARthroughthe lens

10April 2014

PEPster Breakfast with Assemblymember, Chris Holden and Director of Public

Affairs, Metro Gold Line Foothill Extension Construction Authority, Lisa Levy Buch

Global Networking Event: “Dealing with Foreign Buyers & Investors” Guest speakers: Winnes Wong, CPA; Tony W. Wong, Attorney and Choe Hung, Wells Fargo.

11Arcadia REALTOR® Magazine

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AAR Hosts SRES Designation CourseThe Arcadia Association of REALTORS® had the honor of recently offering the Senior Real Estate Specialist (SRES)

Designation Course. For two days, instructor Nate Ellis, of Walnut Creek, California offered his expertise and knowledge to each of the attendees. A total of 18 students joined together in determination to gain their SRES Designations. By

earning the SRES Designation, they have demonstrated the necessary knowledge and expertise to counsel clients age 50+ through major financial and lifestyle transitions involved in relocating, refinancing, or selling the family home. They have received special training, get regular updates, and are prepared to offer the options and information needed in making life

changing decisions. Congratulations to the newest SRES Designees!

SRES Designees with the course instructor are (in alphabetical order): Vicki Adams, Alma Aguilar, Toddy Chapman, Alexandra De Graeve, Jan Greteman, Gina Huang, Edmon Lee, Angel Lerma, Fanny Leung, Xiao Lin, Ling Liu, James Manoledes, Pushpalatha Nagaraj, Aileen

Noche, Fernanda Otalora, Connie Snider, Ning Trillana and Jun Xu.

The Tech / YPN Committee has been hosting “Appy Hour” on the third Thursday of every

month from 6 p.m. to 8 p.m. As a FREE opportunity to network, socialize, and learn about effective and prized apps, the Tech / YPN Committee cordially invites all to come join the events! We meet at a different location every month and vote for the best app for its purpose at the “Appy Hour”. Free appetizers will be served. Drinks will be accommodated via a no host bar.

March 20th was our last event and it was a huge success. The bustle of professionals from a plethora of fields joined together to eat and drink amongst the discourse of top rising apps. The top three apps of the evening were “Chase”: for mobile banking functionality, “Waze”: community based traffic & navigation app, share real-time traffic and road information and “CardMunch”: take a picture with the app and a business card is converted to a contact automatically. March’s “Appy Hour”

was held at The Original Peppers Mexican Grill & Cantina in Arcadia, and was sponsored by Laura Pozzi, Cutco Closing Gifts. The April “Appy Hour” event will be located at Robin’s Wood Fire BBQ in Pasadena on Thursday April 24th from 6 p.m. to 8 p.m. This Month Featuring: Charity Karaoke!

We look forward to seeing you all at the next “Appy Hour”! Bring your business cards, your thinking caps, and share with us your favorite app!

Appy Hour

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Arcadia Association of REALTORS®601 South First AvenueArcadia, California 91006

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(626) 869-878733 East Huntington Drive • Arcadia, CA 91006

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Visit www.TheAAR.com for more details and to register.

“45-Hour Continuing Education Review & Exams”

Tuesday, April 29, 2014Registration Deadline April 25, 2014

9:00 a.m. to 12:00 p.m.Check-In: 8:30 a.m.

AAR Building

Cost: REALTOR® Members: $80

CalBRE Course Sponsor #2473, 45 Hour CalBRE Credit