February 29th, 2008   Vol. 7 No. 9
NKAR NEWS

NKAR REALTOR® STORE
Book choice of the Month
Kiss, Bow or Shake Hands *****
Can you conduct real estate business properly with people from different countries?
Think about it. Would you know what to do and be prepared for the cultural difference
before you got to the appointment? Would you have the proper negotiating strategies?
Would you know the proper protocol? Do you bow, stand close, shake hands or speak
quietly while making introductions? What you do with the left hand as well as the right
can offend as soon as you meet your potential client. As a real estate professional you can be educated in dealing with the increased significance different countries are taking on in the business landscape.

Come in today and pick up this valuable business tool.
Janice J. Britt-Ballard
Northern Kentucky Association of REALTORS®
Accounting Assistant/REALTOR® Store Manager
859-344-8400
Fax: 859-578-3772
E-mail: jballard@nkar.com 
 

Finally — IRS Guidance on Exchanging Vacation Homes Revenue Procedure 2008-16 Provides Safe Harbor
Until now, the issue of whether a vacation home qualifies for tax deferral treatment under IRC §1031 was the subject of much scrutiny and uncertainty. To the delight of many tax practitioners, on February 15, 2008, the IRS eliminated that uncertainty by issuing Revenue Procedure ("Rev. Proc.") 2008-16, effective March 10, 2008, which provides a safe harbor for exchanges of vacation homes (defined as "dwelling unit" in the Rev. Proc.). Now taxpayers can have a clear understanding of the circumstances under which the IRS will not challenge whether a vacation home will qualify as property "held for investment" under §1031.
Vacation Home as Relinquished Property
For a vacation home to qualify as relinquished property, it must meet the following criteria:
• It is owned by the taxpayer for at least 24 months immediately before the exchange ("qualifying use period"); and
• Within the qualifying use period, in each of the two 12 month periods, (1) the taxpayer rents the dwelling unit at fair rental to another person for 14 days or more and (2) the taxpayer’s personal use of the dwelling unit does not exceed the greater of 14 days or 10 percent of the number of days during the 12 month period that the dwelling unit was rented at fair rental value.
The first 12 month period immediately preceding the exchange ends on the day before the exchange takes place (and begins 12 months prior to that day). The second 12 month period ends on the day before the first 12 month period begins (and begins 12 months prior to that day).
Vacation Home as Replacement Property
For a vacation home to qualify as replacement property, it must meet the following criteria:
• It is owned by the taxpayer for at least 24 months immediately following the exchange ("qualifying use period"); and
• Within the qualifying use period, in each of the two 12 month periods, (1) the taxpayer rents the dwelling unit to another person at fair rental for 14 days or more and (2) the taxpayer’s personal use of the dwelling unit does not exceed the greater of 14 days or 10 percent of the number of days during the 12 month period that the dwelling unit was rented at fair rental.
The 12 month period immediately after the exchange begins on the day after the exchange takes place and the second 12 month period begins on the day after the first 12 month period ends.
Personal use is defined broadly. Use by the taxpayer or other person having an interest in the dwelling unit and any family member [Brothers and sisters (by the whole or half blood), spouses, ancestors, and lineal descendants.] will be considered "personal use" by the taxpayer. Also, any arrangement whereby fair market rent is not paid will be considered "personal use" by the taxpayer. Notwithstanding the foregoing, use by family members will not be considered "personal use" by the taxpayer only if the dwelling unit is rented at fair market rent and the family member uses it as his principal residence.
Fair rental is based upon all of the facts and circumstances that exist when the rental agreement is entered into. All rights and obligations of the rental agreement are taken into account.
Note special rule for replacement property. If the taxpayer files a return reporting a transaction under §1031 based on the expectation that the dwelling unit will meet the qualifying use standards and subsequently determines that the dwelling unit does not meet the qualifying use standards, the taxpayer, if necessary, should file an amended return.
Exchanges of vacation homes outside the Rev. Proc. 2008-16 safe harbor. An exchange of a vacation home may still qualify under §1031 even though it falls outside the parameters of Rev. Proc. 2008-16. Any such circumstance will be subject to greater scrutiny and therefore should be carefully planned and reviewed by the taxpayer’s tax advisor.

Jump Start Your Business for 2008
SPRING IS FAST APPROACHING – DON’T WAIT TO GET YOUR BUSINESS MOVING!
It’s what you do now that will set the pace for 2008, so hit the ground running with NKAR Real Estate Magazine! If you want to have your best year ever you’ll need to advertise, and you’ll want to advertise where you’ll receive the best return for your investment – and remember, you now own your own magazine! With your NKAR magazine, you can advertise your listing at cost – which is only $15! This will make both you and your seller happy and will also generate highly qualified calls from interested buyers! You may also want to order an Agent Image Ad for personal branding, which is placed within the dynamic listing directory which is where Northern Kentucky’s most qualified homebuyers will be looking for homes that meet their personal search criteria! To contact your NKAR magazine representative for details – the deadline for the premiere issue is Friday March 7

send all emails to Magazine@nkar.com 

Lender Owned Properties and Short Sales:
As you know these types of sales are very difficult and can be very confusing for all parties. We are in the process of setting up a focus group to address the concerns related to these transactions. We will also be addressing how this subject impacts input of these properties into the MLS. If you are interested in serving on this focus group, contact Terri Raney at 859-344-8400 or traney@nkar.com
 

Welcome to walk MS: Western & Southern Northern Kentucky Walk 2008!

Saturday, April 19, 2008
Dixie Heights High School
3010 Dixie Highway, Edgewood, KY 41017
Walker Check-in: 11 a.m., Walk Kickoff: 12 p.m.
Register: http://ohg.nationalmssociety.org
Directions: Dixie Heights High School
Parking: Parking is available at Dixie Heights High School.
Rest Stops: Information coming soon.
Pledge deadline date to be eligible for prizes: June 3

Walk MS: Northern Kentucky is a 5-mile walk, which winds through the beautiful neighborhoods surrounding Dixie Heights High School in Edgewood, Kentucky. While food and drinks are provided, we encourage you to bring a bottle of water and a small snack with you the day of the walk.
Last year, we celebrated with more than 700 registered walkers and countless volunteers. Join us this year as we move together to create a world free of multiple sclerosis and raise more than $60,500.
Recruit friends, family and coworkers to join you for Walk MS! All it takes is four walkers, and you’ve got a team. It’s easy and always more fun to walk with a buddy. Visit our Walk MS Teams page for information on how you can join a team or start a team for your local walk.
Walk MS would not happen without support from dedicated leadership volunteers in the community. We mobilize the talents and resources of the millions of people who want to do something about MS now. Would you like to join the planning committee? If so, please email walk@ohg.nmss.org 
It takes hundreds of volunteers to make the day of an event run smoothly. From walker check-in and food serving to set-up and clean up, we are always in need of volunteers. Find a volunteer position that matches your skills and interests and read additional information on becoming a Walk MS Volunteer
 

NAR NEWS

LEGISLATIVE CAUCUS TO MEET MARCH 1, 2008
On March 1, 2008 the Northern Kentucky Legislative Caucus will hold a public meeting at the Erlanger City Building at 505 Commonwealth Avenue, Erlanger, KY. The purpose of the Caucus meeting is to provide a forum for constituents to offer input on issues during the 2008 Legislative Session of the General Assembly. The meeting will be held from 10:00 a.m. until noon. All persons attending and signing-in prior to start of the meeting will have a chance to be heard on a first-come, first-served basis. The maximum of time allotted for each person will depend on the number signed-in.
For more information call: Senator Thayer, Chair of the Northern Kentucky Caucus (859) 621-6956 or Robert Schrage, NKADD (859) 283-1885.
To request special accommodations for accessing these meetings; please contact Robert Schrage, NKADD, (859) 283-1885.

THANK YOU, THANK YOU, THANK YOU!!!!!!!

To all REALTOR® members who went to Frankfort last week and voiced their support for Modernization of Occupational Tax Collection!! YOU STOOD UP AND YOU MADE A DIFFERENCE!! And special thanks to COUNTRYWIDE HOME LOANS and NIELSON & SHERRY who sponsored the bus that carried us to Frankfort!!! TEAMWORK IS THE NAME OF THE GAME!! We had the privilege of attending an informational hearing on Occupational License which you may watch by clicking on the link below…
Here is a link to Ket.org that will play the testimony given before the Senate State and Local Government Committee on Wednesday February 20, 2008. This is the whole committee meeting and our issue is not until over half way through the hearing. You can fast forward this to the start of the comments by KAR President Robert Dameron.
http://www.ket.org/cgi-bin/cheetah/watch_video.pl?nola=WGAOS+009148

GOVERNMENT AFFAIRS/LEGISLATIVE & REGULATORY ISSUES
The Washington Report - A Weekly Report on Legislative and Regulatory Issues
House Passes GSE and FHA Loan Limit Increases, Senate to Consider This Week
Economic Stimulus Legislation Dominates Agenda
Commemorate the 40th Anniversary of Fair Housing
NAR Comments on EPA's Wetlands Guidance Document
Read more...HERE

 

MLS ISSUES

Important Reminder –Submitting Listings to the MLS
As a reminder to all agents, listings of MLS Participants and subscribers must be entered and submitted to NKMLS within the 3 business day period as required by the Rules and Regulations of the Service. Exempt from MLS listing contracts (those where the seller does not authorize the broker to place the property on the MLS) are required to be faxed or mailed to the MLS which we hold in an exempt listing file until the listing expires. Regarding signs, please be aware that when agents put their sign in the yard of their new listing, other agents immediately begin looking for the listing on the MLS so please don’t delay entering your new listing on MLS.


FREE!!! Instanet Forms Training Webinar- Coming Soon
Coming Soon- A webinar/Internet demonstration of Instanet Forms, the on-line transaction platform, which is accessible from your MLS Home Page. This great service is included with your MLS subscription. Many agents have expressed interest in using the forms but aren’t quite sure how to navigate through the system. We expect to have upcoming Webinar sessions posted soon on the NKAR and MLS web sites. We encourage all members to watch for them and register to participate.


EDUCATION

GRI 1: Professionalism in Real Estate
March 17-18, 2008
Monday & Tuesday
8:00 am to 5:00 pm both days
Instructor: Virginia Lawson

Northern Kentucky Association of REALTORS®
184 Barnwood Drive
Edgewood, Kentucky 41017
(859) 344-8400
Using the REALTOR®, Code of Ethics and Standards of Practice, this 2-day course examines responsibilities to client and customers, to the public, and to fellow real estate professionals. The course covers federal and state laws relating to agency, property condition disclosure, anti-trust, fair housing, lead-base paint disclosure, errors and omissions insurance and other risk-reduction issues.
This 2-day course is applicable for 16 hours of GRI credit, 16 hours of broker license credit, 6 hours of KY continuing education credit (3 law/3 elective)
16 hours of elective OH continuing education credit and fulfills NAR mandated ethics requirement.
GRI Tuition:
KAR Members - $170 by March 3, 2008 - $185 after March 3, 2008
At Door - $205
GRI Graduates audit fee - $80 but subject to space availability
Special Refund Policy: Refunds made with 48-hour cancellation notice
(minus $35 fee)
• Tuition cannot be transferred to a future GRI session
• Phone reservations not accepted
• Seating is limited
• No confirmations will be mailed
• Mail and/or fax registration form and payment to:
Register online at http://ims.nkmls.com 
Northern Kentucky Association of REALTORS®
184 Barnwood Drive
Edgewood, Kentucky 41017
Fax: 859-578-3776
Any questions or for registration form call Judy at 859-344-8400 or jball@nkar.com 

 

20/20 Financing for Real Estate
In today’s real estate market, it is more important than ever to understand every facet of purchasing a home. One of the most important aspects of buying a home, and perhaps the least understood, is that of financing. By taking the 20/20 Financing for Real Estate course, you will gain the knowledge to lead your clients toward financing best suited to their needs.
This course was developed with you, the REALTOR®, in mind. It was written to increase your business. The days of simply showing a home and signing the contract are past. Today’s consumers are better informed and somewhat wary of “salespeople”. This course will allow you to be a step above your competitors.
This is a brief outline of what you will learn in this 16-hour course:
• Why we need to know about financing
• Profile of a predator
• The function of the Lender
• Roles of Appraisers and Underwriters
• Qualifying buyers – it’s not just the money!
• Multicultural buyers (a growing niche in the real estate market)
• Understanding credit scores
• Calculating Good Faith Estimates
• Mastering the Financial Calculator (includes payments, amortization, balloons and more)
• Traditional financing (FHA, VA, Conventional)
• Non-traditional financing (buy downs, installment sales, etc.)
And much more!
Practical, real life workshops will be conducted throughout this 2-day course.
Each student will be expected to have a financial calculator and must pass a 50 question, final exam to obtain a certificate of completion.
Sponsored by:
The Northern Kentucky Association of REALTORS
184 Barnwood Drive
Edgewood, Kentucky 41017
(859) 344-8400
Date and time:
April 23-24, 2008
8:00am – 5:00pm
 

CRS 201 – Listing Strategies
Sponsored by the Northern Kentucky Association of REALTORS®
184 Barnwood Drive
Edgewood, Kentucky 41017
859-344-8400
Thursday & Friday, April 3 & 4, 2008 from 8:30 a.m. to 5:00 p.m.
Pending Kentucky CE credit
Pending Ohio CE elective credit
Investment: $295
The quality of an individual’s listing skills can give him or her a strong competitive edge. Only those professionals who learn proven listing strategies will win over the client and increase their conversion rate. Listing Strategies provides students with the import skills necessary to conduct successful listing presentations, price a home to sell, close the transaction and market and promote effectively. The course takes students through an actual listing presentation that helps them understand the key steps in this process and create a system for success.
Course Content:
* Conducting an effective listing presentation
* Seller guidance and counseling
* Pricing a home to sell
* Closing techniques
* Marketing plans and servicing systems
* Sellers’ needs and motivations
NOTE: NKAR reserves the right to cancel classes due to lack of registration to cover the class cost.