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KentuckyREALTOR®W I N T E R 2 0 0 8A publication of the Kentucky Association of REALTORS®DIGITAL PHOTOGRAPHYA G U I D E T O T H E B A S I C SBlogging TipsTax Law ChangesOnline CE

Volume 2, Number 2, Winter 2008ContentsA publication of theKentucky Association of REALTORS®PresidentRobert A. DamronEastern Kentucky Association of REALTORS®President-ElectJeffrey L. SmithNorthern Kentucky Association of REALTORS®TreasurerJohn W. Smither, GRILexington-Bluegrass Association of REALTORS®Treasurer-ElectSantosh S. Bhatt, ABR, CRSGreater Louisville Association of REALTORS®Executive Vice PresidentSusan W. Helm, RCEsusiehelm@kar.comMarketing/Communications DirectorHunt Cooperhcooper@kar.comAddress letters and inquiries to:Kentucky REALTOR®161 Prosperous PlaceLexington, KY 40509TF 800.264.2185T 859.263.7377F 859.263.7565www.kar.comemail: hcooper@kar.comKAR members should always send addresschanges to their local board/association first.Subscription rates: $10 per year (includedin dues) for members, $25 per year fornonmembers.Kentucky REALTOR® (USPS 024-933) is publishedquarterly (Fall, Winter, Spring, Summer) by theKentucky Association of REALTORS®, 161Prosperous Place, Lexington, KY 40509.Periodicals postage paid at Lexington, KY.POSTMASTER: Send address changes toKentucky REALTOR®, 161 Prosperous Place,Lexington, KY 40509.All articles represent the opinions of the authorsand do not necessarily represent the opinions ofKentucky REALTOR® or KAR and should not beconstrued as a recommendation for any courseof action regarding financial, legal or accountingmatters by KAR or Kentucky REALTOR® and itsauthors.IN THIS ISSUEDigital Photography 10Tax Law Changes 14Online CE 19Blogging Tips 20REGULAR FEATURESPresident’s Message 5Tools You Can Use 6Legal Update 8Government Affairs 16KREC Information 18Local Association News 22Housing Stats 25Community Profile 26From the Helm 28Code of Ethics 29A Day in the Life of... 30Reproduction prohibited without permission.Copyright © 2008Kentucky Association of REALTORS®, Inc.All rights reserved.WINTER 2008 KENTUCKY REALTOR ® 3

KAR News2009 KAR Election ResultsPresident-Elect John Smither (Lexington)Treasurer-Elect Kevin Farris (Elizabethtown)Region 2 Director Steve Cline (Bowling Green)Region 4 Director Ann McDonald (Lexington)Region 6 Director Norman Jones (Pikeville)At-Large Director Carl Adams (Paducah)At-Large Director Linda Sparrow (Danville)At-Large Director Janie Wilson (Fort Mitchell)Jeff Smith (Fort Mitchell) will serve as the 2009 President.Existing members serving on the Board of Directors will beImmediate Past President Robert Damron (Pikeville),Treasurer Santosh Bhatt (Louisville), Region 1 DirectorLarry Gillette (Hopkinsville), Region 3 Director PatriciaEdison (Louisville) and Region 5 Director Jennifer Harris(Florence).The six remaining At-Large Directors for the state includeCharles Ballard (Louisville), Paul Fox (Cold Spring), GaleFulton (Lexington), Ron Hughes (Paducah), AshleyTrautner (Frankfort) and Nelson Weaver (Somerset).2008 KAR AwardsREALTOR® of the Year - John J. Weikel II(Greater Louisville AOR)Distinguished Service Award - David P. Schoepf(Northern Kentucky AOR)Nat Sanders Educator of the Year - Woodrow Wilson(Lexington-Bluegrass AOR)Community Service AwardsLarge category - Greater Louisville Associationof REALTORS®Medium category - Madison County Board of REALTORS®Small category - Kentucky-Barkley Lakes Board ofREALTORS®Paul Kendall Membership AwardsFirst Place - Murray-Calloway County Board of REALTORS®Second Place - Old Kentucky Home Board of REALTORS®Third Place - Hopkinsville-Christian County Board ofREALTORS®Ammerman Attendance Award - Northern KentuckyAssociation of REALTORS®Barbara Flannery (London), Donnie Sims (BowlingGreen) and Alvena Stanfield (Florence) were elected toserve as At-Large Delegates on the leadership team in 2009.Joe Simms (Louisville) was elected to serve as a Director ofthe National Association of REALTORS®.Jeff Smith,Fort Mitchell2009 KARPresidentJohn Weikel2008 REALTOR®of the Year.David Schoepf2008 DistinguishedService Award.KAR Bylaws AmendmentsThis serves as official notice of proposed Bylaws amendments to be voted on by the general membership of the Kentucky Association ofREALTORS® at the membership meeting to be held in Frankfort, KY on February 12, 2009 immediately following the Delegate Body meeting(see www.kar.com for meeting details). The following are the substantive changes to the Bylaws for the general membership’s consideration:(Strikethrough text indicates text to be deleted. Underline indicates text to be added)ARTICLE V: Delegate Body, Section 2Insert the following text in reserved item (G):(G) Any REALTOR or REALTOR-ASSOCIATE member in good standing shall be eligible to serve on the Delegate Body.Article VI: Board of Directors, Section 8Add text to existing Section 8 which describes removal of a director by the remaining Directors on the basis of two (2) consecutive unexcusedabsences.The Delegate Body may remove any Director with 2/3 majority vote. A copy of the proposed motion to remove a Director shall be includedwith the notice convening the Delegate Body meeting. The Director’s position shall be vacated if a quorum of the Delegate Body is present atthe noticed meeting and a 2/3 majority of the Delegates present approve the motion to vacate.ARTICLE VI: Board of Directors, Section 1 (C) (2)Delete item (2) text as indicated below and replace with the following text:(2) Three At-Large Directors shall be elected each year by all registered attendees of the Annual Convention in accordance with Article V,Section 1(A). The term of office for At-Large Directors is three (3) years.(2) Three (3) At-Large Directors shall be elected by the membership during each convention, held in conjunction with the regular annualmembership meeting, to serve terms of three (3) years each, such that there shall be nine (9) At-Large Directors serving at all times.4 www.kar.com

President’s MessageInvest in YOUR FutureFellow Members,Iwould first like to thank Robert Damron for hisAssociation leadership in 2008 and for the onthe-jobtraining he has given me over the pastseveral months.As we enter one of the most economicallytrying times in the history of the industry and forthe Kentucky Association of REALTORS ® , now isa great time to invest in YOUR future. Take a GRI,CRS, CCIM course or any elected course you mayenjoy. Earn a designation and further youreducation. A deep understanding of the industrywill pay off more than you can imagine.KAR will continue to take a hit in membershipthis year and we will tighten our belts once again. Itmay come to a point that we are forced to dip intoreserves in 2009. Many of you have heard me saythere are only two reasons you should have reservesof member dues in an Association: Reason #1 – topay unexpected expenses (this year was for theKAR building) and Reason #2 – to continue toprovide a high level of services to our members indown times.Your leadership team recently attended theNational Association of REALTORS ® AnnualConference and Expo in Orlando. It was during asession of this 100 th anniversary celebration whereNAR’s 2009 President, Charles McMillan, wasquoted as saying:“REALTORS ® must build a bridge to thefuture, over the chasm of today’s marketchallenges, so that tomorrow’s real estateindustry will be empowered to move forwardinto its second century.”As we move forward into the next hundredyears, my hope is that every member of KARlistens to these words and takes action to elevatethemselves and this industry to a higher level.Through hard work, anything is possible.UPCOMING EVENTSKAR Legislative & Business MeetingCapital Plaza HotelFrankfort, KYFebruary 10 – 12NAR Midyear MeetingWashington, DCMay 11 – 16KAR Summer Business MeetingLake BarkleyCadiz, KYJune 16 – 18Jeff Smith, 2009 KAR PresidentI am blessed and honored to be your presidentin this 87th year of our Association. I encourage allof you to become involved in your Association –attend meetings, join a committee, take CE courses,run for an office – whatever you choose, make adifference.Join KAR this February as we head toFrankfort to continue our support of the politicalprocess and we fight to protect property rights forall property owners here in the Commonwealth.Jeff Smith2009 KAR PresidentVisit www.kar.com for meeting information.KAR Annual Convention & ExpoGalt HouseLouisville, KYSeptember 29 – October 1NAR Conference & ExpoSan Diego, CANovember 11 – 16KAR Leadership ConferenceDates and times TBDWINTER 2008 KENTUCKY REALTOR ® 5

Tools You Can UseMarketing MinuteTry Cozi, a free web service that helps familiesmanage crazy schedules, track shopping and to-do lists,organize household chores, stay in communication andshare memories all in one place. Every family is different,but they all have one thing in common: they’re crazybusyand Cozi was designed to make it easier to manageeverything that has to be done.Creative Way to Market Yourself and YourListingsMOO is a printing company that createsunique specialty products with customphotography. The most unique (and first product)called MiniCards are about half the size of a normalbusiness card and come complete with your ownphotos, designs and text. They come in boxes of100 with the option of having a different image onevery one. Each card also comes with the option ofproviding text on the reverse side. Great formarketing each of your listings, personal blog orsocial network as well as your personal brand.The company also produces normal businesscards, sticker books, postcards, note cards, holidaycards and other items that can be customized foryou and your business.Signing up is free and easy! After creating your account,you will first need to customize your features. You’ll setup a household name, and add contacts. That’s it. You’reready to start organizing!The actions you can take are: type an appointment in thecalendar, add items to your shopping list and jot downan entry in your family journal. It also has mobile andOutlook syncing to keep everyone on the same page.The only downside (if you want to call it that) is that youwill see advertisements or other information that pertainto family needs. Some are beneficial such as links torecipes or dinner suggestions; others are simply bannerads for products and services.With families becoming more and more technological(and hectic) these days, this Web site provides a greatway to keep your family organized. Give it a try!6 www.kar.comConsolidate Your PersonaRetaggr allows you to create a virtual businesscard that you can put almost anywhere on the web,and share all of your web activity, in one organizedlocation. Your profile card contains anyinformation you wish to share because it’s allcustomizable.It acts as your portable interactive Web 2.0profile by consolidating your online presence, i.e.social networking profiles such as Facebook,LinkedIn and Myspace, into an interactive onlinesocial and business card. It allows you to displaycontent like recent tweets from Twitter, blog postsand photos right in your card. In fact, any widgetyou can find on the web can be incorporated intoyour retaggr profile.Your retaggr profile can be used as your emailsignature which allows your clients, friends andfamily to know more about the things going onwith you.

Use Your CameraPhone as YourDigitalPhotographicMemoryAlmost everycell phone modelnow includes a built-incamera, and they’re goodfor more than just snappingpics of your friends out at thelocal watering hole having agood time.Use your phone’s camera andmemory card to capture:• the spot where you parked• the label on a bottle of wine yourspouse loved• the price on a new gadget to look up online• an amazing meal you’d like to try to cookat home.Another quick tip for cell phones – most arealso equipped with a voice recorder. Use thisfeature much the same way – to leave personal notesand reminders when you’re in a hurry so you won’tforget to add them to your to-do list later.Distributing Video Made EasyReal estate property videos are becomingincreasingly common in the marketplace. Thetrouble is the time it takes to upload a video tomultiple sites (let alone one). TubeMogul, an onlinevideo distributor that also provides analytics, takescare of the hassle for you. It serves those who needindependent information about video performanceon the Internet and automated upload to the Web’stop video sharing sites including YouTube, GoogleVideo, MySpace, AOL, Yahoo!, MetaCafe, Revverand many more.TubeMogul’s analytic technology aggregatesvideo-viewing data from multiple sources to givepublishers improved understanding of when, whereand how often videos are watched, track andcompare what’s hot and what’s not, measure theimpact of marketing campaigns, gather competitiveintelligence, and share the data with colleagues orfriends.Bits and BytesLaptops tend to lose their charm quickly whenyou’re constantly looking for the nearest power outlet tocharge up. How do you keep your battery going for aslong as possible?Here are easy ways to stay charged:Defrag regularly - The faster your hard drive does itswork - less demand you are going to put on the harddrive and your battery. Make your hard drive as efficientas possible by defragging it regularly. (but not while it’son battery of course!)Dim your screen - Most laptops come with the ability todim your laptop screen. Some even come with ways tomodify CPU and cooling performance.Cut down on programs running in the background -All these add to the CPU load and cut down battery life.Cut down external devices - USB devices (includingyour mouse) & WiFi drain down your laptop battery.Remove or shut them down when not in use.Run off a hard drive rather than CD/DVD - As powerconsuming as hard drives are, CD and DVD drives areworse. Even having one in the drive can be powerconsuming.Keep the battery contacts clean - Clean your battery’smetal contacts every couple of months with a clothmoistened with rubbing alcohol. While you’re at it, donot leave a charged battery dormant for long periods oftime. Once charged, you should at least use the batteryat least once every two to three weeks. Also, do not let aLi-Ion battery completely discharge.Hibernate not standby - Although placing a laptop instandby mode saves some power and you can instantlyresume where you left off, it doesn’t save as much poweras the hibernate function does.Keep operating temperature down - Your laptopoperates more efficiently when it’s cooler. Clean outyour air vents with a cloth or keyboard cleaner.Don’t multitask - Do one thing at a time when you’re onbattery. Rather than working on a spreadsheet, lettingyour email client run in the background and listening toyour latest set of MP3’s, set your mind to one thing only.Go easy on the PC demands - Passive activities likeemail and word processing consume much less powerthan gaming or playing a DVD.Tips excerpted from the Friedbeef’s Tech blogWINTER 2008 KENTUCKY REALTOR ® 7

Legal UpdateThe ABC’s of Kentucky Business EntitiesDoug Martin is Legal Counsel for the KentuckyAssociation of REALTORS® and is a member ofMurphy & Martin, PLC in Lexington, KY.R EALTORS® are constantly faced with a widerange of Kentucky business entities:• sole proprietorships• joint ventures• general partnerships• limited liability partnerships• limited partnerships• limited liability limited partnerships• corporations• nonprofit corporations• limited liability companies• nonprofit limited liability companiesREALTORS ® are frequently the first ones onthe scene to spot trouble, and having a goodworking knowledge of common business entitiescan sometimes make the difference in a successfulclosing.One of the main ways one entity is differentfrom another is whether owners have “limitedliability” – if business owners can avoid personalliability for the obligations of their business. Otherimportant differences are whether the business has aboard of directors or officers, whether the businesshas owners with limited rights, and whether thebusiness must register with the Secretary of State.Sole ProprietorshipsSole proprietorships are the most common formof doing business – one person sells a product orprovides a service to another. A sole proprietor is aperson that works for himself or herself (i.e., alawyer, accountant, doctor, freelance photographer,carpenter, roofer), and who has not otherwiseregistered with the Secretary of State.In a sole proprietorship, no legal entity needs to becreated and no assets are required to be contributedto form a separate company. The business itself isnot registered, although sole proprietors usingbusiness names must file a “certificate of assumedname” with the Secretary of State. Because soleproprietors are simply individuals operating abusiness, contracts involving sole proprietors shouldusually be written in name of the individual, and notin the “assumed name” used for the business.Joint VenturesA “joint venture” is a common enterpriseundertaken for mutual benefit and for a particulartransaction. A joint venture is not a type of businessorganization, but a common enterprise for a limitedpurpose.Joint ventures can take on various businessforms. For example, a nonprofit hospital and aphysician partnership might organize a new LLC toown a medical office building. In this situation, thejoint venture will operate as a limited liabilitycompany, even though one party is a nonprofitcorporation and the other is a general partnership.General PartnershipsGeneral partnerships are essentially soleproprietorships with more than one owner. Ageneral partnership is not required to register withthe state unless it uses an assumed name.Partnerships are defined mainly by the agencyrelationship that exists among its partners:Each partner is an agent of the partnership forthe purpose of its business. An act of a partner...for apparently carrying on in the ordinary coursethe partnership business . . . binds the8 www.kar.com

partnership, unless [1] the partner had noauthority to act for the partnership in theparticular matter and [2] the person with whomthe partner was dealing had notice that thepartner lacked authority.Real estate transactions with generalpartnerships are tricky. If the general partnership hasfiled a “statement of partnership authority” with theSecretary of State, then the general partnership mayhold title to real property in the partnership namelisted in the “statement of partnership authority.” Ifno such statement has been filed (and the partnershipis not otherwise a limited liability partnership), thenthe general partnership can only hold title to realproperty in the partnership name that includes thenames of each of the partners. Such a name might be– “John Doe and Ted E. Bear, a general partnership,doing business as Kentucky XYZ.” The safe rule indealing with general partnerships – as with mostclosely held companies – is to make everyone signthe purchase contract. The closing attorney isresponsible for addressing other legal issues.A “limited liability partnership” is a generalpartnership in which the partners have filed a“statement of qualification” with the Secretary ofState. This provides the partners with partial limitedliability while keeping the flexible business structureof a general partnership.In almost every other way,limited liability partnerships function the same asgeneral partnerships.Limited PartnershipsLimited partnerships are partnerships formed bytwo or more persons with two separate classes ofpartners – general partners and limited partners.General partners have all the rights, duties andobligations of partners in a general partnership. Thelimited partners, however, are not allowed toparticipate in control or management, may notcontribute services, and generally have liability onlyto the extent of their contribution.A limited partnership can own real estate in thename stated in its certificate of limited partnershipfiled with the Secretary of State. This makes limitedpartnerships easier to work with than generalpartnerships. While limited partners are not allowedto sign legal documents, it is prudent to require thatall of the general partners sign the purchase contract.A “limited liability limited partnership” is simply alimited partnership whose certificate of limitedpartnership states that the limited partnership is alimited liability limited partnership. This gives thegeneral partners some degree of limited liabilityprotection which they do not have as simple limitedpartnerships.Profit & Nonprofit CorporationsA corporation is a business organization in whichthe business is a separate and distinct entity from itsowners. Corporations have rigid, formalistic structuresthat must be observed to preserve shareholder limitedliability status. Corporations are managed by theirdirectors and officers, who do not have to beshareholders, and directors are selected by theshareholders.Nonprofit corporations operate like “for profit”corporations, except that the business conducted bynonprofit corporations is restricted to its tax exemptpurposes, such as a charitable or educationalorganization or a business league.Limited Liability CompaniesLimited liability companies are the Swiss armyknives of Kentucky business forms, and most closelyheld companies are now organized as LLCs. Membersof LLCs have limited liability from general businessobligations. LLCs are very flexible, and can beorganized to mimic virtually any other type of businessentity. For example, an LLC can be set up with a boardof directors and officers like a corporation, or votingand nonvoting members like a limited partnership.LLCs come in two main varieties – “membermanaged” and “manager managed.” A membermanaged LLC operates like a partnership, where allowners vote in proportion to their ownership. Amanager managed LLC operates like a limitedpartnership, where the managers exercise most of thecontrol and members generally do not vote. In 2007,Kentucky revised its LLC statute to allow nonprofitLLCs, which operate like normal LLCs but with anonprofit purpose similar to nonprofit corporations.Again, the safe rule for dealing with LLCs – geteveryone to sign the purchase contract.The previous discussion should not be viewed as legaladvice. Please consult your attorney.WINTER 2008 KENTUCKY REALTOR ® 9

Feature StoryDigital Photography:A Guide to the Basicsby Hunt Cooper, KAR Marketing/Communications DirectorA few good pictures can lead to a quicker sale. Here are the basics you needto know about camera choices, options and accessories.Afew years ago, a digital camera was viewed bysome in the industry as a competitive edge.Nowadays, the digital camera is one of the mostcommon tools a real estate agent possesses. It is alsoprobably an afterthought for many and when asked,most agents probably respond with a quick, “Yeah,I have a couple of ‘em.”For any given listing, you probably take severalphotos of each property, without much thought andthen print them, e-mail them to clients and the localMLS, upload them to your Web page and the listgoes on. Now that you are thinking about all theways you use pictures in your business, youunderstand the importance of equipping yourselfwith a digital camera that’s suited to meet thevarious demands of real estate. And with today’scompetitive environment and the expansiveinventory of homes on the market, goodphotography can help your listing stand out fromthe crowd.Digital cameras are being sold just abouteverywhere, from the big box superstores found inmost towns across America to the many onlineretailers popping up on the web every day. And thecameras themselves have more features than any onehuman could ever use in a lifetime, ranging in pricesfrom under $100 to several thousand depending onthe brand you choose and the level of quality youwant to purchase. As technology continues to getbetter, even the smaller and more reasonably pricedcameras come with more megapixels, larger LCDscreens, video options and enhanced zoom features.With all the decisions to be made, what features doyou have to have and which ones can be a tradeoff?Size Does Matter When it Comes to MegapixelsWhen digital cameras first made their debuts,one of the easiest and quickest ways to determine“quality” was in the number of megapixels (MP) itincluded. Megapixels are the number of dots (a.k.a.pixels) a camera can capture per image and arereferred to as either dots per inch (DPI) or pixelsper inch (PPI). What this means in basic terms isthe higher the megapixel, the better the picturequality. Most cameras developed, whether they arelow or high end, usually come with at least 4 ormore megapixels, which is more than enough formost real estate related functions.Even as important as megapixels are, camerastoday see overall picture quality affected by othertechnological advances, so it pays to take intoconsideration other factors before plunking down asmall fortune for too many extras. If you are unsureof what you need in a camera, make a list ofrequirements and talk to a qualified professional.10 www.kar.com

Many people think just by looking at the samemegapixel camera in two or three models with costbeing the only difference, the cheaper product is theway to go, using the rationale, “I’m getting morefor less, right?” This isn’t always the best optionbecause there are so many other factors to consider.One being the ever allusive and consumer confusingzoom feature.All Cameras Zoom, Don’t They?Many people don’t realize that most digitalcameras come with not just one, but two types ofzooms – optical and digital. And when it comes toselecting a digital camera, optical zoom is the onlyone that matters. Why, you ask? Let’s examine, insimple terms, what each type of zoom really is.Optical zoom uses the optics (lens) of thecamera to bring the subject closer, therebyresolution is not lost when scaling in towards thesubject matter. This zoom is the truest form as it issimilar to what you find in regular 35mm cameras:When you push the button to zoom in or out,physical lens elements move inside the camera, toachieve the desired effect.Digital zoom, in a sense, is not really zoom atall in that this “zoom” crops a portion of the imageand then enlarges it back to size, to what thecamera thinks it should look like. You lose qualitywhen you do this - your images will tend to bemore pixelated than the same image taken with theoptical zoom feature. Most digital zoom outcomescan be made using the same features found on mostphoto editing software.And remember, since real estate photographytakes place in a variety of spaces such as thecramped quarters of a spare bedroom or bathroom,a long, narrow hallway, highlighting a specifichome feature or the ever popular outside, full houseview, a camera with an outstanding zoom is a musthaveto get top quality shots to impress buyers.Memory MakersIt’s not uncommon for digital cameras to comewith a small amount of internal memory, enough tostore a handful of photos but notenough to store an entirelisting’s worth. Therefore, acompanion purchase to thecamera itself should be a memory card withadequate capacity. Cameras today can come withone of several options including SD cards, compactflash (CD) cards or a Memory Stick depending onthe model you choose.The more memory on the card, the morephotos it can hold. For real estate professionals whotake a fair share of pictures, the general rule shouldbe the more memory, the better. Memory cards,given recent improvements, can hold up to orexceeding 32GB (or as little as 16MB). You shouldalways buy the largest card you can afford so youhave a seemingly endless supply of space. Typically,with a 5MP camera on the normal setting, plan onbeing able to take half as many pictures as thecapacity of the memory card. For example, a512MB camera should hold about 250 or sopictures.When It Comes to Cameras, Is Bigger AlwaysBetter?The best way to answer this question is to firstunderstand exactly what you are going to use thecamera for. Are you using it primarily for picturesto use on websites and in your advertisements orare you snapping photos to market high-end homesin a upscale boutique magazine? The difference canhelp make your decision easier. Digital camerascome in so many sizes it could take years toinvestigate them all.The biggest difference comes in whether youwant a compact camera with limited moving parts, alarger single lens reflex (SLR) model that usesinterchangeable lenses and flash assemblies or(Continued on page 12)WINTER 2008 KENTUCKY REALTOR ® 11

Feature Storysomething in between. The newer, more moderncompact cameras are smallenough to carry in yourpocket, briefcase or purse andprovide ample amount of powerto get the job done. The higherend cameras have more featuresthan even the most sophisticatedprofessional could imagine, but aregreat choices when you need top ofthe line images taken at variousdistances and angles and don’t mindthe bulkier size. For most real estateprofessionals, a nice compactcamera will suffice. Just make surethe camera you choose has enoughmegapixels and sufficient zoom tomake your pictures shine.What Are You Looking At?Everyone can remember the good old days whenyou had to hold the camera up to one eye and closethe other to see what in the heck you were shooting.That was before digital cameras and the greatinvention of the LCD screen. The LCD is thewindow on the back of the camera that allows theuser to see camera features as well as displays thepictures stored on the camera.To increase viewability and save your eyesight,look for a camera with a large LCD screen. Having alarge LCD helps in many ways, especially whentaking real estate shots. The increased size of thescreen allows you to review shots immediately soyou know exactly what image was captured andretake the picture if it isn’t what you expected. Italso allows you to use the camera, if needed, as apresentation vehicle for clients to see pictures of aparticular property.Play It ForwardAnother great feature with many of the digitalcameras today is they come with a movie modebuilt-in, allowing you to record movie clips whileshooting still shots. Having movie clips as a part ofyour digital camera gives you the flexibility to decidehow you want to market a certain property. Intoday’s high-tech world of online video, many realestate professionals have the ability to usevideo in their marketing presentations i.e.video tours on numerous websites andwith many MLSs. Instead of beinglimited to showing prospective buyersstill shots of individual rooms, agentscan now present them as a live walkthroughof the entire property.When choosing a camera, selectingone that can record video isusually not high on the list,however, there are some thingsto keep in mind. Make sure theresolution you select will workwith the media you will beusing. Some models produce lowgrade, grainy videos, which areunusable practically anywhere. If youare going to produce a lengthy propertywalk-through without breaks, select acamera that does not limit movie length and willrecord as long as there is memory space available onthe card.I Have the Pictures. Now What?Once you shoot a property and have dozens,possibly hundreds, of pictures, you may askyourself, “Now what do I do?” There are manyways to organize all these images.First of all, you want to take them from yourcamera to your computer to have them saved onyour hard drive. Instead of storing them on yourinternal hard drive, some professionals choose toutilize an external hard drive or thumb drive thatcan be transported from one computer to anotherwithout much hassle. Once there, it seems asthough there are an endless supply of photomanagement programs from which to choose. Yourcomputer probably came equipped with a programor two that can be used to help organize your shotsand many companies offer programs, some ofwhich can get pricey. Along with several onlinesoftware programs that offer photo managementsolutions, Google has a program called Picasawhich can help organize your photos and best ofall, it’s free. With a little research, you will find theone program that will suit your needs.(Continued on page 29)12 www.kar.com

A U T O H O M E L I F E B U S I N E S S A M E M B E R S E R V I C E W W W K Y F B C O MLast time we checked, bad weather wasn’tknown for keeping business hours.Weather is unpredictable, but your insurance agent shouldn’t be. That’s why Kentucky Farm Bureau hasagents in every county in the state, so you can count on a quick response and great service when you need it.This commitment has helped us grow into the state’s largest property and casualty insurer. So if you need home,auto or business insurance give us a call or drop by. We’re there when you need us.

Tax LawRecent Tax Law Changes Impacting Real Estate Venturesby Stephen M. Lukinovich, CPA, CVADuring this very volatile year for our economyand specifically the real estate market, on July7, 2008 Congress passed The Housing AssistanceTax Act of 2008 (“The Act”). The provisions in thebill enacted significant changes. The real estatespecifictax incentives focus on home ownership andaffordable housing, while the offsets to theseincentives are obtained from a range of sources.Quick highlights of 2008 tax law changes:• Tax credit of up to $7,500 for first-timehomebuyers, to be repaid over 15 years.• Additional property tax deduction for peoplewho don’t itemize.• Reduced home sale exclusion under certaincircumstances.• 15 Year Qualified Leasehold Property, 50%bonus depreciation, effective January 1, 2008.First-Time Homebuyers CreditThe Act entitles first-time homebuyers, definedas not owning a primary residence in the past 3years, to a temporary refundable credit equal to10% of the purchase price of a home, up to $7,500.The new credit is effective for qualifying homepurchases made on or after April 9 th , 2008, andbefore July 1, 2009. The credit will be subject to aphase-out for taxpayers with a modified adjustedgross income in excess of $75,000. Unlike othercredits, the first-time homebuyer credit must berepaid in equal installments over 15 years,essentially making it an interest-free loan from thegovernment.The first-time homebuyer credit (see page 17) isby far the biggest tax break in the new law,weighing in at an estimated cost of $4.8 billion overten years. However, that figure hides the credit’strue immediate impact since new homeowners arepredicted to take this credit to an amount of $13.6billion in 2009.The IRS is not giving the $7,500 credit as cashat closing. The individual must claim the credit on a2008 or 2009 tax return. However, a first-time buyerwho purchases a principal residence in 2009 after filinga 2008 tax return has the option of filing an amended2008 return to claim the credit. Purchasers should alsoinvestigate adjusting their wage withholdings orestimated tax payments for the balance of the year toaccount for the credit.Additional Standard Deduction for State andLocal Property TaxesThis provision of the Act targets homeownerswho claim the basic standard deduction, instead ofitemized deductions, on their individual tax returns.Taxpayers who itemize their deductions may deductstate and local taxes paid, including individual incometaxes, real property taxes, and personal property taxes.The Act gives homeowners a limited deduction upto $500 for state and local real property taxes byincreasing the amount of their standard deduction.Reduced Home Sale ExclusionUnder current tax law, a homeowner maygenerally exclude from income up to $250,000 of again ($500,000 married couples) realized on the sale ofa principal residence as long as the residence wasowned and used for two out of the last five years. Thegeneral rule also allows for a partial exclusion if theownership and use test is not met. The Act changesthis general rule by excluding periods of “nonqualifyinguse” during the five-year period before aprincipal residence is sold. This provision applies toresidences sold after December 31, 2008.Starting on January 1, 2009, homeowners who usetheir home as a vacation home or for rental for sometime will no longer be able to exclude the portion ofthe gain allocated to such nonqualified use.Fortunately, any nonqualified use prior to 2009 doesnot count. Certain use is not treated as nonqualifieduse, including leaving the home vacant and temporaryabsences due to a change in employment, health, orunforeseen circumstances.14 www.kar.com

15 Year Leasehold ImprovementsThe 15-year MACRS (Modified AcceleratedCost Recovery System) depreciation recoveryperiod for qualified leasehold improvementproperty is extended 2 more years to apply tononresidential real property placed in servicebeginning January 1, 2008 through December 31,2009 as part of the most recent tax act, EmergencyEconomic Stabilization Act of 2008, signed into lawon October 3, 2008. Qualified leaseholdimprovements acquired and placed into serviceduring 2008 are also eligible for 50% depreciation.However, as it looks now, the 50% bonusdepreciation will not be around for the year 2009.Retirement Plans for Real Estate Agentsand BrokersAll real estate agents and brokers shouldconsider some type of retirement savings plan,whether it is a 401K, Simple IRA, or SEPRetirement Plan. The need for a retirement plan forhighly profitable agents and brokers has becomeeven more important. We have found that in certaincircumstances Defined Benefit Plans have proven tocreate tax benefits to high income earners.Stephen M. Lukinovich, CPA,CVA, a partner with Chilton &Medley Certified PublicAccountants in Louisville,began his career in publicaccounting in 1988. Hisprofessional emphasis is inindividual and business incometaxes with emphasis on realestate, partnerships, and Scorporations; business transition consulting,including purchases and sales of closely-heldcompanies, corporate reorganizations, and mergersand acquisitions; and state and localtax issues.SummaryUnderstanding and applying these two new2008 tax law changes in the real estate market couldbe factors that set agents and brokers apart fromtheir competition. Individuals rely on their agent tobe a professional in their particular industry; so,without knowledge of these new tax changesagent/broker may be at a disadvantage. Taking thetime to keep yourself updated on new tax lawchanges, by either consulting with a CPA orresearching on your own could be extremelybeneficial.WINTER 2008 KENTUCKY REALTOR ® 15

Government AffairsStimulating the Economy and the Housing MarketThe National Association of REALTORS ®(NAR) has proposed to Congress a four-pointlegislative plan to reinvigorate the housing market(see sidebar for details of the plan). NAR believesthe plan will give a boost to the economy and helpto calm jittery potential homebuyers.The NAR plan, which follows up on apreviously approved federal “bailout” plan, featuressuch consumer-driven provisions as eliminating therepayment of the first-time homebuyer tax creditand expanding it to all homebuyers, making highermortgage loan limits permanent, pushing banks toextend credit to Main Street and prohibiting banksfrom entering into real estate.NAR President Richard F. Gaylord stated,“Housing has always lifted the economy out ofdownturns, and it is imperative to get the housingmarket moving forward as quickly as possible. It isvital to the economy that Congress take specificactions to boost the confidence of potentialhomebuyers in the housing market and make iteasier for qualified buyers to get safe and affordablemortgage loans.”According to Joe Price, Vice President ofFinancial Services for Huff Realty, qualified buyerscan still get loans regardless of bailout planspecifics, but the process may be somewhatdifferent than in years past with more requireddocumentation and the buyer having to put “a littleskin in the game.”“There is money to lend today to qualifiedborrowers. As much as qualified doesn’t mean 800credit scores and 20% down payments, it doesmean those with a ‘credit worthy’ track record, i.e.consistent employment history, credible creditscores or alternative credit lines and some level ofdown payment – as little as 3% of the purchaseprice,” says Price. “I approach the assembling of aloan file as if I were going to court. I want topresent as strong a case as possible so there is nodoubt as to the outcome. Lenders must make surethe borrower has the means to make on-timemonthly payments.”The NAR proposal takes into account what hasalready set in place with the federal bailout plan, theapproval of $700 billion to stimulate the economy,but the method of allocating these funds is still in itsinfancy. However, $250 billion has been set asideby the Treasury to recapitalize banks instead ofbuying up their toxic securities, which may or maynot end up helping homeowners and the real estateindustry in the long run.NAR recommends Congress pass new housingstimulus legislation that includes the followingpriorities:1. Remove the requirement in the current law thatfirst-time homebuyers repay the $7,500 tax credit,and expand the tax credit to apply not only to firsttimebuyers but also to all buyers of a primaryresidence.2. Revise the FHA, Fannie Mae and Freddie Mac 2008stimulus loan limit increases to make thempermanent. The Economic Stabilization Act, enactedin February, made loan limit increases temporary,and subsequent legislation reduced the loan limitsand made them permanent. This has broadimplication for homebuyers in high cost areas.3. Urge the government to use a portion of theallotted $700 billion that was provided to purchasemortgage-backed securities from banks to provideprice stabilization for housing. The Treasurydepartment should be required to use the newlyenacted Troubled Assets Relief Program to pushbanks to:• Extend credit down to Main Street, making creditmore available to consumers and smallbusinesses;• Expedite the process for short sales;• Expedite the resolution of banks’ real estateowned (REOs) properties.4. Make permanent the prohibition against banksentering real estate brokerage and management,further protecting consumers and the economy.16 www.kar.com

HOUSING AND ECONOMIC RECOVERY ACT OF 2008First-time Homebuyer Tax CreditFirst-Time Buyer Tax Credit:A Reason to Buy NowThe homeownership tax credit that the federalgovernment created as part of the 2008 Housingand Economic Recovery Act, is a hard-won tool atyour disposal to encourage your customers to jumpoff the fence and get into the home buying market.When you combine the tax credit with today’scontinuing low interest rates, large selection of forsaleinventory and low home prices, many of thepieces are in place for your customers to buy now.So what exactly is the first-time buyer taxcredit? The chart to the right may help explain.And you can find more information about thecredit by visiting the KAR website atwww.kar.com/resources.asp?p=issuetracker.FEATURE H.R. 3221Housing and Economic Recovery Act of2008Amount of CreditEligible PropertyRefundableIncome LimitFirst-time Homebuyer OnlyTen percent of cost of home, not to exceed$7500Any single-family residence (includingcondos, co-ops) that will be used as aprincipal residence.Yes. Reduces income tax liability for theyear of purchase. Claimed on tax return forthat tax year.Yes. Full amount of credit available forindividuals with adjusted gross income of nomore than $75,000 ($150,000 on a jointreturn). Phases out above those caps($95,000 and $170,000, respectively).Yes. Purchaser (and purchaser’s spouse)may not have owned a principal residencein 3 years previous to purchase.RPAC ContributorsDue to the large amount of contributors toRPAC, the names are now be posted on the KARwebsite. However, a list of annual contributors tothe Commonwealth Club and above ($99 and up)will be printed in the first issue of the followingyear.To see the list of RPAC contributors, pleasevisit www.kar.com. Click on Legislative Affairs,then RPAC.RecaptureImpact on District of ColumbiaHomebuyer CreditEffective DateTerminationInteraction with AlternativeMinimum TaxYes. Portion (6.67 % of credit) to be repaideach year for 15 years. If home sold before15 years, then remainder of creditrecaptured on sale.DC credit not available if purchaser uses thiscredit.Purchases on or after April 9, 2008July 1, 2009Can be used against AMT, so credit will notthrow individual into AMT.2008 Kentucky General Election ResultsThe 2008 General Elections for Kentucky are over andthe results are in!During this election, KY RPAC supported 107candidates – 18 Senators and 89 Representatives.Here are the breakdowns:• KY RPAC supported 18 Senators and supportedcandidates won 100% of the races. The support went to 10Democrats (55%) and 8 Republicans (45%).• KY RPAC supported 89 Representatives and supportedcandidates won 94% (84) of the races. The support wentto 58 Democrats (65%) and 31 Republicans (35%).• In total, KY RPAC supported candidates won over 95%(102 out of 107) of the races during this election cycle.Democrats received 63.5% of the support compared to36.5% of Republicans.The Kentucky REALTORS ® Political Action Committeesupports candidates who support important real estateindustry issues and help fight for the rights of homeowners.WINTER 2008 KENTUCKY REALTOR ® 17

KREC InformationDealing with Short Sales and ForeclosuresHow to Handle With Buyers and SellersLee Harris is GeneralCounsel for the KentuckyReal Estate CommissionAs a REALTOR ® , you already know that therehas been a steady rise in the number of shortsales and foreclosures in the past year or so. Thesetypes of sales have caused great consternation forsellers, buyers and licensees alike. In many cases,there are extended delays in obtaining an acceptanceor rejection of a written offer. Sometimes, thesedelays are as long as several months, depending onwhere the offer is sent. Frustrated buyers andbuyers’ agents are often left in a lurch, helpless tospeed up the process but wanting to pursue theproperty. Sellers’ agents feel likewise frustratedfrom the delays, as they have no control over whenor how offers will be submitted for consideration.In other cases, there are frustrations borne outof the fact that the third-party entities will notalways deal in written offers and try to negotiateverbally with buyers until the very end. In theseinstances, buyers oftentimes believe that they have avalid contract, when, in fact, they have nothingenforceable at all under the Statute of Frauds.The Kentucky Real Estate Commission, theNational Association of REALTORS ® and manylocal Associations have been working on trying tocome up with reasonable solutions to some of theseproblems.However, there is no perfect answer. If a listingagent were to advertise that the seller is in direfinancial straits, this could seriously affect theseller’s bargaining position. For example, underthose circumstances, many buyers will make a lowballoffer. In those situations, there is often notenough money on the table to cover mortgages, latefees, commissions and other expenses. If the listingagent does not let buyers know of a seller’s financialstatus, they mayexpend goodmoney oninspections,appraisals andthe like. If thecontract cannotgo through due to a foreclosure proceeding, howwill the buyer be made whole by a seller who is insuch financial difficulty?The Commission has addressed these questionsand has said that listing agents must alert buyers topotential foreclosure or short sale issues, once thefacts will affect the buyers’ ability to purchase theproperty. This will obviously occur at differenttimes in different sales.If the seller chooses to disclose this informationearlier, listing agents may certainly do so. Someagents are putting information in the MultipleListing Service (“MLS”), such as “subject to thirdpartyapproval.” This type of language is alsonecessary if the mortgage company or lender mustapprove the terms of the purchase offer.There are several documents available to you onthe KREC website. These documents are notrequired; rather, they are informational and,hopefully, informative for you and your clients. Ifyou have any questions about these documents,please do not hesitate to contact the KREC’s LegalDepartment for assistance.As my wise father always said, “This too shallpass.” In the meantime, all players in the industrymust use their collective wisdom to try to come upwith creative and helpful suggestions for buyers andsellers in this market.18 www.kar.com

EducationOnline CE Now Offered Through KARIt is now possible to earn CE credit for yourreal estate license renewal without leaving yourhome or office. These courses may be entered andexited at your convenience. Once you register for acourse, you can begin immediately. All course workmust be completed in a 12-month period to earn CEcredit. Your completion date of the coursedetermines the year the credit will be issued.IMPORTANT: KREC’s continuing educationcalendar year is January 1-December 31.Two courses are currently available online:Environmental Issues in Real Estate6 hours (3 hours law credit & 3 hours electivecredit) - $50Real Estate Finance Today3 hours (3 hours elective credit) - $30Broker SummitKAR’s second annual Broker Summit has beenscheduled for April 23 & 24, 2009. Mark yourcalendars to attend the state’s premier training eventat the Crowne Plaza in Lexington. Speakers willinclude names from the national stage who willpresent topics relevant in today’s challenging market(KAR’s website will be updated once confirmationof speakers is made). Following the conclusion ofthe Summit, attendees will be treated tocomplimentary tickets to Keeneland to extend theirnetworking experience.30 Under 30 in REALTOR® MagazineAre you or someone you know under30 and a rising star in the real estateindustry? NAR is looking for the nextgeneration’s leaders for the 10th annual“30 under 30” feature, which will appear inthe June 2009 issue of REALTOR ®Magazine. If you or your candidate will beunder age 30 as of May 31, 2009, please fillout the “30 under 30” application to beconsidered for this feature.Applications must be submitted by Jan. 12,2009. Check out www.realtor.org/30under30 formore details.If you want to find out more or to register, goto the KAR website > REALTOR ® Resources >Education & Registration.Join KAR on Facebook, LinkedIn and ActiveRainKAR has added additional sites to its list of social networking outlets. If you are not currently on these sites, gettingstarted is easy. Just log on to www.facebook.com, www.linkedin.com or www.activerain.com and set up a profile.Joining is free and once you become a member, you can request to be added to the KAR groups. That’s all there is to it.To locate the KAR groups, use the search feature or go directly to the group:Facebook – www.facebook.com/group.php?gid=9244727021LinkedIn – www.linkedin.com/groups?gid=1323837ActiveRain – www.activerain.com/groups/karWINTER 2008 KENTUCKY REALTOR ® 19

Industry IssuesBlog? Why Would IDo That?Tips to Help You Get Startedby Hunt Cooper, KAR Marketing/Communications DirectorYou’ve heard about it. You don’t know exactlywhat it is but it sounds interesting. You wantto give it a try because everyone says it willrevolutionize your business and give you tons ofleads. But what do you do and how do you getstarted?out if blogging can truly help you in finding moreclients, whether directly or indirectly. Next, youhave to allocate the time to making it work. Andfinally, if you decide to take on this challenge, youwill have to choose a blogging platform. There aremore than a few out there so find the one that worksbest for you.Most people, after deciding blogging is right forthem, struggle to get started for one reason oranother. What do I name my blog, where can I findcontent and how do I encourage more people to readwhat I have to say are many of the obstacles that canstand in the way.Overcome those obstacles and build an effectiveblog with these tips:What’s in a Name?Take naming your blog into consideration andgive your blog a name you like, one that fitssomehow with your business and its mission. Usewords that describe what you do.The name you choose for your blog can alsohelp your position in Google and other searchengines. Include words or a phrase that you’d like toown – something that, when searched, will returnyour site as a top result. Don’t call it “Real EstateBlog” or something else similarly vague. Finally,don’t make the name too artificial or too long.Blogging is a fairly new phenomenon in theworld of real estate. Some REALTORS ® jumped onthe bandwagon before blogging was evenconsidered part of Web 2.0. Others waited to seehow this whole thing would pan out. Even more arestill wondering if this is a journey they want toembark on.Sure, blogging is cool and using this technologycan make you stand out from the crowd butknowing how and why you are doing it can be atough issue to overcome. First, you need to figureFind a NicheIf you find it advantageous to do so, build yourblog around a specific niche. Rather than trying to beall things to all people, tailor your blog to a specificdemographic or geographical area. If you sell horsefarms in Winchester or lake property in Somerset, trysomething related. Become the expert in that area.Motivating HeadlinesYou have only a fleeting moment to capture thereader’s interest. A good blog headline gets a reader’s20 www.kar.com

attention, tells them the story or part of it anddraws them into visiting the site and reading therest of the article. Be descriptive. A sharp firstparagraph or lead can also help draw in readers aswell.Using prime keywords in your headline andlead paragraph will help you drive more traffic toyour site, especially if you are using an RSS feed foryour blog.Would You Like a Side of Writer’s BlockWith That?Let your personality shine through on your blog. Ifyour journalism skills are not finely tuned, writeabout what you know. Visit other blogs, newssources and your market for inspiration. Begin byleaving comments on blogs you find interesting. Interms of writing style, blogs can be somewhatinformal, however, you should write as if yourreaders were paid subscribers whose subscriptionswere about to expire. Compel them to mentally resubscribe.Continue to give them something thatmakes them want to return over and over.Make ConnectionsDon’t be afraid of links. Include them – link tonews articles, other real estate Web sites and blogs –in your posts. For most people, you are providing avaluable service by pointing them to importantinformation in your area of expertise. They mayleave your site for the moment, but they’ll comeback because you will be a source of relevantinformation.Linking is about sharing your wealth ofinformation with others. This sharing can increasereadership and some of those folks will share rightback meaning when you reference other blogs inyour own blog, you may end up with a reciprocallink back to you.Also, set-up your blog so consumers can postcomments on what you have to say. They allowconsumers to develop a connection and participatewith your blog and they giveyou a way to interact withpotential clients. It is also agood idea to give people a wayto subscribe to your blog byway of an RSS feed or email.Don’t Be a Copy CatMake your blog unique to you. Offer fresh,new content. If you find a post or other interestingcontent somewhere else, avoid copying it. Referencethe content with a snippet of information andfollow it up with a link to the information. This notonly is the right thing to do, it can also boost yourrankings with search engines. Just because bloggingis not considered traditional media, you don’t wantto fall into hot water over stealing someone else’sintellectual property.And, most importantly, spell check yourposts, and read them for clarity. Do this at leastonce or twice before posting so you can avoidembarrassment later.For more information on how to use blogsfor your business, check out the NAR FieldGuide to Marketing with Blogs atwww.realtor.org/library/library/fg910.From the 2007 NAR Member Profile:Only 2 percent of REALTORS® “frequently use blogs”compared with 88 percent who “rarely or never useblogs.” Only four percent of the survey respondentshad blogs, however, 10 percent plan to have one inthe future.The younger the REALTOR®, the more likely they areto have a blog (9 percent of those 29 or younger).The overall goal is to establish your blog as the go-toresource in your area so you can generate businessnow and into the future.WINTER 2008 KENTUCKY REALTOR ® 21

Local Association NewsLocal boards/associations are encouraged to submit information for this section.Pictures must be at least 300dpi. Send all association news to hcooper@kar.com.GLAR Launches New Ad Campaign forOpen HousesIn an effort to keep costs down for GLARmembers as well as offer then increased exposurefor their listings, the Greater Louisville Associationof REALTORS ® recently launched a new initiativethat focuses on publicizing open house informationto the consumer. The advertising campaign, calledSeeItThisWeekend.com, directs consumers to searchfor open houses through the association website.Print ads are placed in the Sunday real estate sectionof The Courier Journal, Louisville’s mostpredominant local newspaper, and radio ads arerunning on various local stations. These ads aredesigned to direct consumers to visitSeeItThisWeekend.com, the official open house siteof the Greater Louisville Association ofREALTORS ® . When the consumer enters thiswebsite address in their browser they will bedirected to the open house results page ofLouisvilleRealtors.com and are able to view detailson all upcoming open houses. Response to thiscampaign has been very positive with GLARmembers as well as consumers.NKAR Celebrates the Openingof a New HomeIn the midst of a nationwide real estate marketpullback, the Northern Kentucky Association ofREALTORS ® (NKAR) is making a major statementabout the health and vitality of their market byopening the doors to a new, larger associationheadquarters.NKAR’s new home is on Turfway Road, infront of Turfway Park Race Track. The structure isa two-story building with approximately 20,000square feet of office space – approximately fourtimes larger than NKAR’s previous office inEdgewood.A grand opening ceremony at the new facilityat 7660 Turfway Road was held on Thursday,August 28. NKAR leadership hosted a shortprogram with an official ribbon cutting ceremony.A number of local and state governmentrepresentatives were on hand for the event.“Tri-state residents continue to discover theappeal of living in Northern Kentucky,” said JimSchack, president of NKAR. “Unlike some otherlocal regions, Northern Kentucky has not seen asgreat as a decline in home sales or value. Our newFlorence headquarters is a central location, enablingNKAR to continue providing the exemplaryservices home buyers and sellers have come toexpect from ourorganization.”Paducah Board ofREALTORS ® HelpRenovate LandmarkThe PaducahBoard of REALTORS ®committed to help theOscar Cross LegacyCommittee by adoptingthe renovation project ofthe home that started thePaducah Chapter of theBoys and Girls Club ofAmerica. The 101 year old home, one of the oldestin the city, belonged to Oscar Cross, founder of theBGCA-Paducah Chapter and the first African-American to be on the National Boys Club Board.The house itself served as the birthplace for thePaducah Club.With the help of the city and a grant from theCity Commission for $10,000, members of theOscar Cross’s grandchildren stand in whatwas the foyer of the home prior torenovations.22 www.kar.com

Legacy Committee purchased the home and startedraising money to renovate the historical site. On oneof the first days to prep the home in August,approximately 10 REALTORS ® from the PaducahBoard were present for the open house completewith food, ice cream and drinks and to look at theinside of the home before the project began.REALTOR ® Association of SouthernKentucky and Kentucky CRS ChapterSponsor Rebuild ProjectThe REALTOR ® Association of SouthernKentuckytook on aproject inSeptemberthat raisedfunds for theKentuckyCRS chapterto assist withtherebuilding ofa home inFranklin,Standing in front of Ms. Johnson and her new home, SteveCline, 2009 president of KY CRS Chapter, accepts a check fromLynn Caudill, member of RASK, as part of the fundraising forthe rebuilding project.Kentucky. RASK raised money at their monthlymeeting and donated a TV for raffle to the KentuckyCRS Chapter to assist with the “Johnson Project,” arebuilding effort that took a total of 18 days tocomplete. The amount committed by the twogroups was over $1,200, along with volunteer time.The entire community came together withvolunteers from every profession – plumbers,electricians, contractors, painters, etc., – to constructa brand new home for Ms. Johnson. They tore downthe entire home, removed the debris, leveled the lotand built an 850 square foot all electric ranch homefurnished with new appliances, new furniture and aseeded lawn. She was out no expense.Magazine Names Cumberland GapAs No. 1 Fall TripThe Cumberland Gap area of southeasternKentucky was named the top fall destination in thesouthern U.S. by Southern Living magazine in itsOctober 2008 edition.In addition to brilliant foliage, Cumberland Gap– one of Kentucky’s highest points – sheltersbuildings from a long-gone settlement, along withan unparalleled view, the magazine reports in thefeatured story about the top three Southerndestinations for fall travelers.Also, Pine Mountain State Resort Park inPineville, Kentucky, about 15 miles north ofCumberland Gap, was chosen by readers of theMiddlesboro Daily News as the best spot toentertain out-of-town guests, the best diningatmosphere and the best place to play golf in thetri-state area of southeastern Kentucky,southwestern Virginia and northeastern Tennessee.Kentucky Broker’s Son Killed in ActionHopkins County Native Sgt. William PatrickRudd, a Hopkins County native and Army Ranger,was killed in action in Iraq this past October.Patrick was the son of William (Bill) Rudd, Jr, abroker with Rudd Real Estate & Associates inMadisonville, Kentucky. Sgt. Rudd joined theArmy on Oct. 2, 2003 and after completing onestation unit training and the Ranger IndoctrinationProgram, he was assigned to B Company, 3rdBattalion, 75th Ranger Regiment on Aug. 9, 2004.He served as a rifleman, grenadier and fire teamleader.Sgt. Rudd’s awards and decorations include theJoint Service Commendation Medal, the ArmyCommendation Medal, the Army AchievementMedal with two oak leaf clusters, the Army GoodConduct Medal, the National Defense ServiceMedal, the Global War on Terrorism ExpeditionaryMedal, the Global War on Terrorism Service Medal,the Afghanistan CampaignMedal, the Iraq CampaignMedal, the Army ServiceRibbon, the Ranger Tab, theCombat Infantryman Badge andthe Parachutist Badge. He isexpected to be posthumouslyawarded the Purple Heart, theBronze Star Medal and theMeritorious Service Medal.He had previously beendeployed twice to Afghanistanand five times to Iraq.Memorial contributions may take the form ofdonations to the Special Operations WarriorFoundation, PO Box 13483, Tampa FL 33629.Sgt. William Patrick RuddWINTER 2008 KENTUCKY REALTOR ® 23

By The NumbersAccording to50%Silverpop’s landingpage report, “EightSeconds to CaptureAttention,” thepercent of users whowill leave a Website’s landing page or micro-site within eightseconds if nothing piques their interest.According to a Yahoo! study, homebuyers and sellers considerapproximately this many agents onaverage before making a final decision.223% vs 68%According to recent research by the NationalAssociation of REALTORS ® Annual Survey ofMembers compared to notes from the Wikipediaentry for Generation Y (those born between 1978and 2000), the percent of REALTORS ® who sendtext messages at least once a day compared to thepercent of Gen Y who text message daily. Otherpercentages of note:• 88% of REALTORS ® own a computer; 97% ofGen Y have computers.• 93% of REALTORS ® have a cell phone; 94% ofGen Y have a cell phone.• 14% of REALTORS ® have used IM“infrequently;” 76% of Gen Y use IM every day(15% are logged in 24/7).• 1% of REALTORS ® use podcasts regularly; 49%of Gen Y download podcasts regularly.81 % 38.7According to a Coldwell Banker survey, thepercentage of first-time home buyers who considermove-in conditions to be very important whensearching for homes. In contrast, only 7% arelooking to purchase “fixer-upper” homes that theycould buy at a lower price and renovate themselves.It was also reported that affordability was the No. 1concern for this group of buyers.KAR thanks the followingsponsors for their supportof the 2008 Convention & Expo:The Census Bureaureported that between2006 and 2007, thismillionmany people movedin the United States.Of that number, 25.2million stayed in thesame county, 7.4 million moved to a differentcounty within the same state, only 4.9 millionmoved to a different state and 1.2 million movedfrom abroad to the United States. Forty two percentsaid they wanted to live in a better neighborhood;30 percent said their move involved familyconcerns; 21 percent said employment; and 7percent listed other factors.US BankSystems EngineeringNKRECInsight CommunicationsThe Appointment DeskForcht BankCentury 2124 www.kar.com

Housing StatsHome Prices in Kentucky Still Holding StrongSales continue to be slowEven during the national election resultsand economic news, housing still seemsto break through the clutter and remainstop of mind for buyers and sellers across thecountry. This is also true for the so-calledfence sitters who think now may be a badtime to buy and want to wait it out.In some parts of the country, buying ahome (or trying to sell one) may not be thebest idea for everyone but in Kentucky thatis generally not the case. For the thirdquarter of 2008, median home prices inKentucky rose slightly, an increase of 3.3percent, compared to the same period in2007. The numbers have seen slightvariations from month to month but pricesremain solid. The number of homes sold forthe quarter, however, continues to be in linewith the prior months of the year as saleswere down just over 19 percent in the thirdquarter of 2008 compared to the sameperiod in 2007.“The federal government continuesdiscussions on ways to boost the housingmarket and have implemented many greatideas,” says Robert Damron, president ofthe Kentucky Association of REALTORS ® .“The $7,500 tax credit is available and talksare being held by NAR and other groupson ways to extend this program to make iteven more effective for a wider audience.Hopefully we will see more programsaimed at making homeowners morecomfortable with their current situationsand potential buyers more comfortable withtaking the necessary steps to get into ahome.”In a market forecast session at therecent NAR Conference in Orlando, JedSmith, NAR’s Managing Director forQuantitative Research, explained theeconomic fundamentals related to housingand spoke about the decline in the numberof housing starts the country has seen over(Continued on page 29)Third Quarter 2008 vs. 2007Board/Association # Sold # Sold # Sold % Median Price Median Price Median2008 2007 2008 2007 Price %Region OneHenderson-Audubon BOR 104 107 -2.80% 90950 95125 -4.39%Hopkinsville-Christian BOR 83 147 -43.54% 105200 112950 -6.86%Kentucky-Barkley Lakes BOR 88 96 -8.33% 98000 82000 19.51%Madisonville-Hopkins BOR 104 123 -15.45% 75185 92625 -18.83%Mayfield-Graves BOR 83 100 -17.00% 85000 70000 21.43%Murray Calloway County BOR 75 80 -2.50% 122500 112000 9.38%Owensboro BOR 307 319 -3.76% 112193 103200 8.71%Paducah BOR 187 274 -31.75% 129250 130000 -0.58%Pennyrile BOR 106 123 -13.82% 112500 97500 15.38%Region TwoCentral Kentucky AOR 148 183 -19.13% 115500 105250 9.74%Heart of Kentucky AOR 443 485 -8.66% 136250 130900 4.09%Old Kentucky Home BOR 139 116 19.83% 114800 113330 1.30%REALTOR® Assn of SKY 467 551 -15.25% 121500 123600 -1.70%Russellville-Logan BOR 50 53 -5.66% 77500 110000 -29.55%Shelbyville BOR 96 150 -36.00% 149000 148000 0.68%South Central Kentucky AOR 78 96 -18.75% 109000 109500 -0.46%Region ThreeGreater Louisville AOR 2993 4197 -28.69% 140000 141750 -1.23%Region FourLexington Bluegrass AOR 2221 2675 -16.97% 147800 146415 0.95%Region FiveNorthern Kentucky AOR 1374 1649 -16.68% 135000 140000 -3.57%Region SixAshland Area BOR 219 255 -14.12% 95750 95000 0.79%Cave Run AOR 46 NA NA 110000 NA NACumberland Valley BOR 150 208 -27.88% 109000 107750 1.16%Eastern Kentucky AOR 126 159 -20.75% 117500 105289 11.60%Madison County BOR 643 677 -5.02% 142000 136250 4.22%Pioneer Trace BOR 49 109 -55.05% 75625 100000 -24.38%Somerset-Lake Cumberland BOR 192 213 -9.86% 115000 125000 -8.00%Totals 10574 13145 -19.56% 113650 110000 3.32%Based on information from local REALTOR ® associations/MLSs for the periods of July 1 – September 30, 2007 and 2008.* Statistics are unavailable for the following local associations: Cynthiana-Harrison Co., Dix River and Frankfort. Cave Rundoes not have statistics for 2007 (new association in 2008).WINTER 2008 KENTUCKY REALTOR ® 25

Community ProfileA Spotlight on...MaysvilleAll photos courtesy of Lloyd SchiltzSituated along the Ohio River, Maysville islocated in the northeastern corner ofKentucky’s fertile Bluegrass Region. This locationplaces the community directly in the crosshairs ofLexington, Cincinnati, Ohio and Huntington,West Virginia.But Maysville wasn’t always known by the samename which begins the deep and unique historyassociated with what is now the fiftieth largest city inKentucky (at one point, in 1790, Maysville was thesecond largest town in the state with 119 log cabins).Maysville was originally called Limestone due toits location on the Ohio River at the mouth ofLimestone Creek. The area was a natural path forbuffalo and settlers, particularly Simon Kenton,Daniel Boone and John May, to the interior of thestate. In fact, Simon Kenton made the firstsettlement in the region in 1775 before being forcedout during the American Revolution. It was duringthis time, and up through 1787 after Kentonreturned, that the three men established the villageinto Maysville, even though the Limestone namecontinued well into the nineteenth century.By 1830, Maysville had become a thriving riverport and, after petitioning the Kentucky Legislaturethree times and eventually passing by a slendermargin, Maysville became the seat of Mason Countyin 1848.Access to a major waterway played a major rolein the town’s initial growth. Maysville, in addition tobeing a major exporter of hemp, tobacco andbourbon, was once a center of wrought-ironmanufacturing, sending much of the fancy ironworkit produced down the Ohio to decorate the elaboratebuildings of New Orleans. When merchants wouldreturn, they would bring with them architecturalstyles and trends to incorporate into the boomingriver town. From the row houses to the ornateironwork that accompanies them, the inspiration ofThe Big Easy can be seen in the structures of thetown’s original developments to the currentrestoration projects. The river also helped spurgrowth for Maysville into the twentieth century as itwas home to one of the largest tobacco auctionwarehouse systems in the world.Maysville’s history is also linked to Kentucky’sphysical location during the Civil War era.Kentucky, a border state for both its views on thewar and slavery, had the region divided by loyaltiesduring the battles. It was said that many families hadsiblings fighting against each other because onechose to fight for the North and the other for theSouth. Even counties were split in their views andstyles of governments.Maysville, because of its proximity to Ohio, afree state, was an important stop on theUnderground Railroad. Harriet Beecher Stowevisited the area in 1833, witnessed a slave auction infront of the county court house in Washington, nowannexed into Maysville and included the scene inher novel Uncle Tom’s Cabin. The UndergroundRailroad is also the focus of a new 2,100 milecycling route that follows the trail from Mobile,Alabama, through Maysville and on to OwenSound, Ontario.Today, this deep history lives on in Maysville.The notable past can be explored at the manymuseums that can be found in the region or by wayof a guided tour through the two historic districts –downtown Maysville and Old Washington, a 1700’svillage of craft and collectibles shops and fineKentucky dining.Outside of the historical footprints of the city,there are many cultural draws to this area forvisitors and locals alike. According to Lloyd Schiltz,president of the Pioneer Trace Board ofREALTORS®, the local city and countygovernment have taken great strides to revitalizeMaysville’s downtown to keep that culture alive.“I have lived here my entire life and the historiccharm that we know is essential in order for us to‘sell’ this town as a destination,” said Schiltz. “Newconstruction, such as the county courthouse, has alook that is consistent with Maysville’s past. In26 www.kar.com

addition, utilities have been placed underground sothe wonderful architecture is not obscured by wiresand poles and the direction of traffic on some of thestreets has been rerouted over the past few years tomake flow more efficient.”The Washington Opera House, the fifth oldesttheater in the United States, is the stage for a widevariety of performers including Michael Bolton andRich Little. It is also home to the Maysville Players,themselves one of the oldest acting groups in thestate. The Washington Opera House receivednational attention this year when it held the worldpremier of the movie Leatherheads, starring GeorgeClooney.Rosemary Clooney, aunt to the aforementionedGeorge and a great singer and actress, started theRosemary Clooney Music Festival in 1999 (andperformed every year until her death in 2002) tobenefit the restoration of the Russell Theater. Pastperformers at the festival include Roberta Flack,Alison Krauss, The Pointer Sisters and LindaRonstadt.The recently expanded and remodeled KentuckyGateway Museum Center tells the story of theregion through exhibits and original art work byacclaimed artists. The pieces on display and theresearch library are renowned for their superbcollection of original documents, photos and booksoutlining the progress of Maysville and surroundingareas. The Kathleen Savage Browning MiniaturesGallery, a world class collection of 1/12 scaleminiatures, is also housed at the Center.One of the more unique displays withinMaysville is in the floodwall artwork of renownedLouisiana muralist Robert Dafford. The MaysvilleFloodwall Mural Project, a series of ten murals alongthe McDonald Parkway, depicts the early riverhistory of the region by capturing details of thearchitecture, transportation, dress and other aspectsfrom the past four centuries.The landscape of the area can be experiencedalong the route of the Antiques, Collectibles andStuff 400 Mile Sale across Kentucky fromWashington to Paducah. The journey encompassesover 200 antique shops, 11 state parks, numerousCivil War sites, museums, original Kentucky craftsand specialty shops and hundreds of individual yardsales along the way.Interstate travel in this part of Kentucky is madeeasy with the only two bridges, the Simon KentonMemorial Bridge and the William H. Harsha Bridge,crossing the Ohio River for nearly 100 miles. Bothbridges connect Maysville to Aberdeen, Ohio andare very substantial impact projects for the region.Built in 1931, the Simon Kenton Memorial Bridge isa suspension bridge and originally opened with atoll. Those tolls were removed in 1945 to muchfanfare including celebrations from the local Rotaryand Lions Club, and a parade in downtownMaysville. Its main spanis 1,060 feet long, and thetotal length of the bridgeis 1,991 feet. The newer ofthe two bridges, theWilliam H. HarshaBridge, opened to trafficin 2001 and was the firstin Kentucky to use thecable-stayed suspensionmethod. It measures 2,100feet in total length, 1,050feet across the center spanand the supporting towerseach rise to 332 feet.The recreational opportunities in and aroundMaysville are plentiful not only because of theproximity of the river, but also because of theexcellent highway systems running through the area.Boating, fishing, camping and other outdooractivities are big draws for the immediate area. Anoff-road park is available for trail riding and theMaysville-Mason County’s Recreation Park offersmany facilities, activities and a 12-acre fishing lake.Within the county are several golf courses as well asannual festivals, BBQs, wine tastings and a hot airballoon race.Whether Maysville is a daytrip, a weeklongvacation or a permanent residence, exploring thearea is sure to offer a history lesson like no other.WINTER 2008 KENTUCKY REALTOR ® 27

From the HelmAccentuate THE POSITIVEKAR Executive Vice President Susie Helm stands next to the“logo wall” inside the newly renovated office building for theAssociation.When I was much younger, I swam on a team.One time, while swimming backstroke, Ifinished last … dead last by a wide margin. When Igot out of the pool, proud that I finished butembarrassed by my slowness, my Mom said to me,“Honey, look, you got your best time.” She didn’tsay, “You’ll do better next time” or “it’s OK” oreven, “you were really slow!” She said THEPOSITIVE. THE POSITIVE gave me theconfidence to swim backstroke again, even though Ididn’t really like backstroke. I knew I could get mybest time again if I kept trying.Throughout my life, I received THE POSITIVEfrom family members, especially my Mom. Manytimes, I got THE POSITIVE from Associationleaders, peers and employees.What is THE POSITIVE? It is a positive commentwithout conditions, delivered with sincerity. It isnot fake or phony; it is the real thing. It is usuallydelivered spontaneously. It is genuine.When you are the recipient of THE POSITIVE,you never forget how you feel when it is given toyou. I remember the swimming encouragementfrom nearly 40 years ago. THE POSITIVE has thatmuch impact.In these difficult economic times, all of us need tofind ways to accentuate THE POSITIVE. Because,as all economic cycles go, there will be a reboundand an upturn in our business as well as the rest ofthe economy. We need to position ourselves in apositive way for the real estate market rebound.But in the meantime, we need to accentuate THEPOSITIVE in everything we do. From our clientsto our business associates to our friends and family,we need to be accentuating THE POSITIVE in allof our endeavors. As the holiday season approaches,spreading good cheer and being positive is animportant part of the equation. There are manypeople less fortunate than ourselves who are in needof our assistance and encouragement and with thatcomes the positive influence we can have insomeone’s life. It can be charitable assistance or justa note to say we are thinking of you and your lovedones this time of year. We all like to have someoneaccentuate THE POSITIVE in our lives.Now, here is a very POSITIVE story: Our staffmeetings usually consist of planning upcomingevents and meetings, reviewing schedules andgeneral discussions. We were reviewing our plansfor our staff Christmas luncheon and gift exchangewhen Cinda Hatfield, KAR’s executive assistant,suggested that we forego our own exchange andgive the money to a charity instead. It wasimmediately seconded by several staff members and,ultimately, we decided to adopt a family forChristmas. I really admire their desire to helpothers with their generosity and am proud to bepart of this fine group.On behalf of the entire staff at KAR, we wish you asafe and happy holiday season and hope for aprosperous new year!Susan W. Helm, RCE28 www.kar.com

Digital Photography (continued from page 12)Regardless of how you decide to organize thevast amount of images you may have in yourpossession, the best thing to remember is to keepthese organized in a way that allows you toreference your photos quickly and easily so youdon’t spend valuable time searching when you canbe selling.Extra This, Extra ThatDigital cameras and digital photography havecome a long way in a short amount of time whichcan make purchasing the equipment feel a littleoverwhelming. There are, however, several otheritems that can make the journey whole. Once youselect a camera and you’ve thought about the manyuses you have for your new found freedom ofexpression, don’t forget to overlook the “extras”that may be necessary to complete the package.• Did you consider a tripod to help steady yourshots and keep them from being fuzzy and outof focus?• What about extra batteries or a few rechargeablesets that can be swapped out so you are neverwithout power?• If the camera has options for a bigger, betterlens or flash, what type do you need to get thepictures you want?• How about a carrying case to protect thecamera and, possibly, carry your supplies andpersonal items?These are just a few of the questions that shouldassist you in making an informed decision on a veryimportant piece of your overall real estate careerpuzzle.Quick Tips for a Great ShotThere are no hard and fast rules forcomposing real estate shots, but do keep inmind a few principles.Do some staging. Temporarily movedistracting items from the scene such as acar in the driveway or a For Sale sign on thelawn. For interior shots, tidy up the room so itlooks uncluttered.Highlight positive areas of the property.Before snapping the shutter button, reviewthe scene so vertical or horizontal lines areperpendicular.Take shots from different angles sonothing obstructs an important part of thescene.Moving slightly to the left or right, or back afew steps, before taking a photo can improvecomposition. Make a habit of checking thecomposition in the viewfinder or on the LCDbefore and after taking a photo.Housing Stats (continued from page 25)the past three years (down 65% from March 2005peak). Although this represents a slow time forbuilders and affiliated industries, the good news isthe slowdown should control inventory in theshort term and help push the demand for housing,both new and existing, in the future.In an interview with the Lane Report, BobWeiss, executive vice president of the HomeBuilders Association of Kentucky said thatKentucky’s rural areas have not been hit as hard asthose areas in the “golden triangle” when it comesto new home building. Although home starts in thestate are slower than they were during the peak of2005, Weiss says that new homes have seen modestprice appreciations and prices are still going up.As mentioned over the past several monthswhen the slowdown first hit the national markets,housing in Kentucky remains a stable investmentwhen purchased for the right reasons. The state hasnot seen the extreme rise and fall of home prices asdid many parts of the country, especially the eastand west coasts. On a national level, home sales in2008 are down 29% through September from aSeptember 2005 peak. Prices across the country aredown 17% through July 2008 over the same periodin 2007.WINTER 2008 KENTUCKY REALTOR ® 29

A Day in the Life of...A Kentucky Real Estate CommissionerKen Perry, Chairman, KRECCold Spring, KentuckyYears as a Commissioner: 3How did you get involved with the Commission?I felt as though I was at a point in my career where Icould commit to give back to an industry I had workedin for a long time. I applied for a spot on theCommission so I could serve the licensees of the state.What are some of the challenges you face at theCommission?We are facing a huge retirement issue inside theorganization. Many of these employees have been withthe KREC for 20 to 30 years and they are now movingon – about half the staff is leaving. The real estateindustry and the Commission have been their entirecareers so, needless to say, they are taking with them aton of knowledge of the business. We will have to rehireand train these new positions.What are the proudest accomplishments for you as aCommissioner?There were four goals I had when I became aCommissioner and all four have been accomplished.These were developing a commercial CORE course forCE, reworking and approving the new agency disclosureform, starting a broker manager’s course and improvingthe state’s curriculum quality through online CE toallow folks in the rural areas to get their educationwithout having to travel. Recently, we implemented thenew commercial license law, which modernized oursystem to be in compliance with the federal court order.That was a great accomplishment for me as well.In your opinion, where is the state headed in the nextthree or so years for licensees?I feel we will have fewer and fewer licensees – a declinein new REALTORS ® and more agents in escrow due tothe challenging economic times. I am personallyexpecting a drop of 10% in total agent count before thenext renewal cycle for licensees. But that’s just myopinion.How is the market in Kentucky going to play outover the next few months?We have seen a decline in the market and the currentcycle is going to be a long downward trend with norelief in sight.What are some of the upcoming changes for theindustry?I believe we will see continuing pressure onCommissions. I also think within real estate operations,we will see a smaller number of mid-sized firms. Thiswill be the result of a downward pressure on revenueand increased operating expenses. I also see an increasein the number of alternative model firms. The growth ofthese firms will be the result of a favorable lawenvironment, limited consumer home equity and acontinued growth in technology. Within the state, Ithink online CE will start to take hold with licensees aswell.From the perspective of the KREC, what advicewould give a real estate agent?I would say it’s time to focus on your education andgetting back to the basics.What is your main goal as the Chairman of theKREC?To further improve the efficiency of the organizationand hire quality employees that will help us operatesmoothly.Outside of your real estate business, what is yourbiggest hobby?A good day’s work out on the farm – I have a 900 acreplace that I love to keep up. It really gets my perspectiveand focus ready for Monday and the rest of the week.Last question, what is the best piece of advice you’veever received?You can obtain anything; all you have to do is work forit and want it.30 www.kar.com