REsource

REsource 

August, 

2016 

Volume 16, Number 11 

©2016 

Juvenile Red-Tailed Hawk @ MN REALTORS® Office, Edina 

Supporting YOUR success.

August, 2016 

MINNESOTA’S ECONOMY 

AT-A-GLANCE .....................................................3 

by Christine Berger 

LETTER FROM THE CEO: 

OPINIONS WANTED .........................................4 

by Christopher Galler 

REVISED FORMS NOW AVAILABLE ...........5 

by Susan Dioury 

UNAUTHORIZED ACCESS TO PROPERTY: 

UNPROFESSIONAL & ILLEGAL ....................8 

by Susan Dioury 

LEGAL HOTLINE Q & A................................. 12 

by Susan Dioury, Jonathan Kopecky, 

Anne Kealing, & Ryan Hamilton 

CONGRATULATIONS, 

NEW GRI DESIGNEES ................................... 14 

JUNE SEEMED TO BE ALL ABOUT 

SUPPLY & DEMAND ....................................... 18 

by Carrie Andersen 

LEGISLATIVE UPDATE .................................. 20 

by Paul Eger & Ryan Hamilton 

MEMBER PROFILE: 

CHRISTINE CULBERT ................................... 22 

MN-RPAC UPDATE.......................................... 24 

by Christine Berger & Kevin Zabel 

MAJOR INVESTOR SPOTLIGHT: 

MIKE HUNSTAD .............................................. 26 

NAR-BACKED CONDO LEGISLATION 

PASSES U.S. SENATE, OFFERS RELIEF 

FOR HOMEBUYERS ....................................... 28 

by The National Association of 

REALTORS® 

INTERNATIONAL HOME SALES DOLLAR 

VOLUME RETRACTS IN U.S., CHINESE 

LEAD PURCHASES ........................................ 30 

by The National Association of 

REALTORS® 

NEW HOME CONSTRUCTION 

HAS TIMBERLAND PRICES 

TRENDING UPWARD .................................... 34 

by Bob King 

MN REALTORS® 

COMMITTEE REPORTS ............................... 36 

AUGUST EVENTS ........................................... 38 

View previous MN REALTORS® REsource newsletters, as well as 

e-REsource newsletters at www.mnrealtor.com/member-resources. 

MINNESOTA ASSOCIATION OF REALTORS ® 

Minnesota REALTORS ® Newsletter is 

5750 Lincoln Drive, Edina, Minnesota 55436-1697 published twelve (12) times per year 

Phone: 952.935.8313 | Toll Free: 800.862.6097 | Fax: 952.935.3815 

Editor: Erica Forman 

Web site: www.mnrealtor.com 

952.912.2668 | eforman@mnrealtor.com 

2 Minnesota REALTORS® — Supporting YOUR Success

MINNESOTA’S ECONOMY 

AT-A-GLANCE 

Christine Berger 

Vice President, Political Affairs 

cberger@mnrealtor.com 

1 

The Minnesota unemployment rate in June 2015 was 3.6% (seasonally adjusted). 

The U.S. unemployment rate in June 2016 equaled 4.9% (seasonally adjusted). 

This is down from 5.3% in June 2015. 

Source: Department of Employment and Economic Development (“DEED”) — 7/27/16. 

2 

Job growth over the year is up 1.2%. The national job growth rate was 1.8%. 

Source: DEED — 7/27/16. 

3 

The MN Labor Force Participation rate one year ago in June 2015 was 70.2%. 

Source: DEED — 7/27/16. 

4 

In June 2015, the median closed sales price in the seven-county Twin Cities area was $235,000. 

The June 2016 median closed sales price is up 5.5%. 

Based on information from 10K Research & Marketing. 

5 

In June 2015, the median closed sales price Statewide was $205,950. 

The June 2016 median closed sales price is up 6.1%. 

Based on information from 10K Research & Marketing. 

REsource: August, 2016 3

LETTER FROM THE CEO: 

OPINIONS WANTED 

Christopher Galler 

Chief Executive Officer 

cgaller@mnrealtor.com 

In the next month, don’t be surprised if 

you receive an email questionnaire or 

two. Working together, the Minnesota 

and Local Associations across the state 

are looking to determine the best way to 

communicate with you, our joint member. 

We understand that you are receiving lots 

of email messages from the three separate 

levels of the REALTOR® Organization. Our 

purpose is to reduce numbers and increase 

readership. 

Talking with Local Association Presidents, 

President-Elects, and Association 

Executives, we will be asking members 

a series of questions related to how we 

communicate with you, how you would 

like us to communicate with you, when 

you would like to receive those messages, 

and how we can improve your retention 

of the information/notices. This is the first 

step in assembling a statewide REALTOR® 

communication plan. 

We also have been told that the Minnesota 

Department of Commerce is going to be 

surveying real estate licensees about the 

Pulse Portal license system. It is important 

that you share your experiences — both 

good and bad — with the system. They 

are working with the vendor to correct any 

problems and make the system easier for 

you to use. 

If you have any comments or ideas you 

would like to share with the Minnesota 

REALTORS®, please email me: 

cgaller@mnrealtor.com. 


REVISED FORMS NOW AVAILABLE 

Susan L. Dioury, JD 

Senior Vice President, 

Risk Management 

Legal Counsel 

sdioury@mnrealtor.com 

These changes are 

now available on 

TransactionDesk. 

The Minnesota 

REALTORS® Forms 

Committee held 

six meetings, one 

Commercial Forms 

Sub-Committee 

meeting, and one 

Leasing Forms 

Task Force meeting 

this fiscal year. It covered many of the 

members’ suggested changes. A special 

thanks is due to the Forms Committee 

Chair, Deb Richmond-Johnson, and all 

of the volunteer Forms Committee, Sub- 

Committee, and Task Force members for 

their efforts in accomplishing a very hefty 

agenda this fiscal year. 

The Forms Committee made numerous 

forms changes, which were summarized 

in last month’s REsource (you can view 

..substantive changes 

were made to three main 

contingencies including the 

Inspection Contingency, 

Sale of Buyer’s Property 

Contingency, and the 

Financing Contingencies.. 

the detailed 

summary here). The 

revised forms are 

now available on 

TransactionDesk. 

Please note that 

substantive changes 

were made to 

three main contingencies including the 

Addendum to Purchase Agreement: 

Inspection Contingency; Addendum 

to Purchase Agreement: Sale of Buyer’s 

Property Contingency; and the three 

Addendum to Purchase Agreement: 

Financing Contingencies (Conventional, 

FHA, and DVA). We strongly encourage you 

to thoroughly review these revised forms to 

ensure you understand how these changes 

affect the applicability, duration, and 

removal of these particular contingencies. 


GET INVOLVED! 

Are you interested in being more involved with the actions of your State Association? 

MN REALTORS® is currently seeking applicants for the following Committees: 

(All committee applications must be received by August 31 st , 2016.) 

Board of Directors — If you are interested in serving on the MN REALTORS® Board of Directors, you 

can be appointed through your Local REALTOR ® Association. Our new Fiscal Year 2017 Board will be 

seated on October 19 th . Please contact your Local Association President or call your Board Office to 

find out the local process for these appointments. 

Communications Committee — As an association, we push out lots of information about changes 

in the business environment, forms changes, regulatory concerns, education opportunities, and risk 

reduction activities you can implement in your business. Adding emails from NAR, Local, and MLS 

to the number of communications members receive daily creates a challenge in getting anyone to 

read messages and online newsletters. This Committee will focus on improving member contact and 

information dissemination. Apply here. 

Diversity Committee — The purpose of the MN REALTORS® Diversity Committee is to build a fully 

inclusive association through promoting equal opportunity in housing and diversity within the real 

estate industry. Committee members work against discrimination based upon race, color, national 

origin, religion, sex/gender, familial status, handicap, marital status, sexual orientation, and status with 

regard to public assistance. Apply here. 

Executive Committee — This Committee acts in intervals between the Board of Directors meetings 

on personnel, strategic planning, and other managerial issues and is subject to the control and 

direction of the Board of Directors. They meet approximately four times per year and all members of 

the Executive Committee automatically serve on the MN REALTORS® Board of Directors. In Fiscal Year 

2017, there are openings from Regions 1, 3, 5, and 6. (Click here for a Region Map.) Appointments 

will be made by the Board of Directors at their October 19 th meeting, with the term to commence 

immediately upon election. Members interested may apply here. 

Finance Committee — The main focus of this Committee is to set the yearly budget and oversee its 

implementation. This Committee helps determine what functions and programs will be funded for 

the next fiscal year. Members interested in serving on this Committee must understand profit and loss 

statements and have financial knowledge or background. This Committee meets one time a year in 

early May. The slate of candidates will be forwarded to the Executive Committee for final selection of 

these positions. Members interested in serving can apply here. 

Forms Committee — The objective of the MN REALTORS® Forms Committee is to create and 

evaluate recommended forms for use by our REALTOR ® membership. Members who are interested in 

serving may apply here, and appointments will be made from the applications received. 

Commercial Forms Sub-Committee — In addition to its regular Committee, the Forms Committee 

is also seeking volunteers to serve on its Commercial Forms Sub-Committee. This Sub-Committee 

will meet at least once during the year to review the Commercial Forms and make any necessary 

modifications. If you have experience in this area, please apply here. 

continued on next page 


continued from previous page 

Governmental Affairs Committee — This Committee discusses, evaluates, and recommends 

legislation and public policies affecting the real estate industry. If you are interested in serving, please 

apply here. 

Member Engagement Committee — This Committee looks at strategies and plans that provide 

more member involvement and networking. Apply here. 

Nominating Committee — Members of this Committee meet twice a year to approve candidates for 

the positions of President-Elect and Treasurer plus the MN REALTORS® representatives to the NAR 

Board of Directors. The slate of candidates is forwarded to the MN REALTORS® Board of Directors for 

final selection to these positions. Apply here. 

Professional Development Committee — The most common concerns among members is 

the professionalism level of members. This Committee looks at ways the MN REALTORS ® can 

help increase professionalism in the real estate industry and in the eyes of the consuming public. 

Education and the REALTOR ® Code of Ethics are not the focus of the Committee, instead they focus 

on ways beyond CE to shape the professionalism of MN REALTORS ® . Apply here. 

Professional Standards Committee — The objective of this Committee is to promote honesty, 

integrity, fairness, and competence and to resolve controversies on the basis of informed judgment 

of one’s peers. Applicants must be a REALTOR ® member for a minimum of three years and will be 

required to attend a MN REALTORS® training program to serve on the Committee. Members who 

are interested in being considered to serve on this Committee can apply here. Appointments will be 

made from the applications received. 

Professional Standards Policy Committee — This Committee generally meets twice a year to 

consider proposed changes to the National Association of REALTORS ® Code of Ethics and Arbitration 

Manual and other pertinent issues pertaining to implementation of Professional Standards. 

Apply here. 

Public Advocacy Committee — The Public Advocacy Committee coordinates, reviews, and 

recommends all Minnesota proposals for NAR’s REALTOR ® Party funding. It establishes guidelines for 

uniformity in messaging and membership maximization of REALTOR ® Party funding. The members 

of the Public Advocacy Committee are elected from the Governmental Affairs Committees and 

RPAC Trustees plus four regional representatives. For more information, contact Christine Berger at 

cberger@mnrealtor.com. 

Risk Management Committee — The main objective of this Committee is to address, recommend, 

and advocate policy on legal, liability, or dispute resolution issues concerning the real estate industry 

that best serves the interests of the members of MN REALTORS®. This Committee also evaluates 

requests for funds from the MN REALTORS® Legal Defense Fund, or other extraordinary legal 

services, and makes recommendations to the Executive Committee and/or Board of Directors for final 

action. Members who are interested in being considered to serve on this Committee must have a 

legal background or legal experience. Apply here. 

Strategic Thinking Committee — In less than 10 years, the real estate industry has seen significant 

change. Consumers no longer use REALTORS ® as their primary vehicle to find homes for sale. 

Licensing, continuing education, foreclosures, lending practices, etc., have all changed significantly 

over the last decade. The focus of this Committee is to look at these trends, analyze their impact on 

the industry, and communicate them to the membership. Members interested may apply here. 


UNAUTHORIZED 

ACCESS TO PROPERTY: 

UNPROFESSIONAL & ILLEGAL 




Legal Counsel 


Sir Edward Coke wrote 

that a person’s house 

is his or her castle and 

safest refuge. 

This ancient legal 

principle, that no one 

can enter your home 

unless invited (or with proper legal cause) 

and that the home is a sacred place, 

was so important to the citizens of the 

United States, that we referenced the 

importance of the security of the home 

in the Fourth Amendment to the United 

States Constitution. This legal principle is 

also reflected in the National Association of 

REALTORS® Code of Ethics, Articles 1 and 

3, that each REALTOR® agrees to follow. 

REALTORS® must always remember that, 

even when a person is going to sell their 

“castle,” the sanctity of their home should 

never be violated. Unauthorized access 

to listed property is a very serious matter 

that is not only a violation of the Code of 

REALTORS® shall not 

access or use, or permit 

or enable others to 

use, listed or managed 

property on terms or 

conditions other than 

those authorized by 

the owner or seller. 

Ethics and MLS rules, 

but also could lead to 

criminal and civil actions 

against brokers and 

salespersons. 

Needless to say, a few 

bad actors on an issue 

this import hurts the professional image of 

every REALTOR®, so let’s review why it is 

important for all REALTORS® to ensure they 

have authorized access on the time and 

date they are arriving at a listed property 

BEFORE setting foot on that property. 

Code of Ethics 

Even when “no one was harmed,” “the 

property was vacant,” or “you were only 

10 minutes late,” you may still be found in 

violation of the Code of Ethics if you access 




or allow others to access property without 

the proper authorization. 

Article 1 

Article 1 of the Code of Ethics requires, in 

part, that REALTORS®, when representing 

a buyer, seller, landlord, tenant or other 

client as an agent, protect and promote the 

interests of their client and treat all parties 

honestly. More specifically, Standard of 

Practice 1-16 states that “REALTORS® shall 

not access or use, or permit or enable 

others to use, listed or managed property 

on terms or conditions other than those 

authorized by the owner or seller.” 

Therefore, as a seller’s 

broker, you first need 

to ensure you have the 

seller’s permission to 

access the property and 

are authorized by the 

seller to allow others 

to access the property. 

You should also have 

a clear understanding 

of the seller’s terms or 

conditions for access 

to the property before 

accessing or authorizing 

others to access the property, including 

the protocol the seller prefers for approving 

requested showings. 

Note that the Forms Committee has added 

new language to the 2016 revision of 

the Listing Contract clarifying the seller’s 

authorization for access to their property 

during the listing. 

Article 3 

Standard of Practice 3-9 

prohibits REALTORS® 

from providing access 

to listed property on 

terms other than those 

established by the 

owner or listing broker. 

Article 3 of the Code of Ethics requires 

REALTORS® to cooperate with other 

brokers, except when cooperation is not 

in the client’s best interest. Standard of 

Practice 3-9 prohibits REALTORS® from 

providing access to listed property 

on terms other than those established 

by the owner or listing broker. If you 

are representing or working with the 

buyer, you may not access or allow 

others to access the property without 

prior authorization from the seller or the 

seller’s broker (as applicable). As a buyer’s 

representative, you should also clarify 

and obtain permission from the seller or 

seller’s broker for the 

type of access you are 

requesting, whether 

that is a showing with 

your buyer at the date 

and time of the request; 

access for only the 

inspector and the current 

buyer; or access after 

final acceptance of a 

purchase agreement 

for measurements or 

determining new paint 

colors. Make certain 

your buyer understands that even after 

they enter into a purchase agreement 

and before the property closes, they 

do not have the right to freely enter the 

seller’s property. In no event should a 

buyer’s broker allow a buyer to make any 

modifications to the property or move in 

prior to closing without first obtaining a 

written agreement between the buyer and 

the seller. Remember, although the buyer 

has an equitable interest in the property 

after final acceptance of a purchase 




agreement, the seller still owns the 

property until the deed is transferred. 

Criminal Code: Trespass 

REALTORS® should also be aware that 

the Minnesota criminal code (MN Statute 

609.605, Subd. 1 (b) (4)) states that a 

person who intentionally “occupies or 

enters the dwelling or locked or posted 

building of another, without claim of right 

or consent of the owner 

or the consent of one 

who has the right to 

give consent…” is guilty 

of a misdemeanor. The 

consequences for this 

criminal act include 

imprisonment up to 

90 days, or a fine up to 

$1,000, or both. You 

do not want to be the 

person who has entered 

the property without 

authorization only to be 

confronted by the police 

and facing the possibility 

of criminal trespass 

charges by the seller. 

Civil Claims 

In addition to potential criminal charges, 

a REALTOR® could face a civil lawsuit 

by property owners for such trespass. In 

Minnesota, a trespass is committed where a 

plaintiff has the “right of possession” to the 

land at issue and there is a “wrongful and 

unlawful entry upon such possession by 

defendant.” 

All Am. Foods, Inc. v. Cnty. of Aitkin, 266 

N.W.2d 704, 705 (Minn.1978) (citation 

omitted) 

A person that 

intentionally “occupies 

or enters the dwelling 

or locked or posted 

building of another, 

without claim of right or 

consent of the owner or 

the consent of the one 

who has the right to 

give consent,” is guilty 

of a misdemeanor. 

Real Estate License Law 

Unauthorized access may also be deemed 

a violation of your real estate licensing 

statute. If you are found in violation of 

any provision of MN Statute Chapter 82, 

you are guilty of a gross misdemeanor; 

the Department of Commerce has the 

ability to impose a civil penalty not to 

exceed $10,000 per violation, and may 

deny, suspend, or revoke your authority or 

license, or censure you. 

Real estate brokers 

and salesperson have 

the privilege to help 

consumers sell their 

home. Accessing listed 

property requires some 

basic respect and 

simple common sense. 

Good communication 

will alleviate any 

potential for more 

serious consequences. 

Simply remember that 

even listed property is 

someone’s “castle” and 

“safest refuge.” If you 

wish to access another 

person’s property, you 

must have the proper consent. If you will 

not be able to make your approved access 

time, contact the seller or seller’s broker 

to inform them. If you wish to reschedule, 

ensure that your rescheduled time has 

been confirmed before entering the 

property. Consumers reasonably expect 

that REALTORS®, licensees that voluntarily 

agree to hold themselves to a higher 

standard of ethics, will have permission 

and use proper discretion when accessing 

and allowing others to access their “safest 

refuge.” 


E&O Risk Manager 

HELPING REAL ESTATE PROFESSIONALS REDUCE THEIR CLAIM EXPOSURES 

Tenant Sues Agent for Breach of Fiduciary Duty — A Real-Life Situation 

on the Importance of Consulting an Expert 

Situation: 

A well-known, highly successful 

residential real estate agent 

received a request from a light 

manufacturer to help locate a 

new business space to rent. The 

agent had been selling homes for 

nearly 20 years, and he welcomed 

the opportunity to finally put his 

commercial real estate license 

to use. 

Problem: 

Though widely considered an expert in 

residential transactions, the agent was 

inexperienced in commercial real estate. 

Mistake: 

The agent located a great space in an 

old, converted factory that housed 

dozens of similar manufacturing 

operations. While negotiating the 

contract, the agent misunderstood 

the true extent of the Common Area 

Maintenance (CAM) provision. He thought 

that CAM charges only applied to general 

maintenance expenses like landscaping 

and snow removal. 

Result: 

About a year into the lease, the building 

owner notified the tenants that he 

planned to replace the aging roof with a 

new one. At first, the light manufacturer 

was pleased that his new landlord was 

investing in capital improvements. 

However, when he learned from other 

tenants that the cost would be included 

as part of the CAM fee, he reviewed the 

contract and discovered that it failed to 

detail what expenses would (or would 

not) be included. He then consulted a real 

estate litigation lawyer who informed 

him that his agent should have taken 

steps to protect him as a tenant by adding 

restrictions and/or a spending cap into 

the provision. The lawyer also stated that 

the agent’s misunderstanding of the CAM 

charges, thinking they were only limited 

to general maintenance, was in direct 

conflict with the contract language. A 

lawsuit was brought against the agent 

alleging breach of fiduciary duty, among 

other theories of liability. 

Prevention: 

Mistakes often occur when real estate 

professionals practice outside their area 

of expertise. In this case, the agent should 

have consulted a commercial real estate 

expert, even if it necessitated the payment 

of a fee or a share of the commission. This 

could have saved the agent from a costly 

lawsuit and a compromised reputation. 

Word travels fast in real estate circles, 

especially if an agent or broker fails to 

properly protect a client. 

The recommendations in this article may differ from state 

and local practices. Greenwich Insurance Company and 

Indian Harbor Insurance Company coverage is not available 

in all jurisdictions. 

E&O Marketed & Administered by: 

800.447.4982 | pearlinsurance.com 

Copyright © 2016 Pearl Insurance/XL Catlin 

162259-6MN

LEGAL HOTLINE Q & A 




Legal Counsel 


Q 

Can 

A 

Agents 

an agent who is also an attorney put 

“attorney at law” on his or her business 

card? 

should always discuss advertising 

decisions with their brokers; however, 

there is no law or Code of Ethics provision 

that would prohibit placing additional 

licenses or qualifications on a business 

card, so long as they are true. 

Jonathan C. Kopecky, JD 

Associate Legal Counsel 

jkopecky@mnrealtor.com 

Anne V. Kealing, JD 


akealing@mnrealtor.com 

Ryan E. Hamilton, JD 


rhamilton@mnrealtor.com 

Q 

Can 

A 

Technically, 

REALTORS® advertise their 

commission rates publicly? 

real estate licensees are 

not prohibited from advertising their 

commission rates or structure in a truthful 

manner. (See MN Statute 82.81, Subd. 

12(8) for more information on prohibited 

actions.) Article 12 of the Code of Ethics 

also allows such advertising, so long as 

anything presented shows a true picture — 

the REALTOR® cannot advertise in such a 

way that leads consumers to believe they 

will receive a certain rate when they may 

not receive that rate (e.g., bait and switch). 

Nevertheless, if a REALTOR® chooses to 

use this technique, he or she should know 

that there is a history of anti-trust litigation 

with the U.S. Department of Justice 

surrounding price-fixing of commission 

rates among brokers. Make sure that your 

brokerage establishes fees unilaterally 


Minnesota REALTORS® — Supporting YOUR Success


Q 

Is 

A 

A 

without consultation or discussion 

with persons affiliated with other 

competing brokerages. 

it permissible to advertise a 

“pocket listing” to other agents 

in the same brokerage (or only to 

certain agents in the marketplace, 

whether at the same brokerage 

or not) when the property is not 

visible to all REALTORS®? 

property may be advertised for sale 

only after a real estate licensee has 

obtained written authorization to do 

so from the owner or another person 

authorized to offer the property 

for sale or lease. MN Statute 82.66 

provides the required contents of 

any listing contract. The decision 

to advertise a listing internally, or to 

a limited group of people, should 

not be the decision of the agent; 

rather, it should be the decision of 

the owner. The agent should discuss 

the potential advantages and 

drawbacks with the owner prior to a 

decision being made. For instance, 

if a brokerage is offering a reduced 

commission rate if another agent of 

the same brokerage is the buyer’s 

agent or facilitator, the owner may 

want to attempt an “in-house” sale 

to avoid paying a higher commission 

rate. The owner might also wish to 

avoid broad advertising to preserve 

privacy or avoid inconvenience. 

However, limiting the market of 

potential buyers could also reduce 

the competition, and thus, the sale 

price of the property. Ultimately, if 

the owner determines that this is 

the route he or she wishes to take, 

the agent will want to document 

this decision in writing (and may 

be required to provide such a 

writing to the Multiple Listing 

Service). Furthermore, any attempt 

a REALTOR® makes to persuade a 

client to withhold from listing the 

property on the MLS or broadly 

advertising it to the general public, 

may raise questions as to their 

reasons and ultimately be a potential 

violation of Article 1 of the Code 

of Ethics, as the REALTOR® may 

be seen as acting in his or her own 

best interest rather than the client’s. 

Because REALTORS® are required 

to cooperate with other brokers, 

except when such cooperation is 

not in the best interest of their clients 

under Article 3 of the Code of Ethics, 

it could also be a potential violation 

of Article 3. Finally, such a listing 

could potentially raise issues with 

respect to the Fair Housing Act, as 

certain groups of clients that may be 

unserved or underserved within the 

group of REALTORS® to whom the 

property is marketed. (Note that if the 

property is marketed only to certain 

agents at competing brokerages 

who agree to share their pocket 

listing with each other and no one 

else, this could also become an antitrust 

problem.) 

NOTICE: Real Estate Brokers and Salespersons are invited to submit questions to the Minnesota REALTORS ® that they 

would like answered in the Legal Hotline Column. You can email requests to Heather Zebott at 

hzebott@mnrealtor.com. Please indicate that your question is for the Legal Hotline Column. 

Questions submitted will NOT be directly answered. 


Congratulations, New GRI Designees 

Todd Johnson 

Edina Realty 

Paul Frye 

Lakes Area Realty 

Robert Carlson 

Coffee House 

Real Estate 

David Funck 

Keller Williams 

Premier Realty 

Marjorie Daniels 

Edina Realty 

Aklilu Dunlap 

Coldwell Banker 

Burnet 




Minnesota is the #4 state 

by percentage of REALTORS® who have 

earned their GRI Designation! 

Don’t Be Left Out! 

Watch this fall for the schedule of GRI Classroom offerings. 

Learn how you can earn the GRI Designation HERE. 

You may have already earned credits towards YOUR GRI: 

• The 2011-12 DOC-required module, Residential Leasing, fulfills one elective 

• The 2012-13 module, Contracts portion, fulfills one required course 

• The 2012-13 module, Distressed Properties portion, fulfills one elective 

• The 2013-14 module, Risk Management, fulfills one required course 

• The 2015-16 required module, Fair Housing, Agency, and Legal Update, also meets a 

requirement 

• This year’s 2016-17 required module, Residential Contracts, fulfills a requirement 

If your license is inactive after the June 30 th 

compliance/renewal deadline, find out what you 

can do on page 22 of the July REsource. 

For further information on state licensing, including fees and renewal, go to: 

http://mn.gov/commerce/licensees/real-estate/020-renewals.jsp. 


Counsel’s Roundtable 

for Minnesota Brokers & Managers 

Broker Testimonials: 

— This was the first remote Roundtable I have attended, looking forward to more. Being 

out-state getting this information without having to travel is great. Brad Boyd always 

does a great job of delivering the information. 

— Each time I heard [Brad] I walk away with new and useful information. 

— Brad clearly cares about helping us brokers understand our risks and be prepared. 

BROKERS: Attend the popular Counsel’s Roundtable 

In Your Home or Office 

If you’ve been missing the popular “Counsel’s Roundtable” events because of the long 

drive, we have a solution for you: 

Attend via webinar and skip the drive. 

You will still be able to comment or ask Brad questions just as if 

you were in the room. All you need is a computer and internet or 

smartphone. 

Just call Katie Kuhn at 952.912.2673, or email her at 

kkuhn@mnrealtor.com, and let her know you’re interested. You 

can help us as we make plans for our 2016-17 calendar by letting 

us know what topics you’re interested in: 

Managing Broker Risks in Today’s Real Estate Environment 

Independent Contractors vs. Employees 

When DOC Enforcement Knocks on Your Door 

OR let us know what topic would serve your broker 

management needs. 

We’ll put you on our waiting lists and contact you with scheduling 

and registration information as our plans develop. 

Brad Boy, Esq. 

Fafinski Mark & Johnson 

Contact: Katie Kuhn 

952.912.2673 or kkuhn@mnrealtor.com 


REALTOR® Day at the Minnesota State Fair 

Monday, August 29, 2016 from 8:00 AM to 2:00 PM 

Show your REALTOR® pride at the first annual 

REALTOR® Day at the Minnesota State Fair. 

Bring your friends, family, and colleagues and represent your industry in front of thousands of fairgoers 

at the “Great Minnesota Get Together.” Your local and state associations will have fun activities 

and a few surprises planned for you to add to your state fair experience. Activities and special events 

will be taking place between 8am and 2pm at the Horton Pavillions at Hefron Park. 

Register here to let us know you’re coming — all REALTOR® attendees and their guests will receive a 

FREE t-shirt to wear at the event. Your registration does NOT include entrance into the fair. 

This event was made possible in part by the following sponsors: 

Coliseum Sponsor 

Liberty Title 

Midway Sponsors 

At Home Title 

Cardinal Realty 

InspectAll 

Wells Fargo Home Mortgage 

Bandshell Sponsors 

InspectAll 

Mutual of Omaha Financial Advisors 

Bazaar Sponsors 

SPAAR Community Engagement Committee 

This event is brought to you by the Minnesota REALTORS®, 

Saint Paul Area Association of REALTORS®, and the Minneapolis Area Association of REALTORS®. 


JUNE SEEMED TO BE ALL ABOUT 

SUPPLY & DEMAND 

Carrie Andersen 

Vice President, 

Member Services 

candersen@mnrealtor.com 

The month of June seemed to follow the Economics 101 rules of supply and demand. With 

new listings continuing to trend down 2.0% over the same time last year, anyone selling their 

home is selling it quickly, and finding the median and average sales prices climbing upward 

due to buyers not having much to choose from. 

During June, homes for sale were selling in 54 days. This is an 11.5% decrease over 2015. 

Additionally, buyers are paying more for their purchases. The median sales price rose 6.1% to 

$218,500, and the average sales price jumped 4.5% to $243,548. 

The closed and pending sales slowed down a bit in June. Closed sales ended up at 10,201 

units and pending sales ended up at 8,911 units. This is down .4% and .6% respectively. 

These numbers still make for a very robust housing market throughout the state. 

“The lack of inventory continues to be the issue in the marketplace that we hear the most 

about,” said Chris Galler, CEO of the Minnesota REALTORS®. “It is absolutely a seller’s market 

out there right now.” 

Download the June Minnesota Housing Report HERE. 





LEGISLATIVE UPDATE 

Paul Eger 

Vice President, 

Governmental Affairs 

peger@mnrealtor.com 

@paul_eger 

Ryan E. Hamilton, JD 


rhamilton@mnrealtor.com 

The sun is bright, flowers are blooming, and boats are on the lakes. Summer is in full swing! 

It’s also time to learn about new laws enacted during the recently concluded Legislative 

Session. The Minnesota REALTORS® 2016 Legislative Update is now available. This 

comprehensive publication provides summaries and links to the policy proposals, bills, 

and new laws of interest and importance to REALTORS®. Tax Policy, “drop homes”, license 

renewal policy, Department of Commerce investigation policy, and many other key issues 

and topics are covered so that you have the latest information regarding what passed, what 

didn’t pass, and what issues you will likely be hearing about leading into the 2017 Legislative 

Session. Please take the time to review this important information and familiarize yourself with 

the legislative issues relevant to your business and homeownership. Click here. 


Honoring Political Involvement 

Ed Anderson Award Applications Due by August 31 st , 2016 

With all of the time constraints placed upon us in today’s busy 

world, finding time to become politically active in order to 

benefit your industry is very honorable. That was the genesis 

and inspiration behind the Ed Anderson Political Achievement 

Award. An award designed to honor Minnesota REALTORS ® 

who have contributed time, knowledge, and resources to the 

preservation of the real estate industry. 

If you know of a Minnesota REALTOR ® who is active in politics 

and works to better the industry through their involvement, 

please submit an application on their behalf so they can be 

considered for the 2016 Ed Anderson Award. Submit your 

Nominee here! 

The recipient of the Ed Anderson Political Achievement Award 

will be announced at the October 18 th Leadership Reception. 

If you have any questions, please contact Christine Berger at 

cberger@mnrealtor.com. 

Past Ed Anderson Recipients: 

1999: Jim Stanton North Metro 

2000: Marjorie Nolan Greater Lakes 

2001: Dave May Southern Twin Cities 

2002: Jerry Teeson North Metro 

2003: Fran Davis Minneapolis Area 

2004: Bill Tschohl Southern Twin Cities 

2005: Tom Meilander Southeast Minnesota 

2006: Jim Cormier North Metro 

2007: Barry Gillespie Southeast Minnesota 


2009: John Anderson Minneapolis Area 

2010: Deanna Wiener St. Paul Area 

2011: Dan Wagner Southeast Minnesota 

2012: Lynn Leegard St. Paul Area 

2013: John Smaby Minneapolis Area 

2014: Patty Zuzek St. Paul Area 

2015: Len Sarvela Duluth Area 


Member Profile: 

Christine Culbert, 

Culbert Realty, Virginia 

How long have you been a REALTOR®? 

I was licensed in 1988 — I have been a 

REALTOR® for 28 years, and a real estate 

Broker for 25 years. 

What communities do you serve? The 

communities we serve stretch from the Ely 

area to Crane Lake and down to Cotton, 

primarily. 

What area of real estate do you specialize 

in? Throughout my real estate career, I have 

specialized primarily in the listing and sale of 

residential properties. However, I have been 

involved and helped with commercial real 

estate, the sale of businesses, land, and lake 

property as well. 

What value do you receive from the 

REALTOR® Organization? The value I 

receive from the REALTOR® Organization is 

immeasurable. The REALTOR® Organization 

is the foundation for all we do in real estate. 

Through the Code of Ethics, we are provided 

with the professional framework from which 

to serve and conduct our business. We are 

provided with legal services, the Multiple 

Listing Service, and the latest technology 

tools to keep up in a rapidly changing 

environment. The REALTOR® Organization 

is a total support system for the REALTOR®/ 

Broker. 

As a volunteer, how has being involved 

with the REALTOR® Organization helped 

your business? As a volunteer in the 

community, being involved with the 

REALTOR® Organization has given me the 

exposure and credentials to be viewed 

as a real estate professional. Through 

participation in the community, I have 

gained many new friends and clients, which 

has allowed me to help them as buyers 

and sellers in their real estate pursuits. As 

a volunteer in the REALTOR® Organization, 

through serving as President of the Range 

Association of REALTORS® several times, and 

also as a Director on the Board of Directors, 

I have been privileged to gain many new 

friendships and learning experiences. The 

more I am involved in the Organization, the 

more I have come to value and appreciate 

the benefit that the REALTOR® Organization 

provides to each of us. 

In the last year, what have you done to 

improve your real estate knowledge? 

There is never a dull moment in the real 

estate industry — it is truly exciting and 

interesting. I believe that one has to keep 

learning and improving one’s skills in order 

to keep up with the rapid changes in today’s 

world. In the past year, I have taken the 

required module and real estate continuing 




education classes. I also serve on the 

Professional Standards Committee because 

I want to keep learning so that I can improve 

my understanding and knowledge, and also 

to help my fellow REALTORS®. 

What advice would you give to a new 

REALTOR®? My advice to a new REALTOR®: 

Always be honest, continue to improve your 

skills, work at your career every day, and 

don’t get discouraged. 

Where do you turn for real estate advice 

and answers? For real estate advice, I often 

turn to my husband, who was a Broker and 

Appraiser for 40 years. I also consult with my 

daughter, who is also a Broker in our office; 

and trusted colleagues in the real estate 

industry. For legal advice, I will call the Legal 

Hotline or ask my friend, who is a real estate 

attorney in my city. 

What aspect of being a REALTOR® do you 

enjoy the most? What I enjoy most of being 

a REALTOR® is helping a seller or buyer 

through a real estate transaction — being 

able to serve and guide them through one of 

the most important decisions they will ever 

make. 

How do you manage the work/life 

balance? Managing the work/life balance 

can be tricky, especially in this business. I 

have learned to take time for myself to “refuel.” 

Taking time out for a vacation, and 

enjoying family and friends. As tough as 

it is sometimes, a REALTOR® must try to 

“manage” his/her business as opposed to 

letting the business “run” him or her. 

What significant changes have you seen in 

your market over the last 5 years? Perhaps 

the most significant changes in the market 

in the last 5 years is the prevalent use of 

the internet by the public in the search for 

real estate. Buyers and sellers are much 

more educated about property than ever 

before. Vast amounts of information is readily 

available to consumers and REALTORS® at 

the touch of a button, primarily through the 

use of the iPhone. 

If you could meet any fictional character, 

who would it be? The Fictional Character 

I would love to meet is Wonder Woman. I 

admire her strength of character, and her 

integrity and willingness to use every effort 

to help those in need, without trying to find 

glory for herself. 

Which words or phrases do you most 

overuse? I am now overusing the phrase 

“perfect” and “absolutely.” 

Any hobbies? Hobbies I enjoy are reading, 

gardening (flowers), walking, traveling, 

spending time at the lake, biking, and 

spending time with my children and 

grandchildren. 

What is the most valuable thing you’ve 

learned from your parents? The most 

valuable thing I learned from my parents 

is to be kind to others, be patient and 

understanding, and to be a good listener. 

You are a tour guide for the city you live 

in. What sites would you recommend to 

someone who’s never visited the area? 

I live in the city of Virginia....I would 

recommend a visitor to walk around our 2 

lovely lakes, visit the beautiful Olcott Park 

and Greenhouse, the Virginia Historical 

Society, Mesabi Community College, and the 

surrounding area. We are in the heart of the 

Iron Range — the home of iron ore mining. 

It is very interesting. We will soon have the 

highest bridge in Minnesota right here!! 

What nickname does your city have? 

Virginia is called “The Queen City”. 


MN-RPAC UPDATE 

Christine Berger 

Vice President, Political Affairs 

cberger@mnrealtor.com 

Kevin Zabel 

Director, Political Affairs 

kzabel@mnrealtor.com 

www.mnrpac.org 

REALTOR® Strength 

Yields a Win! 

During the month of July, more than 139,000 

REALTORS® nationwide, and more than 3,100 

REALTORS® herein Minnesota, encouraged 

the U.S. Senate to pass H.R. 3700, the Housing 

Opportunity through Modernization Act. 

The U.S. Senate heard you and on July 15 th , 

passed H.R. 3700 unanimously and sent it to 

President Obama for his signature. 

The Housing Opportunity through 

Modernization Act will go a long way in 

opening up the FHA condo loan program to 

first-time buyers, while also making critical 

reforms to the Rural Housing Service. 

We can add H.R. 3700 to the long list of 

legislation that became law because of the 

strong, unified voice of the REALTOR® Party. 

To have future calls-for-action immediately 

sent to your mobile device, sign up for 

REALTOR® Party Mobile Alerts! 

The REALTORS® Come-a-Callin’ 

Earlier this spring and into early summer, 

RPAC hosted phone banks across the state. 

At one phone bank, a REALTOR® volunteer 

asked “Just to be clear, in case someone 

asks, what does R-P-A-C stand for?”. Before 

we could answer with “REALTOR® Political 

Action Committee”, a volunteer offered up 

an alternative — “REALTORS® Protecting All 

Clients”. 




Simple, but direct. RPAC works to protect 

REALTOR® clients. 

Keep an eye out for phone banks to be 

popping up across the state again this fall. 

If you are interested in volunteering for a 

2 hour shift in your community — no long 

drives, no day-long commitments, and free 

food — to help RPAC hit our 2016 goals, 

please reach out to your local Association 

Executive for more information. Wondering 

how much fun our phone banks are? 

Watch this video! 

‘RPAC @ the Ballpark’ 

On July 25 th , the MN-RPAC Major Investors 

and Industry Leaders had an opportunity to 

enjoy an evening of baseball with ‘RPAC @ 

the Ballpark.’ During the event, attendees 

were treated to a barbecue dinner in the 

StarTribune Skybox, as well an opportunity 

check out the 2 nd year home of the St. Paul 

Saints CHS Field, in downtown St. Paul. An 

evening of fun was capped off by a 16-0 

win over the Sioux City Explorers. 

If you are interested in finding out how you 

can become a MN-RPAC Major Investor and 

attend events similar to these in the future, 

please contact Kevin 

(kzabel@mnrealtor.com) or Christine 

(cberger@mnrealtor.com) for more 

information. 

Contributions are not deductible for income tax purposes. Corporate contributions are not acceptable by MN-RPAC and 100% will 

be allocated to the NAR Political Advocacy Fund. Contributions to RPAC are voluntary and are used for political purposes. You may 

contribute more or less than the suggested amount. You may refuse to contribute without reprisal, and the National Association 

of REALTORS® or any of its state associations or local associations will not favor or disfavor any member because of the amount 

contributed. Contributions under $1,000 will be provided 100% to MN-RPAC for use in state and local elections. For contributions 

totaling $1,000 or more, 70% is used by MN-PAC to support state and local political candidates and 30% is sent to National RPAC 

to support federal candidates and is charged against your limits under 52 U.S.C. 30116. For further information concerning RPAC 

contributions, please contact Chris Galler, RPAC Treasurer at cgaller@mnrealtor.com. 

BE PART OF THE NETWORK. 

Tens of thousands of REALTORS ® now receive 

REALTOR ® Party Mobile Alerts. Do you? 

These REALTOR ® members get exclusive opportunities to take 

action on important real estate issues. Don’t miss out. 

Click here to sign up or text the word “network” to 30644 

SIGN UP 


Major Investor Spotlight: 

Mike Hunstad 

Counselor Realty, Coon Rapids 

What one benefit of becoming a Major 

Investor most appeals to you? 

I really enjoy the access it provides to 

legislators. It’s unparalleled. 

How has government and your 

investment in RPAC impacted your daily 

business? 

My investment in RPAC has educated 

me in how important it is for everyone to 

be involved and have your voice heard. It 

really does make an enormous difference in 

protecting real estate. 

What piece of advice would you offer to 

new REALTORS® who are just starting out 

in the business and are unsure of how 

RPAC will impact their business? 

I would tell them that their investment in 

RPAC will help to protect their livelihood 

and that it depends on it. On a personal 

note, it will also help protect property rights 

for generations to come. 

One unique thing about you that fellow 

RELATORS® might not know. 

I moved around the state a lot growing up 

(AND I hated it!), but, I think it has made me 

a better people-person. 


WHERE WILL YOU BE 

WHEN YOU GET THE 

CALL FOR ACTION? 

As a busy professional on the go your 

phone. Fewer and fewer of us are tied 

to a traditional desktop or laptop 

anymore to complete the functions of 

our work. Smartphones and tablets are 

how we increasingly manage our 

information and daily tasks. 

THE REALTOR® ACTION CENTER MOBILE APP – DON’T JUST GET IT – USE IT! 

DOWNLOAD AND LOGIN TODAY 

The REALTOR® Action Center mobile app contains a host of features to help you VOTE, ACT and INVEST on the go: 

MOBILE ADVOCACY 

When there is a Call for Action you will 

alerting you. The new mobile action alert 

format will make your participation a snap. 

summaries of the issue and why your action 

is important. 

ACTION PROFILES 

The app will contain a summary of your 

REALTOR® Party engagement. A list of open 

action items, actions you have already 

taken, your current year’s RPAC investment 

amount, and more. 

INVEST IN RPAC 

Through the REALTOR® Party mobile app 

you can easily make an investment in RPAC 

on your mobile phone. To help you plan 

your investment amount, your action 

profile displays your total amount invested 

year to date. 

ADVOCACY REPORTS 

Track how your state and local associations 

Help us reach our annual 15% goal! 

SURVEYS 

Take important REALTOR® Party surveys on 

your phone. 

REALTOR® PARTY TRACKER 

Learn how your state and local association 

is using NAR programs to build political 

strength in your own backyard. Find out 

what tools and programs NAR is providing 

your association and how much money 

those programs cost. 

To download, text “App” to 30644 and remember to login! 


NAR-BACKED CONDO LEGISLATION 

PASSES U.S. SENATE, OFFERS RELIEF 

FOR HOMEBUYERS 

www.realtor.org 

The U.S. Senate recently passed H.R. 

3700, the “Housing Opportunity Through 

Modernization Act,” by unanimous 

consent. This legislation includes reforms 

to current Federal Housing Administration 

restrictions on condominium financing, 

among other provisions, and is long 

supported by the National Association of 

REALTORS® (“NAR”). 

Changes include efforts to make FHA’s 

recertification process “substantially less 

burdensome,” while lowering FHA’s current 

owner-occupancy requirement from 50% to 

35%. The bill also requires FHA to replace 

existing policy on transfer fees with the 

less-restrictive model already in place at the 

Federal Housing Finance Agency. 

NAR testified last year in support of 

the bill, which passed in the House of 

Representatives 427-0 in February. 

Tom Salomone, President of NAR and 

broker-owner of Real Estate II Inc. in Coral 

Springs, FL, praised the legislation as a 

significant step towards eliminating barriers 

to safe, affordable mortgage credit for 

condos. 

Following is a statement from Mr. 

Salomone: 

“Condominiums often represent 

an affordable option that’s just right 

for first-time and low-to-moderate 

income homebuyers. Unfortunately, 

overly-burdensome restrictions on 

condo financing have for too long 

put that option out of reach for many 

creditworthy borrowers. 

“This legislation meets those restrictions 

head on, putting the dream of 

homeownership back in reach for more 

Americans. 

“Tight inventory and rising home prices 

are a reality of today’s market, and 

mortgage credit is hard to come by. We 

should take every opportunity to clear 

the path for well-qualified borrowers to 

purchase a home when they’re ready, 

and this legislation does just that. 

“Sens. Tim Scott (R-S.C.) and Robert 

Menendez (D-N.J.) have done 

tremendous work to see H.R. 3700 move 




forward, and we’re thankful for their 

support. REALTORS® made their voices 

heard as well, reaching out to their 

Senators and Representatives to remind 

them of how important this issue is to 

homeownership.” 

“We look forward to seeing this 

legislation signed into law so 

homebuyers can start seeing some 

much-needed relief.” 

Reprinted with permission by the National Association of 

REALTORS® from REALTOR.org. 

© 2016. All rights reserved. 

The 2017 National Land Conference 

Charlotte, NC | March 31-April 2 

Early Bird Rates 

August 1- December 31, 2016 

Access to 300 

Expert Land Professionals 

6 Break-out Sessions 

With Expert Speakers 


INTERNATIONAL HOME SALES 

DOLLAR VOLUME RETRACTS IN U.S., 

CHINESE LEAD PURCHASES 

compared to the median price of all U.S. 

existing home sales ($223,058). 

www.realtor.org 

Waning economic growth in many 

countries and higher home prices further 

enhanced by a strengthening U.S. dollar 

resulted in a slight decline in international 

sales dollar volume of U.S. property over 

the past year, and a significant retreat in 

buying from non-resident foreigners. 

This is according to an annual survey of 

residential purchases from international 

buyers released today by the National 

Association of REALTORS® (“NAR”). The 

survey also amazingly revealed that the 

dollar volume of sales from Chinese buyers 

exceeded the total dollar sales figure of the 

next top four ranked countries combined. 

NAR’s 2016 Profile of International 

Activity in U.S. Residential Real Estate 1 , 

covering U.S. residential real estate sales 

to international clients between April 2015 

and March 2016, found that foreign buyers 

purchased $102.6 billion of residential 

property, a 1.3% decline from the $103.9 

billion of property purchased in last year’s 

survey. Overall, a total of 214,885 U.S. 

residential properties were bought by 

foreign buyers (up 2.8%), and properties 

were typically valued higher ($277,380) 

Lawrence Yun, NAR Chief Economist, 

says this year’s findings highlight the 

tremendous appeal U.S. real estate still 

has on many foreign nationals despite the 

price of property becoming less affordable. 

“Weaker economic growth throughout the 

world, devalued foreign currencies, and 

financial market turbulence combined to 

present significant challenges for foreign 

buyers over the past year,” he said. “While 

these obstacles led to a cool down in sales 

from non-resident foreign buyers, the 

purchases by recent immigrant foreigners 

rose, resulting in the overall sales dollar 

volume still being the second highest since 

2009.” 2 

Adds Yun, “Foreigners — especially those 

from China — continue to see the U.S. as 

a solid investment opportunity and an 

attractive place to visit and live.” 

According to the survey, sales to nonresident 

foreign buyers pulled back by 

approximately $10 billion to the lowest 

dollar volume since 2013 ($35 billion). The 

decline was largely caused by the decrease 

in the share of non-resident foreign buyers 

to foreign residential buyers to 41% — 

down from the almost even split between 

the two in previous years (48% in 2015). 




“Both the increase in U.S. home prices — 

up 6% in March 2016 compared to one 

year ago — and the depreciating value of 

foreign currencies against the U.S. dollar 

made buying property a lot pricier last 

year,” says Yun. “Led by Venezuela (45%) 

and Brazil (24%), at least eight countries, 

including China and Canada, saw doubledigit 

percent increases in the median 

sales price of a U.S. existing-home when 

measured in their country’s currency.” 

For the fourth year in a row, buyers from 

China exceeded all countries by dollar 

volume of sales at $27.3 billion, which was 

a slight decrease from last year’s survey 

($28.6 billion), but over triple the total dollar 

volume of sales from Canadian buyers 

(ranked second at $8.9 billion). Chinese 

buyers purchased the most housing units 

for the second consecutive year (29,195; 

down from 34,327 in 2015), and also 

typically bought the most expensive homes 

at a median price of $542,084. 

“Although China’s currency modestly 

weakened versus the U.S. dollar in the past 

year, it’s much stronger than it was 5 to 10 

years ago, thereby making U.S. properties 

still appear reasonably affordable over a 

longer time span,” notes Yun. 

In addition to the slightly diminished 

sales activity from Chinese buyers, the 

total number of sales and the sales dollar 

volume from buyers from Canada, India 

($6.1 billion), and Mexico ($4.8 billion) also 

retracted from their levels one year ago. 

Only buyers from the United Kingdom — 

after a decrease in the 2015 survey — saw 

an uptick in total sales and dollar volume 

($5.5 billion). 

REsource: August, 2016 

“Sales activity from U.K. buyers could 

very well subside over the next year 

depending on how severe the economic 

fallout is from Britain’s decision to leave 

the European Union,” adds Yun. “However, 

with economic instability and political 

turmoil outside of the U.S. likely to persist, 

the world view of American real estate as a 

safe investment should keep demand firm 

even as pressures from a stronger dollar 

continue to weigh down on affordability.” 

Five states account for half of 

foreign buyer purchases, prices 

and all-cash sales decline 

Slightly over half of all foreign buyers 

purchased property in Florida (22%), 

California (15%), Texas (10%), Arizona, or 

New York (each at 4%). Latin Americans, 

Europeans, and Canadians — who tend to 

buy in warm climates for vacation purposes 

— mostly sought properties in Florida and 

Arizona. California and New York drew the 

most Asian buyers, while Texas mostly 

saw sales activity from Latin American, 

Caribbean, and Asian buyers. 

The median purchase price over the 

survey period was a tad lower ($277,380) 

compared to the 2015 survey ($284,900) 

as a result of the fewer non-resident 

foreign buyers. Overall, foreign buyers 

most commonly purchased a home priced 

between $250,001 and $500,000, while 

10% paid over $1 million or more. 

Exactly half of all international transactions 

were all-cash purchases, which was slightly 

down from a year ago (55%), but still 

roughly double the overall share of existing 

sales. 3 All-cash purchases were more 

common by non-resident foreign buyers 

(73%) and those from Canada, China, and 

the United Kingdom. 

continued on next page


A majority of foreign buyers over the past 

year purchased a single-family home, 

and nearly half bought in a suburban 

area. Two–thirds or more of buyers from 

each China, India, Mexico, and the United 

Kingdom purchased detached singlefamily 

homes, while Canadian buyers were 

the most likely to buy a multi-family home. 

REALTORS® representing 

international clients slightly 

down, growing interest in 

purchasing abroad 

31% of REALTORS® surveyed said they 

worked with international clients, a 

decrease from the 34% share in last year’s 

survey but up from two years ago (27%). 

17% had one to two foreign clients; 5% of 

respondents had six or more. 




This year’s survey asked seller’s agents 

for the first time about their international 

clients who sold residential property. With 

Florida and California leading the way, the 

list of states where foreign buyers sold or 

bought their U.S. property was very similar. 

The median price of a sold U.S. home 

was $245,331, and respondents reported 

several cases of Canadians selling their U.S. 

home to take advantage of the stronger 

U.S. dollar. 

Approximately 14% of responding 

REALTORS® reported that they had a client 

who was seeking to purchase property 

in another country, which is over double 

the amount in last year’s survey (6%). 

Mexico — at almost triple the amount (13%) 

— generated the most inquiries about 

purchasing abroad, followed by Costa 

Rica, Philippines, Colombia, and Canada 

(each at 4%). Most U.S. clients interested 

in buying in another country (87%) were 

looking to use the property as a vacation 

home or residential rental unit. 

“Especially in the local markets attracting 

a hefty share of international buyers 

and sellers such as those in California, 

Florida, and Texas, it’s advantageous 

for REALTORS® to consider earning the 

Certified International Property Specialist, 

or CIPS, Designation,” says NAR President 

Tom Salomone, broker-owner of Real 

Estate II Inc. in Coral Springs, FL. “The 

specialized training on critical aspects of an 

international transaction, such as exchange 

rate, tax issues, and regional market 

conditions, best prepares REALTORS® for 

the increasingly globally connected world 

of real estate.” 

NAR’s 2016 Profile of Home Buying Activity 

in U.S. Residential Real Estate, conducted 

in April 2016, surveyed a sample of 

REALTORS® to measure the share of U.S. 

residential real estate sales to international 

clients, and to provide a profile of the 

origin, destination, and buying preferences 

of international clients, as well as the 

challenges and opportunities faced by 

REALTORS® in serving foreign clients. 

The survey presents information about 

transactions with international clients 

during the 12-month period between April 

2015 and March 2016. A total of 5,960 

REALTORS® responded to the 2016 survey. 

The 2016 Profile of Home Buying Activity 

in U.S. Residential Real Estate can be 

ordered by calling 800.874.6500, or online 

at www.realtor.org/prodser.nsf/Research. 

The report is free to NAR members and 

accredited media, and costs $149.95 for 

non-members. 

1 

The term international or foreign client refers to two 

types of clients: non-resident foreigners (Type A) and 

resident foreigners (Type B). 

Non-resident foreigners: Non-U.S. citizens with 

permanent residences outside the United States. These 

clients typically purchase property as an investment, for 

vacations, or other visits of less than six months to the 

United States. 

Resident foreigners: Non-U.S. citizens who are recent 

immigrants (in the country less than two years at the 

time of the transaction) or temporary visa holders 

residing for more than six months in the United States for 

professional, educational, or other reasons. 

2 

NAR’s international survey began in 2009. International 

sales by dollar volume were the highest in the 2015 

survey at $103.9 billion. 

3 

According to NAR’s REALTORS® Confidence Index as 

of March 2016, cash sales were 25% of existing home 

sales. 

Reprinted with permission by the National Association of 

REALTORS® from REALTOR.org. 

© 2016. All rights reserved 


NEW HOME CONSTRUCTION 

HAS TIMBERLAND 

PRICES TRENDING UPWARD 

Bob King, ALC 

United Country Land & 

Lifestyle Realty 

Anderson, SC 

REALTORS® Land Institute member Bob 

King, ALC, Owner/Broker, United Country 

Land & Lifestyle Realty in Anderson, SC, 

stated that “Timberland prices will be 

trending upward as an increase in new 

home construction drives up softwood 

sawtimber prices. Timberland prices will 

also be rising as more recreational land 

buyers come back into the market.” 

The timberland market is tied strongly 

with new home construction. Since much 

of the commercial timberland acreage 

in the U.S. is dedicated to growing 

softwood sawtimber, overall returns 

for the timberland asset class is tied 

strongly to softwood sawtimber prices. 

These softwood sawtimber prices are 

tied strongly to new home construction. 

Since the new home construction market 

crashed in 2008, we have seen southern 

pine sawtimber prices drop about 40%. 

However, the new home construction 

market is on a slow but sure turnaround. 

To meet the demand for new homes 

over the last fifty years, builders in the 

U.S. have constructed an average of 1.5 

million homes per year. In the eight-year 

period preceding the recession, a large 

oversupply of homes was constructed. 

However, since 2008, the number of new 

homes being built has been so low that 

we could find ourselves in a new home 

shortage unless construction picks up 

substantially. 

King pointed out that “In 2014, the U.S. only 

built 1 million new homes. In 2015, we built 

1.1 million and the National Associations 

of REALTORS® predicts that we will build 

1.3 million new homes in 2016. This is still 

far below the 1.5 million annual average 

that was necessary to meet demand over 

the last fifty years. It will probably be 2018 

before we make it back to the long term 

average of 1.5 million”. 

Even though the turnaround in the new 

home construction market is happening 

slowly, the trend is definitely upward and 

softwood timber prices will improve. King 

predicts that “As timber prices improve, 

and also as the recreational buyers 

continue to come back into the land market 

with the improvement in the economy, we 

will see timberland prices trend upward”. 

Reprinted with permission by the REALTORS® Land 

Institute. © 2016. All rights reserved 


See the Forest 

Through the Trees 

Online August LANDU Courses 

Intro to Land Valuation 

Timberland 

Essentials of Negotiation 

REALTORS® Land Institute 

430 North Michigan Ave. | Chicago, IL 60611 

P: 1.800.441.5263 | E: rli@realtors.org 

Register at: www.rliland.com 

REsource: Month, 201 31

MN REALTORS® 

COMMITTEE REPORTS 

PROFESSIONAL STANDARDS 

COMMITTEE 

Activity Report for June 2016 

9 Ethics complaints received 

5 Moved forward to a hearing 

5 Ethics hearings 

3 Violations found 

0 Arbitration requests received 

0 Moved forward to a hearing 

0 Arbitration hearings 

0 Awards 

0 Mediations 

0 Grievance Committee Appeals 

0 Overturned 

0 Hearing Panel Appeals 

0 Overturned 

The Real Estate Technology Institute 

has decided to open up their weekly 

webinars for FREE to the real estate 

industry. 

These webinars are held every 

Wednesday at 2pm. 

Check out MN REALTORS® Facebook 

page to see what the topic of the week 

is. 

Explore over 500 tutorials, articles, 

product reviews, and more at 

https://reti.us. 

CONNECT WITH 

MINNESOTA REALTORS® 


2016 REALTOR ® 

of the Year 

MN REALTORS® is seeking 

candidates for the 2016 

REALTOR ® of the Year award. 

The Minnesota REALTOR ® of the Year will be announced at the MN REALTORS® Leadership 

Reception on October 18 th . The winner will receive $1,000 to offset expenses to attend the 

NAR Convention in Orlando this November, where the National Association of REALTORS ® will 

recognize our recipient along with REALTORS ® of the Year from other states. 

You can submit as many candidates as you feel are qualified. The MN REALTORS® Management 

Team may also submit candidates. The criterion for the Minnesota REALTOR ® of the Year heavily 

stresses State Association involvement over the last twelve months. Therefore, if you expect 

your nominee(s) to receive strong consideration for the Minnesota REALTOR ® of the Year, he/she 

should be able to document State Association involvement. 

The application form can be found here. All entries must be submitted on the REALTOR ® of the 

Year form. Deadline for applications is August 31 st , 2016. 

Please direct any questions to Carrie Andersen at 952.912.2672 or 800.862.6097, x672 or via 

email to candersen@mnrealtor.com. 

Past Minnesota REALTOR ® of the Year Recipients 

1983: Joe Broich Southern MN 

1984: Don Kvasnicka Southern MN 

1985: Ed Anderson Minneapolis Area 

1986: Frank Kottschade Rochester Area 

1987: Jerry Teeson Anoka County 

1988: Marilyn Stewart Rochester Area 

1989: Dianne Omdahl Anoka County 

1990: Gary Groteboer Rochester Area 

1991: Sandy Patterson Minneapolis Area 

1992: Dick Hexum Rochester Area 

1993: Mark Vanyo Fargo/Moorhead 

1994: Marjorie Nolan Greater Lakes 

1995: David May Southern Twin Cities 

1996: Todd Grill Minneapolis Area 

1997: Howard Sturm Southern Twin Cities 

1998: Sheila Holley Greater Lakes 

1999: Shirlee Heitz North Metro 

2000: John Anderson Minneapolis Area 

2001: Jim Stanton North Metro 

2002: Barry Gillespie Southeast Minnesota 

2003: Fran Davis Minneapolis Area 

2004: Roger Danielson Greater Lakes 

2005: Lynn Leegard North Metro 


2007: Dan Wagner Southeast Minnesota 

2008: June Wiener Saint Paul Area 

2009: Daryl Braham Fargo/Moorhead 

2010: Wayne Gilbert St. Paul Area 

2011: Budd Batterson Minneapolis Area 

2012: Deanna Wiener St. Paul Area 

2013: Deb Greene Minneapolis Area 

2014: John Smaby Minneapolis Area 

2015: Rod Helm Minneapolis Area 


AUGUST Events 

17 / Wed 

Executive Committee Meeting 

10:30am-1:30pm 

@ MN REALTORS® 

Conference Room, Edina 

18 / Thur 

RPAC Trustees Meeting 

1:30pm-4:00pm 

@ MN REALTORS® 

Conference Room, Edina 

22 / Mon — 23 / Tue 

NAR Leadership Summit 

@ Chicago, IL 

More 

29 / Mon 

REALTOR® Day 

at the State Fair 

8:00am-2:00pm 

@ Minnesota State Fair, St. Paul 

More 

5 / Mon 

Labor Day 

MN REALTORS® Offices Closed 

The current four-year cycle to meet the Code of Ethics Training 

membership requirement ends December 31, 2016. 

REALTORS® are required to complete ethics training of not less than 2 hours, 30 minutes of 

instructional time within four-year cycles. The training must meet specific learning objectives and 

criteria established by the National Association of REALTORS®. The current four-year cycle will end 

Dec. 31, 2016. Training may be completed through your local REALTOR® Association or through 

another method. If you plan to take online, two online course options which the NAR has approved 

for meeting their membership requirement are at: www.realtor.org/code-of-ethics/training. 

1 

2 

No cost option satisfies the membership requirement; no MN Continuing Education credit is 

earned; 

To earn MN Continuing Education credit, choose the “CE” Option for $29.95 


Where the deals are. 

SIORs close more than 78,000 transactions annually. 

Are you ready to join the network of industrial and office 

transaction specialists who on average annually close: 

- 30 deals 

- 1 million square feet 

- $35.8 million in leases/sales 

The SIOR designation provides: 

Deal Generation - network with the industry’s best, create 

new relationships, and ultimately generate more 

transactions. 

Credibility - corporate and institutional real estate 

executives recognize the value of the SIOR designation, 

helping you win assignments. 

Exclusivity - only 2,800 practitioners hold the SIOR 

designation worldwide. 

Professional Development - the SIOR Center for Career 

Advancement offers education for your competitive edge. 

www.sior.com 

+1 (202) 449.8200 

Requirements to earn the SIOR designation: 

Experience: Minimum of five years as an industrial and/or 

office broker. 

Production: Meet Gross Fee Income (GFI) thresholds. 

Endorsements: Endorsements from two SIOR 

members. 

Education: Completion of stringent education 

requirements. 

Ethics: Adherence to the SIOR Code of Ethics. 

The REsource: Society Month, of Industrial 201 and Office REALTORS® (SIOR) is the leading professional office and industrial real estate brokerage 33 

association, representing today’s most knowledgeable, experienced, and successful commercial real estate brokerage specialists.

REALTORS® 

Conference 

&Expo 

November 4 - 7 | Orlando, Florida 

Don’t miss 

this 

opportunity! 

The 2016 REALTORS ® Conference & Expo is THE place to get 

EDUCATED on the latest market trends from its 100 education 

sessions – discover new INNOVATIONS changing real estate 

via its 400 exhibitors – and CELEBRATE with 19,000 of the best 

and brightest minds in our industry. 

Better still, this year’s conference is in Orlando – one of our 

most entertaining and affordable locations – so you can spend 

a lot less to get the very most out of the real estate industry’s 

most prestigious event. 

Register today at 

REALTOR.org/Conference

REsource

Create successful ePaper yourself

Delete template?

Save as template?