3/14/2007 Press Release - Ruling Opens Door for Contractor Lawsuits in Real Estate Industry

FOR IMMEDIATE RELEASE
March 14, 2007

Ruling Opens Door for Contractor Lawsuits in Real Estate Industry

Human Resource and Real Estate Expert Offers Tips for Compliance

Encino, CA, March 14, 2007 – West coast real estate brokerages got a directive from the 9th Circuit Court recently. In Swift v. Realty Executives Nevada’s Choice, the 9th Circuit Court of Appeals affirmed that a real estate salesperson – considered an independent contractor - qualified as an employee of a real estate brokerage because it controlled critical aspects of her work. This opened the door for the plaintiff to then bring a sexual harassment lawsuit against the brokerage. Realty Executives Nevada’s Choice has asked the Court for an en banc hearing. If the ruling stands, experts assert the ruling has major implications for brokerages nationwide.

“Brokers must be cognizant of employment laws and regulations. This case dealt specifically with a Title VII Sexual Harassment claim, but the Court found for this purpose that the independent contractor was equivalent to an employee,” states Michael Trust of Michael Trust & Associates. The human resource consultant’s experience as a real estate broker affords him a unique perspective on real estate employment law.

Employment law typically encompasses disability discrimination, potential wage and hour claims, harassment claims, marital, familial, sexual orientation, protected or perceived statuses, potential benefits, Injury & Illness Prevention Plans, and tax withholding amongst other items.

Trust warns that brokers covered by the 9th Circuit ruling (nine western states and two western Trust Territories) may find themselves on the other end of a creative legal argument for back wages, benefits, and harassment. The trend may prove costly, especially to real estate brokers without Employment Practices Liability Insurance – analogous to a real estate E&O policy. Trust urges brokers to consult with experienced human resources professionals, employment counsel or both to help them come into compliance. “Even if this case is overturned, having good policies and procedures in place is never a bad thing. They can be applied to independent contractors without making them employees if done correctly.”

About Michael Trust
Michael Trust helms California-based human resource consulting firm, Michael Trust & Associates and the successful real estate brokerage Michael Trust Realty. With over 15 years of prior corporate human resources management experience in Fortune 500 type organizations, a national senior level human resources certification, and experience teaching at the collegiate level, he brings a broader perspective to his clients. His participation in respected local and national organizations affords him unsurpassed insight into an ever-changing marketplace. This release is not an offer of legal advice.

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Contact:
Dawn S. Smith
Michael Trust & Associates
(404) 460-7852
press@michaeltrustassociates.com
www.michaeltrustassociates.com

Independent Contractor New Ruling Equivalent to Being an Employee

Given the recent 9th Circuit ruling in Swift v. Realty Executives Nevada’s Choice, Brokers must now be more cognizant of employment laws and regulations. While this case dealt specifically with a Title VII Sexual Harassment claim, the Court found for this purpose that the independent contractor was in fact the equivalent to an employee. Employees are subject to all employment laws. In California, such laws would include disability discrimination, potential wage and hour claims, harassment claims, marital, familial, sexual orientation, and other "protected statuses or 'perceived statuses'", Injury and Illness Prevention Plans (because CA law already requires brokers to treat salespeople as employees for the purpose of workers' compensation, this may be done already), potential benefits, tax withholding, etc. Brokers covered by this ruling (the jurisdiction of the 9th Circuit - generally, 9 western states and two western Trust Territories) may find themselves on the other end of a creative legal argument for back wages, benefits, harassment, etc. by attorneys who use this case to argue other types of issues are analogous to this issue and thus that in those cases, these salespeople and/or broker-associates are really employees. It can become quite costly, especially because many real estate brokers probably do not have Employment Practices Liability Insurance - the equivalent to a real estate E&O policy. Thus, brokers should consult with experienced human resources professionals, if they have not already done so, to help them come into compliance. Even if this case is overturned (there is a re-hearing pending), having good policies and procedures in place is never a bad thing - polices and procedures can be applied to independent contractors without making them employees if done correctly.

Michael Trust is a California based real estate broker, Realtor®, and owner of Michael Trust Realty, www.MichaelTrustRealty.com in addition to being the President of Michael Trust & Associates, a Human Resources Consulting Firm, www.MichaelTrustAssociates.com . Mr. Trust can be reached at info@MichaelTrustRealty.com or MichaelTrust@MichaelTrustAssociates.com.

Take to the Skies in Van Nuys

When Isaac Van Nuys built the first wood frame house in the San Fernando Valley back in 1872, he could not have imagined that his name would be synonymous with a bustling population area. Where he saw wheat fields and pasture land, now there are some 150,000 people and all the features of a 21st century San Fernando Valley town. Plus, of course, one of the busiest airports in the world.

Industry has long been important to Van Nuys. Once the home of a major manufacturing facility for Chevrolet, Van Nuys now hosts an Anheuser-Busch Brewery, Home Depot, and other large employers. The town is also the location of the San Fernando Valley Administration Center which provides municipal, county, state, and federal government services for the Valley population.

For almost a 80 years, the Van Nuys Airport (VNY) has been a center of activity in the town. From a small field in the 1920's it has grown to be the world's busiest general aviation airport. No commercial flights come here, yet private and chartered aircraft flights account for nearly a half million takeoffs and landings a year.
In the early days, Van Nuys Airport served barnstormers and intrepid airmen – and women – who sought flying records. They included:

• A men’s solo endurance record of 37 hours, by Herbert Fahy, in 1929.
• A women’s endurance record of 42 hours, by Elinor Smith and Bobbi Trout, in 1929.
• A women’s speed record of 196 mph, by Florence “Pancho” Barnes, in 1930.

Just about 20 miles north of the Los Angeles Airport (LAX), the airport was a favorite of several Hollywood stars. Gene Autry, Cecil B. DeMille, and Howard Hughes were among the celebrities who flew here. The airport has become increasingly popular as it offers both convenience and a measure of anonymity for celebrities and politicians. And for those who need to fly out of LAX, the Flyaway Bus Service offers non-stop service between VNY and LAX.

Van Nuys Airport has a film-friendly policy that aims to keep film production at "home" in Lost Angeles. From Casablanca to the TV show 24, the airport has been part of many films and TV shows over the years. The 1980's action-espionage series Airwolf used the VNY hangars as the site of "Santini Air," the charter air service operated by Dominic Santini and played by Ernest Borgnine. Even during the war years of the 1940's when the airport was a defense-manufacturing center, the entertainment industry discovered a young woman there on an aircraft assembly line. Her name would be Marilyn Monroe.

The airport is not only about movies and takeoffs and landings; the 730 acres of VNY are home to 100 businesses plus a 27-hole golf course. Los Angeles police, fire, and water and power helicopters have hangars and maintenance facilities here. The Los Angeles schools have an aviation mechanics school where future airframe and power plant mechanics get their training.

A 1960's guided tour program opened the doors of the airport to the local community for a journey through aviation past and present. VNY continues to offer tours today, giving about 10,000 adults and children a close-up look at the airport each year. And for those who can't get enough of airplanes, a public observation area adjacent to the east side of the airfield features permanent displays, special children’s exhibits and a continuous live broadcast of air traffic controllers in the airport’s control tower.

We hope you've enjoyed this stop on our continuing San Fernando Valley tour. Happy landings!

From Mission to Movie History

Today's stop on our San Fernando Valley tour is Tarzana. If you guessed that the town has something to do with The King of the Jungle, you're right! But the history goes back a couple hundred years beyond.

In the late 1700's, what is now Tarzana was part of the San Fernando Mission. Over the next 100-plus years, the land changed hands as cattle ranches and farm land until 1911 when 550 acres were purchased by General Gary Otis, the founder of the Los Angeles Times.

Edgar Rice Burroughs brought his family and his writing here in 1919 when he bought the Otis ranch, built his home on a hill, and called it Tarzana. Before long, a town named Runnymede grew up around and including Tarzana, helped in part by Burroughs' subdividing his land and selling acreage for building lots. By 1927, the 300 or so residents of the town of Runnymede wanted their own post office. Only trouble was, there was already a Runnymede in California. A contest decided it: the town would be called Tarzana in honor of its most famous inhabitant and his heroic man of the jungle.

Today, Tarzana is home to almost 30,000 people, most of who live in the foothills of the Santa Monica Mountains south of Ventura Blvd. According to Wikipedia, Tarzana is a multi-cultural town with many lands and languages represented. It is well known for its Persian (Iranian) restaurants and bookstores, as well as a thriving and long-established Jewish community and the first and only branch of the Hebrew language bookseller Steimatzky constructed outside of Israel. A number of popular delicatessens can be found in Tarzana, including the Tarzana Armenian Grocery and Mort's Deli.

We promised you trivia:
• Edgar Rice Burroughs also wrote "The Girl from Hollywood" which received bad reviews. Burroughs complained: "The critics have panned 'Girl from Hollywood.' They said that no ranch such as I described in the story ever existed. The joke of it was that I merely described my own ranch!"
• According to the Tarzana Chamber of Commerce, Tarzana was the site of the Valley's first swimming pool.
• Wikipedia tells us that notable residents have included comedian Jeremy Hotz, actor Jamie Foxx, actor Chuck Norris, filmmaker John-Erik Jordan, Bon Jovi guitarist Richie Sambora, and frequent Star Trek guest star Hana Hatae (in both TNG and DS9 as Molly O'Brien – Miles' and Keiko's daughter.)
• And do we really need to mention a certain celebrity's recent self-shearing in a Tarzana salon? No, probably not.

Tarzana is just one of the fascinating destinations on our San Fernando Valley tour. Next stop…Woodland Hills.

Big Box or Boutique?

When all you want is to buy a lot of something, you might go to a big box store. Take your basket, roll up and down the aisles looking for what you need, maybe even check yourself out, and trundle home with your purchases. If you're buying gallons of peanut butter or barrels of potato chips, it's a fine way to go.

But what if you're going to spend several thousand dollars on a new TV? Or perhaps you're shopping for a wedding dress? These are not every day items, and you will certainly want some personal service and advice before you buy. For these you'll go someplace where you can talk to a professional, find advice about different options, and get exactly what you want.

That's a boutique: a "small, exclusive business offering customized service" (with thanks to Dictionary.com). This kind of customized, personalized service is what a boutique real estate broker is all about. The focus is on individual clients and not on a corporation's goals or guidelines. There are no cookie-cutter solutions here; your home is unlike any other, and it deserves a marketing plan that is tailored to its unique features.

As a seller, you want to work with a Realtor® who knows your area well, has significant experience, and who provides personalized service to fit your needs. As a buyer, you also want to deal with a professional who has in-depth knowledge about your new neighborhood.

The boutique Realtor® is independent and has significant experience in a specific market area. Most important, this professional takes the time to listen and understand your needs, and to look out for your interests always and unconditionally. And isn't that exactly what you want when buying or selling a home?

Real Estate Plateau Not a Matter for Worry - February Press Release

Encino, CA (OPENPRESS) February 20, 2007 -- One year ago, selling homes was an effortless task for Michael Trust. The Broker/Owner of Encino-based Michael Trust Realty benefited, like other Realtors®, from the celebrated housing boom. Without enough existing homes for sale, condominium conversions and housing developments soared to keep pace with a hungry market – a trend industry analysts considered as proof of a growing economy. Murmurings of plateau began to haunt the market and soon, the real estate market began to stabilize. Read More...

San Fernando Valley Tour – Oaks and Old Movies in Encino

This is the beginning of a series, not unlike the serials of the old movie theater double feature. Back in the day – like the early to mid-20th century – when you went to the movies on Saturday, you saw a newsreel, cartoons, and two feature movies. There was also an ongoing adventure with a new chapter every week to keep you coming back.

There won't be any hoof-pounding Western adventures in this series, but there will be interesting history, intriguing facts, and fascinating trivia about the communities of the San Fernando Valley, Santa Clarita Valley, and the Westside of Los Angeles. Whether you are a native or newcomer, we hope you'll enjoy the journey.

First on the tour is Encino. It is truly hard to go anywhere in the Los Angeles area without finding a connection to the movie industry. Homes of the stars and hangouts of the famous are everywhere. Even a well-known Realtor® chose Encino for his home base. Here in Encino, though, not only the people are stars; the district itself has played a role in film and literature.

Like much of this area, Encino was once mission land owned by the Spanish government. When the missions were abandoned in the early 1800's, about seven square miles was given to three Grabielino Indians and became known as Rancho Los Encinos (Ranch of the Oaks.) By the middle of the 19th century the land had been a cattle ranch, grown wheat and barley, and had become a stop on the stage line between Los Angeles and San Francisco. According to the Encino Chamber of Commerce, some of the buildings from those days are still seen in the Los Encinos State Park.

Through all this, a massive California Live Oak tree stood on what became Ventura Boulevard, and watched over more than a thousand years of human history before falling during an El Niño storm in 1998.

Encino is now home to more than 40,000 people who live in the area bordered on the west by Tarzana, on the north by the Sepulveda Dam Recreation Area, on the east by Sherman Oaks, and on the south by the Encino Reservoir.

And now for the connections to film and literature we promised: (with thanks to Wikipedia)

• In the glory days of filmmaking, Encino was also the site of RKO Studios "Encino Ranch" and the site of such iconic movies as It's a Wonderful Life and The Hunchback of Notre Dame.
• It is the setting of the 1992 comedy, Encino Man.
• Encino is mentioned in Frank Zappa's 1982 hit song, "Valley Girl."
• "The Point" from Fast Times at Ridgemont High was located in Encino (Encino Little League Field).
• Encino was where Ali's family lived (Elisabeth Shue) in the movie The Karate Kid. Their country club was Encino Oaks and they lived on Alonzo Avenue.
• Encino is where specials on the popular cartoon SpongeBob SquarePants take place.
• Encino is the setting of the first half of Chilean author Alberto Fuguet's novel "Las Películas de mi Vida (The Movies Of My Life)"
• According to a recurring on-air gag of the 1970's show Match Game, panelist Brett Somers would take host Gene Rayburn to a nice hotel in Encino after the show if she were "feeling frisky."
• Encino has been home to many of Hollywood's stars, including Rudolph Valentino, Clark Gable, John Wayne, Michael Landon, and Phil Hartman.

Rich in history, Encino is one of the San Fernando Valley's treasures. That's the end of today's tour. Please join us again next time for…Tarzana!

Video or Virtual Tour – Which Shows the Home Best?

New technology tools for real estate seem to come along every day. How long ago did we start putting listings on our web sites, then adding photos to help buyers see the features of each home? Not long ago virtual tours were the new thing; with them we could give people an even better sense of the home.

Now video tours like this one are here, with background music, professional voice-over descriptions, and the feel of a walking tour of the house, inside and out. Are the new videos an improvement over virtual tours? I believe so.

· Virtual tours are really a limited selection of static photos, sometimes zoomed in or out, strung together. Each image is a single perspective only.
· Video tours add movement so that the viewers can feel as if they are actually walking through the house, moving from room to room. The camera can sweep around a room just as a person would look from side to side.
· Though virtual tours may include background music and printed captions, video tours include a human voice pointing out the special features of a home. Through tone and inflection, the voice adds an emotional component that is missing from the virtual tour. By matching the voice tone and speed, along with the background music, to the style of the home, you can convey a more complete image.

With all the other things we do, professional Realtors® are also students of human nature and communication. We know that some people learn and retain best what they see, others learn and retain what they hear. Video home tours are memorable because they combine both visual and auditory information.

Will video replace virtual tours? Not right away. We haven't stopped putting photos on our web sites or printing brochures, either. But video is certainly going to be a part of marketing, and something that I think our clients will find attractive. After all, who doesn't want to see themselves – or their home – as a star?

Is Your Home Ready for Its Close-up?

There is nothing like listing your house for sale to remind you of all those little fix-up chores you've been putting off. But before you reach for a hammer or paint brush, step back and consider where to spend your time and money. A house that is neat and clean, indoors and out, is more attractive to potential buyers.

Pretend you've never seen the house before. Does the exterior – paint, siding, gutters – need attention? Are the bushes trimmed, flowerbeds weeded, walk ways swept? If you have a garage, is it clean and uncluttered? Your home should say "Welcome!" even before you reach the door.

Step inside, close your eyes, and sniff. How does your house smell? Cigarette smoke, pet smells, greasy cooking odors are immediate turn-offs. A small pan with orange rind and cinnamon in water simmering on the stove will help your house smell like home.

Now walk through as if you were a buyer. Try every light switch, turn on every faucet, open cabinets and closet doors. Make a list as you go of anything that needs fixing.

· Repair or replace leaky faucets. It's a minor expense that makes a major difference.

· Tighten hinges, knobs and pulls on cabinet doors and drawers. While you're at it, clean out the cabinets to make them look more spacious.

· Oil hinges to eliminate squeaky doors.

· Are the windows clean, and do they open and close easily? Check for ill-fitting or torn screens, too.

· Look for scuffed paint on walls or bits of wallpaper that are coming loose and need re-gluing. Touch up or repaint as needed.

· Replace burned out or dim light bulbs. Your Realtor will turn on all the lights before a showing so make sure they work.

· Inspect the appliances. Make sure they are clean and in good working order. Clean the lint filter on the dryer, change the filters in the air conditioner, change the drip pans under the stove burners.

· Look down. If your carpet is dirty, clean it. If it's stained beyond cleaning, replace it with a neutral color that will make the home look bigger. Clean and polish hardwood floors.

· Spend money on a storage locker, and de-clutter ruthlessly. Aim to make your home look as big, open, and bright as possible. Just think of it as advance packing for when you sell the house and move to your new home.

If all this seems overwhelming, get some help. Most communities have local handyman- or handywoman-type businesses that will do small jobs for an hourly or flat fee. The investment you make to get your home ready for its close-up can pay off handsomely at the settlement table.

Will That Kitchen Renovation Pay You Back?

That's always the question when it comes to renovations: Will the investment you make to upgrade your home come back to you when you sell? No matter where you live in the United States, there's a guide to help you decide.

Making that renovation decision is not only about money, of course. Sometimes it's a question of needing more space and choosing whether to stay and expand or move to a new house. It might be that you simply can't stand to see that 1970's era avocado green kitchen any more, or the turquoise and black tile in the bathroom. But after you've dealt with all the emotional and family issues, there's still the cost. Will you get your money back when the time comes to sell?

For the 19th year, RemodelingOnline has published its Cost vs. Value Report. This comprehensive report looks at the cost of 25 different remodeling projects. They combine that with data collected from more than two thousand Realtors® on resale values, and present the results in chart form. There is a chart for the country as a whole and for each of nine regions of the United States.

And the winners are…(drum roll, please)…the two rooms with the most plumbing! Nationwide, the projects that return the most at sale are kitchen remodeling – either minor or major – and bathroom remodeling. In the Pacific (West Coast) region, RemodelingOnline found that a minor kitchen remodeling or bathroom remodeling are actually worth MORE at resale than they cost.

Of course, you always want to use good sense on any home improvement project. Before choosing a contractor, seek recommendations from friends and family. Ask the contractor for proof of insurance and a written commitment to price and schedule for your work. Read the contract carefully and don't sign anything unless you understand it completely.

If the time has come for a change around your house, by all means do what's right for your family's needs. Using the Cost vs. Value Report, you'll have confidence that the choices you make will also suit your financial needs.

Does Your Home Need Staging?

When you make the decision to sell your home there will be scores of items on your "To-Do" list. Your Realtor® will talk about what to expect from listing to settlement, and one of the topics will certainly be how to prepare your home to show to best advantage.

You can find plenty of tips on getting your home ready to show, and you probably know the most common ones:

• Look at your home through the eyes of a buyer – inside and out
• De-clutter and when you think you've done enough, de-clutter some more think of it as packing sooner rather than later)
• Make sure everything works – appliances, faucets, light switches
• Make everything look fresh and clean – paint, replace carpet, clean the windows
• Make your home welcoming when buyers are coming – soft music, scent of cinnamon

Recently, "Staging" has become a popular means of getting your home ready for viewing. Staging includes all the tips above, and more. A professional stager can look at your home from a fresh and unemotional perspective. Using a combination of your furniture and new or rented furniture and accessories, a stager can turn your house into a model home.

First impressions count, and we know that potential buyers form an opinion about each house they see within seconds of approaching the door and going inside. Staging a home is like designing a movie set; you create an environment in which the buyers can visualize themselves living happily ever after. For this reason, staging is especially important and valuable if you have already moved and the house is empty.

Home staging can be a good investment - a staged home usually sells faster and at a higher price, regardless of the state of the real estate market in your area. Make the effort to stage, and your home will be ready for its close-up!

Three Resolutions You Can Actually Keep

You know those resolutions we all make about getting in shape and eating right each New Year – how are you doing?

If it's not going so well, you're not alone. But don't waste time feeling bad about it. Instead, replace those tired resolutions with a few that you actually can keep. Forget about giving up a favorite food. Instead, think of these three resolutions that will help protect what you have now and build for the future.

1. Manage that mortgage. If you have an adjustable rate mortgage, consider converting it to a fixed rate. 30-year mortgage rates are still relatively low, and if you aren't feeling the pinch yet, that ARM could soon start eating you up. If you have a fixed rate mortgage that's more than a few years old, look into whether you could save by refinancing at a lower rate.

2. Improve your home and your tax bill. If you have been considering some home improvements, look into taking a home equity loan rather than financing them through a credit card or other loan. Interest on a home equity loan can be deductible just as is mortgage interest when the funds are used for home improvements. Depending on the type of improvement, you may be able to recover most of the cost through the increased value of your home when you sell it someday.

3. Keep Uncle Sam's hand out of your pocket. Do you usually get a tax refund because you pay in too much over the year, either through payroll deduction or by estimated payments? Don't do it! Sure, that refund feels like found money, but all you've really found is money that you might as well have buried in the back yard. Uncle Sam had your money for months and paid no interest – zip. He didn't even say "Thank you." Talk with your tax professional to calculate your withholding or estimated payments so you come out as close as possible to what you owe each year. Then don't spend the extra you take home, but instead increase your savings either through an IRA, a 401(k) or similar plan, or a well-managed investment plan.

For all of these you'll want to have some expert advice from your tax and financial adviser. Always consult your professional before making a decision about changing your mortgage, taking a home equity loan, or changing your withholding and/or estimated tax deposits. It will be time well spent and give you peace of mind.

And as for those other resolutions? Well, there's always next year!

Know Your Comps to Get the Best Price

Setting the right price for your house at the start is always important, especially during a buyer's market. But how do you know what the right price is – the price that will make your house sell quickly and for a price you're happy with?

For starters, you'll need the comps. Comparable sales of houses in the same area in recent months are one of several factors that your Realtor® will consider as you work together to set your asking price. Note I said "sales" not "houses for sale." The price of other houses for sale only tells you what other owners hope to sell for. Sales tell you where the prices ended up, what real buyers actually paid.

Comps give you a starting point. Once you know what a house sold for you can look at the details of that house and compare them to yours. You make adjustments up and down to come to an approximate equivalent price. For instance, if another house has more square footage that might sell for more than yours, but a new kitchen or deck in your house will give it a higher market value. Again, this is where your Realtor's® experience will be invaluable in setting a price that reflects your home's condition and location.

Where do the comps come from? There are a variety of sources including the multiple listing service and public records of sales, selected by professionals who know the neighborhood and the specific market. One place they do not come from is an internet "estimating" site that is not based on solid, proven information. Such sites have sprung up recently promising to estimate the value of your home and every other house around. So far, they don't have a good record for accuracy or completeness. What they provide is nowhere near a true comp. Their computer data banks cannot make the judgments that only a human – in this case a Realtor® - can make to recognize the differences in details that lead to differences in pricing.

Comps can be valuable to sellers in setting the price, and also to buyers in understanding the price range in a particular area. But whether buyer or seller, always work with your Realtor® to get the best value.

Comments are welcome.

Thank you.

Michael Trust, Realtor® and Broker
www.MichaelTrustRealty.com