V I R G I N I A’ S
# 1
R E A LT O R
M A G A Z I N E November/December 2011
A journal for real estate professionals published by the Virginia Association of REALTORS® • www.VARealtor.com
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Hot, Fresh Tips for Your Biz!
How to be sure they really do like you
+ All the home’s a stage
7 Ways to Turn Dumps into Dazzlers
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firstword ANDREW KANTOR
PUBLISHED BY THE VIRGINIA ASSOCIATION OF REALTORS® The Business Advocate for Virginia Real Estate Professionals Trish Szego, CRB, CRS President Mary Victoria Dykstra, ABR, CRS President-Elect Bradley J. Boland Vice President John Daly, SFR Treasurer John Dickinson, CCIM, GRI Immediate Past President R. Scott Brunner, CAE Chief Executive Officer scott@VARealtor.com Amanda Arwood Vice President of Marketing & Communications amanda@VARealtor.com Andrew Kantor Editor & Information Manager andrew@VARealtor.com For advertising information, Brittany Sullivan at (410) 584-1968 or e-mail var@networkmediapartners.com The mission of The Virginia Association of REALTORS® is to enhance its membership’s ability to achieve business success. Commonwealth magazine (ISSN#10888721) is published bi-monthly by the Virginia Association of REALTORS®, 10231 Telegraph Road, Glen Allen, VA 23059-4578; (804) 264-5033. Virginia Association of REALTORS® members pay annual dues with a one-year subscription included within their dues. Periodicals postage paid at the Glen Allen, VA post office and additional mailing offices. USPS Per. # 9604. Postmaster: Send address changes to: Commonwealth magazine, 10231 Telegraph Rd., Glen Allen, VA 23059-4578. Custom Publishing Services provided by Network Media Partners, Inc.
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Follow and friend us! VARealtor.com/twitter VARealtor.com/facebook VARealtor.com/linkedin VOLUME 18 ● ISSUE 6
You must remember this “LEARNING,” GOES ONE of my favorite quotes, “is finding out what you already know.” No, it’s not (necessarily) meant to be taken literally. It’s more about the idea that a lot of what we “learn” is obvious… at least in hindsight. It’s not about Monday-morning quarterbacking. It’s about the fact that we live in an elegant universe. When we come upon the right answer or the right way to do things, it’s almost always obvious. The trick is actually coming upon the right answer. When Isaac Newton figured out gravity — that every object pulls on every other object proportionally — it was obvious to him because it was clean and elegant. One equation for every object in the universe. It made perfect sense. You can imagine him thinking, Duh! I should have thought of that before! Inside you’ll find lots of lists — lots of ideas, large and small, for different aspects of your business. I have to say that as I compiled them, so many seemed obvious. Well, sheesh, I thought, I bet everyone knows that. But maybe not. After all, there are a lot of tips in this issue, and it’s well-nigh impossible to remember all of them — to do everything right all the time. We get comfortable with the way we do things — we get ourselves into grooves and can sometimes substitute habit for thought. (I do this all the time. I’ll find myself taking the wrong exit
on a weekend because I’m so used to my daily commute.) So when I circulated the lists to a group of Realtor® volunteers to check for bad or missing ideas, I was surprised by the near-universal sentiment I got: ‘These are great! I wish everyone used them!’ “Teaching,” goes another part of that quote, “is reminding others that they know it as well as you do.” It’s not that people don’t know these things — it’s that sometimes they’re forgotten in the frantic rush that is so many of our daily lives. So these lists of ours are along the lines of gentle reminders. If you find yourself saying, “Duh!” that’s OK — someone else is likely thinking, “Oh, good point!” If you find yourself saying, “Oh, good point!” so much the better. “Doing,” says the last part of the quote, “is demonstrating that you know it.” Of course, that’s the bottom line: If nothing else, these lists and their tips — obvious or not — might simply remind you of something forgotten, or suggest a new way of doing things, or convince you that yes, you really should do whatever it is. There are bound to be hidden gems and a few new ideas. Use ’em! ●
Andrew Kantor, Editor andrew@VARealtor.com NOVEMBER/DECEMBER 2011
1
NOVEMBER/DECEMBER 2011 VOLUME 18 ● ISSUE 6
contents
departments 4 quickhits The latest news and announcements for Virginia’s Realtors®
6 statswatch The numbers that shape your world
8 legallines Questions and answers about Virginia real estate law
12 lifelessons When real estate pros break the rules ... and get caught
14 formfactor Answers about the Residential Property Disclosure Statement
23 accessibletech The iPad was just the beginning. The tablets are coming!
in every issue
feature
16
Suggestion boxes Tips, tips, and more tips! Lots of lists full of ideas, suggestions, reminders, and more — that’s what this issue is all about. Take a peek, have a look, spend some time, and get some ideas. (We guarantee you’ll find at least one you hadn’t thought of.)
GET AHEAD by GOING BACK
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NOVEMBER/DECEMBER 2011
Read and search complete back issues at VARealtor.com/Commonwealth. WWW.VAREALTOR.COM
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quickhits
AndreW KAnTor
Fighting for your business
2012 VAR legislative agenda By Jay DeBoer
When the trappings of the holidays are cleared away, it will be time for the Virginia General Assembly, which begins on the second Tuesday of January — in this case, on January 10, 2012. VAR’s legislative package this year comes from three main sources: • findings of the Professionalism Work Group; • issues remaining from previous legislative sessions; and • new issues brought to the attention of VAR by local Realtor associations. We anticipate sponsoring nine bills in the 2012 session — some may change, and some might be combined with others during the process. 1. Agency and Professionalism – A “catch-all” bill drawn to Title 54.1 — our licensure statutes — that will accomplish several tasks, including any necessary “clean up” from our large agency bill from the 2011 session, as well as implementing the recommendations made by the Professionalism Work Group. There are other elements of “small fixes” that will be accomplished in this legislation. 2. Appraisal Management Companies – The Federal DoddFrank Act requires states to bring Appraisal Management Companies 4
noVember/december 2011
(AMCs) under the supervision and authority of their regulatory boards for appraisers. In Virginia, that is the Real Estate Appraiser Board. Understanding that creating a new regulatory program in Virginia is a slow process, we recommend taking the lead and beginning it now. 3. Landlord and Tenant – A bill for Landlord Tenant Act modifications is recommended to handle a variety of smaller issues that have arisen this year, including: which portions of the Virginia Landlord and Tenant Act are applicable to residential dwelling units; how rents may be accepted with reservation, and more. While not always exciting, these annual revisions are generally made with an eye to avoiding costly litigation. 4. Property Owner Associations and Condominium Act - A broad bill for Property Owner Associations and Condominium Act issues is recommended to address issues that have arisen — or lingered — throughout the year. This year’s concerns include delays in receiving vital information regarding owner occupancy and delinquency, as well as
exempting auctioned property from various provisions. If we are unable to build broad consensus around these issues, VAR likely will recommend deferring this bill to 2013. 5. Fairfax Rental Inspection – The City of Fairfax has persisted in stubbornly defying the General Assembly on the issue of rental inspection ordinances. Following our very clear victory in the General Assembly last year, Fairfax City revised its non-conforming ordinance in a different non-conforming way. While negotiations will occur between now and then, a bill to remedy the most recent insult will be introduced. 6. Business Professional and Occupational License Tax (BPOL) – Realtors have a number of difficulties and objections with the Business Professional and Occupational License Tax (BPOL) — and a bill will be prepared that might lead to more favorable treatment of our members. (Realtors pay BPOL taxes at the same rate as lawyers, accountants, and physicians.) We are aware of and are participating in a larger effort that might lead to elimination of the BPOL tax. Our bill may become a vehicle for a separate proposal, or be deferred for study — but it is worth doing.
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Real estate law
Supreme Court to rule on RESPA 7. Virginia SAFE Act – This consumer protection measure was required by federal law, but the current exemptions do not expressly exempt owner financing from the burdensome requirements otherwise placed on mortgage lenders. Most states are attempting to address this issue this year. 8. Tenant Utility Liens – In an issue on which much work has been done over the past year, liens placed on property as a result of nonpayment of utility bills by tenants have caused many negative consequences for owners. A consensus of the affected parties is near, and a bill to reflect that consensus will be introduced by VAR. 9. Alternative Onsite Sewage Systems – At least one locality has exceeded its statutory authority in requiring cash bonds to be posted before it will approve alternative onsite sewage systems — in violation of the Dillon Rule. This needs to be addressed legislatively, while negotiations are conducted with the locality involved. We will update you on our legislation as it is introduced and works its way through the process — visit VARealtor.com for more.
Volume 18 ● Issue 6
Back in 2007, Tammy and Larry Freeman got a mortgage through Quicken Loans. Quicken charged them a “loan discount fee” of $980, but — they claimed in court — Quicken didn’t lower their rate. Seems a simple case that belongs in Small Claims Court, right? Except that, if the Freemans are right (and Quicken did admit to charging the fee), that could constitute an unearned fee. And that looks like a RESPA violation. The Freemans and two other families sued, and the issue soon expanded. According to RESPA, Quicken can’t charge fees for doing nothing, which is what the Freemans say is exactly what it did. Specifically, RESPA says that “No person shall give and no person shall accept any fee, kickback, or thing of value pursuant to any agreement or understanding ... [as] a part of a real estate settlement service involving a federally related mortgage loan” and that includes “splitting charges” for providing settlement services. The 5th Circuit Court of Appeals ruled in Quicken’s favor, saying that because Quicken didn’t split that loan discount fee with a third party, there wasn’t a RESPA violation. In similar cases, other circuit courts agreed. But three circuit courts ruled the opposite way, saying the law applies to any unearned fees, whether it’s split or not. Hence, the Freemans’ case is on its way to the Supreme Court.
Short sales
First-time buyers moving away from short sales First-time homebuyers are a lot less interested in short sales than they used to be, according to a Campbell/Inside Mortgage Finance survey reported by HousingWire. In November 2009, first-time buyers accounted for 54.1% of all short sales. In August 2011 they accounted for 39.7% of short sales, the lowest ever recorded by the survey, which began in mid-2008. Why the drop? Could be lots of things. The obvious one, of course, is that while short sales are typically priced about 27% lower than ‘regular’ sales, they also take an average of 17 weeks to complete. With prices down and inventory high, first-time buyers may be finding great deals without having to put up with the short-sale process. Distressed property currently accounts for about one of every six residential sales. l november/december 2011
5
statswatch ‘Rolling’ home sales over four years Each figure in this chart represents home sales for the previous 12 months — that is, it’s “rolling.” For example, the Q2 2010 figure is the number of sales from July 2009 through June 2010. The Q3 2010 figure covers October 2009 through September 2010, and so on. Each bar represents a year’s worth of data, but this kind of rolling sum provides a clearer indicator of the trends we are seeing in Virginia’s housing market.
There’s good news here, despite what may appear to be a downward trend. First, the annualized rate of home sales in Virginia has only fallen 10 percent over the past three years, which overall is not a significant decline. Even better, the pace of home sales has increased over the past three months, from 80,022 sales in the second quarter of 2011 to 81,753 sales in the third quarter of 2011.
Virginia Annualized Residential Sales
81,753
87,897
93,279
90,703
THE
75,000
R DE
80,022
FUR
83,905
IT
TAX CRED
LINE
80,000
91,051
87,843
ET DEC
83,561
MARK
88,127
85,000
89,640
90,675
90,000
90,894
95,000
CLIN
E
START OF MARKET RECOVERY?
70,000 65,000
Tailwinds and Headwinds of Today’s Housing Market • low interest rates
• employment trends
• rising rental rates
• low consumer confidence
• pent-up demand • improving household balance sheet
• tight lending standards
2011-Q3
2011-Q2
2011-Q1
2010-Q4
2010-Q3
2010-Q2
2010-Q1
2009-Q4
2009-Q3
2009-Q2
2009-Q1
2008-Q4
60,000 2008-Q3
Number of Single Family Townhome and Condo Sales
Single Family Homes, Townhomes, Condos
The future of the market is hard to predict because there are so many issues affecting it.
• policy issues
6
NOVEMBER/DECEMBER 2011
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legallines BLAKE HEGEMAN
The importance of being earnest Earnest Money Deposits (EMD) is the most commonly raised subject on the Legal Hotline. The Real Estate Board is also keenly focused on this issue. There is a good reason for this focus — these funds are held in trust for parties and agents must act with the utmost care to protect them. This article will focus on some hot-button issues we are hearing about.
Q:
We are dealing with a short sale and the seller and buyer want to delay depositing the EMD until the lender approves the deal. Is that ok?
A: Yes, remember parties can agree to a deposit date other than the standard five business banking days following ratification. VAR’s Short Sale Addendum to Residential Contract of Purchase contains language below to meet this preference: The parties agree that the earnest money deposit will be deposited in Escrow Agent’s escrow account (check one): ___ within five (5) business banking days after the date this Contract is fully ratified by Purchaser and Seller; OR ___ within ___ days after delivery by Seller to Purchaser of notice of lien-holder approval of this Contract. A number of disciplinary cases before the Real Estate Board involve confusion over when ratification occurs in a short sale contract and when the EMD must be deposited. A discussion of this confusion follows, but remember that the EMD must be deposited within five business banking days following ratification unless otherwise agree to in writing by the parties — whether it is a short sales contract or not. In the typical purchase contract, full execution and ratification usually occur upon acceptance of the last offer by the other side, by signing and notifying the other side of acceptance — the same is true of short sales. Despite this fact, one of the most common questions we receive concerning short sales is “I understand you maintain that short sale contracts are not ratified until lenders have approved them. Is this true?” The answer is absolutely not. Short sale contracts are typically ratified but with seller’s obligations contingent on lender approval. This contingency is a title contingency that benefits the seller and no more defeats the existence of a ratified contract than does a buyer financing contingency, which also calls for lender approval. In summary, the short sale contract is considered ratified when fully executed and delivered by and to all parties, just as if it were any other contract. The contingency for removal of the lien does not affect whether it’s ratified or not. Please note that if the contract provides that ratification or acceptance are subject to lender signature or approval, that’s different. In that case there is no contract until the lender approves. 8
NOVEMBER/DECEMBER 2011
Q:
When does an EMD have to be deposited?
A: The deposit must occur within five business banking days following ratification unless otherwise agreed to in writing by the parties (this will come up in a later question). 18 VAC 135-20-180. Maintenance and management of escrow accounts. “Purchase transactions. Upon the ratification of a contract, earnest money deposits and down payments received by the principal broker or supervising broker or his associates must be placed in an escrow account by the end of the fifth business banking day following ratification, unless otherwise agreed to in writing by the parties to the transaction, and shall remain in that account until the transaction has been consummated or terminated.”
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WHAT MAKES A CENTURY 21 AGENT? HERE’S oNE WoRd: GUSTo. A fEW MoRE WoRdS: dEpENdAbiliTY, KNoW-HoW ANd dEfENdER of YoUR dREAMS. MAYbE THAT lAST oNE WAS ovER THE Top. bUT WE’RE oK WiTH THAT. CENTURY 21 AGENTS. SMARTER. boldER. fASTER. ®
C21.CoM © 2011 CENTURY 21 REAL ESTATE LLC. ALL RIGHTS RESERVED. CENTURY 21® IS A REGISTERED TRADEMARK OWNED BY CENTURY 21 REAL ESTATE LLC. AN EQUAL OPPORTUNITY COMPANY. EQUAL HOUSING OPPORTUNITY. EACH OFFICE IS INDEPENDENTLY OWNED AND OPERATED.
legallines
Q:
Am I correct with my understanding that we only have to pay interest on earnest money deposits if the client requests it? A: Whether you place the
Q:
Many agents like to put in the contract that the earnest money will be paid “upon ratification.” If the buyer delays getting the check to us and we cannot deposit the check within 5 days of ratification, are we in violation of VREB regs? Also, are postdated checks okay if disclosed to the seller? A: If the buyer delays beyond the 5 days, the only issue is: What did
the contract say was the status of the EMD? If it says the buyer has made a deposit that is being held by the escrow agent, then there is a material misrepresentation in the contract, and REB will come down hard on the agent. If the contract is ratified without the agent having the EMD, or with a post-dated check, or with a check in the mail, or whatever the case may be, the contract needs to reflect exactly that status. Don’t say you have a deposit if you don’t and if it’s post-dated or on the way, say that in the contract.
Q:
I am the principal broker escrow agent; what if my agent forgets to give me the EMD within five business banking days. In other words, the funds are not deposited until the 6th day? A: You must report this violation to the Real Estate Board within three
business days. In fact, any escrow violation must be reported. Please note that the Real Estate Board needs the broker to report the violation in writing either by regular mail or e-mail. The Board also needs to know the name of the licensee and license number, when the deposit was due and when it was received.
Legal Lines is written by VAR legal counsel Blake Hegeman. Please note that answers to Legal Lines questions are informational only. Consult your own legal counsel for legal advice. You can find more Q&A from the archives of our Legal Hotline in our Legal Resources Center at VARealtor.com/ legalresources.
10 NOVEMBER/DECEMBER 2011
EMD in an interest-bearing account is your decision, but if you do, the contract has to state who gets the interest. If the client wants it, and you agree, you may do so, but it’s your decision.
Q:
Does a real estate licensee have to hold the EMD in a real estate transaction? A: No, but if the licensee
holds it he is subject to the REB regulations.
Q:
Is an EMD necessary for contract formation?
A: No. The failure of buyer to deliver an EMD does not mean there is no contract. It means that buyer is in default, and seller will have all rights against the defaulting buyer. The mutual promises in the contract are ample consideration to form a binding agreement. Please note that the scenario above refers to the VAR contract. Other contracts in use in Virginia may require the EMD for ratification. ●
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VHDA Congratulates Our
2011 Top Producing Loan Officers July 1, 2010 - June 30, 2011
Richmond
Southern Virginia
Mary White
Benchmark Mortgage, Inc.
SILVER
Marianne Weddington
Village Bank Mortgage Corporation
SILVER
Regina Daye Lewis
C&F Mortgage Corporation
SILVER
Scott Whittle
Presidential Bank, FSB
SILVER
Belynda Wilson
Presidential Bank, FSB
Linda Melton
SunTrust Mortgage, Inc.
Ingrid Sell
Village Bank Mortgage Corporation
Northern Virginia Joanna Butler
C&F Mortgage Corporation
SILVER
Laura Triplett
SunTrust Mortgage, Inc.
SILVER
Regina Pinkney
Union Mortgage Group
Guy Miller-Richards
C&F Mortgage Corporation
Sarah Pichardo
George Mason Mortgage
Babette Hoffman-Price American National Bank & Trust Co.
Shenandoah Area
SILVER
Vickie Painter
C&F Mortgage Corporation
Gloria Wright
C&F Mortgage Corporation
Hampton Roads Dana Binder
Dragas Mortgage Company
SILVER
George Temple Jr
Old Virginia Mortgage, Inc.
SILVER
Aaron Legum
Old Virginia Mortgage, Inc.
Peyton Von Hirsch
Tidewater Mortgage Services
Sherry Reid
TowneBank Mortgage
Diana Glasier
TowneBank Mortgage
Lori Donnelly
Atlantic Bay Mortgage
Roanoke Area SILVER
Joyce Stewart
C&F Mortgage Corporation
SILVER
Shane Whisnant
C&F Mortgage Corporation
To find a VHDA loan officer near you, call 877-VHDA-123 or visit vhda.com/FindALender
Virginia Housing Development Authority | vhda.com
lifelessons KATHLEEN TOLER
Attitude is everything Licensees who run afoul of Virginia real estate regulations can find themselves in the crosshairs of the Virginia Real Estate Board, facing punishment ranging from a small fine to loss of their license. Here are a few real-world examples taken from the
recent actions of VREB. These narratives are based on the Board’s official findings; participants may disagree with VREB’s conclusions and version of events. They are provided solely as examples of Board actions. All of the names have been changed.
An ounce of humility
talk by phone. She also commented that her husband teased her about her squeaky-clean past, which may have prompted her to do something bad. After her conviction, Yanovich sought ways to volunteer and serve the community. She began working in a woman’s shelter and with Arlington’s homeless. She also attended weekly counseling sessions and became a guest speaker to share the lessons she learned. During interviews with the Real Estate Board, Yanovich was remorseful, took full responsibility for her actions, and apologized for her behavior, telling the Board, “I just can’t understand how I could sabotage myself after working so hard for everything I have. You have to prove yourself, and I destroyed all of that with something so foolish.” Yanovich’s license was placed on probation for three years. She was required to complete four classroom hours of continuing education and provide quarterly reports to the Board.
A Croatian immigrant, Pauline Yanovich had been a real estate agent, living with her husband in Washington, D.C., for several years. She seemed in every way a very responsible, upstanding person — until she did something quite shocking. While shopping at Kohl’s one day, Yanovich shoplifted jewelry — and was caught. Convicted of petit larceny, a misdemeanor, she was sentenced to 360 days in jail (but the sentence was suspended on several conditions). Yanovich immediately informed her principal broker of the incident, and she was subsequently investigated by the Real Estate Board. Interviews uncovered several issues that may have contributed to her uncharacteristic behavior. She deeply missed her family in Europe. Her father’s throat cancer treatment resulted in the removal of most of his voice box, limiting their ability to
Bad attitude An agent for Holiday & Meeks Realty, Becky Frewert was handling the purchase of a Louisa County home for her client, Paul Jamison. The deal fell through. All parties signed a release, and the earnest money deposit was to be given back to Jamison. But H&M discovered that the deposit was never received — only an e-mailed image of the check. (Frewert had assumed her client would follow-up his e-mail with the actual check, but didn’t check.) Frewert’s principal broker immediately reported the violation. During her interviews with the Real Estate Board, Frewert blamed the mistake on the office, saying she always depended on the office staff to make sure 12 NOVEMBER/DECEMBER 2011
deposits were received. “Anytime I forgot or didn’t submit something to my office in a timely manner, I was always called immediately,” she said, although the Board pointed out that a follow-up phone call would have ensured the deposit was in hand. Frewert’s handling of her Board interview didn’t help. According to the report, “Frewert’s demeanor during her testimony appeared arrogant and indignant for needing to explain her actions. She fails to appreciate that with the privilege of being a licensee comes the responsibility to comply with regulations.” Frewert was fined $750 and required to complete four hours of continuing education. Her license was placed on probation for six months. ● WWW.VAREALTOR.COM
Short Sale Stress Relief VHDA wants short sales to be as painless as possible — for you, and your clients. Here’s what one real estate attorney said about us. • • •
Virginia Housing Development Authority | vhda.com
formfactor BLAKE HEGEMAN
Disclosures: Which, when, and where Questions often come to our Legal Hotline about these two commonly used VAR forms and how they work with the Residential Property Disclosure Statement.
form 650
Virginia Association of Realtors® Contract for Purchase of Unimproved Property
Do I have to provide the Virginia Residential Property Disclosure Statement with this form? No, if there are no dwelling units on the property. See the statute section below for full details. § 55-517. Applicability. The provisions of this chapter apply only with respect to transfers by sale, exchange, installment land sales contract, or lease with option to buy residential real property consisting of not less than one nor more than four dwelling units, whether or not the transaction is with the assistance of a licensed real estate broker or salesperson. For the purposes of this chapter, a “real estate contract” means a contract for the sale, exchange, or lease with the option to buy residential real estate subject to this chapter.
VIRGINIA ASSOCIATION OF REALTORS® CONTRACT FOR PURCHASE OF UNIMPROVED PROPERTY
(This is a legally binding contract. If you do not understand any part of it, please seek competent advice before signing.) This CONTRACT FOR PURCHASE OF UNIMPROVED PROPERTY made as of _______________, 20________, between _______________________________________________________________________(the “Seller,” whether one or more), whose address is _____________________________________________________________________________________, and ________________________________________________________________(the “Purchaser”, whether one or more), whose address is ______________________________________________________________________________________, provides: The Listing Company (who represents Seller) is _____________________________________________________ ____________________________________________________________________________________________________ and the Selling Company (who does __ or does not __ represent Purchaser) is ______________________________________ ____________________________________________________________________________________________________. 1.
2.
3.
REAL PROPERTY: Purchaser agrees to buy and Seller agrees to sell the land and all improvements thereon located in the County or City of _______________________________________________________________________, Virginia and described as (legal description): ___________________________________________________________________ ________________________________________________________________________________________________ ________________________________________________________________________________________________ ________________________________________________________________________________________________ ________________________________________________________________________________________________ ________________________________________________________________________________________________ ________________________________________________________________________________________________ and more commonly known as: ______________________________________________________________________, together with the items described in paragraph 2, the “Property”). PERSONAL PROPERTY INCLUDED: The following items of personal property are included in this sale: ________________________________________________________________________________________________ ________________________________________________________________________________________________ ________________________________________________________________________________________________ ________________________________________________________________________________________________ ________________________________________________________________________________________________ ________________________________________________________________________________________________ ___________________ PURCHASE PRICE: The Purchase Price (the “Purchase Price) of the Property is __________________________. ( ) This sale shall be in gross, and the purchase price shown above shall be the exact sales price. ( ) The Purchase price shall be adjusted at settlement to an exact purchase price of $ ___________________________ _______________________ per (sq ft.) (acre). The exact are to be determined by a survey to be made by a licensed surveyor and paid for by _____________________________________________________________________ _____________________________________________. The Purchaser shall pay to the Seller at settlement the purchase price in cash or by cashier’s certified check, subject to the prorations herein and from the following sources: (
)
(a) THIRD PARTY FIRST TRUST: This sale is subject to Purchaser’s obtaining ( ) or assuming ( ): a conventional ( ), or other (describe) (_______________________________) loan secured by a first deed of trust lien on the Property in the principal amount of $ ____________________________, or ______% of the Purchase Price bearing interest at a fixed rate not exceeding ______% per year, or at an adjustable rate with an initial rate not exceeding _____% per year and a maximum rate during the term of the loan not exceeding _____% per year, or at the market rate of interest at the time of settlement, amortized over a term of _____ years, and requiring not more than a total of ______ loan discount points, excluding a loan origination fee, or an assumption fee not exceeding $____________________. (If this contract provides for the assumption of a loan: (i) the parties acknowledge that the balance set forth above is approximate and that the principal amount
VAR FORM 650
REV. 9/06
14 NOVEMBER/DECEMBER 2011
Page 1 of 7
form
SUM1
Summary of Rights and Obligations of Sellers and Purchasers Under the Virginia Residential Property Disclosure Act
Why must this form be given in combination with the Residential Property Disclosure Statement? They’re almost identical! The Virginia Residential Property Disclosure Act obligates licensees to inform their clients, and the customers they actually deal with, of their rights and obligations under the Act. The statute does not say how this is to be done. VAR and several local associations have put together this form to permit agents to comply with this statutory duty. You don’t need to use it (you may inform your client verbally, which is not recommended, or you may use some other method of communication), but we strongly encourage its use because it has been carefully prepared to permit Realtors to meet their obligation. Get it signed if you can, in order to prove you gave it. Of course, it doesn’t have to be signed — the law doesn’t require the use of this or any other specific form or method — but it’s a good idea.
SUMMARY OF RIGHTS AND OBLIGATIONS OF SELLERS AND PURCHASERS UNDER THE VIRGINIA RESIDENTIAL PROPERTY DISCLOSURE ACT Virginia’s Residential Property Disclosure Act (the “Act) (Virginia Code §55-517 et seq.) requires real estate licensees to inform the parties to a transaction with whom they deal of their rights and obligations under the Act. The licensee providing this information to you is prepared to answer any questions you may have about what the Act means to you, and to furnish you with a copy of the Act at your request. The Act applies to sales, exchanges, installment sales, or leases with option to purchase of residential real property improved with one to four dwelling units. The Act does not apply to: transfers pursuant to court order (in estate administration, pursuant to writ execution, foreclosure, bankruptcy, condemnation, or by decree for specific performance); transfers among co-owners; transfers among spouses; transfers among parents or grandparents and their children or grandchildren; tax sales; transfers involving a government or housing authority; or (subject to certain exceptions discussed below) sales of new homes. The Act requires sellers to furnish purchasers with a disclosure statement developed by the Virginia Real Estate Board. The statement must be furnished to the purchaser before final ratification of the purchase contract or the purchaser may terminate the contract or sue later for damages. The statement will direct purchasers to the RESIDENTIAL PROPERTY DISCLOSURES web page (http://www.dpor.virginia.gov/dporweb/reb_consumer.cfm) for important information about the real property. Purchasers are advised to consult the webpage. A seller, in furnishing a disclosure statement, makes no representations or warranties as to the condition of the property or any improvements located thereon nor with respect to the matters set forth and described at the RESIDENTIAL PROPERTY DISCLOSURES web page (http://www.dpor.virginia.gov/dporweb/reb_consumer.cfm). Purchaser is advised to exercise whatever due diligence purchaser deems necessary including a certified home inspection, as defined in §54.1-500, in accordance with the terms and condition of the purchase contract, but in any event prior to settlement. A builder of a new home must disclose to a purchaser in writing all known material defects which would constitute a violation of any applicable building code. In addition, for property located wholly or partially in any locality comprising Planning District 15 (the City of Richmond, the Town of Ashland, and the counties of Charles City, Chesterfield, Goochland, Hanover, Henrico, New Kent and Powhatan), the builder (or seller, if the owner is not the builder) shall disclose in writing whether mining operations have previously been conducted on the property or the presence of any abandoned mines, shafts or pits. This disclosure does not abrogate any warranty or other obligations the builder may have to the purchaser, and must be made (i) when selling a completed home, before acceptance of the purchase contract, or (ii) when selling a home before or during construction, after issuance of a certificate of occupancy. No disclosure or statement of any kind is required if there is no such information to disclose. Any required disclosure may be, but need not be, contained in the disclosure statement described in this Summary. A purchaser must be furnished with a disclosure statement signed by the seller prior to final ratification of the purchase contract. If such statement is not received by final ratification, the purchaser’s sole remedy shall be to terminate the purchase contract by sending written notice to the seller either by hand delivery or U. S. Mail, postage prepaid, at or prior to the earliest of (i) 3 days after receiving the statement (if delivered in person); (ii) 5 days after postmark (if sent by U. S. Mail, postage prepaid); (iii) settlement; (iv) occupancy by purchaser; (v) purchaser’s making written application for a mortgage loan if such application discloses that the termination right ends upon application; (vi) purchaser’s execution of a written waiver of the right to terminate (such waiver may not be in the purchaser contract). If the seller fails to provide the required disclosure statement, the contract may be terminated as set forth above. If the seller fails to provide the required disclosure statement, or the seller misrepresents, willfully or otherwise, the information required in such disclosure, except as a result of information provided by the locality in which the property is located, the purchaser may bring an action to recover actual damages suffered as a result of such violation. No purchaser of property located in a noise zone designated on the official zoning map of the locality as having a day-night average sound level of less than 65 decibels shall have a right to maintain an action for such damages. Any such action must be brought within one year of the date the purchaser received the disclosure statement. If no disclosure statement was provided to the purchaser, the action must be brought within one year of the date of settlement, or purchaser’s occupancy of the property by lease with option to purchase. Purchasers should be aware that neither a seller nor a real estate licensee is obligated to disclose facts or occurrences which have no effect on the physical structure of the property, its physical environment, or the improvements located thereon, or the fact that the property was the site of a homicide, felony, or suicide. Furthermore, it is a violation of federal law to disclose whether a previous occupant of the property was afflicted with the HIV virus or has AIDS. VAR FORM SUM1 REV. 6/11
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Suggestion
boxes
No heavy stuff this time around — our feature story is a plethora useful tidbits: lists, lists, lists. Browse, peruse, scan, and enjoy.
STAND-OUT 3 3 Ways to Stay in Touch
Ways To Dazzle Your Clients on Moving Day
1. Give them something useful. If your messages
to clients are always about you or your business, that’s a good way to cross from being “in mind” to “annoying.” Instead, give them useful information — community news, info about the local housing market, etc. You can get plenty of it in seconds; Bankrate.com or FreddieMac.com have mortgage-rate data, for example, and NAR’s HouseLogic has a ton of content that’s there for the taking.
2. Give a memorable gift. Something small and
useful sent once or twice a year fulfills a critical role — it keeps your name in your clients’ heads. Some examples: a “dirty/clean” dishwasher magnet. A clip for bags of chips. A yardstick. (Remember that this qualifies as advertising, so the Virginia Real Estate Board requires that they at least have your firm name — and be sure to include your name, your phone number, and your website.)
3. Send cards or notes for occasions. No, not
in December; that’s when everyone does it. How about birthdays? The anniversary of their move? Congratulatory cards for grads? “Don’t forget to register to vote”? Want to go a step further? Include a scratch-off lottery ticket. Remember that you must at least include your firm name on anything you send – you are advertising.
16
1. Have a binder waiting for them at the
new house, or at least at closing. It should include: • Copies of all the documents related to their home, including the names of any contractors the seller used to make the repairs you requested before closing. • Numbers for utilities and important services like trash collection, and local police and rescue stations. • An area map — you can even mark some important places like hospitals, schools, and voting locations.
2. Leave them the names of or
coupons for some useful local businesses, e.g., “If you’re going to re-key the locks, I’ve heard good things about Andy Kelp” or “Pizzaro is the best pizza around, and delivery is fast.”
3. Call. Just a quick hello is enough —
make sure everything went well. If they’re new to the area, you can ask if they need help finding anything.
6
Ways to Work a Room
When you’re with other professionals, either at a casual event or a business meeting, you are working, even if you’re talking about last night’s episode of “Dancing with the Stars.” A good networker views just about
every situation as a potential for connections — and business. (And, of course, try to make those events happen as often as possible — join and participate in organizations that connect you with your peers.)
Like a Master
1. Have a mental business card when you walk in. When someone asks, “What do you do?” or “Where do you work?” don’t reply with a simple “I’m a Realtor.” Have a 10-second statement in your head for just those occasions, and use it to tell the other person not just what you do, but how you might be able to help them. 2. Be prepared with small talk about your industry and timely topics. As with your mental business card, you should also have a handle on various topics to use for small talk, preferably related to what you do, even if tangentially.
4. Listen, acknowledge, and interact. There’s an old saw that listening is simply waiting for a chance to speak. Prove it wrong. Ask follow-up questions and build on things the other person says. You can work yourself into the conversation in time.
5. Know how to end a conversation. Your goal when networking isn’t to spend as much time with one or two people as possible. It’s to work the room. So don’t spend more than five or 10 minutes per person — make a good impression, exchange contact information if that’s appropriate, and move on.
Volume 18 ● Issue 6
3. Use lots of openended questions. A simple “Yes” or “No” can grind the conversation to a halt — or prevent it from starting. Instead, toss a softball that will give someone the opportunity to tell you about themselves. That not only makes you more likeable, but can lead to other talking points — and who knows what else.
6. Follow up. A quick e-mail is all it takes, although if you can set up a meeting to talk about something that came up, great. Need a more solid excuse? Send an article or link about something you spoke about, or something you think the other person would appreciate.
november/december 2011 17
4
Good Reasons
to Create a Real Estate Business Plan
It’s number one on Realtor magazine’s list of top 7 rookie mistakes: “No Business or Marketing Plan.” Going into real estate sales means going into business. That seems obvious, but many small businesses fail for want of a realistic plan.
1.
It will force you to identify your weaknesses and find ways to deal with them.
2.
It will save you the trouble of answering these questions — and being embarrassed by the answers — down the road, say, when applying for a loan.
3.
It will let you identify what makes (or can make) your business unique, and what you should emphasize to potential clients.
4.
It will have you set clear goals and a timeline for meeting them, something essential — and often overlooked — when starting a business.
18 november/december 2011
6 You Must Include Things
in Your Business Plan
1 Who owns it, and what kind of business is it — sole proprietorship, partnership, LLC, etc. Does anyone else own a piece of it, or have an interest it in? Will you have employees? 2 A basic (but detailed) description. Yes, you’re “doing” real estate, but what services will you offer? Be clear about specialization, even if you change that later. Where will you work (when not in your car), and what kinds of support — equipment, people, etc. — will you need to pay for? 3 Who will run the business? Is it just you, or will you have help, full- or part-time? Will someone (or some firm) manage your accounting? Deal with scheduling? Answer your phones? Think about all the pieces of your business and list who will handle each. 4 Show yourself the money. What will your expenses be the first month? First six? First year? Where will it come from? What kind of revenue do you expect — and more importantly, how do you calculate it? Show your work. Using real numbers such as average sale price and days on market, do the math — if you sell X homes at Y commission, and spend Z doing it, what do you take home? 5 How do you fit in the market? Describe your target audience (e.g., first-time buyers, relos, etc.), who your competitors are, and how you stack up against them in as much detail as possible. Where do they have an advantage, where do you? 6 What’s the plan? You need specific goals with specific dates. Depending on your business and support, those could be properties sold, clients signed, properties listed, dollars brought in, or whatever realistic metric works. Be clear, be precise, and keep an eye on them.
3
Places to Keep Up with Virginia Real Estate Law, Politics, and Regulation
1. The Virginia Public Access Project (VPAP.org). Everything you want to know about the state’s political process — what’s happening, who’s giving, and who’s getting. Even better, check out VPAP’s Whipple Report which offers a broader look: vpap.org/updates/whipple_report. 2. Richmond Sunlight (richmondsunlight.com). A great place to track the General Assembly when it’s in session — every bill, every proposal, every action. 3. VAR (VARealtor.com and VARbuzz.com). We not only give you the news and perspective, we tell you exactly how it’s likely to affect your business. www.VARealtor.com
7
Not-so-Obvious Home Staging Tips
There are some obvious things everyone should know about making a home look good to buyers: Remove clutter, clean the bathrooms, clear the yard, open the windows, get rid of odors. But here are some others to consider.
1
Rent furniture. If a house is empty, you’ll want to make it feel like a home. If it’s still lived in, renting is a relatively inexpensive way to get cozy, coordinated furnishings.
Avoid empty rooms. They’re not spacious, they’re stark — or worse, abandoned. Move furniture from other rooms, or rent to fill the space.
2
Just make sure it’s clear the rented property does not convey!
Make every room’s purpose clear. Don’t assume that flexibility will sell. Instead, decide how you want to stage each room, if it isn’t obvious. A desk and computer turns “oddly-shaped bedroom” into “convenient office.” An elegant table and chairs says “formal dining room,” even if it was once the kids’ playroom. Don’t be caught saying “I guess this could be a TV room or an office or a guest room or maybe for storage....”
3
5
• Leave notes. You won’t always be there to show a home, and it would be a shame for a potential buyer to miss a nice selling feature. So leave a note — a small, obvious card with neatly printed text: “Lazy Susan inside,” “Heated floor,” and so on.
Volume 18 ● Issue 6
4
• Appeal broadly. You don’t know who is going to look at a home, so keep it gender-neutral, including (and especially) the kitchen and master bedroom.
Stage storage. Buyers will be opening closets and sliding out drawers, so be ready for them. Clean and declutter, and if possible stage neatly. That means everything from silverware drawers to linen closets, to the attic and garage.
6
• Take advantage of people who know their stuff. Between the Internet and your local hardware store, you might find simple, inexpensive solutions to staging issues. Easy-Off oven cleaner works great on fireplace doors, for example. Fogged double-paned windows can be cleared instead of replaced. Yes, there is paint specially made for bathroom tiles. And much, much more.
7
november/december 2011 19
The 6 Most Dangerous Situations for Realtors®, According to Realtor Mag… Meeting with a new client for the first time. THE RISK: You don’t know whether this person could potentially be a criminal, stalker, thief, or worse.
Flashy personal marketing. THE RISK: Marketing materials that contain photos of yourself may attract the attention of criminals, especially if you’re wearing expensive or provocative items.
Showing a property alone. Foreclosed or vacant homes. THE RISK: Foreclosures may attract unexpected house guests — such as squatters — or former home owners refusing to leave. The homes also may be damaged and poorly lit or attract wildlife — and not the friendly kind.
THE RISK: Walking around an enclosed, vacant property with strangers is never a good idea.
Open houses. THE RISK: An open house is an invitation to anyone, from thieves to those who might want to harm you.
Transporting strangers in your car. THE RISK: Most people don’t pick up hitchhikers, yet real estate professionals put strangers in their car all of the time and don’t think anything of it, but there’s a risk of being robbed, your car being stolen, or worse.
…and 11 Ways to Keep Safer • Buddy up. Take along a colleague whenever you can. • Avoid provocative photos in your marketing. Low-cut blouses, full-body photos, and looking over your shoulder in a sexy pose can send the wrong message. • It’s business, not personal. Don’t give out your home number or address, discuss your family or children, or talk about where and with whom you live. • Never advertise a property as vacant. That can entice thieves, squatters, and other ne’er-do-wells. • Let others know where you are. Don’t go anywhere with a stranger without telling someone where, when, and with whom you’re going — even better, arrange to call periodically. And have a innocuous “help”phrase arranged, such as “Did you catch the Giants game?” The free Moby app (mymoby.com) lets your smartphone share your location with whomever you choose — you’ll know someone always knows where you are.
• Ask for identification. Before you take or go with someone to a showing, ask for ID (tell them it’s 20 NoVeMBeR/DeceMBeR 2011
company policy) and leave a photocopy in the office. Most people understand, and they’ll be happy to do so. • Drive separately. Have the client follow you. If you must go together, you drive. • Park carefully. Make sure it’s a spot where you can get out easily — the street, not a driveway. And only wear shoes you can run in. • Look before you enter. If a home is vacant, look around before you go inside to be sure there’s no sign of someone having entered illegally. • Let them take the lead. Have clients enter rooms first so your escape route isn’t blocked. Avoid confined spaces like basements and attics where you can be trapped. If you have to go to those places, stay by the door. • Get away. If you suspect something’s amiss, or are confronted by someone, leave. Immediately. Call the police once you’re safely far away. Remember that distance and noise are your friends — and that money, phones, keys, and cars can be replaced. WWW.VAReAlToR.coM
10
PRO VIDEO TIPS
for Making Tours
If you’re warming up the camcorder to create a video tour of a home, there are a few tricks and tips that will make it stand out. Be sure to get the seller’s consent before breaking out the camcorder!
1. Remove clutter. ’Nuff said. 2. Go steady. When you can, use a tripod or monopod to steady the camera. (Obviously this doesn’t apply if you’re moving from room to room, but it’s helpful when showing a large area from one spot.) 3. Prepare. Do a dry run before you shoot — note the features you want to highlight, the order of rooms you want to tour, and what (if anything) you want to say. 4. Overshoot. Not sure whether you want to show the basement? Shoot it anyway. Think there might have been too much traffic noise? Shoot it again. Better to have too much and edit down than too little and have to re-shoot. 5. Take it slow. A normal walking pace is fine for, well, walking, but when shooting video it can seem much faster, especially as viewers try to take in the details of what you’re showing them. This tip is especially important if you’re panning — moving the camera left to right (or vice versa) to show a wider area. Slow down, lest viewers become nauseated. 6. Be bright. More light is better than less, and what looks cozy in real life may come across as dark and uncomfortable in video. Turn on lights and open windows. 7. Keep out. The video is about the home, not you and not the seller (or his kids, or his dogs). Resist the temptation to be cute. Viewers aren’t looking for entertainment, they’re looking for a home. 8. Keep an ear on the sound. Unless you plan to add voice and/or music (soft, unobtrusive) later, be aware of the background noises. It’s better to wait for that garbage truck to pass than to make a home sound like it’s by a highway.
9. Keep track. If you’re shooting more than one building in a day, start each one with a shot of the address. That will help you keep track of which living room has the fireplace and which has the built-in bookshelves. 10. Edit. If you want decent video, you’re going to have to edit what you shoot, or have someone do it for you. A simple, free program like Windows Live Movie Maker will be more than good enough. a) Shorten. No one is going to sit through a 10-minute video of you walking from room to room in a house, so the primary purpose of editing is to choose the shots you want and cut them down to size and put them in the best order. b) Voiceover. You don’t have to use the sound you recorded; you can create a voiceover that doesn’t include any noises from the “set.” c) Keep it simple. Even the free video editors come with far too many useless (but tempting) tools. Transitions (going from one scene to another) should be a simple cut or fade-out/fade-in. Forget fancy flipping images or animated scrolling. d) Add your contact info. Put it at the beginning, end, or both — and remember the rules for what you have to include in any online advertising: your name, your firm’s name, the city and state of your office, and the jurisdictions you’re licensed in. Remember that you must present a true picture, so don’t get too creative — don’t, for example, edit in a shot of a nicer yard.
Volume 18 ● Issue 6 november/december 2011 21
1
The GRI program. We call it “your first, next step” for a reason. It’s the first designation many Realtors® get, and for good reason — agents holding a GRI designation earn thousands more on average than those who don’t. Plus, it’s an easy way to meet PL requirements at the same time.
5 VAR Services
You Should Take Advantage Of You can find them all at VARealtor.com
2
Legal videos. Real estate is a legal minefield, and lawyers are expensive. So let ours give you quick (we’re talking three minutes) tips and suggestions for keeping out of harm’s way. (VARealtor.com/ legalvideos)
3
Standard forms. Any real estate form you need is yours, free, at VARealtor.com/ standardforms.
4
Member discounts. Insurance, mobile phone plans, forms, education, even shipping — membership has its privileges. (VARealtor.com/discounts)
5
Home Sales Reports. Monthly and quarterly, we give you the latest figures for the state and each region with clean, beautiful graphics and short, incisive analysis. (VARealtor.com/homesales) ●
While some companies offer you this OR that.
We give you this “&”that.
Let us put the power of “&” to work for you, by giving you the right combination of support & independence you need to succeed. & the #1 real estate brand in the Mid-Atlantic* EOE
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Join the company that puts their agents first. Call 703-653-8581. ®
*Based on data supplied by MRIS and its member Association(s) of REALTORS, who are not responsible for its accuracy. Does not reflect all activity in the marketplace. 1/1/10 – 12/31/10. Information deemed reliable but not guaranteed, should be independently verified, and does not constitute an opinion of MRIS or Long & Foster Real Estate, Inc. @2011 All rights reserved.
22 NoVeMBeR/DeceMBeR 2011
LongandFoster.com
WWW.VAReAlToR.coM
accessibletech ANDREW KANTOR
Take two tablets… TABLETS SEEM READY made for Realtors®. They’re portable, long-lasting, and give quick and easy access to whatever information you want. They’re also — let’s face it — really cool. Tablet computers of one sort of another had been around for a while, but they were large, clunky, and useful only in a niche-market way. Until, that is, Apple came in. As it did with the iPod and iPhone, the company entered an existing market with a product that was leagues ahead of anything in the class — as if it said, “Oh, is this what you’ve been looking for?” Apple defines the market, and a year or two later other companies (with shallower vision but deep pockets) join in, adding features and offering their own takes. That’s what’s happening with tablets. Apple defined the market, but now — a couple of years later — it’s opening up with a host of other products. And as always, competition is good for consumers.
Choices If you’re in the market for a tablet, you have three basic choices to make: Size, operating system, and brand/model. They’re all thin, light, and last long on a charge. They all have full-featured touchscreens, still and video cameras, and wireless Internet access built in. They all have a ton of accessories, from carrying cases to keyboards to TV connections. And they all let you do the same things: Browse the Web, play games, watch movies, view pictures, take notes (via typing or handwriting), and so on, almost ad infinitum. Anything you want to do, you can find an app for it (and probably a free one). The differences are about personal taste. Where do you plan to use it and what for? Which do you find easier to use? Which do you like the look of? You might find that one plays back video better than another, or that one has a brighter screen, or that one just looks nicer. But the bottom line is up to you.
Size The tablet market is roughly split into two general size camps: 7-8 inches and 10-12 inches. Small and large. VOLUME 18 ● ISSUE 6
Many manufacturers have models in both sizes. The seven-inch tablets have screens about three or four times the size of a typical smartphone’s. That makes reading documents much easier and gives pictures and video more of the screen real estate they deserve, while the whole thing is small enough to fit in a purse or large pocket. Not as portable as a phone, but a lot more comfortable to use. The 10- or 11-inch tablets, on the other hand, can act as a notebook replacement. They’ve got a (comparatively) huge surface for note taking, a truly usable on-screen keyboard, and are terrific for reading or watching documents, books, or movies. The downside, of course — beyond price — is that you can’t just slip them into your bag. (One comparison I’ve heard is that if you’re more of a book reader, go for a 7-inch tablet, but if you prefer magazines go for the 10 inch.)
Samsung’s 10.1- and 7-inch Galaxy Tabs are fairly standard, size-wise, for Android tablets. On the right is a typical smartphone for comparison. NOVEMBER/DECEMBER 2011 23
accessibletech Once you have in your head whether you prefer ultra-portable or beautifully large, the next thing to consider is what kind of tablet you want.
Operating system There are — or will be — three major operating systems for tablet computers: Android, iOS (aka iPad), and Windows 8. Android and iOS are already here (although a major new version of Android is coming in late 2012), and Windows 8-based tabs will debut next year. Apple’s iPad (running iOS) is right now the 800pound gorilla of the tablet market, which isn’t surprising as it defined the genre. So we’ll break out of alphabetical order and tackle that first.
iOS/iPad Like anything to come out of Apple, iOS and the iPad are beautiful and polished to near perfection. The company doesn’t do things second rate. The interface is clean and intuitive; everything works smoothly like a well-virtually-oiled machine. The words “clunky” or “rough” will never be used to describe it; think “elegant.” There are thousands of apps available, and you purchase them via Apple’s iTunes App Store. Everything there has been tested and approved for sale by Apple, and it has to meet the company’s standards for quality and acceptability. You know that whatever you buy or download is going to work the first time (and is probably not going to be offensive). The downsides to iOS come from its limitations — what you might call its lack of flexibility. Your choice of hardware is limited, obviously: iPad and iPad 2 (and soon the iPad 3). If you want a smaller tablet, you’re out of luck; iPads are in the 10-inch category. Ditto your software; the only place you can get apps is via Apple and iTunes. And while the upside to this tight control means guaranteed quality, it also limits options. Developers have to pay to have their apps included on iTunes, meaning some small and potentially useful products will never appear. And of course there is the issue of some products being banned because Apple simply didn’t approve of the content. Finally, unless you’re willing to “jailbreak” your iPad (give yourself access to the innards of the system, while voiding your warranty), your customization 24 november/december 2011
options are limited — you can’t for example, install a different keyboard, or change the overall look and feel of the device. (On the other hand, it’s Apple, so maybe you won’t even want to.)
Android Google’s Android operating system dominates the smartphone market, and it’s only now beginning to make inroads in the tablet arena. There are a lot of Android-based tablets on the street or in the works, from companies like Acer, Asus, Dell, Motorola, Nokia, Samsung, Toshiba, ViewSonic… you get the idea. Android’s biggest selling point is its flexibility. It’s available on dozens of devices, from budget machines to high-end tablets for movie aficionados to everything in between. Manufacturers can also add their own bells and whistles. So while you can run any Android app on any Android tablet, one from Viewsonic might look different than one from Motorola — it might have features or software that aren’t part of the base Android package. (Both the Kindle Fire and Barnes and Noble Nook e-readers are Android based, for example.) As with the iPad, there are thousands of apps available from the official Android Market, but you aren’t limited to that one store. Amazon, for example, also runs an Android app store, and anyone can create apps and make them available on their own sites. Android is also an open system, so developers can create apps that change the complete look and feel of the device, or just parts of it. A new “launcher” for example, can add all sorts of functions and styles to the home screen. You can choose from different keyboards, fonts, icons, and replace the default widgets with others offering more or different functions. In short, you can do just about anything you want. www.VARealtor.com
But all that flexibility comes at a cost. Google doesn’t test the apps available on the Market, and anyone can create one and get it listed. Although malicious ones are usually removed quickly, bad stuff sneaks through — programs that don’t work, don’t work well, or are even malicious. (Yes, anti-virus scanners are available.) Luckily, this information usually comes out in the reviews, so users would be well advised to read those first. And in rare cases, a manufacturers customization might cause problems. One model of phone might have a problem with a particular app; you’ll occasionally see a comment in the Market “Crashes on HTC Desire,” for example. Finally, while the “stock” Android system is certainly good looking and slick, occasionally it can seem a bit rough around the edges, especially if you over-customize it. On the other hand, early reviews of the forthcoming version 4 of Android, nicknamed “Ice Cream Sandwich,” say it’s as beautiful as the iPad. (Upgrades to new versions are free and automatic.)
Windows 8 uses “tiles” to give info and launch apps
Apple defined the tablet market when it released the iPad, and once the rest of the world realized what a success it was, it jumped on the bandwagon. The result is good for everyone — a hot market, an incredibly useful technology, and a lot of competition. Prices are dropping, new designs and features are coming out, and there are undoubtedly a lot of cool things on the horizon. It’s a flat future. ●
Windows 8 As usual, Microsoft is late to the game — its first tablet-centric operating system, Windows 8, is only now approaching release. (Actually, different versions of Windows 8 are designed for phones, tablets, and desktops.) But just as it’s always late, Microsoft also tends to (eventually) dominate markets, and reviewers who have used early versions of Windows 8 are apparently very, very impressed, often to their own surprise. In other words, don’t count the company out. Windows 8 hopes to offer the best of both iPads and Androids — as beautiful and refined as iOS, and as flexible as Android. Microsoft’s new “Metro” interface is completely new, and uses customizable “tiles” on the start screen — tiles that let you launch programs, or that display changing information. Tablets running Windows 8 are coming from the usual suspects: Dell, HP, Motorola, Samsung, Toshiba, and anyone else who makes PCs, and there are large and small tablets coming out. Apps will be available via a market à la iTunes or the Android Market, but just as with Android, anyone can create and release programs — for better or worse. VOLUME 18 ● ISSUE 6
NOVEMBER/DECEMBER 2011 25
2011 REal Show dazzles, educates, inspires Trish Szego takes the oath of office as VAR’s 2012 president.
More than a thousand real estate pros came to the Virginia Beach Convention Center for Virginia’s annual real estate convention and expo: VAR’s REal Show.
Networking and seeing old friends is just one reason Realtors® attend the REal Show.
The Virginia Realtors® Leadership Academy class of 2011 celebrates its graduation.
Attendees can get more CE and PL credit in less time — and from great instructors.
Meet vendors (and have some fun) on the expo floor.
26 NOVEMBER/DECEMBER 2011
It was the largest turnout for the event since 2005 — the height of the market. Keynotes by NAR general counsel Laurie Janik and the inspirational Juliet Funt capped two days of education, networking, and — of course — meeting exhibitors and enjoying the fun in the expo hall.
WWW.VAREALTOR.COM
John Powell named 2011 Virginia Realtor® of the Year John Powell, ABR, CRB, CRS, GRI, SHS, vice president and supervising broker of Long & Foster in Colonial Heights, was named as the 2011 Virginia Realtor® of the Year at The REal Show, our annual convention and expo. Powell served as VAR’s 2009 president, 2007 chair of the Virginia Managers Council, 2004 president of the Central Virginia Regional MLS, and 2001 president of the Southside Virginia Association of Realtors®. He was also named VAR’s 2005 Manager of the Year. At SVAR, Powell filled numerous roles — he served as treasurer and vice president, chairman of the Personnel, Membership, Past Presidents, Bylaws, RPAC, and Budget and Finance committees, and was named its 2001 Realtor® of the Year.
Get Active:
vAR’S LeGiSLAtive AdvOcAcy cONfeReNce feBRUARy 14 – 16, 2012 RichmONd hOteL OmNi Richm Om ichm eveNtS
eAkeR: p S h c N LU teveNS dAvid hSE MOrtgagE
CEO Of t assOCiatiOn BankErs
Day on the Hill (Feb. 15) RPAC Lunch Legislative Reception Awards Reception Legislative Classes & Seminars
www.varealtor.com/getactive
BONUS VOLUME 18 ● ISSUE 6
3-Hour Mandatory Agency Course Offered Twice!
Changes effective July 1, 2012. NOVEMBER/DECEMBER 2011 27
rpacreport YEAR-END REPORT
The 2011 Fundraising Year has ended. Thank you to all who invested in RPAC this year As of September 30, 2011, the following REALTORS® and local associations have joined RPAC of Virginia as Major Investors. For more information on the value of RPAC and how your investment works to protect your business, contact Meredith Cox at mcox@VARealtor.com or (804) 264-5033. Or, if you want to get invested today, please visit rpacofva.com.
Golden R Investors ($5,000)
Linda BelcherBrown Coldwell Banker Residential, Manassas
Dorcas HelfantBrowning Coldwell Banker Professional, Virginia Beach
Charles Burnette
Billy Chorey, Sr.
Dennis Cronk
John Dickinson
Burnette Real Estate Sales, Blacksburg
Chorey & Associates Realty, Suffolk
Poe & Cronk Real Estate Group, Roanoke
Hall Associates, Inc. Union Hall
Steve Hoover
Thomas Jefferson, III John McEnearney
John Powell
MKB, Realtors® Roanoke
Joyner Fine Properties Richmond
Long & Foster Real Estate, Alexandria Inc., Colonial Heights
McEnearney Associates, Inc., Alexandria
Joseph Funkhouser, II Long & Foster, Realtors® Mechanicsville
Re/Max Allegiance
Golden R Associations ($5,000) Charlottesville Area Association of Realtors®, Charlottesville Fredericksburg Area Association of Realtors®, Fredericksburg Northern Virginia Association of Realtors®, Fairfax Richmond Association of Realtors®, Richmond Roanoke Valley Association of Realtors®, Roanoke Williamsburg Area Association of Realtors®, Williamsburg Tom Stevens Coldwell Banker Residential, Vienna
Melanie Thompson Century 21 AdVenture Realty, Fredericksburg
Jack Torza Long & Foster, Realtors® Mechanicsville Hall of Famers have contributed a cumulative amount of at least $25,000 to RPAC.
28 november/december 2011
www.VARealtor.com
Crystal R Investors ($2,500)
Mike Minnery
Jane Quill
Trish Szego
RE/MAX Allegiance Woodbridge
Re/Max Presidential Fairfax
ERA-Elite Group, Realtors®, Fairfax
Sterling R Investors ($1,000)
Bob Adamson
Craig Alexander
Guy Allen
Betsy Atkinson
Julia Avent
ERA Atkinson Realty Virginia Beach
Re/Max Allegiance Arlington
Mary Bayat
Lee Beaver
Bayat Realty, Inc. Alexandria
Keller Williams Realty Manassas
Mary Ann Bendinelli
Brad Boland
Candice Bower
Kevin Breen
R. Scott Brunner
Jobin Realty Reston
McEnearney Associates, Inc., Leesburg
Coldwell Banker Elite Fredericksburg
Virginia Association of Realtors®, Glen Allen
McEnearney Associates, Inc., McLean
Weichert, Realtors® Front Royal
Tammy Bagnato
Deborah Baisden
CC Bartholomew
Coldwell Banker Residential, Springfield
Prudential Towne Realty Virginia Beach
Long & Foster Real Estate, Inc., Manassas
Laura Benjamin
Karen Bohlke Enriquez
Roanoke Valley Association of Realtors®, Roanoke
Re/Max Select Hampton
Volume 18 ● Issue 6
One Stop Realty Woodbridge
Katy Allenbaugh -Richards First American Home Buyers Protection, Midlothian
Weichert, Realtors® Manassas
november/december 2011 29
YEAR-END REPORT
rpacreport Sterling R Investors ($1,000)
Robyn Burdett
Peggy Burke
Joe Carney
Dale Chandler
David Charron
Carol Clarke
Re/Max Allegiance Reston
Long & Foster Real Estate, Dumfries
William E. Wood & Associates Virginia Beach
Greg Garrett Realty Newport News
MRIS Rockville, MD
Montague, Miller & Co. Charlottesville
Vic Coffey
Commission Express
Billy Coons
John Daly
Benton Downer
Mary Dykstra
Olde Virginia Realty Suffolk
Rose & Womble Realty Company, Newport News
Downer & Associates Charlottesville
MKB, Realtors速 Roanoke
Claire Forcier-Rowe
Virgil Frizzell
Bev Frowen
Bill Gearhart
Long & Foster Real Estate, Reston
Long & Foster Real Estate, Manassas
Coldwell Banker Townside, Roanoke
Re/Max All Stars Realty, Daleville
Fairfax
Ekko Title
Sandee Ferebee
Reston
Prudential Towne Realty Virginia Beach
Coldwell Banker Elite Fredericksburg
Charlee Gowin
Art Grace
Suzanne Granoski
Lynn Grimsley
Thomas Groves
Kit Hale
Prudential Towne Realty Virginia Beach
Hunzeker & Lyon, PC Manassas
Keller Williams Realty Alexandria
RE/MAX Peninsula Newport News
ERA Real Estate Professionals Virginia Beach
MKB, Realtors速 Roanoke
30 november/december 2011
www.VARealtor.com
Sterling R Investors ($1,000)
Margaret Handley
Lizzie Hernandez
Jeanne Hockaday
Nathan Hughes
Tom Innes
Donn Irby
M.C. Handley, Ltd. McLean
Keller Williams Realty Manassas
Virginia Country Real Estate, Ordinary
Bandazian & Holden Richmond
Re/Max Commonwealth Richmond
Rose & Womble Realty Chesapeake
Jo Anne Johnson
Randy Jones
Sita Kapur
Kathleen Kennedy
Betty Kingery
Pat Kline
Westgate Realty Group, Inc., Falls Church
Monarch Mortgage Manassas
Arlington Premier Realty Arlington
Long & Foster Real Estate, Vienna
Mountain to Lake Realty Rocky Mount
Avery Hess, Realtors® Springfield
Jody Korman
Vonda Lacey
Natalie Langford
George Lyons
Lacey Real Estate Group Fishersville
Realty Negotiations Winchester
Barbara Jean LeFon
Richard Limroth
Re/Max Commonwealth Richmond
Scott MacDonald
Andy Mason
Re/Max Gateway Chantilly
Weichert, Realtors® Mason-Davis, Onancock
Volume 18 ● Issue 6
Rivah Realty, Montross
Re/Max Valley, Realtors® Long & Foster Real Estate Roanoke Woodbridge
Shane McCullar
Glenda McDaniel
Susan Mekenney
Dee Meredith
Keller Williams Realty Alexandria
Long & Foster, Realtors® Moneta
Re/Max Allegiance Alexandria
Century 21 All-Service Lynchburg
november/december 2011 31
YEAR-END REPORT
rpacreport Sterling R Investors ($1,000)
Tina Merritt
Tom Meyer
Jay Mitchell
Percy Montague
Fred Morgan
Vinh Nguyen
Nest Realty Group Blacksburg
Condo 1, Inc. Arlington
Prudential Towne Realty Virginia Beach
Montague, Miller & Co., Charlottesville
1st Choice Real Estate Staunton
Westgate Realty Group, Inc., Falls Church
Lee Odems
Forrest Odend’hal
Susan Oh
Gwen Pangle
Gail Penman
Tracy Pless
Buyer’s Advantage Real Estate, Woodbridge
Long & Foster Real Estate, Gainesville
New Star Realty & Investment, Fairfax
Ashby Hall Real Estate Gallery, Leesburg
William E. Wood & Associates, Virginia Beach
Long & Foster Real Estate, Reston
Anne Rector
Peter Rickert
Thomas Rickert
Fetneh Schacht
Coldwell Banker Residential, Alexandria
Coldwell Banker Residential, Alexandria
Zinta RodgersRickert
Mario Rubio
Long & Foster Real Estate, Alexandria
Rubio Real Estate Annandale
Long & Foster Real Estate, Vienna
Henry Scholz
Trudy Severa
Karen Smith
Katrina Smith
Kimber Smith
Susan Spellman
Hall Associates, Inc. Roanoke
Long & Foster Real Estate, Reston
Re/Max Commonwealth, Richmond
Long & Foster, Realtors®/ Webber & Associates, Winchester
Prudential Towne Realty Williamsburg
Long & Foster, Realtors® Williamsburg
32 november/december 2011
Re/Max Allegiance Fairfax
www.VARealtor.com
Sterling R Investors ($1,000)
Cindy Stackhouse
Wes Stearns
Suzy Stone
Century 21 Stackhouse & Associates, Dumfries
MO Wilson Properties, Inc., Woodbridge
Century 21 AdVenture Realty, Fredericksburg
Richard “Dick” Thurmond
Christine Todd Northern Virginia Association of Realtors®, Fairfax
William E. Wood & Associates, Virginia Beach
Thomas “Mack” Strickland, Jr.
Pat Sury
Lawanda Swope
Strickland Realty, Chester
Montague, Miller & Co., Charlottesville
Weichert, Realtors® Arlington
Karen Trainor
Kevin Turner
Sandra Wagner
William A. White
Weichert, Realtors® Fairfax
Century 21 All-Service Bedford
William E. Wood & Associates, Poquoson
Joyner Fine Properties Richmond
Sterling R Associations ($1,000) Greater Augusta Association of Realtors®, Staunton Harrisonburg-Rockingham Association of Realtors®, Harrisonburg Lynchburg Association of Realtors®, Lynchburg Southside Virginia Association of Realtors®, Colonial Heights Virginia Peninsula Association of Realtors®, Hampton Shanna Wiseman
Barbara Wolcott
Jon Wolford
Parr & Abernathy Hopewell
Prudential Towne Realty Virginia Beach
Long & Foster Real Estate, Springfield
Contributions are not deductible for income tax purposes. Contributions to RPAC are voluntary and are used for political purposes. The amount suggested is merely a guideline and 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 boards will not favor or disfavor any member because of the amount contributed. 70% of each contribution is used by your state PAC to support state and local political candidates. Until your state PAC reaches its RPAC goal 30% is sent to National RPAC to support federal candidates and is charged against your limits.
Volume 18 ● Issue 6
november/december 2011 33
DEFEATED ADEQUATE PUBLIC FACILITIES ORDINANCES — DEFEATED TRANSFERABLE DEVELOPMENT RIGHTS (TDRS) — DEFEATED RECORDATION FEE INCREASE — DEFEATED LEGISLATION GIVING LOCAL GOVERNMENTS THE AUTHORITY TO INSPECT LEASED DWELLINGS EVERY TIME OCCUPANCY CHANGES — PASSED A 3-YEAR STATUTE OF LIMITATIONS ON COMPLAINTS TO THE REAL ESTATE BOARD — BANNED THE DOUBLE TAXATION OF THE GROSS RECEIPTS (BPOL) TAX — PASSED LEGISLATION REQUIRING ECONOMIC IMPACT STATEMENTS ON ALL NEW REGULATIONS WHEN THEY ARE PROPOSED — DEFEATED STATEWIDE GROWTH STRATEGIES ACT — PASSED RE-CONFORMITY – REVERSING 1993 LAW WHICH ENDED STATE CONFORMITY TO FEDERAL TAX LAW — PASSED STATE DEDUCTION FOR FEDERAL SELF-EMPLOYMENT TAXES — APPROVED TAX CREDITS FOR BUILDING RENOVATION AND REPLACEMENT OF RESIDENTIAL OR COMMERCIAL BUILDINGS — DEFEATED IMPACT FEES — PASSED LANDMARK AGENCY DISCLOSURE LEGISLATION — APPROVED LEGISLATION ALLOWING BROKERS TO FORM LIMITED LIABILITY COMPANIES AND AGENTS TO INCORPORATE — RESTRICTED LOCAL GOVERNMENT AUTHORITY TO VETO VHDA-FINANCED HOUSING PROJECTS — EXEMPTED REAL ESTATE LICENSEES FROM THE CONSUMER PROTECTION ACT — DEFEATED IMPACT FEES — DEFEATED TRANSFER TAXES — DEFEATED ATTEMPTS TO CONFISCATE ESCROW ACCOUNTS — APPROVED BPOL TAX REFORM — APPROVED LEGISLATION ALLOWING AGENTS TO INCORPORATE AND FORM LIMITED LIABILITY COMPANIES — DEFEATED IMPACT FEE LEGISLATION — DEFEATED NUMEROUS BILLS SPONSORED BY ENVIRONMENTALISTS TO EXPAND THE CHESAPEAKE BAY ACT AND REGULATE LAND USE — PROTECTED THE REAL ESTATE TRANSACTION RECOVERY FUND — DEFEATED NUMEROUS ATTEMPTS TO CREATE A LAWYER-ONLY MONOPOLY ON REAL ESTATE CLOSINGS — DEFEATED TRANSFERABLE DEVELOPMENT RIGHTS (TDRS) — PASSED BPOL TAX REFORM — ESTABLISHED MEGAN’S LAW DISCLOSURE STANDARDS — APPROVED LEGISLATION CLARIFYING THE RIGHT OF LAY SETTLEMENT AGENTS (REALTORS®) TO PERFORM MINISTERIAL ACTS — APPROVED CHANGES TO THE COMMERCIAL BROKERS LIEN LAW CONSISTENT WITH A RECENT VIRGINIA SUPREME COURT DECISION — APPROVED VESTED RIGHTS LEGISLATION — APPROVED LEGISLATION TO PROVIDE FOR LAY-SETTLEMENT, REALTOR® CLOSINGS OF COMMERCIAL TRANSACTIONS – PROVIDED CHOICE IN COMMERCIAL REAL ESTATE SETTLEMENTS — DEFEATED OPEN SPACE PRESERVATION LEGISLATION — DEFEATED ADEQUATE PUBLIC FACILITIES LEGISLATION — DEFEATED LIMITS ON BUILDING PERMITS LOCALITIES MAY ISSUE (APPLIED TO RESIDENTIAL AND COMMERCIAL PERMITS) — DEFEATED IMPACT FEES — DEFEATED LAWYER-ONLY CLOSING REQUIREMENTS — DEFEATED REFORM OF CONTROLLED BUSINESS ARRANGEMENTS — ESTABLISHED THE HOUSING REVITALIZATION ZONE ACT — PASSED IMMUNITY FROM LEAD-BASED PAINT SUITS UNDER CERTAIN CONDITIONS — DEFEATED LEGISLATION ENABLING UNLICENSED APPRAISERS FROM APPEARING IN LEGAL PROCEEDINGS AS “EXPERTS” — DEFEATED LEGISLATION THAT WOULD HAVE SIGNIFICANTLY AND UNREASONABLY INCREASED THE REGULATIONS OF SOIL SCIENTISTS — DEFEATED ADEQUATE PUBLIC FACILITIES LEGISLATION — DEFEATED LEGISLATION ENABLING LOCALITIES TO LIMIT BUILDING PERMITS BASED ON POPULATION GROWTH — DEFEATED IMPACT FEE LEGISLATION — DEFEATED AMENDMENTS TO VESTED RIGHTS LANGUAGE — IMPLEMENTED CIVIL PENALTIES FOR UNLICENSED REAL ESTATE PRACTICES — PASSED LEGISLATION ALLOWING REAL ESTATE LICENSEES TO HAVE OWNERSHIP INTERESTS IN MORTGAGE COMPANIES — DEFEATED IMPACT FEE LEGISLATION — DEFEATED APF ORDINANCES — DEFEATED TRANSFER TAX LEGISLATION — SUPPORTED REGIONAL TRANSPORTATION REFERENDUMS — WORKED WITH VIRGINIA REAL ESTATE BOARD TO RE-WRITE LICENSING REGULATIONS — PASSED BROWNFIELD REVITALIZATION LEGISLATION — PASSED CLUSTERING LEGISLATION — DEFEATED IMPACT FEE LEGISLATION — DEFEATED APF ORDINANCES — DEFEATED TRANSFER TAX LEGISLATION — DEFEATED IMPACT FEE LEGISLATION — DEFEATED APF ORDINANCES — DEFEATED TRANSFER TAX LEGISLATION — PASSED AND IMPLEMENTED NEW CE REQUIREMENTS — DEFEATED LEGISLATION LIMITING ON-LINE RECORDATION OF LAND RECORDS — STRUCTURED AUTHORITY TO ALLOW FOR STATE-CHARTERED BANKS TO ENTER THE REAL ESTATE INDUSTRY – MOST PROHIBITIVE IN THE NATION — DEFEATED IMPACT FEE LEGISLATION — DEFEATED APF ORDINANCES — PARTICIPATED IN THE VIRGINIANS FOR BETTER TRANSPORTATION COALITION — LOBBIED TO DEFEAT RECORDATION TAX LEGISLATION — PASSED LEGISLATION THAT ALLOWS TITLE INSURANCE COMPANIES TO NEGOTIATE THEIR RATES — DEFEATED RECORDATION TAX LEGISLATION — PASSED LEGISLATION THAT PROVIDES THAT NO LOCALITY SHALL REQUIRE CASH PROFFERS PRIOR TO THE ISSUANCE OF BUILDING PERMITS — DEFEATED IMPACT FEE LEGISLATION — DEFEATED APF ORDINANCES — DEFEATED “FLUSH TAX” LEGISLATION — IMPLEMENTED CIVIL PENALTIES BY REAL ESTATE BOARD AGAINST UNLICENSED REAL ESTATE AGENTS — DEFEATED STATEWIDE GRANTOR’S TAX LEGISLATION — DEFEATED IMPACT FEE LEGISLATION — DEFEATED APF ORDINANCES — INTRODUCED “AFFORDABLE HOUSING TRUST FUND” LEGISLATION — PASSED FIRST TOLL FACILITY BILL IN 15 YEARS — RE-WROTE DISCLOSURE / DISCLAIMER STATUTE — PASSED SUBSTANTIAL EMINENT DOMAIN REFORM — REFORMED EDUCATION REQUIREMENTS FOR LICENSEES — DEFEATED APF ORDINANCES — INTRODUCED REGIONAL TRANSPORTATION AUTHORITY LEGISLATION — REFORMED 1995 REAL ESTATE AGENCY STATUTE — BANNED PRIVATE TRANSFER FEES — ENACTED MANDATORY DISCLOSURE OF DEFECTIVE (CHINESE) DRYWALL — REVISED REASSESSMENT APPEALS STANDARD OF PROOF TO PROVIDE FAIRNESS TO HOMEOWNERS — ENACTED “AMNESTY FOR HONESTY,” PERMITTING A BROKER TO HAVE HIS FIRM AND PRACTICES AUDITED – AND TO REPORT PROBLEMS AND TAKE CORRECTIVE ACTION WITHOUT PENALTY BY THE REAL ESTATE BOARD — PASSED TOUGHER RECIPROCITY REQUIREMENTS ON APPLICANTS FROM OTHER STATES — MANDATED CRIMINAL HISTORY BACKGROUND CHECKS FOR REAL ESTATE LICENSE APPLICANTS (INCLUDING FINGERPRINTING) — FAIRER DETERMINATION OF BASIS FOR RECORDATION AND GRANTOR’S TAXES — CREATED COMMON INTEREST COMMUNITY BOARD, AND COORDINATION OF PROPERTY OWNERS ASSOCIATION ACT, CONDOMINIUM ACT, COOPERATIVE ACT, AND TIME SHARE ACT STATUTES UNDER THE JURISDICTION OF THIS BOARD — REFORMED POST-LICENSURE EDUCATIONAL REQUIREMENTS FOR REAL ESTATE LICENSEES — REQUIRED ADDITIONAL 8 HOURS OF BROKERAGE MANAGEMENT CE — DEFEATED STATEWIDE GRANTOR’S TAX INCREASE — DEFEATED IMPACT FEE LEGISLATION
We know it’s tough out there.
On behalf of property owners and your fellow Realtors®:
THANK YOU, INVESTORS
This is just a sampling of the numerous successes your RPAC investment and VAR lobbying has accomplished over the years – to the benefit of Virginia property owners and Realtors®. So . . . You think it’s tough out there now? Think what it would be like without RPAC. If you haven’t already done so, invest today by filling out the attached envelope and send to VAR or visit us at www.VARealtor.com/RPAC. Contributions are not deductible for federal or state income tax purposes. 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 boards will not favor or disfavor any member because of the amount contributed. Up to 100% of your contribution is sent to National RPAC and is charged against your limits under federal law (2 U.S.C. 441a); National RPAC returns up to 70% of your contribution to Virginia RPAC for use in connection with the election of state and local candidates in Virginia.
contactvar
WE’D LOVE TO HEAR FROM YOU
We’re online at www.VARealtor.com Our official blog is VARbuzz, at www.VARbuzz.com If you have questions, we’re ready to help. During normal business days, our receptionist is available from 8:30 a.m. to 5:00 p.m.
Our phone number is
(804) 264 -5033 For membership and dues questions Ask for Amy Hafer Membership Records Manager amy@VARealtor.com
To reach our Legal Hotline Call (804) 622-7955* *You must register first at VARealtor.com/LegalHotline
Ask for Lynne Wherry Director of Member Outreach lynne@VARealtor.com
Ask for Glenda Puryear Conferences Specialist or Lili Paulk, Director of Education glenda or lili @VARealtor.com
Ask for Kim Martin, Specialties and Chapter Manager kim@VARealtor.com
If you have comments or questions about Commonwealth magazine or our Web sites
Ask for Blake Hegeman Legal Counsel blake@VARealtor.com
Ask for Steve Daley Director of Sales & Marketing steve@VARealtor.com
To find out about conferences, seminars, and professional education
If you need to know about professional designations
For questions about professional standards and the Code of Ethics
If you’re interested in marketing or advertising opportunities
If you’d like to have someone speak at your association or brokerage
Ask for Andrew Kantor, Editor & Information Manager andrew@VARealtor.com
! bers
Meme Big v
Sa
er emb rs our M with e Partne ic Serv
See your member discounts at www.VARealtor.com/ discounts
Liberty Mutual, home, auto, and renters insurance Outstaffing, staffing and payroll Pearl Insurance, E&O, medical, life, and dental insurance Phone Tag, voice to e-mail transcription
T-Mobile, wireless service
(804) 249-5702 scott@VARealtor.com
VOLUME 18 ● ISSUE 6
Ask for Meredith Cox Director of Political Communications meredith@VARealtor.com VAR 2012 Leadership Team
Trish Szego, CRB, CRS President ERA-Elite Group, Haymarket (703) 359-7800; trishelite@aol.com
VAR Member Service Partners
Realtors Federal Credit Union
Our CEO is Scott Brunner
For information about RPAC
UPS, shipping and more Zipform, electronic forms solutions Roost, social media management platform
Mary Victoria Dykstra, ABR, CRS President-Elect MKB REALTORS®, Roanoke (540) 989-4555 mvdrltr@aol.com Bradley Boland Vice President Jobin Realty, Reston (703) 437-1717 bradleyboland@gmail.com John Daly, SFR Treasurer Rose & Womble, Virginia Beach (757) 486-8800 jdaly@roseandwomble.com John Dickinson, CCIM, GRI Immediate Past President Hall Associates, Inc., Union Hall (540) 982-0011; jrdickinson@cs.com R. Scott Brunner, CAE Chief Executive Officer (804) 264-5033; scott@VARealtor.com
NOVEMBER/DECEMBER 2011 35
lastword astw SCOTT BRUNNER
For a few days this December, let your heart be light Next year all our troubles will be out of sight (well…maybe) SO I SET out to write you a snarky, satirical take-off on the holiday letter — those glibly cheerful, things-arejust-too-perfect-with-us missives that land in mailboxes each December. Only, this one would recap the year in real estate — would find scathing humor in what was for many of you a pretty miserable twelve months, at least as business goes. It began: “’Tis the season to recap the year…and uncork the bottle. After the twelve months we’ve had, you may need the latter in order to stomach the former. That, or an Alka Setzer, whose plop, plop, fizz, fizz may be about as festive as it’s gonna get anytime soon. The year is almost done. Oh what a relief it is.” That was the ticket, I thought: A bit of gallows humor to lighten the mood. I showed it to a Realtor® friend who understands my slightly perverse sense of humor, and waited for the chuckles as she read it. Instead, she looked up at me like I had two heads. “Seriously?” she said. “You think this is what I want to read in my association magazine at the end of such a miserable year?” “Um…uh…” I stuttered. She handed back the page and said crisply, “Don’t make light of what we’ve lost. Remind us about what we have. Give us cause for hope.” I took a week, didn’t write a word, missed my deadline, and thought hard about what she’d said. Finding hope in 2011: not an easy task. Easier to be sardonic, as economic conditions lurched back and forth between mildly hopeful and thoroughly hopeless, depending on your market or the particular month or which newspaper or cable news program you happened to be reading or watching at the moment. So we all clung to every tidbit of half-good news we could, right? And you cut costs where you could and redoubled your marketing efforts and held the hands of your distressed sellers (as you wrangled with lenders on their behalf) and tried to get buyers off the dime. Maybe, too, you kvetched a bit against feckless government policies that got us into this mess in the first place. Fair enough. And you survived. I mean, you’re reading this, right? (Unless you’re new to the business, in which case you are surely an optimist. But then, aren’t hopes and dreams what being a Realtor® is all about? So, welcome.) In either case, there’s cause to be grateful: Grateful that you’re hanging on through the worst economy since the great depression (To appropriate and mangle a Sinatra lyric: If you can make it here, you’ll make it anywhere. It’s up to you….). Grateful for customers and clients who actually are braving this market. Grateful that there will eventually be a light at the end of the tunnel*. Maybe peace on earth, too. It could happen. So for a few days this December, let’s be hopeful. I mean, what’s the alternative? So let’s “let our hearts be light:” Next year all our troubles will be out of sight. (Here’s hoping. Right?) Here we are as in olden days, Happy, golden days of yore. Faithful friends who are dear to us Gather near to us once more So at least we all will be together, if the Fates allow. Until then we’ll have to muddle through somehow. So have yourself a merry little [insert December holiday of choice here] now. ● *VAR CEO Scott Brunner worries that the light at the end of the tunnel may be a freight train. Contact him at scott@varealtor.com
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The PenFed Family welcomes the 1,000 sales professionals and employees of Prudential Carruthers REALTORS®. We also welcome Tom Carruthers Jr. and Tom Carruthers III who proudly add their combined 70 years in real estate leadership experience to our team. • We continue to be a Full Service, Full Fee Brokerage
The PenFed family welcomes the 1,000 • Access to over One Million Members salesPenFed professionals and employees of The family welcomes the 1,000 business opportunities, Prudential Carruthers . of sales• Unparalleled professionals andREALTORS® employees industry leading marketing support
Prudential Carruthers . & superior agent servicesREALTORS®
This merger an Jr. opportunity We•also welcome Tombrings Carruthers and Tom Carruthers III who proudly add their combined years of real estate for expanded growth 70 “Stronger leadership experience to our team. We also welcome Tom Carruthers Jr. and Tom Carruthers III Brand Wins More Business”
who proudly add their combined 70 years of real estate leadership experience to our team. • Award winning Business
Development and Training
We will revolutionize real estate—together. Departments We will revolutionize real estate—together.
We will revolutionize real estate—together.
Serving you with 35 real estate offices in the Washington/ Baltimore metropolitan area. Serving you with 35 real estate offices in the Washington/ Baltimore metropolitan area.
MARYLAND Annapolis Bethesda Canton Crofton Elkton Federal Hill Ft. Meade Gaithersburg Harford County
OFFICES 410-266-0600 301-961-6000 443-769-1700 410-721-3711 410-398-2401 410-547-5700 410-519-4221 301-948-4811 410-515-5300
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443-325-7890 410-524-7000 410-520-2600 410-208-3500 301-260-7700 410-484-8322 301-765-7653 410-464-5500 410-912-4700 410-647-8000
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We
At Keller Williams Realty, we use this as a measuring stick to see how well we’re doing at serving our associates.
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Because we know that when we provide the highest levels of support, the company will grow exponentially at a grassroots level. Since the massive shift in the real estate market began in 2005, KW has posted positive growth, and now stands as the secondlargest real estate franchisor in the United States. The evidence is clear: more and more real estate professionals are choosing KW as the place where they believe their businesses will flourish. Source: REAL Trends, December 2010
(U.S.) (2005-2010)
{
Major Franchisors, Growth Trajectory
50% 40% 30% 20%
2005
2010
% Change
Keller Williams Realty
57,600
77,672
+ 34.8%
RE/MAX
103,000
54,648
- 46.9%
Century 21
119,200
67,305
- 43.5%
Coldwell Banker
111,900
83,230
- 25.6%
10%
kw
+34.8%
0%
-10%
-25.6%
-20% -30%
-46.9%
-43.5%
RE/MAX
Century 21
-40% -50%
Keller Williams Realty
Coldwell Banker
We invite you to join us. Find out if Keller Williams is right for you as an agent or as an owner. Call or email your confidential inquiry today!
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