2011_3-4_Commonwealth

MAJOR FORM CHANGES (p. 16) • THE REAL MID NUMBERS (p. 26) March/April 2011

A journal for real estate professionals published by the Virginia Association of REALTORS® • www.VARealtor.com

When I’m 64 The Boomers are retiring. Here’s how to be ready for them.

firstword ANDREW KANTOR

Published by The Virginia Association of Realtors® The Business Advocate for Virginia Real Estate Professionals John Dickinson, CCIM, GRI President Trish Szego, CRB, CRS President-Elect Mary Victoria Dykstra, ABR, CRS Vice President John Daly, SFR Treasurer Cindy Stackhouse, GRI Immediate Past President R. Scott Brunner, CAE Chief Executive Officer scott@varealtor.com Amanda Rainsford 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.

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Old folks at home I am blessed with old parents.

My folks were Depression kids — born in New York in 1924 and 1928. It’s actually a multiple blessing — they’re still alive, still coherent (although Mom’s hearing is a bit iffy), and I get to hear stories about the old days. How many kids have heard about the time when there was one phone in a neighborhood? Or lived two houses down from the last icedelivery man in New York?* Dad still has, in his basement, the Compton’s Encyclopedia he bought for my sister back in the Days of Yore, when words ended in “e” (olde, shorte, towne, etc.)

“Someday,” it promised, “Man may travel to all seven planets.”

It warned of the danger posed by The Hun (despite the whupping we gave them in 1918), and suggested that hard-working women could become teachers, librarians, or even (!) nurses.

It has photos of dodos and passenger pigeons. It covered the brontosaurus; none of this “apatosaurus” silliness. Looking to read about cars? Turn to “H” — for horseless carriage (“a fad among the urban elite”).

Maybe I’m exaggerating a bit, but that’s how it feels.

Dad’s house in Queens is the one he bought in 1956 for $17,500; it’s now worth something in the $400K range. Back when that Compton’s was new, *Seriously

enterprising youths would go door to door offering to shovel walks for a few bucks. Today we have none of that; Xboxes and Playstations call louder than a fistful of dollars. Dad has to shovel his own walk when a friendly neighbor doesn’t.

So he’s thinking about moving to a place that won’t require maintenance — at least not on his part. Let someone else shovel the walk, mow the lawn, fix the pipes. (“What’s with all this newfangled copper? Lead aqueducts were good enough then and they should be good enough now!”)

He’s not alone. Many of his Greatest Generation are already in, shall we say, alternative housing, where things are easier — no stairs to walk or walks to shovel.

Others are reaching the point when they’ll want to. Lord knows they’ve earned it.

And then there are the baby boomers, hitting their mid-60s and looking to retire. For many, that means moving somewhere else — for convenience, to escape the worsening weather, or simply because, heck, they can.

Did someone say “moving”?

Because helping people move is what Realtors® do best. The question is, are you ready for the boom? l Andrew Kantor, Editor andrew@VARealtor.com

Volume 18 ● Issue 2 MARCH/APRIL 2011

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March/April 2011 Volume 18 ● Issue 2

contents

departments 4 quickhits The latest news and announcements for Virginia’s Realtors®

8 statswatch The numbers that shape your world

10 legallines Questions and answers about Virginia real estate law

14 lifelessons When real estate pros break the rules ... and get caught

16 formfactor The new Form 400 has some important changes

features

18

28 accessibletech Easy and cheap ways to protect the data on your smartphone

in every issue 1 firstword

32 rpacreport

26

When I’m 65 The first wave of baby boomers turns 65 this year, and the implications for Virginia Realtors® are huge. Seniors will downsize, families will want more room for aging parents, and a whole new set of amenities will emerge at selling points. Ready?

MID by the numbers There is a list of reasons we’re fighting to protect the mortgage interest deduction — protecting property values, supporting the middle class, and keeping the economic recovery on track. Here are the talking points.

39 contactvar 40 lastword APEX Award of Excellence winner 2

MARCH/APRIL 2011

www.VARealtor.com

FOR FRANCHISE INFO Contact Nancy & Tom Shaver

EXIT Realty Virginia Office: 800-906-3948 info@exitvirginia.com Brokerage, Independently Owned and Operated. Not intended to solicit individuals or property already under contract.

quickhits

ANDREW KANTOR

Standard forms

Important: Major changes to Form 400 To comply with NAR rules regarding the marketing of property on the Internet, VAR has updated its Form 400 — Exclusive Authorization to Sell. This is a significant revision to the form, and you should begin using the new version immediately. The newest version is available through ZipForms at VAR’s Forms Center: VARealtor.com/standardforms.

The revised form allows a property owner to make certain choices about Internet marketing, as covered in Section 5(d), as well as authorize the use of electronic signatures. A cover sheet will be added to Form 400 to explain the Internet policy to the property owner, but here are the changes you should be aware of:

Internet advertising is voluntary.

• An owner may opt out of having the property listing or property address displayed on the Internet. Thus, the owner can either omit just the property address or the entire property listing from the Internet.

• A broker may not opt out or circumvent the owner’s decision to opt out of the Internet.

• If the owner wants to opt out of Internet advertising, the owner must: • select option A or B in the “Opt out of Internet” box in Form 400; and • initial the acknowledgment in the space provided.

listings in immediate conjunction with the property.

• Third-party comments and valuations.

• The owner must select either: “authorize” or “does not authorize” third-party comments or reviews about the property.

• The owner must select either: “authorize” or “does not authorize” an automated estimate of the market value of the property.

• If the owner opts out of Internet advertising, then the owner must not authorize third party comments and automated market values.

Electronic signatures are allowed if all parties agree to use them. The revised form includes this option.

If authorized by the property owner, a broker’s website may also allow the display of certain information.

• Third-party comments or reviews about the property or a hyperlink to comments or reviews in immediate conjunction with particular listings.

• Third-party comments include blogging, Facebook, MySpace, and other social- and business-networking websites or electronic communication.

• If a broker is notified of false information being posted about the property, the broker has an obligation to remove it.

• An automated estimate of the market value of the property (or a hyperlink to such estimate) or other 4

MARCH/APRIL 2011

Some forms providers have already included the required NAR change (e.g., NVAR and RAR). You do not have to use VAR Form 400 if you are already using a form with the opt-out language.

Brokers with questions about the changes can call VAR’s Legal Hotline at (804) 622-7955.

— Blake Hegeman, VAR Legal Counsel

For more on Form 400, see Form Factor on page 16. www.VARealtor.com

Tax law

Video update

New NAR guidelines for short sales

Significant re-fi tax change in Fairfax Virginia law says that if you refinance your mortgage with a different company than your original mortgage, you must pay the full recordation tax. But if you refinance with your existing lender, the transaction is exempt from paying the recordation tax again. (VAR fought unsuccessfully to change this law this year.)

However, because of so many bank closings and mergers — not to mention the secondary lending market and the entire mortgage securitization issue — it can be difficult to determine whether the re-fi lender is the same as the original lender. In general, though, Virginia Circuit Court Clerks have taken homeowners at their word when they refinance and claim the exemption.

But Fairfax County has imposed a requirement for an additional level of proof. According to John Frey, the clerk of the court there, re-financers who want the exemption will need to provide a statement from MERS showing the owner of the note, or a statement from both Freddie Mac and Fannie Mae showing that they don’t own the loan. The county will also require a copy of the first page of the prior Deed of Trust.

Frey — who made it clear that he supports eliminating the refi tax entirely — pointed out that the vast majority of homeowners are not eligible for an exemption because most loans are sold to Freddie Mac, Fannie Mae or institutional investors; the original lender only services the loan. Assuming Frey’s interpretation is correct, the higher standard may spread to other jurisdictions, as fewer exemptions means more money for cash-strapped localities.

Frey said his experience is that many homeowners’ advisors (formal or informal) are telling them — incorrectly — that they qualify for the refi tax exemption. That leads to some unhappy homeowners when they’re presented with the bill. If you’re giving advice to your clients, be aware of the letter of the law, and — if you’re in Fairfax — of how strictly it’s being enforced.

Volume 18 ● Issue 2

If you work with clients who are doing short sales, thinking about short sales, or who you believe should be thinking about short sales, the Federal Trade Commission might be interested in you. You might not realize you’re engaging in what’s considered mortgage-relief counseling — when you cross the line from helping someone do a short sale to giving them advice about it.

If you cross that line, you enter the world of FTC’s regulations.

VAR VP of Law & Policy Jay DeBoer stars in a short video that explains the rule and how it affects you. View it at VARealtor.com/ shortsalesupdate.

Tax info

IRS info for Realtors® Our friends at the IRS have a useful Web page just for Realtors® and other RE pros — unfortunately, it’s a bit buried in the site.

It’s the IRS’s Real Estate Tax Center, and it’s got a bunch of info — general tax tips for people involved in real estate, tips on avoiding problems, real estate financial resources, and more.

You can navigate IRS.gov yourself, or simply follow our easy link to it:

www.VARealtor.com/ irsinfo.

File under “Worth checking out.”

MARCH/APRIL 2011

5

quickhits Marketing

Free content

FSBO vs Realtor® The folks at HomeGain (they provide marketing tools to real estate pros) did a survey — FSBO vs. Realtor®. They asked more than 1,000 homeowners about their experiences selling a home.

What they found, by the numbers:

59% > 39% Used a Realtor® and were successful selling

Went FSBO and were successful selling (but of those, only 71% would go FSBO again)

88% > 81% Used a Realtor®, were able to sell their home, and would use a Realtor® again

24%

Used a Realtor®, were unable to sell their home, but would use a Realtor® again

Went FSBO, couldn’t sell, turned to a Realtor®

The survey didn’t go into things like ask vs. sale price, which is probably good — the FSBO numbers are skewed because so many are done between people who know each other beforehand.

Read the details at VARealtor.com/fsbo-vs-realtor.

First 2011 housing sales data — ups and downs Housing sales in Virginia were down in January — about 6.75% compared to 2010, with the number of new listings dropping 15.7% year to year. In February, though, sales of single-family homes were almost identical to 2010: 4,178 units vs. 4,188 the year before. (From February 2009 to 2010 sales had dropped almost 8%.)

Total sales dollars were also almost unchanged year to year; the figure had dropped 4.2% from Feb. 2009 to 2010, so again good news.

That’s statewide. Locally, things were different. Sales in the Blacksburg, Danville, Lynchburg, Northern Virginia, and Winchester areas were down both months compared to 2010, while those in the Charlottesville, Richmond, Roanoke, and Virginia Beach-NorfolkNewport News regions were up. (In NoVA, though, sales dollars were up slightly in February.)

In other words, the markets remain mixed, volatile, and unpredictable.

6

MARCH/APRIL 2011

NAR offers free content for newsletters, websites Want to show your clients that when it comes to real estate, you’re the expert? Hint: Posting your listings to your Web page or Facebook account isn’t going to impress them.

NAR hopes it has a better idea: the Realtor Content Resource at www.houselogic.com/members.

Simply put, it’s a way to get great content for your clients however you want to — print, e-mail, Facebook, blog, whatever. The content comes from HouseLogic, NAR’s consumer site, and it’s written by journalists and other experts who know their stuff and know how to write about it.

Think of it as a library of useful articles that you can use, gratis.

After all, a good website (or newsletter) is about content. If it’s not interesting, you won’t get people coming back or caring what you have to say.

Here’s an off-the-cuff sample of some of the articles you can grab: • Should You Move or Remodel?

• Cleaning House: Secrets of a Truly Deep Clean • Contractor Liability: Are You Covered for Mishaps?

• Recasting Your Mortgage: Refinancing’s Forgotten Sibling And how about this: To convince you to at least check out the RCR, when you sign in, you can enter a drawing to win $150 Visa gift cards (weekly) or an Apple iPad (monthly).

Free content, good content, and a chance at some prizes. Whatcha waiting for? l www.VARealtor.com

, s d r o l Land tise Adver ntal e R r u Yo , y t r e Prop !

Free

VirginiaHousingSearch.com List one property for rent — or hundreds!

Easily add photos, amenities, neighborhood info and more.

Log on any time, or call 877-428-8844.

Sponsored by the Virginia Housing Development Authority

statswatch Going down?

$224,350

It’s relatively common knowledge (and common sense) that the most popular homes are in about the $125,000 - $300,000 range. But let’s look a little closer and see how that breaks down — and how it’s broken down over the past few years.

We’re looking at units sold of single-family homes in the first two months of each year.

Median sales price, Jan. - Feb. 2010

$213,000

Median sales price, Jan. - Feb. 2011

Units sold in each price category 1600 1400 1200 1000 800 600 400 200

Jan - Feb 2009

Jan - Feb 2010

MARCH/APRIL 2011

$1,000,000+

$950,001 $1,000,000

$900,001 $950,000

$850,001 $900,000

$800,001 $850,000

$750,001 $800,000

$700,001 $750,000

$650,001 $700,000

$600,001 $650,000

Jan - Feb 2011

So what’s to notice? Well, there seem to be two separate patterns. For homes priced from $50,000 to $200,000, sales drop from 2009 to 2010, and again from 2010 to 2011. But somewhere in the $250,000 to $300,000 range it changes, and sales begin to climb over the past two years — even for homes in the millionplus range.

8

$550,001 $600,000

$500,001 $550,000

$450,001 $500,000

$400,001 $450,000

$350,001 $400,000

$300,001 $350,000

$250,001 $300,000

$200,001 $250,000

$150,001 $200,000

$100,001 $150,000

$100,000 or less

0

What does it mean? Are higher-priced home sales recovering faster? Is the under-$250K market still falling?

I wish we knew the answers, but the reality is that the market is a mess, and drawing conclusions (what effect did the tax credit have?) is all but impossible.

Correction: Drawing correct conclusions is impossible.

But feel free to guess. l

www.VARealtor.com

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 BLAKE HEGEMAN

Signed, sealed, delivered For generations scholars have published volume after volume on contracts.

Even today, you can walk into almost any court house in the United States and someone will be arguing over a contract. Contract law is very broad, but two common problems in the context of real estate transactions involve contract formation and termination. Below are answers to common questions we get on the Hotline.

Q.

A buyer received a counteroffer and verbally accepted it, such acceptance being communicated to the seller. The buyer later signed the counteroffer and gave it to her agent to deliver to the seller. Before the signed contract could be delivered, the buyer changed her mind and instructed her agent not to deliver it. The seller wants to enforce the contract. Is there a valid contract? Is it enforceable?

A. Yes to both questions. As to the validity of the contract, we know

that a contract existed as of the time of the verbal acceptance of the counteroffer. At that point, of course, the contract was not enforceable against the buyer under the Statute of Frauds because she hadn’t signed anything.

The Statute of Frauds requires contracts for the sale of real property to be in writing and signed. The contract cannot be enforced against a party who does not sign the contract.

However, once she signed something (in this case, the counteroffer), the already-valid contract became enforceable. The buyer’s effort to withdraw acceptance came too late because the valid contract had become enforceable.

You should review your contract regarding acceptance. For example, the Richmond Association of Realtors’ contract specifically states that withdrawal of an offer can occur until a signed contract is delivered to the other party.

10 MARCH/APRIL 2011

Q.

What is the difference between terminating and releasing a contract?

A. Termination is generally the

unilateral act of a party declaring the contract at an end. For example, a buyer terminates upon being refused a loan. A termination of this sort does not rely upon the agreement of the other party.

A release is a mutual act by which one or more of the parties are released from obligations under the contract pursuant to whatever agreements the parties have reached. For example, Firm A can release sellers from a listing and sellers agree to pay Firm A’s advertising expenses.

Or sellers can release buyers if buyers forfeit the deposit. Both buyer and seller must sign the release for it to be effective.

Just sending a release to the other side does not usually constitute the act of termination.

If your client wants to terminate, do so unambiguously.

Keep in mind that termination may work to end the contract, but it does not release the parties from liability (i.e., one party may sue if it feels the other party has done something improper). On the other hand, a release not only terminates the contract, but releases each party from any and all liability. So if you send a termination letter it’s a good idea to include a release to wrap all issues up. www.VARealtor.com

NEW NUMBER!

VAR Legal Hotline (804) 622-7955

Q.

We have a situation with a relocation company. We made an offer on a home that is owned by a relocation company and after several counters the company notified us that we had a ratified contract. The relocation company required a clean contract; so, we prepared a clean contract with all the negotiated terms per the company’s request. Now, they will not sign.

A. Did they ever sign the original one?

If so, whether they ever sent it to you or not, you probably have an enforceable contract (assuming your offer didn’t provide something to the effect that it could be accepted only by returning an original or fax to the selling agent’s office or some such). The phone call constituted delivery. You’ll need to show they signed it, however, for the contract to be enforceable, because of the statute of frauds. Perhaps someone at the relocation company could help?

Your client has a contract, on these facts. However, without a signature, it’s very difficult to enforce it.

Q.

The buyer has breached the purchase contract with the seller. With my seller’s permission, should I inform the buyer that we are terminating the contract?

A. If the seller terminates the contract, she might release the buyer from

his obligation for damages due to his breach.

If the buyer breaches or repudiates the contract — refusing or failing to close — and the buyer does not have a reason to do so under the contract, the seller should declare a default but not terminate.

Also, at a minimum, the closing attorney should send a letter stating that the non-defaulting party is “ready, willing and able to close”.

The non-defaulting party can also demonstrate her ability to close. For instance, if the buyer is in default, I recommend that the seller sign the deed and other closing documents and have her attorney send them to the buyer’s attorney demonstrating she is ready, willing and able to close.

The seller can then remarket the property and hold the buyer responsible for resulting damages, if any.

In this situation please consult an attorney before proceeding.

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.

Volume 18 ● Issue 2

Monday through Friday, 10 a.m. – 4 p.m.

The VAR Legal Hotline is a free, members-only benefit for brokers.

You can receive answers to questions about Virginia real estate law, and timely information on legal and regulatory issues concerning the real estate industry.

The Legal Hotline provides legal information, not legal services. You should consult your attorney if you need representation or advice.

You must register for the Hotline before you can call. Registration is free and quick. Go to www.VARealtor.com/legalhotline; you will need your NRDS ID number.

Who can use the Hotline?

• You must be a principal or supervising broker.* • You must be a VAR member.

• You must have registered for the Hotline (see above).

• You must have your NRDS ID number available when you call. (* Each office can have one other person designated by the principal broker for Hotline access.)

E-mailing the Hotline You can e-mail your questions to hotline@ VARealtor.com.

• Responses will be by phone; we no longer provide written answers to Hotline questions.

• You must include your full name, phone number, and NRDS ID. We cannot respond to messages that do not include all three.

• We will try to respond within 24 hours, but response time depends on Hotline activity.

Not a broker or member?

If you aren’t eligible to use the Hotline, you can browse and search our Hotline archives at www.VARealtor.com/hotlinearchive and find more legal and risk management information in VAR’s Legal Resources Center at www.

VARealtor.com/legalresources.

You will need your NRDS ID number to log into the site.

Questions?

If you have questions about the Hotline, contact VAR at (800) 755-8271 or (804) 264-5033, or by e-mail at info@VARealtor.com The VAR Legal Hotline should not replace your own legal counsel. We will not answer questions on matters 2011 unrelated to real estate orMARCH/APRIL real estate brokerage, nor can11 we help with pending arbitrations.

legallines Fido and fair housing I recently reviewed the four VREB Speaking newsletters that the Real Estate Board published in 2010. The disciplinary content confirmed what I often say during a fair-housing presentation, which is that an agent or broker’s likelihood of appearing before the board on a fair housing violation is very, very small.

My review of the four newsletters revealed that in 2010, 10 agents and/or brokers resolved complaints with the Board that had been filed against them. I believe 10 is indicative of the number of agents who resolve fair housing complaints with the Board most years. (In a future edition of this article I hope to provide more details about the allegations in the ten complaints that were resolved in 2010.)

Q.

A property owner is highly allergic to animal dander of any sort. His is being transferred out of the area for two years, after which he will return home. He wants to rent out his home while he is away, but because of his allergies to animal dander, he wants to prohibit animals of any kind from living in his house.

Can the homeowner — using the services of a licensee — legally prevent animals of any kind (even service animals) in the home?

A. A non-licensed owner who

uses the services of an agent has fewer options than an owner who does not use an agent. Nevertheless owners who use agents may still prohibit applicants with pets from applying to rent their house. On the other hand, if someone with 12 MARCH/APRIL 2011

a disability who uses the services of an assistive or service animal applied to rent the house, the owner could not prohibit them from applying. And if the disabled applicant qualified to rent the house the owner could not refuse to rent to them.

The results are different because disability is a protected class.

And because allowing reasonable modifications and making reasonable accommodations are things that landlords and owners may be required to do under the fair housing law.

As for the owner’s allergies, if he decides to rent his house he will have to do so with the understanding that upon his return he may have to have the

house professionally cleaned at his expense. That because having to clean carpets and paint is often associated with normal wear and tear occurrences that landlords generally pay for as a cost of doing business. Additionally the fact that disability is a protected class and service animals are not considered pets are other reasons why a landlord may be prohibited from insisting that a disabled tenant pay to clean the carpets before vacating the property. l John Cancelleri is a Virginia attorney and former director of Virginia Fair Housing Office.

www.VARealtor.com

The NAR and RPAC Leadership would like to thank our 2010 Major Donors from Virginia for their generous support of the REALTOR® Party.

Thank You

Golden R

Thomas Jefferson, III John McEnearney John Powell RE/MAX Allegiance

H Charles Burnette Billy Chorey, Sr. Dennis Cronk

H John Dickinson Joseph Funkhouser H Dorcas Helfant-Browning Steve Hoover

H Thomas Stevens H Melanie Thompson H Jack Torza

Charlottesville Area Association of REALTORS® Dulles Area Association of REALTORS® Fredericksburg Area Association of REALTORS® Northern Virginia Association of REALTORS® Richmond Association of REALTORS® Roanoke Valley Association of REALTORS® Williamsburg Area Association of REALTORS®

Crystal R Michael Minnery H Jane Quill

Sterling R Bob Adamson Guy Allen Julia Avent Deborah Baisden C.C. Bartholomew Bob Barton Mary Bayat Lee Beaver Gail Belt Mary Ann Bendinelli Laura Benjamin Karen Bohlke Enriquez Bradley Boland Candice Bower Kevin Breen R. Scott Brunner Curtis Burchett Robyn Burdett Christopher Call Dale Chandler David Charron Pat Clark

Vic Coffey Billy Coons Patrick Cowne Jessica Decker Benton Downer Mary Dykstra Sandra Ferebee Claire Forcier-Rowe Virgil Frizzell Pamela Frohman Karen Gaskins Libby Gatewood Bill Gearhart Charlee Gowin Arthur Grace Lynn Grimsley Kit Hale Margaret Handley Lizzie Hernandez David Hess Tom Innes Donn Irby

Margaret Ireland Betty Jasmund Jo Anne Johnson Sita Kapur Kathleen Kennedy Patricia Kline Barbara Jean LeFon Richard Limroth George Lyons Scott MacDonald Andy Mason Shane McCullar Glenda McDaniel Susan Mekenney Dee Meredith John Meyer Tom Meyer David Michalski Jay Mitchell Percy Montague Vicki Nellis Vinh Nguyen

Lee Odems Forrest Odend’hal Boofie O’Gorman Susan Oh Gwen Pangle Gail Penman Lonnie Plaster Tracy Pless Anne Rector Peter Rickert Thomas Rickert Zinta Rodgers-Rickert Suzanne Rose Henry Scholz Trudy Severa Jean Siebert Kimber Smith Cindy Stackhouse Wes Stearns Suzy Stone Mack Strickland Crystal Sullivan

Joe Sutliff Trish Szego Richard Thurmond Christine Todd Karen Trainor Kevin Turner Sandra Wagner Todd Wampler Mary Ann White William White Barbara Wolcott Jon Wolford Sheraton Yee Tony Yeh

Greater Augusta Association of REALTORS® Harrisonburg-Rockingham Association of REALTORS® Lynchburg Association of REALTORS® New River Valley Association of REALTORS® Southside Virginia Association of REALTORS® Virginia Peninsula Association of REALTORS®

NATIONAL ASSOCIATION of REALTORS®

H NAR President’s Circle member

Hall of Fame members are in gold.

RPAC Major Donors as of 9/30/2010

lifelessons Andrew Kantor

The little and the big Bad seed

Sue never received the rejection notice, because it had been sent to an e-mail address that Sue never used.

Return to sender Sue’s client, Richard, was interested in a property that was being sold at auction. Sue submitted his bid to the auction website. A week later, when Richard asked about the status, Sue told him that the property had sold at auction but she didn’t have any further information.

A few days later, Richard contacted the selling firm directly and asked about the property. The seller said that Richard’s offer had been below the selling threshold, and that a rejection notice had been e-mailed to Sue as soon as the offer had been submitted.

Sue never received the rejection notice, because it had been sent to an e-mail address that Sue never used. (It was one that her Internet provider gave her; Sue used Gmail for all her work.) Neither Sue nor the auction company knew why the notice was sent to that address, but Richard was angry enough to file a complaint.

For failing to tender promptly every written offer, counteroffer, and rejection — which is considered misrepresentation /omission — Sue was fined $650 and required to take four hours of continuing education.

14 MARCH/APRIL 2011

Raquel (a real estate agent) and her client, Walt, had worked together for almost a decade on various transactions, including property management and investments.

In April, Raquel told Walt about an investment opportunity: an REO home was being sold for $400,000, and Raquel already had a client willing to pay $600,000. Walt agreed to buy it, and gave Raquel a check for $10,000 as an earnest money deposit.

Then nothing happened. In fact, Walt found he couldn’t get in touch with Raquel for several months.

In November, though, Raquel presented Walt with a contract for the home. But Walt sensed something fishy and called shenanigans. Raquel then offered to return Walt’s $10,000.

She never did.

Meanwhile, Raquel was also acting as the leasing agent for some of Walt’s properties. In July and August, two new tenants had moved into properties of Walt’s.

Although the lease made it clear that the security deposit and rent checks were to go to the landlord, Raquel had the tenants give them to her.

She collected almost $12,000 between the two tenants’ rents and security deposits, and ignored Walt’s requests to send him the money.

In November, Raquel finally sent a check for $4,500.

It bounced. Walt complained to the Real Estate Board, which began to investigate.

Phone and written messages to Raquel went unanswered. When a Board representative visited her, Raquel said she had been out of town and arranged for a meeting a few days later. She never showed up.

Another date was arranged, but that morning Raquel’s sister called to say Raquel was in the emergency room. The Board contacted the hospital; Raquel was not there. The Board had had enough.

For a host of dishonest conduct, as well as failing to respond to the Board’s requests, Raquel was fined $12,500 and had her license revoked. l

www.VARealtor.com

Big difference.

Realtors® who hold a designation like GRI typically earn more than twice as much as those who don’t. All it takes is 12 classes — and a commitment to your career.

GRI: Your first next step.

It’s time to get serious. Go to VARealtor.com/GRI

Another great member service brought to you by the Virginia Association of REALTORS®

formfactor Blake Hegeman

This issue: Form 400 changes

Forms — they’re the bread and butter of a

Internet advertising is a powerful marketing tool, but property owners have the right to determine whether or not their property information is displayed on the Internet and if so the manner in which it is presented. VAR has updated its listing agreement — specifically, section 5(d) — to allow clients to choose, and to comply with NAR rules requiring the owner option.

A coversheet will be included with all Form 400s explaining the changes, and an instructional document will be sent to all brokers.

deal. They’re full of fine print and legalese, and not everyone “gets” the details. And that often ends up as a call to our Legal Hotline. (Shameless plug: (804) 622-7955.)

(d) Owner authorizes the dissemination of Property/ sales information to MLS participants, including electronic format, magazines and other media. If authorized below, Broker’s website may also allow third-parties to (i) write comments or reviews about the Property or display a hyperlink to comments or reviews in immediate conjunction with particular listings, or (ii) display an automated estimate of the market value of the Property (or hyperlink to such estimate) or other listings in immediate conjunction with the Property.

So we asked our intrepid legal counsel (read: lawyer), Blake Hegeman, to take one of the forms the Hotline gets the most questions about and illuminate it for us.

They’re all available, free for download, at www.VARealtor.com/ standardforms.

Electronic signatures?

It is increasingly common for parties to sign documents electronically.

However, the law requires that for real estate purchase contracts the parties must agree beforehand to deal electronically.

The following provision was included in Form 400 (and will be in VAR’s purchase agreement soon) to meet this requirement: 16 MARCH/APRIL 2011

ELECTRONIC SIGNATURES. ______ /______ If this paragraph is initialed by both parties, then in accordance with the Uniform Electronic Transactions Act (UETA) and the Electronic Signatures in Global and National Commerce Act, or E-Sign, regarding electronic signatures and transactions, the parties do hereby expressly authorize and agree to the use of electronic signatures as an additional method of signing and/or initialing this Agreement. The parties hereby agree that either party may sign electronically by utilizing an electronic signature service.

www.VARealtor.com

Feeling lucky?

Don’t take a chance with your real estate license. If you aren’t sure, visit VAR’s Legal Hotline archive. It can help you figure out what’s a smart move — and what isn’t.

www.VARealtor.com/LegalHotline

Another great member service brought to you by the Virginia Association of REALTORS®

When I’m 6 4 Many members of the Baby Boom generation — one of history’s largest — are making decisions about where and how to live out their lives.

18 MARCH/APRIL 2011

www.VARealtor.com

By Liam MacLeod

I’m a baby boomer. You’re a baby boomer.

Everyone’s a baby boomer. So it seems these days.

Jimi Hendrix didn’t make it out alive. Neither did Janis nor the Lizard King nor Pigpen of the Grateful Dead.

But a heckuva lot of people survived the ’60s and ’70s and they’re just about everywhere you look. Including, perhaps, in the mirror.

Virginia, like most of the nation, is aging — and aging quickly. A 2009 report from the state’s Department for the Aging estimates that “the number of Virginians over age 65 will reach 1.8 million by 2030 — or more than double the number in 2000.”

Put another way, within 20 years one in five Virginians will be over 65.

It’s a trend the Fairfax County Board of Supervisors calls a “silver tsunami”; it predicted a 32 percent increase of adults 50 and older in the county by 2020.

This demographic storm surge already swirls around the ankles of Virginia Realtors®. The oldest of the boomers — a generation of people born between 1946 and 1964, are turning 65 this year.

Many Realtors® across the state are suited up and prepared to perform swimmingly when older clients seek specialized expertise. Many are not.

Boomers tend to be an educated lot.

They harbor high expectations and ask tough questions. Questions like: What is a reverse mortgage, and what are its pros and cons?

How might I use pension funds, a 401(k), or an IRA to help finance a Volume 18 ● Issue 2

real estate transaction?

My kids want us to go to an assisted-living facility. Can you tell them to buzz off?

And what in the world is a “granny pod?”

Age appeal Boomers wield power as a political bloc, and as educated, discriminating consumers. Federal, state, and local governments recognize this clout, as do non-profits and savvy businesspeople.

Trends suggest this post-World War II generation will have more housing options in old age than preceding generations as pressure mounts to meet their needs.

John Martin and Matt Thornhill coauthored the book Boomer Consumer: Ten New Rules for Marketing to America’s Largest, Wealthiest and Most Influential Group. In an interview with USA Today, Thornhill, based in Richmond, described the boomer generation as a demographic dynasty that cannot be ignored.

“If you don’t have a strategy for making your product relevant to [age] 50-plus consumers, you will have a very rough time over the next 20 MARCH/APRIL 2011 19

years,” Thornhill told the newspaper.

Some real estate firms are going beyond creating strategies. Out in Encino, Calif., for example, Eva Rosenberg describes herself as “The Baby Boomer’s Broker.” And Pennsylvania-based Boomers & Beyond Realty touts itself as the agency for the 50-plus generation; its home page cites the company’s bullpen of professionals and services, ranging from reverse mortgage experts to grief counselors.

Time, empathy, and patience

907,858

Estimated number of Virginians 65 and older in 2009

1.8 million Estimated number by 2030

1 in 5 Chance in 2030 that a Virginian will be 65 or older

20 MARCH/APRIL 2011

Back home in Virginia, Karl Ford, a Realtor with Roanoke-based MKB Realtors, completed coursework for the National Association of Realtors®’ Seniors Real Estate Specialist designation a few years ago. Ford, a boomer himself at 57, has nearly 28 years in the real estate business. He had established — before earning the SRES designation — a sort of unofficial specialty in serving older clients, a segment he said he thoroughly enjoys.

“About five or six years ago I began to see the demographics I was working with start to change,” he explained. “I began to get calls from people I went to high school with who I hadn’t heard from in 30 or 40 years.”

Their needs varied, he said. For some, the death of a parent, or a parent entering a nursing home, required listing their home. Others sought help in the midst of full-bore rumination about relocation decisions — information about the pros and cons of patio homes, independent living, or assisted-living facilities. And some callers wanted details about real estate investment.

Seeing the direction of his business, Ford began to build a network of

organizations and people to help him boost customer service and satisfaction, and to spread the word about his expertise with older clients.

He found reputable providers of reverse mortgages who candidly discussed this option’s pros and cons.

He nailed down facts about housing options for older adults in his market, including independent living, assisted living, nursing homes, and more. He contacted community agencies to learn about services, such as Meals-onWheels, that can allow older clients to remain in their homes.

And Ford refers older sellers to regional businesses like Crowning Touch Senior Moving Services in Roanoke. The company specializes in moving older customers, but it also offers auction and consignment services — after all, someone relocating from a 3,000 square-foot house to a patio home might have 30 or more years of accumulated stuff that the smaller home simply can’t accommodate.

An older client’s move can elicit strong feelings, he said. For some, this move will likely be their last.

Consequently, many such clients who contact Ford take months and even years to act.

“You’ve got to be very understanding and very patient,” he said.

As one example, nearly three years passed between Ford’s first contact with a retired couple who were considering a retirement community and the couple’s ultimate decision to sell their home. In this case, he said, the couple waited too long. The wife suffered a disabling stroke and her husband regretted not acting sooner.

When Ford visited, the husband stepped outside with him. www.VARealtor.com

“He came out and gave me a big hug and started crying,” Ford recalled.

“He told me, ‘I feel overwhelmed.

Why didn’t I do this three years ago?’“ To promote his expertise, Ford met with groups of older adults and crafted a brochure that describes his experience in the market, including the value of his SRES designation. (See the box on page 23.)

In Richmond, Realtor® Tom Gaye, principal broker for Rushing Realty Agency & Services, also enjoys working with older adults.

“First of all, I’m a baby boomer and am faced with many of the same issues affecting this large group of consumers,” he said. “I very much relate to their financial needs, objectives, and the estate and tax planning they are contemplating when making real estate decisions.”

Gaye observed that the generation’s diverse ages, circumstances, and needs challenge efforts to attract boomers’ business.

“From a marketing standpoint, the demographics are overwhelming, creating a supply of buyers of all types — ‘trade-ups,’ downsizing, second homes, and investors,” he said.

Like Ford, Gaye developed relationships with professionals who support his work with older customers. He said the team includes lawyers, CPAs, financial advisors, reverse mortgage specialists and others.

Gaye himself became an SRES designee in 2008, and uses it as part of his marketing campaign. “The SRES has positioned me as a professional resource for this community,” Gaye said. And being a resource helps him get referrals, which, he said, play a key role in reaching the boomer demographic.

Volume 18 ● Issue 2

Marketing Tips The baby boom generation’s huge numbers and diverse needs present both challenges and opportunities for Realtors®.

A cottage industry of consultants, authors, and academics has emerged to weigh in with tips about how to reach and cultivate this demographic.

One of them, boomer marketing expert Jerry Shereshewsky of GrownUpMarketing, offers these tips: Stop calling them “aging.” Yes, they (and the rest of us) do age every day. The oldest boomers are just turning 65 and the youngest are in their middle 40s. It sounds like a small thing but, believe me, language defines so many other things … especially when it comes to marketing to baby boomers.

Few boomers actually recognize that they are boomers. Another language hint.

Grandparents are a critical subset of the boomer market. The average age for a first time grandmother is 50 (it’s 53 for grandfathers).

They have (or will shortly have) a whole other set of priorities, and real estate plays a large role there.

As many as half of all grandparents currently carry little or no mortgage on their main residence.

A significant number of the children of boomers are having a way tougher time in this economy. Many are moving back home, often with grandchildren in tow. As many as 20 percent of U.S. households are now multi-generational, and this number is only going up.

The two largest immigrant groups, Latin Americans and South Asians, are culturally attuned to multi-generational households. For them, houses with “mother-in-law suites” are a real plus.

While the industry has been talking about [older adults] downsizing houses for many years, I believe the truth is just the reverse.

Two- and three-generational households will want bigger, not smaller houses.

MARCH/APRIL 2011 21

54 Nationally, the age of the median Realtor® — who is also female, attended college, and is a homeowner, according to NAR.

78.2 million Total baby boomers in the U.S. as of July 1, 2005.

36 Estimated percentage of boomers in Virginia with a bachelor’s degree or above.

(Compared to 24% for ages 65 to 84, and 17% for those 85 and older.)

22 MARCH/APRIL 2011

“I always ask [clients] if they know any friends or family members who may be contemplating a change in their housing,” Gaye said. “With this market segment, performance and superior knowledge drive referrals.”

Like Ford and Gaye, Realtor Linda Laub Canty, an associate broker for Fredericksburg-based 1st Choice Better Homes & Land, said she enjoys working with older clients — an affinity she has pursued.

“I really wanted to learn better how to work with and help seniors in their transitions,” Laub Canty said. “For many years, I’ve realized that I have such a tender spot in my heart for seniors and am so aware of how easily they are often taken advantage of.

“I just wanted to be sure I knew how to help them more effectively — and even how to market more to that group since I enjoy them so much,” she explained.

In one transaction, she faced unique circumstances.

“One time I received a call from a seniors’ apartment complex. Because of my [SRES] designation they had gone to the site and searched for an agent in the area,” Laub Canty said.

“Their biggest problem was that they had people who wanted to move to their [seniors] community but they had homes to sell, the market was slow, and they had no idea about where to start.”

Laub Canty collaborated with the facility to create a seminar during which she described the selling process and, like Ford, offered referrals to local companies that could help older homeowners sort through years of amassed belongings and memorabilia.

Of course, not every senior is planning to move.

‘Aging in Place’ National surveys show that about 90 percent of boomers hope to “age in place” — live independently and preferably in their own homes as long as possible or, at the least, in their current communities.

Problem: Many of them live someplace that makes living inconvenient at best — in suburbs, for example, and “often in homes that present barriers as we age and [are] located outside of public transit routes,” according to the Virginia Department for the Aging.

For older residents who no longer drive, a suburban home can isolate them from grocery stores, pharmacies, medical services, and more. Many subdivisions lack sidewalks and their absence discourages older adults from walking for exercise.

That’s a driving force behind new housing options, including the development of so-called “livable communities” intended to provide affordable housing appropriate for older residents, as well as walking paths, public transit, and opportunities for residents to remain engaged in social and civic activities.

In some cities, older adults choose renovated spaces downtown. In Roanoke, for example, the U.S. Census Bureau found the number of people living in its downtown rocketed 1,600 percent from 2000 to 2010. Seeing a storm surge like that has prompted some Virginia communities to craft strategies to respond.

The Thomas Jefferson Planning District, which serves Charlottesville and the surrounding area, helped shepherd “The 2020 Plan: Aging in Community.” It suggests goals and approaches to realize them, and it’s intended to help guide decisions to www.VARealtor.com

meet the specific needs of boomers in the decades ahead.

To the east, Fairfax County, working with the Fairfax Agency on Aging, has released its “50+ Action Plan.”

It tackles “critical and interdependent issues of housing, community planning, care giving, health, mental health, transportation, technology, and diversity.” At the time of the plan’s release, the chairman of the county’s board of supervisors observed, “By acting now, we’ll ensure that the county remains aging friendly.”

The goal for cities and towns across Virginia will be to nurture a reputation for welcoming and meeting the needs of older folks — much as they once hyped being tree-loving communities.

Times change.

Entrepreneurs are planning too.

Enter MEDCottage, a small, modular housing unit playfully or scornfully referred to as a “granny pod.”

Kenneth Dupin, pastor of Salem Wesleyan Church in Salem, invented the MEDCottage as a temporary housing alternative to a nursing home.

As envisioned, the portable dwelling is trucked to the back yard of a family providing care to a relative who is physically or mentally impaired. Hightech equipment monitors the small living space for the caregiver. The pods will rent for about $2,000 a month.

Dupin founded and is CEO of N2Care, the company developing the dwellings, which are intended for temporary placement. In 2010 the General Assembly passed legislation providing statewide zoning clearance, with conditions, for the pods. N2Care spokesman Thomas Becher said the company expects to install its first production model in Roanoke “within a few months.” That was in early 2011.

Volume 18 ● Issue 2

Working another angle, the National Association of Homebuilders, in collaboration with AARP and others, developed a Certified Aging-inPlace Specialist program. Its focus is educating builders about older adults’ unique needs and ways to modify houses or condos to allow older homeowners to stay put as long as possible.

But if homeowners age-in-place, how do Realtors® benefit?

Again, the formula is time, empathy, patience, and networking. Realtors® known for informed and compassionate service to older adults will reap referrals, sales and commissions.

The SRES designation There are about 78 million boomers in the U.S. today, making them a market bigger than the populations of California, Texas, and New York combined (and more than 10 times the size of Virginia’s). That’s one reason, four years ago, the National Association of Realtors unveiled its new designation for Realtors®: Seniors Real Estate Specialist.

The goal of SRES is to educate Realtors® about — and prepare for the special quirks and needs of — the boomer market.

Heidi Henning is, among other things, managing director of NAR’s SRES program. “SRES saw an increase in 2010 over the previous few years for members earning the designation,” she said. “Anyone can take the education, but in order to use SRES and continue each year using the designation, you need to maintain annual membership in NAR.” To earn the designation, a Realtor must: • be an active member of NAR; • be an active member of the SRES Council (annual dues are $99 after a free first year); and • complete a two-day SRES designation course, then nail a grade of at least 80% on the exam.

Currently, only the Virginia Peninsula Association of Realtors®, is offering an in-person SRES qualification course (being held in Hampton in October), but NAR offers an online version thru its Realtor® University for $295.

For more information, go to www.seniorsrealestate.com.

MARCH/APRIL 2011 23

‘Great position to help’ “I think Realtors® can play a huge role in helping people in this age group,” said Amy Levner, manager of AARP’s housing and mobility options program.

Experienced, well-trained Realtors® can help older adults make good decisions, she said. A Realtor’s expertise often allows her to walk into a house and envision its current and future possibilities for boomers, wherever the clients fall along the age continuum.

“The biggest thing you want [such clients] to think about is how adaptable and flexible their home will be,” she said. “Is there a full bath they can get to on the first floor? Is there a bedroom on that floor or a room that could become a bedroom? How wide are the doorways?” First-floor living, she said, is becoming a big trend among middle-aged and older adults.

Reverse mortgages: You can’t take it with you A reverse mortgage — sometimes called a lifetime mortgage — is a way for a senior homeowner (62 or older) to get receive some of the equity on a property either in a lump sum or as a regular payment.

Rather than adding to a home’s equity by making monthly payments, in a reverse mortgage equity comes out of the home. When the owner dies or moves to a new primary residence, he (or his estate) pays the loan back, plus interest and fees, and keeps any remaining equity.

Unlike a second mortgage or home equity loan, a reverse mortgage does not depend on the borrower’s income — it’s tied to age and the value of the home, and is offered as a way for seniors to supplement their income at the cost of the estate they leave upon their death.

There are downsides to reverse mortgages, and they have been used to effectively liquidate estates and poach seniors’ assets. Smart consumers — and their advisors — need to proceed cautiously.

There’s more information at HUD — visit VARbuzz.com/go/ reversemortgage — or from the National Reverse Mortgage Lenders Association at reversemortgage.org.

24 MARCH/APRIL 2011

And companies are designing fixtures, gadgets, and appliances for boomers in recognition of the generation’s buying power. Many appeal to all ages, Levner said.

“I’m not a boomer, but after working on this [housing and mobility] issue for several years I want some of these things in my home,” she said. “A lot of the features boomers are looking for are great for everybody,” even simple things like open floor plans and wide doorways because, Levner said, such features “are great when you have kids, great when you entertain.”

What other relatively small and simple things might appeal to a senior?

Many are obvious in hindsight — things like: • touch control kitchen faucets • slide-out shelves beneath the kitchen sink • pull-down shelves in kitchen cabinets • a rolling kitchen island that can shift to make space for a wheelchair or walker • pullout dishwasher drawers to reduce stooping • front-loading washers and dryers • pull-down closet rods • thermostats with large numbers and easy to operate controls • stronger plywood backing for bathroom walls to support grab bars • easier-to-use “paddle” or rocker light switches The AARP and NAHB present annual “Livable Communities Awards” to communities and homes that are, well, more livable. A renovation of a circa-1960s condo in Pasadena, Calif., won in the category for ‘major space renewal’ for highlighting some of the design features Levner cited. (Videos about award www.VARealtor.com

winners can be found at www.aarp. org/homedesign).

And the Realtors®’ role? “Realtors® can become advocates, helping to educate builders, architects and others to design houses for people who are screaming for them,” Levner said.

She (and others at AARP) praise NAR’s SRES designation, but Levner said she wishes the association would change one word. “I think the biggest challenge with it is the word ‘seniors,’” she said. “Boomers don’t like to be boxed in and labeled.”

The Great Recession Even with their numbers and political and economic clout, no one granted boomers immunity from the perils of the economy. During the economic and housing crisis, they lost jobs, investments, and homes. Jobless children moved back in. In some markets, home values plummeted. Equity loans might be tough to come by for some aging homeowners hoping to create wider doorways or a ground-floor bedroom.

In February, the NAHB reported a slump in the housing market for people 55 and older.

“The normal course of purchasing a new home in anticipation of or upon entering retirement has been interrupted by the fall in baby boomers’ house values and a reduction in their home equity,” said David Crowe, the association’s chief economist.

“Boomers are finding that the market for their current home remains soft and potential buyers cannot qualify for affordable mortgages,” Crowe added.

“Even those with the ability to buy a new home are finding a limited selection, as builders cannot get loans to build homes.”

Volume 18 ● Issue 2

Linda Laub Canty offered a similar observation.

“Right now what I see ... are elderly seniors who are having trouble making it on their income, and because of the economy the value in their homes is down,” she said. That can make it harder to get a reverse mortgage — normally a way for seniors to supplement their income. (See the box “Reverse mortgages: You can’t take it with you”) “I also see lots of people in the 50s to 60s age group who are wanting to move to the 55+ communities with amenities and things to do, and downsize earlier than their parents did — and let someone else cut the grass.”

At 63, Laub Canty is a boomer just like Ford and Gaye. All three said they understand the often tough choices faced by their aging generation, for which each of the three expressed a feeling of genuine accord.

You don’t have to be a boomer to win their business. But it helps to like them and to be prepared to serve as a sort of 21st century Sacajawea with a Realtor’s pin.

As Ford explained, Realtors® need to combine patience, empathy, and specialized knowledge to work most effectively with older adults. Even getting an SRES designation will not necessarily deliver the first two, he said.

“I strongly feel that this is one designation [to acquire] because you care and have empathy for seniors and want to be truly helpful,” Ford said.

“It shouldn’t be just another designation you get to add to your arsenal to expand your business.” l Liam MacLeod is a freelance business writer based in Southwest Virginia.

MARCH/APRIL 2011 25

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Here’s a nice home in a nice Virginia neighborhood.

It’s worth about $230,000.

Someone could buy it and have a mortgage payment of about $940 a month* — a lot less than most rentals.

Unless, of course, the mortgage interest deduction isn’t there.

Because without the MID, a buyer would lose a tax break worth almost $3,500 in the first year alone. That means it will cost an extra $300 a month to own it.

Suddenly renting seems a lot more affordable.

* Assuming buyers would be in the 28% tax bracket and itemize their deductions; the loan is a 30-year mortgage at 5.00%. We’re trying to keep it simple.

The MID is about preserving value.

The MID is about neighborhoods — and fairness.

But the MID is about more than giving home buyers a tax break. It’s about preserving the value of America’s homes.

Without the deduction, that $940 monthly payment won’t buy a $230,000 house. The seller would have to reduce the price about $54,000 (almost 24%) — so it could be owned for that kind of payment.

According to NAR research, losing the MID would knock 15% off American property values across the board almost overnight.

If sellers have to drop their prices to make their homes affordable, property values will go down across the board. That means less revenue for towns and cities — less money for services like schools, police, and road repair.

And not only do homeowners pay those property taxes, they pay between 80 and 90% of federal income taxes as well — even though they make up less than 70% of the population.

Congress has allowed mortgage interest to be deducted since 1913, and there’s a reason it’s lasted so long: The MID promotes home ownership and protects property values.

The MID helps millions of people realize the American Dream: In fact, 65% of families who take the deduction earn less than $100,000 per year. Taking it away won’t just be bad for Realtors® — it’ll be bad for the economy. And that’s not something we can afford right now.

Protect the mortgage interest deduction. Don’t let Washington try to fix the economy on the backs of America’s homeowners.

Protecting Realtors®. Fighting for homeowners.

accessibletech ANDREW KANTOR

Backing up isn’t hard to do You drop your cell phone. Now it won’t turn on. It’s dead. Bricked.

You turn on your PC. You hear a grinding sound and see “Operating system not found.”

These scenarios have two things in common: 1) You had no warning. 2) You just lost a whole lotta data.

The basics of PC backup are old hat, and Windows Vista and 7 both have simple, effective, built-in backup programs (ditto the Mac) that will store your data on an external hard drive or to another computer on your network — work or home. (For long-term archiving, though, you want to use CDs or DVDs, and not the store-brand. Of course, paper is your best bet; keep it dry and it’ll outlast any electronic media.)

There are two other, newer angles you should think about, though: Backing up your phone, and backing up to the Internet.

Where to?

More and more people are finding that the pocket-sized computer — the smartphone — is the easiest way to carry their professional lives, from business contact information to e-mail to documents. The downside, of course, is that losing or damaging that phone can be more than a minor inconvenience.

With a full-size computer there’s always a chance you can see a failure coming — a telltale grinding noise, a series of errors, and so on — and take action.

With a phone, not so much. There aren’t a lot of people out there who can say, “I knew I was going to drop my phone in the toilet, so I copied all my contacts and data before it happened.”

The more important the information on your phone, the more important it is to back it up.

You have two, maybe three options for doing that: Backup to an internal flash-memory card, backup to a computer, and backup to the Internet.

Using a flash memory card (if your phone supports one) is better than nothing, but the drawbacks are obvious: If you lose your phone, you lose your memory card, and while flash memory is great for moving or temporarily holding files, it’s not safe in the long term.

28 MARCH/APRIL 2011

There aren’t a lot of people out there who can say, “I knew I was going to drop my phone in the toilet.”

A better option is to back up to your desktop or laptop computer. Not only is it probably more reliable (and less likely to be dropped in a toilet), but your phone backup becomes part of your computer backup — beating two drums with one stick, so to speak.

All the major smartphone operating systems — Android, BlackBerry, iOS (iPhone), and Windows Phone come with software — e.g., BlackBerry Desktop Manager, iTunes — that will copy your important data to your desktop. That’s a quick and simple way to protecting your stuff, especially if you also back up your computer — see below.

An even simpler option for keeping what’s on your phone safe is to backup to a Web-based or “cloud” backup service. And there are a bunch of them, each with apps for various kinds of phone.

To the right (“Backup options for smartphones”) you’ll see four that offer free accounts; they also have paid versions offering more storage space or features.

All work with those four major phone types.

There are others, of course. Nomadesk, for example (nomadesk.com), while it doesn’t have apps for every smartphone, has a mobile-friendly website so you can use its service with any phone. Not as simple as something app-based, but it’s $50 per year for unlimited storage. www.VARealtor.com

Back up options for smartphones Dropbox dropbox.com 2GB free; 50- and 100-GB plans for $10 and $20/ month, respectively

A popular “cloudstorage” service, Dropbox has free apps for all the major smartphones that let you backup and restore your data and contacts — and even restore your contacts from one device into another.

Box box.net

SugarSync sugarsync.com

5GB free; 25GB for $10/ month; 50GB for $20/ month; multi-user business plans also available

5GB free; 30GB for $5/ month; discounts for annual plans, more storage, or multi-user business accounts

The personal version of Box.net (which is what everyone calls it) is a nice way to store, backup, and access your phone’s documents, while the business and enterprise versions add a lot of team-friendly features like file sharing and version-tracking.

SugarSync doesn’t care how many devices you use; its goal is easy file sharing between your computer(s) and phone(s) — “changes saved on one computer are instantaneously synced among the rest.”

ZumoDrive zumodrive.com 1GB Free; 10 GB for $3/ month; 25GB for $7/ month; plans up to 500GB

Like SugarSync, ZumoDrive lets you link your desktop and mobile files, so you retrieve them from either — in fact, the upload process is automatic, so you can work at your desk and know you can access your files when you’re on the road.

What will you gain by becoming an SRES®?

Seniors Real Estate Specialists® (SRES®) gain access to newly updated 50+ real estate course material, referrals, networking, consumer Web site, customizable marketing materials and so much more.

m.

I gained wisdo nd.

I gained a frie iness.

I built my bus ro.

I became a he ork.

I grew my netw

Volume 18 ● Issue 2

The largest and wealthiest group of buyers in the country is over 50. Understand their motivations and build your business by earning the SRES® designation, the only 50+ designation offered by the National Association of REALTORS®.

Gain a competitive advantage by taking the SRES® course.

For more information, visit seniorsrealestate.com.

MARCH/APRIL 2011 29

accessibletech For your PC There are a bunch of online backup services for PCs that will — quietly and automatically — backup all your computer’s data to Internet-based storage.

The pros: “Fire and forget”: After the initial setup, backups are automatic. You’ll get an occasional notice that your files have been saved, but that’s it.

Security: Your data are stored by a company that specializes in storage, meaning they’ve got gobs of servers that are themselves backed up and protected by professionals. And by moving your backups to a different physical location, you protect them from local, er, issues — fire, theft, earthquake, etc.

Access: All these services allow you to download your backed-up files via the Web, so no matter where you go, there they are.

The cons: Cost: They’re not free, although they’re not expensive — figure about $50-$60 per year.

The first three months: Your first backup can take a long time, because your computer has to upload everything to the servers. This can take days or weeks depending on how fast a connection you have (hint: get Fios if you can). After that, though, things move faster as only new and changed files are backed up.

CrashPlan lets you back up your data in as many places as you want.

The playas Topping my list is CrashPlan (crashplan.com) for several reasons. One big one: Price. It’s $25 per year for 10GB of storage, and only $50 per year for unlimited space.

Even better, though, is that you only have to pay if you’re going to use CrashPlan’s servers to store things; the software itself is free, and it can backup your data to any computer that’s connected to the Internet (provided you have permission, of course).

Apple and Microsoft weigh in Besides the services that work with smartphones in general, both Apple and Microsoft have backup services for iPhones and Windows Phones, respectively.

30 MARCH/APRIL 2011

If you have a Windows 7 Phone, Microsoft throws in some nice goodies — you get 25GB of storage free (including Web access to your files), plus automatic backup of photos, calendar, contacts, and Office files.

Also included is a “Find my Phone” feature that can located the device on a map (or just make it ring); and remote-lock and -wipe tools in case it’s stolen. Yes, all that is free.

Phones using Windows Mobile 6 and 6.5 include the free MyPhone application, which stores up to 200MB of files on Microsoft’s servers; there’s a $20/month plan that offers extra features like locating a missing phone (or just making it ring really loud).

IPhone users get 60 days free of Apple’s MobileMe service, which offers features similar to Microsoft’s Windows 7 Phone — 20GB storage, find-your-phone app, etc. After 60 days it costs $99 a year for an individual account.

www.VARealtor.com

So you can save your work files to your home computer and vice-versa, or your files to your husband’s machine. Or to a friend’s computer in London. Or to an old PC you have lying around that can connect to the Net. Or to all of them.

To be safe, though, even if you backup to all those places, pay the $50 and use CrashPlan’s servers also.

Another option, although it doesn’t offer CrashPlan’s ‘backup anywhere and everywhere’ option, is Carbonite (carbonite.com). It’s strictly cloud-based backup, and $55 per year gets you unlimited storage.

One caveat: If you store too much, Carbonite will reportedly “throttle” your connection, making backups slower. Still, the software is simple to use, the company is solid, and the reviews are good.

Mozy is a big name, but its popularity dropped a few notches when it raised its prices earlier this year.

It’s now significantly more expensive than most of the others: $6 per month for 50GB and one computer.

The pro version is $4 per month per computer, plus

50 cents per GB used.

SOS (sosonlinebackup.com) isn’t cheap, but it consistently gets high marks from users and reviewers. For $80 per year you get 50GB of storage ($100 gets you 100GB), but unlike Mozy you can share it amongst five computers. (The others also offer ‘family’ plans, but they cost extra.) Sign up for a two- or threeyear plan and the price drops considerably.

SpiderOak (spideroak.com) touts speed and simplicity — pricing is based strictly on storage (2GB free, then $10/month for each 100GB) not users. That makes it a viable choice for document sharing among teams and families, and the fact that you can restore “historical versions” sounds like a potential lifesaver.

There are many more — JungleDisk, Syncplicity, and so on — and with storage space as cheap as it is these days expect the market to get more crowded. l

Sole Proprietorship? LLC? Corporation? Partnership?

Choose the right business model for your brokerage — and reap the benefits for the long haul.

Incorporation: just one of the topics covered in VAR’s free, detailed Brokers Toolkit.

Download your copy today at VARealtor.com/ brokertoolkit. And get it right from the start.

Another great member service brought to you by the Virginia Association of REALTORS®

Volume 18 ● Issue 2

MARCH/APRIL 2011 31

rpacreport As of February 25, 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)

Charles Burnette Burnette Real Estate Sales Blacksburg

Billy Chorey, Sr.* Chorey & Associates Realty Suffolk

Dennis Cronk* Cronk & Poe Real Estate Group Roanoke

John Dickinson Hall Associates, Inc. Union Hall

Steve Hoover MKB, Realtors® Roanoke

John Powell Long & Foster Real Estate, Inc. Colonial Heights

Re/Max Allegiance Alexandria

Tom Stevens* Colonial Banker Residential Vienna

Melanie Thompson* Century 21 AdVenture Realty Fredericksburg

Jack Torza* Long & Foster Realtors® Mechanicsville

GOLDEN R ASSOCIATION ($5,000)

John McEnearney McEnearney Associates, Inc. Alexandria

CRYSTAL R ASSOCIATION ($2,500)

Northern Virginia Association of Realtors®, Fairfax Roanoke Valley Association of Realtors®, Roanoke Williamsburg Area Association of Realtors®, Williamsburg Jane Quill Re/Max Presidential Fairfax

Trish Szego ERA-Elite Group, Realtors® Fairfax

* H all of Famers have contributed a cumulative amount of at least $25,000 to RPAC.

32 MARCH/APRIL 2011

www.VARealtor.com

STERLING R INVESTORS ($1,000–$2,499)

Bob Adamson McEnearney Associates, Inc. McLean

Guy Allen One Stop Realty Woodbridge

Katy AllenbaughRichards First American Home Buyers Protection Midlothian

Sherry Bailey Century 21 New Millennium Stafford

Deborah Baisden Prudential Towne Realty Virginia Beach

Mary Bayat Bayat Realty, Inc. Alexandria

Mary Ann Bendinelli Weichert REALTORS® Manassas

Laura Benjamin Roanoke Valley Association of Realtors® Roanoke

Brad Boland Jobin Realty Reston

Candice Bower McEnearney Associates, Inc. Leesburg

R. Scott Brunner Virginia Association of Realtors® Glen Allen

Robyn Burdett Re/Max Allegiance Reston

David Charron MRIS Rockville, MD

Vic Coffey Re/Max All Stars Realty Daleville

Commission Express Fairfax

Billy Coons Realty Executives Virginia Beach

Benton Downer Downer & Associates Charlottesville

Mary Dykstra MKB, Realtors Roanoke

Sandee Ferebee* Prudential Towne Realty Virginia Beach

Claire Forcier-Rowe Coldwell Banker Elite Fredericksburg

Virgil Frizzell Long & Foster Real Estate Herndon

Bev Frowen Long & Foster Real Estate Manassas

Bill Gearhart Coldwell Banker Townside Roanoke

George Grundy George Grundy & Associates Realty Petersburg

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 2

MARCH/APRIL 2011 33

rpacreport STERLING R INVESTORS ($1,000–$2,499)

Kit Hale MKB, Realtors® Roanoke

Margaret Handley M.C. Handley, Ltd. McLean

Lizzie Hernandez Re/Max Regency Manassas

Nathan Hughes Bandazian & Holden Richmond

Tom Innes Re/Max Commonwealth Richmond

Donn Irby Rose & Womble Realty Chesapeake

Kathleen Kennedy Re/Max Regency Manassas

Betty Kingery Mountain to Lake Realty Rocky Mount

Pat Kline Avery Hess Realtors® Springfield

Jody Korman Re/Max Commonwealth Richmond

Vonda Lacey Lacey Real Estate Group Fishersville

Richard Limroth Re/Max Valley Realtors® Roanoke

Shane McCullar Keller Williams Realty Alexandria

Susan Mekenney Re/Max Allegiance Alexandria

Jay Mitchell Prudential Towne Realty Virginia Beach

Percy Montague Montague, Miller & Co. Charlottesville

Vinh Nguyen Westgate Realty Group, Inc. Falls Church

Lee Odems Buyer’s Advantage Real Estate Woodbridge

Forrest Odend’hal Long & Foster Real Estate Gainesville

Susan Oh New Star Realty & Investment Fairfax

Gwen Pangle 1757 Real Estate Company Leesburg

Gail Penman William E. Wood & Associates Virginia Beach

Lonnie Plaster Long & Foster Real Estate Manassas

Anne Rector Long & Foster Real Estate Alexandria

34 MARCH/APRIL 2011

www.VARealtor.com

STERLING R INVESTORS ($1,000–$2,499)

Zinta Rodgers-Rickert Re/Max Allegiance Fairfax

Fetneh Schacht Long & Foster Real Estate Vienna

Henry Scholz Hall Associates, Inc. Roanoke

Trudy Severa Long & Foster Real Estate Reston

Karen Smith Re/Max Commonwealth Richmond

Kimber Smith Prudential Towne Realty Williamsburg

Susan Spellman Long & Foster Realtors® Williamsburg

Cindy Stackhouse Century 21 Stackhouse & Associates Dumfries

Wes Stearns MO Wilson Properties, Inc. Woodbridge

Thomas “Mack” Strickland, Jr. Strickland Realty Chester

Pat Sury Montague, Miller & Co. Charlottesville

Joe Sutliff Re/Max All Stars Realty Daleville

STERLING R ASSOCIATIONS ($1,000–$2,499) Virginia Peninsula Association of Realtors® Hampton

Christine Todd Northern Virginia Association of Realtors® Fairfax

Karen Trainor Weichert REALTORS® Fairfax

Shanna Wiseman Parr & Abernathy Hopewell

IS YOUR REAL ESTATE BUSINESS WORTH A NICKEL? Seriously. A nickel a day – that’s all it takes to do your fair share for your business.

That money is critical in protecting you – at the General Assembly and in your town. It helps elect candidates who support you and your goals.

Candidates who support your real estate business.

Volume 18 ● Issue 2

www.VARealtor.com/RPAC MARCH/APRIL 2011 35

7-8. . t c O : s r a calend r u o y k r a M

Two great speakers.

One great show.

The REal Show is Virginia’s largest event for real estate professionals.

When you’re there, be sure not to miss two incredible keynotes.

The REal Show’s got you covered.

Real estate law? We’ve got a Legal Matters and Risky Issues track.

Commercial Realtor or Relocation Specialist? Check out our Commercial/Relo track.

Interest in high-tech? Our Technology and Social Media track’s the place to be.

Whatever your specialty, whatever your experience, you’ll find the best teachers, most comprehensive courses, and most informative keynotes at the REal Show. Because, when it comes to Virginia real estate, the REal Show is the flagship event for a reason.

October 7 and 8, Virginia Beach.

Just follow the crowd.

Laurie Janik

Juliet Funt — yes,

is NAR’s general counsel — the top lawyer in the nation’s largest association. Her job: protect NAR from legal trouble, and — if trouble strikes — to clean up the mess.

And she’s very good at her job.

Janik is the expert in real estate law, from agency and advertising to property management and websites.

And if you’ve heard her speak you know why we grabbed her for a keynote.

she’s Allen’s daughter — has made her own reputation as a fantastic speaker. Thanks to her show-biz background, from improv comedy to classical theatre, she’ll grab your attention and hold on. (She’s trained the LAPD in human relations, and she’s served as a liaison between Israelis and Palestinians — so yeah, she can deal with a tough audience.)

And thanks to her experience helping people cope with evermore-hectic lifestyles, she’ll have you thinking, planning, and laughing about your life and your business.

Visit our expo

to meet these and more great exhibitors.

2-10 Home Buyers Warranty

Outstaffing, Inc.

www.2-10.com

www.outstaffing.com

Access National Bank

Pearl Insurance

www.accessnationalbank.com

www.pearlinsurance.com

American Home Shield

PNC Mortgage

www.ahswarranty.com

www.pncmortgage.com

Atlantic Bay Mortgage

Re/Max

www.atlanticbay.com

www.remax.net

Bath Fitter & Kitchen Saver

The Real Estate Book

www.bathfittermidatlantic.com

www.realestatebook.com

Blu Skyy Realty

Real Estate Information Network

www.bluskyyrealty.com

Centralized Showing Service

www.reinmls.com

RealFocus

www.showings.com

www.realfocus.com

Century 21

Realty Executives

www.century21.com

www.realtyexecutivesva.com

Cox Communication

Samuel I. White, PC

www.cox.com

www.siwpc.net

EXIT Realty Virginia

Scentsy Wickless Candles

www.exitviriginia.com

www.inascentfun.scentsy.us

First American Home Buyers Protection

SentriLock, LLC

www.firstam.com/warranty

HMS Home Warranty www.thinkhms.com

Homes.com www.homes.com

JES www.jeswork.com

www.sentrilock.com

Skymie Video Tours, LLC

THANK YOU, SPONSORS

Platinum Sponsor:

Platinum Sponsor:

Hampton Roads Realtors Association®

www.alphacollegeofrealestate.com

Alpha College of Real Estate

www.centerforrealestate.com

Platinum Sponsor:

Platinum Sponsor:

Century 21

MRIS

www.century21.com

www.mris.com

Gold Sponsor:

VHDA www.vhda.com

www.vavideotours.com

Supra www.supraekey.com

Systems Engineering www.seisystems.com

Tennessee Valley Signs

Kathy’s Accessories

www.tennesseevalleysigns.com

Liberty Mutual

UPS

www.libertymutual.com

www.ups.com

Lowe’s Companies, Inc.

VHDA

www.lowesrealtorbenefits.com

www.vhda.com

Magnets USA

zipLogix

www.magnetsusa.com

www.ziplogix.com

Cox Communication

Liberty Mutual

www.cox.com

www.libertymutual.com

Samuel I. White, PC

RealFocus

www.siwpc.net

www.realfocus.com

MRIS www.mris.com

My Marketing Matters www.mymarketingmatters.com

Old Republic Home Protection www.orhp.com

Get what’s coming to you

You pay for your VAR membership, so make it pay you back. Take advantage of our long list of member benefits — low-cost life, health, and E&O insurance; discounts on shipping and wireless services; free sales tools and forms, and a lot more. A lot.

How much?

Visit VARealtor.com/discounts and see for yourself.

VAR: Take us for all we’re worth

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 9:30 a.m. to 3:45 p.m.

Our phone number is

(804) 264 -5033 For membership and dues questions Ask for Amy Hafer Membership Records Manager amy@varealtor.com

For questions about professional standards and the Code of Ethics Ask for Blake Hegeman Legal Counsel blake@VARealtor.com

If you’re interested in marketing or advertising opportunities Ask for Steve Daley Director of Sales & Marketing steve@varealtor.com

If you’d like to have someone speak at your association or brokerage

To find out about conferences, seminars, and professional education

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

If you need to know about professional designations 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 Andrew Kantor, Editor & Information Manager andrew@varealtor.com

Call (804) 622-7955*

See your member discounts at www.VARealtor.com/ discounts home, auto, and renters insurance Outstaffing, staffing and payroll Pearl Insurance,

* You must register first at www.VARealtor.com/LegalHotline

E&O, medical, life, and dental insurance Phone Tag, voice to e-mail transcription Realtors Federal Credit Union T-Mobile, wireless service UPS, shipping and more

Our CEO is Scott Brunner (804) 249-5712 scott@varealtor.com

Ask for Meredith Cox Director of Political Communications meredith@varealtor.com VAR 2010 Leadership Team

John Dickinson, CCIM, GRI President Hall Associates, Inc., Union Hall (540) 982-0011 jrdickinson@cs.com

VAR Member Service Partners

Liberty Mutual,

To reach our Legal Hotline

For information about RPAC

Zipform, electronic forms solutions

Trish Szego, CRB, CRS President-Elect ERA-Elite Group, Haymarket (703) 359-7800; trishelite@aol.com Mary Victoria Dykstra, ABR, CRS Vice President MKB REALTORS®, Roanoke (540) 989-4555 mvdrltr@aol.com John Daly, SFR Treasurer Rose & Womble, Virginia Beach (757) 486-8800 jdaly@roseandwomble.com Cindy Stackhouse, GRI Immediate Past President Century 21 Stackhouse and Associates Prince William (703) 580-0880; c21cindys@aol.com R. Scott Brunner, CAE Chief Executive Officer (804) 264-5033; scott@varealtor.com

Volume 18 ● Issue 2 MARCH/APRIL 2011 39

lastword SCOTT BRUNNER

What can you do to protect the MID? • Read-up on the issue. You’ll find talking points and other resources at VARealtor.com/ NAR-MID. • Contact your Congressman now, alert him to your concerns, and tell him you’ll be monitoring the issue

and keeping him informed.

• Pay attention to updates from VAR and NAR, and respond promptly if/when we email callsto-action. Also, forward the CTA to your entire client base, and help multiply our collective voice.

Bracing for the fight of your career As first paragraphs go, which do you prefer?

A. On the heels of the worst economic crisis since the Great Depression — in which the federal government spent massive amounts of borrowed money to stabilize the economy — many in Congress now seem serious about making spending cuts and tax reforms that would free-up tax revenues to put toward reducing the gargantuan federal debt. Policymakers say everything is on the table, including the longsacrosanct mortgage interest deduction. Whether Americans understand the potential implications of such a sea change in tax policy — and whether Congress really has the political will to do it — remains to be seen. There’s broad agreement, however, that America can no longer live beyond its means.

B. On the heels of the worst economic crisis since the Great Depression — in which homeowners in many markets saw their home’s value decline by 20 percent or more, and countless families were wiped out financially as foreclosures skyrocketed — many in Congress now are seriously considering changes to U.S. tax policy that experts say could devalue every home in America by an additional 15 percent or more.

If that occurs, millions of American homeowners will see a chunk of 40 MARCH/APRIL 2011

their equity wiped out, and local governments almost certainly will raise property taxes in turn to makeup for considerably lower assessed values. All in all: a double-whammy for consumers.

Both are true. I like ‘A’, especially the last sentence. It’s a grabber. But for Realtors®, ‘B’ should be the more worrisome.

We’re amidst the perfect political storm: Housing crisis leads to economic meltdown that requires aggressive government intervention that balloons national debt that creates populist revolt commanding government to live within its means that focuses attention on eliminating tax breaks related to property ownership.

The debt concerns are real, but the attack on tax incentives for homeownership is misplaced.

Nevertheless, a “gang of six” U.S. Senators, including Virginia’s Mark Warner, is preparing legislation that would eliminate or downsize a number of tax breaks for property owners: MID for first and second homes, deductions for second mortgages, property tax write-offs, and the capital gains exclusions on profit from sale of a residence.

President Obama’s budget already proposes a 28% cap on itemized deductions — down from the current 35% — for “the

wealthiest Americans”: those earning more than $250,000 (married).

To quibble about whether $250,000 means “wealthy” — as many are doing — is to miss the point.

What’s at stake here is your livelihood.

What happens if the MID is eliminated? Phased out? Or even reduced? Capitalize the value of MID for the first five years of a loan, and it’s easily the difference in the ability of a young couple to buy versus rent. Take away the tax incentive, and NAR says all home values could fall by 15%.

Suddenly many more of us are underwater, stuck in homes we can’t afford to sell.

Yes, our government needs to live within its means. But we need debt reduction done prudently — not on the backs of millions of homeowners, for whom the bedrock American values of financial stability and civic pride are inextricably tied to their homes.

So brace yourself for the fight of your career. It’s coming. We’ll be allocating all necessary resources — our collective voice, our lobbyists and policy experts, and yes, RPAC — to this challenge. But the one voice we’ll need most is yours. l Scott Brunner is VAR’s chief executive officer. Contact him at scott@varealtor.com.

www.VARealtor.com

Scan and find out how

More Support to bring you More Success Prudential Carruthers business model remains committed to investing in the programs and tools designed to leverage the success of our sales professionals. Even better, we have now put the right people in place to assist our sales professionals in utilizing them in the most productive way possible. We believe that our support equals your success! Are you ready?

Tammy McIntyre Agent Services Regional Manager Tammy brings over 20 years of real estate experience to this new position. Have questions about our agent services?

Tammy allows agents to do what they do best…list, show and sell by educating them on our fantastic company programs.

Office visits, sales meetings and one-on-one assistance are just a few of the ways she interacts with our sales professionals.

Miranda Opiela Manager, Internet Marketing & Social Media Miranda has been honing her internet lead generation skills since 2001. In her new position, she helps our sales professionals generate more leads and make more money by better utilizing internet marketing and social media. By attending Miranda’s social media training in offices throughout the company, our sales professionals are learning how to use Twitter, Facebook, blogs, QR codes and other online tools to generate business.

Prudential Carruthers REALTORS® is YOUR Career Company. Why? • Unparalleled Agent Services that will increase your income.

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Ready to take your career to the next level? Contact the office nearest you.

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OFFICES 410-266-0600 301-961-6000 443-769-1700 410-721-3711 410-398-2401 410-547-5700 301-948-4811

Harford County Howard County Ocean City Ocean City West Ocean Pines Olney Pikesville Roland Park

410-515-5300 443-325-7890 410-524-7000 410-520-2600 410-208-3500 301-260-7700 410-484-8322 410-464-5500

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An independently owned and operated member of The Prudential Real Estate Affiliates, Inc.

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KW Commercial Partnered with CCIM and other commercial councils for discounts.

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