2011_5-6_Commonwealth

Page 1

10231 Telegraph Road, Glen Allen, VA 23059-4578



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. Custom Publishing Services provided by Network Media Partners, Inc.

VARbuzz.com. Your virtual café for real estate news, views, and issues. Read the perspectives of your fellow Virginia REALTORS®. Join the conversation at VARbuzz.com today.

Get it? Got it? Good!

In addition to the print version of Commonwealth, VAR publishes electronic newsletters at regular intervals, including...

...the online version of our print magazine, published twice each month.

Follow and friend us! VARealtor.com/twitter VARealtor.com/facebook VARealtor.com/linkedin VOLUME 18 ● ISSUE 3

Surveying the landscape IF YOU WANT to know what people want, ask them — right? It seems to make sense. And isn’t the alternative “guessing”? Maybe. Maybe not. There’s certainly tremendous value to asking, but you can only rely on those answers for so much. And no, the alternative doesn’t have to be a wild guess. “If I asked my customers what they wanted,” Henry Ford is said to have quipped, “they’d have said ‘a faster horse’.” The people you ask may not realize they want something if they don’t know it’s an option. Sure, sometimes there’s an obvious need for a product — clothes washers, perhaps. (Fun fact: When asked what non-existent kitchen gadget they wish they had, the number one response is ‘microwave cooler.’) But a few years ago, who would have thought to ask for a high-speed, Internet-capable, touch-screen phone, music player, camera, and camcorder? More often than not, gamechanging products (or at least their marketers) create the “need” convincing us that we’re missing out on something crucial that, conveniently, they’re ready to sell. Bottled water is a great example. At best, it’s repackaged tap water, and less healthy at that; what comes from your tap is much more tightly regulated. But people still shell out six bucks a gallon for the stuff, possibly while bemoaning $4 per gallon gasoline.

And that’s not taking into account the environmental impact of the plastic bottle. All that said, the point is this: Asking people what they want is good, but don’t make the mistake of thinking that, just because they don’t ask for something doesn’t mean they don’t want it — they may not realize it’s an option. But be sure to take to heart what people say they do want. It’s great to fill a need they don’t know about, but they’ll thank you even louder for filling one they’re aware of. Which brings me to VAR’s just-completed member survey. We received a incredible response (almost 10% of membership!), and learned a ton about what you want, what you need, what we do right, and what we need to do more of. We’re still learning, in fact. And hopefully the folks who took the time to complete the survey also learned about some of the things we do — things they may not have realized. The results — charts, graphs, and explanation — start on page 26. Check it out, and let us know if we missed anything. ●

Andrew Kantor, Editor andrew@VARealtor.com MAY/JUNE 2011

1


MaY/JUNE 2011 Volume 18 ● Issue 3

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 Change to the residential contract, and clarifying the POA packet request

features

18

31 accessibletech Choosing, using, and caring for all those batteries

in every issue 1 firstword 34 rpacreport 43 contactvar 44 lastword APEX Award of Excellence winner 2

MAY/June 2011

The Wrangle in Washington This year’s budget battle will have profound effects on the real estate industry, from determining the future of the mortgage interest deduction to the influence of Fannie Mae and Freddie Mac. Read what we’re up against.

23

2011’s New Real Estate Laws

26

Survey says...

Thanks to persistence and hard work, VAR helped pass a list of laws to make life easier for Realtors®. Simpler disclosure forms. No more liability for public-record errors. No more transfer fees. And more.

We asked you, the VAR membership, to tell us what we’re doing wrong, what we’re doing right, and what you’d like to see us do more of. Almost 3,000 responses gave us some terrific ideas.

www.VARealtor.com


PRIME FRANCHISE TERRITORIES AVAILABLE Contact Nancy & Tom Shaver EXIT Realty Virginia Office: 800-906-3948 info@exitvirginia.com E

EXIT REALTY ASSOCIATES HAVE EARNED OVER 200 MILLION DOLLARS ABOVE THEIR COMMISSIONS IN SPONSORING BONUSES AS A THANK YOU FOR GROWING THE COMPANY!


quickhits

ANDREW KANTOR

Home sales

Q1 home sales: Some up, some down With final March figures in, we’ve crunched the numbers and released the Virginia Home Sales Report for the first quarter of 2011.

Sales Residential home sales in the first quarter of 2011 have followed the general trend of the last several years: Year-to-date sales were about equal to last year (up just 0.3%). Although January and February sales were up over 2010 (by 2.5% and 3.5%), March numbers were down 3.3%. The second quarter will likely not be as rosy; April 2010 and June 2010 were two of the deadlines for the federal home buyer tax credit, which led to abnormally high sales figures. In fact, the best quarter over the past three years was the second quarter of 2010, largely due to those tax credits. Other factors could affect the housing markets in Virginia through the remainder of 2011. Discussion by some in Washington of eliminating the mortgage interest deduction has already added downward pressure on buyer demand (and on home values). And changes in the FHA financing program, as well as reform of Fannie Mae and Freddie Mac, may increase the cost of mortgages to home buyers, and thus decrease demand. Locally, many regions in Virginia saw an increase in home sales quarter to quarter. The Hampton Roads / Chesapeake Bay area showed the best performance in the state, with a 13% increase. Greater Richmond and the Central Valley also performed well, with 8.6% and 6.5% increases, respectively. On the other end of the spectrum, Northern Virginia showed the largest decline: Sales were down 7.9% over 2010, while Southwest Virginia saw a 7.8% decline.

Pricing Despite turbulent times in housing markets across the country, the median sales price of homes in Virginia has only declined a total of 16% over the past three years, including a 6.7% drop since the first quarter of 2010. (This included a temporary increase in demand 4

MAY/June 2011

Why “median”? We usually report median sales figures, as opposed to average or mean numbers. Why? Imagine that seven homes sold for $180K, 195K, $208K, $275K, $281K, $302K, and $1.8 million. The average sale price would be $463,000 because of that single expensive home — what’s called an outlier. But the median price is $275,000, which is a much more accurate representation of the market.

and prices in the second quarter of 2010.) The median price of a Virginia home in the first quarter of this year was $210,000. Locally, Northern Virginia was the only region without a significant decrease in median sales price over the past year. The remainder of Virginia experienced a decline in median sales price varying from -4.9% (Central Valley) to -20.4% (Southwest Virginia). It is also interesting to note the continued wide disparity in median prices across the state, ranging from a low of only $73,750 in Southside Virginia to a high of $280,000 in Northern Virginia. We’ll likely not see a stabilization (or increase) in home value until we start to see an overall increase in demand. This may actually be occurring right now, so it’s possible we’ll see price stabilization by late 2011 or early 2012. The complete Virginia Home Sales Report is available for download (free, of course) at

VARealtor.com/homesales.

www.VARealtor.com


NAR news

Federal programs

What has NAR done for you lately?

FHA to increase MIP

Just as VAR fights for you on the state level, NAR leads the charge nationally — working to ensure that Realtors® are represented on Capitol Hill. Over the past few years NAR has had some significant victories, and it’s released some documents listing them. (And there are plenty.) So if you’re glad your clients don’t have to have a mold inspection every time you list a property, or you’re happy that banks have been banned from being brokers, then you’ll probably want to check out what else those folks have been up to. Visit VARealtor.com/NARlist1 for the March 2011 report, and VARealtor.com/NARlist2 for the 2006-2010 executive summary.

Come April 18, the FHA will increase its annual mortgage insurance premium by 25 basis points on 30- and 15-year mortgages. This move, announced in February in HUD’s Mortgage Letter newsletter, will “ensure that FHA will continue its historic role of providing a home financing vehicle during periods of economic volatility and its mission of helping under-served borrowers.” The FHA anticipates that “this increase will have minimal impact on borrowers but will significantly strengthen the capital position” of FHA’s Mutual Mortgage Insurance Fund.

What’s VAR up to?

Form Fixing Timely and high-quality forms. That’s the goal of VAR’s Standard Forms Working Group, which will be garnering input from other associations and inviting local association attorneys to attend its meetings. Here’s some of what the SFWG will be working on: • The General Assembly makes changes every year that affect the practice of property management. In the coming weeks VAR’s property management forms will be comprehensively reviewed and updated to insure that they are the most accurate and user-friendly forms in the Commonwealth. • Chairman Al Patel of Virginia Beach has appointed a Standard Clauses Working Group to review clauses from around Virginia and create a resource for members free of charge. • VAR’s purchase agreement needs some tweaks. Specifically, the working group will improve the deposit provision and the inspection contingency. While they’re at it, they’ll pay significant attention to improving the agreed repairs addendum. • The group will seek ways to make the Forms Center on MyVAR more comprehensive and convenient. Got suggestions for improving VAR forms? Send them to Erika Almstead at erika@varealtor.com.

Volume 18 ● Issue 3

<4% Freddie Mac’s low low delinquency rate According to Housing Wire, fewer than four percent of Freddie Mac’s single-family-home loans are delinquent (and fewer than one percent of its multi-family-home loans). The industry as a whole has about a 9% delinquency rate for singlefamily homes. MAY/JUNE 2011

5


quickhits Data delivery

nAR news

MRIS licenses its listings to RPR In March 2010 we told you about NAR’s data initiative: the Realtors Property Resource. NAR hoped it would become the most comprehensive data source on the nation’s properties, with tons of regional, neighborhood, and (thanks to MLS providers) individual-property information. The one MLS holdout, though, was MRIS — the major player in Virginia. Adam Cockey, chairman of the MRIS board of directors, explained that the MRIS board was concerned about how its data would be used, and how potential revenues would be shared. After several months of discussions, RPR announced it had reached an agreement with MRIS and would now be integrating its data — a boon to Realtors® in MRIS’s service area, which includes almost 50 counties in Maryland and Virginia, plus Washington, D.C., and Baltimore. Why a boon? Check out the March/April 2010 Commonwealth at VARealtor.com/commonwealth. ®

Market reform

20% down proposal? Maybe not what you think There’s much talk about a 20% down-payment requirement for mortgages, which understandably has some folks upset; they believe it will kill the mortgage market, because few buyers have the $30,000 or $40,000 available. As Bob Nielsen, chairman of the National Association of Home Builders, told The New York Times: “By mandating a 20 percent down payment on qualified residential mortgages, the administration and federal regulators are excluding those without huge cash reserves — which constitutes most first-time home buyers and many middle-class households — from a chance to buy a home.” But the idea of a 20% down requirement is a misconception. A 20% down payment would only be to qualify a loan as a QRM 6

MAY/June 2011

(qualified residential mortgage — aka, the absolute safest kind of loan). These, and only these, would be government guaranteed. Most loans would not be QRMs. Banks would be expected to take some risk, rather than expect taxpayers to bail them out if they start writing risky loans. In other words, the government is saying, “We’ll back you up, but only on the safest loans. If you want to take a little more risk for a little more reward (or a lot more risk for a lot more reward), you’re gonna need your skin in the game.” So if you’ve been picturing the entire market being made of QRMs and 20% down payments, you’ll need to adjust your view. (For more about QRMs and the various concerns with possible legislation, see “Battles on the Hill,” page 18.)

NAR announces Realtor® Party Political Survival Initiative At nAR’s mid-year meeting, its Board of Directors approved the REALTOR® Party Political Survival Initiative (RPPSI) — a two-year, $80 million program designed to enhance Realtors’ political clout. that money will be allocated specifically for political advocacy; two-thirds will go to local and state associations. RPPSI (and its $40 dues increase) was made necessary by the citizens united ruling, in which the Supreme court ruled that corporations could fund political broadcasts during elections without limits. nAR’s Board realized the need to counter those corporate dollars, and RPPSI is the result.

legislative action

Win: No $600 reporting congress repealed a provision in legislation enacted last year that requires landlords to report any work done on investment properties totaling $600 or more, and to provide 1099 forms to vendors that provided the services. Realtors® fought this provision, arguing that the paperwork would be onerous to landlords and real estate practitioners. lawmakers agreed that the provision was an overreach by congress and not intended to burden small property owners and managers. ● www.VAReAltoR.coM


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www.Realfocus.com …Real Results.

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statswatch Virginia Quarterly Home Sales Report

Q1 sales: It’s all about the region

2011-Q1

Virginia Quarterly Residential Sales Single Family Homes, Townhomes, Condos 30,000

Virginia Quarterly Home Sales Report

27,679 26,670

26,440

2011-Q1

26,135 25,157

Num mber of Single Faamily, Townhome e and Condo Sale es

25,000

Whether residential home sales in the first quarter of 2011 went up or down depended on the region you were in. Many regions saw an increase in sales over the first quarter of 2010; the Hampton Roads / Chesapeake Bay area showed the best performance in the state, with a 13% increase. Greater Richmond and the Central Valley also performed well, with 8.6% and 6.5% increases over the past year. On the other side of the curve, Northern Virginia showed the largest decline in home sales for the quarter — down 7.9% over the past year, followed by Southwest Virginia with a 7.8% decline.

22 791 22,791

Regional Changes in Sales 2010-Q1 vs. 2011-Q1 Units

20,738 19,641

20,000

18,482

17,924 16,889

Northern Virginia -7.9%

16,547

16,499

15,000

Central Valley +6.5%

10,000

Greater Richmond +8.6% Roanoke / Lynchburg / Blacksburg +0.1%

5,000

0

Southwest Virginia -7.8%

Virginia Quarterly Home Sales Report

2011-Q1

Hampton Roads / Chesapeake Bay +12.8%

Southside Virginia +4.5%

2008-Q1 2008-Q2 2008-Q3 2008-Q4 2009-Q1 2009-Q2 2009-Q3 2009-Q4 2010-Q1 2010-Q2 2010-Q3 2010-Q4 2011-Q1 Quarter

Virginia Month-to-Month Sales Trends Single Family Homes, Townhomes, Condos

Numbeer of Single Family, Townhome an nd Condo Sales

Thus far, 2011 has stayed closely on track with both 2009 and 2010, with first quarter home sales 2009 2010 (the orange bars above) within 2% of home sales in each of the prior to years.2008 The best quarter of 12,000 home sales over the past three years was the 2nd quarter of 2010, largely due to the federal home buyer tax credits, which enticed buyers to enter the market with deadlines of April 2010 and June 2010. Without the tax credit in place this year, it will be difficult for 2011 home sales to come 10 000 10,000 close to 2010 levels.

2011

Beyond the lack of a tax credit, there are several other factors that could affect the housing market 8,000 in Virginia (and beyond) through the remainder of 2011. There are currently discussions by some in Washington of eliminating the mortgage interest deduction, which would likely create a significant downward pressure on buyer demand and on home values as a result. Furthermore, changes in the 6,000 FHA financing program, as well as reform of Fannie Mae and Freddie Mac, may increase the cost of mortgages to home buyers, which will also decrease buyer demand.

Region

2010-Q1

2011-Q1

Change

Central Valley

783

834

+6.5%

Greater Richmond

2,279

2,474

+8.6%

Hampton Roads / Chesapeake Bay

3,502

3,950

+12.8%

Northern Virginia

8,243

7,594

Roanoke / Lynchburg / Blacksburg

1,171

1,172

+0.1%

Southside Virginia

337

352

+4.5%

Southwest Virginia

179

165

-7.8%

-7.9%

Many regions in Virginia witnessed an increase in home sales when comparing the 1st quarter of 2011 to the 1st quarter of 2010. The Hampton Roads / Chesapeake Bay area showed the best performance in the state, with a 13% increase in home sales over the past year. Greater Richmond and the Central Valley also performed well, with 8.6% and 6.5% increase over the past year. Northern Virginia showed the largest decline in home sales with a 7.9% decline over the past year, followed shortly thereafter by Southwest Virginia with a 7.8% decline.

4,000

2,000

Published by the Virginia Association of REALTORS®

Page 0 January

February

March

April

May

June

July

August

September October

November December

Month

2008

Jan

Feb

Mar

Apr

May

4,823

5,776

7,325

8,047

8,881

Jun

Jul

9,742

9,474

Aug 8,894

Sep 8,072

Oct Novby theDec Published Virginia Association of REALTORS® 5,543 6,680

Page

7,418

2009

4,758

5,391

6,740

7,212

8,096

9,849

9,593

8,536

8,006

8,366

7,876

6,549

2010

4,556

4,880

7,063

8,321

8,884

10,474

7,122

7,197

6,419

6,022

6,003

6,457

2011

4,669

5,051

6,827

Residential home sales in the first quarter of 2011 have followed the general trend of the last several years with year-to-date sales just 0.3% above last year. January and February home sales in 2011 exceed the same month the prior year (by 2.5% and 3.5%), however March 2011 home sales fell 3.3% below last March. The second quarter of 2011 will likely not be as rosy as last year, as April 2010 and June 2010 were two of the deadlines for the federal home buyer tax credit, which lead to abnormally high sales figures.

Published by the Virginia Association of REALTORS®

Page

Check out our new Quarterly Homes Sales Report at VARealtor.com/homesales

Regional Changes in Sales: 2010-Q1 vs. 2011-Q1 Units

Northern Virginia: -7.9%

Central Valley: +6.5%

Greater Richmond: +8.6% Roanoke - Lynchburg Blacksburg: +0.1% Southwest Virginia: -7.8% Southside Virginia: +4.5% Hampton Roads Chesapeake Bay: +12.8%

Get the full Q1 Home Sales Report at VARealtor.com/homesales. Another great member service brought to you by the Virginia Association of REALTORS®

8

MAY/JUNE 2011

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. ®

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legallines BLAKE HEGEMAN

The long (online) arm of the law According to the National Association of Realtors®, more than 80 percent of buyers today use the Internet when looking for a home — in fact, most begin their home search there. That’s why real estate licensee websites have become more detailed and sophisticated — and why more licensees are using social media technologies (blogs, Facebook, Twitter, etc.) to reach buyers and their agents. But remember this: If you are engaging in advertising, whether on your own website or a site like Facebook or Craigslist, you’re still expected to adhere strictly to the Virginia Real Estate Board regulations that cover online advertising. The Board’s definition: “Advertising” means all forms of representation, promotion, and solicitation disseminated in any manner and by any means of communication to consumers for any purpose related to licensed real estate activity. As you can see, advertising, from VREB’s perspective, is a broad concept; it covers everything from a newspaper ad to — potentially — the content of your emails. Its regulations encompass all communication media (although they require different disclosures for print and online advertising). Here’s one question you can ask to determine whether you are engaged in regulated advertising: Could what I am sending out be perceived as attempting to induce business? If it could be, follow all disclosure requirements. Also, consider that real estate advertising can be in the eye of the beholder. For example, I post on my Facebook page that I just sold my 25th listing this month. I might just be attempting to garner praise from my friends, but I might also be attempting to tell the world what an incredible agent I am, and that they should work with me. Presto — advertising!

Q:

What are my disclosure obligations for online advertising?

A: Online ads for a firm must have: • firm name; • city and state of main office; and • all jurisdictions (usually states) in which the firm is presently licensed.

Q.

I often advertise using Facebook and Twitter, and I do not have room to put my required disclosures. How do I comply with my ethical and regulatory duties? A. NAR’s Code of Ethics and

VREB regulations recognize that making online disclosures can be difficult. VREB requires the following for Web advertisements: “If a firm or licensee owns a Web page or controls its content, the viewable page must include disclosure or a link to disclosure.” A common scenario involves an agent posting a listing on Facebook. The agent must include his required online disclosures on the first screen people see when they reach the agent’s Facebook site (the viewable page) or include a direct link on that page that is one click away to a website with the required disclosures clearly displayed on the viewable page — usually the agent’s website. The same would go for Twitter. (NAR includes a similar link requirement in amended Standard of Practice 12-5.)

Online ads for a licensee (not a firm) must have: • licensee’s and firm’s name; • city and state of the licensee’s office (not necessarily firm’s main office); and • jurisdictions (usually states) in which the licensee holds a license, active or not.

10 MAY/June 2011

www.VARealtor.com


Q:

Are e-mails advertising?

A: No matter how infrequent, when agents use an e-mail account for marketing purposes, they must include the required online disclosures. In fact, VAR advises agents that if there is any chance that an

Q:

e-mail account or online technology — Facebook, LinkedIn, Twitter, etc. — might be used to solicit business, they should include the required disclosures in a signature file or somewhere visible on the Web page. Another acceptable way to provide this disclosure is through a link on

How engaged do brokers have to be concerning agent advertising?

A: For principal and supervising brokers, you are responsible for all advertising for your firm. This means if your agents are blogging or using some other online technology to market properties, you must review and approve the advertising. You should educate your agents about this fact and establish clear and precise firm policies dealing with online advertising.

Legal Hotline: Brokers Only the legal Hotline is one of the most highly-rated services we provide at VAR, and we encourage all eligible members to use it as often as they need it. However, this service is limited to the principal broker and one designee, mainly because we encourage agents to go to their brokers first. After all, principal brokers are accountable for the actions of their agents and need to be informed of any pending legal issues. So agents, if you have a legal issue please go to your brokers. Brokers, if you do not know the answer please feel free to call the legal Hotline — we would love to help! Also, please note that our legal Resources center at www.VARealtor.com/legalresources contains a wealth of legal information that is available to all members.

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 3

the viewable page that is one click away to the required disclosures. Please note, once you have an established relationship with your client ordinary business communications do not have to include disclosures — you are not advertising at that point.

Discrimination definition expanded nAR has made an important change to Article 10 of the code of ethics: Realtors® shall not deny equal professional services to any person for reasons of race, color, religion, sex, handicap, familial status, national origin, or sexual orientation. Realtors® shall not be parties to any plan or agreement to discriminate against a person or persons on the basis of race, color, religion, sex, handicap, familial status, national origin, or sexual orientation. (Amended 1/11) Realtors®, in their real estate employment practices, shall not discriminate against any person or persons on the basis of race, color, religion, sex, handicap, familial status, national origin, or sexual orientation. (Amended 1/11) (emphasis added.)

MAY/June 2011 11


legallines What’s fair is fair When it comes to fair housing law, it’s hard to find a more qualified expert than John Cancelleri. Not only is he an attorney, he’s former director of the Virginia Fair Housing Office — and he helped us put together this primer on the law. Fair housing laws are not complicated. Simply put, they make it illegal to limit someone’s housing choice based on their being in a “protected class.” Your ability to obtain a mortgage, rent an apartment, or buy a home should be based solely on your qualifications: credit score, employment and rental history, and possibly on your criminal background. Your gender, race, religion, and so on should have no impact on whether you can get a home. Rental applications and sales contracts are declined all the time. But to keep within the law, you need to be sure that those denials are not based on the applicant’s being in a protected class. Virginia fair housing law recognizes eight protected classes: race, color, religion, gender, disability, elderliness, national origin, and familial status. Further, the Realtor® Code of Ethics prohibits discrimination based on sexual orientation. Most of these classes are obvious, but some deserve some clarification. • Unlike race, color is simply the darkness or lightness of their skin. • Elderliness refers to someone being over 55. • National origin refers to where they came from, recently or not; 12 MAY/June 2011

e.g., Irish, Polish, Thai, etc. • Familial status simply means having children under 18. If you are going to limit someone’s housing choice, it cannot be because the applicant is in any of those classes. You can’t, for example, deny an elderly person a rental because you’re afraid she will hurt herself on the stairs, or refuse to sell a house to a family that has four children or because “I had bad luck with an Irish family once.” Fair housing law goes beyond the basics such as renting or writing a mortgage. Some other things it prohibits based on someone being in a protected class: • Refusing to negotiate a sale or rental, or advertising any kind of limitation, e.g., “No Irish Need Apply.” Nor can you try “exaggerating drawbacks or failing to inform any person of desirable features of a dwelling or a community, neighborhood, or development”; • Changing the conditions of the sale or rental, e.g., a higher security deposit for a family with children; or including any kind of restrictive covenant; • Denying or delaying the

processing of an application; • Implying that a particular neighborhood may not be appropriate, e.g., “I think you’d be more comfortable on Elm Street where there are more of your kind of folks”; • Failing or delaying maintenance or repairs; • Limiting the use of privileges, services, or facilities associated with a dwelling, e.g., “The community garden is off-limits”; • Assigning someone to a particular section of a development or building. On the other hand, you can refuse to rent or sell to applicants… • based on their age (except the elderly); • because they’re students; • because they smoke; • because they’re a member of a particular political party; • because they’re an unmarried couple; • because of their source of income. However, a word of caution. Several jurisdictions, including Alexandria, Arlington, Fairfax County, and Virginia Beach, may have additional protected classes in their local fair housing laws. ●

www.VAReAltoR.coM


VirginiaHousingSearch.com


lifelessons Andrew Kantor

Bad apples Licensees who run afoul of Virginia law can find themselves in the crosshairs of the Virginia Real Estate Board, facing punishment ranging from a small fine to loss of their license. They can be cited for small things or large, including the all-too-common “Unworthiness & Incompetence.”

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.

Conduct unbecoming

time and trouble. Bonnie filed for bankruptcy. The Murphys sued, claiming fraud on Bonnie’s part. (That would mean that, if the Murphys won in court, the damages they received would not be included as part of Bonnie’s bankruptcy; essentially, she would have to pay them first.) The Murphys won, helped by the fact that during the trial it was revealed that she and Donald were friends — in fact, Bonnie and her family had lived with Donald at one point. All the evidence in mind, and not wanting to second guess the court, the Real Estate Board found that Bonnie had engaged in “improper, fraudulent, or dishonest conduct,” and that her actions “clearly demonstrate a lack of character.” Bonnie was fined $2,500 and had her real estate license revoked.

The Murphys were selling their home themselves — a FSBO — asking $585,000 for it. They were contacted by Bonnie, a Realtor®, who had a pre-qualified buyer (Donald) interested in the house. Bonnie provided the Murphy’s with a letter showing that Donald was approved for up to $600,000. The Murphys entered a listing agreement with Bonnie and her firm, CheckItOut Realty; Bonnie was a disclosed dual agent. The Murphys and Donald entered into a contract, with a closing date set for two weeks later. Then Bonnie had to postpone the closing. And again. And again. Finally, two months after the contract had been signed, she told the Murphys that the sale had “fallen through” because Donald could not, in fact, get financing. Why not? Because, a month before Bonnie approached the Murphys, Donald had bought a different home for $550,000. He couldn’t get a loan for a second home. The rub: Bonnie was his agent for that purchase — in fact, she was a disclosed dual agent. The Murphys refused to release the contract until they were reimbursed for their 14 MAY/June 2011

Head games In April, Christine and Frank Huang, through their Realtor®, Tiffany, entered into a contract to buy a house from Lucy Marcell in a short sale; it included a financing contingency and was scheduled for closing in December. The Huangs gave Tiffany an earnest money deposit of $3,500. Marcell’s Realtor®, James, was in touch with Tiffany every few weeks, and kept asking about the Huang’s financing. Tiffany wouldn’t provide any paperwork, but explained that yes, the Huang’s were getting a loan. In November (about a month before closing), Tiffany told James that the Huangs’ closing costs had not been approved. James asked for — and got — the loan officer’s contact information. But that loan officer www.VARealtor.com


had no clue what he was talking about; he had never heard of either Tiffany or the Huangs. James, concerned, went back to Tiffany, who explained that (oops!) she forgot that she had used a different loan officer. So, asked James, who was this other lender? Tiffany couldn’t tell him. She had been in an accident, she explained, had hit her head, and couldn’t remember anything. (Yes, this is a true story.) Over the next week, as closing approached, James kept asking for the loan information. Tiffany didn’t return his calls or e-mail. Without that information the closing could not proceed. The Huangs complained to Tiffany’s broker. He had never heard of the contract. The Huangs, Marcell, and Tiffany’s broker all signed

a release, and the Huang’s got their EMD back. As part of its investigation, the Real Estate Board spoke to Tiffany, requested her documentation, and arranged for an interview. Tiffany agreed, but never showed up. When called, she said she was sick and asked for another day to get her documents. The next day, Tiffany told the Board agent that she couldn’t find the documents because they were in storage. But she also claimed that she was not involved in the listing — despite the fact that her signature was on the contract. For failing to inform her broker of the transaction, failing to property handle the Huangs’ EMD, giving false and misleading information, and failing to safeguard the interests of the public, Tiffany was fined $6,300 and lost her license. ●

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.

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

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

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MAY/June 2011 15


formfactor BLAKE HEGEMAN

VAR Form 600 Residential Contract of Purchase Section 25, last line

25 ….Unless otherwise provided herein, the representations and warranties made by Seller herein and all other provisions of this Contract shall be deemed merged into the deed delivered at settlement and shall not survive settlement.

VAR’s contract has always had a merger provision, which means that in accepting the deed, the buyer accepts the seller’s performance under the contract. The provision did not apply to anything specifically made to survive closing by the terms of the contract. Recently, the Virginia Supreme Court ruled against merger provisions. The court made clear that that only title issues merge into the deed and everything else survives settlement regardless of what the contract states. Therefore, a purchaser could be liable for unsatisfied contract provisions that previously were merged into the deed at closing. By the time of this article’s publication, VAR will have updated this provision to bring it into compliance with the Supreme Court’s ruling.

VAR Form 610 Request for Property Owners’ Association Packet

Form 610 was amended in 2008 in response to numerous changes to the POA Act. It is simply a notice to request the packet, tell the association/management company who is to get it and how and where delivery is to be made. It includes changes to the law concerning electronic delivery and the number of copies to be provided upon request. However, there is some confusion as to why Form 610 no longer contains the long list of items associations are required to include in the packet. The reason: Associations are statutorily required to provide the items anyway, and the Common Interest Community Board has a cover sheet that must be provided by the POA with a list of required items. ●

Forms — they’re the bread and butter of a 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.) 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. 16 MAY/JUNE 2011

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®



John DiBiase points to the Capitol dome, a few blocks from NAR’s D.C. headquarters. “We have to make sure that those people over there don’t do anything to fundamentally alter the relationship you have with your clients.” And that is the crux of the matter, at least from a Realtor® perspective. DiBiase should know — he’s communications director of NAR’s Government Affairs Division. As the wrangling over all things economic continues on Capitol Hill, two topics are in the forefront in terms of the housing economy: the federal budget (should changes to the mortgage interest deduction play a role?) and reforming the secondary mortgage market (what should the government’s role be?). Although the President’s deficit reduction task force — and a group of senators led by Virginia’s Mark

Warner — have put the MID on the table, so far no actual budget proposal has included reducing or eliminating it. But that could easily change, explained Linda Goold, NAR’s director for tax policy, because — oddly enough — of the threat of a government shutdown. Normally, she said, a vote to raise the federal debt ceiling is straightforward, if unpopular. “They hold their noses, make speeches… and pass it,” she said. This year, though, for the first time, Republican lawmakers are trying to attach other, controversial legislation to the debt-ceiling vote — such as cuts to Social Security, Medicare and

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✪✪✪ “A lot of new people in Congress have never dealt with housing issues.” Tony Hutchinson

✪✪✪ 20 MAY/June 2011

Medicaid, as well as abortion restrictions and environmental laws. That turns what has always been quick (if distasteful) into yet another fullblown battle. And, said Goold, “We fear that that is the context in which there [will be] some kind of attack on the mortgage interest deduction.” Because Congress has to raise the debt ceiling; the Fourteenth Amendment requires the government to pay its bills.1 And not paying its bills — defaulting on our debt — would have devastating consequences for the economy. Which means “the conversation will turn to deficit reduction,” and will lead to talk about tax reform. And when tax reform is the issue, the tax benefits attached to the real estate market end up in the crosshairs as members of Congress ask themselves, as Goold put it, “Do we want to be foregoing over a trillion dollars in revenue?” It’s Realtors®’ job to explain that, while the short-term benefits may be appealing, messing with the MID would be disastrous in the long term. Teaching isn’t easy. “A lot of new people in Congress have never dealt with housing issues,” said Tony Hutchinson, NAR’s senior policy representative for financial services. He’s focused on the second major real estate-related topic on the agenda: the secondary mortgage market, and what role government-sponsored enterprises Fannie Mae, Freddie Mac — and the government in general — should play.

A fine and (mostly) private place From a Realtor® perspective, the position is clear: 1) GSEs like Fannie and Freddie need to play some role, and 2) any kind of GSE reform has to be integrated and comprehensive. “A piecemeal approach to reform … will erode lender confidence,” Hutchinson explained. And no matter what the final picture looks like, the federal government will need to be a part of it. “Only academics and think tanks want a fully privatized secondary mortgage market,” he said. Because when times get bad, “private capital heads to the sidelines.” That doesn’t mean the government should be the only player in the secondary mortgage market, but it needs to have a role so that “in the event of a hundred-year storm like we just had, we continue to have the free flow of mortgage capital.” NAR lobbyist Ken Wingert also cautioned against removing the government from the process entirely. Right now, he pointed out, there are four major players in the mortgage game: Bank of America, Chase, Citigroup, and Wells Fargo. “If we go to a fully privatized market,” he said, “we’ve just made ‘too big to fail’ even bigger.” And whatever role the public side plays, it’s got to strike a balance between protecting (and thus encouraging) lenders, while not taking undue risk on behalf of taxpayers. Choosing the sweet spot between

1. “The validity of the public debt of the United States, authorized by law, including debts incurred for payment of pensions and bounties for services in suppressing insurrection or rebellion, shall not be questioned.”)

www.VARealtor.com


too much and too little government involvement in the mortgage market won’t be easy, but Hutchinson said it’s important that the decisions be made carefully. “You’re going to hear a lot of noise, you’re going to see a lot of screaming and yelling, but the idea that we have to take it slow is being heard.” NAR is working on the issue, he said, and is developing its own comprehensive plan that balances the power of profit motive with the necessary support of the housing market. (One possible model: the Export-Import Bank of the United States, which was created by the federal government to fund some international transactions when private lenders either can’t or won’t because of political or commercial risks.)

Skin in the game The issue gets more complex when the idea of QRMs — qualified residential mortgages — is added to the mix, thanks to the Dodd-Frank financial reform bill. The housing crisis and Great Recession was precipitated by too many people who couldn’t afford mortgages getting them anyway, because loan originators had no reason to care what happened after the borrowers left the office. Those loans were sold, divided, and mixed with others to create those infamous collateralized debt obligations — securities traded like stocks and bonds. “Originators,” said Wingert, “could produce the worst loan possible without any risk.” The grenade, in other words, would go off in someone else’s foxhole. Enter QRMs, which are part of the

plan to prevent that from happening again. Dodd-Frank requires that loan originators maintain some risk — five percent, to be specific — so they won’t be quite so quick to hand over a few hundred grand to anyone with a thready pulse. But that’s a lot to ask, especially of smaller banks. So the federal government will be there to back up some mortgages: QRMs. If a mortgage lender creates a loan that meets the QRM requirements, that five percent requirement is waived and the government will back the loan. Problem: The law doesn’t define what a QRM is. That’s up to financial regulators from the FDIC, the Federal Housing Finance Agency, the Fed, HUD, the Office of the Comptroller of the Currency, and the SEC. The initial idea that had been floated (by the FDIC, by the way) would require a 20 percent down payment to qualify for QRM status; the loan would also have to meet the 28%/36% requirement (mortgage payments less than 28 percent of income, and total debt payment less than 36 percent). QRMs would only be a subset of available loans, of course — although the most desirable. Banks could offer more risky, more profitable loans to clients, as long as they kept that five percent — so-called skin in the game. But just the existence of QRMs, whatever their form, will have profound effects on the market, Wingert said. “[QRM] becomes the gold standard, and borrowing costs for the other types of loans will go up.” Industry experts estimate that the

Volume 18 ● Issue 3 MAY/JUNE 2011 21


“[QRM] becomes the gold standard, and borrowing costs for the other types of loans will go up.” Ken Wingert

difference between a QRM and nonQRM mortgage could be as much as 3% — meaning some consumers could have to pay an 8% interest rate when others only pay 5%. But is the idea of a qualified mortgage a bad thing? It would reduce the number of unqualified people getting loans, put the risk back in the private sector where it belongs, and hopefully protect taxpayers from having to bail out banks that let greed trump common financial sense. But is it a good thing? Credit is too tight as it is. People with pristine scores, long-term jobs, and obvious financial qualifications are still being turned down by skittish lenders, even with the Fannie/Freddie safety net in place. Because two-thirds of buyers put down less than 20%, NAR expects this rule will force more borrowers into FHA — and the administration and some Republicans would like to raise FHA down payment requirements to 5% from 3.5%. An increase to as high as 10% is not out of the question. Added to the mix is that, on

22 MAY/June 2011

October 1, the FHA’s conforming loan limit of $729,750 will expire and drop to $625,500, even in the most expensive housing markets in the country. That will make the purchase and sale of homes within more expensive markets that much more challenging, and some House Republicans would like to shrink that limit even further. Economic policy is complex without a recession still in our rearview mirror, a quibbling Congress, and housing market that may or may not have hit bottom. These days, when we are dealing with all that, Realtors® — and their lobbying and policy teams — have their work cut out for them… and then some. Linda Goold, for one, is optimistic. “Our hearts are pure,” she said. “We shall not fail.” l

www.VARealtor.com


New Real Estate Laws for 2011 the 2011 session of the General Assembly, like every other session, produced many changes in Virginia law. Most of these will take effect on July 1. VAR’s legislative team was able to secure many changes during this year’s General Assembly session that will have a profound effect on your real estate business. Virginia Residential Property Disclosure Act and form: Beginning in July, the disclosures that appear on the form provided by sellers to purchasers of residential property will change dramatically. The current list of disclosures/disclaimers on that form will move to a website maintained by the Real Estate Board — thus eliminating the risk of using an outof-date form (and threatening your contract). The form will direct the purchaser to view that website. Of course, you can print the site’s contents and provide it to the purchaser at the seller’s discretion or if required by contract.

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Clarification that licensee may maintain electronic real estate records:

Real Estate Board will have flexibility to require new CE topics on an accelerated basis:

Although a related provision has been Virginia law for several years, there has been conflict over whether real estate records are permitted to be maintained exclusively in electronic form. This legislative change makes it absolutely clear that licensees may maintain their records in electronic form rather than having to retain allpaper copies, in accordance with the Uniform Electronic Transactions Act.

The Virginia Real Estate Board will be able to require by regulation that additional CE courses be created and offered to respond to changes in the market and industry (such as foreclosure and short sales) more rapidly than they currently are able to do. These courses would be for both brokers and sales agents — and would fall in the “electives” portion. No increase in overall hours could be required without additional legislation.

Clarification of civil immunity for inaccurate information received from clients or from public records:

Burden of Proof in Assessment Appeals will be lower:

A licensee shall not be liable for false information if the information was received from a client, from public records, or from reliance on the representations of another regulated professional. Note, though, that knowledge of the falsehood or reckless disregard of the truth removes this immunity.

Private transfer fees on property will be banned in Virginia:

VAR’s lobbying team worked like gangbusters this year and, thanks to our friends in the General Assembly, a list of laws to protect and serve Realtors® throughout the state were introduced and passed. Jay DeBoer, VAR’s vice president for law and policy, provides the details.

24 MAY/June 2011

Some developers have created a financing scheme which imposes a transfer fee, usually buried in the documents creating a project and customarily 1% of the purchase price, which is collected and paid to the developer each time the property is sold over the next 99 years. Such fees will be unenforceable in Virginia after July 1, 2011. However, fees charged by and payable to homeowners associations, condominiums, and cooperatives may continue to be collected.

In tax years starting on and after January 1, 2012, there will be clear requirements as to what the assessor must provide to taxpayers when property is reassessed. In an appeal to the Board of Equalization or to circuit court, the burden of proof for the taxpayer will be lowered from a “clear and convincing” standard (80+%) to a “preponderance of the evidence” standard (51%).

Additional amendments to Property Owners’ Association and Condominium Acts: The provisional Common Interest Community Manager License will be extended for one additional year; educational courses sponsored by Realtor® organizations may be used for qualification as a manager. Associations may not charge fees regarding inspections and disclosure packages that are not expressly set out in the law. Also, an association may collect its fees for a disclosure package if a sale has failed to close within 45 days. Professionally-managed www.VARealtor.com


associations are brought within the purview of the law, even if otherwise exempt.

Owners and real estate licensees representing owners and sellers must disclose known defective (“Chinese”) drywall wherever found: This applies to both sales and leasing transactions and to all configurations of owners, sellers, buyers, and tenants and potential tenants. Disclosure is required of REO and foreclosed property holders as well, unlike the requirements of the Virginia Residential Property Disclosure Act. Owners of property containing this drywall may appeal to the local government to have the property

reassessed to show its diminished value. Localities may include such properties in a rehabilitation district, providing a partial tax exemption to the owner. Additionally, many core provisions of real estate agency law in the Commonwealth were amended this year, with changes taking effect in July of 2012. Between now and then, a three-hour continuing education course will be developed and offered to licensees. It will cover changes in the basic brokerage and agency laws and must be taken in the next license renewal cycle, beginning July 1, 2012. The course will be widely available in late fall and winter. For more details on this, see VAR’s website. l

Earn 90% Commission? From the Desk of

Wes Foster

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People ask me all the time what makes Long & Foster different. How do we continue to excel in all market conditions? How have we obtained #1 market share in most of our markets? Stay on the cutting-edge of technology? Consistently attract top producers? Continue as the #1 independently-owned real estate Company in the nation? My answer across the board has always been — “It’s our people! For 40+ years we’ve put our people first — they’re who make Long & Foster who we are.” When you’re ready to partner with a team that puts you first, give us a call. You’ll be glad you did.

• New “Plans for Success” Commission Plans allow you to succeed • Several plan options to choose from • Earn up to 90%+ commission and maintain unparalleled support • Ambassador Plan — designed to reward you for recruiting • And more! Join the company that puts their agents first. Call 703-653-8581. ®

www.LongandFoster.com Volume 18 ● Issue 3

EOE

MAY/JUNE 2011 25


Member Survey Results

Survey says‌

26


Member Survey Results

Earlier this year we asked our members to participate in a survey about you, your business, and what VAR services you use (or would like to see). We do this regularly to make sure we’re serving your needs as best we can — to keep us on track, so to speak. So first and most importantly, thank you. More than 2,800 of you took the time to answer the 38 questions in the survey — almost 10% of membership. That meant the results were, as they say, statistically significant. The good news: Almost 73% of you are somewhat or very satisfied with the job we’re doing. Only 6% aren’t satisfied — but that 6% is important to us. You pay your dues, and we need to be sure you’re getting your money’s worth. Here’s some of what we learned about you, what you’re looking for, and what you’d like to see more (or less) of.

Who are you? The typical Virginia Realtor® — if there is such a thing — is female, over 55, has worked at least six years in the business selling residential property, and earns less than $50,000 per year from her real estate practice. Check it out: Age

Under 25 25-34 35-44 45-54 55+

Years in the Business

Less than 1 year 1-5 years 6-10 years 11-15 years 16-25 years More than 25 years

Annual Real Estate Income

Less than $25k $25k -50k $50k -100k $100k -150k $150k -200k More than $200k

Primary Role

Residential Salesperson Commercial Salesperson Appraiser Property Owner Broker-Owner (some selling) Broker-Owner (no selling) Manager (some selling) Manager (no selling)

How can we help? VAR does a lot — more, perhaps, that many members realize. Lobbying and political efforts top the list, of course, but we also provide a host of Realtor® education programs (especially on the Code of Ethics), legal resources, standard forms, Commonwealth magazine, and a variety of electronic information. (And don’t forget those member discounts.) Of all these things you get with your VAR membership, we asked, which do you find most valuable? (Turn the page to see the answer.)

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MAY/JUNE 2011 27


Very Important

28 MAY/June 2011

Important

Somewhat Important

Not Important

Neutral/No Opinion

Providing regular Virginia home sales data and analysis to members and media.

Working with outside companies

Media relations activities on behalf of REALTORS速

Advocating for affordable housing

Reaching out to members through local associations

Not Important

Providing the VAR Legal Hotline for brokers

Somewhat Important

Providing statewide standard real estate forms and contracts

Important

Code of Ethics training and enforcement

Very Important

Supporting candidates through RPAC

Lobbying on behalf of Realtors in the Virginia General Assembly

Code of Ethics training and enforcement

Monitoring state regulatory agencies

Providing statewide standard real estate forms and contracts

Providing the VAR Legal Hotline for brokers

Providing regular Virginia home sales data and analysis to members and media

10% 0

Monitoring state regulatory agencies

Lobbying on behalf of Realtors in the Virginia General Assembly

Member Survey Results

What VAR services are most valuable to you?

100% 90%

80% 70%

60% 50% 40%

30% 20%

Neutral/No Opinion

First we asked (above), of all the many things we do, which do you find most valuable? Then we asked for something more specific (below): Where should we focus our efforts going forward? In other words, how can we do better?

What should we focus on going forward?

100%

80%

60%

40%

20%

0

Not Familiar

www.VARealtor.com


Member Survey Results

Open ends We had several open-ended questions where we asked you to write a response. After all was said and done, we found some distinct threads. We asked, for example, how we could make you more likely to recommend that a newly-licensed friend become a Realtor® (and thus a VAR member). Topping the list:

low. 2. P ublicize the value of VAR 1. Keep fees and costs

membership — make it clear all we do for members.

benefits

of using a Realtor® — 3. Advertise the why it means more than just “real estate agent.” Were there any particular programs, services, or resources you wished we would offer? You bet.

Affordable health insurance

1. options — group rates, for example1;

GRI courses and locations — including

2. More online classes;

ethics training; 4. More courses on working with short sales

3. More

and foreclosures; and

5. One

statewide MLS and/or lockbox system.

(Number 3 had us raise our eyebrows. It makes sense that training and enforcing the Code of Ethics should be a priority, but in a separate question, more than 97% of respondents had said they “understand and adhere to” the Code. So is the message, “I know the Code, but other people need to be reminded”?) 1. Federal law prohibits us from doing that, unfortunately

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MAY/JUNE 2011 29


Member Survey Results

There were, in fact, plenty of interesting, useful, and even fun messages among members’ written responses. Check out Last Word on page 44 for a sampling. And look for more information from our survey throughout the year. l

A little RPAC

We have a winner — three of them! Everyone who submitted a survey was entered into a drawing to win either a $250 gas card, a $100 gas card, or a Creative Vado HD video camcorder. Here’s who scored: $250 gas card Herbert Smith Advantage Realty, Roanoke

The answers we got to our questions about your RPAC participation were also interesting. For example: • While about 30% of VAR’s overall membership invest in RPAC, a whopping 60% of survey respondents indicate that they do. Takeaway: Survey respondents tend to be more involved, or more willing to be involved, in their association and its efforts. • The economy was, by far, the number one reason for not contributing. • Members who identified themselves as Republicans were much more likely to invest in RPAC regularly than Democrats. • Income affects RPAC investments — the higher the reported annual income, the more likely a respondent was to have invested in RPAC. • Members of small- and mid-sized local associations invested in RPAC more regularly than those of large locals.

Do you invest in RPAC? 90% 80% 70% 60% 50% 40%

$100 gas card Rose M. Cousins Long & Foster Real Estate, Alexandria Creative Vado HD Elizabeth F. Kistler Coldwell Banker Funkhouser, Harrisonburg

30 MAY/June 2011

30% 20% 10% 0%

Less than $25k Yes, I invest in RPAC

$25k -50k Not Sure

$100k -$150k

$150k -$200k

More than $200k

I do not invest in RPAC

www.VARealtor.com


accessibletech ANDREW KANTOR

More power to ya Everything’s got a battery in it, from the AAs in the flashlight by your bed, to the oddly shaped rechargeable from your camera, to the one built into your phone. In the 21st century, you can’t talk tech without also talking batteries. In fact, technology manufacturers fret as much over batteries as they do over chips and screens. More, even. We’d probably all be driving clean, zippy electric cars — Tesla Roadster, anyone? — if battery technology had kept up with the rest of the market.* But it hasn’t, so for anyone who uses a lot of gadgets, choosing and using batteries requires a little thought. Commonwealth at your service. There are five kinds of batteries you’ll run into in your daily life, not counting the lead-acid behemoth in your car: • Standard alkaline • Lithium (non-rechargeable, e.g., Energizer Lithium) • Rechargeable NiCd (nickel-cadmium) • Rechargeable NiMH (nickel-metal hydride) • Rechargeable Li-ion (lithium ion) Sometimes you can choose what type of battery to use (e.g., in a flashlight or remote control), sometimes you can’t (when it’s built in). So here’s a quick guide to those five types: what to use them for when you can choose, and how to make them last.

Standard alkaline Pros: Easy to find; last longer than any rechargeable; long shelf life (when removed from device) — 10 years or more. Cons: More expensive than all other types over the long term; can leak if stored improperly. Best uses: Low-drain devices, e.g., clocks, remote controls; flashlights that use C and D cells; kept on hand for backups; in gifts that will be used a few times before being relegated to the bottom of the toy box.

Lithium (non-rechargeable) Pros: Longest-lasting type by far; best price/value ratio; fairly easy to find; very long shelf life (10-15 years); work well in hot or cold environments; high energy output (i.e., your flashlight will run brighter, longer); weigh less than alkaline; don’t leak. Cons: High initial cost may be off-putting; environmentally-unfriendly chemicals; waste of money to use in low-drain devices. Best uses: High-drain devices — camera flashes, flashlights, music players, Wii controllers; devices that will be stored for the long haul (e.g., emergency radios); devices that will be used in harsh environments.

Fill me up, drain me down Rechargeables, dollar for dollar, are the best bet for devices you use often. One important measurement is “cycles” — the number of times you can run down and recharge a battery. Treated right, you can get several hundred cycles from a NiMH battery, and a thousand or more from NiCd or Li-ion cells. Treated poorly and they won’t hold a charge long at all. Unlike alkalines, where store brand is as good as name brand, there are significant differences in rechargeables’ quality. Ditto for chargers. Stick with reputable stores (I can recommend BatteryJunction.

If Moore’s Law — computing technology doubles in power every 18 months — applied to batteries, your laptop could last half a year on a AAA battery.

Volume 18 ● Issue 3 MAY/JUNE 2011 31


accessibletech com and GreenBatteries.com) or at least brands you recognize. If you buy a charger, spend the extra on a smart charger, which will have built-in circuitry to prevent overcharging. A timer isn’t good enough. Finally, be aware of the issue of “self discharge.” Left sitting on a shelf or in a flashlight, rechargeable batteries will lose their charge, some faster than others. This makes them ill suited for devices that will sit for long periods of time, such as an emergency light or radio.

NiCd rechargeable Pros: Maintain full output till the very end, rather than fading slowly; long shelf life; can take up to 1,000 charges; provide very high currents; work well in cold weather; don’t suffer if quick-charged. Cons: Lower capacity than other rechargeables; contain toxic chemicals (notably cadmium); require a little more care to ensure long life; in certain rare situations can suffer from “memory effect” and not hold full charge. Best uses: High-drain, short-duration devices such as power tools and camera flashes. Care and feeding: Before the first use, slow or “trickle” charge for 24 hours. This can help ensure a longer life. Don’t overcharge — remove them from the charger when they’re done, even on “trickle charge” (except that first time). Don’t overdrain. When the device warns of a low battery, recharge it immediately. Discharge them before storage (but not all the way).

NiMH rechargeable Pros: Best overall value for frequently-used electronics that take AA or AAA sizes (which aren’t available in Li-ion); larger capacity than NiCd; long shelf life when stored properly. Cons: High self-discharge rate — loses 20% of its capacity in the first day or two, and 30% or more every month, depending on temperature (but see the box “Holding fast”); fast-charging will significantly reduce its lifespan; provides half the cycles of NiCd; performs poorly in cold temperatures. Best uses: Toys, games, music players, and frequently-used devices that require continuous, low to medium power.

Storage space A battery’s capacity is rated in milliamp-hours, or mAh. A typical rechargeable AA battery will have a capacity of 2,800 mAh. So when you’re looking at two brands or types, make sure you’re comparing apples to apples.

Care and feeding: Before the first use, charge completely, discharge completely, and repeat two or three times to condition them to hold a charge longer. Avoid “fast chargers” — sure you’ll have them ready (or at least 80% ready) in 20 minutes, but they’ll have a much shorter lifespan. Don’t wait till they’re dead before charging. “Deep discharges” will reduce their lifespan; you’ll get longer lifespan if you charge them sooner. Store them at least half charged. LSD trips The big downside to NiMH batteries is their high selfdischarge rate. They just don’t like to sit around. After a month or two, they’re practically dead. Enter “low self discharge” (LSD) cells, where Sanyo’s Eneloop is the king of the hill. They’re NiMH batteries (so you can use any NiMH charger), but they can hold their charge much longer; Sanyo claims its new Eneloops will retain 75 percent of their charge after three years in storage, and can be recharged up to 1,500 times. (In fact, that’s how you can tell they’re the latest version: The blister pack has a big, red “1,500” on it.) The downside: LSD rechargeables typically have smaller capacity than regular NiMH batteries. If you’re willing to give up some of that longevity, Duracell’s “Rechargeable Pre-Charged” and Energizer’s “Recharge” have higher capacities, but can only be recharged up to about 500 times. They’re claimed to hold 75% charge up to a year.

Li-ion rechargeable Li-ion batteries are standard in laptops, mobile phones, and many consumer electronics. They’re not, however, available in standard sizes such as AAA or AA because

32 MAY/June 2011 www.VARealtor.com


of their exacting charging requirements. Improper charging (such as in a NiCd, NiMH, or cheap offbrand charger) can result in the rather disturbingly named condition known as “thermal runaway”: they can catch fire and explode. Pros: Greatest capacity for their size; low self-discharge compared to other rechargeables; can take more charging cycles than NiMH. Cons: Prone to overheating; off-brand batteries or chargers can lead to fire. Care and feeding: Charge early, charge often — The less they’re discharged before a ‘refill,’ the longer the lifespan. Avoid frequent full discharges. Store partially charged in a refrigerator. Really. l

The lazy person’s AA/AAA buying guide For flashlights and anything that’s likely to sit unused: Energizer lithium. For stuff you use regularly: Sanyo Eneloops. To put with a gift: Energizer or Duracell alkalines. (Store brand is a better deal, but you probably don’t want to look cheap.) Battery chargers: La Crosse BC-700 ($40; four AAs or AAAs) or Maha MH-C800S ($50; eight AAs or AAAs)

VAR members receive special UPS discounts of up to 30% off air and international shipments, and can now save on ground shipments. For more information or to enroll for your savings, visit savewithups.com/enroll and use promo code SER291.

Put the new logistics to work for you.

© 2011 United Parcel Service of America, Inc. UPS, the UPS brandmark, and the color brown are trademarks of United Parcel Service of America, Inc. All rights reserved.

Volume 18 ● Issue 3 MAY/JUNE 2011 33


rpacreport As of April 8, 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

Billy Chorey, Sr.*

Dennis Cronk*

John Dickinson

Steve Hoover

Burnette Real Estate Sales Blacksburg

Chorey & Associates Realty, Suffolk

Cronk & Poe Real Estate Group, Roanoke

Hall Associates, Inc. Union Hall

MKB, Realtors® Roanoke

John McEnearney

John Powell

Re/Max Allegiance

Tom Stevens*

Melanie Thompson*

McEnearney Associates, Inc., Alexandria

Long & Foster Real Estate, Inc., Colonial Heights

Alexandria

Colonial Banker Residential, Vienna

Century 21 AdVenture Realty, Fredericksburg

Golden R Association ($5,000)

Jack Torza* Long & Foster Realtors® Mechanicsville

34 MAY/June 2011

Northern Virginia Association of Realtors®, Fairfax Roanoke Valley Association of Realtors®, Roanoke Williamsburg Area Association of Realtors®, Williamsburg

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

www.VARealtor.com


Crystal R Association ($2,500)

Sterling R Investors ($1,000–$2,499)

Jane Quill

Trish Szego

Bob Adamson

Guy Allen

Re/Max Presidential Fairfax

ERA-Elite Group, Realtors®, Fairfax

McEnearney Associates, Inc., McLean

One Stop Realty Woodbridge

Julia Avent

Tammy Bagnato

Sherry Bailey

Deborah Baisden

Mary Bayat

Re/Max Allegiance Arlington

Coldwell Banker Residential, Springfield

Century 21 New Millennium, Stafford

Prudential Towne Realty, Virginia Beach

Bayat Realty, Inc. Alexandria

Laura Benjamin

Karen Bohlke Enriquez

Brad Boland

Candice Bower

R. Scott Brunner

Robyn Burdett

Jobin Realty Reston

McEnearney Associates, Inc. Leesburg

Virginia Association of Realtors® Glen Allen

Re/Max Allegiance Reston

Commission Express

Billy Coons

Benton Downer

Realty Executives Virginia Beach

Downer & Associates Charlottesville

Roanoke Valley Association of Realtors®, Roanoke

Re/Max Select Hampton

Dale Chandler

David Charron

Vic Coffey

Greg Garrett Realty Newport News

MRIS Rockville, MD

Re/Max All Stars Realty, Daleville

Volume 18 ● Issue 3

Fairfax

Katy Allenbaugh -Richards First American Home Buyers Protection, Midlothian

Mary Ann Bendinelli Weichert REALTORS® Manassas

MAY/JUNE 2011 35


rpacreport Sterling R Investors ($1,000–$2,499)

Mary Dykstra

Sandee Ferebee*

MKB, Realtors Roanoke

Prudential Towne Realty Virginia Beach

Virgil Frizzell

Bev Frowen

Bill Gearhart

Long & Foster Real Estate, Herndon

Long & Foster Real Estate, Manassas

Coldwell Banker Townside, Roanoke

George Grundy

Kit Hale

George Grundy & Associates Realty Petersburg

MKB, Realtors® Roanoke

Margaret Handley

Lizzie Hernandez

Jeanne Hockaday

Tom Innes

M.C. Handley, Ltd. McLean

Re/Max Regency Manassas

Virginia Country Real Estate, Ordinary

Re/Max Commonwealth Richmond

Donn Irby Rose & Womble Realty Chesapeake

Kathleen Kennedy

Betty Kingery

Pat Kline

Jody Korman

Sita Kapur

Re/Max Regency Manassas

Mountain to Lake Realty Rocky Mount

Avery Hess Realtors® Springfield

Re/Max Commonwealth Richmond

Arlington Premier Realty Arlington

Vonda Lacey

Richard Limroth

Shane McCullar

Scott MacDonald

Susan Mekenney

Tom Meyer

Lacey Real Estate Group Fishersville

Re/Max Valley Realtors® Roanoke

Keller Williams Realty Alexandria

Re/Max Gateway Chantilly

Re/Max Allegiance Alexandria

Re/Max Allegiance Alexandria

36 MAY/June 2011

Claire ForcierRowe Coldwell Banker Elite Fredericksburg

www.VARealtor.com


Sterling R Investors ($1,000–$2,499)

Jay Mitchell

Percy Montague

Vinh Nguyen

Lee Odems

Forrest Odend’hal

Susan Oh

Prudential Towne Realty Virginia Beach

Montague, Miller & Co., Charlottesville

Westgate Realty Group, Inc., Falls Church

Buyer’s Advantage Real Estate, Woodbridge

Long & Foster Real Estate, Gainesville

New Star Realty & Investment Fairfax

Gwen Pangle

Gail Penman

Lonnie Plaster

Anne Rector

Peter Rickert

Thomas Rickert

1757 Real Estate Company, Leesburg

William E. Wood & Associates Virginia Beach

Long & Foster Real Estate, Manassas

Long & Foster Real Estate, Alexandria

Coldwell Banker Residential, Alexandria

Coldwell Banker Residential, Alexandria

Zinta RodgersRickert

Fetneh Schacht

Henry Scholz

Trudy Severa

Karen Smith

Kimber Smith

Long & Foster Real Estate, Vienna

Hall Associates, Inc. Roanoke

Long & Foster Real Estate, Reston

Re/Max Commonwealth Richmond

Prudential Towne Realty Williamsburg

Susan Spellman

Cindy Stackhouse

Wes Stearns

Suzy Stone

Century 21 Stackhouse & Associates, Dumfries

MO Wilson Properties, Inc., Woodbridge

Century 21 AdVenture Realty, Fredericksburg

Thomas “Mack” Strickland, Jr.

Pat Sury

Long & Foster Realtors®, Williamsburg

Re/Max Allegiance Fairfax

Volume 18 ● Issue 3

Strickland Realty Chester

Montague, Miller & Co., Charlottesville

MAY/JUNE 2011 37


rpacreport Sterling R Investors ($1,000–$2,499)

Christine Todd

Karen Trainor

Shanna Wiseman

Joe Sutliff

Northern Virginia Association of Realtors®, Fairfax

Weichert REALTORS® Fairfax

Parr & Abernathy Hopewell

Re/Max All Stars Realty Daleville

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.

STERLING R ASSOCIATIONS $1,000–$2,499 Harrisonburg-Rockingham Association of Realtors®, Harrisonburg Lynchburg Association of Realtors®, Lynchburg Virginia Peninsula Association of Realtors®, Hampton

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.

www.VARealtor.com/RPAC 38 MAY/June 2011

www.VARealtor.com


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.


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

Speakers from across America!

Laurie Janik is NAR’s

Juliet Funt — yes, she’s

Brian Copeland may

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. 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.

Allen’s daughter — has made her own reputation as a fantastic speaker. Thanks to her show-biz background, she’ll grab your attention and hold on. (Talk about tough: She’s even trained the LAPD in human relations.) She’ll have you thinking, planning, and laughing about your ever-more-hectic life and your ever-more-complex business.

look familiar — you may have seen him on the Learning Channel’s “Flip That House” or on HGTV’s “Goodbuy/Badbuy.” He was YouTubing before it was mainstream, he’s won awards for his real estate marketing innovations (as a Realtor® he’s in the top 1% of his market!), and he’s one of the most popular real estate speakers in the country.

Jackie Leavenworth

Steve Harney is the

Todd Clarke has deep

hails from the Cleveland area, where she started her real estate career in 1984, and quickly became her company’s top producer. How do you do it? they asked. She answered with the “Jackie Leavenworth Seminars,” where she coaches agents around the country. You won’t want to miss “Coach Jackie” and her fun and engaging style — create a great life, not just a living!

guy to turn to when you want to learn how to be the best real estate leader and negotiator you can be. He’s got the cred: 20 years of real estate success, owner of his own 500 agent real estate firm, and creator of Steve Harney, Inc., his own brand of training and negotiation seminars. Today he shares his success, traveling the country as an industry speaker and trainer.

roots in commercial real estate. A fourth generation Realtor® and a second generation CCIM designee (including being named Commercial Broker of the year in 1996), Todd’s a popular lecturer and keynoter with courses on presentation skills, getting the most from all those gadgets and gizmos, and using your website the smart (read: profitable) way.


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

tHANK You, SpoNSorS

Platinum Sponsor:

Platinum Sponsor:

www.pncmortgage.com

Hampton Roads Realtors Association®

www.alphacollegeofrealestate.com

Atlantic Bay Mortgage

Re/Max

www.centerforrealestate.com

www.atlanticbay.com

www.remax.net

Bath Fitter & Kitchen Saver

RealBiz 360

www.bathfittermidatlantic.com

www.realbizmedia.com

Blu Skyy Realty

The Real Estate Book

www.bluskyyrealty.com

www.realestatebook.com

The Braun Agency - Nationwide

Real Estate Information Network

www.braunagency.com

www.reinmls.com

Centralized Showing Service

RealFocus

www.showings.com

Century 21 Booth 100 www.century21.com

Platinum Sponsor:

MRIS

www.century21.com

www.mris.com

www.realfocus.com

Realty Executives www.realtyexecutivesva.com

Samuel I. White, PC www.siwpc.net

EXIT Realty Virginia

Scentsy Wickless Candles

www.exitviriginia.com

www.inascentfun.scentsy.us

First American Home Buyers Protection

SentriLock, LLC

VHDA

www.sentrilock.com

www.vhda.com

HMS Home Warranty www.thinkhms.com

Homes.com www.homes.com

JES www.jeswork.com

Kathy’s Accessories Liberty Mutual www.libertymutual.com

Lowe’s Companies, Inc. www.lowesrealtorbenefits.com

Magnets USA www.magnetsusa.com

MRIS www.mris.com

My Marketing Matters www.mymarketingmatters.com

Old Republic Home Protection www.orhp.com

Platinum Sponsor:

Century 21

Cox Communication

www.firstam.com/warranty

Alpha College of Real Estate

Gold Sponsor:

Shaheen & Shaheen www.shaheenlaw.com

Skymie Video Tours, LLC www.vavideotours.com

Supra www.supraekey.com

Systems Engineering www.seisystems.com

Tidewater Home Funding, LLC

Cox Communication

Liberty Mutual

www.cox.com

www.libertymutual.com

Samuel I. White, PC

RealFocus

www.siwpc.net

www.realfocus.com

www.tidewaterfunding.com

Tennessee Valley Signs www.tennesseevalleysigns.com

UPS www.ups.com

VHDA www.vhda.com

zipLogix www.ziplogix.com


rpacreport As of April 8, 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

Billy Chorey, Sr.*

Dennis Cronk*

John Dickinson

Steve Hoover

Burnette Real Estate Sales Blacksburg

Chorey & Associates Realty, Suffolk

Cronk & Poe Real Estate Group, Roanoke

Hall Associates, Inc. Union Hall

MKB, Realtors® Roanoke

John McEnearney

John Powell

Re/Max Allegiance

Tom Stevens*

Melanie Thompson*

McEnearney Associates, Inc., Alexandria

Long & Foster Real Estate, Inc., Colonial Heights

Alexandria

Colonial Banker Residential, Vienna

Century 21 AdVenture Realty, Fredericksburg

Golden R Association ($5,000)

Jack Torza* Long & Foster Realtors® Mechanicsville

34 MAY/June 2011

Northern Virginia Association of Realtors®, Fairfax Roanoke Valley Association of Realtors®, Roanoke Williamsburg Area Association of Realtors®, Williamsburg

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

www.VARealtor.com


Crystal R Association ($2,500)

Sterling R Investors ($1,000–$2,499)

Jane Quill

Trish Szego

Bob Adamson

Guy Allen

Re/Max Presidential Fairfax

ERA-Elite Group, Realtors®, Fairfax

McEnearney Associates, Inc., McLean

One Stop Realty Woodbridge

Julia Avent

Tammy Bagnato

Sherry Bailey

Deborah Baisden

Mary Bayat

Re/Max Allegiance Arlington

Coldwell Banker Residential, Springfield

Century 21 New Millennium, Stafford

Prudential Towne Realty, Virginia Beach

Bayat Realty, Inc. Alexandria

Laura Benjamin

Karen Bohlke Enriquez

Brad Boland

Candice Bower

R. Scott Brunner

Robyn Burdett

Jobin Realty Reston

McEnearney Associates, Inc. Leesburg

Virginia Association of Realtors® Glen Allen

Re/Max Allegiance Reston

Commission Express

Billy Coons

Benton Downer

Realty Executives Virginia Beach

Downer & Associates Charlottesville

Roanoke Valley Association of Realtors®, Roanoke

Re/Max Select Hampton

Dale Chandler

David Charron

Vic Coffey

Greg Garrett Realty Newport News

MRIS Rockville, MD

Re/Max All Stars Realty, Daleville

Volume 18 ● Issue 3

Fairfax

Katy Allenbaugh -Richards First American Home Buyers Protection, Midlothian

Mary Ann Bendinelli Weichert REALTORS® Manassas

MAY/JUNE 2011 35


rpacreport Sterling R Investors ($1,000–$2,499)

Mary Dykstra

Sandee Ferebee*

MKB, Realtors Roanoke

Prudential Towne Realty Virginia Beach

Virgil Frizzell

Bev Frowen

Bill Gearhart

Long & Foster Real Estate, Herndon

Long & Foster Real Estate, Manassas

Coldwell Banker Townside, Roanoke

George Grundy

Kit Hale

George Grundy & Associates Realty Petersburg

MKB, Realtors® Roanoke

Margaret Handley

Lizzie Hernandez

Jeanne Hockaday

Tom Innes

M.C. Handley, Ltd. McLean

Re/Max Regency Manassas

Virginia Country Real Estate, Ordinary

Re/Max Commonwealth Richmond

Donn Irby Rose & Womble Realty Chesapeake

Kathleen Kennedy

Betty Kingery

Pat Kline

Jody Korman

Sita Kapur

Re/Max Regency Manassas

Mountain to Lake Realty Rocky Mount

Avery Hess Realtors® Springfield

Re/Max Commonwealth Richmond

Arlington Premier Realty Arlington

Vonda Lacey

Richard Limroth

Shane McCullar

Scott MacDonald

Susan Mekenney

Tom Meyer

Lacey Real Estate Group Fishersville

Re/Max Valley Realtors® Roanoke

Keller Williams Realty Alexandria

Re/Max Gateway Chantilly

Re/Max Allegiance Alexandria

Re/Max Allegiance Alexandria

36 MAY/June 2011

Claire ForcierRowe Coldwell Banker Elite Fredericksburg

www.VARealtor.com


Sterling R Investors ($1,000–$2,499)

Jay Mitchell

Percy Montague

Vinh Nguyen

Lee Odems

Forrest Odend’hal

Susan Oh

Prudential Towne Realty Virginia Beach

Montague, Miller & Co., Charlottesville

Westgate Realty Group, Inc., Falls Church

Buyer’s Advantage Real Estate, Woodbridge

Long & Foster Real Estate, Gainesville

New Star Realty & Investment Fairfax

Gwen Pangle

Gail Penman

Lonnie Plaster

Anne Rector

Peter Rickert

Thomas Rickert

1757 Real Estate Company, Leesburg

William E. Wood & Associates Virginia Beach

Long & Foster Real Estate, Manassas

Long & Foster Real Estate, Alexandria

Coldwell Banker Residential, Alexandria

Coldwell Banker Residential, Alexandria

Zinta RodgersRickert

Fetneh Schacht

Henry Scholz

Trudy Severa

Karen Smith

Kimber Smith

Long & Foster Real Estate, Vienna

Hall Associates, Inc. Roanoke

Long & Foster Real Estate, Reston

Re/Max Commonwealth Richmond

Prudential Towne Realty Williamsburg

Susan Spellman

Cindy Stackhouse

Wes Stearns

Suzy Stone

Century 21 Stackhouse & Associates, Dumfries

MO Wilson Properties, Inc., Woodbridge

Century 21 AdVenture Realty, Fredericksburg

Thomas “Mack” Strickland, Jr.

Pat Sury

Long & Foster Realtors®, Williamsburg

Re/Max Allegiance Fairfax

Volume 18 ● Issue 3

Strickland Realty Chester

Montague, Miller & Co., Charlottesville

MAY/JUNE 2011 37


rpacreport Sterling R Investors ($1,000–$2,499)

Christine Todd

Karen Trainor

Shanna Wiseman

Joe Sutliff

Northern Virginia Association of Realtors®, Fairfax

Weichert REALTORS® Fairfax

Parr & Abernathy Hopewell

Re/Max All Stars Realty Daleville

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.

STERLING R ASSOCIATIONS $1,000–$2,499 Harrisonburg-Rockingham Association of Realtors®, Harrisonburg Lynchburg Association of Realtors®, Lynchburg Virginia Peninsula Association of Realtors®, Hampton

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.

www.VARealtor.com/RPAC 38 MAY/June 2011

www.VARealtor.com


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.


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

Speakers from across America!

Laurie Janik is NAR’s

Juliet Funt — yes, she’s

Brian Copeland may

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. 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.

Allen’s daughter — has made her own reputation as a fantastic speaker. Thanks to her show-biz background, she’ll grab your attention and hold on. (Talk about tough: She’s even trained the LAPD in human relations.) She’ll have you thinking, planning, and laughing about your ever-more-hectic life and your ever-more-complex business.

look familiar — you may have seen him on the Learning Channel’s “Flip That House” or on HGTV’s “Goodbuy/Badbuy.” He was YouTubing before it was mainstream, he’s won awards for his real estate marketing innovations (as a Realtor® he’s in the top 1% of his market!), and he’s one of the most popular real estate speakers in the country.

Jackie Leavenworth

Steve Harney is the

Todd Clarke has deep

hails from the Cleveland area, where she started her real estate career in 1984, and quickly became her company’s top producer. How do you do it? they asked. She answered with the “Jackie Leavenworth Seminars,” where she coaches agents around the country. You won’t want to miss “Coach Jackie” and her fun and engaging style — create a great life, not just a living!

guy to turn to when you want to learn how to be the best real estate leader and negotiator you can be. He’s got the cred: 20 years of real estate success, owner of his own 500 agent real estate firm, and creator of Steve Harney, Inc., his own brand of training and negotiation seminars. Today he shares his success, traveling the country as an industry speaker and trainer.

roots in commercial real estate. A fourth generation Realtor® and a second generation CCIM designee (including being named Commercial Broker of the year in 1996), Todd’s a popular lecturer and keynoter with courses on presentation skills, getting the most from all those gadgets and gizmos, and using your website the smart (read: profitable) way.


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

tHANK You, SpoNSorS

Platinum Sponsor:

Platinum Sponsor:

www.pncmortgage.com

Hampton Roads Realtors Association®

www.alphacollegeofrealestate.com

Atlantic Bay Mortgage

Re/Max

www.centerforrealestate.com

www.atlanticbay.com

www.remax.net

Bath Fitter & Kitchen Saver

RealBiz 360

www.bathfittermidatlantic.com

www.realbizmedia.com

Blu Skyy Realty

The Real Estate Book

www.bluskyyrealty.com

www.realestatebook.com

The Braun Agency - Nationwide

Real Estate Information Network

www.braunagency.com

www.reinmls.com

Centralized Showing Service

RealFocus

www.showings.com

Century 21 Booth 100 www.century21.com

Platinum Sponsor:

MRIS

www.century21.com

www.mris.com

www.realfocus.com

Realty Executives www.realtyexecutivesva.com

Samuel I. White, PC www.siwpc.net

EXIT Realty Virginia

Scentsy Wickless Candles

www.exitviriginia.com

www.inascentfun.scentsy.us

First American Home Buyers Protection

SentriLock, LLC

VHDA

www.sentrilock.com

www.vhda.com

HMS Home Warranty www.thinkhms.com

Homes.com www.homes.com

JES www.jeswork.com

Kathy’s Accessories Liberty Mutual www.libertymutual.com

Lowe’s Companies, Inc. www.lowesrealtorbenefits.com

Magnets USA www.magnetsusa.com

MRIS www.mris.com

My Marketing Matters www.mymarketingmatters.com

Old Republic Home Protection www.orhp.com

Platinum Sponsor:

Century 21

Cox Communication

www.firstam.com/warranty

Alpha College of Real Estate

Gold Sponsor:

Shaheen & Shaheen www.shaheenlaw.com

Skymie Video Tours, LLC www.vavideotours.com

Supra www.supraekey.com

Systems Engineering www.seisystems.com

Tidewater Home Funding, LLC

Cox Communication

Liberty Mutual

www.cox.com

www.libertymutual.com

Samuel I. White, PC

RealFocus

www.siwpc.net

www.realfocus.com

www.tidewaterfunding.com

Tennessee Valley Signs www.tennesseevalleysigns.com

UPS www.ups.com

VHDA www.vhda.com

zipLogix www.ziplogix.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

To reach our Legal Hotline Call (804) 622-7955* *You must register first at VARealtor.com/LegalHotline

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

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 Realtors Federal Credit Union

UPS, shipping and more

(804) 249-5712 scott@VARealtor.com

VOLUME 18 ● ISSUE 3

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

T-Mobile, wireless service

Our CEO is Scott Brunner

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

MAY/JUNE 2011 43


lastword SCOTT BRUNNER

What do you think?

I love my

Commonwealth

magazine. A statewide MLS would be great.

So many rules

and regulations! It’s so hard to keep up! Your website is a wealth of

resources and materials.

Fix the

VAR website. I want an aptitude test for new agents.

Stay out of politics

or don’t take sides.

Just reduce

Promote the value of RPAC

and the relationship to the agents’ bottom line.

Democrats. Get out of

Republican

You do SO much. Thank you. Dual agency should be prohibited.

Dual agency should stay as it is.

a lot to have statewide contracts

that all must use.

If we have VAR, why do we have

local associations, and vice versa?

Thank you to all who took the time to respond to our survey. CEO Scott Brunner read all 3,628 responses and marvels at the diversity (and intensity) of opinion among VAR’s 28,600 members. Contact him at Scott@varealtor.com. 44 MAY/June 2011

Work on short

sale process

standardization.

Continue to be our voice in state government.

We need separate licensing for commercial agents. It would help

health insurance for Realtors?

politics. What are you doing about

Please keep MID safe.

of hours for

Stop lobbying. Force HOAs to adhere to applicable laws.

licensure and renewal.

the darn dues. You favor Increase the number

ICOMMONWEALTH NEVER READ magazine.

SAVE THE cash and stop printing it.

VAR cannot be all things to all members. They need to do and offer less, and be the best at it.

I am a taxpayer before I am a Realtor.

Here’s a (fairly representative) sampling of actual compliments, criticisms, and counsel shared with VAR in our recent all-member survey (see page 26). The Board of Directors will consider these responses, and thousands of others like them, in determining VAR’s strategic goals for the next three years.

www.VARealtor.com


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