A New Tool

Today NAR announced a new acquisition that will create a National Database of Real Estate Information for Realtors®. The announcement was made on Realtor.org, but many already knew about this move.

Here is the opening statement from the news release:

The National Association of Realtors® has acquired technology to create a database of all properties in the U.S. so Realtors® can better assist consumers in a high-tech, fast-paced business world.

The technology acquisition includes licensed data and secured data aggregation services from LPS Real Estate Group, a wholly owned subsidiary of Lender Processing Services Inc. (NYSE:LPS), a leader in real estate technology. NAR will use the assets to develop the Realtors® Property ResourceTM, a parcel-centric information database covering all of the more than 147 million property parcels in the country as a resource for NAR members. NAR is planning to launch RPRTM in the second quarter 2010.

“Realtors® are the first, best source for real estate information, and the RPR™ is another emphatic feature to that resource. RPR™ will give Realtors® nationwide data on all properties at their fingertips so they can respond quickly to consumers interested in residential and commercial real estate. This is exciting news and a terrific NAR member benefit. NAR is committed to keep Realtors® central to the transaction and to the buying and selling experience with their clients and customers,” said NAR President Charles McMillan, broker with Coldwell Banker Residential Real Estate in Dallas-Fort Worth.

NAR CEO Dale Stinton said, “These acquisitions will allow Realtor® interests to control the program and the content. Realtors® need to respond quickly to today’s tech-savvy consumers, and the RPR™ provides a means for multiple listing services (MLS), commercial information exchanges (CIEs) and real estate brokerage business models to support the Realtor® community, rather than requiring Realtors to purchase data aggregated by third parties.”

There are a number of speculations that this will be a MLS Killer,but NAR is assuring it’s membership that this  is no more than a tool for Realtors®.  Interestingly, Dale Ross, co-founder of MRIS will be on the RPR management team. 

Also from the news release:

RPR™ is not a national MLS, and will carry no offers of cooperation and compensation, Stinton added. “It is a private, NAR members-only benefit. The assets acquired by NAR will be directed through a wholly owned subsidiary corporation, Realtors® Property Resource, LLC,” Stinton said.

We’re sure that this will be a much discussed topic at the NAR Convention and will most likely make the “Future of MLS” panel very popular.  It’ll be interesting to watch and see how this tool will impact members.  As always, it’s important for Realtors® to reach out and learn about, as well as use those tools created by your Association.

The 2009 Homebuyer Tax Credit Has Been Made Law

On Friday November 6, 2009 President Obama executed a bill that extends the Homebuyer Tax Credit and since that time, everyone has had an opinion. It’s beneficial for the practitioner to know the real details, so that clients will have the best possible information. 

The extension and expansion of the Tax Credit has a few nuances, but here are the basics:

• Realtor.org Offers this Question and Answer FAQ:

  Q.  Existing homeowner credit:  Must the new house cost more than the old house?  
  A.  No.   Thus, for example, individuals who move from a high cost area to a lower cost area who meet all eligibility requirements will qualify for the $6500 credit. 

  Q.  I am an existing homeowner.  On October 25, 2009, I signed a contract to purchase a new home.  I have lived in my current  home for more than 5 consecutive years and am within the new income limits.  I will go to settlement on November 20.  If President Obama has signed the bill by the time I go to settlement, will I qualify for the new $6500 tax credit?
  A.  Yes.  The existing homeowner credit goes into effect for purchases after the date of enactment (when the bill is signed).   There is no reference to the date of contract for the new credit. The provision looks solely to the date of purchase, which is generally the date of settlement. 

  Q.  I am a first-time homebuyer but was not within the prior income limits at the time I entered into my contract to purchase on October 30, 2009.  I will be covered, however, by the new income limits.  If the new rules have been signed into law by the time I go to settlement, will I be eligible for a credit?  
  A.  Yes.  The new income limitations go into effect as soon as the President has signed the bill. The income limit and other eligibility rules will look to your status as of the date of purchase, which is the settlement date.  So if the new rules have been signed when you go to settlement, you should be eligible for the credit (or a portion of the credit if you’re within the phase-out range).

  Q.  I am an eligible existing homeowner.  I have a fair amount of equity in my home.  I have found a home with a non-negotiable price of $825,000.  Will I be able to use any of the $6500 tax credit?
  A.  No.  The $800,000 cap on the cost of the purchased home is firm at $800,000.  Any amount above $800,000 makes the home ineligible for any portion of the credit.  The $800,000 is an absolute ceiling. 

  Q. I owned my home for 10 years, but sold it two years ago year and have been renting since.  If I purchase a home, will I be eligible for the $6500 tax credit if I meet all the other eligibility tests?
  A.  Yes.  Because you lived in the home for more than 5 consecutive years of the previous 8, you will qualify for the $6500 credit.  For example, Say John and his wife bought a home in 2000 and lived there until 2008 when he got a divorce. Whether John has been renting or bought in the interim, he WOULD INDEED be  eligible for the credit because he owned a home and occupied it as his principal residence for 5 consecutive years out of the last 8 years. The keyword here is "consecutive." As long as he lived in that house for 5 years straight, what he did since 3 years doesn’t impact eligibility.

  Q.  I am an eligible first-time homebuyer.  I entered into a contract to purchase on November 1, 2009.  Do I have to go to closing before December 1?  How does the extension date affect me?
  A.  You do not have to close before December 1.  Once the legislation has been signed, it will be as if the Nov 30 date had never existed.  Therefore, so long as the contract settles before April 30 (or July 1, worst case), the purchaser will be eligible for the credit.

Additionally, a hat/tip to the awesome guys over at VAR who created this flyer to help your clients understand what the extension means to them!

On October 29, 2009 FAAR hosted VAR’s Special Counsel Lem Marshall on the topic of Short Sales. The program targeted Brokers and office instructors, but we feel that the information is worthy of distribution. The program is 2 hours and 45 minutes, so please be patient while the video loads, once you’ve clicked play. The handout has been provided below.

Special thanks to the VAR Broker Manger’s Counsel for sponsoring this program!

The following widget is from the Commonwealth’s webpage.  It counts down the time till election results will be posted.

Being New Means Lots of Firsts

As a new agent, probably nothing with have as much affect on your attitude and your feelings about real estate as your first closing. There is nothing like that first commission check in your hand. After all, isn’t that the reason we all become real estate agents, to make money? Whether it happens in 2 months, six months, or longer, it is the moment when you realize that all the hard work has paid off. But getting there can be an adventure and can take a lot of hard work.

Turning a lead into a client is the first step to the closing table. When I had sold my first home and had a ratified contract in hand, I thought the hard part was over. Little did I realize it was just the beginning. There was a lot left to do and I was left with one question. How do I get to the closing table?

Where to Begin

A great place to start is to have a checklist of what needs to be completed after ratification. The checklist should include things such as the home inspection, termite inspection, getting copies of the contract to your client and to the title company. Whatever broker you work for or if you are working with a mentor, they should be able to help you create that checklist. After you tell your clients that their offer has been accepted, go over the steps to closing and what they can expect. Make sure, per the contract, to tell your clients to call their insurance company and apply for insurance.

Along with following your checklist, one of the most important things you can do to make the closing process go smoother is to stay in communication with your client, the lender, and title company. In today’s market, closings do get delayed. If the closing date is nearing, be in contact with lender and be ready to write an addendum to extend the closing date. If the closing date comes and your client’s lender is not ready and you do not extend the date, your client will be in default.

Closing Tips

Advise your client that they will need to bring certified funds to the closing table. Virginia is a wet settlement state, which means the funds need to be in a liquid state and available the day of closing. Also advise your client to bring a photo id and their personal checkbook in case there are some last minute changes to the HUD and a personal check could be written for a small difference.

One more thing, don’t forget your final walkthrough! Make a copy of the walkthrough form for the settlement company. If you are doing the final walkthrough the day of closing ask the listing agent if he or she would like you to bring the keys to closing. Do not give the keys to your client until after the closing is complete.

It is truly exciting, sitting at the table with your clients, knowing that you did it! Whatever your goals are, getting to the first closing table is a part of them. It leaves you with that feeling of accomplishment and ready for the work to go get the next one. So if you are a new agent still waiting on that first check, hang in there, persevere, and keep working, your closing is just around the corner.

Election Day is upon us once more. Please take a few minutes to go to your local polling location and cast your ballot. Elections are sometimes won or lost by a small number of votes. Make your voice heard.

Below are the candidates from Spotsylvania and Stafford that FAAR has endorsed. While we encourage you to please consider casting your vote for these candidates, we do it with the caveat that we have given every candidate a chance to interview with our Legislative Committee and their endorsements are strictly on the answers we received regarding their stances on Property Rights, Transportation, Land Use and Homeowner Protections. These are all issues that affect our profession. We do not make decisions based on any other criteria. We DO NOT make endorsements based on party affiliation.

Stafford County:

Mark Dudenhefer Garrisonville District

Paul Milde Aquia District

Susan Stimpson Falmouth District

Gary Snellings Hartwood District

Spotsylvania County:

Benjamin Pitts Battlefield District

Gary Skinner Lee Hill District

An additional note for the Spotsylvania Incumbents:

FAAR has played an active role in getting the vote for VRE in Spotsy. If either of these two incumbents loses on Tuesday, the vote already taken to join the VRE will be rescinded. PLEASE consider casting your ballot for Mr. Pitts and Mr. Skinner if you live in their Districts. If you don’t live there, please encourage your clients, co-workers, family and friends to cast their votes for VRE.

A Decision Before Them

There are many compelling reasons for Spotsylvania County to extend VRE service to the residents of their County. VOTERS in the Lee Hill and Battlefield Districts will be deciding for the entire County whether Spotsylvania will move forward on implementing positive steps to further the County’s transportation infrastructure.

While the vocal minority continues to dispel errant information about why VRE is bad for the county, here are the many reasons why VRE is GOOD.

The County will have $2 to $3 MILLION dollars annually for transportation needs COUNTYWIDE. This money could be used for many uses…payment on the bond issued in 2005, with payments currently approximately $1.5 million annually and FRED costing the county over $500,000 annually. Without the VRE money, the county will have to look elsewhere for those funds, with the most likely place being an increase in the real estate tax.

Income earned from the VRE could go towards paving dirt and gravel roads in south and western Spotsylvania…where homeowners have been waiting for many years for a paved road.

The 2% motor fuels tax that will be enacted is paid by county and NON county residents equally. Those NON county residents using the roads in the county will finally be contributing to the transportation needs of the county. In addition, prices throughout the localities that currently participate in the VRE with the gas tax have a non discernible difference in gas prices from station to station with those in Spotsylvania currently without the tax.

Become Competitive!

Increased Economic Development is an issue every county struggles with. Building a VRE station in Spotsylvania, with access to Quantico, Washington, DC and all points in between will attract Government entities, Contractors, Corporations, college campuses. It will make Spotsylvania more competitive for those elusive higher local salaries all counties seek. With the proximity to the new hospital, a VRE stop will also be attractive to health care and medical related companies.

Decreased traffic congestion on the roads. Having a VRE stop closer to home may encourage more drivers off the road who previously wouldn’t drive to the City or to Stafford County and struggle to find a parking space. It will also help keep residents important discretionary spending in the county as they will more likely shop closer to home.

Start up and build out costs to the county will be minimal. CSX train infrastructure already exists, station development costs will be shared with interested companies/corporations wishing to locate near the facility. VRE is ready to start construction on the 3^rd Rail to expedite completion. Current negotiations call for a campus of mixed use development; office, retail & residential, which will create a more efficient pattern of land use.

Spotsylvania County is the mid point between Richmond and Washington, DC. A VRE stop may also become an Amtrak stop, allowing increased use for riders for daily and weekend use. Again, helping to keep more cars off congested roads.

We Need Your Support

Supporting the VRE is a vote to support increased multi modal transportation sources in the county. It is a vote to give the county millions of dollars annually for transportation uses COUNTYWIDE. Most important, it is a vote that will save homeowners and taxpayers money.

In the 20 years the county has chosen NOT to participate, they have left approximately

20 to 30 million dollars on the table towards transportation costs that now exceed $300 million in Spotsylvania County alone.

NOW is the time for Spotsylvania to join the VRE system. Let’s not go another year and lose another dollar towards our ever growing transportation needs. The current Supervisors voted to join VRE. We need to ensure that vote is not overturned. Return Gary Skinner and Benjamin Pitts to office and let’s get Spotsylvania County moving in the right direction.

The following career opportunities are available at FAAR

Education Director

Manage a real estate school- hiring instructors, creating marketing plan, scheduling, etc. Work with member volunteers in development of the education programs. Apply expertise to meet the education needs of the membership.

Must have excellent writing skills, technology aptitude, and flourish in a team effort environment.

Adult and Online Education experience desired.

-and-

Governmental Affairs Director

Create political/policy strategies, manage GA committee/membership communications, develop political contacts, lobbying, mobilize grassroots efforts.

Must have excellent writing skills, technology aptitude, and flourish in a team effort environment.

Resume and Letter-of-Intent can be delivered to

Pat Breme, Chief Executive Officer

pbreme@faarmembers.com

P.O. Office Box 3625

Fredericksburg, VA 22402-3625

fax: 540-736-0301

MRIS has put out a one page reference guide, denoting some of the most commonly cited complaints.  Pay special attention to the Short Sale section. Please spread around to your offices.