2009_1-2_Commonwealth

CASTING YOUR VOTESRPAC and the balance of personal and professional you

ALSO INSIDE:Thinking about selling (page 6)

Would you like a new car with that? (page 10)

Economists vs. monkeys (page 18)

REALTOR® OF THE YEAR (p. 4) • WIN AN HD CAMCORDER (p. 27)

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

January/February 2009

1 JANUARY/FEBRUARY 2009

IT’S A COMMON misconception that masochists enjoy pain. Psychologists say they don’t. What they enjoy is the rush they get from the release of the pain. (Kind of like the feeling you get when the jackhammer outside your o� ce fi nally stops.)

The point is, you need to remem-ber that it’s going to get better. The pain ends, and when it does — ahhh.

Let’s be blunt here: The economy sucks*. It does. Anyone who tells you otherwise is a fool, a liar, or selling something — or some combi-nation of those. The people who talk about how the real estate market is turning around aren’t the ones in the trenches.

So yeah, coming to work is prob-ably about as hard as it’s ever been.

Get over it.You have a job to do. Yes, it’s

hard. Yes, it’s frustrating. Yes, you’re worried.

Like I said, get over it. Focus on that “Ahhh” feeling that’s probably not too far down the road.

It’s going to get better. Bit by bit, sale by sale, dollar by dollar, things turn around. They always have, always will — but you need to make that happen. Every little bit adds up. Every home that’s sold helps convince people that the market is recovering. Snowfl ake by snowfl ake, the avalanche builds.

Never stop fi ghting till the fi ght is done.

You fi ght and you push and you work and you work harder. You try new things and they fail … so you try something else. You settle for a little less. You give a little more. You learn that what you thought was giv-ing 100 percent wasn’t even close.

You could, of course, spend your

energy bemoaning your fate, cursing the economy, and plotting to throw eggs at the idiots on Wall Street and the government who thought it would be fun to give us a demonstra-tion of deregulation at its fi nest.

But that won’t sell a single %@&$# house.

Work will. Hard work, discourag-ing work, seemingly fruitless work. You’re going to hear “No” a lot. It’s going to hurt and frustrate and make you want to quit. And you’ll hear it over and over and over until you feel beaten down.

Get up. You think you’re not going to

sell? You are. Really. If you work at it, anyway.

You’re professionals, and you’re good at what you do — that’s why you’re still in this business when a lot of people have left. So you don’t give up. You don’t whine, you don’t beat yourself up over how awful things are.

Instead you push and push harder, and you work and work harder, and you’re going get through this. Because the economy turns around — always. Money fl ows, homes sell, and you can say “Ahhh.” �

Andrew Kantor, Editor

[email protected]

* Don’t send me nasty letters. The phrase comes from “sucks wind,” a term coined by hot-rodders in the 1950s, referring to a car that wasn’t fast enough to keep up. So there.

Think like a masochistPUBLISHED BY THE VIRGINIA ASSOCIATION OF REALTORS®

The Business Advocate for Virginia Real Estate Professionals

John Powell, ABR, CRB, CRS, GRIPresident

Cindy Stackhouse, GRI President-Elect

John Dickinson, CCIM, GRIVice President

Pat Jensen, ABR, CRB, CRS, GRI Immediate Past President

John DalyTreasurer

R. Scott Brunner, CAEChief Executive Offi [email protected]

Lisa G. Noon, ABC, CAEVice President, Member [email protected]

Ben Martin, CAEVice President, Marketing & [email protected]

Andrew Kantor Editor & Information [email protected]

For advertising information, Brittany Sullivan at (410) 584-1968 or email [email protected]

The mission of The Virginia Association of REALTORS® is to enhance its membership’s ability to achieve business success. Commonwealth magazine (ISSN#10681388) 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 offi ce and additional mailing offi ces. USPS Per. # 9604.

Postmaster: Send address changes to: Commonwealth magazine, 10231 Telegraph Rd., Glen Allen, VA 23059-4578.

Custom Publishing Services provided byNetwork Media Partners, Inc. Executive Plaza 1, Suite 900, 11350 McCormick RoadHunt Valley, MD 21031

Get it? Got it? Good!In addition to the print version of Commonwealth, VAR publishes electronic newsletters at regular intervals. Among them:

If you’re not receiving newsletters via e-mail from time to time, it may be that we don’t have your correct email address. Contact your local association of REALTORS® to enter your address in the database. Also, check the spam fi lter on your computer and authorize any email from VARealtor.com.

The online version of our print mag, published every month.

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.

fi rstwordANDREW KANTOR

JANUARY/FEBRUARY 2009 WWW.VAREALTOR.COM2

14

4

8

18

12

24

1

20

26

27

28

Balancing actWhen you step into the voting booth, who are you — a Realtor®

or just a regular person? Because sometimes what’s good for one isn’t what the other wants. Which way do you vote?

The latest news and tidbits from around Virginia.

Lem Marshall answers reader’s questions about the law.

When it comes to predictions, do economists do better than a barrel of monkeys?

Common sense about standard forms. This issue: Form 600: Residential Contract of Purchase

What’s the buzz in the Realtor® blogosphere?

JANUARY/FEBRUARY 2009VOLUME 16 � ISSUE 1 contents

quickhits

legallines

formfactor

realtycheck

blogspotting

in every issue

departments

featurefi rstword

rpacreport

contactvar

varbuzzcontest

lastword


When it came time to choose our REALTOR® of the Year, Carol Clarke, president of Montague Miller & Com-pany in Charlottesville, was the perfect choice.She has a long list of not only professional accomplishments, but a dedication to the community that exem-plifi es the best a Realtor® can be.

Carole was the Charlottesville Area Association of Realtors®’ 1992 Realtor®

of the Year; she also served as president

there; she’s been a member of VAR’s Policy Board and leadership team for most of a decade, and was VAR president in 2003.

She was appointed to the Virginia Real Estate Board by both governors Mark Warner and Tim Kaine, and was even elected chairman of the board.

But wait; there’s more.She has been involved in the

community in almost too many ways to list: president of the Junior League, member and chair of the United Way board, and on the boards of the cham-ber of commerce, Crime Stoppers, and the local legislative action committee. (And those were only the things we’ve been told about.)

To get a peek at Carol the person, we spoke to some of her colleagues at Montague Miller and Company to get a better peek. Here’s what we learned. (No names, please!)

She’s “very forward-thinking and very — what’s the word? — innovative. She likes to do new things and be on the cutting edge of things.”

Her holiday cheesebread is to die for. (No worries, though. She also has

a bachelor of science in nursing.)She knits. And knits some more.

(She even knits in the dark, in movie theaters.) “She has three grandchildren, so she’s always working on hats, things like that — making things for friends. Sometimes she brings it to meetings, because she’s always been someone who can multi-task.”

And how about this: She was runner-up in her high school’s “Miss Flame” beauty contest.

A common theme: Energy. “She’s a very dynamic, energetic personality … a lot of people are good at brain-storming, but she’s good at getting things done.”

She has a strict no-pets policy at her house — but she allows her husband to feed a stray cat.

Don’t let all this scare you. “Sometimes because she is so accomplished she can come across as having…some what of a hard shell, but she has a soft center.”

We’re guessing you use a mobile phone. Just make sure you get the VAR-member discount before you sign up or renew with AT&T, Sprint-Nextel, T-Mobile, or Verizon Wireless. (Or you can pay full price. We’re just trying to help.) Visit www.VARealtor.com/wireless.

Oh, and if you’re a T-Mobile customer, you can get even bigger VAR savings, thanks to the negotiating prowess of marketing and sales manager Amanda Rainsford: 10 percent o� your monthly rate, plus free activation and phone discounts. For that, go to www.VARealtor.com/TMobile. Your member code is 9966TMOFAV.

News, facts, and items of interest from around and about the real estate world

Cou

rtes

y RI

M’s

pre

ss im

ages

col

lect

ion

Meet Carol Clarke, Virginia’s 2008 REALTOR® of the Year

Be a friend of Carol’s:

You can fi nd her LinkedIn

profi le — and sign up to

connect with her — at

www.VARealtor.com/

carolclarke

Service Reminder

quickhits ANDREW KANTOR

VOLUME 16 � ISSUE 1 JANUARY/FEBRUARY 2009 5

“

That’s why VAR worked for and received the RCA Commercial Services Accreditation. (RCA = Realtors®

Commercial Alliance.) Among other things, it gives us an objective way to measure the services we’re providing to commercial Realtors®, and helps us plan ways to add new and better programs for you. You’re welcome.Want more? Get info on CSA at www.VARealtor.com/09016

Virginia’s first four green Realtors®

Four Virginians are among the fi rst REALTORS® in the country to receive an o� cial Green Designation from NAR’s Green Resource Council.

• Linda Dort, Century 21 AdVenture, Fredericksburg• Cindy Matheson, Prudential Realty Services, Lynchburg• Andrew Norton, Re/Max Distinctive, Arlington • Matthew Rathbun, director of education at the

Fredericksburg Area Association of REALTORS®

While there are several other green designations for Realtors® and their kin (we’re looking at you, EcoBrokers), this is the fi rst one out of NAR. It debuted last November.

— Joseph Funkhouser, owner of Coldwell Banker Funkhouser Realtors® in Harrisonburg and winner of the Harrisonburg Chamber of Commerce’s 2008 Business Person of the Year award.

I think these

days, if anybody

in business is still

around after going

through 2008,

they all should

receive an award.”

Commercial Realtors®, we’re thinking of you


Sales point:Every moment of every sales day matters. These are your “money hours.” Hesitation for a “better sales day” of the week or a time when you’re feeling more “up to the task” will have a long-term e� ect on your ultimate sales results (and discipline).

It’s this serious: Every sales day is a sales day regardless of circumstances. Once gone, it’s gone forever.

Over the next few weeks, begin your quest for complete sales time discipline regardless of environment.

Regardless of circumstances. Put the “Do Not Disturb” button on your money hours and on your

sales discipline.Time management is simple: Do what

it is you know must be done.

Defer no time, delays have dangerous ends.

—William Shakespeare

(Courtesy our friends at Richmond-based JustSell.com)

Builders could benefitPresident Obama’s proposed tax cuts could be very fruitful for our friends over in the home-building front industry.

Why’s that? The cuts — which may be enacted by the time you

read this — are perfect for companies that had several years of high sales and profi ts, then tanked with

the rest of the market in 2008. Like home builders.

Normally, you can only use a tax loss to o� set two years of previous profi ts. Obama’s plan would allow companies to o� set fi ve years worth of profi ts.

“The Obama proposals likely would mean that companies with enormous losses from last year and this year could use the losses to help wipe out tax obligations from

the previous fi ve years and receive sizable tax-refund checks from the Treasury Department,” wrote the Wall Street Journal.

Here’s hoping they invest that money wisely.

Americans may not be buying houses, but foreigners are. NAR’s most recent foreign direct investment (FDI) report says that foreign investment in U.S. real estate hit $41.7 billion in 2007, more than $8 billion more than the year before.

People from Latin America, Australia, Germany, and Japan were the biggest investors, but the whole world is getting a piece of the action. Will it turn the economy around? No. But it helps keep it from getting worse. �Read the full report at www.VARealtor.com/09015

Perspective: Use it or lose it Today is 20 percent of your sales week.

Two sales days are 10 percent of your month.

To have only two “slow days” each month is equivalent to having more than one full month of “slow days” each year.

New FDI Report from NAR Available

quickhits

New FDI Report from NAR Available

“

JANUARY/FEBRUARY 2009 www.VAREAltoR.com8

Three (or four, or more)’s a crowdTest yourself on these stumpers, and see if your guesses are as good as mine.Reasonable people

Q. listing agent is having a hard time selling a listing, and, at the request of the seller, makes an offer of com-

pensation including a bonus to the selling firm — a bonus that conditioned on obtaining a “reasonable” offer. the bonus offer in the mlS says that “all reasonable offers will be considered.”

Buyer agent presents an offer that is considered low by seller, who counters by adding a provision deleting the bonus to the selling firm. this is not initialed by the buyer. Although the seller has promised to pay the bonus, the listing firm does not alter the listing agreement to provide that seller will pay the bonus. the selling firm is now claiming entitlement to the bonus. what are the listing firm’s obligations and rights here?

A. This question reveals several important misconcep-tions. First, many of us have the notion that the purchase agreement is an appropriate place to establish, negotiate, or amend the listing firm’s offer of compensation. This is not the case. The obligation of the listing firm to pay a commission is established, typically, by the selling firm’s acceptance of the listing firm’s offer of compensation in the MLS to the party procuring the buyer. That contract is independent of the purchase agreement and ordinar-ily is unaffected by what the buyer and seller agree to in

the purchase agreement. Even if buyer had initialed the change deleting the bonus, it would not be binding on the selling firm, whose right to the bonus derives elsewhere.

In this case, however, the buyer did not initial the change, and for that reason I doubt whether there’s even a contract. If I were the seller, I’d withdraw the counter-offer immediately, because if buyer were to accept it, the listing firm – and, in all likelihood, the seller – would owe the bonus.

Second, reasonableness is an objective standard, but the best proof of whether an offer is reasonable is whether it is acceptable to the offeree. It is incongruous for seller to agree to an offer but then to say that the offer is unreasonable for purposes of paying the bonus.

Finally, the listing firm should always remember that the obligation to pay a fee to a cooperating firm is a function of a contractual obligation independent of the purchase and sale of the property. The parties to that agreement – buyer and seller – can’t alter the deal between the brokerage firms without the firms’ consent. Brokers who disregard this truth might find themselves between a rock and the deep blue sea. Okay, I mixed my metaphors. I promise not to do it again.

Contractual obligations

Q. A limited service listing agent makes an offer of compensation to cooperating brokers in the mlS.

the listing agreement provides that the listing firm will make this offer, and obligates seller to pay it to the listing firm if it is earned by a selling firm. Buyer agent procures a buyer who makes a low offer, and the seller counters accepting the offered price, but adding a provision that lowers the compensation to the selling firm. Buyer accepts the counteroffer. the selling firm now demands the compensation promised in the mlS. Is it entitled to the offer in the mlS?

A. Once again, we need to remember that the contract obligating the listing firm to pay the selling firm a com-mission is made by acceptance, by the selling firm, of the offer made in the MLS. The purchase contract is ordinar-ily irrelevant to that obligation. Think of it this way. Say Peter agrees to pay Paul if Paul renders certain services to Peter. Paul renders the services. Mo and Larry then enter into an agreement providing that Peter doesn’t have to pay Paul all he owes him. Is that agreement binding on Paul?

Ordinarily, the answer would be: Of course not.

the obligation of the listing firm to pay

a commission is established, typically,

by the selling firm’s acceptance of the

listing firm’s offer of compensation in the

mlS to the party procuring the buyer. ”

legallines lEm mARShAll, VAR SpEcIAl coUNSEl


Is it risky? Quick! To the Hotline…The VAR Legal Hotline is a free, members-only risk management tool that is among the top-rated services offered by the Virginia Association of REALTORS®. Through the Legal Hotline, you can receive timely legal information on the issues you confront day-in and day-out in your real estate practice. The VAR Legal Hotline has one major objective: to increase Realtor® professionalism and decrease professional liability.

Guidelines for legal hotline calls:All principal or supervising brokers are eligible to use the Hotline. In addition, one other designated person from each office (for example, an associate broker or office manager) may register as designees of the principal broker. Before you call:Please note that many of the routine questions the Hotline receives have previously been answered in Commonwealth articles; check the indexed Hotline archives at VARealtor.com before calling.

how to sign up:Registration is easy. Complete the form found under the Member Services tab at VARealtor.com. You must register before you call the Hotline.

hours of operation:Monday through Friday (except holidays) from 10 a.m. to 4 p.m.

how to contact the hotline:By phone: (800) 755-8271 or (804) 264-5033. By e-mail: [email protected]

call handling process:When you call, please have your NRDS number ready, and include it with any e-mailed questions. Questions?If you have questions about the Hotline, contact VAR at (800) 755-8271 or (804) 264-5033, or by e-mail at [email protected]

The VAR Legal Hotline should not replace your own legal counsel. No questions will be answered on matters that are unrelated to real estate, real estate brokerage, or pending arbitrations.

VAR Legal Hotline: (800) 755-8271

Paul must agree and must receive some consideration for any promise to forfeit what he is owed. However, in our situation there is an allegation that Paul (the listing firm) agreed, with the seller, to accept less compensation if Mo (the buyer) would accept the offer of Paul’s client.

Is that enough to change Peter’s obligation to Paul? It might be, if it can be proved that (i) Paul agreed to the change in compensation, (ii) Paul received some-thing in return for his promise to receive less than Peter had promised (a successful deal), and (iii) Peter was an intended beneficiary of Paul’s promise to accept less than the original offer (likely the case). We should also throw in the potential complication that if Paul purports to act on behalf of a firm, he has to have the authority to agree, on behalf of the firm, to reduce what the firm is owed.

Limited service listing agents would be well advised to stay in touch with their clients, to require them to inform them of their dealings with cooperating brokers, to provide them copies of contracts formed, and to let them know of the time and place of settlement. Listing agents who don’t stay involved to this extent run the risk of having their sellers put them in difficult situa-tions with the risk, as here, that they will be obligated to pay cooperating firms more than they collect from their sellers. They might end up chasing their sellers to parts unknown when the cooperating firm comes knocking on their door looking for what they were promised in the MLS. And let’s all remember that we shouldn’t rob Peter to pay Mo.

Steer clear

Q. A seller owns an auto dealership, and wants to offer a new car to the purchaser of his house. may seller do

this? Are there any potential problems with this offer?A. It being a semi-free country, the seller can make this

offer if he wishes. However, it could well affect buyer’s financing, and thus must be disclosed to the lender. The mortgage lender will almost certainly back out the value of the car from the price, and lend based on the total pur-chase price net of the car. Mortgage lenders don’t usually want to make auto loans. Don’t even think about being involved in this deal if the buyer and seller want to hide the car from the lender, as that might well constitute loan fraud. Remember, if you lie down with dogs, you might end up in the dog house.

Running game

Q. listing agent has a listing on a large tract of land, and obtains a ratified contract for a portion of the property.

legallines

VolUmE 16 ● ISSUE 1 JANUARY/FEBRUARY 2009

11

the listing lapses before closing, and the entire property is later put under contract to a second buyer who closes with seller and then closes with the first buyer on the original contract, which had been assigned to the buyer of the entire tract. listing firm doesn’t get paid, and the seller skedaddles to New England. must the listing firm pursue the seller there?

A. There might be a good alternative. The seller prob-ably secured from the buyer an assignment and assump-tion of seller’s obligations under the listing agreement and the appropriate indemnities. If so, the listing firm might be able to go indirectly against the buyer for the fee. I would call the seller and, if this is the case, secure his assistance — he’ll have every incentive to cooperate. It might be necessary to file a friendly suit against the seller in Virginia to permit seller to bring in the buyer as a third-party defendant under the assumption and indemnity, in which case judgment can be obtained against both local buyer and foreign seller. If the buyer does not pay up, you can domesticate the judgment in the seller’s new home state and collect there. Seller will then have recourse back against the buyer.

If there was no assignment and assumption, the listing firm will have to sue seller here under Virginia’s long-arm statute, obtain a judgment, domesticate it in New Eng-land, and proceed to collect. This is messy, and the legal fees on both ends mean they’ll likely collect only about half (if that), but it’s more likely the buyer can be tapped, as I can’t imagine the seller didn’t secure buyer’s agree-ment to pay the fee out of the proceeds of the sale to the first buyer.

Or the listing firm might just pick up the phone and call the seller, who might then just remit the fee. If you get paid this easily, you can just thank your lucky charms.

An offer you can’t refuse

Q. An agent has borrowed money from commission Express which now demands that commissions on a

closed deal be paid to cE instead of to the agent. must the firm comply with that demand?

A. When an agent enters into this kind of loan, the agent enters into what’s called a security agreement by which the commissions, when due, are pledged to CE to repay the loan. This is the analog, in a situation where the collateral is personal property (an account payable or sal-ary), to a mortgage where the collateral is real property. Once you have received notice from CE, if you nonethe-less pay the agent and the agent does not pay CE, you will not have satisfied your obligation to CE and will have to pay again.

I have spoken to the folks at CE and have suggested they make life easy for brokers by providing a signed copy of the security agreement/pledge and any financing statement filed to perfect their lien on the commission payment. CE has said they will do this, but if the com-pany does not offer this proof of their right to receive the commission payment, brokers may demand such proof be presented. If it is, the broker may safely pay CE and fully discharge the obligation to the agent. Be sure to examine the pledge and pay only the amount necessary to dis-charge the agent’s obligation. The lesson? A fool and his money will not get a bailout. ●

Legal Lines is written by VAR Special Counsel Lem Marshall. Please note that answers to Legal Hotline questions are informational only. Consult your own legal counsel for legal advice. More Legal Hotline questions and answers are in the Legal Resources Center on VARealtor.com.

VAR FORM 600 REV. 7/08 Page 2 of 9

$________________________________________________, or _______% of the Purchase Price bearing interest at a rate not exceeding _____% per year, amortized as follows __________________________________________________________________________, and requiring not more than a total of _____ loan discount points, excluding the origination fee.

( ) (c) SELLER FINANCING: Seller agrees that $__________________________________ or _____________% of

the Purchase Price shall be evidenced by a note made by Purchaser payable to Seller bearing interest at a rate of _____________________% per year amortized as follows ___________________________________ ___________________________________________________________________________________________. The note shall be secured by a deferred purchase money ( ) first, ( ) second or (specify priority) _____________ deed of trust lien on the Property. The deed of trust and note shall provide, among other things, that: (i) the note shall be due and payable in full if the Property, or any interest therein, is transferred, sold or conveyed; (ii) Purchaser shall have the right to prepay the note at any time in whole or in part ( ) with a premium penalty of _______% of the amount prepaid, or ( ) without premium or penalty; (iii) a lot release schedule shall be provided, if applicable, (iv) a late payment charge not exceeding five percent of the payment may be assessed by Seller for any payment more that seven (7) calendar days late; (v) the note and deed of trust shall otherwise be in form satisfactory to Seller, (vi) other terms: _______________________________________________________ ________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________. Such financing shall be contingent upon review and approval of Seller of a current credit report on each Purchaser and a current personal financial state of each Purchaser, which documents must be provided to Seller within ____ business days following execution of this Contract by both parties. The deed of trust shall be recorded at Purchaser’s expense at settlement. Purchaser may not assign this Contract in whole or in part, without the prior written consent of Seller, which Seller shall be under no obligation whatsoever to give.

( ) (d) BALANCE OF PURCHASE PRICE: Purchaser will provide the balance of the purchase price from

Purchaser’s funds in cash or by cashier’s or certified check or wired funds at settlement.

(e) OTHER FINANCING TERMS:______________________________________________________________ ____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

4. DEPOSIT: Purchaser has made a Deposit with _________________________________________ (the “Escrow Agent”) of

______________________________________________________________________________________________ Dollars ($ _________________________________________)(the “Deposit”) in cash ( ), by check ( ), bank letter of credit ( ), or by a note ( ) due and payable on _______________________________ , 20______ receipt of which is hereby acknowledged. Upon ratification of this Contract by all parties, the Deposit shall be held in escrow by the Escrow Agent. If the transaction does not settle, the Deposit shall be held or disbursed in accordance with the regulations of the Real Estate Board/Commission, or other governing law.

5. FINANCING:

(a) This Contract and Purchaser’s obligation hereunder are contingent upon Purchaser obtaining and delivering to Seller a written commitment or commitments, as the case may be (the “Commitment”) for the third-party financing or loan assumption required in paragraph 3. Purchaser agrees to make written application for such financing or assumption (including the payment of any required application, credit, or appraisal fees) within five (5) business days of the date of acceptance of this Contract and to diligently pursue obtaining the Commitment. Purchaser hereby grants permission for Purchaser’s lender and Selling Company to furnish Seller and Listing Company information about the status of Purchaser’s loan approval process, including specific items required by Purchaser’s lender or actions Purchaser must perform to obtain loan approval. Purchaser agrees, upon written request by Seller, to provide written consent satisfactory to Purchaser’s lender to permit Purchaser’s lender to provide such information to Seller and Listing Company. (b) If Purchaser does not obtain the Commitment and so notifies Seller or Listing Company in writing before 5:00 p.m. local time on ______________________________, 20_____ (if no date is filled in, the date shall be the same date set forth in paragraph 8), then this Contract shall terminate upon giving such notice and the Deposit shall be refunded to Purchaser. If Purchaser does not obtain the Commitment and notice thereof is not received by the deadline, or such later

VAR FORM 600 REV. 7/08 Page 4 of 9

(b) If Purchaser is obtaining VA financing and elects to complete the purchase at a purchase price in excess of the appraised value as established by the Department of Veterans Affairs (the “Department”), Purchaser will disclose the source of such funds to the Department and pay the excess amount from such source. Such funds will not be borrowed funds unless approved by the Department. (c) If Purchaser is obtaining FHA financing, the parties acknowledge that the loan amount may be approximate because financed acquisition costs cannot be determined until settlement.

7. LOAN FEES: Except as otherwise agreed upon in this Contract, Purchaser shall pay all points, loan origination fees, charges

and other costs imposed by a lender or otherwise incurred in connection with obtaining the loan or loans. The amount of any contributions Seller agrees to make under this Contract toward Purchaser’s loan fees shall include miscellaneous and tax service fees charged by a lender for financing described in this Contract and which by regulation or law Purchaser is not permitted to pay.

8. SETTLEMENT; POSSESSION: Settlement shall be made at _________________________________________________

on or about _______________________, 20 _____. Possession of the Property shall be given at settlement, unless otherwise agreed in writing by the parties. At settlement, Seller will deliver the deed described in paragraph 13, an affidavit acceptable to Purchaser and Purchaser’s title insurance company as to parties in possession and mechanic’s liens, applicable non-foreign status and state residency certificates and applicable IRS 1099 certificates.

9. EXPENSES; PRORATIONS; ROLLBACK TAXES: (a) Each party shall bear its own expenses in connection with this

Contract, except as specifically provided otherwise herein. Seller agrees to pay the expense of preparing the deed and the recordation tax applicable to grantors; all expenses incurred by Purchaser in connection with the purchase, including without limitation title examination, insurance premiums, survey costs, recording costs and the fees of Purchaser’s attorney, shall be borne by Purchaser. All taxes, assessments, interest, rent escrow deposits, and other ownership fees, if any, shall be prorated as of the date of settlement. In addition to the Purchase Price, Purchaser agrees to pay Seller for all fuel, oil and/or propane remaining in the tank(s) (if applicable) at the prevailing market price as of the date of settlement. (b) Rollback taxes shall be paid as follows: _________________________________________________________________.

10. BROKERAGE FEE; SETTLEMENT STATEMENTS: Seller and Purchaser authorize and direct the settlement agent to disburse to Listing Company and/or Selling Company from the settlement proceeds their respective portions of the brokerage fee payable as a result of this sale and closing under the Contract. Each of Listing Company and/or Selling Company shall deliver to the settlement agent, prior to settlement, a signed written statement setting forth the fee to which such company is entitled and stating how such fee and any additional sales incentives are to be disbursed. Seller and Purchaser authorize and direct the settlement agent to provide to each of Seller, Purchaser, Listing Company and Selling Company a copy of the unified settlement statement for the transaction.

11. RISK OF LOSS: All risk of loss or damage to the Property by fire, windstorm, casualty, or other cause is assumed by Seller

until settlement. In the event of substantial loss or damage to the Property before settlement, Purchaser shall have the option of either (i) terminating this Contract and recovering the Deposit, or (ii) affirming this Contract, in which event Seller shall assign to Purchaser all of Seller’s rights under any policy or policies of insurance applicable to the Property.

12. WOOD INFESTATION INSPECTION AND REPORT: Prior to settlement, Seller shall provide Purchaser a report, dated

not more than 30 days prior to date of settlement, from a wood infestation control company certified and licensed by the Commonwealth of Virginia and properly insured, concerning the presence of or damage from termites or other wood-destroying insects or organisms in the primary dwelling, in any other dwelling(s) on the Property as to which a certificate of occupancy has been issued and is in effect, and in the following additional structures ___________________________________________________________________________________(the “Applicable Structures”). If the inspection reveals active infestation in any of the Applicable Structures, Seller shall have such infestation treated by a company licensed by the Commonwealth of Virginia and properly insured. If the inspection reveals damage to any Applicable Structure, Seller shall have the damage repaired by a contractor licensed in the Commonwealth of Virginia; provided, however, that if the estimated aggregate cost of such treatment or repairs or both exceeds $1,000, and Purchaser and Seller cannot agree on how the amount exceeding $1,000, will be paid, Purchaser shall have the right either (i) to accept repairs or treatment not exceeding $1,000, in which event Seller shall have such repairs or treatment performed at Seller’s expense, (ii) to receive a credit at settlement in the amount of $1,000, or (iii) to terminate this Contract and receive a refund of the Deposit. Although the report required in this paragraph 12 deals with wood-destroying organisms, nothing in this paragraph 12 shall be interpreted to require Seller to provide general testing for mold or other fungus beyond that routinely performed by companies licensed to perform control and protection of structures from wood infestation by termites or other wood-destroying insects.

5. FINANCING: 8. SETTLEMENT; POSSESSION:


Form 600, Section 8: Settlement; PossessionSettlement of a contract occurs when both parties have done all the contract requires — when the buyer is in a position to cut a check and the seller to give possession.

VAR’s settlement provision is not “time is of the essence.” Instead, settlement is “on or about” a given date, which means that settlement may be extended for a reasonable time as long as the party seeking the extension is diligently pursuing his obligations under the contract. (For example, a person without a fi nancing contingency can’t delay settle-ment to seek fi nancing.

Courts have typically allowed between 30 and 60 days as a reasonable extension, but it depends on the circumstances. Courts might allow more (for example, if seller’s obligations were contingent on rezoning), or less (if the issue were simple preparation of documents). There is no hard and fast rule, only a reasonableness test. �

FORMS — THEY’RE THE bread and butter of a deal. They’re full of fi ne print and legalese, and not everyone “gets” the details, and that often ends up as a call to our Legal Resources Center. (Shameless plug: (800) 755-8271.)So we asked our intrepid associate counsel (read: lawyer), Blake Hegeman, to take one of the forms the LRC gets the most questions about and illuminate it for us.

Remember, you can download this and all VAR’s standard forms free at www.VARealtor.com/standardforms, where you can also access our ZipForm electronic-form service.

Form 600, Section 5: FinancingVAR’s purchase agreement contains a basic fi nancing contingency: It states that the buyer must apply for a loan within a certain time, and that he must diligently pursue it — the details are fairly specifi c.

If the buyer doesn’t receive that commitment from a lender by the agreed date, he can exercise that contingency (i.e., terminate the contract). If the buyer doesn’t do so, the contingency continues. Once that agreed date passes, however, the seller can choose to give notice of intent to terminate. The buyer then has three days after receiving that notice to either produce a satisfactory commitment or show other evidence of the ability to close the contract — otherwise the contract terminates.

At the request of the seller, the buyer must authorize his lender to discuss the status of the loan with the seller. Further, the buyer represents that neither his ability to close, nor his fi nancing, is dependent upon the sale of another property (unless the contract itself is contingent on such).

This issue: Form 600: Residential Contract of Purchase

formfactor BLAKE HEGEMAN

PERSONAL

PERS

ONAL

PERS

ONAL

PROFESSIONAL

BUSINES

S

PERS

ONAL

PERS

ONAL

BUSINES

S

BALANCINGACT

BALANCINGACT

PROFESSIONAL


Sometimes politics is personal, sometimes it’s just business. How do Realtors® choose?

What happens at the ballot box when your business sense confl icts with your personal views?

It’s a conundrum for people who invest in RPAC — but it doesn’t have to be.

PERSONAL

PERSONAL

BUSI

NES

S

PROFESSIO

NAL

BUSI

NES

S

PROFESSIONAL

BUSI

NES

S

BUSI

NES

S

PERSONAL

BUSI

NES

S

PERSONAL

Caricofe

Gallagher

Stelmok

Wilkins


IN ANY VENTURE there’s a balance twixt personal and pro-fessional. But Virginia’s real estate business has an extra wrinkle: RPAC, the Realtors® Political Action Committee. RPAC solicits donations from members — it considers them “investments” — which it uses to support candi-dates the RPAC committee feels better support Realtors®.

But what happens when you like the other guy?Everyone with a connection to a business will have to

make decisions that balance the personal and the profes-sional. From the capabilities of the cell phone or computer you buy to the car you drive — and even small things, like whether to get a workhorse laser printer or an ink jet that also does photos — there’s often a decision to be made.

But politics is stronger stu� . It touches everything: taxes and regulation, ethics and foreign policy, economy and values. Many of the issues that sway our votes have nothing to do with business.

Sure — maybe the candidate you like and the candidate that’s good for your business are the same person. But

what if they’re not? And how do you feel about your money going to support the one you don’t like?

Sarah Stelmok, a Realtor® at Century 21 New Millennium in Fredericksburg, says that when she’s in the voting booth, she leans toward the personal.

“This past election it was easier, because my candidate supported real estate and it aligned with RPAC,” Stelmok says, but “when that doesn’t happen, I vote with social views, not with my career.”

Ditto for Matt Wilkins, broker/owner at Compass Real Estate Consult-

ing in Woodbridge. “I think personal issues with the candidate override professional issues,” Wilkins says. Normally, though, that isn’t a problem for him — usually if RPAC supports a candidate, he says, he will too. But when he doesn’t? “Personal issues come before professional issues. We’re Realtors®, but we’re also people — that’s how I feel.”

Still, others look at their businesses as the foundation for the rest of their lives. If the business fails, those per-sonal issues won’t matter as much. As John Gallagher from Re/Max Valley Realtors® in Roanoke put it, “The success of my business drives the suc-cess I have putting food on the table.”

Take Kim Caricofe of Kline & Co. Real Estate in Waynesboro.

“Personally I vote based on a busi-ness decision,” she says. “And yes, there have been situations where I’ve had to make the opposite decision of what I’ve wanted to [but] I always keep the busi-ness aspect of it fi rst and foremost.”

So does Jean Jones at Keller Williams in Manassas: “I would tend to go with folks who are partial to helping the real estate industry and homebuyers,” she says.

Vicky Lawson, broker/owner at Wythe County Real Estate, says these days she goes a little further, look-ing beyond just the real estate business when picking a candidate. “Personally, I base my decision on how that person will handle our areas — our country, not my own personal needs,” Lawson says. “We just need someone to help us with everything — our country is in such a crisis, everything needs attention.”

PERSONAL

PERSONAL

RPAC is clear: It’s not buying votes by any stretch. It’s putting

money behind the candidates who support Realtors®.”

Block

Rothamel

Royce

Innes


Brian Block, a real estate agent and attorney in Northern Virginia, also looks beyond his own business. “I tend to vote for candidates that will favor small busi-ness and entrepreneurial e� ort,” he says. “When you’re in business for yourself those issues meld, so what’s good for

you is good for your business.” Besides, he argues, when it comes to other, more “social” issues, “Politicians talk about them, but I don’t think they can make as much change as they talk about.”

Still, he adds a caveat: “I’m not sure that if there’s a candidate RPAC supports, I’d support him if the candi-date didn’t share the core beliefs that I had.”

And that’s the crux of the issue: Why donate to a PAC that may support candidates you don’t?

The answer: Because while people usually think broadly — considering a candidate’s views across the spectrum — PACs wear blinders to anything but their core focus. They have to.

The narrow focus RPAC uses its money like any PAC’s: to support candidates whom RPAC has determined, through candidate interviews and voting records, support Realtors® and their needs.

Obviously, though, those candidates have views on issues beyond those that are part of RPAC’s purview. And while that isn’t important to RPAC, it certainly is to the members who support it.

Daniel Rothamel with Strong Team Realtors® in Charlottesville weighed in on the subject on VARbuzz, VAR’s blog, just after RPAC announced its 2008 endorsements.

“As much as I hate to say it—this is why I don’t donate to RPAC,” he

wrote. “In fairness, I’m not sure that RPAC gave money to these candidates, but I don’t want my money going to candidates I wouldn’t personally support.”

“I have a di� cult time giving to a group that

sometimes supports my candidates and sometimes doesn’t,” wrote Je� Royce of Frankly Real Estate in Fairfax. “It seems like I should just give to the candidates that I support.” Although, he agreed, “We can buy better access as a group. That has to be the argument for any PAC. But our country is not helped when people buy access. We need to win our point of view with superior logic and arguments that make sense for everyone.”

Buying time, not votes First things fi rst. RPAC is clear: It’s not buying votes by any stretch. It’s putting money behind the candidates who support Realtors®.

As Meredith Cox, VAR’s director of political com-munications, puts it, “These candidates already believe in how they are voting.” To use an extreme example, “An anti-abortion group would not be able to change the mind of a pro-choice candidate by throwing money at him; that group would fi nd the anti-abortion candidate and back him throughout his campaign.”

RPAC does the same with pro-Realtor® candidates: It supports them from the get-go, even in the primaries.

“Like it or not,” Cox says, “it takes money to win a campaign.” RPAC became the political powerhouse it is because it’s able to combine so many members’ contributions.

“Let’s be serious,” Cox says. “Out of the universe of people to whom a legislator will listen, a non-voter is at the bottom of the list. You know who is at the top and who will have the best chance of getting through the door? Those who are contributors who have supported that legislator throughout the years.”

Tom Innes, owner of Re/Max Commonwealth in Richmond (who is also an RPAC trustee and past president of VAR) understands the concerns some people have giving money to candidates who might not agree with their personal

RPAC is clear: It’s not buying votes by any stretch. It’s putting

money behind the candidates who support Realtors®.”BUSIN

ESSBUSIN

ESS

Arko


opinions on some — or even many — issues. But RPAC’s choices can’t take that into account, he says. The PAC has a specifi c goal, and all others fall by the wayside.

“RPAC is non-partisan, and the split is about 50/50 [Democrat and Republican],” he points out. “It onlylooks at real estate issues.”

Does that mean a candidate who receives help from RPAC might disagree with a given member’s position on hair-trigger issues like abortion, healthcare, or the use of the military? Undoubtedly. But will RPAC support a candidate who disagrees with most members’ position on real estate issues? Unlikely.

And that’s can be a hard point to accept by a typical voter — someone for whom those other issues matter greatly.

VAR CEO Scott Brunner says he understands clearly the concerns some people have about RPAC candidates’ other votes. But that’s not the point — nor can it be.

“We admire people who have strong values and who vote their conscience and values. But we’re not an organization that has anything to do with stem-cell research, or energy policy, or homeland security. And if we did base our deci-sions on any of those, you wouldn’t want to be a member.”

So, while Brunner doesn’t expect Realtors® to put aside their personal politics, he does expect them to understand VAR’s mission of protecting its members, and RPAC’s focus on protecting Realtors’® businesses.

“We’re the one organization that represents Realtors®, and if we don’t do that who will? Without RPAC, you’re just a bunch of individuals slogging in the trenches with-out a unifi ed voice.”

Clearing the airPerhaps some of the resistance to RPAC comes from its message not being made clear, especially to new Realtors®.

Tony Arko of Market Advantage Real Estate in Ashburn — who was fi nancial analyst before becoming a Realtor® four

years ago — says it took a while for someone to provide a clear rationale for donating.

“For the fi rst couple of years I didn’t think about RPAC,” Arko says, “but then I was approached by some-one who was trying to get donations, and her explanation left a lot to be desired.”

Innes admits that the introduction new Realtors® get to RPAC isn’t always up to snu� : “Realtors® get mailings on RPAC, they get e-mail, they can go to the Web site to check it out, but it’s like everything else,” Innes says: “People are inundated with messaging.”

The result is that too many people’s understanding of RPAC is “Give us money to pay politicians.” And that doesn’t sit well.

“We don’t want to just give you $100 and say ‘God bless’,” Arko says. “We want to know what we’re going to be behind during the next term and whether it’s on the state level or the national level.”

When explained correctly, though, he says RPAC makes a lot of sense. For example, for Arko much of RPAC’s benefi t comes not from the actual dollars it gives and receives, but in its involvement in the political process.

“The explanation I got from one gentleman,” he says, “was that there’s a certain number of people that have the ear of politicians, and those o� cials have a fi nite amount of time that they can spend hearing your side of the story. In order to get to those o� cials — whether they’re Demo-crat or Republican really doesn’t matter — there are only a few tools we can use. And one of those is RPAC.”

Unfortunately, he says, many people don’t get that explanation — the part about RPAC being one of only a handful of ways to get in front of legislators. Instead, they’re simply told that RPAC is the PAC for Realtors® and that they need to give money.

And that lack of detail doesn’t work anymore — not with a generation with the world of information at its fi ngertips, and with more people than ever are tuning in to the political process. They want to know more than who their money is supporting; they want to know the nitty-gritty.

Arko says that if RPAC made a better e� ort pointing out what legislation or issues needed to be targeted on a regular basis – communicating with members at a grass-roots level – it would make all the di� erence. �

Join the frayTalk about this story on VARbuzzwww.VARbuzz.com/RPACstory

“

18 JANuARY/FeBRuARY 2009

every economist has a prediction

for 2009. They also had them for

2008, and most of them got it

wrong. so it raises the question:

Are economists trying to predict

what’s going to happen this year

any better than, say, a monkey

with a dartboard?

And what do our Realtor®

members — you folks on the front

lines of today’s economy — think

about what’s going to happen?

We sent Gary Duda, broker and

owner at Re/max Action Real estate

in Glen Allen, to fi nd out from

fi ve Realtors® and brokers

around the state.

Jamie WilesPenFed Realty, RestonNot everyone is willing to throw economists to the wolves; Jamie Wiles believes that most economists do know what they are talking about. But he also realizes that national forecasts don’t always connect on local level. For example, his market — Northern Virginia — benefi ts from the constant fl ow of

people coming to and leaving government jobs inside the Beltway.Wiles didn’t go as far as defending economists, but he did say that they

have their work cut out for them. “A time like this has not been seen before. Looking back there certainly had been periods where prices had dropped and it was hard to sell your home, but the disparity between where these houses peaked in value and how far they have dropped is pretty unique.”

Wiles say he tries not to let economic forecasts get into his head. Regardless of the news, he still has to sell real estate — he’s just working

harder and smarter.

Linda MoodyNapier REALTORS®

ERA, Midlothiansome Realtors®

are willing to give economists a break given the complexity

of their job, including Linda Moodyof midlothian.

“I think there are too many variables involved in today’s economy making it diffi cult for economists to know exactly what will happen,” says moody. “I think economists often go by set formulas. In a perfect world formulas might work, but it’s not a perfect world anymore.”

moody says that despite the gloomy predictions, she sees reasons for opti-mism. “I think obama getting in has given a lot of people hope — regardless

of your political affi liation.”moody says she believes solid steps

are being taken to right the economy and believes the lender bailout is a good thing as well as help toward prevent-ing foreclosures and assistance to the nation’s automakers.

If 2009 is going to be a bad year, moody says it won’t be bad for every-one. “2008 was my best year ever so if it’s going to be another year of the same, that’s a good thing for me.”

economic predictions — be they good or bad — don’t necessarily predict a Realtor’s ® business.

“Regardless of what economists say I will not let any economic forecast dictate my performance level” says moody. “It is very important to under-stand economic trends, but I try to use them in my favor to encourage my clients to take advantage of the oppor-tunities that exist today. You cannot let the negative news affect your attitude otherwise it will pull you down and will ultimately pull your business down. As my husband and I always tell our children, “why worry about what you cannot control.”

Economic predictions,

be they good or bad,

don’t necessarily predict a

Realtor’s® business.”

realtycheck GARY DuDA

“

“Volume 16 ● Issue 1 JANuARY/FeBRuARY 2009

19

Brandi Tyree, Associate Broker Re/Max 1st Olympic, Lynchburgeconomists like to

make forecasts on national levels, but that just doesn’t make a lot of sense to Brandi Tyree of lynchburg who likens it to trying to make a national weather forecast.

“Trying to predict the weather for the entire county is as crazy as making a national economic forecast — each state isn’t going to have same weather and each locality isn’t going to have the same economic conditions,” says Tyree.

Case in point is Tyree’s market of lynchburg, which for the most part did not see the astronomically-appreciated rates of the past boom market. on the flip side, it’s now not experiencing as large a decline in home values as other markets.

Her take on national economic fore-casts? Not only are they misleading, but

they can have a harmful impact on local real estate sales.

“The negative national forecasts harm our market because people generally don’t understand that the news they hear may not be accurate for their local market,” she says. “sellers get the mind-set that they should wait to sell their home because now isn’t a good time. Buyers actually are sitting back and wait-ing because the media is making them think that the market is so bad.”

“We just have to work hard and stay positive,” says Tyree. “If we continue to listen to the news and media, it can get you down. If you stay positive and work hard, and do the things you’ve always done, you can be successful.” ●

Geoffrey CardwellLong and Foster, NorfolkIf economists are looking for a shoulder to cry on, they had better not look to Geoffrey Cardwell. He sees economists — and the newspapers that carry their predictions — as purveyors of doom and

gloom. In fact, Cardwell says economic predictions don’t mean a thing to his real estate business.

“If you want to sell more newspapers, they’re extremely valuable,” Cardwell says. “If you want to sell a home, economic forecasts don’t mean a thing.”

Does he feel for economists and the (tough) job they have predicting the economy? “No. If they want to look at doom and gloom for the future, forget them. I don’t have any sympathy at all.”

Cynthia AveryThe Avery Group, Roy Wheeler Realty Co., CharlottesvilleEconomic predictions provide some useful broad strokes, says Cynthia Avery, but that’s about it. “On a national scale I think they can give

us some trends, but nobody knows what is going happen — especially in local markets,” she says. “Some areas are better than others. It’s so uncertain across the board.”

Whether they’re right or wrong, Avery says econo-mists’ predictions have been helpful to her business. “The forecasts that economists give us can help agents determine where the market is heading. If you use that information to procure the right new business, and share it with your clients, the results can be powerful,” says Avery.

Predictions are also useful when dealing with sellers who may not quite “get” the current housing market. “They allow us to … get a seller on board on what pric-ing will be,” Avery says. “The days where we say ‘Let’s price it here and see what happens’ are gone. Homes need to be priced to sell.” So they’re a tool to educate sellers “and get them more realistic about what the true value of their home is in today’s market.”

If they want to look at doom and

gloom for the future, forget them.

I don’t have any sympathy at all.”

Not only are national

forecasts misleading,

but they can have a

harmful impact on local

real estate sales.”

Mary DykstraRE/MAX Valley

REALTORS®

Roanoke


Dennis CronkPoe & Cronk Real

Estate GroupRoanoke

John McEnearneyMcEnearney

Associates, Inc. Alexandria

Fredericksburg Area Association of REAltoRS®, Fredericksburg

GolDEN R ASSocIAtIoN ($5,000)

William ChoreyChorey &

Associates RealtySuffolk

Dorcas Helfant-BrowningColdwell Banker

Professional Virginia Beach

Thomas Jefferson, III*Joyner Fine Properties

Richmond

Steve HooverMKB, REALTORS®

Roanoke

Tom Stevens*Coldwell Banker

Residential Vienna

Stanley PalivodaCentury 21 Battlefield –

Tappahannock Dahlgren

Melanie ThompsonCentury 21

AdVenture Realty Fredericksburg

Jack TorzaLong & Foster REALTORS®

Mechanicsville

As of JAnuAry 19, 2009, 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 [email protected] or (804) 264-5033. Or, if you want to get invested today, please visit rpacofva.com.

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

Linda Belcher-BrownColdwell Banker

ResidentialManassas

GolDEN R INVEStoRS ($5,000)

StERlING R INVEStoRS ($1,000–$2,499)

Julia AventRE/MAX Allegiance

Arlington

Wayne BabbRE/MAX Allegiance

Alexandria

Bob BlountRE/MAX Allegiance

Virginia Beach

Mary Ann BendinelliWeichert

REALTORS®

Manassas

R. Scott Brunner Virginia Association

of REALTORS® Glen Allen

rpacreport

RPAC’s good to you

Get invested today at www.RPACofVirginia.com

When you’re good to RPAC...

Angela EliopoulosLong & Foster

Real Estate, Inc. Washington, DC


StERlING R INVEStoRS ($1,000–$2,499)

Margaret HandleyM.C. Handley, Ltd.

McLean

Patricia KlineAvery Hess REALTORS®

Springfi eld

Anne RectorLong & Foster

Real EstateAlexandria

Gwen Pangle Long & Foster

Real Estate, Inc.Sterling

Jane Quill RE/MAX Presidential

Fairfax

Peter Rickert Coldwell Banker

Residential BrokerageAlexandria

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.

rpacreport


Keeping our fingers on the ever-quickening pulse of Virginia’s real estate bloggersLocked outHot new real estate blogger Sarah Stelmok (sarahiously speaking.com) considers Fredericksburg City’s “exces-sive residential occupancy” ordinance, which limits the number of people who can live in one house.

Does the ordinance unfairly target college students and/or young professionals? Let’s face it, the cost of living is high in Fredericksburg City and the surrounding areas, even in this volatile real estate market ... When I fi rst moved to this city in 2004 I quickly learned that I would have to have at least one roommate and sell my blood in order to make a monthly rent payment.

She also asks:Are four unrelated people living in a house noisier than 4 related people? I grew up with four boys living in my home. By the eyes of the law, we were considered related. Being ”related” didn’t make them any less noisy or less likely to throw parties. (And boy, could my brothers throw a loud party!)

And she concludes:Now, I am in no way supporting violating city ordinances and I am not promoting ignoring safety and health regulations. But I do question the city’s intent with this ordinance in the way it is written and how it has been presented to the community. It does appear to target college students. And for now, students are NOT protected under local fair housing laws.

Shortcut: www.VARealtor.com/09011

Just walk away?Tina Merritt (www.tinainvirginia.com) says she’s beginning to understand the mentality of people who walk away from their homes when their value plummets:

A home is a fi nancial investment. What do you do if you open a business and it continues to bleed money each and every month?You cut your losses and close the business.


When opportunity knocks“Old Town Alexandria Just Got a Whole Lot Sexier!” writes Brian Block(www.brianblock.com), commenting about an adults-only store opening in Alexandria. Although he wasn’t thrilled with the idea, he also wasn’t one to let an opportunity slip by:

Oh yeah, and whatever you decide to buy, please make sure you make use of it within the privacy of your own house...

Don’t own a house? You’ve come to the right place. I sell those.


Scammers in Virginia…and on VARbuzz, Danilo Bogdanovicsent out a scam warning:

If you’re a homeowner who has an existing mortgage, beware. A mortgage scam going around the country has made it to Virginia.

The scam involves receiving a “hello” letter in the mail saying something like,

Dear (insert your full name here), Your mortgage has been sold to (insert name of a reputable lender here).

Beginning (the fi rst of next month), please remit payment to the following address…

What may actually be happening is that you’re sending your mortgage payment to a scam artist that collects your check, cashes it and runs off with your money.

Let’s be careful out there.Shortcut: www.VARealtor.com/09014 �

VARbuzz, VAR’s offi cial blog and unoffi cial water-cooler, is the place to fi nd not only comments from VAR staff, but from Virginia’s best-read real estate bloggers. Join the conversation! www.VARbuzz.com

Stelmok Block

Bogdanovic

Merritt

blogspotting ANDREW KANTOR


we’re online at www.VARealtor.comour official blog is VARbuzz, at www.VARbuzz.com

If you have questions, we’re ready to help. During normal business days, we’re available from 9:30 a.m. to 4 p.m. our phone number is (804) 264-5033.

For membership and dues questionsAsk for Kim martin, membership Records manager [email protected]

If you’re a consumer or member of the mediaAsk for lisa Noon, Vice President of member outreach [email protected]

To find out about conferences, seminars, and professional educationAsk for Glenda Puryear, conferences Specialist or lili Paulk, Director of Education, glenda or lili @varealtor.com

For questions about professional standardsAsk for carole Umbel, Director of member Services [email protected]

If you need to know about professional designationsAsk for lynne wherry, Specialties and chapter manager [email protected]

For information about RPACAsk for meredith cox, Director of Political communications [email protected]

If you’re interested in marketing or advertising opportunitiesAsk for Amanda Rainsford, marketing manager [email protected]

If you have comments or questions about Commonwealth or our Web sites Ask for Andrew Kantor, Editor & Information manager [email protected]

To reach our Legal Resources Center (formerly the Legal Hotline)call (800) 755-8271** You must register first at www.varealtor.com — click member Services

Our CEO is Scott Brunner(804) 249-5712 [email protected]

Advanced AccessInternet marketing & website Development

Bank of America, worldPoints credit card

DNCSolution, Do-Not-call SolutionsSecurity code Sc1795VR

FBR Direct, Financial Planning Services

Liberty MutualHome, Auto & Renters Insurance

LLE Language Servicestelephone Interpretation & Document translationPromotion code VARm08

Office Depot, office Supplies & copying

Outstaffing, Staffing & Payroll

Pearl InsuranceE&o, medical, life, Dental Insurance

TASC/BizPlan medical Expense tax Benefits

T-Mobile, wireless Service

VAR Wireless Center (coming soon)wireless Plans & Hardware

Zipform, Electronic Forms Solutions

John Powell, GRI, ABR, CRB, CRS President long and Foster Real Estate, colonial Heights(804) 520-5600john.powell@longand foster.com

Cindy Stackhouse, GRI President-Electcentury 21 Stackhouse and AssociatesPrince william(703) 580-0880 [email protected]

John Dickinson, CCIM, GRI Vice PresidentHall Associates, Inc., Roanoke(540) 982-0011 [email protected]

John Daly treasurerGSH Real Estate(757) 481-8461 [email protected]

Pat Jensen, ABR, CBR, CRS, GRIImmediate Past PresidentReal Estate III – North charlottesville(434) 817-9200 [email protected]

R. Scott Brunner, CAEchief Executive officer (804) 264-5033 [email protected]

VAR Member Service Partners

VAR 2009 Leadership Team

(804) 264 -5033our phone number is

contactvar REAcHING VAR

Volume 16 ● Issue 1 JANuARY/FeBRuARY 2009

27

varbuzzcontest

ReAlToR®-to-ReAlToR®

To advertise in Commonwealth

magazine, contact Brittany

Sullivan at 410-584-1917 or

[email protected].

Here are this issue’s questions:1. Courts have typically allowed between __ and __ days

as a “reasonable” extension for a settlement. (See “Form Factor”)

2. What’s the name of the broker/owner at Wythe County Real estate we quoted in our cover story? (See “Balancing Act”)

3. What did editor Andrew Kantor suggest you might be thinking of throwing at “the idiots on Wall street”? (See “First Words”)

4. What was the name of the beauty contest our ReAlToR® of the Year was runner-up in, when she was in high school? (See “Quick Hits”)

5. What did lem marshall say a fool and his money wouldn’t get? (See “Legal Lines”)

Here’s your cHance to win a cool HD video camera just for reading this magazine and our VARbuzz blog.

Answer the questions to the right by reading this issue of Commonwealth. Then, on February 23, visit our blog at www.VARbuzz.com. There you’ll read simple instructions (e.g., “Take the first letter of each word” or “What’s the opposite of answer #3”) to get the final answer.

Fax (yes, fax) this page to (804) 262-0497, attention Commonwealth Contest. We’ll draw one entry from the first 20 with all the answers correct — that winner gets a Flip Mino HD video camera.

Simple, huh?

Remember: Hang onto this form until February 23, when you’ll get final instructions at www.VARbuzz.com!

Name:

Company:

e-mail address:

Phone number:

Comments?

1. and

2.

3.

4. miss

5. A

FINAL ANSWER:

“


Generally speakinG, I despise fast food.

There’s the food itself (I use the term loosely): Calories. Carbs. Super-sized saturated fats.

Then there’s the setting: Sticky tables and sticky floors and the eau de vegetable oil that lingers on your skin and in your clothing longer than the finest perfume.

But my real beef (no pun intended) is with the customer service.

Let’s just say that if I wanted to be ignored by a surly, disinterested, self-absorbed teenager who believes the course of her entire life may hinge on her ability to check her cell phone for text messages every 20 seconds and who seems to have no inkling that the person she’s ignoring is the very one putting money in her pocket — well, if I wanted that, I’d stay home with my 13-year-old daughter.

But there’s one fast food place I don’t mind. In fact, I like the place — not so much the food, though it’s okay, especially the milkshakes. I’m talking about the service.

I like Chick-Fil-A. I like it because, no matter how many times I go there, I’m never allowed to forget that I’m the customer; that being the customer makes me special to the people who work there; and that because I’m special, those people who work there treat me with a modicum of dignity. It’s almost as if someone told them I’m paying their salary, that my time is valuable, that serving my self-inter-ests is in their own self-interest.

Walk into any Chick-Fil-A, and you’ll find it reasonably clean — meaning, neither sticky nor stinky — and staffed by a beehive of generationally diverse, competent,

disciplined, speedy employees for whom there’s no order too out of the ordinary, no request too inconve-nient, no quirk too, well…quirky.

“May I have a sweet tea?” “Certainly.”“And no lemon, please…”“Yes sir.”“…and do you mind only filling

the cup half full of ice?”“It would be my pleasure.”

You hear “My pleasure” a lot at a Chick-Fil-A. And it’s not just a throw-away line, either. I’m talking a “my pleasure” consistently uttered with such conviction that it makes you suspect the utterer either is the Lawrence Olivier of the low-wage food service set, or — gasp! — is genuinely sincere, as if filling my Styrofoam® cup with a little ice and a lot of tea actually will be the high-light of his or her day.

I stand there, very nearly wetting myself from the shear, joyous shock of being well-treated, and wanting to scream: “Who are you and what have you done with my assumptions about the state of customer service in America?”

You know what I mean. Good service has become so rare these days that when we experience it — when we interact with a service provider who puts us first — we remember it,

marvel at it, come back for more.We also share it. It used to be the

other way ‘round, you know: Treat someone badly, they’d tell everyone they knew. Nowadays we’re so astonished by occasional courtesy that we immediately post about it on our Facebook page (the modern-day equivalent of telling everyone we know, and even some we don’t).

How that applies to Realtors® — and Realtor® associations like VAR — is clear: It’s not what we say that makes our customers value us, it’s what we do, and how we make them feel. It’s the difference between simply being sold and seriously being served.

It’s the very reason that despite my disdain for fast food, I’m drawn to Chick-Fil-A. It’s not about the cows. It’s not really even about the chicken. It’s about service — the uncommon thrill of hearing “My pleasure” and knowing they mean what they say. l

Scott Brunner is VAR’s chief executive officer. E-mail him at [email protected].

My pleasureWhat we can learn from at least one fast food joint

It’s not what we say that makes our customers value

us, it’s what we do, and how we make them

feel. It’s the difference between simply being sold

and seriously being served.”

lastword Scott BRUNNER

Documents

2009_1-2_Commonwealth