2011_3-4_Commonwealth

When I’m 6

Head about a w

ave

The Boomers are

retiring. Here’s how to

be ready for them.

4

MAJOR FORM CHANGES (p. 16) • THE REAL MID NUMBERS (p. 26)

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

March/April 2011

1Volume 18 ● Issue 2 mARCH/APRIl 2011

I am blessed with old parents. My folks were Depression kids — born in New York in 1924 and 1928. It’s actually a multiple blessing — they’re still alive, still coherent (although Mom’s hear-ing is a bit iffy), and I get to hear stories about the old days. How many kids have heard about the time when there was one phone in a neighborhood? Or lived two houses down from the last ice-delivery man in New York?*

Dad still has, in his basement, the Compton’s Encyclopedia he bought for my sister back in the Days of Yore, when words ended in “e” (olde, shorte, towne, etc.)

“Someday,” it promised, “Man may travel to all seven planets.” It warned of the danger posed by The Hun (despite the whupping we gave them in 1918), and sug-gested that hard-working women could become teachers, librarians, or even (!) nurses.

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

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

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

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

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

He’s not alone. Many of his Greatest Generation are already in, shall we say, alternative hous-ing, where things are easier — no stairs to walk or walks to shovel. Others are reaching the point when they’ll want to. Lord knows they’ve earned it.

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

Did someone say “moving”? Because helping people move is what Realtors® do best. The question is, are you ready for the boom? ●

Andrew Kantor, [email protected]

firstwordANDReW KANToR

Published by The Virginia associaTion of realTors®

The Business Advocate for Virginia Real Estate Professionals

John dickinson, cciM, griPresident

Trish szego, crb, crsPresident-Elect

Mary Victoria dykstra, abr, crsVice President

John daly, sfrTreasurer

cindy stackhouse, gri Immediate Past President

r. scott brunner, caeChief Executive [email protected]

amanda rainsfordVice President of Marketing & Communications [email protected]

andrew Kantor Editor & Information Manager [email protected] For advertising information, Brittany Sullivan at (410) 584-1968 or e-mail [email protected]

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 byNetwork media Partners, Inc.

get it? got it? good! In addition to the print version of Commonwealth, VAR publishes electronic newsletters at regular intervals, including...

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.

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

old folks at home

follow and friend us!

Varealtor.com/twitter

Varealtor.com/facebook

Varealtor.com/ linkedin *Seriously

2 MARCH/APRIL 2011 www.VAReALtoR.CoM

APeX Award of excellence winner

18

26

4

8

10

16

14

The latest news and announcements for Virginia’s Realtors®

The numbers that shape your world

Questions and answers about Virginia real estate law

The new Form 400 has some important changes

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

quickhits

statswatch

legallines

formfactor

lifelessons

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

accessibletech

1

32

39

40

firstword

rpacreport

contactvar

lastword

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

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

MARCH/APRIL 2011VoLuMe 18 ● Issue 2 contents

in every issue

departments

features

Brokerage, Independently Owned and Operated. Not intended to solicit individuals or property already under contract.

FOR FRANCHISE INFOContact Nancy & Tom ShaverEXIT Realty VirginiaO�ce: [email protected]


Standard forms

quickhitsANDRew KANtoR

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

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

Internet advertising is voluntary.• An owner may opt out of having the property listing

or property address displayed on the Internet. Thus, the owner can either omit just the property address or the entire property listing from the Internet.

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

• If the owner wants to opt out of Internet advertising, the owner must: • select option A or B in the “Opt out of Internet”

box in Form 400; and• initial the acknowledgment in the space provided.

If authorized by the property owner, a broker’s website may also allow the display of certain information.• Third-party comments or reviews about the property

or a hyperlink to comments or reviews in immediate conjunction with particular listings. • Third-party comments include blogging, Facebook,

MySpace, and other social- and business-network-ing websites or electronic communication.

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

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

listings in immediate conjunction with the property.• Third-party comments and valuations.

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

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

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

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

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

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

— Blake Hegeman, VAR Legal Counsel

Important: Major changes to Form 400

For more on Form 400, see Form Factor on page 16.

5VoLuMe 18 ● ISSue 2 MARCH/APRIL 2011

tax law Video update

tax info

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

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

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

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

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

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

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

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

IRS info for Realtors® our friends at the IRS have a use-ful web page just for Realtors® and other Re pros — unfortunately, it’s a bit buried in the site.

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

You can navigate IRS.gov yourself, or simply follow our easy link to it: www.VARealtor.com/irsinfo.

File under “worth checking out.”


Marketing

quickhits

Sponsored by the Virginia Housing Development Authority

Landlords,

Advertise

Your Rental

Property,Free!

VirginiaHousingSearch.com

List one property for rent — or hundreds!Easily add photos, amenities, neighborhood info and more.

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

NAR offers free content for newsletters, websitesWant to show your clients that when it comes to real estate, you’re the expert? Hint: Posting your list-ings to your Web page or Facebook account isn’t going to impress them. NAR hopes it has a better idea: the Realtor Content Resource at www.houselogic.com/members.

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

Think of it as a library of useful articles that you can use, gratis. After all, a good website (or news-letter) is about content. If it’s not interesting, you won’t get people coming back or caring what you have to say.

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

Truly Deep Clean• Contractor Liability: Are You

Covered for Mishaps?• Recasting Your Mortgage:

Refinancing’s Forgotten SiblingAnd how about this: To convince

you to at least check out the RCR, when you sign in, you can enter a drawing to win $150 Visa gift cards (weekly) or an Apple iPad (monthly).

Free content, good content, and a chance at some prizes. Whatcha waiting for? ●

FSBO vs Realtor®

the folks at HomeGain (they provide marketing tools to real estate pros) did a survey — FSBo vs. Realtor®. they asked more than 1,000 hom-eowners about their experiences selling a home.

what they found, by the numbers:

Free content

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

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

59% >

>88%

24%

39%

81%

used a Realtor® and were successful selling

used a Realtor®, were able to sell their home, and would use a Realtor® again

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

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

went FSBo, couldn’t sell, turned to a Realtor®

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

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

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

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

Sponsored by the Virginia Housing Development Authority

Landlords,

Advertise

Your Rental

Property,Free!

VirginiaHousingSearch.com

List one property for rent — or hundreds!Easily add photos, amenities, neighborhood info and more.

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


statswatch

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

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

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

what does it mean? Are higher-priced home sales recovering faster? Is the under-$250K market still falling? I wish we knew the answers, but the reality is that the market is a mess, and drawing conclusions (what effect did the tax credit have?) is all but impossible.

Correction: Drawing correct conclusions is impossible. But feel free to guess. l

Going down?

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Median sales price, Jan. - Feb. 2011

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.

C 2 1 . C o M

© 2011 CENTURY 21 REAL ESTATE LLC. ALL RIGHTS RESERVED. CENTURY 21® IS A REGISTERED TRADEMARK OWNED BY CENTURY 21 REAL ESTATE LLC. AN EQUAL OPPORTUNITY COMPANY. EQUAL HOUSING OPPORTUNITY. EACH OFFICE IS INDEPENDENTLY OWNED AND OPERATED.


legallinesBLAKe HeGeMAN

Signed, sealed, deliveredFor generations scholars have published volume after volume on contracts. even today, you can walk into almost any court house in the United States and someone will be arguing over a contract. Contract law is very broad, but two common problems in the context of real estate transactions involve contract formation and termination. Below are answers to common ques-tions we get on the Hotline.

Q. A buyer received a counteroffer and verbally accepted it, such accep-tance being communicated to the seller. the buyer later signed the

counteroffer and gave it to her agent to deliver to the seller. Before the signed contract could be delivered, the buyer changed her mind and instructed her agent not to deliver it. the seller wants to enforce the contract. Is there a valid contract? Is it enforceable?

A. Yes to both questions. As to the validity of the contract, we know that a contract existed as of the time of the verbal acceptance of the coun-teroffer. At that point, of course, the contract was not enforceable against the buyer under the Statute of Frauds because she hadn’t signed anything. The Statute of Frauds requires contracts for the sale of real property to be in writing and signed. The contract cannot be enforced against a party who does not sign the contract.

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

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

Q. what is the difference between terminating and

releasing a contract?A. Termination is generally the

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

A release is a mutual act by which one or more of the parties are released from obligations under the contract pursuant to whatever agreements the par-ties have reached. For example, Firm A can release sellers from a listing and sellers agree to pay Firm A’s advertising expenses. Or sellers can release buyers if buyers forfeit the deposit. Both buyer and seller must sign the release for it to be effective.

Just sending a release to the other side does not usually constitute the act of termination. If your client wants to terminate, do so unambiguously.

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

11VoLUMe 18 ● ISSUe 2 MARCH/APRIL 2011

Q. we have a situation with a relocation company. we made an offer on a home that is owned by a reloca-

tion company and after several counters the company notified us that we had a ratified contract. the

relocation company required a clean contract; so, we prepared a clean contract with all

the negotiated terms per the company’s request. Now, they will not sign.

A. Did they ever sign the original one? If so, whether they ever sent it to you or

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

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

Monday through Friday, 10 a.m. – 4 p.m.The VAR Legal Hotline is a free, members-only benefit for brokers.

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

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

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

Who can use the Hotline?• You must be a principal or supervising broker.*• You must be a VAR member.• You must have registered for the Hotline

(see above).• You must have your NRDS ID number available

when you call.(* Each office can have one other person designated by the principal broker for Hotline access.)

E-mailing the HotlineYou can e-mail your questions to [email protected].• Responses will be by phone; we no longer

provide written answers to Hotline questions.• You must include your full name, phone

number, and NRDS ID. We cannot respond to messages that do not include all three.

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

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

You will need your NRDS ID number to log into the site. Questions?If you have questions about the Hotline, contact VAR at (800) 755-8271 or (804) 264-5033, or by e-mail at [email protected]

The VAR Legal Hotline should not replace your own legal counsel. We will not answer questions on matters unrelated to real estate or real estate brokerage, nor can we help with pending arbitrations.

VAR Legal Hotline(804) 622-7955

NEW NUMBER!

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.

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

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

his obligation for damages due to his breach. If the buyer breaches or repudiates the contract — refusing or failing to

close — and the buyer does not have a reason to do so under the contract, the seller should declare a default but not terminate.

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

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

In this situation please consult an attorney before proceeding.


Q. A property owner is highly allergic to animal dander of

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

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

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

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

The results are different because disability is a protected class. And because allowing reasonable modifications and making reason-able accommodations are things that landlords and owners may be required to do under the fair hous-ing law.

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

house professionally cleaned at his expense. That because having to clean carpets and paint is often associated with normal wear and tear occurrences that landlords generally pay for as a cost of doing business. Additionally the fact that disability is a protected class and service animals are not consid-ered pets are other reasons why a landlord may be prohibited from insisting that a disabled tenant pay to clean the carpets before vacating the property. ●

John Cancelleri is a Virginia attorney and former director of Virginia Fair Housing Office.

legallines

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

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

Fido and fair housing

The NAR and RPAC Leadership would like to thank our 2010 Major Donors from Virginia

for their generous support of the REALTOR® Party.

H Charles Burnette

Billy Chorey, Sr.

Dennis Cronk

H John Dickinson

Joseph Funkhouser

H Dorcas Helfant-Browning

Steve Hoover

Thomas Jefferson, III

John McEnearney

John Powell

RE/MAX Allegiance

H Thomas Stevens

H Melanie Thompson

H Jack Torza

Golden R

Thank You

H NAR President’s Circle member Hall of Fame members are in gold. RPAC Major Donors as of 9/30/2010

Bob Adamson

Guy Allen

Julia Avent

Deborah Baisden

C.C. Bartholomew

Bob Barton

Mary Bayat

Lee Beaver

Gail Belt

Mary Ann Bendinelli

Laura Benjamin

Karen Bohlke Enriquez

Bradley Boland

Candice Bower

Kevin Breen

R. Scott Brunner

Curtis Burchett

Robyn Burdett

Christopher Call

Dale Chandler

David Charron

Pat Clark

Vic Coffey

Billy Coons

Patrick Cowne

Jessica Decker

Benton Downer

Mary Dykstra

Sandra Ferebee

Claire Forcier-Rowe

Virgil Frizzell

Pamela Frohman

Karen Gaskins

Libby Gatewood

Bill Gearhart

Charlee Gowin

Arthur Grace

Lynn Grimsley

Kit Hale

Margaret Handley

Lizzie Hernandez

David Hess

Tom Innes

Donn Irby

Margaret Ireland

Betty Jasmund

Jo Anne Johnson

Sita Kapur

Kathleen Kennedy

Patricia Kline

Barbara Jean LeFon

Richard Limroth

George Lyons

Scott MacDonald

Andy Mason

Shane McCullar

Glenda McDaniel

Susan Mekenney

Dee Meredith

John Meyer

Tom Meyer

David Michalski

Jay Mitchell

Percy Montague

Vicki Nellis

Vinh Nguyen

Lee Odems

Forrest Odend’hal

Boofie O’Gorman

Susan Oh

Gwen Pangle

Gail Penman

Lonnie Plaster

Tracy Pless

Anne Rector

Peter Rickert

Thomas Rickert

Zinta Rodgers-Rickert

Suzanne Rose

Henry Scholz

Trudy Severa

Jean Siebert

Kimber Smith

Cindy Stackhouse

Wes Stearns

Suzy Stone

Mack Strickland

Crystal Sullivan

Joe Sutliff

Trish Szego

Richard Thurmond

Christine Todd

Karen Trainor

Kevin Turner

Sandra Wagner

Todd Wampler

Mary Ann White

William White

Barbara Wolcott

Jon Wolford

Sheraton Yee

Tony Yeh

Sterling R

NATIONAL ASSOCIATION of REALTORS®

Michael Minnery

H Jane Quill

Crystal R

Greater Augusta Association of REALTORS®

Harrisonburg-Rockingham Association of REALTORS®

Lynchburg Association of REALTORS®

New River Valley Association of REALTORS®

Southside Virginia Association of REALTORS®

Virginia Peninsula Association of REALTORS®

Charlottesville Area Association of REALTORS®

Dulles Area Association of REALTORS®

Fredericksburg Area Association of REALTORS®

Northern Virginia Association of REALTORS®

Richmond Association of REALTORS®

Roanoke Valley Association of REALTORS®

Williamsburg Area Association of REALTORS®


lifelessonsAndRew KAntoR

The little and the big

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

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

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

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

Big difference.

GRI: Your first next step.

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®

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

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

Then nothing happened. In fact, Walt found he couldn’t get in touch with Raquel for several months. In November, though, Raquel presented Walt with a contract for the home. But Walt sensed something fishy and called shenanigans. Raquel then offered to return Walt’s $10,000.

She never did.Meanwhile, Raquel was also acting as the leasing

agent for some of Walt’s properties. In July and August, two new tenants had moved into properties of Walt’s. Although the lease made it clear that the security deposit and rent checks were to go to the landlord, Raquel had the tenants give them to her.

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

In November, Raquel finally sent a check for $4,500. It bounced. Walt complained to the Real Estate Board, which began to investigate.

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

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

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

Sue never received the rejection notice,

because it had been sent to an e-mail

address that Sue never used.

Big difference.

GRI: Your first next step.

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



formfactorBLAke HegeMAn

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

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

This issue: Form 400 changes 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 illu-

minate it for us.

They’re all available,

free for download, at

www.VARealtor.com/

standardforms.

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

It is increasingly common for parties to sign documents electronically. However, the law requires that for real estate purchase contracts the parties must agree beforehand to deal electronically.

the following provision was included in Form 400 (and will be in VAR’s purchase agreement soon) to meet this requirement:

Electronic signatures?

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


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

MARCH/APRIL 2011 www.VAReALtoR.CoM18

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

When I’m 64

VoLuMe 18 ● Issue 2 MARCH/APRIL 2011

19

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

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

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

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

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

Boomers tend to be an educated lot. They harbor high expectations and ask tough questions. Questions like:

What is a reverse mortgage, and what are its pros and cons?

How might I use pension funds, a 401(k), or an IRA to help finance a

real estate transaction?My kids want us to go to an

assisted-living facility. Can you tell them to buzz off?

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

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

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

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

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

By Liam MacLeod

I’m a baby boomer. You’re a baby boomer. Everyone’s a baby boomer. So it seems these days.Jimi Hendrix didn’t make it out alive. Neither did Janis nor the Lizard King nor Pigpen of the Grateful Dead. But a heckuva lot of people survived the ’60s and ’70s and they’re just about everywhere you look. Including, perhaps, in the mirror.


years,” Thornhill told the newspaper.Some real estate firms are going

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

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

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

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

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

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

He found reputable providers of reverse mortgages who candidly discussed this option’s pros and cons. He nailed down facts about housing options for older adults in his market, including independent living, assisted living, nursing homes, and more. He contacted community agencies to learn about services, such as Meals-on-Wheels, that can allow older clients to remain in their homes.

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

An older client’s move can elicit strong feelings, he said. For some, this move will likely be their last. Consequently, many such clients who contact Ford take months and even years to act.

“You’ve got to be very understand-ing and very patient,” he said.

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

When Ford visited, the husband stepped outside with him.

907,858

1.8 million

1 in 5

estimated number of Virginians 65 and older in 2009

estimated number by 2030

Chance in 2030 that a Virginian will be 65 or older


21

“He came out and gave me a big hug and started crying,” Ford recalled. “He told me, ‘I feel overwhelmed. Why didn’t I do this three years ago?’“

To promote his expertise, Ford met with groups of older adults and crafted a brochure that describes his experi-ence in the market, including the value of his SRES designation. (See the box on page 23.)

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

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

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

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

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

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

Marketing Tipsthe baby boom generation’s huge numbers and diverse needs present both challenges and opportunities for Realtors®. A cottage industry of consultants, authors, and academics has emerged to weigh in with tips about how to reach and cultivate this demographic.

one of them, boomer market-ing expert Jerry shereshewsky of GrownupMarketing, offers these tips:

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

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

Grandparents are a critical subset of the boomer market. the aver-age age for a first time grandmother is 50 (it’s 53 for grandfathers). they have (or will shortly have) a whole other set of priorities, and real estate plays a large role there.

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

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

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

while the industry has been talking about [older adults] down-sizing houses for many years, I believe the truth is just the reverse. two- and three-generational households will want bigger, not smaller houses.


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

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

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

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

In one transaction, she faced unique circumstances.

“One time I received a call from a seniors’ apartment complex. Because of my [SRES] designation they had gone to the site and searched for an agent in the area,” Laub Canty said. “Their biggest problem was that they had people who wanted to move to their [seniors] community but they had homes to sell, the market was slow, and they had no idea about where to start.”

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

Of course, not every senior is plan-ning to move.

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

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

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

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

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

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

54

36

78.2 million

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

estimated percentage of boomers in Virginia with a bachelor’s degree or above. (Compared to 24% for ages 65 to 84, and 17% for those 85 and older.)

total baby boomers in the u.s. as of July 1, 2005.


23

meet the specific needs of boomers in the decades ahead.

To the east, Fairfax County, work-ing with the Fairfax Agency on Aging, has released its “50+ Action Plan.” It tackles “critical and interdepen-dent issues of housing, community planning, care giving, health, mental health, transportation, technology, and diversity.” At the time of the plan’s release, the chairman of the county’s board of supervisors observed, “By acting now, we’ll ensure that the county remains aging friendly.”

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

Entrepreneurs are planning too.Enter MEDCottage, a small, modu-

lar housing unit playfully or scornfully referred to as a “granny pod.”

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

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

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

there are about 78 million boomers in the u.s. today, making them a market bigger than the

populations of California, texas, and New York combined (and more than 10 times the size of Virginia’s). that’s one reason, four years ago, the National Association of Realtors unveiled its new designation for Realtors®: seniors Real estate specialist.

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

Heidi Henning is, among other things, managing director of NAR’s sRes program. “sRes saw an increase in 2010 over the previous few years for members earning the designation,” she said. “Anyone can take the education, but in order to use sRes and continue each year using the designation, you need to maintain annual membership in NAR.”

to earn the designation, a Realtor must:• be an active member of NAR; • be an active member of the sRes Council (annual dues are $99 after

a free first year); and• complete a two-day sRes designation course, then nail a grade of at

least 80% on the exam.Currently, only the Virginia Peninsula Association of Realtors®,

is offering an in-person sRes qualification course (being held in Hampton in october), but NAR offers an online version thru its Realtor® university for $295.

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

The SRES designation

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

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

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


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

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

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

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

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

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

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

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

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

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

What other relatively small and simple things might appeal to a senior? Many are obvious in hindsight — things like: • touch control kitchen faucets• slide-out shelves beneath the kitchen

sink• pull-down shelves in kitchen cabinets• a rolling kitchen island that can shift

to make space for a wheelchair or walker

• pullout dishwasher drawers to reduce stooping

• front-loading washers and dryers• pull-down closet rods• thermostats with large numbers and

easy to operate controls• stronger plywood backing for bath-

room walls to support grab bars• easier-to-use “paddle” or rocker light

switches

The AARP and NAHB pres-ent annual “Livable Communities Awards” to communities and homes that are, well, more livable. A renovation of a circa-1960s condo in Pasadena, Calif., won in the category for ‘major space renewal’ for high-lighting some of the design features Levner cited. (Videos about award


25

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

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

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

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

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

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

“Boomers are finding that the mar-ket for their current home remains soft and potential buyers cannot qualify for affordable mortgages,” Crowe added. “Even those with the ability to buy a new home are finding a limited selec-tion, as builders cannot get loans to build homes.”

Linda Laub Canty offered a similar observation.

“Right now what I see ... are elderly seniors who are having trouble mak-ing it on their income, and because of the economy the value in their homes is down,” she said. That can make it harder to get a reverse mort-gage — normally a way for seniors to supplement their income. (See the box “Reverse mortgages: You can’t take it with you”)

“I also see lots of people in the 50s to 60s age group who are want-ing to move to the 55+ communities with amenities and things to do, and downsize earlier than their parents did — and let someone else cut the grass.”

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

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

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

“I strongly feel that this is one designation [to acquire] because you care and have empathy for seniors and want to be truly helpful,” Ford said. “It shouldn’t be just another designa-tion you get to add to your arsenal to expand your business.” ●

Liam MacLeod is a freelance business writer based in Southwest Virginia.

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

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

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

Suddenly renting seems a lot more affordable.

Here’s a nice home in a nice Virginia neighborhood. It’s worth about $230,000.

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

$230,0

00

$176,00

0

The MID is about preserving value.

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

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

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

The MID is about neighborhoods — and fairness.

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

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

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

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

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

Protecting Realtors®. Fighting for homeowners.


You drop Your cell phone. Now it won’t turn on. It’s dead. Bricked.

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

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

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

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

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

With a full-size computer there’s always a chance you can see a failure coming — a telltale grinding noise, a series of errors, and so on — and take action. With a phone, not so much. There aren’t a lot of people out there who can say, “I knew I was going to drop my phone in the toilet, so I copied all my contacts and data before it happened.”

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

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

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

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

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

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

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

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

accessibletechANDRew KANtoR

Backing up isn’t hard to do

there aren’t a lot of people out there who

can say, “I knew I was going to drop

my phone in the toilet.”

29VoLuMe 18 ● Issue 2 MARCH/APRIL 2011

I gained wisdom.

I gained a friend.

I built my business.

I became a hero.

I grew my network.

What will you gain by becoming an SRES®?

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

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

Gain a competitive advantage by taking the SRES® course. For more information, visit seniorsrealestate.com.

Dropboxdropbox.com

2GB free; 50- and 100-GB plans for $10 and $20/month, respectively

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

Boxbox.net

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

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

SugarSync sugarsync.com

5GB free; 30GB for $5/month; discounts for annual plans, more stor-age, or multi-user busi-ness accounts

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

ZumoDrivezumodrive.com

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

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

Back up options for smartphones


accessibletech

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

The pros: “Fire and forget”: After the initial setup, backups

are automatic. You’ll get an occasional notice that your files have been saved, but that’s it.

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

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

The cons:Cost: They’re not free, although they’re not expen-

sive — figure about $50-$60 per year.The first three months: Your first backup can take

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

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

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

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

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

If you have a windows 7 Phone, Microsoft throws in some nice good-ies — you get 25GB of storage free (including web access to your files), plus automatic backup of photos, calendar, contacts, and office files.

Also included is a “Find my Phone” feature that can

located the device on a map (or just make it

ring); and remote-lock and -wipe tools in case it’s stolen. Yes, all that is free.

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

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

Apple and Microsoft weigh in

31VoLuMe 18 ● Issue 2 MARCH/APRIL 2011


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

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

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

Sole Proprietorship? LLC? Corporation? Partnership?

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

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

Another option, although it doesn’t offer CrashPlan’s ‘backup anywhere and everywhere’ option, is Carbonite (carbonite.com). It’s strictly cloud-based backup, and $55 per year gets you unlimited storage. One caveat: If you store too much, Carbonite will reportedly “throttle” your connection, making backups slower. Still, the software is simple to use, the company is solid, and the reviews are good.

Mozy is a big name, but its popularity dropped a few notches when it raised its prices earlier this year. It’s now significantly more expensive than most of the others: $6 per month for 50GB and one computer. The pro version is $4 per month per computer, plus

50 cents per GB used. SOS (sosonlinebackup.com) isn’t cheap, but it

consistently gets high marks from users and review-ers. For $80 per year you get 50GB of storage ($100 gets you 100GB), but unlike Mozy you can share it amongst five computers. (The others also offer ‘family’ plans, but they cost extra.) Sign up for a two- or three-year plan and the price drops considerably.

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

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


GOLDEN R INVESTORS ($5,000)

GOLDEN R ASSOCIATION ($5,000) CRYSTAL R ASSOCIATION ($2,500)

John DickinsonHall Associates, Inc.

Union Hall

Charles BurnetteBurnette Real Estate SalesBlacksburg

John PowellLong & Foster Real

Estate, Inc. Colonial Heights

Billy Chorey, Sr.*Chorey & Associates

Realty Suffolk

Re/Max AllegianceAlexandria

Dennis Cronk*Cronk & Poe Real

Estate Group Roanoke

Tom Stevens*Colonial Banker

Residential Vienna

Steve HooverMKB, Realtors®

Roanoke

Trish Szego ERA-Elite Group,

Realtors®

Fairfax

Jane QuillRe/Max Presidential

Fairfax

Melanie Thompson*Century 21 AdVenture

Realty Fredericksburg

Jack Torza*Long & Foster

Realtors® Mechanicsville

John McEnearneyMcEnearney

Associates, Inc.Alexandria

Northern Virginia Association of Realtors®,Fairfax

Roanoke Valley Association of Realtors®,Roanoke

williamsburg Area Association of Realtors®,Williamsburg

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

As of februAry 25, 2011, the following ReALtoRS® and local associations

have joined RPAC of Virginia as Major Investors. For more information on

the value of RPAC and how your investment works to protect your business,

contact Meredith Cox at [email protected] or (804) 264-5033.

or, if you want to get invested today, please visit rpacofva.com.

rpacreport


STERLING R INVESTORS ($1,000–$2,499)

Guy AllenOne Stop Realty

Woodbridge

Laura BenjaminRoanoke Valley Asso-ciation of Realtors®

Roanoke

Deborah BaisdenPrudential Towne

RealtyVirginia Beach

Mary BayatBayat Realty, Inc.

Alexandria

Katy Allenbaugh-Richards

First American Home Buyers Protection

Midlothian

Mary DykstraMKB, Realtors

Roanoke

Brad BolandJobin Realty

Reston

Bob AdamsonMcEnearney

Associates, Inc.McLean

Virgil FrizzellLong & Foster

Real EstateHerndon

Sherry BaileyCentury 21 New

MillenniumStafford

R. Scott BrunnerVirginia Association

of Realtors®

Glen Allen

Mary Ann BendinelliWeichert

REALTORS®

Manassas

Vic CoffeyRe/Max All Stars

RealtyDaleville

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.

Candice BowerMcEnearney

Associates, Inc.Leesburg

Robyn BurdettRe/Max Allegiance

Reston

David CharronMRIS

Rockville, MD

Commission ExpressFairfax

Benton DownerDowner & Associates

Charlottesville

Billy CoonsRealty Executives

Virginia Beach

Sandee Ferebee*Prudential Towne


Claire Forcier-RoweColdwell Banker Elite

Fredericksburg

Bev FrowenLong & Foster

Real EstateManassas

Bill GearhartColdwell Banker

TownsideRoanoke

George GrundyGeorge Grundy & Associates Realty

Petersburg


Vinh NguyenWestgate Realty

Group, Inc.Falls Church

Susan OhNew Star Realty

& InvestmentFairfax

Anne RectorLong & Foster

Real EstateAlexandria

Margaret HandleyM.C. Handley, Ltd.

McLean

Nathan HughesBandazian & Holden

Richmond

Pat KlineAvery Hess Realtors®

Springfield

Susan MekenneyRe/Max Allegiance

Alexandria

Vonda LaceyLacey Real Estate

GroupFishersville

rpacreport

Kit HaleMKB, Realtors®

Roanoke

Lizzie HernandezRe/Max Regency

Manassas

Tom InnesRe/Max

CommonwealthRichmond

Donn IrbyRose & Womble

RealtyChesapeake

Kathleen KennedyRe/Max Regency

Manassas

Jody KormanRe/Max


Betty KingeryMountain to Lake

RealtyRocky Mount

Richard LimrothRe/Max Valley

Realtors®

Roanoke

Shane McCullarKeller Williams Realty

Alexandria

Jay MitchellPrudential Towne


Percy MontagueMontague, Miller

& Co.Charlottesville

Lee OdemsBuyer’s Advantage

Real EstateWoodbridge

Forrest Odend’halLong & Foster

Real EstateGainesville

Gail PenmanWilliam E. Wood &

AssociatesVirginia Beach

Lonnie PlasterLong & Foster

Real EstateManassas

Gwen Pangle1757 Real Estate

CompanyLeesburg



Fetneh SchachtLong & Foster

Real EstateVienna

Shanna WisemanParr & Abernathy

Hopewell

Trudy SeveraLong & Foster

Real EstateReston

Cindy StackhouseCentury 21 Stackhouse

& AssociatesDumfries

Thomas “Mack” Strickland, Jr.

Strickland RealtyChester

Karen TrainorWeichert

REALTORS®

Fairfax

Zinta Rodgers-RickertRe/Max Allegiance

Fairfax

Henry ScholzHall Associates, Inc.

Roanoke

Karen SmithRe/Max


Kimber SmithPrudential Towne

RealtyWilliamsburg

Pat SuryMontague, Miller

& Co.Charlottesville

Joe SutliffRe/Max All Stars

RealtyDaleville

Susan SpellmanLong & Foster

Realtors®

Williamsburg

Wes StearnsMO Wilson

Properties, Inc.Woodbridge


STERLING R ASSOCIATIONS ($1,000–$2,499)

Christine ToddNorthern Virginia

Association of Realtors®

Fairfax

Virginia Peninsula Association of Realtors®

Hampton

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.

IS YOUR REAL ESTATE BUSINESS WORTH A NICKEL?

www.VARealtor.com/RPAC

The REal Show is Virginia’s largest event for real estate professionals. When you’re there, be sure not to miss two incredible keynotes.

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

And she’s very good at her job.

Janik is the expert in real estate law, from agency and advertising to property manage-ment and websites. And if you’ve heard her speak you know why we grabbed her for a keynote.

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

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

Two great speakers. One great show.

Mark your calendars: Oct. 7-8.

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

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

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

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

October 7 and 8, Virginia Beach. Just follow the crowd.

The REal Show’s got you covered.

VisiT Our expO to meet these and more great exhibitors.

THANK YOu, spONsOrs

2-10 Home Buyers Warranty www.2-10.com

Access National Bankwww.accessnationalbank.com

American Home Shieldwww.ahswarranty.com

Atlantic Bay Mortgagewww.atlanticbay.com

Bath Fitter & Kitchen Saverwww.bathfittermidatlantic.com

Blu Skyy Realtywww.bluskyyrealty.com

Centralized Showing Servicewww.showings.com

Century 21www.century21.com

Cox Communicationwww.cox.com

EXIT Realty Virginiawww.exitviriginia.com

First American Home Buyers Protectionwww.firstam.com/warranty

HMS Home Warrantywww.thinkhms.com

Homes.comwww.homes.com

JESwww.jeswork.com

Kathy’s Accessories

Liberty Mutualwww.libertymutual.com

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

Magnets USAwww.magnetsusa.com

MRISwww.mris.com

My Marketing Matterswww.mymarketingmatters.com

Old Republic Home Protectionwww.orhp.com

Outstaffing, Inc.www.outstaffing.com

Pearl Insurancewww.pearlinsurance.com

PNC Mortgagewww.pncmortgage.com

Re/Maxwww.remax.net

The Real Estate Bookwww.realestatebook.com

Real Estate Information Networkwww.reinmls.com

RealFocuswww.realfocus.com

Realty Executiveswww.realtyexecutivesva.com

Samuel I. White, PCwww.siwpc.net

Scentsy Wickless Candleswww.inascentfun.scentsy.us

SentriLock, LLCwww.sentrilock.com

Skymie Video Tours, LLCwww.vavideotours.com

Suprawww.supraekey.com

Systems Engineeringwww.seisystems.com

Tennessee Valley Signswww.tennesseevalleysigns.com

UPSwww.ups.com

VHDAwww.vhda.com

zipLogixwww.ziplogix.com

Cox Communicationwww.cox.com

Samuel I. White, PCwww.siwpc.net

Liberty Mutualwww.libertymutual.com

RealFocuswww.realfocus.com

Platinum Sponsor: Hampton Roads Realtors Association®

www.centerforrealestate.com

Platinum Sponsor: Century 21www.century21.com

Platinum Sponsor: Alpha College of Real Estatewww.alphacollegeofrealestate.com

Platinum Sponsor: MRISwww.mris.com

Gold Sponsor: VHDAwww.vhda.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

39Volume 18 ● Issue 2 mARCH/APRIl 2011

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, our receptionist is available from 9:30 a.m. to 3:45 p.m.

For membership and dues questionsAsk for Amy Hafermembership Records manager [email protected]

If you’d like to have someonespeak at your association or brokerageAsk for lynne Wherry Director 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 standards and the Code of Ethics Ask for Blake Hegemanlegal [email protected]

If you need to know about professional designationsAsk for Kim martin, 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 steve DaleyDirector of sales & marketing [email protected]

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

To reach our Legal Hotline Call (804) 622-7955*

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

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

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

T-Mobile, wireless service

UPS, shipping and more

Zipform, electronic forms solutions

John Dickinson, CCIM, GRI President Hall Associates, Inc., union Hall(540) 982-0011 [email protected]

Trish Szego, CRB, CRS President-electeRA-elite Group, Haymarket(703) 359-7800; [email protected]

Mary Victoria Dykstra, ABR, CRS Vice President mKB ReAlToRs®, Roanoke(540) [email protected]

John Daly, SFR Treasurer Rose & Womble, Virginia Beach (757) 486-8800 [email protected]

Cindy Stackhouse, GRI Immediate Past President Century 21 stackhouse and AssociatesPrince William(703) 580-0880; [email protected]

R. Scott Brunner, CAEChief executive officer (804) 264-5033; [email protected]

VAR Member Service Partners

VAR 2010 Leadership Team

(804) 264 -5033our phone number is

contactvarWe’D loVe To HeAR fRom You

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

See your member discounts at www.VARealtor.com/ discounts


As first pArAgrAphs go, which do you prefer?

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

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

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

Both are true. I like ‘A’, espe-cially the last sentence. It’s a grab-ber. But for Realtors®, ‘B’ should be the more worrisome.

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

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

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

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

wealthiest Americans”: those earn-ing more than $250,000 (married). To quibble about whether $250,000 means “wealthy” — as many are doing — is to miss the point.

What’s at stake here is your livelihood.

What happens if the MID is eliminated? Phased out? Or even reduced? Capitalize the value of MID for the first five years of a loan, and it’s easily the difference in the ability of a young couple to buy versus rent. Take away the tax incentive, and NAR says all home values could fall by 15%. Suddenly many more of us are underwater, stuck in homes we can’t afford to sell.

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

So brace yourself for the fight of your career. It’s coming. We’ll be allocating all necessary resources — our collective voice, our lobbyists and policy experts, and yes, RPAC — to this challenge. But the one voice we’ll need most is yours. l

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

lastwordSCott BRUNNeR

Bracing for the fight of your career

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

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

Scan and find out how

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

More Support to bring you More Success

Prudential Carruthers REALTORS® is YOUR Career Company. Why?

• Unparalleled Agent Services that will increase your income.• TeamBuilder bonus program for helping the company grow.• National Brand with 98% brand awareness.

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

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

Tammy McIntyreAgent Services Regional ManagerTammy brings over 20 years of real estate experience to this new position. Have questions about our agent services? Tammy allows agents to do what they do best…list, show and sell by educating them on our fantastic company programs. Office visits, sales meetings and one-on-one assistance are just a few of the ways she interacts with our sales professionals.

M A R Y L A N D O F F I C E SAnnapolis 410-266-0600Bethesda 301-961-6000Canton 443-769-1700Crofton 410-721-3711Elkton 410-398-2401Federal Hill 410-547-5700Gaithersburg 301-948-4811

Harford County 410-515-5300Howard County 443-325-7890Ocean City 410-524-7000Ocean City West 410-520-2600Ocean Pines 410-208-3500Olney 301-260-7700Pikesville 410-484-8322Roland Park 410-464-5500

Salisbury 410-912-4700Severna Park 410-647-8000Silver Spring 301-879-2600Towson 410-828-4700V I R G I N I A O F F I C E SAlexandria 703-836-1464Fairfax/Oakton 703-691-7653Hamilton 540-338-4171

Lake Ridge 703-497-7788Leesburg 703-777-1250Manassas/Gainesville 703-396-6000Vienna 703-281-8500Winchester 540-722-9300WASHINGTON D.C. OFFICESCapitol Hill 202-393-1111Uptown 202-243-4200

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

Find out if Keller Williams is right for you as an agent or as an owner.Call or email your confidential inquiry today!

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richmond North/Hanover, richmond West, stafford, Tysons/Vienna, Virginia Beach/Hilltop, Virginia Beach/Town Center, Winchester

each Keller Williams® realty office is independently owned and operated. | if you are currently a franchise owner, please disregard as this is not intended as a solicitation.

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Documents

2011_3-4_Commonwealth