Cracking the Code
June 3rd, 2009 categories: Real Estate News, Relocating
“It is not only what we do, but also what we do not do, for which we are accountable.“
Moliere
Have you ever tried to improve something? Put something together? Assemble an item? Did you remember to follow the directions? Frequently, the directions are more of an afterthought instead of the “how to” they’re meant to be.
Unfortunately, failure is an important part of the road to success. But, if you’re like me, one of your first lessons in failure occurred while attempting to assemble that store bought item you or someone in the family had to have. Probably, in the rush to put together the item, directions were NOT followed. (Who needs them – right?)
Real estate practice carries with it a professional responsibility. Our responsibilities are outlined in the Code of Ethics which serves as the “golden thread” binding us together as a profession. They are our “directions.” In Betty Jasmund’s estimation, they’re more than that, they are a gift.
As the National Association of Realtors publication, Professionalism in Real Estate Practice specifies, the Code outlines our ethical obligations, based upon moral integrity and competent service to clients and customers, and dedication to the public interest and welfare. While the Code of Ethics provides an excellent set of rules or guidelines, what are they worth if they aren’t followed, or Code violations not reported? Or, in some cases, for various reasons, not punished?
Ms. Jasmund, the Fredericksburg Area Assocation of Realtors, Professional Standards Co-Chairman (and one of the wisest Realtors I know), recently authored an article, Why Filing a Complaint Against an Agent is Good for Everyone’s Business, on the value of the Code, in the Association’s latest quarterly publication, FAAR Side. While the entire commentary was instructive, perhaps Ms. Jasmund’s most significant words were:
“….in 1978 by William North, EVP and General Counsel of NAR, he stated that “the integrity of the Code and the value of its vision of the real estate industry depends utimately upon its use.” So if we don’t use it we diminish our ability to monitor our industry. By using the Code of Ethics we present a vision of our profession as it could be and should be.”
The Code of Ethics has had a few changes since its origination in 1913, but its purpose has been the same; to provide clear and conspicuous guidance to Realtors about how their profession should be conducted. Its 17 Articles leave no doubt as to the Do’s and Don’ts of how the profession should be practiced. But, if you were to ask a Realtor you met on the street to cite any one of the Articles, they probably couldn’t. They might be able to tell you the intent of the Code (well, at least, I hope they could), which to them would probably mean “to act in the best interest of the client, and to act with integrity”. But, other than that, who knows what they’d say.
That begs the question, “Should agents have better than a faint idea of what their operating guidelines are?” And, if so, how well should they know the Code? Well enough to know a Code violation if they witnessed one?
More importantly, as it relates to Ms. Jasmund’s point, how can we use the Code more effectively to police our profession? In our efforts to improve real estate practice by improving pre-licensing requirements and establishing a mentoring program, shouldn’t we begin by using the one valuable resource we already have, our Code of Ethics? It is our blanket of accountability. In Stephen Covey’s words, “Accountability breeds response-ability.” And that is exactly what we’re looking for.
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When Anywhere Just Won’t Do
May 6th, 2009 categories: Entertainment, Relocating
Do you ever find it difficult to find a good place to unwind? Especially, after a long day at the office? Or at home? More and more folks, having seen the eye catching facade, are stopping into to The Fredericksburg Pub.
Opened at the first of the year, the Pub has gotten rave reviews. One of its first published reviews was noted in the Fredericksburg blog, InTheBurg:
“Today Gail took me out to “The Fredericksburg Pub” for lunch. She had the pub burger, I had the bronzed fish sandwich. Both came with fries. I also added a Boddingtons (on tap) to the meal. This place is going to give other area restaurants a run for their money for the following reasons
a) Good pub fare
b) Fast service, I mean fast for everything, from getting our order, to bringing our drinks, to having the food in front of us.
c) Nice sized proportions and good prices
d) A Variety of flat screens showing football (American football) and football (soccer)
e) THEY ARE SMOKE FREE
f) Attractive and unique uniforms”
Having enjoyed the Pub a time or two already, I’d have to echo the reviewer’s comments. While the novelty of the design and woodwork might impress you during your initial visit, the quality of food and service will beg you to return.
For those interest in a pint or two, you’ve found the mother lode. There are more beer types, bottled and on tap, than one can imagine. Whether it’s a dark brown Irish ale, a Double Chocolat Stout, or a plain old domestic brew, there’s plenty to choose from.
The menu’s wide array of choices not only features unique dishes like the Cotswold Chicken Sandwich and Guiness Brownie Sunday, the normal British fare of Shepherd’s Pie or Bangers & Mash, but also many other favorites to pick from.
The Fredericksburg Pub isn’t your normal night out. The character of the place is one you’ll remember. The ceiling is a bit higher than your traditional British Pub, but just about everything else you’ll find will leave you coming back for more.
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How Firm Is Your Foundation?
April 29th, 2009 categories: Real Estate News, Relocating
So, you’re looking at a home you’re considering purchasing, and you’ve found a couple of cracks in the home’s foundation.
While we might think this is the exception, it is often the case. We’ve found a perfectly good home, but we have questions about the integrity of the cement foundation. Frequently, the cracks are small, but, every now and then, the cracks are much bigger. Which foundation cracks pose a problem? All of them? Any of them?
First, concrete cracks sooner or later. Yes, all concrete cracks. Many cracks are too small to see without the aid of good light and close proximity. However, in most cases, for cracks in excess of 1/4 inch, further investigation is probably warranted. A good source for expert advice is either a home builder/contractor, or, more specifically, a structural engineer. These professionals can ascertain how serious the foundation problem is.
Secondly, there are many factors that cause concrete to crack. These include:
- Settlement – foundation settlement occurs when ground around the foundation “settles” or shifts, caused by tension or stressors in the environment.
- Corrosion – When the steel rebar corrodes inside of concrete, it expands and may cause the surrounding concrete to crack.
- Water – water lines that leak can result in soil movement/erosion beneath the foundation. Without the support of the soil, the foundation often cracks.
- Drying Shrinkage – the combination of concrete and water eventually hardens and cures. The drying out of the concrete results in shrinkage, and frequently, cracks.
REPAIRING CRACKS
- Minor Repairs
Small cracks are easily repaired with off-the-shelf crack fillers from your local Lowes, Home Depot or Walmart. Many opt for hydraulic cement for filling. Their purpose is to seal the crack to prevent moisture and air from moving into the concrete, causing more cracks.
- Major Repairs
If you’ve decided to take on the job of repairing good sized cracks, one of the most popular repair methods is the use of polyurethane foam. This foam is injected into the basement crack in a liquid form. This allows a gentle and slow filling process of the basement crack that will completely fill the crack. The polyurethane foam forms a strong bond to the concrete. This is often the method many choose for the repair. Due to the foam’s expansion and penetration, the seal that develops is about as fool proof as it gets. However, if you’re not one willing to Do-It-Yourself, then, please call an expert. Remember, large foundation cracks are serious and can result in major damage to a home. They aren’t to be taken lightly.
A structural engineer who specializes in residential foundation issues is an important resource to use for questions concerning major foundation problems. Unlike a salesman, the engineer has no product to sell. Additionally, their expertise is exactly what’s needed to identify the cause of the crack, and subsequently, to identifify the proper method of repair.
Home foundation faults are common. Most faults are minor and are simply a result of the settlement of a supporting structure like soil or another supporting element. These cracks are frequently easily repaired using off-the-shelf fillers. However, sometimes, the repair requires more than just a simple fix. Since homes are built from the ground up, there’s nothing more important than having a firm foundation. Without it, you’re just asking for trouble.
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Aren’t Foreclosures Easy To Buy?
April 18th, 2009 categories: Military Installations, Real Estate News, Relocating
Have you ever heard the bar bell? The one that rings around closing time for last call, and as a reminder that it’s time to pay the tab. In the U.S., the bell is oftentimes used to signify a generous tip.
In the home foreclosure business, there aren’t any bells to ring, but there are an abundance of great deals to be had, if only ready, willing and able buyers have the necessary tools to avoid the pitfalls.
There are a number of roadblocks to purchasing a foreclosed home. They include:
- The Bank handling the property. As most Realtors can attest, this is THE most difficult hurdle in the transaction process. The bank is THE BIG DOG. They literally control the entire transaction. Unfortunately, when, what, and how they process a foreclosure is less than transparent. When they speak, we all listen attentively.
- Many agents haven’t been trained in the finer points of listing or buying REO (Real Estate Owned – by banks or lenders) properties. As a result, one side of the transaction never gets any traction, and unfortunately the clients are left holding….nothing.
- Buyer expectations aren’t realistic. As I’m reminded from time to time, “Disappointment is the result of expectation. If you have no expectation, you won’t be disappointed.” Foreclosed properties can be a great deal, but they are purchased, “As Is”. According to the Northern Virginia Contingencies/Clauses Addendum to the Sales Contract, that meaning is fairly clear:
“The seller makes no representation or warranty, express or implied, as to the condition of the Property, or any equipment or system contained herein.”
Pretty clear, don’t you think? Unfortunately, many purchasers don’t feel that way. Despite the “As Is” clause, they want guarantees. So, many resort to home inspections as a condition or contingency in the contract. While many of these begin as “for informational purposes only”, before it’s all over with, they’re used as leverage in the transaction. And, the good news is, as this chapter in the mortgage mess has evolved, so too has the attitude of many banks in attempting to get these transactions closed. What banks often refused to repair/replace two years ago when the mortgage dominoes began to tumble, are now often given a thumbs up when requested by the purchaser. So, as they say, you never know unless you ask.
4. Lastly, many will argue that today’s market is the polar opposite of what it was in 2003-2005. However, there is one striking similarity to those days that makes buying a foreclosure a challenge; multiple offers. Everybody wants a bargain, especially investors. So, not only do prospective home buyers have the normal ”other buyers” to compete with, they also have the bargain hunter experts, whose FULL-TIME job is to purchase distressed properties.
So, facing all those challenges, how does a buyer compete?
- The best way to buy a home is to use someone who has the expertise. Yes, a real estate agent is probably a good start. But, how about one that’s had some experience or training with foreclosures and short sales. Both of these types of transactions require more than a passing understanding of what those terms mean.
- Catch the properties AS SOON AS they hit the market. If you don’t, another buyer will.
- Trust your agent. If you’ve done your due diligence in selecting your agent, and discussing your needs, then leave it in their hands. It is what they are trained to do!
- Go in with your eyes wide open. It not only improves the odds of success, but minimizes any unnecessary worry and disappointment.
Are foreclosed properties easy to buy? If you’re fortunate, perhaps. But, more than likely, if it’s a bargain property you’ve got your eyes on, you’re not the only interested party. So, do your homework first. Have realistic expectations. Enlist the aid of a knowledgeable, experienced agent that’s worked some foreclosed property transactions. And lastly, you might want to get ready to rumble!
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Latest Local Housing Data
March 31st, 2009 categories: Market Trends, Real Estate News, Relocating
The latest housing inventory numbers for the local area are:
FAUQUIER COUNTY and the CITY OF FREDERICKSBURG
SPOTSYLVANIA and STAFFORD COUNTIES
Days on Market (DOM) numbers have remained fairly consistent as we head into Spring. With buying season in full swing, next month’s indications should give us a better picture of what’s in store for this year.
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HOME Relief for the TROOPS
March 30th, 2009 categories: Finance, Real Estate News, Relocating
Have you heard of the Housing Assistance Program (HAP)? Most of us haven’t. Why would we?
HAP is a Department of Defense (DoD) program to assist federal personnel who are stationed near an installation scheduled for closure or realignment, who, no fault of their own, are unable to sell their homes under reasonable terms and conditions. The good news is, the program has expanded.
The newly signed American Recovery and Reinvestment Act of 2009 expands the HAP program. Not only does it cover personnel impacted by the Base Closure and Realignment Commission (BRAC), but now has expended to include:
1) Service members and Defense Department and Coast Guard civilians injured, wounded or ill in the line of duty during a deployment, with at least a 30 percent disability rating determined by defense or Veterans Affairs officials, who have relocated or will relocate for medical treatment or due to medical retirement.
2) Surviving spouses of service members and Defense Department and Coast Guard civilians killed in the line of duty during a deployment, or who died from an injury or illness incurred in the line of duty during a deployment. Survivors must relocate within two years of the death to qualify.
3) Service members under PCS orders to a duty station outside a 50-mile radius of their current station. The primary residence must have been purchased by the owner before July 1, 2006, and sold between July 1, 2006, and Sept. 30, 2012. The reassignment must have been ordered between Feb. 1, 2006, and Sept. 30, 2012. Defense officials can designate earlier end dates.
4) Service members and civilians who must sell their homes to relocate because of 2005 Base Closure and Realignment Commission actions during the current housing market crisis, without tying the decline in home values to BRAC. Under current law, the Homeowners Assistance Program assists BRAC homeowners only when it can be shown that declining market value in an area is a direct result of a BRAC-related action.
For many military personnel, this additional coverage is a sight for sore eyes. Those who purchased during the home price run up that went amok from 2003 to its zenith in the summer of 2005, and, are now due to rotate again, are between a rock and a hard place. In most locations, home values have fallen precipitously since 2005. Additionally, many home prices have decreased 35% or more. Financially, selling is not an option. Instead, many home owners have decided to rent out their homes. Sometimes to the tune of a loss of $500 - $800 dollars a month. But, how long can any member of our military afford to lose that kind of money?
For uniformed personnel, if you haven’t already, take the time to learn about what the Housing Assistance Program has to offer. According to the U.S Army Corps of Engineers contact I talked to last week, the program should be off the ground during the next month or so. If you’re not in the market to sell your home, you probably know someone else in uniform who is. Pass the word. Let them know where to find out about the program. This is a good place to start:
For more information about benefits, eligibility, programs and application procedures, contact:
Homeowners Assistance Program
Attn: RE-AH
P.O. Box 889
Savannah, GA 31402-0889
800-861-8144
The program is being administered through the regional U.S. Corps of Engineers regional offices. Already, they are being flooded with applications for the program. Packages are being accepted and processed in the order received. They will begin processing the packages as soon as the Office of the Secretary of Defense (OSD) gives the go ahead, which is expected in late April or early May. So, in other words, RUN, and don’t walk to the nearest regional office if you’re interested in participating in HAP!
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