Reforming Pre-Licensing Requirements for Real Estate Agents
May 27th, 2009 categories: Military Installations, Relocating
In this second of a four part series on Improving the Practice of Real Estate in the Commonwealth of Virginia, we’ll begin the look at reformation, appropriately, at the beginning. In other words, where Realtors receive their pre-licensing training or instruction, the traditional classroom coursework that must be completed prior to testing by the state for a Realtor’s license.
Current Requirements
As stipulated by the Virginia Real Estate Board (VREB), and set forth in the Virginia Code, § 54.1-2105, pre-licensing education requirements for those seeking a real estate license are:
1. Every applicant for an initial license as a real estate salesperson shall have:
a. At a minimum, a high school diploma or its equivalent; and
b. Completed a course in the principles of real estate that carried an academic credit of at least four semester hours, but not less than 60 hours of classroom, correspondence, or other distance learning instruction, offered by an accredited university, college, community college, high school offering adult distributive education courses, or other school or educational institution offering an equivalent course.
In other words, to legally practice real estate in the Commonwealth of Virginia you need:
- 60 hours of classroom instruction (you actually don’t have to be IN the classroom – online courses meet the requirement)
- Passing a written examination.
- Oh, I almost forgot, you also need a high school education, or its equivalent.
So, having passed the state test, without having handled a contract, toured a home, negotiated a contract term or clause, or spoken to a client, a brand new licensee can “practice” real estate. Is that adequate preparation to carry out a responsibility involving hundreds of thousands of dollars? Is there another profession whose qualifications are as minimal?
Can you imagine a surgeon performing surgery without having gone through the steps a few times, not to mention hundreds of times, prior to going solo? What about obtaining a driver’s license? How many practices has the student driver had before they are operationally ready? Before they are licensed?
One might argue that those are poor comparisons since a lack of adequate training or preparation in those professions might lead to death, whereas nothing that extreme might occur as a result of an error in a real estate transaction. And, they have a point. It may not result in a death, but incompetence and real estate “malpractice” could certainly costs tens of thousands, if not hundreds of thousands of dollars.
If you’re not satisfied with the comparison with a surgeon or a driver of a vehicle, what about teachers? Are they licensed to teach without student teaching many, many times while being supervised. What about an accountant? An architect? A bank teller? In each case, minimal hands on “real life”, supervised training is required prior to the ”students” being given the OK or being certified to operate on their own. Likewise, should this be required in our training?
In our profession of real estate, one may ask if this should be a pre-licensing criteria, or is it more suitably done after licensing, but as a first step of a mentoring program Realtors participate in once licensed and prior to operating on their own under the Broker of their choosing. Hmmm…that’s something to consider. For now, let’s begin by looking at improving pre-licensing training with a requirement of 60 college credit hours.
Learning is a never ending process. While there are many constants in a real estate transaction, there are some variables that may change depending upon the client, brokerage firm, financing involved, and other related factors. It’s important too remember that a standard curriculum can’t cover all the possible contingencies or circumstances a practitioner might face, however, it certainly should include many.
Current pre-licensing coursework provides students with little practical instruction of how to do their job. Its intent seems to be one of preparing students to pass a written test of concepts instead of preparing them to practice real estate. But, in examining how Realtors are trained prior to being certified or licensed to practice, maybe we’re not asking the right questions. Maybe we the should be asking, “What should pre-licensing instruction be designed to do?” What outcome are we looking for? Shouldn’t it be designed to prepare a candidate to do their job? If not, why not? For the sake of this series of articles, let’s assume that’s the objective. We want to prepare Realtors to do their job properly, plain and simple. In other words, to carry out their job related tasks in a “professional” manner.
Proposed Requirements
- A first step in better preparing our prospective real estate agents for their job begins with dramatically increasing their pre-licensing requirements. This can be accomplished through augmentation of the depth and breath of the classroom curriculum. While there is no substitution for experience, the increased use of case studies, and a more detailed examination of contracts and real estate practices, to include real estate finance among other topics, will provide candidates with a better base of practical problems and solutions to learn from.
- To adequately prepare Realtor candidates, the pre-licensing curriculum should be expanded from the current 60 classroom hours to 60 college credit hours. Not only would these college credit hours substantially increase students exposure to real estate material, but, doing so would also provide them with college level credit. In accordance with state guidelines, the specific content of the real estate courses “shall be in real estate brokerage, real estate finance, real estate appraisal, real estate law, and such related subjects as are approved by the Board.” Incorporated in this coursework should be 10 hours of “hands on” practice. This practice includes interaction with clients, both buyers and sellers, writing contracts, negotiating terms, and experiencing the entirety of a real estate transaction from beginning to post closing follow up.
While current pre-licensing training material provides students with a familiarity of real estate procedures (concepts can be identified if seen on a test), it does little to prepare these aspiring agents for practical problems they’ll face in a typical transaction. Increasing classroom time, improving the course material, and providing “hands on” practical experience with real estate trasactions, are three steps that need to be taken in order to improve the pre-licensing requirements for those training to be real estate agents.
Improving pre-licensing requirements for real estate agents is an initial step in attempting to improve our profession. By providing new agents an improved foundation to build on, they’ll be better prepared for actual real estate practice and carrying out their job. But, while they can now legally practice, how capable are they? Probably capable enough to be dangerous, but not capable enough to be on their own. And, that’s where the second step of the improvement process comes in, the use of a Mentoring program.
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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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Fredericksburg’s Tax Man
May 4th, 2009 categories: Real Estate News
Balancing a budget is one task that most public officials seldom look forward to. It requires making choices. Often, tough choices.
As reported in the weekend’s Free Lance Star, Fredericksburg’s recent budget proposal by the City Council indicates the real estate tax rate for the city will increase from 56 cents to 70.5 cents per $100 of value next year. If the proposal is successful, that would mean the tax on property valued at $100,000 would be $705 dollars instead of the previous rate’s tax yield of $560. While that appears to be a sharp increase in what property owners will pay in real estate taxes, that’s not the entire story.
Real estate tax rates normally fluctuate depending upon the variance or change in the assessed value of real estate in the county/city. What is assessed value? Simply put, it is a dollar value assigned to a property for the specific purpose of assessing or calculating taxes. In Fredericksburg’s case, there was an overall decrease of 24 percent of single family residential property values. To compensate for the decrease in real estate property values and, as a result, lost revenue, the tax rate had to be increased to gain needed revenue to meet budget expenditures. In addition to meeting the budget costs, the City Council decided to ”plus up” the tax rate to bring in additional revenues as well. That to the tune of $1.6 million.
That additional money may be where the Council runs into a bit of trouble. Many citizens understand the balancing act between assessed value and the real estate tax rate. However, the tax rate increase to generate new revenue seldom passes without opposition. Fortunately, citizens can voice their concerns, pro or con, at a public hearing, scheduled at City Hall, on June 9, at 7:30 PM. For those who enjoy a bit of back and forth with elected officials, you might want to mark your calendar.
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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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Custom Made For Vets
April 22nd, 2009 categories: Finance, Real Estate News, Relocating
Locating pertinent information on loans, and specifically, home loans, is an exercise every home buyer attempts in preparing to buy a home. For military personnel and veterans, a Veterans Administration (VA) loan is often the vehicle of choice. But, is it the best choice for Vets?
The folks at VAMortgageCenter.com do an excellent job of providing veterans with the information they need to make an informed decision about VA loans and their value. As a matter of fact, they’ve provided me with a brief article outlining the benefits of the loans. Using accurate, factual data is vital to making an informed decision. And, that’s what the article below provides:
Whether you’re getting back from deployment and you’re ready to make that move from the barracks to homeownership, a little one has arrived and your family needs more space, or you’re a seasoned homeowner and you’re looking for the best loan product to fit your needs, the VA Mortgage Center. Com will help you secure affordable financing with a VA loan.
The VA loan is the best product available for active duty members and veterans purchasing a home because of its No-Money down requirement, one of the last mortgage products available to offer such financing. In addition to No-Money down, the VA Loan offers:
è Relaxed Credit Requirements
è Minimal out-of-pocket expenses
è No Private Mortgage Insurance
è No Pre-Payment Penalties
è VA Loans are Assumable
You can also use the VA Loan to refinance your current home, regardless if you’ve used the VA Loan before. Examples of using the VA Loan to refinance:
è Streamline a current VA loan to lower interest rate
è Consolidate a conventional mortgage or second mortgage into a VA Loan
è Take out cash from home equity to eliminate other debt
è Take out cash from home equity to make home improvements
è Transition from an Adjustable-Rate Mortgage into a Fixed-Rate VA Mortgage
While the VA Loan is designed for Active Duty Service Members and Veterans, there are eligibility requirements:
è 24 Months Active Duty
è 90 days of service (wartime) 181 days of service (peacetime) for veterans who served after Sept. 15 1940
è National Guard members completed six years of service
è All members must have been discharged under conditions other than dishonorable
VAMC, one of the nation’s leading VA Lenders and an A-Rated company by the Better Business Bureau for its overall dedication to customer service and ethical lending practices, has a skilled team of VA Specialists who will take you through the VA loan process.
“I could not have asked for a better experience then the one you and VA Mortgage center has given me. I do believe your service is the reason I got into my home and without it I could not have bought a house… Thank you for serving the American Veteran.”
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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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