Jim Rake

Old Town Fredericksburg is one of the Commonwealth's most popular tourist locations. Its "quaintness" factor makes it a "must do" when visiting this region. With the historic sites, featured attractions, brick walk-ways bordered by stores and restaurants, Old Town is full of attractions for the entire family.

While reproducing the originality of Fredericksburg isn't possible, recreating its atmosphere is.

Bringing the old town atmosphere into the present is a popular trend that's manifested itself in the development of new towns across America since the 1980s. This New Urbanism, the urban planning and and real estate development movement which arose in the last couple of decades, has made its mark recently in New Town Williamsburg, and is the model for Spotsylvania's current development, Courthouse Village.

Williamsburg's pedestrian and consumer friendly new development has already attracted an abundance of businesses and property buyers. Its unique combination of offices, shops, entertainment, and housing options offers other area alternatives than those of the historical section. In Spotsylvania, developer Bill Vakos III, an executive with W.J. Vakos & Co, has begun development of something similar.

Vakos' plans call for a town square with concerts and other entertainment. He wants a grocery store, gas station, numerous restaurants, a Civil War themed museum and a 38-room hotel within the 12 blocks of sidewalks. With construction underway, plans are to complete the development during the next decade. In line with the objectives of new urbanism, the goal is for residents, if they so desire, to live comfortably without an automobile, where most of the daily activities are located within walking distance and are connected by attractive streets and public spaces.

A community's allure is often directly related to quality of life. New developments like those in Williamsburg and Spotsylvania Village seek to meet the twin goals of building convenience for consumers while responsibly cultivating the areas resources. For any community, or village, those seem like objectives worth waiting for.

To Continue Reading this Article, Click Here: It Takes A New Village

Have you ever heard the popular phrase, "Men are from Mars, Women are from Venus" when discussing the differnces between men and women? Of course, as many people know, that phrase comes from the title of the best selling book by John Gray, written in 1992. While the title is often remembered, the subtitle, which is the essence of Gray's book, is rarely, if ever cited. That is, "A Practical Guide for Improving Communication and Getting What You Want in Your Relationships."

The author's focus is on the differences between behaviors and desires of men and women. From there, the book centers on recognizing these differences and learning to communicate effectively to meet the needs of each party. Understanding the expectations of one another, and communicating each others' desires, are two keys to a successful relationship.

Yesterday, a fellow agent held me captive while recounting their latest adventure with a client of theirs, who had decided they wanted to "move on" and use another agent. In this case, the clients had informed the agent that they believed the agent wasn't meeting their needs. So, now, it was time to find another agent, one that would do a "better" job of keeping them informed of "all of their options." According to the agent, the clients talked to the husband's brother who provided them with valuable information their agent neglected to tell them. From what my fellow agent said, the client's brother provided a layman's explanation of the need to make "back up" offers on properties they liked. Specifically, back up offers on Short Sale properties they liked.

Well, for those of us that have handled a few Short Sales - back up offers on short sales, while doable, probably aren't the easiest road to success. By the way, did I mention, the client's brother has never had any training in Real Estate? None, zero, zip! Also, these clients wanted to be in a house as soon as possible. So, as many of you know, ASAP and short sale are mutually exclusive. In other words, you can't get there from here.

After listening to the agent's tale, I had to ask if they began their relationship with their buyer by doing a "needs assessment." Were expectations discussed before they began to look for homes? If not, why not? As happens in many real estate relationships, especially with buyers, the foundation that is necessary for a successful relationship is never established at the outset. In the rush to run out and look at homes, the clients, and the agent, sacrifice the most important step that's vital in establishing a successful relationship - business or otherwise. And when things in the relationship begin to break down, it's usually due to a lack of proper preparation.

So, what should that initial needs assessment, or discussion of expectations consist of?

1. Clear statement of clients and agents expectations.

2. Ground Rules. The What, Where, When and Why of the relationship. This simply means a review, or preview of what the normal operational parameters are. With expectations already discussed, this clarifies how you'll look for homes, who will do what, when various parts of the transaction will take place, where things will take place, etc. It's simply a way of providing a clear picture to the client of the transaction from the outset to the settlement table. No one likes surprises, an this should preclude that.

3. A discussion of a Realtors responsibilities and our of Code of Ethics. This isn't an in-depth conversation, but simply a reminder to the client of the professional they're relying on to make their transaction a smooth one.

Unmet client expectations are never helpful in business relationships. To avoid them, it's essential to clarify, from the beginning, in a manner understood by all, what's to be expected from all parties involved. While it may temporarily delay the buyer's house hunting road trip, it'll likely prevent misunderstandings or problems further down the line. And in a Realtor's business, where you aren't compensated until closing, getting there is worth the reward.

To Continue Reading this Article, Click Here: His Needs, Her Needs

The nationwide push to get the ear of elected officials found its way into Stafford on Independence Day. Like many local communities across the county, a T.E.A. (Taxed Enough Already) party took place at the Courthouse.

What began earlier this year, and significantly this Spring, on April 15th, that saw hundreds of thousands of citizens gather in more than 800 cities across America, to voice their opposition to what they characterize as "out of control" spending, has continued to gain traction, and is alive and well in the Stafford and Fredericksburg, VA area.

The local turnout was in the hundreds, and according to the organizer, Vince Ellis, that number was higher than expected. According to Ellis, the event was, "A celebration of the holiday as well as a grass-roots effort to send a message to Washington because they aren't listening to us."

While some critics have characterized the protest as strictly an anti-tax, conservative Republican movement, others refute the monolithic label. Instead, they argue, it is anything but partisan. It is simply anti-Washington, anti-spending, anti-big government, and has no party affiliation.

While some of these anti-tax protesters may find their inspiration from the original Boston Tea Party of 1773, they hardly look the part of those that cam before them. The colonists were revolting against unfair tax policies. Today's gatherings are just the beginning of a milder form of protest against what many see as runaway government spending and the threat of a greater tax burden.

So, if you've ever had the itch to get involved in a "movement", and your's is an anti-tax voice, this appears to be a local platform custom made for you.

To Continue Reading this Article, Click Here: How Much Tax is Enough?

The term "Short Sale" has become common place in housing markets over the past few years. Yet, for many, what a short sale is, and how it becomes a reality, is still a mystery. A short sale is a sale of real estate in which the proceeds from the sale are less than, or "short of", what's owed on the balance of the loan securing the property being sold.

The Good

At first glimpse, one might wonder why a lender would ever entertain such an arrangment, accepting less than what's owed on a loan. In most cases, the owner(s) are "upside down" with their mortgage. In other words, they owe more than their property is currently worth. While there are various reasons why owners are in their current distressed state, the good news is that banks have begun to embarace the short sale process. Foreclosing on properties isn't in anyone's interest - especially banks. According to the legal counsel for the Virginia Association of Realtors (VAR), the average foreclosure costs the bank approximately $65,000. That's not what they lose on the loan payoff. That is simply what it costs the bank to handle or manage the foreclosed property. For banks, avoiding foreclosure simply makes monetary sense.

Additionally, the Administration and Congress have moved to stem the foreclosure rate and make short sales a more standardized and acceptable choice for lenders. A push from lawmakers to improve and simplify short sales has encouraged banks to embrace this option for homeowners, avoiding further emotional and financial pain that would ensue if foreclosured on.

The Bad

From a Realtors point of view, handling a short sale transaction is never easy. On the selling side, there are two other major participants in the process, the homeowner (Seller) and the bank (Lender). Each of these bring with them potential problems. The good thing is, the homeowner is usually approaching the transaction as a motivated party. Unfortunately, that rarely seems to be the bank's case.

Complicating matters further is the lack of national standardized short sale procedures, and no mandated cummunication timelines between banks and realtors (who represent their clients). If there's anything more frustrating for the real estate community than their fruitless attempts to reach the proper point of contact at the bank when dealing with a short sale, I'm unaware of it. If the short sale cummunication and coordination process was designed any poorer, it would be DOA. But, fortunately, despite the piecemeal structure, many of the transactions do close....eventually. But, "muddling through" is no way to conduct business.

The difficulty in successfully executing a short sale is due to more than poor coordination and communication. Aside from these stumbling blacks, two other hurdles must be overcome. The first involves the banks, the other, the real estate community.

The Ugly

While we're almost four years into the Mortgage Meltdown, banks have yet to hire enough personnel to handle their short sale and foreclosure workload. We're routinely informed that negotiators and asset managers are beset with caseloads of 300 or more. With numbers like those, how can we expect success? Within the Realtor community, it isn't the numbers that are the problem, it's the lack of know how.

Many Realtors handling short sales or foreclosures lack the training needed to properly do the job. The Commonwealth of Virginia has no training requirement for handling these types of transactions. Many agents, if trained at all, do so after "muddling through" their first few such transactions. Wouldn't it be smarter to have the training prior to accomplishing the task? How can a professional do the job without knowing what has to be done? And, who is paying for the mistakes made along the way?

Both Short Sales and Foreclosures have excellent certification programs available. For the former, the Certified Short Sale Professional (CSP), and the latter, the Certified Foreclosure Specialist (CFS). But, unfortunately, many who should be taking these courses aren't.

Today, in many regions of the country, shorts sales and foreclosures account for more than fifty percent of real estate transactions. Luckily, there is an abundance of information on the subject available from lenders, the real estate community, and best of all, online. Time and experience has resulted in greater success in navigating each of these unconventional property sales approaches. But the players involved, and the processes, have miles to go before can begin to claim the process works well

To Continue Reading this Article, Click Here: Short Sales - The Good, The Bad, The Ugly!

For many of us, the current housing market feels alot like, as Yogi Berra might say, "deja-vu all over again." Five years ago, in the midst of the runaway market, many homes were on the market for less a day before we witnessed multiple offers presented to the seller. In hindsight, one might conclude that the market was "out of control."

Today's market landscape looks very similar. As they say, the players have changed, but the "song remains the same." Much like then, the multitude of today's bargains comes in the form of foreclosures.

While there's been much in the press about the the ugly side of foreclosures (owners destroying the property, evictions, mold, etc), many foreclosures on the market are in excellent condition. Very much like the condition they were in when purchased at the height of the market in 2004-2005. Yet, many of these properties are purchased for 35-50 percent lower than what the current owner paid for them. And, in a few cases, even cheaper. But, how do you find these properties before the competition? How do you level the playing field with the investors that have been in the business for years?

While there is no full proof method for success, there are three important steps that dramatically improve your opportunity to successfully purchase foreclosed properties.

The Steps to Success

1. Identify the property the first day it's listed for sale on the Multiple Listing Service (MLS).

Better yet, locate the property before its actually foreclosed on. many of these properties have been on the market prior to foreclosure, as a resale of short sale. If this doesn't result in a sale, they'll be ripe for the pickin' at the lower foreclosed price point. But, once they're on the market as a foreclosure, it is, as they say, "the early bird that gets the worm."

Seeing it on day one of its listing on the MLS probably depends on getting that information from your Realtor. So, hopefully, your Realtor has set you up with a direct feed of Foreclosures. Most MLS programs now offer the Foreclosure option. If that's the case, have your Realtor provide you an automated feed of new Foreclosures on a daily basis. While this step a must do if you expect to catch the listing on day one, the second step to successfully getting the foreclosure you want is equally important.

2. Strike quickly.

Submitting a contract as soon as possible is vital to getting your contract accepted. As I discuss with my buying clients, during the contract process, we take things one step at a time. Our goal is to "get to the next step." By that, I mean that we take things one step at a time. In the case of a foreclosure, we want to have the first contract submitted. The sooner we submit a contract, the less opportunity we give competitors to do the same. Multiple contracts are NEVER in the interest of the buyer. The preparation or due diligence necessary to protect my buyer should have been done ahead of time. Things like looking at comparable properties, neighborhood issues, history of the property, unpaid liens, should be done prior to the offer. But, many of these can be examined prior to the submission of the contract. Another key to securing the property is the terms the buyer is asking for.

3. Make it Easy For the Seller

If your goal is to buy a foreclosure, many pruchasers are looking for as little work as possible. For REO, or bank owned properties that are on the market as foreclosures, the banks are looking for the same thing; as little pain as possible. Since the onset of the current mortgage meltdown, lenders have been inundated with defaults. They aren't in the property management business, and want to rid themselves of their properties as quickly as they can.

Avoid contract contingencies. Routinely, foreclosed properties are sold "As Is", which means the buyer will take the property just as it is, at the time of the offer. Should you include a Home Inspection contingency in your offer? That is certainly an option, but not one I'd recommend. Remember, your goal is to get to the next step and provide the bank with few, if any, reasons to say no. However, asking for a home inspection for informational purposes can serve the same purpose, if, at some point, after ratification you decide to withdraw from the contract. Additionally, often, in bank owned (REO) foreclosures, the necessary bank Addendums to the contract will often allow you to alter terms before the contract is "fully" ratified by both parties. While the interaction with various banks are routine and standardized, there are some often differences from bank to bank, with specific procedures. Many banks negotiate one contract at a time. And, you want your contract to be the one they're considering. So, banks are keying in on the "net" cost to them, make sure your terms aren't providing the bank a reason to say no to your offer.

4. Go with Experience.

Real estate transactions can be easy, or they can be...not so easy. Make sure you've enlisted the services of a professional real estate agent. What does that mean?

It begins with experience and competence. While those traits don't necessarily go hand in hand, they're often found in pairs. First, it helps to have someone on your side with foreclosure experience. While the transaction process is fairly straight forward, having an agent that knows how the process works, and knows how best to "work the process" is invaluable. They're familiar with the necessary timing, procedures, and strategies to accomplish the objective. Further, as the process unfolds, they've worked foreclosures with banks previously, and understand what it takes to get you to closing. They have the experience and the competence to close the deal.

Good deals abound in today's housing market for home buyers. Many of those deals come in the form of foreclosed homes. Capitalizing on the foreclosure opportunities involves a few simple steps. By taking the time to become aware of what's available, and acting decisively with the aid of an experienced professional, you can maximize your chances for success. Of course, you first have to find something you want to buy. So, how hard is that?

To Continue Reading this Article, Click Here: Four Steps to Getting the Foreclosure You Want