Jim Rake

One of the benefits of being a teacher or instructor is the interaction with peers. The opportunity for feedback is almost limitless. Discussions with students are almost always entertaining, and hopefully instructive. And the "instructive" aspect goes both ways. As many teachers will tell you, we, more often than not, learn more from the students than they do from us.

This column has been in the works for weeks. Well, at least I've mentally started it on various occasions. But, as life tends to do, other, more pressing tasks have, in the meantime, overtaken my schedule. But, yesterday, after coming across an article on the Real Estate blog, Agent Genius, written by our local Association's Education Director, Matthew Rathbun, I was reminded of my article-to-be . Our director's article echo's the many complaints I've heard from students since stepping into the classroom as an instructor a little over a year ago. Their biggest complaint isn't about the real estate process, or the contracts that they have to use, or the mortgage industry, or even the erratic appraisal business. Their biggest complaint is about other agents. And, it isn't even close!

Complaints about agents aren't something new. We've heard it for years from home buyers, home sellers, and yes, other agents. But, it reminds me of the outrage and uproar about members of Congress. How they are all crooked and self serving. Well, all of them except my Congressman or Representative.

What are the complaints about Realtors? They run the entire gamut, from lack of communication to various forms of "unprofessional" behavior. These include, in no particular order:

1. Lack of communication - Difficult to get ahold of, not updating clients or other agents on the status of a property, not returning phone calls or e-mails, etc (you get the picture)
2. Unaware of what real estate contract verbiage says or means - Unable or unwilling to explain what contract documents say to their clients, negotiating contracts based upon false assumptions or a misunderstanding of what the contract says (Do you know what broom swept or clean means?....and that's the easy part)
3. Not showing up - have you ever heard the term, "required formation"?
4. Not being on time - agents are notorious for being late (and, yes, so are clients)
5. Others....

Every profession has its share of complaints about the way business is conducted. But, normally, the majority of the criticism comes from consumers, or from the "cheap seats" (those critical of the business but not involved in it). But, our profession, the real estate industry, probably hears more criticism from its' members than it does from outside sources. Are we just a profession of whiners or is the criticism justified? More importantly, if the critics are even close to the mark, how do we improve the way conduct business?

We'll get into that on Page 2.

To Continue Reading this Article, Click Here: We've Seen The Enemy

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.

To Continue Reading this Article, Click Here: Fredericksburg's Tax Man

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:

1. Settlement - foundation settlement occurs when ground around the foundation "settles" or shifts, caused by tension or stressors in the environment.
2. Corrosion - When the steel rebar corrodes inside of concrete, it expands and may cause the surrounding concrete to crack.
3. Water - water lines that leak can result in soil movement/erosion beneath the foundation. Without the support of the soil, the foundation often cracks.
4. 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.

To Continue Reading this Article, Click Here: How Firm Is Your Foundation?

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:

• Relaxed Credit Requirements
• Minimal out-of-pocket expenses
• No Private Mortgage Insurance
• No Pre-Payment Penalties
• 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:

• Streamline a current VA loan to lower interest rate
• Consolidate a conventional mortgage or second mortgage into a VA Loan
• Take out cash from home equity to eliminate other debt
• Take out cash from home equity to make home improvements
• 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:

• 24 Months Active Duty
• 90 days of service (wartime) 181 days of service (peacetime) for veterans who served after Sept. 15 1940
• National Guard members completed six years of service
• 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."

To Continue Reading this Article, Click Here: Custom Made For Vets

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:

1. 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.
2. 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.
3. 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?

1. 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.
2. Catch the properties AS SOON AS they hit the market. If you don't, another buyer will.
3. 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!
4. 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!

To Continue Reading this Article, Click Here: Aren't Foreclosures Easy To Buy?