Jim Rake

"We're all going to earn a little bit more money, but none of us is going to get any more time."

Art Moody

For many of us, the warm afternoons and cool mornings that accompany Spring also bring with them a new beginning. In the real estate market, we've just stepped into our prime time, or most active buying and marketing period of the year. And, thus far, it only comes around once a year. The question we have to ask is, "Are we ready"?

As we, as Realtors, meet with our clients, are we prepared to assist them, cousel them, advise them, encourage them, and lead them to a positive solution? While many things have remained the same in the past year, many aspects have also changed. With the abundance of Foreclosed and Short Sale properties entering the market, the ground has certainly shifted. As a result, properties values are drifted lower. Financial options have changed as well.

Have you had a chance to look at the Obama Administration's new Making Home Affordable Program? Have your clients? If not, have you informed them of the options available in this package, or other home owner loan modification plans? How about buyers? How do the market changes affect them? What is your plan for counseling them?

Over the years, I've rooted for many sports teams and individuals. As a fan, there are few things more rewarding than cheering for a team that has all the parts needed to do well. Not just one or two superstars, but a team of complimentary members that perform each of their roles well, but working together, are even better. Their synergy allows them to perform at an even higher level as a team working toward a common goal (victory), than their individual, separate efforts by themselves. Unfortunately, while the team may have an excellent record year after year, often, they fail to achieve the ultimate objective, the championship. In considering this, some of the teams that come to mind include the Buffalo Bills of the 90s, the New York Yankees (2001-2007), and more recently, the Dallas Cowboys. Each of these teams appeared to have the best athletes money could buy, but couldn't "close" the deal. They each had the top athletes in the prime of their career, but couldn't climb that last step. Was it a lack of focus? Preparation?

While many armchair quarterbacks have speculated as to why each of them failed to win their respective championships, frequently, the "why" of failure is anything but simple. What we do know is, our prime time, or season when we're at our best, is finite. In other words, it won't last forever. So, it is vitally important to make the most of it. Spend the time wisely. Prepare yourself. If others, like clients, are depending upon you, do your best to make sure they're prepared as well.

Most of us aren't as organized as we'd like to be. However, in our attempts to achieve goals, we ‘d be well served to remember Benjamin Franklin's words"

"By failing to prepare, you are preparing to fail."

To Continue Reading this Article, Click Here: Spend It Well

While March is upon us, the area is currently experiencing a cold spell. Schools are closed, and many government offices and businesses have taken the past two days off. All because of a little cold...and snow...and ice. Have you ever seen Virginia drivers trying to handle ice? It ain't pretty!

Most of us are wondering, what ever happened to global warming? While the weathermen frequently seem to overstate their case, this time they were right on the mark. We were told we'd have seven inches, and Stafford and Spotsylvania counties got about seven inches. The brunt of the snowfall descended on Sunday evening and Monday morning. Of course, my high schooler was beside himself with joy at the prospect of additional school days off. Since it appears that it requires all the road clearing vehicles just to take care of the major county roads, many side roads aren't safe for the county school buses to travel on when there's snowfall. And, that's probably good school board policy.

According to the weather channel, temperatures should be warming up next week. The big yellow school buses will be back on the roads, and the roads should be clear. So, it looks like Spring is right around the corner. Then again, maybe I'd better pull out the good old Farmer's Almanac to double check.

To Continue Reading this Article, Click Here: When It Doesn't Quack Like a Duck

Life is full of regrets. However, my years in uniform aren't one of them.

Military health care has taken its share of criticism over the years, but, it has always been there when needed. Unexpected hospital visits have been challenging to say the least. Like most families, every now and then, someone in the family has a minor emergency (you know, cut, scrape, broken ankle....skateboard mishap) that requires immediate medical attention. Often, these occur after normal business hours, or more often than not, on a weekend. Unfortunately, as a military retiree, we don't have the option of the base hospital/clinic to turn to any longer. So, for emergencies, until recently, the closest local hospital was the only local hospital, Mary Washington Hospital in Fredericksburg.

Friday morning, the new Stafford Hospital Center opened its doors. It just so happens that its first patient, Mary Grey, 75 years of age, was already in the parking lot awaiting the opening of the doors for entry. According to Mrs. Grey, she was having abdominal pains and waited for the opening instead of driving the fifteen miles to the nearest hospital. Located on Route 1, just South of Interstate 95, Exit 140, the new North Stafford facility is part of the Medicorp Health System, just like its neighbor to the South, Mary Washington.

The 100-bed facility, offering all the services of any fully equipped medical facility, is just the first of two scheduled to open within the next two years. The other, the Spotsylvania Regional Medical Center, currently under construction, will be located a couple of minutes South of Fredericksburg's Massaponax exit. The 140-bed, acute care facility is scheduled to open its doors in June, 2010.

For those of us making the drive to Mary Washington Hospital for years for emergency care, the new kids on the block are just what the doctor ordered.

To Continue Reading this Article, Click Here: Does Your Doctor Make House Calls?

When dealing with someone whose got something you'd like, have you ever been asked the question, "What's it worth to you"? If you haven't, you will some day. While that question may seem more rhetorical than actual, in the real estate business, often, the answer comes in the form of an Earnest Money Deposit (EMD).

What is an Earnest Money Deposit and why is it necessary when purchasing real estate?

First, sometimes as little as a dollar may suffice as the EMD, and sometimes, nothing at all. While it is customary, it is not essential in all states. Why? Since it is a show of commitment of "good faith" by the buyer, normally, it serves to demonstrate the buyer's seriousness of intent to purchase through the deposit of earnest money into an escrow account. Is it ususally part of the real estate transaction process? Yes.

Often, in cases involving transactions between friends or family, no EMD is involved. Remember, an EMD is a commitment; a deposit that is held in escrow until settlement. At which time, it is applied to the buyer's closing or settlement costs.

Earnest money deposits not only provide the seller a sign of commitment by the buyer, it also serves as a source of security as well. If the transaction is not consummated, and the buyer is found in default, the EMD may be forfeited. When the contract is ratified, the earnest money is placed in an escrow account. Once this deposit is made, the money no longer belongs solely to the buyer, but is now jointly owned by both parties to the contract.

The Deposit Will Be Held in Escrow Until:

1. Settlement occurs. In which case, it will be credited to the buyer towards the sales price.

2. All parties have agreed to its disposition.

3. The court has ordered its disbursement.

4. Finally, it is disposed of in a manner authorized by the laws and regulations of the appropriate jurisdiction.

In other words, if the buyer is in default, they will, most likely, lose their EMD.

How Much Should the Earnest Money Deposit Be?

That depends. On the market, and, in many cases, the value of the property. The EMD is normally no more than two percent of the purchase price. In a seller's market, the EMD is normally larger, indicating to the seller the offer is a strong one. Similarly, popular properties may generate more than one offer, subsequently, increasing the amount of the earnest money deposits from interested buyers.

Good faith, interest, and trust are all components of real estate transactions. The EMD provides security for both the buyer and the seller. The buyer feels they have a "monetary interest" in the property from the day of ratification. The seller, on the other hand, finds security in the commitment the buyer has made, and availability of compensation through forfeiture of the EMD, should the buyer back out of the contract.

To Continue Reading this Article, Click Here: Whose Earnest Money Is It?

The stimulus package recently signed into law has met with praise and criticism. For some, there's too many billions being directed at the wrong programs. For others, there isn't enough, and besides, isn't it too late for anything to work?

Like most legislation that's passed, there's plenty of criticism from both sides of the political aisle. While determining the success of the initiative is perhaps better seen in hindsight, there appear to be a number of bright spots that look promising. One of those is the first time home buyers tax credit.

To begin with, to qualify for "first time" status, you only need to have not owned a principal residence for three years before buying a house. So, do you qualify if you've purchased homes before? Well, according to Uncle Sam's definition, almost anyone qualifies, as long as you have not "owned a principal residence for three years before buying a house." Of course, that's this house, the one you're receiving the tax credit for.

Some of the package's stipulations include:

1. The tax credit is equivalent to 10 percent of the purchase price of the home. While this figure is capped at $8000, it does not have to be repaid, unless the purchaser sells the home prior to owning it for three years. In that case, the credit must be returned to the federal government.

2. There are income limits for the program. To qualify for full credit, single buyers need an adjusted gross income of $75,000 or less, while the limit for couples is double that amount.

3. The program applies to those purchasing homes in 2009, after January 1, and before December 1.

With mortgage rates and home prices at bargain rates, is this stimulus package the ideal opportunity for home buyers? As they say, isn't this the "perfect storm"?

To Continue Reading this Article, Click Here: When A First Time Home Buyer Really Isn't