May 2005 Article History

There are 14 articles published in May 2005. Here are the first 20:

Transportation Solutions Now! Parkway Needs Support Sellers getting smarter... How Cool Is This?

Feel Good Signs REALTORS® Gone Wild This Just In: Inman's Comments on NAR Greenspan says "No Bubble" Beacon Hill | Leesburg, VA Single Family | Round Hill, VA Out-Of-The-Box Real Estate Every seller is a FSBO? Realtor® Survival Loudoun Habitat Fundraiser

You will find a complete Index of Articles by Category in the History Archives.

May 28, 2005

Why can't we have more street signs like this? Maybe it would help take the edge off this hectic pace we endure. Make the world softer. How about these:

• Kitten Purring Place
• Cute Squirrel Court
• Kids Playing Drive
• Chirping Sparrow Way (this one really exists too, Pam lived on this street when we met)

Where are the great street names in America? If you have examples like this, post them!


And...this is my Goodpuppy: Lindsay. My friend, companion, lap warmer, protector, provider of unconditional love and consummate dependent. Good girl! Where's the snowball?

Comment on Feel Good Signs. Follow this article is off. More articles like this one filed in: Signs , Simple Worldy Pleasures

May 23, 2005

With so many of us these days, a unique approach to marketing is essential! Dogs, costumes, catchy names, entire buses plastered with our ads and on and on. This one takes the (cheese)cake. And, there is a dog.

Bikini wearing real estate agent sells:

The display of one Realtor's assets draws attention in Belmont Shore.

By Don Jergler
Staff writer

LONG BEACH — A blazer and slacks just don't cut it for one local real estate agent.

Realtor Wendy Heath chose to wear a bikini on a billboard she posted earlier this month on Second Street and Claremont Avenue in Belmont Shore. The advertisement is turning heads quicker than a Naples Island open house.

Entire article here.

Wait 'till you see our next ads!

(no...we don't have a bigger picture)
(test it by clicking the one above...)

Comment on REALTORS® Gone Wild. Follow this article is off. More articles like this one filed in: REALTORS® , Signs , Simple Worldy Pleasures

Just in from the Inman News Blog:

Get a grip
Why the National Association of Realtors, state associations and local boards should stop fretting about discounters and limited-service companies:

1. Your franchise is not that vulnerable. Get a grip on your self-esteem.
2. You look silly.
3. You make the wrong people mad: DOJ and FTC.
4. You give weird chuckleheads on the Internet a forum.
5. It is bad PR.
6. You've must have more important things to do.

Go Brad!

Comment on This Just In: Inman's Comments on NAR. Follow this article is off. More articles like this one filed in: In the News

May 21, 2005

Greenspan says that prices may "simmer down" as housing grows more unaffordable. Driving the demand are second-home purchases driving up the ratio of sales to existing inventory. However, there is no "bubble" because housing is so expensive and transactions too complicated. The market will adjust itself by leveling off when prices get too out of line. Does this mean the next opportunity is in rentals? If you cannot afford to buy, rent is the only other option.

In a related article in the Washington Post this morning, builders are putting restrictions on pure play speculators with language in contracts limiting the time period you can sell and/or demanding a share of the sales price if a unit is sold within a certain time period. There was anecdotal evidence of these curbs and this article tends to substantiate this as fact.

On the other hand, there are condominium advertisements in the Real Estate section proclaiming "Investors Welcome." Condominiums are the hot item in the Washington DC Metro area as they are the most affordable.

As the economy in this area continues to surge, it does not look like a slow down anytime soon. Home sales this year are outpacing the same period from last year by nearly 10%.

Go Alan!

Comment on Greenspan says "No Bubble". Follow this article is off. More articles like this one filed in: Market Conditions (with charts)

May 18, 2005

SOLD | $2,047,000 Renaissance homes at Beacon Hill. Renaissance has only a few 5-10 acre, wooded equestrian lots available for new construction. These may be the best lots to build on close in to Leesburg. Absolutely stunning environment from Renaissnace Homes, known for their quality and exquisite designs.

If interested, call us for details and a discussion of how we can help you before visiting or contacting the builder. The Michelangelo model above will be delivered to a client choosing our Concierge New Construction services (click on images for a larger view). Also, see our post on Buying New Construction under the "Builders" cataegory.

Click for larger view. Google Map It!

Comment on Beacon Hill | Leesburg, VA. Follow this article is off. More articles like this one filed in: Featured Properties

Sold: This won't last long in this price range. Located in the Western Loudoun town of Round Hill, Virginia, this 8 year young Colonial is conveniently located in a neighborhood setting close to Route 7. Featuring 4BR (1st floor master), 3BA, great room w/two story ceilings and fireplace and a partially finished basement. The large deck is the place to relax with western views of the Blue Ridge.

Too new for pictures. Google Map It! (Look in Western Loudoun, zoom in and click on the flag)

Comment on Single Family | Round Hill, VA. Follow this article is off. More articles like this one filed in: Featured Properties

May 16, 2005

See our listings on CraigsList!

The Haymarket Log Home: Washington DC CraigsList. It can also be seen on a recent post here.

Dominion Valley CC | Carriage Home: Country Club Living. Also posted here recently.

I'll report on the effectiveness of this approach.

Comment on Out-Of-The-Box Real Estate. Follow this article is off. More articles like this one filed in: Real Estate

May 10, 2005

Every seller is a FSBO? Simple answer is yes. What we need to focus on is how much the seller does vs. a real estate agent. It can be a little to all. Consumers are getting smarter and are increasingly disenchanted with agents and brokers who are collecting commissions and not having (or not willing) to do much, especially in a robust sellers market. In addition, sellers are increasingly frustrated with buyer agents (who sellers are paying by the way) making a transaction difficult or even watching one fall apart. With so many agents after so few properties, any warm body with an interest in buying is fair game even though they may not be serious, motivated or even qualified to buy. I am beginning to see a trend...

Other Revelations:

Our experience with the last few agents we have dealt with is they really don't have their act together. We end up doing much of their work.

Examples:

• At a critical time in a transaction, a buyers agent didn't know where their client was and didn't know how to contact them.


• A selling agent for a piece of land didn't understand the concept of "study period" to ensure our buyer understood all the land use issues. This same agent couldn't grasp the concept of coinciding settlements.


• A buyer's agent couldn't give us a clean purchase contract that we could read. We were asked to provide a clean contract copy to their lender to be able to underwrite their loan.

We gladly do what ever it takes to ensure a transaction comes to a successful end for our clients. But we have to wonder how we, as a profession, are enhancing our image. We also have to ask why so many potential clients want to go it alone. If we look at ourselves, we should be able to answer these questions.

Comment on Every seller is a FSBO?. Follow this article is off. More articles like this one filed in: REALTORS®

Are the traditional business models changing? You bet they are and consumers are the driving force behind the transformation. I have found that most consumers really don't understand what we do to earn our fees. Buyers believe we are taxi's drivers with a special key to get into listings and sellers only see for sale signs and MLS listings. These are the familiar tangible activities. Then, at closing it hits them in the face! Why am I spending all this money? What did you really do? You are taking a big chunk of my equity...

We should not be afraid of change. Change can be good if we stay flexible and adapt. There are more new business models than can be counted...from do-it-yourself-real-estate to auctions and even websites consumers can use to have agents bid their experience and rates. Craigslist is becoming a popular place to sell homes and land. I have a prospect that had a great piece of land listed with an agent for months. He withdrew the listing, put it on Craigslist and it sold within a couple of weeks! (Our listings are going there next. I might find a buyer!)

REALTORS© are putting up all kinds of barriers to keep the discounters and limited service businesses out of the market place. And, DOJ is taking notice. There was another article in the Washington Post this morning on the anti-trust investigation of our own national association. In this case it is about who owns the listing. Here is an excerpt:

Uncle Sam Buys Online Realty

By Robert MacMillan
washingtonpost.com Staff Writer
Tuesday, May 10, 2005; 10:24 AM

Officials from the National Association of Realtors plan to meet with U.S. Justice Department officials in Washington, D.C., on Wednesday in a bid to stave off a federal lawsuit that could increase competition in the online real estate market and potentially lower the soaring cost of home prices.

Read the entire article at Post Article.

It is understandable that those steeped in the business for many years don't want change. I believe it is here whether we want it or not. I say "LEAD, FOLLOW OR GET OUT OF THE WAY." The more protective and arrogant we get, the quicker we will fail and, maybe that's OK.

My personal thoughts are:

• I work for a broker. My listings are his listings. We own them. Period.


• I have the flexibility to negotiate my own rates and firmly believe in the "unbundled" service approach.


• If my selling clients want to lower the standard buyer broker coop rate, I will firmly support them. (See my recent post on agents getting arrogant).


• Our business is an open book to our clients. They always see our costs no matter what business model they choose.


• State real estate boards (and brokers) need to tighten the requirements for getting a license (and a desk). It's almost a joke how easy it is. The school I attended taught us how to pass the state test...very little about the practical world.


• Limited service brokerage is a lawsuit waiting to happen. We don't give up the most critical part of the transaction; disclosures, negotiating, ratifying and getting to close. If we are the listing agent of record, no amount of indemnification agreements will keep us from being named as a party to the transaction that turns ugly. We may ultimately be held harmless but, who wants that kind of headache? And, we would feel as if we didn't exercise our full responsibility to our client.


• This is still a relationship business. It's just as important as what we ultimately charge. Keep the relationship. Stay competitive.

We hope we are provoking some thought, emotion and change action.

Comment on Realtor® Survival. Follow this article is off. More articles like this one filed in: REALTORS®

Barn Dance - Fundraiser for Habitat

On Saturday evening, June 25th from 7pm to midnight, Caroline and Bud Green will be hosting a major fundraiser for Loudoun Habitat for Humanity at their barn in Hamilton, VA. It will be by INVITATION ONLY. This event promises to be a fun-filled evening: Enjoy a terrific meal, snacks and drinks throughout the evening, dance to a live band, bid on silent auction items, and also bid on items during a live auction. All this for only $100 donation per couple.

We need community support to benefit this worthwhile cause:

• Money: two $2,500 Grand Sponsorships are available and several at the $1,000 level. Recognition info to follow.


• Auction Donations: gift donations which will be auctioned off during the evening.


• Volunteers: here's your chance to get involved; we need volunteers to help with various assignments leading up to the event. We promise it will be fun!

This is your chance to give back to the community that gives so much to us. Please contact Caroline Green at (540) 338-5707 or via email at farmerg00@verizon.net.

Comment on Loudoun Habitat Fundraiser. Follow this article is off. More articles like this one filed in: Good Causes , Habitat for Humanity

Do we need the Tri-County Parkway? YES! After publishing the last post, "Tri-County Parkway Needs Your Support", I got the morning edition of the Post and this article appears on the front page:

D.C. Traffic Creeps Toward Nation's Worst
Area Drivers Spend Almost 69 Hours in Gridlock a Year

By Steven Ginsberg and Timothy Dwyer
Washington Post Staff Writers
Tuesday, May 10, 2005; Page A01

Bottom line: we experience the third worst traffic congestion in the nation behind Los Angeles and San Fancisco! Data from a recent study shows Los Angeles and San Francisco drivers spending less time year over year and D.C. Metro area drivers spending more time. We will soon become the second worst if this trend continues.

We need to send a strong message to our politicians: Put transportation back on the priority map!

Read the full article here--> GRIDLOCK

Comment on Transportation Solutions Now!. Follow this article is off. More articles like this one filed in: In the News

As reported by the Northern Virginia Transportation Alliance, May 9, 2005:

Tri-County Parkway Draft Environmental Impact Statement, March 2005

"The Comprehensive Plan CBA (Candidate Build Alternative) is the best of the CBA’s in meeting (transportation) system and community linkage needs and satisfying social and economic demands, as well as reducing peak deficient VMT (vehicle miles of travel) and minimizing increases in overall VMT. It is also among the top ranked CBA’s in addressing safety needs."

View the map of alternatives here: VDOT Map

Northern Virginia’s transportation crisis is a direct result of state and local officials systematically rejecting the best transportation solutions in favor of less effective solutions or taking projects off maps entirely...

The Virginia Department of Transportation is seeking input on the best route for the Tri-County Parkway. Public meetings are scheduled May 9th, 10th and 11th in Prince William, Fairfax and Loudoun Counties. Click here for details.

The Public Comment Deadline Is May 23, 2005.

The Tri-County Parkway is the only facility planned to link Northern Virginia’s three most populous jurisdictions.

Despite the fact historical consensus on what’s called the Comprehensive Plan route has existed among all three counties for years, federal law requires alternatives be studied.

A Draft Environmental Impact Statement (DEIS) presents compelling findings that the Comp Plan CBA is the best transportation solution.

Nevertheless, pressure will be placed on state and local governments to either build nothing or ignore the fact the Comp Plan is the best transportation solution and select another alternative because it is less expensive.

Northern Virginia is fast running out of time and options to address transportation needs.

To register your support for protecting and selecting the Comp Plan option as the locally preferred option click the following email link:

Mailto: tricountyparkway@virginiadot.org

Cut and paste the sample message below or insert your own commentary into the message box.

---

Sample Message of Support for Comp Plan Corridor:

I urge the Commonwealth and local governments to select the Comprehensive Plan CBA as the locally preferred option for the Tri-County Parkway.

The Draft Environmental Impact Statement finds the Comprehensive Plan route best meets the region’s transportation, economic and social demands and makes the existing network safer.

Too many Northern Virginia transportation options already have been lost.

The Comprehensive Plan corridor is an important north-south link that must be protected and built.

Name:

Address:

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Key Tri-County Comp Plan Points

• Tri-County Parkway Comp Plan route has been on Prince William County’s Comprehensive Plan since 1964, Fairfax County’s since 1994 and Loudoun County’s since 1995.
• The EIS shows that Comp Plan alignment
  
  
  
  • Moves the highest volume of traffic.
  
  
  
  • Is the only alternative tested that provides new capacity south of I-66.
  
  
  • Takes cut-through traffic out of Fairfax, Loudoun and Prince William neighborhoods.
  
  
  • Provides a new access point and interchange with I-66 east of Route 234 Bypass.
  
  
  • Overall does the most to reduce travel times between regional activity centers.
  
  
  • Provides significant safety benefits to the region’s road network.
  
  
  • Provides new direct links between Southeastern Loudoun County and greater Manassas communities to I-66 and Dulles area activity centers.
  
  
  
  

To read a recent Alliance Tri-County Parkway column in the Washington Post click on this link: Post Article

Contact Info
The Alliance Alert is a free online update on regional transportation issues and public involvement opportunities provided by the Northern Virginia Transportation Alliance. For more information on regional transportation issues and NVTA, please visit our website at www.nvta.org.

Northern Virginia Transportation Alliance
P.O. Box 6149
McLean, Virginia 22106-6149
tel 703-883-1830
fax 703-883-1850
info@nvta.org

Comment on Parkway Needs Support. Follow this article is off. More articles like this one filed in: In the News

May 5, 2005

The phone rings...caller ID reports Big Local Realty Co. Great, a call on one of my listings!

Prolog:
[Merv ] Hi, Merv Forney of RE/MAX.
[Agent] My name is Smarty Agent.
[Agent] I'm calling on your listing on Curb Appeal Drive.
[Merv ] Sure. How can I help you?
[Agent] Will your client pay a 3% buyer commission?
[Merv ] Pause. Uhhhhh...No, I don't believe they will.
[Agent] OK, then tell them I will not show their home.
[Merv ] Thinking...then I respond: That is certainly your perogative.
[Agent] It is. Click.
[Merv ] Click.

Analysis:
To say commissions are a sensitive subject is an understatement... Lets see if we can take some emotion out of this. Here is the scenario:

1. Sellers are moving after 10 years in their home. Original owners.
2. Their home has appreciated about 25% per year for the last two years.
3. The home is market valued at around $600,000 today.
4. It is a strong sellers market
5. I offer to list their home for a negotiated fee and they instruct me they will not pay more than 2% to the buyer broker.
6. I get the listing

Discounting the current market value back two years (not too tricky) would value the home at $385,000. Let's do some math:

	2003	2005	% Gain
Market Value	$385,000	$600,000	56%
3% Buyer Broker Fee	$11,550	$18,000	56%
2% Buyer Broker Fee	$7,700	$12,000	56%

Now, the difference between 3% two years ago (the "standard") and 2% today is a net positive of $450 or a four percent (4%) increase from 2003.

A quick study of the local market in the 3 largest counties yeilds a surprise on buyer broker commissions offered:

• 2003: 40 homes were sold at less than 3%.
• 2004: 219 homes sold at less than 3%.
• 2005: 267 homes (first 4 months this year) are sold or listed at less than 3%. That's 801 on an annualized basis.

This may be a small percentage of the total homes/properties sold but certainly a trend.

We can make all kinds of arguments why less than 3% is out of line. Buyer agents have to do more work writing multiple contracts until they ratify one for a buyer (probably true, but do sellers care?). There are more agents to feed (lousy argument). Brokers profits are narrowing (buyers and sellers simply do not care).

Mr. Market and Mr. and Mrs. Consumer are having their way with us. The market will drive home prices and consumers will drive what they are willing to pay for services. In a buyer's market, the tide will turn back...I'm sure.

As for my caller, it's apparent his personal interests are more important than his buyer's. For the buyers this agent represents (if he has any), you may have missed a great buy.

The greatest of companies have died because of arrogance and failing to listen to their customers.

Epilog:
This property had over a dozen recorded showings and a ratified contract in 13 days.

Comment on Sellers getting smarter.... Follow this article is off. More articles like this one filed in: Real Estate

May 4, 2005

See our listings mapped like magic! Click the link and be wowed.
(note: technology in testing phase, may not yet be perfect, but still cool. Check out the satellite view.)

Thanks to Dustin at Rain City Real Estate for the idea and direction!!!

46430 Cedarhurst Dr.
Sterling, VA
and
1231 Mountain Rd.
Haymarket, VA

Map it!

Comment on How Cool Is This?. Follow this article is off. More articles like this one filed in: Real Estate