February 2010

Volume 5, Issue 1

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L I S T ED A M A G A Z I N E O F T H E R I C H M O N D A S S O C I AT I O N O F R E A L T O R S ®

REsourceHome: Connecting REALTORS® and Consumers

INSIDE: • A Guide to the Extended Homebuyer Tax Credit • Code of Ethics Changes for 2010 • The New Short Sales and Foreclosure Resource Certification • MLS Reports - The Way You Want Them • Professional Courtesy - A Refresher

From the

President Karen Smith

Here’s to Brighter Days and Opportunities to Excel in 2010

I don’t know what the weather will be like when this edition of Listed arrives in your mailbox; it could well be quite cold outside. But as I sit to write this column, we’re enjoying one of those clear blue sky, wonderfully warm January days that Central Virginia is blessed with every so often. And if the weather isn’t reason enough to feel good about the start of 2010, reports from numerous offices of increased sales activity are definitely cause for optimism.

While no one is predicting a return to the record-setting sales pace of 2004 – 2006, most analysts believe—and I agree—that economic conditions should translate into steady, incremental growth in the real estate market in the coming year. More importantly, no matter what happens in 2010, I’m bullish on the long-term strength and sustainability of our regional community, our real estate market, our members, and our Association.

As this year’s President, my number one priority is a continued commitment to excellence; excellence in the quality of the programs and products the Association provides as well as excellence in the service we deliver to each and every member, each and every day. To achieve this goal, we will continue to offer a wide variety of high quality continuing education classes. In addition, we will hold quarterly seminars addressing the most critical issues facing practitioners today. For example, on April 15, RAR will host two sessions—one for brokers, one for agents—with nationally known speaker Steve Harney. Steve does a masterful job translating market statistics into sales strategies that you can employ to get both buyers and sellers to act. And 2010 marks the return of REALTORfest on October 26; back by popular demand at this event will be keynote speaker Mike Staver.

Also, by the time you read this column, our spring marketing campaign will be in high gear with billboards, print and Internet ads promoting the use of the homebuyer tax credits to the public. We know that with a variety of inventory, low interest rates, and the availability of the $6,500 and $8,000 tax credits to the public, now is a great time to buy. We just need to remind the public of that fact; which is exactly what the multi-media marketing campaign will do. And we will launch a new consumer website, www.REsourceHome.com, that will prove to be a benefit for both you and your clients.

On the MLS front, we will significantly increase our efforts to communicate about and provide training on the variety of MLS tools at members’ disposal. Having traveled the country and talked with REALTORS® from many other MLSs, I know that CVR MLS provides one of the strongest, most cost-effective portfolios of technology products available. Wireless MLS, driving directions, integrated tax and mapping, statistical market analysis via RE Stats—these are just some of the products each member of CVR MLS can employ to facilitate their daily business practices and enhance their professionalism.

In the coming year, our Association and each of us individually will have ample opportunities to make a good impression, to make the sale, and to excel. We, at the Association, are committed to making the most of those opportunities, so you can as well.

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L I S T ED Volume 5, Issue 1 2010

Contents

L I S T ED

Listed Magazine is published quarterly

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by the Richmond Association of REALTORS , ®

8975 Three Chopt Road, Richmond, VA 23229

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Editor-in-Chief Karen J. Treanor

18 FEATURE

Director of Communications and Marketing Managing Editor Kelly Surmacewicz

Welcome to REsourceHome.com Your Total Real Estate Resource . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

Advertising Contact Kellie Whitlow, Director of Development (804) 422-5009 kwhitlow@RARealtors.com

D E PA R T M E N T S Printing & Production

Association News Upcoming Events, Homebuyer Tax Credit and more . . . . . . . . . . . . . .

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Graphic Design

CVR MLS Cautionary Tales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Top MLS Violations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

MLS Reports The Way You Want Them . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

CVR MLS Training Schedule March - May . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Proforma Graphic Information Services

Sattler Creative

5 6 6 8

The publisher does not endorse advertised products unless specifically stated and reserves the right to reject any advertisements at any time. Any questions about advertising policy should be directed to the Managing Editor or the Director of Development.

Technology Tip The Value of Right-clicking . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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®

REALTOR members pay annual dues with a one-year subscription included within their dues. Sponsor and affiliate members receive a subscription to the magazine

Meet The Board of Directors Karen Smith and Cheryl Hamm . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

as part of their member dues. Annual subscription rate for non-members is $25.

Government Affairs

Office:

(804) 422-5000

A Guide to the Extended Homebuyer Tax Credit . . . . . . . . . . . . . . . . . 16

Fax:

(804) 422-5088

Web:

www.RARealtors.com

Ethics

Copyright 2010. Richmond Association of REALTORS .

NAR Code of Ethics and Standards of Practice

All Rights Reserved. Articles of information from the

Summary of Changes for 2010 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

®

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magazine may not be reprinted without the permission of the Richmond Association of REALTORS®.

Professional Development SFR Certification NAR’s Newest Certification . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 Education Calendar March - May . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 Professional Courtesy A Refresher . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

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Postmaster: Please send change of address to ®

Listed Magazine, Richmond Association of REALTORS , 8975 Three Chopt Road, Richmond, VA 23229

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ASSOCIATION NEWS

2010 RAR Leadership Distinguished Achiever Awards Reception April 15, 2010, 5:00 pm The Westin - 6631 West Broad Street Admission is free for award winners; admission for all others, including spouses or guests of award winners, is $15.

Admission includes hors d’oeuvres and two complimentary drink tickets. Please RSVP to Kathryn Burke at (804) 422-5010 if you

Karen Smith

Cheryl Hamm

Don Atkinson

Scott Ruth

2010 President

2010 President-Elect

2010 Immediate Past President

2010 Vice President

plan to attend.

Directors

Member and Broker Sessions

Richard Bower Nancy Cheely Amy Enoch Tom Innes Earl Jackson Wayne Johnson, Jr.

with Steve Harney on April 15 Prior to the Distinguished Achiever Awards Reception, special guest Steve Harney will present a session for RAR members titled “Keeping Matters Current in Today’s Market.”

Lummie Jones Mark Joyner Jean Longest Cathy Saunders Linda Staples Bill White

This session will be held at the Westin from 3:00-5:00 pm, and the cost to attend is automatically charged for fees and dues

provides for an $8,000 tax credit for

once they are issued, download the Auto

qualified first-time buyers and a $6,500

Steve will also be speaking earlier in the

Debit/Credit Release form (available on the

tax credit for qualified repeat buyers

day at a broker lunch at RAR’s Three

Member Services page of RARealtors.com)

purchasing homes before April 30, 2010.

Chopt Road office. This lunch session,

and submit it to the Accounting Department.

NAR has prepared several resources

$10 per person.

for you to refer to as you guide your

“Leadership in the Current Real Estate Market,” will be held from 12:00-1:30 pm

Please mark your calendars with

clients through the provisions of these

and is restricted to brokers only. The cost

these important dates:

tax credits; for more information,

to attend is $10 per person.

Date Billed

Must Be Paid By:

visit our new consumer website

March 1

March 31

www.RESourceHome.com.

CVR MLS Quarterly Dues Billing Dates

June 1

June 30

The easiest way to make sure your MLS bill

September 1

September 30

Another Home Sales Marketing Campaign Each spring, CVR MLS sponsors a

is paid on time is to enroll in RAR's Auto Homebuyer Tax Credit Resources

marketing campaign highlighting the

for the program and have your credit card

The Extended Homebuyer Tax Credit

reasons why now is a great time to buy

Useful URL’s

Debit Program. If you would like to sign up

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RAR Home Page www.RARealtors.com

CVR MLS Rules and Regulations www.RARealtors.com/members/cvrmls/rules.aspx

Bill Pay Site www.RARealtors.com/members/default.aspx

RAR Government Affairs www.RARealtors.com/members/government/default.aspx

RAR Staff Directory www.RARealtors.com/members/about/sdirectory.aspx

Grassroots Action Center www.RARealtors.com/members/government/votervoice.aspx

REALTOR Store http://www.RARealtors.com/members/store.aspx

The Real Estate School www.RARealtors.com/members/education/default.aspx

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Virginia Real Estate Board www.state.va.us/dpor/reb_main.htm Virginia Association of REALTORS® www.varealtor.com Local Home Search www.REsourceHome.com

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CVR MLS a home in Richmond. Print, web, and billboard ads focusing on the Extended Homebuyer Tax Credit began running in mid-February, and will continue through the end of April. Copies of print and web ads will be available for members to download from www.RARealtors.com.

Login and click the "News & Events" tab to find more information on our marketing campaign.

ARY TALES MLS CAUTION

E VIOLATING

COULD YOU B

TIONS?

S AND REGULA

CVR MLS RULE

Congratulations to our 2009 Award Winners

John Powell REALTOR® of the Year

Ann Vandersyde A. Kenton Muhleman, Jr., Scholarship Award

Marianne Donahue REALTOR® Civic Leader of the Year

Dare Tulloch C. Porter Vaughan, Jr. Outstanding Service Award

Page George C. Porter Vaughan, Jr. Outstanding Service Award

Christina Royal C. Porter Vaughan, Jr. Outstanding Service Award

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FEATURED VIOLATION:

Invalid Link to Tax/Parcel ID

EXAMPLES OF VIOLATION: Entering “0,” “N/A,” “TBD,” “--“, “99999” or “No” in the Tax ID field instead of entering the appropriate Tax ID/Parcel ID number.

Governing Rule or Regulation: CVR MLS Rules & Regulations, 12.3.1 Inputting Data: Listing input forms must be either delivered to CVR MLS staff for entry into the computer or broker-loaded in the MLS Database in a timely manner as set forth in Section 11.0 of these Rules & Regulations. Listing information contained in the MLS Database shall include all ascertainable data in the fields designated by CVR MLS from time to time, including but not limited to link to tax (if available; if not, the agent must enter the appropriate Tax ID number manually)...

Explanation: When adding a listing, it is important to use the auto-population functionality to populate the Tax ID field if the jurisdiction is available. This process links the listing to the Tax Record, making it available from the listing results page of the listing.

Violations: Violation of this rule is subject to a $250.00 fine as outlined in Section 19.4.

Over the past three months, 59 warning letters have been sent to members who have violated this rule. A fine will be incurred for violations not corrected within the time frame specified in the warning letter. If more than three warning letters are received in a thirty day time period, per the Rules & Regulations, an automatic fine of $1,000 is assessed.

An important aspect of providing MLS services is to help ensure the quality of the listing data in the system. The Tempo™ system is checked daily looking for listings that are in violation of the CVR MLS Rules & Regulations. Anonymous faxes/e-mails from members of the association reporting violations on listings are also an extremely valuable source of quality control information. Anonymous tips can also be sent by a member from the “Report a Violation” feature that has been added to the Quick Link Button Bar on the side of Agent Reports. Should you have questions about what is correct procedure, please contact the MLS Department at 422-5004.

Copies of the CVR MLS Rules and Regulations can be obtained online at

http://cvrmls.myismart.com/pages/home or http://www.RARealtors.com/members/cvrmls/rules.aspx

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CVR MLS TOP MLS VIOLATIONS

October 1-31, 2009 #of Warnings #Fined

November 1-30, 2009 #of Warnings #Fined

December 1-31, 2009 #of Warnings #Fined

Violation

Rule #

• Automatic Audit Notice • No Photo • Failure to Report Settlement • Invalid Contact Information in Remarks Field • Invalid Mapbook/Mapbook Coordinates • Invalid Owner Name • Invalid Tax ID • Delayed Showing and No Showing in

11.1 12.3.4 17.4.3 12.3.3 12.3.1 12.3.1 12.3.1 12.4.3

102 47 35 28 27 19 18 11

0 0 0 0 0 0 0 0

105 27 81 27 23 21 21 11

0 0 0 0 0 0 0 0

82 35 47 19 28 15 20 3

0 0 0 0 0 0 0 0

11.1 12.3.3 32.1 12.3.4 12.4.23 12.3.1 12.3.3

10 10 10 7 6 6 0

0 0 0 0 0 0 0

5 16 14 26 2 7 6

0 0 0 0 0 0 0

10 8 4 12 5 4 6

0 0 0 0 0 0 0

• Released and Re-entered Listing

12.4.19

1

0

1

0

1

0

Prior to Expiration • Failure to Report Pending Sales

17.4.1

0

0

1

0

1

0

Additional Showing Instructions Field

• Not Listed within 2 Calendar Days/48 hours • Invalid URL in Remarks Field • No Supra Lockbox • Invalid Photo, Tour, Link or PDF • Duplicate Listing • Invalid Address • Invalid Compensation in Agent Only Reference

MLS Reports

The Way You Want Them

By John Hicks, e-PRO Director of MLS Training and Outreach

he recent upgrade made to Tempo™ allows members even more opportunity to customize their MLS reports. The enhancements included in the upgrade allow users the ability to personalize a majority of the listing search functions, search results displays and the listing reports. With the customization capabilities and the wide array of preferences available, members can tailor the MLS to work pretty much the way they want it to work.

Using Report Manager, printouts, property flyers, reports and much more can be customized. Report Manager is located on the top menu bar in Tempo™ under the Reports icon. Customized reports can be built from an already existing report, or they can be made from scratch.

Reports that have been created by CVR MLS and are available in Tempo™ cannot be changed, but they can be copied and used as a template for a customized listing report. To create a customized report similar to one that already exists, open up Report Manager scroll down the list of reports and locate the report

T

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that is closest to what is needed. To copy, click on the checkbox to select the report, and then click on the Copy Report button at the bottom. Be sure to save the report under a different name.

Using this route helps to save a great deal of time and effort when creating personalized reports.

Next, the report will need to be edited. Remove fields and items not needed, add and rearrange additional fields from the left side panel and customize features using the variety of tools and options on the top menu. Once changes have been made, click on the Save As icon in the upper left corner of the menu bar and save it using a name of your choice.

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Report Manager also provides the ability to create a report from scratch. To create a custom report from scratch, open Report Writer and click on New Report. Select the type of report (Multiple Row, Multiple Column, Photo Gallery, Flyer or Label) and click OK. Report Manager opens an empty report grid allowing users to add preferred fields, labels or images. When adding a data field, be sure to check the Include Label box at the bottom. This will display and identify that data. Text boxes, lines, frames and other common desktop publishing features can also be added from the Toolbox in the side panel. For even greater customization select fonts, colors, fills and other enhancements to be used in flyers and promotional materials that will be saved and used again.

When it comes to the Report Manager, customization may not be for everyone. For this reason, CVR MLS has designed a new One Page Report for each of the four residential property types in Tempo™. In developing these reports, the most frequently used reports and populated fields were selected to be included by default. For those that would like to include or remove certain fields on the report, a Report Manager Workshop is available. This class teaches members how to create and save personalized onepage reports, create custom designs and promotional flyers, and modify report pages in the CMA Wizard.

For a schedule of upcoming classes, please contact the RAR Education Department at (804) 422-5000. L

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Technology/Tip Have You Tried Right-Clicking?

Sometimes it’s easy to forget that a mouse or laptop touchpad has more than one clickable button. The right-click, however, can be a tremendous work and time-saver. To test the capabilities of this button try opening different software programs and right-clicking on them. A vast number of shortcuts, tools and functions will be only a click or two away. You can save, copy, paste, print and much more by using the right-click function. In many software programs you will also discover quick access to specialized tools and functions. Once you use the right-click a few times, you will find it is faster and easier to perform many of the everyday tasks you use on your PC and your software.

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March – May 2010

MLS Training Schedule

Tempo Tip TM

Classes at RAR North (Three Chopt Road Office): MARCH 3

Prospecting & Contact Management

9:00-12:00 pm

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Instanet Forms

9:00-11:00 am

19

Digital Camera & MLS Photography

1:00-3:00 pm

16

MLS Marketing

9:00-11:00 am

16

CIE Workshop

1:00-3:00 pm

19

Instanet Forms

9:00-11:00 am

14

MLS Refresher

9:00-11:00 am

14

IMAPP/Tax Records

1:00-3:00 pm

APRIL

MAY

Classes at RAR South (Midlothian Turnpike Office) MARCH 10

MLS Rules & Regulations

9:00-11:00 am

10

IMAPP/Tax Records

1:00-3:00 pm

24

Top 10 Tips

9:00-11:00 am

CMA-Price It Right

9:00-12:00 pm

3

Prospecting & Contact Management

9:00-12:00 pm

20

Instanet Forms

9:00-11:00 am

20

MLS Rules & Regulations

1:00-3:00 pm

APRIL 1 MAY

To register, call the Education Department at 422-5016 or log onto www.RARealtors.com and click on "Education”

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Easy Listing Modification The Tempo™ homepage is designed to display functions that most members use on a regular basis. One of the more valuable tools on this page is Inventory Watch, which is located in the lower left corner of the homepage.

Inventory Watch is an excellent way to track personal listing and sale inventory activity, and can be used to access listing information for an entire office or firm. When listing information needs to be edited, a price change or status change must be made, or a photo or attachment uploaded, Inventory Watch is the first and best place to go.

To edit Active listings, Inventory Watch will need to be set to personal for agents and brokers or to office for Office Administrators.

By clicking on the link for Active Listings, a list of all personal or office listings will display.

From here, locate the specific listing that needs to be modified, point to the iBubble located to the right of the listing number, and click on the Edit icon. This will take you into the Edit mode for this particular listing.

To modify listing information such as price or status, click the Edit button. To copy a listing that may have expired or is being re-listed, simply click on Copy. Click on Images to upload photos, or Attachments to upload attachments or additional unbranded documents. Similarly, to promote an open house, click on Open House.

It’s a good idea to take some time to become familiar with all the tools available on the i-Bubble toolbar in Tempo™. Using Inventory Watch along with the i-Bubble feature can help make managing listings easier and more convenient. w w w. R A R e a l t o r s . c o m

Meet the Board of Directors

Karen Smith 2010 President

Each issue of Listed features profiles of two current members of the Board of Directors.

Awards, Professional Standards, MLS (Past Chair); RAR Honor Society member since 1993; RAR/MLS Board of Directors member and current President.

How did you get involved in real estate?

I wanted an independent career that would reward me based on my contributions.

Office & Years in Real Estate RE/MAX Commonwealth 26 years in real estate

Favorite Richmond Tradition Arts in the Park

Designations ABR, ABRM, CDPE, CRB, CRP, CRS, E-PRO, GRI

Favorite Vacation Spot Anywhere in the Caribbean

Experience at RAR Service on various committees including Education, Programs,

Hobbies/Activities outside the office Gourmet cooking, shopping for antique bargains

/////////////////////////////////////////////////////////////////////////// Cheryl Hamm 2010 President-Elect

Office & Years in Real Estate Joyner Fine Properties 27 years in real estate Designations CCIM, GRI Experience at RAR Commercial CIE (Chairman, 2 years), Distinguished Achiever Award winner since 2000 (last three were Dominion Awards Commercial), RAR/CVR MLS Board of Directors (President-elect)

How did you get involved in real estate?

I started in Property Management and Leasing in Northern Virginia for a private partnership; then moved to Richmond, got licensed, and joined Joyner in 1999.

Favorite Richmond Tradition I grew up in Richmond, and my favorite traditions in the past were the Miller & Rhoads Tea Room and Santa Claus; the Clover Room (best ice cream in town!); Lowes Theatre with Eddie Weaver at the organ; and still today -- the Easter Parade on Monument Avenue.

Favorite Vacation Spot Gwynn's Island Hobbies/Activities outside the office Reading, traveling, singing in the choir

Special at The REALTOR® Store Don’t miss out on an opportunity to promote the extended $8,000 First Time Homebuyer tax credit along with the new $6,500 Repeat Buyer credit! The new Tax Credit Solid Plastic 24” Rider is now available at the REALTOR® Store for only $6.00 each. Visit one of our two locations (8975 Three Chopt Road or 9325 Midlothian Turnpike) and pick up one for each of your listings!

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Welcome to REsourceHome.com

A Total Real Estate Resource

By Kelly Surmacewicz

NOTE: Use this button to opt-in to the REsourceHome e-mail list, and receive monthly e-mails with timely information and promotions.

In mid-February, CVR MLS launched a new consumer focused website, www.REsourceHome.com. The website is designed to be a complete real estate resource for potential buyers and sellers, current homeowners, and local REALTORS®. In addition to property search functionality, the site includes a wealth of community information, and a special section with discounts and savings. If you have not yet visited REsourceHome.com, take a tour of some of the site’s many impressive features, on the following pages:

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PROPERTY SEARCH • Enter criteria for residential properties or rentals • Search results display with photo and listing details • Each listing is displayed on a Google map

PROPERTY RESULTS • Key property details are at the top of the listing • Agent contact info appears • All images uploaded to CVR MLS display • Property details entered into Tempo™ CVR MLS display

OPEN HOUSES • Search for open houses • Entered criteria and open house dates display with the property listings

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FIND A REALTOR® • Search for a REALTOR® by first name, last name, or both • Search for a REALTOR® by office • Search results display firm information, e-mail address, and website link if applicable

COMMUNITY INFO • Moving resources include utilities, DMV, news, and more • Links to government sites and major public school systems • Members are welcome to frame this page on their own websites if they choose

DISCOUNTS • Includes discounts and savings coupons from a variety of local businesses • Coupons are accessible to all visitors and can be printed on standard paper • Members are welcome to frame this page on their own websites if they choose

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BUYERS/SELLERS • Resources such as the Extended Homebuyer Tax Credit and other homeowner issues are available here.

DATA PRODUCTS • Information on MLS data products such as IMAPP and RE Stats is available here.

We hope you will enjoy the many features REsourceHome.com has to offer. Make REsourceHome.com your total real estate resource and share this site with your clients! L

G O V E R N M E N T A F FA I R S

A Guide to the Extended Homebuyer Tax Credit EALTORS called and Congress answered. After months of letter writing campaigns, phone calls and lobbying Virginia’s Congressional delegation, Congress passed a revised homebuyer tax credit in November 2009. In its continued effort to spur the housing market, Congress not only extended the deadline for the $8,000 first time homebuyer tax credit to April 30, 2010, but also expanded the credit to $6,500 for existing homebuyers.

R

®

Current Homeowner Tax Credit The following is a guide to the revised credit regulations and what clients should know regarding eligibility.

Who’s Eligible for the Move-Up/Repeat Home Buyer Tax Credit?

The existing homebuyer tax credit is available to homeowners purchasing a home between November 7, 2009 and April 30, 2010. The buyer must have lived in their home for at least five out of the last eight years. The home they buy must become their primary residence, but the buyer does not have to sell their previous home. They can use the previous home as a rental or a second home and still claim the credit.

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By Elizabeth Hancock Greenfield Director of Government Affairs

How Much is the Tax Credit?

The maximum allowable credit for current homeowners is $6,500; however, the credit may only be awarded on homes purchased for $800,000 or less.

Is There an Income Limit?

Yes, single buyers with incomes of up to $125,000 and married couples with incomes of up to $225,000 may receive the maximum tax credit.

If the Buyer’s Income Exceeds These Limits, Can They Still Receive the Credit?

Yes, the credit decreases for buyers who earn between $125,000 and $145,000 for single buyers and between $225,000 and $245,000 for home buyers filing jointly. The amount of the tax credit decreases as their income approaches the maximum limit.

Homebuyers earning more than the maximum qualifying income— over $145,000 for singles and over $245,000 for couples are not eligible for the credit. w w w. R A R e a l t o r s . c o m

Can a Buyer Still Qualify if Closing After April 30, 2010?

Yes, as long as a written binding contract to purchase is in effect on April 30, 2010, the purchaser will have until July 1, 2010 to close.

Can a Buyer Claim the Credit if They Purchase a Home From a Relative?

No, legislation prohibits taxpayers from claiming the credit if the sale is between "related parties," including parents, grandparents, children or grandchildren.

Will the Tax Credit Need to Be Repaid?

No, the buyer does not need to repay the tax credit if they occupy the home for three or more years; however, if the property is sold during this three-year period, the full amount of the credit will be recouped on the sale.

Can The Credit Be Used Upfront In Conjunction With A FHA Loan?

Yes, HUD has allowed FHA-approved lenders to develop bridge loans that enable homebuyers to monetize the credit at the closing table. Buyers are still required to put down the minimum 3.5%, but can use the loan to help cover closing costs, buy down an interest rate, or increase a down payment.

First-Time Homebuyer Tax Credit Provisions of the $8,000 first-time homebuyer tax credit remain the same with the following exceptions:

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The credit deadline has been extended to April 30, 2010. If a written binding contract to purchase is in effect on April 30, 2010, the purchaser will have until July 1, 2010 to close.

The income limits have been increased to $125,000 for single purchasers and $225,000 for married couples. The credit decreases for buyers who earn between $125,000 and $145,000 for single buyers and between $225,000 and $245,000 for home buyers filing jointly. The amount of the tax credit decreases as income approaches the maximum limit. Homebuyers earning more than the maximum qualifying income—over $145,000 for singles and over $245,000 for couples are not eligible for the credit.

Act Now With the new April 30 deadline in place for clients to take advantage of the homebuyer tax credit, there are only two months left to bring qualified clients under contract before the credit expires.

With low interest rates and plenty of inventory, don’t let this opportunity pass clients by!

More information on the Extended Homebuyer Tax Credit can be found on CVR MLS’s new consumer website located at www.REsourceHome.com. More specific details and questions are best answered by a qualified tax professional or closing attorney. L

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ETHICS

NAR Code of Ethics and Standards of Practice: Summary of Changes for 2010 here is no doubt that today’s REALTOR® is facing unprecedented challenges brought on by the uncertain economy and changing marketplace.

Pressures exerted by these forces can, in some cases, lead agents and brokers to behave less than professionally. The REALTOR® Code of Ethics, adopted in 1913, represents the “gold” standard of professional conduct for the real estate industry. The Code consists of seventeen articles and related standards of practice and is periodically revised to reflect current industry practices and provide instructive guidance in the application of its duties. Below is a summary of the 2010 additions and revisions to the Code of Ethics.

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By Peggy Lynch, GRI Director of Professional Development and Broker Services

short sale approval on a reduction in broker compensation; however, the splitting of such a reduction may not be mandated.

Standard of Practice 3-9: REALTORS® shall not provide access to listed property on terms other than those established by the owner or the listing broker.

Explanation: Unauthorized access complaints have increased over the last several years. Alleged offenses include listing agents providing combination lockbox codes to investor clients; buyer agents leaving clients and/or inspectors unsupervised in listed properties; and buyer agents accessing property in violation of the access rules established by the listing broker and seller. Further examples include not calling the agents or the seller prior to showing, and failure to reset alarms or secure the property as directed in the MLS.

Standard of Practice 3-2: To be effective, any change in compensation offered for cooperative services must be communicated to the other REALTORS® prior to the time such that REALTOR® submits an offer to purchase/lease the property.

Explanation: Offers of compensation in the MLS are unconditional.

CVR MLS Rules & Regulations require the listing broker to disclose the cooperating compensation offered to the selling broker as either a % of the gross sales price or a fixed amount. That said, it is not unethical or a violation of MLS Rules & Regulations for the listing broker to ask the selling broker if he or she would be willing to accept a compensation reduction when a lender has conditioned

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Article 11 of the Code of Ethics: The services which REALTORS® provide to their clients and customers shall conform to the standards of practice and competence which are reasonably expected in the specific real estate disciplines in which they engage; specifically, residential real estate brokerage, real property management, commercial and industrial real estate brokerage, land brokerage, real estate appraisal, real estate counseling, real estate syndication, real estate auction, and international real estate. REALTORS® shall not undertake to provide specialized professional services concerning a type of property or service that is outside their field of competence unless they engage the assistance of one who is competent on such types of w w w. R A R e a l t o r s . c o m

property or service, or unless the facts are fully disclosed to the client. Any persons engaged to provide such assistance shall be so identified to the client and their contribution to the assignment should be set forth.

Explanation: Land brokerage was added as a recognized business specialty.

Standard of Practice 11-1: When REALTORS® prepare opinions of real property value or price, other than in pursuit of a listing or to assist a potential purchaser in formulating a purchase offer, such opinions shall include the following unless the party requesting the opinion requires a specific type of report or different data set: 1) Identification of the subject property 2) Date prepared 3) Defined value or price 4) Limiting conditions, including statements of purpose(s) and intended user(s) 5) Any present or contemplated interest, including the possibility of representing the seller/landlord or buyers/tenants 6) Basis for the opinion, including applicable market data 7) If the opinion is not an appraisal, a statement to that effect Explanation: This revision recognizes that clients requesting a Broker Opinion of Value (BPO) or Competitive Market Analysis (CMA) may not require all of the components listed under Standard of Practice 11-1. Virginia real estate licensees may, in the ordinary course of business, provide a valuation or analysis of real estate for a fee; however, a licensee shall not hold himself out as a real estate appraiser, and the valuation may not be referred to as an appraisal and shall not be used in lieu of an appraisal performed by a licensed appraiser. The preparation of BPO’s and CMA’s is a licensed activity, and as such, licensees may only be compensated for these services through their brokerage.

Standard of Practice 12-5: REALTORS® shall not advertise nor permit any person employed by or affiliated with them to advertise real estate services or listed property in any medium (e.g., electronically, print, radio, television, etc.) without disclosing the name of that REALTOR®’s firm in a reasonable and readily apparent manner.

Explanation: All real estate advertising must comply with Virginia statutes and VREB Rules and Regulations. Real estate teams and individual agents must ensure that the name of the firm with which they are affiliated is included in any and all advertising.

Standard of Practice 15-3: The obligation to refrain from making false or misleading statements about competitors, competitors’ businesses and competitors’ business practices includes the duty to publish a clarification about or to remove statements made by others on electronic media the

REALTOR® controls once the REALTOR® knows the statement is false or misleading.

Explanation: Social media outlets such as Facebook and Twitter are the types of public forums where REALTORS® must exercise care when making statements about other REALTORS®, their firms and/or their business practices. REALTORS® now have an affirmative obligation to correct or remove such statements if they know them to be false or misleading

Standard of Practice 16-20: REALTORS®, prior to or after their relationship with their current firm is terminated, shall not induce clients of their current firm to cancel exclusive contractual agreements between the client and that firm. This does not preclude REALTORS® (principals) from establishing agreements with their associated licensees governing assignability of exclusive agreements.

Explanation: A change in the wording of this Standard of Practice clarifies that REALTORS® may not encourage or induce clients with their current or former firm to cancel exclusive agreements regardless of whether it was the firm or the licensee who terminated the relationship.

If you have questions concerning the 2010 NAR Code of Ethics and Standards of Practice, please contact Peggy Lynch, Director of Professional Development and Broker Services, at plynch@RARealtors.com or 804-422-5006. L

PROFESSIONAL DEVELOPMENT

Short Sales & Foreclosure Resource (SFR) Certification

By Jennifer Brown, Director of Education

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ccording to NAR, nearly one-third of existing home sales in 2009 were short sales or foreclosures, a growing trend that is not expected to slow anytime soon. Preparing oneself to deal with this trend is essential to staying current in the real estate profession. To meet the needs for professional education on this emerging “traditional” transaction type, NAR has launched a new certification called the Short Sales and Foreclosure Resource (SFR) certification. This program is designed to help REALTORS® gain the confidence and knowledge to assist clients who are facing a short sale or foreclosure, and to help buyers who are looking to purchase those types of properties.

The SFR certification program is offered by the Real Estate Buyer’s Agent Council (REBAC), a division of NAR, and includes training on how to manage short sales, foreclosures and real-estate owned transactions. The program also provides resources to help REALTORS® stay current on national and state-specific information as the market for distressed properties continues to evolve. It

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is designed for agents at all experience levels and it provides information on how to direct distressed sellers to finance, tax, and legal professionals, qualify sellers for short sales, develop a short-sales package, negotiate with lenders, tap into buyer demand, safeguard commissions, limit risks and protect buyers.

Other benefits to becoming SFR certified include access to an electronic short sale and foreclosure toolkit; free webinars with all of the latest information that can be downloaded and watched anytime; the right to use the SFR logo in marketing materials; access to an exclusive online network of other SFR certified REALTORS® with whom to network and share ideas; and designation on www.realtor.com and www.realtor.org as an SFR certified REALTOR®, a database that is searchable by clients.

To earn the SFR certification, REALTORS® must complete the SFR application along with a one-day education program and three free one-hour webinars. One-day education requirements to earn the certification can be either the ABR elective “Short Sales & Foreclosures: What Real Estate Professionals Need to

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Know” or the CRS elective “CRS 111: Short Sales & Foreclosures - Protecting your Client’s Interests.” Both courses count towards the SFR certification and their respective designations of Accredited Buyer’s Representative (ABR) or the Certified Residential Specialist (CRS), which carry continuing education or post licensure towards license renewal. Currently, as part of the Right Tools, Right Now initiative, NAR is waiving the application fee through the end of March 2010, which translates to a savings of $175.00.

After attending either the ABR or CRS Short Sales & Foreclosure elective course, visit the SFR website, www.realtorsfr.org to download the SFR application and watch the three free one-hour webinars to fulfill all requirements.

Completing and returning the application to REBAC before March 31, 2010, qualifies for the waiver of the $175 application fee.

Don’t delay! Join over 16,000 REALTORS® who became SFR certified last year and distinguish yourself as a Short Sales & Foreclosure resource. L

How do I become SFR certified?

Follow these steps: 1.

2.

3.

4.

5.

Be a member in good standing with the National Association of REALTORS®.

Take and pass the one-day Short Sales and Foreclosures course offered by either ABR or CRS. View three free one-hour webinars on related short sale and foreclosure topics.

Download and complete the application form.

Send your completed application to NAR at SFR@realtors.org

Deductible Portions of 2009 Dues and Assessments NAR: 67% of the $80 dues is deductible ($54) 100% of the $35 Public Awareness Campaign Assessment VAR: 86.35% of the $110 dues is deductible ($95) 100% of the $10 issues mobilization fee 100% of the $30 New Member Fee and $33 Building Assessment charged to new members RAR: 90% of the $120 dues is deductible ($108)

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Education Calendar

March - May 2010

Classes at RAR North (Three Chopt Road Office) MARCH 4

Property Management: The Application Process

9:00-11:00 pm

11

Property Management: Top Ten Leasing Mistakes

9:00-11:00 pm

11 & 12

16-hour Continuing Education - Parts 1 & 2

8:30-5:00 pm

16

e-Pro Workshop

9:00-10:30 am

17

GRI 412: Construction & Selling New Homes

8:00-5:00 pm

18

Property Management: Evictions & Collections

9:00-11:00 pm

24-26

Broker Appraisal

8:30-5:00 pm

APRIL 7-9

Broker Management

8:30-5:00 pm

12

Broker Exam Prep

9:00-4:30 pm

21

GRI 404: The Cyber-REALTOR®

8:00-5:00 pm

22 & 23

Property Management Basics for Residential Agents

8:00-5:00 pm

27

Fair Housing for Property Managers

9:00-12:30 pm

29

16 hour Continuing Education, Part 1: Mandatory Topics

8:30-5:00 pm

3&4

ABR Core Course

9:00-5:00 pm

5

ABR Elective Course: e-Buyer

9:00-5:00 pm

7

Broker Continuing Education

8:30-5:00 pm

7

Virginia Residential Landlord Tenant Act (VRLTA) Update

9:00-4:00 pm

10 & 11

16-hour Continuing Education - Parts 1 & 2

8:30-5:00 pm

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GRI 405: Marketing the Property

8:00-5:00 pm

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Effective Contract Writing

9:00-12:00 pm

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Classes at RAR South (Midlothian Turnpike Office) MARCH 17

Advanced Contract Writing

9:00-12:00 pm

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Broker Continuing Education

8:30-5:00 pm

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16-hour Continuing Education, Part 1: Mandatory Topics

8:30-5:00 pm

16-hour Continuing Education - Parts 1 & 2

8:30-5:00 pm

16-hour Continuing Education, Part 1: Mandatory Topics

8:30-5:00 pm

APRIL 12 & 13 MAY 26

For more information or to register, please contact:

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The Real Estate School / Tel: (804) 422-5016 / E-mail: edu@RARealtors.com

or log onto www.RARealtors.com and click “Education”

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What’s Missing?

You. Every year, there are legislative proposals that place the real estate industry at risk. Make your RPAC investment now to ensure our continued success. Go to www.RARealtors.com today!

Richmond Association of REALTORS® 8975 Three Chopt Road • Richmond, Virginia 23229 Ph 804.422.5000 • Fx 804.422.5088 Now More Than Ever

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Professional Courtesy: A Refresher Real estate is a highly interactive and sometimes stressful profession. Your role as a REALTOR® requires you to communicate with many different people and to use your skills, knowledge, and personality to facilitate a smooth and successful transaction.

Maintaining professionalism from beginning to end during the buying or selling process is of the utmost importance. Here are a few important reminders regarding ways to show professional courtesy to your fellow agents and clients:

• Read the showing instructions and follow them.

• Call before a showing whenever requested.

• Keep every appointment made, and arrive on time.

• Call the agent if an appointment must be cancelled or changed.

• If you pick up a key, return it quickly. If you use the lockbox, put the key back right away.

• Leave the home in the same condition you found it.

• Never leave a listing unlocked. Check all the doors and windows before leaving.

• Turn off all the lights when finished showing the home.

• Keep your customers and their children in sight at all times.

• Leave your business card.

• Provide feedback to the agent, not to the homeowner. Let the agent report back to their client.

• Do not discuss an agent or their firm with someone else’s client.

• Call the listing agent afterward to let them know how it went.

• Show everyone in the transaction the same courtesy you would expect.

Finally, remember that listings are not items, but other people’s homes. How you behave in their home, toward other real estate agents, and others in general, is a direct reflection on the industry. Let’s resolve to make every possible impression a good one.

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Proud to support Affordable Housing Awareness Week.

April 18–24, 2010 Please join us.

Visit www.AffordableHousingRichmond.com