Maryland and Virginia Real Estate and Homes Blog

GOOGLE.  FRIEND OR FOE?

A very thoughtful article by Lisa Hill about Google’s ongoing process of making every word ever written available to the world in Google search, inspires this opposite view. 

BACKGROUND.  The library was often my best friend.  Growing up in Washington, DC many years ago gave me access to many wonderful institutions.  The Public Library in my neighborhood was my “hang out”.  However, hop on a street car or take a long walk and I could visit the Library of Congress, walk the stacks, read, research, learn and enjoy books on any subject of interest.  Appreciating my love of learning and wanting to keep me closer to home, my parents sacrificed to buy a World Book Encyclopedia which, I believe I read every word A-Z.  Reading was truly my hobby and access to these institutions inspired tours to the Museums along the Mall between the U.S. Capitol and the White House. 

ACCESS AND COST.   Clearly I would not have had access to the books in my life if I had lived somewhere else.  My summers were spent at my grandparents’ farm in North Carolina where learning was from public school texts and my grandfather’s lovingly provided lessons.  How limiting is that??  Books that I could select and read by the hundreds would have cost our family $Thousands of Dollars over the years.  We were poor.  Without the libraries in my life, I would have been denied the literary adventures I enjoyed.  However, today, with computer access, a child has access to the world of knowledge heretofore only available to those of us with library access and that is limited to the budget and selections of the local library managers and often local politicians.  Who pays for publications on Google?  Advertisers or subscribers.  However, at the average cost of books, $20-$40-$120, per copy, depending on whether fiction, non-fiction, reference or text, the cost of books alone takes them out of the hands of billions of citizens of the world. 

Access to these institutions helped develop not only a thirst for knowledge but also inspired a lifelong talent for research which served me well throughout school years, raising children, government service and success in several business ventures including real estate brokerage. 

HOW MANY CHILDREN GROW UP WITH ACCESS TO SUCH MAGIC AT THE END OF A STREET CAR RIDE?  However, today, the same adventure is available to young and old on Google.  Not many, until GOOGLE. 

In 1997, Google changed the Internet world.  In 1994 when I discovered the Internet, I knew my business would change and I couldn’t wait to “get on line”, put up a web page to advertise my real estate services to prospective home buyers around the world.  Indeed, I purposefully targeted relocating home buyers around the world in 1995.  It worked then and it works to today.  Google has been a good friend since 1998 when I realized that I better learn to “speak Google” or be left in the dust. 

GOOGLE BOOKS -A few years ago, Google embarked on an ambitious attempt to index, digitize and make available to the world, books and papers in and out of print.  Google probably over reached by including many copyright protected publications in it’s “library”.  The copyright owners sued and several years later a monetary agreement has been reached whereby copyright owners and publishing houses will be paid to enable Google to publish these works, many of which would be unreachable to millions of people who, with access, would love to have access to these publications. 

Enjoy A Midsummer Night’s Dream on Google.  I wonder what Shakespear would think.

Publications covered by the agreement include:

1. In-copyright and in-print books
2. In-copyright but out-of-print books
3. Out-of-copyright books

RESPECT FOR COPYRIGHT OWNERS -As the owner of over 100 Copyright registrations, I have the utmost respect for the right of the copyright owner to decide where and when their intellectual property can be published and used and by whom.  As many ActiveRain friends know, I protect my copyrights vigorously and relentlessly.  However, to date, not one of my competitors who has taken one of my copyright protected maps and used them on their own web page has ever asked me for permission.  No doubt, they would know the answer would be “no”, “no thank you” or “Hell no”.  So, rather than create or purchase their own map image, they take and use maps belonging to me.  Of course I pursue damages.  Why would I not?  However, I don’t pretend to be developing a classical library of maps available to the world in a repository of great works.  I believe Google is doing just that with many publication otherwise not available. 

IMO, GOOGLE IS THE WORLD’S LIBRARY.  Yes.  Anyone, young or old, with a computer connection, will be able to access some of the great literary works no longer available in the neighborhood library, if there is a neighborhood library, many of which have closed due to funding problems. 

Will Google benefit?  Of course, and why shouldn’t they?  This project will bring the works of literary giants to students and adult readers around the world who would never have had an opportunity to read. 

I applaud Google for their ambition, their innovation, their service and their success.

HOMES IN KING GEORGE COUNTY VIRGINIA ARE priced right and offer lovely homes and spacious lots for home buyers.  Homes in King George offer a direct commuter route to Fredericksburg, Dahlgren and Stafford.  Many employees of locations in Charles County MD also elect to buy a home in King George because they can enjoy newer homes at good prices and often acreage. 

New construction, resale homes, properties with acreage, water privileged communities are all available in King George County. 

HOMES LISTED FOR SALE IN KING GEORGE

KING GEORGE COUNTY DEMOGRAPHICS

• Average Income Families w/Children - 71,000
• Population - 20,000
• Land Area - 180 Square Miles
• Population Density - 115
• Growth Rate Annualized 5 Years - 4.2% (high)
• Average Age - 35 Years
• Married - 60%
• Married w/Children - 38%
• High School Graduates - 85%
• College Graduates 30.5%
• Average Commute Time - 33 Minutes

Search Listings

                                           * * * *  HARD CORE REAL ESTATE TALK  * * * *

STATUS REPORT for TARP (Troubled Asset Rescue Plan). 

Inspired by an article by Judi Barrett this morning, I just can’t resist offering a vision of what the “temporary fix” of the financial market looks like today to the average American citizen. 

What did the “fix” involve? 

About $700,000,000,000 for the first round.  That is 7/10ths of a Trillion Dollars. 

Secretary Paulson said:  “Right now, our focus is restoring the strength of our financial system so it can again finance economic growth. The financial security of all Americans - their retirement savings, their home values, their ability to borrow for college, and the opportunities for more and higher-paying jobs - depends on our ability to restore our financial institutions to a sound footing.”

Let’s see.  Sec. Paulson’s goal for TARP was to:  “restore the strength of our financial system” so it could:

• finance ecomonic growth
• stabilize retirement savings,
• stabilize home values
• stabilize ability to borrow for college
• stabilize opportunities for more and higher-paying jobs

HOWEVER, IF ONE LOOKS AT WHAT THE BANKS CAN DO WITH THE MONEY THEY RECEIVED, between $2,000,000,000 and $25,000,000,000 each.

• Banks can buy other banks.
• Banks can loan the money.
• Banks can pay shareholder dividends.
• Banks can hoard the money.
• Banks can pay bonuses to executives and employees.

What is the public’s first concern? 

• Are we going to be able to keep our home?
• Can I get a home loan?
• What will my house be worth next year?
• Will my job be here next year?
• What will groceries cost our family next year?

Question:  What has been accomplished by TARP?

• TARP has not slowed foreclosures or short sales. 
• TARP has not helped employment.
• TARP has not reduced interest rates for home mortgages. 
• TARP has not increased home mortgage lending.
• TARP has not stabilized retirement savings.
• TARP has not stabilized home values.

GRANT ME ONE PREMISE.  The American economy will not recover until the housing industry is stable and . . . . .

• Home prices are stable
• Mortgage funding is available
• Employment is stable.
• Retirement savings are stable. 

The real estate industry starts with folks.  Folks need shelter which means the average family can buy the average home.  Home prices are now at an affordable level.  Yet, buyers are not buying and foreclosure sales and short sales continue the downward pressure on home prices, thereby reducing the number of home buyers who would buy new construction or move up if they could sell what they have. 

Nothing the government has done has helped . . . . yet.

Something lingers in my mind’s eye.  An images of a closing package for a family buying a $250,000 home.  In my market, with a VA or FHA mortgage loan, the package would contain about 50 pages and require about 20 signatures.

Compare that with the TARP outline provided the Congress. 

3 Pages. 

Mmmm.  3 pages to describe a government program to stabilize the American economy.   Amazing!

WHAT ARE THE HOUSING STATISTICS FOR OCTOBER??

RECALLING MR. YUN’S HOUSING REPORT FOR SEPTEMBER 2008 which showed an approximate 7% increase in production. 

NAR STATISTICS DO NOT IDENTIFY THE REAL CAUSE OF INCREASED PENDING SALES.

As reported in October for pending sales in September, NAR Chief Economist Lawrence Yun says that home buyers are responding to more affordability. 

Could it be that the uptick in pending sales for September was an anomaly?  Could it be that the increase in pending sales for September was due to the “pending” deadline, end September, for the Down Payment Assistance programs?

WE SHALL SEE.  In the interim, I pulled stats for closed sales for Prince George’s County, Maryland for the month of August, September and October.  Pending sales are not available for these months since many have closed.  So, SOLD reports were used.

August Closed Sales  - 451.  Average List Price SOLD - $303,215.

September Closed Sales - 579.  Average List Price SOLD - $288,367.

October Closed Sales - 338.  Average List Price SOLD - $274,744.

If the increase in pending sales for September was due to “more affordability”, what can we make of the reduction in sales for October when homes are even more affordable?

Courtesy, Lenn Harley, Broker, Homefinders.com, 800-711-7988, E-Mail.

                                           * * * * HARD CORE REAL ESTATE TALK * * * *

HOW MANY REAL ESTATE LICENSEES CAN THE COUNTRY ABSORB?

ActiveRain member Paul Henderson reflects with sadness the numbers of Realtors leaving the business and the loss of brokerage offices.  Perhaps there is a different view. . . .

HAVE WE SACRIFICED QUALITY FOR QUANTITY?  I believe that our ranks have needed thinning for far too long.  Low entrance requirements encouraged part time, untrained, unskilled and often down right risky agents.  With the numbers of offices that offer minimum supervision, inexperienced agents are not receiving the training to even begin their real estate practice.  I, for one, am very glad to see a retraction.

60 HOURS IN A CLASSROOM AND A MULTIPLE CHOICE EXAMINATION AND YOU HAVE A LICENSE TO PRACTICE REAL ESTATE SALES.  Getting a real estate license is just too easy.  Brokerages recruit new agents if they can find the office because, with a 50/50 split, if these new licensees bring in 1-2 sales of friends and relatives, it was profitable for the broker.  These unskilled agents may be dangerous for the consumer, but they are extremely profitable for the brokerage.  The primary function of many brokers or office managers is not, as is often thought, agent supervision or office management.  A manager’s primary job description is, for many companies, recruiting new agents.  Many large offices offer real estate classes which serve as a primary recruiting tool.

NEW AGENT TRAINING.  We have brokers offering new agent training for a fee, one of which I’m aware in my area is $600.  Is agent training a responsibility of the broker as is suggested by the license law of many states?  Or, agent training a profit center? 

The end result of a reduction in the sheer numbers of licensees and Realtors may result in a much needed rise in the average REALTOR’S annual income:

• While Realtors who have spent two or less years in the business had a median income of $10,500 in 2007, those with three to five years of experience . . . . . .  Inman News, May 2008.

BETTER NEW AGENT TRAINING IS NEEDED.   Recognizing the need for better new agent training, many states are now requiring significant Post Licensing Training which is mandatory for new agents.  This is encouraging.  However, before that new agent has even completed the required new agent training, they are able to represent buyers and sellers. 

WHERE IS THE SUPERVISION?  Agents often ask questions of their peers through such forums as ActiveRain.  We know from reading ActiveRain posts that many agents are not skilled in the most fundamental skills required to represent the consumer in a professional manner. 

Experienced agents and brokers may write about financing types, property valuation, contingencies, settlement procedures, real estate and mortgage regulations, etc,.  Inexperienced and unskilled agents ask “how to” questions.  The risk is that the answers they receive will not be accurate or reflect the license law of their particular state.  It is their broker to whom their “how to” questions should be directed.  Unfortunately, many brokers and managers are preoccupied with office routines and recruiting new agents.  The name of the game for growing brokerage companies is market share of agents and listing inventories. 

Much of the “training” received by new agents has little to do with contract management skills or license law.  Most office meetings are sales training session, sharing listing information, broker products, etc.  Sales training is paramount for brokers because new agents learn early on that the most important part of their job is getting listings through contacts with friends, relatives, neighbors, spheres of influence, farms, etc. for property listings. 

WHY ARE UNTRAINED AGENTS RISKY?  Below is a listing of the categories of consumer complaints to the Maryland Real Estate Commission.  None of the categories of complaints are related to business development.  Of course, many abuses of the Realtor Code of Ethics would be filed with the Real Estate Associations of Realtors or Real Estate Boards of Realtors and not the Commissions or Boards regulating licensees.  But, it’s interesting to review the causes of complaints to the licensing authorities.  While there may be agents that violate license law through habit, negligence or expediency, I believe that most violations below result from lack of experience and/or training. 

TOP REASONS FOR CONSUMER COMPLAINTS:

Failure to disclose material facts
This could be to buyer or seller.  For a listing agent it could be failure to disclose flooding.
For a buyer’s agent it could be failure to disclose financial condition, insufficient funds for escrow.

Giving advice to buyer or seller that would result in future problems.
This includes telling buyers that home inspections are a waste of money. 

Failing to keep copies of contracts and provide copies to buyers and sellers.
Buyers and sellers are entitled to have a copy of any document that they sign WHEN they sign.

Asking buyer or seller to sign blank forms.
Asking sellers to sign blank listing forms or buyers to sign blank contracts or addenda.

Failing to provide Disclosure/Disclaimer Forms
Failure to have seller complete the forms and/or failure to provide to buyer before the contract is
complete represents an incomplete contract. 

Not depositing escrow funds within 7 days of ratification of contract.
Brokers control escrow accounts and money is deposited immediately following contract acceptance.

Failing to disclosure Deed Restrictions or Covenants by Distribution of HOA or Condo Documents
Buyers have a period of time to review and rescind a contract when documents are received. 

Changing the terms of buyer financing from conventional to FHA without agreement of seller.
This changes the net to the seller.  Buyers making application with new lender and not pursuing loan
accepted by seller when contract accepted. 

Failure of agents to use the full name of their broker in advertising.
The consumer must be able to contact the broker through the agents advertising.

Agents failing to disclose known flooding in listing.
If the agent knows, they must disclose, even if the seller doesn’t want to. 

Source:  List obtained from course material at a Continuing Education class in April, 2007.

WE DON’T NEED 1,200,000 REALTORS.  WE NEED SKILLED AND EXPERIENCED AGENTS.   

LOUDOUN COUNTY PUBLIC SCHOOLS have become one of the most attractive features about living in this lovely area of Northern Virginia. 

For home buying families with school aged children, one of the first things I’m asked is for information about the public school system.   All Loudoun County Test Scores are on line for review.

On November 4, 2008, Loudoun County voters will be asked to approve a Bond Referendum to vote on the method of funding the purchase of three school sites when they go to the polls. 

1. Funds to build and equip a new Ashburn/Dulles Area Elementary School and a new Dulles Area High School. 
2. Amount $104,045,000.  The bond will be divided into two parts with $21,810 for the Elementary School and $82,236,000 for the High School. 

Any one who has toured real estate in the Eastern Leesburg / Ashburn area will recall the dynamic nature of development in “The Dulles Corridor” over the past 10 years.  The Ashburn area benefits from the expanded tax base and overall growth.  Families will continue to relocate to the area as long as our public schools maintain their excellence. 

                     New Road under construction to complete Battlefield Parkway in Leesburg.

Loudoun County Public Schools are one of the fastest growing in America for over 15 years.  In 1991, Loudoun County served 15,118 students.  Today they serve over 57,000 students.

HOW MUCH WILL THE SCHOOL CONSTRUCTION ADD TO YOUR TAX BILL?

• For homes with a tax assessed value of $350,000, the added tax will be about $43.69 per year.
• For homes with a tax assessed value of $500,000, the added tax will be about $62.42 per year.

Based on a 20 year repayment at an annual interest rate of 5%.

SUPPORTING of PUBLIC SCHOOLS PROTECTS THE MARKET VALUE OF LOCAL REAL ESTATE.

Courtesy, Lenn Harley, Broker, Homefinders.com, 800-711-7988, E-Mail.

A NEW PARADIGM FOR BUYERS AGENTS. TAKING CONTROL OF YOUR BUSINESS (edit/delete)

IMPROVE YOUR LEVEL OF SERVICE AND SELL MORE REAL ESTATE BY TAKING CONTROL OF YOUR BUSINESS.  Use your time wisely and save it for serious home buyers.   

We often read about agents who show properties to buyers for months and sometimes years.  That’s very nice and may result in a sale.  OR NOT.  However, in the long run, I believe that buyer’s agents will improve their business and income if they take control of their business and establish ground rules for the agent and the buyer. 

GRANT ME THE FOLLOWING PREMISES:

• Real estate agents know the listing inventory far better than the average consumer.
• Real estate agents understand market value far better than the average consumer.
• Real estate agents are more familiar with mortgage financing than the average consumer.
• Real estate agents are more familiar with the Contract of Sale than the average consumer.
• Real estate agents have observed more home inspections than the average consumer.
• Real estate agents are more familiar with real estate settlements than the average consumer.

EXPERIENCE IS THE AUTHORITY.  Given the above, why do so many licensed real estate practitioners permit consumers to control the home buying process?

THE INTERNET EMPOWERED CONSUMER often believes that they are, through “their own research on the Internet”, experts in finding, buying, financing, inspecting homes listed for sale.  I dispute that premise.  A consumer who is a first time home buyer, second time home buyer, home seller, etc. cannot possibly have the knowledge and experience of a real estate agent or broker who has closed or managed 5-20-100 or 500 sales transactions for buyers or sellers.

ARE WE MANAGING OUR BUSINESS or ARE WE A WALKING KEYPAD? 

The walking keypad syndrome manifests itself when a licensed real estate practitioner permits a consumer to

• Select the homes to tour.
• Obtains loan approval without consulting with the agent.
• Contacts the agent an hour before they wish to see a house they found on the Internet.

Many consumers believe that, because of all the information and free advice found on the Internet, that they are competent to make real estate brokerage decisions without consulting an agent.  Free advice is not always good advice.

THE NEW PARADIGM FOR REAL ESTATE BUYERS AGENTS:

The Internet presents use with wonderful opportunities to offer our services to buyers who conduct their search for homes on the Internet.  However, don’t be fooled.  Most consumers use the Internet to FIND HOMES, NOT AGENTS.  We welcome buyer contacts from our blog or web page.  However, the Internet empowered consumer is not likely to have your best interest in mind.  Agents must learn to engage Internet leads or referrals with friendly helpful services.  However, we must maintain control. 

DON’T BE A TOUR GUIDE.  Make sure the consumer is qualified for the price range for homes about which they inquired.  We have a duty to the home sellers to make sure that buyers touring their home is qualified.  

DON’T PUT BUYERS AND AGENTS AT RISK OF INJURY.  Schedule home tours when there is sufficient time to avoid rushing.  Don’t let the buyer persuade you to look at “just one home” after dark or in peak rush hour for the area.  House numbers are hard to find and walking unfamiliar properties in the dark is dangerous. 

DON’T LET THE BUYER ARRANGE THE TOUR.  Arrange the tour route based on geography and not the ones that the buyer want to see first, etc.  I have spoken with buyers who want to prioritize the tour.  The agent has the tools to arrange efficient tours and not backtrack all around to get to homes.  The agent is the one who makes appointments and needs to schedule accordingly.

DON’T MEET STRANGERS AT A LISTING.  If possible, meet buyers at an office or convenient location and drive them to properties.  This gives the agent the opportunity to have a friendly conversation with the buyer.  Nothing bonds a buyer and an agent better than a friendly conversation.  Concurrently, you aren’t sending a consumer to a listed property without an agent.

DON’T BE A DOORMAT.  At peak traffic times, it is possible for a buyer to be delayed.  Based on the weather, time of showing, traffic, etc., have a reasonable wait time, 15-20 minuted pre-determined.  If the buyer has not arrived without calling, cancel the appointment and go about your business.  Waiting an hour for a buyer to show is not going to make them show. 

LEARN TO IDENTIFY SERIOUS BUYERS FROM LOOKERS.  Always ask a consumer if they are working with an agent.  Last minute calls from consumers who want to look at one home on short notice is a clue.  They are usually already working with an agent who can’t accommodate the buyer at the desired time.  Don’t be a stalking horse for other agents.  If you try to recruit the buyer for yourself, you’ll have nothing more than a disloyal buyer. 

AVOID LONG BUYER AGENCY AGREEMENTS.  Buyer representation agreement that are for 3-6-12 months are an invitation to the buyer to look, look, look for 3-6-12 months.  Short initial Agreements encourage the buyer to look now and make decisions.  The agreement can always be extended if the parties, buyer and agent, are working well together.  However, a short initial agreement gives the agent an opportunity to make sure that the buyer is serious, qualified, available, accessible.  Long agreements don’t make buyers loyal.  All that does is give the agent the contract on which to pursue litigation if the consumer buys with another agent or on their own. 

SCHEDULE TOURS EARLY AND OFTEN.  Let the buyer understand that, to help them find the best home for their money in their preferred location, you, their agent will be out previewing and researching homes for them to view.  If the buyer is not willing to schedule future tour dates, they may not be serious buyers.  If at the end of 2-4 weeks the agent doesn’t believe that there is a likelihood that the buyer is ready, there is not need to do any more previewing or research. 

NEXT!! 

WILL THE HOME MORTGAGE INTEREST DEDUCTION SURVIVE THE GOVERNMENT’S NEED FOR $$$$$$$$?

                                            * * * *  HARD CORE REAL ESTATE TALK  * * **

“powerful House Democrats are looking at eliminating most of the $80 billion in annual tax breaks for 401(k) investors. ”

The Wall Street Journal notes that “the prospect of these tax increases is now hanging over the economy like a pall, as investors and businesses wonder where and how heavily an Obama Administration and Congress would strike.”

U.S. News & World Reports details plans to eliminate retirement plans as we know them.

CAN THE HOME MORTGAGE INTEREST BE FAR BEHIND??

If Americans lose the benefits of their private and employer retirement funds to fuel the government’s ever increasing need for tax dollars, will this be THE LAST HOPE FOR WEALTH BUILDING OF THE AVERAGE AMERICAN?

If the government changes the retirement benefits of the American citizens to raise Billions in tax money, how long will it be before they target the home mortgage interest deduction???

RETIREMENT ON OUR PAID OFF MORTGAGE AND 401(k) RETIREMENT BENEFITS, A THING OF THE PAST?

                                     * * * *  HARD CORE REAL ESTATE TALK * * * *

IF THE LAWMAKERS AND REGULATORS IN GOVERNMENT AND ON THE HILL HAD A SENSE OF HOW OUR ECONOMY WORKS, THEY’D UNDERSTAND THAT:

“AS THE HOUSING INDUSTRY GOES, SO GOES THE ECONOMY OF THE UNITED STATES OF AMERICA”. 

When the fools in Congress, Fannie Mae, Freddie Mac and on Wall Street reduced housing legislation and regulation to a mechanism for enhancement of their personal piggy bank, they were guilty of no less than economic treason.  Our economic recovery and lasting individual financial health depends on the health and viability of the housing industry. 

WHERE IS YOUR MONEY?  It has been estimated by many financial experts that about 80% of the individual wealth of Americans is the equity in their real estate holdings, residential and investment properties. 

THE 201(K)?   The loss of personal residential real estate equity is only half of the picture.  The savings of many Americans is in their 401(k) savings and retirement accounts which have been reduced by about half due to the decline of what??. . . . . . .  the housing industry.

THE ECONOMY FROM THE BOTTOM UP.  Consider for just a moment the many Americans who have lost their source of income due to the collapse of the new home market:  Entire building segments including builders and the many skilled tradesmen employed in the construction of residential real estate.  Building trades including electricians, carpenters, plumbers, masons, roofers, painters, dry wall workers, landscapers, well drillers, mechanical systems installers, architects, draftsmen, material suppliers for wood, siding, roofing, windows, concrete, tile, carpet, flooring, lighting, plumbing, appliances, and so many, many more. 

Of course, when the new home construction industry declines, the millions of Americans who rely on that income for consumer spending for food, transportation, clothing and all of the basics for maintaining a consuming household.

1,000,000 REALTORS WORKING PART TIME.  The collapse of the housing and financial industry caused the incomes of hundreds of thousands of real estate sales and mortgage financing employees dramatic losses in average income.  Real estate agents, brokers and mortgage loan representatives are citizens too and we rely on real estate brokerage for our incomes.  We are also consumers and have mortgage payments, car payments, need for clothing, transportation and other consumer goods as with all Americans. 

IS THE FOX GUARDING THE HEN HOUSE?  We, the real estate and mortgage representatives don’t have unions or governmental advocates seeking to protect our incomes.  In fact, far to many of the entities designed to protect the consumer consider real estate agents, brokers, loan officers and others in the housing and mortgage industries to be enemies of the consumer.  That mideset defies logic, but it’s been demonstrated many times over.  Every state in the nation has a Real Estate Commission or Real Estate Board with a mission to “protect the consumer” ostensibly from the real estate agents and brokers.  Growing numbers of states are in the process of conducting or promulgating laws to protect the consumer from mortgage companies, mortgage brokers and loan officers. 

THE TRICKLE UP COLLAPSE.  The collapse of the housing industry was felt at the depths of the real estate and mortgage industry.  The vast majority of homes sold were done so with mortgage financing.  Without home sales, loan officers, underwriters, processors, appraisers, real estate attorneys, title officers, surveyors, inspectors and so many more industry segments have declined to a point where many have been forced to leave their chosen field of employment to seek jobs in unrelated fields.  Financial disruption has touched millions of Americans who relied on the housing industry for their income. 

THE TRICKLE DOWN FIX.  The government, in it’s wisdom, has determined that the cure for the financial disaster is to take equity stakes in vast segments of the financial industry, commercial banks, investment banks, insurance companies, mortgage regulators and more.  At the end of this experiment in government financial and social engineering, the government will own to a limited degree an equity position in banks, investment houses, insurance companies and mortgage regulators. 

While Messers Bernanke, Paulson and Cox ponder ways to rescue the commercial banks, investment banks, rating insurance companies, Fannie and Freddie; the housing industry, individual home owners and the millions of Americans employed in the housing industry are sinking ever deeper into the financial quagmire.  Yet, the very government institutions whose job it is to protect the American citizen, the SEC, the FEDERAL RESERVE, the TREASURY, the CONGRESSIONAL OVERSIGHT COMMITTEES and the OFFICE OF THE PRESIDENT, have determined that the cure is to invest $$$BILLIONS OF DOLLARS into the very entities that profited the most from the mortgage mess that many now realize that they created. 

WE DISCOVERED A NEW REGULATORY THEORY.   Rather than holding the entities responsible for the mortgage mess responsible and relying on the market to determine which entities will survive, the government has decided to let the victim, the American taxpayer pay, with about $1,000,000,000,000 or more $Dollars for an experiment in a new kind of financial management, The Trickle Down Fix.

Ramlings of Lenn Harley, Broker, Homefinders.com.

“It is the never ending debate in real estate.” 

Cindy Jones  offers a thoughtful post today proposing that there is some debate over the ultimate value of an experienced agent vs. a newer agent.   I was not aware that there was a debate.  Cindy is an experienced, thoughtful agent and I’m sure we can disagree without being disagreeable.  So, I’ll simply state that I disagree with the premise.  I believe that experience does matter and that it matters a great deal.  We are assisting helping consumers with often the largest financial transaction of their lifetimes.  Mistakes by agents can cost the consumer many Thousands of Dollars and cause irreparable personal and financial harm. 

LET’S GO BACK TO GO.  We all come out of real estate school on a rather level playing field.  We are almost a blank slate.  Of course, some skills are transferable from other businesses to real estate practice.  However, some skills are unique to real estate practice; market knowledge, contract management, inspection processes, closing procedures, mortgage financing to name a few valuable skills or that makes our job easier and enhances our representation of buyers or sellers. 

60 HOURS OF CLASSROOM INSTRUCTION?  The hours of classroom instruction needed to qualify to take the real estate examination for licensure is woefully inadequate to prepare a licensee to actually practice real estate brokerage or real estate sales.  In fact, most states require that newly licensed agents work “under the supervision” of a broker who has additional experience and has passed an additional examination for the pleasure of operating or managing a real estate brokerage.  Many states also require a specific number of classroom post licensing training.  Still, until the agent has sold a few properties, does it really contribute to their overall ability to work with buyers or sellers?   

ONE TRANSACTION AT A TIME.  Real estate brokerage is a very complicated business and the average newly licensed salesperson will gain knowledge and experience through training but the training they remember the best is through actual practice, one transaction at a time.  Until an agent has sufficient transaction experience, they will be learning their business with each buyer or seller client.  If experience were not so important, we wouldn’t have the mentoring systems so popular today.  Nor would we have the post licensing training. 

I DIDN’T KNOW THAT COULD HAPPEN.  I believe that most critical mistakes are made by agents who have simply never faced or experienced a particular scenario.  Once we have closed a large number of transactions, we then have the experience to manage contracts without mistakes, with good advice and will have fewer failed transactions.  I’ve employed and trained many agents over the years and it takes many sales before most agents even have the confidence, let alone the understanding and knowledge to manage transactions smoothly.  Some believe that trust is the basis for a consumer/agent relationship.  Of course, but so many of our buyer or seller clients are meeting us for the first time through our advertising.  It is far safer for a consumer to “trust” an experienced agent to manage their transaction well than to trust a new licensee to learn on the job.  New agents need transactions, but they should also strive to be as good as they can be benefit from the experience gained over the years through actual transactions.  New agents should also avoid attempting to represent clients outside their area of expertise or market area.  Experienced agents know this, usually from experience. 

IMO, nothing is better than experience.   As a broker with many years experience and hundreds of transactions closed and many hundreds more supervised, I can honestly say, “I learn something on each new transaction”.