It would appear that Gov. Kaine thinks so. (thanks to Richmond Sunlight for pointing out this article)

Kaine is proposing a statewide 25-cent increase in the grantors tax, which is now 10 cents per $100 of assessed value, that owners pay on the sale of a house.

First, the grantor’s tax is paid based on the sales price of the house, not (thanks, Danilo) or the assessed value (still not corrected five days after the original article was published).

Nuts and bolts - currently the median price in the Charlottesville area is about $275,000. Thus, the grantor’s tax paid by the seller on that particular transaction would be about $275 - and that’s a lot of money! If the tax is increased to 25 cents $687.50. Note also that this tax is paid only when a property sells (which is happening less and less frequently).

Make no mistake - Virginia’s (and the localities’) transportation systems need help; they need maintenance and they need new infrastructure - roads, bike paths, rail lines - but taxing only one segment of the population that uses the system is wrong. It is difficult to get hard, accurate data on what percentage of people in this area own their homes, but let’s assume it’s anywhere from sixty to seventy percent. Thirty to forty percent of people in the area won’t pay this tax, yet they will still use our roads, buses, etc. This is not a question of fair, but one of whether this is a reasonable proposal.

One reason that the grantor’s tax is proposed is because it is a bit of a hidden tax - it’s just another one of those fees that gets thrown together on the HUD-1 at closing. In the hot market, no one questioned the tax; now every nickel counts.

Why not a broad-based tax that everyone would pay (gas tax), other than lack of political and intestinal will and fortitude?

To target one segment of the population for a tax that needs to be focused on the entire population, regardless of the state of the housing market, is not right.

The best prediction from the Washington Post article goes to lobbyist Charlie Davis -

“At the end of the day, maybe putting a ‘lockbox’ on transportation funds, maybe a local taxing authority, but that is it. Give Kaine credit for pushing for something. The Republicans can be tagged as obstructionists but . . . Kaine came back with almost the identical plan that was shot down last year, so which is more foolhardy? But the session will provide ample opportunity for a lot of social interaction to discuss the presidential campaign and enjoy some wonderful cuisine at the Capitol snack bar.”

And he’s probably right.

Related posts -

Whom should we tax?

A few Transportation bills

Text of Governor Kaine’s speech to the General Assembly

Transportation talk revs up in Richmond

Too funny not to post - Copy of the Republican Transportation Plan

Have you seen this article in the Washington Post?

Justice Department officials and others who have tracked the case said the agreement will result in more choices and better service for consumers, as well as lower costs because of competition over commissions. Many online firms offer savings because they provide limited services.

To start -

1) What business does the government have in regulating free enterprise?

2) Nothing is preventing others from starting their own MLS.

3) I’d like to know how much this investigation/suit/settlement cost the taxpayers.

4) Those who think the Realtor business isn’t competitive doesn’t know what they’re talking about.

Download the proposed settlement here (and actually read it!)

The Real Estate Bloggers write what I was thinking:

The amazing thing about monopoly and governmental lawsuits against companies over the issues of technology is that by the time the slow gears of justice run their course, the battle has long been over.

This is the case of the NAR. The opening of the MLS systems to online and virtual real estate companies has long been over. The bigger battle will be the viability of maintaining an expensive MLS in the age of Trulias and Zillows.

Zillow and Trulia and Cyberhomes and Roost, etc. didn’t exist in 2004.

And the XBroker wrote the headline I wish I’d written - DOJ vs NAR Lawsuit Turned Into an Exercise in Irrelevancy

Where will we go from here? Realtors will keep competing, buyers will keep searching online, sellers will still think that print advertising works (it does, but not to sell houses), and technology will continue to change at a pace much faster than behemoths like the NAR or the incompetents within our federal government can handle.

Innovation was just fine before the government stepped in, thank you.

Next up - the DOJ should go after Google for having the most dominant search engine.

——————

More coverage:

Agent Genius

Joe at Sellsius provides a legal perspective

An MLS perspective by Michael Wurzer

Bloodhound

Redfin

The original article appeared on Jim Duncan’s blog, RealCentralVA.com and has been republished here at VARBuzz by request.

Paul Krugman validates* what I’ve been saying to clients/readers/prospects for some time.

Any serious reduction in American driving will require more than this — it will mean changing how and where many of us live.

My belief is this - properties that are closer to urban cores - roughly defined as having a coffee shop/grocery store/park/gathering place - will appreciate at a greater rate than those that require more driving to get to said urban centers.

Using back-of-the-napkin math - if when gas costs five bucks a gallon -

If driving to the store/work/etc costs an additional ten to fifteen dollars for those properties not close to urban centers, and the properties the are close to urban centers are able to save that gas money - isn’t it reasonable to conclude that that theoretical savings of three to five hundred dollars a month would then be applicable to one’s mortgage payment?

I am seeing a contraction of the geographic area I service, and clients are now asking more and more about bikeabilty, walkability and public transport. Higher gas prices are likely to impact our business in fundamental ways - among them -

- Business models - buyers pay up front or do more legwork on their own. Hybrid Redfin models or derivations thereof may become more popular and prominent.

- Denser suburbs and fewer exurbs

- Increased taxes - property tax and sales tax - to increase infrastructure, thus affecting affordability

- Fewer Realtors and real estate agents as more discover that the Realtor pot of gold is harder to find.

- MLS’s may have to change their restrictions on neighborhood and area photos and videos - consumers (and Realtors!) want to see more than what is currently offered. If MLS’ want to remain the primary point of contact, they will have to adapt and provide more. Including or excluding properties without physically visiting properties will be more and more important.

- More boutique brokerages will emerge and thrive as the cost of doing business becomes too great for many of the bigger brokerages.

When we are looking back at this recession in five years with the benefit of hindsight, what opportunities will we be thankful we took advantage of? What opportunities will we wish we had seen and seized?

A question for the Virginia Realtors - are you seeing this trend happen now? Are you seeing your market area contract due to gas prices’ precipitous increase?

Could Realtors use this opportunity to advocate for alternative methods of transportation in new developments? Just a thought.

* Don’t shut down as soon as you see Paul Krugman’s name. Sure, the NYTimes has a unique slant, but that doesn’t necessarily mean the information presented in this article is not relevant, applicable and true.

The original article by Jim Duncan on 20 May 2008 on Agent Genius

Related reading:

Could Higher oil prices be a good thing?

High Gas prices are good

Downtown Real Estate Bypasses Housing Crisis: Gas Prices Are Making City Centers More Attractive

The Oil-to-Mortgage-Rates Chain Reaction

Here’s the agenda for tomorrow’s PPAG meeting at VAR’s Headquarters. For those who don’t know, the PPAG committee helps to set the VAR’s legislative agenda for the Association. I’m looking forward to the discussion about convicted felons. If anyone ever has any questions, please let me know. A lot happens in these meetings that directly affect Realtors’ businesses; it’s incumbent on all Realtors to pay attention to what happens here.

1. Call to Order – Chair Suzy Stone
2. Approval of Minutes
3. 2008 General Assembly Up-Date

a. 2008 VAR Legislative Agenda

b. Impact Fee bill

4. 2008 Voting Record

a. Staff Overview

b. Staff Recommendations

5. 2009 VAR Legislative Agenda

a. Timeline

b. Issues

i. License prohibition of convicted felons

ii. Recordation tax / grantor tax assessments – stated consideration

6. 2008 Virginia Housing Commission Work Schedule

Sure, it’s not easy being the new kid on the block. First of all, everyone else seems to know a lot more than you do about pretty much everything. And finding your own way can be really tough. Just ask any new REALTOR®. Getting a real estate career started under the best circumstances is not for the faint of heart. There are all of those regulations, trying to find clients, and then the awesome responsibility of all that money hanging in the balance between a client’s dreams and the harsh market realities.

Market challenges being what they are, we decided to find out from a few of our own new kids on the block – REALTORS® with fewer than three years’ experience under their belts – what it’s like being fresh on the scene of Virginia’s real estate profession.

With hundreds of fair-weather agents hanging up their spurs, we honestly expected to hear a lot about how hard life can be and maybe a little of what starvation feels like. So, imagine our surprise when five hearty souls gathered around a breakfast table recently to talk about their short experience in Virginia real estate, and nary a complaint was heard. In fact, these whippersnappers seem to have a few insights into carving out a successful real estate career that we think could help more than a few old-timers.

The latest to join the REALTOR® ranks are combining tried-and-true, traditional tactics with novel twists that come from having a fresh perspective on the business.

So, grab your own plate of scrambled eggs or bowl of oatmeal and see what these newbies had to say. We bet you’ll be surprised, too…

First things first: why did you become a REALTOR®?Is this your first career…or second, third or fourth?

Karen Newins, ABR, William E. Wood & Associates, Chesapeake I became a REALTOR® because I have a friend who is probably one of the top agents from our area. I had been in the medical fi eld for 15 years. It seemed like real estate would be a good fit for me, and my friend really encouraged me to get into it.

Karen Carpenter, 1st Choice GMAC Real Estate, Staunton My mom has been a REALTOR® for two decades, and I thought it would be a great way to subsidize my family income. I got my license in June 2007.

Bonnie Field, Real Estate III Crossroads, Charlottesville I retired from the medical field after 35 years. So I was looking for something I could do for myself. After working with patients for that length of time…working with people all the time, this is a good way to continue doing that in a different way.

Curtis Butterworth, Parr & Abernathy, Hopewell This is my third career. I practiced law for 19 years and then began to preach ten years ago. I am assistant pastor at Joy Fellowship Church in Hopewell. I received my real estate license in May 2006 and established a team, TheButterworthTeam, with my son, Brandon.

Willam Kimsey, GRI, ABR, ERA Kline & May Realty, Harrisonburg I became a REALTOR® in the spring of 2006. I had been interested in real estate for more than 10 years. Real estate is about helping buyers and sellers come together in a transaction that, ideally, allows both sides to get what they want by helping each other. In negotiation language this is called a win-win outcome.

My background as a teacher and trainer in communication and conflict resolution has prepared me well to serve as a VAR ethics instructor and a communication consultant for REALTORS® and brokers. In addition to completing my GRI and ABR, I am now working towards a broker’s license.

(more…)

It’s not even the “Gateway” anymore. What it is NOT is an MLS. It is not intended to be an MLS and is not designed to be an MLS. It is intended to be the one and only source of real estate information for Realtors to better do what they do.

Don’t be misled by the title “The Real Estate Channel” - it is a fill-in for what is a yet-to-be-determined name for what used to be the “Gateway.” Virginia was well-represented by Bob Blount and Tom Innes on the Presidential Advisory Group* that deliberated over and ultimately delivered the following report linked here (PDF).

Rather than explain what it “is” read the Questions and Answers document - I have omitted some of the questions to focus on those below that highlight the basics, MLS’ and cooperation and compensation. If you have further questions, please ask.

—————

“Q. 1 My MLS meets my needs. I don’t need information about property outside my market area. Why should I support TREC?

A. Comprehensive real estate information currently exists but that information is not always analyzed, categorized, or readily available in an easy-to-use, trusted format focused on the needs of REALTORS®. Consumer-focused real estate websites are gathering more and more information and REALTORS® will come increasingly to rely on those websites. Without convenient, immediate access to information to analyze/interpret for their clients and customers, REALTORS® will no longer be at the center of real estate transactions. TREC will also enable REALTORS® and MLS participants to access essential information about properties in their market area which may be “just outside” the area served by their MLS, and TREC information will be richer and deeper than what is available in MLS compilations.

Q. 3 How will TREC help me make money?

A. Time is money. TREC will ensure that REALTORS® and MLS participants have immediate access to the information they need to serve clients and customers in a “member-focused” format. Much of the information that TREC will deliver will not be otherwise available conveniently or economically.

Q. 4 How does TREC differ from Realtor.com?

A. TREC is not advertising and will not be publicly accessible; TREC will be revenue neutral and will not sell ads to its users.

Q. 6 What about cooperation and compensation?
A. Accessing TREC will not involve offers of cooperation or compensation. Cooperation is a Code of Ethics issue. All REALTORS® cooperate with other licensees except in those rare instances where cooperation is not in a client’s best interests. Cooperative compensation is an MLS issue. TREC is neither an MLS or an association of REALTORS®.

Q. 8 How will TREC impact current MLS vendors?
A. Data standardization may create a more competitive market for MLS.

Q. 10 Is TREC a national MLS?
A. No.

Q. 12 Will the public have access to property data through TREC?
A. No.

Q. 13 Can a property owner opt-out of having their property included in the TREC database?
A. No. TREC is not an MLS and is not an advertising vehicle. Information from the TREC database will not be publicly available on the Internet as are listings on MLS “public sites” or the Internet sites of third-party aggregators (e.g. realtor.com).

Q. 16 What control will individual MLSs have over the rules if they participate in TREC?
A. MLSs will retain complete control over their own rules and regulations, including the authority and responsibility of enforcing those rules.

Q. 18 Who is the “real estate community” that will be involved in TREC? Are they Zillow, Trulia, Google et al.?
A. No. The “real estate community” is MLSs and local and state associations of REALTORS.

Q. 20 How will the integrity of data in TREC be ensured?
A. TREC will rely on – and its success will depend on – quality data being provided
by MLSs and other information sources. Stringent technology safeguards will be
implemented to foreclose the possibility of unauthorized access.

Q. 23 How will duplication of property listings be avoided on TREC?

A. Every parcel of real property will be included on TREC – irrespective of whether it is currently available for sale or lease. Those available for sale or lease will be identified (“flagged”) accordingly.

Q. 24 How will NAR benefit?
A. TREC represents an opportunity for NAR to better serve its members and to facilitate a more efficient real estate marketplace. TREC will keep REALTORS® at the center of real estate transactions. TREC is revenue neutral and costs will be no more than what is necessary to develop and operate TREC. It will not be a revenue source for local associations, state associations or the National Association.
Copyright NATIONAL ASSOCIATION OF REALTORS®”

—————-

Know this - where we started with this project and where we are today is very, very different.
To get to where we are today, read some of the background on how we got where we are today.

FBS blog
RealCentralVA
BHB
Agentgenius

*The author of this post, Jim Duncan, was also a member of the PAG.

Technorati Tags: NAR, real-estate, realtor