This post is part of a series covering my journey of discovery through the history of the National Association of REALTORS. As my guide and my inspiration, I am using a book published by NAR, “100 Years in Celebration of The American Dream,” celebrating the Centennial of NAR. The following was inspired by reading just the first ten pages.

The National Association of REALTORS turns 100 years old this year. That is pretty old, as organizations go. It is old enough that there is not one single member of our organization alive today that can remember the birth of NAR. This is both good and bad.

The Good

100 years is a long time. Here is some simple math:

1908 to 2008 = 100 years

1776 to 2008 = 232 years

NAR has been around for ALMOST HALF OF AMERICAN HISTORY!

The people who make up the membership of NAR have lived and worked through many of the significant events in American history.

The fact that our organization is 100 years old is a testament to the vision and hard work of the men who met together in Chicago 100 years ago with the idea of starting a national organization of “real estate men,” as they were then called. As a general rule, bad ideas don’t usually stick around for 100 years (I can think of a few exceptions, but most of them required a war or two for survival). Those men, and all those who have come and gone since, obviously did something right.

The Bad

100 years is a long time. Our culture has changed quite a lot over that time. Attention spans are much shorter, and so are memories. This means that much of what has been learned might have already have been forgotten. This fact is what makes the NAR Centennial book such an important publication. We should always be reminded of those who came before, we should always be willing to learn from their example and from their work. If we fail to do that, then the end result is that all of their hard work will have been in vain. I hope very sincerely that those of us who have chosen to bear the title of REALTOR today, will do our best to honor those without whom our privileges would not be possible.

Let’s Begin at the Beginning

I dare think that the practice of real estate at the turn of the 20th century would be almost completely foreign to REALTORS practicing today. When I say this, I’m not talking about the many technologies that make our daily work life more efficient. I’m talking about the actual cultural, professional, historical, and legal climate that was present 100 years ago for real estate men.

Some things to consider about the world of real estate 100 years ago:

1) Widespread private real estate ownership is brand new. I think it is pretty safe to say that the majority of you reading this post own the home in which you currently live. There is also a pretty good chance that you live in a suburb, or even a rural area (like me). 100 years ago, that was not the case. Most Americans did not own their homes, and the cities held the vast majority of the American population. The concept of the suburb hadn’t even been born yet. It was about this time, however, that many cities and towns were rapidly expanding. This meant that those expanding cities and towns needed a place for people to live, they needed real estate.

2) There were no licensees. 100 years ago, anyone, I mean ANYONE could call themselves a real estate dealer. There were people called “curbstoners.” These unscrupulous individuals would basically set up shop as a real estate dealer on the sidewalk (the curbstone), and bilk or swindle anyone they could. Have you ever been in a city and been approached by people handing out flyers for something, or saying, “psst– come check out these watches and handbags I have. . .” now imagine if those people were peddling real estate. Scary, but it was happening all over.

3) There were no rules or laws governing transactions. We live in a world with RESPA. 100 years ago, however, Real estate transactions were governed by simple contracts common law. All that was needed was an agreement between the buyer and the seller. No mountains of paperwork, no lengthy disclosures, no warrantees, and very little recourse if they whole thing went awry.

These Conditions Warranted A Solution

The ethical practitioners of real estate recognized there were problems. What they didn’t have was a viable way of solving them. They did recognize, however, that the problems were similar all over the country. As the number of real estate practitioners grew, so to did the need for cooperation and collaboration among them if they were to address the issues facing their profession.

It took the leadership and vision of some of the nation’s largest real estate boards at that time to address these issues and launch the organization that would eventually be known as the National Association of REALTORS. We all know, however, what can happen to the best laid plans of mice and men if there is no leadership to guide them.

The necessary leadership would come first from the man who would eventually be the 5th President of NAR. More on him, and the seed that he planted, in my next installment. . .

One of the most controversial Standards of Practice to come from NAR in long time, would have to be the new Standard of Practice 12-12, which became effective January 1, 2008.  Just to refresh your memory, Article 12 is known as the “truth in advertising” article.  We have come a long way from the published newspaper ad.  Years ago, that was pretty much all that was available to REALTORS to spread the word about their new listing.  Now, advertising can be instantaneous thanks to the internet.  In addition to company web-sites, many agents have their own personal website.  Some of the URLs and domain names used can be either dull or attention getters, and sometimes down right misleading.  The new Standard of Practice 12-12 states:  REALTORS shall not:  (1) use URLs or domain names that present less than a true picture, or (2) register URLs or domain names which, if used, would present less than a true picture. 

The new NAR Case Interpretation 12-20 address this new Standard of Practice.  So, here it is–you be the judge–REALTOR A, a residential broker in a major metropolitan city, spent several weeks each year in his cabin in the north woods where he planned to retire one day.  Even while at home in the city, REALTOR A stayed abreast of local news, events, and especially the local real estate market by subscribing to the print and on-line editions of the local newspaper.  He also bookmarked a number of north woods brokers’ websites to stay current with the market and to watch for potential investment opportunities.

One evening while surfing the internet, REALTOR A came across a URL he was unfamiliar with–northwoodsandlakesmls.com.  REALTOR A was pleased to see the MLS serving the area where he vacationed for so many years had created a website accessible to the public.  Clicking on the link, he was surprised to find that the website connected with REALTOR Z’s company website, not an MLS website.  Having had prior dealings with REALTOR Z, REALTOR A spent time carefully scrutinizing the site.  He noted, among other things, that the name of REALTOR Z’s firm did not include the letters MLS.  REALTOR A sent a letter to the association’s EO asking whether REALTOR Z had been authorized to use the name northwoodsandlakesmls.com and whether it presented a true picture as required by Article 12 of the Code of Ethics.  REALTOR Z filed a complaint alleging that when he clicked on what appeared to be a real estate-related URL that included the letteres “MLS” he expected to be connected with a website operated with a multile listing service.  He stated he felt that REALTOR Z’s URL was deceptive and did not meet the true picture test.

At the hearing, REALTOR Z defended his URL on a number of grounds including the fact that he was a participant in good standing in the MLS and he was authroized to display other participants’ listings  on his website under MLS rules.  “If I used `MLS’ in the name of my firm, I could see how that might be perceived as something less than a true picture,” he argued, “but by simply  using MLS in my URL I am telling consumers that they can get MLS-provided information about properties in the north woods from me.  What could be truer than that?”

How do you think the hearing panel ruled?  Do you think REALTOR Z  was found in violation of Article 12?  What do you think of the new Standard of Practice?   

Lem Marshall, Special Counsel for the Virginia Association of Realtors gave a presentation this morning called “Advanced Short-Sales”. It proved to be an excellent presentation that probably should have been called “What Realtors REALLY need to know about short-sales to successfully deal with one”.

Some of the things in the presentation that Lem covered were:

• The history of economics and lending in America, how credit markets work and why we’re in this mess.
• Prices may not be at the bottom yet. It may take another 12 to 18 months to get there.
• Knowledge is the key. Make sure you get everything out on the table regarding the seller’s financial and personal situation. You can not properly help them without knowing all the facts and their overall situation - past, current and future.
• Make sure you get the borrower’s permission, in writing, in order to publicize the fact that it’s a short-sale. You must have the seller’s permission to disclose personal and financial information about them, which is what you’re doing by publishing that it’s a “short-sale” or stating “subject to third party/lender approval”.
• Make sure that you correctly word the “subject to third party approval”/bank contingency. How you word this will directly affect whether you face potential issues in the future or not.
• If the bank says that they want the commission lowered from what you’ve agreed upon with your client, don’t give in so easily. Many Realtors in attendance said that they said “no” to the bank’s request and that the bank was okay with it.
• If the bank insists on lowering your commission, try asking them to counter at a higher price that covers both your and the Selling Broker’s commission.
• Remind the Selling Agent (Buyer’s Agent) that the process of approval by the bank can take 60 to 90 days, if not longer. This will help alleviate an upset agent and buyer down the line.
• Short-sales can be messy. Be prepared to do much more work than a traditional resale or even a foreclosure.

There were many other great points that Lem made that Realtors can use on a daily basis when dealing with short-sales. I recommend watching the video of Lem’s presentation once it’s up on the Dulles Area Association of Realtors’ web site sometime next week. I’ll publish a quick post when it’s up to alert everyone so you can go check it out.

Recently, I stopped-in at my local association (the Charlottesville Area Association of REALTORS), because my wife and I had to exchange our lock box keys. Due to the fact that Supra was having some network difficulties (big surprise), the process took more time than expected.

As we were milling about the office, I noticed a book I had never seen before. I like books, and this book was particularly interesting to me. It was, National Association of REALTORS: 100 Years in Celebration of the American Dream. The book caught my attention for two reasons–

1) It was big, blue, shiny, and had a nice cover graphic.
2) I had no idea that such a book even existed.

I spent a few minutes flipping through the book and quickly realized that I had been waiting for a book just such as this one.

Why Don’t We Know More REALTOR History?

As I flipped through the book casually, browsed the photos, and even read some of the passages that caught my attention, it occurred to me– why didn’t I already know some of this stuff?

This is my 5th year as a REALTOR, and up until the point that I picked up the book and started reading, I had no knowledge of just about anything that was in it. NONE. NADA. ZIP.

In my mind, that is a travesty. Part of it is my fault, admittedly, since I never really took the time to search this type of historical information out. There is also another issue at play here, though. One that I have become particularly aware of in recent weeks– there is no discernible culture of REALTORS. By “culture” I mean that there seems to be very little that we share that binds us together. No sort of shared knowledge of the past that ties in with the present. Other professions have this. A few examples:

First– Name me the first President of the National Association of RELTORS way back in 1908. Or how about the year that the word REALTOR first became a registered mark.

Can’t do it? Why not?

When I was studying to go to law school, just about any law student could give you the names of DOZENS of historically prominent attorneys. The same goes for doctors, scientists, writers, you name it. Heck, up until I picked up that book, I could name more prominent auto manufacturers than I could historically significant REALTORS. That’s not good.

What I Plan to DO About This Problem

So here’s what happened. I picked up the book (pretty much by accident), and quickly realized that it is filled with a lot of great information. I also quickly realized that if I didn’t know about the book’s existence, it would stand to reason that there are a whole bunch of other REALTORS who are similarly unaware. Like I said, I like books, so I bought my very own copy of this one.

Maybe you like books, maybe you don’t. Maybe you will by this one, maybe you won’t. Point is, you should still learn some of the lessons contained inside. That is exactly what I aim to do here.

Every week, as I make my way through the book, I will highlight the stories or issues that I find most interesting, and most critical. I won’t just re-print them straight from the book (that would be a copyright violation, and even worse, potentially boring). What I will do is share some of those stories in my own voice and with my own insights and editorializing, good or bad. Of course, I will reference them in the book, that way you can find the source, if you want.

My hope is that, first and foremost, you will learn something about the history of our organization and our profession. I also hope that you will come away with a greater understanding and appreciation for those who have come before us and the issues that have shaped the organization into what it is today.

And hey, who says we can’t have a little fun along the way. . .

This week I received an e-mail from the Virginia Real Estate Board that, among other things, advised the schools that the requirement for CE and PLE instructors have changed. This is a good start, but we must do better…

Up to this point, schools submitted their classes to VREB for credit and included an instructor’s name and bio. There wasn’t much more required than a loose idea that the instructor could teach the topic. The new requirements state that the instructor must have three years experience in their area of instruction, letters of reference, etc… I am a fan of high quality instruction, but I am not sure that we’re attacking the issue of practitioner competency from the correct angle. I fully agree that it starts with the instructor. Not everyone who is teaching is effective. These requirements, although a bit cumbersome, will help.

Beneficial Changes?

There are other changes going on this year as well. Two significant changes are coming up as of July 1, 2008. The first is that licensed Brokers (Associate, Supervising and Principals) will be required to earn eight additional hours, on top of the limited services two hour requirements and the 16 hours of Continued Education. It’s obviously a good move to require those who carry the title of broker to get that higher level of training that most consumers perceive the broker as having. I’ve been surprised at the number of Associate Brokers who have balked at this requirement. I don’t even know what to say about that, other than the fact that it’s necessary and it’s only one extra day out of the 730 that you have between license renewals.

The other significant change is that VAR and VREB worked together to have legislation passed to require agents licensed after July 1, 2008 to obtain 30 hours of Post Licensing credit in the first 12 months of licensing. The theory, as I understand it, is that there are obvious failings in the pre-license program, as the 60 hour requirement does not typically carry information about the practical practice of real estate. There is so much theory and principle that things such as drafting a contract, short sales and marketing simply don’t find their way into the training.

I fully support the idea that the 30 hours should be “everything that we should have learned in pre-licensing and did not” but I think we’re going to see the nature of unintended consequences. Having sat as an association staffer now for the past few months and getting many daily phone calls from agents who find the relicensing program complicated, I have found that many (most) are taking the path of least resistance and simply taking an all inclusive on-line program. Many of these agents are very honest that the 30 hours can be gotten in 10 hours and they can do it while watching television.

Online Education Isn’t Cutting It

I’ve ventured through some of these online programs, and they can be done in far less time, than the “learner” is given credit for. At some point I have to ask: “Why do we even bother requiring CE or PL hours?” Almost all adult learning studies I’ve reviewed show that online learners have a much lower retention rate than those who learn in a classroom. The relicensing process for many is too complicated and frustrating to keep track of and they feel that there is no other option but these online classes. To compel the issue even further, most schools only have a limited number of these classes approved and don’t offer them often enough.

Learners have to take 30 hours, with 15 of them being in mandatory topics and the other 15 in a variety of electives. No one can get credit for taking any one class more than once. So, if I take “Short Sales” and get my three hours, but feel I need to take it again, I will not get an additional three hours, unless I take that topic through a different school.

How To Gauge The Retention

However, even aside all these issues, my real concern is that we never establish a mechanism by which to gauge the retention of the student. How do we know that the student really learned anything? What’s the point of requiring the student to meet certain criteria, if we’re not evaluating the student to see if they retained the information? I know that by suggesting that written evaluations be implemented I will become the least favorite person here, but really, how can we otherwise gauge our effectiveness? If the student is required to pass a written evaluation, then the instructor will be sure to deliver that material better and the learner will pay more attention.

Here are my suggestions:

First, we should consider requiring all mandatory PLE and CE classes be in a classroom setting, with a written evaluation. (Otherwise, what’s to stop an agent from reading a romance novel or comic book for the three hours I am supposed to be taking ethics?)

Second, electives can be taken in a classroom or online, but if they are taken online than it should require some mechanism to ensure that the learner is interacting at intervals that equal the clock time of the program. So, maybe you have to have mouse or keyboard activity every five minutes for the three hours, or you have to start all over. The technology is out there. All online training should require written evaluations at the end of the course.

Third, licensing and relicensing should be more relevant to the discipline of the practitioner. I am curious to see if anyone else thinks that Commercial, Residential and Property Management should have different licenses, with separate pre-licensing and separate post licensing requirements. There are a lot of different litigious pitfalls involved with these various types of practice and it seems that most all of pre-licensing and post licensing programs are directed to residential.

There are folks smarter than I am looking at the issues and overhauling as we go, but I just don’t feel our current structure is as effective as it can be. I am sure that there are some solid objections to these concerns, but if we’re all interested in improving the competency of agents than we need to find a better way to proceed in the future.

Online BloggerCon registration is now open. 

Thanks to the Dulles Area Association of REALTORS® (DAAR) we are pleased to announce that the second Virginia Real Estate BloggerCon, a full day of peer-to-peer learning with your fellow real estate bloggers, will be held in Leesburg, Virginia on Friday, April 4, 2008. Bring your laptop, connect to DAAR’s free WiFi hotspot, and learn from tech-savvy REALTORS® just like you who run their businesses with a technology flair. The event is FREE, but we are requesting a $10 donation to Habitat for Humanity to be paid when you register.

Date: Friday, April 4, 2008
Time: 10 a.m. - 4 p.m.
Location: Dulles Area Association of REALTORS® (DAAR)
Street: 803 Sycolin Road, Ste. 222 in Leesburg, VA

In true unconference form, the agenda will be set at the beginning of the day by the participants, but some prospective topics are…

• Stupid blog tricks (set up roundtables for Wordpress, Typepad, Blogger and Active Rain blogging platforms, and learn from your peers about how to trick out your blog)
• Widgets that work (from Plugoo to Vyew, Meebo to Wufoo and every crazy Web 2.0 company name in between, what widgets deliver real value?)
• How to write for SEO and not come across like a robot
• Book reports (Wikinomics, Here Comes Everybody, Freakonomics, whatever’s hot on your reading list)
• Legal, ethical and regulatory implications for REALTORS® using social media
• Integrating other social networking sites (Linkedin, Facebook, etc.) into your blogging efforts

Plus, I am very excited to announce that Keith Garner, Managing Director of NAR’s Center for REALTOR® Technology (CRT), will prepare a presentation and join us for lunch. As CRT’s managing director, Keith is at the epicenter of NAR’s member-facing technology efforts, including RETS. Of special note to the blogging crowd, he is one of two people at NAR responsible for instituting the Blogger’s Lounge at NAR’s mid-year and annual meetings.

As a reminder, seating for this event is EXTREMELY limited. There is space for 30, and there are only 21… make that 20 15 12 seats left! Register now!

OK OK I’m going to step up to plate. (do I need a flame proof suit?)

First of all DISCLOSURE: Often I am a dual agent, I work in a niche market - horse properties & farms. I am broker/owner of a small firm Valley of Virginia Real Estate, within my firm I have no possibility of Designated Dual Agency.

When I started in Real Estate I thought seriously about being an Exclusive Buyers Representative but as I started working with buyers & showing farms I discovered many, not all, listing agents of horse properties just did not understand the horse aspects of the property. They were trying to sell the house that oh btw there is a “barn out there too, I’ve never been in it but I think you can store about 6 ponies in it & there’s a riding rink too”. Hint - horse folk usually could care less about the house -they want all the details about the horse facilities. After seeing this type of information more times than I want to count, I started listing horse properties so I could better serve the clients - both sellers & buyers. I guess you could say lack of specific knowledge on other agents part drove me to Dual Agency.

My average time from first contact with a seller or buyer client to closing is often well over a year. I build relationships with clients based on the expected Real Estate expertise & my clients very specific needs which require special knowledge of horses, land, riding styles, hay sources, local instructors, equine vets, show schedules, just to name a few. Most of my sellers require & expect me to be present for all showings - most live in fear of something happening to their horses, dogs, cats. They also know most agents just flat don’t know enough about the horse world to be effective. Buyer clients seek me out because they know I have specialized knowledge of horses & riding.

“Candy has had horses and ridden for a long time and so she was able to understand how functional the farm was. Also, horse people have their own language and she “fit right in” with whoever she showed the farm to”

I’ve had more than one client tell me that if I’d shown up in a fancy car with a dress & heels they would have shared a cup of coffee with me, thanked me for my time & said goodbye. I am one of those blue jean wearing , big loud truck driving agent! So what does all this have to do with dual agency?

On first contact with each seller or buyer I explain agency with emphasis on Single Agent Dual Agency. I let them know up front that my firm cannot offer Dual Designated Agency. I send them home with information on Agency to read. If they are not comfortable with Dual Agency as a possibility, we either make arrangements for referral, identify another agent with another firm that can represent their interests or part ways on good informed basis. This conversation is repeated throughout the process.
Do I recommend Single Agent Dual Agency for everyone? NO!!!
It takes a special REALTOR. One that is a stickler for COE & one that is willing to work hard to do it right. Agency & Agency Law must go hand & hand with the COE. Its hard work, it takes extra time, specific education (I highly recommend taking Marcie Roggow’s Class: Negotiating in Dual Agency), specific consent ( IMHO - above & beyond signing the VAR Form on Agency), specific rules during negotiations, specific education to all parties & above & before all - DISCLOSURE!

As I change from my role as a REALTOR to an Education Director, I find that many agents struggle to understand the sometimes confusing requirements of renewing one’s license. For that reason, I am going to try and lay out how one might renew their license. The classes are available most everywhere, but knowing which ones will actually help you might be more of a challenge. I strongly recommend that REALTORS keep track of their own attendance and what CE/PL/Broker hours were applied.

As a reminder, licensees must renew their licensees at specific intervals. Renewals are every two years, on the last day of the month in the anniversary month of licensing. After July 1, 2008 all agents receiving their licenses after that date must obtain their 30 hours in the first 12 months.

In addition to the hours below, everyone must take 2 hours of Limited Services before their next renewal.

For Post Licensing Agents (everyone in the first renewal cycle)

Required Hours (30 hours)

3 Hours of Agency

3 Hours of Fair Housing

3 Hours Real Estate Law

3 Hours of Offer to Purchase

3 Hours of Ethics and Standards of Practice

15 Hours of Electives

For Continuing Education (everyone who has renewed at least once before)

Required Hours (16 Hours)

2 Hours of Fair Housing

3 Hours of Ethics

1 Hour Legal Update

1 Hour Agency

1 Hour Contracts

8 Additional Hours of Real Estate Related Topics

Broker Management Hours (8 Additional after initial 16 CE hours)

Must be 8 hours approved for Broker Management topics. All licensed Brokers, to include Associate Brokers must take these hours, if they are to renew their license in July 2008 or thereafter.

Ok, so now that you are reminded of the mandatory hours, how do you track it? Start at http://www.dpor.virginia.gov/regulantlookup.

When you open this web page, you’ll see:

Enter your name (or license number) and click on “Real Estate Individuals”. Choose “Search Licenses”.

Once the window opens, click on the “View Continuing Education Hours” link.

On the left you’ll see a breakdown of the required training hours. On the right you’ll see the summary of continuing education hours only if you’re a CE renewal. Post Licensing Agents will see the following blue space on the left:

Post Licensing agents need to click the “To review the specific Post License Education courses that you have completed, please click on the link”. Note that you need to ignore the hours on the right they do not apply, except for the Limited Services hours that will be shown here.

On this screen PL agents will see the school who granted the hours, the class title, the mandatory or elective category of the credits and the summary of hours. Note: I have been told that CE screen will one day be this useful.

This web page is very useful for keeping you on track, but it’s not easy to navigate. I hope this has made it a bit clearer for you.

If you have any problems finding certain hours, call VAR or the Education Director at your local association and they’ll be happy to help you develop a plan to get your required hours.

Well, we knew it was good, we just didn’t expect this overwhelming response!

After just a few months of availability, VAR’s Broker Tool Kit has crossed a significant milestone: 2000 downloads. VAR’s Broker Tool Kit is a comprehensive guide to everything you need to know about starting a real estate brokerage in Virginia. Even if you’ve managed a brokerage for years, you’ll want to keep this resource handy for the times you run up against situations you’ve never encountered. Developed collaboratively by VAR staff attorneys and the Virginia Manager’s Council, this convenient desk reference is free for all VAR members.

Another popular VAR resource making the rounds these days is our 10 Things you should know about today’s Virginia real estate markets. It’s title isn’t concise, but this colorful, engaging piece covers 10 important things to keep in mind about today’s housing market in just a few words. You, your agents, and clients will find facts and figures to put the current housing market into context in a way that acknowledges the flattening market. We encourage you to download a high-quality full-color PDF of this piece, print it, and share it at your next sales meeting and client appointment.

Other pages at VARealtor.com getting lots of traffic recently are the Standard Forms area, our Rookie REALTORS® section, and the REALTOR® Institute page.

Are you taking advantage of us? When it comes to the products and services we aim to provide to REALTORS®, we wish you would! Be sure you get your money’s worth from your investment in VAR by using the benefits we work hard to provide.

As an Educator, I feel that it’s important to look at today’s student, who is quickly becoming tomorrow’s buyer, seller, tenant, landlord etc… In short – your next client.  We know from information such as NAR’s Profile of Buyers and Sellers that the average on-line consumer takes between nine and 12 months before actually engaging in a real estate transaction. 

It’s important for you as a practitioner to know this, so that you can plan and know where to put your marketing investment.  The following is a glimpse of today’s college student and where they spend their time.  Whereas I don’t fully buy into their premise, you should concentrate on how they are learning.  A majority of what we’ll do with the up and coming consumer-group is education.  We are quickly losing the status of “keeper of the information” and are moving into the aggregator that will protect the consumer, by using our knowledge and wisdom to utilize data.