Walter

Peace At Last?

Posted by Walter at 7:12 am

Apr 252012

Regular site visitors and subscribers know that I usually have way too much fun with statistics… but here’s one I might just leave alone. According to a “think tank” in Australia, Maine is is the most peaceful state in America. There was lots of good news… including the “fact” that the United States had (in 2011) the most peaceful year in twenty years. It probably helps that across the country the murder rate is down 50% from 1991.

I can’t share too many more statistics without starting to question the conclusions, but there are some interesting numbers. One estimate says that “the average taxpayer pays $3,257 per year on violence and violence containment, while the total economic cost is $460 billion.” I think I’d rather go back to “Maine is the most peaceful…”

This morning as I gaze out the window it’s quite foggy… after a drenching rain there’s this sense of potential… you just know that when the sun comes out the grass is going to come tearing out of the ground so fast we’ll be able to hear it squeaking… the trees have that “fat” look that means any moment the leaves will burst open…

All is well in this corner of the world.

A Little Humor…

Posted by Walter at 7:52 am

Apr 122012

This story has been floating around the internet for a while…

An agent wanted to congratulate his clients on their recent closing. He decided a nice arrangement of flowers would fit the bill.

Later that week, his client called him, perplexed: “Why did you send me a bouquet of flowers that said ‘Rest in Peace’?”

Furious, the agent called the florist about the mix-up. After tearing into the florist for five minutes on the phone, the florist cleared his throat and said: “Sir, I’m terribly sorry for the mistake. But imagine this: Somewhere last week there was a funeral with a bouquet that said: ‘Congratulations on your new home!’”

And if you think these sort of things never happen, some years ago a friend of mine went to visit his wife in the hospital… she greeted him with “Who is Bill?” It took a while for them to sort out what had happened… he’d hurried by the closed florist shop and stuck a scribbled note in the door with the instruction to send flowers to his wife from him and the kids “and bill” (meaning send him a bill)…The flowers arrived “With love from him, the kids, and Bill.”

Just How Positive Should We Be?

Posted by Walter at 10:06 am

Mar 102012

I’m a fan of Scott Levitt’s Tuesday Tactics Newsletter… and in a recent issue he led with this quote from Gil Stern:

Both optimists and pessimists contribute to our society. The optimist invents the airplane and the pessimist the parachute.

He ends his thought-provoking column with the recommendation that we shouldn’t jump out of a plane expecting to find a parachute on the way down.

Scott is at least alluding to the real estate market because at least indirectly it’s the business he’s in. I just have to support his plea for “realistic optimisim.”

There’s been a tendency recently to encourage the power of positive thinking (which is not to be underestimated)–especial among real estate types. You’ll see the campaigns on television… “it’s a great time to buy!” and you’ll hear it from those who seem to think that emphasizing the positive will automagically make things better.

Personally, I’m reminded of the the observation “If wishes were horses, beggars would ride.”

The real estate market is not great–that’s about as positive as I’m willing to be at this point on that subject. But I agree with Scott on another point. Belief in our own ability to assess situations and overcome problems is where optimism is best deserved and applied.

So if I challenge the press releases indicating positive trends, I’m not being negative. As I’ve said before, the market doesn’t need to control us and we, in fact, determine the market–individually and collectively.

I guess it’s okay to wish for a horse, but in the meantime it makes sense to keep walking in the direction we want to travel. It’s probably okay to wish upon a star too, but we might also try catching one.

The 3.8% Tax Scare

Posted by Walter at 4:41 pm

Feb 272012

There’s a scary email that’s been making the rounds for some time warning folks that the “National Association of Realtors” is “all over” a 3.8% sales tax that was part of the Obama Health Care Bill… the retiring generation is getting screwed, etc. etc. It doesn’t mention that the sky might be falling too. This tax has been called a transfer tax and a sales tax, but it’s actually neither. Unfortunately some REALTORS have jumped on the scare bandwagon because they are afraid this have a big negative impact on the real estate business.

Without getting all political, I will say that I’m not a fan of the Health Care Bill, but this sort of criticism of it is unfounded. I’ve been referring folks to the Snopes Urban Myth site for years on general principles… and would suggest the same for this except there’s an even better source: the National Association of Realtors has addressed this with some facts. There’s short blog post and video that explains the tax in simple language. Again, I’m not saying that I’m supporting the tax, but it is no where near what this email claims and since this email just isn’t going away, I decided to post about it here.

For starters, if (and there’s a big if) it were to apply, it would only apply to individuals earning more than $200,000 per year and couples with a joint income of greater than $250,000. Additionally, it is not going to apply to the sales price of a home–it MIGHT apply to a portion of investment income. In other words, it MIGHT apply to a portion of the capital gain acheived. It is NOT a real estate transfer tax and it is NOT a sales tax on real estate.

Again, I’m not saying it’s a good law or a good tax–but criticizing it with scare tactics, exaggeration, and just plain wrong information accomplishes nothing. NAR (National Association of Realtors) has actually produced a free brochure outlining several different scenarios.

If you receive the scary email, don’t forward it. Objecting to bills, laws, and taxes needs to be done with diligence and solid facts–not scare tactics. The tax is scheduled to take effect in 2013 so it would be wise to get educated.

By the way, the information I’m referring to was actually written and posted in November 2010–which just goes to show you the power and durability of fear. People are quick to forward the scare… most won’t forward a link to the facts!

Ignorance is bliss!

Posted by Walter at 7:29 am

Feb 242012

But it’s not a defense. You might blissfully speed down the highway. But don’t try telling the police officer who stopped you for going 60 MPH that you didn’t know the speed limit was 30 MPH. I doubt he’ll say, “Oh, ok! Have a nice day!”

When it comes to real estate the problem becomes the number of laws that potentially impact a real estate transaction and trying to stay “on top” of them all. The National Association of Realtors recently developed a list of some 23 Federal Laws that may apply to a real estate transaction. I’ve decided to offer a link to it here primarily for the benefit of students–many of these laws affect what we do as we facilitate transactions. Consumers may, however, find the list at least interesting — if not intimidating! Remember, these are just federal laws. There are also state, county, and local laws and ordinances.

http://realtormag.realtor.org/law-and-ethics/feature/article/2012/02/23-federal-laws-apply-real-estate-sales

“Fire” Your Real Estate Agent?

Posted by Walter at 9:58 am

Jan 282012

Since tragedy and comedy are not always far apart… perhaps this can be seen as humorous. (Thanks to Steven Cook’s Real Estate Economy Watch for the information.)

It seems that Britain is not without their share of real estate market issues… many of which parallel the U.S. According to Cook’s newsletter, a relatively new British Company called “In-Deed” has researched the issue and found that, ”Difficulties securing mortgage finance is a key factor, seriously aggravated by declining service standards among property professionals, according to the firm’s research…”

So In-Deed has launched an on-line game called Angry Buyers. According to the opening page, buyers can relieve stress by launching a mortgage broker, property lawyer or estate agent out of a canon and into a building! I’m not much of an online gamer, but it appears the objective here is to “break as many windows as you can” while relieving your frustration. Doing so means you accumulate points and ultimately might win the prize of having your mortgage or rent paid for six months. (I didn’t look for rules, but would imagine residents of other countries are not eligible.)

Of course there’s really no market for a U.S. version…

Right?

Tree Growth Tax–April 1 Deadline!

Posted by Walter at 4:21 pm

Jan 242012

Reprinted with permission from WoodsWiseWire, an occasional electronic newsletter provided by the Maine Forest Service, on topics of general interest to woodland owners, foresters, loggers, and others interested in Maine’s forests. For more information on MFS programs, services, and publications, call the Maine Forest Service at 207-287-2791, or 1-800-367-0223, or send an email to forestinfo@maine.gov Visit our website at www.maineforestservice.gov.

Tree Growth – also known as the Maine Tree Growth Tax Program – is Maine’s current use tax program for productive forestland. The program is administered in organized municipalities by town assessors and in the unorganized territories by Maine Revenue Service’s Property Tax Division. “Current use” means that enrolled land is valued according to its ability to grow trees for commercial use, rather than according to its fair market value. This often results in a significantly reduced property tax bill for enrolled landowners.

Tree Growth can be a beneficial program for landowners who manage their land sustainably for commercial forest products. In exchange for generally lower property valuations, landowners commit to following a written Forest Management Plan prepared by a Maine licensed forester. A licensed forester must also certify that landowners are following their plan.

Landowners are required to submit a signed Tree Growth Application and a supporting map to the assessing agent. The details of the forest management plan belong to the landowner and are not public information, although the Assessor may request a copy of the plan and hold it for a reasonable period of time for review.

The Maine Forest Service (MFS) provides assistance and education about the Tree Growth Tax Program, and forest management and planning in general, but does NOT administer the Tree Growth Tax program.

Landowners should be aware of some very important requirements:

1) Land enrolled in Tree Growth must be recertified every ten years. Written management plans must be updated at least once in a ten year period. Could this be your year to update your plan and recertify?

2) In addition, when Tree Growth land is purchased, inherited, or otherwise acquired, new landowners must re-enroll within one year of the date of transfer. New landowners may not harvest timber until they have had a new forest management plan prepared or adopted a previous but still valid plan, and re-enrolled. Have you acquired or inherited forest land recently?

Why is this important?

Because Tree Growth forest land that no longer complies with the program – including failure to recertify or to re-enroll on time– must be withdrawn from the program, with potentially significant monetary penalties to the landowner. Withdrawal can occur even if you were not the owner at the time the land was first enrolled, because Tree Growth status “runs with the land” – the parcel remains enrolled, even if it changes hands. Continue reading »

A Strange Irony…

Posted by Walter at 7:56 am

Jan 182012

In what has to be a strange irony…

Internet users will find a number of sites not available today as site owner join in a protest of pending legislation that creates broad censorship of the Internet in the United States-a country that claims to be a world leader in human rights and individual freedom. On those sites, you will get some form of a protest message instead of the usual content. On other sites, there maybe a protest “ribbon” or banner… My “Brain Leaks and Musings” site is blacked out.

The reason this one isn’t… is sorta ironic. When I went looking for the code I needed (today is the day) the sites where I would normally access the information are blacked out!

I suppose it sounds a bit strange to apologize for my site being available, but I can still participate by encouraging you to visit: http://sopastrike.com/strike. Another page that’s working is: http://act.fightforthefuture.org/page/s/sopa-strike-modal. The blackout is only for one day, but the protest will continue until January 24th. Get informed; contact your senator or representative. This bill actually has serious support in congress and it could cost you your Facebook and many other sites.

The short road from “no thanks,” to “leave me alone!”

Posted by Walter at 8:08 am

Jan 172012

: “Leave me alone!”

Nearly every day I have to delete emails or “zip flyers” from other agents who feel compelled to “market” their listings to me. In some cases these flyers come as huge files that take forever to download… in other cases they represent properties outside the area I tend to work in. Some clearly violate real estate/fair housing rules and a majority violate the “CanSpam” act.

I used to respond directly to the sender with suggestions and observations, but I found the odds were about equal. Half would thank me; the other half would basically tell me to “mind my own business” because they are busy doing their fiduciary duty to their client.

Since I’m pretty obsessive about fiduciary duty (there are actually seven listed in Maine Real Estate Law) I decided to do a little more research on the outside chance I was missing an opportunity to serve my clients. On occasion, I’ll ask my real estate students about “marketing” and what they think it means — especially in terms of fiduciary duty to the clients they represent. Many take the position that “all exposure is good.” I challenge that thinking with this suggestion: “Then I hope you are taping your business card to the wall of every public restroom you use.” How’s that for a technique that is low cost with lots of exposure!? (Pun intended.)

Maybe it’s because I’m an instructor that I tend to wonder what we are teaching our clients with some of the stuff we do and don’t do. I also tend to wonder how much our clients know and don’t know. I do know that when there’s an online real estate discussion, it is clear many do not know basic real estate law and practice. Heck, I see it in my own practice.

Now admittedly, a seller is unlikely to get into legal trouble if the agent representing them violates one of those laws previously mentioned. But a seller does need to monitor their agent’s performance to be sure their “marketing” program is efficient, professional, and not so intrusive that people are responding “leave me alone.”

Keep Going!

Posted by Walter at 8:01 am

Jan 072012

I recently announced that I was not making any new year’s resolutions, but I was adopting a slogan: Keep Going! After a week or so of operating with that simple slogan I’m convinced I made the right choice.

The beginning of a new year is always a good time to reassess and it’s no great surprise that the calls and emails currently reflect that. People do seem to be considering what they want to accomplish this year: buying a home, selling property, taking a course. It’s all good stuff, but the problem with resolutions is also the problem with goals. Enthusiasm can fade quickly–especially when external factors (like the market and the economy) seem to be constantly working against us.

That’s when we have to “Keep Going.”

All of those decisions (goals and resolutions) have an obvious financial aspect. One of the things that still amazes and distresses me a bit is the amount of “financial illiteracy” I encounter with students and real estate clients. However, I can’t be too critical of it–because I’ve found myself feeling pretty ignorant when I talk with my financial advisor. Things have gotten pretty complicated in the financial arena. Consider, for example, how many different program choices a buyer has when it comes to mortgaging. I’m convinced that one thing keeping prospective first time home buyers from acting is they just don’t want to deal with the complexity.

Conversely, I’ve worked with clients so determined to achieve their dream they didn’t want to deal with reality. “The bank won’t give me a mortgage I can’t afford; that’s what got them in trouble.” At the other end of the spectrum, this is easy–all that matters is what I want. Part of my job is to make sure buyers understand that the price of the house and the mortgage payment are only one small part of the cost of home ownership.

Those who might be feeling a bit overwhelmed by all this financial “stuff” will find it easy to “keep going” but may not be thinking about where they are going to end up. (I’m reminded of the wisdom “If you find yourself in a hole, the first thing to do is stop digging.”)

One of the new courses I’m developing for this spring is “Cash as a Crop.” It’s part of a You Can Series we’re developing as a collaboration between the Piscataquis Valley Adult Education Cooperative and Piscataquis County UMaine Extension. There are a number of courses geared to giving people information and skills emphasizing what you can do–some are very basic, but all are about facilitating a sense of independence and control. (That, by the way, is one of the driving motivations for owning your own home!)

In that spirit, let me share with you several resources for getting your financial affairs in order. Here’s a great site with some very practical financial advice… http://www.thesimpledollar.com/. I liked his explanation of mortgage rates a lot… and found his advice to someone who is considering walking way from their mortgage interesting, because ethical considerations aside, there are some serious financial aspects that most people don’t consider.

Another resource is http://www.totalcandor.com. Frankly, it’s a bit self-promoting, but with some justification. I met Michael Rubin at a financial literacy conference and found his approach refreshing because it’s down to earth and he’s got a great sense of humor. You might check out his blog and consider his book “Beyond Paycheck To Paycheck.” It’s a good read.

I don’t think it’s too late to make a resolution, set a goal, or adopt a slogan. Given the financially troubled times we are living in can be discouraging, but let’s keep going!

Older Entries

boomsmaonline.com

Walter

Peace At Last?

A Little Humor…

Just How Positive Should We Be?

The 3.8% Tax Scare

Ignorance is bliss!

“Fire” Your Real Estate Agent?

Tree Growth Tax–April 1 Deadline!

A Strange Irony…

The short road from “no thanks,” to “leave me alone!”

Keep Going!

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