Among the changes I noticed was the inclusion of clause 30; “TIME IS OF THE ESSENCE AS TO ALL THE TERMS OF THIS CONTRACT”.

In my 34 plus years in Real Estate this clause has appeared and disappeared in our contract iterations several times.  Most recently it was not part of the main contract but inserted in the various Jurisdictional addenda’s.  This got me thinking about how sales associates go about explaining this clause if their client asks, or holding to it.

We spend time reviewing and commenting on contracts, with stock words or phrases that should mean a lot to us – but oftentimes little, if anything, to our clients. Some of those words or phrases are absolutely essential; others have lost their impact over time. One of the latter is the phrase: “time is of the essence,” which Black’s Law Dictionary defines as, “performance by one party at [a] time or within [a] period specified in [the] contract is essential to enable him to require performance by [the] other party.”

So can we explain this? What does it mean in plain English? Well, by including this phrase it simply means that one party to a contract is automatically entitled to terminate the contract if the other party fails to perform upon the time and conditions specified in the contract.

And that’s important, right? Ok… let’s explore the possibilities.

Most lawyers I know dislike vagueness in any contract language and “time is of the essence as to all the terms of this contract” certainly qualifies. Inclusion of the phrase provides a judge with evidence of your intentions when you entered into the contract, but in and of itself, and without further specificity, this may not be sufficiently strong enough to support a verdict in your favor, if a contract problem ever gets that far. Given all that, I would encourage you not to rely too heavily on the simple existence of this stock phrase in your contracts. Instead be sure your requirements for performance are accurate, specific and time-constrained.

In practice, since no one ever wants to spend the time, money and emotional angst trying to prove their case in court, here are three recommendations to strengthen intent and give it some enforcement:

1. Clearly state your expectations – both time and quality, for performance or delivery. Do not fall victim to vagueness, either yours or that of your client. This will not serve either party well in the end.
2. Confirm that all dates and deadlines are accurate. Do not allow for assumptions, or performance, to be qualified as “best efforts.” You want the terms plain and clear to both parties.
3. Put on your judge’s hat. If it’s vague, or unclear to you, chances are, it would be to a judge as well. Step back from your contract and try to see it through a third party’s eyes.  Consider how a judge, months or years down the line, might interpret the language which documents this contractual agreement.

Know your contract, be accurate, be precise and be clear.

- Scott Avery, President, Avery-Hess Realtors

Find your home, Plan your life: www.averyhess.com

Looking at the Average for Frederick County does not accurately show the Good News – that I am happy to report in many areas.  New Market (zip code 21744) has an Average Sold Price of $287,682, Middletown (21769) Average Sold Price of $312,000, Dickerson (20842) $855,000 and Jefferson (21755) $870,000 have a lot to be proud of.   All of these numbers are well above the average for the county.  I see a very productive spring and summer ahead for 2011!

Downtown Frederick, named a Great American Main Street by the National Trust for Historic Preservation, has a lot of historic charm,  and is home to Carroll Creek Park.  Shop for gifts, antiques and more or dine at the city’s share of more than 200 eateries countywide.   Sports enthusiasts can catch a Frederick Keys game at a home stadium that’s the envy of other minor league baseball teams.

If you enjoy the open spaces Frederick County has several award-winning wineries or take in the natural beauty of a 78-foot waterfall at Cunningham Falls. Hike the C&O Canal towpath.

Interested in History? Then explore Frederick County’s deep-rooted Civil War history by visiting the National Museum of Civil War Medicine, the Barbara Fritchie House or Monocacy Battlefield.

Market data and commentary provided by Kathy Fleskes & Serena Toro, Rockville Regional Office.

Search for homes in Frederick County, and all of the DC Metro: www.averyhess.com

Much of this activity is generated by first-time buyers –  uncertain, but hopeful.

Rent prices, climbing. Home prices, stable. Interest rates, low.

A perfect mix of market conditions and circumstance. But these buyers are different. Cautiously optimistic, data-driven, and hungry for collaboration.

And these first-timers are OUT IN FORCE. 50% of buyers in 2010 were first-time homebuyers, up from 47% in 2009. An all-time high. And the projections for 2011 are even greater, with upticks between 3% and 5% expected.

On-Line, All the Time

This “new-breed” of first-time buyer is spending time on-line. A lot of time on-line. According to the National Association of Realtors (NAR) 2010 study of home buyers and sellers, on-line is definitely where it’s at:

…Buyers use a wide variety of resources in searching for a home: 89 percent surf the Internet, 88 percent use real estate agents… Although buyers also use other resources, they generally start the search process online and then contact an agent…

These buyers are researching homes. They are researching you. They are researching your Company. They are researching the area(s) they want to live in. They are researching market stats, market data and market conditions. And they want an agent who is an expert, not a hobbyist. First impressions mean a lot – and buyers – first-time or repeat – are many times creating their first impression on-line.

That said, it is critically important to remember that engagement does not start and stop with having an effective suite of on-line assets. After making the initial connection, substance is key. In fact, findings from the same 2010 NAR study point out that these same home buyers thought the most important services agents offer are helping find the right house, and negotiating sales terms and price. And this requires a deep knowledge of local market conditions, pricing trends and market health. In other words, a STRONG professional skill set.

So how do I engage this “new-breed” of first-time buyers?

Step one, know your market. Know the trends. Know your local communities – Intimately. Be the EXPERT. The resource the consumer craves.

Step two, get the on-line you in tip-top shape. On the web and the social sphere:

• Get your website up to snuff (a great example can be seen at www.meehanvirginia.com)
• Update your profile on your company website
• Pay attention to your social assets (Facebook, Twitter etc) – ensure the content is fresh, updated and relevant (www.Facebook.com/AveryHess)
• Refresh your LinkedIn profile. Turn it into your Real Estate resume. Add client testimonials. Tell your prospective clients Why they Should Work with YOU.

The signs of a Real Estate recovery are on the horizon. And first-time buyers are leading the charge. So let’s do our part. Let’s engage. Let’s collaborate. Let’s communicate.

And most of all, let’s help. Here’s to a terrific 2011.

-Amit

Find your home, Plan your life: www.averyhess.com

Overall Montgomery County’s Housing Market is well on its way to a slow but sure recovery.   The Average Sold Price of $468,000 is up 16.15% from November of 2009, and up 5.31% from last month.  There were 697 homes that SOLD which is slightly more than last month(2.95%).

Here is another bit of good news.  The average Sold Price to average List Price Ratio is 93.09%.  Of course I would rather see 98% (or even 100%) of List Price but 93.09% is not bad at all!  With interest rates still at a historic low it is a great time to Sell or Buy Real Estate in Montgomery County!

Market data and commentary provided by Kathy Fleskes, Managing Broker, Rockville Regional Office.

Search for homes in Montgomery County, and all of the DC Metro: www.averyhess.com

Applications that allow a user to check into a location, blaring their whereabouts to anyone who cares. The fact that there are huge personal security issues involved notwithstanding, the nagging question I can’t seem to shake is: As a Real Estate consumer, do I care?

Do I care if my agent checked into Chipotle? Or the car wash? Movie Theater? Starbucks? Anywhere?

I know my answer, and it’s a resounding NO.

It seems to me that every time something new is unleashed in the Social Media space, a wave of hype and sensationalism hits the Real Estate industry. A tidal wave. Of epic proportions. And Real Estate dives in headfirst, without understanding the practical uses, if any, of the application(s) whose virtues they espouse. It’s almost as if the introduction of a shiny new widget heralds the start of an unofficial Real Estate social media joust. “Facebook! Foursquare! Twitter! I am the best!” “No, I am the best!” the refrain is heard over, and over, and over, and over…

The reality is that most of this stuff has marginal (if any) value to helping Real Estate Professionals do their jobs better or more efficiently.

This post is a bit of a rant, I know.

But let’s not forget, that at its core, Real Estate is not a whimsical game tailor made for social media. Or an outlet for geo-tagging, commenting or expanding one’s reach into the social universe. At its core, Real Estate, and more specifically, an individual purchase or sale is at many times, a seismic, life-changing event involving hundreds of thousands of dollars for the parties involved.

Because of this, I am of the opinion that it is far more important for a Real Estate professional to have a deep well of local real estate knowledge. Down to the neighborhood and street level of markets serviced.

That it is critical for a Real Estate professional to know how to accurately price a property in order to get it sold, something that is far more complicated than the +/- 20%-25% accuracy provided to consumers by on-line valuation models (and as an aside, +/- 25% is not very accurate; one of the most popular on-line valuation models utilized by consumers has my home valued at more than $100,000 over what it could actually sell for).

That it is imperative for a Real Estate professional to have a thorough understanding of contracts, laws and procedures so that they can help navigate the often time complicated journey from contract to settlement.

I think these things are far more important than knowing if my agent is at Dunkin’ Donuts grabbing a cup of coffee, or if they have finally achieved the rank of fictitious mayor of a chain restaurant or retail shop.

You can have all of that nonsense. I will take a solid Real Estate professional and leave the four-squaring to children on the playground with a red bouncy ball and a bit of chalk on the pavement.

-Amit

Find your Home. Plan Your Life: www.averyhess.com

The great debate among economists and TV commentators is what kind of recovery it will be. Typically recoveries look like a “V” when Gross Domestic Product (GDP) is tracked. Because of the high unemployment rate, many are saying we will not have a “V” recovery, but more of a slow and gradual rise. But don’t be fooled. Indicators for employment can be the last thing to pick up. It is considered a lagging indicator because employers do not start hiring until they are secure that they have growing demand for their product and a growing cash flow to pay for additional employees.

Let’s look at the evidence: Consumer spending is growing. This has a multiplier effect throughout the economy as each sale creates sales throughout the supply chain. Business investment is rising, at a whopping 18% annual rate. So the people who currently have jobs, just like the business owner, start to feel more secure and start to take more risk (buying things).

New unemployment claims are falling which reinforces what I have written above. So we are having a recovery, how about a recovery in real estate? Let’s go back to the 93-94% of the people in the DC Metro area that have jobs (the unemployment rate here is under 7%). If they do not own a house, they are prospects to be in the market to buy a house under today’s favorable conditions, low prices and low interest rates. If they own a house that was bought before 2005 or they made a large down payment when they bought, they are candidates to sell their house and buy a larger one. The people who are not in the market to buy are those who bought from 2005 through 2007. But normally people who have only owned their home for only three to five years are not selling anyway. The average is about seven years.

Steve Murray of Real Trends has consistently reported that about 5% of the population moves each year. During the boom that number swelled way above the 5% norm. So as the economic recovery continues, it will spillover into the Real Estate market here in the DC Metro area. Already those who had the courage to buy since December 2008, when prices bottomed, have been rewarded with increased equity both from mortgage principle pay down as well as some price appreciation.

So are we having a Real Estate recovery? The evidence says we have already started or are about to start. So buckle up your seat belt and get ready for the ride!

Commentary provided by David Hess, Executive Vice President.

Facebook became the most visited place on the Internet last week.

Joel Burslem of 1000 Watt posted about this very topic last week, and the San Jose Mercury News reported on it. According to Hitwise, Facebook edged out Google as the Internet’s most visited site by the slimmest of margins – 7.07% of all traffic to Facebook vs. 7.03% of all traffic to Google. But this is big. Real Big. People no longer go to the web just to search. They actually go to the web MORE to discuss things. To collaborate. To share experiences. On Facebook.

Let’s all sit up straight now and pay attention. Please.

90 some odd percent of consumers begin their Real Estate experience on-line. Buyers and Sellers alike. And now they aren’t going just to Google to gather information, or your Real Estate website. They are communicating on Facebook. Searching for information, sharing stories, getting the skinny on who to use and who not to use for their Real Estate experience. We have to be there. Real Estate. Brokers and Agents alike. We all have to be there, active and engaged in an intelligent conversation.

But wait. Hold on.

Before we rush like lemmings racing towards a treacherous Social Media precipice, let’s think. Effective use of Social Media, and Facebook specifically, is an art, not a Real Estate right. There are good ways to do it, and some not so good ways to do it. Your Facebook page should not consist of an explosion of listings, and sales pitches, and price reductions and post after post after post after post of the benefits of the tax credit and why you should buy now. Too many are.

Start a conversation. Craft a message. Carefully consider every post before you post it. Engage in a conversation, and stay away from the sales pitch. Reach out to your constituency and engage them. Solicit feedback. Create a community. Have your Facebook page be a Social Media extension of your Brand.

We have to do it. Companies, and specifically Google, see that Social Media is affecting the very fiber of our everyday lives (see Google’s Buzz offering). Let’s recognize this as an opportunity and engage Facebook and Social Media effectively. If you don’t yet have a strategy to do so, and do so effectively, get one, and do it RIGHT.

Remember, this is HUGE. Google has been dethroned. I never thought I would see it, the Internet’s 800 lb. Gorilla knocked from his lofty perch. If even for only a week, the shift from linear search to conversation is undeniable. Make sure that your voice gets heard.

-Amit

Become a Fan: www.facebook.com/AveryHess

I had the opportunity to attend a cinemeeting event hosted by Wells Fargo Home Mortgagethis past Thursday titled “Meeting the Market Challenges of 2010.” The content and information presented at this cinemeeting was mind-blowing. There was commentary and discussion about Short Sales and the Short Sale process, there was discussion of the REO “Shadow Inventory,” there was discussion and commentary about today’s Real Estate consumer. And then there was one topic of discussion that stood out head and shoulders above the rest.

TRUST.

Jeremy Conaway of Recon Intelligence Services waxed poetic about this very issue. And how important it is. And how in 2010, the Real Estate industry is near an all-time low with regards to this very thing. The very thing that is the most important fundamental building block of our business.

TRUST.

There is so much weight that is carried by this one little word. Five letters that can make or break any business or organization. Any sustainable business model has to built upon this foundation. There are a lot of ways that we can regain consumer trust. We can listen. We can counsel. We can give sound advice. We can understand personal situations and the specific wants and needs of our individual clients. We can partner with our clients to assist in a collaborative manner. We can utilize technology, data and real time market stats and information that we as Real Estate professionals have exclusive access to in order to provide accurate information to our clients to better enable them to make informed decisions. (Yes, believe it or not, on-line valuation sites really are not that accurate).

Jeremy was optimistic. He mentioned his son’s dreams of home ownership. His son’s dreams of building a better future for himself. He mentioned that people are once again buying homes for the right reasons, not as a way to make a quick buck. He mentioned that Real Estate as an industry would lead the charge to economic recovery – at a sustainable pace.

I think I agree with Jeremy. I think that I too, am optimistic. I think that perhaps Jeremy addressed the most pressing challenge of 2010 – TRUST.

I think that with what I see every day in this industry, given time, we will win back that trust.

I think that given time, that _______ will be filled with “Real Estate Professional.”

-Amit

Find your home. Plan your Life. www.averyhess.com

I admit it – when it was first announced, I was ecstatic at the possibilities. Paperless transactions. The ability to map out a route for tours, research the MLS for your clients, answer emails, write offers and submit contracts – all from one small device!

WOW.

And then I researched it. And came away unimpressed.

Don’t get me wrong, the iPad is a wonderful device, and has a lot of great uses for folks who want to do one thing, easily. But for Real Estate, I don’t think it is a good match, and here’s why:

1. No support of Flash. And all of us here in the DC Metro require flash to upload our listings and data into Keystone.
2. Does not multitask. No explanation needed here – have you ever met a good Real Estate agent who isn’t the master of multi-tasking? What if you need to access the MLS, send an email, and take notes for your client simultaneously? Impossible with the iPad.
3. No camera. Again, how can any portable device be created in this day and age without a built-in camera? Big drawback again for Real Estate. Has a killer photo app pre-loaded, but how do you get the photos on the device? How do you take pictures of your listings with the device?
4. No HDMI output. Not a big deal, but still would have been nice.
5. No USB slots. BIG drawback – with no camera, how do you get photos loaded onto the device? Connect to a printer? Keyboard?
6. Closed app interface.The iPad will only run apps from the iTunes store. How do you write contracts, integrate docusign? Impossible unless these companies create an app for these things.

With a slew of similar devices slated to be released in the coming months, the iPad is NOT a must-buy for Real Estate professionals. Hang tight as other similar devices are released by Microsoft…

…and others in the coming months. These devices will almost certainly have the outputs and functionality needed for a powerhouse Real Estate workhorse.

Search for Homes in the DC Metro: www.averyhess.com

Avery-Hess Community Video: Fredericksburg, VA from David Tra on Vimeo.

Search for homes in Fredericksburg, and all of the DC Metro: www.averyhess.com