Besides my career as a real estate agent I am also a huge fan of experiential education. Specifically, I am a ropes course facilitator.

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So why do I sometimes like to take my tie off and put on a harness? Because personal growth has been a passionate study of mine for many years. I love seeing people push through their fears and conquer them. Sometimes that comes from jumping off a pole and sometimes it comes from writing an offer on a house. Fear is fear and success is success.

What does this have to do with my title?

On the ropes course I try to create an environment where it's safe to challenge things that terrify you. Hmmm, kind of like selling houses isn't it? But more important, I work with groups to provide situations where the encouragement from the team can influence people to do things they would never dream of doing alone.

Likewise I see that kind of encouraging atmosphere here on AR. In fact I was inspired to write this post by a post from my AR friend Loreena Yeo. As much as we may try to control our destiny there are things that happen that are out of that realm of control. What defines us is how we interpret and react to those little surprises.

What determines our interpretation and reaction is our conditioning. So do we choose our conditioning or are we conditioned by circumstance? If we carefully guard and craft what we put in our minds, and if we carefully guard who we allow to influence us, then we will be in control of our destiny. Allowing life to happen to us just doesn't produce the desired results.

Think of it this way, if you dump random airplane parts into a huge pile they won't assemble themselves into a 747. If you dump random information into your head you won't come up with a successful life either. Like the 747, a successful life is carefully engineered.

Are you building your life according to a plan or just dumping random information in? I'm going to suggest you take inventory of what you are currently doing in your life. What do you read, watch, listen to? Who do you spend time with? Do you have a mentor or mentors? Most importantly, when was the last time you did something that really scared you?

Almost daily I post a story on my facebook page, Larry's home info, about a new business startup in Frederick county.

I am so proud of those brave souls who, despite all the negative media, venture out to accomplish their dreams. They are varied in their nature from marriage and family therapy to a specialty shop selling imported oil and vinegar. You can even catch a relaxing eco-friendly pedi-cab ride through Baker Park if you like. It's obvious that some of our citizens see clearly a solution that our politicians can't. I think Thomas Jefferson put it aptly: "The democracy will cease to exist when you take away from those who are willing to work and give to those who would not."

I pray that this entrepreneurial spirit will catch on across our nation like wildfire. A wildfire that will burn away the wasteful, power hungry and sweep in those who believe in providing opportunity and then getting out of the way. This isn't about red or blue. It's about human nature and the desire to achieve. Unfortunately human nature also can lean the other way and promote apathy from those who only want to play the role of portraying themselves as victims. Let's face it, we have all been victimized at some point. The question is, what will we do with that knowledge? Will we learn to face those situations and rise above them or will we simply allow ourselves to be crushed by them? The choice is always ours. 

What role does competition play in our American way of life? Without it, we sink into hopeless mediocrity.

Last week I listened to a news story about a school that had 30 valedictorians in it's graduating class. I decided to look up the dictionary definition of "valedictorian".

Valedictorian: a student, usually the one ranking highest academically in a school graduating class who delivers the valedictory at the commencement exercises.

Note the first two words of the definition! A student. That would be ONE student who had earned the right to carry the title of valedictorian. A right earned with years of consistent hard work. So what is the problem with having 30 valedictorians? The theory is to make everyone a winner. The truth is you are just making everyone mediocre.

Competition: the act of competing; rivalry for supremacy, a prize, etc.:

Competition is what made the US the greatest nation on earth. Unfortunately we are seeing the systematic dismantling of competitive environments in lieu of making everyone "feel good". We start with our children and the games they play. Schools are banning any type of elimination games. There are no more tryouts for sports. Let everyone have a chance to play. I speak as a parent who attended my son's little league games and watched the second base player sitting on the bag with their glove in their lap while the right fielder chased butterflies.

OK, so I'm one of those competitive parents who thinks the purpose of playing a sport is to actually win! I confess it's true. So why shouldn't every child have the right to play instead of having to earn that right? Simple, by allowing everyone to have the same opportunity whether they earn it or not we are preparing them for failure in the real world. My son is seeking employment after being laid off. One job he applied for had 1,000 applicants for only one position. Do we require that employer to hire the first 500 so they will feel better about themselves?

I would suggest that many of those little leaguers that sit on the bag or chase butterflies in the outfield really don't want to be there. They are there because mom and dad want to live vicariously through their children. If a child doesn't want to be on the ball field then we, as parents, should encourage them to pursue their own dreams, not ours. I suppose some would argue that they don't know until they try. I actually would agree with that. That's why, in my younger days, we had tryouts. So what if they really want to play but don't make the cut? Then we are preparing them for real life. If they truly want to play they will learn to practice and improve so they can make the cut next year.

We are training the desire for excellence out of our children if we allow them to participate in what they have not earned. Wow, that sounds harsh even to me as I write it. Fact is, though, it's how the world works. The more we lower the standards for our children (and adults) the more we doom them to a life of mediocrity. We need to teach our children to set goals and work for those goals. Life is not the art of getting safely from birth to the grave.

My prayer for America is that we would turn back to our desire to be the best at what we do. To learn, to grow, to dream and to take risks to achieve those dreams. If we seek only safety and demonize risk then we are participating in the demise of the American dream.

As an ethics instructor I get into some interesting discussions in my classes on the subject. Bear in mind this blog is dealing with Maryland law.

So when is the contract considered fully accepted? Of course this is critical because the clock starts ticking on all the contingencies at that point. Mostly I get two answers when I ask. Some believe the contract is considered fully accepted when the last party to the contract puts that last initial or signature on the contract. Others believe the clock starts ticking when the copy of the contract is physically delivered to the other party or their agent. Neither of these scenarios is necessarily the case.

Let's take the first situation. Suppose the clock does start with the final initial. Unfortunately no one tells the buyer or the buyer's agent about it for a couple of days. Does the buyer lose those two days on, for instance their home inspection contingency?

Second scenario - If the contract if fully accepted when hard copies are delivered what if the other agent isn't reachable? (I've had that happen)

In fact, under Maryland law, notice can be delivered verbally as well as in person and that starts the clock ticking. So, agents if you are excited and want to notify the other party involved of the good news, make sure ink has actually hit paper and the agreement isn't just verbal. Also, if you're, for instance, the buyer agent and the listing agent calls or emails you and says it's a done deal you have to act on good faith and start scheduling you inspections etc. at that point.

Just an FYI. I am not an attorney so I made sure I got this opinion from one of our MAR attorneys. So agents take note, this can bring up a world of trouble if the agents aren't on the same page. As for you buyers and sellers, as parties to the contract this is also very critical to you.

A final note to you non-Maryland agents. I would make sure you understand the laws governing your contracts to avoid a lot of potential heartache.

Convenient Walkersville location - Enjoy the quiet small town atmosphere but still be convenient to commuter locations.

This model is no longer offered by the builder. Spacious open design with a first floor master suite. The sellers added many upgrades including a luxurious two person whirlpool tub and oversized shower.

The dramatic two story family room has a cozy gas fireplace and upgraded carpeting. There is a light and airy breakfast room just off the kitchen. The lower level has a double wide walkout stair with a sliding glass door for extra light. Don't miss this beauty.

Relax in a peaceful small town setting while still being close to shopping and highways. Just south of Hagerstown Maryland lies the quiet little town of Funkstown.

This unique home has just been renovated and boasts over 2000 square feet of living space. While the home shows classic design outside it has a very unique and very livable interior.

Very large eat in kitchen with a wood burning fireplace with a woodstove insert. Just off the kitchen is a brand new laundry room with counter and sink. The outside kitchen door leads to a glass enclosed porch and then a deck with private enclosed hot tub.

The back yard features a shop/playhouse with it's own heat and AC. Completely finished the possibilities are endless for this separate building.

There are truly too many unique features to detail in this posting. For more information and pictures go to my website at www.larryshomeinfo.com

OK, to all my Realtor friends out there that title may bring a chuckle. Unfortunately the public and most underwriters see appraisal results as set in stone.

I'm writing this post because I'm seeing appraisals come in all across the spectrum of value. Not that we didn't have appraisal issues before but now, the law meant to protect the public is actually hurting them. As a Realtor and a licensee in the state of Maryland I'm required to be familiar with the market area I'm listing and selling in. Although I've heard from appraisers that they are also I'm not finding that to be true in practice. Any experienced agent knows the same house in a different neighborhood may be valued differently. This could be because of highway access, road noise, proximity to public transportation or numerous other factors. Of course one would assume an appraiser could look at the area and also make that determination. Unfortunately that doesn't seem to be happening in the real world.

What about distressed properties? I have a listing under contract and on the way to settlement that is the highest sale in the past six months in the subdivision. During that time a number of short sales and foreclosures have sold for well below market. The story turns out well because we got a local appraiser who was wise enough to go outside the subdivision to comp to similar properties that were not distressed. My listing appraised for the full contract price so this story ends well. However I hear horror stories for my fellow agents on almost a daily basis that an appraiser came from two hours away, sent by a management company and came in dramatically under market simply because they didn't know the area and compared a traditional sale to the short sale across the street. In this market that can mean the difference between the seller being able to complete a sale or being forced into a short sale situation or even a foreclosure down the road.

So back to my title, are appraisals really objective? I have actually been told by an appraiser in a CE class that they are. I didn't check his bio to see what planet he was from but I think anyone who has been in this business for more than one transaction knows better. I know many fine appraisers who are diligent and take the time to consider all factors in establishing value. Unfortunately with prices being driven down for appraisals by management companies some (to all you offended appraisers please note I said some) appraisers are cutting corners just to make enough to survive.

I think the answer to the problem lies with a little used resource of late called reason. Legislators, if you must make a law to fix something try tweeking what is in place to make it better. What we see going on now is similar to knocking the house down to change the paint color. To cite an idea I've used before in my blogs, laws made in the heat of passion and in response to an outcry are never good. I suppose I could expand that to deal with a lot that's going on in America today but that's for another blog.

I recently ran across a website that held the position that renters win, buyers lose.

Not long ago I registered with stumbleupon.com. It's a great website where you can enter your interests, hit the stumble button and have a rotation of websites randomly come up based on the interests you pick. Of course, one of mine was real estate. Most are either informative or searches. Occasionally I come across one that is pure garbage.

Case in point, an article by a real estate "expert" telling readers that it is foolish to buy a home in this market. I suppose that could be debated depending on the local market conditions. Unfortunately that was not the case being made. Instead the writer used distorted statistics and some very twisted logic to say, for instance that there is no real tax advantage to owning vs. renting.

What about investment potential? I recently got a listing under contract for a young couple that is moving up. The home was purchased before the bubble. Using a little fuzzy math one could say that the seller lost about 60K from it's highest point. However, over the time of ownership the seller actually realized nearly 100K increase. This is the true representation of the benefits of long term investment in real estate. Not only did they see a good increase over time but by buying up in this market they got a great deal on the single family home they're moving up to. You don't have to be a rocket scientist to see that if they wait for the market to "come back" it will cost them. If they see a 10% increase in their 200K townhome they single family they bought at 335K will have increased the same 10%. The net result will be that they lost over 10K by waiting for the recovery.

I've also heard the argument from buyers that they are reluctant to borrow from their 401k's to purchase. Let's look at the performance of the 401k's vs. long term performance of real estate investment. Again, not rocket science. 

So buyers beware...beware of real estate experts who are actually blogging's version of shock jocks. Those alarmist souls who don't buy or sell real estate but know all the answers. I would never advocate uninformed decisions in buying a home. Just the opposite. Get all the real facts and make an informed decision. When you do, I think you'll see that real estate is and has always been a great LONG TERM investment.

In my 20+ years listing and selling real estate I've seen just about everything go wrong that could. One thing I've learned is deliberate action always wins out over emotional reaction.

Sometimes it's the client that is reacting and we, as agents have to step in to calm the parties involved and work through the problems. Unfortunately, as often as not, it's the agents that get emotionally involved and stir up the clients. As an ethics instructor one of the things I emphasize to my students is that the easiest way to go from practicing real estate to practicing law is to get emotionally involved.

As a real estate practitioner, at least in Maryland, I can only go by the letter of the law and the letter of the document. Of course this is all easy to say when writing a blog post. It's much harder when you're in the middle of a transaction and your client is very upset about something that occurred (out of your control) and they blame you for their predicament.

Right now in my market area we are just bottoming out as far as values. So let's examine a scenario. You have a listing that just went under contract. The lender orders an appraisal. However they have to order it from a management company who puts the work out the lowest bidder. The appraiser assigned hops in his car and drives from our eastern shore three hours to western Maryland to do an appraisal in an area he knows nothing about. Surprisingly he/she covers themselves by being "conservative" and suddenly your seller is going ballistic! Of course there are dozens of scenarios. Actually more like hundreds that we could discuss. How do we as agents and those of you reading this who are buyers and sellers deal with all this?

Glad you asked:

1) Information is the key. Buyers and sellers, work with a real estate professional that can tell you what your options are. That does not include your cousin, brother, father, or close friend who just sold their house. Important note here*** It also does not include consulting an attorney who does not practice in the field of real estate. Consulting a personal injury attorney to advise you on real estate is like hiring a painter to remove your gall bladder. Don't do it! If you need to consult an attorney get referrals to attorneys who operate in this field of expertise. Agents, give your clients the information they need to understand the process. The biggest fear clients have is unpleasant surprises. Never hide bad news. When you finally do have to share it with your clients it will be far worse than if you shared it when you found out.

2) Understand that it's not personal. Both buyers and sellers are looking for the best situation for them. Win/win is usually not the rule of the day. Be willing to compromise and stay flexible. Agents, taking any part of the transaction personally starts the downward spiral. Of course we aren't heartless machines but we are governed by law. The NAR code of ethics mentions the golden rule in it's preamble. I really wish they would take that out. If it's between following the golden rule or the letter of the law we are compelled to follow the law. Sure it would be big of you to wink when the contingency expired yesterday but you just got the addendum today. Fact is, you can't.

3) Always look at the big picture. Buyers and sellers, don't worry about each individual fee or contingency. Are you accomplishing what you want when it comes to the bottom line? If so, and you got there legally and ethically then understand that you got what you wanted. I once had a seller who got upset with me because the buyer asked for some closing costs. What he wasn't looking at is that the net when all was said and done was higher than what he told me he wanted. Agents, if we have a buyer that wants to buy and a seller that wants to sell don't let your ego get in the way and spoil the transaction for everyone involved.

4) This one is for agents only. Always put your clients needs and wants ahead of your own. The good will you sow will earn you more in the long run than a rush for one commission. Be excited for your client, even if you make a little less or even nothing. I've gotten many referrals from people I advised NOT to move ahead because it wasn't in their best interest.

Staying calm in the eye of the storm is always a choice.

I just had the great opportunity to list a gorgeous resale townhome in Robin Meadows. Just south of Frederick city so no city taxes!

Mrs. seller doesn't like carpet so they put laminate flooring in the entire main level. It looks fabulous and easy to keep clean. The deck and fence have just been powerwashed and the deck restained so the back looks great. There is a nice cozy two sided fireplace in the basement that divides two large rooms. So many nice touches.

The Robin Meadows community has a pool, tennis courts, basketball courts and trails throughout. Very nice setting and close to 270S leading to the Washington beltway. Still plenty of time to get in on the federal tax credit.