The Busiest December that I can Remember

My little boy asked me why I am always rushing the other day. While its an indictment on our society these days, its also representative of how busy this December has been for me with real estate. Last year was busy with closings, but this year I've had 4 closings, 4 ratified contracts, 2 additional purchase offers, showings with 2-3 clients a day, several listing appointments, and 6 Broker Price Opinions (pricing foreclosures for the banks), not to mention my normal prospecting activities.

Don't get me wrong, I'm happy (thrilled really) for the business, but I must admit its a bit shocking for this time of year. I think its mostly a result of the tax credit (and recent extension), but its also some pent-up demand for sellers to get back in the market, as well as indicative of a barrage of foreclosures about to hit the market in January and February of 2010.

All of this activity causes me to take this time to pause and reflect on the present and enjoy my family and working in a career that I am truly passionate about. Thank goodness for the internet helping out with the holiday shopping!

One can only hope that 2010 brings as much good fortune as I've experienced in 2009, but I do need to remember every once in a while to take it all in and "smell the coffee!"

The Joy and Pride of Home Ownership

Say what you will about the financial benefits of owning a home, there is something so much more powerful about the emotion and feeling of owning your own home. This picture to the left if of a Chicago man at age 80 standing in front of his home that he bought in 1964 for $19,000 - how happy is he (and how much has that beautiful home appreciated)?

I came to this topic as a result of a closing that I had yesterday in Mechanicsville for a single first time home buyer (and local firefighter) and unlike most closings that are held in a title or lawyers office, this closing was held in the home that was being purchased. This young man entered the home hand-in-hand with his girlfriend and was all smiles the entire time. He signed the papers and then ushered the notary and myself out of his new home with happy holiday well wishes, smiling from ear to ear. The home he bought was a beat-up foreclosure which inherits about $25,000 in equity, but it really represents stability and creativity. He will have the opportunity to totally shape how this house looks and feels, thus making it his slice of heaven in this ever-changing difficult world that we live in.

It is for this reason, more than any other that owning your own home is still the American Dream. Seeing those smiles and heartfelt pride is largely why I became a Realtor in the first place and why I feel so passionately for my profession to help others feel what I've felt, what this young man felt, and what this elder in Chicago still feels today!

What's the right time to buy or sell?

Many sellers nationally and locally, here in Richmond, have been sitting on the sidelines for the greater part of 2 years. Additionally, a lot of buyers have been hesitant to buy for fear that the market prices will continue to fall. So, my thought is that the time to buy or sell is NOW and here's why:
1. The tax credit, especially the $6500 for trade-up buyers who've owned their home for 5 years (and have equity), will bring new buyers for sellers and be a short-term incentive that for many will provide the impetus to act now.
2. The post-holiday is a big season for home buyers many of whom are off from work with time to kill and they're spending that time reviewing real estate websites and thinking strategy for the new year, while also reflecting on their goals for the next year. Therefore, the best time to list your home might just be immediately prior to Christmas or right after (like December 26th).
3. Home prices have started to stabilize while still falling in some areas, but rising in others. No one can really call the market bottom until after the fact, but if we haven't already seen it, then we're pretty close. If you continue to wait, then you just might miss the lowest prices.
4. Interest rates are still really low. You can still find rates in the 4's in many cases, and rates are artificially low right now based on the government buying so many bonds and T-bills. Thus, this situation can not last forever and when rates change (likely in 2nd half of next year if not sooner), then they could change very quickly and very dramatically. Earlier this year (or was it last year) rates went from the 4's to the mid 6's very quickly and luckily we recovered - we may not be so lucky next time.
5. Besides the tax credit, many of the same tax benefits of home ownership that have always existed remain. Most notably is the potential tax write-off of mortgage interest, as well as the potential for future price appreciation. Please check with your accountant or tax professional for details here.
6. There is a ton of "shadow inventory" foreclosures that are and will be hitting the market in the first quarter of 2010. This will provide many great deals that haven't been there. Most housing experts are predicting that this is the last great hurrah of foreclosures. We can only hope that they are right. An example of this is how many HUD homes are currently available - normally there are only about 2-4 in Chesterfield, but right now there are about 10. Multiply that out for all types of foreclosures and you can see how quickly those numbers get really big.

So, if you've been thinking about buying or selling, especially selling, then the time to act is now. Don't miss this artificial bubble of buyers that may be there only until April 30th.

Don't sleep on the 203k (Renovation Loan).. Its time is now!

Want to get that amazing deal on a short sale, foreclosure, or whole-sale property, but not have to live with the "icky" feeling that most of them have when you're walking through them?

Well, you're best bet might be a 203k loan, commonly called the renovation loan, where you can get both the funds to purchase the house and the money to fix it up. To do this, you'll need potential walk-in equity, but that's certainly able to be found in this market and often is most easily ascertained from list price versus tax assessment.

Not every loan officer knows how to do this type of loan, but for those that do, this may help you to make your dreams come true. You'll need to hire contractors to do the work as it'll need to pass FHA inspections after the completion of the work and they can't build new outdoor pools, spas, or outdoor kitchens, but anything else can be rebuilt or completely renovated. The only main down-side is that this is strictly for owner-occupants (sorry investors), but you do NOT have to be a first time home buyer. You can actually do these up to about $535,000!!

Contact me for details if you're interested in learning more or going through this process!

Why its important to integrate home improvements into the entire floor plan/concept of your home!

I was showing homes in Powhatan and Western Chesterfield yesterday, helping out a newer agent in our office, and a few homes had improvements made to them which actually hurt their resale value rather than helped them. Because of this fact, its very important to come up with a "Master Plan" for home improvements and your floor plan and carefully integrate them into this plan.

For example, this one home in Moseley had high hopes for it, as it was nearly listed at $100,000 less than county assessment. However, the home had a very strange 9x9 room behind the kitchen that was not accessible from the interior of the house. To enter that room, you either had to go through the garage or the exterior deck. On top of that, by having that room located there, you didn't have exterior light into the kitchen or a view out to the backyard from the sink (as most kitchens do). The better plan for such a room (staged as a bedroom, but would make a much better office or workout room) would have been located either directly behind the garage or somewhere behind one of the back bedrooms with hallway access.

The potential purchasers got so hung up on this room, that they didn't focus on all of the positives of this home, such as 7 acres, massive exterior shed, fully fenced back yard, and price under assessment.

So, when making improvements to your house, make sure that they are functional and make sense to you and potential buyers, because remember that according to NAR statistics that the average home buyer gets a new home every 6-7 years.

Til next time!

National Recycling Day helps remind us of the need to Go Green!

National Recycling Day just occurred on Sunday November 15th and that fact helps spur me to impore you to begin and/or continue to recycle and think about how to Go Green! I had been thinking about going for my GREEN real estate designation with the NAR and I took this as the perfect opportunity to actually do it.

What does Going Green and recycling really mean? At its core, its about sustainability of the earth and preservation of its beauty, but more importantly its natural resources for future generations.

There are so many ways to Go Green, but the simplest and easiest way is to start recycling. Here you need to start by separating your trash into compostable (i.e. food and other natural items that will decompose), aluminum, plastic, and non-compostable trash (which is the only item that will continue to go to the landfill). You can use the compostable materials to develop into mulch, transfer the plastic and aluminum to the appropriate recycling centers, and then what you send to the landfills will be only a small fraction of what it is today.

Other great ways to go green include the following:
Recycling rainwater (called greywater) to use for irrigation and toilets. Enhancing your energy efficiency by upgrading appliances, heating and air systems, sealing areas within the home including in the attic and crawl space, upgrading to energy saving double-paned windows, and decreasing your usage of utilities by turning off lights, televisions, computers & faucets when your not using them. Also, you can even use local and federal tax credits and incentives to off-set capital costs of long-term fixes like solar arbors, solar panels, and small wind power generators. Finally, many of us can move to hybrid automobiles and/or other upcoming options like electric or battery-powered.

To learn more about green building products visit the following website:
http://www.globalgreen.org/greenurbanism/buildingresources/

To learn more about household products that you can use to go green use the following link: http://davidwright.myshaklee.com/us/en/welcome.html

The History of Powhatan County, VA, along with current market trends

I was promising a couple last night at a listing appointment in Powhatan County, Virginia that I'd chronicle a bit about their area in my blog and so here we go.

This photo to the left is of a Courthouse in Powhatan and is typical of the history that abounds in this area, named for Chief Powhatan of the Monacan Indians who met with English settlers in the 1608/1609 timeframe. See the link below for more history on Powhatan County:

http://www.powhatanva.com/history.htm

http://www.americantowns.com/va/powhatan-information

The area as it is today, its an excellent blend of rural America with the comforts of suburban Southern style. The average home currently for sale in Powhatan (271 total homes available) is a 3 bedroom, 2 bath, 2650 sf home for $396,254 at $151.37/sf and has been on the market for 124 days. Contrast that with the average sale statistics from the last 6 months which are 3 bedrooms, 2 baths, 2094 square feet at $259,044 with $124.97/sf and 92 DOM (days on market).

Powhatan is located just west of Chesterfield County and south of Goochland County with convenient access to the entire Richmond area from Interstate 288 and the Midlothian Turnpike. Come check out this beautiful and historic area for yourself today!

Rainy Day in Richmond begs the question about typical weather here

This post is especially for those thinking about coming to Richmond from out of town.

The best part of our Greater Richmond Metro area is that we do in fact have 4 full seasons and are in close proximity to all types of weather-related activities sincer we're less than an hour away from the mountains as well as the Virginia Beach area, whether you're looking for summer-type of things as in beaches and pools or winter-related things to do like snow-skiing and ice-skating.


http://www.richmond-travel.org/richmond-weather-history.html

http://www.nbc12.com/Global/category.asp?C=128875&nav=menu128_3

http://www.weather.com/outlook/travel/businesstraveler/local/USVA0652?from=search_city

I really like to show real estate in the rain, because it helps to bring to light potential problems like roof leaks and keeps the focus on the house. And, sometimes you will be lucky enough to finish the day with a rainbow and a signed purchase offer!

What's happening in Colonial Heights?

Since I am showing a home in Colonial Heights in a few hours, I thought that I'd spend some time with that section of town here today.

For 2009 there have been 95 listings that have closed thus far. On those 95 sales, the average sales price is $168,950 for $105.80/sf with 3 bedrooms and 1624 sf, after having been on the market for 89 days. That contrasts with market stats from the last 30 days that are as follows: 9 closed sales, average sales price $175,538 at $107.85/sf, 3 bedrooms, 1665 sf and 76 days on market.

Now, turning to what's currently active and for sale, the numbers are as follows: 121 homes available (13.4 months of inventory) with a high of $620,000 (Zip listing by the way) and a low of $70,000, averaging list price at $202,080, 3 bedrooms 1814 sf, $115.15/sf, and 94 days on market. So, its a little slower going with Colonial Heights sales compared to the rest of the Greater Richmond-area market.

So, it seems that the homeowners of larger homes are gaining confidence to put their homes up for sale but are still a bit resistant on their pricing. The market should benefit from the continued expansion at Ft. Lee, as we're seeing at Zip Realty a healthy influx of military relocation buyers. The overall economy in Colonial Heights seems fairly stable, with mostly retail and service-oriented businesses and many homeowners commuting to Ft. Lee and/or Richmond for jobs.

A Great Sign for Trade-Up Buyers - The New Extension of the Real Estate Tax Credit

In a great sign for the real estate market (not to mention the unemployed), President O'Bama signed today an extension of the Tax Credit for 1st Time Homebuyers to April 30th and the bill also includes up to $6500 for homebuyers who've owned a home for at least 5 years. Moreover, the income limits doubled from the previous version.

This should further prop up the housing market, given that foreclosures are still aplenty and short sales are also still increasing during a seasonal time when home sales traditionally fall off. The best news for many is that it may open up the ability for those trade-up buyers with homes to actually sell and participate in the rally/opportunity! See the link below for a clip from NBC News on the story, as well as a link from the National Association of Realtors on the details!


http://www.msnbc.msn.com/id/21134540/vp/33698144#33698144

http://www.realtor.org/home_buyers_and_sellers/2009_first_time_home_buyer_tax_credit

An uptick in Foreclosures and Short Sales

I noticed an interesting trend yesterday while hunting for HUD homes on their website at www.hmbiweb.com. There has been an increase in the active inventory of foreclosures in the Central Virginia MLS, 399 in total for homes priced under $1MM.

For months, there has been news of a so-called "shadow inventory" of homes that banks have owned but not yet put on the market, and while there continues to be that shadow inventory, the banks are beginning to release some of those homes as the market has improved, largely based on the 1st time $8000 tax credit.

Interestingly enough, short sale activity is also on the rise with 217 short sales currently available for sale. The good news here is that agents and banks have improved markedly in this process. While its still laborious, its not as much so as it was say a year ago, as many listing agents have undergone training and many banks have hired firms to expedite the package/negotiation process.

Again, it continues to be an interesting time in the real estate market, as well as a great time to get some amazing deals as buyers with the trifecta of low prices, low interest rates, and tax incentives to buy!

A Pre-Listing Appraisal: Great Idea for Sellers and Listing Agents

A pre-listing appraisal which you can typically get for under $200 with select firms has the following benefits for the seller

• You’ll have a valuable negotiating tool once you have a potential buyer
• You'll be aware of any problems and eliminate last-minute repair hassles that might delay a closing
• You’ll have all the current market data with verified status of all the comparable sales so you can differentiate your property from others on the market

Additionally, you will not have wasted valuable time on the market in a transaction/contract that will never close and then have to put the property back out on the market (and then get low-ball offers).

For agents, the pre-listing appraisal has all of the benefits above, plus you don't have to be the bad-guy. Rather, you can simply let the pre-listing appraisal be the unbiased 3rd party that provides facts about what to expect and where to list.

If your serious about selling your home for maximum value, then talk to your favorite Realtor about a recommendation for a pre-listing appraisal today!

Best wishes and happy selling!

The Early Bird Gets the Worm!!!

How many of us have heard the old proverb that the "Early Bird Gets the Worm?" Well, while this phrase rings true for many aspects of life, its especially true for real estate.

For agents, the one that calls first usually converts the lead to a buyer and the one that calls first for a listing appointment usually gets it.

For buyers, the ones to call their agents to see foreclosures on Day 1 that they hit the mark and the ones that make the first offer are normally the ones to get their offer accepted. The same is true for price reductions - they really stimulate activity for aged listings and so a house that had no activity will sometimes suddenly get a huge set of showings. Be the first and that good deal could be yours.

One key here for buyers - you need to be working with a responsive Realtor who understands this fact about how the early bird gets the worm. If not, someone else may get your worm (aka good deal or dream home) leaving you high and dry.

Just a thought from this rainy weather we've been having!

Twin Hickory & the Far West End - Western Henrico

I was out showing homes yesterday morning in the Far West End in the prestigious Twin Hickory neighborhood. I was surprised at how many foreclosures there are in the area, as well as how many new construction communities are still building out there. It seems to be quite the dichotomy of behavior!

Nonetheless, what seems to be selling are the homes under $400,000. Once a home drops under that magic level, it seems to sell and most over it seem to be going through the price drop blues. Just my humble observations.

Check out the relevant websites for the area below:

http://www.twinhickoryhomes.com/
http://community.associawebsites.com/sites/TwinHickory/Pages/AcwDefault.aspx
http://www.boonehomes.net/twinHickory_bellingham.html
http://www.ryanhomes.com/Bentley_9626920050408.html

Trick or Treat? Oct 31 Richmond-Area Market Stats

This report is to advise about where our Greater Richmond-Area market stands. Currently, we have 8337 homes actively for sale under $500,000 in the Central Virginia Regional MLS. 1374 homes have sold in our MLS since August 1st of this year, meaning that our market is absorbing an average of 458 homes per month.

For the month of October, Chesterfield and Henrico, the 2 largest suburban counties in the area, had a total of 359 sales with an average sales price of $234,788, an average price/square foot of $115.33, an average sales/list price ratio of 98% and average Days on Market of 69 days. The sales/list ratio is up from a low of 95% earlier in the year and the average DOM is down from an earlier high 84 days - all good news for the market.

With the expiration of the 1st time home buyer tax credit, my expectation is that the inventory will increase due mostly to seasonal factors and prices will continue to decline. There's also a significant number of "shadow inventory" homes currently owned by the banks but not yet listed for sale that will potentially further increase inventory.

In my humble opinion, Spring of 2010 promises to be our hope for the start of better things for our real estate market, but the worst is already behind us!

Ready to Close? Better have a current picture ID

I had an interesting learning today when one of my excited first time home buyers learned that they can't close on their new home despite the fact that their mortgage lender and title company are ready. Why, you may ask? Why its because their driver's license has expired.

With the inception of the Patriot Act, buyers are required to provide picture IDs from the State or Federal government. This most often means either a driver's license or passport.

So, if you're under contract or considering it, then double check your identification and make sure that you don't lose it near closing day!

The Market is Turning - Multiple offers are back

It seems that the market is turning as home sellers at higher price points are coming back to the market and I'm seeing quite a bit of multiple offer situations for both myself and my team.

While this is unfortunate for my buyers that don't get the home that they're after, it is a very good sign for the economy and the housing market. The true test of whether this is real or just temporary will be what happens in December after the 1st Timer Tax Credit is no longer available!

Closing the Deal & Title Issues

After rarely dealing with Title Issues over the last 4 years (only 1 issue ever), I've had 4 transactions this month bitten with the Title bug. That is, some tricky dilemmas concerning delivering a clean title to the purchaser.

This was the case for 3 buyers that I represented and 1 seller. In half of the cases, the liens were never properly released from the original builder. Other issues included bankruptcy courts, boundary lines, and improper foreclosures. The key in resolving all of them have been open and honest communication, as well as knowledge of particular title companies' strengths and opportunities.

While its been a trying month (although very profitable) in many ways, I'll be a much stronger Realtor going forward for the experience!

Time to Leave San Diego - Welcome Back Richmond

Well, its time to leave the Zip Realty Team Leader Conference in San Diego. What a blast!

Yesterday, I did take a trolley around the city to see the sites. What a great transit system they have with the buses, trolleys, and trains. It was quite interesting to see all of the varying architectural styles and Old Town is called the "Jamestown of the West" as it was the founding place of all of California.

While I was excited to learn many new things (including how to blog) and about many of our newest intitiatives to continue to make our company great, I'm also excited about getting back home to Richmond to see my family and get back to my clients.

My fellow covering Realtor (thanks so much Sabrina) has been busy while I've been away with counter-offers on listings, a new offer on a foreclosure in Dinwiddie and a closing. I have several clients chomping at the bit for my return, including seeing some foreclosures in Glen Allen and closing a sale on a listing in central Chesterfield on Friday.

My first blog

This is my first blog from the 4th Annual Zip Realty Team Leader Conference. Here's I'd like to highlight my newest listing at 4609 Cinderwood Drive in central Chesterfield VA. This beautiful home priced at $169,999 perfect for first time homebuyers or investors. I can't wait to learn more about this blog stuff!