Virginia Real Estate Blog: June 2008

I was in the office early this morning before meeting with a client. I overheard a few agents commenting on how there wasn't anything to do this weekend. WOW! Is that possible? Let me list a few options (all air conditioned!)

1. Chrysler museum - new rembrandt etchings exhibit and ANSEL ADAMS

2. Nauticus -Cool exhibit on Sea Robots

3. Virginia Aquarium - so much to list here... including IMAX theater!

4. Speaking of theaters - Check the NARO in Norfolk great indie flicks

For cooling breezes, I prefer outdoor activities like kayaking. It is a little hot for that so for some real wind generated cooling, try sailing or windsurfing. My husband and I spend a lot of time on Fine, our Kirby 25. She stays at Willoughby Marina and we usuallly sail in Willoughby Bay or James River.

Here is an image I shot while sailing Fine!  Fort Wool is in the background... Fort Wool, at the base of the Hampton Bridge Tunnel was active in the Civil War, WWI, and WWI from what I remember.

Just wanted to look at some data... I know there are folks out there who like numbers too...

I have some (sort of) pretty charts to share too, but basically what I want to show is that homes, once priced appropriately are selling in a reasonable timeframe and within a reasonable distance of list price... Well to me it looks reasonable - anyone have thoughts on your market?

Here is what I looked at- homes in the market that have been listed as SOLD in the most recent 7 day period as of June 26th, 2008. Comparing city to city in the Hampton Roads region, we are seeing about a 3% discount from List Price with a market time of, on average, 78 days. Our most active market is Virginia Beach with 71 sales. Virginia Beach also has the highest average selling and list prices for our market.

For those who are curious, the highest list price of those that sold this past week was $3.5M. The lowest average list price for all cities was $114,000.

It is really heating up in Hampton Roads real estate! I have had a wonderful week!  I met a couple of new families who decided to buy homes in our area and we have ratified contracts on 2 properties in Virginia Beach! 

The important message I wanted to share with everyone is really about energy savings.  As I said above, it is really heating up!  As temperatures rise, we are more likely to keep that air conditioning running.  This of course leads to higher energy bills.  To save some money here are some easy things you can do...

1. Raise the setting on your AC - 78 degrees should be just right!
2. Close off the vents in areas of the house you don't use (spare bedrooms, etc).
3. Keep curtains closed, especially on the sunny side of your home.
4. Use a programmable thermostat to monitor the temperature - no need to keep your home at 74 degrees during the day if you are at work from 9 to 5!
5. Keep lights off when possible and switch to CFL!
6. Lower the water temperature on your hot water heater - when it is hot out we tend not to take steamy showers anyway!  Why pay to heat that water! (About 120 degrees is good!)

For more suggestions go to energystar.gov and look at the Home Improvement Page... Lots of tips available!  I also have a great brochure available and am happy to share it - give me a call!

Are you having issues with buyers trying to get the phenomanal deal?  I wrote an offer this weekend that was not significantly below what I thought market value should be, BUT when you take into account the CCA requested, I thought it was a real stretch.

Now the counter has come in and, no surprise, it is higher than the offered price. Bigger surprise for me was willingness of the seller to pay the CCA that was requested. Yes, that is expected in our market today. But still it is a 'hit' to the seller especially with the upgrades already done, and the reduction from List to offered price...

I have heard tale of the buyer  turned vulture, and even though we are asking a lot of the seller in this offer, we haven't yet approached vulture... How fine is that line between vulture and buyers market offer price?

I had a good rant going... All about the article in this morning's Virginian Pilot about home prices dropping. I had typed in the whole rant and then hit post entry and the site locked me out!  Rant narrowly averted!  =)

Let me just say... Home prices don't have to drop if home sellers and their agents price their homes right from the start. Just be realistic about how long it will take to sell and what incentives should be offered. Dropping the price doesn't help nearly as much TO THE BUYER as offering buy down assistance or CCA. Be wise what you offer to buyers...before dropping the price.

I had a long conversation with my seller of 300 Autumn Circle, Suffolk yesterday morning. It was productive -- regarding where to target market their home, etc. While I was talking to them, I received a call from an agent asking to see the home that evening!  Feedback was terrific and they will want to see it again in a week when the husband can join the wife in the house search.

Then, as I mentioned in my earlier blog, I had the yard spruced up at my vacant listing in Norfolk. The yard looks great!  Anyway, I received a call from an agent who had showed it twice and an offer was coming in! 

I am also putting together a CMA for a potential listing that came from my website. I was just thinking about cancelling this website because I hadn't gotten much in the way of positive leads from it. Anyway... you never know what kind of day you are going to have in real estate!  :)  The potential listing is waterfront home, here is a photo of the river from the front yard...

I have a listing that is currently vacant (the owners are military and transferred to California - leaving only a few weeks ago).  I met a vendor of mine at the home today to do the mowing (Larry Shaw, WaterWorks... he does auto detailing, power washing, lawn care and is really good and attentive, and shows up when he says he will!).  Anyway, when I left my house to meet him there, it was a sunny, typical June day in Hampton Roads. 10 minutes later I was on the way home. The wind had shifted and our entire area (Norfolk) was blanketed with smoke from the forest fires in the Great Dismal Swamp and south of the border in North Carolina.

This is a serious event - more than 30,000 acres have burned at my last reading and if the wind is blowing in the right (or in this case, wrong!) direction then we get a blast of smoke that is thick and smelly and unpleasant.

 In contrast it was a gorgeous evening on the Ocean View Fishing Pier last night -- the drinks cold, the sunset beautiful, the people-watching fun. If you haven't experienced Willoughby and Ocean View, check it out. I previewed a super cute cottage not far from the pier.  This is typical of the neighborhood - we pull in the driveway, check out the yard, go inside, open the detached garage's door, and then the next door neighbor leans over the fence to say ‘howdy'.  She just wanted to see if we had any questions about the area or house, or maybe she was just being nosy to see what kind of neighbors she might be getting.  Anyway, I really like Willoughby and Ocean View. If you are looking for a beach home - give me a call.

For my numbers people out there... there are almost 400 homes (single family and townhouse/condos) for sale in that general area. Your prices range from $98,500 to $2,700,000. For size you can choose 460 square feet to more than 6,000 square feet!  You can choose sandy beach front or marina/pier/boat lifts or no water front. One of the best deals might be the 1100 square feet beach access townhouse with a 2 car garage and hot tub. It is listed for just $215,900 and the seller is offering $10,000 in closing cost assistance, interest rate buy-down, or other financial incentives!  If you want to live near the water, now is a great time to look at Norfolk VA waterfront property!

Here is my not very good photo of the Ocean View Pier and the photo from my home office window - both are blurry, one because of the smoke (window) the other because of my cell phone camera is bad (Pier)!

PS if you are self-employed, don't forget to pay estimated taxes! Due today!

On one of the things I like about Hampton Roads (Norfolk, Virginia Beach, Chesapeake, Suffolk, Portsmouth, etc) is the neighborhoods. There are so many gems out there!  Using a real estate agent familiar with the area is a help but just driving around can yield some real winners.

One of those neighborhoods you might stumble upon is Springfield in Suffolk. When you are heading out Route 58 and take the Suffolk bypass you might drive right by it. But a quick left onto Manning Lane and you are there!  It is an all-brick neighborhood with wide streets, cul-de-sacs, and no through-traffic. The POA dues are low because there is no pool or tennis courts or other expensive embelishments. The neighborhood is investing in landscaping and other beautification efforts...

So what is it that I dont usually do...

Well, I don't intend to use this blog as a way to advertise my new listings, but this home is great and I want you to know about it. And of course, it is in Springfield! 

I did an open house last weekend and locked my keys in the car. My husband had to bring me the extra set of keys and it only takes a max 25 minutes from Norfolk! It is easy access the highways for a dash to Newport News, Chesapeake, or Virginia Beach.  If you are looking for an elegant, executive style home, this is the one!  Check it out!  Virtual Tour at

http://plansandtours.com/319562

MLS 0826207

The Virginia-Pilot is the Southside Hampton Roads newspaper of choice... Well, it is the only newspaper, (unless you are content with the weekly alternative paper, the Portfolio Weekly). Today's editorial suggested that the cities in Hampton Roads, particularly Portsmouth and Norfolk, would be well served to coordinate vacant homes with section 8 housing. I agree with some aspects of the editorial.

 I do think there is a lack of affordable housing in this area. (One example (as an aside)... I received a call from a super nice lady who wants to move here from Ohio to be closer to family. She has a Habitat house there, but will rent in Portsmouth. Because she has 4 children she would like at least a 4 bedroom home but 3 would work. She would also like more than 1 bathroom. Again, a reasonable request.  Unfortunately I cannot find anything that works in her price range ($900 or under).  I get the sense that she would make a great, long term tenant for a landlord... but where does she find something in her price range and in the area she wants to live (western branch)... I can't find it).

 Another thing I agree on -- there isn't enough information available for potential landlords to make an informed decision about accepting Section 8. Where do you get this information? What are the truths vs. the rumors in the way of Section 8 housing and its paperwork and requirements? Is outreach to potential landlords available from the cities?  Landlords (or home sellers who are potential landlords) are busy people or are already out of town. This needs to be driven by the cities; the cities should not expect home owners to coming looking for information. 

 Speaking of rentals - there are some great duplexes out there for sale right now.  A great way to get started in home ownerships - buy it and rent one side out... If you are thinking about this route, give me a call. I can help you find one that will pay a large part of your mortgage or, if you rent out both sides, all of it!

So, maybe that's enough about selling homes... what about buying? There really are some great lending programs out there right now. Yes, I think it is true that those with less than terrific credit will have a harder time finding a loan, but DO NOT GIVE UP. Loans are out there and I know lenders that can help you find those loans or help you understand what you need to do to get one!

As I have mentioned in previous blogs, the majority of our home sales are in a price bracket that suggests first-time home buyers. Are you also reading this because you are a first time home buyer?

Here are some basic steps for you to get on your way to home ownership.

1. Get pre-approved for a loan! You wouldn't go shopping for a Mercedes if you could only get a loan for a scooter. Same for houses! Save yourself the heartache of falling in love with a home that is out of your price range by only looking at those you can afford. I have worked with great lenders in the area and can suggest some to speak to...

2. Hire a Buyer's Agent! People selling their homes have selected a real estate agent to represent THEM, the seller. As a buyer, you should do the same. Interview your agent. Find one that understands what you want and can help you find it. Consider those with the ABR designation (accredited Buyers Representative) - that shows a dedicated to education and to understanding buyers. AND of course, look for an ECO-Broker. An EcoBroker can help you understand how the home will impact your health (through indoor air quality) and budget (energy efficiency improvements). AND...just so you know, there is usually no cost to you for having a buyers agent!

3. Look for homes and make an offer. Once you have the house you like, work with your buyers agent to make an offer and negotiate that offer.

There will be lots of steps in between - appraisals, home inspections, walk throughs - but your agent will (or should) be with you every step.

4. Move in! Once you have 'closed' on the home, you are free to move in and decorate the way YOU want! And you get the tax benefits of owning a home!

Give me a call if you want more details, need a lender, or are ready to purchase. I look forward to hearing from you.

For those who like numbers: Our Local MLS (REIN) shows more than 3000 homes listed as PENDING.  That means homes are under contract / will be sold soon! So if you are on the fence - get out there soon - homes are selling!