Reposted From The KCM Blog on September 20, 2011

4047 Amicus Road, Stanardsville, VA

Featuring an Expansive Deck with a Bold Mountain View

Offered at the Compelling Price of $285,000

MLS #:492371  For Property Details Click Here

This beautiful contemporary home, on 4.5 private acres, boasts a gorgeous rural setting with no HOA yet the convenience of living near the commercial offerings of Ruckersville and close proximity to the county schools, NGIC, DIA, GE and the UVA Research Park.  Setting this home apart from much of the competition is the strong view of the mountains enjoyed from the expansive rear deck as well as from the   interior of the home via the many large windows and glass, sliding doors. 

Mature landscaping compliments the front of the property including various trees and landscape beds.  The open, grassy area to the left side and rear of the property offers many  possibilities for more flower beds, a garden spot, the addition of an improvement such as a workshop, etc.  There is plenty of room to build on whatever your hobbies and passions include.       

Entering the home you are greeted by such a warm and welcoming area generated from the natural light coming through the many windows and the vaulted ceiling of the living room.  Look forward to relaxing by the gas-log fireplace while taking in the mountain view.  With the living room opening into the dining area that adjoins the spacious kitchen with its built-in buffet entertaining is quite enjoyable—all while taking in the natural backdrop of those mountains.  Adding further natural beauty, the solarium which is off of the kitchen provides those with a green thumb an ideal place to grow and showcase their plants or instead a warm and light filled sunroom.

The very livable one-level floor plan has rich, laminate flooring throughout with ceramic tile in the foyer, kitchen and bathrooms.  Other interior features include a master bedroom with a vaulted ceiling and a fantastic view of the mountains as does the jetted tub in the attached master bath.  The attached two-car garage as well as the full, unfinished basement offer a very large amount of storage and unfinished space.

With its bold mountain view, privacy, no homeowners association and close proximity to commercial conveniences 4047 Amicus Road is a very attractive offering.        

Reposted from The KCM Blog on September 6, 2011 

We are often asked “Is it time to sell my home?” The answer to that question is based on what your families’ goals are. If you don’t need or want to move for a few years it might make sense to wait for the housing industry to recover and prices to appreciate. However, if you wish to move within the next six to eighteen months, it is probably better to sell sooner rather than later. Here are five reasons why:

Your House Will Get More Exposure Now Than the Winter

Housing sales usually level off in the summer and then regain momentum in September and October. The spring buyers’ market has passed. Don’t miss the early fall market. It has consistently outperformed the winter season.

Distressed Properties Will Impact Prices

Distressed properties (foreclosures and short sales) on the market will increase this fall and winter. This will put tremendous downward pressure on prices for at least the next 12-18 months. Get your home sold before they become your competition.

Mortgages Will Become More Difficult to Attain

Lending standards are continuing to tighten. There is legislation currently being considered that will make it even harder for buyers to qualify. Less demand will equate to lower prices.

It is the Perfect Time to Move-Up

With prices where they are and interest rates at all time lows, there may have never been a better time to move-up into your dream home. If you move into a more desirable home now, you will be in position to gain larger equity as prices eventually appreciate.

You Get to Move On with Your Life

Probably the most important reason to sell is so you can get on with your life. You are considering selling for a reason. Do not allow a less-than-stellar housing market prevent you from reaching your goals as an individual or as a family. Think about the reasons you are thinking about moving. Are these reasons really important to you? If you have to take less than you were originally hoping to get for your house, your family has a question to ask each other: Is the dollar difference in sales price worth putting off our plans? Only you and your family know the answer to that question.

Re-posted from The KCM Blog
Written by Dean Hartman on September 1, 2011

Re-posted from The KCM Blog
Written by Steve Harney on August 31, 2011

Occasionally, Steve Harney, our founder and lead content creator, asks us permission to share his personal feelings on a current real estate issue. Today, is one of those times. – The KCM Crew

I am truly excited that the banks are beginning to see that a short sale in many cases is a good alternative to foreclosing on a property. It makes more sense to sell the property at a higher price. At the same time, the banks are creating less vacant REOs (foreclosures owned by banks) which have blighted neighborhoods and negatively impacted surrounding house values for the last several years

It is also satisfying that so many of my fellow real estate professionals are taking the time to get properly trained to facilitate these transactions to a successful closing. It is a good revenue stream for some agents at a time that has proven to be very difficult for many industry professionals to make ends meet.

However, today I don’t want to speak to the financial aspects of the surge in short sales. Instead, I want to address the impact it has on the families living in these homes. They have found themselves in over their heads. In many cases, they can’t afford the mortgage and are trapped – unable to sell because the mortgage exceeds the home’s value. They may believe that they are left with only one alternative – allow the home to proceed to foreclosure.

Let’s realize the consequences of this decision for the family. The day will come that someone in an official capacity knocks on the door and notifies the family it is being evicted immediately. No matter how well they have prepared, at that moment, spouses look to each other in embarrassment. There is a big difference between imagining how this moment might feel and actually experiencing it.

And, in so many cases, there are children involved. The official stands there as a mother or father gets on a knee and explains to their son or daughter that they must go pack up some of their toys and belongings in a hurry because the family must leave – now!

The short sale process avoids these situations. The family plans around a set closing date. The children are made aware of the move months in advance and the parents have time to lessen the pain of that move.

Short sales make good financial sense for all involved. They also allow families to exit an extremely difficult situation – WITH DIGNITY.

Reposted from The KCM Blog on August 30, 2011
Written by Christopher Reale

We are honored to have Christopher Reale, Director of Short Sale Operations at Lepizzera and Laprocina Title and Escrow Services, as today’s guest blogger. He is an expert on the short sale process and will share his knowledge with us on a regular basis. – The KCM Crew

Last week, RealtyTrac released its Q2 2011 U.S. Foreclosure Sales Report. The report confirmed what we are hearing in the marketplace – banks are beginning to look more favorably on short sales as option to foreclosure.

The report dissected the sales of distressed properties in the second quarter of 2011. Here are several of their findings:

• Sales of homes that were in some stage of foreclosure or bank owned accounted for 31 percent of all U.S. residential sales in the second quarter of 2011, down from nearly 36 percent of all sales in the first quarter.
• A total of 102,407 pre-foreclosure homes (short sales) sold in the second quarter, an increase of 19 percent from the previous quarter.
• A total of 162,680 REO homes (foreclosures) sold in the second quarter, virtually unchanged from the first quarter.
• Short sales on average sold for a discount of 21 percent below the average sales price of non-foreclosure homes.
• REOs on average sold at a discount of nearly 40 percent below the average sales price of non-foreclosure homes.

This could be a great sign that banks are finally realizing the advantages of short sales over foreclosures.

Bloomberg.com quoted Rick Sharga, senior vice president of RealtyTrac, in an article covering the report:

“This is a glimmer of hope that lenders are getting more realistic. It’s a win for borrowers who avoid foreclosure, buyers who get a house in better condition and banks that lose less money, which is also a win for taxpayers.”

Bottom Line

Banks are beginning to do more short sales. It is time for everyone involved to help in this endeavor. Tomorrow, we will have a short sale expert, Christopher Reale, blog on gaining the right mindset to do just that.

Reposted from The KCM Blog on 8/29/2011

1220 AGNESE STREET, CHARLOTTESVILLE, VA

The Newest ERA Bill May Realty Co. 
Gold Star Listing

• Pre-Listing Home Inspection!
• One Year Home Warranty Included in Sale
• Home is Staged and Shows Beautifully!

With charming curb appeal, a beautiful, large backyard and an interior with many great features and updates you can genuinely look forward to coming home to 1220 Agnese Street.

Located in the well established Woodhaven community this home is very convenient to all things Charlottesville.  Enjoy being within walking distance of the popular Rivana trail, minutes from the Downtown Mall, and a quick commute to the commercial conveniences offered along Route 29.  Yet, still enjoy the pleasures of relaxing outside in your own green-space offered in the expansive backyard.  Whether watching children play, pets run, gardening, or entertaining friends and family on the back patio the backyard is a great getaway. 

Inside, rich hardwood floors great you along with a glassed-in wood-burning fireplace with a mantle above.  The large master bedroom has an attached bath as well as  access to the rear patio.  Further, there is potential for a master suite here as you could easily use the adjoining room as a quaint sitting area or as a dressing room or office.  Multiple rooms have been recently painted and the hall bathroom has been impressively updated including ceramic tile flooring and shower.  The finished basement offers a good amount of additional living space including two sizeable rooms (one currently used as a home office and the other as a bedroom), a full bathroom, a den, a small workshop area and a large laundry room.

With convenience, a beautiful backyard to enjoy the outdoors and many great interior features 1220 Agnese Street is a great place to call home.

Should You Rent or Buy in this Market?

Reposted from the KCM BLOG June 1, 2011

Families are trying to determine whether or not now is the time to buy a home. Some are advising these families to sit out the current real estate market and instead rent for the next year or two. We do not agree with this advice. Homeownership means a lot to a family. We also realize that the financial aspects of purchasing a home today can be a concern. The challenge is any advice given by someone in the real estate community is immediately dismissed as self-serving.

For this reason, we want to give you the advice of three entities not involved in real estate sales:

Citigroup

“When we examine the relationships between mortgage payments and income and mortgage payments and rent, we see that these relationships have also reverted back to or below equilibrium points. In some cases, particularly when mortgage payments are compared to the cost of renting, home prices actually appear cheap.”

JP Morgan

“JPMorgan analysts said ‘the continuation of falling rental vacancies and rising rental demand will make home buying increasingly attractive’, especially as rental prices increase.”

Business School professors Eli Beracha and Ken H. Johnson

“Fundamental drivers now appear to be in place that favor homeownership over renting in the near term future…

The second finding might seem unwise to many given the recent crash in the real estate markets around the country. However, rent-to-price ratios now seem to be in place along with other fundamental drivers that favor ownership over renting…

Conditions (historically low mortgage rates and relatively low rent-to-price ratios) now seem in place to favor future purchases.”

Bottom Line 

Is it better to rent or buy? According to those quoted above, it seems it may be becoming a no-brainer.

Renting: Truly a Better Option?

Reposted From the KCM Blog on April 29, 2011

What is the most important thing a seller should look for when  hiring a real estate agent to sell their house? We are often asked this question. Is it the size of the company they are licensed with? Is it their marketing program? Their years experience in the business? Should you choose the agent who suggests the highest listing price?

There are many things that should be taken into consideration when hiring someone and giving them the responsibility for selling your home. In our opinion, the most important question you can ask a potential listing agent is a simple one:

Do you truly believe that now is a good time to buy a home?

Why should this matter when hiring someone to SELL your home? Buyers are nervous about purchasing right now. They want to know they are making an intelligent choice. We believe, especially in today’s market, you need to hire someone who realizes that this is one of the best times in American real estate history to buy. If an agent doesn’t believe that, how will they be able to convince a potential buyer to buy your home?

When interviewing a real estate professional, ask them to explain why purchasing a home makes sense today. They should be able to explain it simply and effectively. See how many of the following facts (which should be shared with every potential purchaser) the agent knows:

The Wall Street Journal last week stated:

“With home sales starting to improve, and with prices now possibly forming a bottom, real estate could well be the asset class that represents the best low-risk buying opportunity out there today.”

Donald Trump was just quoted saying:

“I’m pretty sure this is a great time to go out and buy a house. And if you do, in 10 years you’re going to look back and say, ‘You know, I‘m glad I listened to Donald Trump’.”

John Paulson, a multibillionaire hedge fund operator and the investment genius who made a killing betting against housing a few years ago, is now bullish on residential real estate market. He recently said:

“If you don’t own a home, buy one. If you own one home, buy another one. If you own two homes, buy a third. And, lend your relatives the money to buy a home.”

A recent Gallup Poll showed that 67% of American’s think that now is a ‘good time’ to buy a home. The Gallup Organization went on to say:

“Overall, there is good reason for most Americans to think now is a good time to buy a house. Interest rates remain near historic lows. Home prices are down sharply, providing many incredible buys.”

The iconic financial paper in this country, the country’s most famous real estate investor, the most successful prognosticator of the housing market and 2/3 of all Americans say now is the time to buy a home. Shouldn’t your agent agree?

Bottom Line

Selling is nothing more than the transference of conviction. How can agents transfer that conviction if they themselves are not convinced? Find a listing agent who truly believes that someone should buy your home – TODAY! This is the single most important thing you should look for in a potential listing agent.

Re-posted from the KCM Blog posted on 2/4/20100

Over the next several months, there is going to me some confusion about how well the real estate market is doing. Some headlines are going to announce several consecutive months of increased sales. Other headlines are going to talk about a near total collapse in housing. Both headlines will be based on facts supplied by the National Association of Realtors (NAR). How can that be? How can data report that two opposite things are happening at the same time?

Let us explain. NAR will release two reports each month: the Pending Sales Report and the Existing Sales Report.

The Pending Sales Report (as per NAR)

The Pending Home Sales Index is a leading indicator for the housing sector, based on pending sales of existing homes. A sale is listed as pending when the contract has been signed but the transaction has not closed, though the sale usually is finalized within one or two months of signing.

The Existing Sales Report (as per NAR)

Existing-home sales are completed transactions that include single-family, townhomes, condominiums and co-ops.

The reason there will be confusion created by the media reports is actually simple to explain. There will be two different numbers reported by both reports each month.

• The month-over-month (M-O-M) comparison and
• The year-over-year (Y-O-Y) comparison

Normally, we would want to look at the Y-O-Y numbers in each report. However, these numbers are skewed because of the Home Buyer Tax Credit which was available to purchasers for the first four months of last year. Comparing contracts and sales with this time last year would be like comparing apples and oranges.

We strongly suggest that you look at the momentum shown in the month-over-month numbers. They accurately depict a surge in sales that we believe will continue throughout 2011. However, that does not mean price appreciation. Just as demand is increasing so is the supply of inventory. Price is determined by both supply and demand. We do not see any price appreciation until later in the year or early next year.

Bottom Line

The market is coming back. Homes are selling. We have turned the corner and 2011 will be the year the market will normalize.

Does It Make Sense To Buy a Home?

The financial turmoil we have experienced over the last five years has definitely taken it’s toll. It has especially been a difficult time for real estate. Nationally, values have fallen over 25% and there may be more softening in prices to come. We realize that this has caused difficulty, and in some cases, heartbreak for many families. People unable to make their mortgage payments have been forced to sell or, even worse, have faced foreclosure.

However, the thing that has continued to amaze us is the country’s steadfast belief in the benefits of homeownership even in these most difficult of times. The vast majority of Americans still realize that the value of a family owning a home goes far beyond just the financial considerations.

There have been three major surveys done in the last 75 days delving into Americans’ current belief in the value of owning a home:

1. The National Housing Survey by Fannie Mae this past November.
2. The Housing Survey by the Gallup Organization completed last month.
3. The American’s Attitudes About Homeownership (AAAH) study completed by Harris Interactive for the National Association of Realtors.

Each showed the country still believes that buying a home makes all the sense in the world. Let’s consider some of the findings:

Is owning a home good for a family?

• In the AAAH study, 87% of homeowners and 64% of renters believed that “owning a home provides a healthy and stable environment for raising a family”.
• The Fannie Mae study showed that the main reason people gave for buying a home is that “it is a good place to raise children and provide a good education”.

Has owning a home been a positive experience?

• AAAH: The study shows that an astonishing 88% say it has been “a positive or very positive experience”. An overwhelming majority of home owners are happy with their decision to own a home. A full 93% of owners surveyed would buy again.
• Fannie Mae: The study shows that 95% see homeownership as a “positive experience” for them and their families.

Do renters aspire to own a home?

• AAAH: Most renters aspire to home ownership. The majority of renters (63%) say they are at least somewhat likely to purchase a home at some point in the future. Among them, young adults (18- to 24-years-old) have the strongest aspirations for home ownership.
• Fannie Mae: 67% of renters plan to purchase a home in the future.

Is now a good time to buy a home?

• AAAH: 78% of homeowners and 58% of  renters believe now is a good time to buy.
• Fannie Mae: 64% of those surveyed said it is a good time to buy a home.
• Gallup Poll: 67% of Americans think now is a good time to purchase a home.

Bottom Line

Survey after survey report Americans believe two things: that there is a value in owning a home and that now is the time to buy!! What are you waiting for?

Reposted from the KCM Blog on 1/28/2011

The National Association of Realtors (NAR) has been reporting great news recently. Last week’s Existing Home Sales Report and yesterday’s Pending Sales Report both showed consecutive months of increases in the number of homes sold. Finally, buyers are jumping off the fence and taking advantage of one of the most opportune times to purchase a home in America’s real estate history. With an increase in demand, price appreciation can’t be far behind, can it?

Actually, the answer is NO! Prices are not determined by demand alone but in the relationship of demand to available supply. The inventory of homes for sale is still too high and about to surge higher. Along with the news of increased demand yesterday, RealtyTrac released their 2010 Year-End Metropolitan Foreclosure Market Report. The report showed that distressed properties across the country are on the rise:

… foreclosure levels remained five to 10  times higher than historic norms in most hard-hit markets, where deep  fault lines of risk remain and could potentially trigger more waves of  foreclosure activity in 2011 and beyond.

The report also explained that the foreclosure epidemic is spreading to more and more of our communities:

… foreclosures became more  widespread in 2010 as high unemployment drove activity up in 72 percent of the  nation’s metro areas — many of which were relatively insulated from the initial  foreclosure tsunami.

(Attention KCM Subscribers: The January issue of Keeping Current Matters has the ‘shadow inventory’ of homes coming to the market broken down by state. Use the chart when talking to sellers about future prices in your region. Click here to login.)

What does this mean for prices?

Here are a few quotes from this week.

Washington Post:

The closely watched S&P/Case-Shiller report shows that housing prices, compared year-over-year, have declined nationally for six consecutive months. The downward path suggests that housing prices could, by spring, hit their lowest level since April 2009, said David Blitzer, the index committee’s chairman.

New York Times:

A new slide in housing prices has begun in earnest, with averages in major cities across the country falling to their lowest point in many years.

CNN Money:

Barclay’s Bank analyst Theresa Chen doesn’t expect a reversal in housing market trends any time soon, since there is no end in sight to the foreclosure crisis.

“We expect softness to persist,” she said, “as home prices continue to face headwinds from the large pipeline of foreclosures entering the market.”

Housing Wire:

“… we believe that home prices will continue to weaken on a month-over-month basis until spring, and a year-over-year basis through the end of 2011,” the Radar Logic said.

Bottom Line

Prices will continue to soften in the first half of 2011 in most regions of the country. This information should be taken into consideration if you plan on selling your house in the next twelve months.

WHAT THE CRYSTAL BALL SAYS ABOUT RATES

Predicting what will happen with interest rates is risky for a person’s credibility.  Last year at this time, I (and the KCM Crew) believed rates would climb after June and for very logical reasons: the end of the Fed’s purchase of mortgage-backed-securities (MBS) and the end of the Tax Credit. What we didn’t anticipate was the collapse of the Greek economy. 

That being said, I firmly believe that my opinion on the topic has some value. So, here’s my opinion (which assumes the governments of Ireland, Spain and Portugal stay solvent and no other major geo-political event occurs- like a war or terrorist activity).

The Fed and the federal government have publically stated their desire to get the American Economy back on track.  Their goals:

• Creating Jobs. They want to put Americans to work.
• Improving Production in the corporate and manufacturing sectors (which will create jobs and profits)
• Ratcheting Up Inflation in order to get prices moving upwards (really as a prevention of deflation)

Accomplishing these goals will likely improve the fortune of businesses (by creating higher sales, profits and stock prices).  In turn, the expectation is that these businesses will expand (spending money and creating jobs).  The money spent and jobs created will beget more spending in the private sector which will, in turn, create more sales, profits and jobs for the businesses.  Logical? Yes. Simple to accomplish? No.

Rewind 18 months: the Fed decided to buy massive quantities of mortgage-backed-securities to keep rates low (which encourages businesses to borrow and invest….and to refinance their existing debt to help their bottom lines).  Unfortunately, there was little confidence in the plan and many businesses instead of expanding, actually tightened their belts. You see, CONFIDENCE is a crucial component to any recovery.  There wasn’t enough confidence (look at the November elections as proof).

But in the last few months, Americans seem to have to begun to feel that things can and will improve.  QE2 has encouraged borrowing and expanding.  Jobs are starting to come back slowly. The infusion of $600 billion into the economy from the Fed via their new MBS purchase program is both inflationary and helpful in devaluing the dollar abroad (which allows foreign money to buy more American goods and services for less).  That helps improve sales, profits and jobs for businesses here.  The wheel is beginning to grind its way in the right direction.  At least, there is some confidence in that plan.

How is all this likely to affect mortgage interest rates?

• Inflation is always…bad for rates
• More jobs is inflationary…bad for rates
• A strong stock market…bad for rates
• A devalued dollar helps companies selling abroad and their stock value…bad for rates
• Consumer Confidence typically good for stock prices…bad for rates

Conventional wisdom is that, while rates have climbed from the low 4s to about 5% already, 2011 looks to be a volatile year with rates bouncing from 4.75% to 5.5% throughout the year. That’s a significant range and it behooves home buyers to pay attention and strongly consider locking in their rates when they are 5.125% or lower. 

Additionally, home sellers need to recognize that a .75% hike in rates makes a home about 8% more expensive to afford monthly. As we know, buyers don’t buy on price but instead buy on monthly carrying costs. Sellers are going to have to lower their prices by 8% to achieve the same cost for their buyer.

That’s my prediction in an unpredictable world….Let the debates begin.

Re-posted from The KCM Crew on January 25, 2011

Simon Cowell would have to be considered congenial compared to the critics of real estate in the last few years. But like the popular TV show, where the ultimate winner is not chosen by a  select few but instead by the vote of the nation, homeownership again has proven to be the choice of the people. There have been numerous survey’s and polls done in the past 90 days that confirm this.

 American Attitudes About Homeownership is a new survey conducted by Harris Interactive for the National Association of Realtors. The findings of this survey combined with the findings of Fannie Mae’s November  National Housing Survey and last week’s Gallup Poll paint a clear picture that the majority of Americans still value homeownership and believe in its benefits. In the latest survey, America’s belief in owning a home came through loud and clear.

Here are a few of the findings:

Homeowners and renters agree that owning a home is a positive choice. A majority of homeowners and a sizable percentage of renters agree or strongly agree that owning a home provides a healthy and stable environment for raising a family (87 percent among homeowners and 64 percent among renters), that it helps them meet long-term financial goals (77 percent among homeowners and 55 percent among renters) and it helps them realize the American Dream (70 percent among homeowners and 48 percent among renters).

Most homeowners (95 percent) and renters (72 percent) believe that over a period of several years, it makes more sense to own a home than to rent.

More than 8 in 10 homeowners (82 percent) and half of renters (50 percent) would prefer to buy a home if they had to move in the next six months. Furthermore, 78 percent of homeowners consider now a good time to buy as do 58 percent of renters.

Homeownership is viewed as a positive experience while less so for renting. Eighty-eight percent of current homeowners report that owning a home has been a positive or very positive experience. About half of renters (51 percent) consider their experience as positive or very positive.

Many renters aspire to homeownership. More than 6 in 10 renters are at least somewhat likely to purchase a home in the future and 24 percent indicate that they are extremely likely. Among young adult renters, 74 percent say they are likely to buy at some point in the future. About one-third (35 percent) of renters plan to purchase a home in the next 3 to 5 years (43 percent among young adult renters).

More about the non-financial benefits of homeownership

We have argued for some time that the benefits of homeownership are more than just financial. This survey addressed this point and reported:

A larger share of homeowners than renters describe their communities as safe and stable. Homeowners also report that they are more satisfied with their community and family life. While many factors contribute to a positive community environment, a large percentage of homeowners and renters believe a high rate of homeownership is one factor. Homeowners generally feel more connected to their communities, participate in community and civic activities more frequently and are more likely to know their neighbors well.

Bottom Line

Owning a home has both financial and social benefits for your family. Today, you can buy a home at a discounted price and at an historically low interest rate. Why wait?