Habitat For Humanity to Revamp Charlottesville Trailer Park
June 14, 2006 | Leave a Comment
The Charlottesville chapter of Habitat for Humanity is preparing to begin work on its plan to revamp a local trailer park. Habitat does great work all over the country providing affordable housing to very deserving low-income families. The project in Charlottesville is the first of its kind, and could be a real trendsetter for the rest of the country. It sounds like a great plan, and I hope that it meets great success.
Fluvanna/Louisa Pipeline Update
June 13, 2006 | Leave a Comment
The Daily Progress recently published a story on the approval of a James River pipeline in Fluvanna. The pipline would service Fluvanna and Louisa counties by bringing water from the James, through Fluvanna, and up to Zion X Roads.
Water is something that both counties are in desperate need of, if development at Zion X Roads is to continue. Fluvanna, especially, would like to see the pipline bring some much needed commercial development into the county.
How to Pick a Mortgage Lender
June 13, 2006 | Leave a Comment
People sometimes ask me, "What should I look for in a mortgage lender?" Well, here is a good answer to that question.
Generally, when it comes to finance issues such as, rates, amount of payment, etc., I refer people to the experts (i.e. a mortgage professional). I do the real estate, they do the lending.
Knowing When to Lower The Price
June 12, 2006 | Leave a Comment
I tell selling clients that the MOST important step in selling their home is to put the correct price on it. I admit that coming to an initial list price isn’t an exact science by any means; however, when the market forces are telling you that the home isn’t going to sell at its current price, then something needs to be done.
You can read a great article about price "corrections" from Realty Times.
As a seller, one thing to keep in mind is that in the end, it doesn’t matter what YOU think your home is worth, it only matters what the BUYER thinks your home is worth. There are things that you can do when selling your home to help potential buyers agree with your opinion, but in the end, your home will sell for the price someone is willing to pay. If you aren’t ready to accept that fact, then you might not be ready to sell.
One CEO Thinks Market Forces Will Restore Real Estate
June 12, 2006 | Leave a Comment
Read the following:
Pent-Up Demand Will Reverse Market, Toll Says
(June 9, 2006) — Pent-up demand is going to turn around the housing market, insists CEO Robert Toll of Toll Bros. He said demand will be driven by buyers who are biding their time waiting for better incentives or lower prices.
"Once the natural balance is restored in the market, you’re going to see prices go up again. Prices are going to go up quite a bit," he said.
He added that mortgage rates aren’t a major factor in the housing slowdown because they still hover near four-decade lows. "We did business when mortgage rates were at 8.5 percent and it was fabulous. Now it’s 6.5."
Toll also expressed confidence in the second-home market, which he says will stay robust as baby boomers relocate to Sun Belt states and urban centers.
Toll told analysts viewing his company’s declining stock prices to hang in there. "Right now we’ve got a pretty great economy out there," he says. "Jobs are growing every day. Sooner or later, it will back itself into homes."
Source: Philadelphia Inquirer, 06/09/2006
Now I will concede that Robert Toll has a VERY BIG interest in talking the market up. On the other hand, I think that there is some truth to his analysis. One of the best things about the real estate market is that it is, in fact, a free market. Prices are determined almost entirely by supply and demand. As of right now, the supply in most places is good, and demand remains fairly high, but people either cannot or will not pay the prices of the homes for sale. If prices do come down, people will most definitely buy the homes. While slower appreciation or falling list prices may not be the best of news for sellers, it is good news for the health of the market in general
Price Appreciation Up Compared to Last Year
June 7, 2006 | Leave a Comment
The Office of Federal Housing Enterprise Oversight (OFHEO) recently released its report on the Home Price Index (HPI). The HPI measures home price appreciation across the country, and is determined at the end of every quarter. The report showed an HPI that was 12.54% higher for Q1 2006 compared to Q1 2005. Obviously appreciation was mixed depending on the locality, but the number is a good sign that while the market may be slowing a bit, there is still growth in home prices.
The report also ranked the Metropolitan Statistical Areas (MSA) of the country according to 1-year appreciation. Charlottesville ranked 72 on that list, with a 1-year appreciation of 16.55%. It should be noted that the Charlottesville MSA showed a quarterly appreciation of 1.75%.
Most of the Top 20 appreciating MSA’s were located in Florida.
If you want to read some good in-depth analysis of the report, check out this article from Realty Times.
Want a Tour of a 75M Home?
June 7, 2006 | Leave a Comment
If you want to take a tour of the recently listed $75M home in Carona del Mar, CA, you are going to need credentials. Take a look at this:
Selling the Priciest House in All the Country
(June 5, 2006) — Anyone who wants to tour the house with the highest asking price in the country better be prepared to prove a net worth of $500 million or annual salary of $10 million.
The house is a 30,000-square-foot mansion known as Portabello perched on a cliff in Corona del Mar, Calif., south of Newport Beach. It’s priced at $75 million.
Some local real estate professionals are shaking their heads. ”Every agent in town is talking about it,” says real estate associate Mark Whitehead, who sells homes in Corona del Mar. "It’s a joke. It’s an image thing. It’s an ego trip to sell the most expensive home on the market.”
Bill Cote, owner of Cote Realty Group in Newport Beach, noted Portabello’s asking price is 300 percent more than the highest amount paid for an Orange County home.
Listing agent, John McMonigle of Coldwell Banker Previews International, declined to comment but released a statement saying that the house was reasonably priced considering the land was worth $45 million and it would cost up to $1,500 per square foot to rebuild the home.
The estate belongs to Frank Pritt, who in 1982 founded software maker Attachmate Corp., a large privately held technology company in Bellevue, Wash.
Source: The Los Angeles Times, Mai Tran (06/04/2006)
Great Ways to Save Water
June 6, 2006 | Leave a Comment
If you live in the Charlottesville area, then you already know that we haven’t gotten much rain this year. If you live in Lake Monticello, you know that the price of water can be very dear. As such, you may want to know how you may save money on your water bill, or save undue wear and tear on your well. If that sounds like a good idea to you, then read this article that suggest 36 different ways to save water. Even if you aren’t interested in saving money, convserving natural resources is always a good idea.
10 Most Expensive Homes in US
June 6, 2006 | Leave a Comment
I mentioned this once beofore, but Forbes recently released their list of the 10 Most Expensive Homes for sale in the US. MSN offers this article about the list. The cool thing is that you can click on a like to view a slideshow of the homes. Needless to say, they are pretty impressive. Too bad I don’t have a few million dollars laying around . . .
How Long for a Listing Agreement?
June 5, 2006 | Leave a Comment
Oftentimes, I hear the question, “how long should my listing agreement be?” The short answer is, “it all depends.” In this article, Bankrate.com Real Estate Advisor, Steve McLinden, suggests that 60-90 days is appropriate. I happen to agree. Local custom in this area is for listing agreements to be 90 days in length. Especially in a market such as this one, where inventory is high and days on market are creeping upward, 60 days is most certainly too slow. 90 Days is a good amount of time for a listing agent to market the property, and for the seller to evaluate the agent’s work.
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Disclaimer
My name is Daniel Rothamel. I am a licensed real estate agent in the Commonwealth of Virginia and a member of the National Association of REALTORS. As such, I adhere to a strict code of ethics and all laws with regard to equal housing, which is reflected in the content of this blog. My broker is Strong Team REALTORS, 86 Joshua Lane, Palmyra, VA 22963; (434) 589-5800. My VA Real Estate License number is 0225 077325. All of the opinions in this blog are mine, unless otherwise noted.
