Finally, a Real Estate Movie!
August 29, 2007 | Leave a Comment
I have always thought that real estate would make for a great movie. Plenty of drama, and no shortage of bizarre situations. Unfortunately, I can’t always figure out if mine would be comedy or a tragedy.
Someone saw fit to make a comedy. Closing Escrow is a real estate comedy playing in select cities. I must admit, the trailer looks pretty funny. Go check it out if you live near one of the select cities. As for me, I guess I’ll have to wait for the DVD.
[tags] real estate, realtor, charlottesville, virginia, comedy, movie, closing escrow [/tags]
Flip Houses, Make Money, Don’t Leave Your Computer
August 29, 2007 | 6 Comments
Hat tip to Jeremy Hart for this one:
Check out the cool little computer game, Mansion Impossible. Your goal: flip properties until you can move into the big mansion. It has the two video game requirements– simple premise, high addiction factor.
My personal best in three games, 22 years 4 months. Let me know how you do, and have fun!
You Know Your Blog Works When. . .
August 27, 2007 | 2 Comments
Earlier this morning, I was showing property to a very nice couple who were visiting the area for the first time. As always, the conversation drifted towards current market conditions. I was pleasantly surprised when they said, “We were reading your blog, and we saw the market stats.” One of the best features of blogging is that it gives me the opportunity to educate people before we ever meet face to face. Sometimes, I can answer questions they didn’t even know they wanted to ask. It makes my job easier, and makes them much more informed and therefore, much more comfortable. That’s pretty cool.
[tags] real estate, realtor, charlottesville, virginia, blog, blogging [/tags]
Getting My Online Identities in Order
August 25, 2007 | 6 Comments
I’ll admit, while I have watched the social networking craze with interest, I haven’t really participated all that much up to this point. Even though I graduated from college less than 5 years ago, it was still prior to the current trend. My brother, on the other hand, who is a now a sophomore at Hight Point University, practically lives on Facebook. When I was in school, AIM was cutting edge. My how quickly things can change. . .
At any rate, I figured that now is as good a time as any to catch up. As a result, I have updated my Facebook profile and my LinkedIn profile, and have sent out some contact requests. If any of you reading this get one from me, please accept. I don’t know if my fragile ego could take the rejection.
When I went through my email address book, I was amazed at how many people I knew who have LinkedIn or Facebook profiles. I have quickly discovered that social networking isn’t necessarily about who you know, but who they know. I look forward to participating in both networks and meeting new people. I hope to see you there!
[tags] real estate, realtor, charlottesville, virginia, social networking, facebook, linkedin [/tags]
Is the Mortgage Industry Sting Still on the Horizon in Charlottesville?
August 22, 2007 | 1 Comment
Just in case you have been in a coma for the last few weeks, the mortgage industry is reeling. Foreclosures are increasing, some lenders are unable to fund loans, lenders are closing mortgage units and laying off employees, and loans are getting harder and harder to find. If you watch the news too closely, you might think the apocalypse is just around the corner.
In the Charlottesville area, however, things seem to be doing a bit better. I haven’t noticed a sharp rise in foreclosures, and none of my clients have had trouble with their loans.
Could this change?
Last week, I attended a closing with some clients of mine. I always attend the closing with my buyer clients, just in case something comes up. In this case, their loan officer attended the closing as well. As my clients were deeply engrossed in placing their initials and signatures on the mountains of required paperwork, I struck up a conversation about the mortgage market with their loan officer. The conversation was quite interesting.
It seems that new lending and underwriting restrictions are soon to make their effects felt in the area. The loan officer indicated that she had more than one customer in the past few weeks who had the rug pulled out from under them when they had their loan pre-qualification revoked. The lending restrictions and loan programs are changing and disappearing so quickly that it is making it difficult to promise anything to borrowers. Some of the hardest hit borrowers are those who are self-employed or own a commission-based income. For those borrowers, loan programs are drying up faster than a snowball in the desert. 100% financing programs are becoming few and far between, as well.
While this isn’t the best news in the world for people looking to buy a home, the people that could be hurt the most are those looking to refinance. There are plenty of people out there who, during the real estate boom, purchased their homes with loans that had adjustable rates. Many of these loans, known as ARMs, are due to have their rates adjust soon. Those borrowers who are smart and proactive know that the rate will adjust, and are preparing to refinance the loan to a fixed rate. This difficulty is that with tightening lending restrictions, it may be very difficult for some people to find fixed rate loan programs to refinance into. This leaves people faced with the prospect of having to live with the adjusted rate and subsequently higher monthly payment. Not fun. There will likely be some portion of those people who will not be able to afford the new payment and will either be forced to sell or face foreclosure. Also not fun.
My point is that we will have to watch the Charlottesville market very closely over the next few months, and especially the first few months of 2008 to find out if new lending restrictions will have a significant effect on the market. If restrictions continue and people are unable to refinance their loans, there is the possibility that inventories could be pushed even higher and foreclosures could rise as well. All of this is speculation, since a lot of things could change over the next few weeks, and will change over the next few months. It is, however, a situation that demands close attention.
[tags] real estate, realtor, viriginia, charlottesville, mortgage, lending, loans, restrictions, foreclsoure [/tags]
July Charlottesville Real Estate Stats– The Broken Record Plays On. . .
August 17, 2007 | Leave a Comment
It is time once again to take a look at the monthly sales statistics for the Charlottesville area real estate market. July continued the trend of falling sales and rising inventories. If you think this is beginning to sound a bit like a broken record, you are not alone. 2007 has been the year of falling sales and rising inventories.
As always, the sales statistics are closed transactions recording in the Charlottesville Area Association of REALTORS MLS, and cover the areas included in the Charlottesville Metropolitan Statistical Area.
Let’s take a look:
July 2007
July 2006
Breakdown:
Every area was down significantly compared to last year. Albemarle, Charlottesville, and Fluvanna all saw sales drops of at least 32% compared to July of 2006. Greene County was the big loser, 45% less sales, while Nelson saw only an 11% drop (two sales). Over all, the Charlottesville area was off 34% from the sales pace set in July of 2006.
On a positive note, the median home price increased in every area. This helped push the Charlottesville area to a 3% increase in median home price for July.
Now, let’s take a look at how the Charlottesville area is doing year-to-date:
2007 YTD
YTD 2006
Breakdown:
Every area continues to lag behind the sales pace of 2006, which should be a surprise to no one at this point. Albemarle is 15% lower, Charlottesville 32% lower, Fluvanna 20% lower, Greene 35% lower, and Nelson 22% lower. The Charlottesville area as a whole has seen 22% less sales in 2007 compared to 2006 through July.
The median price data is mixed for the area. Albemarle has actually posted a 3% drop in median home price for 2007. Every other area has posted at least modest gains in median home price, helping push the overall median for the Charlottesville area 4% higher in 2007. I don’t have any hard evidence or statistics to back it up, but my instincts tell me that the drop for Albemarle County is probably due in large part to the changing market for new construction homes. New construction stats are notoriously unreliable from the MLS, but in talking to other industry people, new construction isn’t providing the boost that it normally does in the area. The interesting news is that while sales might be slower, prices are holding. For sellers, this is at least one positive thing.
2007 has been an interesting year in Charlottesville area real estate, and it promises to get more interesting as we move into the second half of the year and look to the horizon through the lens of new mortgage lending restrictions. As difficult as the market may seem right now, the impact of new lending restrictions may still have yet to be experienced in the Charlottesville area. More on that in the next few days. . .
[tags] real estate, realtor, charlottesville, sales statistics, housing statistics, fluvanna, greene, nelson, Albemarle [/tags]
Bloggers of the World, Unite! (or not)
August 6, 2007 | 6 Comments
I came across a very interesting story from the USA Today about a growing movement amongst bloggers to unionize.
My initial reaction, “wow, what a horrendous idea.”
Reading more only confirmed my opinion.
I am not a fan of labor unions, at least not in the form we currently see. That, however, is a subject for a political debate, and outside the purview of this blog. The way in which this article does relate to this blog is that perhaps bloggers should look to REALTORS when it comes to decisions of organization.
Bloggers and REALTORS have quite a bit in common. First and foremost, the individuals that make up each group are independent contractors. The vast majority of bloggers, even those that are paid for their blogging, are not employees of a corporation. They contract with people who pay them for posts, or they negotiate contracts for advertising on their blogs. This is similar to REALTORS, who contract independently with their clients. Another similarity the two groups share is their size. The National Association of REALTORS is one of the largest trade associations in America, with over 1 MILLION members. According to figures from the USA Today article, a legitimate blogging organization could easily be that big, if it were to gain even a reasonable popularity amongst bloggers.
As REALTORS can attest to, with a membership as large and diverse as the NAR, coming to any sort of consensus can be difficult, even at the local level. This is amongst people who share a common profession that has common practices. I shudder to think how difficult it would be to get bloggers on the same page when it came to certain issues.
While I don’t think formal unionization is the best thing for bloggers, the industry might derive benefit from some sort of professional organization similar to NAR. The most obvious benefit would be that it would legitimize, to some degree, the practice of blogging. This is an issue with which many bloggers are faced. A professional organization that could devise and enforce a set of professional standards might actually be a good thing.
The article also mentioned the idea of health insurance for bloggers. While this sounds like a great idea for me, I don’t think I would use the argument put forth by Susie Madrak, a blogger quoted in the article, and a proponent of unionization:
Madrak hopes that regardless the form, the labor movement ultimately will help bloggers pay for medical bills. It’s important, she said, because some bloggers can spend hours a day tethered to computers as they update their websites.
“Blogging is very intense — physically, mentally,” she said. “You’re constantly scanning for news. You’re constantly trying to come up with information that you think will mobilize your readers. In the meantime, you’re sitting at a computer and your ass is getting wider and your arm and neck and shoulder are wearing out because you’re constantly using a mouse.”
Isn’t this just a great quote? First of all, I don’t understand how an activity can be physically intense AND cause your butt to get bigger; maybe its just me. Look, I understand that blogging is time-consuming, but there is no reason it should be adversely affecting the blogger’s health. If it is, and the blogger isn’t getting paid or doing it professionally, then perhaps an analysis of priorities is in order. I doubt that insurance companies are going to line up to give good rates to people who claim health problems as a result of an activity that brings them no real income.
Joking aside, it will be interesting to see how this issue progresses. Sure, I guess that bloggers everywhere could unite and form their own union, but I just don’t like it. There is something about blogging that seems inherently opposed to such an idea. If, one day, a blogging union does manage to form, you can count me out. This zebra would much rather roam the open, free plains of the blogosphere.
[tags] blog, blogging, union, charlottesville, real estate, realtor [/tags]
Real Estate Ain’t So Local Anymore
August 6, 2007 | Leave a Comment
I will be posting the sales statistics for the Charlottesville area on Friday. As always, it should prove interesting, so be sure to check back for them.
The statistics got me to thinking about the real estate market, or more specifically, how the real estate market is talked about. There is an old saying that, “real estate and politics is local,” meaning that political issues and the real estate market are affected more by geographic location than anything else. We all know that this is true to some extent, and market data bears this fact out. The real estate market in Charlottesville is going to be different than the market in San Franciso, or Chicago, or even Richmond, for that matter.
While it is true that the real estate market is affected more by local conditions than any other factor, it appears to me that there are more and more external influences coming into play, the largest of which is media coverage of real estate. By media coverage, I am referring not only to news journalism, but also to popular media like cable TV shows such as “Flip That House” or “Property Ladder.” Because information is so easily and quickly accessible, thanks in no small part to the Internet, what once was only local can now be broadcast to an entire country.
The current real estate market is a perfect example of this. Media coverage of the national real estate market is all about falling prices, rising inventories, and loads of foreclosures. While this macro-view of the real estate market may be accurate, it doesn’t necessarily apply locally. In the Charlottesville area, we have seen rising inventories to be sure, but prices have remained relatively stable. And while foreclosures in the area may have increased (to be honest, I don’t know, as I haven’t seen any local stats for this), sub-prime lending certainly has not had the same effect here that it has had in say, California.
To some degree, however, none of this matters. Real estate consumers are being constantly bombarded with this information, and whether or not is applies directly to their local markets, it will affect the way in which they make decisions about buying and selling. If enough buyers hear and read stories about how sellers are having to take contracts for 10%-15% below their asking price, they are going to act accordingly. This will happen regardless of the fact that they sellers in the stories are in Los Angeles and they are buying a house in Charlottesville.
Our current information age has made the world a much smaller place. It has made us more connected than ever, and has the power to erase divisions and blur borders. Because of this, real estate markets are affected not only by the conditions in their local area, but also by the conditions in other markets, near and far.
[tags] real estate, realtor, charlottesville, virginia, media [/tags]
Real Estate is a Team Sport
August 2, 2007 | Leave a Comment
Most people probably never think about the fact that when they are watching a team sporting event, they are actually watching THREE teams participate. The first two are obvious– the opposing teams of athletes. The third team is a little less obvious. You guessed it– the officials.
When I am officiating a basketball game, I have to be very cognizant of all three teams all the time. I must be especially cognizant of my team, the people in stripes. In the same way that the best teams are usually the ones who end up champions, the best officiated games are handled by officiating crews who work well as a team.
The team concept is not something that is confined only to sports. Most people become aware of teamwork at a very early age, usually in school. The lesson of teamwork is usually introduced to young kids in school, regardless of whether or not they ever set foot on the field of athletic competition. This is a good thing, because teamwork is something that will continue to show up throughout school, and as one enters the work force. Just about every person I know who works in a corporate job has, at some point, had to work with others in a team environment.
The strange thing is that people tend to think that teamwork only applies in the most obvious situations, i.e., when a team is purposely formed for the purpose of achieving some specific goal. This is not always the case, however. One situation in which teamwork can do wonders is in the real estate transaction.
Think about this for a moment: you want to buy or sell your home. In order to do this, you enlist the help of a real estate agent (hopefully one who is a REALTOR). You and this person now have a common goal. Guess what? You have just formed a team!
Far too often, the relationship between a REALTOR and his client can be needlessly adversarial. The fact of the matter is that your REALTOR wants you to buy or sell a home just as much as you do. You may disagree occasionally on how best to achieve this goal, but the fact remains that the goal is shared. I can guarantee that your REALTOR is going to do whatever is within his power to help you achieve the goal. Because real estate requires a team effort, there are some basic rules that can be followed in order to lay the groundwork for a successful team effort.
First, and the most basic of teamwork rules– treat your teammates with respect, and in a way that you would expect to be treated. You can call it the “golden rule” or whatever you would like. The bottom line is that everyone on a team needs to have respect for everyone else, or the whole thing breaks down very quickly. Respect is given and shared in very simple ways– returning phone calls and emails, showing up on time, keeping a home ready for showings, making a home available for showings, etc. These may seem like small things, but they are very important signals of respect.
Second– hold your teammates accountable, and expect them to hold you accountable. If you say you are going to do something, you need to do it. If you don’t, you should expect your teammates to hold you accountable for it. If I were to tell a client that I am going to make a color brochure for their home, and then I show up with a standard MLS sheet, I can expect my client to be mad, and rightfully so. In the same respect, if one of my clients tells me that they are going to have trash removed from their yard, and then two weeks go by and the pile still sits, we are going to have a very serious discussion about their listing. I expect to be held accountable for my actions by my clients, but I also expect them to have accountability for theirs.
Third, and perhaps most importantly– you MUST trust your teammates. The thing that makes all teams great, athletic or otherwise, is that they have complete trust in each other. This concept is something that is paramount in sports officiating. If I don’t trust my partners to officiate in their areas and make the right calls, and this causes me to look over their shoulders, that means I will miss something in my area. We all need to trust each other in order for us to be able to work effectively and successfully. The same is true in real estate. You hire a REALTOR because, presumably, you trust their opinion and judgment as a professional. If this isn’t the case, then you should not have hired him.
People often hide things from their REALTOR because they are afraid of what he might think, or they are afraid of how it will affect their transaction. Your REALTOR is there to help you, and if you can’t trust him with important information, they you are handicapping yourselves. REALTORS are guilty of the same thing, by sometimes not giving clients all the information they should because they are afraid of a client’s reaction to bad news. In order for a team to have the greatest chance for success, trust must be 100% mutual. Anything less than this leaves room for error and failure.
Any real estate transaction will have a greater chance for success if participants use teamwork to achieve their goal. The three rules above are just the foundation for creating a successful real estate team. Like any team, you will experience adversity, small triumphs, and a few setbacks. If, however, you can always remember that you are part of a team, you can rely on your teammates for help and vastly increase your chance for success.
[tags] real estate, realtor, charlottesville, virginia, teamwork [/tags]
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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.
