Sellers are stepping up to the plate.  We homeowners know all about the laws of entropy–without continued effort, things can go downhill fast!  This highly competitive market is motivating sellers to get their homes in tip-top shape–clean, painted, repaired,  landscaped, upgraded and all the rest.  If you stop to think about it, this actually is a really good thing as it enhances the overall quality and appearance of our communities.  Go homeowners!

People are learning to negotiate.  When I spent some time in Kenya, East Africa, I haggled over every pound of potatoes I bought, and was expected to do so!  That generally  hasn’t been the case in our country.  But learning to work things out, persisting in order to come to a meeting of the minds over important issues is a valuable skill.  We’re getting that!

Buyers are becoming wiser.  With pressure from lenders who have added an array of requirements, and with the daily news of short sales and foreclosures, folks need to think twice before committing to purchasing a home.  Living within one’s means may actually be coming back into vogue!

Realtors are earning their commission.  Once upon a time an agent may have been able to  put a listing on the market  with a few basic photos and then simply wait for the calls.  Or show a buyer a handful of homes, along with the warning “you better buy it now before it’s gone!”.   How the times have changed!  It’s become much more of a challenge to get your listing noticed, to find your buyer the best deal, to negotiate an array of details with many different parties (other agents, lenders, inspectors, appraisers) all who are operating in a much more difficult environment.  This makes us better at what we do, and of greater value to you as your advocates in real estate transactions.

Customer service is improving.  Have you noticed how some businesses these days are working harder to earn your business?  Not everyone for sure, but many have taken the downturn  seriously and know they need to step up to the plate and work harder and smarter and focus more on the customer.  It can only be a good thing when a greater number of entrepreneurs  are going the extra mile to “get it right.”  Each of these five phenomena do seem to me to be a part of a growing positive trend!

Sold! Lovely wooded cul-de-sac location in beautiful Chesterfield County, Virginia!  Renovated kitchen and bath with gorgeous granite counter tops, recessed lighting, wet bar area.  New hardwood floors in kitchen and family room.  Spacious living areas and screened in porch overlooking private yard and woodland.  Meticulously maintained.  See for yourself:   complete photo album.    Call or email to find out more!

Beautiful townhome in the heart of Richmond’s West End!  Minutes to upscale shopping, restaurants of all varieties, schools, corporate headquarters, and highways in maintenance-free Raintree.  Sunken living room  with slate fireplace opens to private patio overlooking quiet wooded common area.  Three bedroom, 1.5 baths, open floor plan, sunny kitchen with eat in nook.  Take a look at the Heritage Hill property details and check out the photo tour of 1507 Heritage Hill Drive.  No longer on the market, but email me and I’d be glad to find you another home!

Suppose you find an otherwise ideal home but a big drawback is the dated kitchen.  It needs new cabinets, countertops, flooring and appliances.  You estimate the cost to be $30,000.  For this $200,000 home, you were going to borrow $190,000 at 5% on a 30 year loan.  The monthly payment would be about $1020/month.  But if you rolled the $30,000 for renovations and borrowed $220,000 at 5.75%, the monthly payment would be about $1283/month, or $263/month more.  On these loans the lender takes into account the increased value of the home due to the proposed renovations.  Not a bad way to make the new kitchen possible!

The alternative would be to finance it through a home improvement center, for example, at around 18% for 10 years (about $540/month) or a home equity line, for around 8.5% for 10 years (about $372/month).  Obviously there are different views on the best financing for each individual, but the 203(k) renovation route may not be a bad option.

Note for Investors:  Renovation loans for needed property improvements are also available to investors considering purchasing rental properties.

At a time when 81% of the homes available for sale are more than 15 years old, it isn’t surprising that home improvements are needed!  HUD provides more 203(k) information if you’d like to read more about whether these loans could work for you.

Appraisal — When you are in the process of purchasing a home, and you have applied for a mortgage loan, the bank will send out an appraiser to evaluate carefully the home, usually inside and out, to determine its value.  The lender/bank wants to know this so they can determine things like how much they are willing to loan you, how much of a down payment they will require, etc.  So the appraisal is the valuation of a home by a licensed professional appraiser for the purpose of determining the details of that loan that will (or won’t!) be made available for that particular property.

Assessment — The assessment also has to do with determining a home’s value.  But it is done by a different person for a different purpose.  When you own a home, a significant expense you will incur is the local taxes on your property.  You will usually pay these taxes either directly to the city/county in installments, or you will pay them monthly as a part of the monthly payment you make on your home.  (The monthly payment you make usually has four parts:  principal, interest, taxes and insurance.)  The city/county will send out an assessor who will determine the value of your home for the purpose of determining your taxes, which is to say that your taxes will be a percentage of your “assessed value.”

When it comes to buying, selling or owning a home, appraisals and assesments are always important, but they can become even more significant when the real estate market is down.  For example, say you wrote an offer to purchase a home and then applied for a loan for that home.  If the appraisal comes in at a lower figure than the price you offered, that will reduce the amount the bank would be willing to loan for the property.  Which could complicate the buying of that property!  So it’s actually an issue about which both buyers and sellers need to be aware.

When it comes to the assessment, say the market value of your home has decreased, for example, 20% over the past couple years.  But your assessment has remained the same.  This may cause you to wonder if you might be paying too much in taxes.  This is why homeowners sometimes “appeal” their assessments.  (Then again, when the day comes that these homeowners decide to sell their homes, they might then wish for that higher assessment!)

Appraisal vs assessment?  Now you know the difference!

Nervous–”I’m interested in buying a home, but what if I don’t get the best deal?”

Confident–”I could own my own home for what I’m paying in rent!”

Uncertain–”Interest rates seem good, but can I even qualify?”

Excited– “I’ve been thinking about this for some time and it really would be awesome.  Maybe the time has come!”

Yep, it can be all those things at the same time, plus more!  And even though it may be confusing, it really is a great time to buy a home.  Interest rates are truly low right now (in the range of what they were in the late 1950’s), the choice of available homes is still good as are prices, and the first time buyer tax credit of $8000 for qualified buyers (see details) is still in place (but not for much longer, currently ends November 30th).  If you or someone you know is considering purchasing your first home and would like to know about what would be involved, send me an email or give me a call.  I’d be glad to help in any way that I can.  These truly are days of great opportunity!

Sold! 6 Alexis Drive, Henrico, Virginia!  This gracious and stately colonial sits on a one acre lot landscaped with an abundance of azaleas, hydrangeas, crepe myrtle, perennials, bulbs and blooming trees.  Hardwood floors throughout, a gazebo style screened porch and a powered workshop outbuilding also enhance this country retreat in Henrico County.  Take a look at the complete photo album of this home–a taste of Williamsburg here in Richmond!  This home sold for higher than the list price in 16 days! If you’d like more information about my marketing or anything relating to home buying or selling, email me or call 804-426-6563.  Sold in 16 days!

Sold! Charming, tastefully-decorated home with finished walk-out basement and sizable fenced back yard.  Classic colonial look with updated open floor plan.  You will enjoy viewing the complete photo album of this home.  Convenient location, lovely neighborhood, great schools, and happy new owners!  Call me on my mobile, 804-426-6563.  I’d be glad to help you find the right home or start researching and planning to help you sell yours!

Sold! Quiet wooded cul-de-sac half acre, 2000+ square feet, 2-car garage (storage above), screened-in porch, deck–a beautiful home, super neighborhood, and a great value!  Check out the complete photo album of the home and property.  Although this property is no longer for sale, I would be glad to help you find a home that will work for YOU!  Call me at 804-426-6563 or email me if I can answer any questions and/or help you in your home search.