First Ever Video Walkthrough Tour by The Avery Group

The first video walkthrough tour by The Avery Group. This is a home we have listed in Gordonsville, VA. 19408 Lovers Lane.



I have some work to do to get this all perfected, but it is coming along and before you know it, video walkthrough tours will be a permanent part of Avery Group listings!

First Ever Video Walkthrough Tour by The Avery Group

The first video walkthrough tour by The Avery Group. This is a home we have listed in Gordonsville, VA. 19408 Lovers Lane.



I have some work to do to get this all perfected, but it is coming along and before you know it, video walkthrough tours will be a permanent part of Avery Group listings!

Avery Group to Start Video Tours of Homes!

With the addition of a Sony Full HD 1920x1080i Handycam to the Avery Group, we will start doing video walkthroughs of homes. This should be a serious step up from the old fashioned Virtual Tours. Especially since Virtual Tours are, more often than not, glorified slideshows. This should give more information and more detail of a home than still pictures stitched together. This will be a huge step forward for the technology that is already incorporated in the Real Estate Practices of the Avery Group. The first tour should be ready by the end of this week and we will be walking through 19408 Lovers Lane. I will keep you posted...

Avery Group to Start Video Tours of Homes!

With the addition of a Sony Full HD 1920x1080i Handycam to the Avery Group, we will start doing video walkthroughs of homes. This should be a serious step up from the old fashioned Virtual Tours. Especially since Virtual Tours are, more often than not, glorified slideshows. This should give more information and more detail of a home than still pictures stitched together. This will be a huge step forward for the technology that is already incorporated in the Real Estate Practices of the Avery Group. The first tour should be ready by the end of this week and we will be walking through 19408 Lovers Lane. I will keep you posted...

The Real Estate Mexican Standoff

Here is a quote from the First Quarter Market Report written by Dave Phillips CEO of the Charlottesville Association of Realtors.

"Simply put, there are too many homes on the market right now. This surplus of inventory should keep prices low as sellers are forced to offer “good deals” in a very competitive marketplace. There is a direct, inverse relationship between inventory and prices. The more homes we have on the market, the more pressure there is on sellers to keep prices down. For this reason, we do not expect home prices in the area to increase in the near future.

Currently, we have 3,673 homes on the market, compared to 3,100 at this time last year. The median price of these homes for sale is $319,000. The average DOM (days on market) of these homes is 147 days. It is a great time for first-time buyers, because there are 663 homes for sale under $200,000 with an average DOM of 130. There are 576 homes currently on the market priced at a million dollars or more, with an average DOM of 200."

This is a very accurate statement about the status of our market. It's almost as if buyers and sellers are in an old fashioned Mexican Standoff. Buyers continue to wait for prices to come down, while sellers are resisting the trend. I do have to take this opportunity to say THIS IS A GOOD TIME TO BUY REAL ESTATE.

Play the game, there are a number of people out there trying to move their money out of Real Estate and just want anything they can get. Make an offer, if they reject, move to the next one. In the words of NIKE, Just Do It. You can find really good deals in a market such as this.

Read the entire 1st Quarter Market Report

The Real Estate Mexican Standoff

Here is a quote from the First Quarter Market Report written by Dave Phillips CEO of the Charlottesville Association of Realtors.

"Simply put, there are too many homes on the market right now. This surplus of inventory should keep prices low as sellers are forced to offer “good deals” in a very competitive marketplace. There is a direct, inverse relationship between inventory and prices. The more homes we have on the market, the more pressure there is on sellers to keep prices down. For this reason, we do not expect home prices in the area to increase in the near future.

Currently, we have 3,673 homes on the market, compared to 3,100 at this time last year. The median price of these homes for sale is $319,000. The average DOM (days on market) of these homes is 147 days. It is a great time for first-time buyers, because there are 663 homes for sale under $200,000 with an average DOM of 130. There are 576 homes currently on the market priced at a million dollars or more, with an average DOM of 200."

This is a very accurate statement about the status of our market. It's almost as if buyers and sellers are in an old fashioned Mexican Standoff. Buyers continue to wait for prices to come down, while sellers are resisting the trend. I do have to take this opportunity to say THIS IS A GOOD TIME TO BUY REAL ESTATE.

Play the game, there are a number of people out there trying to move their money out of Real Estate and just want anything they can get. Make an offer, if they reject, move to the next one. In the words of NIKE, Just Do It. You can find really good deals in a market such as this.

Read the entire 1st Quarter Market Report

Huge Changes May be Coming for Lenders and Appraisers

This article is relevant information to the Charlottesville Area and Real Estate in general. There have been quite a few past clients where appraisals came in higher than expected and we had conversations about this exact scenario.

Bloomberg News reported on Wednesday that Fannie Mae is proposing to ban the use of appraisals by a lender's employees or those arranged by mortgage brokers.

The proposal was contained in what Bloomberg referred to as a "talking points" memo distributed to lenders this week and was in response to an investigation of the mortgage industry by New York Attorney General Andrew Cuomo. In November the AG filed suit against First American, parent company of one of the country's largest appraisal management companies, charging them with folding under pressure from Washington Mutual, a major client, to use only those appraisers that provided property values acceptable to WaMu.

WaMu was not included in the original suit but Cuomo demanded that Freddie Mac and Fannie Mae each appoint an Independent Examiner to review mortgages and the underlying appraisals that the two GSEs have purchased with particular emphasis on those purchased from WaMu.According to the Bloomberg article, the memo was part of an on-going effort by Fannie Mae to cooperate in the Cuomo probe.

The proposed change would mean that Fannie Mae would no longer authorize its lending partners to use appraisers employed by a wholly owned subsidiary and, while we have not seen the memo, apparently it contains reference to the eventual establishment of an appraisal clearinghouse which we assume would assign appraisers to a project.

Bloomberg quotes Jonathan Miller of a New York appraisal company Miller Samuel, Inc. as saying that about three quarters of residential mortgage appraisals are arranged through brokers who only get paid if a loan closes. Miller called the practice "laughable" because it creates a financial incentive for mortgage brokers to push appraisers toward higher valuations. Higher appraisals also mean more homeowners qualify to refinance their homes and take cash out, he said.

The appraisers themselves have long urged that appraisers be required to keep arms-length from the lenders. Many complain that honest appraisers who refuse to match the values that the lenders want soon find them selves without work and that they are frequently pressured by the loan officers who assigned them to a project to raise their values.

The proposed restrictions would apply to loans acquired after Sept. 1, according to the memo.

Huge Changes May be Coming for Lenders and Appraisers

This article is relevant information to the Charlottesville Area and Real Estate in general. There have been quite a few past clients where appraisals came in higher than expected and we had conversations about this exact scenario.

Bloomberg News reported on Wednesday that Fannie Mae is proposing to ban the use of appraisals by a lender's employees or those arranged by mortgage brokers.

The proposal was contained in what Bloomberg referred to as a "talking points" memo distributed to lenders this week and was in response to an investigation of the mortgage industry by New York Attorney General Andrew Cuomo. In November the AG filed suit against First American, parent company of one of the country's largest appraisal management companies, charging them with folding under pressure from Washington Mutual, a major client, to use only those appraisers that provided property values acceptable to WaMu.

WaMu was not included in the original suit but Cuomo demanded that Freddie Mac and Fannie Mae each appoint an Independent Examiner to review mortgages and the underlying appraisals that the two GSEs have purchased with particular emphasis on those purchased from WaMu.According to the Bloomberg article, the memo was part of an on-going effort by Fannie Mae to cooperate in the Cuomo probe.

The proposed change would mean that Fannie Mae would no longer authorize its lending partners to use appraisers employed by a wholly owned subsidiary and, while we have not seen the memo, apparently it contains reference to the eventual establishment of an appraisal clearinghouse which we assume would assign appraisers to a project.

Bloomberg quotes Jonathan Miller of a New York appraisal company Miller Samuel, Inc. as saying that about three quarters of residential mortgage appraisals are arranged through brokers who only get paid if a loan closes. Miller called the practice "laughable" because it creates a financial incentive for mortgage brokers to push appraisers toward higher valuations. Higher appraisals also mean more homeowners qualify to refinance their homes and take cash out, he said.

The appraisers themselves have long urged that appraisers be required to keep arms-length from the lenders. Many complain that honest appraisers who refuse to match the values that the lenders want soon find them selves without work and that they are frequently pressured by the loan officers who assigned them to a project to raise their values.

The proposed restrictions would apply to loans acquired after Sept. 1, according to the memo.

NAR Price Survey Shows House Prices Continuing To Increase In Many Areas

The National Association of Realtors® (NAR) has insisted for years, and insisted adamantly since the "bubble" started to burst, that real estate, like politics, is local. The quarterly survey of home prices that NAR released on Thursday proves this point and also indicates that, while the housing market is grim in some parts of the country it is doing quite well in others.

The survey which covers the fourth quarter of 2007 showed that 73 of the 150 metropolitan areas in the survey continued to show rising median prices for existing single-family homes.

11 areas actually showed double-digit annual gains and another 12 had increases of 6 percent or more. 77 Areas had price declines and 16 of those lost values in the double digits.

Still, in spite of the fact that the market is holding up well in much of the country, median prices for the country as a whole and for each of the four regions were down from the fourth quarter of 2006. The median price for the country declined 5.8 percent from $219,000 to $206,200. The West, which also had the highest prices in the country, took the biggest hit. The median price in that region in the fourth quarter of 2006 was $355,000 but had declined 8.7 percent to $324,100 in the latest report. The Midwest, which has the lowest median price fared the best, losing only 3.2 percent to a fourth quarter price of $156,300.

The largest single-family price increase was in the Cumberland area of Maryland and West Virginia. Prices there rose 19.0 percent from a year ago to a median of $116,500. Other big winners were Yakima, Washington (18.0 percent to a median of $170,600) and Binghamton, New York where prices increased 14.8 percent to a median of $110,000.

Big losers were Lansing/East Lansing Michigan where median prices dropped 18.8 percent to $109,600; the Sacramento California MSA which lost 18.5 percent in value to $297,600; and Jackson Mississippi and Riverside/San Bernardino California each at -16.8 percent to median prices of $120,900 and $338,000 respectively.

Lawrence Yun, NAR chief economist, said disruptions in the mortgage market have played a role. "The continuing crunch in the jumbo loan market that began in August has disproportionately reduced the number of transactions in higher price ranges. For buyers who need loans of more than $417,000, mortgage interest rates have been running more than a percentage point higher, and that has been having an obvious impact. Higher ratios of sales for more moderately priced homes are naturally dampening the national median price as well as the data for some of the more expensive markets."

NAR President Richard Gaylord said he is encouraged by the raising of Freddie Mac, Fannie Mae, and FHA conventional loan limits. "Higher limits for FHA loans, which go into effect March 14, will be a big help to first-time buyers in high-cost markets. Higher limits for conventional loans purchased by Freddie Mac and Fannie Mae will take a bit longer - when they become available, high-income, creditworthy borrowers in high-cost areas will have access to affordable and safer financing, and that will help unleash pent-up demand."

The NAR report also covered condominium and cooperative prices in 59 metropolitan areas. The national median price for existing condos was $221,100 in the fourth quarter, only $100 less than in the fourth quarter of 2006. Thirty-three areas showed year-over-year increases (four of these had double-digit gains) while 26 areas saw prices decline, four of those by double-digits.

Total state existing-home sales, including single-family and condo, were at a seasonally adjusted annual rate(2) of 4.96 million units in the fourth quarter, down 8.5 percent from 5.42 million in the third quarter, and are 20.9 percent below a 6.26 million-unit pace in the fourth quarter of 2006.
NAR began tracking of metropolitan area median single-family home prices in 1979; the metro area condo price series was launched at the beginning of 2006, with several years of historic data.

Homes For Sale

NAR Price Survey Shows House Prices Continuing To Increase In Many Areas

The National Association of Realtors® (NAR) has insisted for years, and insisted adamantly since the "bubble" started to burst, that real estate, like politics, is local. The quarterly survey of home prices that NAR released on Thursday proves this point and also indicates that, while the housing market is grim in some parts of the country it is doing quite well in others.

The survey which covers the fourth quarter of 2007 showed that 73 of the 150 metropolitan areas in the survey continued to show rising median prices for existing single-family homes.

11 areas actually showed double-digit annual gains and another 12 had increases of 6 percent or more. 77 Areas had price declines and 16 of those lost values in the double digits.

Still, in spite of the fact that the market is holding up well in much of the country, median prices for the country as a whole and for each of the four regions were down from the fourth quarter of 2006. The median price for the country declined 5.8 percent from $219,000 to $206,200. The West, which also had the highest prices in the country, took the biggest hit. The median price in that region in the fourth quarter of 2006 was $355,000 but had declined 8.7 percent to $324,100 in the latest report. The Midwest, which has the lowest median price fared the best, losing only 3.2 percent to a fourth quarter price of $156,300.

The largest single-family price increase was in the Cumberland area of Maryland and West Virginia. Prices there rose 19.0 percent from a year ago to a median of $116,500. Other big winners were Yakima, Washington (18.0 percent to a median of $170,600) and Binghamton, New York where prices increased 14.8 percent to a median of $110,000.

Big losers were Lansing/East Lansing Michigan where median prices dropped 18.8 percent to $109,600; the Sacramento California MSA which lost 18.5 percent in value to $297,600; and Jackson Mississippi and Riverside/San Bernardino California each at -16.8 percent to median prices of $120,900 and $338,000 respectively.

Lawrence Yun, NAR chief economist, said disruptions in the mortgage market have played a role. "The continuing crunch in the jumbo loan market that began in August has disproportionately reduced the number of transactions in higher price ranges. For buyers who need loans of more than $417,000, mortgage interest rates have been running more than a percentage point higher, and that has been having an obvious impact. Higher ratios of sales for more moderately priced homes are naturally dampening the national median price as well as the data for some of the more expensive markets."

NAR President Richard Gaylord said he is encouraged by the raising of Freddie Mac, Fannie Mae, and FHA conventional loan limits. "Higher limits for FHA loans, which go into effect March 14, will be a big help to first-time buyers in high-cost markets. Higher limits for conventional loans purchased by Freddie Mac and Fannie Mae will take a bit longer - when they become available, high-income, creditworthy borrowers in high-cost areas will have access to affordable and safer financing, and that will help unleash pent-up demand."

The NAR report also covered condominium and cooperative prices in 59 metropolitan areas. The national median price for existing condos was $221,100 in the fourth quarter, only $100 less than in the fourth quarter of 2006. Thirty-three areas showed year-over-year increases (four of these had double-digit gains) while 26 areas saw prices decline, four of those by double-digits.

Total state existing-home sales, including single-family and condo, were at a seasonally adjusted annual rate(2) of 4.96 million units in the fourth quarter, down 8.5 percent from 5.42 million in the third quarter, and are 20.9 percent below a 6.26 million-unit pace in the fourth quarter of 2006.
NAR began tracking of metropolitan area median single-family home prices in 1979; the metro area condo price series was launched at the beginning of 2006, with several years of historic data.

Homes For Sale

The Big Bad Market

Ok, It’s Time to Come Out Now

If you don't have a TV, a radio, or a newspaper, you may have missed all of the negative press surrounding the mortgage and housing markets. The severity of the situation has created a mild panic that has paralyzed the consumer. If you are waiting for a "bottom" to the overall crisis, and for all the news to turn positive, don't hold your breath. Typically, where tragedy occurs, opportunity arises. Let me show you why it is "OK to come out now," and why you might be sorry if you wait too long.

Mortgage Meltdown?

The news might have you thinking that no one can get a loan these days. This is far from true. Hindsight has given us a clear picture of the kind of loans that shouldn't be offered again. The loans that have performed more consistently are still abundantly available, and you might be surprised that you can qualify.

Banks like to see strength in at least 2 of the 4 areas:
Credit Score
Sufficient verifiable income for the payment amount
Equity in the property or down payment
Liquid assets (money in the bank, stock market, IRA's, 401k's, etc...)

The items that will make your loan more difficult to obtain:
Non-Owner Occupied (investment property)
Stated or No Income (meaning you can't prove it with W2's or Tax Returns)

Bottom Line: If you can legitimately afford to make a regular house payment, there's a very high chance that this can be proven to a lender, who will in turn be happy to give you an excellent loan.

To make things better, interest rates are historically low. At the very lowest point in mortgage rate history, a 30 year fixed conforming loan danced around the 5.0% range. In the last several weeks, it has dropped to 5.625%. There is even further impetus to act on this information. Even if prices decline another 10% due to the market panic, there are sellers out there right now selling for 20% under current appraised value. So you might find a house for $160,000 today that will end up being worth $180,000 when the market bottoms out - a paradox, but true. This also means that your value is likely to be at it's highest as far as refinancing. Remember that EQUITY is one of the positive factors banks consider.

If you think you might be in your current home for more than a few years, have an adjustable rate mortgage, or have an interest rate that's over 6% - or - if you are a potential home-buyer, it is OK to come out now. Doing so could save you lots of money.

The Pendulum Effect

National average home prices are down significantly. This trend will continue, but consider three things. First, the hardest-hit markets drag down the average depreciation. Second, mid to high priced homes were more inflated than entry level housing. When those homes depreciate, they have farther to fall than a lower priced home. This also brings down the national home price average. Finally, panic can create a knee-jerk reaction among sellers, and market perception can create hesitancy among buyers.

What does this all mean? It's a GREAT time to shop for a moderately priced home. When the market has found a solid bottom and the demand returns, there will be a lot less ambiguity about what a home in your area is really worth. Sellers will be less willing to entertain offers, and selection will decrease.

Recession and Expansion

There are times when the economy is brisk and everyone feels confident about his or her prospects for the future. As a result, they spend more money, eat out more often, and buy more new cars and houses.

Then, for one reason or another, the economy slows down. Companies lay off employees and consumers are more careful about where they spend money, perhaps saving more than usual. As a result, the economy decelerates even further. If it slows enough, we have a recession. During such a time, fewer people are buying homes. Even so, some homeowners find themselves in a situation where they must sell. Families grow beyond the capacity of the home, employees get relocated, and some may even find themselves unable to make their mortgage payment - perhaps because of a layoff in the family.

In the business cycle of real estate, there are buyers' markets and sellers' markets...and some markets in between. It is all based on supply and/or demand.

Supply and Demand - Inventory

During a seller’s market, homes sell quickly and sellers have a lot of pricing power. As a result, prices rise more rapidly than at other times. During a buyer’s market, homes may sit on the market for a while before selling; consequently, sellers become more flexible and may even drop their prices.
The market is determined by supply and demand.

In real estate, the relationship between supply and demand is calculated as "available inventory." At the current sales pace, how long would it take to sell the total number of houses available on the market? That is how the real estate industry measures inventory.

Inventory is measured in weeks and months. Longer inventory times are associated with buyers' markets. Shorter inventory periods are associated with sellers' markets. Some buyers and sellers hope to time their transactions to take advantage of market cycles.

Timing Your Purchase to the Market Cycle

The real estate market does not necessarily move in tandem with the stock market or the economy as a whole. When the economy is doing well, interest rates are generally higher. The result is that fewer people can afford houses. When the economy slows down, interest rates fall. The "affordability index" moves up and more people can afford houses.

As you can see, this cycle does not move "in sync" with the rest of the economy. One problem with attempting to time your purchase to the business cycle is that even experts have problems accurately predicting the future economy. It is also strongly influenced by employment, salary, and consumer outlook for the future. If you could "time the market," that strategy would most benefit first-time buyers. All these factors make it difficult to know, in advance, whether the housing market is going to boom or bust.

Why You Should Not Wait to Purchase a Home

People who already own a home usually need to sell it in order to come up with the down payment for their next home. Even if they don't, they would have to carry the debt and obligations on two homes at the same time. This can create financial hardship, even when you rent out the previous home. There are maintenance costs, renters don't always make their payments on time, the rent may not cover the mortgage and other costs, and sometimes the property may be vacant.

If you are a move-up buyer and want to purchase your next home during a depressed market, you generally have to sell your current home during that same depressed market. If you want to sell during a boom, then you also have to purchase during the same boom - It tends to equal out.

Finally, suppose you are a first-time buyer and wait until the beginning of a boom is near. If you guess wrong, are you going to wait...and wait...and wait...till the next depressed market? If so, you could miss out on loads of depreciation...and that is assuming you guessed right about your market timing? For instance, in 1996 when the home market was struggling, who would have predicted what the next seven years actually produced?

Rob Alley
REALTOR® - Roy Wheeler Realty Co.
President - Virginia Tech Alumni Association - Charlottesville Chapter
Boy Scouts of America - District Advancement Chairman - Monticello District
434-220-7630 (office)
http://www.robsellscharlottesville.com/

The Big Bad Market

Ok, It’s Time to Come Out Now

If you don't have a TV, a radio, or a newspaper, you may have missed all of the negative press surrounding the mortgage and housing markets. The severity of the situation has created a mild panic that has paralyzed the consumer. If you are waiting for a "bottom" to the overall crisis, and for all the news to turn positive, don't hold your breath. Typically, where tragedy occurs, opportunity arises. Let me show you why it is "OK to come out now," and why you might be sorry if you wait too long.

Mortgage Meltdown?

The news might have you thinking that no one can get a loan these days. This is far from true. Hindsight has given us a clear picture of the kind of loans that shouldn't be offered again. The loans that have performed more consistently are still abundantly available, and you might be surprised that you can qualify.

Banks like to see strength in at least 2 of the 4 areas:
Credit Score
Sufficient verifiable income for the payment amount
Equity in the property or down payment
Liquid assets (money in the bank, stock market, IRA's, 401k's, etc...)

The items that will make your loan more difficult to obtain:
Non-Owner Occupied (investment property)
Stated or No Income (meaning you can't prove it with W2's or Tax Returns)

Bottom Line: If you can legitimately afford to make a regular house payment, there's a very high chance that this can be proven to a lender, who will in turn be happy to give you an excellent loan.

To make things better, interest rates are historically low. At the very lowest point in mortgage rate history, a 30 year fixed conforming loan danced around the 5.0% range. In the last several weeks, it has dropped to 5.625%. There is even further impetus to act on this information. Even if prices decline another 10% due to the market panic, there are sellers out there right now selling for 20% under current appraised value. So you might find a house for $160,000 today that will end up being worth $180,000 when the market bottoms out - a paradox, but true. This also means that your value is likely to be at it's highest as far as refinancing. Remember that EQUITY is one of the positive factors banks consider.

If you think you might be in your current home for more than a few years, have an adjustable rate mortgage, or have an interest rate that's over 6% - or - if you are a potential home-buyer, it is OK to come out now. Doing so could save you lots of money.

The Pendulum Effect

National average home prices are down significantly. This trend will continue, but consider three things. First, the hardest-hit markets drag down the average depreciation. Second, mid to high priced homes were more inflated than entry level housing. When those homes depreciate, they have farther to fall than a lower priced home. This also brings down the national home price average. Finally, panic can create a knee-jerk reaction among sellers, and market perception can create hesitancy among buyers.

What does this all mean? It's a GREAT time to shop for a moderately priced home. When the market has found a solid bottom and the demand returns, there will be a lot less ambiguity about what a home in your area is really worth. Sellers will be less willing to entertain offers, and selection will decrease.

Recession and Expansion

There are times when the economy is brisk and everyone feels confident about his or her prospects for the future. As a result, they spend more money, eat out more often, and buy more new cars and houses.

Then, for one reason or another, the economy slows down. Companies lay off employees and consumers are more careful about where they spend money, perhaps saving more than usual. As a result, the economy decelerates even further. If it slows enough, we have a recession. During such a time, fewer people are buying homes. Even so, some homeowners find themselves in a situation where they must sell. Families grow beyond the capacity of the home, employees get relocated, and some may even find themselves unable to make their mortgage payment - perhaps because of a layoff in the family.

In the business cycle of real estate, there are buyers' markets and sellers' markets...and some markets in between. It is all based on supply and/or demand.

Supply and Demand - Inventory

During a seller’s market, homes sell quickly and sellers have a lot of pricing power. As a result, prices rise more rapidly than at other times. During a buyer’s market, homes may sit on the market for a while before selling; consequently, sellers become more flexible and may even drop their prices.
The market is determined by supply and demand.

In real estate, the relationship between supply and demand is calculated as "available inventory." At the current sales pace, how long would it take to sell the total number of houses available on the market? That is how the real estate industry measures inventory.

Inventory is measured in weeks and months. Longer inventory times are associated with buyers' markets. Shorter inventory periods are associated with sellers' markets. Some buyers and sellers hope to time their transactions to take advantage of market cycles.

Timing Your Purchase to the Market Cycle

The real estate market does not necessarily move in tandem with the stock market or the economy as a whole. When the economy is doing well, interest rates are generally higher. The result is that fewer people can afford houses. When the economy slows down, interest rates fall. The "affordability index" moves up and more people can afford houses.

As you can see, this cycle does not move "in sync" with the rest of the economy. One problem with attempting to time your purchase to the business cycle is that even experts have problems accurately predicting the future economy. It is also strongly influenced by employment, salary, and consumer outlook for the future. If you could "time the market," that strategy would most benefit first-time buyers. All these factors make it difficult to know, in advance, whether the housing market is going to boom or bust.

Why You Should Not Wait to Purchase a Home

People who already own a home usually need to sell it in order to come up with the down payment for their next home. Even if they don't, they would have to carry the debt and obligations on two homes at the same time. This can create financial hardship, even when you rent out the previous home. There are maintenance costs, renters don't always make their payments on time, the rent may not cover the mortgage and other costs, and sometimes the property may be vacant.

If you are a move-up buyer and want to purchase your next home during a depressed market, you generally have to sell your current home during that same depressed market. If you want to sell during a boom, then you also have to purchase during the same boom - It tends to equal out.

Finally, suppose you are a first-time buyer and wait until the beginning of a boom is near. If you guess wrong, are you going to wait...and wait...and wait...till the next depressed market? If so, you could miss out on loads of depreciation...and that is assuming you guessed right about your market timing? For instance, in 1996 when the home market was struggling, who would have predicted what the next seven years actually produced?

Rob Alley
REALTOR® - Roy Wheeler Realty Co.
President - Virginia Tech Alumni Association - Charlottesville Chapter
Boy Scouts of America - District Advancement Chairman - Monticello District
434-220-7630 (office)
http://www.robsellscharlottesville.com/

Charlottesville Real Estate: The Numbers That Really Matter

The most important factor in buying or selling a home isn't what is going on nationally - it is what is going on in your local market.

Whatever the national trends are with regard to real estate - whether they are booming or busting - what really matters is what the market conditions are in your region, town, or neighborhood. What does that mean? Even during the real estate boom of 2001-2005, a great many cities and regions did not participate in the boom - they lagged behind, or even decreased in value. Similarly, when prices began to fall nationally, there were plenty of regions and locales where prices increased, and sales boomed.

Evaluating present and future trends and influences in your region or neighborhood is essential to creating long term wealth, whether you are in a buyer's or a seller's market. Detailed information at the local level is what is most useful for home buyers, sellers, owners and window shoppers. The trend data at the metro area level, or the nation, is great water cooler talk, but not that relevant when you’re making decisions about your most important asset.
That being said, let’s look at how our local area did for November and what we should expect for the months leading into the Spring Market.

City of Charlottesville

There were 169 homes that had some type of sales activity in the city. There were 137 homes that went under contract and 33 homes that sold for an average price of $292,218 with an average DOM of 75 days. There are currently 364 active properties in the city.

Albemarle County

There were 243 homes that had some type of sales activity in the county. There were 190 homes that went under contract and 53 homes that sold for an average price of $385,383 with an average DOM of 90 days. There are currently 916 active properties in the county.

Fluvanna County

There were 56 homes that had some type of sales activity in the county. There were 37 homes that went under contract and 19 homes that sold for an average price of $275,373 with an average DOM of 93 days. There are currently 325 active properties in the county.

Greene County

There were 44 homes that had some type of sales activity in the county. There were 30 homes that went under contract and 14 homes that sold for an average price of $287,432 with an average DOM of 92 days. There are currently 199 active properties in the county.

Mortgage Industry

Long-term mortgage interest rates fell for the fifth night Friday. The 30-year fixed-rate average sank to 5.69 percent, and the 15-year fixed rate dipped to 5.27 percent. The 1-year adjustable slipped to 5.47 percent. We are currently seeing the lowest 30-year fixed interest rate in over two years. Mortgage rate figures are according to Bankrate.com, which publishes nightly averages based on its survey of 4,000 banks in 50 states.

Conclusion

All buyers, especially first time homebuyers, with the combined benefits of seller flexibility and an unexpected drop in mortgage interest rates, have a window of opportunity. These conditions will persist in many areas until early spring when inventory supplies are likely to become more balanced. Several factors converge to make the winter months a great time to buy real estate. One primary factor is the low mortgage interest rates being offered, which are hovering around 5.69 percent.

If you are conservative, and have been thinking about refinancing your home loan or buying a property - now is the time to act. Interest rates are historically low - and homes are an abundance of homes available - but it won't stay that way forever. You will want to contact your lender (or ask your Realtor for their preferred lender) and lock your rates. You can’t lock them forever, so you will have to be ready, and able to purchase a house or refinance.

If you are a risk taker, you may want to wait a little longer to see if you can get lucky enough to get a better rate, but you are going to have to pay close attention and be willing to pull the trigger quickly.

For more information on our Local Real Estate Market, there will be Home Buying Seminars on December 6th and 13th. Please RSVP to these events and learn more about your most important investment.

Rob AlleyRealtorRoy Wheeler Realty Co.President - Virginia Tech Alumni Association - Charlottesville ChapterBoy Scouts of America - District Advancement Chairman - Monticello District434-220-7630 (office)http://www.robsellscharlottesville.com/

Charlottesville Real Estate: The Numbers That Really Matter

The most important factor in buying or selling a home isn't what is going on nationally - it is what is going on in your local market.

Whatever the national trends are with regard to real estate - whether they are booming or busting - what really matters is what the market conditions are in your region, town, or neighborhood. What does that mean? Even during the real estate boom of 2001-2005, a great many cities and regions did not participate in the boom - they lagged behind, or even decreased in value. Similarly, when prices began to fall nationally, there were plenty of regions and locales where prices increased, and sales boomed.

Evaluating present and future trends and influences in your region or neighborhood is essential to creating long term wealth, whether you are in a buyer's or a seller's market. Detailed information at the local level is what is most useful for home buyers, sellers, owners and window shoppers. The trend data at the metro area level, or the nation, is great water cooler talk, but not that relevant when you’re making decisions about your most important asset.
That being said, let’s look at how our local area did for November and what we should expect for the months leading into the Spring Market.

City of Charlottesville

There were 169 homes that had some type of sales activity in the city. There were 137 homes that went under contract and 33 homes that sold for an average price of $292,218 with an average DOM of 75 days. There are currently 364 active properties in the city.

Albemarle County

There were 243 homes that had some type of sales activity in the county. There were 190 homes that went under contract and 53 homes that sold for an average price of $385,383 with an average DOM of 90 days. There are currently 916 active properties in the county.

Fluvanna County

There were 56 homes that had some type of sales activity in the county. There were 37 homes that went under contract and 19 homes that sold for an average price of $275,373 with an average DOM of 93 days. There are currently 325 active properties in the county.

Greene County

There were 44 homes that had some type of sales activity in the county. There were 30 homes that went under contract and 14 homes that sold for an average price of $287,432 with an average DOM of 92 days. There are currently 199 active properties in the county.

Mortgage Industry

Long-term mortgage interest rates fell for the fifth night Friday. The 30-year fixed-rate average sank to 5.69 percent, and the 15-year fixed rate dipped to 5.27 percent. The 1-year adjustable slipped to 5.47 percent. We are currently seeing the lowest 30-year fixed interest rate in over two years. Mortgage rate figures are according to Bankrate.com, which publishes nightly averages based on its survey of 4,000 banks in 50 states.

Conclusion

All buyers, especially first time homebuyers, with the combined benefits of seller flexibility and an unexpected drop in mortgage interest rates, have a window of opportunity. These conditions will persist in many areas until early spring when inventory supplies are likely to become more balanced. Several factors converge to make the winter months a great time to buy real estate. One primary factor is the low mortgage interest rates being offered, which are hovering around 5.69 percent.

If you are conservative, and have been thinking about refinancing your home loan or buying a property - now is the time to act. Interest rates are historically low - and homes are an abundance of homes available - but it won't stay that way forever. You will want to contact your lender (or ask your Realtor for their preferred lender) and lock your rates. You can’t lock them forever, so you will have to be ready, and able to purchase a house or refinance.

If you are a risk taker, you may want to wait a little longer to see if you can get lucky enough to get a better rate, but you are going to have to pay close attention and be willing to pull the trigger quickly.

For more information on our Local Real Estate Market, there will be Home Buying Seminars on December 6th and 13th. Please RSVP to these events and learn more about your most important investment.

Rob AlleyRealtorRoy Wheeler Realty Co.President - Virginia Tech Alumni Association - Charlottesville ChapterBoy Scouts of America - District Advancement Chairman - Monticello District434-220-7630 (office)http://www.robsellscharlottesville.com/

Roy Wheeler Realty Co. announces a series of Home Buying Seminars in November and December 2007

November 1, 2007: The Charlottesville Area Association of Realtors stated in their recent Third Quarter Market Report that, “Many an opportunity is lost because a man is out looking for four-leaf clovers. Buyers seem to be looking for an incredible deal when great opportunity is right in front of them.” Hence, “Buyers do not need a four-leaf clover to have luck in purchasing a home right now”; there is tremendous opportunity throughout Central Virginia. This is not a Market to be afraid of but rather a Market in which to jump!

Whether someone is a First Time Home Buyer, has been away from the home buying process for a number of years or is even new to the area, the seminars being offered by The Avery Group will allay their fears about the current real estate market, getting a mortgage and give them an introduction to the home buying process in Central Virginia. The one-and-a-half hour class will offer an introduction to buying a home, working with a real estate agent, a mortgage professional, and how to get to Closing!

Additional classes will be available on: (1) the process of finding the right home, townhouse or condo and writing an offer; (2) financing, credit scores and credit issues; (3) the home inspection process; and (4) working with an attorney or title company. Participants will have an opportunity to sign up for these free classes at the Introductory Seminar. The additional classes are free and completely optional.

The first informational Seminar for First Time Home Buyers will be held on Thursday, November 8, 2007 from 6:00 to 7:30 PM. A Seminar will also be offered on Saturday, November 10, 2007 from 10:00 to 11:30 AM and Thursday, November 15, 2007 from 7:00 to 8:30 PM. Registration is required and light refreshments will be served; please call (434) 975-9000 to reserve your seat.

All of the seminars will take place at Charlottesville Settlement Company located in Glenwood Station next to Fashion Square Mall in Charlottesville, VA.

Rob Alley, REALTOR® and Cynthia Avery, REALTOR® have worked together this past year as members of The Avery Group which offers ten years of combined real estate experience in Central Virginia. Rob is also President of the Charlottesville Chapter of the Virginia Tech Alumni Association. Known for their abundant energy and service to others, Rob & Cynthia offer a dynamic combination of real estate and market knowledge, exemplary service, internet savvy, wisdom and good old fashion common sense. You can visit them on the web at www.TheAveryGroup.com.

The Roy Wheeler Realty Company was founded with the philosophy that "service is our most important product." That philosophy is as important today as it was in 1927. Today, over 100 agents work from historic Ednam Hall as well as their three other offices in Wintergreen, Greene County and Sperryville; all carry on the tradition of Roy Wheeler and his commitment to excellence. Their reputation for hard work, diligence and unsurpassed service to their clients has stood the test of time throughout the Piedmont. The associates and staff of Roy Wheeler Realty Co. take pride in the services they provide to the community and in their ability to make a positive contribution to the region and the people they work with daily.

You may register for the Home Buying Seminars by calling (434) 975-9000 or by emailing Info@TheAveryGroup.com. Please feel free to call for more information or if you have specific questions.

Roy Wheeler Realty Co. announces a series of Home Buying Seminars in November and December 2007

November 1, 2007: The Charlottesville Area Association of Realtors stated in their recent Third Quarter Market Report that, “Many an opportunity is lost because a man is out looking for four-leaf clovers. Buyers seem to be looking for an incredible deal when great opportunity is right in front of them.” Hence, “Buyers do not need a four-leaf clover to have luck in purchasing a home right now”; there is tremendous opportunity throughout Central Virginia. This is not a Market to be afraid of but rather a Market in which to jump!

Whether someone is a First Time Home Buyer, has been away from the home buying process for a number of years or is even new to the area, the seminars being offered by The Avery Group will allay their fears about the current real estate market, getting a mortgage and give them an introduction to the home buying process in Central Virginia. The one-and-a-half hour class will offer an introduction to buying a home, working with a real estate agent, a mortgage professional, and how to get to Closing!

Additional classes will be available on: (1) the process of finding the right home, townhouse or condo and writing an offer; (2) financing, credit scores and credit issues; (3) the home inspection process; and (4) working with an attorney or title company. Participants will have an opportunity to sign up for these free classes at the Introductory Seminar. The additional classes are free and completely optional.

The first informational Seminar for First Time Home Buyers will be held on Thursday, November 8, 2007 from 6:00 to 7:30 PM. A Seminar will also be offered on Saturday, November 10, 2007 from 10:00 to 11:30 AM and Thursday, November 15, 2007 from 7:00 to 8:30 PM. Registration is required and light refreshments will be served; please call (434) 975-9000 to reserve your seat.

All of the seminars will take place at Charlottesville Settlement Company located in Glenwood Station next to Fashion Square Mall in Charlottesville, VA.

Rob Alley, REALTOR® and Cynthia Avery, REALTOR® have worked together this past year as members of The Avery Group which offers ten years of combined real estate experience in Central Virginia. Rob is also President of the Charlottesville Chapter of the Virginia Tech Alumni Association. Known for their abundant energy and service to others, Rob & Cynthia offer a dynamic combination of real estate and market knowledge, exemplary service, internet savvy, wisdom and good old fashion common sense. You can visit them on the web at www.TheAveryGroup.com.

The Roy Wheeler Realty Company was founded with the philosophy that "service is our most important product." That philosophy is as important today as it was in 1927. Today, over 100 agents work from historic Ednam Hall as well as their three other offices in Wintergreen, Greene County and Sperryville; all carry on the tradition of Roy Wheeler and his commitment to excellence. Their reputation for hard work, diligence and unsurpassed service to their clients has stood the test of time throughout the Piedmont. The associates and staff of Roy Wheeler Realty Co. take pride in the services they provide to the community and in their ability to make a positive contribution to the region and the people they work with daily.

You may register for the Home Buying Seminars by calling (434) 975-9000 or by emailing Info@TheAveryGroup.com. Please feel free to call for more information or if you have specific questions.

How to protect home from winter's fury

Start thinking about sealers, gutters, foundation vents

With fall's transition between the seasons comes a transition for your home as well. That roof and those four sturdy walls need to protect you from winter's fury, and there are several things you can do to help get ready.

1. Seal masonry surfaces: Apply a sealer to concrete driveways and walkways, brick patios and other exterior masonry. The sealer, available from paint stores and masonry supply retailers, prevents water from penetrating into cracks and crevices where it can freeze and cause serious damage.

2. Prepare your fireplace: Now is the time to get wood-burning appliances such as fireplaces and woodstoves ready for the season. Remove ash buildup; check screens and glass doors for damage; replace door gaskets as needed; and check doors, door latches, screen brackets, and other metal parts to be sure they are secure and operating properly. Check the condition of the exterior of the chimney or flue pipe, including the cap, and then clean the chimney to remove last season's accumulation of soot and creosote. Consider having a professional chimney sweep service clean and check everything at least every other year.

3. Prepare humidifiers: Winter is a dry time inside your home, and many people choose to use a
portable or central humidifier to put much-needed moisture back into the air. Now is the time to check your humidifier to make sure it's operating properly, that all necessary plates and filters are in place, and that the system is clean and the water supply is correct. Check your operating and maintenance instructions for more information.

4. Check the gutters: Check and clean gutters to remove leaf and pine needle debris, and check that the opening between the gutter and the downspout is unobstructed. Look for loose joints or other structural problems with the system, and repair them as needed using pop rivets. Use a gutter sealant to seal any connections where leaks may be occurring.

5. Change your furnace filters: Replace your old furnace filter with a new one. While you're at it, check the furnace for worn belts, lubrication needs or other servicing that might be required; refer to your owner's manual for specific suggestions, and follow any manufacturer safety instructions for shutting the power and fuel to the furnace before servicing.

6. Install a carbon monoxide detector: As we close up our houses for winter, the chances of carbon monoxide poisoning from malfunctioning gas appliances increases substantially. If you have a fireplace, water heater, or other appliance that is fueled by propane or natural gas, fall is an ideal time to install a carbon monoxide detector -- available from many home centers and retailers of heating system supplies. While you're at it, consider also having a professional heating contractor come out and inspect all of the fittings and components on your gas appliances.

7. Check smoke detectors: Fall is a great time to check the operation of your smoke detectors and to change batteries. You should also consider installing additional smoke detectors outside each bedroom.

8. Close off foundation vents: Depending on the winter climate in your area, you'll want to be thinking about closing off your foundation vents to help prevent pipe freezes. You can leave the foundation open for as many months as the weather remains mild, but close them off when the local forecasts begin calling for freezing temperatures. Once closed, you can leave them that way until it warms up again in the spring.

9. Check weatherstripping: Air leaks around doors and windows can rob your home of expensive heated air and create uncomfortable drafts that keep you feeling chilly. Check the weatherstripping around doors and windows, and replace any that are worn -- retailers who specialize in doors and windows can fix you up with the proper replacement type for your situation

Strategies to lower your mortgage interest rate

Interest rates on jumbo mortgages jumped about 3/4 percent in mid-August. Before settling for higher rates or giving up altogether, consider the following ways you might lower your financing costs.

Even though jumbos increased in price, conforming rates -- for mortgage amounts up to $417,000 -- decreased. On Aug. 20, for example, it was possible to find a 30-year fixed-rate conforming mortgage for 6.25 percent and one point. At the same time, jumbo mortgages over $417,000 were going for 7.25 percent and one point.

"Points" is a term lenders use for a mortgage origination fee that's paid by the borrower one time only at closing. One point equals 1 percent of the loan amount. By paying more points upfront, a borrower can lower the mortgage interest rate for the term of the loan.

Points are tax-deductible on purchase mortgages in the year of purchase for those borrowers who itemize deductions. Restrictions apply, so be sure to check with your tax advisor to see if paying points will lower your overall cost of financing. Usually, the longer you plan to keep paying on the mortgage, the more worthwhile it is to pay points for a lower rate.

HOUSE HUNTING TIP: Buyers who don't have the extra cash to pay points could ask the seller to pay points for them. Most lenders permit a seller to credit cash to buyers at closing for their nonrecurring closing costs. Points are a nonrecurring closing cost -- they are paid once at closing, unlike mortgage payments or homeowners insurance that is paid for on an ongoing basis.

Lenders have limits on how much a seller can credit a buyer. It's usually 3 to 6 percent of the purchase price. Before you write an offer, find out your lender's limit. Then ask the seller to credit you a dollar amount that falls within the lender's guidelines. This way you won't raise a red flag with the lender that could cause your loan to be denied.

Also be aware that appraisers are taking a hard look at seller credits to determine if they affect the market value of the property. If you inflate your offer price to cover the cost of points and this puts the price out of line with current market value, the lender could lower the appraised value. In this case, your mortgage amount might also be lowered, leaving you short on the funds you will need to close.

No one knows the future direction of interest rates. But, if you believe that interest rates will come down soon and that you'll refinance into a lower-interest-rate mortgage, you might be better off paying a higher rate now and no points.

Another way to reduce your mortgage interest rate on jumbo financing is to create a blended rate by combining a low-interest-rate conforming loan with a second mortgage. Secondary financing is available in amounts up to $500,000 for buyers with a 20 percent cash down payment, a good credit score (over 700 with some lenders) and verifiable income.

By combining a conforming $400,000 fixed-rate first mortgage at 6.25 percent with a fixed-rate $400,000 second mortgage at 7.4 percent, you end up with a blended rate of 6.8 percent. So, you create jumbo financing for under 7 percent in an over-7 percent first-mortgage market.
Most conventional second mortgages have payments that are amortized over 30 years, with a due date in 15 years. This means that there is a balloon payment when the loan is due, unless you pay the principal down substantially during the term of the loan.

THE CLOSING: Make sure that there is no prepayment penalty on the second mortgage so that you can make pay-downs or pay the loan off at any time without penalty.

How to protect home from winter's fury

Start thinking about sealers, gutters, foundation vents

With fall's transition between the seasons comes a transition for your home as well. That roof and those four sturdy walls need to protect you from winter's fury, and there are several things you can do to help get ready.

1. Seal masonry surfaces: Apply a sealer to concrete driveways and walkways, brick patios and other exterior masonry. The sealer, available from paint stores and masonry supply retailers, prevents water from penetrating into cracks and crevices where it can freeze and cause serious damage.

2. Prepare your fireplace: Now is the time to get wood-burning appliances such as fireplaces and woodstoves ready for the season. Remove ash buildup; check screens and glass doors for damage; replace door gaskets as needed; and check doors, door latches, screen brackets, and other metal parts to be sure they are secure and operating properly. Check the condition of the exterior of the chimney or flue pipe, including the cap, and then clean the chimney to remove last season's accumulation of soot and creosote. Consider having a professional chimney sweep service clean and check everything at least every other year.

3. Prepare humidifiers: Winter is a dry time inside your home, and many people choose to use a
portable or central humidifier to put much-needed moisture back into the air. Now is the time to check your humidifier to make sure it's operating properly, that all necessary plates and filters are in place, and that the system is clean and the water supply is correct. Check your operating and maintenance instructions for more information.

4. Check the gutters: Check and clean gutters to remove leaf and pine needle debris, and check that the opening between the gutter and the downspout is unobstructed. Look for loose joints or other structural problems with the system, and repair them as needed using pop rivets. Use a gutter sealant to seal any connections where leaks may be occurring.

5. Change your furnace filters: Replace your old furnace filter with a new one. While you're at it, check the furnace for worn belts, lubrication needs or other servicing that might be required; refer to your owner's manual for specific suggestions, and follow any manufacturer safety instructions for shutting the power and fuel to the furnace before servicing.

6. Install a carbon monoxide detector: As we close up our houses for winter, the chances of carbon monoxide poisoning from malfunctioning gas appliances increases substantially. If you have a fireplace, water heater, or other appliance that is fueled by propane or natural gas, fall is an ideal time to install a carbon monoxide detector -- available from many home centers and retailers of heating system supplies. While you're at it, consider also having a professional heating contractor come out and inspect all of the fittings and components on your gas appliances.

7. Check smoke detectors: Fall is a great time to check the operation of your smoke detectors and to change batteries. You should also consider installing additional smoke detectors outside each bedroom.

8. Close off foundation vents: Depending on the winter climate in your area, you'll want to be thinking about closing off your foundation vents to help prevent pipe freezes. You can leave the foundation open for as many months as the weather remains mild, but close them off when the local forecasts begin calling for freezing temperatures. Once closed, you can leave them that way until it warms up again in the spring.

9. Check weatherstripping: Air leaks around doors and windows can rob your home of expensive heated air and create uncomfortable drafts that keep you feeling chilly. Check the weatherstripping around doors and windows, and replace any that are worn -- retailers who specialize in doors and windows can fix you up with the proper replacement type for your situation

Strategies to lower your mortgage interest rate

Interest rates on jumbo mortgages jumped about 3/4 percent in mid-August. Before settling for higher rates or giving up altogether, consider the following ways you might lower your financing costs.

Even though jumbos increased in price, conforming rates -- for mortgage amounts up to $417,000 -- decreased. On Aug. 20, for example, it was possible to find a 30-year fixed-rate conforming mortgage for 6.25 percent and one point. At the same time, jumbo mortgages over $417,000 were going for 7.25 percent and one point.

"Points" is a term lenders use for a mortgage origination fee that's paid by the borrower one time only at closing. One point equals 1 percent of the loan amount. By paying more points upfront, a borrower can lower the mortgage interest rate for the term of the loan.

Points are tax-deductible on purchase mortgages in the year of purchase for those borrowers who itemize deductions. Restrictions apply, so be sure to check with your tax advisor to see if paying points will lower your overall cost of financing. Usually, the longer you plan to keep paying on the mortgage, the more worthwhile it is to pay points for a lower rate.

HOUSE HUNTING TIP: Buyers who don't have the extra cash to pay points could ask the seller to pay points for them. Most lenders permit a seller to credit cash to buyers at closing for their nonrecurring closing costs. Points are a nonrecurring closing cost -- they are paid once at closing, unlike mortgage payments or homeowners insurance that is paid for on an ongoing basis.

Lenders have limits on how much a seller can credit a buyer. It's usually 3 to 6 percent of the purchase price. Before you write an offer, find out your lender's limit. Then ask the seller to credit you a dollar amount that falls within the lender's guidelines. This way you won't raise a red flag with the lender that could cause your loan to be denied.

Also be aware that appraisers are taking a hard look at seller credits to determine if they affect the market value of the property. If you inflate your offer price to cover the cost of points and this puts the price out of line with current market value, the lender could lower the appraised value. In this case, your mortgage amount might also be lowered, leaving you short on the funds you will need to close.

No one knows the future direction of interest rates. But, if you believe that interest rates will come down soon and that you'll refinance into a lower-interest-rate mortgage, you might be better off paying a higher rate now and no points.

Another way to reduce your mortgage interest rate on jumbo financing is to create a blended rate by combining a low-interest-rate conforming loan with a second mortgage. Secondary financing is available in amounts up to $500,000 for buyers with a 20 percent cash down payment, a good credit score (over 700 with some lenders) and verifiable income.

By combining a conforming $400,000 fixed-rate first mortgage at 6.25 percent with a fixed-rate $400,000 second mortgage at 7.4 percent, you end up with a blended rate of 6.8 percent. So, you create jumbo financing for under 7 percent in an over-7 percent first-mortgage market.
Most conventional second mortgages have payments that are amortized over 30 years, with a due date in 15 years. This means that there is a balloon payment when the loan is due, unless you pay the principal down substantially during the term of the loan.

THE CLOSING: Make sure that there is no prepayment penalty on the second mortgage so that you can make pay-downs or pay the loan off at any time without penalty.

Five Reasons to Be a First Time Buyer

If you are currently renting a home or an apartment, this is an extraordinary time to buy a home. Here are the top five reasons (not necessarily in order) to buy instead of renting.
Link to video of this story:

5 Reasons for First Time Buyers

1. Inventory – There are currently close to 600 homes in the CAAR MLS for under $200,000 and an amazing 187 homes for sale for under $150,000. There has never been this much selection of affordable homes to buy. And these affordable homes aren’t just condos. There are over 200 detached affordable homes for sale.

2. Cost – You will be surprised to find that a monthly mortgage payment is about the same as what you pay in rent. Despite all the negative news you may have heard about the so called mortgage crisis, there is still a ton of great deals for first time home buyers.

3. No Home to Sell – The current real estate market is a tough one for home sellers. There are so many homes on the market that properties are taking a long time to sell. As a first time buyer, you do not have to sell your home before you can buy.

4. Rents are Heading Up – The inventory of rental properties and apartments is low right now. That means average rents are on their way up.

5. Wealth Building – Did you know that for most people their home is their largest asset? Owning a home allows you to build your personal wealth way better than any other investment opportunity. The sooner you buy, the sooner you’ll be building your financial security.

So, now that you are convinced to become a first time home owner, what do you do next? You may want to start by browsing Internet home sites like CAAR.com to get a feel for the market. Then you will want to find a REALTOR® to work with as your buyer’s agent. You may also want to check with the Regional Homeownership Center at the Piedmont Housing Alliance to see what special down payment assistant plans they have to offer. And finally, find a local mortgage broker to help you with a loan package. You will need this team of local professionals to help you make your first home purchase. Now, get out there and BUY A HOME!

http://www.robsellscharlottesville.com/

Five Reasons to Be a First Time Buyer

If you are currently renting a home or an apartment, this is an extraordinary time to buy a home. Here are the top five reasons (not necessarily in order) to buy instead of renting.
Link to video of this story:

5 Reasons for First Time Buyers

1. Inventory – There are currently close to 600 homes in the CAAR MLS for under $200,000 and an amazing 187 homes for sale for under $150,000. There has never been this much selection of affordable homes to buy. And these affordable homes aren’t just condos. There are over 200 detached affordable homes for sale.

2. Cost – You will be surprised to find that a monthly mortgage payment is about the same as what you pay in rent. Despite all the negative news you may have heard about the so called mortgage crisis, there is still a ton of great deals for first time home buyers.

3. No Home to Sell – The current real estate market is a tough one for home sellers. There are so many homes on the market that properties are taking a long time to sell. As a first time buyer, you do not have to sell your home before you can buy.

4. Rents are Heading Up – The inventory of rental properties and apartments is low right now. That means average rents are on their way up.

5. Wealth Building – Did you know that for most people their home is their largest asset? Owning a home allows you to build your personal wealth way better than any other investment opportunity. The sooner you buy, the sooner you’ll be building your financial security.

So, now that you are convinced to become a first time home owner, what do you do next? You may want to start by browsing Internet home sites like CAAR.com to get a feel for the market. Then you will want to find a REALTOR® to work with as your buyer’s agent. You may also want to check with the Regional Homeownership Center at the Piedmont Housing Alliance to see what special down payment assistant plans they have to offer. And finally, find a local mortgage broker to help you with a loan package. You will need this team of local professionals to help you make your first home purchase. Now, get out there and BUY A HOME!

http://www.robsellscharlottesville.com/