The Charlottesville Area Association of Realtors (CAAR) has come out with a new rule for Short Sale Listings in the Central Virginia Area.
We are now required to disclose any short sales we are doing to both the other agents and the public. Here is a quote from the message sent to us:
"We have established a deadline date of August 14th to require this disclosure. Next week we will be making some changes to the MLS that allow agents to select “short sale” from a new menu of sale types. If you know that your seller is going to need third party approval on the deal, then you must select “short sale” from the menu. As stated above, you must have your seller’s approval before you disclose this otherwise confidential information. Essentially, you will have two weeks – until August 14th - to get the seller’s approval and make the change in the MLS.
VAR is currently developing forms to use for short sale transactions, but at this point we do not have recommended forms to use. This policy was approved by the CAAR Board in March, but we have delayed taking action while waiting for the forms. At this point, we can no longer delay the implementation of this policy because short sales are dramatically affecting the marketplace."
Of course, our Short Sale team here at Keller Williams already have disclosure documents that we have been using in our listing appointments, so we are slightly ahead of the game. Now that everyone is aware that short sales and REOs are really hitting Charlottesville like the rest of the nation, maybe we can start moving forward as a community to do the best we can to preserve value. Only time will tell now.
Rob Alley, Realtor at Keller Williams Charlottesville
540-250-3275 (cell)
roballeyrealtor@gmail.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.charlottesvillevarealestate.blogspot.com
http://www.charlottesvilleshortsale.com
http://www.theaverygroup.com
Showing posts with label cynthia avery. Show all posts
Showing posts with label cynthia avery. Show all posts
Tuesday, August 4, 2009
New Rule for Short Sale Listings in Charlottesville
The Charlottesville Area Association of Realtors (CAAR) has come out with a new rule for Short Sale Listings in the Central Virginia Area.
We are now required to disclose any short sales we are doing to both the other agents and the public. Here is a quote from the message sent to us:
"We have established a deadline date of August 14th to require this disclosure. Next week we will be making some changes to the MLS that allow agents to select “short sale” from a new menu of sale types. If you know that your seller is going to need third party approval on the deal, then you must select “short sale” from the menu. As stated above, you must have your seller’s approval before you disclose this otherwise confidential information. Essentially, you will have two weeks – until August 14th - to get the seller’s approval and make the change in the MLS.
VAR is currently developing forms to use for short sale transactions, but at this point we do not have recommended forms to use. This policy was approved by the CAAR Board in March, but we have delayed taking action while waiting for the forms. At this point, we can no longer delay the implementation of this policy because short sales are dramatically affecting the marketplace."
Of course, our Short Sale team here at Keller Williams already have disclosure documents that we have been using in our listing appointments, so we are slightly ahead of the game. Now that everyone is aware that short sales and REOs are really hitting Charlottesville like the rest of the nation, maybe we can start moving forward as a community to do the best we can to preserve value. Only time will tell now.
Rob Alley, Realtor at Keller Williams Charlottesville
540-250-3275 (cell)
roballeyrealtor@gmail.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.charlottesvillevarealestate.blogspot.com
http://www.charlottesvilleshortsale.com
http://www.theaverygroup.com
We are now required to disclose any short sales we are doing to both the other agents and the public. Here is a quote from the message sent to us:
"We have established a deadline date of August 14th to require this disclosure. Next week we will be making some changes to the MLS that allow agents to select “short sale” from a new menu of sale types. If you know that your seller is going to need third party approval on the deal, then you must select “short sale” from the menu. As stated above, you must have your seller’s approval before you disclose this otherwise confidential information. Essentially, you will have two weeks – until August 14th - to get the seller’s approval and make the change in the MLS.
VAR is currently developing forms to use for short sale transactions, but at this point we do not have recommended forms to use. This policy was approved by the CAAR Board in March, but we have delayed taking action while waiting for the forms. At this point, we can no longer delay the implementation of this policy because short sales are dramatically affecting the marketplace."
Of course, our Short Sale team here at Keller Williams already have disclosure documents that we have been using in our listing appointments, so we are slightly ahead of the game. Now that everyone is aware that short sales and REOs are really hitting Charlottesville like the rest of the nation, maybe we can start moving forward as a community to do the best we can to preserve value. Only time will tell now.
Rob Alley, Realtor at Keller Williams Charlottesville
540-250-3275 (cell)
roballeyrealtor@gmail.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.charlottesvillevarealestate.blogspot.com
http://www.charlottesvilleshortsale.com
http://www.theaverygroup.com
Wednesday, July 22, 2009
The Problem of PMI & Charlottesville Short Sales
The Problem of PMI & Charlottesville Short Sales
A lot of Charlottesville short sale investors become very confused as soon as PMI is mentioned.
PMI or Private Mortgage Insurance is that monthly fee many Charlottesville homeowners pay each and every month for what appears like no apparent reason (in their opinion).
Of course, there was a reason for it and if you are contemplating a short sale deal, this reasoning is a valid concern.
PMI was created for the express purpose of insuring against default by home buyers that didn't put at least 20 percent down when purchasing a home.
It does not mean life insurance in case one of the bread winners is killed in an accident. That's a totally separate insurance product.
The idea was simple enough; Charlottesville real estate rarely ever falls and when it does, it rarely falls by much more than 20 percent.
Because the majority of mortgages are amortized, the closing costs and larger up-front payments effectively reduce the risk even more.
To compensate for the difference between anticipated losses and the actual loss of any profit (after taking amortization etc into account) most Charlottesville homeowners would be forced to pay for PMI until the loan to debt ratio fell below 80 percent.
Sounds like a good plan of protection so what could be the problem when it comes to a Charlottesville short sale?
Well, the thought process is like this...if the PMI or private mortgage insurance will cough up a higher cost in the event of a default than the short sale offer, then it's less likely the lender will want to negotiate below a given amount.
However, this isn't always the situation.
In some instances the primary mortgage holder will accept a short sale offer if there is a second mortgage or promise of future payment - a controversial but relatively common situation since legally the current homeowner is responsible for any gap.
Of course, faced with the prospect of losing their home and still owing money, most Charlottesville homeowners tend to either walk away entirely or simply file for bankruptcy protection.
Because of the drama associated with PMI and short sales, many investors simply opt to avoid them altogether.
Before making that decision it's important to clear up a few myths surrounding PMI and short sales...
1. PMI pays up to 20 percent...not 80 percent.
The private mortgage insurance was put into place because the original Charlottesville owner didn't put at least 20 percent down...it's the difference between 100 percent financing and 80 percent (or whatever amount above 80 percent financing obtained for the original loan).
2. Transactions costs, maintenance fees and other expenses must also be taken into account.
3. AIG United Guaranty is one of the larger entities holding many of these issues. As you know (or should know), AIG is facing just a few problems of their own to the point that some mortgage companies no longer want to negotiate directly with the PMI during the course of a short sale.
So, the bottom line is this; when making an offer for Charlottesville short sales on any property be sure to find out for sure (don't leave it to the homeowner to know or understand if they pay PMI) if the property is impacted by PMI.
If so, realize that some of the loss will be mitigated by the PMI and plan your calculations accordingly.
Should you decide to continue the negotiation process, be sure you fully understand the additional level of complexity added by the existence of PMI into the equation.
Rob Alley, Realtor at Keller Williams Charlottesville
540-250-3275 (cell)
roballeyrealtor@gmail.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.charlottesvillevarealestate.blogspot.com
http://www.charlottesvilleshortsale.com
http://www.theaverygroup.com
A lot of Charlottesville short sale investors become very confused as soon as PMI is mentioned.
PMI or Private Mortgage Insurance is that monthly fee many Charlottesville homeowners pay each and every month for what appears like no apparent reason (in their opinion).
Of course, there was a reason for it and if you are contemplating a short sale deal, this reasoning is a valid concern.
PMI was created for the express purpose of insuring against default by home buyers that didn't put at least 20 percent down when purchasing a home.
It does not mean life insurance in case one of the bread winners is killed in an accident. That's a totally separate insurance product.
The idea was simple enough; Charlottesville real estate rarely ever falls and when it does, it rarely falls by much more than 20 percent.
Because the majority of mortgages are amortized, the closing costs and larger up-front payments effectively reduce the risk even more.
To compensate for the difference between anticipated losses and the actual loss of any profit (after taking amortization etc into account) most Charlottesville homeowners would be forced to pay for PMI until the loan to debt ratio fell below 80 percent.
Sounds like a good plan of protection so what could be the problem when it comes to a Charlottesville short sale?
Well, the thought process is like this...if the PMI or private mortgage insurance will cough up a higher cost in the event of a default than the short sale offer, then it's less likely the lender will want to negotiate below a given amount.
However, this isn't always the situation.
In some instances the primary mortgage holder will accept a short sale offer if there is a second mortgage or promise of future payment - a controversial but relatively common situation since legally the current homeowner is responsible for any gap.
Of course, faced with the prospect of losing their home and still owing money, most Charlottesville homeowners tend to either walk away entirely or simply file for bankruptcy protection.
Because of the drama associated with PMI and short sales, many investors simply opt to avoid them altogether.
Before making that decision it's important to clear up a few myths surrounding PMI and short sales...
1. PMI pays up to 20 percent...not 80 percent.
The private mortgage insurance was put into place because the original Charlottesville owner didn't put at least 20 percent down...it's the difference between 100 percent financing and 80 percent (or whatever amount above 80 percent financing obtained for the original loan).
2. Transactions costs, maintenance fees and other expenses must also be taken into account.
3. AIG United Guaranty is one of the larger entities holding many of these issues. As you know (or should know), AIG is facing just a few problems of their own to the point that some mortgage companies no longer want to negotiate directly with the PMI during the course of a short sale.
So, the bottom line is this; when making an offer for Charlottesville short sales on any property be sure to find out for sure (don't leave it to the homeowner to know or understand if they pay PMI) if the property is impacted by PMI.
If so, realize that some of the loss will be mitigated by the PMI and plan your calculations accordingly.
Should you decide to continue the negotiation process, be sure you fully understand the additional level of complexity added by the existence of PMI into the equation.
Rob Alley, Realtor at Keller Williams Charlottesville
540-250-3275 (cell)
roballeyrealtor@gmail.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.charlottesvillevarealestate.blogspot.com
http://www.charlottesvilleshortsale.com
http://www.theaverygroup.com
The Problem of PMI & Charlottesville Short Sales
The Problem of PMI & Charlottesville Short Sales
A lot of Charlottesville short sale investors become very confused as soon as PMI is mentioned.
PMI or Private Mortgage Insurance is that monthly fee many Charlottesville homeowners pay each and every month for what appears like no apparent reason (in their opinion).
Of course, there was a reason for it and if you are contemplating a short sale deal, this reasoning is a valid concern.
PMI was created for the express purpose of insuring against default by home buyers that didn't put at least 20 percent down when purchasing a home.
It does not mean life insurance in case one of the bread winners is killed in an accident. That's a totally separate insurance product.
The idea was simple enough; Charlottesville real estate rarely ever falls and when it does, it rarely falls by much more than 20 percent.
Because the majority of mortgages are amortized, the closing costs and larger up-front payments effectively reduce the risk even more.
To compensate for the difference between anticipated losses and the actual loss of any profit (after taking amortization etc into account) most Charlottesville homeowners would be forced to pay for PMI until the loan to debt ratio fell below 80 percent.
Sounds like a good plan of protection so what could be the problem when it comes to a Charlottesville short sale?
Well, the thought process is like this...if the PMI or private mortgage insurance will cough up a higher cost in the event of a default than the short sale offer, then it's less likely the lender will want to negotiate below a given amount.
However, this isn't always the situation.
In some instances the primary mortgage holder will accept a short sale offer if there is a second mortgage or promise of future payment - a controversial but relatively common situation since legally the current homeowner is responsible for any gap.
Of course, faced with the prospect of losing their home and still owing money, most Charlottesville homeowners tend to either walk away entirely or simply file for bankruptcy protection.
Because of the drama associated with PMI and short sales, many investors simply opt to avoid them altogether.
Before making that decision it's important to clear up a few myths surrounding PMI and short sales...
1. PMI pays up to 20 percent...not 80 percent.
The private mortgage insurance was put into place because the original Charlottesville owner didn't put at least 20 percent down...it's the difference between 100 percent financing and 80 percent (or whatever amount above 80 percent financing obtained for the original loan).
2. Transactions costs, maintenance fees and other expenses must also be taken into account.
3. AIG United Guaranty is one of the larger entities holding many of these issues. As you know (or should know), AIG is facing just a few problems of their own to the point that some mortgage companies no longer want to negotiate directly with the PMI during the course of a short sale.
So, the bottom line is this; when making an offer for Charlottesville short sales on any property be sure to find out for sure (don't leave it to the homeowner to know or understand if they pay PMI) if the property is impacted by PMI.
If so, realize that some of the loss will be mitigated by the PMI and plan your calculations accordingly.
Should you decide to continue the negotiation process, be sure you fully understand the additional level of complexity added by the existence of PMI into the equation.
Rob Alley, Realtor at Keller Williams Charlottesville
540-250-3275 (cell)
roballeyrealtor@gmail.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.charlottesvillevarealestate.blogspot.com
http://www.charlottesvilleshortsale.com
http://www.theaverygroup.com
A lot of Charlottesville short sale investors become very confused as soon as PMI is mentioned.
PMI or Private Mortgage Insurance is that monthly fee many Charlottesville homeowners pay each and every month for what appears like no apparent reason (in their opinion).
Of course, there was a reason for it and if you are contemplating a short sale deal, this reasoning is a valid concern.
PMI was created for the express purpose of insuring against default by home buyers that didn't put at least 20 percent down when purchasing a home.
It does not mean life insurance in case one of the bread winners is killed in an accident. That's a totally separate insurance product.
The idea was simple enough; Charlottesville real estate rarely ever falls and when it does, it rarely falls by much more than 20 percent.
Because the majority of mortgages are amortized, the closing costs and larger up-front payments effectively reduce the risk even more.
To compensate for the difference between anticipated losses and the actual loss of any profit (after taking amortization etc into account) most Charlottesville homeowners would be forced to pay for PMI until the loan to debt ratio fell below 80 percent.
Sounds like a good plan of protection so what could be the problem when it comes to a Charlottesville short sale?
Well, the thought process is like this...if the PMI or private mortgage insurance will cough up a higher cost in the event of a default than the short sale offer, then it's less likely the lender will want to negotiate below a given amount.
However, this isn't always the situation.
In some instances the primary mortgage holder will accept a short sale offer if there is a second mortgage or promise of future payment - a controversial but relatively common situation since legally the current homeowner is responsible for any gap.
Of course, faced with the prospect of losing their home and still owing money, most Charlottesville homeowners tend to either walk away entirely or simply file for bankruptcy protection.
Because of the drama associated with PMI and short sales, many investors simply opt to avoid them altogether.
Before making that decision it's important to clear up a few myths surrounding PMI and short sales...
1. PMI pays up to 20 percent...not 80 percent.
The private mortgage insurance was put into place because the original Charlottesville owner didn't put at least 20 percent down...it's the difference between 100 percent financing and 80 percent (or whatever amount above 80 percent financing obtained for the original loan).
2. Transactions costs, maintenance fees and other expenses must also be taken into account.
3. AIG United Guaranty is one of the larger entities holding many of these issues. As you know (or should know), AIG is facing just a few problems of their own to the point that some mortgage companies no longer want to negotiate directly with the PMI during the course of a short sale.
So, the bottom line is this; when making an offer for Charlottesville short sales on any property be sure to find out for sure (don't leave it to the homeowner to know or understand if they pay PMI) if the property is impacted by PMI.
If so, realize that some of the loss will be mitigated by the PMI and plan your calculations accordingly.
Should you decide to continue the negotiation process, be sure you fully understand the additional level of complexity added by the existence of PMI into the equation.
Rob Alley, Realtor at Keller Williams Charlottesville
540-250-3275 (cell)
roballeyrealtor@gmail.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.charlottesvillevarealestate.blogspot.com
http://www.charlottesvilleshortsale.com
http://www.theaverygroup.com
Buying Charlottesville Homes from a Wholesaler
8 Reasons to buy Charlottesville houses from an experienced Real Estate Wholesaler:
8.) Like Sam’s Club, experienced Charlottesville wholesalers can buy houses in bulk, thus buying them at deep discounts. These savings are then passed on to you.
7.) Good wholesalers understand the real way to make money wholesaling is by doing volume.They look at hundreds of Charlottesville houses only to make 20 offers that lead to the best deals. This means wholesalers aren’t trying to get rich on every deal. It also means their research saves you time.
6.) Wholesalers usually mark up their deals a few thousand and leave a sizeable profit margin for the next guy or gal. The really well connected ones can buy at such great discounts that often there is room for two wholesalers to make money.
5.) The real pros only sell deals that make you money. They do this because you will continue to buy from them. The more money you make, the more everyone makes. I mean, seriously… who doesn’t like to make money?
4.) Wholesalers are an important piece of the real estate investment puzzle, so to speak. They play a very important role and one that allows you to always be focusing on your exit strategy.
3.) Because of their connections and years in the business, experienced Charlottesville wholesalers get first shot at the best deals in town.
2.) An experienced Charlottesville wholesaler has a goal to make sure the end investor is well taken care of. This can include providing related contacts (property management, contractors, title companies, etc) and could also mean providing rehab project management, for a fee. This service is vitally important to out of town buyers.
1.) Experienced wholesalers love helping you build your Charlottesville real estate investment portfolio and will go out of their way to see you succeed. It’s all about relationships, and a true wholesale pro wants to build one with you for the long term. After all, they’re in this business for the long haul.
Bottom line is experienced Charlottesville wholesalers are the best in every city at finding diamonds in the rough—and we all know that diamonds in the rough equal profits. Profits, and the freedom that comes with it, are the reasons we become real estate investors. Heck, more millionaires have been created through investing in real estate than any other vehicle.
History says the time to buy is in a down market. Who are we to argue with history?
Rob Alley, Realtor at Keller Williams Charlottesville
540-250-3275 (cell)
roballeyrealtor@gmail.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.charlottesvillevarealestate.blogspot.com
http://www.charlottesvilleshortsale.com
http://www.theaverygroup.com
8.) Like Sam’s Club, experienced Charlottesville wholesalers can buy houses in bulk, thus buying them at deep discounts. These savings are then passed on to you.
7.) Good wholesalers understand the real way to make money wholesaling is by doing volume.They look at hundreds of Charlottesville houses only to make 20 offers that lead to the best deals. This means wholesalers aren’t trying to get rich on every deal. It also means their research saves you time.
6.) Wholesalers usually mark up their deals a few thousand and leave a sizeable profit margin for the next guy or gal. The really well connected ones can buy at such great discounts that often there is room for two wholesalers to make money.
5.) The real pros only sell deals that make you money. They do this because you will continue to buy from them. The more money you make, the more everyone makes. I mean, seriously… who doesn’t like to make money?
4.) Wholesalers are an important piece of the real estate investment puzzle, so to speak. They play a very important role and one that allows you to always be focusing on your exit strategy.
3.) Because of their connections and years in the business, experienced Charlottesville wholesalers get first shot at the best deals in town.
2.) An experienced Charlottesville wholesaler has a goal to make sure the end investor is well taken care of. This can include providing related contacts (property management, contractors, title companies, etc) and could also mean providing rehab project management, for a fee. This service is vitally important to out of town buyers.
1.) Experienced wholesalers love helping you build your Charlottesville real estate investment portfolio and will go out of their way to see you succeed. It’s all about relationships, and a true wholesale pro wants to build one with you for the long term. After all, they’re in this business for the long haul.
Bottom line is experienced Charlottesville wholesalers are the best in every city at finding diamonds in the rough—and we all know that diamonds in the rough equal profits. Profits, and the freedom that comes with it, are the reasons we become real estate investors. Heck, more millionaires have been created through investing in real estate than any other vehicle.
History says the time to buy is in a down market. Who are we to argue with history?
Rob Alley, Realtor at Keller Williams Charlottesville
540-250-3275 (cell)
roballeyrealtor@gmail.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.charlottesvillevarealestate.blogspot.com
http://www.charlottesvilleshortsale.com
http://www.theaverygroup.com
Buying Charlottesville Homes from a Wholesaler
8 Reasons to buy Charlottesville houses from an experienced Real Estate Wholesaler:
8.) Like Sam’s Club, experienced Charlottesville wholesalers can buy houses in bulk, thus buying them at deep discounts. These savings are then passed on to you.
7.) Good wholesalers understand the real way to make money wholesaling is by doing volume.They look at hundreds of Charlottesville houses only to make 20 offers that lead to the best deals. This means wholesalers aren’t trying to get rich on every deal. It also means their research saves you time.
6.) Wholesalers usually mark up their deals a few thousand and leave a sizeable profit margin for the next guy or gal. The really well connected ones can buy at such great discounts that often there is room for two wholesalers to make money.
5.) The real pros only sell deals that make you money. They do this because you will continue to buy from them. The more money you make, the more everyone makes. I mean, seriously… who doesn’t like to make money?
4.) Wholesalers are an important piece of the real estate investment puzzle, so to speak. They play a very important role and one that allows you to always be focusing on your exit strategy.
3.) Because of their connections and years in the business, experienced Charlottesville wholesalers get first shot at the best deals in town.
2.) An experienced Charlottesville wholesaler has a goal to make sure the end investor is well taken care of. This can include providing related contacts (property management, contractors, title companies, etc) and could also mean providing rehab project management, for a fee. This service is vitally important to out of town buyers.
1.) Experienced wholesalers love helping you build your Charlottesville real estate investment portfolio and will go out of their way to see you succeed. It’s all about relationships, and a true wholesale pro wants to build one with you for the long term. After all, they’re in this business for the long haul.
Bottom line is experienced Charlottesville wholesalers are the best in every city at finding diamonds in the rough—and we all know that diamonds in the rough equal profits. Profits, and the freedom that comes with it, are the reasons we become real estate investors. Heck, more millionaires have been created through investing in real estate than any other vehicle.
History says the time to buy is in a down market. Who are we to argue with history?
Rob Alley, Realtor at Keller Williams Charlottesville
540-250-3275 (cell)
roballeyrealtor@gmail.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.charlottesvillevarealestate.blogspot.com
http://www.charlottesvilleshortsale.com
http://www.theaverygroup.com
8.) Like Sam’s Club, experienced Charlottesville wholesalers can buy houses in bulk, thus buying them at deep discounts. These savings are then passed on to you.
7.) Good wholesalers understand the real way to make money wholesaling is by doing volume.They look at hundreds of Charlottesville houses only to make 20 offers that lead to the best deals. This means wholesalers aren’t trying to get rich on every deal. It also means their research saves you time.
6.) Wholesalers usually mark up their deals a few thousand and leave a sizeable profit margin for the next guy or gal. The really well connected ones can buy at such great discounts that often there is room for two wholesalers to make money.
5.) The real pros only sell deals that make you money. They do this because you will continue to buy from them. The more money you make, the more everyone makes. I mean, seriously… who doesn’t like to make money?
4.) Wholesalers are an important piece of the real estate investment puzzle, so to speak. They play a very important role and one that allows you to always be focusing on your exit strategy.
3.) Because of their connections and years in the business, experienced Charlottesville wholesalers get first shot at the best deals in town.
2.) An experienced Charlottesville wholesaler has a goal to make sure the end investor is well taken care of. This can include providing related contacts (property management, contractors, title companies, etc) and could also mean providing rehab project management, for a fee. This service is vitally important to out of town buyers.
1.) Experienced wholesalers love helping you build your Charlottesville real estate investment portfolio and will go out of their way to see you succeed. It’s all about relationships, and a true wholesale pro wants to build one with you for the long term. After all, they’re in this business for the long haul.
Bottom line is experienced Charlottesville wholesalers are the best in every city at finding diamonds in the rough—and we all know that diamonds in the rough equal profits. Profits, and the freedom that comes with it, are the reasons we become real estate investors. Heck, more millionaires have been created through investing in real estate than any other vehicle.
History says the time to buy is in a down market. Who are we to argue with history?
Rob Alley, Realtor at Keller Williams Charlottesville
540-250-3275 (cell)
roballeyrealtor@gmail.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.charlottesvillevarealestate.blogspot.com
http://www.charlottesvilleshortsale.com
http://www.theaverygroup.com
Tuesday, July 21, 2009
Charlottesville and Central Virginia Short Sale Information - Commission
The most common concerns and questions regarding a short sale is commission. Who pays the commission?
In a short sale, the bank pays everything at closing from the cost of the termite inspection all they way to the recordation fee. This includes the commission. The listing agent should be in contact with the bank on behalf of the seller and the contract. The listing agent is resposible to negotiate the overall commission with the bank. THE SELLER (HOMEOWNER) DOES NOT HAVE TO PAY THE COMMISSION. Most banks will pay anywhere between 4% and 6%. Depending on the listings agent and their ability to negotiate, I have seen commissions as high as 8%. Of course, the larger banks have their SOP, or Standard Operating Procedure. Can't really negotiate that, but the smaller, more local banks can generally be pursuaded a little bit more.
In conclusion, if you or anyone you know is in trouble of losing their home, tell them to short sale before they get foreclosed on. A short sale is way better for the individual than a foreclosure is. There are certified people in the Charlottesville and Central Virginia area that can help. Visit www.charlottesvilleshortsale.com for more information or to save your home!
Rob Alley, Realtor at Keller Williams Charlottesville
540-250-3275 (cell)
roballeyrealtor@gmail.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.charlottesvillevarealestate.blogspot.com
http://www.charlottesvilleshortsale.com
http://www.theaverygroup.com
In a short sale, the bank pays everything at closing from the cost of the termite inspection all they way to the recordation fee. This includes the commission. The listing agent should be in contact with the bank on behalf of the seller and the contract. The listing agent is resposible to negotiate the overall commission with the bank. THE SELLER (HOMEOWNER) DOES NOT HAVE TO PAY THE COMMISSION. Most banks will pay anywhere between 4% and 6%. Depending on the listings agent and their ability to negotiate, I have seen commissions as high as 8%. Of course, the larger banks have their SOP, or Standard Operating Procedure. Can't really negotiate that, but the smaller, more local banks can generally be pursuaded a little bit more.
In conclusion, if you or anyone you know is in trouble of losing their home, tell them to short sale before they get foreclosed on. A short sale is way better for the individual than a foreclosure is. There are certified people in the Charlottesville and Central Virginia area that can help. Visit www.charlottesvilleshortsale.com for more information or to save your home!
Rob Alley, Realtor at Keller Williams Charlottesville
540-250-3275 (cell)
roballeyrealtor@gmail.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.charlottesvillevarealestate.blogspot.com
http://www.charlottesvilleshortsale.com
http://www.theaverygroup.com
Charlottesville and Central Virginia Short Sale Information - Commission
The most common concerns and questions regarding a short sale is commission. Who pays the commission?
In a short sale, the bank pays everything at closing from the cost of the termite inspection all they way to the recordation fee. This includes the commission. The listing agent should be in contact with the bank on behalf of the seller and the contract. The listing agent is resposible to negotiate the overall commission with the bank. THE SELLER (HOMEOWNER) DOES NOT HAVE TO PAY THE COMMISSION. Most banks will pay anywhere between 4% and 6%. Depending on the listings agent and their ability to negotiate, I have seen commissions as high as 8%. Of course, the larger banks have their SOP, or Standard Operating Procedure. Can't really negotiate that, but the smaller, more local banks can generally be pursuaded a little bit more.
In conclusion, if you or anyone you know is in trouble of losing their home, tell them to short sale before they get foreclosed on. A short sale is way better for the individual than a foreclosure is. There are certified people in the Charlottesville and Central Virginia area that can help. Visit www.charlottesvilleshortsale.com for more information or to save your home!
Rob Alley, Realtor at Keller Williams Charlottesville
540-250-3275 (cell)
roballeyrealtor@gmail.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.charlottesvillevarealestate.blogspot.com
http://www.charlottesvilleshortsale.com
http://www.theaverygroup.com
In a short sale, the bank pays everything at closing from the cost of the termite inspection all they way to the recordation fee. This includes the commission. The listing agent should be in contact with the bank on behalf of the seller and the contract. The listing agent is resposible to negotiate the overall commission with the bank. THE SELLER (HOMEOWNER) DOES NOT HAVE TO PAY THE COMMISSION. Most banks will pay anywhere between 4% and 6%. Depending on the listings agent and their ability to negotiate, I have seen commissions as high as 8%. Of course, the larger banks have their SOP, or Standard Operating Procedure. Can't really negotiate that, but the smaller, more local banks can generally be pursuaded a little bit more.
In conclusion, if you or anyone you know is in trouble of losing their home, tell them to short sale before they get foreclosed on. A short sale is way better for the individual than a foreclosure is. There are certified people in the Charlottesville and Central Virginia area that can help. Visit www.charlottesvilleshortsale.com for more information or to save your home!
Rob Alley, Realtor at Keller Williams Charlottesville
540-250-3275 (cell)
roballeyrealtor@gmail.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.charlottesvillevarealestate.blogspot.com
http://www.charlottesvilleshortsale.com
http://www.theaverygroup.com
Monday, July 20, 2009
Virginia Among the Top 10 in Foreclosure Filings
The US Foreclosure Market Report was published by RealtyTrac. It has some big numbers and shows where the Charlottesville Real Estate Market is headed along with the state of Virginia and the Nation. I have copied the report below for you to have.
1.9 MILLION FORECLOSURE FILINGS REPORTED ON MORE THAN 1.5 MILLION U.S. PROPERTIES IN FIRST HALF OF 2009
By RealtyTrac Staff
Foreclosure filings were reported on 336,173 U.S. properties in June, the fourth straight monthly total exceeding 300,000 and helping to boost the second quarter total to the highest quarterly total since RealtyTrac began issuing its report in the first quarter of 2005. Foreclosure filings were reported on 889,829 U.S. properties in the second quarter, an increase of nearly 11 percent from the previous quarter and a 20 percent increase from the second quarter of 2008.
“In spite of the industry-wide moratorium earlier this year, along with local, state and national legislative action and increased levels of loan modification activity, foreclosure activity continues to increase to record levels,” noted James J. Saccacio, chief executive officer of RealtyTrac.
“Unemployment-related foreclosures account for much of this increased activity, and the high number of borrowers who find themselves owing more on their mortgages than their homes’ are now worth represent a potentially significant future risk. Stemming the tide of foreclosures is a critical component to stabilizing the housing market, so it is imperative that the lending industry and the government work in tandem to find new approaches to address this issue.”
View heat map and share your comments on this report.
Nevada, Arizona, Florida post top state foreclosure rates
More than 6 percent of Nevada housing units (one in 16) received at least one foreclosure filing in the first half of 2009, giving it the nation’s highest foreclosure rate during the six-month period. A total of 68,708 Nevada properties received a foreclosure filing from January to June, an increase of 23 percent from the previous six months and an increase of 61 percent from the first half of 2008.
Arizona registered the nation’s second highest state foreclosure rate in the first half of 2009, with 3.37 percent of its housing units (one in 30) receiving at least one foreclosure filing, and Florida registered the nation’s third highest state foreclosure rate, with 3.08 percent of its housing units (one in 33) receiving at least one foreclosure filing.
Other states with foreclosure rates ranking among the nation’s 10 highest were California (2.94 percent), Utah (1.46 percent), Georgia (1.42 percent), Michigan (1.34 percent), Illinois (1.31 percent), Idaho (1.26 percent) and Colorado (1.25 percent).
California, Florida, Arizona post highest foreclosure totals
A total of 391,611 California properties received a foreclosure filing in the first half of 2009, the nation’s highest total and 2.94 percent of the state’s housing units (one in 34) — the nation’s fourth highest state foreclosure rate. California foreclosure activity in the first half of 2009 increased nearly 14 percent from the previous six months and increased nearly 15 percent from the first half of 2008.
With 268,064 properties receiving a foreclosure filing in the first six months of 2009, Florida documented the second highest state total. Florida foreclosure activity in the first half of 2009 increased 7 percent from the previous six months and was up nearly 42 percent from the first half of 2008.
Arizona’s 89,799 properties receiving a foreclosure filing in the first six months of 2009 was the third highest state total. Arizona foreclosure activity in the first half of 2009 increased 13 percent from the previous six months and was up nearly 55 percent from the first half of 2008.
Other states with totals among the 10 highest in the country were Illinois (68,932), Nevada (68,708), Michigan (60,786), Ohio (58,937), Georgia (56,391), Texas (49,144) and Virginia (28,368).
Report methodology
The RealtyTrac U.S. Foreclosure Market Report provides a count of the total number of properties with at least one foreclosure filing reported during the first half of the year at the state and national level. Data is also available at the individual county level. Data is collected from more than 2,200 counties nationwide, and those counties account for more than 90 percent of the U.S. population. RealtyTrac’s report incorporates documents filed in all three phases of foreclosure: Default — Notice of Default (NOD) and Lis Pendens (LIS); Auction — Notice of Trustee Sale and Notice of Foreclosure Sale (NTS and NFS); and Real Estate Owned, or REO properties (that have been foreclosed on and repurchased by a bank). If more than one foreclosure document is filed against a property during six-month period, only the most recent filing is counted in the report.
Rob Alley, Realtor at Keller Williams Charlottesville
540-250-3275 (cell)
roballeyrealtor@gmail.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.charlottesvillevarealestate.blogspot.com
http://www.charlottesvilleshortsale.com
http://www.theaverygroup.com
1.9 MILLION FORECLOSURE FILINGS REPORTED ON MORE THAN 1.5 MILLION U.S. PROPERTIES IN FIRST HALF OF 2009
By RealtyTrac Staff
U.S. Foreclosure Activity Up 11 Percent in Q2 to Highest Quarterly Total on Record
June Marks Fourth Straight Month with More Than 300,000 Properties with Filings
IRVINE, Calif. – July 16, 2009 – RealtyTrac® (realtytrac.com), the leading online marketplace for foreclosure properties, today released its Midyear 2009 U.S. Foreclosure Market Report, which shows a total of 1,905,723 foreclosure filings — default notices, auction sale notices and bank repossessions — were reported on 1,528,364 U.S. properties in the first six months of 2009, a 9 percent increase in total properties from the previous six months and a nearly 15 percent increase in total properties from the first six months of 2008. The report also shows that 1.19 percent of all U.S. housing units (one in 84) received at least one foreclosure filing in the first half of the year.
Foreclosure filings were reported on 336,173 U.S. properties in June, the fourth straight monthly total exceeding 300,000 and helping to boost the second quarter total to the highest quarterly total since RealtyTrac began issuing its report in the first quarter of 2005. Foreclosure filings were reported on 889,829 U.S. properties in the second quarter, an increase of nearly 11 percent from the previous quarter and a 20 percent increase from the second quarter of 2008.
“In spite of the industry-wide moratorium earlier this year, along with local, state and national legislative action and increased levels of loan modification activity, foreclosure activity continues to increase to record levels,” noted James J. Saccacio, chief executive officer of RealtyTrac.
“Unemployment-related foreclosures account for much of this increased activity, and the high number of borrowers who find themselves owing more on their mortgages than their homes’ are now worth represent a potentially significant future risk. Stemming the tide of foreclosures is a critical component to stabilizing the housing market, so it is imperative that the lending industry and the government work in tandem to find new approaches to address this issue.”
View heat map and share your comments on this report.
Nevada, Arizona, Florida post top state foreclosure rates
More than 6 percent of Nevada housing units (one in 16) received at least one foreclosure filing in the first half of 2009, giving it the nation’s highest foreclosure rate during the six-month period. A total of 68,708 Nevada properties received a foreclosure filing from January to June, an increase of 23 percent from the previous six months and an increase of 61 percent from the first half of 2008.
Arizona registered the nation’s second highest state foreclosure rate in the first half of 2009, with 3.37 percent of its housing units (one in 30) receiving at least one foreclosure filing, and Florida registered the nation’s third highest state foreclosure rate, with 3.08 percent of its housing units (one in 33) receiving at least one foreclosure filing.
Other states with foreclosure rates ranking among the nation’s 10 highest were California (2.94 percent), Utah (1.46 percent), Georgia (1.42 percent), Michigan (1.34 percent), Illinois (1.31 percent), Idaho (1.26 percent) and Colorado (1.25 percent).
California, Florida, Arizona post highest foreclosure totals
A total of 391,611 California properties received a foreclosure filing in the first half of 2009, the nation’s highest total and 2.94 percent of the state’s housing units (one in 34) — the nation’s fourth highest state foreclosure rate. California foreclosure activity in the first half of 2009 increased nearly 14 percent from the previous six months and increased nearly 15 percent from the first half of 2008.
With 268,064 properties receiving a foreclosure filing in the first six months of 2009, Florida documented the second highest state total. Florida foreclosure activity in the first half of 2009 increased 7 percent from the previous six months and was up nearly 42 percent from the first half of 2008.
Arizona’s 89,799 properties receiving a foreclosure filing in the first six months of 2009 was the third highest state total. Arizona foreclosure activity in the first half of 2009 increased 13 percent from the previous six months and was up nearly 55 percent from the first half of 2008.
Other states with totals among the 10 highest in the country were Illinois (68,932), Nevada (68,708), Michigan (60,786), Ohio (58,937), Georgia (56,391), Texas (49,144) and Virginia (28,368).
Report methodology
The RealtyTrac U.S. Foreclosure Market Report provides a count of the total number of properties with at least one foreclosure filing reported during the first half of the year at the state and national level. Data is also available at the individual county level. Data is collected from more than 2,200 counties nationwide, and those counties account for more than 90 percent of the U.S. population. RealtyTrac’s report incorporates documents filed in all three phases of foreclosure: Default — Notice of Default (NOD) and Lis Pendens (LIS); Auction — Notice of Trustee Sale and Notice of Foreclosure Sale (NTS and NFS); and Real Estate Owned, or REO properties (that have been foreclosed on and repurchased by a bank). If more than one foreclosure document is filed against a property during six-month period, only the most recent filing is counted in the report.
Rob Alley, Realtor at Keller Williams Charlottesville
540-250-3275 (cell)
roballeyrealtor@gmail.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.charlottesvillevarealestate.blogspot.com
http://www.charlottesvilleshortsale.com
http://www.theaverygroup.com
Virginia Among the Top 10 in Foreclosure Filings
The US Foreclosure Market Report was published by RealtyTrac. It has some big numbers and shows where the Charlottesville Real Estate Market is headed along with the state of Virginia and the Nation. I have copied the report below for you to have.
1.9 MILLION FORECLOSURE FILINGS REPORTED ON MORE THAN 1.5 MILLION U.S. PROPERTIES IN FIRST HALF OF 2009
By RealtyTrac Staff
Foreclosure filings were reported on 336,173 U.S. properties in June, the fourth straight monthly total exceeding 300,000 and helping to boost the second quarter total to the highest quarterly total since RealtyTrac began issuing its report in the first quarter of 2005. Foreclosure filings were reported on 889,829 U.S. properties in the second quarter, an increase of nearly 11 percent from the previous quarter and a 20 percent increase from the second quarter of 2008.
“In spite of the industry-wide moratorium earlier this year, along with local, state and national legislative action and increased levels of loan modification activity, foreclosure activity continues to increase to record levels,” noted James J. Saccacio, chief executive officer of RealtyTrac.
“Unemployment-related foreclosures account for much of this increased activity, and the high number of borrowers who find themselves owing more on their mortgages than their homes’ are now worth represent a potentially significant future risk. Stemming the tide of foreclosures is a critical component to stabilizing the housing market, so it is imperative that the lending industry and the government work in tandem to find new approaches to address this issue.”
View heat map and share your comments on this report.
Nevada, Arizona, Florida post top state foreclosure rates
More than 6 percent of Nevada housing units (one in 16) received at least one foreclosure filing in the first half of 2009, giving it the nation’s highest foreclosure rate during the six-month period. A total of 68,708 Nevada properties received a foreclosure filing from January to June, an increase of 23 percent from the previous six months and an increase of 61 percent from the first half of 2008.
Arizona registered the nation’s second highest state foreclosure rate in the first half of 2009, with 3.37 percent of its housing units (one in 30) receiving at least one foreclosure filing, and Florida registered the nation’s third highest state foreclosure rate, with 3.08 percent of its housing units (one in 33) receiving at least one foreclosure filing.
Other states with foreclosure rates ranking among the nation’s 10 highest were California (2.94 percent), Utah (1.46 percent), Georgia (1.42 percent), Michigan (1.34 percent), Illinois (1.31 percent), Idaho (1.26 percent) and Colorado (1.25 percent).
California, Florida, Arizona post highest foreclosure totals
A total of 391,611 California properties received a foreclosure filing in the first half of 2009, the nation’s highest total and 2.94 percent of the state’s housing units (one in 34) — the nation’s fourth highest state foreclosure rate. California foreclosure activity in the first half of 2009 increased nearly 14 percent from the previous six months and increased nearly 15 percent from the first half of 2008.
With 268,064 properties receiving a foreclosure filing in the first six months of 2009, Florida documented the second highest state total. Florida foreclosure activity in the first half of 2009 increased 7 percent from the previous six months and was up nearly 42 percent from the first half of 2008.
Arizona’s 89,799 properties receiving a foreclosure filing in the first six months of 2009 was the third highest state total. Arizona foreclosure activity in the first half of 2009 increased 13 percent from the previous six months and was up nearly 55 percent from the first half of 2008.
Other states with totals among the 10 highest in the country were Illinois (68,932), Nevada (68,708), Michigan (60,786), Ohio (58,937), Georgia (56,391), Texas (49,144) and Virginia (28,368).
Report methodology
The RealtyTrac U.S. Foreclosure Market Report provides a count of the total number of properties with at least one foreclosure filing reported during the first half of the year at the state and national level. Data is also available at the individual county level. Data is collected from more than 2,200 counties nationwide, and those counties account for more than 90 percent of the U.S. population. RealtyTrac’s report incorporates documents filed in all three phases of foreclosure: Default — Notice of Default (NOD) and Lis Pendens (LIS); Auction — Notice of Trustee Sale and Notice of Foreclosure Sale (NTS and NFS); and Real Estate Owned, or REO properties (that have been foreclosed on and repurchased by a bank). If more than one foreclosure document is filed against a property during six-month period, only the most recent filing is counted in the report.
Rob Alley, Realtor at Keller Williams Charlottesville
540-250-3275 (cell)
roballeyrealtor@gmail.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.charlottesvillevarealestate.blogspot.com
http://www.charlottesvilleshortsale.com
http://www.theaverygroup.com
1.9 MILLION FORECLOSURE FILINGS REPORTED ON MORE THAN 1.5 MILLION U.S. PROPERTIES IN FIRST HALF OF 2009
By RealtyTrac Staff
U.S. Foreclosure Activity Up 11 Percent in Q2 to Highest Quarterly Total on Record
June Marks Fourth Straight Month with More Than 300,000 Properties with Filings
IRVINE, Calif. – July 16, 2009 – RealtyTrac® (realtytrac.com), the leading online marketplace for foreclosure properties, today released its Midyear 2009 U.S. Foreclosure Market Report, which shows a total of 1,905,723 foreclosure filings — default notices, auction sale notices and bank repossessions — were reported on 1,528,364 U.S. properties in the first six months of 2009, a 9 percent increase in total properties from the previous six months and a nearly 15 percent increase in total properties from the first six months of 2008. The report also shows that 1.19 percent of all U.S. housing units (one in 84) received at least one foreclosure filing in the first half of the year.
Foreclosure filings were reported on 336,173 U.S. properties in June, the fourth straight monthly total exceeding 300,000 and helping to boost the second quarter total to the highest quarterly total since RealtyTrac began issuing its report in the first quarter of 2005. Foreclosure filings were reported on 889,829 U.S. properties in the second quarter, an increase of nearly 11 percent from the previous quarter and a 20 percent increase from the second quarter of 2008.
“In spite of the industry-wide moratorium earlier this year, along with local, state and national legislative action and increased levels of loan modification activity, foreclosure activity continues to increase to record levels,” noted James J. Saccacio, chief executive officer of RealtyTrac.
“Unemployment-related foreclosures account for much of this increased activity, and the high number of borrowers who find themselves owing more on their mortgages than their homes’ are now worth represent a potentially significant future risk. Stemming the tide of foreclosures is a critical component to stabilizing the housing market, so it is imperative that the lending industry and the government work in tandem to find new approaches to address this issue.”
View heat map and share your comments on this report.
Nevada, Arizona, Florida post top state foreclosure rates
More than 6 percent of Nevada housing units (one in 16) received at least one foreclosure filing in the first half of 2009, giving it the nation’s highest foreclosure rate during the six-month period. A total of 68,708 Nevada properties received a foreclosure filing from January to June, an increase of 23 percent from the previous six months and an increase of 61 percent from the first half of 2008.
Arizona registered the nation’s second highest state foreclosure rate in the first half of 2009, with 3.37 percent of its housing units (one in 30) receiving at least one foreclosure filing, and Florida registered the nation’s third highest state foreclosure rate, with 3.08 percent of its housing units (one in 33) receiving at least one foreclosure filing.
Other states with foreclosure rates ranking among the nation’s 10 highest were California (2.94 percent), Utah (1.46 percent), Georgia (1.42 percent), Michigan (1.34 percent), Illinois (1.31 percent), Idaho (1.26 percent) and Colorado (1.25 percent).
California, Florida, Arizona post highest foreclosure totals
A total of 391,611 California properties received a foreclosure filing in the first half of 2009, the nation’s highest total and 2.94 percent of the state’s housing units (one in 34) — the nation’s fourth highest state foreclosure rate. California foreclosure activity in the first half of 2009 increased nearly 14 percent from the previous six months and increased nearly 15 percent from the first half of 2008.
With 268,064 properties receiving a foreclosure filing in the first six months of 2009, Florida documented the second highest state total. Florida foreclosure activity in the first half of 2009 increased 7 percent from the previous six months and was up nearly 42 percent from the first half of 2008.
Arizona’s 89,799 properties receiving a foreclosure filing in the first six months of 2009 was the third highest state total. Arizona foreclosure activity in the first half of 2009 increased 13 percent from the previous six months and was up nearly 55 percent from the first half of 2008.
Other states with totals among the 10 highest in the country were Illinois (68,932), Nevada (68,708), Michigan (60,786), Ohio (58,937), Georgia (56,391), Texas (49,144) and Virginia (28,368).
Report methodology
The RealtyTrac U.S. Foreclosure Market Report provides a count of the total number of properties with at least one foreclosure filing reported during the first half of the year at the state and national level. Data is also available at the individual county level. Data is collected from more than 2,200 counties nationwide, and those counties account for more than 90 percent of the U.S. population. RealtyTrac’s report incorporates documents filed in all three phases of foreclosure: Default — Notice of Default (NOD) and Lis Pendens (LIS); Auction — Notice of Trustee Sale and Notice of Foreclosure Sale (NTS and NFS); and Real Estate Owned, or REO properties (that have been foreclosed on and repurchased by a bank). If more than one foreclosure document is filed against a property during six-month period, only the most recent filing is counted in the report.
Rob Alley, Realtor at Keller Williams Charlottesville
540-250-3275 (cell)
roballeyrealtor@gmail.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.charlottesvillevarealestate.blogspot.com
http://www.charlottesvilleshortsale.com
http://www.theaverygroup.com
Monday, July 13, 2009
Why Banks Need Broker Price Opinions - BPOs
Why Banks Need Broker Price Opinions - BPOs: "Why Do Banks need Broker Price Opinions?
Asset managers and bank personnel make decisions on several properties every day. Reading through a lengthy 20 page appraisal and filtering out the critical information is a waste of their time. These asset managers need concise, financial documents that make their choices easier. That's why BPOs are so critical to their job. In addition, a BPO saves the bank over $200 per property compared with a standard appraisal. That money adds up quickly and saves the bank thousands and thousands of dollars a year.
Another reason BPOs are preferred by banks is that the turnaround time is much quicker than appraisals. BPOs can usually be performed by agents in under 48 hours. Many appraisers visit the property within 48 hours, but then require another day or two to process the information and create the full report."
Rob Alley, Realtor at Keller Williams Charlottesville
540-250-3275 (cell)
roballeyrealtor@gmail.com
http://www.robsellscharlottesville.com/
http://www.forestlakesliving.com/
http://www.charlottesvillevarealestate.blogspot.com/
http://www.charlottesvilleshortsale.com/
http://www.theaverygroup.com/
Asset managers and bank personnel make decisions on several properties every day. Reading through a lengthy 20 page appraisal and filtering out the critical information is a waste of their time. These asset managers need concise, financial documents that make their choices easier. That's why BPOs are so critical to their job. In addition, a BPO saves the bank over $200 per property compared with a standard appraisal. That money adds up quickly and saves the bank thousands and thousands of dollars a year.
Another reason BPOs are preferred by banks is that the turnaround time is much quicker than appraisals. BPOs can usually be performed by agents in under 48 hours. Many appraisers visit the property within 48 hours, but then require another day or two to process the information and create the full report."
Rob Alley, Realtor at Keller Williams Charlottesville
540-250-3275 (cell)
roballeyrealtor@gmail.com
http://www.robsellscharlottesville.com/
http://www.forestlakesliving.com/
http://www.charlottesvillevarealestate.blogspot.com/
http://www.charlottesvilleshortsale.com/
http://www.theaverygroup.com/
Why Banks Need Broker Price Opinions - BPOs
Why Banks Need Broker Price Opinions - BPOs: "Why Do Banks need Broker Price Opinions?
Asset managers and bank personnel make decisions on several properties every day. Reading through a lengthy 20 page appraisal and filtering out the critical information is a waste of their time. These asset managers need concise, financial documents that make their choices easier. That's why BPOs are so critical to their job. In addition, a BPO saves the bank over $200 per property compared with a standard appraisal. That money adds up quickly and saves the bank thousands and thousands of dollars a year.
Another reason BPOs are preferred by banks is that the turnaround time is much quicker than appraisals. BPOs can usually be performed by agents in under 48 hours. Many appraisers visit the property within 48 hours, but then require another day or two to process the information and create the full report."
Rob Alley, Realtor at Keller Williams Charlottesville
540-250-3275 (cell)
roballeyrealtor@gmail.com
http://www.robsellscharlottesville.com/
http://www.forestlakesliving.com/
http://www.charlottesvillevarealestate.blogspot.com/
http://www.charlottesvilleshortsale.com/
http://www.theaverygroup.com/
Asset managers and bank personnel make decisions on several properties every day. Reading through a lengthy 20 page appraisal and filtering out the critical information is a waste of their time. These asset managers need concise, financial documents that make their choices easier. That's why BPOs are so critical to their job. In addition, a BPO saves the bank over $200 per property compared with a standard appraisal. That money adds up quickly and saves the bank thousands and thousands of dollars a year.
Another reason BPOs are preferred by banks is that the turnaround time is much quicker than appraisals. BPOs can usually be performed by agents in under 48 hours. Many appraisers visit the property within 48 hours, but then require another day or two to process the information and create the full report."
Rob Alley, Realtor at Keller Williams Charlottesville
540-250-3275 (cell)
roballeyrealtor@gmail.com
http://www.robsellscharlottesville.com/
http://www.forestlakesliving.com/
http://www.charlottesvillevarealestate.blogspot.com/
http://www.charlottesvilleshortsale.com/
http://www.theaverygroup.com/
What is a Broker Price Opinions - BPO?
Why Banks Need Broker Price Opinions - BPOs: "When a bank or asset manager obtains a new foreclosed listing to sell, they immediately need to know the home's value. Typically a bank will assign one to three agents to evaluate the approximate selling value of a home. These banks expect each agent to submit three comparable sold listings and three comparable active listings as well as an estimate of what the agent thinks the home will sell for.
A Broker Price Opinion is not as detailed as an appraisal and does not entail as much work. BPOs differ from Appraisals in a number of ways:
Appraisals typically cost over $300. Most BPOs pay brokers between $50 and $100.
Appraisals require detailed square footage measurements. BPOs rely on county assessors' recorded measurements.
Appraisals use a standard format recognized and used by lenders and mortgage professionals for precise property valuations. BPO's are prepared in different formats and are used simply as decision making tools for asset managers of each bank.
Appraisals are typically 15-20 pages long with detailed information on each aspect of a property. BPO's are usually 2 pages long with information pertaining only to a final selling price."
Rob Alley, Realtor at Keller Williams Charlottesville
540-250-3275 (cell)
roballeyrealtor@gmail.com
http://www.robsellscharlottesville.com/
http://www.forestlakesliving.com/
http://www.charlottesvillevarealestate.blogspot.com/
http://www.charlottesvilleshortsale.com/
http://www.theaverygroup.com/
A Broker Price Opinion is not as detailed as an appraisal and does not entail as much work. BPOs differ from Appraisals in a number of ways:
Appraisals typically cost over $300. Most BPOs pay brokers between $50 and $100.
Appraisals require detailed square footage measurements. BPOs rely on county assessors' recorded measurements.
Appraisals use a standard format recognized and used by lenders and mortgage professionals for precise property valuations. BPO's are prepared in different formats and are used simply as decision making tools for asset managers of each bank.
Appraisals are typically 15-20 pages long with detailed information on each aspect of a property. BPO's are usually 2 pages long with information pertaining only to a final selling price."
Rob Alley, Realtor at Keller Williams Charlottesville
540-250-3275 (cell)
roballeyrealtor@gmail.com
http://www.robsellscharlottesville.com/
http://www.forestlakesliving.com/
http://www.charlottesvillevarealestate.blogspot.com/
http://www.charlottesvilleshortsale.com/
http://www.theaverygroup.com/
What is a Broker Price Opinions - BPO?
Why Banks Need Broker Price Opinions - BPOs: "When a bank or asset manager obtains a new foreclosed listing to sell, they immediately need to know the home's value. Typically a bank will assign one to three agents to evaluate the approximate selling value of a home. These banks expect each agent to submit three comparable sold listings and three comparable active listings as well as an estimate of what the agent thinks the home will sell for.
A Broker Price Opinion is not as detailed as an appraisal and does not entail as much work. BPOs differ from Appraisals in a number of ways:
Appraisals typically cost over $300. Most BPOs pay brokers between $50 and $100.
Appraisals require detailed square footage measurements. BPOs rely on county assessors' recorded measurements.
Appraisals use a standard format recognized and used by lenders and mortgage professionals for precise property valuations. BPO's are prepared in different formats and are used simply as decision making tools for asset managers of each bank.
Appraisals are typically 15-20 pages long with detailed information on each aspect of a property. BPO's are usually 2 pages long with information pertaining only to a final selling price."
Rob Alley, Realtor at Keller Williams Charlottesville
540-250-3275 (cell)
roballeyrealtor@gmail.com
http://www.robsellscharlottesville.com/
http://www.forestlakesliving.com/
http://www.charlottesvillevarealestate.blogspot.com/
http://www.charlottesvilleshortsale.com/
http://www.theaverygroup.com/
A Broker Price Opinion is not as detailed as an appraisal and does not entail as much work. BPOs differ from Appraisals in a number of ways:
Appraisals typically cost over $300. Most BPOs pay brokers between $50 and $100.
Appraisals require detailed square footage measurements. BPOs rely on county assessors' recorded measurements.
Appraisals use a standard format recognized and used by lenders and mortgage professionals for precise property valuations. BPO's are prepared in different formats and are used simply as decision making tools for asset managers of each bank.
Appraisals are typically 15-20 pages long with detailed information on each aspect of a property. BPO's are usually 2 pages long with information pertaining only to a final selling price."
Rob Alley, Realtor at Keller Williams Charlottesville
540-250-3275 (cell)
roballeyrealtor@gmail.com
http://www.robsellscharlottesville.com/
http://www.forestlakesliving.com/
http://www.charlottesvillevarealestate.blogspot.com/
http://www.charlottesvilleshortsale.com/
http://www.theaverygroup.com/
Friday, July 10, 2009
Charlottesville Real Estate Market 2009 Mid Year Report
The Charlottesville Real Estate Market Report was release yesterday. I have shared the information with you below:
CAAR Market Report
2009 Mid-Year
Published by the Charlottesville Area Association of REALTORS®
Where Are We Now?
The pace of home purchases in the Charlottesville area continues to improve from the dismal 4th quarter of 2008, but sales lag well behind compared to last year. The sale of homes has been increasing month to month for six months in a row. The steady improvement is easy to predict with the seasonal upswing the market naturally experiences this time of year, but based on pending sales in the MLS, we may continue to see sales increase beyond the seasonal selling season. For the first time in many months, the number of contracts in June was up from the previous year. It will be interesting to see if this trend continues.
Fueling these homes sales is the significant decrease in real estate prices. This report will detail some statistics that indicate that home prices have fallen steeply (20% or more) and this has resulted in an increase in sales. There is some evidence that sellers are starting to embrace the current market environment and price their home accordingly. The average Days on Market (DOM) has been dropping in recent months, and the median time a property takes to sell is now only 75 days. That indicates that many homes – likely the ones priced correctly – are selling quickly.
Mid-Year Home Sales
There were 1131 homes sold in the Charlottesville area during the first six months of 2009, which was down 28% (-440 sales) from 2008. After the 1st quarter, annualized sales were down 33.9%, which demonstrates the 2nd quarter improvement. All local areas were down from last year: Albemarle -15.6%, Charlottesville -35.2%, Fluvanna -34.7%, Greene -24.5%, Louisa -38.4%, Nelson -39%, and Orange – 47.1%. Monthly sales for the region have improved slightly each month since November 2008, but much of that can be attributed to seasonal swings.
Sales in the Central Valley region were generated from the Greater Augusta MLS, which has more complete data on the Valley market than the CAAR MLS. Sales were down in the Valley by 25.5 % compared to last year.
Have Home Prices Slipped?
Based on the data from the CAAR MLS, we believe that the numbers clearly show a significant decrease in home prices. The median prices listed below are the middle of the market of properties that sold. Simply put, this is an indication of what buyers were willing/able to pay and is not a true reflection of individual home prices. It is probably safe to assume that a steady, year-to-year decrease in the median price is a good indication that prices are going down, but it is not an exact measurement.
We believe the number displays below provide compelling evidence that our local real estate market has experienced a noteworthy drop in home prices. The CAAR market reports have been discussing this trend since the Fall of 2007, but this report finally shows clear evidence of the decline. The one caveat that we need to make is that part of this median price decline is a reflection of an increase in home sales in the lower price ranges. Of the 719 homes that sold in the 2nd quarter, 509 were sold for $300,000 or less. This surge in the lower end of the market will naturally pull the median price down.
Each property is affected differently by this price decline. The only way to know what your home will sell for is to have a REALTOR® or appraiser prepare a comparative market analysis (CMA) for your property. This market is changing very quickly and to be up-to-date, you need to do a CMA every two weeks. Pricing a property correctly is the best way to sell it!
Overall, the median home price (including attached homes) declined $22,900 (-8.5%) compared to the first half of last year. All areas covered in this report showed a decline. Median prices for other locales include: Albemarle (-9.4%), Charlottesville (-6.8%), Fluvanna (-19.6%), Greene (-3.4%) Louisa (-20.8%), Nelson (-6.7%) Orange (-29.7%) and the Valley (-8%).
Median Sales Prices
Price Per Square Foot (Finished)
Another indicator that allows us to see the drop in home prices is a major drop in the price per square foot numbers. The average price per square foot of finished space in homes is not a scientific number, but a downward trend over the years clearly indicates a decrease in prices (and vice versa). According to the chart below, prices peaked in 2006 and have declined for the past three years. The $18 per square foot drop in 2009 is by far the largest decline we have experienced in recent years.
Inventory Heading in the Right Direction
The inventory of homes for sale in the Charlottesville area generally increases in the first half of the year, with many homes coming on the market for the spring selling season. The good news is that in 2009 we have seen the inventory of homes shrink – not enough, but it is heading in the right direction. Having this excess of inventory is causing many of the problems with our local housing market. Until we are able to reduce the number of homes for sale, we will continue to be in a strong buyer’s market with soft home prices and very creative incentives. That’s good for buyers, but it is not any better for the long-term housing market than the strong seller’s market we experienced just a few years ago.
Currently, we have 3,602 homes on the market, compared to 3,761 at this time last year. This small decrease from last year is a positive sign, but we have a long way to go before we see appropriate inventory levels in the 2,000 to 2,500 range. The median price of homes currently for sale is $299,000, which is $9,900 less than last year. The average DOM (days on market) of these homes is 155 days, which is four days more than last year and 30 days more than homes that have sold. The most telling statistic related to homes currently on the market is that the average price per square foot is $203 compared to $143 for homes that have sold in the first 6 months of 2009.
Housing affordability is the positive aspect of this market. There are 871 homes for sale $200,000 or less with an average DOM of 141 and an average price per square foot of $143. There are 289 homes currently on the market priced at a million dollars or more with an average DOM of 226.
Days on Market (DOM)
The average number of days a property is on the market is a great indicator of a housing market’s strength. The average DOM for the Charlottesville area has been steadily increasing for the past several quarters. This trend continued in the 2nd quarter, but the increase was just 3 days more than 2008’s mid-year number. Although the increase was only a modest 3 days, it still supports the fact that we have too many homes on the market for the amount of sales. Until we work the inventory of available homes down to a more manageable number, DOM will stay high. A balanced market should have a DOM of approximately 90, but we have not been in that range since 2007.
New Construction Still Slow
It is important to note that many “new” homes are not included in CAAR MLS statistics. It is very common for a buyer to contact a builder directly to custom build a home. With that said, the historical perspective of the pace of new home sales gives us a reasonably good picture of the market for new construction. As the chart below shows, new home sales are still struggling and until the inventory of homes for sale declines, new construction will lag.
Condos and Townhomes (Attached Homes)
The sale of attached homes is only reported in Charlottesville and Albemarle because very few properties in this category are located in other counties, except Nelson. Since the condos in Nelson are primarily in the Wintergreen Resort market, we have decided not to include them in this report. One of the more interesting numbers in this report is the small increase in the sale of attached homes in Albemarle that first showed up in the 2009 1st Quarter Market Report. Charlottesville attached home sales are down 33.3%, while Albemarle sales edged up 1.8% compared to 2008. The chart below shows the attached homes sold in 2009 compared to past years. Inventory levels of attached homes for sale are still high, with an average DOM of 174 for properties currently on the market. The median price of an attached home currently on the market is $219,900. The median price for an attached home that sold in the first six months of 2009 is $223,000 for Albemarle and $239,388 for Charlottesville.
Conclusions and Predictions
Although we have been recommending the need for sellers to reduce their prices under the current market conditions, evidence of these price reductions has not shown up until this quarterly report. There is a direct relation between lower prices and higher sales. As more and more sellers price their properties according to the current market, sales should continue to increase. Increased sales is not something we normally see in the second half of the year, but this year, fueled by realistic prices, low interest rates, tax credits, and pent-up demand, may be an exception. We should see a slow but steady improvement in the number of sales for the balance of the year.
By the 4th quarter of 2009, we will likely see a year-to-year sales improvement, but only because the 4th quarter of 2008 was so bad it will be hard not to beat. 2009 is slowly heading in a positive direction in terms of sales and inventory levels and we expect that trend to continue. We may see more evidence of price declines in future market reports as more and more sellers accept the reality of this market. Additional declines in prices are possible, but it will be hard to tell if these price drops are a result of more sellers finally pricing their properties based on the current market, or a real decline in home values. Only time, and future market reports, will reveal this to us.
This Quarterly Market Report is produced by the Charlottesville Area Association of REALTORS® using data from the CAAR MLS and the Greater Augusta MLS where noted. For more information on this report or the real estate market, pick up a copy of the CAAR Real Estate Weekly, visit www.caar.com, or contact your REALTOR®.
Rob Alley, Realtor at Keller Williams Charlottesville
540-250-3275 (cell)
roballeyrealtor@gmail.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.charlottesvillevarealestate.blogspot.com
http://www.charlottesvilleshortsale.com
http://www.theaverygroup.com
CAAR Market Report
2009 Mid-Year
Published by the Charlottesville Area Association of REALTORS®
Where Are We Now?
The pace of home purchases in the Charlottesville area continues to improve from the dismal 4th quarter of 2008, but sales lag well behind compared to last year. The sale of homes has been increasing month to month for six months in a row. The steady improvement is easy to predict with the seasonal upswing the market naturally experiences this time of year, but based on pending sales in the MLS, we may continue to see sales increase beyond the seasonal selling season. For the first time in many months, the number of contracts in June was up from the previous year. It will be interesting to see if this trend continues.
Fueling these homes sales is the significant decrease in real estate prices. This report will detail some statistics that indicate that home prices have fallen steeply (20% or more) and this has resulted in an increase in sales. There is some evidence that sellers are starting to embrace the current market environment and price their home accordingly. The average Days on Market (DOM) has been dropping in recent months, and the median time a property takes to sell is now only 75 days. That indicates that many homes – likely the ones priced correctly – are selling quickly.
Mid-Year Home Sales
There were 1131 homes sold in the Charlottesville area during the first six months of 2009, which was down 28% (-440 sales) from 2008. After the 1st quarter, annualized sales were down 33.9%, which demonstrates the 2nd quarter improvement. All local areas were down from last year: Albemarle -15.6%, Charlottesville -35.2%, Fluvanna -34.7%, Greene -24.5%, Louisa -38.4%, Nelson -39%, and Orange – 47.1%. Monthly sales for the region have improved slightly each month since November 2008, but much of that can be attributed to seasonal swings.
Sales in the Central Valley region were generated from the Greater Augusta MLS, which has more complete data on the Valley market than the CAAR MLS. Sales were down in the Valley by 25.5 % compared to last year.
Have Home Prices Slipped?
Based on the data from the CAAR MLS, we believe that the numbers clearly show a significant decrease in home prices. The median prices listed below are the middle of the market of properties that sold. Simply put, this is an indication of what buyers were willing/able to pay and is not a true reflection of individual home prices. It is probably safe to assume that a steady, year-to-year decrease in the median price is a good indication that prices are going down, but it is not an exact measurement.
We believe the number displays below provide compelling evidence that our local real estate market has experienced a noteworthy drop in home prices. The CAAR market reports have been discussing this trend since the Fall of 2007, but this report finally shows clear evidence of the decline. The one caveat that we need to make is that part of this median price decline is a reflection of an increase in home sales in the lower price ranges. Of the 719 homes that sold in the 2nd quarter, 509 were sold for $300,000 or less. This surge in the lower end of the market will naturally pull the median price down.
Each property is affected differently by this price decline. The only way to know what your home will sell for is to have a REALTOR® or appraiser prepare a comparative market analysis (CMA) for your property. This market is changing very quickly and to be up-to-date, you need to do a CMA every two weeks. Pricing a property correctly is the best way to sell it!
Overall, the median home price (including attached homes) declined $22,900 (-8.5%) compared to the first half of last year. All areas covered in this report showed a decline. Median prices for other locales include: Albemarle (-9.4%), Charlottesville (-6.8%), Fluvanna (-19.6%), Greene (-3.4%) Louisa (-20.8%), Nelson (-6.7%) Orange (-29.7%) and the Valley (-8%).
Median Sales Prices
Price Per Square Foot (Finished)
Another indicator that allows us to see the drop in home prices is a major drop in the price per square foot numbers. The average price per square foot of finished space in homes is not a scientific number, but a downward trend over the years clearly indicates a decrease in prices (and vice versa). According to the chart below, prices peaked in 2006 and have declined for the past three years. The $18 per square foot drop in 2009 is by far the largest decline we have experienced in recent years.
Inventory Heading in the Right Direction
The inventory of homes for sale in the Charlottesville area generally increases in the first half of the year, with many homes coming on the market for the spring selling season. The good news is that in 2009 we have seen the inventory of homes shrink – not enough, but it is heading in the right direction. Having this excess of inventory is causing many of the problems with our local housing market. Until we are able to reduce the number of homes for sale, we will continue to be in a strong buyer’s market with soft home prices and very creative incentives. That’s good for buyers, but it is not any better for the long-term housing market than the strong seller’s market we experienced just a few years ago.
Currently, we have 3,602 homes on the market, compared to 3,761 at this time last year. This small decrease from last year is a positive sign, but we have a long way to go before we see appropriate inventory levels in the 2,000 to 2,500 range. The median price of homes currently for sale is $299,000, which is $9,900 less than last year. The average DOM (days on market) of these homes is 155 days, which is four days more than last year and 30 days more than homes that have sold. The most telling statistic related to homes currently on the market is that the average price per square foot is $203 compared to $143 for homes that have sold in the first 6 months of 2009.
Housing affordability is the positive aspect of this market. There are 871 homes for sale $200,000 or less with an average DOM of 141 and an average price per square foot of $143. There are 289 homes currently on the market priced at a million dollars or more with an average DOM of 226.
Days on Market (DOM)
The average number of days a property is on the market is a great indicator of a housing market’s strength. The average DOM for the Charlottesville area has been steadily increasing for the past several quarters. This trend continued in the 2nd quarter, but the increase was just 3 days more than 2008’s mid-year number. Although the increase was only a modest 3 days, it still supports the fact that we have too many homes on the market for the amount of sales. Until we work the inventory of available homes down to a more manageable number, DOM will stay high. A balanced market should have a DOM of approximately 90, but we have not been in that range since 2007.
New Construction Still Slow
It is important to note that many “new” homes are not included in CAAR MLS statistics. It is very common for a buyer to contact a builder directly to custom build a home. With that said, the historical perspective of the pace of new home sales gives us a reasonably good picture of the market for new construction. As the chart below shows, new home sales are still struggling and until the inventory of homes for sale declines, new construction will lag.
Condos and Townhomes (Attached Homes)
The sale of attached homes is only reported in Charlottesville and Albemarle because very few properties in this category are located in other counties, except Nelson. Since the condos in Nelson are primarily in the Wintergreen Resort market, we have decided not to include them in this report. One of the more interesting numbers in this report is the small increase in the sale of attached homes in Albemarle that first showed up in the 2009 1st Quarter Market Report. Charlottesville attached home sales are down 33.3%, while Albemarle sales edged up 1.8% compared to 2008. The chart below shows the attached homes sold in 2009 compared to past years. Inventory levels of attached homes for sale are still high, with an average DOM of 174 for properties currently on the market. The median price of an attached home currently on the market is $219,900. The median price for an attached home that sold in the first six months of 2009 is $223,000 for Albemarle and $239,388 for Charlottesville.
Conclusions and Predictions
Although we have been recommending the need for sellers to reduce their prices under the current market conditions, evidence of these price reductions has not shown up until this quarterly report. There is a direct relation between lower prices and higher sales. As more and more sellers price their properties according to the current market, sales should continue to increase. Increased sales is not something we normally see in the second half of the year, but this year, fueled by realistic prices, low interest rates, tax credits, and pent-up demand, may be an exception. We should see a slow but steady improvement in the number of sales for the balance of the year.
By the 4th quarter of 2009, we will likely see a year-to-year sales improvement, but only because the 4th quarter of 2008 was so bad it will be hard not to beat. 2009 is slowly heading in a positive direction in terms of sales and inventory levels and we expect that trend to continue. We may see more evidence of price declines in future market reports as more and more sellers accept the reality of this market. Additional declines in prices are possible, but it will be hard to tell if these price drops are a result of more sellers finally pricing their properties based on the current market, or a real decline in home values. Only time, and future market reports, will reveal this to us.
This Quarterly Market Report is produced by the Charlottesville Area Association of REALTORS® using data from the CAAR MLS and the Greater Augusta MLS where noted. For more information on this report or the real estate market, pick up a copy of the CAAR Real Estate Weekly, visit www.caar.com, or contact your REALTOR®.
Rob Alley, Realtor at Keller Williams Charlottesville
540-250-3275 (cell)
roballeyrealtor@gmail.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.charlottesvillevarealestate.blogspot.com
http://www.charlottesvilleshortsale.com
http://www.theaverygroup.com
Charlottesville Real Estate Market 2009 Mid Year Report
The Charlottesville Real Estate Market Report was release yesterday. I have shared the information with you below:
CAAR Market Report
2009 Mid-Year
Published by the Charlottesville Area Association of REALTORS®
Where Are We Now?
The pace of home purchases in the Charlottesville area continues to improve from the dismal 4th quarter of 2008, but sales lag well behind compared to last year. The sale of homes has been increasing month to month for six months in a row. The steady improvement is easy to predict with the seasonal upswing the market naturally experiences this time of year, but based on pending sales in the MLS, we may continue to see sales increase beyond the seasonal selling season. For the first time in many months, the number of contracts in June was up from the previous year. It will be interesting to see if this trend continues.
Fueling these homes sales is the significant decrease in real estate prices. This report will detail some statistics that indicate that home prices have fallen steeply (20% or more) and this has resulted in an increase in sales. There is some evidence that sellers are starting to embrace the current market environment and price their home accordingly. The average Days on Market (DOM) has been dropping in recent months, and the median time a property takes to sell is now only 75 days. That indicates that many homes – likely the ones priced correctly – are selling quickly.
Mid-Year Home Sales
There were 1131 homes sold in the Charlottesville area during the first six months of 2009, which was down 28% (-440 sales) from 2008. After the 1st quarter, annualized sales were down 33.9%, which demonstrates the 2nd quarter improvement. All local areas were down from last year: Albemarle -15.6%, Charlottesville -35.2%, Fluvanna -34.7%, Greene -24.5%, Louisa -38.4%, Nelson -39%, and Orange – 47.1%. Monthly sales for the region have improved slightly each month since November 2008, but much of that can be attributed to seasonal swings.
Sales in the Central Valley region were generated from the Greater Augusta MLS, which has more complete data on the Valley market than the CAAR MLS. Sales were down in the Valley by 25.5 % compared to last year.
Have Home Prices Slipped?
Based on the data from the CAAR MLS, we believe that the numbers clearly show a significant decrease in home prices. The median prices listed below are the middle of the market of properties that sold. Simply put, this is an indication of what buyers were willing/able to pay and is not a true reflection of individual home prices. It is probably safe to assume that a steady, year-to-year decrease in the median price is a good indication that prices are going down, but it is not an exact measurement.
We believe the number displays below provide compelling evidence that our local real estate market has experienced a noteworthy drop in home prices. The CAAR market reports have been discussing this trend since the Fall of 2007, but this report finally shows clear evidence of the decline. The one caveat that we need to make is that part of this median price decline is a reflection of an increase in home sales in the lower price ranges. Of the 719 homes that sold in the 2nd quarter, 509 were sold for $300,000 or less. This surge in the lower end of the market will naturally pull the median price down.
Each property is affected differently by this price decline. The only way to know what your home will sell for is to have a REALTOR® or appraiser prepare a comparative market analysis (CMA) for your property. This market is changing very quickly and to be up-to-date, you need to do a CMA every two weeks. Pricing a property correctly is the best way to sell it!
Overall, the median home price (including attached homes) declined $22,900 (-8.5%) compared to the first half of last year. All areas covered in this report showed a decline. Median prices for other locales include: Albemarle (-9.4%), Charlottesville (-6.8%), Fluvanna (-19.6%), Greene (-3.4%) Louisa (-20.8%), Nelson (-6.7%) Orange (-29.7%) and the Valley (-8%).
Median Sales Prices
Price Per Square Foot (Finished)
Another indicator that allows us to see the drop in home prices is a major drop in the price per square foot numbers. The average price per square foot of finished space in homes is not a scientific number, but a downward trend over the years clearly indicates a decrease in prices (and vice versa). According to the chart below, prices peaked in 2006 and have declined for the past three years. The $18 per square foot drop in 2009 is by far the largest decline we have experienced in recent years.
Inventory Heading in the Right Direction
The inventory of homes for sale in the Charlottesville area generally increases in the first half of the year, with many homes coming on the market for the spring selling season. The good news is that in 2009 we have seen the inventory of homes shrink – not enough, but it is heading in the right direction. Having this excess of inventory is causing many of the problems with our local housing market. Until we are able to reduce the number of homes for sale, we will continue to be in a strong buyer’s market with soft home prices and very creative incentives. That’s good for buyers, but it is not any better for the long-term housing market than the strong seller’s market we experienced just a few years ago.
Currently, we have 3,602 homes on the market, compared to 3,761 at this time last year. This small decrease from last year is a positive sign, but we have a long way to go before we see appropriate inventory levels in the 2,000 to 2,500 range. The median price of homes currently for sale is $299,000, which is $9,900 less than last year. The average DOM (days on market) of these homes is 155 days, which is four days more than last year and 30 days more than homes that have sold. The most telling statistic related to homes currently on the market is that the average price per square foot is $203 compared to $143 for homes that have sold in the first 6 months of 2009.
Housing affordability is the positive aspect of this market. There are 871 homes for sale $200,000 or less with an average DOM of 141 and an average price per square foot of $143. There are 289 homes currently on the market priced at a million dollars or more with an average DOM of 226.
Days on Market (DOM)
The average number of days a property is on the market is a great indicator of a housing market’s strength. The average DOM for the Charlottesville area has been steadily increasing for the past several quarters. This trend continued in the 2nd quarter, but the increase was just 3 days more than 2008’s mid-year number. Although the increase was only a modest 3 days, it still supports the fact that we have too many homes on the market for the amount of sales. Until we work the inventory of available homes down to a more manageable number, DOM will stay high. A balanced market should have a DOM of approximately 90, but we have not been in that range since 2007.
New Construction Still Slow
It is important to note that many “new” homes are not included in CAAR MLS statistics. It is very common for a buyer to contact a builder directly to custom build a home. With that said, the historical perspective of the pace of new home sales gives us a reasonably good picture of the market for new construction. As the chart below shows, new home sales are still struggling and until the inventory of homes for sale declines, new construction will lag.
Condos and Townhomes (Attached Homes)
The sale of attached homes is only reported in Charlottesville and Albemarle because very few properties in this category are located in other counties, except Nelson. Since the condos in Nelson are primarily in the Wintergreen Resort market, we have decided not to include them in this report. One of the more interesting numbers in this report is the small increase in the sale of attached homes in Albemarle that first showed up in the 2009 1st Quarter Market Report. Charlottesville attached home sales are down 33.3%, while Albemarle sales edged up 1.8% compared to 2008. The chart below shows the attached homes sold in 2009 compared to past years. Inventory levels of attached homes for sale are still high, with an average DOM of 174 for properties currently on the market. The median price of an attached home currently on the market is $219,900. The median price for an attached home that sold in the first six months of 2009 is $223,000 for Albemarle and $239,388 for Charlottesville.
Conclusions and Predictions
Although we have been recommending the need for sellers to reduce their prices under the current market conditions, evidence of these price reductions has not shown up until this quarterly report. There is a direct relation between lower prices and higher sales. As more and more sellers price their properties according to the current market, sales should continue to increase. Increased sales is not something we normally see in the second half of the year, but this year, fueled by realistic prices, low interest rates, tax credits, and pent-up demand, may be an exception. We should see a slow but steady improvement in the number of sales for the balance of the year.
By the 4th quarter of 2009, we will likely see a year-to-year sales improvement, but only because the 4th quarter of 2008 was so bad it will be hard not to beat. 2009 is slowly heading in a positive direction in terms of sales and inventory levels and we expect that trend to continue. We may see more evidence of price declines in future market reports as more and more sellers accept the reality of this market. Additional declines in prices are possible, but it will be hard to tell if these price drops are a result of more sellers finally pricing their properties based on the current market, or a real decline in home values. Only time, and future market reports, will reveal this to us.
This Quarterly Market Report is produced by the Charlottesville Area Association of REALTORS® using data from the CAAR MLS and the Greater Augusta MLS where noted. For more information on this report or the real estate market, pick up a copy of the CAAR Real Estate Weekly, visit www.caar.com, or contact your REALTOR®.
Rob Alley, Realtor at Keller Williams Charlottesville
540-250-3275 (cell)
roballeyrealtor@gmail.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.charlottesvillevarealestate.blogspot.com
http://www.charlottesvilleshortsale.com
http://www.theaverygroup.com
CAAR Market Report
2009 Mid-Year
Published by the Charlottesville Area Association of REALTORS®
Where Are We Now?
The pace of home purchases in the Charlottesville area continues to improve from the dismal 4th quarter of 2008, but sales lag well behind compared to last year. The sale of homes has been increasing month to month for six months in a row. The steady improvement is easy to predict with the seasonal upswing the market naturally experiences this time of year, but based on pending sales in the MLS, we may continue to see sales increase beyond the seasonal selling season. For the first time in many months, the number of contracts in June was up from the previous year. It will be interesting to see if this trend continues.
Fueling these homes sales is the significant decrease in real estate prices. This report will detail some statistics that indicate that home prices have fallen steeply (20% or more) and this has resulted in an increase in sales. There is some evidence that sellers are starting to embrace the current market environment and price their home accordingly. The average Days on Market (DOM) has been dropping in recent months, and the median time a property takes to sell is now only 75 days. That indicates that many homes – likely the ones priced correctly – are selling quickly.
Mid-Year Home Sales
There were 1131 homes sold in the Charlottesville area during the first six months of 2009, which was down 28% (-440 sales) from 2008. After the 1st quarter, annualized sales were down 33.9%, which demonstrates the 2nd quarter improvement. All local areas were down from last year: Albemarle -15.6%, Charlottesville -35.2%, Fluvanna -34.7%, Greene -24.5%, Louisa -38.4%, Nelson -39%, and Orange – 47.1%. Monthly sales for the region have improved slightly each month since November 2008, but much of that can be attributed to seasonal swings.
Sales in the Central Valley region were generated from the Greater Augusta MLS, which has more complete data on the Valley market than the CAAR MLS. Sales were down in the Valley by 25.5 % compared to last year.
Have Home Prices Slipped?
Based on the data from the CAAR MLS, we believe that the numbers clearly show a significant decrease in home prices. The median prices listed below are the middle of the market of properties that sold. Simply put, this is an indication of what buyers were willing/able to pay and is not a true reflection of individual home prices. It is probably safe to assume that a steady, year-to-year decrease in the median price is a good indication that prices are going down, but it is not an exact measurement.
We believe the number displays below provide compelling evidence that our local real estate market has experienced a noteworthy drop in home prices. The CAAR market reports have been discussing this trend since the Fall of 2007, but this report finally shows clear evidence of the decline. The one caveat that we need to make is that part of this median price decline is a reflection of an increase in home sales in the lower price ranges. Of the 719 homes that sold in the 2nd quarter, 509 were sold for $300,000 or less. This surge in the lower end of the market will naturally pull the median price down.
Each property is affected differently by this price decline. The only way to know what your home will sell for is to have a REALTOR® or appraiser prepare a comparative market analysis (CMA) for your property. This market is changing very quickly and to be up-to-date, you need to do a CMA every two weeks. Pricing a property correctly is the best way to sell it!
Overall, the median home price (including attached homes) declined $22,900 (-8.5%) compared to the first half of last year. All areas covered in this report showed a decline. Median prices for other locales include: Albemarle (-9.4%), Charlottesville (-6.8%), Fluvanna (-19.6%), Greene (-3.4%) Louisa (-20.8%), Nelson (-6.7%) Orange (-29.7%) and the Valley (-8%).
Median Sales Prices
Price Per Square Foot (Finished)
Another indicator that allows us to see the drop in home prices is a major drop in the price per square foot numbers. The average price per square foot of finished space in homes is not a scientific number, but a downward trend over the years clearly indicates a decrease in prices (and vice versa). According to the chart below, prices peaked in 2006 and have declined for the past three years. The $18 per square foot drop in 2009 is by far the largest decline we have experienced in recent years.
Inventory Heading in the Right Direction
The inventory of homes for sale in the Charlottesville area generally increases in the first half of the year, with many homes coming on the market for the spring selling season. The good news is that in 2009 we have seen the inventory of homes shrink – not enough, but it is heading in the right direction. Having this excess of inventory is causing many of the problems with our local housing market. Until we are able to reduce the number of homes for sale, we will continue to be in a strong buyer’s market with soft home prices and very creative incentives. That’s good for buyers, but it is not any better for the long-term housing market than the strong seller’s market we experienced just a few years ago.
Currently, we have 3,602 homes on the market, compared to 3,761 at this time last year. This small decrease from last year is a positive sign, but we have a long way to go before we see appropriate inventory levels in the 2,000 to 2,500 range. The median price of homes currently for sale is $299,000, which is $9,900 less than last year. The average DOM (days on market) of these homes is 155 days, which is four days more than last year and 30 days more than homes that have sold. The most telling statistic related to homes currently on the market is that the average price per square foot is $203 compared to $143 for homes that have sold in the first 6 months of 2009.
Housing affordability is the positive aspect of this market. There are 871 homes for sale $200,000 or less with an average DOM of 141 and an average price per square foot of $143. There are 289 homes currently on the market priced at a million dollars or more with an average DOM of 226.
Days on Market (DOM)
The average number of days a property is on the market is a great indicator of a housing market’s strength. The average DOM for the Charlottesville area has been steadily increasing for the past several quarters. This trend continued in the 2nd quarter, but the increase was just 3 days more than 2008’s mid-year number. Although the increase was only a modest 3 days, it still supports the fact that we have too many homes on the market for the amount of sales. Until we work the inventory of available homes down to a more manageable number, DOM will stay high. A balanced market should have a DOM of approximately 90, but we have not been in that range since 2007.
New Construction Still Slow
It is important to note that many “new” homes are not included in CAAR MLS statistics. It is very common for a buyer to contact a builder directly to custom build a home. With that said, the historical perspective of the pace of new home sales gives us a reasonably good picture of the market for new construction. As the chart below shows, new home sales are still struggling and until the inventory of homes for sale declines, new construction will lag.
Condos and Townhomes (Attached Homes)
The sale of attached homes is only reported in Charlottesville and Albemarle because very few properties in this category are located in other counties, except Nelson. Since the condos in Nelson are primarily in the Wintergreen Resort market, we have decided not to include them in this report. One of the more interesting numbers in this report is the small increase in the sale of attached homes in Albemarle that first showed up in the 2009 1st Quarter Market Report. Charlottesville attached home sales are down 33.3%, while Albemarle sales edged up 1.8% compared to 2008. The chart below shows the attached homes sold in 2009 compared to past years. Inventory levels of attached homes for sale are still high, with an average DOM of 174 for properties currently on the market. The median price of an attached home currently on the market is $219,900. The median price for an attached home that sold in the first six months of 2009 is $223,000 for Albemarle and $239,388 for Charlottesville.
Conclusions and Predictions
Although we have been recommending the need for sellers to reduce their prices under the current market conditions, evidence of these price reductions has not shown up until this quarterly report. There is a direct relation between lower prices and higher sales. As more and more sellers price their properties according to the current market, sales should continue to increase. Increased sales is not something we normally see in the second half of the year, but this year, fueled by realistic prices, low interest rates, tax credits, and pent-up demand, may be an exception. We should see a slow but steady improvement in the number of sales for the balance of the year.
By the 4th quarter of 2009, we will likely see a year-to-year sales improvement, but only because the 4th quarter of 2008 was so bad it will be hard not to beat. 2009 is slowly heading in a positive direction in terms of sales and inventory levels and we expect that trend to continue. We may see more evidence of price declines in future market reports as more and more sellers accept the reality of this market. Additional declines in prices are possible, but it will be hard to tell if these price drops are a result of more sellers finally pricing their properties based on the current market, or a real decline in home values. Only time, and future market reports, will reveal this to us.
This Quarterly Market Report is produced by the Charlottesville Area Association of REALTORS® using data from the CAAR MLS and the Greater Augusta MLS where noted. For more information on this report or the real estate market, pick up a copy of the CAAR Real Estate Weekly, visit www.caar.com, or contact your REALTOR®.
Rob Alley, Realtor at Keller Williams Charlottesville
540-250-3275 (cell)
roballeyrealtor@gmail.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.charlottesvillevarealestate.blogspot.com
http://www.charlottesvilleshortsale.com
http://www.theaverygroup.com
Wednesday, July 8, 2009
Charlottesville Real Estate Market Trends - Months of Inventory
Here is a graph showing the trending of the Charlottesville Real Estate Market with regards to Months of Inventory:
As you can see by the trending line in the graph, our Months of Inventory has been steadily increasing since May of 2007. This is the exact same trend line Northern Virginia saw from 2006 to 2007. This is the first example of why I think our Market is heading the same way Northern Virginia has already gone. The Real Estate Market there is dominated by REO's (bank-owned properties) and short sale. Charlottesville needs to get ready for the short sales. It is coming fast and its about time people stop trying to fight it. Over the next couple of posts, we will look at other trends that tell the same story and just as frightening.
Charlottesville Real Estate Agents: Please don't mislead your clients telling them the market is getting better or rebounding. The agents that look their friends, family and clients in the eye and tell the truth are the ones that will be standing when this is over.
Rob Alley, Realtor at Keller Williams Charlottesville
540-250-3275 (cell)
roballeyrealtor@gmail.com
http://www.robsellscharlottesville.com/
http://www.forestlakesliving.com/
http://www.charlottesvillevarealestate.blogspot.com/
http://www.charlottesvilleshortsale.com/
http://www.theaverygroup.com/
Charlottesville Real Estate Market Trends - Months of Inventory
Here is a graph showing the trending of the Charlottesville Real Estate Market with regards to Months of Inventory:
As you can see by the trending line in the graph, our Months of Inventory has been steadily increasing since May of 2007. This is the exact same trend line Northern Virginia saw from 2006 to 2007. This is the first example of why I think our Market is heading the same way Northern Virginia has already gone. The Real Estate Market there is dominated by REO's (bank-owned properties) and short sale. Charlottesville needs to get ready for the short sales. It is coming fast and its about time people stop trying to fight it. Over the next couple of posts, we will look at other trends that tell the same story and just as frightening.
Charlottesville Real Estate Agents: Please don't mislead your clients telling them the market is getting better or rebounding. The agents that look their friends, family and clients in the eye and tell the truth are the ones that will be standing when this is over.
Rob Alley, Realtor at Keller Williams Charlottesville
540-250-3275 (cell)
roballeyrealtor@gmail.com
http://www.robsellscharlottesville.com/
http://www.forestlakesliving.com/
http://www.charlottesvillevarealestate.blogspot.com/
http://www.charlottesvilleshortsale.com/
http://www.theaverygroup.com/
Thursday, July 2, 2009
Goodbye Roy Wheeler, Hello Keller Williams
Now that its official, I can make the announcement that Cynthia and I have left Roy Wheeler Realty Co and joined Keller Williams Realty in Charlottesville.
We enjoyed our time at Roy Wheeler as well as working with the Managing Broker, Michael Guthrie, and the other agents. Roy Wheeler helped us to reach the next level in our business and we appreciate that very much.
Cynthia and I took a long time to make this decision and interviewed with several companies in the Charlottesville area. We ended up deciding on Keller Williams for a number of reasons. First, they are a national company and believe in the sharing of information and education. This is huge. The company studies the Real Estate Market, trends, and where they need to be to succeed in any market. One step better than that, they show the agents that information and train them on how to succeed in that market. We believe Charlottesville and Central Virginia is trending the same way that Northern Virginia did in 2007. Since we believe this is the case, our market will be driven by REOs and Short Sales in the near future and felt we needed to position ourselves correctly for that market shift. We are excited to work with and learn from (and maybe compete with :)) agents like Steve Bradley, a Short Sale expert and a Keller Williams Mega Agent, and Debbi Gorham, a REO expert and a Keller Williams Mega Agent, in Northern Virginia. Both believe heavily in the Keller Williams model of helping and training other agents to do what they are doing and we are fired up to add their expertise to our current system.
Keller Williams also believes in the same marketing methods that Cynthia and I believe in. We track our statistics very closely and we know what it is working for us when it comes to selling houses. The newspaper ads are returning less than a 1% Return on Investment (ROI). Newspaper advertising is not as effective as it once was. It's no secret that most home buyers are starting their search online and we can reference a number of reports whether that be from NAR, VAR, CAAR, our own brokers, and most importantly our clients. Most traditional brokerage models put that responsibility onto the individual agents to set up websites, create feeds for listing syndication like Trulia, Zillow, Homes.com and other popular sites to gain exposure to your home. Keller Williams has a program just for this that syndicates to every major website that potential home buyers are scouring for homes. What would you prefer? A company that advertises in a newspaper that reaches 38,000 people in an area with a population of 148,000 people (roughly 25% of the population) or the company that gets you exposure to the places that 82% of home buyers start their search?
Lastly, Keller Williams has offered Cynthia a leadership role in the company once she passes the Broker exam. This is the best decision available for her career in the Charlottesville Real Estate Market and her family.
In conclusion, we feel the move to Keller Williams from Roy Wheeler will be better for our business, our clients, and our families. I hope to have your support and patience as we work with Michael Guthrie at Roy Wheeler and Matthew Durbin at Keller Williams to make this transition as smooth as possible for everyone involved.
Rob Alley, Realtor at Keller Williams Charlottesville
540-250-3275 (cell)
roballey@roywheeler.com
http://www.robsellscharlottesville.com/
http://www.forestlakesliving.com/
http://www.charlottesvillevarealestate.blogspot.com/
http://www.charlottesvilleshortsale.com/
We enjoyed our time at Roy Wheeler as well as working with the Managing Broker, Michael Guthrie, and the other agents. Roy Wheeler helped us to reach the next level in our business and we appreciate that very much.
Cynthia and I took a long time to make this decision and interviewed with several companies in the Charlottesville area. We ended up deciding on Keller Williams for a number of reasons. First, they are a national company and believe in the sharing of information and education. This is huge. The company studies the Real Estate Market, trends, and where they need to be to succeed in any market. One step better than that, they show the agents that information and train them on how to succeed in that market. We believe Charlottesville and Central Virginia is trending the same way that Northern Virginia did in 2007. Since we believe this is the case, our market will be driven by REOs and Short Sales in the near future and felt we needed to position ourselves correctly for that market shift. We are excited to work with and learn from (and maybe compete with :)) agents like Steve Bradley, a Short Sale expert and a Keller Williams Mega Agent, and Debbi Gorham, a REO expert and a Keller Williams Mega Agent, in Northern Virginia. Both believe heavily in the Keller Williams model of helping and training other agents to do what they are doing and we are fired up to add their expertise to our current system.
Keller Williams also believes in the same marketing methods that Cynthia and I believe in. We track our statistics very closely and we know what it is working for us when it comes to selling houses. The newspaper ads are returning less than a 1% Return on Investment (ROI). Newspaper advertising is not as effective as it once was. It's no secret that most home buyers are starting their search online and we can reference a number of reports whether that be from NAR, VAR, CAAR, our own brokers, and most importantly our clients. Most traditional brokerage models put that responsibility onto the individual agents to set up websites, create feeds for listing syndication like Trulia, Zillow, Homes.com and other popular sites to gain exposure to your home. Keller Williams has a program just for this that syndicates to every major website that potential home buyers are scouring for homes. What would you prefer? A company that advertises in a newspaper that reaches 38,000 people in an area with a population of 148,000 people (roughly 25% of the population) or the company that gets you exposure to the places that 82% of home buyers start their search?
Lastly, Keller Williams has offered Cynthia a leadership role in the company once she passes the Broker exam. This is the best decision available for her career in the Charlottesville Real Estate Market and her family.
In conclusion, we feel the move to Keller Williams from Roy Wheeler will be better for our business, our clients, and our families. I hope to have your support and patience as we work with Michael Guthrie at Roy Wheeler and Matthew Durbin at Keller Williams to make this transition as smooth as possible for everyone involved.
Rob Alley, Realtor at Keller Williams Charlottesville
540-250-3275 (cell)
roballey@roywheeler.com
http://www.robsellscharlottesville.com/
http://www.forestlakesliving.com/
http://www.charlottesvillevarealestate.blogspot.com/
http://www.charlottesvilleshortsale.com/
Goodbye Roy Wheeler, Hello Keller Williams
Now that its official, I can make the announcement that Cynthia and I have left Roy Wheeler Realty Co and joined Keller Williams Realty in Charlottesville.
We enjoyed our time at Roy Wheeler as well as working with the Managing Broker, Michael Guthrie, and the other agents. Roy Wheeler helped us to reach the next level in our business and we appreciate that very much.
Cynthia and I took a long time to make this decision and interviewed with several companies in the Charlottesville area. We ended up deciding on Keller Williams for a number of reasons. First, they are a national company and believe in the sharing of information and education. This is huge. The company studies the Real Estate Market, trends, and where they need to be to succeed in any market. One step better than that, they show the agents that information and train them on how to succeed in that market. We believe Charlottesville and Central Virginia is trending the same way that Northern Virginia did in 2007. Since we believe this is the case, our market will be driven by REOs and Short Sales in the near future and felt we needed to position ourselves correctly for that market shift. We are excited to work with and learn from (and maybe compete with :)) agents like Steve Bradley, a Short Sale expert and a Keller Williams Mega Agent, and Debbi Gorham, a REO expert and a Keller Williams Mega Agent, in Northern Virginia. Both believe heavily in the Keller Williams model of helping and training other agents to do what they are doing and we are fired up to add their expertise to our current system.
Keller Williams also believes in the same marketing methods that Cynthia and I believe in. We track our statistics very closely and we know what it is working for us when it comes to selling houses. The newspaper ads are returning less than a 1% Return on Investment (ROI). Newspaper advertising is not as effective as it once was. It's no secret that most home buyers are starting their search online and we can reference a number of reports whether that be from NAR, VAR, CAAR, our own brokers, and most importantly our clients. Most traditional brokerage models put that responsibility onto the individual agents to set up websites, create feeds for listing syndication like Trulia, Zillow, Homes.com and other popular sites to gain exposure to your home. Keller Williams has a program just for this that syndicates to every major website that potential home buyers are scouring for homes. What would you prefer? A company that advertises in a newspaper that reaches 38,000 people in an area with a population of 148,000 people (roughly 25% of the population) or the company that gets you exposure to the places that 82% of home buyers start their search?
Lastly, Keller Williams has offered Cynthia a leadership role in the company once she passes the Broker exam. This is the best decision available for her career in the Charlottesville Real Estate Market and her family.
In conclusion, we feel the move to Keller Williams from Roy Wheeler will be better for our business, our clients, and our families. I hope to have your support and patience as we work with Michael Guthrie at Roy Wheeler and Matthew Durbin at Keller Williams to make this transition as smooth as possible for everyone involved.
Rob Alley, Realtor at Keller Williams Charlottesville
540-250-3275 (cell)
roballey@roywheeler.com
http://www.robsellscharlottesville.com/
http://www.forestlakesliving.com/
http://www.charlottesvillevarealestate.blogspot.com/
http://www.charlottesvilleshortsale.com/
We enjoyed our time at Roy Wheeler as well as working with the Managing Broker, Michael Guthrie, and the other agents. Roy Wheeler helped us to reach the next level in our business and we appreciate that very much.
Cynthia and I took a long time to make this decision and interviewed with several companies in the Charlottesville area. We ended up deciding on Keller Williams for a number of reasons. First, they are a national company and believe in the sharing of information and education. This is huge. The company studies the Real Estate Market, trends, and where they need to be to succeed in any market. One step better than that, they show the agents that information and train them on how to succeed in that market. We believe Charlottesville and Central Virginia is trending the same way that Northern Virginia did in 2007. Since we believe this is the case, our market will be driven by REOs and Short Sales in the near future and felt we needed to position ourselves correctly for that market shift. We are excited to work with and learn from (and maybe compete with :)) agents like Steve Bradley, a Short Sale expert and a Keller Williams Mega Agent, and Debbi Gorham, a REO expert and a Keller Williams Mega Agent, in Northern Virginia. Both believe heavily in the Keller Williams model of helping and training other agents to do what they are doing and we are fired up to add their expertise to our current system.
Keller Williams also believes in the same marketing methods that Cynthia and I believe in. We track our statistics very closely and we know what it is working for us when it comes to selling houses. The newspaper ads are returning less than a 1% Return on Investment (ROI). Newspaper advertising is not as effective as it once was. It's no secret that most home buyers are starting their search online and we can reference a number of reports whether that be from NAR, VAR, CAAR, our own brokers, and most importantly our clients. Most traditional brokerage models put that responsibility onto the individual agents to set up websites, create feeds for listing syndication like Trulia, Zillow, Homes.com and other popular sites to gain exposure to your home. Keller Williams has a program just for this that syndicates to every major website that potential home buyers are scouring for homes. What would you prefer? A company that advertises in a newspaper that reaches 38,000 people in an area with a population of 148,000 people (roughly 25% of the population) or the company that gets you exposure to the places that 82% of home buyers start their search?
Lastly, Keller Williams has offered Cynthia a leadership role in the company once she passes the Broker exam. This is the best decision available for her career in the Charlottesville Real Estate Market and her family.
In conclusion, we feel the move to Keller Williams from Roy Wheeler will be better for our business, our clients, and our families. I hope to have your support and patience as we work with Michael Guthrie at Roy Wheeler and Matthew Durbin at Keller Williams to make this transition as smooth as possible for everyone involved.
Rob Alley, Realtor at Keller Williams Charlottesville
540-250-3275 (cell)
roballey@roywheeler.com
http://www.robsellscharlottesville.com/
http://www.forestlakesliving.com/
http://www.charlottesvillevarealestate.blogspot.com/
http://www.charlottesvilleshortsale.com/
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