Date Archives July 2006

Paying for Infrastructure

A couple of items:From the WP:”I think we’re finally coming to a place where growth is sustaining growth,” Fitch said, explaining that housing developers seem increasingly willing to pitch in to compensate for the stress on infrastructure caused by new residents.  Centex’s contribution would amount to nearly $74,000 per unit, more than double what Fauquier County usually receives from a developer.But development specialists say the unusually large promise of cash highlights a disturbing trend in Virginia’s booming housing market.  Developers eager to plant new homes in exurban locales are building roads, establishing parks and offering money — all in an effort to appease increasingly resistant communities.  The result, the specialists say, is more expensive homes.Regarding the Annadale development in Orange:Recently, Silver dropped the density to 290 units and raised the proffers to $25,000 per home to make the project more favorable to the supervisors.  It worked.Albemarle’s proffers have traditionally been far less.

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Valuation in a Vacuum

Valuation in a Vacuum – Appraisals and market analyses can be two very different values.  An appraisal should be a relatively scientific valuation based on square footage A valuation provided by a Realtor typically takes into account other items, such as a property’s proximity to amenities, views and other intangibles that may be difficult to value.One thing that has always bothered me, and this is not intended to be an attack on appraisers – Why do appraisers need a copy of the Contract to Purchase prior to their doing their valuation?

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Seeking inspiration

Oftentimes, when I am searching for a muse, I turn to my search criteria for this blog.- the hook real estates sold charlottesville – here they are for last week, but this is not always the most current data.- http://www.ask.com/web?q=realtor lied on house size&qsrc=0&o=0 – caveat emptor.- realtor salary in charlottesville – There is no salary.  Pure commission.- commute charlottesville to dc- real estate market lull – yes, we are experiencing one now.- internet access off the grid- albemarle place housing prices – they’ll be high.- want a house but it says active with contingencies – call your Buyers’ Agent and get them to find out just what the contingencies are.  Typically, those are home inspection and financing.  More frequently we are seeing home sale contingencies as well.

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Dual Agency – Who benefits?

One of the primary values a Realtor brings to a transaction is representation – representation of his client’s best interests.  How can a Realtor advocate for the best interests of both parties and still maintain the perception of fairness and full representation?  In my mind, there is a difference between treating all parties fairly and honestly and being able to advocate with 100% vigor for one party.  Realtors practice dual agency all the time – successfully.  Never had I had someone remark how much they appreciated their agent representing both sides.  I have been told numerous times by clients how they perceived their agent in a shady, less-than-honest manner because that agent had both the buyer and seller….  In a divorce, would you have the same attorney represent both parties?* As I was researching another post, I came across this post on Dual Agency.  I read just the headline before writing this post, as I didn’t want to be influenced.

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Start your own MLS

The FTC and DOJ want to force Realtors to open up the MLS to virtually anybody who wants to advertise there.  (this is a somewhat hyperbolic statement, but that is the direction they ultimately seem to be going)What is preventing the limited-service brokers, et….  from starting their own competing websites via which they can advertise?…  Matter of fact, there are quite a few of them.The MLS’s are owned by Realtors….  Not everyone can be wear the ASE patch.One of the primary differences separating the MLS is the inherent cooperation between Brokers….  What if the MLS is forced to become just another medium to advertise?  What if Realtors have to provide more representation for their clients rather than simply plugging information into the MLS?  More at Russ’s blog.Realestatejournal has a story, as does Inman.

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Where are the buyers?

from a client yesterday with whom I have been working for several months.”I are going to be out of the housing market for a while.  We’ve just decided that with interest rates going up, the market changing and the bank not getting the monthly payments to where we’d like them…..it’s just in our best interest to wait right now.  I know the market’s beginning to change as the article in the Daily (Progress) said yesterday.  And, we’ve seen it ourselves with 817 and 824 Harris still on the market….  We’ll have more money saved for a down payment and hopefully prices will be down even more with the interest rates going up.”  So, I will sell them something next year (or the year after …)  This is a long-term business that necessitates a long-term frame of mind.  People are returning to buying houses with that mindset, which qualifies as “a good thing.”

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Friday Links – 07-14-2006

As the week winds down for most (I am gearing up to continue showing throughout the weekend), these are a few stories worth reading, each of which relates in some way to the CharlAlbemarle region’s real estate market.Ardell at RCG has two outstanding posts -Negotiating Fees with the Buyer ClientIf wishes were horses, beggars would ride – a call for civilizing the process of the real estate transaction.Thinking Entrepreneurially about TransitCoolTown Studios has this:53% of 24-34 year olds would choose to live in transit-rich, walkable neighborhoods, less than 25% of middle-aged Americans are interested in living in dense areas.  Source: CNU- Demand for housing within walking distance of transit will more than double by 2025.  Properties within a 5-10 minute walk to a train stop are selling for 20-25% more than comparable properties further away, and going up.  Source: Center for Transit-Oriented DevelopmentWhat’s a government to do when their massive annual raises stagnate?Bankrate.com under fireOnline home valuations are useful, but …The desk-top appraisal said the home would be worth $400,000, but the drive-by and on-site visit lowered it significantly, to the $305,000 to $320,000 ballpark, which Mr. Hagar said would be the most accurate for our purposes.Have a good weekend!

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