A bit of a take-off of the “ask the agent” feature that some of the other real estate blogs have been doing of late – I have taken some of the more interesting or pertinent search phrases that have led visitors to this blog. Should you get title insurance?Yes, in most cases…. In most cases, title insurance costs a percentage of the sales price. If you choose not to purchase owners’ coverage (lenders’ coverage is required by the lender) think about the hassle and cost that would come from having to hire an attorney for at least several hours … Broker’s agreement w/ buyer VAHere is my explanation for that.How the real estate cartel harms consumerI don’t think there is a “cartel”. Real estate is an enormously competitive industry. Is ivy road in charlottesville walkable?Much of the Ivy Road that is close to the City of Charlottesville is, but the part of Ivy Road known better as 250 West is not. Old Ivy Road is if you’re daring and brave – particularly under either bridge.Real estate, what does pending mean?Active: Actively on the marketContingent: Under contract, with contingencies such as home inspection or financingPending: All contingencies have been satisfied and both parties are waiting to close.Do you have any questions that you would like answered?
Date Archives September 2006
Albemarle County Development Review
Everybody’s talking about it -Albemarle County is seeking the public’s feedback on the development process. One thing is true – the County does an excellent job of soliciting the public’s input. Now, if only the public will speak.From a discussion at Cvillenews:I’m not sure these are the metrics you ask for, but from 2002 to 2004 in a poll done by the county the level of satisfaction of growth area residents dropped by 17 percent . I assume this is a (reflection) of how people view their quality of life.Now, if we can only get a regional survey that incorporates all of the impacted counties …
Monday Links 09-18-2006
10 Cravings of a New Generation of ConsumersRising Inventory of Unsold Homes is Likely to Put Pressure on PricesAn upward trend: Estimating Relative Foreclosure StatsHome sales, prices seen stagnating – really, it is far too early to put the nail in the housing market’s coffin. Patience, please.Shakespeare Searched By Clusty (HT: Search Engine Blog)How to deal with an Angry Customer (Seth Godin) – If you do nothing else, apologize. Often, an apology is all they are looking for.
Wacky mortgages and scary forecasts
of the subprime ARM loans written in Virginia were 30 days or more past due in 2nd quarter 2006.Things are about to get immensely more complicated, now that the Senate is holding hearings assessing non-traditional mortgage products…. I was told the other day that there are only two local lenders who have not written any Option-ARM mortgages. I am pleased to consistently work with one of them.The next 12 to 18 months are going to be very interesting, and very full of opportunity for some and sadness/desperation for many.Quoth Jonathan Miller:I have come to belive all news is presented in the most negative light possible, especially news about the economy…. For this data, I would have to bold it all.And finally, if you want to see the laughing hyenas taking pleasure in all of this, spend some time at the housing bubble thread…. From Comstock Partners’ commentary:Ø 32.6% of new mortgages and home equity loans in 2005 were interest only, up from 0.6% in 2000Ø 43% of first-time home buyers in 2005 put no money down.Ø 15.2% of 2005 home buyers owe at least 10% more than their home is worth.Ø 10% of all home owners have no equity in their homesØ $2.7 trillion in loans will adjust to higher rates in 2006 and 2007.Ø 70% of borrowers who took out pay-option ARMS in the past year have loan balances larger than their initial loan.Ø Homeowners face higher payments as mortgages are reset. Generally, monthly payments rise between $200 and $500 depending on the size of the mortgage.Ø According to Reality Trac, August foreclosures were up 23% over July and 53% over a year ago.Ø The number of homes for sale is at record highs, and inventories are 59% higher than a year earlier.Ø New home sales are down 22% and existing home sales down 11%.Ø The NASB housing market index has recorded an all-time decline.Ø The housing affordability index is at a 15-year low.Ø The house price-to-income (rents) ratio is off the charts. According to HSBC, in 18 states accounting for over 40% of national home values, the price-to-income ratio is 3.6 standard deviations above the mean.Ø The OFHEO index of house prices deflated by the consumption price deflator has soared to a record high of 350 from 250 in 2001. From 1976 to 1996 it never was above 220.Ø According to the NAR the year-to year prices of existing homes are now flat.
Why Blog
At a Realtor function the other day in the midst of asking for money, another Realtor mentioned that she was trying to start a blog…. I have learned so much from the reading and researching that I do on a daily basis that I am far more aware and knowledgeable than I was before I started blogging…. Starting to blog with the sole purpose being to make money and business is, in my opinion, the wrong reason to do so. One of the best aspects of the blogosphere is the transparency that comes with writing in public – if you’re wrong, they will tell you so…. (There are plenty of real estate “blogs” in the Charlottesville area to which I could refer you).Blogging is rewarding because of the relationships that are formed with other bloggers – real estate and otherwise…. Blogging gives one the opportunity to form relationships with others whom you may never meet, but who contribute via insightful and consistent commentary…. Technology, agency (dual and single), land use and development, local and state politics, market trends, emerging trends, these are subjects about which the avThis is not a derivative post of Greg’s recent post – it’s just a coincidence…. A fuller answer is more complicated than that, but the whole issue is trumped by an even larger point: I don’t care.I agree wholeheartedly.
Clustering, phasing and more
Clustering and Phasing shelved (WINA) – link may not work, WINA’s permalink structure is bothersome.Phasing and Clustering proposals fail to move forward (Cville Tomorrow)Ok. Efforts to address land-use fail, and the BoS approves more developments within the growth area. Crozet Rezonings move forward (CVille Tomorrow) The County BoS could not have set up the following any better, and I am sure that the groups would offer their thanks – Groups appeals for growth limitsI have said many times before – if these groups were to be successful and shut down development and growth within Charlottesville/Albemarle (CharlAlbemarle), the surrounding counties will benefit and suffer whereas CharlAlbemarle will only suffer the consequences.