Musings from You and Me

Charlottesville's Grand Illumination

2006-11-25T18:52:00.000-05:00

I love Christmas! Every year I look forward to watching "Charlie Brown's Christmas Special", and "The Grinch Who Stole Christmas" )(the original Dr. Suess edition).

I love to listen to Christmas music. We have a station here, that the day after Thanksgiving goes Christmas music 24/7, until New Year's. I love it all, from "The Little Drummer Boy" (my husband is a drummer, he plays a Tama set, for those that care) to "The Nutcracker Ballet"

Well, last night, we in Charlottesville, had our "Grand Illumination" (you can watch it, too). I am so relieved that in the era of political correctness that we still have a Christmas Tree here. I get so irritated at the "Holiday Tree" and the "Winter Festival" correct speech.

We kick off the Yuletide season with a large gathering on the Downtown Mall, of hundreds of folk, ready to ooh, and aah the Lighting of the Christmas Tree. The retailers all along the Mall have their shops twinkling with greens, wreaths, lights, and cheer.

The "Grand Illumination" comes from a colonial (and English) tradition of placing candles in the windows of homes and buildings to celebrate special events. In Williamsburg they have the Grand Illumination ceremony complete with fireworks. We have never done that.

We stand around in anxious anticipation, and then the countdown from 10 starts. We hug, kiss and even jump for joy when those 16,000 lights come on. But just like home, things don't work as expected.

I have taken a picture of our glorious tree late this afternoon-that would be, not quite one day after the Grand Illumination.

Every year we think last year was better. I have discovered it is impossible to compete with the memory of a ghost past. Instead, I am going to accept, nothing is perfect, and enjoy the ride through this season! All what do you say-8000 lights........

New Construction, Home Inspection?

2006-11-24T17:58:00.000-05:00

Many buyers do not realize how important it is to have a home inspection during the construction of a new home. They see no reason for it, since the County has been doing the building permit inspections, and many times the builder has a one year warranty on the house. Many buyers feel it will be a waste of their money. If anything happens, the builder will come and take care of it. No big deal to them.

I explain that in my experience, the deficiency lists on new construction homes are generally longer, than those on the resales homes. Many times, the items noted on the report, are things the average homeowner will never know are wrong. I have seen duct work in the attic not connected to the vent on reports, this means your heat or air conditioning will go into the attic space. No back fill under the deck or porch, which allows water to sit against the foundation wall, not able to drain away, causing a wet basement or crawl space. Roof issues are fairly common as well, where flashing at the fireplace, or valleys of 2 slopes coming together, causing frequent problem areas.

On a purchase involving hundreds of thousands of dollars, a few hundred dollars for the home inspection can save you tremendous inconvenience and offers great peace of mind. Some purchasers choose to not have the inspection done until they have been in the house for about 10 months. This way the final repair work to be completed by the builder will include all the deficiencies a home inspector will find when they go to sell the house. Instead of them getting stuck making those repairs at the time they want to sell. The builder completes them prior to the end of the one year warranty.

The worst case scenario did happen once. At the final walk through, the builders representative had filled the large jacuzzi in the Master Bedroom (prior to our arrival). Everything was gorgeous, hardwood floors throughout the first and second floors. The jacuzzi was switched on and the water began to jet properly. Everyone was happy.

The builders representative opened the plug and the water drained, while we looked at the children's rooms upstairs. Going back downstairs we discovered that water was pouring through the ceiling on the main floor onto those gorgeous wood floors. It then passed through the ceiling of the basement onto the tile floor down there. Yes, all 3 floors experienced the water damage!

The plumber had forgotten to connect the drain to the pipe. It's the details that get you every time. Fortunately, these purchasers were able to stay in the house they were living in, the extra 4 weeks it took the builder to get the repairs completed. Had there been an inspection this would have been discovered with minimal repairs necessary.

The inspectors that I use will on new construction go to the site 3-4 times, during the construction phase to ensure everything runs smoothly for the purchasers.

What's in a Name?

2006-11-23T18:11:00.000-05:00

I was approached by a new Realtor in our Company last week, who is going to be getting her first website. She was considering using her name as the website's domain name.

I advised her to buy her name, as she would not want to become successful and have a competitor begin to use her name. The best thing for her to do for the website is come up with a domain name that will fit the target niche she is going to focus on.

Something that could apply to the target market, and be memorable to them. This way the business is not built on a person only, but has a presence and could be marketed when she is ready to retire. Would you like residual income?She had not even thought of that concept.

Returning to me after while, she had lost some of that new conquering attitude, I had given her, to exclaim, "all the good names are taken". My advice was to think outside the box, get more focused on your target, talk to them, see what matters to them.

I know you have been really distracted by the photo I uploaded to the blog. This Company is located in Europe, and while it may not be a well received marketing ploy here, we must admit, it is catchy and memorable.

The business will not last though if there is no substance to the claim made. A good reputation is vital to success. I pride myself that I have a great reputation with my clients, and my fellow Realtors. Fine Virginia Living could not be better said.

What I am Thankful For

2006-11-22T21:37:00.000-05:00

Thanksgiving is one of my favorite Holidays, and some years it is also my birthday (like next year). Gathering together with family and friends, remembering the blessings we have in our lives is important to me.

It is so easy to get caught up with the negatives of the news, our personal problems, and the stresses of daily life that we lose sight of the things that really matter to us. In the spirit of the Holiday, I want to share with you the things I am most thankful for.

That Dave Wallace (a local Police Officer) returned home safely from his tour in Iraq. I appreciate the sacrifice of about 2 years of his life for our Country.
The thrill I get almost daily, by being a part of the exciting chapter of selling family's homes.
For a Husband who loves me and is such an encourager to me.
For 5 Children who I love with all my heart.
The incredible beauty of Charlottesville, Glorious!
Bodo's Caesar Salad

Take a moment to ponder the things you are thankful for, it will help refresh your outlook on life.

Fox Cancels OJ Interview

2006-11-21T08:44:00.000-05:00

I woke up this morning to the news that Fox has cancelled the 2 part interview planned focusing on OJ Simpson's new book If I Did It. I actually am glad that they have cancelled this. It makes me furious that he has been able to profit 3.5 million dollars with this new endeavor. I am comforted that so many people stood up and let their disgust resound loudly at the Fox Network. Whatever happened to shunning, we the people have not forgotten it, and the media (Fox) has been reminded of it.

Why would they even consider this program? My opinion is they know we all believe he literally got away with murder and it was their attempt to bring some kind of back handed justice to the situation. Sugar coating the money he received, by dancing around the thought- it is for his children (which are Nicole's children too) and we all feel sorry for her , the children ,Ron Goldman, and both extended family's loss.

This is what I believe OJ Simpson should have written, If I Did it (Again) Here's What I Would Have Done to Avoid a Trial and Keep My Fortune Growing.

I hate that his NFL pension is untouchable, his estate is untouchable, and that he can profit from media pursuits of a story, on these tragic deaths. Why allow this man to continue to make impudent digs at the family's who suffered such great loss, and received no compensation, and no justice?

We the people stood up, and were heard. OJ should be silent.

Home Equity is Like a Piggybank

2006-11-20T19:13:00.000-05:00

Today I was looking at some listings from the past 3 years, and if they were listed today at those prices, they would no doubt get full price offers- no problem. I wondered if asked would those purchasers agree they had gotten a great deal? On average they paid 98% of asking price, not the listed price.

I am told there is nothing certain in life, except death and taxes. Well, I want to add real estate equity. I have gone on some appointments lately where the potential sellers have viewed their home's equity as a piggy bank that can be dipped into with no consequences to their fiscal health.

Even though they have made 3 years worth of payments, they are close to being tapped out. The money owed is almost equal to the market value today. They have essentially gone nowhere in their biggest investment and profit center-let's call it the home portfolio.

The goal used to be pay the house off, so when you retire on a reduced income you will not have to worry on making the mortgage payment. I am seeing quite a few homeowners that do not feel that way. They are quite comfortable using the home portfolio to finance cars, home improvements, and credit card debt.

When the time comes to sell, they are shocked to learn they may have to bring money to the closing table, or that they have miscalculated the money to be invested in the next home. What about how much my home has appreciated? There seems to be a disconnect between the gain in equity and the siphoning of it into another use.

You get what you pay for either way, and right now interest rates are so low, the equity grab is understandable. It may not be without consequence though. Don't lose sight of your family's goal, if it is to pay off the mortgage, you need to allow the equity to accumulate. Don't break the Piggybank.

Termites and Sunday Truth

2006-11-19T18:01:00.000-05:00

Today is Sunday, and I have been thinking about truth. Some people have a hard time getting a handle on it. They resist the truth. They do not want to know the truth. They do not care about the truth. They do not speak truth.

What is the truth? Pontius Pilate

You can't handle the truth. Jack Nicholson

Truth is generally the best vindication against slander. Abe Lincoln

We know the truth, not only by the reason, but also by the heart. Blaise Pascal

Nothing is easier than self-deceit. For what each man wishes, that he also believes to be true. Demosthenes

All truths are easy to understand once they are discovered; the point is to discover them. Galileo

The truth will set you free. But first, it will piss you off. Gloria Stienem

What has this got to do with Real Estate? Everything! My goal is a sale with no legal entanglement for the Seller or Buyer. A clean deal. How does this happen? With complete disclosure of all known material defects and all agreements in writing. Each Seller and Buyer being represented by a Realtor promoting and protecting their interests.

The home was built in the late 1800's with an addition put on in the 1950's. There was no access under the original portion of the house. This was noted on the Home Inspection Report, and the Termite Inspection. The home was full of furniture and oriental rugs, quite lovely.

Moving day arrives and the movers set the couch in the living room and the front left leg falls through the floor. Termites are under the unaccessable portion of the house, eating the house. Through incredible circumstances a previous owner of the house runs into the current owners, who share their tale.

What do you mean no access? In the closet in the Living Room there is a door into the crawl space. The door was drywalled away. No evidence of it left. Hmmmmm-what is truth.

Sellers must disclose known material defects. Had the seller disclosed and stated there would be no repairs, there would have been no legal entanglements. Instead through incredible circumstances their deceipt was discovered.

Most people try to do the right thing, they try and live honest lives, with good reputations, there are other though that say "What is truth"? Because of them we all suffer.

Painting When Selling Home

2006-09-08T08:19:00.000-05:00

Paint is the least expensive and most effective way to improve how a home shows. Please, you do not have to paint everything eggshell colors, and white. Yes, there are colors that should be avoided, and some used sparingly. A dramatic wall may be wonderful, while that same color used through the entire room could distract from the room itself.

I love paint, it makes the house seem clean. I know that everything has to move while painting, and those nooks and crannies get exposed so, then we have to clean them. That is a good thing. It also forces us to address clutter. After packing all those things from the tabletops and shelves, do we really want to bring it all back out? (That would be a, no) All those family photos come down from the wall when painting, and we do not want to hang them back up either. You truly de-personalize the house, in order to allow potential purchasers to envision their family at home in the house.

Rules of Painting:

1. Don't remove the electric switch plates, and then roll over the plugs. Go around the hole the plate creates.

2. Don't paint the windows shut.

3. Tape the edges to get a clean line at the moldings, and ceilings.

4. Use drop cloths to keep paint splatter off floor.

5. Choose colors carefully.

6. Loosen light fixtures and ceiling fans, do not paint on the edge of them.

Paint is an easy, inexpensive, quick way to make a house pop. Create a Fine Virginia Living masterpiece in your home.

Why Have a Home Inspection?

2006-09-07T12:28:00.000-05:00

In Charlottesville VA. homes are sold as-is. We are a caveat emptor state, that is Latin for Buyer Beware. This is the idea that buyers take responsibility for the condition of the home they purchase, and should examine them before they purchase. The property and all improvements are being sold as-is with no representations or warrenties as to condition. The seller must disclose all defects of which the seller has actual knowledge. To boil it all down to where the rubber meets the road. After the closing occurs, the condition of the property is the purchasers problem.

Sellers most of the time do not have "actual knowledge" of a defect. They are not professionals (for the most part) who have been through all of the homes systems, and can't accurately report things are working properly. Sellers may know they have had a problem and provide a receipt that it was corrected, but is that correction satisfactory?

I was at a home inspection, (all the inspectors I recommend have building experience. Two are Class A Contractors, and One a former Building inspector for the County. This is in contrast to some new inspectors that are ASHI approved, yet have not one day of building experience and have master degrees in marketing though. Their material looks great, I will say that. I have no idea of their inspections, I would be afraid to recommend them) and the ceiling in the basement was a suspended drop ceiling. This inspector routinely pushes up a few tiles to look. He amazed me when he kept pushing them up, and called the purchaser over.

There was a tremendous amount of mold growing along all the joists. He called it "suspicious fungi" but we had it tested and it was pennicillum, and aspergillum. This mold was also found in abundance in the attic, so much in fact that when the light was flipped on, after the hatch removed, he initially thought there had been a fire.

The seller truly had not a clue, I am confident. It was an expensive problem that was mitigated. We asked that the mold test be re-run after the mitigation completed to ensure the job was done properly. This was a prudent thing to have done, as there were additional actions necessary to mitigate the problem.

The repair cost was placed exactly where it should have been, on the seller. The purpose of the home inspection is really to find out what as-is truly is! Buyer Beware, have an experienced and skilled Realtor represent you!

Charlottesville Real Estate Economy

2006-09-06T08:32:00.000-05:00

If I listen to the news media expound on real estate, I realize if I believed what they said I should be swan diving out a high window. To hear them tell it we are in dire straights. The market here in Charlottesville is not bad. We are actually on target for our second best year ever. So, why the doom and gloom?

I pulled the statistics in the MLS for the month of August 2006 and compared them to the record holding year of 2005.

Albemarle in 2005 had 202 homes sold, this year was 146 a 28% difference.

Charlottesville in 2005 had 65 homes sold, this year was 55 a 15% difference.

Fluvanna in 2005 had 65 homes sold, this year was 54 a 17% difference.

The prices of homes has gone down slightly. The slow decline in prices started in March and has continued til now. It has been extremely gradual, and not signficant in any way. Especially if you consider that the prices spiked up and up in a very short time, sellers could literally stick any price on the house and wait for offers. Inventory was low, and purchasers needed housing.

New construction has also had price reductions and other incentives given by the builders. To make it more attractive to consumers. Does this indicate that we are in a terrible situation? In my opionion NO. Some builders had completion dates that were a year out. It was exceedingly difficult to find any homes nearing completion last year that were not under contract. We have returned to a balanced market.

Prices have stabilized, we have transitioned to a more realistic market. There has to be a balance between the wages earned and the affordability of the area. Otherwise, you lose the key service people, that are vital to the area. Nurses, Doctors, Firemen, Police Officers, Teachers all need to live in the areas they service.

We are not in a recession, don't believe me? Go to any shopping strip and look at all the shoppers. I am amazed at the number of cars with engines running waiting in the lots. We have not reached a point where families must make significant sacrifices in pleasure expenditures to pay their bills.

Fall is just around the corner, and this is when I personally buy property. This year will be no exception, homes that are priced well, and in good showing condition will sell. Interest rates are low, it is a great time to be shopping for real estate.

Right now is perfect to look at property, since we have recently gotten rain after drought like conditions, it is easy to tell if there are any water issues inside the house, or on the lot.

Perhaps "Perky Katie Couric" will place a more accurate and positive spin on things, I hope so at least.

Sculpture on Route 250

2006-08-31T19:56:00.000-05:00

I love the sculptures that adorn our area. This one sits on Route 250 near the Firehouse. My favorite of all, is the suit running with briefcase and splashing coffee cup, also on Route 250. This one though is an enigma to me: Open Apex by Rob Lorensen

"ArtInPlace presents outdoor sculptures that provide the Charlottesville community with a wide range of artistic styles, themes and media to enhance our concepts of space and place and enliven our sense that art has the power to move us." I am still reeling from the price of $30,000 for this one.

Landscaping Can Add 15% to Property Values

2006-08-31T18:50:00.000-05:00

I was at the Doctor's Office the other day, and while waiting perused an old magazine "Smart Money", March 2003 edition. The article was titled "Add 15% to Your Home's Value". You know I was hooked! It went on to say "one of your greatest assets may be your own backyard literally. As the housing market turns softer, Americans are realizing that one of the best ways to increase a home's resale value is to revamp the landscape. Their formula was landscaping + property = added value."

Some interesting statistics:
1. Consumers value a landscaped home up to 11.3% higher than its base price, according to a Clemson university and University of Michigan study.

2. A Society of Real Estate Appraisers Survey revealed that 95% of the appraisers responding to the survey, believed that landscaping adds to the dollar value of the residential real estate, and 99% of them said that it enhanced the sales appeal of the property.

3. A variety of studies reveal that landscaping can increasethe value of residential and commercial properties from 5% to as much as 20%.

4. Homes with excellent landscaping can expect a sale price about 6 to 7 percent higher than equivalent houses with good landscaping, while improving landscaping from average to good can result in a 4 to 5 percent increase. Source: Clemson University.

It is interesting that in 2006 this article still truly hit the mark.I have several excellent landscapers whose work is displayed in both residential and commercial properties. Call me for a free recommendation.

Showing Homes with Pets

2006-08-31T10:18:00.000-05:00

I am an animal lover. I have 3 dogs, (Guido, Otis and Oscar), and 1 cat (Ditty). Yes, their names spell the acronym GOOD! Guido by far is the most rambunctious of the lot. He is a Springer Spaniel, who as my neighbor has said "is so inbred he has no good sense left". He is loved by the other mutts in the house, and us though.

Last year my family moved, we actually lived the pain my clients feel. Strangers coming through the house, on relatively little notice. The house looked very tidy and well organized (truly staged). We can't live like that all the time, that is for certain. For every showing we removed the dogs from the house, what a hassle it was for my husband. Packing the dogs into his truck for an hour or so jaunt to nowhere. Drool and nose prints on his windows, paw prints on his seats, and excited doggies going on a great adventure, they thought!

Showing homes daily, I have run into all kinds of dogs. Some where I am amazed we were able to get through the showing with no one hurt. Others where the dog becomes such the center of attention that no one notices the house that is for sale- we all want the dog! The least favorite is the homes where the animal is obviously struggling with going outside for potty time.

A Realtor advises clients on many different matters in getting a house sold. One should be what to do with the family pet while the home is being shown to strangers (that is how the dog views, potential purchasers). There are legal liabilities if something should happen in the home while it is being shown.

Crating the dog can be a perfect alternative, since whether it is overly friendly, or not really trustworthy with strangers, the house becomes the focal point. Purchasers can envision their family at home here, while imagining how their belongings will look arranged in the house, while all are safe and secure.

The exception to this is a growling, barking crated dog. No one feels comfortable, and the aura of the house is tainted with stress. Best of all is taking the dog for a walk, or drive while the house is shown.

Love that Charlottesville Home!

2006-08-30T15:12:00.000-05:00

Did you know that there are people who are comfortable doing everything digitally? I recently had the pleasure of selling a home to a family from the West Coast. The interesting part is, they literally did not see the house, nor any of the paperwork except in digital form, (that folks means on the computer)! Until the day before closing, when everything they had was on a moving truck headed to VA. and they arrived on a plane with their 2 cats to meet me and their new home (live and in person) for the first time.

I met them "online" and began emailing the family homes that were in the MLS, that fit the criteria of what they were looking for. When something caught their eye, they would email me to go and take more photos of the neighborhood, yard, and virtually tour the home. Then we found "the one" 90 pictures of it later, we were certain of it.

The offer was put together online, and emailed, printed, signed and faxed signature pages returned to me. The seller was also not in our area, and the process was repeated for them as well. Then, eureka- offer changed to contract!

I use a home inspector that does his reports digitally, and emails pictures of problems to the purchaser, and we forward to the seller. What a wonderful change from the old days. Now everyone can clearly see what you are talking about when there is a problem. A picture is truly worth a thousand words.

I admit I was nervous driving up to the house, that they would not be as happy now that it was live and in person. To my great relief and their great joy, it was even better than they thought! The cats made themselves immediately at home on the mantle over the fireplace!

Could this be one of the reasons that yours truly was chosen to be featured in the last 2 weeks of "The Real Estate Weekly" as a technology advanced Realtor? I certainly hope so, I am delighted being a part of this exciting chapter of a family's life. You can buy a home online with confidence, when you have a solid professional advocate working for you!

Welcome Home to Charlottesville my West Coast Friends!

Value of Home Warranty

2006-08-30T12:50:00.000-05:00

You know the old adage "stuff happens". I was at the final walkthrough with some clients, when we discovered that the master bedroom toilet would not flush. Oh, it would swirl the water around, but just not swallow if you will.

We had done a home inspection and it had been noted that the toilet was not flushing, and the seller had gotten a plumber to come and repair it. They had even had him come back a second time, since the problem came back a few days before closing. They provided 2 invoices showing the problem repaired, at a pretty penny I will add.

So, here we are, with 2 families packed and loaded in moving vans, being held up by a rebellious toilet! American Home Shield to the rescue! Their position was since the plumber had made 2 trips and the toilet was still not working correctly, it was to be replaced.

Yep, that is exactly what they did. In a day, For free, Wow! So, I asked what was the problem with this toilet? The answer surprised me, Blue stuff! You know the blue toilet cleaning stuff you place in the tank. Seems that it is terrible for the system, we shouldn't use it. Go figure. I guess everything wants clear drinking water, hmmmmm.

Parrot Head Club

2006-08-25T08:54:00.000-05:00

Celebrating margaritas, shorts and flip-flops the Central Virginia Parrot Head Club has pulled together a social club, Jimmy Buffett's music, and they pitch in for community service projects.

"On April 23rd the Club traveled to Lynchburg to watch the local Carolina League team take on the Salem Avalanche! The weather was perfect and the beer was cold! A Phun time was had by all and we even have pictures to prove it!" The group even cleaned up 3 miles of highway in our area.

Where would this esteemed group meet? Cheese Burger in Paradise and of course The Lazy Parrot Cafe.

Unpleasant but Sadly Necessary Topic

2006-08-24T11:30:00.000-05:00

There are new 400,000 victims of sexual assault every year.
There are over 550,000 registered sex offenders in the US.
There are over 100,000 sex offenders that fail to register in the US.

Know Your Neighbor an adage that is so very important.

http://www.familywatchdog.us/facts.asp

Here's to Ultimate Service

2006-08-22T12:32:00.000-05:00

Let's Face it; it is just too easy to become a licensed real estate agent. The Union Tribune article states"There's a good chance that the person who cuts your hair has received a higher level of training than the person who sold you your home", according to California Association of Realtors President Vince Malta.

The number of Realtors in Charlottesville is 1,294. It seems that just about everybody has obtained a license. Only a select few have a documented level of education, experience, professionalism, extensive knowledge and capability to offer clients solid service in all facets of the real estate transaction. I do not need to brag-I am the real thing. Actual credentials speak louder than someone screaming their multi-million dollar production records (which I also have).

It is quite interesting how much money is spent in the real estate community advertising things the public really does not care about, nor should they. Some generic and common examples:
Sold Millions and Millions
Free CMA (Comparative Market Analysis)
Number One Agent
First Class Service

Are we impressed with florists who advertise they arrange flowers? Water them? Deliver them? No, we expect them to do that. The same is true of Realtors, what is being offered that stands out to the public? What is the Realtor doing that delights the client to the point they are compelled to say "wow"?

This is what I am doing. Results speak louder than words. Live The Ultimate Lifestyle, you can click on these:

Coolest Kid in the Neighborhood helps families adjust in a matter of hours to their new home and neighborhood instead of weeks and months.

8 Day 7 Night Hawaiian Offer

Get Pre-Approved Online for Loan

No Surprises, Worry-Free Sale of Home. This is a new program offered as an option to sellers, when listing with me. The menu offered includes, I will have the home inspected, the deficiency list taken care of, the home professionally staged, professionally cleaned. There are many sellers who do not have the time, desire, or affiliations to take care of all these details. I do, and it will result in a quicker sale, with no surprises. Purchasers and Sellers alike benefit with this approach.

Is it a good time to buy?

2006-08-21T07:37:00.000-05:00

I have been asked many times lately is this a good time to buy a home?

As of this morning in the Charlottesville Multiple Listing Service there are 1203 homes active (on the market and available for purchase) in Albemarle County and Charlottesville City.

We have not seen this kind of inventory in quite some time. We are clearly in transition. This is proving to be a very smooth adjustment though. There have been price reductions and closing cost incentives offered by Sellers. The prices have truly become more stable, than in the past few years. Gone are the days of "just stick this price on it, and we will wait for offers"

Our area has experienced several years of rapid price increases, which is not healthy for the area economy. The price stabilization that we are experiencing in our area, is not severe, and has been more gradual than in some other markets nationwide. Wages earned have not increased at the same rate as home prices here. Homeownership is the best source of wealth for most Americans, that is not changing. There must be affordable homes for the wage earners in order for the community to continue to thrive. We need the teachers, nurses, firemen ,police officers and other service providers living in our community.

I believe we have entered more of a balanced market than a buyers market.

It is an excellent time to buy. You will have plenty of homes to choose from. It is also an excellent time to sell, homes in good condition which are accurately priced are selling well. You will be able to get the next home of your dreams at a very fair price, making for a very smooth transaction.

Charlottesville Tip # 2

2006-08-18T08:30:00.000-05:00

Where is the best place to stay in Charlottesville? If you are looking for ambiance, proximity to the downtown mall, and a touch of history, it doesn't get better than South Street Inn their website features wonderful photographs and all the information on the Inn,(a sample is below).

Meticulous detail went into every aspect of the Inn from the rebuilding of the neo-classical veranda to the restoration of the solid walnut two-story serpentine hand rail in the main gallery. We offer the traveler convenience and luxury. Every room has a private bath; some suites offer whirlpool bathtubs, fireplaces, canopy beds and private living rooms. 17 rooms, 3 suites.

In 1856, James Woods, a local builder, completed the larger of our two houses. He then sold the property to Thomas Jefferson Wertenbaker, the son of Thomas Jefferson's close friend and the University of Virginia's first librarian William Wertenbaker. The house changed hands in 1882. Another distinguished family, the Valentines, moved in. Mr. Valentine was a prominent businessman with interests in a bank, the cable car company and the woolen mills here is Charlottesville. At this time the main building was the only building located on the block. The photograph in your room is the house as it was in 1903 when the Valentine family occupied it. Most of the original furnishings are in the Valentine Museum in Richmond, Virginia. Mrs. Irene Valentine, whose husband Vinton was born in room 9 (the portrait of the young boy in room 9 is Vinton, age 3, painted by his older sister in 1888), resided on Park Street here in Charlottesville until recently. The Wertenbaker house took an interesting turn later when it became a girls finishing school, then a boarding house, and at one stage, a brothel (known legally in Virginia as a 'Bawdy House').

Choose which gorgeous room you would like to stay in from the photos on their website. The South Street Inn is So Very Virginia, don't miss it!

Feng Shui

2006-08-17T08:17:00.000-05:00

Feng Shui (meaning Wind and Water in Chinese) is the ancient art of placement to promote harmony, wealth, success and health. Feng Shui deals with the location and architecture of buildings, along with interior design and exterior landscaping. Disney, Donald Trump, Richard Branson, Texas First National Bank and Mutual of New York have all used Feng Shui in their businesses. A working knowledge of Feng Shui may even help in home selling and home buying in today's multicultural world.

Does your home bring you a feeling of joy, abundance and tranquility?
The placement of furniture, the colors we choose, even our artwork can facilitate or impede the flow of positive energy (chi). By CREATING A GREATER SENSE OF BALANCE AND HARMONY IN THE HOME, feng shui:
• Increases prosperity
• Strengthens marriages and family relationships
• Enhances prospects for romance
• Promotes professional success and recognition
• Improves health
• Achieves academic success

Charlottesville Feng Shui Expert is Dragonheart Feng Shui you can have a wealth corner added to your home too.

War on Electronic Waste!

2006-08-16T08:29:00.000-05:00

Crutchfield to offer recycling options!

Central Virginia residents who are looking to recycle electronic items will have a year-round option as a result of a new "one-stop" electronics-recycling center at Crutchfield's Rio Hill store.Discarded electronic parts often contain toxic elements, which make them problematic in landfills. To deal with that issue, agencies such as the Rivanna Solid Waste Authority have held occasional electronics recycling events to draw such items for proper recycling.Now there will be a permanent, year-round option.Thomas L. Frederick Jr., executive director of RSWA, said the new recycling center by Crutchfield would likely keep 15 to 20 tons of electronic equipment out of landfills each year.

What does One Million Buy in Charlottesville?

2006-08-15T14:39:00.000-05:00

Social Hall Circa 1814, offered at a cool $1,000,000. Thomas Jefferson once played fiddle at parties in the building. There have been many recent restorations to the 5 bedroom, 4300 Square foot home. Boasting one full bath, it is now being used as an office building.

It could easily be converted back to elegant family living with the large rooms, impressive mantles and high ceilings. No doubt one would want to address the one full bath situation then.

This is what I love about being in Virginia, and Charlottesville in particular: you can become linked to a significant part of our Nation's history. Short of George Washington slept here, it doesn't get better than this! So Very Virginia. Call me for further information on homes here.

Cost of Selling without a Realtor

2006-08-14T08:04:00.000-05:00

NAR (National Association of Realtors statistics on For Sale By Owner (FSBO)

Did you know?. . . the typical FSBO home sold for $198,200 compared to $230,000 for agent-assisted home sales.

FSBO Methods Used to Market Home:
Yard Sign . . . 61%
Friends/neighbors . . . 46%
Newspaper ad . . . 37%
Open House . . . 29%
Internet . . . 17%

Most Difficult Tasks for FSBO Sellers:
Getting the right price . . . 14%
Understanding paperwork . . . 17%
Preparing/fixing up home for sale . . . 16%
Attracting potential buyers . . . 9%
Having enough time to devote to all aspects of the sale . . . 8%

FSBOs are often mistaken as targets for low ballers. The adage buy a deal, sell a deal certainly has a ring of truth in these transactions. Purchasers feel that since the seller is unrepresented and not paying a commission to a Realtor that there is more room for discounting the price. Purchasers know that since the seller is obviously looking for a deal in the sale, by not using a Realtor, they should benefit too.

Selling a home requires paperwork and FSBO's generally do not have all the knowledge of real estate that they need. All questions asked from a potential buyer should be answered. This sounds easy, but if you are a FSBO who does not have all the necessary information, then it can become challenging. Your knowledge of financing should be on point allowing the buyer to be presented with all the available options.

Realtors do much more than facilitate a transaction. They share the risks of the transaction with you, from advertising costs to many liabilities associated with the transaction. For example, do you know how to properly fill out a disclosure? Most real estate lawsuits are brought by buyers and the most frequent reason is a dispute over property condition. A Realtor knows what you should disclose and how to avoid liability.

"I just don't want to overpay in commissions."

Seventy-five percent of buyers are represented by Realtors, and if the buyers are buying a home from the owner, they are going to expect the amount they pay for the home to be reduced because you aren't paying a Realtor for yourself.
So, if you don't hire a Realtor, all you've done is allow a professional negotiator who is working for the other side to get paid out of the transaction proceeds, you have reduced your price, exposed yourself to tremendous liability and received no help on your side to boot.

So you tell me -- how did you come out ahead?

Should You Call the Listing Agent?

2006-08-11T09:26:00.000-05:00

In my humble opinion the NAR (National Association of Realtors) should do a better job of educating the public on the risks of calling the listing agent of a property. They have done an excellent job on educating the public on buyers agents, and the benefits they bring to the purchaser. Reasons not to call the listing agent are not as spoken of.

I admit, I have quite a few listings and receive many calls from the public on them. Truthfully, most do not buy the home they call on. Their call does give me the opportunity to establish a rapport and hopefully establish a relationship where they use me to find the home they desire. I offer many services that make the process much easier for them, and I can help them get more focused on homes they are truly interested in with less effort on their part. Negotiation is an art I am very accomplished at, this is critical in real estate.

For those who do call on the home they end up purchasing, you are entering into negotiation. Bottom line, the seller wants the most they can get for the house, and the purchaser wants the house for the least they can pay for it. The Realtor who has the home listed is bound to promote and protect the best interests of their client. Producing an uneven playing field for the public.

If you enter into a "dual agency" agreement, the Realtor is representing both sides. What must be understood is: The Realtor may not promote the interests of one client over another. In essence what this means, is the the Realtor has become "like Switerland" representing no one, but only a facilitator to the transaction. Advising no one.

Negotiating the price is not the end. Challenges usually arise during the process. Sometimes these are routine challenges, but other times they are not. Because the Realtor is seen as having conflicting loyalties, there is always suspicions about where the true loyalties lie. Mistrust then comes to full bloom! Mistrust takes a small problem many times and blows it out of perspective.

Information divulged to the listing agent during the initial phone call is shared with the seller. So, any information you have shared, is apt to effect your ability to negotiate the best contract later.

Do listing agents want the calls? Absolutely! The truth is though, having an agent on your side, acting as your advocate, removes the mistrust and keeps negotiations on an even keel. Any challenges that arise you are certain of where your agent's loyalties lie! Plus- the seller pays for you to have a buyer's agent, meaning in most cases your representation is free to you.

Do yourself a tremendous favor, get a buyer's agent. Call them with all the questions you have, about any property, and you will get the answers from someone who has your best interests at heart. When the right property is found, you then have the ability to negotiate from a position of strength. That is where your real power is! Truly curiosity when not properly directed can have a cost.

Did You Know?

2006-08-11T07:33:00.000-05:00

In 1929, President Herbert Hoover sent an emissary to search for a suitable, summer residence in the Shenandoah National Park. The search turned up a cool, well-hidden, stream-fed area just below Big Meadows, cut in two by the Rapidan River. (The term 'River' is a misnomer. It's a small stream, at best). It's elevation above 2500 feet ensured that the President and his party would not be disturbed by Mosquitos. It's location, nestled in a deep hollow, insured security and privacy.

When Hoover finally visited the new site for the 'Summer White House,' his inspection included what is now Big Meadows. Hoover was impressed with what he saw, and what potential it held for recreation if people could easily and safely get to it. Hoover was intent on someday seeing a road built along the tops of these mountains so that others could access the area by motorcar. This was years before F.D.R. finally made it a reality in 1935, when he dedicated the Park at Big Meadows, and in 1939, when the entire 105-mile highway was finally completed. Fortunately, President Hoover was alive to see and recreate along the road that he once dreamed of, although he never gets any credit for its creation.

Currently, the camp is under renovation and restoration to save what structures remain. But the NPS (National Park Service) still wants you to see it. So, they offer twice-daily excursions from the Richard Byrd Visitor Center. These excursions to Rapidan Camp are FREE, but require advance reservations that can be made at the Visitor Center. You will climb aboard a NPS van and be driven to the camp, where a guide will escort you through several structures still open, including the Presidential Cabin.

Charlottesville Market Breakdown

2006-08-08T09:18:00.000-05:00

CAAR Market Break Down

Residential Homes

2005 Compared to 2006

Dates Compared: 1/1/2006 - 6/30/2006 vs. 1/1/2005- 6/30/2005

Detached (2006) 1617 (2005) 1911 (difference) -294

Attached (2006) 275 (2005) 335 (difference) - 60

Condos (2006) 442 ( 2005) 380 (difference) + 62

Farms (2006) 19 (2005) 21 (difference) -2

Total (2006) 2353 (2005) 2647 (difference) -294

We are on target for the second largest year ever!

I agree that the market seems very different this year. We do have a significantly higher inventory than we have had in years. Buyers are more willing to wait before placing offers on a home. They have not been able to do that in years. They seem willing to pass on homes when the seller is not willing to make needed repairs. There have been an enormous number of price reductions, even on new construction. We are seeing more incentives being offered by sellers.

Yes, a tough market calls for a tough marketer. No longer can we (Realtors) expect to put up the sign, enter a home in the MLS, and do a few print ads and get an offer.

I am doing some very creative things for my sellers, and buyers who work with me. Coolest Kid in the Neighborhood allows families to adjust to their new home in hours instead of months. My team takes care of all the details!

We have experienced a minor correction. Property values are still excellent. Interest rates are low. I remember in the 1980's when I closed on my first house here in Charlottesville at 14% interest! I thought I really did something when I refinanced for 10% interest. Never did I think rates would be as low as they are today.

When you consider that most Americans build their personal wealth through real estate, we are doing great in Charlottesville!

Mulch Match?

2006-08-07T09:24:00.000-05:00

The Bossi and Rizzo families, visitors from out of town, were in Charlottesville Sunday evening to spend some time together. The two families were meeting in town to have dinner.

After searching the internet for possible restaurant choices, the Bossi's decided on Ragazzi's , (Did you expect any thing else with names like Bossi and Rizzo?)

The Bossi's pulled into the Shoppers World and parked at Ragazzi's.

While waiting for their friends, they listened to the last four laps of the NASCAR race on the radio. (If your familiar with NASCAR, you know it takes no time to run four laps.) After a few minutes, Mrs Bossi thought she had smelled something burning, but excused it on the confirmation from her husband that she was confused, and, that all was fine.

After meeting with their friends, and upon entering the restaurant, they began engaging in small talk while waiting to be seated. (you know the routine) Not long into their conversation, a report comes in that there is a car on fire in the parking lot.

Several folks from the restaurant got up to see if it was their car a blazin! Unfortunately for the Bossi's, it was their's. 911 was called, and Charlottesville's finest arrived on the scene in what seemed to be only moments.

After further investigation by the Fire Dept, it was determined that the mulch used for landscaping the center of the islands, was in fact the cause for the blaze. Apparently, the heat from their exhaust pipe was enough to ignite the mulch.

In the hot and dry conditions that we've had as of late, there is a lesson to be learned. And no!, its not about eating at Ragazzi's. Great food like Nonna used to make! Rather, that these dry conditions can bring an unexpected fire. Be safe out there!

Did you Know?

2006-08-04T10:20:00.000-05:00

I was surfing around on the web, looking for some local activities to attend, when I stumbled across this interesting story on the Rotunda, and thought, I wonder how many people that live in C'ville actually know this?

On October 27, 1895 an event took place that came to be known as The Great Fire

This coming October will be the 111th year anniversary of this tragic fire that destroyed the centerpiece of the University of Virginia.

The Rotunda was built in a span of 4 years, from 1822 to 1826. The estimated cost was around $60,000. I wonder what it's worth today, and what it's worth would have been if not destroyed by the fire? Something to think about I guess.

Jefferson, who was known as the Father and builder of the University, was born at Shadwell, in what is now Albemarle County, VA., on April 13, 1743. Unfortunately, Mr Jefferson died on July4,1826 before the completion of the structure.

Sixty nine years later, this expression of love to the people of Virginia as well as to the campus itself would burn, leaving only a brick shell and several lonely pillars. As you all know, it has been rebuilt since then.

University students saved what was, for them the most important item within the Rotunda - a life-size likeness of Mr. Jefferson carved from marble that was given to the University by Alexander Galt in 1861. The Rotunda was rebuilt, but with a modified design by Stanford White, a nationally known architect and head of a firm in New York City.

Whereas Jefferson's Rotunda had three floors, White's had only two, but a larger Dome Room.

In 1976 during America's Bicentennial, the Rotunda was restored, at a cost of $2.4 million, to Jefferson's original design. The Rotunda is the symbolic head of the Lawn and the University of Virginia. The Academical Village of which it is a part is one of only four man-made American sites to be named a World Heritage Site by the United Nations Educational, Scientific and Cultural Organization(along with the Statue of Liberty, Independence Hall, and Pueblo de Taos

Personal Foul!! Roughing called on ESPN's Cowherd

2006-08-03T08:52:00.000-05:00

On July 24th Jerry Ratcliffe of the Daily Progress did a story on Colin Cowherd, an ESPN radio host who obviously dislikes UVA football. Throw the flag!!! What a cheap shot, a roughing the passer if you will. Here's just a (bad) taste (left in our mouths) of what Cowherd said.

"UVA football is the softest bunch of creampuff, bow tie wearing, Brie cheese eating, ascot wearing, wussies I've ever seen, Cowherd said. There's not a softer bunch of cookie dough eating weenies than the UVA football program. Those guys wear makeup to games."

He went on to say that the most popular drink at Virginia tailgating parties was Zima, and that the Cavaliers had never won a big game in the history of the program, which he later amended after being informed of the win over Florida State in 1995.

"My bad", Cowherd said. "Mid-90s [UVA] beat Florida State. Eleven years ago. Congratulations."

After these comments, a cold Zima just might come in quite handy, or at least the bottle would. Ha! Ha! Ha!

By the way, what did we do (the fans) to get included in this bashing. Its bad enough to rip the most desirable city in America's football team, but to put the smack down on the greatest fans in college sports, well that's just another matter. I sure hope Mr Cowherd never has the need to move to C'ville, 'cause he just might get benched.

John Paul Jones Arena has First Event

2006-08-02T08:18:00.000-05:00

We hosted Cirque Du Soliel's Delerium at "the Jack" last night. The show was excellent, the building is incredible. Open, Airy, a true pleasure to be in. I admit, I was concerned traffic would be a complete nightmare, it seemed to go quite well. Nothing in life is perfect- this though came very close! I believe the extra signage placed by VDOT made things flow well.

UVA's John Paul Arena (So Very Virginia) offers many opportunities to our community, and I for one am relishing the thoughts of the Basketball season, and thousands of other shows!

UVA Dean RickTurner What Happened?

2006-08-01T13:58:00.000-05:00

The streets are filled with rumors and speculation on what has happened. Has Rick Turner sacrificed his career at the University of Virginia to protect a student? The facts are all missing but it seems from the outcome, it was extremely ugly. This is the man who won the University's Algernon Sydney Sullivan Award, "given to one who helps others because of his love for, and commitment to mankind."

RickTurner has always stood up for African American Students, and he achieved the greatest increase in enrollment, and one of the highest graduation rates in the United States for African American students while Dean at the University of Virginia.

Monday the University announced the interim replacement with Doctor Maurice Apprey. His goal is not change, "but maintaining and expanding the successes we have achieved and how we can maintain, that is my first goal." He starts on August 15th.

If it is true that Rick Turner gained thnotorietyoty at the end of his stellar career by attempting to protect the promising future of someone who made a tragic mistake. I certainly hope that the person who was worth such a great price, remembers all of his life, the cost to Rick and the University even our Community as a whole. The only repayment can be, to Live Up to What is Expected of You!

It is so easy to blame someone or something else, when things go wrong. Just like everything else in Rick Turner's life he continues to be an example. He has admitted his wrong, agreed to comply with the criminal investigation, and moved on.

We wish you the best Rick, we hate to see you go! It truly is our loss!

Charlottesville Nightlife (A Very Different Perspective)

2006-07-31T12:49:00.000-05:00

A College town has some great partying and hip nightlife excitement going on, that is for certain. That is not all there is to our town. For those who want to celebrate the night, in a different way, we are home to the McCormick Observatory, and for those of us who want to dabble in the mysteries of the night there is some great help!

"Promoting the Enjoyment of Observing and Learning for All" is the mission of the Charlottesville Astronomical Society a group of people who promote the enjoyment of observing the stars and planets.

CAS caters to individuals of all ages and levels of astronomical experience. They wish to interest the public in astronomy through naked-eye, telescopic, and binocular viewing as well as through talks and newsletters their organization sponsors.

They offer a lot of information and activities for budding amateur astronomers, as well as those who are simply curious about space. But, most of all, they try to make astronomy a thrilling experience for everyone.

I wish I had thought of this as a teenager, what a great excuse to miss curfew! The group even goes on retreats.

We are fortunate to live in an area that can boast of relatively dark nights and where the Milky Way can still be seen just outside of Charlottesville. Even more reasons to Celebrate the Night!

Charlottesville Tip #1

2006-07-28T12:36:00.000-05:00

Today my husband and I went to lunch at one of our favorite places Bodos, and I realized that many people visiting or just passing through our beautiful City, would not know what a mistake it is to miss this uniquely Charlottesville experience.

We always get a Caesar Salad to share. Lou got a 3 cheese with pastrami, heated on an everything bagel. My favorite is capicola, provolone, tomato, onion, mustard, on a salt bagel. In case you do not know what that is, imagine a soft warm pretzel.....yummmmm!

Read the amazing story. It seemed impossible to happen, since a lot of people here did not even know what a bagel was, much less what to do with it.

Remember the line moves fast! The food is fresh, made from scratch. The cost inexpensive. So Very Virginia as our slogan says! Don't Miss it!

St. Joseph not just a Quick Fix for Fevers!

2006-07-27T13:56:00.000-05:00

The Charlottesville market is still pretty doggone good this year. I know that we keep hearing doom and gloom. But the sales stats in our MLS are running just behind last year! We are on target for the 2nd best year EVER!

I was surprised to find that in other areas people are actually burying a St. Joseph in the front yard. Head down, feet up and facing the street. The thought is that he will work harder for you to get out of the hole. Don't forget they say to dig him up and take him with you when the house goes under contract, which should be very quickly.

Take a look at these sites Tennessee, and Maryland, for those emergencies when you need 24 hour service check here. Virginia also sells the kits at the Board of Realtors office in Richmond.

Somehow, burying St Joseph doesn't seem respectful to me, but it certainly indicates how difficult in some areas the market has become. Northern Virginia is rumored to be off 40% this year. Whew! That will make many turn to spiritual aids.

Mayberry Bed and Breakfast

2006-07-25T18:38:00.000-05:00

With the world so scary today, sometimes you just want to stay home and hide, tune into shows like Mayberry and escape for just a few hours or so. I am a baby boomer, and I find I enjoy the old shows more than some of the new ones. In doing so, our "friends" never age....Barney will always be Barney, and Opie will aways be a little kid, not Ron Howard, the director, who has lost his hair like so many of us. When we heard of Don's passing, the first thought is, this YOUNG BARNEY died.......we forget he was 81 and hopefully had a good, fulfilling life.

They had special ingredients that help in living life really well..the Mayberry folk hardly ever left town... they were satisfied to just live life in their town..we all should learn to live simple and live life just like them. They used their time on enjoying thoughts and feelings and sweet memories of their loved ones, and we enjoyed it with them.

I found a Bed and Breakfast that replicated Mayberry inWisconsin. Choose to stay in Aunt Bee's room, Andy's room, or Opie's room. It just seems right!

Has "The Donald" Been Trumped?

2006-07-24T11:30:00.000-05:00

For those who are in the know, Donald Trump placed his Palm Beach Home on the market recently for $125 million. This is the most that has probably ever been asked for a single family residence. He completed the remodel and is ready to move on.

America's Most Expensive Home on the Market. Today we have the newly listed Aspen (CO) home owned by Saudi Prince Bandar bin Sultan bin Abdul Aziz, who is selling his estate to pursue his new responsibilities as chairman of his nation's new national Security Council. Windcliff Estate is being offered at the incredible $135 Million.

According to Laurie Moore-Moore, founder and President of The Institute for Luxury Home Marketing, "The current world record for the most expensive residence was set in 2004 when a London home sold for $128 million. While Prince Bandar's property may break that record, don't look for it to happen quickly. Despite the increase of personal wealth worldwide, there are few buyers internationally who are in a position to purchase a property of this magnitude." According to Moore-Moore, this is a trophy house and its appeal will not only be its size and the unique features it offers, but the opportunity for the buyer to own the world's most expensive residence.

If you are looking for further information please contact Carol at FineVirginiaLiving.com immediately!

Have Cell Phone? Check Out Home Values!

2006-07-21T20:46:00.000-05:00

If your cell phone is equipped with GPS, then you could soon be checking the values of the houses in the area where you are, on your cell phone. Check out this article.

Just think of the possibilities! You could check the value of the home, as you pull up in the driveway, and come into the dinner party thinking, "I can't believe what they paid for this!"

I guess if you are a criminal, your thought may be if they paid this much for the house, certainly there are things inside I will want to take!

Sprint is providing what is in the public records, and for the most part already available online. I already have the MLS available to me on my Treo, which has been a wonderful addition. I can answer almost any question, my Clients have - immediately.

I can say there have been several times when showing homes, I have been asked how much is that house? Why aren't we going in there? Are there any other homes available in this neighborhood? It is fabulous to be able to answer those questions on the spot! I can see what is under contract and sold too! It is a tremendous value I offer my clients, that most Realtors in Charlottesville do not.

Is Sprint offering something of real value to cell phone users?

Trading in Real Estate?

2006-07-21T08:01:00.000-05:00

What Can You Get for One Red PaperClip?

I was watching TV the other night, and they did a story on a man who traded his red paperclip for a house. Yes, this is for real!

"My name is Kyle MacDonald and I traded one red paperclip for a house. I started with one red paperclip on July 12 2005 and 14 trades later, on July 12, 2006 I will trade with the Town of Kipling Saskatchewan for a house located at 503 Main Street. "

Read his story here it only took 14 trades:

I have a yellow highlighter that I will trade for something else!

Condos or Condominiums?

2006-07-20T12:44:00.000-05:00

Wow! Now that I have your attention, there was an article in the New York Times Playing the Sex Card
that reveals using, of all things, SEX to sell Real Estate. Though I have not seen any of that here in our Charlottesville area. I do see area brokers selling lifestyles, with young urban professionals (really themselves in the TV ad!) entertaining one another on the roof of a local building. Sharing secret passions as they enjoy life in the Frommers Cities Ranked and Rated Number One - Charlottesville!

I know that we have created a lot of affordable housing with the conversions of Walker Square and Riverbend and 1800 Jefferson Park Avenue which is located at Thomas Jefferson's University of Virginia.

Los Angeles just had their Broker Boys and Babes contest. I doubt we will see anything like that here, since the average Realtor in our area is over 50! We concentrate instead on our community involvement, and our desire to improve the lives of those who live here. Wonder if that will change?

Second Quarter Market Report

2006-07-19T15:25:00.000-05:00

2006 Second Quarter Market Report
Charlottesville Goes Condo Crazy

By Dave Phillips, CAE, RCE
CEO, Charlottesville Area Association of REALTORS®

Aaron Levenstein once said that “statistics are like bikinis – what they reveal is suggestive, but what they conceal is vital.” The numbers in the 2006 Second Quarter Market Report are very enticing, but to understand the full story of the changing real estate market, you have to dig a little deeper. There is no doubt that the local market has changed dramatically in the last twelve months – for better or worse, depending on your perspective – but the vital information about the health of this market is just below the surface of the numbers.

There are three significant changes that we must keep in mind when analyzing the current market. First, the current inventory of homes on the market is significantly higher than this time last year (2669 listings compared to 1368 last year). The law of supply and demand always rules the marketplace, so this giant leap in inventory has a dynamic affect on all of the numbers in this report. For the last several years, the rapid price increases of area homes and the shrinking number of days properties stayed on the market were directly related to the low inventory levels of homes on the market. The new high “supply” of homes for sale is starting to show in the market numbers in the form of slower price increases and a growing number of days it takes to sell a home.

The second major change that is affecting the market numbers is the explosion in condo sales. Even a casual observer of the local real estate market has probably noticed the number of condominiums for sale – either from new construction or from apartment conversions. This trend started hitting the market in early 2005 and has picked up significantly in 2006. While some of the new condos are higher priced “luxury” units designed for aging baby-boomers looking for a low maintenance lifestyle, most are affordable units being snapped up by investors, first-time home buyers and members of the Charlottesville work force.

The third change you should keep in mind while pondering this market report is a worldwide trend that is as true in Charlottesville as it is in Tokyo – people are moving back into the city. After decades of steady migration to the suburbs, people are starting to move back into cities. Charlottesville has shown a steady increase in population since the 2000 census and this trend is starting to show up in the market statistics.

Overview
The second quarter of 2006 was a continuation of the second-best start to a year for home sales in our area. According to figures from the CAAR Multiple Listing Service, 2075 homes were sold in the Charlottesville market area (including the counties of Albemarle, Fluvanna, Greene, Louisa, and Nelson, and the City of Charlottesville) in the first six months compared to 2300 in the previous year. (Note: total figures include all properties reported to the MLS even if they were outside the main market areas.) Although sales were down from last year, they were still 7% higher than the first half of 2004 (which was a record year at the time).

Each quarter, CAAR publishes market statistics on the number of transactions closed, the number of listings that went under contract, the median sales price, the average days on market, price per square foot, and the number of new listings. These figures are tallied on a year-to-date basis every quarter and are compared to the same information from the previous year.

Transactions Closed
As mentioned, one major difference between this year and last is the number of condo sales. Last year, Albemarle saw an explosion in condo sales and this year, Charlottesville has seen a similar shift in the marketplace. Second quarter results by area are mixed in 2006 with Albemarle, Fluvanna, Louisa, and Nelson, showing decreases in sales, Greene remaining steady, and Charlottesville posting an amazing increase. The dramatic increase in sales in the city is directly related to condo sales. Traditionally, Charlottesville has averaged between 30 and 40 condo sales in the second quarter, but in 2006, 133 condo (or attached) properties were sold in the city. Nelson’s decline, on the other hand, may be a signal of a fundamental shift in the popular resort market. Sales at Wintergreen Resort have dropped to the lowest level in three years which may indicate that the resort property frenzy peaked in 2005.

Under Contract
Properties that are “under contract” (or pending) are ones that have a ratified sales contract that has not yet closed. This is, of course, an important indicator of how the closed transaction market will perform in the coming months. The second quarter “under contract” figures for 2006 were down only 2.8% from the same period last year, but a closer look at the numbers tells a different story. Based on the number of pending transactions in the second quarter, we can expect current trends to continue – Charlottesville numbers up due to condo sales and other areas will likely be down slightly. For the second quarter, 1271 listings went “under contract” in 2006 compared to 1307 during the same period last year. This should point the way to a soft third quarter for 2006 (at least compared to last year).

Median Sales Price
The median sales price is a better indicator of what the “average” home in our area sells for than is the “average” sales price. Our area has many estates and homes that often sell for more than a million dollars. In the second quarter of 2006, for instance, 23 transactions were closed for over one million dollars. Such properties distort the average sales price figures dramatically. The median sales price, on the other hand, is the number that represents the middle of the market. 50% of the homes in our area sold for more than this price and 50% sold for less than this price. The median sales price for the entire market area in the second quarter of 2006 was $265,000 which is $20,000 more than the previous year’s figure.

The overall market, including properties outside the areas listed, increased by 8% which is the smallest increase in several years. (Note: Charlottesville’s median price was flat due to the significant increase in the number of affordable condo units sold this year.)

Days on Market (DOM)
It is no surprise that the average days a property stayed on the market increased for the second quarter in a row. This is directly related to the significantly increased inventory of homes on the market. What was surprising is that the DOM average only increased slightly in the second quarter. The average DOM for all sales reported in the Multiple Listing Service was just 69 days, which is 10 more days than the previous year. Anything below 100 days is a sign of a hot market, so our local market remains heated despite cooling compared to last year. Louisa was the only market to show a decrease in DOM for the second quarter (61 days which is down 24 days from last year). Greene and Charlottesville showed moderate increases coming in at 88 days (+23) and 69 days (+18) respectively. Albemarle 57 (+7) and Fluvanna 66 (+2) showed only minor increases.

New Listings
As stated above, the major factor that affects the DOM statistic is inventory. If the inventory of homes for sale is low, then there are fewer properties for buyers to consider and properties sell more quickly. CAAR tracks the number of new listings that come on the market each quarter to help us monitor the inventory of available homes. There has been significant growth in the inventory over the last 12 months. As of early July, 2006, our database has 2,681 homes actively listed for sale. That is almost double the 1,368 homes on the market this time last year. This is a rather amazing turnaround since inventory has been very low for the past five years or more.

This change indicates a fundamental shift in the market – a return to normalcy. The rule of thumb is that a healthy, balanced real estate market has a 5 month supply of homes available for sale. Less than that and it is a seller’s market, more than that and it is considered a buyer’s market. For the past several years, we have experienced a strong seller’s market and prices have gone up rapidly. Now, we have about six months of supply in inventory which indicates we are now in a buyer’s market. After seven years in a seller’s market, this change is going to cause buyers and sellers to have to adjust their behavior during a transaction. Sellers should no longer expect multiple offers and quick sales and buyers can now take their time to select between several properties.

Price per Square Foot
This category helps us track the affordability of housing across jurisdictions in our area, but it is important to understand that this figure is not completely accurate. Each home is a different mix of land, location, style and amenity, and this figure does not take this soft data into account. CAAR considers this to be an interesting statistic, but not one that should be used too widely in comparing properties. In the second quarter of 2006, the most expensive area per square foot was Charlottesville at $211 (up 28% from last year). The other areas were as follows: Albemarle $186 (up 12%), Fluvanna $144 (up 13%), Greene $160 (up 17%), Louisa $161 (up 33%), and Nelson $191 (up 2%).

Conclusions and Forecasts
At the beginning of the year, I predicted that 2006 would be yet another record year for home sales in the Charlottesville area, but only by a small margin. It appears that I was a little overly optimistic and will need to revise that prediction. Instead of setting a new record for home sales in 2006, this will be the second best year for sales in Central Virginia (only surpassed by 2005). I also predicted that we would continue to see prices increase, but by a more moderate rate in the 8% to 10% range and that homes would continue to sell quickly by historic standards, but probably not quite as fast as 2005. Both of those predictions are on track and should hold true for the balance of the year. All in all, 2006 is going to be a great year for real estate in the Charlottesville area.