Real Estate Information

Just maybe now is the time to pull some of that money out of the stock market and grab a few investment properties.  Prices are way down and  interest rates are still low (for now anyway).  I am sure you have lots of questions and wonder if it really is a good place to put your money.  The Savage Team has now partnered with OwnAmerica and we've been given some tools to help you with that decision.  Our investment calulator will help you decide if it really is a good investment and will help to predict your rate of return.  Check out our investment calculator and tell us what you think

A few year back I purchased a vacation timeshare rental at the Atlantis Resort in the Bahamas.  I know, as a real estate professional I should have known not to buy a timeshare, but this one is different.  I've now been to Atlantis so many times I need a break and I don't plan to go in 2013.  But, you can.  I've always enjoyed taking my friends and family there just to see the expression on their faces.  It has to be seen to be believed.  To say it is gorgeous is an understatement. I even got married there almost 3 years ago.  So, if you would like to get away next January for a warm climate let me know.  I have a 2 bedroom lockoff unit which really means I have two one bedroom units with a connecting door.  Each unit also has a sofa that converts to a bed so it technically sleeps 8 comfortably.  It can also be rented separately too.  The rack rate for the two bedroom unit is $6600 but I will rent it for $5500.  If they are broken up separately the premium 1 bedroom will be $3000 and the regular 1 bedroom will be $2700.  I plan to list these with a broker soon and then I won't be able to offer the discounts, so now is the time to act.

Call or email me today   434-466-7130  or judy@savageteam.com

This year RE/MAX Internationals ad theme is "for all the things that move you".  It's focus is about all the life events that cause folks to move.  Well, the Savage Team figured that out last year and I like to think we are a little ahead of our time.  Last year our theme was "Life Changes" and it was about the same thing.  The reason we built our marketing campaign on that was because we realized that in a down market people don't move unless there is a life changing event.  But, those happen all the time.  A couple gets married, they have a baby or two, someone looses a job, someone passes away and the list goes on.  Despite down real estate markets people will always have to move, not necessary because they want to, but because they have to.  When your life changes and circumstance MOVE you, we hope you will call the Savage Team to help you with that transition.

Almost every week I get an email from a client or a relative asking if a "chain" letter they have received about the new tax on real estate that Obama Care is going to levy upon the sale of real estate starting in 2013 is true. I am not an accountant and give you this information just as a simple answer to the misconception. Understand that, when it comes to IRS regulations, you should check with your accountant for the most accurate and up-to-date information. 

Fact Check.org explains it this way:

The truth is that only a tiny percentage of home sellers will pay the tax. First of all, only those with incomes over $200,000 a year ($250,000 for married couples filing jointly) will be subject to it. And even for those who have such high incomes, the tax still won’t apply to the first $250,000 on profits from the sale of a personal residence — or to the first $500,000 in the case of a married couple selling their home.

Now, I don't know about you but if I make a profit of $500,000 on my home I will gladly pay the government a 3.8% tax on the amount over $500,000.  We should all be so lucky.....With what has happened to the real estate market in the last three years I don't too many of us will be subject to the tax.

As with any of your real estate questions, please give us a call and we'll be happy to discuss it with you.  If we don't know the answer we will find someone who does.

A San Diego firm has publicly taken on the big listing aggregators out there, Zillow, Trulia and even our own Realtor.com.  I watched this video and I believe each point this gentleman makes are accurate.  We Realtors have helped to create this monster and it may be too late to put the genie back in the bottle.  Every day I get someone contacting me about a property from either Zillow or Trulia (and now even Realtor.com) of which I know nothing about.  They think I am the listing agent many times.  For full disclosure, I am a "Premier Agent" on Zillow and I pay to show up in certain zip codes.  My clients have sent in testimonials about my performance which means I am a "five star Realtor".  I pay a fee to show up in those zip codes and for my face to show up on listings that aren't mine but in return, since I do pay them, they promise to brand my listings with my information and not someone else.  Realtor.com has made a habit of selling banner ads and featured home ads to us for a long time.  My office pays a hefty fee each month (over $1000) to have our listings be "showcase" homes so that up 25 pictures show up and our listings are branded with REMAX Assured Properties and the agent's contact information is shown with the listing. 

Not all Multiple Listing Services send their listings to Trulia, Zillow or even Realtor.com.  In Charlottesville, our board of directors decided a few years back to only send to Realtor.com because that was the site of the National Association of Realtors. The syndication of listings was delegated to the individual offices.  Our office subscribes to List Hub and service that sends our listings our to sites all over the web.  The feeling being that the more places our listings showed up the better it was for our sellers.  More exposure means more buyers are looking at the home. 

Just this morning I got an inquiry from a buyer about a listing that was not mine and was under contract.  That listing was still showing active in Trulia although it was now under contract.  The aggregators are quick to upload the listings but not to update them.  They seem to like to have lots of property out there regardless of the status.  I emailed her back and told her it was not available and let her know that much of the data she sees on Zillow or Trulia is not up to date and she would be best served having a Realtor sending her information on the criteria she was looking for.  She agreed and sent me her must have list along with her contact information.

Almost everyone starts there search online and who knows where they will look first.  I tell my Seller's these days their first showing is online and if it doesn't look good online they won't get the second showing.  We are at a crossroads, in my humble opinion, of which way to go.  Do we pull our listings from these aggregators and rely on our own websites and MLS sites to satisfy the hunger of the cyber buyer out there, or do we accept that we've opened the barn door and find ways of conducting our business that will be beneficial to our Sellers and yet give Buyers accurate information that will help them in their buying decisions.  It's something to ponder, what do you think?

Here is the video from the President of ARG in San Diego.  Your comments are welcomed.

RE/MAX CEO, Margaret Kelly posted this video recently on YouTube.  Watch it and then I'll make my comments.

We all, me included, have been saying it's a good time to buy since 2008.  None of us ever expected that the housing bust would last as long as it has.  I've been in this business for 26 years and never in 1000 years did I ever think we would see 20% of our Charlottesville market be short sales and foreclosures.  It's happen and it's a fact.  Prices have fallen as much as 25% in some areas and even those buyers who did all the right things now find themselves upside down in their home.   But, I do believe prices have stabilized and Sellers have gotten the message.  Prices now are more reflective of the actual market than they were two years ago.  Everyone, Realtors and Sellers, have gotten the message that Buyers won't buy unless the price is right and the condition is perfect.  My Seller clients often hear me say "It's a price war AND a beauty contest, and YOU have to win both."  That's not to say everyone has accepted the realities of this market, there are some properties that are STILL overpriced.  It takes an experienced Realtor to separate the  good from the bad.

As far as prices, they do seemed to have stabilized and I think (I hope) we won't see much further depreciation in 2012.  I don't have a crystal ball, and my thoughts are also hopes.  It seems that when I am pricing a home today using comps that are only 4 or 5 months old that my suggested price to my clients is pretty much on the mark.  My listings in 2011 sold for 98% of what I listed them for.  Pretty good.....if I do say so myself. 

So, if you are thinking of buying a house in 2012 I think this has been the best time in a long time.  Interest rates are SO low!  I can't imagine they will get better, only worse.  If they go 1% higher (and they will) next year, even if prices do drop another 2 or 3%, your payment will still be higher.  You should really look at what happens if interest rates go up another percent.  That in itself will make a difference.  You need to buy now, even if you don't buy from The Savage Team, just do it!

I wonder how many people out there could be sitting in their own home right now but are afraid that they don't qualify for a mortgage loan.  Let me tell you, there are THOUSANDS!  Let's be honest, many people are intimidated by bankers, lenders and loan officers.  They picture them sitting behind a big desk, grinning ominously while peering over a stack of papers preparing to ask you a slew of personal questions.  You don't like "asking" for money, you feel like you're asking for a favor.  Believe me, YOU are the one doing them a favor.  If they don't "sell" a loan, they don't get paid.  They really are on your side and they know they have to satisfy you to get your business.  There are so many programs out there that require little or NO money down, with very attractive interest rates, you may be fooling yourself if you think you can't qualify for a mortgage.  Your Realtor can give you names of  many mortgage lenders that they deal with on an almost daily basis that can show you how easy it is to qualify for a loan.  In many cases all it takes is one phone call and ten minutes of your time.  Most Realtors will accompany you to visit a lender so they can help explain all the different loan programs and assure the lender that you have an experienced real estate professional representing you.  Contact a Realtor now and let him help you on the path to home ownership.  

Used properly the FHA 203(k) Renovation Loan is a great investment tool!  Yes, you can only use it for an owner occupied dwelling but did you know you can buy a duplex, triplex or fourplex as long as you live in one of the units?  Yes indeedy.  The renovation part of the loan can only be used to repair or renovate the unit you will be living in but you can live there while you rent out the other unit(s).  You can also use it to buy a mixed use property like offices or retail in one part and apartments in the other.  You'll only have one mortgage and one payment and the interest on the renovation funds are tax deductible the same as the mortgage funds!  Collect rent as you upgrade the other units.  Call or email me for more information.

This used to be a difficullt question to answer.  I don't think it is difficult anymore.  Let's look at it.  One factor that doesn't even come into the equation anymore is the length of time you plan on living in the home.  In this market, and I hope my colleagues forgive me for saying so, if you plan on living there for only a couple of years, don't buy a home.  With all the closing costs and bank fees it doesn't make sense in a slow market to buy a home you plan on selling in two or three years.  Unless you know your house will appreciate in the short run go ahead and rent a place.  And if you know it's going to appreciate, please share your system with me ( I won't tell anyone.)

A 15 year mortgage saves you lots of money.  If you can afford the higher payments.  If you keep your job and if you don't have to move for some unforeseen reason.  (Like a better job.)  If you have to move and you can't sell your home, can you rent it at a price that will cover the higher mortgage payment you are making?  If not, the negative cash flow could cripple you financially.  You can keep renting and losing money or you can sell at a loss and lose money.  Your choice.

In this market, with the ultra low interest rates, I believe the best option is a 30 year mortgage.  In fact, if I could lock in a loan for 40 years I would do that.  With inflation on the rise you will be paying back the loan with ever cheaper dollars.  A 30 year loan also gives you the flexibility to make extra principle payments and save thousands in interest that way.  (Be sure your note has a clause expressly allowing this.)  

Since you've read this far, you're probably a serious student of the home buying process.  Keep reading, keep studying, keep watching all the markets.  You'll do well.

So, you've had an admiring eye on a house in your neighborhood and lo and behold it has a For Sale sign in the yard.  What do you do?  Why, you call the listing agent and tell her you want a tour of the home.  Not so fast.  While Realtors love to sell homes, they are not tour guides.  (In reality, I happen to also be a volunteer tour guide but you catch my drift.)   There are four questions an agent will ask you before they show you a home.

1)  Do you own the home you are in?  (If you do and it is not on the market, how are you going to buy another one?)

2)  Do you rent your home?  (If you do and you have lease obligations, how are you going to buy?)

3)  Have you been pre-approved by a lender?  (If not, how do you know you can afford this home?)

4)  Are you working with an agent?  (If you are, you should have your agent show you the home.)

To save yourself time and disappointment, get pre-approved by a lender.  You'll know exactly how much home you can afford.  A good Buyer's Agent can walk you through the process.  ( I go to the lender with my client to explain and interpret "bankerese".  It also alerts the lender that the buyer has someone there familiar with the process so they don't try to sell you on a loan that might not be the best for you.)  When you know that you qualify for a loan you can put in motion the other steps in the process.