More Good News
November 23rd, 2009 categories: Real Estate News, Relocating
Invariably, in the course of conversations with friends, one of the topics that normally arises, is the subject of the homes. Usually, the mention comes in the form of, “How’s the housing market?”
Other than the dramatic shock to financial markets during the year following the height of the housing market and subsequent rapid fall in home prices, the sales market has been fairly predictable. Once lenders got a grip on the deluge of foreclosures and short sales, and this glut of properties began to be adequately handled by them (O.K…so, they’ve still got problems with Short Sales, but they’re getting there), the housing market has been relatively stable.
Today’s latest news on the surge in home sales isn’t news to those of us in the business. As one prospective home buyer in the latest USA Today article mentioned, the market is “insane….I’ve never seen a market like this before.”
That, after having finally securing a home following unsuccessful offers on 20 Las Vegas homes. And, while the rush to “get in” and take advantage before the First Time Home Buyers tax credit offer expired can partly be credited with the robust sales numbers, it doesn’t hurt that home prices, in many locations nationwide are 30-50% less than they were in 2005, or that interest rates are rock bottom.
Many believe that home prices have stabilized. But, with more foreclosures and Short Sale properties landing on the market weekly, we may not have seen the bottom quite yet. With extension of the tax credit, and mortgage rates in a low holding pattern, the surge in home sales numbers may, if we’re fortunate, become a trend instead.
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Campus Life Comes to Stafford
August 4th, 2009 categories: Real Estate News, Relocating
We recently witnessed a first in North Stafford; a ribbon cutting ceremony inaugurating Germanna Community College’s (GCC) fourth location. With Governor Tim Kaine doing the honors, the GCC Stafford Center in Aquia Park was unveiled. Occupying almost 5,000 square feet of building space, the “campus” is one of the featured attractions of the ongoing Aquia Park development.
The initial semester begins just over a month from now, on August 20th. To begin with, classes in algebra, accounting, management, and Spanish will be offered. In addition, they’ll be courses in art history sociology and religion. Plans are to accomodate more than 1,000 students in the first semester.
While the new campus is simply the beginning of a larger plan to establish a free-standing GCC campus in North Stafford, expansion will have to wait until land is donated or secured for the larger facility. For Stafford area residents and homeowners, the new campus is a welcome site. Not only does it help with the region’s economic development, but, for those ready to step into community college life, it provides the option of little or no commute to and from school.
Attendees can enjoy the luxury of the new location, and realize they’re in “on the ground floor”. They’ll be able to take advantage of the small classroom sizes and helpful teacher/student ratios while they last. Because, after all, this is Northern Virginia, and new people and places don’t stay hidden for too long.
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Short Sales – The Good, The Bad, The Ugly!
July 3rd, 2009 categories: Real Estate News, Relocating
The term “Short Sale” has become common place in housing markets over the past few years. Yet, for many, what a short sale is, and how it becomes a reality, is still a mystery. A short sale is a sale of real estate in which the proceeds from the sale are less than, or “short of”, what’s owed on the balance of the loan securing the property being sold.
The Good
At first glimpse, one might wonder why a lender would ever entertain such an arrangment, accepting less than what’s owed on a loan. In most cases, the owner(s) are “upside down” with their mortgage. In other words, they owe more than their property is currently worth. While there are various reasons why owners are in their current distressed state, the good news is that banks have begun to embarace the short sale process. Foreclosing on properties isn’t in anyone’s interest – especially banks. According to the legal counsel for the Virginia Association of Realtors (VAR), the average foreclosure costs the bank approximately $65,000. That’s not what they lose on the loan payoff. That is simply what it costs the bank to handle or manage the foreclosed property. For banks, avoiding foreclosure simply makes monetary sense.
Additionally, the Administration and Congress have moved to stem the foreclosure rate and make short sales a more standardized and acceptable choice for lenders. A push from lawmakers to improve and simplify short sales has encouraged banks to embrace this option for homeowners, avoiding further emotional and financial pain that would ensue if foreclosured on.
The Bad
From a Realtors point of view, handling a short sale transaction is never easy. On the selling side, there are two other major participants in the process, the homeowner (Seller) and the bank (Lender). Each of these bring with them potential problems. The good thing is, the homeowner is usually approaching the transaction as a motivated party. Unfortunately, that rarely seems to be the bank’s case.
Complicating matters further is the lack of national standardized short sale procedures, and no mandated cummunication timelines between banks and realtors (who represent their clients). If there’s anything more frustrating for the real estate community than their fruitless attempts to reach the proper point of contact at the bank when dealing with a short sale, I’m unaware of it. If the short sale cummunication and coordination process was designed any poorer, it would be DOA. But, fortunately, despite the piecemeal structure, many of the transactions do close….eventually. But, “muddling through” is no way to conduct business.
The difficulty in successfully executing a short sale is due to more than poor coordination and communication. Aside from these stumbling blacks, two other hurdles must be overcome. The first involves the banks, the other, the real estate community.
The Ugly
While we’re almost four years into the Mortgage Meltdown, banks have yet to hire enough personnel to handle their short sale and foreclosure workload. We’re routinely informed that negotiators and asset managers are beset with caseloads of 300 or more. With numbers like those, how can we expect success? Within the Realtor community, it isn’t the numbers that are the problem, it’s the lack of know how.
Many Realtors handling short sales or foreclosures lack the training needed to properly do the job. The Commonwealth of Virginia has no training requirement for handling these types of transactions. Many agents, if trained at all, do so after “muddling through” their first few such transactions. Wouldn’t it be smarter to have the training prior to accomplishing the task? How can a professional do the job without knowing what has to be done? And, who is paying for the mistakes made along the way?
Both Short Sales and Foreclosures have excellent certification programs available. For the former, the Certified Short Sale Professional (CSP), and the latter, the Certified Foreclosure Specialist (CFS). But, unfortunately, many who should be taking these courses aren’t.
Today, in many regions of the country, shorts sales and foreclosures account for more than fifty percent of real estate transactions. Luckily, there is an abundance of information on the subject available from lenders, the real estate community, and best of all, online. Time and experience has resulted in greater success in navigating each of these unconventional property sales approaches. But the players involved, and the processes, have miles to go before can begin to claim the process works well.
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Dropping Into Your Lap
April 4th, 2009 categories: Market Trends, Real Estate News, Relocating
“Doubtless one man’s loss is another man’s gain.”
Walter Scott, 1821
Yesterday’s New York Times featured an article on the influx of first time homebuyer’s who’ve taken advantage of the current real estate market, which is flush with foreclosured homes for sale. Of course, “foreclosure property” normally means a home priced at a bargain.
The article highlighted a few bright spots in the evolving housing market:
1) Many families, who previously rented, are now finding bargain prices coupled with rock bottom interest rates, resulting in increased purchases.
2) The addition of the first time homebuyers tax credit of $8000.00, coupled with bank incentives (like closing cost assistance for buyers) on listed foreclosed homes has encouraged many to purchase a home for the first time.
3) Additionally, many buyers ar taking advantage of current Federal Housing Authority loan requirements which allow for lower credit scores and a down payment of 3.5 percent of the purchase price of the home.
For many of us in the real estate industry, the Times article is anything but surprising. The price depression is something you’d have to be blind to miss. Coupled with low interest rates, and now, prime buying season, those interested in purchasing a home, who may have been on the sidelines waiting for the dust to settle, have decided it’s time to get in the game. Perhaps they’ve heard the old adage; “Never look a gift horse in the mouth.”
If you’re one of those on the sidelines, don’t you think its time to get moving? Believe it or not, the great deals won’t be there forever.
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Living to Fight Another Day
June 9th, 2008 categories: Entertainment, Military Installations, Relocating, Spouse Stuff
Road expansion is something most of us can’t get enough of in Northern Virginia. For those travelling North or South, Interstate 95, or Route 1 (Jefferson Davis Highway) are the only direct corridors available for vehicles heading toward a destination. While we applaud the road widening, the new development also resulted in some casualties along the way. When the Virginia Department of Transportation (VDOT) decided to widen Route 1 in Prince William County, just north of Quantico, the Globe & Laurel restaurant found itself on the chopping block. 
In business for nearly 40 years, it now found itself out in the cold. The Globe & Laurel closed its doors on April 30th. For the second time, its owners, former Marine Major Rick Spooner & his wife Gloria, had to find a new home. Their first such venture occurred after the original Globe & Laurel, which opened in 1968, located in Quantico Town, burned down. After attempting unsuccessfully to find another location in Prince William county to begin again, the Spooner’s were able to find some help a little further South along Route 1, in Stafford County. With the assistance of Stafford’s Economic Development Authority, they were able to secure the building that formerly housed The Keep, and then Philly’s, both restaurants, similar to The Globe & Laurel. With loads of renvoations needed, Stafford’s EDA pitched in both short term and longer term contributions, the former being $50,000, the latter $33,000 per year for the next three years.
In the food business, one’s reputation is priceless. Do a google search for the The Globe & Laurel, and see what you find. What you’ll find is visitor after visitor, patron after patron, that can’t say enough about the food, the atmosphere, and the great hosts it has. It truly is a unique establishment. Beginning with the tartan carpet, you’ll find a familiar pub like interior design, a distinctive selection of wines, and the a local favorite brew, Leatherneck Lager. While the atmosphere sets it apart from the everyday eatery, Maj Spooner has never wavered from his desire to provide his patrons more than just a meal. He wants them to leave not only well fed, but also well cared for. The service is second to none with the Spooners leading by example as they greet those heading in to dine. Often , you’ll find the Major making his way around the restaurant, ensuring those already dining are enjoying themselves. 
The Globe & Laurel is a rare find. While you’ll enjoy the food & drink, you’ll take away much more after a visit. If you’re lucky, you’ll have a chance to chat with the Spooners, especially the old Marine who has already shown that it takes more than the government to keep him down. As Yogi likes to remind us, “It ain’t over til it’s over.” And, for Major Spooner, this new venture probably seems more like, ”deja vu all over again!”
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