Charlottesville Real Estate Talk

Buying A Foreclosure in Charlottesville

We have all heard the news media talking about the growing number of foreclosures across the country.  Charlottesville and Central Virginia do not have as many bank owned properties on the market as many parts of the country, but we do have them.  Lured by the possibility of purchasing a Charlottesville foreclosure for a very good price, there is a lot of interest in these homes.  Both investors and buyers looking for a home to live in are curious about foreclosures.

Lets look at what the foreclosure market is like in the Charlottesville area? I will also talk about what kind of REO properties are available in our real estate market and what is involved in purchasing one?

Contact Pam Dent, e-PRO, SRES, SFR, President Blue Ridge Chapter Women's Council of Realtors, Montague Miller & Company, Charlottesville, Virginia at 434 960-0161 to buy a property in the following areas in Central Virginia: Charlottesville, Albemarle County, Keswick, Glenmore, Ivy, Crozet, Earlysville, Free Union, Cismont, Scottsville, Fluvanna County, Palmyra, Lake Monticello, Louisa County, Louisa, Mineral, Spring Creek, Orange County, Gordonsville, Orange, Barboursville, Greene County, Ruckersville. Email Pam Dent.

Licensed to sell real estate in Virginia.

View all of the Charlottesville Virginia homes for sale.

View my website Charlottesville Horse Farms or visit my other blog Charlottesville Horse Farms and Country Homes for more information on Charlottesville Virginia horse farms, homes, events and real estate.

Copyright 2012 by Pam Dent all rights reserved "Buying A Foreclosure in Charlottesville".

Charlottesville Seniors Real Estate Specialist

Many seniors are overwhelmed when faced with the prospect of relocating to a new home.  This is the perfect time to enlist the assistance of a seniors real estate specialist.  A real estate agent who has attained the SRES designation has been trained to assist seniors and their families with this often difficult transition.

The term senior can cover a wide range of ages and needs.  Some seniors have given a great deal of thought and planning to this next stage of their lives.  They can tell their Charlottesville senior residential specialist, exactly what neighborhood they want to live in and what kind of home they are looking for.  For others this change is thrust upon them quickly and unexpectedly as a result of an illness or other health issue or a death of a spouse.  They and their families may be bewildered and looking for answers.  It can be a very stressful time.  A real estate agent who is knowedgeable about the options that are available is a welcome asset.

Seniors and their families may need help with getting their homes ready for sale as well as packing and moving. A Seniors Real Estate Specialist will have the resources available to do these jobs that are one more thing the senior may find overwhelming.  At Montague Miller we have a concierge service with a long list of vendors who can do whatever task is needed.

At this time of transition there is a wide range of possible housing options depending on each person's situation. The senior may just want to downsize to a smaller home with one level living.  He may prefer to find a home in a golf community with a country club and activities to enrich a retiree's days.  An age restricted or active adult  community will appeal to some.  Finding a home with lawn maintenance included in the HOA is often a requirement.  Some seniors no longer drive and will want a home close in to town and public transportation or taxi service.  There are as many possibilities and combinations of possibilities as there are people.  You real estate agent who specializes in seniors relocation will be able to help you sort through all of the options to choose exactly what is best for you or your family member.

Charlottesville offers many excellent housing opportunities for the next stage of your life.  Let a Charlottesville Senior Real Estate Specialist help with your life transition.

Contact Pam Dent, e-PRO, SRES, SFR, President Blue Ridge Chapter Women's Council of Realtors, Montague Miller & Company, Charlottesville, Virginia at 434 960-0161 to buy a property in the following areas in Central Virginia: Charlottesville, Albemarle County, Keswick, Glenmore, Ivy, Crozet, Earlysville, Free Union, Cismont, Scottsville, Fluvanna County, Palmyra, Lake Monticello, Louisa County, Louisa, Mineral, Spring Creek, Orange County, Gordonsville, Orange, Barboursville, Greene County, Ruckersville. Email Pam Dent.

Licensed to sell real estate in Virginia.

View all of the Charlottesville Virginia homes for sale.

View my website Charlottesville Horse Farms or visit my other blog Charlottesville Horse Farms and Country Homes for more information on Charlottesville Virginia horse farms, homes, events and real estate.

Copyright 2011 all rights reserved by Pam Dent "Charlottesville Real Estate Specialist".  Written by Pam Dent.

Buying A Charlottesville Foreclosure - What Does "As Is" Mean?

You have been looking at bank owned properties for sale and see that most of them say "sold as Is" or "sold as is where is" on the listing.  What exactly does that mean when you are buying a Charlottesville foreclosed home?

REO's can range in condition from homes that are move in ready to homes that have been trashed with holes in the walls, the appliances and light fixtures ripped out, and all stages in between.  The one thing that they have in common is that they will be sold "as is".  Sometimes the home may look okay at initial perusal but there are problems that you may not be able to see at first glance. 

This is a picture of a Charlottesville foreclosure that I sold to one of my buyer clients last year.  This home was in perfect condition and they were able to get a great deal.

Whatever the status of the Charlottesville foreclosure, one thing that you can be sure of is that whatever shape it is in is how the bank is selling it.  Don't expect the seller to make any repairs or to replace any of the missing fixtures.  Usually you will be allowed to have a home inspection but it will be for information only.  You may want to have your real estate agent write an offer that is contingent on a satisfactory inspection.  This means that although you realize that the seller will not make any repairs, if something comes up in the inspection that is unacceptable, you will be able to void the contract without penalty.  Sometimes a client brings a contractor with them when we initially look at a foreclosed home, instead of having an inspection later.  Then we were able to write an offer without a home inspection contingency.  Many of these homes are winterized and you will have to pay a plumber to dewinterize the home before the inspection and to rewinterize the house after your inspector is finished.  Occasionally I have been able to get the bank to agree to perform the termite, well and septic inspection and also to agree to mitigate up to $1,000. 

Of course it is important to remember when you are buying a Charlottesville foreclosure that the seller bank will look the most favorably on an offer that is cash, with a quick closing and no contingencies.  At the same time you need to be careful that you don't end up with a problem that you can't live with.

Copyright 2011 by Pam Dent, all rights reserved, "Buying A Charlottesville Foreclosure - What Does "As Is" Mean?"

Buying A Charlottesville Foreclosure - Who Is On Your A Team?

With all of the talk in the media about foreclosures, many people have gotten interested in possibly purchasing a bank owned property.  But what is important to consider before making an offer on a Charlottesville foreclosure?

• This is not the same as your traditional real estate transaction.  For this reason it is important to choose a real estate agent who has experience getting foreclosure buyers successfully to closing.  You agent will need the knowledge to guide you through all of the steps of the process.  There is the strategy necessary in constructing the offer, such as what are the banks looking for.  Then you may be in a multiple offer situation and have to submit highest and best.  If yours is the offer that the bank accepts to consider, you will have special bank addenda to fill out.  And that is before all of the steps to get the contract to closing.
• The second member of your team is your lender.  It is crucial to have a lender who is responsive and accessible.  When a foreclosure gets to a good price, offers come in quickly.  This might be on a weekend.  You will need a lender who answers his phone on a Saturday and Sunday and who can get you a preapproval letter quickly.  In addition the banks often require shorter loan approval and closing times than many lenders are used to working with.  Your lender will need to tell you realistically what his bank is able to do and then he will have to work hard to make sure that it happens within the deadlines.  There are often perdiem penalties if closing is delayed through any fault of the purchaser.
• The final member of your team is the attorney.  You will want to have real estate attorney who is also experienced with foreclosure transactions.  There are many things that will need to be carefully researched and it is also helpful when your attorney is used to working with the attorney's on the bank's side.  
• Depending on the property, you may need additional team members such as a home inspector or a builder.  Like everything else in a foreclosure purchase they will need to be able to be available within a short time period. 

If you bring your A Team, you will have a successful experience buying a Charlottesville Foreclosure.

Copyright 2011 by Pam Dent all rights reserved "Buying A Charlottesville Foreclosure - Who Is On Your A Team?"

ActiveRainPhotoBloggerContest - What Can Horse Racing Teach Us?

What can horse racing teach us?  I bet a lot of owners of Charlottesville horse farms could tell us the answer if they were to think about it.

 Many of us enjoy going to the races.  For some it may be just looking at the horses, those magnificient equine athletes.  Others thrill to the excitement of the race itself.  Add steeplechase fences and the thrill level goes up another notch.  There are the ingredients of danger, and speed added to the unpredictability of a 1200 pound animal and it is no wonder that so many people enjoy horse racing.  And finally there are people who like the competition of the sport; they like handicapping and picking the winners.  But horse racing teaching us about life? 

Well let me tell you a story...

Last week at the steeplechase races the horses were out on the track warming up and proceeding to the start for the timber race.    On the way to the start one of the horses spooked and the jockey went off.  The tenacious jockey hit the ground holding on to the reins.  He was able to hang on and prevent the horse from getting away.  Since the race had not started yet he was permitted to get a leg up from one of the starters and proceed on to the start.  You might say thats not a big deal.  But it is.  The focus has been broken for horse and rider.  The horse is obviously rattled and may not settle enough to run properly.  It is also the kind of situation that could leave a rider distrusting his horse and possibly riding more cautiously.  Both horse and rider need to refocus quickly and it will be the job off the jockey to give the horse the confidence to get back to business. 

 For many horse and rider teams the race would be lost already.  However for this pair it was not to be the case.  The jockey calmly rode his now fractious horse to the start and they got off cleanly.  The jockey spent the first time around the track settling his mount, keeping him out of trouble, while staying close enough to be in contention.  By the second time around the course the horse was jumping with more confidence and by the last fence was lying second to the favorite.  And then the horse racing gods came into play.  The favorite misjudged the jump, hit the top rail hard, and bobbled badly on landing, going to his knees.  This mistake presented the perfect opportunity for our pair to gallop past, and riding hard, win the race in an exciting finish.  Yes, luck did come into play, but in many ways we make our own luck and this jockey who just kept riding was in the position to take advantage of the luck when it presented.

What a wonderful illustration to remind all of us to pick ourselves up when we fall down, have the courage to keep running, maintain our focus, never give up, and we will be in position to come home a winner. 

If horses are your passion, and you want a place to live to pursue that passion a Charlottesville horse farm is the perfect choice.  Just like we have horses of many breeds and disciplines, we have Charlottesville farms in a variety of sizes and prices.
Come home to Virginia horse country!

Copyright 2011 by Pam Dent all rights reserved "ActiveRainPhotoBloggerContest - What Can Horse Racing Teach Us?"

Many homebuyers are looking for a deal and often the best deals may be in the purchase of a foreclosure or short sale, but do you have the patience to buy a distressed property?

According to the National Association of Realtors foreclosures are selling at, on average, a 22% discount and short sales at a 17% discount.  Sounds good?  The downside is that these short sales are anything but short and foreclosures can have title issues and condition problems which can delay the sale.  In both kinds of transactions you are at the mercy of the bank.  This is where the patience comes in.

In the KCM Blog they talk about something called Patience Equity:

"Does that mean that you shouldn't consider a distressed property? Not necessarily. Just understand that there is an additional cost to purchasing a foreclosure or a short sale: the cost of time. For some, the 17 or 22 percent discount is well worth the extra time they must spend on the transaction. We like to call that savings your ‘patience equity'. Patience equity will require you to be patient however. Realize going into the deal that there will be obstacles to overcome and make sure you give your real estate professional time to overcome these challenges. Again, patience equity will require your patience."

If you are under a time crunch or are not prepared to be patient while your real estate agent and attorney iron out the problems, then you may be better purchasing from a regular seller.  However, if you have enought patience equity to buy a foreclosure or buy a short sale, you may end up with a great deal where you are already on the way to building financial equity.

If you are buying a Charlottesville home, you might be surprised to find out that price and cost aren't the same thing.

Everyone knows that Charlottesville home prices have been falling.  This means that homes cost less.  Right?  Wrong.

Just three months ago homes did cost less, but that was before interest rates started rising.  Interest rates have risen considerably over that past three months.  As a result the price is the same, but the home actually costs more.  Instead of waiting for prices to fall further, buyers should be concerned about where costs are going.  The KCM blog offers an excellent analysis of this topic.  Delaying as interest rates rise may mean that you will not qualify for the home you want.

The rising cost of buying a home may be the best reason to not wait and buy your Charlottesville home now.

Buying a Charlottesville home. How To reduce homebuying stress.

Many homebuyers would say that they found the homebuying process very stressful.  In fact Realtor Mag reports many buyers find Landing Mortgage More Stressful Than Finding A Job. 

So how do you reduce the stress that can be associated with buying a home?  Perhaps taking up yoga or the latest meditation technique?  We all know that exercise can be a good stress reducer.  Although those are all good ideas for reducing stress in your life that is not what we are talking about.

To begin with surrounding yourself with a good team of professionals is the most important thing that you can do to make your purchase of a Charlottesville home proceed smoothly.  Find a real estate professional that you are comfortable with and that you trust and let them guide you through all of the parts of the real estate transaction.  One stress reducer is knowing what to expect.  Your Realtor can explain to you what is going to happen so that you will be prepared.  Your Realtor can also help you find a good mortgage professional.  Again the mortgage process is much less stressful if you know what to expect.  Your Realtor and your lender will work together to ensure that you understand every step of the process.  They will make sure  that you are purchasing a home that you can afford, with a loan product that works for your and your family. 

Other key team members are the home inspector who will examine the condition of your new home.  In addition a good real estate attorney or closing company can help look out for your interests.

Communication is key for reducing stress.  A great team will be comfortable working together, communicating with you and with each other throughout the transaction.  The unexpected may arise, but with a good team, problems can be addressed and solved resulting in reduced stress for you as you acheive your goal of buying a Charlottesville home.

I'm closing on my Charlottesville home on Friday, but when can I move in?

I have been asked this question or something similar by many clients.  Often the sellers have moved out several days before closing and the purchasers knowing that the home is empty see this as the perfect time to begin moving some of their belongings into the home.  Or they would like to get into the home to begin cleaning and perhaps even remodeling.

Even though the home may be vacant, you don't own the home until the title has been recorded.  Consequently it is not a good idea to schedule the moving van for the day of closing.  Unfortunately it is not unusual for something to come up and the deed to not be recorded until the day following closing or in the case of a Friday closing, not until Monday. (This is the reason that I recommend that you not schedule the closing for your Charlottesville home on a Friday) You will not receive the keys until recordation has taken place even though you have signed all of the documents. 

On rare occasions a purchaser will work out an agreement with the seller where they will be able to take possession before closing.  In such a case it is in the best interests of all parties to execute a legal agreement which is similar to a lease contract.  Rent is paid to the seller and it states what is to happen if for some reason the contract falls appart at the last minute and closing does not occur.  There are many issues that make it complicated for a purchaser to occupy the home before closing, such as who is responsible for liability and insurance.  It is usually best to avoid this situation.

The bottom line is you will have to wait until after closing and recordation to enjoy your new Charlottesville home.

Many of my clients who are buying a Charlottesville home for the first time email me and ask "What are my closing costs?"

For many purchasers closing costs is a catch all phrase that encompases a whole laundry list of items.  They know that it is something that they will have to pay at closing, but have no idea what it will include.  Often it may be more advantageous to ask the seller to pay all or a portion of the purchaser's closing costs rather than ask for a price reduction.  The seller's agreeing to pay closing costs may determine whether the buyer can even obtain financing.

The following items are included in Purchaser's Estimated Closing Costs:

• Credit report - $60
• Appraisal - $300 to $500
• Survey - $300 and up (sometimes optional)
• Homeowners Insurance
• Mortgage Title Insurance - $3.25/$1,000 of loan amount
• Owner title Insurance - $3.00 to $3.90/$1,000 of loan amount  (Discount if both Mortgage and Title Insurance is purchased)
• Attorney's Fee - $500+/- or Settlement Company $325+
• Loan Origination - 1% of loan
• Discount points - 0% to 4% of loan amount, if applicable
• Tax escrow - 2-3 months
• Insurance escrow - 2-3 months
• PMI escrow
• pre-paid interest - per diem to the end of the month
• Recording Deed -
  a. State & Local - $3.33/$1,000 of sales price
  b. Recording fee - $39
• Recording Deed of Trust -
  a. State & Local - $3.33/$1,000 of loan amount
  b. Recording fee - $46 for over 10 pages
• Document prep/additional lender fees
• Other - such as payment to seller for propane remaining in the tank

Your lender is required to provide you with a Good Faith Estimate within 3 days of making loan application which outlines your settlement fees.  However, it is good to have an idea of how much your closing costs could be before presenting an offer to buy a Charlottesville home.  Your real estate agent and your lender will be able to help you with this.