Melissa Savenko's Richmond Real Estate Review

Foreclosures Up in Richmond, Virginia - This Is Going to Get Even Bigger

The Richmond Times-Dispatch published a short article today about Richmond area foreclosures, which are up 28% year-over-year.  The foreclosure crisis has already been bad, but I'm going to predict it's about to get even worse.  Banks have so many bank-owned properties already, they haven't been foreclosing as quickly as they would in a "normal" market.  These households that are seriously delinquent on their mortgages but are not yet in the foreclosure pipeline are being called the "shadow market."

Once we're done with the first time buyers, when the deadline to be under contract to qualify expires TOMORROW - thank Goodness! - this is going to be the next specialty market - foreclosures and short sales. So what to do to get prepared for that market?  I'm trying to get educated.  I'm taking a class to become a Certified Distressed Property Expert ("CDPE").

Usually, I think real estate designations are a bunch of you-know-what, designed to extract just more money from us agents, but I am actually finding the CDPE class really informative and helpful.  So soon I'll have some more alphabet soup designations to stick behind my name.  Although I am not ordering more business cards just to add"CDPE." Gotta use up my 500+ remaining cards first. 

More on the difference in short sales and foreclosures to come.  Meanwhile, just a few more days in the first time buyer sprint to the finish.  I'm DEFINITELY taking a break May 1!

NO, The Tax Credit Will NOT Be Extended But Here are Two Great Properties for 1st Time Buyers!

I can't believe people actually have been thinking it might be.  A client sent an e-mail poll around the other day where 93% of respondents "were counting on it."  Oops.  Even the National Asociation of Realtors, the membership of which clearly benefits if there is any extension, isn't pushing for an extension.

Here's an interesting article on some folks who have bought because of the tax credit.  And if you are a total procrastinator and decide to get off that fence, you can theoretically still make it, if you write a contract in the next few days.  I've got a couple great first time home buyer properties still to sell, and they will both be open TODAY, Sunday, April 25, 2010, from 1:00 to 4:00 p.m.

806 S. Meadow is an amazing value at only $190,900, with a new cabinets/porcelain tile/Zodiac quartz/stainless steel appliance kitchen (August 2008) and BRAND NEW - as in, like, April 2010 - central air and heat pump.  Add the full basement and the garage/workshop, and it's a winner.

Windsor Court Condominiums has it all - location, low condo fee ($194 per month), HUGE tac abatement ($98,000 per unit!) and PARKING!  Not many units left, with prices from $199,900-$234,900.

So, stop by and check out these properties. Or call me at 804-986-3993.  Enjoy the rest of your weekend.

Hey First Time Buyers - 806 S. Meadow - Great Deal, Great Value, Renovated Kitchen, BRAND NEW Central Air

This is one of those real estate stories that is just incredibly frustrating.  806 S. Meadow is a GREAT house.  It's a stucco and slate Foursquare, built like a brick battleship, with over 1,600 finished square feet and a full basement for storage or expansion opportunity.  It's located in the Maymont/Byrd Park area.  Here are the highlights:

• Four bedrooms
• Hardwood floors
• FULLY RENOVATED kitchen with Zodiac quartz counters, new cabinets, porcelain tile  floor, a tumbled slate backsplash and stainless steel appliances (Summer 2008)
• Updated bathroom (2006)
• Full basement, over 800 square feet
• Replacement windows throughout
• Large rear yard
• Original stucco garage/workshop
• Full front porch, completely replaced in April 2009
• All appliances convey
• Located within walking distance of Byrd Park, Maymont Park and the James River Trail System, including Buttermilk Trail

And, on top of all that, the sellers just installed BRAND NEW CENTRAL AIR AND HEAT to the tune of almost $20,000. 

So, why is it still on the market?  Well, my Sellers got completely scr*wed over by buyers last Spring/Summer, not to put to fine a point on it.  The property went on the market at $225,000.  We got an offer very shortly into that listing.  The house went under contract, we went through inspection, appraisal, all the various contingencies and hoops and then.....the buyers walked away the day before closing.  Their child, who was going to be attending VCU, got into another school in another city, and they no longer needed somewhere in Richmond for him to live.  Oops!  So much for the contract.  They refused to close.

And I have to say, just about every thing that could go wrong since then has.  We had to replace the oil tank.  Then the boiler died.  And now the (new) oil tank and hot water heater and boiler have been removed and replaced with a brand new central air/heat pump system. 

This house, which was already a great deal, is now an amazing value for some savvy buyer.  It's listed at $190,900.  I am not aware of a better value in Area 10, with the size, level of renovation, location, garage, yard, and other amenities.  So call me, I'll be happy to show it to you - 804-986-3993.  And I really hope someone buys it SOON.  My sellers are super-nice folks, and they don't deserve all the stress and headache that they've had to go through, through absolutely no fault of their own.  So let's make it a win-win - some lucky first time buyer gets a great deal, and my sellers get to sell the house and move on. 

Meanwhile, I'll go back to sticking pins in my voodoo dolls of those first buyers....

Magnolia Green Community Back on Track with Local Development Company as Project Manager

Interesting.  According to the Richmond Times-Dispatch, Magnolia Green, a GINORMOUS planned community in Chesterfield County, is back in active development with Atack Development as "the local contact in charge of construction, marketing, homeowner communications and the liaison with the county."  When I say ginormous, I mean Woodlake size - 3,500+ homes are planned, with retail and commercial development as well. 

What makes this story interesting is the fact that Magnolia Green is owned by THE LENDER that foreclosed on the property last year.  So now it appears that iStar Financial Inc. is in the business of owning and even developing real estate.  Usually lenders don't like to own property, much less actively develop it. 

We'll see how this goes.  Will we see more lenders taking property back and then trying to develop it themselves?  Maybe this is the lending industry's version of "too big to fail."  Only time will tell.

In Richmond, Virginia, Are Almost 72% of the Sales First Time Home Buyers?

Ouch.  I just did my standard quick review of the Central Virginia Regional Multiple Listing Service ("CVRMLS"), the real estate database for the Central Virginia area.  I checked out closed sales going back two days.  A quick review shows a full 71.7% of closed sales are are for $250,000 OR LESS.

Or, looking at it another way, only 28.3% of closed sales were for more than $250,000.  Only three out of 106 closed sales were for more than $400,000, and two of those three were under $450,000.  So less than one percent (1%) of sales closed in the last two days were for over $450,000.

Pending sales show a slightly better trend.  As of 3:30 p.m. today, there are 122 properties that have gone under contract in the last two days.  Thirty eight (38) of the 122 pended sales, or 31%, are for over $250,000.  And 15 of those 38, or 39.5%, are for more than $400,000.

Is this the slow "trickle UP" effect of the first time home buyer tax credit?  I think so.  You're seeing folks who sold a $250,000 house moving up to the $400,000+ house.  I think these "move-up buyers" have been cautious, and waited to make sure the closing on THEIR house was going to happen.  As a result, we're seeing increased sales velocity in the middle price ranges.

But the market is still being driven predominantly by the first time buyers.  I want to be optimistic, but if we see even half of the under $250,000 buyers go away when the credit expires, that is a LOT fewer sales.

But what can you do?  Gotta hope for the best, plan for the worst.  Sell, sell, sell while you can!  Best of luck everybody! 

Hey Doctors and Lawyers - 100% Financing Still Available!

Whoo-eee!  I haven't written in a while because it has been INSANELY busy.  Like crazy, "what day is it?" five-hours-of-sleep-a-night busy.  I am not complaining, trust me.  But this pace makes me feel like I'm back in the corporate law firm gig.

But enough aboout me.  I wanted to post a quick note to remind doctors - including new residents - that there are still 100% financing products available for doctors, pharmacists, and new lawyers.  in fact we call them, ever so creatively, "doctor loans."  Of course there are caveats, but this is not a joke or a "too good to true" deal.  Not many lending organizations do these deals any more, but there are still a few local and regional outfits who can and will.

So, if you are a new resident, or a doctor coming out of a residency, or a Pharm. D., or a baby lawyer going to work for a big corporate law firm, give me a call and I can hook you up with some lenders who might be able to help you buy a house with next to zero dollars down.  Yes, you can qualify even with medical or law school debt.  It might sound too good to be true, but it isn't.  Really.

But if you are looking to qualify for 100% financing AND the first time buyer tax credit, you need to get on the stick NOW.  Only 28 days left, people, before that gift from the government goes away.