The Office on Fire!

April 30th, 2010 brought the end of the window to buy a home and receive the home buyer tax credit for most of us (certain military members have an extra year to buy.)  There are, however, compelling reasons to buy a home despite the expiration of the credit.

1. Affordability is at an unprecedented high. Long & Foster has prepared a video  on the Housing Affordability Index which explains why the current conditions are the best since 1971.

As you can see in the video, low mortgage rates and moderate housing prices have combined to make this one of the best times to buy in recent history.

2. According to a survey of 224 renters on ApartmentRatings.com, rents in the Roanoke, Virginia area have risen by more than 30% over the past 2 years. Yet housing prices have dropped. Mortgage rates are excellent. This could be the “perfect storm” for buying rental properties!

3. Move-up buyers can make out well. In a hypothetical example, lets say that house values have dropped by 8% (this varies by area, hence the hypothetical.) A $180,000 home sells for $165,5600, due to the 8% drop in values. Those sellers move up to a $220,000 home, but pay $202,400 due to the 8% market drop. The sellers lost $14,400 on the home they sold, but saved $17,600 on the one they purchased. In effect, they came out $3200 ahead! Of course, results vary by situation,  but this market can be a great time to move up.

4. You’re not buying a tax break; you’re buying a place to hang your hat. A tax credit can’t give you shelter from the storm, memories of holiday dinners, recollections of laughter and love, or the joy of coming back each evening, to that very special place called home.

L&F Roanoke North voted Best in Botetourt

Long & Foster Roanoke North has been voted the best Real Estate Company in Botetourt County. Thank you to everyone who voted for us! Our office name says “North” but we cover ALL of Roanoke, Vinton, Salem, plus Botetourt, Bedford, Franklin, Craig, Montgomery, and Floyd counties. We also have agents who cover Lynchburg and Rockbridge County. Need real estate help? Call the Best! (540) 966-5700.

According to the Wiki, a geo-fence is a virtual perimeter around geographic area so that when the geo-fencing device enters or exits the area a notification is generated. What does that mean for real estate? As a buyer, you would go to a website, and save a search for the home you’d like to find. As you drive around town, you might get a text message on your cell phone that you are 2 blocks from a home that fits your criteria, if that home has a “geo-fence” around it. The “fence” would be added using mapping software by the real estate agent. So, as you travel, homes would find YOU!

The National Association of Realtors has a short video that explains the new rules, which provide for incentives for both sellers and servicers.

The Center for Neighborhood Technology has released its Housing and Transportation Affordability Index, which factors in the cost of housing plus  transportation when calculating the cost of living in a particular area. The Roanoke Valley did very well, with a score of 44%. This means the cost of housing plus transportation averages no more than 44% of income. (45% and under is considered affordable.)

NAR President Vicki Golder, circulated a memo to association leaders yesterday indicating that the home buyer tax credit is unlikely to be extended. She added that the NAR would be focusing in coming months on improving the availability of financing. Remind prospective buyers of the upcoming April 30th deadline to be in an accepted contract!

On April 22, 2010, the EPA’s new lead paint rules will take effect. One important change is that contractors doing repairs or renovations will have to be trained and certified. The NAR has prepared a guide to the new rules, including an FAQ for brokers and agents. It can be viewed here. Need to find a lead-safe certified renovator in your area? Search here: http://cfpub.epa.gov/flpp/searchrrp_firm.htm Realtors in the Roanoke area have an opportunity to learn about the new rules from VAR Counsel Lem Marshall on Weds. April 28th, from 9AM-noon at the Holiday Inn Tanglewood. Both CE and PL credits will be available for this class. Contact the RVAR for more information at 540-772-0526.

Roanoke area contractors wishing to be certified have an opportunity to complete the proper classes, thanks to the Roanoke Regional Home Builders Association. The RRHBA Education Committee is conducting 8 hour classes that train renovation, repair and painting contractors how to work safely in housing  with lead based paint and comply with EPA’s Renovation, Repair and Painting (RRP) guidelines. Having this certification is a requirement by April 22, 2010. Classes will be at the RRHBA office 1626 Apperson Drive, Salem, Va. Special pricing for members is $205.00, non-members pricing is $235.00. The February and March classes have sold out but they will schedule more as the need arises. For more information, contact Education Committee Chair Barbara Michelsen at barbaramichelsen@earthlink.net

Virginia homeowners will be able to receive rebates for upgrading heating and air conditioning, home insulation and windows to more energy efficient models. The program will begin sometime in April (no exact date yet) and will *not* be retroactive for purchases made before it starts. More information here: http://www.dmme.virginia.gov/DE/ARRA-Public/ARRA.shtml

Want to calculate the ideal route when showing properties? Save time and gas using Ideal Route, sponsored by the VAR. Just enter property addresses and hit “calculate fastest roundtrip!”

USDA expects to exhaust their supply of money to fund loans sometime in April. The following are steps you can take to ease this situation:

• Agents should not write contracts with any new USDA loans at the moment
• If you’re a listing agent, speak to your seller immediately and inform them
• If you have a buyer already doing a USDA loan, prepare them for the possibility to seek financing alternatives. It’s likely they’ll need a down payment.
• Selling agents, talk to loan originators ASAP to determine loan status
• As always, consult your Broker/Manager