Working with real estate assessments in Albemarle County
Date Archives December 2007
The commercial real estate landscape changes again in Cville
With the arrival of a local branch of Grubb and Ellis. We have CB Richard Ellis as well – seems the locals are finding strength in affiliating with the national/international players. Same people, new tools and infrastructure.
19,000 square feet
And here I thought that home sizes were going down. At least they’ll be providing job for construction folks.
Dropping prices, new construction and the inherent risk in a changing market
What do you do?A few things come to mind that I am wondering whether builders will consider:1) Put a contingency in the offer that the offer is contingent on an appraisal two weeks prior to closing of at least the contract price.2) A contingency that should the developer drop the price on other homes between contract and closing, the purchaser’s contract price will be reduced the same amount.3) From the Washington Post story: “The buyer should ensure that the deposit is put into an interest-earning escrow account, perhaps with a settlement company, and is not being used by the developer as working capital, Antonoplos said…. That will make it easier to recoup the money if the project hits a snag.”4) Put down a smaller earnest money deposit.5) Make sure that you have done your due diligence and that you love your soon-to-be new home.One aspect of this new environment that I have been wrestling with is how to ensure the soundness of developers…. How does one effectively represent buyers in the face of an unknown – that unknown being the fiscal ability of the developer/builder?Calculated Risk covered this story as well as Phil’s excellent analysis of a related story (h/t: Dustin)From Inman (behind a subscriber wall) in response to a question of what to do should the price go down on other, competing homes between your contract and closing:One common thread that runs through real estate law is that real estate values are unpredictable and that no one can guarantee escalation of prices…. Similarly, if values go down, why should the developer be required to pay you any money?The builders’ and the buyers’ choices may be reduced to renegotiate or lose the deal – both sides lose if they don’t negotiate.
Growth, wine and 2 billion dollars
ASAP’s take on population growth in Albemarle – how many people is “too many”?You want wine? We’ve got wine in Virginia. (pic courtesy of)2 Billions dollars to increase UVA’s research stature?A major report by the Washington Advisory Group consulting firm found that UVa will have to spend an estimated $1 billion over the next five to seven years to hire rising star faculty researchers in an effort to improve the overall quality of its research.Might any of these star researchers want to buy houses in the Charlottesville area? 🙂 The University’s impact on the Charlottesville region – economic, social, cultural and psychological – cannot be underestimated.A very good (and unusual) use of Realtors’ lobbying efforts.
Monday’s the day for builder incentives
Two emails from builders arrived within minutes of each other, both with some nifty fine print.The Belvedere model home at Holly Hill is now available for investment purchase!Guaranteed 1 year leaseback at $2640/month*Turn into $169 positive monthly cash flow with 20% down ($87,998)and a fixed 30 year mortgage of $351,992 at 6.25% (total price $439,990).*contingent on the buyer using their lender…. What a great way to start the New Year and it’s available at any Hauser Homes community.* “buyer may finance via any other qualified lender but will not be eligible for this offer. “My favorite part of this particular fine print:Buyers remain responsible for all loan payments including property taxes, insurance, and homeowners association fees, if any.Just so there’s no confusion.These are some of the incentives that were being offered in August 2007. One local listing is offering a 1996 Miata as an incentive – what might the lenders think when they see that?
New version of Askimet
For those who blog and use Askimet, there’s a new version out today. Maybe I’ll be able to stop moderating comments, a step (and chore) necessitated by the new spam onslaught.