A new required data entry field came into effect in the Charlottesville MLS earlier this month addressing “limited service” companies:This new field applies to those properties that are listed by an MLS member, for a flat fee or commission, for a seller who is not engaging the full services of a REALTOR®.Listing brokers participating in a limited-service model need to be certain they comply with all statutory requirements of a listing broker for their state. Listing brokers offering limited services must also ensure they adequately disclose to sellers what services they are and are not providing to their client…. That is the service.There is so much more to real estate representation than driving around and taking pictures – negotiating, listening, counseling, analyzing, guiding, drawing opinions, thoughts and opinions out of clients – to itemize every step in a representational relationship would be nearly impossible. Every transaction is different and the “might happens” are innumerableOne more thing – so long as Realtors are dependent on whatever the seller is willing to pay the Buyer-Broker, many consumers will embrace the mistrust that is bred by the commingling of commissions.
Date Archives December 2007
Friday links 12-14-2007
What’s so wrong with gravel roads? A great post about the value of rural gravel roads – and the values in keeping them that way.Right now I hate paying taxes because I feel like I’m giving money to a known crack addict. However much you give, its not enough.
What’s a builder to do?
The following is from a homeowner in Albemarle County -“I recently learned that after being in my home for only 3 years, that I have a major leak in the water line running from the street meter to my house…. I, like many of my neighbors, will never purchase another home from this company.A point to note is that the contractor who did all of this company’s plumbing in the neighborhood, is no longer in business.My home owner’s insurance is picking up the biggest chunk of the cost…. (ed note: bolding mine)My thoughts – I will be surprised if this homeowner receives a response from the builder.- My understanding is that this will be forever on the homeowner’s CLUE report.- A builder should not be expected to come back and service all defects – that’s why homeowners’ insurance exists.- What price integrity? At what point should the company simply cut its losses with the customer, and potentially the entire development?- What is the most grievous error – the fault of the water line, or the fact that the company strung the homeowner along?- Should the builder be concerned about this affecting his reputation?- In speaking with the homeowner, the money was (and is) an issue, but the fact that he wouldn’t stand behind his work was a greater one.I’ll offer my thoughts in the comments a bit later.
It’s a great time to buy a house
Unless, of course, you need to sell your existing house first.The Charlottesville region’s dependence on those relocating from New Jersey, New York, Northern Virginia, Boston, California and other areas of formerly-skyrocketing-appreciating-houses is over.
Fragmented search with Zillow and Trulia
Searching for homes in the Charlottesville (or any area) is easier than ever – and more confusing and fragmented…. The local MLS, despite its clunky interface and consumer tools, offers the most comprehensive search available.The tools Trulia and Zillow provide and the interfaces they offer consumers (and Realtors) should be forcing Realtor.com and local MLS’ to innovate and create better user experiences. I’m curious to learn what Move.com is up to.From yesterday’s WSJ:For starters, users can enter a city, town or ZIP Code and see a listing of every home for sale, sortable by price, address, number of bedrooms or bathrooms, broker or type of home (single-family or multi-family)…. (bolding mine)For the 22901 zip code, one of the primary zip codes for Charlottesville:Trulia – 216Zillow – 77CAARMLS – 290Realtor.com – 290 + 6 multi-family + 2 Farms + 72 land listingsFor Crozet (22932), a town just west of Charlottesville:Trulia – 137Zillow – 148CAARMLS – 113Realtor.com – 113 + 55 land listingsThis is the perfect opportunity to refer to a post I wrote in January – Where do you Search for homes In Charlottesville (hint: it’s more than the MLS).This post was shamelessly stolen from Jay and localized for the Charlottesville area.
Central Virginia regional real estate market update
With that preface, welcome to the market report for the Charlottesville area for November 2007.This month I am including data from 2004, 2005, 2006 and 2007.Conclusions — Read beyond the headlines.- There is no “national” or perhaps even “regional” real estate market…. For example – the neighborhood that is stable, in a great location and is desirable is going to be in better shape than the neighborhood that shares a border with a new construction development that has seen its asking prices slashed by twenty or thirty percent.- Things are selling, and now is regarded by many to be an excellent time to buy – so long as you are looking to buy for an appropriate timeframe…. People still need places to live.- Due diligence and statistical analysis on every real estate purchase and sale should be performed prior to every transaction.- The data, while skewed by inaccuracies here and there, offers the best trending information available.Highlights — For the entire Charlottesville MSA, the absorption rate for our inventory is currently more than four times that of November 2004 and five months more than November of 2006.- Days on market for the entire area is slightly higher than this time last year.- Average sales price is higher than the average sales price in 2005, but lower than 2006.- Median Sales price numbers are interesting and all over the board.Caveats — It is very difficult to pull new construction data out of the MLS statistics, and even then, the data is often grossly inaccurate for myriad reasons, so I go with what is there.- The data is only as good as the people doing the input.- Buyer and Seller psychology are very difficult, if not impossible, to quantify.The data speaks for itself. (Click images for larger versions)Inventory levels for Charlottesville/Albemarle 2004-2007The year end report should be equally fascinating, and I will revisit my predictions from earlier this year and make new ones for next year.How low will the Realtor membership decline?*Including Albemarle, Augusta, Charlottesville, Fluvanna, Greene, Louisa, Nelson, Waynesboro below the fold.*All market statistics that I have written can be found here.2007 information for the entire region.2006 information for the entire region.There is more to the above data that I am digging into for a later story.Waynesboro and Augusta are included because they are becoming more and more a part of our market, but the data remains quite incomplete.
Realtors spend too much time discrediting Lawrence Yun
But do they have to do it in such as way that the reaction is one of laughter, smirks and a shakes of the head?The question is – does the NAR’s economist have either credibility or relevance on which to trade?*note that this is not a personal attack on the man, but the office’s “predictions” and track record.Update 11 December 2007: A point of clarification based on an off-line conversation…. The NAR has, and should recognize, their potential to build credibility for themselves and their members by being the trusted source of information, rather than being perceived as saying whatever it takes to increase transactions.The NAR is not a bad organization – The NAR lobbies extremely well on behalf of homeowners and Realtors – witness HR 3648 and the NAR’s support of this bill.With many families affected by resetting interest rates on subprime mortgages and the ongoing rise in foreclosures, NAR has been working to help more homeowners and their families keep their homes…. “Realtors® don’t just sell homes; we build communities, and NAR is committed to efforts that will help make the nightmare of losing a home less burdensome for families.â€The current tax code requires a lender who forgives debt to provide a Form 1099 to the IRS stating the amount the borrower has been forgiven…. If the property is sold at foreclosure or is sold for less than the amount borrowed, that difference is considered income and is subject to the tax.Update #2 11 December 2007:I’m not the only one who thinks that NAR’s credibility is at stake/gone:SlateAgentGeniusAmong the best comments I’ve read:I would think realtors would want to be informed as well.