Appraisal Hotline Coming – Good or Bad?

in General Real Estate on

What could possibly go wrong by injecting yet another governmental agency (YAGAâ„¢) into an already inefficient market?

A federal monitor expects to open a complaint hotline for real estate appraisals by the end of the year.
The Dodd-Frank Act requires the Appraisal Subcommittee, a federal monitor of state bodies responsible for governing valuations, to build a hotline for homebuyers, real estate agents, lenders and others in the industry to raise complaints.

Challenges with appraisals right now aren’t a matter of low or high, the challenges are with accurate appraisals performed by those with geographical and market competency, as well as appraisers being unable to get sufficient data due to unhelpful sellers/MLS and a dearth of valid comps.

While appraisals during the bubble often pushed home prices to artificial limits, many today charge the valuations are coming in too low, forcing purchases to be canceled and shutting out some borrowers from refinancing or modification.

No question – the market is challenging. Adding YAGA isn’t going to help matters. That said, there’s nothing I can do about this other than be informed and aware and work by best within the system we all have to live by.

Whether I am representing a buyer or a seller, all I want is a good, honest appraisal done in a timely fashion by an appraiser who knows this market, has MLS access and a lockbox key. Is that too much to ask? (answer: yes, too often)

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Charlottesville’s Derecho

in Albemarle Charlottesville on

It’s been an interesting few days in Charlottesville, Albemarle and the surrounding area. We experienced (and learned what it was/was called) a derecho.

Derechos come from a band of thunderstorms that are bow- or spearhead-shaped on radar and, thus, are also called a bow echo or spearhead radar echo. The size of the bow may vary, and the storms associated with the bow may die and redevelop. Winds in a derecho can be enhanced by downburst clusters embedded inside the storm. These straight-line winds can exceed 100 mi/h (160 km/h) (in some cases, sustained wind) in these clusters and straight-line wind gusts of up to 200 mi/h (320 km/h) are possible in the most extreme cases.[citation needed] Tornadoes sometimes form within derecho events, although such events are often difficult to confirm due to the additional damage caused by straight-line winds in the immediate area.

– Two people died on Friday night; being without power for a few days pales in comparison to such tragedy.

– People have been friendly, helpful and kind. The offers I have received offering assistance or help from friends near and not so near has been a bit life/humanity reaffirming.

– We learned that Twitter is a far, far better than any other medium for conveying information in a timely fashion.

– This is my curated list of Charlottesville media on Twitter. Edits: additions/subtractions are welcomed.

– People want and need information, and they want and need community as well. The time I’ve invested and spent building the community around RealCrozetVA has proven to be a bit useful. It seems a few people actually follow news there, and it’s somewhat gratifying to know that the site/community has been somewhat beneficial to the Crozet community. I couldn’t have built and implemented this overnight; it’s taken years to build something useful.

But … from a comment on Facebook:

… but this storm has made me realize how much I LOVE Crozet. During my very long drive to DE, I went through many areas hit by the storm (not nearly as hard hit as us, in my opinion) and the words rude, impatient and annoying come to mind regarding the people we encountered- nothing like Crozet! …

Charlottesville or Albemarle or Crozet – times like these, as frustrating as they may be, make me realize how lucky we are to live here.

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Primer for 1st Half 2012 Real Estate Market Update

in Market statistics on
30-year fixed-rate mortgage - Wolfram|Alpha

I’m going to be running numbers next week – give some time for realtors to enter the closings in the Charlottesville MLS and for the delayed (there are so many*) closings to finally close.

This is just a primer for what is likely to be a long and comprehensive post next week.

Contracts written 5/1/11 – 6/28/11:

Single Family Homes in Charlottesville and Albemarle : 213

Attached homes in Charlottesville and Albemarle: 70

Condos in Charlottesville and Albemarle: 51

Contracts written 5/1/12 – 6/28/12:

Single Family Homes in Charlottesville and Albemarle : 255 (up 16%)

Attached homes in Charlottesville and Albemarle: 70

Condos in Charlottesville and Albemarle: 32 (down 37%)

Looking at the above data, a quick conclusion could be reached that more buyers are shifting towards purchasing single family homes as home prices have dropped. Next week, I’ll separate the City from the County, product mixes, and the rest of the Charlottesville MSA.

These numbers are likely representative, but not an entirely accurate picture of the Charlottesville real estate market because most closings tend to happen at the end of the month … come back next week.

Closed sales 5/1/11 – 6/28/11:

Single Family Homes in Charlottesville and Albemarle : 230

Attached homes in Charlottesville and Albemarle: 74

Condos in Charlottesville and Albemarle: 41

Closed sales 5/1/12 – 6/28/12:

Single Family Homes in Charlottesville and Albemarle : 229

Attached homes in Charlottesville and Albemarle: 60

Condos in Charlottesville and Albemarle: 36


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When Do Homes Close in Charlottesville?

in Albemarle Charlottesville Market statistics Reader Questions Stupid Real Estate Questions - AKA: What are the questions you think you should know but have never asked? on

I’ve always known/believed that homes in Charlottesville (and more real estate markets) close at the end of the month … But I’ve never looked at the numbers until now. Because I had to look at each day individually as there’s no automatic report, I chose June 2011 as a representative month. Why do homes close at the end of the month? Simply put, a buyer…

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Dense Neighborhoods Are Good for Single Family House Values

in General Real Estate Transportation on

Yet another study demonstrates that dense neighborhoods – close to neighbors and close to stuff (coffee, parks, grocery, library, schools – you know, stuff) is valuable.

They learned that pedestrian aids, such as sidewalks and shorter street blocks, as well as a mix of retail, commercial and residential properties significantly contributed to increases in multifamily rental property values.

The researchers found that not only did the value of single-family residential properties increase with density of surrounding development, but that the quality of neighborhoods, as defined by access to other land uses, including parks, increased with density as well.

In December 2010, a similar story was published, and I wrote about it then – Walkability = Happiness – And why Does this Matter to Charlottesville Real Estate?

The 2010 study noted:

A walkable community provides residents with easy access to post offices, town parks and playgrounds, coffee shops, restaurants, barbershops and club meeting venues. The ability to walk to these important locations in one’s home neighborhood has been linked to a higher quality of life.

Social capital, a measure of an individual’s or group’s networks, personal connections, and community involvement, brings benefits such as reduced isolation, career connections, and neighborhood safety. What Rogers and her team’s work suggests is that it is these benefits — facilitated by living in a walkable community — that enhance an individual’s quality of life.

The answer remains the same – home buyers, renters, people – want to be close to stuff.

Warning: slight tangent follows …

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Dominion Power’s Water Line Replacement Program – What is It?

in Albemarle Charlottesville on

This came to my email inbox last week from a client/homeowner in the City of Charlottesville:

About 2 weeks ago, our little cul-de-sac began getting letters from Dominion (Power) regarding the water line running from our houses to the street. The gist goes something like this: “beneath your yard could be a $4,000 problem waiting to happen” but, “we” could take care of that for you for $3.99/month. Essentially they’re declaring that any water line failure from our house to the street is our problem (may be the case) but they (the power company) can fix it all for ~$4.00 a month. Piece of mind – enroll online. “you can’t afford to be without the Water Line Replacement Program”

So I have a couple of questions : are you familiar with this? if so, why is Dominion involved and not the city? Has there been an increase in these incidents recently to prompt such a scare campaign? $4000 seems a bit high considering where I am and the distance from house to road – what of that? What of home values and this water line replacement fad?

Turns out Dominion Power does have a Water Line Replacement Program.

Our Sewer Line Repair Program provides financial protection for the underground sewer line that runs from the foundation of your home to the main sewer line or septic tank. If you experience a clog or find a sinkhole over your sewer line caused by tree roots, collapsed pipe, heavy usage or normal wear and tear, Dominion Products and Services, Inc. will take the necessary steps to unclog a covered condition.*

Quick information from me

1) Yes, the line from the house to the street is your responsibility.
2) Yes, it does usually cost a couple thousand dollars to fix – from my experience (I’m not a plumber) $2,000 – $4,000 seems a reasonable estimate.
3) You’ll probably know that you have a leak when your ~$50/month water bill skyrockets to several hundred or a couple thousand dollars.
4) A lot of plumbing in the City of Charlottesville is old – terra cotta, orangeburg, and galvanized pipes – and these do deteriorate and go bad.
4b) Roots are bad. They damage plumbing.
5) I’d be inclined to take that $4/month and stash it away. (however, if this program works as advertised, I might be inclined to not spend the ~$300 for the inspection, and hedge my bets)
6) Other than, because they have the equipment and know-how and want to make money, I can’t think of a reason why Dominion would be offering this program.  I’m less cynical now. 🙂

The Dominion sewer line program seems a bit like cell phone insurance, but you’re probably much more likely to make a claim for a busted iPhone. The Charlottesville (and American) infrastructure is old. And falling apart. If you’re in the City of Charlottesville, the chances of your water line being old are pretty darn good.

Additionally, I have recommended (based on experienced horror stories) that buyers have plumbers scope these lines as part of the inspection process – it’s not a bad idea. Trust me. (Update December 2016 – I’m recommending these consistently for homes in the City of Charlottesville, particularly those built before the mid-1980’s)

So – if you’re thinking about putting your home on the market, be aware that this is an issue that might come up. If you’re a homeowner, pay attention to your water bill and build your emergency fund. If you’re a renter, don’t worry about it.

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