Will this be the future of how people will search for homes? I rarely share “industry-type” stories here, but this post speaks to how I anticipate my clients will be searching for homes in the next one, three, five years. … My goal as a Realtor is to maintain my edge, my understanding of the market and my value proposition for my clients through representation. And where does the Google fit into all of this?
FHA Increases – Buying a Home Is Now More Expensive
Effective for FHA loans for which the case number is assigned on or after October 4, 2010, FHA upfront and annual MIP will change as follows: – Upfront MIP – 1.00% on ALL mortgage terms (from 2.25%)
… – Annual MIP – 0.85% for LTVs less than or equal to 95% and terms of more than 15yrs (from .50%) * No Change in Annual MIP for <=15yr Terms (No Annual MI) In general, monthly payments are going to INCREASE due to the higher annual MI payment. ** LTV = Loan to Value (the above was sent along by Jason Crigler with Crown Mortgage ) Keep in mind that the FHA loan limits for the Charlottesville MSA are: Single Family/Attached – $437,000 Two family – $559,450 Three Family – $676,200 Four Family – $840,400 For an example of what these increases mean you homebuyers in Charlottesville, I’m going to borrow Rhonda Porter’s math : Using an interest rate of 4.25% and a based loan amount of $400,000; it looks like this: FHA Case Number BEFORE September 7 October 10, 2010:
… $400,000 plus $4,000 = $404,000 amortized for 30 years at 4.25% = principal and interest of $1,987.44 plus the annual mortgage insurance of $300 = $2,287.44.
Reviewed by Lender411
The folks at Lender411 were kind of enough to review RealCentralVA.com, and I think they pretty much nailed what I’m trying to accomplish. 🙂 What sets Jim’s blog apart from others is his ability to graphically and numerically analyze economic trends. Many of his posts include charts and financial data, and he makes it a point, as often as possible, to include visual representations of…
Friday Chart – Is this the New Normal for the Charlottesville Real Estate Market?
Looking at the number of transactions so far this year* in the Charlottesville MSA – Charlottesville, Albemarle, Fluvanna, Greene, Nelson – for all kinds of property – condo, attached, single family, farms … in this dataset there are going to be outliers and anomalies, but with a set this large, we’re really looking for trending analysis. … Maybe we are witnessing the “new normal” for the Charlottesville real estate market, and it’s something that we’re just going to have to get used to.
…While dramatic increases in productivity could theoretically take up the slack, that may be too much to ask of a generation whose education, for the first time in American history, ranked in the bottom third of developed nations. … “The trend is most visible,†they write, “in the transition from a G-7 to a Group of 20 model of international decision making which includes influential and deep-pocketed developing countries like Brazil, China, India, Saudi Arabia and the United Arab Emirates.
UVA’s South Lawn Project
Dave McNair does a great job describing UVA’s South Lawn project . Outstanding photos, too.
Bike Paths Increase Property Values?
Proximity to transit may increase property values . (From 2005 ) Walkability increases property values and livability . And now, studies have shown that real estate property values increase with proximity to bicycle paths. People enjoy living close to bike paths and are willing to pay more for an otherwise comparable house to be closer to one . (h/t BHG ) In short, proximity to functional, viable, affordable, multi-modal infrastructure increases property values.
Showed Houses in Charlottesville Last Week -or- Why AVMs Suck
Zillow hasn’t been in the three townhomes in another neighborhood in Charlottesville , one of which needs to be gutted, one with a moist basement and mold coming on a piece of ceiling hanging from the bathroom and another one that absolutely needs to be taken to the studs.
…The product of an automated valuation technology analysis, public record data, and computer decision logic combined to provide a logical calculated estimate of a probable selling price of a residential property. … An AVM typically includes: â–ª An indicative market value for many residential properties nationwide. â–ª The Tax assessor’s indication of value, if available. â–ª Information on a subject property and recent sales history. â–ª Comparable Sales analysis of like properties.
…Cyberhomes puts it at $184,842 , the price range is $166,357 – $212,568: Realtor.com – You have to agree to have a Realtor contact you to provide the report.