Front Royal Real Estate Mutterings

Tax Credits Extended and Expanded

2009-11-05T16:10:00.003-05:00

Great news for home buyers, and for sellers, in a struggling residential real estate market in Warren County and elsewhere.

After several weeks of discussion, Congress has today passed bill HR3548, which extends the existing $8,000 First Time Buyer Tax Credit through to next April, and adds a $6,500 Tax Credit for some existing owners buying another home. The White House has confirmed that the President will sign it into law tomorrow (Friday, November 6).

In both cases, the credit is only available for purchase of a primary residence. Qualifying income levels have also been increased.

Here are the details:

First Time Buyer Tax Credit
- tax credit is 10% of purchase price, maximum $8,000
- applies to buyers who have not owned a home in the previous 3 years

Current Home Owners
- tax credit is 10% of purchase price, maximum $6,500
- applies to buyers who currently own a home, and have lived in it for at least 5 of the previous 8 years as a principal residence
- existing home does not have to be sold, but the new purchase must be for the primary residence

For Both Credits
- maximum qualifying income levels are $125,000 for single tax filers, and $225,000 for joint filers
- for purchase of primary residence only (not a second home or investment property)
- maximum purchase price $800,000
- must have a ratified contract for purchase by April 30, 2010
- must settle on the purchase by June 30, 2010
- for members of the military serving outside the US for at least 90 days, the tax credits will extend a further 12 months to June 30, 2011
- improved powers to the IRS for investigating possible fraudulent claims

While I see a big incentive here for first time buyers (and relief for those who were under pressure to close their purchases by November 30 under the existing deadline), I'm not convinced of the need for the limited credit for some existing homeowners, who don't need an incentive to buy, but rather need to get their current home sold in order to be able to move on and buy again.

Still, we need every bit of help we can get to bring buyers off the fence and stimulate the current market, and this new legislation is excellent news.

First Time Buyer Tax Credit Deadline

2009-09-18T11:05:00.004-04:00

Time is running out if you wish to take advantage of the $8,000 First Time Buyer Tax Credit. The purchase must be completed by November 30,
which leaves only 74 days - that's barely 10 weeks - to get your mortgage finance in order, find the right home, get an accepted contract, and settle on the purchase.

While there are moves among members of Congress and lobbyists to extend the Credit into next year, and even to increase its scope, there is also plenty of opposition to the idea - so nothing can be relied upon, and the only sure way is to make sure you buy by November 30.

Further details can be seen on my website at http://taxcredit.chrisonline.net/.

If you need assistance in finding a home in or around the Front Royal area, or just want to talk through the First Time Buyer Tax Credit, please give me a call on (540) 671-1367.

Best Opportunities for Buyers are Now!

2009-06-03T07:29:00.013-04:00

Heads up folks, the great "window of opportunity" may be about to close.

The past few months have presented buyers with a great chance to snap up bargain homes. All at once, we have seen:-

falling home prices, back at least to 2003 levels
record low mortgage rates encouraged by Government intervention
the introduction of an $8,000 First Time Buyer Tax Credit

The result has been a significant increase in activity in the past couple of months, though this has been largely focused on the sub-$200,000 price range, and in particular on foreclosures which have accounted for over 2/3 of the sales so far this year in Warren County. This activity has brought the sub-$200,000 inventory to less than 7 months' supply, which is now a balanced market and no longer a seller's market in this price range.

But here's where things stand as we move firmly into the heat of the summer:-

Home prices appear to have bottomed, though many over priced homes on the market still have to come down to more realistic levels. However, buyers waiting to see a further fundamental drop in sale pricing levels are likely to wait in vain.

Mortgage interest rates may be rising. Over the last week of May, the government's sale of 10 year Treasury Bills (to help finance the stimulus) resulted in yields increasing by 1/2%, and mortgage rates, which are closely linked to 10 Year Treasuries, also increased by almost 1/2%. The market experts believe this is just the start of an inevitable steady rise in rates as a natural response to the huge supply of money into the market and the resultant threat of inflation down the line.

The Tax Credit will end! If you are a first time buyer (defined as someone who has not owned a home during the previous 3 years), you also need to be aware that you have to complete your purchase by November 30, 2009 to qualify for the First Time Buyer Tax Credit. A recent government announcement allows the credit to be "anticipated" and used towards the downpayment, but this still all has to be completed by November 30. That's less than 5 months, and that time soon disappears when you are going through the process of looking for and buying a home.

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So now is the time to act, before you are looking over your shoulder wishing you had done so earlier. I can help you find a home, and talk you through the process if you are not familiar with it. Here's how to start . . .

browse for listings on the market at my home search
read more about the First Time Buyer Tax Credit
read more about foreclosures
ask me for an up to date foreclosure list for Warren County.
or just send me an email or call me on (540) 671-1367

There are Alternatives to Foreclosure

2009-04-22T12:07:00.018-04:00

Many homeowners are struggling to pay the mortgage, or see a problem looming with a substantial increase in their mortgage payment as it re-sets. They may have borrowed unwisely, or just been unlucky with reduced income through losing a job or other reasons.

These homeowners may be quite prepared to sell their home to solve the problem, but can't do so because the value of their home is less than the amount they owe. They are "upside down" on their mortgage.

But most of them think that foreclosure is inevitable, and the only possible outcome.
Not so . . .

There are several reasons why you should try to avoid foreclosure if at all possible . . . not only does a foreclosure do long term and substantial damage to your credit, but a foreclosure on your credit history can affect present and future employment, and security clearances even at lower levels.

If you are in this position and facing foreclosure, don't assume that there is no alternative. The sooner you act, the greater the chance of working out a way forward. There are two main options to pursue, but note that they both require that you are genuinely suffering hardship and do not have the means to rectify the situation from your own resources.

Mortgage Modification. Approach your mortgage lender to see if they are able to modify your mortgage terms, by refinancing at lower interest rates or providing other temporary or longer-term relief. Don't assume they won't listen - lenders are increasingly aware of the benefits of helping to prevent foreclosure if they see the opportunity. Of course, the proposal must be viable. The government also announced a scheme a few weeks ago which, in certain cases, will compel lenders to modify mortgages, and in doing so provided a framework which others may wish to work with.

Short Sale. A short sale is the sale of a home where the net sale proceeds are insufficient to clear the mortgage(s), and the owner is unable to make up the shortfall from his own resources. The mortgage lender therefore cooperates with the sale and writes off the shortfall. Mortgage lenders are becoming very cooperative towards short sales, because if the only alternative is foreclosure, there are several reasons why they will lose less and benefit more from an agreed short sale. While a short sale will affect your credit, the impact is significantly less and for a shorter period than a foreclosure, and should not affect employment or security clearance issues.

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I have recently undertaken specialized training in the issues surrounding distressed property ownership, and have achieved the CDPE designation (Certified Distressed Property Expert). This leaves me very well placed to advise you and help you through these difficult times, and I encourage you to contact me to let me help you.

If you live in or around Warren County, VA, and would like to talk it through, please give me a call on (540) 671-1367 or send me an email with some contact points.

4% mortgage rates?

2009-03-18T19:22:00.011-04:00

Great news for our ailing real estate market in Front Royal and Warren County. The Federal Reserve today announced that it is buying an additional $750 billion of mortgage-backed securities and agency debt, and $300 billion of longer term Treasury bonds - a total cash injection of $1.15 trillion, doubling its previous efforts in boosting the money supply.

The aim - and the pundits believe it will work - is to ease credit, and reduce interest rates for most borrowers, in particular mortgage borrowers. All being well we could see mortgage rates down to 4% or very close, a challenging target set by the government a couple of months ago.

The one question mark is whether the mortgage lenders will pass on the full benefit to the borrower. I hope so, and the belief is that they are likely to, due to political pressures especially on those banks that have received substantial (and cheap) TARP funds.

This is great news for home buyers - record low interest rates to take advantage of the very low house prices that are now available in the market. If you are a first time buyer, you may well also qualify for the 10% (max $8,000) tax credit. What a time to be in the market for a home!

If you've been thinking of buying, but sitting on the fence waiting, now may be just that window you have been waiting for. Give me a call or email me to see how I can help you to find the right home.

Market Update

2009-03-10T09:45:00.018-04:00

We have been stuck in a range of around 25 to 30 sales per month for some time now in Front Royal/Warren County, but have seen the median sale price steadily fall due to the high level of foreclosures. Of the 27 sales in February, 22 (81%) were foreclosures. To put it another way, only 5 homes in regular private ownership sold in February, out of around 350 privately owned homes on the market. So far this year just 5 homes have sold for over $300k, and none over $400k.

The first chart shows active listings, sales, and months supply over the past 3 years. Click on the chart for a larger image.

The second chart illustrates the falling median sale price (green) and the Days on Market (purple) for homes that sold. Click on the chart for a larger image.

Confidence remains the principal obstacle to an improving market, and much of that depends on the general economy over the coming months. However there is no doubt that an improvement in activity will not bring about an increase in prices for a long time (my guess is 3 or 4 years). Why? Because there is still a significant over-supply of homes on the market (nearly 16 months supply), along with a large reserve of wannabe sellers waiting in the wings for a better opportunity to sell, who have either given up over the past 12 months, or who haven't yet put their home on the market.

Pricing of listings remains absolutely paramount. Most of the foreclosure companies get it right, which is why their homes sell. Most private sellers are still getting it wrong, as they cannot come to terms with the price necessary to achieve a sale.

Government Assistance for Homeowners

2009-02-19T14:17:00.010-05:00

The government yesterday announced their long-anticipated initiative called the Homeowner Affordability and Stability Plan. If you are interested, click the link to read the White House Fact Sheet. The plan aims to:
a) stem the flow of foreclosures with a loan modification plan
b) help those who owe more than their home is worth, to refinance
c) ensure low mortgage rates for the foreseeable future

The two main problems with the initiative are that it only addresses “conforming” mortgages, and while it will no doubt help many deserving families, it will also reward many others who have in the past borrowed unwisely or beyond their means. It is already causing a lot of resentment from among the majority of homeowners who bought wisely and within their means, and pay their mortgage every month.

As always, the devil will be in the detail, and we will learn much more when formal Guidelines to Lenders are issued March 4. Meantime, here are the main features of the initiative:

Mortgage Modification Plan (expected to cover 3 to 4 million borrowers)
- owner-occupiers only
- conforming loans only, where repayments are more than 31% of gross income
- mortgage may be up to date, or in arrears
- overall, repayments will be reduced to 31% of gross income by reducing interest rate (partially subsidized by the government)
- interest rate reduction for 5 years, after which it will be phased back to “regular rate”
- incentive to the borrower of $1,000 reduction in principal for each year that repayments are made on time, for up to 5 years
- also incentives to loan servicers
- debt counseling a condition, if current total debt servicing is 55% or more of monthly income
- participation by lenders is voluntary, but compulsory for those who receive TARP money
- lenders may also achieve the repayment reductions by reducing the amount owed, but this seems less likely to be done

Refinance Assistance (expected to cover 4 to 5 million borrowers)
- owner-occupiers only, with conforming loans
- first mortgage cannot exceed 105% of current value of the home
- there can be an existing second mortgage, but that lender will need to agree to remain “second in line”
- must have satisfactory payment record, and payments must be current for the 3 months prior to entering the scheme
- new mortgage must be a fixed rate over 15 or 30 years, with no prepayment penalties or balloon repayment
- the portion of the new mortgage in excess of the home’s current value must remain unsecured

Additional Support for Freddie Mac and Fannie Mae
- government doubling its stake from $200bn to $400bn
- designed to increase confidence and promote stability and liquidity
- should ensure sustained low mortgage rates for the foreseeable future

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There are a lot of questions unanswered, and I am sure the pundits will be picking everything apart over the coming days. But here are my initial thoughts:

- the concept that this "rewards bad behavior" has to be balanced with the overall benefits to be gained by reducing foreclosures - if that is achieved. Foreclosures devalue all homes in a neighborhood, so this will hopefully provide some benefits to everyone.

- a "conforming loan" was by definiton no more than 80% of the value of the home when it was bought (or when refinanced). The limitation that the loan must now be no more than 105% of the current value would work if house prices had only dropped by some 25%. But in Warren County, Virginia, we have seen sharper declines than that. There will be a lot of people who bought at the peak, who will not meet these criteria.

- we have seen a lot of inconsistency between lenders in how they handle short sales or potential foreclosures. Some won't talk until the mortgage is 3 months in arrears (encouraging owners to not pay!), others won't talk until the home has been on the market for at least 3 months. My hope is that the "Guidelines to Lenders" will provide a standard set of procedures which may encourage all lenders to behave more consistently even with loans that fall outside those guidelines. We'll see . . .

Tax Credit - Final Details (Apparently!)

2009-02-13T07:47:00.011-05:00

After some confusion and mis-reporting, the final details of the new tax credit have been released. Note that although this is now the "agreed compromise" by all sides of Congress, it has yet to be finally voted on, and then signed off by the President.

If you want to read the full text of the official press release for the Stimulus Package, it is here (the part relating to the home buyer credit is on page 2): American Recovery & Reinvestment Act of 2009.

But in a nutshell, here are the basics - very different from the original broad-ranging $15k credit added to the bill by the Senate:

- a refundable tax credit of 10% of purchase price or $8,000, whichever is less (which I believe means that if the tax payer's tax liability is insufficient, then a refund will be issued for the balance)
- for first time home buyers only (defined as those who have not owned a home during the previous 3 years)
- purchases between January 1, 2009, and November 30, 2009
- NOT repayable unless home is sold within 3 years
- credit reduced for couples earning over $150k and single filers earning over $75k

Effectively, the existing $7,500 first time buyer credit (due to expire June 30) has been increased to $8,000, extended to November 30, and converted from a 15 year interst-free loan, into a genuine non-repayable credit (unless you sell within 3 years).

Personally, I don't think this is enough to provide the stimulus we were looking for in the housing market. But at least if a first time buyer wishes to take advantage, they now need to get off the fence. We will see . . .

New homebuyer tax credit cut in half

2009-02-12T00:10:00.005-05:00

There is good news and bad news from the "compromise agreement" for the stimulus package finalized yesterday in Congress.

The good news - a tax credit for home buyers at 10% of purchase price is part of the package. The bad news - the $15,000 maximum proposed by the Senate has been reduced to $7,500. Better than a kick in the pants, but maybe not the jump start that we were hoping for.

This is NOT the $7,500 credit already in place from last year, due to expire this coming July 1. That was only for first time buyers, and was effectively a 15 year interest-free loan. This new credit will be available to all buyers of a primary residence, and will not be repayable unless the property is sold within 2 years. Full details should be available soon.

$15,000 tax credit proposed

2009-02-07T15:18:00.004-05:00

Could this be what we've been waiting for? Proposals added to the stimulus package currently going through Congress are for a tax credit for ALL buyers of a primary residence, equal to the lower of $15,000 or 10% of the purchase price.

This would be great news for both buyers and sellers, and may be just what we need, on top of the record low mortgage rates, to put a bit of zip back into the very slow real estate market in Warren County. Details could still undergo changes as part of the politics of the process, but here are the bare bones of the proposal as I understand it:

- direct tax credit of 10% of purchase price or $15,000, whichever is less
- for purchase of primary residence only
- must be purchased within 12 months of the legislation's enactment
- NOT restricted to income levels - all buyers qualify
- NOT repayable unless home is sold within 2 years
- can be claimed on 2008 tax return
- if tax liability is insufficient to absorb the full credit, the credit can be split in two and taken over two tax years

According to Bloomberg, the credit would effectively wipe out the annual tax bill for a "typical" family of four with household income of $122,000.

This legislation will replace last year's $7,500 credit (still good for purchases before July 1, 2009), which was only for first time buyers with income below $150,000, and was effectively a 15 year interest-free loan rather than an out and out credit.

We'll hopefully have this all confirmed and know fuller details over the next week or so. Meantime, I don't believe it will be the answer to all of our problems, but I do see it as a very positive step which has every prospect of helping to stimulate the housing market.

Catching up over the past 18 months

2009-01-27T17:25:00.000-05:00

Well, I'm ashamed to admit that it's almost 18 months since I last posted to my blog, but I am committed to making up for that with regular posts from here on to inform readers about the local market in and around Warren County, Virginia, and other local and real estate issues.

So to start to catch up, I looked back to where we were in August 2007 when I last posted. Wow! what a dramatic sea-change we have seen. Where were we then? In contrast to what many of my colleagues and the media in general were saying at the time, I was stressing how the market was drying up. I was quoting 40 to 55 sales per month (down 50% from peak) in Warren County, and a 12 month supply of homes. We had just begun to see the initial "credit crisis" with problems with some mortgage lenders, but little did any of us anticipate what was yet to come.

Since then, the housing market has steadily dwindled, and more rapidly so over the past 9 months or so. Front Royal/Warren County has for some time been seeing only 25 to 35 home sales per month, with an overall supply of about 18 months. Half of those sales are typically foreclosures, with a lot more being "short sales" where the bank is losing money and cooperating with a voluntary sale by the owner without foreclosing.

The backdrop to all this has been the implosion of the "sub-prime" mortgage market, leading to problems with securitization of mortgages in the secondary market. The tightening of credit, and subsequently the illiquidity and failure of several financial institutions, has led to a global economic crisis which governments around the world are fighting to underpin, with far reaching support and stimulus packages (such as the "TARP" in the US) including huge national investments in banks. At the same time, a few weeks ago it was confirmed what anyone already knew unless they were in denial - that the USA was in a recession which had officially started in December 2007.

The fallout from all this has been a rapid decline in consumer confidence, with increasing job losses as employers pare their costs to meet falling demand, and a fear of the widespread talk of a another depression like the 1930's.

House prices in this area (those that sell, not the "hopes and aspirations" of some of the asking prices) are now back close to 2003 levels, and with interest rates at record lows, there are some great opportunities for qualified buyers. Of course the opposite can be said for sellers - the chances are that anyone who bought a home from late 2003 onwards with 100% or near-100% finance, or who refinanced a substantial part of their equity since then, is unable to sell that home and clear their mortgage from the net proceeds.

The past 18 months has seen a dramatic and traumatic turnaround in fortunes. In my coming posts, I will try to make a little more sense of how it impacts the housing market locally.

Two New High Schools

2007-08-23T07:55:00.001-04:00

September 4 sees two brand new High Schools opening their doors to Warren County students, who may for once be looking forward to a return to school after the summer :). . . Both schools are completely new buildings with the latest technology, and with new playing fields. They will intially take students in grades 8 to 12.

Warren County High School, still home of the Wildcats, is moving from its present 67 year-old site, to Westminster Drive on the east side of Front Royal. It will serve broadly the north east, east, and south east areas of the County (Hilda J Barbour & Leslie Fox Keyser Elementary Schools, plus the route 522 South corridor from Ressie Jeffries ES).

Skyline High School has been built on a green field site off route 340 just south of Front Royal. SHS will be home to the Hawks, and will serve broadly the north, west, & south of the County, drawing from A.S. Rhodes ES, E.W. Morrison ES, and Ressie Jefferies ES (apart from the route 522 South corridor).

The School Board have produced a useful map showing the school zones for the new high schools and the elementary schools. You can view it here (you can zoom in for more detail).

The two new high schools mark the completion of Phase I of Warren County's 10 year school plan. Phase II will first see the old high school site at Luray Avenue refurbished and reopened as the middle school in 2008, then the current middle school on West 15th Street remodeled. The result in 2009 will be two fully refurbished middle schools taking grades 6 to 8, and feeding directly into their respective high schools for grades 9 to 12.

Phase III of the 10 year plan will see a new elementary school built, further details yet to be finalized.

Market Update & Mortgage Turmoil

2007-08-21T19:15:00.000-04:00

Back in March I wrote that we had a quiet market. Now we are getting well through the summer, it is time to take a step back and review things. And it's not a pretty picture for sellers. Hopes of steady improvement have long since evaporated, and we are looking at a market which has already "peaked" for the summer, even though that peak was way below last year's levels.

All summer the number of homes on the market in Warren County has been hovering around 650, and as I write there are still 655 active listings, and just a further 57 homes under contract. With sales over recent months running around 40 to 55 per month, there is a 12 month supply of homes on the market, compared with around a 2 month supply before the market began to turn in July 2005.

The chart shows the trend since January 2005, with the rapid growth of active listings (blue), decline of sales (yellow), and the trend in the supply of homes on the market (red). Click on the chart to see a larger image.

The latest cause for concern is the turmoil in the mortgage market. With the increase in foreclosures, mortgage quality has become a big concern in the wholesale market where mortgages are "sold" and bundled as mortgage bonds to the investment funds (such as the one looking after your 401k). The result is that some lenders have been unable to bundle and sell their loans on, and as a result have been unable to lend new mortgages - effectively having to close shop.

Lending criteria across the board have been progressively tightened, and many people who could get a loan a few weeks ago are now unable to; many who could get 100% finance may now have to put 10% down (which may well count them out); and those looking for "no doc" or "stated income" loans may be looking in vain. In a nutshell, good quality credit is more important than ever (perhaps it always should have been?), and most of the "creative" lending has gone out of the window.

If you were pre-qualified a few weeks ago with your lender, check again before you do any more house hunting. You need to make sure that you are still on the same page with the amount that you can borrow, and the terms attached to it.

Build Them & They Will Shop!

2007-07-31T16:02:00.000-04:00

Exciting times for Front Royal shoppers - the new Target store opened last week, along with its in-house Starbucks and Pizza Hut Express outlets. Also now open is Famous Footwear. Over the next week, Staples (Aug 4) and Petco (Aug 6) will open their doors. And very shortly, we will see TGI Fridays, Fashion Bug, GNC, Radio Shack, and Game Stop, among others, all in the Crooked Run Shopping Center.

On the other side of route 522, the huge Lowes store is taking shape. Beyond that, the future Wal-Mart is about to spring up from its leveled site, and the rest of the Riverton Commons infrastructure is taking shape amid a flurry of activity. I drove around there earlier today to take a couple of photos, and was running the gauntlet of many large vehicles, concrete trucks, earth movers, and swarms of construction workers, surveyors, and engineers.

On a sadder note, isn't it a shame to see what has happened to the home in the last picture below? A handsome brick colonial of over 3,000 sq.ft. on a nicely landscaped 5 acres, this home once looked out over gently rolling land and a 2-lane route 522 wandering north towards Winchester, with the mountains as a background. Now it looks down on all this development, with a bird's eye view of Lowes and a busy intersection which at one point is 8 lanes wide. I guess that's the price of progress.

What is a Sanitary District?

2007-07-27T11:27:00.000-04:00

I often get puzzled looks from buyers when I explain that a home in Warren County is in a Sanitary District. What is that?

First, it is nothing to do with sanitation, in fact I have no idea where the term came from. It is basically a subdivision where, at the owners' request, the Circuit Court has conferred Sanitary District status. The "HOA Fee" is built into the real estate tax bill, and paid with the real estate taxes, then passed on to the HOA by the County.

As a result:

- there is a better rate of collection for the HOA, as owners are less likely to default on real estate taxes than HOA fees (and the County can impose a real estate lien on unpaid Sanitary District fees)

- the net cost to the owner is lower, as the payment is classed as real estate taxes and therefore normally deductible for tax (but don't take my word for it, check with your tax advisor!)

- as the payment is built into real estate taxes, it is normally part of the owner's escrow payment when he pays his mortgage

The fee is set each year by the County as part of the budgeting process, at the same time as the rate for real estate taxes. The amount varies from one Sanitary District to another, and depends on the HOA's own budget, which has to be submitted to the County.

There are currently eight Sanitary Districts in Warren County. The larger and better known ones are High Knob, Shenandoah Farms, Blue Mountain, Shenandoah Shores and Skyland Estates. The other three are Riverside, Cedarville Heights, and South River Estates.

For more detailed information, go to the following links:
- more background, legalities, etc - Warren County Sanitary Districts
- current Sanitary District fees - Current Sanitary District Fees

New Rates for Real Estate Taxes

2007-06-21T11:26:00.000-04:00

Last November I posted about the tax reassessments which had everyone's emotions running high. After the dust had settled it turns out that overall tax assessments across Warren County increased by 93%. Of course, individual assessments will be higher or lower than that.

Warren County, and the town of Front Royal, have now approved their fiscal budgets for 2007, and the revised tax rates that go with them. The result is that the 2007 rate for real estate taxes in the county will be $0.45 per $100 (previously $0.82) and for the town, an additional $0.07 per $100 (previously $0.13).

Taking into account the 93% increase in assessments, this equates to average increases of 5.91% for the county, and 3.92% for the town. Of course, individual cases will vary depending on the specific change in their own tax assessment.

Real estate taxes remain very low in Warren County, Virginia. For example, a home worth around $250,000 (the median sale price of homes in the county so far this year) may have a typical tax assessment of say $220,000, and therefore real estate taxes this year of just $990 (or $1,144 if it is within the town of Front Royal) - that's less than $100 per month on the owner's escrow payment to his mortgage company. I always find that people relocating from out of state - and from many other parts of Virginia - are pleasantly surprised at the low taxes. That applies whether they are coming from an area of higher property values like New Jersey, or cheaper areas such as Ohio.

Septic Systems and Percing a Lot

2007-05-22T11:25:00.000-04:00

If you own land outside the Front Royal town limits in Warren County, VA, it will almost certainly require a septic system before you can build, and in most cases a well. I find that there is a lot of misunderstanding and misinformation about septic systems and "percing" lots, and I spend a lot of time explaining it all to prospective buyers, or owners who want to sell their land.

So I have created a new Q & A page on my website covering the most common questions, including an overview of the process, percing costs, and the difference between conventional and alternative systems.

Check it out at Septic Systems and Percing Lots Q & A

If you are looking to sell land, whether or not it is perced, please don't hesitate to contact me to talk it through.

I have several very nice parcels of land on the market, priced from $65,000 to $199,900 to suit all budgets and tastes, check them all out, including pictures, plats etc, at: Land & Building Lots

Transport for Commuters

2007-05-18T11:24:00.000-04:00

I am often asked what transportation help is available for commuters from the Front Royal & Warren County area to northern Virginia and Washington, DC.

The Valley Commuter Assistance Program (VCAP) provides help in a number of ways, including free ride-matching for commuters looking to pool cars through their Rideshare program. This program covers the Counties of Warren, Page, Shenandoah, Clarke and Fredrick, along with the City of Winchester. Funding is provided by the State, with some contribution from the individual jurisdictions that it serves.

There are also commercial bus pooling and van pooling arrangements, and Park & Ride lots near exit 6 (Front Royal) and exit 13 (Linden) of I-66, to provide more secure parking for those sharing rides.

Further details on all the above, along with contact points, can be found on the Valley Commuter Assistance Program web site.

New Shopping Centers for Front Royal

2007-05-09T11:22:00.000-04:00

Anyone who last traveled route 522 north of exit 6 of I-66 a couple of years ago, will be astonished at the changes now taking shape. It started with the creation of the Blue Ridge Shadows championship golf course, now with a Holiday Inn & conference center being constructed alongside the highway. But more significantly, we are now seeing the development of two out of town retail parks, a first for Warren County.

Crooked Run Shopping Center (on the west side of 522) and Riverton Commons (on the east) have been in the development stage for some time, but will come to life with the opening of the new Target store this coming July on Crooked Run, followed closely by PetCo, Staples, Fashion Bug, Famous Footwear and TGI Fridays. By early 2008, Riverton Commons will be welcoming Wal-Mart, Lowes and others, which so far apparently include several eating places like Crackerbarrel, Chic Fil-A, Checkers and Starbucks. Yes, Front Royal, Virginia will have arrived - we will have a Starbucks

What's more, a third retail park - bigger than these two combined - is in the pipeline off Rockland Rd, a mile or so further north. I understand it will be a couple of years before we see major developments there, but you can probably begin to think of some of the major retail names who will no doubt be looking for a share of the spoils.

Virginia Wine & Craft Festival

2007-05-07T11:21:00.000-04:00

Don't miss the 21st Annual Virginia Wine & Craft Festival, to be held Saturday May 19, 2007 in historic downtown Front Royal, in Warren County, Virginia.

The main downtown area of Front Royal - The Commons, Chester St, & East Main St - is cordoned off to leave a delightful area for visitors to roam and mingle. Wine producers and skilled crafters come from all over Virginia, and in addition there are many local Warren County businesses and organizations represented, and lots of fun, games and rides for the kids.

Musical entertainment is at the gazebo in The Commons, and on the Court House lawn. At the gazebo will be popular local Beatles cover band Glass Onion (from 10 am to 1 pm), and Texas Chainsaw Horns (2 pm to 5.30 pm), a band blending soul, funk, rock and country. In front of the Court House will be Bill Dykes & The Beatnik Night Players (bluegrass/jazz variety) from 12 pm to 2 pm.

Admission is $12 in advance, $18 at the gate - for that, you get all the wine tasting you want. If you don't want to join in the wine tasting, admission is just $2, with kids aged under 6 free.

Advance tickets may be purchased from the Warren County Chamber of Commerce, call (540) 635-3185.

This is a great event with a fantastic buzz - if you are new to Warren County or haven't been to the event before, make it a priority!

A Quiet Market in Warren County

2007-03-07T11:20:00.000-05:00

Yes, we all know the market has been tough over the past 18 months, with prices falling in Warren County and surrounding areas during the last 8 or 9 months of 2006 in particular. The indications are that prices may have now leveled out, and with mortgage rates staying low, there has been cause for cautious optimism that the buyers will come out of their shells as they begin to feel more comfortable.

But what I am now seeing is a series of new listings coming on to the market with inflated prices, suggesting that the sellers believe we are about to embark on a bouyant market. Have I missed something? Please tell me, where is the evidence? Year to date unit sales in Warren County are 18% down on this time last year, and homes under contract are a whopping 38% down.

Even more worrying, there are again nearly 500 homes on the market in the county (492 in fact, 37% up on last year and more than three times the number from 2 years ago ), and I'm looking out at several more inches of fresh snow as I write, so I'm sure we are still in the winter. Based on the sales in the first 2 months of the year, that is a massive 15 months supply. If you want your home to sell, it has to stand out against the many others that it is competing with. It is not a market for "let's try it at that price and see if we get any bites".

So yet again, I am going to get on my soap box and preach. Here goes . . . it doesn't matter how much you WANT for your home, or how much you NEED for it. The market will dictate the price, and if you don't show willing to meet the market (with a realistic asking price), then the market won't come to meet you. Overpriced homes will not be shown, or at best, the wrong people will be viewing the home, as they will be expecting more for their money.

It has been a hard lesson for many over the past 18 months, but it seems there are still those who haven't learned from it. So come on folks - you know who you are - get real, and price your home as if you mean to sell it. You do want to sell it, don't you?

Dangerous "Expert" Tips

2007-03-01T11:18:00.000-05:00

I just had to comment on something I saw on "Today" this morning on NBC. The channel's proclaimed "real estate expert" Barbara Corcoran was interviewed by Meredith Viera, and gave out some tips for Buyers. There were several tips which in my mind were quirky, but here is the one that frightened me . . . once I heard it, I backtracked on my Tivo to make sure I didn't hear it wrong, and noted down her words. This is what she said, verbatim:-

"Offer all cash if you are pre-qualified for financing. Most people know they can get the financing, and then go in and say their bid is based on financing. It doesn't make any difference. What you should be doing is say 'I'm an all cash buyer'. You've got the financing - go in as an all cash buyer".

Oh dear!! Please don't EVER think of doing this, and don't try to encourage your Realtor to do so either. If you intend to support the purchase with finance, then you should be stating the fact in the offer, and making the offer conditional upon that finance. Why? Because (1) it is a material fact, and by following Barbara Corcoran's advice, you (and your Realtor) would be in great danger of misrepresentation; and (2) because if for any reason you ended up unable to get your finance (for instance, you lose your job?), the inability to raise the funds would be no defense, and you would be in default on the contract. This would risk your escrow deposit at best, and leave you being sued at worst (Please note: I am not a lawyer, so this is a personal opinion only - if in doubt, take professional legal advice).

It does worry me when people speak on TV to a large audience that regards them as "an expert" on the subject, but then give advice that is ill-conceived, misleading, or downright dangerous. Let me assure you - the person who knows best how to help you with purchasing or selling real estate is your Realtor, and your Realtor alone. Not your relatives, neighbors, work colleagues, and - worst of all sometimes - "experts" on TV!

Talking of which, I had a settlement yesterday on a property on High Knob, here in Front Royal. As we were doing the final walkthrough, Carson, the buyer, said to me "I've been worried because everything has gone so smoothly, yet everyone kept telling me about all the problems and nightmares that were going to happen". No problem Carson, you were in the hands of my excellent recommended mortgage guy Adam Huddleston, owner/broker of Integrity Home Mortgage; and of course in the hands of an experienced Realtor who has sold over 300 properties in and around Warren County, Virginia, over the past seven or so years. Experience counts for a lot.

Welcome to the New Year

2007-01-01T11:17:00.000-05:00

A Happy New year to everyone. I want to take this opportunity to thank all of my clients of the past year, who have helped me to achieve sales of over $16m during 2006. This was significantly my best year ever, despite the downturn in the market which affected the whole area, not just Front Royal and Warren County.

The market is tough, but don't let anyone have you believe that it is a disaster. What we have seen is effectively a return to a "normal" market where sellers have to put their best foot forward to make their home as saleable as possible, where correct pricing is paramount, where Realtors have to work harder (and sellers should expect them to) to maximize the promotion of their listings, and where buyers expect to negotiate on price and terms. Above all, where it is normal for a home to be on the market for several months before it sells.

That is all a far cry from 18 months ago, when sellers and Realtors could get away with the minimum work, and where buyers had no choice but to accept the prices being sought - because if they didn't, then someone else would take it from under their feet while they were thinking about it.

The age of reality has set in, and unfortunately some sellers still don't "get it"; their homes will remain on the market unsold. Some Realtors also continue to think that listing a home in the Multiple Listing Service, and perhaps a homebook or two, is sufficient to get it sold; their business will dwindle. Homeowners are coming to appreciate the value of a comprehensive marketing plan, combined with a high profile website that is easily found in the search engines, and that provides extensive information for the buyers including plenty of quality pictures and virtual tours.

Did I mention that I do a great job of marketing a home? :) If you're thinking of selling your home (or have it on the market, but are unhappy with your present arrangements), check out my Featured Listings page, and give me a call to talk things through.

Latest Local Market Report

2006-12-07T11:15:00.000-05:00

I have just released figures for November 2006 for Warren County, Va, including the present market position as at December 6, 2006. They can be seen on the right hand column of my Newsletter.

Home for the Holidays in Downtown Front Royal

2006-12-01T11:14:00.000-05:00

December 1 to December 3 sees "Home for the Holidays" in The Commons, right outside our office in downtown Front Royal, hosted by the Downtown Business Association. The Christkindlmarkt will open Friday and Saturday from 10am to 10pm, and Sunday 11am to 3pm. There will be musical entertainment, crafters and artisans, indoor vendor booths, international food, Winter Wonderland, and Paws & Claus.

Don't miss the Christmas Parade, Saturday December 2nd, starting at 4.30 pm. The event also includes carriage rides, Victorian and Civil War strolling Carolers, and of course Santa Claus.