Friday, February 29, 2008

Henrico county may end 'Richmond' addresses!

The U.S. Postal Service will survey about 80,000 homes and businesses on whether Henrico should replace Richmond as the preferred address for 11 ZIP codes that fall totally or almost totally in the county.

The surveys will go out in May at the request of Henrico officials. They believe making Henrico a viable address will fix an old problem that misdirects an estimated $5 million in annual tax revenue to the city.

The survey was announced about a week ago, but it's more nuanced than initially described. If a majority of survey respondents approve of the switch:

  • Henrico would replace Richmond as the Postal Service's preferred address for ZIP codes 23075, 23228, 23229, 23231, 23233, 23238, 23242, 23250, 23255, 23288 and 23294.
  • Richmond would still be acceptable for those addresses, as would Highland Springs for ZIP code 23075, Page said.
  • Richmond would remain the preferred address for all properties in ZIP codes 23222, 23223, 23226, 23227 and 23230. However, Henrico would become an acceptable alternative -- one that county officials would encourage residents and businesses to use.
  • Glen Allen and Sandston addresses would not be affected.

When Should I Put My Home On The Market?

There is no "best" time to sell per se. Selling a house depends on supply, demand and other economic factors. But the time of year in which you choose to sell can make a difference both in the amount of time it takes to sell your home and in the ultimate selling price.

Weather conditions are less of a consideration in more temperate climates, but most of the time, the real estate market picks up as early as February, with the strongest selling season usually lasting through May and June.

With the onset of summer, the market slows. July is often the slowest month for real estate sales due to a strong spring market putting possible upward pressure on interest rates. Also, many prospective homebuyers and their agents take vacations during mid-summer.

Following the summer slowdown, real estate sales activity tends to pick up for a second, although less vigorous, fall market, which usually lasts into November when the market slows again as buyers and sellers turn their attention to the holidays.

If this makes you wonder if you should take your home off the market for the holidays, consider the advice of veteran agents: You are always more likely to sell your house if it is available to show to prospective buyers continuously.

Would discovering the length of time it might take to sell your house help in your planning process?

As Realtor, I can easily obtain information from our Multiple Listing Service (MLS) showing average time on the market from the time a house was listed to when an offer is accepted. Another factor to consider is the time involved between when an offer is accepted and when the transaction actually closes.

We would be happy to schedule a time to provide any information we can that would make the selling of your home a hassle free transaction. Don't hesitate to email or phone us anytime!

Richmond Real Estate - Buy versus Rent!

Nearly a full third of households are still renting...but if you are one of them, you could be paying a hefty price. Additionally, the children of the baby boomer generation are close to or at the home buying age, but these "echo boomers" could mistakenly decide to put off the purchase of a home because of all the noise about a "bubble" in home prices.

Is there a "bubble"? The simple answer is "no". Even if interest rates move a bit higher, it won't be enough to cause a nationwide slide in home prices. The key to a healthy housing market is the job market. If the payment on a new home might be slightly higher due to increased interest rates, it generally won't stop someone from purchasing the home of their dreams...but if they feel their job is in jeopardy, it might be enough to stop them from making a move. So with the currently low levels of unemployment and the beefy gains in job creation, it looks like the housing market will remain vibrant. Although it will be difficult to sustain the double-digit appreciation, perhaps closer to the historical 6-7% range, which is still very good.

It is important to note that housing tends to be localized. So if the job market in your area is weak, housing prices could under perform the rest of the country.

But this talk of a housing bubble has been going on for a few years now, and those who were unfortunately victimized by continuing to rent instead of purchasing a home are painfully mulling over their missed opportunity. But is it too late?

Let's look at an example. If you are paying rent at $1,500 per month and you landlord increases your rent by a modest 5% each year, you would wind up paying just about $100,000 over a 5-year period! Worse, after forking over $100,000, you still would have nothing to show for it.
And speaking of having nothing to show for it-how about any improvements you might make to rented property? It's uncommon for renters the freshen up the pain, install new light fixtures or plant flowers outside, but guess what...all your efforts, labor and the benefit of the improvement belongs to? Your Landlord, not you.

With an extensive variety of programs to help buyers obtain a mortgage with little to even zero down payment, the very same money could have been used towards home ownership. Even using a standard fixed program, a mortgage of $300,000 could be obtained with a total monthly mortgage payment - in property taxes and insurance - of around $2,200. Assuming a 25% tax bracket, this would be equivalent to the average amount spent on renting during the same period after your tax benefit.

And the benefits of home ownership are quite considerable. Because the mortgage is being paid down every month, equity is being built. After 5-years, the $300,000 mortgage would be reduced to $279,000, adding $21,000 to your net worth. Home appreciation can add an even bigger chunk. If your home appreciates a modest 5% per year, the value of a $300,000 would increase to $383,000 after 5-years. Subtracting the remaining mortgage of $279,000 and you have a whopping $104,000 of additional net worth! Even if the appreciation level were at 3.5% or half the historic norm, the result would be $77,000 of additional net worth.

But if laying out the initial increase in monthly payment and having to wait for your tax benefit to show up April is a tough nut to crack, the IRS wants to help. Instead of waiting to file for the tax benefits derived from your new home purchase, you can simply adjust the amount of your withholding. This allows you to have tax withheld from each paycheck so you can handle the new mortgage payment more comfortably throughout the year. In essence, you are taking your tax refund as you go instead of letting Uncle Sam hold it all interest free.

Visit www.irs.gov and use the IRs withholding calculator. This handy tool can quickly show you the change in withholding will do to your net paycheck.

Don't be victimized by the bubble hype. Buying a home is a big step, but it is almost always one in the right direction !

For additional local real estate information, information about me and my services, to request home listings by E-Mail, to request a market analysis on your current home, or to tour the MLS Listings please visit my web sites at www.RichmondVAHomes4Sale.com or www.e-RichmondHomes.com.

Tuesday, February 26, 2008

When's The Right Time To Buy?

A big obstacle to purchasing a new home could be the sale of your existing home. The equity you have built in your current home could serve as a down payment on your next home.

If you currently own a home, I would be happy to provide a market valuation to help you realize the potential gain if you sell your home. All I would need is some basic information about your home to provide you with a price range. I would also be happy to briefly visit your home and provide a more detailed evaluation, if you wish.

If you are a first time buyer, there are several programs that can assist you including a first time buyer 95% loan program that's called "risk-share" or "3% down" program.

The following is an outstanding article by Duan Hymber, distributed by Inman News:

Should I Buy Now Or Wait To Save A Larger Down Payment?Coming up with enough cash for a down payment and closing costs can be a hurdle for many buyers, particularly first-time home buyers. But there are ways you can buy a home without much cash on hand.

For example, there is a new first-time home buyer 95 percent loan program. It's called the risk-share or 2 percent down program, and it lets you get into a house with only 2 percent cash down. The additional 3 percent cash can be a personal loan from your credit union or a relative. This 3 percent personal loan must be a fully-amortized fixed-interest rate loan with a five-year due date. An amortized loan is paid off in full during the term of the loan (five years in this case).

Many first-time buyer programs will only give loans to borrowers whose income is below a certain level. That level is often so low that many first-timers with high incomes can't qualify. One benefit of the 2 percent down program is that it's available to borrowers with annual incomes up to $80,000.

If you have any question about buying or selling property, don't hesitate to call or email Mohamed!