Archive for November 2008
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The One Million Twenty Fifth customer. So close! |
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 As mentioned last week, Dave's Downtown Taverna was coming up on a huge milestone --- having served 1,000,000 customers! I had lunch at Dave's this past Friday, and wouldn't you know, the one millionth customer was sitting just a few tables away. IF ONLY I had come 30 minutes earlier! Ah well --- congratulations to Dave's for over 14 years of great food and service in downtown Harrisonburg! | |
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Looking for investment properties in Harrisonburg? |
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 Some investors wonder whether there are any good opportunities anymore in buying investment properties. You will find good investment opportunities if...
If you're interested in seeing either of these properties, or having an investment analysis for these or other properties, feel free to call (540-578-0102) or e-mail me (scott@cbfunkhouser.com). | |
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Would it be alright if we go see the house again? |
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 I sometimes have buyer clients who after seeing many homes, feel the need to re-visit one or some to further lock-in their priorities and decision. Sometimes these buyers tentatively ask if it would be o.k. to revisit such a home. My answer? Absolutely! If we need to return to a home a second time (or a third time) to take room measurements, get a feel for the layout and flow, become comfortable with the size of the yard, that's fine! Buying a home is a huge investment of your money, and your new home will hopefully be where you live for many years to come. Let's make sure we're finding you the right house! | |
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Does it take longer to sell a house if it doesn't have public water and sewer? |
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 I received this question by e-mail a few days ago, and I had never really considered this before. Are buyers less excited about well/cistern/septic, or are buyers indifferent? This analysis won't conclusively answer that question, but it is an attempt to look at what statistical data suggests.... In 2008, there have been 382 single-family, non-Massanutten home sales in Rockingham County. Of those, 244 of the home sales were on both public water and public sewer, and 130 did not have public water or public sewer. The properties with public water and sewer, on average, took 177 days to sell. The properties without public water or sewer, on average, took 155 days to sell. This was a bit of a surprise to me --- I had suspected that homes with public water and sewer would sell more quickly. Let's take a look at a few prior years to see if this trend has been persistent over time... In 2007, homes with public water and sewer, on average, took 169 days to sell. In 2007, homes without public water and sewer, on average, took 133 days to sell. Again --- homes without public water and sewer sell more quickly! In 2006, homes with public water and sewer, on average, took 131 days to sell. In 2006, homes without public water and sewer, on average, took 111 days to sell. So --- can anyone think of any possible confounding variables? | |
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Virginia maintains strong credit rating! |
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 Amidst turbulent economic times across the country, Virginia is a bright spot! Governor Kaine announced yesterday that all three credit rating agencies (Moody's, Fitch, and Standard & Poor's) have assigned their triple-Abond rating with a stable outlook to the Commonwealth's GeneralObligation Bonds. "The triple-A ratings are a testament to Virginia's fiscal strengths,"Governor Kaine said. "They also underscore the timely efforts we havemade to address the impact on Virginia of the slowing national economy." Read more here, and be glad you live in Virginia! | |
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EnergyStar Testing at the Cottages at Stone Spring |
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 Have you ever heard of a blower door test? EnergyStar (and EarthCraft) homes are built to higher energy efficiency standards than your typical new construction home. EnergyStar homes have to meet standards set by the EPA, and are typically between 15% and 30% more energy efficient than traditionally built new construction homes. But how do you test the energy efficiency of a home? A common test is a blower door test, where a calibrated fan blows air out of the house while the pressure of the air flow is monitored. This test measures how "tight" a home has been built. A "tighter" home will be more energy efficient, as heated or cooled air will not escape the home as quickly. The home pictured above, 1270 Cottage Circle, is quite energy efficient (and green) with flash coat insulation, windows with a U-factor under 0.4, a 14-seer HVAC system, EnergyStar appliances, Toto Eco toilets, Lahara efficient faucets and shower heads, a fiber cement board exterior, Low VOC carpets and paints, and recycled hardwood floors. Today, Benjamin Meredith with Building Knowledge conducted a preliminary blower door test on the home to test its efficiency. Enjoy the brief interview with Laura Scripture, of Scripture Communities. | |
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Harrisonburg considers use of eminent domain |
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 For the last several years, the City of Harrisonburg has been working on plans to connect Erickson Avenue and Stone Spring Road. Doing so, however, involves acquiring additional land currently owned by residents of Harrisonburg. Yesterday, the City Council approved the use of eminent domain if needed. Eminent domain is the power to take private property for public use with compensation being paid to the owner. Will the City have to "take" the land via eminent domain? Not necessarily --- if the owners agree to sell it to the City. City staff report that all but four or five property owners entered into agreements with the City to transfer the needed land. You may recall in (somewhat) recent news that JMU's acquisition of the Kyger property almost required the use of eminent domain. | |
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Lot Sales Slowing Faster Than Home Sales |
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 1,507 homes sold in Harrisonburg and Rockingham County in 2004, compared to a projected 983 this year (2008). That shows a decline of 35% when comparing 2004 and 2008. In stark contrast, 411 lots (less than one acre) sold in Harrisonburg and Rockingham County in 2004, compared to a projected 79 this year (2008). That shows a massive decline (as pictured above) of 80% when comparing 2004 and 2008. If you're looking to sell a lot right now, you may need to prepare yourself for a long wait. The current inventory of 363 lots may take a few years to sell. | |
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Hurry! Eat at Dave's Downtown Taverna this week! |
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If you like eating at Dave's Downtown Taverna, you'll want to eat there this week! (or maybe next week) Dave's is getting very close to serving their one millionth customer, and when they do, that customer will receive a $500 gift certificate to Dave's Downtown Taverna. Wow! So whether you're going for their gyro, souvlaki, pizza or pasta, make sure to eat at Dave's this week! Dave's is located in downtown Harrisonburg -- directions and a map are here. | |
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October 2008 Harrisonburg & Rockingham County Real Estate Market Update |
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The October 2008 Harrisonburg & Rockingham County Real Estate Market Report is now available. Click here for a printable PDF of this report.  Sales continue to be slow compared to last year, but overall prices continue to slowly and steadily increase. Both the median and average sales price increased when comparing January through October of last year versus this year.  After a strong September (compared to last September), October's sales figures are lower than expected. October's sales (62) were 40% lower than last October's sales (103). Perhaps last year's fall months (October & November) were an anomaly with their strong increase.  This graph shows a normalized trend of home sales by charting the ongoing sum of the preceding 12 months' sales. Despite an increase in sales pace last month (October 2008), this month we again see a continued decrease in this long-term sales trend.  Inventory continues to decline in Harrisonburg and Rockingham County --- this month down to 866 active single family, townhome and condo listings. This is a 9% decrease compared to June 2008's inventory level of 956 active properties.  As inventory continues to decline, likewise the number of months of housing that is on the market has also declined. The top two price ranges ($300k-$400k, $400k+) both are headed back down towards (somewhat) healthier supply levels. | |
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Flyers: Good or Evil? |
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 For almost all of my listings, I have flyer boxes in front of the home to provide interested buyers (or neighbors) with instant information on the home. Sometimes I wonder....
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Virginia Homeowners Alliance |
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 Consider joining the Virginia Homeowners Alliance...a web site focused on giving helpful information about issues affecting Virginia homeowners and homebuyers at the state and local levels. When there are growth, development, education or zoning issues in our area, you will receive alerts and updates on these issues. When there are legislative issues being discussed in Richmond that could affect you as a homeowner, you will receive alerts and updates. Visit www.vahomeownersalliance.com to join the Virginia Homeowners Alliance. | |
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How to decide whether to refinance |
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 Reproduced with the permission of Mortgage-X.com It's anyone's guess what interest rates might do in the next 3, 6 or 12 months, but rates continue to be historically low. Given these low rates, you may be considering whether it would be worthwhile to refinance. Here's a sample analysis of whether "Bob" should refinance, that might be helpful as you analyze your own scenario. Here's what you need to know about Bob....
One important note --- Bob lowered his payment by $167/month by refinancing not only because he lowered his rate, but also because he extended his remaining loan term from 25 years back up to 30 years. So, bottom line...
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Kai Degner elected to Harrisonburg City Council |
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 In local elections, Kai Deigner was elected to the City Council yesterday, along with Richard Baugh and Dave Wiens. Kai won with the most (6,060) votes, followed by Richard (5,133) and Dave (4,663). How did Kai do it? What was his platform? Of note, Kai is passionate about several real estate related issues, such as Smarth Growth, and Downtown Revitalization. Kai on Smart Growth... Harrisonburg is changing quickly, and Ibelieve we need to be proactive in making sure we preserve our openspace, control traffic, and build smartly. We should use the principlesof smart growth, "an urban planning and transportation theory that concentrates growth in the center of a city to avoid urban sprawl; and advocates compact, transit-oriented, walkable, bicycle-friendly land use, including neighborhood schools, streets that work for everyone, mixed-use development with a range of housing choices." (source) Read more about smart growth... Kai on Downtown Revitalization... Downtown is the heart of Harrisonburg and I'm committed to continuingthe renaissance. Using the available retail, living, and office spacedowntown is a wonderful way to continue building on the momentum thatso many people, businesses, and organizations have contributed to inthe last decade. Harrisonburg Downtown Renaissance, with whom I workwith closely each week, is to be commended for their dedication. Read more about Downtown Revitalization...
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Nailing down a closing date |
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 As I mentioned a few weeks ago, some sellers think, or assume that the date filled into the contract will be the actual closing date. So, if a seller wants or needs to nail down a specific closing date, can it be done? A common inclination is to insert "time is of the essence" into the contract. This seemingly innocent phrase signifies that if the closing does not take place on or before the closing date stated in the contract, the deal is off! This is a problem, because in almost all cases, the seller who wants the closing to happen on a particular date does not really want the deal to fall apart. The fact of the matter is that it is, reasonably, very difficult to contractually mandate a specific closing date. It isn't reasonable for a seller to demand a particular closing date because the buyer isn't always in total control of the timing of the closing. If an appraiser, loan underwriter or settlement agent (for example) is behind in their part of the process, the closing can be delayed without the buyer having any control over the situation. If, as a seller, you want to nail down a specific closing date, I would suggest that you:
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When to buy a loan discount point... |
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 One option you have when obtaining a mortgage is to pay a loan discount point to lower the interest rate on your mortgage. In most cases, a loan discount point will cost 1% of the loan amount, and will lower the interest rate by 0.125% over the life of the loan. For example, on a 30 year, $200,000 loan at 6.5%, with no discount points, your principal and interest payment would be $1,264.14. If, however, you paid one point, the $200,000 loan at 6.375% would require a principal and interest payment of $1,247.74. The cost of the loan discount point would be $2,000, and it would save you $16.40 each month. Thus, it would take 122 months (10 years, 2 months) before you started to realize any savings. However, to take it one step further, we should include the tax benefits of having bought the loan discount point. The $2,000 is tax deductible, thus if you are in the 25% tax bracket, you would have a tax savings of $500, and only need to recoup $1,500 of savings. By including this tax perspective, it would only take 92 months (7 years, 8 months) for you to start seeing savings for having bought the discount point. Bottom line --- in the examples above, if you don't plan to own the house for more than 7-ish years (or 10-ish years), it is likely not worthwhile to buy the loan discount point. | |
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Comparing Good Faith Estimates (GFE's) |
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 I always encourage my buyer clients to talk with at least two lenders. Different lenders offer different loan programs, closing costs, incentives, and more. Often, however, this leads to comparing what can be two very confusing documents --- the good faith estimates from each lender. The Good Faith Estimate is a document intended to outline all of your purchasing costs, and thus is a good document to use when deciding between your two favorite lenders. But it can often be quite difficult to make the comparison because costs can have so many different names on the GFE, and because there are non-lender fees included in these estimates. If you are deciding which lender to use based on closing costs, remember to subtract out all of these costs before you make the comparison:
I hope I haven't complicated things further --- just remember that you should not just look at the bottom line of the Good Faith Estimate when you are comparing lenders. | |
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Healthy, Comfortable, Cost-Effective EarthCraft Homes |
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 Have you heard of an EarthCraft home? EarthCraft Virginia provides a new construction certification process that serves as a blueprint for healthy, comfortable homes that reduces utility bills and protects the environment. More specifically, EarthCraft promotes diligent airsealing and energy efficiency. Airsealing of the building envelope and its mechanical systems, while still allowing for fresh air intake, provides a tighter building envelope at little additional cost. There is less communication of air and sound between units and better indoor air quality through the use of managed fresh-air intakes. Thus, projects are more energy efficient, less costly to occupy, and more durable overall. EarthCraft homes also make use of EnergyStar appliances. Here are several new subdivisions where you will find EarthCraft homes in and around Harrisonburg... Here are several homes currently being built to EarthCraft standards...
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Covenant Heights - affordable housing in Harrisonburg |
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Hope Community Builders is a non-profit organization in Harrisonburg who builds and sells high quality, affordable housing for those who otherwise may not be able to afford to buy a home.  As an example, someone who can only qualify for a $140,000 mortgage, may still be able to purchase one of these brand new duplexes or townhomes in Covenant Heights that are selling between $168,000 and $175,000. Here are some same financing scenarios from recent purchasers...  As you can see, there is a potential for $150 to $175 a month savings on mortgage costs. For more information about Covenant Heights, either...
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TakeThemAMeal.com -- an online tool for coordinating meals for loved ones |
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I keep a rather narrow real estate focus on this blog, but occasionally I break the mold...  About a year ago, acting upon the inspiration of Adina Bailey, I created a web site (TakeThemAMeal.com) for coordinating the delivery of meals to loved ones. In a nutshell --- If someone is ill, elderly, or has had a new baby, oftentimes family, friends, co-workers, church members rally around these families to take them meals. In the past, one person would coordinate (by phone) the scheduling of the meals. Now, the meal coordinator can use TakeThemAMeal.com to allow the meal deliverers to sign up for the day or days when they will deliver meals to the meal recipients. So...if there is someone you know who needs meals delivered to them, feel free to use this online tool to help coordinate that outreach. | |
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Scott Rogers
Funkhouser Real
Estate Group
540-578-0102
scott@funkhousergroup.com
Licensed in the
Commonwealth of Virginia
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