Betty Hesaltine

The economy doldrums have made all of us a bit skittish when it comes to spending money. But in the long run we want our money to work for us so we can have more for our retirement years. One of the best ways to do this is purchasing a second home, and renting it out.

I have said this before but want to strongly suggest the following: If you are considering purchasing a vacation home in the next two years, DO SO NOW! There is a great article written in today's Real Estate News called " For Your Clients, 6 Reasons Why It Is Smart to Buy a Vacation Home".

As an owner of several vacation homes I can state having rental homes has been a great experience. Several years ago we looked at purchasing a home that we, as a family, could use on weekends and during the summer months. As a big fishing, and water sports family our natural inclination was to look towards the water. We spent weeks looking at homes up and down the Chesapeake Bay, and along almost all of its tributaries. Doing so taught us the need for existing boathouses (many are grandfathered in and could not be built today), deep water, and riprap. But, in learning what to look for we also talked with others about how frequently they used their second homes. Almost everyone answered something like , "well, we hoped to use it more than we actually are able to". On average people use second homes 12 weekends a year.

That got us thinking. How many weekends could we actually get away to enjoy this house? And would it really just create another level of stress instead of enjoyment (gotta go cut the grass, gotta go check the boat, gotta go see if there is any damage from the storms) in an already chaotic life filled with family, work, and demands. For us, we decided it would create more headaches than joy. So we opted for a second choice - buying beach properties where there were existing property management companies that could manage, rent, and maintain the houses for us. It was an excellent decision.

We purchased our first home in February of 2004. It needed lots of painting, and updating, but the "bones" were amazing. After months of work, we got it on the rental market. I have to admit one of the hardest things was to get in the car to leave. After pouring our time, money, sweat, and love into getting it "just right " horrible thoughts came to mind "would people knock out walls? would my pots and pans be there when I returned? Would people love our home as much as we did? " When we came back a month later, the house was in great condition. And the comments book requesting guests to leave their thoughts about the house, and asking for what we could do to make it better was filled with notes from people who loved our house and great thoughts on improvements!

In 2007 we bought our second vacation home. It too is rented out. We had learned things from the first one that we copied, and changed some from the first. And when we left after getting that home prepared it was with the knowledge that we would return to a home where others had a great time. The best thing is we are able to use our houses but rents have paid for the mortgage, and maintenance. There are many homeowners in Sandbridge that live in their homes in the "off months - September thru May" and rent them out for the 12 summer weeks. Those weeks pay for the house for rest of the year. A great retirement possibility is living in the beach house during winter, and having the ski chalet in Wintergreen where you live in the summer.

Renting out your house is not for everyone, and before I tried it I did not like the idea at all! But now that we "bit the bullet" I see renting as a great way for others to help you build your investment. Similar to an employer putting money into your 401K , renters give you the money for your mortgage payments. And with each mortgage payment you are adding to the principle in your home. Don't wait if you are thinking of buying. There are amazing houses available, at fantastic prices! I will be happy to help you find a great rental home to purchase anywhere in Virginia!

Yesterday I went to my first breakfast meeting of Henrico Business Leaders. The speaker was Jon Mathiason whose topic was "The Urgency of the Airport Traffic and its Impact on the Economic Growth of Henrico County and its Neighbors".

I moved to Richmond 27 years ago when RIC (Richmond International Airport) was considered one of the most expensive airports to fly out of in the nation. Most of my neighbors would drive to Washington DC or other airports to get much cheaper flights. It was worth the time, drive, and effort for the savings in dollars. Flights were expensive because we did not have any low cost carriers offering flights from RIC.

Today we are fortunate to have Jet Blue, Air Tran, and Southwestern as alternative Low cost carriers (LCC) flying out of Richmond. They have brought air travel pricing down, and has helped increase the traffic into RIC. It has also helped bring corporations, conventions, reunions, and tourism to our area. With a great airport offering inexpensive flights we are a city with a future.

So what is the urgency that Mr. Mathiason was talking about? We have recently lost a flight to New York with Jet Blue because of lack of customers on their airline, and there is a threat other flights could be cut in the future. The regular carriers (Delta and United) have lowered their fares to be below the LCC's . Now that is fine, but if we only fly these carriers our LCC's will leave the airport and prices will increase due to the lack of competition. He suggested flying all of the carriers. If you travel to Atlanta for business use different airlines each time you travel. You may lose some of your frequent flyer miles, but Richmond will keep the competition, and lower fares.

As a Realtor I want to ask all of you to consider his request so we can keep Richmond a great place for people, and corporations to move to with inexensive fares being offered from our gorgeous airport.

Please visit my website to view properties for sale in Henrico County, Virginia.

Richmond, Va is a town filled with history. From gorgeous Church Hill, where Patrick Henry made his famous "Give my liberty or give me death! " speech to Hollywood Cemetery where many political dignitaries have been laid to rest, Richmond overflows with homage to the past. But, when it comes to selling houses following what has been done in the past is not necessarily the way to advertise and sell houses today.

First I changed my signs. No need for brochures with the information on the sign for all to see!

Each listing gets their own sign and dedicated webpage which is clearly printed on the bottom of the sign. Buyer's with phones that access the web, stop and enter the webpage. Photos and interactive floor plan , Virtual tours are all viewed while sitting out front!

Go to my website and contact me if you are thinking of buying or selling in the Richmond, Va area.

This is what is now becoming a common statement during a listing presentation. It can also be followed by:

• I paid this amount for this home and I won't accept less!!
• My friend, who watches houses all the time, looked up my home on Zillow* and they said it was worth much more than that!

*You can change that from Zillow to Trulia, or facebook, or any other social media sites out there

• I don't care what the market says, I won't sell for less than I think it is worth !!!
• I am waiting for the value of my house to go back to where it was before I sell.

Before you get angry with your Realtor, remember the price at which your house will sell is driven by what a buyer will pay. So here are some thoughts to consider :

1. Why are you selling in the first place? Do you have to move to a new location for a job, downsize so you have more time to pursue other interests, do you need more room? Ask yourself the following: Is selling at market value better for you, your family, your life?
2. Look at your monthly expenses. How much does it cost you to maintain your house? Figure out your monthly expense for your mortgage, insurance, real estate taxes, utilities, Homeowners association fees, lawn care, etc. The higher your house is priced over market value the longer it will be on the market. Can you afford to wait and continue to pay these expenses or is it better to sell by bringing the price in line with the market?

What can you do to get the most money possible for your home?

1. The appearance of your home makes a huge difference in whether a buyer wants to see the inside of your home. The exterior "curb appeal" is the first impression a buyer has of your home. Are you willing to put the time, energy, and expense that may be necessary to get your house sold for the best price possible?
2. Listen to what your Realtor tells you about the market. If your neighborhood has a lot of houses on the market that are similar to yours, you have to price it to be the best house at the best price.
3. Make sure you and your Realtor understand what type of buyer will be purchasing your home and target the marketing to future buyers. With over 90% of all buyers researching homes online your Realtor needs to have a major web presence with a dedicated page to showcase your home above and beyond the MLS listing.

Realtors do not control market values. We can only report what is currently happening in the market. The price of your home is determined by what other homes in your neighborhood have sold for, how many houses are on the market that are like yours, and how prepared is your home for the market. With that knowledge you have to decide if now is the right time to sell for you and your family.

Go to my website for information on how I help my clients sell their houses!

Here in Richmond, Virginia getting a contract on a home is the first thing a listing agent wants for their client! But,with the current market, many sellers are reluctant to allow purchase offers with a First Right of Refusal. I think this is "poppycock"! If a buyer must sell their house before they can purchase another this must be allowed to get current homeowners moving!

Buyers have more negotiating power if they have as few contingencies to place in a contract as possible. They understand the best possible scenario for them is to come to the negotiating table with a huge down payment, no house to sell, and prequalified loan commitment. But that is not feasible for everyone! If you have specific needs in a home, and have been waiting to find the right house before putting yours on the market, a First Right of Refusal is the only way to go! Homeowners are willing to pay a bit more for the knowledge that they will have the house they want when they sell their home. So let's look at this a bit more:

What is a First Right of Refusal?

A purchase offer with the First Right of Refusal allows the buyer the time to sell their home, knowing they have a house (we will call this the "desired home") to buy, when their home sells. If another purchase offer is received on the "desired" home , the buyer is given the opportunity to purchase the "desired" home without selling their home first. They are given a specified amount of time to make this decision (usually 24-48 hours), and can decide to release their contract or agree to purchase.

What makes this a great deal for a seller?

First, a seller should never limit the buyers who may want to purchase their home by stating " I am not accepting First Right of Refusals". You want as many people, qualified to purchase , to see your home as possible. After you receive an offer you can always reject it, but the key thing is get an offer!

Other reasons to accept a First Right of Refusal:

• It is like a lay away plan. You have a contract in place, but are able to actively market the house to others.
• Additional offers can be made on your property
• It may make buyers , hoping you would lower your price, realize others are interested helping them get motivated to buy your home!
• Although a First Right of Refusal contract must be disclosed in the MLS it should not stop other Realtor's from showing your home. Some buyer's agents may not show the house, but I don't think that is wise. All houses that meet a client's needs should be shown to a buyer.
• A First Right of Refusal gives a seller negotiating power. You should not accept as low of an offer as you would without a contingency.
• A First Right of Refusal is a bargaining chip when requesting a higher Earnest money deposit.

What happens if I get two offers with a First Right of Refusal?

If you have already accepted one offer, the second offer can be held as a back up offer. Even if that offer is higher than the first, the contingency of selling the house has to be eliminated before the First Right of Refusal clause is activated.

Why would you reject the offer with a First Right of Refusal?

• You don't like the asking price, or can't agree on a selling price after a counter offer.
• The buyer's home is not going to be priced to sell, or marketed in a way to sell as quickly as possible
• It is a seller's market and there are more buyer's than houses on the market.

What else should the seller be aware of?

• Will the future buyer actively sell their home and lower the price if necessary to draw people in?
• The Earnest Money Deposit should reflect the buyer's desire for the home. It should not be waived or delayed.
• What is the future buyer's home like? Where is it located? How long has it been on the market? Your Realtor should see the buyer's homes and see if they feel the properties will be priced and marketed aggressively.
• Minimize the hours for response time. But realize buyer's may need time (especially over a weekend) to contact their lenders for answers if another contract is presented.

Please visit my website at www.BettySellsHouses.com to search for homes on the market in Henrico, Richmond, and surrounding areas of Virginia.