Melissa Loughridge Savenko

I suck at math, which is why I went to law school rather than business school, a decision I still periodically regret. So I am eternally grateful to Charles Dailey for posting this link to HIS post on one of my comment pages. It QUANTIFIES the cost of waiting to purchase a $125,000-$250,000 home, assuming that the buyer (i) misses the tax credit window; and (ii) the interest rate on the mortgage increases 1/2 point, such as to 5.5% from 5.0%.

Ouch. I knew it wasn't a small number, but $13,928.74 to $19,857.47 is a lot of money. Like, buying-a-car-kinda money. And this just assumes a 1/2 point interest rate increase. If the interest rate increased more than that, we'd be getting into high-performance-German-car-kinda money.

So don't miss the chance because you think you have plenty of time. No time like the present, folks.

On November 6, 2009, the Department of Housing and Urban Development issued new guidance relaxing the financing requirements for condominiums. For condominium developers, listing agents for condominium projects, and condominium buyers, this is GREAT news. Basically, an individual buyer may now get FHA financing in a project that qualifies. What's so great about FHA financing? It allows the least amount of money down (3.5%), has lower credit score requirements, and allows a "non-owner occupant co-borrower," which is fancy HUD-speak for a cosigner on the loan.

So what does this mean practically? Someone starting out could buy a $200,000 property with $7,000 down (3.5% of the purchase price), a 620 credit score, and mom and dad co-signing on the loan. This someone would need to come up with another $7,000 or so dollars in closing costs, but most sellers in this market are willing to contribute at least some of the closing costs to get a deal done. So let's assume the closing costs were covered. Then, the buyer could amend his or her 2008 taxes to claim the 2009 First Time Home Buyer Tax Credit of $8,000, and could essentially end up getting PAID $1,000 to buy a condominium. If your monthly payment is the same or similar to your rent, why wouldn't you do this?

Sounds like a pretty good deal to me. And I've got some GREAT condos to sell, the Windsor Court Condominiums, in the heart of the Historic Fan District, located at 1608-1614 Grove Avenue. You can't buy a house in the Fan for $200,000 - an entry-level house is going to cost you about $300,000 minimum and will require work. I've got units priced from $194,900-$239,900 that have all new kitchens, granite, stainless steel appliances, refinished hardwood floors, the works. AND there is dedicated parking. There is even the option of a garage at no additional charge, available on a "first come, first served" basis.

Here's the website - www.windsorcourtcondominiums.com - check it out. There is a virtual tour on the website, for even more eye candy. If you see anything you like, give me a call at 804-986-3993, or drop me a line at melissasavenko@gmail.com. I'd be happy to show you around.

This is an interesting article on the value of social networking sites like Facebook, Twitter, etc. in developing and building a stronger real estate business. Here's the author's, Mike Parker's, opinion:

Social media is a sinkhole that absorbs time, effort, and money that could be better spent on finding listings and selling houses. Social media is the new blogging. It too will peak, then decline, with one very large exception: affinity group business communication.

Mr. Parker says a strong Internet presence is necessary to attract buyers and sellers. I absolutely agree. According to the National Association of Realtors' ("NAR") Profile of Home Buyers and Sellers (2008), 87% of ALL home buyers, and 94% of home buyers between 25-44, used the Internet to search for their home.

But why don't Facebook, Twitter, blogging, or any of these other social media tools that Mr. Parker seems to disdain count towards developing and maintaining that "strong Internet presence?" Social networking is great for keeping up with family, friends, clients, and colleagues. Again according to NAR, 43% of home buyers, and 38% of home sellers, found their real estate agent through a referral from a friend or family member. In the case of home sellers, another 26% used an agent they had previously worked with to buy or sell their home. Facebook and Twitter are great ways to stay in touch with your family, friends, and past clients - your best referral sources. And in my personal opinion, blogging is a tool to (hopefully) demonstrate the depth of your knowledge and expertise as a real estate agent.

So, I'm not sure why Mr. Parker is so down on social media and blogging. Aren't these platforms additional tools to establish the strong Internet presence he advocates?

I really don't know what happens and how. All of a sudden, days and days, sometimes weeks, pass and I'm behind the eight ball on the blogging front. I just looked and my last post was August 26, 2009. The thing I find most frustrating is that there are typically lots of things I WANT to address and write about - either national trends, local current events, real estate tips and tricks, etc. But there aren't enough hours in the day to get it all done. Or at least there aren't enough hours in MY day.

I will freely admit to being (i) more than a bit ADD; and (ii) someone who requires 8+ hours of sleep. All of that means I may not be as efficient with my time as others are. And OK, I don't have as much awake time as others do. There are times where I really wish I was one of those people who seems just fine with 6 or so hours of sleep. Think of all that I could accomplish!

However, the sleeping in to 8:00, 9:00 a.m. is O-V-E-R, now that the Munchkin has to be at school at 7:45 a.m. AND school is no longer four blocks away, so no jumping in the car at 9:02 a.m., screeching the 4 blocks at high speeds with rolling stops, to make it before the 9:05 a.m. bell. So maybe this new schedule means I'll gain 2+ hours of sentient, possibly productive time.

In any event, I want to get back to the blogging, but I have much to do today. So, I thought I'd take a few moments to throw out my stream-of-consciousness list of the topics I'd like to cover over the next few weeks. I hope this doesn't bore you readers to tears.

• The Return of the VCU Students - Lessons Learned Living in the Fan
• Related Topic: Biking Etiquette in the Fan
• Richmond's Commercial Real Estate Woes and Their Effect on the Local Economy
• Dual Agency AGAIN - A National Battle and One Man's Quest for Justice
• Upcoming Events in Richmond: The Friends of Art Beer, BBQ & Bluegrass Event, Science Museum's Kugel Ball, Maymont Wine Auction, Richmond Folk Festival
• Impact of the First Time Home Buyer Tax Credit
• Overview of Housing Sales in Richmond, YTD 2009
• A Year Since the Crash - A Look Back
• The Credit Markets and Issues with Financing

This is just my stream-of-consciousness list. As always, if anyone has a topic they'd like me to cover, send it my way. And Happy Tuesday, rainy and dreary as it is. At least it's only a four day work week!

I feel a teensy bit validated, now that USA Today is featuring an article on the two reasons to buy a home NOW - the historically low interest rates AND the first time home buyer tax credit. Of course, this "buy a home NOW!" advice only applies to people who have stable jobs, consistent income, some money to put down, and were planning to buy a home in the foreseeable future anyway.

As always, if you need an agent in Richmond, Virginia, I am happy to help with the home buying process. Otherwise, best of luck in your hunt for the perfect home!