Sellers and buyers all seem to refer to tax assessments as a gage of a home's fair market value, thinking that the city has fairly and accurately evaluated each home to determine market value.

Cities levy real estate taxes to pay for city services such as: government ( public ) schools, police, fire and rescue services and the like. In Virginia Beach, we have over 500,000 households. Do we really think that the city is looking at each of these homes, taking into consideration the homes true condition, and any updates that the current owner has done? Well, we shouldn't expect this at all. Instead the city runs a program, looking at recent sales in each neighborhood, then runs an algorithm adjusting the homes value up or down. Here is the problem.

The cities system has to make assumptions, and you can see these in the tax records. Such as the condition of the property, which might be indicated as "fair" or "average for age", structure "wood frame", roof etc... The program then looks at homes with the same number of rooms, square footage, age and comes up with a number. Now what happens when the government tells the banks to make loans available to everyone who wants a loan? The banks come out with loans that offer 100%, 125%, interest only, no closing cost spurring on the great sellers market we had, raising sales prices daily resulting in a spike in home values. Like the stock market we like it, well sometimes, when we see our home values increase. But then the market takes a turn for the worst almost over night. Buyers stop buying, the market is flooded with new homes, and resale homes and no one is buying at the list price.

Now, the city has to reassess the property values, using of course the last calendar year's home sales. So, as homes sales almost come to a grinding halt, the city assessments increases! Now, to make matters even more interesting, as fewer and fewer homes sell and home owners begin to drop their prices in order to sell their homes, it takes longer for those new prices to affect the assessment. This has resulted high a slower reduction of tax assessments.

Wow! there are some great deals on homes to be had if you are looking to purchase a home in Virgina Beach, Chesapeake, Norfolk and the rest of the Hampton roads area. Let me ask you, as a home buyer, how would you like to purchase your next home at 20, 30 or even 40 percent below the fair market value? You can, as I am sure you know that banks are foreclosing on homes everyday. These foreclosed properties are your opportunity to get a great deal on your next home.

In Virginia Beach, there are almost 200 bank owned properties below 200,000 dollars. These banks would really like to sell these homes at or above what the original home owner borrowed. However, many of these homes need work and/or the bank approved loans over the homes current value and are willing to let them go for at a discount.

What you give up on these deals are repairs and inspections. The last such bank owned property I worked we were given 20 additional pages of disclosures! We were notified that the buyers would receive a limited warranty deed, that the property is being sold in AS-IS WHERE-IS condition so buyer beware! When purchasing a bank owned property it is important to do a very good title search, and to purchase title insurance!

Now, with that being said what do you stand as a home buyer stand to gain from purchasing a bank owned property? Lets assume that 2 story home with 3 rooms and 2.5 bathrooms is listed as REO/Bank Owned at $185,000 and fair market priced based on a good CMA is $210,000. When you visit the home you find that you need to paint, get new appliances, new carpet replace and repair doors, and walls etc. You figure that the repair costs will be $10,000. It is possible that the bank would take much less than the original list price, say maybe 160,000. Under this scenario you, as the savvy home buyer, would have $50,000 of equity after the work is complete!

Bank owned / REO and short sales are great oppertunities for terrific real estate purchases. Call me today and request a list of local REO or Short Sale homes.

Hampton roads real estate.

How many times have you seen homes with great looking green grass, vibrant colored flowers and wanted the same look? You know that the grass needs to be watered sometimes 2 times per day in the height of the summer sun, but an in ground automatic sprinkler system can run 1200 dollars or more.

I too wanted a greener lawn and healthier looking flowers, so after receiving a couple of quotes for an in-ground sprinkler system that was going run me over $1200, tear up my lawn I ran across an automatic sprinkler system that hooks up to any facet outside the house and is fully programmable. The particular unit that I picked up cost under $50 and came with 2 valves, I purchased a 3rd valve for $15, hooked up 3 hoses and on each hose attached two sprinkler heads. The unit goes off twice every day for 15 per hose. My grass is green and my flowers are doing so well that the dang rabbits are eating them. Home Depot sells a couple of different systems.

Also, I almost forgot, you can attach the Miracle Grow system and fertilize the lawn.

My water bill did increase slightly however. Due to the fact I am using city water, and not well water unlike my neighbors my drive way is not turning brown. Had I drilled a well, it would take me almost 5 years to break even.

Pros to these systems:

- I can reposition the sprinkler heads.
- The lawnmower goes over the hoses easily
- Winterizing is easy, simply move the hoses into the garage
- Cost fare less than an in-ground unit
- Can be installed in less than 30minutes

Cons to these systems:

- You can see the hoses and sprinkler heads
- The run on batteries
- Low water pressure from the city 2 heads at most per hose.

I took my family out today to the Oceana Naval air show. This is when NAS Oceana opens the base to the general public for a weeked to show off the military might of the armed forces. Throughout the day there are planes performing amazing stunts both single planes and teams. They showed the Mustang, a bi-plane, several F-18's and of course the F-22. Both the F-18 and the F-22 are amazing!

We toured the many differant planes, Riverain patrol boats, and we played Tic-Tac-Toe with a diver
in a water tank! What a way to spend a day. Did I mention that the F-18 and F-22 are amazing planes?

I took several pics, I will add latter.

It really is no surprise that I am seeing more and more REO, Bank owned, repo'd homes for sale in the mls.... Many of these homes offer the savy home buyer alot of equity in exchange for a little elbow grease. For example, a buyer just picked up a great home for 140,000 it needed about $5,000 of work and new appliances, other homes on the same street, same style are selling for 180,000! After the deal was done, the rep told me that my buyers where the only buyers who put in an offer, and that they held out waiting for a better offer but eventually they had to sell! This is what is happening to folks. Banks have properties, in many cases alot of them and few are purchasing them, lets make the bank an offer !!

If you would like a list of the bank owned properties in Hampton roads ( Tidewater ) call me today and I'll be more than happy to get you a list.