Buying

But Zillow says my house is worth…

July 18, 2011 by Sasha C. Farmer, REALTOR ® · Leave a Comment 

It is actually quite often that people I run into have been completely misguided about their home values.  With the incredible technology and information online about real estate and home searches, people often feel that real estate websites are getting to the point where they are extremely accurate and reliable.  In some large cities, evidently this is true.  In Charlottesville, there still seems to be a huge void between what these websites predict about our real estate values and local market, as compared to market reality.

Zillow and Trulia seem to be the two biggest offenders when it comes to this as they offer automated home valuations that people like to use to predict their home values from year to year.  Zillow’s Zestimates seem like they are based on enough data and information that they would at least be able to give you a reasonable range within which you could expect your home price to fall.  However, that does not often seem to be the case.

According to Zillow themselves, almost every market area in Central Virginia has an extremely low accuracy level- check out the charts below that they provide to set your expectations!

Their self-reported accuracy level is extremely low (almost all nearby counties are a 1 out of 4 star rating) and I can absolutely attest to that!

All that being said, please do not let automated estimates of value set your expectations about your own home or homes you may be interested in buying!  If you need pricing analysis and recommendations, please consult with a real estate professional- ideally me! – for guidance.

We are really outgrowing out current home, but…

July 18, 2011 by Sasha C. Farmer, REALTOR ® · Leave a Comment 

In the current market, there are many homeowners out there who would like to have a larger/nicer home but are patiently waiting for the market to improve. A frequently heard objection is that they can’t sell their home for what they think it should be worth, so they are trying to wait for the market to improve a bit and sell then.

Buying up in a down market is actually advantageous because while you might get less for the home you’re selling, you’re also getting the larger home for less. For instance, if you had to sell a $200,000 home for a 10% discount, you might feel that you left $20,000 on the table. However, buying a $300,000 for the same 10% discount would put you $10,000 ahead on the sale and purchase.

The other obvious matter is that when the mortgage rates increase while you’re waiting for the market to improve, it dramatically increases your cost of housing with higher payments. The cost of housing is affected by price and mortgage rates. Take a look at the image below for an example.

To accurately evaluate your current options, you need facts and assessment tools that will provide you the information to make an informed decision. Please contact me if this is something you have been recently debating!

Is Now a Good Time to Buy?

October 5, 2010 by Sasha C. Farmer, REALTOR ® · 2 Comments 

Time Magazine’s September 11 cover story attempts to make a strong case against homeownership in the article found here; but I have actually found my recent conversations with clients (current and pending) to present a story that is quite the opposite.

Are you still debating whether or not it is a “good time to buy”?  It is never a good time to buy for EVERYONE, but right now is a GREAT time to buy for many people, and I hope the naysayers aren’t swaying people away from making a decision that could very well be right for them.  If you have income/job consistency and plan to stay in the same location for 5+ years, this may be the best time to buy that we’ll see in this lifetime.  In Charlottesville, we have excellent selection, competitive prices, and we’re seeing the same low interest rates that all of these experts mention.

Here is an interesting article from Steve Harney, a real estate expert who has stayed abreast of the current real state market and seems to do a good job reporting on it fairly.

“If you don’t own a home, buy one. If you own one home, buy another one. And if you own two homes, buy a third and lend your relatives the money to buy one.”  – John Paulson 9/27/2010

WOW! That’s a powerful statement.

There is no question that John Paulson is a bull when it comes to residential real estate right now. Should we care what Mr. Paulson thinks? Should we listen to him? The answer to both questions is a resounding ‘YES’. Here are several reasons why.

Who is John Paulson?

Paulson is the person who made a fortune betting that the subprime mortgage mess would cause the the real estate market to collapse. He understands how the housing market works and knows when to buy and when to sell. What do others think of Paulson?

According to Forbes John Paulson is:

a multibillionaire hedge fund operator and the investment genius who made a killing going short subprime mortgages a few years ago.

According to the Wall Street Journal Paulson is:

a hedge fund tycoon who made his name, and a fortune, betting against subprime mortgages when no one else even knew what they were.

What did other financial players think of his statement?

The Wall Street Journal agrees with Paulson:

Ignore the critics. The odds have to be on his side…It isn’t just that home prices have fallen a long way. It’s also that, if you can get a mortgage, you are basically taking a reverse bet on the bond market. You could be a long-term borrower at fixed rates, instead of a long-term lender. Right now you can borrow for 30 years at around 4.3%. After the mortgage tax deduction, for some people the net effective interest rate is nearer to 3%. That’s going to prove an awesome deal if we see inflation again.

And Forbes said:

As this is the best time in 50 years to buy homes, Paulson advised his listeners to take 30 year mortgages to buy a home as “your debt and interest payments get locked in at record lows, while the price of your home will rise.”

Are others also saying now is the time to buy?

Just last week, we posted that there is a growing number of people saying that NOW is the time to buy, including:

• The Wall Street Journal
• Professor Karl Case, founder of the Case Shiller House Pricing Index
• The wealthiest families in the country and
• 70% of everyone else in America

Bottom Line

Thinking of buying a home? Are you taking advice from a friend or family member telling you that now is not the time? It may be time to listen to people who better understand the opportunities that exist in real estate today.

via If HE Says It Is Time To Buy a Home, BUY A HOME!.

I hope that if you’re considering purchasing a home, you will give me a call or shoot me an email to discuss your options and take a look at whether or not buying a new home in Charlottesville might be the right decision for you!

5221 Quality Row, North Garden, VA – $229,900

July 7, 2010 by Sasha C. Farmer, REALTOR ® · Leave a Comment 

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