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December 31, 2007

The View Behind Us

Microphone2007 - infamous in the New River Valley?  On Saturday's NRVLiving Real Estate Show, Steve and I discussed 2007 in the New River Valley, and talked with Blacksburg Mayor Ron Rhordam about what to expect in 2008.  We won't belabor the point - the New River Valley had some really crappy this year, but through it all we showed the WORLD why this is a great place to be. 

Download 122907_nrvliving_real_estate_show.m4b

Don't forget, you can always stream the show every Saturday morning at 10am by visiting 810AM WPIN and clicking "Tune It".

See you next week, Saturday from 10:00-10:30!   Have a great New Years, everyone!

Can You Ever Be Perfect?

By now, if you've even sniffed the NFL this year, you've likely heard that the New England Patriots have gone 16-0 in the regular season.  Perfect in every game, they've won sixteen straight times, have clinched home field advantage throughout the playoffs, and set record after record along the way.  Only four other NFL times have teams been undefeated - the Bears (in 1934 and 1942) and the Dolphins (in 1972). 

Perfection.  I started thinking over the weekend, what does it mean to be perfect in real estate?  For that matter, what does it mean to be perfect in any profession?  As an agent, does perfection mean that when my buyer client tells me their criteria, I know the PERFECT home for them right away?  Does it mean there are no hiccups in the transaction? 

An agent in Charlottesville, Daniel Rothamel, is also a basketball referee.  What's perfection to a basketball official?  I would surmise it's having the ability to call a game and really never be noticed ... the ability to fly under the radar.

What's perfection in other professions, I wonder

Surgeons?  Well, I'd suppose it's getting a patient off the table, ready to heal and better than ever.

Accountants?  Saving their clients every last penny when it comes to filing year-end taxes.

Teachers?  Seeing that troubled kid turn things around and shine.

Is perfection ever really possible?  What do you think? 

Really Getting Local

We talk about really getting local with real estate, and I came across this site through Google Alerts this morning (I'm still not quite sure how, but glad I found it nonetheless).  Hard to get much more local than a neighborhood ...

Check it out - LiqCity.com

Classic Photography That Stands The Test Of Time

We all have one of those photos that we just can't STAND to look at, but that our family - usually our parentals - won't let us throw away.  Embarrassing.

But hey - at least it's not out on the Web for all the world to see ... thanks to Andy Kaufman for this one. 

December 29, 2007

A Three Year Real Estate Market Study, 2005 - 2007

On today's NRVLiving Real Estate Show, I mentioned that I was going to post a recap of the real estate market comparing 2007 to 2006.  Now, that's a great idea if I do say so myself, but then I mentioned that I was going to post it later today.  And THEN I mentioned that I thought 2007 would prove to be better than 2006.

The problem was, I had things to do today, and NONE of them involved an analysis of the real estate market over a twenty-four month period.  But I got SO excited about the analysis that I decided to also include a comparison of 2005, as well - it's probably best to use three years as the testing period.  For the purposes of our comparison, we'll simply be looking at how the market of 2005 compared to 2006, and how that market compared to 2007, and focus SOLELY on residential real estate.  Real estate is local - it's not national, and it's not regional.  It's local.  News reports would have us believe that real estate is the worst thing to invest money in right now, and while it's certainly an investment that needs to be approached with due diligence, I hope we'll find it to be a sound choice for the New River Valley. 

20052007_market_comparison_3

What's the synopsis?  Well, my hunch was correct, the market in the New River Valley has continued to get stronger over the last three years.  While the average # of closings a month has gone down since 2005, the average list price and - more importantly -  the average sale price has gone UP in the same time period.  An average of 6% between 2005 and 2007! 

Does this surprise you, or about what you expected??






























December 28, 2007

Family Fights Foreclosure For 11 Years

Yesterday, I posted about a Blacksburg foreclosure that's recently been advertised.  Today, the Wall Street Journal posts a story about a family that has literally spent years fighting off foreclosure ...

For comparison, foreclosure proceedings typically take place between the four and fifth months of delinquency.  To think it all started over $4000 in late fees.  Wow.

Blacksburg's First Foreclosure Sale?

Driving through town this afternoon, I ran across this sign ...

Img_0449












First, the size of the sign was shocking, but then when I looked at it further I realized I had never seen one of Images these in town before ... at least, not since I started in real estate nearly five years ago.  Has the foreclosure wave finally hit Blacksburg?

I doubt it.

We've seen foreclosures in other areas of the New River Valley, and it's not necessarily an unusual occurrence.  Why won't this home sell?Img_0451

  • 4 bedrooms, 3 baths, 2304 square feet
  • built in 2000
  • hardwood and tile floors
  • gas fireplace
  • full walkout basement
  • Mountain views

I don't have the answer about why the home hasn't sold.  When it was listed, it was listed for $350000.  That's not a bad price, and I listed and sold the house directly across the street for $355000.  Seems like a good value, what's the problem?  But if you're interested in taking a look, let me know and we'll go together. 

December 27, 2007

Caption This ...

This week ... a Caption This video.  Hat tip to Athol Kay.

There you go - up for grabs, whatever we can find in the NRVLiving International Headquarters during our end of year Office Cleaning Party!

Blacksburg's Downtown Master Plan

Collegeave2 Over the Christmas Holiday, I came across the Downtown Master Plan for Blacksburg.  According to their website, "the plan develops a long-range vision for the future of Downtown Blacksburg as the heart of a vibrant community."

Fair enough, I'm all for it.  The Plan goes on to identify six major strategies considered important to the implementation of the Plan, including: An Authentic Town Center, A Specialty Shopping Destination, A Regional Cultural District, A Welcoming Place for Visitors, A Mixed-Use Neighborhood, and A Partnership for the Future.   

So how are they doing?  You can get the entire report here.

An Authentic Town Center - the downtown is the center of activity, and the gathering place.  Is downtown the first place you turn when you want to gather?

A Specialty Shopping Destination -       rather than having "the most distinctive collection of specialty retail shops and one-of-a-kind restaurants", Blacksburg currently boasts vacant storefronts, dilapidated and neglected buildings, and soaring costs for small business merchants - the very kind the Town is attempting to recruit.  Enough bars and sandwich shops.

A Regional Cultural District -       a performing arts district downtown?  Here's something to get behind, folks.  Arts benefit local communities, but don't just stop at the Virginia Tech Performing Arts Center or The Lyric!  How about support for local arts, including local bands, visiting painters, and places to see these talented folks at work!  It worked in Austin, and I'd be willing to bet the folks that live here would support it as well.  I've met some of the most cultured, intellectually-diverse people here in our small corner of the world, and I KNOW they're starving for something than a crowded dance club.

A Welcoming Place for Visitors - that Blacksburg could be a base camp for visitors to this region is entirely true ... but what do they do when they're here?

A Mixed-Use Neighborhood - urban renewal and development is a grand plan, but see Dmp "A Specialty Shopping Destination".  Residential-above-retail is a great idea, but if the best we can do is old apartments with faulty plumbing and wiring, that doesn't exactly spell revitalization.  And The Lofts At The Lyric?  Give me a break, look at these numbers ... the cheapest loft rents for $1095 a month and offers 584 square feet, while the largest loft boasts 956 square feet for only $2295 a month!  Affordable?  Not a chance!  We can do a better job of providing affordable, quality downtown living for our residents. 

A Partnership For The Future - We've done this ... 

What do you think?  I love this Town, and I love this area, but I'm of the mindset that there's so much more to be done.  How about you ... what are your thoughts?

The Paint Jam

I was skeptical of this when it was first sent to me, but after watching it in bits and pieces over the last couple of days it was pretty cool by the end.  I'd really recommend checking it out when you have the 5 minutes in total - wish I could remember who sent it to me, but hat tip to them!

December 21, 2007

Interested In College Student Rentals? Look At This Comparison ...

Yesterday, Scott Rogers in Harrisonburg posted an explanation of why investing in college student housing MIGHT NOT be for everyone.  It's an excellent post, and I recommend you read it.  But that's not what this post is about.94789_1

Scott highlighted a complex called Hunters Ridge, which caters to college students.  I found that ironic ... Blacksburg has a Hunters Ridge, as well, which caters to college students.  And lo and behold, they look the same!  Must've been built by the same company, and I thought it would be an interesting comparison, to put two college communities in separate university towns against one another.  We'll look at cash flow as it's affected by purchase price, mortgage rates, and rental income, among other things.  Prices in Blacksburg's Hunters Ridge appear to be a bit higher than at Harrisonburg's Hunters Ridge, so we'll take that into consideration as of today, December 21 2007.  So let it begin ... The Battle of Hunters Ridge, 2007.

1470-J Seneca Drive, Blacksburg 1346-D Hunters Road, Harrisonburg
Price of $136450, 80% financed at 7.25%, self-managed  Price of $105000, 80% financed at 7.25%, self-managed
Rental Income + $750, going to $1000 in May 2008 Rental Income + $770
Mortgage (Principal & Interest) - $744 Mortgage (Principal & Interest) - $573
Condo Association Fee - $145 Condo Association Fee - $155
Real Estate Taxes - $80 Real Estate Taxes - $45
Insurance - $28.50 Insurance - $35
Monthly Profit - $247.50 loss until May 2008 Monthly Profit - $38 loss

If you decided to put down only 10% and hire a Property Manager, your numbers would look like this:

1470-J Seneca Drive, Blacksburg       1346-D Hunters Road, Harrisonburg      
Price of $136450, 90% financed at 7.25%, property mgr
Price of $105000, 90% financed at 7.25%, property mgr 
Rental Income + $750, going to $1000 in May 2008 Rental Income + $770
Mortgage (Principal & Interest) - $837 Mortgage (Principal & Interest) - $645
Condo Association Fee - $145 Condo Association Fee - $155
Real Estate Taxes - $80 Real Estate Taxes - $45
Insurance - $28.50 Insurance - $35
Property Management - $75, going to $100 in May 2008 Property Management - $77
Monthly Profit - $415.50 loss until May 2008 Monthly Profit - $225 loss

Scott muses, "with these monthly losses, you might wonder why someone would buy an investment property." Keep in mind, at least with the Blacksburg property, after May 2008 you'd MAKE $2.50 a month if you managed the property yourself, and lose $190.50 a month if you let a Property Manager take over.  So ... why does investing in college towns make sense??

Caption This ...

"Caption This" is back ... Congratulations to DJ who captioned the Imus photo by saying "Trick or Treat"!  Really ... Imus ... who does your makeup?  DJ, email me when you get the chance about picking up the certificate.

This week's photo was sent to me by a friend and former neighbor.  The explanation was that the workers shown here were installing concrete poles, and she wondered how long it would take them to figure out where they parked their van.

So they're you have it ... I look forward to seeing those responses.  Up for grabs this week?  Some NRVLiving Gear from the store! 

Att125011_2





December 20, 2007

Brilliant

Sometime, I'm left shaking my head at this guy.

This is Daniel Rothamel, the Real Estate Zebra.  Truly taking real estate and simplifying it, with an easy to understand message.  Just brilliant.

Building Blocks From Down Under

A recent article in The Roanoke Times by Sarah Cox highlights one of the NRVLiving Real Estate Group's unique listings, a home in Floyd that truly practices the GREEN theme.  We've written about Auz-Bloc before, and mentioned it on the show, but here's a good article on the product in application.  Because The Roanoke Times search engine sucks, however, there's apparently no link to it.  So we've reprinted the entire article here ... breaks, emphases, hyperlinks and spelling mistakes are entirely ours!
________________________________________________________________________________________________________
C_2 While on the surface a house made of composite waste materials may not be drawing crowds of buyers, Bill McGuire, Auz-Bloc franchisee for the United States, believes otherwise.  After all, Auz-Bloc is said not only to leave a very small carbon footprint, but gives back in energy efficiency all day - and night - long.  Auz-Bloc, less expensive than conventional building materials, is a poured mixture of recyclables that is put in a mold and sun-dried to resemble cinder-block.  Peter Collier of Australia, who invented the product, began experimenting with this idea more than 14 years ago, coming up with a formula that blended cellulose, cement, sand and binders, and other materials.

However, points out Eco-REALTOR Aaron Doyle of the NRVLiving Real Estate Group (Coldwell Banker Townside), the intention is to make a composite of waste products from whatever is used locally.  So, in McGuire's case, much of the material is sawdust.  In other areas, Doyle pointed out, it could be eucalyptus or bamboo.

McGuire set about building a home in Floyd, where his business is based, to demonstrate the energy efficiency and cost effectiveness of this building material.  Doyle said it is structurally strong, denser than cinderblock, fire and termite resistant, and can be used not only for the framing of the house, but for the interior walls, as well.  "Because of its mass, in the winter it will absorb heat from the sun and continue to release heat into the house during the night," she explained.

McGuire found that his 2300 square foot, three-level house now has a utility bill of $100-120 per month.  He charged his son, for whom he built the home, full price for the manufacture of it - no discount - and the house averaged out to cost just under $90/square foot.  In South Carolina, McGuire built a 1500-square foot home whose utility bill has not gone higher than $63 per month - even during the summer months.

"The fire rating is also very important," pointed out Jeremy Hart, Doyle's partner.  "When they tested the [Auz-Bloc] they built a wall and created a 1100-degree Celsius fire on one side.  On the other side of the wall, it got to 64 degrees Celsius after four hours."

Billy Weitzenfeld, executive director of the Association of Energy Conservation Professionals based in Floyd, had a portion of the association's office built of Auz-Bloc.  A local church also is using it.  But, acknowledged McGuire, it will take some time to get the word out about this product.  In Australia, there 10 Auz-Bloc factories; extensive testing has been done on the product, but the United States will only recognize testing conducted in this country, according to McGuire.
Dsc04958
Hart said this building material goes up quicker than traditional materials.  There is no transportation cost associated with bringing it in, so there is less overhead because of fuel.  "They make each block through a mold and run the plumbing and electrical at the same time they are putting up the walls, so it's cheaper to put up," he said.  He pointed out that a combination of a timber frame and Auz-Bloc can also be designed.  "The other thing is that when you're building a regular stick-built home, you have wood framing, a layer of drywall, insulation, and then all of this is wrapped in layers.  You have all these layers, but with Auz-Bloc, you just lay the block and it can be the interior and exterior wall," said Doyle.

Auz-Bloc, or Timbercrete as it is called in Australia, is patented or patent-pending in 27 countries.  A recent Home Energy Rating System (HERS) test, which is an independent audit, was conducted on the house in Floyd.

According to Energy Star, "The HERS Index is a scoring system established by the Residential Energy Services Network (RESNET) in which a home built to the specifications of the HERS Reference Home (based on the 2006 International Energy Conservation Code) scores a HERS Index of 100, while a net zero energy home scores a HERS Index of 0.  The lower a home's HERS Index, the more energy efficient it is in comparison to the HERS Reference Home.  Each one point decrease in the HERS Index corresponds to a one percent reduction in energy consumption compared to the HERS Reference Home.  Thus a home with a HERS Index of 85 is 15 percent more energy efficient than the HERS Reference Home and a home with a HERS Index of 80 is 20 percent more energy efficient.

The home in Floyd scored 81 and on a scale of one to five Energy stars, received five stars.
________________________________________________________________________________________________________

We're proud to be associated with a home like this.  For more information about Auz-Bloc, you can download the file "Why Choose Timbercrete", or contact Jeremy for a private appointment to see the home in action.

Download why_choose_timbercrete.pdf

December 18, 2007

NRVLiving's Softhearted Today

Snowboardcrash_150 I've been riding the slopes the last few days but when I finally unbuckled my snowboard and settled on solid ground, I discovered two interesting things. 

First, in my inbox, a video from Random1TV ... I loved this show when it was on TV, and wish they had never canceled it.  Talk about the ultimate "Do Unto Others" story, it's a shame stuff like this gets taken off the tube and some of the other trash gets such heavy promotion.  But I digress ...

I really think the Random1 show was one of the best I've ever seen, make sure to check out some of their other videos.  So worth the time. The second was in my Twitter account - I don't remember who posted the link, but check out www.freerice.com.  It's an opportunity to test your vocabulary AND donate food through the United Nations.  Trust me ... it's more interesting than I was able to make it sound.

December 13, 2007

My 30-Day Challenge

I've been challenged.  I love a challenge.  I love CONQUERING a challenge!  But suddenly, this new one seems really daunting, for some reason.

Yesterday, an agent in San Fransisco put out a video post to a bunch of folks on Twitter.  His post was a 30-day challenge to himself to do a blog post a day on his blog, MyEastBayAgent.com.  Andy's on top of technology and social media so that shouldn't be a problem for him.  But then he took it a step further - he asked US what OUR challenge was.  Something about that kicked me in the butt a little bit, and reminded me that I've got things I could be working on as well.

So I took his challenge.  Early in my real estate career I did something religiously, every day, and it positively affected my business.  As I got busier and busier, I did less and less of it until one day ... I just stopped.  Haven't done it again in years, but that's going to change.  Tomorrow, Friday December 14, I'm a new man!  What's my challenge?  I'm going to start writing handwritten notes to people, every day.  In this era of email and Skype and Insert New Idea Here, sometimes it's nice to just get something in the mail that doesn't have an invoice attached to it.

I'm taking the challenge, and I'm going to whip up on it.   For the next 30 days, I'll be doing one thing, the same thing, until it becomes a habit again.  And it's going to feel good to tell Andy "I did it".  Why am I making it public?  Because if I know I put it out on the Web for everyone to see, I'm more likely to go do it.  *GULP*

What's your challenge?  Will you take the challenge with us?  Care to share?

December 12, 2007

oobgolf.com In Second Place

Logo_top Remember this post from yesterday?  Well, I was just on IM with one of the founders of oobgolf.com, Andrew Brown, who told me that oobgolf.com is in SECOND PLACE in the contest!  That's awesome, but not good enough. 

First place receives a $50,000 small business grant from Intuit, the folks who made Quicken.  If you've ever played golf, heard of Tiger Woods or balanced a checkbook, then you need to vote TODAY!!  Watch the video on the right-side of this blog, click the stars and vote!  Then check out oobgolf.com.

College Coaching - A Less Honorable Profession Than Real Estate?

I'd say that I'm an above average sports fan ... I don't have many teams I follow,Url but I like a variety of sports and really get into the story lines behind the games, more than anything.  I really respect competition and the idea of putting it all on the line, as much of a cliche as that might be.  But there's one thing in sports that really disappoints me in today's athletics, and we just saw it play out yesterday when Bobby Petrino announced he was leaving the Atlanta Falcons for the Arkansas Razorbacks.

Petrino announced yesterday that he was resigning from his current position to be the head football coach for the Arkansas Razorbacks.  It happens every year, coaches come and go, but Petrino had coached the Falcons for 13 games ... and he had a record of 3-10.  He probably wasn't happy about that result.  Admittedly, the Falcons have had a rough season (heard of some guy named Vick?), but he's leaving in the middle of the season.  He quit.  And every year, in all different sports, we see the same thing.  In Petrino's case, it's the THIRD long-term contract he's signed in 18 months - he left Louisville to go to Atlanta in January of this year, and 12 months later he's leaving Atlanta to go to Arkansas.  With no penalty!  Think this took people by surprise?  Just after Monday's game against the Saints, one of the Falcon's players was PRAISING Petrino for his ability to overcome the adversity the team had gone through this year.

I'm going to relate this to real estate, I promise. 

Form When you look at customer service ratings, real estate agents rate low ... very low.  That's disappointing to me, for a number of reasons, but namely because I know lots of agents who are nothing but the most ethical, conscientious professionals I've ever met.  They say that your reputation is the most valuable thing you have - it takes the longest to create a strong, solid reputation and yet it can be ruined very, very quickly.  When I take a listing with a client, I sign an Agreement that I'm going to work for them, for a specified period of time and for a specified price.  It's very important that I perform the duties of my obligations to that client to the absolute best of my ability - there are a myriad of reasons I should do what I say, not the least of which is that I've made a commitment to perform, and I intend to do everything I can to sell the home and improve the reputation of my profession.

Imagine for a moment the following scenario ... I call up Mr. and Mrs. Seller after a few weeks of marketing their home and I say "I'm sorry I haven't sold your home yet, I'm going to resign from the Listing Agreement andSorryheader_2 list the Jones' house down the street.  It's been a real pleasure - all the best to you and your family.  Sorry!"  Think that would go a long way to increasing the reputation of real estate agents in the New River Valley?  Think Mr. and Mrs. Seller would wish me well?    Unlikely.  Think they'd recommend me for another job?   Not a snowball's chance.

Every year, coaches across the country renege on their contracts and agreements and move on to other opportunities.  They don't follow through on the promises they've made, and they bolt.   It's particularly sad to see in college when you have college athletes who were recruited by that coach, they're locked into what's essentially a contract with the school yet the coach has no loyalty and leaves at a moment's notice.  That's not fair to the athletes, it's not fair to the school, and it's hypocritical.  Shameful.

I doubt seriously we'll see any changes happening in that industry anytime soon, but I sure hope REALTORs will honor their own Agreements.  As I type this, three guys at the table next to me are discussing it and they have not made a single positive comment about the Petrino situation.  "Guess these contracts don't mean anything" was just overheard.  Maybe we should reevaluate those surveys and make sure we've got coaches on there sometime soon.  What do you think?   

December 11, 2007

Help A Start-Up Company Get Off The Ground

This is a completely random post but it costs you nothing to read and respond.  A website I've mentioned in the past, oobgolf.com, has applied for a $50,000 small business start-up grant from Intuit.  If you're a golfer, you need to check out oobgolf.com.  It's a free site that allows you to track your game, your friends' game, all kinds of cool stuff.  I use it every time I play a round, anxiously await the computation of my handicap (which takes all of 5 seconds), and then swear I'll never play golf again after seeing the results.  But addiction is hard to cure.

Nevertheless, I'm pulling hard for these guys ... check out the link at Intuit and vote for them too.  Then set up your free account at oobgolf.com and let me know you've joined.  I'm username "volleyhart".

The Mortgage Freeze on Saturday's Radio Show - 12/8/07

MicrophoneYou've heard about it for more than a week now ... President Bush's plan to freeze rates on certain types of mortgages.  Well, on last Saturday's show we spent a lot of time discussing it even more.  Needless to say, Steve and I weren't in total agreement about the plan - he feels as if it's a mortgage TEASE, and I think there are some benefits to be had.  I might feel a bit differently now, but you can check out the show by clicking on the link below:

Download 12807_nrvliving_real_estate_show.m4b

Don't forget, you can always stream the show every Saturday morning at 10am by visiting 810AM WPIN and clicking "Tune It".

See you next week, Saturday from 10:00-10:30! 

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