Richmond, Virginia Real Estate - Melissa Savenko's Blog

First Time Home Buyers - The ACTUAL DOLLAR COST of Waiting to Buy

Melissa Loughridge Savenko (RE/MAX Commonwealth) — Fri, 13 Nov 2009 09:10:55 -0600

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.

New FHA Financing Rules for Condominiums - Thank Goodness!

Melissa Loughridge Savenko (RE/MAX Commonwealth) — Thu, 12 Nov 2009 09:53:56 -0600

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.

Building a Real Estate Business and "Social Media" - A Yes or No?

Melissa Loughridge Savenko (RE/MAX Commonwealth) — Thu, 12 Nov 2009 09:26:46 -0600

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?

Windsor Court Condominiums - Great Condos in the Heart of Richmond's Historic Fan District!

Melissa Loughridge Savenko (RE/MAX Commonwealth) — Mon, 14 Sep 2009 09:20:44 -0500

Well, it's that time again. Sunday morning, and I'm gearing up for the stand-by Sunday Open House. This Sunday - and every Sunday except holidays - I'm holding open the Windsor Court Condominiums, located smack-dab in the middle of the Historic Fan District. Here are some quick facts about the project:

The actual address is 1608-1614 Grove Avenue, in between Vine and Lombardy.
There are 24 total units located in three different buildings set back around a GORGEOUS central courtyard - two "wing" buildings, 1608 Grove and 1614 Grove, and the "main building at 1610 Grove.
Each unit has a minimum of 2 bedrooms, 1 bath. Twelve of the 24 units have an extra half bath.
There is one DEDICATED parking space per unit. For lots of people, this is a big deal.

[NOTE: Me, I've lived right around the corner on Allen for almost 10 years, and street parking has never bothered me. However, it seems like lots of people don't have that attitude, especially people new to the Fan. Maybe they really think City parking is a total nightmare. I dunno. In the 10+ years that I've been in my house, I've only had trouble parking on my street during Back-to-School Nights at Binford Middle School OR Halloween, which is a HUGE deal in the Fan, and basically a ginormous street party on Hanover Avenue between Allen and Robinson. For all the other great aspects of Fan living, I'll take a few evenings of parking inconvenience. But I digress....]

All the units have new ceramic tile baths, new kitchen cabinets, granite counters, stainless steel appliances, and refinished hardwood floors.
The condo fee is $194/month, and covers all the utilities EXCEPT electricity and any cable, phone, or Internet an owner would like to have.
There is a $98,000 tax abatement on each unit. That means each purchaser saves almost $1,200/year in real estate taxes, almost $100/month.
There is additional secured storage in the basement of each building, one storage closet for each unit.
The prices start at $194,900 and run up to $239,900, with most units in the $205,000-$215,000 range.

It's a great project, and I don't just say that because I'm listing it. I love the buildings, I love the courtyard, and I love, love, LOVE the location. It's just around the corner from Lombardy Market, Baliceaux (which I haven't tried, but which is getting rave reviews from the neighbors), Si, and Kuba Kuba. It's only 2 blocks from Main, with all the stores and restaurants there - Six Burner, Ecologic, Baja Bean Company, Trolley Market, Home Team Grill. AND it's just a short walk all the shops and restaurants at Harrison & Grace, and Broad Street - Chipotle, Panera Bread, Qdoba, Subway, Five Guys, Cold Stone, Smoothie King - you get the idea.

Can't beat it with a stick, in my humble opinion. For more information, check out our website at www.windsorcourtcondominiums.com. Agents, send your buyers. First time home buyers, stop by today between 1-4 and take a look for yourself. Everyone, there is parking in the rear, accessible from the alleys off either Lombardy or Vine.

Happy Sunday everybody!

Blogging Hiatus - Where Does the Time Go?

Melissa Loughridge Savenko (RE/MAX Commonwealth) — Mon, 14 Sep 2009 09:13:44 -0500

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!

Buying a Home NOW - Some Validation from USA Today

Melissa Loughridge Savenko (RE/MAX Commonwealth) — Mon, 14 Sep 2009 09:08:12 -0500

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!

Walkability = Higher Home Values

Melissa Loughridge Savenko (RE/MAX Commonwealth) — Mon, 14 Sep 2009 09:04:45 -0500

Here is a really interesting article from MSN Real Estate, reporting on a study that finds a higher "walkability" index translates into higher home values in 13 out of 15 metropolitan areas. The data supports what we real estate agent who represent certain City of Richmond neighborhoods have known, without being able to quantify - walkable urban neighborhoods are more and more desirable, and therefore more and more valuable.

The two exceptions to the rule: Bakersfield, California, which showed no correlation between walkability and higher property values, and Las Vegas, Nevada, which showed a NEGATIVE correlation between walkability and property values.

Really? Being within walking distance of all those casinos, strip clubs, and T-shirt stores doesn't increase property values? I'm shocked. Shocked, I say.

First Time Buyers - Some Gentle Encouragement and Some Possible Properties

Melissa Loughridge Savenko (RE/MAX Commonwealth) — Wed, 26 Aug 2009 12:51:59 -0500

Folks that follow my blog (hi Mom!) know that I have posted in the past about the first-time home buyer tax credit. The credit gives eligible individuals $8,000 in a bottom line CREDIT on your 2009 tax return. In fact, you can even amend the 2008 tax return to get that money sooner.

I've continued to hit this topic ad nauseaum because many people do not seem to know that the credit expires November 30, 2009. What that means is any eligible first-time home buyer must have CLOSED on the purchase of a home by November 30, 2009 in order to receive what is basically free money from the federal government.

Practically, what that means is you need to have a house under contract by no later than September 30, 2009, IMHO, to give yourself enough time to clear all contingencies, finalize financing, and close and record the Deed by November 30, 2009. That date is pretty fast approaching, so if you know you want to buy, but you've been putting it off, get out there and start looking NOW.

If you need some ideas, here are a few different listings of mine that might fit the bill [:)]:

SINGLE FAMILY HOMES:

1. 806 S. Meadow Street: In the Byrd Park/Maymont area,this 4 bedroom, 1.5 bath stucco and slate home has a superstar kitchen with new cabinets, ceramic tile floor, Zodiac quartz counters, and pass-through to the living room. There is a "man cave" basement with loads of potential, and a great yard and garage. MLS #2917551. Offered at $209,000.

2. 604 N. 30th Street: Located in Church Hill, this 3 bedroom, 2.5 bath home is BRAND NEW, with off-street parking, a full front porch, the open plan living area + kitchen that people want, and three spacious bedrooms upstairs. The master suite has a walk-in closet, a separate shower and jetted tub, and a double vanity with granite counter. MLS #2916489. Offered at $239,500.

CONDOMINIUMS:

3. Windsor Court Condominiums, 1608-1614 Grove Avenue: Located in the Historic Fan District, this 3 building, 24-unit Neoclassical complex has been COMPLETELY renovated, with new ceramic and granite kitchens with stainless steel appliances, new bathrooms, refinished hardwood floors, and dedicated off-street parking. Come see one of the most beautiful common areas in the Fan. Walk to restaurants, stores, parks, and VCU. Offered at $194,900-$234,900.

More to come shortly...

How Accurate Are Zillow's Zestimates?

Melissa Loughridge Savenko (RE/MAX Commonwealth) — Fri, 14 Aug 2009 11:05:57 -0500

It just so happens I wrote a bit yesterday about a Zillow poll that ranked Richmond, Virginia as the 7th best place in the United States to buy a home. And in that post, I alluded to the fact that I typically disdain Zillow data because I have found it to be ridiculously inaccurate in certain sub-markets, and especially with historic properties. Here's a blog post I wrote on the topic back in March 2009, "The Zillow Rant OR Why Zillow Zucks."

Well, d*mned if an e-mail from Zillow didn't turn up in my e-mail inbox today. The e-mail header is "How Accurate Are Zillow's Zestimates?" Then, within the e-mail there is a whole bunch of different information to dig through, including videos, website information, charts, etc.

I wish I could figure out how to attach the entire e-mail, but that's beyond my technological skill set. I'll settle right now for attaching a link to the web page within the Zillow site titled "Data Coverage and Zestimate Accuracy." I'm going to take a little time to play around with the information and see what I can see, but in light of yesterday's post, I wanted to share it sooner rather than later.

So, more on this will come later, but here's some basic information. If you click on "States and Counties," and then "Virginia" and then finally get to the specific data on the City of Richmond's Zestimate accuracy, what you find is only 61% of the Zestimates are within 20% of the ultimate sales price of properties. I think that's a pretty cruddy record. And this accuracy data includes those areas, such as subdivisions, where the Zestimate tends to be more accurate. In other words, I bet in certain City sub-markets, the Zestimate isn't even within 20% of the sales price anywhere NEAR 61% of the time.

But again, more on this topic later. Lord knows, websites like Zillow and Trulia are not going away anytime soon. So we're all going to have to learn to play nice together. As much as I'd like to take all my toys and go home.

Back to Real Life....And a Real Schedule...And a Better Market?

Melissa Loughridge Savenko (RE/MAX Commonwealth) — Fri, 14 Aug 2009 10:48:31 -0500

Man, it sure is hard coming back from vacation! I spent last week in picturesque Bath County at Nimrod Hall, one of my favorite places in the world. I was pretty much unplugged - limited phone, limited e-mail, limited computer access. I have to say, it was heaven.

BUT....I have to get back to real life, and jump back into work. At least until my rich uncle gets out of the poorhouse. Or I win the $139M lottery. Or I marry an heir to some little-known European principality. Sigh. A girl can dream, right?

While I was gone my business partner did some major heavy lifting and negotiated and ratified four - yes, FOUR - contracts for the Windsor Court Condominiums. Right before I left - oops! - we reduced the prices to the $195,000-$240,000 price range, for brand new units in the heart of the Fan with off-street dedicated parking, and BOOM! Four contracts. This tells me the market is picking up, particularly in the first time buyer price range, as the clock runs out on that $8,000 first time home buyer tax credit.

Maybe it's a sign. I mean, we don't want to break the streak. Maybe I should just STAY on vacation...

Richmond, Virginia is the 7th Best Place to Buy a Home in the USA!

Melissa Loughridge Savenko (RE/MAX Commonwealth) — Wed, 12 Aug 2009 13:43:16 -0500

Take THAT, all you naysayers and doom-and-gloomers! Zillow has ranked Richmond No. 7 in the NATION in "Best Places to Buy a Home." Now, I will admit I usually think Zillow super-sucks, but if I have to deal with all the negative stuff that comes with them - like oftentimes EXTREMELY inaccurate assessments of home values - I'm daggone well going to take the good stuff!

Here is a link to a "Good Morning America" piece that cited the Zillow data.

I am so thrilled. I'm really, really, REALLY tired of folks who constantly refer to the national or regional data, and talk about how awful the Richmond housing market is, based on that. Real estate is local, people. So all you potential buyers, ESPECIALLY you first-time-home buyers, get off the fence and buy a house!

Analysis of the Central Virginia Area Housing Market - Second Quarter 2009

Melissa Loughridge Savenko (RE/MAX Commonwealth) — Fri, 31 Jul 2009 13:08:26 -0500

Well, this report was released a few weeks ago, I thought I'd post it, it is still pretty interesting. I've included the ENTIRE 21-page report here, and the 2-page synopsis here. The report is prepared by George Mason University, and contains some interesting information, like:

Sales increased 63% between the 1Q and 2Q of 2009, a larger-than-average Spring "bump."
48% - almost HALF! - of the sales in the Richmond metropolitan region for 2Q 2009 were under $200,000, compared to 37% of sales in 2Q 2008.
Homes under $200,000 spent an average of 73 days on market ("DOM"), compared to 100 DOM for homes priced $400,000 or more.
In the Richmond Metropolitan area, sales were down 11% in 2Q 2009 compared to 2Q 2008, but that was the smallest sales decline in the past three quarters.

Most of the data seems to confirm what we real estate agents are seeing every day - the buyers out there are predominantly first-time home buyers, typically buying in the starter home price range. Other buyers are taking their time and being EXTREMELY picky.

I suspect the 14% price decline 2Q 2009 over 2Q 2008 can probably be attributed to the larger-than-average number of distressed sales - short sales and foreclosures. Right now, bargain hunters with cash can pick up amazing deals, particularly in the foreclosure arena. Short sales can also be a source of great deals, but often those transactions take longer and involve lots more paperwork and hassle. So know what you're doing - or work with a real estate agent that does - if you plan to buy a short sale property. Oh, and I'm always available to assist as a buyer's agent, familiar with both foreclosures and short sales. [:)]

Anyway, the sales data for residential real estate is showing signs of improvement. Unfortunately, people are still worried about their jobs, and being understandably cautious about making a major investment, like a new home. So I think we're going to have to wait it out and see if consumers start to have more confidence in the market, and get off the fence while inventory is high, and prices and interest rates are low.

Good luck to everyone out there in this really tough market. I prefer to be a "glass half full" girl and hope that these small signs mean things are looking up, and we've moved past the bottom, possibly in 2Q 2009. Fingers crossed that I'm right!

Tick Tock, Tick Tock...That's The Sound of the First Time Home Buyer Tax Credit Running Out....

Melissa Loughridge Savenko (RE/MAX Commonwealth) — Fri, 17 Jul 2009 09:01:46 -0500

I don't think lots of buyers know that the First Time Home Buyer Tax Credit EXPIRES November 30, 2009. If your purchase isn't closed by that date, you are out of luck, do not pass go, and certainly do not collect the $8,000 tax credit the federal government is handing out to savvy first time home buyers.

What does that mean? Well, let's work backwards on the time line and make a few assumptions:

The offer date is NOT the critical date. The ratification date, the date the contract is accepted, is the date from which all critical next steps are measured;
Initial offers, especially in this market, where buyers want to offer well below the list price, usually require negotiation, which can take one to four weeks;
After the offer is accepted, the transaction must typically "clear" some critical contingencies, including (i) financing; (ii) inspection; and (iii) appraisal. ANY ONE OR MORE OF THESE CONTINGENCIES MAY HAVE TO BE NEGOTIATED, WHICH WILL ADD ADDITIONAL TIME TO THE CLOSING TIME LINE;
The stupid Home Valuation Code of Conduct ("HVCC") will continue to wreak havoc with Fannie and Freddie insured loans;
Lots of first time buyers will be using FHA financing, because it requires only 3.5% of the purchase price as down payment and has more generous credit score requirements, meaning your credit can be less than stellar;
Other government loans that permit 100% financing, such as USDA and Veterans Administration ("VA") loans, will have even more onerous paperwork and "processing" requirements; and
Frankly, even conventional financing - 20% down or more - is taking longer because of the HVCC and because of loan officer workloads with both sales and refinances.

SO, I think the lesson is, thirty (30) days from contract to closing in this environment is EXTREMELY ambitious, in light of the factors above. I think even sixty (60) days may be ambitious. I would not want to be the buyer who closed December 1, 2009 and essentially gave away $8,000 dollars. So I advise first time home buyers to give themselves at least ninety (90) days to close a deal.

And guess what that means? If you buy my analysis, you need to be making an offer by August 30, 2009. That's six weeks away. That seems to come as a shocker to lots of people, who think they have all the time in the world.

Don't miss the boat. Buyers right now don't seem to have any sense of urgency, and I feel like for many it's because they do not understand this time line. I'd sure as heck be kicking myself if I missed out on $8,000 because I waited too long to move on a house that I knew I wanted to buy. Time IS running out. Good luck, and may the force be with you!

Richmond's Urban Neighborhoods and Crime Statistics - What Is the "Truth?"

Melissa Loughridge Savenko (RE/MAX Commonwealth) — Fri, 10 Jul 2009 16:37:54 -0500

I know the article naming Church Hill as the 10th Most Dangerous Neighborhood in the U.S. has caused an uproar, especially among people who live there and love it. And one commenter has noted that she feels much safer in her Church Hill neighborhood than she does in the Fan or Museum District. So it got me to thinking....

What is the truth about crime statistics in Richmond's urban neighborhoods? Is Church Hill safer than the Fan? Was the article naming Church Hill the 10th Most Dangerous Neighborhood in America unfair and based on inaccurate information?

NOTE: In the interest of full disclosure, I freely admit to being a total Fan groupie. I've lived here for more than 12 of the 15 years that I've been back in Richmond post-college and Big Easy, except for about 2.5 years near the University of Richmond while I was in law school. And I've been in my current house on a side street between Floyd and Grove since 1999. I'm a single mom with a young daughter and perhaps I'm naive, but I've never felt afraid in my home or my neighborhood. But this topic comes up a lot, and often from suburbanites concerned about the big, bad City. So I'm curious about the actual facts on City of Richmond neighborhood crime statistics.

Here's what you can do: You can go to the City of Richmond Police Department and search the crime statistics various ways - by census tracts, civic association, council district, neighborhood association, etc. Here is a link to the Crime Incident Information Center.

But here's what I see as a problem: I can't figure out a way to compare apples to apples, because I cannot find on the City of Richmond Police Department web site a break-out of Sector Crime reports, which would give a more accurate comparison of neighborhood vs. neighborhood. I think precinct crime reports are too broad. And using the neighborhood civic association category isn't really a good tool, because how do you define a specific neighborhood? For example, you have to figure out on the front end what you are calling "Church Hill." I realize it is probably not technically accurate, but when I refer to "Church Hill" I am including all of Church Hill, Union Hill, North Church Hill, and Chimborazo. The Fan doesn't pose the same problem, because it as a neighborhood is very specifically defined with very explicit boundaries, a result of the entire neighborhood being on the National Register of Historic Places.

So, back to the point raised by the commenter, who feels much safer in her Church Hill neighborhood than the Fan or Museum District - Is Church Hill safer than the Fan? I dunno. I can't find a way to compare Sector 313 (Fan, Randolph and Maymont) to Sector 111 (Union Hill, Oakwood, Fulton, Church Hill, Church Hill North, and Chimborazo), which I think would provide the fairest comparison.

BUT, If I run JUST Precinct One (including Church Hill) vs. Precinct Three (including the Fan) back for one full year exactly, to July 6, 2008, get the following:

Homicide: 5 vs. 1
Sex Offense: 22 vs. 29
Robbery: 55 vs. 57
Assault: 342 vs. 339
Burglary: 74 vs. 153
Vice: 366 vs. 217
Theft: 265 vs. 645
Vehicle Theft: 69 vs. 72
Other: 1697 vs. 1875

Interesting stuff. The homicide rate in Precinct One is five times greater than in Precinct Three, but the total number of homicides overall is (thankfully) relatively small, six total. There is a higher incidence of sex offenses in the area that includes the Fan, and you are more than twice as likely to be burgled. Incidences of robbery, assault, and vehicle theft are relatively equal across both Precincts The number of vice offenses - drugs, weapons, and prostitution, I suspect - is substantially higher in Precinct One, but the number is thefts is almost three times as great in Precinct Three. And I have no idea what the "Other" category entails, but there is more of it in the Fan than Church Hill.

I will admit I didn't scour the data and I didn't dissect the methodology for collecting the Richmond Police Department's crime statistics. But, Church Hill isn't looking so terribly dangerous to me, unless I'm missing something.

So dig through the data yourself, and draw your own conclusions. And as always, feel free to share your conclusions or your thoughts in a comment. I always publish them, unless I am specificall asked not to do so.

Church Hill - It's Scary Dangerous BUT a Great Place to Buy a House! - Irony Abounds

Melissa Loughridge Savenko (RE/MAX Commonwealth) — Fri, 10 Jul 2009 16:35:25 -0500

The magazine "This Old House" has named Church Hill one of the best nine "old house" neighborhoods in the South. [NOTE: I am a little perturbed that Baltimore, Maryland and Wheeling, West Virginia were included in "the South." Hello, basic geography and Mason-Dixon line?] I also have been to several of the other neighborhoods - Meridian, Mississippi, Newnan, Georgia, Durham, North Carolina, and the Lower Garden District, New Orleans (where I actually lived after college - LOVE the Big Easy!) - so I know what an honor it was to be in the company of these neighborhoods.

http://www.thisoldhouse.com/toh/photos/0,,20283025_20634574,00.html

However, within days of this release, another organization named Church Hill one of the Top 10 Most Dangerous Neighborhoods IN THE NATION. Here's that article.

http://www.walletpop.com/insurance/most-dangerous-neighborhoods?photo=17

The data came from some site called "neighborhoodscout," which looks a lot like Zillow or Trulia, but appears to be in only the beta testing stage.

So, which is it? Awesome place to live, or scary dangerous? I've never lived there, so I'm not taking a position on the issue. I am happy to hear from anyone who has an opinion. I just think that it's the absolute height of irony, these two articles being released so close together. For the sake of our City, let's just hope good news triumphs over bad. OR, if there is a crime problem that is going unaddressed, maybe this rating as 10th Most Dangerous Neighborhood in the Country will be an impetus for some dialogue on a possible solution and re-direction of some crime-fighting resources. Let's take lemons and make lemonade!

Is the Recession Slowing? Good News for Richmond, Virginia

Melissa Loughridge Savenko (RE/MAX Commonwealth) — Wed, 17 Jun 2009 10:54:57 -0500

Here are two articles which suggest that a slow, steady economic recovery may be in the not-too-distant future for Richmond. For the ultimate impact of the recession, one article puts Richmond in the middle of the Top 100 largest metropolitan areas in the United States. That means the recession has been milder here compared to about 50% of the other major metropolitan areas in the United States. For example, with respect to a decline in home prices year-over-year, the Greater Richmond Metropolitan area, which will include the surrounding counties, has seen only a 2.2% drop in 1Q 2009 compared to 1Q 2008. All in all, that's pretty small, especially compared to the figures for the LAST area on the list, Stockton, California, with a drop of 30.6% in home prices 1Q 2009 to 1Q 2008. OUCH.

The other article details a national increase in housing starts - new construction - and stabilization in wholesale prices. That data is good news, although any good news on the broader economy should be met with cautious optimism. One month's positive numbers do not necessarily a sustained recovery make.

But for those of us hoping and praying for a turnaround in the real estate markets specifically, and the overall economic markets generally, any little glimmer of hope is cause for celebration. Fingers crossed, keep it comin'.

The Death of Suburbia as We Know It?

Melissa Loughridge Savenko (RE/MAX Commonwealth) — Tue, 09 Jun 2009 23:05:29 -0500

Being in real estate, and because I work primarily in historic urban neighborhoods, I found this week's Style Weekly cover story especially fascinating. The title is "Neighbors In Waiting" and the subtitle is intentionally provocative - "The country's real estate meltdown hasn't just sparked a recession - it may have ended modern-day suburbia."

Now, let me say for the record that I am completely and totally one of those people who has drunk the Kool-Aid and doesn't understand why everyone doesn't want to live in a walkable, historic City neighborhood. And if I am ever consigned to the 9th ring of Hell, I'll be doomed to live in a subdivision on a cul-de-sac in a stick construction transitional in a planned community. BUT, I also recognize that some people would consider MY lifestyle and neighborhood to be the 9th ring of Hell. As my mother always says, "different strokes for different folks."

So let's start with the premise that we can all agree to disagree about what is "better," urban vs. suburban life. Any conclusion to that analysis is a morally and personally subjective one. What I found most fascinating about the article was the discussion of the possibility of a paradigm shift. Is it possible that large numbers of the population that we presume would have chosen a suburban lifestyle in the past now no longer will, because it is no longer what they want? In other words, would modern suburbia have "died" as a development model anyway, even without the market meltdowns? Has the modern suburban development model only be been rushed to a premature death by the crash of the real estate and financial markets?

I really don't know the answer. That's going to be for much smarter people than I to figure out. But what I DO know is my own experience. The demand for a historic, urban, architecturally significant neighborhood seems to be at least stable, if not increasing. One of the telling and interesting things I am seeing is this: As much as 50% of the "lookers" at Fan Open Houses are people who want to move into town from the surrounding counties. Lots of these are the empty nesters, the Baby Boomers, who no longer need to be in the suburbs for the public schools. They want to change their lifestyle. They're tired of the commute. The idea of a neighborhood coffee shop, art galleries, restaurants, museums, movies, and shops, all within walking distance, is very appealing.

We've always had the die-hard urbanites and the young professionals who want to be right in the thick of it, close to the bar and restaurant scene, and close to downtown. The VCU students, both undergraduate and graduate, are neighborhood staples as well. But here's what I've personally observed in the 15+ years that I've lived in the Fan:

Increasing numbers of families with young children, as the word spread about how great William Fox Elementary is; and
More and more empty nesters from other areas, be they suburban counties or outside of the market altogether.

What does that mean? Stable property values, for one thing. Even though property values have dropped to some extent, the demand for Fan real estate does not seem to be decreasing, and the supply is limited. No one can create more 19th century Victorian neighborhoods. The same thing seems to be true in Area 20 - from Windsor Farms through the Mary Munford area to Glenburnie and beyond. The same factors seem to be in play - architecture dating from the 1920s and 1930s, a great elementary school, walkable neighborhoods, convenient access to Downtown and points in all directions.

I also wonder if the Green movement, and increased environmental consciousness, is going to continue to drive this trend. I personally think so. I think my generation, and especially the generations coming behind me, are going to be more concerned about the natural environment and how their choices impact the world. I think there will be more personal commitment to the "Think Globally. Act Locally" philosophy. I think people will make different choices about transportation, and where they live, and what they eat.

But read the Style Weekly article for yourself. It's certainly thought-provoking. And that's a good thing.

First Time Home Buyers - Why Are You Waiting?

Melissa Loughridge Savenko (RE/MAX Commonwealth) — Mon, 18 May 2009 22:12:01 -0500

I am a little bit flummoxed. Right now, housing affordability is the best it's EVER been, since the National Association of Realtors has been tracking the statistics. Interest rates are at record lows, under 5% in many instances. The Federal Government is still making 3.5% down payments, under 5% interest rate financing available to buyers through its FHA program. AND there is a federal first time home buyer credit available of $8,000, which means eligible individuals or couples filing jointly will get an $8,000 credit on their 2009 tax return. That is essentially $8,000 in free money back from the government, just for doing what we're all told is the American dream, buying a first home.

So why aren't first time home buyers out there in droves? Or why aren't the ones that are out there BUYING, rather than just lolly-gagging around and looking?

I don't know the answer. I really AM flummoxed. I welcome any feedback from you fence-sitting buyers, or other real estate professionals. The only thing I can come up with: buyer psychology. That d*mn national media has been talking for so long about the sky falling, it's become a self-fulfilling prophecy.

My advice, if you are a first time home buyer that's been taking his or her or your collective sweet time: Get off the fence NOW. It's the Spring market. Inventory isn't going to get better. There is no guarantee the interest rates will stay at these record lows. And the $8,000 tax credit expires on December 1, 2009. That means you have to have closed on the sale by no later than November 30, 2009 to get that free $8,000 government handout. And trust me, the way loan officers are swamped right now, with refinancing and sales, don't think you can write an offer September 30 and be closed on time. Oh no. I think loan officer volumes are going to get even heavier as people realize time is running out, rush to get closed, and that December 1, 2009 deadline looms nearer.

Don't miss the boat and be kicking yourself December 2, If you're going to buy anyway, why not buy now?

Real Estate and Dual Agency Issues - AGAIN!

Melissa Loughridge Savenko (RE/MAX Commonwealth) — Mon, 27 Apr 2009 11:17:10 -0500

People who read my blog know how I feel about dual agency. To define it yet again, dual agency is when one single real estate agent represents both the buyer and the seller in a real estate transactions.

As a general rule, I think dual agency is a joke, it shouldn't be legal, and the statutes and rules should be changed to absolutely prohibit dual agency in any real estate transaction, residential or commercial. However, I appear to be in the clear minority in the real estate agent community, and the Virginia Association of Realtors ("VAR") is a pretty powerful lobby. So I suspect the laws and regulations permitting dual agency will remain, at least until there is some scandal and consumers wake up to this legally permissible, but ethically dubious, practice.

[ASIDE: Maybe if dual agency was prohibited, it would clean-up some of the more egregious behavior in the commercial real estate brokerage world also, which I think would be a great thing].

Here's an interesting article from Christopher Cruise at www.bankrate.com titled "Is 'Your' Agent Really Working for You?" [ASIDE: I love the fact that he uses the divorce lawyer example to illustrate why a buyer taking advice from the listing agent is such a bad idea. I used that same example too!].

[ASIDE: Actually, I just double-checked my earlier post, now linked, and my analogy for dual agency was using the same lawyer to represent both the plaintiff and defendant in a personal injury lawsuit, not divorce. I think I like the divorce analogy better].

I do disagree with Mr. Cruise's generally negative view of designated agency. Designated agency is when two agents from the same brokerage represent the buyer and the seller. To use RE/MAX Commonwealth as an example, there are multiple offices and agents that I have never met, never seen, never worked with. To say RE/MAX Agent A couldn't independently represent buyer, with RE/MAX Agent B representing seller, because they both happen to be RE/MAX agents - well, that's just silly, in my opinion. So long as designated agency is appropriately disclosed to both parties, and the agents observe carefully their fiduciary obligations to maintain the confidences of their own clients, I don't see why the fact that RE/MAX is the common broker should "bounce" one of the agents from representing their client.

So, read someone else's opinion, and form your own. And as always, if you are looking to buy or sell a home, I'd be honored to help you. And I promise NOT to represent both sides.

A Real Estate Career - Did I Make a Mistake?

Melissa Loughridge Savenko (RE/MAX Commonwealth) — Tue, 21 Apr 2009 09:49:03 -0500

I've been selling real estate full time now for over three years. Most of the time I absolutely love it. But days like today make me wonder if I made the right decision. Being a single mom on 100% commission, with no other source of income, in THIS market....well, it's a scary time.

So, what can one do? I don't ask that as a rhetorical question, I really am asking for any advice, or guidance, or words of wisdom, that anyone, Realtor or no, wants to offer.

Right now, I try to focus on the positive. Here are some of the most positive things about my career choice:

I get to spend more time with my daughter. She's 11. I can already see that 18 and college is going to be here in just a blink of the eye, and then she'll be gone. Right now, for probably a very little while longer, she'll still let me hug her and kiss her in public - although she is starting to do the "Oh, Mom!" with eye roll. Gosh, they grow up quick!
I get to combine several things I really enjoy - working with people, deal-making, looking at houses, exploring Richmond neighborhoods - and if I do it well, I make money doing it.
I have met some fabulous people.
I have had the opportunity to get involved with several organizations which have either enriched me, in education and interactions, or allowed me to feel like I am giving back to a cause I believe in.
I get to set my own schedule. For a natural night owl like me, that means I can sleep until 7:30 and lounge around in sweats with coffee and the morning paper until 9:00, without feeling guilty. And I can do a great deal of work at night, after my daughter goes to bed.

I know it's bad out there for most everyone. I see the sad story of people losing jobs, having to sell their houses, or even worse, losing them to foreclosure, first hand. I'm trying to be the Little Engine that Could, I really, really, REALLY am. But in this market, it's hard not to get demoralized or just d*mn scared to death.

So, should I tough it out? Or try to find a "real" job, with a salary and benefits?

Top 10 Mistakes First-Time Buyers Make

Melissa Loughridge Savenko (RE/MAX Commonwealth) — Thu, 16 Apr 2009 14:03:32 -0500

Once again, this is not something I wrote - d*mmit! - but I think the article is both well-written and timely. We're seeing lots of first-time home buyers getting into the market, based on a combination of (i) affordability; (ii) inventory; (iii) record-low interest rates, and still readily available federal money; and (iv) the $8,000 first-time home buyer tax credit. But as this article points out, there are plenty of pitfalls for the unwary.

So beware. There are great values out there, but know thyself. Don't buy a banged-up foreclosure unless you are very handy, or willing and able to manage contractors.

The Eggleston Hotel Collapse - Let the Finger-Pointing END!

Melissa Loughridge Savenko (RE/MAX Commonwealth) — Thu, 16 Apr 2009 13:58:46 -0500

Well, the dust had barely settled (literally), and everyone seems to have an opinion about whose "fault" it is that the Eggleston Hotel collapsed. Seriously. Here's an article the day after the collapse titled "Richmond Official Blames Hotel Collapse on Owner's Inaction." Today the headline is "City, Eggleston Hotel Owners Disagree Over Collapse." City officials, the owners, newspaper columnists, and just about any Tom, Dick or Harry on the street is rushing to lay blame at the OTHER guy's feet.

Why do we care who shot John? It's not going to magically resurrect the Eggleston Hotel, like a phoenix from the ashes, if we can properly affix the blame.

Here's the reality: The "truth" about who is to blame is probably pretty complicated. The family that owned the property may not have had the resources to maintain it. It appears they were unable to secure financing to do something with the building. The City appears to have investigated the building for building code violations on several different occasions, dating back years. Why didn't the City move more quickly to enforce? The private developer who was to redevelop the property had been negotiating with the City and trying to determine what was required to stabilize the building. Perhaps that process could have gone faster. Did all these different processes either not work at all, or work too slowly? Clearly, because the Eggleston Hotel is gone. BUT, why does any one person, or persons, or any particular agency, need to be "blamed?"

From the standpoint of physical history and the importance of place, the loss of the Eggleston Hotel is nothing short of tragic. It was a mecca for African American entertainers, athletes, and stars back in the days of separate and decidedly not equal. Even many Richmonders don't know that Jackson Ward in its heyday was often referred to as the "Harlem of the South."

Here's what I think matters. On the issue of blame, I say WHO. CARES. There's probably a little bit to go around for everyone, and the gracious thing may be just to all acknowledge that what needed to get done, didn't. Just let's make sure it doesn't happen again. Stop wasting time pointing fingers and laying blame, and come up with a plan. Inventory all the endangered historic structures in the City. Then prioritize the "needs" and make sure resources get delivered to the most distressed properties. Stabilize first. Figure out an appropriate use second. If you need to use tools like spot blight ordinances to preserve important historic structures, then use them.

Who is to blame for the Eggleston - well, that's in the past. What matters now is what we do to make sure there is no similar situation in the future. Stop wasting time pointing fingers. The time is much better spent solving the problem. And here's one woman who is willing to put her money - well, her time at least - where her mouth is. I'd be happy to be a charter member of whatever group the City wants to put together to address this issue. I'm definitely not the most qualified, but I do have the courage of my convictions. Mayor Jones, Rachel Flynn, are you listening?

Cool Stuff Coming Up in the Historic Fan District - Late April and May 2009

Melissa Loughridge Savenko (RE/MAX Commonwealth) — Wed, 15 Apr 2009 20:07:23 -0500

I just got around to flipping through my most recent copy of the "Fanfare," the Fan District Association's bi-monthly newsletter. There is a lot of cool stuff coming up in the Fan, so I thought I'd list the activities, in case people who aren't "Fanfare" subscribers aren't aware. So here they are, in date order:

Saturday, April 25: The "Binford Bash," celebrating the visual and performing arts. The Bash will be held behind the Binford Middle School, located at 1701 Floyd Avenue, from 11:00 a.m. until 6:00 p.m. For more details check out www.binfordpta.org. I haven't been before, but I certainly plan to wander right on around the corner. It looks to be great fun for the entire family.

Sunday, April 26: The 69th Annual West Avenue Garden Tour. Children's events begin at noon, and gardens are opened at 1:00 p.m. The event goes until 5:00 p.m. The event is free and open to the public. For additional details, check out www.westave.org.

Saturday, May 2: Spring Neighborhood Improvement Event from 10:00 a.m. until 2:00 p.m. Fittingly, Fan neighbors are going to go out and clean up the alleys and streets adjacent to the Fan Kitchen & Garden Tour homes, in preparation for the big Tour the following day. Bring your own gardening gloves, and meet at 10:00 a.m. at 2518 Hanover Avenue for instructions.

Sunday, May 3: The Fan Kitchen & Garden Tour, sponsored by the Fan Women's Club. From 1:00 p.m. until 6:00 p.m., 10 different Fan homes are open for viewing. Tickets are $15 per person in advance and can be picked up at Tabernacle Baptist Church on the day of the tour. Check out www.fantourrichmond.com for all the details.

Saturday, May 9: An event near and dear to my heart, the William Fox Strawberry Street Festival, 2300 Hanover Avenue. 2009 is the 30th anniversary of this charmer, and both the young and the young-at-heart will find plenty of activities to amuse and entertain. The event begins at 12:00 noon and goes until 4:30 p.m. Bring money for that strawberry shortcake and the annual Strawberry Street Festival T-shirt, it all goes right back into the William Fox PTA budget for even more great programs for the kids. Check out www.richmond.k12.va.us/schools/fox/straw_street/ for details.

Saturday, May 30: The 2009 Woofstock Festival, sponsored by the Richmond Animal League, located on Monument Avenue between Allen and Lombardy. The Fanfare describes this event as "an all-day, family-friendly dog festival with live music, adoptions, games, food and drink." The "Strut Your Mutt Walk" is at 9:30, and Woofstock proper is from 10:00 a.m. until 4:00 p.m. Dogs must be leashed, and current on all shots. For additional information check out www.ral.org/woofstock.

Phew! That's a lot, but that's not even a scratch on the surface. One of my absolute favorite things about Richmond generally and the Fan/Museum District/Carytown specifically is all the wonderful outdoor festivals and activities. And if there isn't an event, and the weather is nice, I can always wander down to a friend's for a glass of wine on the patio. Richmond al fresco rocks.

Another great thing about all the events above is they are either free to attend and/or benefit great causes - Binford's PTA, the Richmond Animal League, the Fan Women's Club (which does wonderful things in the community with the money it raises), and the Fox PTA. So get out there, enjoy the weather, and spend some money for a great cause!

The Eggleston Hotel Is No More AND Create a Top 10 Most Endangered Sites List

Melissa Loughridge Savenko (RE/MAX Commonwealth) — Wed, 15 Apr 2009 20:04:45 -0500

There have been several times in the last several months, when I have driven by the Eggleston Hotel at the corner of Second and Leigh Streets in the heart of Jackson Ward, and I have thought to myself "What a handsome building that is!" Now it is no more. In the early morning of Saturday, April 11, 2009, the Eggleston Hotel partially collapsed. By the end of the day, the remainder of the building was deemed unsafe and demolished.

The Eggleston Hotel was about to be redeveloped by a private development group into apartments and retail space. Restoration work was to begin THAT DAY. By Easter, the day of resurrection, this important piece of history in the Jackson Ward experience, a neighborhood that was called the "Harlem of the South" and was one of the most progressive and successful independent African-American centers in the entire country during the unfortunate days of segregation, was forever gone. Oh, the irony, and the tragedy.

According to the Richmond Times-Dispatch, the building had been empty for over ten years. In its heyday, it was one of three Richmond hotels that accepted black guests. Just a week or two ago, in its piece on John Pierpont Morgan and the bank runs of 1907, Style Weekly referred to the hotel, then known as the Miller Hotel, as the accommodations of Bishop Samuel D. Ferguson, a Kenyan bishop attending the tercentenary celebration of the Episcopal Church being held right here in Richmond, Virginia.

It's tragic that a building so part of Jackson Ward's history, a building that was literally on the eve of restoration, should collapse and be lost for all time. I commend the private development group that had stepped in to give the building a new life. Shades of Miller & Rhoads, as well.

But where are the private preservation groups that are supposed to be doing this important work? Why was this building vacant and deteriorating for ten full years? Why aren't the City and not-for-profit preservation groups stepping in to identify and stabilize important structures in imminent danger, or at least raising awareness about the potential loss of these critical pieces of the City's architectural "story," until appropriate new owners and new uses can be found for them?

PROPOSAL: I know Preservation Virginia (f/k/a Association for the Preservation of Virginia Antiquities, or APVA) maintains a "Most Endangered Sites" list for the entire Commonwealth of Virginia. Why doesn't Richmond have a "Top Ten Most Endangered" sites list for the City? The members of the review committee could be made up of appropriate people from the City administration, architectural historians, academics, individuals from the preservation community, real estate professionals, architects. Maybe if we did something like this, we could raise awareness about these endangered structures, and save other significant buildings from the same fate as the Eggleston Hotel.

Here's the other reason to do it, beyond just the inherent value in historic architecture: It's good business. EVERY single report, of the five zillion or so that have been commissioned to help Richmond "re-vision" itself, has identified Richmond's rich architectural history as one of ts unique and valuable assets. If we won't take responsibility for preserving these unique assets in a systemic and thoughtful way - well, shame on us then.

Eggleston Hotel, R.I.P. May something wonderful rise from your ashes.

Richmond Real Estate - Things Are Looking Up!

Melissa Loughridge Savenko (RE/MAX Commonwealth) — Sat, 04 Apr 2009 22:27:34 -0500

Wow. The last few days have been azy-CRAY. I'm exhausted, truth be told. Now don't get me wrong, I'm not complaining. Being busy in this - per the media - "AWFUL" market is a good thing. It's hard to predict if the trend is going to last, but based on the current activity, at least in the sub-markets I specialize in here in Richmond, maybe things are turning around. Here's what I've personally done in the last five days:

Written an offer;
Received two more;
Had multiple showings on each of my listings;
Held two well attended Agent Previews;
Attended the VCU Housing Fair, where we signed up over fifty potential buyer contacts; and
Had SEVEN showings at the Windsor Court Condominiums between Friday and Saturday, with four of those potential buyers scheduled for a second look on Sunday, either before, during or after our scheduled Open House, which will be from 1:00 - 4:00 p.m.

Phew! I'm ready to put head to pillow tonight, and to get up and start over tomorrow. But first a few thoughts on the possible drivers behind this activity:

Historically low interest rates, hovering around and even under 5%;
The first time home buyer tax credit of $8,000;
Fairly high amounts of distressed property inventory, mainly foreclosures and short sales, meaning great deals for buyers looking for a bargain and willing to do some work; and
The traditional Spring market spike.

The reality is this increase in activity is quite likely a confluence of all these factors, to some degree. But I'm not going to look a gift horse in the mouth. I hope the sales activity continues, because it's good for the broader economy. And of course I hope it will be good for me. [:)]