Montague Miller agents participate in the Realtor rally in DC on May 17

About 13,000 REALTORS® and industry professionals from across the country turned out for the Rally to Protect the American Dream in D.C.

Montague Miller & Co was represented by Brad Conner, Barb McMurry, Lisa Herndon, Alice Fitch, Pat Crabtree, Pat Sury, Karyn Trumbull, Anita Dunbar, and Jamie White.

On Thursday May 17^th there will be a Rally to Protect the American Dream.  It is our plan to draw attention to those issues which threaten your rights and which discourage and diminish homeownership.    The Mortgage Interest Deduction is absolutely key to Homeownership and we will be there on Thursday, near the Washington Monument to tell the world that Home Ownership Matters.

Barbara McMurry

“It seems that there is a significant amount of confusion when it comes to purchasing a short sale. There are many misconceptions when it comes to this type of transaction, so below I have provided some information to potential buyers of short sales. If you are looking to purchase a short sale, understand that it is not the same as a normal sale and the approach is very different. There could be several parties involved and issues that are unknown to the buyer and buyer’s agent that can affect the transaction. If you are looking to purchase a short sale here is some helpful information.

1. On average, to get a short sale approval, it can take 60-90 days.

There could be mortgage insurance and an end investor on the loan as well as the servicer, which means it has to go through three different processes. Bank of America could be the servicer on the loan but they do not actually own the loan, so, the short sale has to pass their guidelines, then go to the mortgage insurer if there is one, then to the end investor like Fannie Mae and Freddie Mac. If you are a buyer and can’t wait at least 60-90 days for an approval and then another 30 days to go to closing, then you need to look at other houses. The worst thing you can do is tie up a house that is in a short sale with no intention of being patient while waiting for a short sale approval. Approvals can come sooner than 60 days, but industry standard is at least 60 days to get an approval or denial.

2. There is a general assumption that you can purchase a short sale for 40-50% under its listed price. In a short sale the bank comes out and does a valuation of the property and will expect a slight discount, but will not accept a huge amount under the market value.

Hopefully, if the agent who is handling the sale is experienced, they will have already gotten an approved list price from the bank by the time you are interested in making an offer. The bank will usually be willing to negotiate on that price, but will not, in almost every case, take 40-50% off of that price. To that point, you may be able to get a reasonable deal on a short sale, though it will not be, in most cases, as much of a deal as you may be able to get on an REO (foreclosed property). Also to that point, most short sales will be in better condition than an REO. When you look at the potential repairs a comparable REO needs and the time and expense it can take to do those improvements vs. a short sale being sold at a slight market discount with improvements already made, the investment could even out. There are REO properties that can be picked up for a huge discount, but require massive repairs that a comparable short sale may not require.

3. Short sales are a very difficult process and it takes a qualified person to handle this type of transaction.

With this type of transaction it takes a very experienced agent on the listing side as well as the buying side. Make sure before you move forward on the transaction that the listing agent has ample experience dealing with these types of transactions, or you could be tied up in a contract for months that never goes to settlement. There are several different types of short sale processes and each bank’s process is somewhat different; it takes a professional who has had experience with all of these different types of short sales to help facilitate a successful transaction.

4. In most short sale transactions the properties are sold “as-is” and no repairs will be made.

Although there are some exceptions to this rule, speaking in general, short sales are sold “as-is” and no repairs will be made even if they are found during a home inspection. In most short sale transactions the bank will require both the buyer and the seller to sign an addendum that states the property is being sold “As-is” and no repairs will be made.

These are just a few short pointers for buyers who are looking to purchase a short sale as they are a reality in every market, and if you have the patience you may be able to get the home you are looking for at a discount!”

Pat Sury

In the Blog post Painting 101, author Geoffrey Thompson poses his color theory. To “Bold”, or “Not to Bold” is the question and we can make cases for both directions. A neutral pallet is often said to be better that bright colors-different bright colors in every room. Neutral wall colors may be less distracting and help a buyer focus on the space.

But—-Too much neutral, per the author, is less “up to date” and less likely to wow your prospects.

Your thoughts?
Barb McMurry

This article comes from this weeks KCM blog.

Every day there seems to be more positive news about the real estate recovery. We attempt to give you two things in this blog:
1.The actual data that indicates where the housing market is headed
2.Quotes from analysts who have scrutinized this data

Today, we want to give you a quote by Ivy Zelman which appeared last week in a Wall Street Journal article Stunned Home Buyers Find the Bidding Wars Are Back.

“We very much believe we’ve hit bottom.”

Why is the quote from Zelman important? She is an industry expert consistently recognized by Institutional Investor, Greenwich Associates, StarMine and The Wall Street Journal as an industry-leading analyst. She has been nicknamed ‘Poison Ivy’ for her harsh positions on housing over the last several years. Now, Zelman is calling a bottom and projecting prices to moderately increase in the next twelve months.

Again, another expert on housing is calling a bottom; another bear turns bull.

Shelter for Help in Emergency Design House

Presented by Shelter for Help in Emergency

Beginning on May 5^th through the 20^th of May you can visit the Shelter for Help in Emergency design House located at 2020 Wingfield Road, Charlottesville, Virginia.  This is a fundraiser for a very worthwhile cause and show cases the talents of local designers in a beautiful Ivy Farms home owned by Sanjiv and Cindy Kaul.

Information for buying tickets is below and remember :

Peace on Earth Begins at Home

Tickets

The Design House Committee is currently pursuing sponsors for the 2012 event. If you or your firm is interested in sponsoring the 2012 Design House event, please contact us at CvilleDesignHouse@gmail.com.

Browse our sponsors and special contributors for the 2010 Design House event

$20 for one time admission; $15 person for groups of 5 or more; $45 for multi-visit pass
Some special events may have additional cost
Tickets are on sale now!
Starting May 5th, tickets will be available at the door.

The Shelter’s Community Outreach Center
1415 Sachem Place, Suite 1
Charlottesville
434 963 4676

Palmyra Country Store
4 Center Court
Palmyra
(434) 589-1739

Cville Coffee
1301 Harris Street
Charlottesville
817-2633

Greenberry’s
Barracks Road Shopping Center
1049 Emmet Street
984-0200

Trailside Coffee
110 Old Trail Drive
Crozet
205-4253

PARKING: Parking is not available at Design House. Please follow signs to Design House parking and shuttle as you approach the Ivy Farms neighborhood.

GENERAL: To preserve showcase designs, food, drink, strollers, photography, pets, high heels or children under 8, with exception to infants in carriers, are not permitted in the house. We apologize that the house is not handicap accessible.

© 2009-2012 Shelter for Help in Emergency, Charlottesville

Barb McMurry

A Rich Spot of Earth": Thomas Jefferson's Revolutionary Garden at Monticello

During the last week, I was fortunate to attend the national book launch of Peter J. Hatch’s new book “A Rich Spot of Earth: Thomas Jefferson’s Revolutionary Garden at Monticello” .  This beautiful book, with photography by noted Charlottesville photographer Robert Llewellyn is a treasure, as are the gardens at Monticello.  Peter Hatch has been the curator of the Monticello gardens for the last 35 years and he brings his knowledge of the vegetables, plants, flowers and fruit trees that Jefferson researched, planted and harvested at Monticello into one glorious book. If you are looking for THAT special book for a gift or if you want to enjoy a great perspective of the outdoor environment and life at Monticello yourself, I suggest that you purchase this book. It will remind you daily of this beautiful area in which we live…and it is indeed …”A Rich Spot of Earth”

“I learned a long time ago that “common sense is NOT common practice“. This is especially the case during the emotional time that surrounds buying a home, when people tend to do some non-commonsensical things. Here are a few that I’ve seen over the years that have delayed (and even killed) deals:

Don’t deposit cash into your bank accounts. Lenders need to source your money and cash is not really traceable. Small, explainable deposits are fine, but getting $10,000 from your parents as a gift in cash is not. Discuss the proper way to track your assets with your loan officer.

Don’t make any large purchases like a new car or a bunch of new furniture. New debt comes with it, including new monthly obligations. New obligations create new qualifications. People with new debt have higher ratios…higher ratios make for riskier loans…and sometimes qualified borrowers are no longer qualifying.

Don’t co-sign other loans for anyone. When you co-sign, you are obligated. With that obligation comes higher ratios, as well. Even if you swear you won’t be making the payments, the lender will be counting the payment against you.

Don’t change bank accounts. Remember, lenders need to source and track assets. That task is significantly easier when there is a consistency of accounts. Frankly, before you even transfer money between accounts, talk to your loan officer.

Don’t apply for new credit. It doesn’t matter whether it’s a new credit card or a new car, when you have your credit report run by organizations in multiple financial channels (mortgage, credit card, auto, etc.), your FICO score will be affected. Lower credit scores can determine your interest rate and maybe even your eligibility for approval.

Don’t close any credit accounts. Many clients have erroneously believed that having less available credit makes them less risky and more approvable. Wrong. A major component of your score is your length and depth credit history (as opposed to just your payment history) and your total usage of credit as a percentage of available credit. Closing accounts has a negative impact on both those determinants of your score.

The best advice is to fully disclose and discuss your plans with your loan officer before you do anything financial in nature. Any blip in income, assets, or credit should be reviewed and executed in a way to keep your application in the most positive light.”