Maggi Davis

Hi Ann - I would recommend you take your self promotion to Craig's List...There are over 5,000 real estate agents in Hampton Roads and we'd really clutter up Trulia if we use the vehicle to sell our services.

Check out the dialogue on "buyer's market" post in Virginia Beach and offer your comments - it's a great dialogue!

Maggi Davis - Wed Apr 9 2008, 11:52

Well...I've held off for weeks while this thread has been going on, but I feel I must put in my .02 now.

Real estate is a LOCAL commodity, not a NATIONAL commodity. No one can say what a home should sell for relative to its list price in Virginia Beach (where this thread started, and where I work) unless they know the conditions in the local market.
If a home comes on the market at a price that has already been analyzed and priced to reflect CURRENT market conditions, then the discounting has largely been done already. To say that it should sell for 20% or 40% less is just plain out of line unless the person making that claim knows the local market.
Virginia Beach listings are still selling on the average at 97% of their list price - or they aren't selling at all. The homes that are selling are the homes that represent PERFECTION - look like new, curb appeal plus, etc. and the sellers ARE paying most or all of the buyers' closing costs (3%).
The homes that are not selling tend to be pretty beat up, and they might be bought at a deep discount if there is sufficient equity in them. But as often as not, those homes do not have enough equity to allow for a deep discount, so they are ending up in foreclosure. Our foreclosure rate in Virginia Beach is about 1/3 of what it is nationally, indicating that our homes are still selling much better than elsewhere.
Supply and demand is what determines what a house sells for, not any arbitrary % below list price. I do encourage my clients to make offers below what we think the seller will accept, and we do fish for the bottom line, but getting the RIGHT home for a family's use and enjoyment usually overrides getting the best steal available in the market place.
OK, bring it on...all ye chicken littles. I've had my say and I'm done :-)

Maggi Davis
Keller Williams Realty - Wed Apr 9 2008, 09:10

Ox,

First, I always try to avoid generalizations about real estate matters. The news you read is "generally" nationally based, not locally based, but real estate is a local commodity. In fact, it is so local that the "market" in one neighborhood or city can be vastly different that the market in a continguous neighborhood or city.

More specifically, the market is also different in different price ranges. The higher the home prices in a given area, the fewer buyers there are who qualify to buy them, and the softer the prices become. Homes in a lower price range, starter type homes, have less flexibility because there are still a large number of homebuyer wannabe's who qualify to buy them. Supply and demand, pure and simple. The lower the price range, the less supply. The higher the price range, the greater the supply.

Then the issue of "condition" comes up. The Hampton Roads area real estate market is kept alive in times like this by military transferring in and out. If a family plans to be living here for 3 to 5 years they usually recognize the many reasons for buying instead of renting, and will usually look for the homes in the best condition, structurally and cosmetically. Such "creme puff" homes will still sell quickly and for full value (notice I didn't say full price - there is a difference!).

So, how low should you go in making an offer? It all depends upon what is important to you. Is price the most important factor, or is condition equally as important? Will you also be asking the seller to contribute to your buyer closing costs? Market value is established with the buyer and the seller reach a meeting of the minds and pocketbooks, and every offer and negotiation is different.

The truth is that the published data from the Hampton Roads MLS shows that from August 2006 to August 2007 the average sale price of ALL homes sold in Hampton Roads (single family + condos + townhouses) actually ROSE 3.61%, although the volume was down 11%.

Bottom line, if you're not sure what to do, BUY ANYWAY. Owning your own home has so many advantages that as long as you plan to own it for 3 to 5 years you should be able to walk away clean or ahead, but the tax advantages put money in the bank that paying rent never will!

Good luck!

Maggi - Thu Oct 4 2007, 16:18

I don't know why my "signature" showed up in the middle of that last message...so sorry.

Maggi Davis - Fri Mar 7 2008, 14:59

"Normal" you ask? What is "normal"? Our real estate market has just emerged from the strongest "bull market" in housing in anyone's life time, and now the market is correcting some. Actually, home prices in Virginia Beach are still actually increasing at a modest rate, and for the year 2007 there was about a 6% appreciation in home prices in VB.
Respectfully,
Maggi Davis
(Realtor, duh)

Normal, long term appreciation rates in Virginia Beach have been between 3% and 5% per year. So, we ARE in a "normal" appreciation curve. It is highly unlikely that we will see the kind of market decline in Virginia Beach that you see in major metro areas, because our underlying economy is very good. We enjoy low unemployment and a multitude of other benefits that makes relocation to the area attractive.

If you are waiting for prices to drop before buying, keep this in mind: if you plan to live in your home five or more years, investing in a home is still the best investment you can make. Stocks routinely swing 10% to 50% in value, up and down, so investing in stocks is way riskier than investing in a home, and you cannot live in 1,000 shares of stock! Even if prices do drop 10% in the next year (they won't), if interest rates go up JUST 1/2%, then the 10% drop in price is WIPED OUT!
So, in the absence on understanding your concept of "normal", my answer is that not only are the prices "normal" in Virginia Beach, the numbers of homes for sale so far outweights the numbers of buyers pulling the trigger to buy them that there are some wonderful homes at great value pricing. - Fri Mar 7 2008, 14:58

Prices are one thing, and interest rates are another. Long term rates (mortgages) have gone up since early February, wiping out lower prices pretty effectively. A .5% increase in interest rate wipes out a 5% reduction in loan amount!

I know this sounds like a real estate sales line, but this is a great time to buy! Please check out my Top Ten Reasons to Buy Now at the link below, and best wishes. - Tue Mar 4 2008, 07:05

Hello 1stTimerInVB,
In my years of experience representing buyers I have learned that most Realtors who survive beyond 2 or 3 years have learned the stills needed to help you buy a home with competency. Since you are savvy enough to even ask this question, you will be a good advocate to have in your own corner - so I suggest that you locate the new book Your First Home by Gary Keller and read it, it will help you along the way.

Interview a few agents on the phone, then ask if they will guide you through the home buying process in person without having to sign an agreement until you've decided who you want to work with. Look for a couple of credentials (they are the signs of a learning based agent), and for someone who can be patient with you and willing to answer your questions. You will know when you click with the right one for you!

Good luck, buying your first home should be FUN! - Sat Feb 23 2008, 04:48