Will 2008 House Prices in Virginia Beach Revert back to 2001-02 Home Prices?

In this weeks most viewed Trulia Voices Q&A post, Mindy from Virginia Beach asks, “Will the house prices in VA Beach go back to 2001-02?” With 21 answers thus far, our community has provided some very insightful feedback to Mindy’s question about home prices in Virginia Beach, Virginia.

Thoughts from our Trulia Voices Real Estate Community

Alvin, a real estate agent from Viginia Beach said, “Hi Mindy, doubt that low…I think we have flat lined, and will now move over to the more traditional/historical gains of 2-5% annually…but of course everyone has their opinions!”

Drew Hitt, a real estate Investor from Virginia Beach says, “Absolutely not. The only way that would be possible would be a complete financial collapse of all the nations banks at once. The government came in and prevented a global collapse here. We’re still not seeing prices of late 2005! At least it depends on what price range you are seeing. Under 250k, you’re sitting pretty. I wouldn’t say you’ll have appreciation, but you’ll be protected for the most part.

Got a house over $275k in Virginia beach and you will probably see a value decrease. Some dropping to 2005 prices, but financing is still low and more affordable housing is still in demand.

Hypothetically if you saw prices drop to 2001 levels while rents stayed high, you wouldn’t see properties for sale, landlords would buy them all up, which would increase demand and inflate prices. So no we will not see 2001 prices……

Real estate agent Timothy Jenkins from Hampton Roads, Virginia said, “The national averages point to prices currently being around summer of 2004 levels. We are still well above that point. Here is how sales price per square foot has trended over the last 7 years in a typical, non-new construction subdivision in Virginia Beach… June 01 – June 02 $76, 02-03 $83, 03-04 $99, 04-05 $128, 05-06 $145, 06-07 $162, 07-08 $15″

Bill Byrd, a real estate agent from Virginia Beach said, “Great question Mindy! That’s a question we actually hear a lot! Prices have already come back quite a bit in most neighborhoods but the truth of the matter is that with lots of inventory, great interest rates and a stable local economy and real estate market locally. This is actually one of the best times to buy that I’ve seen in 21 years in the bz!

The smart money out there is taking advantage of this “move up” market and trading up! What do they say in the stock market “buy on the dips”…well…we’ve got a dip!

Regarding the declining market, we have been in the current shift since August 05 and according to my sources in the mortgage industry we have already seen the worst of the resetting loans here in fact I have been told that Fannie Mae and Freddie Mac have had VB off the “declining market” status for some time now!”

Jim Dunio, a real estate Agent from Chesapeake, Virginia said, “First let me say I am an optimist and see the glass as half full.There are more positives than negatives in the market. Interest rates are still good,Supply is good,prices of homes are down,Sellers are making concessions (closing costs,repairs,warranties,etc.),The government is offering 1st time home buyers a $7,500.00 tax break.”

Lori Jeltema, a real estate agent from Yorktown, Virginia said, “2001? No, I don’t think so. Take a neighborhood in VABCH and look at sales from 2001. The prices had nearly doubled in some by 2005. At that point, the market should have slowed to a normal growth but didn’t. If prices went back to 2001, the homes that are on the market for $300 now would be closing at $125.”

 My Thoughts

There are many opportunities out there today for home buyers and home sellers are adjusting to the local market conditions. With all that is happening in the current housing and financial markets, there is no better time than now to use a local real estate agent to help guide you through the home buying or home selling process. As illustrated by many of the answers given, local agents have their pulse on the Virginia Beach real estate market.

Home Buyer Foreclosure Question – What Do I Offer?

This weeks Trulia Voices most viewed question comes from Randy, a home buyer in Miami, Florida where he asks, “How Low Can I go?“. He found a foreclosure property that he loves but doesn’t know what to offer and is having a hard time getting in contact with the real estate agent. What should he do?

Thoughts from our Trulia Voices Real Estate Community

 Tony Croft, a full service mortgage banker from Edgewater, New Jersey said, “Find an agent you can trust that will help you write an offer on the property.”

Ed Fitch, a real estate Broker/Owner in San Jose, California, says, “The bank or their Asset Manager is looking at numbers only. You can usually expect a 10% leway depending on the institution, location of the property, and the listing strategy.”

Joe Jackson, a real estate agent in Worthington, Ohio, said, “1. Hire an agent to represent you! An agent who doesn’t show up in this market is not worth keeping! 2. How will you know the market has bottomed out? When the prices start to go up! 3. Make an infomred offer 10% +- below list and see what haapens. 4. Have a home inspection contingency and make sure the house is checked out top to bottom. Hire a professional inspectort that is either NASI or ASHI certified. Good luck it’s a GREAT time to buy!”

J. Douglas Montgomery, a real estate agent from Douglaston, New York said, “Randy, the most important concept for you to understand is that there are buyers agents and sellers agents. I would strongly suggest that you hire a buyers agent to represent you. There is a fee involved but a portion of that can be paid as part of the cooperating broker commission in the transaction, especially if the property is listed in MLS. The CBR representation is national, you can go to their website and look for someone who has taken the training. Also ask for references. A buyers agent has a fiduciary responsibility to you as the buyer and therefore will tend to be much more thorough finding out information on any house or neighborhood for you and your family.”

David Kim, a real estate agent from Edgewater, New Jersey said, ‘Here’s one techique to know what is a good price (where’s the bottom). For my home, comparable homes built in 2001 were sold for around $350k. This was a year or two before the market started to explode. I feel comfortable that homes will not dip below that amount. You should see what your home would’ve sold for in 2001/2002 and if it’s almost down that low, you will be safe. 2003-2004 prices would be cutting it close and 2005-2006 prices would be unrealistic to consider buying.

Now, as for how low you can go… It’s more important to say how HIGH can YOU afford to go. When purchasing out home, we decided on what rental values were, what we needed in a house and what we were willing to pay per month regardless of market value. The following should help you make this decision.”

My Thoughts:

Simple – Use a real estate professional to help guide you through the intricacies of the foreclosure home buying process.

House Rich and Cash Poor – Can We Afford to Buy This Home?

Image via True Gotham

Have you ever heard the term House Rich and Cash Poor? If you own a McMansion, but have no furniture and eat Ramen noodles every night, you might be house rich and cash poor. Generally, it means you financially overextended yourself. Andy, a home buyer from Alpharetta, Georgia, asked this weeks top viewed question on Trulia Voices – “Our combined income is around $121k a year. Are we being unrealistic looking at homes priced close to $500k?” By asking our real estate community for advice, Andy has taken a proactive measure to assist him in making a very important home buying decision. One that will hopefully help him and his wife live comfortably within their means.

Feedback from our Trulia Voices Community

Jeff Mitchell, a real estate agent from Vero Beach, Florida, says, “A fairly conventional guideline is that your home payment costs including taxes and insurance should not exceed 30 to 33% of income. You should also have some savings in place in addition to your down payment and closing costs to be on the safe side. The recommended savings is about 6 months of living expenses. If you have been pre-approved with a reliable mortgage lender, your finances are probably in good shape.”

Joshua Jarvis, a real estate agent from Atlanta, Georgia said, “It’s about your budget. What can you afford per month… and what does that translate into a home.  Get your budget straight is only the first step. Getting a plan and strategy together is your second step. You need to plan on how long you will live there, what is your equity strategy (how much will you put down) and what is your exit strategy… i.e. Rental, resale… ect.”

Real estate agent Hank Miller from Georgia, said,”Your lender and your agent can work up what the expected monthly carrying cost of a home can be. Budget that with your other expenses; add a few percent for the unexpected and you’ll get an idea of what you can afford. Obviously at that point you need to start checking inventory, then hopefully find something that matches. Don’t buy a home to get rich, buy a home to have a rich life and enjoyTrulia Blog – Real Estate Search › Edit — WordPress the benefits that come with owning your home.”

Lee Adkins, a real estate agent from Alpharetta, Georgia said, “If you are not working with an agent yet, you should talk to the guys here on Trulia (you can click on their pictures for direct contact info) and/or ask for referrals from friends who have had good, direct experiences with particular agents. I would recommend interviewing more than one agent to find the one who best suits you and understands your goals.”

Ty Davis, a home buyer in Atlanta, Georgia said,”Although many people will probably disagree with this, most people who know a thing or two about finance will say that you should spend between 2-3x your annual income on a home. Actually, one person said you should spend about 30% of your net monthly income on a payment, which ends up being in the 2.75x range. I personally believe this to be a wee high, but that’s just my opinion.”

Jenifer Bowman, a real estate agent from Atlanta, Georgia said, “Personally, I always tell my clients to go for a house that is less than they were approved for. Approved numbers are in a perfect world.”

Andy followed up in the thread and said, “Wow what a bunch of great responses!!! Definitely some things for my wife and I to think about. We already have an excellent Realtor that we’re working with. Unfortunately, we keep seeing the same houses for sale week after week with very few new ones coming onto the market.”

My Thoughts

As a home buyer, Andy is doing his homework. Our voices community is providing some valuable answers. It’s another healthy conversation.

Today’s unique local market conditions dictate that home buyers complete their due diligence about the local housing market, their own financial standing and their purchasing power. A knowledgeable local real estate agent and mortgage broker can help home buyers make the best informed home buying decisions. As you can see, we have some great ones right here on Trulia Voices.

Is the Grass Greener on the Other Side?

Is the Grass greener on the other side? Yes or no?

… continue reading

Home Buyer Question – Can I See That Home Please?

Jared is a home buyer who asked this weeks top Trulia Voices question, How reluctantly do listing agents show homes? He is looking for a home but wants the freedom to search and do the homework himself. He doesn’t want to use a Buyers Agent just yet because he feels like he doesn’t want to waste their time. Since he is looking on his own, he’s been sensing some hostility from seller agents because of this. On the flip side, some seller agents prefer a home buyer to be pre-qualified first before viewing their listings. Having been in this situation before as a home buyer, seller agent and as an agent helping a buyer, I can totally relate to each point of view. It’s quite interesting to see how others feel about this topic.

… continue reading

What’s The Difference Between an Exclusive Buyer Agency Agreement and Dual Agency?

If you ever wondered about the differences between Exclusive Buyers Agency (EBA) and Dual Agency and other agency relationships, you’re not alone. In many instances, they vary by state. And for most, it can be down right confusing. Generally speaking, when you sign a listing agreement with the seller, you create a fiduciary relationship where you owe that seller client undivided loyalty, confidentiality, full disclosure and more. You are basically working in their best interest. The same holds true in an Exclusive Buyer Agency relationship. You work in the best interests of your buyer client. However, in a Dual agency relationship, you really don’t have that complete fiduciary relationship to either party. It’s always best to ask your agent about the details of these agency agreements before getting into a relationship in order to prevent any misunderstandings during the transaction.

… continue reading

What is this Homes True Days on Market (DOM)?

The Trulia Voices Top Real Estate Question of the Week

This weeks top question on Trulia Voices deals with a homes true days on market (DOM). TheHob, who is just looking in Philadelphia starts his statement by saying, “This is a little trick that TrendMLS participants like to play”. He goes on to say that in his local MLS in Philadelphia, real estate agents are known to withdraw a for sale property and then immediately re-list it. Apparently, the goal is to keep the home looking like it’s a fresh listing rather than a stale one. Is this flip flopping ethical?

… continue reading

Win Your Golden Ticket For The Inman Real Estate Connect

How Can I Win My Free Ticket to the 2008 SF Inman Real Estate Connect?

You can win your free ticket to this summers Inman Real Estate Connect in San Francisco by submitting your Trulia Voices success story to us. Just visit this voices post and add your story there. Tell us how you connected with a home buyer, home seller or real estate agent on Voices. Did you connect via phone? Email? Did they like your answer to their question? Did they read your profile and then contact you? Did you email them? Have you had any showings with a Voices buyer? Has a Voices home seller signed a listing agreement with you? Are you in contract? Did you close? Have you done a referral with another real estate agent – possibly from another state? What ever the case may be, we want to hear your story about how networking in our real estate community has helped you.

Thanks to Inman News, we have three free passes to the Connect. Please post your text or video response on this Trulia Voices post by June 18th. We’ll then randomly select the three winning submissions for the real estate conference – winners’ stories will be verified of course. See you at Inman!

Everybody’s Story Counts!

Foreclosure tips special edition: Part one

Three foreclosure tips to put your home buying fears at rest

Make inspections mandatory

Minimize hidden costs by planning a professional inspection. Don’t be afraid to get a second opinion. Think you’ve got hidden costs? Check out this buyer’s problem.

Q: Test for Meth? Found a bank-owned [house] in a good neighborhood that needs some work… it seems to make sense to make purchase subject to clean inspection for meth. How can you test? Asked by Kendra, Home Buyer in Phoenix A: Great thinking to test for Meth. Besides checking police records, and doing a search of the prior resident. The property will only be a hazard if… see more

Avoid pre-stage

The pre-foreclosure/short sales stage is typically not the most profitable. You could wait weeks or even months for an answer from the lender. Find out what one buyer learns about foreclosure prices.

Q: How do I get more info on a pre-foreclosure home? Is the price you see on the website the price you pay? Asked by Daniel Craig, Home Buyer in Northern Ireland A: I would encourage you to go directly to the source to get first hand and current information. Contact the agent and request… see more

Talk to experts

Make an appointment with an experienced foreclosure agent. Don’t be afraid to ask a lot of questions. Especially if you are a first time home buyer like this house hunter.

Q: I’ve been told that foreclosures are the best value for me as a first time home buyer. T or F? Asked by Betsey, Just Looking in Renton A: It is a common myth that Foreclosures are always a great deal and buyers should only look for those… see more

Want more foreclosure tips? Stay tuned for part two of the Trulia foreclosure tips special edition.

Helping You Build Your Brand, One Listing at a Time

Trulia just unveiled some new – and FREE! – real estate agent marketing tools. Brand Your Listings will help you build your brand and connect directly with the serious home buyers and sellers on Trulia!

Here’s what you get:

• Increased online visibility: Your photo and contact info on all of your listings.
• Connections with serious consumers: Emails from active home buyers & sellers sent directly to you
• Stats to share with sellers: Tell your clients how many people view their listings every week
• Open house advertising: Market your open house to thousands of local buyers

Great features to introduce yourself to the over 5 million users on Trulia each month, over 70% of whom plan to buy or sell in the next year and 70% of whom don’t yet have an agent. And the price is right – FREE!

In addition to these benefits, when you Brand Your Listings, you’ll pump up the SEO benefits that you already enjoy from your Trulia Voices profile. But more on that later, so stay tuned…

Check out the Brand Your Listings release here.

(ps – Did I mention it’s all FREE?)

Brand Your Listings on Trulia