The Williamsburg Real Estate Blog

Since I've received two separate calls from a couple of local real estate investors over the last week regarding the "3 person rule" I thought I'd help clear up some misconceptions.  The City of Williamsburg (not James City or York Counties) has had a long-standing rule that states that no more than 3 unrelated people can live in one house.   Legend has it that the rule was originally put in place as an anit-brothel law back in colonial times.  I can't verify that this is actually true but I can say that the "3 Person Rule" has stirred it up at the City Council level. 

The battleground is really defined as the area directly adjacent to the College of William & Mary.  The battle is between the investors who currently rent residential homes in this area who would like to rent to more than 3 students (or any other tenant for that matter); and homeowners who live and occupy the homes in this area. 

The list of issues over why or why not there should be a "3 person rule" is lengthy to say the least.  If you want to hear some real bantering, I suggest you go to a Williamsburg City Council or Planning Commission meeting to hear the latest.

Nonetheless, there is a proposal infront of City Council that would raise the number to 4 unrelated persons living in one home.  It stems from a focus group that was assembled to address the issue at hand.  It sounds like this is all going to happen but don't think that renting a house to 4 people will come cheap.  The permit to allow a landlord to do so will cost around $800 and the house must meet are long list of criteria, including number of bedrooms, bathrooms and parking spaces.  While there looks to be light at the end of the tunnel for the landlords, this loosening of the rules could expose them to additional inspections and the $800 fee could price their rental units right out of the market.

Now the Planning Commission will have a chance to poke holes in the new ordinance.  Check back for more updates.

The $8000 that is hanging out there for first time home buyers is about to expire.  On November 30th, it will be gone for good and possibly not return for quite some time, if ever.  Some buyers with extremely high household income are restricted from this plan but most are not.  Just remember...the great thing about this incentive is that it never has to be paid back. 

Nobody likes seeing our country rack up a trillion dollars in debt, but if it is going to happen, take this opportunity to help it benefit you or your family.

Thanks for stopping by my blog and in return all that I ask is that if this sounds interesting to you at all, you pick up the phone and give me a call.

757-592-7355

A lot has developed with short sales in our market since I last commented on it.  Much of the negative connotation that comes with a short sale has gone away and the general public has begun to see it as a viable alternative to foreclosure.  In most cases, unless a short sale is considered, the home will be foreclosed on and the current homeowner will be foreced to move out under the banks terms regardless of all personal circumstances.

In todays market, allowing your home to go into foreclosure is ridiculous without first attempting to negotiate a short sale with your lender.  Banks are more apt than ever to negotiate on a short sale with homeowners for numerous reasons.  First, they have increasing pressure to clean up their portfolio of loans that are currently on the books.  Second, in many cases they have received stimulus money to help liquidate and faciliate transactions such as short sales.  And finally, the cost of foreclosing on properties has gone through the roof.  All of this makes "going the short sale route" a must if you are late on your mortgage payments.

If you, like many others have gotten behind on your mortgage, call me and I can guide you through the process of selling your home and utilizing financial tools that may be at your disposal that you didn't even know about.

I've implemented a tried and true method of selling foreclosed homes faster than other agents ever thought was possible. 

It seems like almost everyday now someone asks me about Short Sales.  Most people don't understand what they are, nonetheless how to go about buying a home involved with one. 

The way that a short sale works is that the Seller of a home negotiates with their lender a mutually agreed upon price to sell their home that is lower than the balance due on the mortgage.  This is a tactic used to prevent a costly foreclosure for the Seller and the Lender (mortgage company).  Many people find it difficult to believe that a Lender will negotiate such a deal, but those same people don't realize the expense that the Lender must incur to repossess the home.

This can be a very useful method of selling property where a Seller is "upside down" on a house.  In other words, the Seller owes more than the house is worth.  I'll put some numbers here in an example...

The homeowner owes $250,000 on a home that is currently worth $230,000. 

The total cost of the foreclosure to the bank is estimated at $50,000. 

The bank may be willing to allow the Seller's Realtor to market the home a price around $215,000 with the theory that losing only $35,000 is better than spending $50,000 in a foreclosure situation.

So, as you can see there is a considerable margin involved with a Short Sale that must be evaluated carefully by any prospective Buyer.  Many people are throwing the term "Short Sale" around right now and a lot of Buyers automatically think that they are good deals.  In general they are, but in some cases the margin between Market Value of the home and the balance of the loan is so great that even choosing the route of a Short Sale can not overcome the difference.  In this case a Lender may contribute enough money to only partially make up the difference between the sales price and the balance of the loan. 

In "short", a short sale can be a last resort to avoid foreclosure.  It still will affect you credit score in a negative way and can even be weighed as heavily as a property foreclosure. 

If you see a home for sale in our area that is a Short Sale, give me a call and I'll help you evaluate the situation.

I'm getting more and more questions about the Economic Stimulus Package and how it affects the Home Purchasing Process for first time home buyers.

This is particularly important because the package is designed to help two different groups;  the people who took out mortgages that they shouldn't have and first time home buyers.  I get far less questions regarding how to get out of high interest mortgages than I do about how to qualify for a competitive rate as a first time buyer.  First time home buyers are usually one of two types of people.  They have either 1) done the research, want a good deal that isn't too good to be true, or 2) are looking for a well-versed agent to guide them through the process from start to finish.

To my knowledge, as of this morning President Bush had not signed the bill but it is expected to be complete very soon.  The bottom line is that a first time home buyer can qualify for a $7500 tax credit for purchasing a home before April 9, 2009.  This helps the buyer by lowering their tax burden for the year.  I particularly like this because it is rewarding people for getting into the market and making good decisions.  The mortgage bailout is indisputably going to be costly for all of us.  Its great to see that our Government is attempting to try and interject in a positive manner during a tough time for many.

More and more people are now beginning to speculate on the potential take over of A-B.  It is a real possibility but nothing has been finalized, at least publicly yet.  I get asked the question, how will this affect the real estate market in Williamsburg, almost on a daily basis.  From a real estate professional's perspective,  "We don't know."  Anyone who tells you any more than that as of the time of my post better have the last name Busch or Brito.  Unfortunately, we just don't know.

We all need more details before any speculation can be legitimized. 

There are a few things that we do know.  Kingsmill will still be here and flourish as a high-end neighborhood for a long time to come.  Plenty of other options for housing are readily available in the community and, at this point, it is far from the greatest factor playing into our market, commercially and residentially.  With the new stimulus package just released, it will not only help those who claimed to have been tricked into taking a mortgage that was unaffordable, but also the first time home buyers.  See more on my Stimulus Package post.  

Locally, let's just hope the best for our neighbors who have loyally churned out our favorite beverages for so many years here in Williamsburg.  We have all grown to like Busch Gardens, Water Country and the Anheuser-Busch Brewery as neighbors and hope to keep them in the future.