Now that the first month of the new year has passed, many home owners are receiving their latest home valuation from the local government. Something called an assessment.

Every year in many municipalities around the country local real estate is re-evaluated. Assessments are significant because they provide the valuation through which taxes are determined by that government entity.

Assessments differ from Appraisals in that an appraisal is typically  conducted by a licensed professional using a valuation formula that includes a property visit and analysis of comparable home sales.

When the government makes its assessment of your home it rarely if ever makes a physical property inspection – for obvious reasons.

This difference alone should make an appraisal more useful and accurate in determining a home’s value. However, that is not necessarily the case.  Since a home’s true value is ultimately determined by what one or more buyer’s are willing to pay for a home in a given market, the market determines whether the assessment or the appraisal is the accurater indicator.

For example during the housing bubble homes routinely sold for thousands, even tens of thousands of dollars above the assessed value. Then the bank generated appraisal would come in many times above the contract price making the appraisal and assessment light years apart.

In the current local market in Central Virginia – generally considered to be a buyer’s market –  more and more homes are selling below assessed value.  Then every so often the bank appraisal comes in below the contract price meaning the appraisal and the assessment have flipped positions.

The house didn’t change – although most sellers are finding they have to do more to prepare their homes to get less. In reality the market changed.

Buyers want to know what the assessed value is so they can offer a price below assessed value, even if there is a bank appraisal for much more. Sellers want the buyer to know there is a bank appraisal for more than the asking price.

So how should buyers and sellers value assessments and appraisals? That depends on how badly they want to buy or sell the home.

Assessments are for taxes. If your assessment is significantly above what comparable homes are selling for you should take it up with your assessor. It is worth fighting and we have been helping our customers and clients fight them for years. If your assessment is below what comparable homes are selling for enjoy the tax break and consider yourself fortunate – that is until the time comes to sell your home.

Appraisals are only good for two things – the bank financing your  loan wants assurance of value and the appraisers are the only avenue for that.  Secondly the appraiser will provide a measured total finished living area that may come in handy at a later date. So hang on to it.

For more information on assessments and appraisals contact The Mark Foss Brown Team – Keller Williams Realty – 804-359-7653 – www.fosshometeam.com

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I only made one new year’s resolution for 2012. See if you can guess what it is.

For the last several years pundits have been blaming our economic woes on the real estate market. Ultimately our national real estate slump is a sympton not a cause of economic stress. I thought the ringing in of a new year would be a perfect time to shed some positive light on real estate.

In spite of a drop in home values or perhaps because of it, there were a lot of homes sold in the Central Virginia last year. In fact we should be getting those numbers when the dust settles in a few weeks.

Sellers who completed a successful transaction in a buyers’ market, typically took advantage of the trends that were in their favor. These included lower rates enabling buyers to afford more,  and shoddy competition from competing home owners who wouldn’t or couldn’t take the necessary steps to complete a successful homes sale.

With stricter mortgage guidelines for buyers, those who were pre-approved could generally get to the closing table.

Perhaps most important to a successful home sale in 2011 was the ability of the seller and buyer to follow the good advice of a trusted professional.

The Mark Foss Brown Team was able to virtually guarantee results for sellers who followed every detail of the plan laid out by our team. That meant Preparation – Condition – Pricing.

That guarantee still exists.

In 2012, the Foss Home Team is making the commitment to ignore the tv pundits, regardless of the network and provide only the best information and advice and positive input on how to successfully navigate the purchase or sale of a home.

So what can buyers and sellers expect this year?

1. Rate volatility. The Federal reserve is determined to keep interest rates low and the building and mortgage industries are convinced they will be able to do so for another two years. I’m not sure how easy that will be. Factors outside of the control and influence of the Fed can cause rates to rise, and when they do they rise more quickly than they drop. I expect rates to be a minimum of 100 basis points higher in a year. (That would still make them historically low and attractive for buyers and beneficial to sellers.)

2. More distressed properties. It is apparent to the folks who follow foreclosure activity that we will see more of these below market homes in 2012. Throw in the short sales and family issues that can arise in difficult economic times, and that means more inventory entering the market, probably a steady flow of inventory in fact. The results will be more downward pricing pressure. Good for buyers and investors but not sellers.

3. Opportunities will abound for owners who are willing to invest in the salability of their homes. Buyers will compete for these homes. We do see multiple offers on homes that follow the PCP guidelines.

4. More renters – higher rent. One of the reasons we started a property management division two years ago is the anticipation of more renters which eventually leads to higher rents.  This means more home owners will pursue the option to rent. Many are already doing that if they can’t sell. (contact us to pursue the rental option on your current home)

5. Investment opportunities. Anywhere there is downward pricing movement there are opportunities for investors. Combining items 4 and 5 means greater cash flow for investors.

I don’t know what the pundits will report to us this year and frankly it doesn’t matter. If you want good information for anything go to trusted sources! For real estate information that’s The Mark Foss Brown Team.

Here’s to a great 2012 for everyone.

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Finally, the holidays are here. We can stop and catch our collective breaths – maybe. We can celebrate – maybe. Well at the very least we can remember holidays past. For me that is Christmas so you don’t have tobe politically correct for my sake – its Merry Christmas and Happy New Year. For this week’s Monday Morning Mojo, I have a question for you all: but first  

Its ok for us to wish each other Merry Christmas. I realize Chanukah starts tomorrow; so I would be remiss not to send best wishes to those who celebrate that holiday and of course if you are a celebrater of Kwanzaa, that holiday begins on the 26th – did you know that?

Personally, I don’t check my calendar for the starting day of Chanukah. Perhaps I should. But I usually get plenty of advance notice from those who either celebrate it or take pride in knowing when it starts.

Christmas is a no-brainer for me. As far back as I can remember same day every year. No school for two weeks, Presents under a tree – fake when we were kids; but still a great tree and better for the environment although we didn’t know it then. Now we have three live trees one for each floor. That gives my wife and the cats something to look forward to each year. This year we took it up a notch – a light explosion on the front yard. Complete with deer – one stationary one head up and down. I’m worried my house will show up on The Learning Channel next year.

So for me it is Merry Christmas to all, Happy Chanukah where appropriate and if someone wants me to wish them Heri za Kwanzaa, that’s cool. In the final analysis this is about the time of year, Giving gifts, helping others, celebrating and looking forward to a new year. It’s not about how we express ourselves. The only reason we hear about all of this political correctness is because the networks and low budget cable outfits have a lot of programming to fillI.

The celebration of Christmas for me is a way to pay tribute to all of the Christmases of years past, while building great memories for the future. That’s why if my wife wants to decorate three trees and spill lights all over the place that’s awesome! (I just hope the neighbors are ok with it)

So my question for you all is:

What one word or phrase best describes your home at Christmas time. and don’t cop out with festive – be creative. Mine is “Whoville”  - Christmas is coming no matter what.

 

What’s yours? Merry Christmas!

 

 

Hope you all had a great Thanksgiving. The Brown family traveled to New Jersey for our first Thanksgiving Holiday north of the Mason Dixon line.  Their, the brain trust gathered to predict the future and determine what we did right and what we did or are doing wrong.

Sound familiar?

With the end of the Thanksgiving Holiday, we completed one of the busiest Novembers in several years – and no one is quite sure why.  December, which by contrast has been a strong month the last several years, is poised to continue that trend. (You can check out your neighborhood market trend by clicking here)

Maybe it is the hope that springs eternal or the optimism we all feel at the prospects of a new year. Perhaps it is the deadline mentality, or maybe the break that affords a convenient time to move. Whatever the reason, the sellers that stay on the market through the holidays are generally rewarded with a more highly motivated buyer and the buyers will find more motivated sellers. With interest rates at historic lows (I feel like a broken record every time I say that; but look at the numbers.) everyone wins.

Hope and optimism are supposed to take a front and center position this time of year, regardless of the overall economic climate or our personal situations – tragedies excepted. Last year at this time we were on the verge of losing our oldest cat; but we made the most of it. Some of you may recall that when I asked Cleo to stay with us through the holidays she obliged before finally succombing on  January 4th of this year.

That cat did a lot to refresh two valuable mindsets for me: the courage to face any situation and the confidence to do whatever I set out to do. Those are two important mindsets to have reinforced.

However it wasn’t surprising  that as 2011 unfolded it was two old emotions that continued to dominate the marketplace: fear and greed.

For the better part of a decade greed overcame one segment of the market and fear the other. Builders, developers, sellers, mortgage brokers and yes Realtors, all got swept away in a bubble of excitement. At the same time on the other side of real estate transactions were buyers fearful that someone would beat them to the punch. Often these buyers were willing to pay a premium to secure one of a limited number of homes.

And now the tables have turned.

With more homes for sale, many in a distressed state, and fewer buyers confident and qualified to search, the principles have exchanged emotions.

Sellers are in fear mode – afraid of the market and buyers in general. “I am not going to give my house away.” or  ”They are not going to steal my house.”

Buyers on the other hand are of a mindset to negotiate even the fairest priced of homes.

The result is that sellers price to negotiate and buyers wait for prices to fall. For several years now I have been told “we don’t have to sell,” or “we are going to wait for the right buyer.” In every case the seller fails to get the best price in the shortest time and they are all still holding on or holding out, or they have taken a significant hit that they didn’t have to.

What I learned this year is that it doesn’t have to be that way. In contrast to the sellers listed above, every seller that listened to us and followed our instructions throughout the process, got great results. Their homes were sold and sold quickly and they got a good price.

So, for those of you who are looking or will be looking to sell in 2012 here is my guarantee to you – “I guarantee if you listen and follow our instructions you will sell your home quickly and for the best price – no exceptions.

If you fall into this category now is the time to get ready. It is time to contact us and set up a consultation to find out what it will take to sell in this market. Buyers are starting to understand the value of historically low interest rates and how fleeting they might be. The smart ones won’t risk aiting until Spring.

Now is the time!

Happy Holidays – Best wishes for The New Year of 2012

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After driving virtually all night Friday, from just outside of Manhattan to our home base in Richmond, my wife and I caught a late morning brunch Saturday at The Grill at Patterson and Libbie. That is where we first heard of this “Small Business Saturday,” from our server Jordan.

Now this is a long overdue concept. (If it was done in the past I certainly wasn’t aware of  it.) But just one day?

For those not familiar with the promotion or if you were out-of-town over the weekend, last Saturday in addition to the big UVA – VPI game, the second biggest event in the area was “Small Business Saturday.” This promotion is designed to encourage consumers to support independent businesses, instead of or at least in addition to the “Black Friday,” “Cyber Monday,” big box behemoths. I mean do you really need another 40 inch television set?

Isn’t the support of small businesses something we should do on a regular basis? The great thing about supporting small businesses is the relationships you can build. Whether it is Jim at the Pleasants on Ridge, or Kate at Tweed,  a gift and home accent store across from Short Pump Town Center, there is a seemingly limitless number of local business people you can feel good about supporting. 

No one I have talked to is confident in the ability of our leaders to have the stones to do the things necessary to get us out of this downward spiral. So lets just do what our ancestors have always done – take matters into our own hands.

A great way to start is by supporting the local guys and gals this holiday season. Here are some tips for making the most of your holiday shopping time.

1. Create your own small business day with friends and family. You can shop together or separately and then meet for lunch or dinner or drinks and compare notes
2. Do your homework  – Even the smallest of business owners have a web presence in this day and age. If you can’t find information about the shop you are interested in call them and let them direct you. There may even be a catalogue they can send you. By doing even a little research beforehand you can make your shopping and patronage more efficient. Perhaps divide duties between members of your shopping party.
3. Meet the manager – I have found that the big box stores will do everything possible to keep you away from the manager. The independent shops or even franchises or much more likely to have a manager or even the owner present especially during regular business hours or high traffic times. The job of these people is to grow the business not manage a high number of employees just collecting a paycheck. Don’t you think a store owner would love to build a relationship with you? Absolutely – the managers too.  You can always talk to the manager at Pf Changs or Popkin Tavern.
4. Use Facebook to promote your favorites. Facebook has done a full infiltration of even the smallest of businesses.  If you have had a good experience with a local business visit their Facebook page and like it.
5. Get on the e-mail or mailing lists. If you have favorite stores and restaurants you should ask to get on their mailing or email lists for sales notifications and coupons or discounts. I can’t be the only person in town shredding catalogue covers I never asked for, from stores I never heard of or will ever buy anything from. Wouldn’t it makes sense to receive correspondence from businesses you like and support?
6. Share your experience.  Pay it forward. When you have good experience with a local business share it on your blog or post it on your Facebook wall or google plus pages.
7. Schedule a holiday gathering. Many of our local restaurants and clubs will provide their space for free for your holiday gatherings. You just pay for the food and drink. This can also be a great way for several local businesses to get together and promote each other and split the cost. 

Supporting local businesses is a great way to insulate your community from whatever the worst case scenario might be going forward. Public companies do everything possible to provide their shareholders with a ROI (return on investment.) In essence we are all shareholders for the towns, or even neighborhoods we live in – we should do everything possible to support the businesses that enable our towns to survive and thrive.

Have a great week! 

 

 

In 1987 James Michener published a well researched, somehwat controversial narrative of sports in America entitled – of course - “Sports In America.”

As a producer and director of live television sports at the time, it was a must read for me and in fact an eye opening read. I remember being shocked at Mr Michener’s assertions that “Drugs, violence, and the corrupting effects of money and fame” were facilitating a “crisis in American sports.” Go figure

I discounted these charges as the work of an “anti-sports intellectual.” I stand corrected.

Flash forward nearly a quarter of a century later to the Sunday September 25th, 2011 National Football League (NFL) contest between the Philadelphia Eagles and New York “Football” Giants ending in a Giants victory.

Following the game, the Eagles mercurial quarterback Mike Vick provided post game reaction that was puzzling to me and apparently many others.

In the interest of full disclosure, I am an animal lover. It is impossible to be an animal lover and a Vick fan.  I was a Vick fan until the shocking revelation that he was bankrolling and participating in a dog fighting ring with family and friends in western Virginia.

Most everyone knows Vick was convicted and sent to jail for a brief time and now has been welcomed back to the NFL with a 100 million dollar contract from the Eagles and a lucrative endorsement contract from Nike the former shoe company turned athlete pimp.

Prior to his recent windfall, Vick was in some financial difficulty. In essence what Nike and the Eagles did was bail him out. (Sound familiar) It is not my intention to launch a vendetta.  For his part Vick is just another in a long line of high profile athletes, public figures, institutions and corporations that get a free pass when they mess up.

He is so oblivious to his good fortune that he had the audacity to blame the officials following the loss to the Giants.  (Then he led his team to a third defeat in four games the following Sunday.)

Vick has made poor decisions on and off the field. Its the egregious nature of his crimes that have brought me to this -point.  He watched and perhaps even participated in the MUTILATION of defenseless animals. His punishment was a couple of years in jail and a 100 million dollar contract. What kind of message is this.These are not victim-less crimes he was found guilty of. To have the audacity to complain about his situation – just sent me over the edge.

In hindsight, Michener’s book has validated the axiom “Sports is a microcosm of life.”  Whether it is wall street, banks, car companies athletes or even homeowners our culture has clearly passed into a bailout state.  (Its only the home owners who have consequences stemming from their bailout.)

I just hope for all of our sakes the next phase isn’t chaos.

Remember several years ago when we scoffed at the unruliness of British Soccer fans. We would never behave that way. Yet, earlier this year a father taking his kids to a baseball game was attacked in the parking lot. Brian Stow ventured outside this week for the first time in 6 months.

The sports microcosm doesn’t look real promising right now; but I know we are better than this.

Eventually Karma catches up with us.  It restores order. I am a believer in Karma.

Rest In Peace doggies

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Ok….everything up till now has been a dress rehearsal. Talk2 foss was in essence an invisible blog.

THANK GOD!

It sucked.

The reason I know this is some “20 something” from my FORMER blog host called me from Washington state to tell me so.

So Emily in Washington state – this post is for you – I hope you like it!

This morning I completed day 8 of P90X. For those who haven’t heard of it, this is the latest, greatest, workout craze. There is nothing cooler than walking around telling people you’re doing “P90X.”

Funny thing though, I have found a common thread with everyone I have talked to who has done it – they all quit. Some maybe made it through 90 days and then quit. Some have started multiple times. Most haven’t finished the 90 day part. I can only guess they tried to do it by the book. I believe this is a mistake for most.

When you tell someone familiar with the program that you are in the midst of it they all ask the same question.

“Are you hurting?”

I guess the “P” stands for – Pain.  As for me,  I was in enough pain before we started the program. That’s one of the reasons why I started.  It doesn’t seem like there is more pain now than before, so for me it is a non-issue.

My goal is to get to day 90 and beyond making exercise a part of my daily routine.  I just want to get back in shape and get more flexible for golf – and other things.

If doing fewer reps, using lighter weights, and drinking coffee instead of water, means less pain – well thats fine with me.

These are my terms.

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