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Home Price Update For Virginia

Home prices in Virginia have been up by double-digit rates—or close to it—for ten consecutive months.   According to Lisa Sturtevant, Chief Economist of the Virginia Association of Realtors, in May, the median home sales price in Virginia was $367,000 which was up 16.6% compared to the median sales price a year ago. The pace of sales growth this year has been much faster than in recent years, fueled by strong demand, favorable mortgage rates, and low inventory.

Strong Prices Across All Regions

There has been phenomenal price growth in all regions across Virginia. So far, for sales in 2021, the median statewide home price is 13.2% higher than it was during the same period in 2020. The strongest price growth in 2021 has been in some of the state’s smaller markets. For example, the year-to-date median price in the Eastern region is up 25.7%. In the Southside region, prices are 24.2% higher in 2021 compared to 2020.

There has been double-digit price growth in all areas of the commonwealth, including the state’s largest and highest-cost markets. The median price in Northern Virginia climbed 11.9% in the first five months of 2021. Prices are up 15.0% in the Central Virginia region and are 11.1% higher in the Hampton Roads region.

Prices Growing More than Twice as Fast as in Recent Years

In most markets, home prices are growing more than twice as fast as they have in more typical years. Between 2016 and 2021, for example, the median sales price statewide increased by 6.2% on an annual basis. Over the past eight years, since 2013, annual price growth averaged just 4.6% in Virginia.

Price Growth Will Likely Slow

Recent trends in home prices suggest that this past year has, indeed, been extraordinary. While price growth will remain strong throughout 2021 and into 2022, it is likely that the pace of home price appreciation will slow as demand softens, mortgage rates tick up, and inventory expands.

Virginia REALTORS® will release its economic and housing market forecasts later this year, at the 2021 Annual Convention. Several national organizations are forecasting above-average home price growth through 2021, although there is evidence of a slow down in appreciation in 2022. Only the Mortgage Bankers Association (MBA) is predicting a price drop in 2022. The vast majority of economists, however, expect prices to continue to rise.

 

 

 

How Much Money Should I Save To Buy A Charlottesville VA House?

As a prospective homeowner, it is likely that you already have a dream home in mind. You may already have a checklist of all the features that you need the house to have. The more elaborate your checklist, the more expensive your dream home will be.

If you want to buy a home in Charlottesville, VA, you might be wondering how much you’ll need to save up. It all depends on you, and the type of home that you’re looking at buying. There are quite a few things that could make the house you want to buy expensive. The more expensive it is, the more you will need to save.

This article will explain the cost of the average home in Charlottesville, VA and how much you might need to save to buy one.

Charlottesville Country Homes

What Are Property Values Like in Charlottesville, VA?

For those looking to buy a home in this city, they have to know how much they’d be likely to spend. The median price for a home is about $355,000. Of course, there will also be plenty of homes below and above this price. 

For instance, over 50% of homes available in Charlottesville cost between $250,000 and $500,000. As prices go higher or lower than that range, the number of available homes decreases. But even if you are looking for seven figure homes, you will find a good selection in Charlottesville.

Top Real Estate Agents in Charlottesville, VA

You’ll also find many three-bedroom homes here, followed by two-bedroom houses. If you need even more space, then four-bedroom houses make up 16% of homes in the city.

Since the year 2000, homes in this city have appreciated 134.5%. This is about 4% every year, on average. This is something to consider for those who are planning to buy a home for investment purposes. Over the last ten years alone, the appreciation rate has been about 40%. This is in the top 30% in the nation.

Speaking of investments, you may want to buy a home as a rental property. Charlottesville, VA, is a great location to consider if that is the case. The average rent goes for about $1,700 every month, and about 60% of residents are renters.

Top Real Estate Agents in Charlottesville, VA

How Much Money Should I Save to Buy a Home in Charlottesville, VA?

If you have the cash to buy a home, it is always best to do it outright. This is not an option for most people, which is why they turn to their banks to finance the sale. By getting a mortgage, most people can become homeowners.

You will always need to pay a down payment on the house, even with a mortgage. The percentage of the total house price for the down payment varies. Many people use 20% as a rule of thumb. It can be lower than this, but it is unlikely to be higher. This makes it a good benchmark to use. If the house you decide to buy costs $500,000, you will have to have $100,000 saved up.

To always be on the safe side, ensure you have 20% of the total put aside. If you manage to get a smaller percentage on your down payment, that’s a definite bonus. You can put this extra cash to use if needed, especially if you might need to make some repairs.

Horse Farms for Sale in Central VA

What Factors Can Make a Home More Expensive in Charlottesville, VA?

When looking for a home in Charlottesville, VA, some things can make a house more expensive. You should have these in mind and keep your wallet at the ready. Especially if you want a five-bedroom estate or something like that!

Just because you can afford a house that large doesn’t mean that it is a good idea. Look at your monthly income and make sure that the mortgage won’t take too much of a hit on that. You are going to be paying it off for decades. You should go for a mortgage that is comfortable and won’t leave a serious dent each month.

Charlottesville Country Homes

Here are the factors which increase the value of a home:

  1. The size. This might be the most important consideration when looking for a home. The square footage of the property has a large effect on how much it will cost. This doesn’t refer to the house alone, but the entire lot. There are homes in Charlottesville, VA, that belong to golf communities or have farm space. All that extra land is sure to drive up the listing price. If this is what you want, make sure that you prepare for it. Homes like these are beautiful!
  2. The neighborhood. Charlottesville, VA, is a city and there are many neighborhoods within it. These areas can differ quite a bit and this can show on the average price for homes. Ivy is one of the more expensive neighborhoods in Charlottesville. In fact, it is one of the more expensive neighborhoods in the country. The median price for a home here is $790,000. This shows how important it is to select a neighborhood wisely.
  3. The year of construction. Simply put, the newer a home, the more expensive it is likely to be. The reason for this is rather straightforward. A lot of things in the house will be less likely to break down! Some of the most important parts of a home are the most expensive to fix. This includes the plumbing, wiring, and roof. If any of these get damaged, it will cost a lot of money to fix. A newer house is a sort of guarantee that these parts of the structure will last longer. Buying an older house for cheaper saves you some money you might need for fixes.

To summarize everything, you should aim for a house which you can afford comfortably. The amount of usable space, the area, and how old the house is, affect the price.

Whatever the price might be, have 20% of it on the ready. This will help avoid any disappointments you might encounter. Nobody wants to miss out on the house of their dreams.

Before you make any of these steps, you need to find the house of your dreams. If Charlottesville, VA, is your destination, Pam Dent, Realtor®, is the one. She’ll find you the best options to fit your needs. Call her at 434-960-0161 to get started now!

4053 Free Union Rd

NOW SOLD BUT WE HAVE OTHERS

Delightful 3-bedroom home in popular Free Union tucked away on 2.5 private acres with a picturesque pond. The warm and inviting home is instantly appealing and offers a convenient kitchen with granite counters with a cozy adjoining family room with gas fireplace. The light filled dining room is a gorgeous setting for special family dinners. The casually elegant living room is graced with a gas fireplace and built-ins. There is also an office opening onto the large screened porch which could be a main floor bedroom with a full bath beside it.


You can wake up in the sunny upstairs primary bedroom which has a private balcony. There are also two additional bedrooms on this level and a third full bath, as well as another upstairs deck, and a separate storage room over the two car garage. This is the perfect full time residence in the Western Albemarle school district or refuge from the bustle of the city..

Below is an aerial map of the approximate boundaries of the 2.5 acre property.

Below is a Google map of the property. You can click/drag/zoom to explore the area.

Gorgeous Home In Cascadia Neighborhood

NOW SOLD, BUT WE HAVE OTHERS

Move-in ready opportunity in popular convenient Cascadia located a short walk to Darden Towe Park and minutes from downtown Charlottesville. The spacious 4-bedroom 3.5-bath home features an open floorplan, plank floors throughout the main level, gourmet kitchen with granite counters, stainless appliances, gas cooktop, double oven, and formal dining room.

Upstairs, the generous sized owners bedroom is a luxurious haven with a tray ceiling and attached spa bath with double vanities, garden tub and walk-in shower. There are 3 additional bedrooms and another full bath upstairs. Front and rear decks both offer mountain views.
The huge finished family room on the walk-out terrace level has many possibilities, and there’s a 3rd full bath on the terrace level as well.   The Cascadia neighborhood has a community pool, playground, and clubhouse.

PROPERTY FEATURES LIST

Below is a Google map. You can click and drag to explore the area

TOUR THE CASCADIA NEIGHBORHOOD BELOW

Is Buying A Home in Charlottesville, VA a Good Investment?

To consider a home a good investment, you need to know what you plan to do with it, as well as where to buy it. In Charlottesville, VA, buying a home can be a good investment. With Charlottesville country homes, there often is open land which may increase in value along with the house itself. Mark Twain is quoted as saying “buy land, they aren’t making more of it”. The fact that there is a finite amount of land, makes these homes a great asset if you need a smart place to put your money.

There are many reasons why you might be buying a home in Charlottesville, VA. You might want a home to live in with your family, or a retirement house. Others might be looking for a place with space to start a farm or raise horses. Charlottesville horse properties are always in demand. Yet, some people want to buy a home only as an investment. They may either be aiming to make a profit in the short-term, or years in the future.

Luckily, there are multiple ways to make money off of a home. Unlike how it might seem, investing in a home isn’t as easy as buying it and selling it years later. While value tends to be secure in a home, it does not necessarily increase. If you know what you are doing, investing in a Charlottesville, VA home will be easy. This article is here to tell you more on investing in Central Virginia country properties.

Central Virginia Country Properties

How to Make a Home a Good Investment in Charlottesville, VA

Real estate is a very complex domain. Ensuring that a home is a good investment requires more than just buying and selling. It requires patience, energy, time, and sometimes more money. Regardless of this, if you put in the effort, it’s possible to reap returns on a property. Here are some of the main ways to invest in a home in Charlottesville, VA.

1.Buying to sell later. The many Charlottesville equestrian estates in the area are perfect for investment. The open land offers the possibility for a variety of agricultural ventures.  This could be a farm for horses, a vineyard, or a sustainable family farm, and you can add barns and agricultural buildings. Many of our local horse farms are perfect for an equestrian business.  Owners can also choose to leave the property vacant, but the potential is still there. As a result of this, holding on to a property and selling it in a few years in a strong economy is likely to bring profit. With this form of investment, accumulating a profit will take several years. One major advantage is that the seller can live in the home during this period. As long as the house is well-maintained and the land is cared for, then selling value will likely stay intact.

Charlottesville Equestrian Estates

2.Buying a rental property. In 2017, there were 43 million rental households in the United States. At any time, in Charlottesville, there will never be a dearth of potential tenants, particularly due to the University of Virginia and the University of Virginia Hospital. Many people cannot afford a home of their own, so they must rent one. For others, they see renting as a short-term alternative to buying a house. Regardless of the reason, it remains true that renters are almost always available for a well-located house. By buying rental property in Charlottesville, VA, it is possible to get consistent returns. There are two ways to approach purchasing a rental home in Charlottesville, VA:

  • Leave the mortgage to the tenants. By buying the house with a mortgage, you are in debt to the lender. Apart from the usual 30% paid upfront, you won’t have to pull anything else out of your wallet. This means that without much monetary commitment, your tenants will pay every month. Of course, most of their rent will go towards paying the mortgage. But, you can always ensure that there is a nice profit on top of the rent for you.

  • Pay off the house in full. This option is a bit more limited, as not everyone will be able to do this. When the house is paid off in full, there is more safety for the homeowner. The house is theirs, and there is no risk of foreclosure if tenants default on payment. Yet, it will take years for them to recoup the value of their investment. This option is better suited for individuals who don’t mind the long-term investment.

3.Buying a property to flip. If you ever find a good deal on a Charlottesville, VA home that needs extensive repairs, go for it. These kinds of properties are perfect for flipping, particularly when the majority of the repairs are cosmetic and not structural. When a seller knows that the home is in a state of disrepair or neglect, the value of the house gets discounted.

By purchasing the home and making repairs, it can often be sold at a significant profit. The house does not have to be in a bad state either. A house that is old or outdated can also get flipped. Such a house will likely get sold at a lower price due to its age. By renovating the structure to a more modern standard, you can add to the asking price. Flipping requires effort, time, and money, but can be profitable in the short-term, particularly if you are able to make some of the renovations yourself and do not mind some “sweat equity”.

Charlottesville Country Properties

How to Get the Best Value out of Your Investment Property

The goal of an investment is to reap a profit. The expectation is that you will try your best to maximize the profit that you get. With any luck and a few simple things in mind, you won’t leave money on the table.

  • Keep the property well-maintained. When you neglect a home, it begins to show. Few people want to buy a house that looks like it is falling apart. It is important to keep not only the building itself looking good but the land around it as well. Neglected land is not attractive to a potential buyer.  Curb appeal matters.

  • Upgrade if needed. This applies to any path of investment chosen for your Charlottesville, VA, house. By making sure the house is up to date, you will earn more money from outright selling or rentals. Replace outdated utilities like pipes and electricals. Also, consider upgrades for energy efficiency or towards achieving a smart home. Be careful about what you upgrade, though. Not everything will add significant value.

  • Get an expert realtor. Many people want to keep all the profits to themselves, so they work alone. This can be stressful, time-consuming, and may not be worth the money ‘saved’. By getting a realtor, everything moves more smoothly. This applies to sales of property and finding renters. They can also assist you with a location-specific valuation that gets you the best price.

Charlottesville country properties are good choices for investment. To ensure you’re getting the best value you can, it is essential to work with a realtor who knows the area. For Charlottesville, VA, this is someone like Pam Dent, REALTOR.

If you’re on the lookout for investment properties in Charlottesville, you’ve come to the right place. Call Pam Dent, REALTOR, at 434-960-0161 to get started on a home.

What Adds Value to a Charlottesville VA Country Home?

You can add value to your country home in Charlottesville by emphasizing the advantages of rural life. The peace of rural areas is important to many people, however having good roads for access to urban areas is a boost. Adequate space for horses and other animals adds value too. The quality of the home and improvements should be optimal. While many appreciate a rustic appearance, modern amenities hold value indoors.

Selling homes in an urban area may be easier than in rural areas. This boils down to more people living in urban areas, thus a larger buyer pool. Modernity appeals to many people. For some folks, though, they want to be among nature, with peace and quiet. For these people, homes in the country are their first choice.

Over half of Virginia’s landmass is rural. There are also over 1 million people living in rural areas in the state. So while urban areas are more populated, rural living is very much in demand. And as a result of the pandemic, an increasing number of people are moving out of the city and into the country. If you’d like to sell your country home in Charlottesville, VA, this is the optimum time to put it on the market.

Before you sell your country house, you want to get as much value as you can. There are things you can do to increase the selling price of your home.

What Can Increase the Value of my Country Home?

Many home improvements can increase the home’s value  beyond the price it costs to get them done. Knowing the appropriate ones can turn a good profit. These range from minor renovations to more considerable additions.

  • Make all repairs: Ensure that all necessary repairs are complete before selling. You may be able to sell a house with a leaky roof, but it’ll take money out of the asking price. If you fix these deficiencies yourself, you won’t leave money on the table. Be sure electricity and water are in perfect working order. All light switches and power outlets should be functional. Don’t forget to make sure all windows and doors open without any issues. Proper repairs enable you to show the house without any worries. You will know there’s nothing you need to be concerned about!  You may even want to have a pre-listing home inspection so that you will know what will be found in a buyer’s inspection and you can take care of those items before your home goes on the market. 
  • Ensure easy access: Even if you don’t like the bustle of cities, being able to get to town easily is important. As much as you stay within rural confines, you will have causes to go to the city occasionally. Buyers coming for house showings will likely arrive from the city too. Private roads leading to your property should be free of any obstacles, well maintained and easy to navigate. Have your mailbox somewhere prominent and well-labeled. Buyers want to know packages can get to them without stress.
  • Get the property looking good: For taking pictures or having a showing, you want the property to look its best. Rural houses can take a lot to maintain, and most buyers know this, but if it looks shabby, they will reconsider whether they should take it on. Don’t add to the work they have to do if they buy. Ensure any grass is freshly mowed, and bushes and trees are presentable. Clean the windows, scrub floorboards, and make the house look pristine. The rustic charm of a country home is one of the major attractions. Take advantage of that, and make it look good before buyers show up. It’s sure to bring more value.
  • Market in the strongest season: You can sell a country home in any season, but you need to know which is optimal. A home in Charlottesville with abundant green is best marketed in spring or summer and don’t forget the display of fall color in the background. That way, the trees and shrubbery are as beautiful as can be! The value of a property is higher when its beauty is evident.
  • Renovate where necessary: If your country home is relatively aged, it may need some renovations. These can bring modern amenities to the home, in both functionality and appearance. Renovating bathrooms and kitchen space is one of the easiest ways to add value. Most buyers won’t want to do that themselves.

What Are Home Improvements That Don’t Add Value?

Adding renovations may seem like a sure way to increase your country home’s value. Unfortunately, that’s not true for the most part. Some home improvements will not do much to improve value. It’s essential to know which ones do, and which don’t. This will prevent you from spending money on non-profitable upgrades.

These improvements may not increase value, but they can seal the deal from prospects.

  • Improving infrastructure: There are many vital parts of a home hidden from sight. This includes water and sewage pipes, as well as electrical wiring. An old house can have older infrastructure in this regard, but upgrading won’t put much money in your pocket. It improves the description of the home, but putting a premium on account of these won’t yield much.  However, if these essential features are not up to date, it could deter a potential buyer from making an offer.
  • Bedroom renovations: A bedroom is a personal space. Putting your own touches on a bedroom to improve the home’s value can prove far from successful. Most buyers will want to design their bedrooms themselves. So doing it for them won’t add more to your asking price.
  • Re-purposing rooms: Changing a spare room into a gym or a theater may seem like a good idea. This is only if the buyer wants exactly that. More often than not, these additions will only frustrate buyers. Sometimes, this means a room that they cannot use. They can re-purpose rooms on their own, if you leave the space for them to decide.  In today’s market, rooms become offices or school rooms.  Buyers will want flexibility.  And with the prevalence of netflicks and streaming, home theaters are no longer popular.
  • Swimming pools: Pools can be fun to have, that’s a fact. Unfortunately, installing one is costly, and so is maintaining one. A home with a pre-existing pool can be a tough sell due to maintenance costs, and many buyers consider a pool to be a lot of extra work. There are also safety issues, particularly for families with children. Don’t expect a pool to add value for every buyer. 

In the end, these are a few of the elements that can add value to your home. Some are quick to put in place, and others may take some time to complete. Don’t forget decluttering and staging which are both inexpensive ways to add value to your home. It’s important to be practical and consider all the factors when planning to sell. Getting a fantastic agent makes selling a breeze. Pricing, location, and the house itself can determine which improvements you should consider.

In Charlottesville, VA, you’ll want to get an agent familiar with the area and with country homes. This way, you’ll get the greatest value, and a sale before you know it.

Don’t hesitate if you have a country home that you want to sell. Call up Pam Dent, Realtor, at 434-960-0161. Not only will she help you maximize value and get the most profit. She’ll make sure you have your country house sold before you can imagine.

Autumn 2020 Real Estate Forecast

It continues to be an interesting year, and today’s real estate market is no different.   In Central Virginia, we are seeing the spring market in the fall, with strong sales continuing due to pent up demand.   At the current purchase rate, there is about a 3 month’s supply of inventory in the Charlottesville area.   A 6 months supply is considered a Balanced market and below that number is a Seller’s market.   As you can see, we are in a strong seller’s market.

LOCAL HOUSING TRENDS

The move to the suburbs is real and in our Charlottesville area the counties of Nelson, Louisa and Buckingham saw an increased number of sales in July of 2020 as compared to July 2019.   As a result of the pandemic, we saw a shift of more people moving out of cities across the country.   Many people are working from home and even as we recover, many will continue to work from home. This shift also has changed how we live in our homes.  New home sizes had been falling for the past 4-5 years, but we are now seeing an increase in home size.

NATIONAL HOUSING TRENDS

I had the opportunity to listen to Dr Robert Dietz, economist for The National Association of Home Builders, speak last week.   According to Dr Dietz, the latest prediction is calling for a 2-year period for economic recovery, and housing is leading this recovery with 16% of GDP.

FINANCING AND PRICING

We are also seeing gains for mortgage purchase applications.   However, increased Refinance activity due to the low interest rates helps keep inventory low as more people are staying in their homes and remodeling instead of selling.   Due to the low inventory and high demand, we are seeing prices up by about 3%.

NEW CONSTRUCTION IMPACT

Since there is a shortage of resale homes coming onto the market, it will be necessary to have a strong new construction industry.   However, there are several headwinds for new construction.   Until there is a vaccine or treatment, there is the risk of renewed lockdowns.   There continues to be a shortage of skilled construction workers, and although we are seeing an increase in trade schools, training takes time.   There has been a 170% increase in lumber prices since April.   This adds about $16,000-$20,000 to a new build.

GLOBAL IMPACT ON NEW CONSTRUCTION

New home prices and the cost of remodeling will gradually go up as builders go through the current stock of lumber.   Since we get about 1/3 of our lumber from Canada, we will want to watch what happens with the tariff.   Another impact on new construction, is the fact that the global supply chain has been disrupted because of Covid and the natural disasters.   For new construction, you can expect higher prices and delays.

As you can see, there is cause for optimism, but one thing that we have learned this year is that things can change quickly.


 

What Mistakes to Avoid in Selling Your Charlottesville Golf Course Home

Considering selling your home?

If you are planning to put your Charlottesville golf course home up for sale this year, this summer is the best season to do it! The interest rates are still low, and there are many buyers looking to invest in golf communities.

Selling a golf course home requires a different approach than selling a $150,000 home around the corner. You need special knowledge of the local real estate market, intensive knowledge and experience in marketing, and plenty of time to handle the preparation before selling.

Without the right help, you may end up losing money over the sale, instead of gaining a profit from it. And in real estate, this translates to thousands of dollars.

Golf Course Homes for Sale in Charlottesville

To protect yourself from such a big financial loss, here are 4 major mistakes sellers of golf course homes in Charlottesville make, and what you should to do avoid them.

  1. Overpricing. By far, the most serious mistake in home selling is listing your home and pricing it far beyond its market value. You have to remember that buyers check and research online about your home and its history. They know if your home is overpriced, and unless your home has a feature they really love, they will likely move on and look at other golf houses for sale in the area.

Before deciding on how much you’ll sell your home for, do your homework. Look at your comparables and check out the current inventory. List down the improvements you’ve made, and most importantly, seek assistance from a professional real estate agent who is familiar with Charlotte’s real estate.

  1. Not hiring the right agent to help sell your home. While all real estate agents can sell all kinds of homes, most agents specialize in a certain niche. Some prefer to sell luxury homes, others prioritize farm and ranch properties, and then there are those who are adept in selling golf course homes.

You need a Realtor® who has special skills in selling golf course homes because he or she will have a large network of both buyer and listing agents. This makes it easier for her to find the right buyer for your home.

Aside from pricing and resources, your agent also helps in preparing your home for the sale, negotiation, dealing with the mountain of paperwork, and more.

Your agent will be there to assist you from the very beginning to the time of the closing when you pass the keys of your golf course house to its new owners.

  1. Being unwilling to negotiate. Negotiating is a part of any business process. Sellers would like to make a profit from selling their home. Buyers negotiate to get a fair price.

If you are unwilling to negotiate, you run the risk of missing out on those buyers who are willing to buy your home. Worse still, your Virginia golf home might get stuck on the market for months until it goes stale, then you’ll be forced to drop your price and chase the current market pricing.

  1. Failing to give a full disclosure. In the home selling process, you cannot keep a secret forever.

That leak by the attic no one in the family except you knows about? That and more will be discovered by the home inspector sent by the mortgage lender of the home buyers.

When you fail to be upfront and forthcoming, the deal may turn sour, and the buyer may back off from the offer.

Avoid these four seller mistakes and you’ll sell your Charlottesville home on the golf course easily and stress-free.

Find out more information on how to sell your golf course homes here https://www.CharlottesvillegGolfCommunities.com/.

Call me, Pam Dent, at (434) 960-0161. As a Charlottesville Golf Course Specialist, let me help you sell your home at its best price.

In case you can not view this video here, please click the link below to view “What Mistakes to Avoid in Selling Your Charlottesville Golf Course Home” on my YouTube channel: https://www.youtube.com/watch?v=voYjiTBC1_A&feature=youtu.be

☝ Guidelines for Buying a Home in Charlottesville VA

Purchasing a home in Charlottesville, VA is not an easy task. Since home buying involves a huge sum of money, you need to follow certain guidelines and ensure that you make the right decision before you dive in.

When buying a home, it doesn’t really matter whether you are an experienced real estate investor or a first-time homebuyer. Regardless of how many times you have invested in real estate, you need to put a lot of thought into this decision so you can safeguard your finances and avoid future regrets.

Here are some guidelines that you can follow if you are buying a home in Charlottesville:

Know the Type of Home You Can Afford

Since buying a home is a long-term commitment, you need to determine how much you can pay every month. Having to spend years paying your monthly home mortgage is not a joke, so it is imperative that you only get a home that you can afford. As you calculate, include the costs for regular maintenance, insurance and other upgrades that your home may need in the future.

Golf Course Homes for Sale in Charlottesville

Buying a home is one of the most crucial decisions that you will ever make. Not only does this provide a solid foundation for yourself, it also plays a huge role in your financial health.

When you buy a home, you help yourself build your net worth and achieve a level of financial freedom. However if you buy a home that is larger than you can afford, it could eventually become a major burden to you.

Here are some key signs that the house you are planning to buy is something you cannot afford:

It is outside your budget

While this may seem pretty obvious, in reality, you will be stunned at how many homebuyers tend to set a budget and end up going beyond it. There is a reason a budget exists. Going beyond it means you are stretching yourself past where you previously felt financially comfortable, so don’t take the risk of wanting something more than you can actually afford.

Determine your budget by calculating your current income and expenses on a monthly basis. To be safe, add in some cushion in case your expenses rise, but never assume that your income will go up. You also need to factor in how much you want to actually save and invest each month.

You make assumptions about your future income and expenses

Don’t be the kind of person who says, “I’m getting a larger and more expensive house because I will probably make more money in the future.” This thinking is disastrous because there’s a chance you or your spouse may never really get the raise you’re counting on. You may event lose your job entirely!

It is highly unlikely to predict your future income and expenses with real accuracy, so when you budget for a home, take a conservative approach based on your current income. Also, always assume that your expenses will go up if you plan to expand your family. Taking this approach will give you wiggle room to save money and invest in a home.

You are unable to place 20 percent down

Putting a sizable down payment on your dream home presents many key advantages. Aside from doing so will have you borrow less, you also get to start off with a larger piece of equity in your home. It also means lower interest payments overall.

Charlottesville Golf Communities

If you’re not able to save 20 percent for your down payment, then most likely, it will be hard for you to pay for your home in the long run. Rather than jumping into buying, try saving more for a larger down payment.

You have high interest rate

If your bank thinks you are a risky borrower, they are likely to impose high interest rates on you. If you have high debt, a low credit score, or both, you may end up with a higher-than-average interest rate, so your monthly mortgage payment will be higher.

Take a step back and examine why your interest rate is high, because that may be an indication that your finances are not in good shape. It may also mean you are trying to buy a house that is costlier than you can afford.

Your decision is emotion-driven

Say you chance upon a home that is the perfect embodiment of your dream home, but it’s expensive. It is expensive, but it is your dream home.

If you let your emotions to guide your decision, your dream home could end up being your worst nightmare. Remember that buying a home is more of a financial decision than an emotional decision. When you start having trouble making monthly payments after purchasing your expensive dream home, you might not appreciate all its beauty anymore.

You have weird mortgage terms

There are a lot of mortgage products out there, the most common of which is the one in which you place a certain amount of money down and obtain a loan with a fixed interest rate, then pay it back over an agreed period.

There are instances when you may not qualify for a fixed-rate mortgage. When such happens, banks will offer you different loan types. Don’t be lured to purchase a home that you ultimately cannot afford. If you are buying a home with a nontraditional mortgage—or if you do not understand the mortgage terms to begin with—you might take on more house than you can handle.

Your payments are more than 30 percent of your monthly income

Particularly in the U.S., renters and homeowners are advised to pay no more than 30 percent of their income in housing costs. While this is not a requirement or law, it is a helpful guide for determining if you may be overburdened by a mortgage.

If you have an average income, 30 percent is a safe target to stay under. If you have a high income, you may afford to spend more than that.

Obtain Financing

After figuring out how much you can afford to pay every month for your home, the next thing to do is find a lender and obtain financing. You can present to your lenders your credit score, recent tax returns and W-2 forms to verify your finances.

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Find a Reliable Real Estate Agent

The best way to go through the process of home buying is getting an experienced real estate agent to help you every step of the way. Especially if you are a first-time homebuyer and don’t know much about real estate investments, an agent can help you determine which communities have homes that suit your needs and can provide you with everything that you need to know about the homebuying process.

Whether this is your first real estate transaction or you are a veteran in real estate, having the right real estate agent is key to a smooth process. With millions of agents in the U.S. alone, however, how do you find the right agent for you?

The easiest way is by asking your friends and family for referrals in your area. Take into consideration their experiences and see if their names come up online. You can also check out reviews about those agents and go over these absolutely essential questions as you make your choice:

How long has she been in the business?

This question may sound basic, but it is crucial. While experience does not necessarily equal success, remember that real estate is a commission-based business and it would be difficult for any agent to survive the industry for a long time if she provides awful service. If an agent has been in the real estate business for many years, then most likely, she has already seen many different situations to be rattled should she encounter difficult clients down the road.

Does she have time for me?

Asking an agent about her average number of clients will also help you determine if she will have time for you should you hire her as your agent. As a potential client, you wouldn’t want to feel as if you’re thrown to the wayside while your agent is busy working with a dozen others.

If your agent is working with a high volume of clients, find out how she plans to remedy the situation should you hire her. If she has other team members who can help you, then that’s better.

Which specific areas does she cover?

As you look for an agent, you will likely encounter ones who are neighborhood experts and others who travel halfway across the country to find clients. If you want the best agent, find someone in the middle. Just because an agent covers an entire state doesn’t mean she has an intimate knowledge of all its local markets.

Is she part of a team?

While working with a team can have many benefits, you must clarify from the get-go the relationship you will have with the other members of the team. There will always be one who has more intimate knowledge of specific situations than another, so it’s better if you know if there’s a specific agent to work with you throughout the transaction or if you are going to meet with different people at different times.

Is she equipped to handle my unique situation?

Whether you are a long-time investor, a house flipper, first-time homebuyer, or seller, you will always encounter unique scenarios where you will need the assistance of an experienced real estate agent. Don’t just settle for someone who answers your question with, “Don’t worry, I’ve dealt with this before.” Instead, as the agent how specifically you are going to resolve and handle unique situations.

What type of communication do I expect from her?

At this point, you may have already noticed if you and your potential agent understand how each other communications. This is where you should set expectations for how often she needs to update you, the best communication methods to use, and how she’s going to keep you in the loop. Your agent’s priority must be what makes you feel most comfortable as her client.

Does she have a recommended vendors list?

You will know how experienced an agent is if she has a recommended vendors list. If she’s been in the business for a long time, she will have already developed trusted relationships with other industry professionals, from lenders and title companies to contractors and inspectors. She must be able to refer you to different sources who can assist you with your different needs during the process.

Search for Charlottesville Homes for Sale

If you want to find a home in Charlottesville golf communities, you can search all the available homes in the area and look for the one that meets your lifestyle and budget. Once you have found the home of your choice and have already decided to buy it, make an offer right away. Within 10 days after your offer gets accepted, order a home inspection.

Have an Appraiser Visit the Property

You can never underestimate the role of an appraiser in the home buying process. Appraising the property is a crucial part of the financing process because it is where the appraiser determines the fair market value of the property.

Have a Final Walk-Through of the Home

Before closing the deal with the seller, take a final visit to the property and make sure that it’s still in the same condition as when you made the offer to buy it. Have your real estate agent accompany you on this final walk-through so he can answer your queries.

Home for Sale in Charlottesville VA

Close the Deal

As you close the deal, the other party will present all the closing documents for your review and signature. Make sure that you understand everything that’s written on these documents before signing. If you have questions, feel free to ask so you know all the details before moving into your new home.

While it is true that home buying is a truckload of work, you don’t necessarily have to stress yourself with everything. If you get the right real estate agent, you will be able to save time and money as you go through the process.

Contact me today at 434-960-0161 and let’s talk! I am Pam Dent, Charlottesville’s top Realtor®. Let me make this whole thing as easy as possible for you.

In case you can not view this video here, please click the link below to view Guidelines for Buying a Home in Charlottesville VA on my YouTube channel: https://www.youtube.com/watch?v=1QyxrtYRWEY&feature=youtu.be

SOLD! 2343 Hartland Ct, Charlottesville, VA 22911

Stephen Fuller designed brick home professionally landscaped on a 2-acre lot in Bentivar. All the right spaces featuring 2 family rooms w/ stone masonry fireplaces, gourmet custom kitchen w/ Kenmore Pro double wall oven, new fridge, glass tile backsplash and walk-in pantry. Casual breakfast area off kitchen and perfect formal living/dining. Large bay windows and tray ceiling in Master bedroom and 3 additional bedrooms upstairs. More living space terrace level. Exceptionally decorated and maintained.

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Contact Pam

Pam Dent
Phone: (434) 960-0161
Email: [email protected]
Gayle Harvey Real Estate Inc.
198 Spotnap Rd, #C-5,
Charlottesville, VA 22911


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