Fear vs. Control

The real estate market for 2009 has people exhibiting new behaviors. Many people are perplexed as how to best navigate in this adjusting market and we have found that some are operating from a stance of fear - rather than a stance of control. As we all know, information is power so whether you are looking to buy or sell, you must rethink your steps and consider the following:

Do you currently own a home?

Will you need to sell your home in order to trade up or down?

Do you have equity in your house and how much?

Can you qualify for a bridge loan?

Could you carry two mortgages and for how long?

These are all valid questions to ask yourself and to discuss with your realtor before you set out to purchase or sell a home.

For the past six years if you were considering purchasing a new home, you may have gone “shopping” for a new house, successfully negotiated a contract and then listed your house for sale. You weren't fearful about selling your home because real estate was exchanging at a rapid pace. Now that the market has adjusted, and homes are selling at a considerably slower, yet more normal pace, you may have lost your confidence. Now is the time to attack your fear and reposition your expectations.

Instead of “purchasing first”, consider placing your home on the market in combination with your search for a new home. It will allow you to obtain the pertinent information regarding the true value of your home as well as help you get a better handle on the net proceeds from the sale of your house. Because homes are taking longer to sell, you will most likely have the time to find a new home before you must move. There are several terms and conditions that can be added to a purchase contract to protect you during this period of transition. More importantly, selling first and buying later just might remove the knot in your stomach over the question, "What if I can't sell my house?" Remember all houses sell, so arm yourself with the current information so you can make an educated decision.

The current market is tricky...and your position will be stronger the more you control the process! Do not get caught up in the fear. Plan ahead and realize that real estate will always trade because families will outgrow their current home, people will relocate and empty nesters will no longer need the “big house”. Get in front of your anxiety and drive yourself into a new home!

Evaluating Home Improvement Projects

Recently, we have had several clients ask for our opinion about making improvements to their houses. These projects have ranged from converting an attic to a finished bedroom to enclosing a porch to enlarge a family room. You may be faced with a similar dilemma and wondering if you will see a return on your investment. As you ponder your project in these challenging economic conditions, consider the following:

How long have you lived in your current house and how long do you intend to remain there? With the recent downturn in the real estate market, you must make sure that the cost of your project and the subsequent resale value of your home does not outpace the current real estate market.

Are your improvements in keeping with the other homes in your neighborhood? Does it make sense to add 1000 sq. ft. to a 1500 sq. ft starter home or should you consider purchasing a larger house in another area where the amenities you desire are already in place? Similarly, while those sleek professional kitchen appliances will surely transform you into the next Food Network TV star, will your prospective buyer be willing to pay for those upgrades or have you "overimproved" your kitchen for your current neighborhood?

Will the project add any livable square footage to your house? Adding space is an easy way to add value to your house. However, keep in mind that an appraiser does not assign the same value to the square footage in a basement as the square footage on the first or second floor.

Is there a way to update my house so that it is more attractive for resale but won't "break the bank"? If you aren't planning to live in your house for the long term and simply want to improve your surroundings for personal enjoyment, there are a myriad of things you can do to give your home a face lift. New appliances, new light fixtures, a fresh coat of paint and new cabinet hardware can transform an outdated bathroom or kitchen without depleting your nest egg!

Support your City & Shop Local

With the economy being so shaky and many retailers threatening to go out of business, I decided that I wanted to support my local retailers and shop local. I did not buy one present over the internet and I made a conscious effort to find trinkets and gifts from our many unique boutiques! If you have not ventured into the shops I mention below ….you are missing out! Take a morning off and check out the local goods. I found great ornaments and stocking stuffers at Tinkers, trendy Michael Stars shirts at The Phoenix, men’s bright & preppy ties at Peter Blair, knickknacks that smack, pop, smell & smoke at World of Mirth, great imported wines at recession prices at River City Cellars and of course my “J-Lo” necklace was bought at Coplons!

It was a great Christmas and it felt good to help our local entrepreneurs. I hope this encourages you to do so too! Happy New Year.

The Bow Tie Cinemas

I am a movie girl. I love going to the movies – everything from summer blockbusters to small independent films. My perfect date night is – you guessed it, dinner and a movie. As a teenager, I spent many weekends at the nearby Ridge Cinema, a beloved 7 screen theatre that existed where you will now find a large Kroger. I saw Grease seven times there, scared myself silly at Halloween and remember thinking “What is the Rocky Horror Picture Show and why do they show it every weekend at midnight?”

Sadly, the Ridge Cinema closed about 7 years ago and there are only 2 neighborhood theaters in the City of Richmond. The Westhampton Theatre on Grove Avenue and the Byrd in Carytown. These are both wonderful, iconic theaters that are very special in their own right – the first showing great independent and foreign films and the other offering the cheapest date night with $2 ticket prices for second-run movies. But if you want to see the latest Harry Potter or Bond movie on opening weekend, then you might have to drive for 15-20 minutes to Short Pump, Glen Allen or Chesterfield if you live in the city.

So I am thrilled – (perhaps slightly giddy with anticipation) for the opening of the new 17-screen multiplex, Movieland at Boulevard Square, in February 2009. As a city dweller and movie enthusiast, I cannot believe that our city has endured more than a decade without a genuine multiplex. And I love the location on Boulevard and Leigh – so centrally located for city residents yet its proximity to both I64 and I95 might just encourage a few suburbanites to come into the city for -- you guessed it, dinner and a movie!

About Us

JILL: As a lifelong Richmonder, I remember the days when the “new” mall in town was Regency Square, the Landmark Theatre was called the Mosque and attracted the likes of both Dave Matthews and Frank Sinatra and it was cool to hang out with your friends on a Saturday shopping and eating lunch at 6th Street Marketplace. I can now appreciate the wonderful quality of life that Richmond offers for raising a family, and how its close proximity to the mountains, beach, and the nation’s capital allow for spontaneous local adventures. I love our city’s history but relish the efforts made to push forward with the rejuvenation of the riverfront district and the Broad Street corridor, the expansion of VCU and the BioTech park and appreciate how the surrounding counties enhance our lives on a daily basis.

MARY: I’m a native of Savannah, GA, but I have spent many years living and working in New York, NY, Columbus, Ohio, Jacksonville, Florida and Roanoke, VA. I feel that I bring a newcomers perspective and I love sharing the many architecturally distinctive and interesting communities that Richmond has to offer. Before making a decision on location, let’s explore and find the neighborhood that best fits your lifestyle….that’s what I did!
I currently live in the Fan and love the urban-feel. Walking my kids to school or strolling to Kuba Kuba for dinner is a luxury that I choose not to give up. My kids have a “posse” of friends and love the immediate play dates that our close-knit neighborhood offers. If you like the outdoors and are looking for things to do with your family- check out the exercise course at Byrd Park or trek across the James River to Belle Isle for a picnic or swim in the James. And if that’s not exciting enough…drive to Charles City for a civil war re-enactment complete with costumes and camping!