Author: Gretchen Tipps

Real estate consumers are realizing that there has rarely been a better time to buy a home. In fact, historically low mortgage rates coupled with lower home prices have even sparked bidding competition in markets around the country.

A good home in a solid location may attract ample attention only hours after being listed. Home buyers can make their offers stand out from the rest through one or more of the following strategies:

Price. Obviously, price tends to be the primary consideration for sellers. When you’re competing for a home, to get an edge, think about adding a clause stating that you will beat the highest offer by “x” dollars up to “x” amount. Cash offers can be more attractive to sellers as well. Although sellers will receive their money at closing whether buyers pay with cash or take out a loan, cash offers don’t require lender approval.

Financing. It’s not enough to be pre-qualified. Pre-qualification only tells how much you can afford. Pre-approval goes a step further. Your lender will thoroughly evaluate your application—including verifying employment information and financial disposition—then clear you for a loan of a determined amount. Having your loan pre-approved gives you a sizeable advantage by putting you on equal footing with cash buyers.

Good Faith Deposit. Buyers offering a larger-than-customary amount of “earnest money,” a deposit that accompanies an offer, may get a seller’s attention. By committing more money up front, buyers demonstrate greater sincerity and motivation to close the transaction. Your real estate professional can guide you as to the appropriate sum for your specific transaction.

Contingencies. Consider minimizing contingencies, those clauses that allow buyers to back out of a contract if certain conditions are not met. For example, it’s common for buyers to make the purchase contingent upon their securing satisfactory financing. Obviously, offers with the fewest conditions tend to be more attractive to sellers.

From a contingency standpoint, first-time buyers are often better prospects for a seller’s home than move-up buyers. That’s because first-time buyers’ offers are not contingent upon the sale of a present home. Even if a move-up buyer has an offer in hand, that buyer’s offer may be contingent on another contingency, and so on down the line. If one transaction derails, they all might.

Relationship. Help the seller get to know and identify with you by looking for ways to connect. Find common interests, such as a shared appreciation of gardening. You can then persuade the seller that her prize roses will be well tended. Share brief family stories. The more the seller gets to know and like you, the better chance your offer will stand out in a competitive environment.

Considerations for Short-sale and Foreclosure Transactions – Bank-owned properties represent a significant portion of today’s housing inventory. Competition can be most keen for these homes as their prices can run 10% to 20% below current market value.

Banks conduct extensive research to set these prices and generally base them on current market value less the cost of required repairs. Make your offer based on your own check of comparable sales and other due diligence. Banks won’t get offended by a low offer, yet a realistic offer will more likely keep you in the running.

Remember, patience is essential when buying bank-owned property as the process can take up to six months and longer.

Work with your local Prudential Waterfront Properties sales professional to buy your dream home or investment property. His or her knowledge, skill and expertise will help you make sound real estate decisions today or any other time.

Check out the 2010 Smith Mountain Lake Wine Festival slideshow at http://photopeach.com/album/n9p0kc?invitecode=3d287e5c9c

One of the benefits many homeowners enjoy is the mortgage interest deduction (MID). This tax deductibility of interest paid on mortgages has been an incentive for homeownership since 1913. Individuals can deduct interest paid on mortgage debt of up to $1million.

The deduction is available for interest on mortgages for a principal residence and one additional residence. Sixty-three percent of families who claim the MID earn between $50,000 and $200,000 per year.

Ask a Prudential Waterfront Properties Realtor® about how the MID factors into their clients’ home buying decisions. For example, what impact does it have over a period of homeownership? While the MID is a great benefit, people usually don’t buy homes only because of the deduction. They buy homes to satisfy social, family and personal goals. However, an NAR survey of home buyers found that both first-time buyers and repeat buyers ranked the desire for tax incentives as an important reason to buy.

The Rotary Club of Smith Mountain Lake’s Fall Fundraiser “Night at the Races” will be held Saturday night October 16, 2010, at the W.E.Skelton 4-H Conference Center.

This 3rd Annual event benefits local charities and features simulated horse racing, funny money, great food, dozens of valuable prizes, a “ Kentucky Derby Women’s Hat Parade”, and camaraderie. 

Tickets are $35 and include a buffet dinner, $16 in “race money”, front row seats at the hat contest, and a chance to win coveted prizes. Participants need NO knowledge of horse racing to participate in the 4 hour event. Groups can reserve a full table for 8 ($280).

Dress is Racing Casual or Kentucky Best. Guests are asked to bring their own appetizers to share – the best at each table is hotly contested.

Contact Brian Raub at 540-721-1405 or Tom Cosgrove at 540-721-7838- to reserve tickets, name horses, or advertise in the event program.

In today’s economy, many factors influence the decision to buy a home – job status, financial resources, and family considerations among them. But one of the most compelling reasons to consider becoming a homeowner in the current market is the affordability factor, which will benefit today’s buyers for many years to come.

To put this into perspective, a buyer who purchased a median-priced home five years ago with an FHA mortgage requiring a 3 percent downpayment would have a monthly mortgage payment of $1,650.00. With today’s interest rates and median home prices, that same buyer would be paying $1,150 per month – that’s a $500 savings every month, and a savings of $6,000 per year.

Interview a Prudential Waterfront Properties Realtor® about affordability conditions in the Smith Mountain Lake area, and how they’ve changed over the past few years. A Prudential Waterfront Properties Realtor® can talk to you about buyer trends and discuss how investors taking advantage of today’s buying conditions. For more insights into housing affordability, listen to NAR Chief Economist Lawrence Yun’s recent commentary: www.realtor.org/research/reinsights/economistcommentary.

In today’s market, seven out of 10 home buyers must borrow money to buy a home. For aspiring homeowners who don’t have hundreds of thousands of dollars in savings to buy a home outright, tax benefits like the mortgage interest deduction helps them begin building their future through homeownership.

According to a report in the National Tax Journal, “the distribution of property ownership is skewed towards those who already have accumulated wealth to begin with; the mortgage interest deduction counters the tendency toward further skewing.”

The MID also helps homeowners who don’t take the deduction by helping maintain the structure of home values. Without it, the value of higher priced homes would fall, putting downward pressure on lower priced homes, as well.

Talk to a Prudential Waterfront Properties Realtor® about what tax benefits of homeownership are most important to their clients. Also, talk to various homeowners who are taking the MID – single first-time home buyers, couples who may have just moved up as their families have grown, people approaching retirement who may be thinking about converting their vacation home into their primary residence – to find out how and if that tax benefit helps them.

Prudential Waterfront Properties announced that Eric Fansler, Tom Fansler, Carolyn Pruett and Michelle Turner have earned the professional designation, “Fine Homes Specialist,” conferred by Prudential Real Estate Affiliates, Inc., a Prudential Financial [NYSE: PRU] company.

All four REALTORS® received the designation by meeting the professional standards set by Prudential Real Estate for sales professionals who successfully list, market and transact sales of Fine Homes. The Brand’s definition of a Fine Home is a residence valued within the top 10 percent of its respective marketplace. This exclusive designation was established in 1997 to define professional quality standards within the Prudential Real Estate Network and to recognize the level of specialized knowledge, experience and skills required by affluent clientele.

“Buyers and sellers of luxury residential properties and estates have high expectations of the professionals they choose to represent them,” said Cathie Daniel, Principal Broker, Prudential Waterfront Properties.  “They want and deserve to work with accomplished individuals who represent affluent clients and specialize in marketing upper-tier properties – professionals who are knowledgeable, well-connected and actively involved in the communities they serve. These are the very qualities represented by the Fine Homes Specialist designation.”

The Willard Companies and Prudential Waterfront Properties announced they are partnering again with the Atlas Companies to market Emerald Bay, a gated waterfront residential development located on Rt. 616 Scruggs Road at Smith Mountain Lake. Earlier this summer, the companies formed a similar alliance to market Bridgewater Pointe, resulting in selling out a 48-unit condo project within 2 ½ hours.

The sales model will follow a similar campaign format in which Prudential Waterfront Properties will begin accepting reservations over a three-week period beginning Saturday, September 18, through Sunday, October 10, 2010. All reservations will then be entered into a drawing along with a brunch event scheduled on Sunday, October 17 at The Waterfront Country Club.

“Our companies are very excited to work with the Atlas Companies on the sales and marketing of another Smith Mountain Lake development,” said Ron Willard, president of The Willard Companies. “We took a unique approach to market another Atlas project earlier this summer. Based on the success of the drawing format; we are using a similar model and offering buyers another investment opportunity to own waterfront property on Smith Mountain Lake.”

Located near Westlake Corner, the Emerald Bay community features over 75 acres and approximately 3,000 feet of beautiful Smith Mountain Lake frontage as well as two streams and hardwood forest areas. The development offers upscale lake living with some long water views, and a carefree lifestyle at affordable prices. The Village homes at Emerald Bay boast beautiful southern architecture, covered porches, spacious great rooms along with Anderson Windows, granite countertops, hardwood floors, dock and boat ramp.

Buyers will have the opportunity to purchase the following: 24 water-access lots starting at $29,500, five Village homes starting at $524,500, a 20-acre equestrian property priced at $199,000, a 5.053-acre parcel with charming farm house and lake access priced at $129,500, and an 11.398-acre  lake-access parcel priced at $199,500. The majority of these properties include deeded boat slip. During the campaign timeframe, Prudential Waterfront Properties will have an onsite sales office in one of the Village homes at Emerald Bay with sales advisors readily available to answer questions and provide tours from 11 a.m. – 5 p.m., seven days a week.

In addition, Emerald Bay purchasers are eligible to join The Waterfront, a country club community located approximately two miles from the development. The Waterfront amenities include tennis courts, swimming pool, fitness center, driving range, pro shop and fine dining. The Waterfront, which also features an 18-hole, PGA championship golf course, has remained one of the region’s premier golf course and country club communities.

“It’s no secret Mr. Willard is one of the pioneering developers of Smith Mountain Lake, which made our decision to partner with The Willard Companies and Prudential Waterfront Properties easy based on his long-standing reputation in the community,” said Shane Shuler, vice president of the Atlas Companies. “Our company had such a successful experience with the Bridgewater Pointe project earlier this summer, we are confident the momentum will carry over to the Emerald Bay project. We are combining a quality product with very attractive pricing giving families another opportunity to purchase lake-front property for their retirement, as a second home, or as a primary residence at Smith Mountain Lake.”

For more information about Emerald Bay, contact Prudential Waterfront Properties at (800) 858-4653 or visit www.smithmtnlake.com.

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Prudential Waterfront Properties markets property throughout Smith Mountain Lake and the surrounding areas. Prudential Waterfront Properties REALTORS® are consistent leaders in sales as well as customer and client service. Prudential Waterfront Properties is an independently owned and operated member of Prudential Real Estate Affiliates, Inc., a Prudential Financial company and Equal Housing Opportunity. Visit online www.smithmtnlake.com.

Smith Mountain Lake is a 22,000-acre recreational lake with 500 miles of shoreline and approximately 40 miles of property in three counties. The lake is about two and a half hours from Charlotte and Raleigh, N.C., and three hours from Washington D.C. It is a popular second home and retirement destination for upper-income residents from the nearby areas of Roanoke, Lynchburg, Greensboro, Raleigh, Washington D.C., Richmond and the Triad. The area provides local shopping and restaurants while a grocery store and movie theater are just minutes away at Westlake Towne Center.

Recently, the blogosphere has been active with debates centered around the value of owning a home versus choosing to rent in the current economy.

Regardless of which side the debaters take, the dialogue itself reveals how personal our ideas about homeownership can be and how significantly it factors in our lives.

As these online discussions reveal, life stages, financial situations, and lifestyle preferences are all factors that people consider when deciding to rather to rent or own.

People who may be moving within a few years may want to consider renting as an option, until they’re ready to settle down in a specific community. However, as individuals take steps toward raising families and growing a nest egg, homeownership tends to be the first rung on the ladder toward the goal of building long-term wealth.

Take a look at some of these online blogs for perspective in the ongoing debate.

Check out:

www.thedailymiddle.com/2010/08/19/the-eternal-question-rent-or-buy.html

and also:

www.freemoneyfinance.com/2010/08/should-you-rent-or-buy.html

Be sure to get Your Smith Mountain Lake ‘Closer Than You Think!’ Virginia license plate.  We are excited about the program and equally anxious to meet the criteria needed.  Below is a condensed list of matters to be completed before final approval by the state of Virginia:

1. The Chamber must collect 350 prepaid applications by January 1, 2011.
2. Bill submitted for approval by the General Assembly.
3. The License plate design must be approved and processed by the Department of Motor Vehicles (DMV).
4. Once the bill is approved by the General Assembly, license plate production will begin. It will take approximately 8 months for completion and distribution.

While the procedure is involved and lengthy, we are confident that the Smith Mountain Lake License plate project will move forward in due process.

And YOU can help us achieve the first requirement (listed above) by submitting a prepaid application!  If you’re interested, here’s what you need to do:

Complete the DMV/SML Chamber application (Click Here to Download) and return it with a check (no cash, please) made out to “SMLRCC” in the amount of $10.  Bring by or mail your application and check to the Smith Mountain Lake Regional Chamber of Commerce, 16430 Booker T. Washington Highway, Moneta, VA 24121 to be added to the list of 350.  Once we receive 350 prepaid applications, the other requirements can be achieved and the state will begin production and distribution of the Smith Mountain Lake license plates.  They require about 8 months in production.  We are striving for a completion by Fall 2011.  If we do not collect 350 prepaid applications by the deadline, you will receive a refund.

Click here for more information.