Author: celeste-smucker

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Condo, Townhome or Single Family…

If you are in the market for a new home, one of your first decisions is whether to buy a single family home or opt instead for townhome or a condo. Single family homes offer more privacy and property than townhomes which are similar but share a wall with one or more other units.  In most cases, when you buy either of these types of homes you also own the property it sits on and are responsible for exterior maintenance. 

 
Condos, on the other hand, are often (but not always) apartments in a multi-family building or buildings. The term condo actually describes a type of ownership rather than a type of home. When you purchase one, you own your living space plus you and your fellow owners have an undivided interest in anything outside of your individual units such as the property, the roof, the hallways or entries.  There are condo projects where the living units are detached and others which are townhome style, but regardless, if the exteriors and the property are owned in common, according to the deed, they are condos. This means a condo is not technically an apartment, although in our area you will find that is frequently the case. 
 
Each of these housing styles has advantages and disadvantages and whether or not one is right for you depends on your finances, your preferences, and the stage of your life.  Young executives and retirees with no time or inclination for exterior duties like lawn care may find condos attractive, although townhomes may also appeal to those who want some but not a lot of yardwork. Families, or others with a strong desire for privacy, may find that a single family home is best.  Price is, of course, a big issue and in general condos are the least expensive, followed by towhomes and single family.
 
Condos and Townhomes, Similar but Different
Just about everyone agrees that one of the biggest benefits of owning a condo is that it is maintenance free.  All condo projects have a Home Owners Association (HOA) to which owners must pay regular fees.  The money pays for upkeep of areas outside the living units such as exteriors (including in some cases doors and windows), the roof, the property on which the building sits and any common areas such as walkways, parking lots, hallways, entries, pools or workout facilities.  
 
If you are someone who works many hours and spends little time at home, a condo may be just the thing. When you have to go in to work on a Saturday or Sunday or if you decide you’d like to go on a weekend trip, you don’t have to worry about finding someone else to mow your lawn, clean your gutters or trim your shrubs.  If the roof leaks, you don’t have to interview subcontractors, negotiate prices and wait for them to show up on the day they promise to start work.
 
A condo may also be a good choice for someone who is not handy. Tom Bibb, a REALTOR® with Better Homes and Gardens Real Estate III, described one of his condo buyers, an individual who “just wouldn’t have a clue about how to fix something.”  For this person a condo was perfect. 
 
Bibb explained that condos also work well for older people who may be handy, but may no longer be willing to climb ladders or  have the desire to do landscaping chores or put in a garden. In addition, the fact that most condos are all on one level can be a real plus for people with aging backs and knees. 
 
Townhomes, on the other hand, usually have at least two stories, sometimes more, so may appeal to  younger people.  While most have an HOA to manage shared elements, such as parking lots and other amenities, unless the deed says they are condos,  townhome owners are  responsible for exterior maintenance. 
 
However,  depending on the community, the HOA may assume some of the homeowner responsibilities.  For example, Justin Kent, a REALTOR® with Better Homes and Gardens Real Estate III, who represents Craig Builders, explained that in Old Trail the HOA manages all of the exterior landscaping for townhomes while in the Village at Highlands it takes care of exterior maintenance as well.
 
Association Fees
Condos come with  fees to pay for HOA services and these can increase over time.  In addition,  there may be special assessments if there is a big repair.  Alex Ix, a REALTOR® with Roy Wheeler Realty Co., suggests that in the long run these fees might be cheaper than doing your own maintenance and yard work.  “When you move into a condo,” he said, “everything is taken care of.  There is no outside maintenance, no shoveling, no raking leaves, no lawn mowing.  All you have to do is walk your dog.” 
 
Townhome owners also pay association fees, but these may be less than for a condo depending on the Association’s responsibilities. If the HOA does not manage exterior maintenance, there is also less chance of a big jump in fees to pay for an unexpected repair in the roof over someone else’s unit. On the other hand, if your unit has a problem, you would bear the entire cost. If you are considering a condo or a townhome, be sure to find out how much the monthly fees are and what they cover. If you are someone who enjoys doing a little landscaping and the HOA has that responsibility, find out if you have the option of doing any of it yourself.
 
If a condo or townhome is in a subdivision with an HOA, expect to pay two sets of fees. Rod Phillips, a REALTOR® with Roy Wheeler-Wintergreen Resort Premier Properties, explained that at Wintergreen condo owners pay the fee for their particular project as well as the master HOA fee. In Old Trail, Kent said townhome owners pay just one fee, but it is higher for them than it is for single family home owners.
 
In Wintergreen, the condo fees pay for maintenance of the exterior and common areas, as well as amenities such as cable and firewood. The master fee pays for Wintergreen community road maintenance, including snow clearing and landscaping of the subdivision entrances and median strips, as well as care of its many green areas and walking trails.
 
Single family home owners in the same community mow their own lawns but only pay the main Association fee.
 
A Great Second Home
For many, condos make an affordable second home. Phillips and his family have one in Wintergreen which, he says, “has a special place in my heart.” He has condo clients who agree with him and come from Northern Virginia and DC as well as Richmond, Tidewater and Charlottesville and from as far away as Charlotte and the Raleigh/Durham in North Carolina.
 
The combination of price plus spectacular scenery, skiing and golf plus maintenance free living makes these units hard to beat.
 
Long distance commuters also favor condo living for many of the same reasons.  Ix referenced an attorney client whose main residence is in DC but purchased a condo when his Charlottesville practice expanded and he was tired of  staying in hotels.
 
He described other clients who own property in surrounding counties and work in Charlottesville who tired of the daily commute. Many of these individuals don’t want to sell the family home or farm, so they buy a condo near where they work.  They stay there during the week and continue to enjoy their other property on their days off.  Others choose the convenience of a condo  for a place to stay after football games or other big events.  “The price of gas is a factor for a lot of these people,” Ix said. Townhomes are also an option but may have less appeal for commuters since they generally cost more and may require more work.
 
Both condos and townhomes offer a sense of security since neighbors are so close.  This may be somewhat less for townhomes whose front entrances open directly onto the street.  Most apartment style condo buildings have a main entry which may provide an additional sense of security. 
 
Financing
Regardless of which type of property you choose, check with your lender first.  This is especially true in the case of condos where lenders may be much stricter than when underwriting loans for single family homes or townhomes. 
 
Ann Totty, a loan officer wtih New American Mortgage, explained that FHA as well as Fannie Mae and Freddie Mac all maintain lists of approved condo projects, which can be viewed on their websites.  If you find a condo you like and it’s not on the approved list, you won’t  be able to obtain one of these loans.  
 
Whether or not a project is on the approved lists depends in large part on the number of investor owned units.  The more rental units in a project, the less likely it is to be on the list.
 
Since this number can change, the lists expire and projects have to be reevaluated, and reapproved on a regular basis.
 
Other loans may be available for condo purchase but may require a down payment of 20 percent or more as well as squeaky clean credit.  Despite their similarities, townhome developments, unless they are also condos, do not have the same restrictions. This may make them more accessible to first time buyers who often don’t have the funds for a large down payment.
 
A related consideration is that  a condo unit may be designated by deed as owner occupied, meaning  it can never be a rental unit. Bibb has clients who purchased a condo for their daughter when she was a student.  Although she has graduated, her parents have been unable to sell the unit, and because it is designated as owner occupied, it can’t be rented.  This means if your plans include purchasing a condo with the possibility of some day becoming a landlord, you may want to consider a townhome instead.
 
Condos and Townhomes as Stepping Stones
For individuals purchasing their first home, a condo or townhome offers an opportunity to develop equity towards a single family home. Bibb said that in general condos appreciate less than townhomes, which appreciate less than a single family homes. However, even if there is little or no equity at sale time, purchasing one of these units may still be a good plan.  He explained that monthly payments, especially on many condos, are about the same as rent.  “Even if you just break even,” he said, “when you sell, you’ve still lived there for free.” 
 
Celeste Smucker is a writer, editor and author of Sold on Me, Daily Inspiration for Real Estate Agents.  She lives near Charlottesville.
 
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Local Real Estate Pros Serve as Partner Family Advocates for Habitat

The Charlottesville area is fortunate to have many real estate professionals who selflessly give back to the community through volunteer work. One of many local non-profits that benefits from this generosity is Habitat for Humanity of Greater Charlottesville, an affiliate of Habitat for Humanity International. Habitat’s mission is “to create simple, decent, affordable housing in partnership with low-income families, volunteers and the communities of greater Charlottesville.” The organization utilizes volunteer labor to build new homes that are purchased by qualifying families using a combination of sweat equity plus a zero interest first mortgage. 

 
Local REALTORS® and associates serve Habitat in a number of different ways, including hammering nails and hauling shingles at a job site. In addition, however, they serve through an innovative program called Partner Family Advocates. In this role, REALTORS® and others work with Habitat families by answering their questions and advocating for them in everything from selecting their lot, to navigating the loan process, choosing the perfect paint, carpet and vinyl, and attending their closing.
 
Ownership Through Sweat Equity
A big part of Habitat’s successful formula is the use of sweat equity in the form of volunteer labor. Once families qualify for Habitat’s program, they participate on an ongoing basis, explained Shelley Cole, Habitat’s Family Services Coordinator. The total number of hours required depends on the number of adults in the household. A single adult household must contribute a minimum of 200 hours, which increases to 300 if there are two adults. Families are expected to volunteer time every month until their home is ready for move in. They contribute sweat equity to their own house, but they participate in building other family’s homes as well. Individuals with health or physical limitations can work at the Habitat store, which sells building products and other donated materials.
 
The time from when a family first qualifies as a Habitat client until they move into their new home depends on a number of factors including the availability of a suitable lot. While Habitat helps secure the lots, each situation is different. For example, Julie Holbrook, an agent with Charlotte Ramsey Inc, Realtors, is a Partner Family Advocate who has worked with several different families. Her first family was a single woman caring for the three grandchildren she adopted when her daughter died.  She is disabled and does not drive, and while she needed a home for her new, larger family, the local real estate market put ownership out of reach. Holbrook learned about acquaintances who had a five acre lot and helped persuade them to sell the property to Habitat at below market value. “This is not the usual situation, she was lucky,” Holbrook explained in telling her first partner’s story, “but she was one of those people you just had to keep fighting for.” 
 
All of the effort finally paid off. The family members now enjoy living in their new home on five acres, thanks to the combined efforts of their sweat equity and help from all of the parties including Holbrook, Habitat, and many other volunteers.
 
Habitat also requires families to participate in financial counseling. Like any new home owners, they must first have their financial affairs in order so they can qualify for a mortgage. Tammy Wilt, a loan officer with New American Mortgage and a Partner Family Advocate, said that her involvement in the Habitat program was motivated in part by her frustration with our local housing market. She found that often families seeking the benefits of homeownership and who are good credit risks may nonetheless be unable to afford a home. 
 
Wilt works with her Habitat families using a check list to assure they have all of their documents in order and answering their questions about loan approval. Qualifying Habitat families receive a zero interest first mortgage plus possible grant funding from sources such as the city, the county, or Piedmont Housing Alliance. Often the loans from grant funds are forgivable. 
 
The amount of the new homeowner’s monthly payment, which includes principle, taxes and insurance, is income based and cannot exceed 27 percent of the family’s gross income. This means the mortgage pay back period varies with the size of the loan and the borrower’s circumstances, explained Cole who said some loans may be as short as 20 years, others as long as 30.  The program allows families to own a new home and have payments as low as $600 a month, less than a lot of rents, said Tammi Campbell, a Partner Family Advocate and REALTOR® with Roy Wheeler Realty in Greene County. As the mortgage is paid back, funds are recycled and available to finance other Habitat homes. 
 
The Special Role of the Advocate
Advocates are volunteers, most of them homeowners themselves, who form a special relationship with families answering their questions and advocating for them throughout the home building process. They check in with the family at least once a month to share information and make suggestions. They may also work on the job site alongside family members. Time involved averages about two to three hours a month with more intensity required as the closing and move-in dates approach. The relationship is a long term commitment, sometimes requiring several years depending on when an appropriate lot becomes available and how quickly a family’s financial picture allows them to qualify for a loan.
 
Tammi Campbell advocates for a family with five children who have been waiting to move into a new home since 2007. Today everyone is excited about the possibility that after such a long wait they may get to spend Christmas of 2011 in their new home.  Originally with another advocate, the family switched to Campbell who was a better fit for their situation. 
Shelley Cole explained that while they do their best to match up advocates and families, sometimes the comfort of all parties is served by a change. She stressed that good communication between advocates and their families is critical as these first time home buyers are inundated with information about everything from home and yard maintenance, to homeowner associations and financing. If family members are not native English speakers there may be cultural and language barriers as well and an interpreter may be required. 
While two to three hours a month is an average amount of time advocates spend with their families, the actual number of hours increases as the process moves along. Campbell described the time spent helping her family choose their paint colors, countertops, cabinets and floor coverings as one of many high points of the experience. Before the process is completed she will also assist them with steps such as their final walk through of the property and the actual closing where all the papers are signed. Advocates also stay in touch with families after move-in for as long as an additional 18 months, Cole reported. She enjoys working with real estate professionals who are comfortable with the home buying process and have flexible schedules that allow them to attend meetings and functions during a work day.
 
Why Become an Advocate?
Why do these REALTORS®, lenders and others choose to advocate for Habitat families? Campbell first learned about Habitat some years ago when the real estate company she worked for sponsored a Habitat build day and agents volunteered time to work on a job site for one of the families.  As far as becoming an advocate, she explained that she grew up in a family with eight brothers and sisters in a home that had only one bathroom. She remembers how excited she was when, at age 30, she moved into her first house and had a bathroom all to herself. “I can really relate to what these families are feeling and I am excited for them,” she said. “Habitat is a great program and it makes you feel good to be part of it” she continued. 
 
Tammy Wilt looked for a volunteer opportunity after she moved to Charlottesville in 2006. She chose Habitat in part because she has always enjoyed home projects, but also because she soon learned how hard it was for low income families to qualify for enough loan to purchase a house in our area if they followed the usual route to becoming home owners. She appreciates all the work the Habitat families devote in order to make their new home a reality and complimented the Habitat staff and the Partner Family Advocate program. “As long as you have an hour a month it’s a great way to give back to the community and help people become homeowners,” she said.
 
Julie Holbrook’s first Habitat family was someone she knew personally. Her involvement at that time was due in part to her conviction that the lady deserved a new home. “She was worth every second of my time. You just go to bat for them, that’s what advocates do,” Holbrooke said. Since then she has worked with two other families including a single mom with two teen-aged kids who waited almost seven years to get into their new home.
 
Holbrook related that as a result of her experience working as an advocate she is calmer and more patient than she once was. “Everyone has a story,” she said, “and I have learned to help them where they are. The program changes your perception about people,” she said. “I’m a lot less judgemental than I used to be.” 
 
Become an Advocate
If you like the idea of helping deserving families become homeowners, consider becoming a Partner Family Advocate. Family Services Coordinator Shelly Cole screens new volunteers and spends time with them to get a sense of who they would best serve. New volunteers also attend training sessions to learn more about how the program works and what is expected of them. In addition, Tammy Wilt explained newcomers can rely on more experienced advocates to share their experiences with this special program.
 
There is a huge payoff for the volunteers. Holbrook stated that after working with her partner families she realizes “there is nothing we can’t do. When you work with these families you realize they need for you not to give up. They count on you.” As a result, when facing her own challenges, Holbrook said she is much more likely to persevere.
 
All the advocates had high praise for the Habitat staff and volunteers calling them kind and giving people who are doing an incredible service for the Charlottesville community. 
 
For more information or to volunteer, send Cole an email at: FamilyServices@cvillehabitat.org.
 
Celeste Smucker is a writer, editor and author of Sold on Me, Daily Inspiration for Real Estate Agents. She lives near Charlottesville.
 
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Energy Efficiency Sells Homes

“Green” is a popular concept with many applications in real estate where it can mean energy efficiency but can also encompass water conservation, non-voc paint or carpet, use of renewable resources such as bamboo flooring or commitment to sustainable landscaping. As a homeowner you may choose green for a number of reasons including greater comfort, healthier indoor air quality and reducing your carbon footprint. Choosing green may also be an economic decision. Research on the return on investment for energy efficiency improvements suggests that, depending on the length of your stay, you may recoup some or even all of your investment in the form of monthly savings on utility bills. 

What if your plans are uncertain? Is it still worthwhile to invest in green improvements? One reason to do so may be that such renovations may result in a higher sales price, a faster sale, or both when you decide to put your house on the market. While there are not a lot of data, in fact the studies that have been done are quite clear…more energy efficient homes sell for more and may also sell more quickly than the less efficient house down the street. Meanwhile, your remaining time in the house will be more enjoyable as you will have lower utility bills and a less drafty, more comfortable and even quieter place to live.
 
Resale Values and Energy Efficiency
How does energy efficiency impact home sales prices? A 2010 study by the Earth Advantage Institute in Portland, Oregon found that new homes that were certified by a third party such as LEED (Leadership in Energy and Environmental Design) sold for 3-5 percent more than non-certified homes in Portland and 10 percent more in Seattle. Similarly a study based on MLS data for the Portland, Oregon/Vancouver, Washington metro area found that existing homes certified for energy efficiency sold for an average of 23 percent more than those which were non-certified. 
 
On the east coast, an Atlanta based study reported by the Green Resource Council compared sales of new homes with and without green certification. The certified green homes sold for 94.5 percent of list price compared to 90.9 percent for the non-certified homes.
 
On both east and west coasts, studies showed that homes with green certification also sold more quickly than conventional homes. For example, in Atlanta average days on market for certified homes was 108 days compared to 139 for the non-certified competition. In Portland, average time on the market was 18 days less for certified homes.
 
Is there enough demand for energy efficiency and other green amenities in our area to expect them to have an impact on local home sales? While we don’t have a lot of data, there is reason to believe that our community has a growing interest in this issue, which in time will definitely impact the real estate marketplace.
 
Green Home Features and Our Local Real Estate Market
Greg Slater, a REALTOR® with Better Homes and Gardens Real Estate III, who represents Piedmont Realty and Construction, stated that “anecdotally, buyers are expressing more and more interest in energy efficiency.” Further, as people have become better educated about these issues he feels they are more likely to pay for energy efficient systems when purchasing a new home than they were a few years ago. However, he explained that while many new home builders are committed to incorporating green features, especially energy efficiency, there are not a lot of resale homes that have been remodeled with this in mind. Consequently, we lack good information about whether they would command a higher price at resale. 
 
Slater described one buyer he worked with who did not find what he wanted in a new home and asked to see resale homes with green features. Unfortunately, finding such homes is difficult, Slater said, since our MLS system is not set up to allow searches on green-related characteristics. To make this possible, he suggests we need increased awareness in our community not only by buyers and sellers but also by REALTORS® and appraisers regarding the market benefits of green features. 
 
Promoting education for real estate professionals is what Rosa Nicolosi, a REALTOR® with Sothebys International Realty, had in mind when she founded an organization called Green Change Agents. The group meets monthly at the Charlottesville Area Association of Realtors and is dedicated to educating real estate professionals about the benefits of selling healthier and more sustainable homes.
 
Valuing Energy Savings
While concern for the environment may influence interest in green homes, the primary issue for most buyers is energy savings, according to Jim Duncan, a REALTOR® with Nest Realty. However, while energy efficiency may make a home more attractive to buyers, for it to influence value in the eyes of the mortgage lender it must also become part of the appraisal process. 
 
Duncan described a new addendum created by the Appraisal Institute that can help do just that.  The addendum lists green features that may add to the value of a home and can be attached to a standard appraisal report. REALTORS® , buyers, sellers or individuals in process of refinancing can download this attachment and request that it be part of the appraisal report submitted to their lender.  
 
Duncan estimates it may be a few years before there are enough buyers and sellers with sufficient concern about energy efficiency to have a real impact on the market. The availability of the addendum, however, will increase the visibility and value of green amenities for anyone actively looking to buy or sell a home.
 
Energy efficiency’s potential for affecting the marketplace is substantial. Roger Voisinet, a REALTOR® with RE/MAX Realty Specialists, has several green designations and a long standing interest in green building design. He recently paid the electric bill on a 2,500 square foot energy efficient spec house which averaged just $35/month. Voisinet visited the family who purchased this house on a cold day and noticed an open window. They were surprisingly unconcerned and referenced their very low monthly electric bill.
 
Obviously, after the new owners moved into this home their electric bill was more than $35 a month. Even at three to four times that amount, however, their bill is still far less than what many home owners now pay. If lenders take these kinds of savings into account when reviewing a loan, a buyer could be approved to purchase a much bigger house. From a seller’s perspective it ups the chance their home will sell since incorporating these savings into the loan decision increases the pool of people who can afford to purchase it. 
 
Increasing the Demand for Energy Efficiency
Increased interest in energy efficient housing can happen for a number of reasons. One of these is through better educated remodeling contractors. Tracy Meade is one of the owners of Meade Construction, LLC. At one time her family’s construction company was the second largest EarthCraft builder on the east coast. Today they specialize in remodeling, and because of their commitment to energy efficiency and their EarthCraft experience, Meade said they frequently are in a position to educate their customers on these issues. 
 
“Most of our customers don’t call about a green retrofit,” she said, “but inquire about siding, or an addition or some other improvement to their home. We talk to them about why they called in the first place,” she said, “but then we also explain how they will appreciate their upgrade more if they do it right energy wise.” 
 
Meade explained that not only do customers need education, but remodeling contractors do as well as many of them are not up to date on energy efficiency technology. She emphasized that it is also important for new home buyers to understand energy efficiency and ask lots of questions before they buy. Her company recently worked on a new townhome that was poorly insulated when the owner moved in. She was paying $400 a month in utility bills; a figure that was way outside of her budget. She couldn’t sell the townhome, but made it affordable by upgrading the insulation. 
 
This townhome buyer had an expensive lesson in asking the right questions before making such a big purchase. As more people become educated about these issues, the demand for well-insulated, energy efficient homes will increase.
 
LEAP and Energy Efficiency Education
Our Local Energy Alliance Program (LEAP) plays a critical role in educating consumers and real estate professionals. Executive Director, Cynthia Adams, emphasized the need for a more green friendly MLS system and described several ways LEAP is working towards creating it.
 
One of these is a conference involving lenders, appraisers and REALTORS® which will focus on why green building and retrofits increase the perceived value of real estate. Not only do they reduce operating costs, she said, but green homes are more durable and offer better air quality through improved ventilation. LEAP will also be instrumental in helping create a continuing education course to address energy efficiency issues and building science while educating REALTORS® on how to consult with clients about the relative costs and benefits of home improvements.
 
LEAP also offers a host of services for the general public, including home energy saving workshops and access to resources such as home energy audits and certified contractors. Recently they sponsored a contest for which the prize was a free energy efficiency makeover for four lucky home owners. Twelve hundred people responded reflecting our community’s strong interest in energy efficiency.
 
A year ago LEAP was chosen to help pilot a new Department of Energy program which will assign an energy efficiency score to a home similar to the MPG rating on cars. The score is based on a walk through assessment and does not involve diagnostic tests. The initial part of the project was completed early this year and the model will be adjusted accordingly before relaunching in November and December. LEAP is working with others to create a field in the MLS system for this score giving REALTORS® and buyers a heads up on the energy efficiency of a property listed for sale.
 
If you are thinking about energy upgrades for your house, Adams urges you to contact LEAP and move forward as soon as possible. At the moment there are state energy efficiency rebates which, she says, will not be available much longer. LEAP personnel can also fill you in on special low cost financing for energy improvements available through the UVA Credit Union called PowerSaver loans. In addition LEAP currently has grant money available which can buy down your interest rate on these loans to zero. Visit the LEAP website at www.leap-va.org for more information.
 
Celeste Smucker is a writer, editor and author of Sold on Me, Daily Inspiration for Real Estate Agents. She lives near Charlottesville.
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The Best in New Home Design on Display Again This Weekend at Charlottesville's 2011 Parade of Homes

offering area residents a second opportunity to view the best in new construction from local builders.  When you study Parade maps you will find featured homes available across a large geographic area that includes Greene, Fluvanna and Louisa Counties as well as Charlottesville city and Albemarle County from Keswick to Crozet. This year’s Parade also includes the newly opened Preserve at Glenmore where multi-acre wooded homesites (including a 23 acre site) are available for yet-to-be-built homes.

The Parade is a terrific opportunity for prospective buyers, people contemplating remodeling an existing home, or those who just appreciate the best in new construction, to learn about the latest trends in home building such as energy efficient appliances and insulation as well as what is current in building supplies. Maintenance free decking, tankless water heaters, and programmable thermostats are hot this year, as are cutting edge heating and cooling systems.  Beautifully designed interiors are also on display including the latest in countertops, cabinetry and windows.
 
For builders the Parade is valuable for offering positive exposure to the marketplace.  Rick Beyer, of R.L. Beyer Custom Homebuilders describes his company’s long participation as a “highlight of the year.”  Wes Kent of Craig Builders  said “the Parade is a premier event for builders allowing us to showcase our best product to the public.  Hundreds of people walk through our homes during one of these events.”  Of course home buyers have a golden opportunity to meet different builders or their representatives and view their product giving them a head start for when it’s time to build.
 
If you are thinking about buying a new home, remodeling your present home or are just curious and want more information about the process, the kinds of homes available, and the builders who can make it happen, take time to visit this year’s Parade.  Maps are available at the BRHBA website and in many local publications.  Homes are open Saturday and Sunday from noon to 5:00 pm and will be staffed with experts, including often the builders themselves, to answer all of your questions.
 
First Floor Master Suites are Increasingly Popular
As  Baby Boomers retire with money in their pockets, their preferences are helping set trends for new homes. A popular choice is one floor living, or at least first floor master suites.  According to the National Association of Home Builders, at least 40 percent of new homes nationwide have first floor masters, up 15 percent from a decade ago.
 
Locally builders are seeing the same demand and are building accordingly.  For example, Charlie Armstrong, Vice President of Southern Development Homes, referenced their popular Keswick model, which is all on one level.  “It’s not just Boomers requesting these kinds of floor plans,” he said. “Many younger buyers are requesting first floor masters as they plan for the future.”  This may in part reflect another trend.  Armstrong said more and more people are viewing a home purchase as a much longer term investment than perhaps they would have some years back.  When they buy a home they know they may live there until poor health makes it difficult to climb stairs and they plan accordingly.
 
Justin Kent, a REALTOR® with Better Homes and Gardens, Real Estate III, who represents Craig Builders, also mentioned the importance of first floor living and offered yet another suggestion about their apparent popularity. “Many of our customers ask for this feature in part because they feel it will help with resale.” 
 
Rick Beyer agrees that first floor masters are important and a priority for many buyers. In addition, however, he sees a growing demand for homes with two master suites.  “Retirees and empty nesters have more free time today,” he said, “and they like having a comfortable place to entertain friends and family. With two master suites guests can come for a visit and not have to walk down the hallway to use a shared bathroom.”  Of course, a second master suite also works well in those situations where adult children move back in after leaving home for awhile.
 
Energy Efficiency
Another big focus in today’s new homes is energy efficiency. “This has been a slowly building movement since the early 80s,” Beyer said.  He added that while early on this interest was not mainstream,  it has become so in the last several years due to big cost increases.  The home building industry has responded with homes that are more tightly built and better insulated. In fact, several of the builders pointed out that energy efficiency is a big reason to buy a new home rather than a resale.
 
Efficiency is helped along by heating and cooling systems which are increasingly efficient as well as innovations such as tankless water heaters.  Justin Kent suggested that while Craig Builders is cautious about any new technology, today’s tankless heaters are much improved over the original models and they are seeing an increased demand for them.  “It is primarily the younger crowd which is asking for them,” he said.
 
Rick Beyer noted that tankless heaters, while improved, must still be appropriately sized for the house.  Larger homes with four or five baths require a different heater from a starter home.  For people who prefer standard technology, conventional water heaters are also much improved, he offered.  Today they are better insulated and some even have their own heat pump built into the unit.
 
Custom Design
A big advantage of new construction over purchasing a resale house is the flexibility of choosing personal design elements.  Alternative floor plans and the ability to select certain types of features like paint, wallpaper or floor coverings are standard.  However, depending on the builder and the price range many other possibilities are available.  
 
For example, Wes Kent enjoys working with people to accommodate their interests and special needs.  Recently when consulting with a family with one disabled member, his company created a design with wider than average doorways and hallways to allow passage for a wheelchair.  Other kinds of handicap access were also built into the home making it much more liveable for this family than the average home.
 
Kitchen design is a  big focus in today’s new home market, according to Rick Beyer.  Many people are choosing upgraded appliances such as stoves with extra burners or warming drawers.  Double ovens are also in demand.  Beyer reports that entertaining and fixing food for friends is a popular pastime and people want to be able to entertain large groups with ease.  
 
While kitchens have always been important in home design, Charlie Armstrong explained that today people are more willing to settle for a home with less square footage, in exchange for an upgraded kitchen.  More and more the kitchen is a room where we all spend a lot of time so it is a place where people are choosing to spend more money to get exactly what they want.
 
When you attend the Parade look for another popular concept, the flex room or flex space. Armstrong explained this is a space which can serve different purposes as the need arises. For example it may start out as a den, but turn into a playroom when a couple starts having children.  Later, empty nesters may convert the space into an office or craft room.  This kind of flexibility allows people to manage with a smaller house and stay longer if they choose to do so.
 
The National Association of Homebuilders reports that incorporating these kinds of universal design features into new homes is becoming increasingly popular as people build with the intention of staying put.  Other popular options are designs which provide for more light. This could include large windows as well as carefully placed fixtures in areas like under counters, over bathroom mirrors or in closets making it easier for aging eyes to shave, put on make up, read recipes or do craft projects.
 
If you don’t enjoy landscaping and other yard maintenance chores, be aware of another benefit available in many new home communities.  Exterior maintenance is provided in townhome communities and some of the neighborhoods within a larger community such as Glenmore or Old Trail.  If this feature appeals to you, be sure to ask if it applies in the neighborhood where you want to live before signing a contract.
 
The Many Benefits of Buying a New Home
The builders emphasized that building a new home has many advantages over buying a resale product. You have the flexibility to create a space to fit you and your family rather than being forced to adapt to someone else’s idea of what is liveable. You can also enjoy a much higher level of energy efficiency saving lots of money in the years that you live there.
 
Today, more so than in previous years, prices are affordable and interest rates are very low.   Armstrong explained that this favorable combination often allows you to get a custom designed home at a price comparable to what you would have to pay for a resale home, yet when you move in, you won’t have to make any changes because it already fits your needs. Beyer agrees, stressing that this combination of low prices and interest rates won’t last.
 
Special financing is available for qualifying new home buyers.  Josh Klemmer, Market Leader of the Central Virginia Region for New American Mortgage, one of two presenting sponsors of this year’s Parade, explained that building a home can take from four to eight months.  As a result, his company offers a program for new home buyers that permits them to lock in today’s low rates for up to six months.  If rates go down during that time they can even benefit from the lower rate if it happens within 30 days of closing.
 
To best enjoy this weekend’s Parade, start with a map and focus on location first, Armstrong advises.  Pick the neighborhoods and homes that are near amenities you consider to be important. “Today central locations are popular,” he continued.  “Many people like to be near town or other amenities such as restaurants and gyms.” This may account in part for the popularity of walkable communities such as Old Trail or Belvedere, both of which have models in the Parade. After you visit the homes that make sense geographically, then work your way out to the ones  that are further away.  All of the homes have something special to offer.  So go in and  be prepared to ask the builders and their staff a lot of questions.  As Armstrong says, “ get engaged.” 
 
Celeste Smucker is a writer, editor and author of Sold on Me, Daily Inspiration for Real Estate Agents.  She lives near Charlottesville.
 
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The Blue Ridge Homebuilder's Association 2011 Parade of Homes

This year is no exception as twelve of the area’s finest builders will showcase 27 new homes in a large geographic area that includes Greene, Fluvanna and Louisa Counties, as well as Charlottesville city and Albemarle County; from as far east as Keswick to as far west as Crozet.

This year’s Parade also includes the newly opened Preserve at Glenmore, which includes multi-acre homesites plus one 23 acre mini-homestead available for yet-to-be-built homes.

Today the builders are busy preparing for the hundreds of guests that regularly attend this yearly event. The 48th annual Parade of Homes opens this Saturday, October 1st at noon. By that time the homes will be complete and beautifully decorated with knowledgeable agents and staff available to answer questions and explain all of the new technology, energy saving devices and many other special features they have to offer. The Parade has something for everyone, from first time buyers to those looking for a luxury property in prices ranging from $250,000 to $1 million.

Visitors to these new homes will also have an opportunity to see and evaluate a variety of different kinds of neighborhoods, including townhome developments, walkable communities and locations with special amenities such as golf courses, horse back riding, or boating. Each neighborhood has its own flavor and it is essential to sample that, especially if you are considering moving in. In fact, Marina Ringstrom, a REALTOR® with Better Homes and Gardens Real Estate III, said that the Parade is as much about showcasing communities as it is about homes
.
Whether or not you plan to buy a home in the near future, you are welcome at the Parade, which is a great opportunity to scope out housing styles and quality. You also will learn about the best in energy saving and green building concepts, along with decorating ideas and remodeling tips. Visitors who want to buy a home can learn all about the many advantages of new construction, and how much house and what kinds of amenities they can expect for the money they have to spend.

The 48th annual Parade of Homes is a two weekend event, October 1st and 2nd and 8th and 9th, from noon until 5:00 p.m. all four days. The Parade map is available at the Blue Ridge Home Builders Association website (www.brhba.org) and in local publications.

The Parade of Homes Offers Many Benefits
The purpose of the Parade of Homes is to demonstrate the best of the best in new home construction. As Jim Kuznar, Executive Vice President of the Blue Ridge Home Builders Association explained: “We’re extremely proud to showcase the best builders and neighborhoods around Charlottesville and the surrounding area.” He expressed pride in the number of builders participating in this year’s Parade in the midst of a challenging real estate market and encourages everyone to come out and see the “array of different home styles, amenities and special features including unique designs and energy saving ideas.” He explained that the Parade of Homes has a lot to offer home buyers, as well as those looking for decorating ideas, or wanting information about innovations such as tankless water heaters, upgraded insulation options or the latest in heating and cooling systems.

For anyone actively looking for a home, “the Parade is a good way to understand the local real estate market,” says Greg Slater a REALTOR® with Better Homes and Gardens, Real Estate III, who represents Piedmont Realty and Construction in this year’s Parade. “The Parade lets you know what is the latest and greatest in new homes and reflects how builders are responding to market needs,” he said.

This year there will be lots of emphasis on energy efficiency. For example, builders are using more energy-efficient windows and finding ways to tighten the home’s thermal envelope and conserve water.

Slater also explained there is more interest now in creating home spaces based on buyers’ needs that reflect today’s lifestyles rather than what we thought was essential in times past. Good examples may be formal dining or living rooms, which many buyers no longer consider a necessity. This year when you visit the Parade be alert for alternative kinds of floor plans that make different but innovative use of space that more accurately reflects the way many of us live today.

If remodeling your present home is something you are thinking about, visiting the Parade can help you know what’s current so you can make decisions consistent, not only with your needs, but with future resale value. For example, visiting Parade homes is a great way to know what’s new in the way of trim, cabinetry, countertops, plumbing fixtures and lighting. You can also learn about exterior features such as siding, decks or walkways. A big advantage of the Parade is that it allows you to see many different interior and exterior features all at once, giving you an overview that’s hard to get any other way.

Michael Gutherie, CEO and Managing Broker for Roy Wheeler Realty, explained another reason why it makes sense to go to the Parade, especially if you are in the market for a home. “The Parade offers an opportunity for people to go through the homes, ask questions, talk to agents and builders and not have the pressure of being seen as buyers. It’s a lot more natural and comfortable to walk through a home this way,” he said. He suggests people take advantage of this opportunity to walk leisurely through these homes and see the work of lots of different kinds of builders in different price ranges and with varying architectural styles.

The Parade also benefits all of us through its positive impact on the local real estate market. Marina Ringstrom explained that traditionally local real estate sales spike in October and she believes this is due in large part to the Parade.

The Parade Is About 
Teamwork and Cooperation
The Parade of Homes is organized by a committee at BRHBA that starts work months before it opens in October. According to John Scott with Builders First Source, a building supply company, Parade planning starts in the spring when UVA announces its football schedule. The committee then schedules dates which include at least one, and hopefully two weekends in a row where the Parade doesn’t compete with a game.

The next order of business is to talk to builders to find out which ones want to participate and how many homes they wish to enter. As houses are completed, committee members inspect them to ensure they are ready when the Parade opens. Then builders, sponsors, committee members and others all enjoy the gala kick-off event planned by the committee.

In years past the Parade has included judging of homes and amenities with awards going to winners. However, this year the committee and builder community decided to forego the awards. Instead, the emphasis is on cooperation to demonstrate what the building community can accomplish when everyone works together.
Part of what makes the Parade a possibility each year is the generosity of sponsors, which reflects yet another kind of teamwork. While there are several levels of sponsorship, the main or presenting sponsors this year are Roy Wheeler Realty Company and New American Mortgage.

Michael Gutherie explained his company’s decision to be a sponsor by saying that over the years they have benefitted when builders chose Roy Wheeler agents to represent them. The decision to become a main sponsor was in part due to his desire to give back to the builder community and to BRHBA. One of the agents from his company also serves on the Parade committee.

How to Make the Most of Your Parade Experience
The Parade is a great opportunity to see a lot of different architectural styles in a wide variety of geographic locations over a short period of time. There are a number of ways to take advantage of all that it has to offer.

Start by visiting the BRHBA website, or finding the Parade information in one of our local publications. Marina Ringstrom suggests holding on to the information for the two weeks of the Parade so you have a list of the builders, locations and prices. Then consider all of your questions and make a detailed list. While each home will have a knowledgeable builder representative available to answer questions, many builders also will be available giving you an unusual opportunity to get information from the individual who knows the home and its systems the best. If you are in the market to build, this also gives you a chance to see which of the builders you would feel comfortable working with.

If buying a home is in your immediate future, Michael Guthrie suggests having yourself pre-qualified by a local lender before the start of the Parade. When you know how much home you can afford you can realistically evaluate available floor plans and extras to determine if they will work with your budget. Of course, even if you can’t afford a particular home, you can still gain insight and information from the builder or their representative about features that you may be able to incorporate into the one you eventually purchase.

People who want to renovate their present home should also bring their questions. The Parade is a great time to get ideas that will and won’t work at your house. Talk to the different builders and ask lots of questions. Many of them also do remodeling and can give you ideas about whether the projects you are planning are realistic and cost effective. They may also be able to shed light on the extent to which the remodeling jobs may pay for themselves when it’s time to sell your house.

The Preserve at 
Glenmore Adds a 
Different Element
While the Parade primarily includes new homes, this year the Preserve at Glenmore is also one of the entrants. This newly opened section now has a paved road into the multi-acre homesites to allow Parade goers to scope them out as a possible spot for building their dream home. “If you are planning to build and like the benefits of a gated community but prefer lots of privacy, The Preserve may be a good option for you to consider,” said Marina Ringstrom. Located at the highest point in Glenmore, the homesites are between 5 and 7 acres with one exceptional 23 acre mini-homestead also available. Visit the Glenmore home on the Parade and then stop and take a walk at The Preserve. These large lots with beautiful hardwoods may be just what you’ve been looking for.

Celeste Smucker is a writer, editor and author of Sold on Me, Daily Inspiration for Real Estate Agents. She lives near Charlottesville.