The Liz Moore Market Watch

The Liz Moore Story

For many years, Liz envisioned the perfect real estate company….a brokerage where all the greatest agents want to work, and where the business is solidly and predictably built on word of mouth referrals from loyal past clients. In 2003, she decided to make that vision a reality. Realizing that it would be near impossible to totally transform her existing traditional real estate office into her ideal model, Liz set to work writing a business plan that started totally from scratch. She traveled extensively for several years, researching what were heralded as the best and the brightest brokerages across the country.

She was disappointed. She was disappointed that from the West Coast to the North East, most real estate companies looked alike. Wherever she went, she found business as usual…very little vision…hardly any passion for customer service or innovative ideas. Marketing was at best ho-hum…in fact, there was so little distinction between companies that one could easily erase one firm’s logo in an ad and substitute another and no one would notice.

Convinced that there was a better way to practice real estate, and that timing was right for an enlightened boutique brokerage, Liz enlisted the guidance of one of the nation’s leading business development consultants. Under her guidance, 10,000 local families were surveyed about their real estate experiences over the past five years. One message was loud and clear: too many families had one unfortunate experience in common…frustrating and costly last minute surprises and expenses which made the overall real estate experience highly stressful.

The mission became clear: to develop a real estate company that truly reinvented the process, empowering consumers and agents alike with up front information and more control. So, with the help of long time friend and colleague, local attorney Brian D. Lytle, Liz set to work to create a business plan for the perfect real estate company.

The firm would partner with several local appraisers to provide a full mortgage appraisal to sellers at time of listing, as well as independent home inspectors to conduct thorough property inspections before the home is put on the market. These services would be provided free to the consumer. With peace of mind for clients as the goal, these up front services would enable sellers to rest easy that once they negotiate price and terms with a potential buyer, they no longer need to fear the unknown: low appraisals, or costly unexpected repairs. Fewer surprises, less stress.

Next, it was time to build the internal strategy ~ to design the perfect brokerage from the inside out, setting in motion the systems and resources that would allow agents to deliver exceptional customer service. Liz hired an architect and interior designer who were charged with creating state of the art office environments that would “wow” customers and optimize efficiencies for agents.

Freed from the issues associated with transforming an existing brokerage, Liz was able to focus solely on designing the perfect real estate company. Onerous tasks such as direct mail and creation of marketing brochures would be taken over by the company, freeing up the agent’s time to focus on dealing directly with customers.

Finally, in December of 2003, it was time to execute. Liz began a series of interviews to select the inaugural sales and administrative team. Recognizing that change is difficult for even the most confident salespeople, Liz was uncompromising in her vision. Agents were selected based on their willingness to put self interests secondary to those of the consumer, to commit to lofty goals for learning and professional development, and to set new standards in the industry for professionalism and customer service.

By the end of their second full year, in one of the most competitive markets ever experienced on the Peninsula, Liz Moore & Associates was ranked as the #1 office in overall sold volume. They have maintained that market leader position on the Peninsula ever since.

In the Fall of 2005, the company opened its New Town location in Williamsburg. Two years later, a new 12,000 square foot building was completed to house the rapidly growing Williamsburg office. Today, in the summer of 2010, the Liz Moore & Associates’ Williamsburg office has doubled its market share over the past 12 months to take a seat among the top 3 brokerages in town.

Recognizing that clients were hungry for the Liz Moore commitment to client service in other real estate pursuits, Liz also launched Property Management and Commercial Services in 2005, and 2006 respectively. In 2006, Liz was recognized by the Virginia Peninsula Chamber of Commerce as Entrepreneur of the Year, and in 2009, she was recognized by Inside Business with a Women in Business Achievement award.

What does the future hold for the real estate industry? Who knows? One thing is clear, however; Liz Moore & Associates will be leading the market to the next level.

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Sold to List Price Ratio

One of the most telling benchmarks to track in the local real estate market is the sold to list price ratio. 

This chart tracks the actual sales price as compared as a % to the asking price of a listing.  This particular chart shows the data for the Greater Williamsburg area, residential, but can be run for a particular neighborhood, price bracket, etc.  The conclusions are not ideal, as they don’t reflect prior listings, which may have been at a higher price (for instance, a home is listed for 6 months at $400,000, expires, and then is relisted at $375,000…sells for $350,000 – the calculation will be made $350k:$375k).  However, the trend is still valuable for students of the local real estate market as it shows whether or not offer prices are trending up or down.

Looking for a Better Return on Your Investments Than You Get in the Stock Market?

Look no further!  The Savvy Real Estate Investor has released its new Deal Analyzer software, which is designed to calculate returns on investment for prospective investors.  Purchase price, loan terms, appreciation rate, taxes, expenses and other factors must be considered when you evaluate a real estate investment. Use this calculator to help you determine your potential IRR (internal rate of return) on a property.

With interest rates at historic lows (5.25% last week for investment properties with a 25% down payment), and inventory levels at all time highs, it’s a great time to check out the market.  You can search REO and bank owned properties, as well as foreclosures and short sales, for free at www.TheSavvyRealEstateInvestor.com.

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What Does $1 Million Buy in Williamsburg, Virginia?

One of my top agents in Williamsburg, John Womeldorf (aka, Mr. Williamsburg) had a great post on his blog this morning.  There are 58 homes listed at or above $1 million dollars in the Historic Triangle currently, with the top of the heap coming in at $5,900,000.  Click here for all the details, and check back in a few days for info on the top sales in the area.

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3.25%!

Wow!  I can honestly say I never thought I would see rates this low.  I have been bragging for a year when I refinanced my personal home at 4.5% that we wouldn’t see it lower!   And, it seems that the significance of the low rates is getting lost in the blur of such a volatile real estate market.

If you’re not in the market to buy a new home right now (move up, down size, or just try something different), then you should be seriously considering a refinance.  With a good credit score, you can get a fixed rate, 30 year loan at 4.25% for no points, and an adjustable rate at 3.25%!

Why consider an adjustable rate?  This particular program is fixed for 5 years at 3.25%, and then has a cap that would max it out at 8.25% only if interest rates continued to escalate over the second 5 years.  So, if you think you may only be in your next home for 5 years or less, it’s a great option!  Also a terrific option to help a college age get into their first home with a really affordable payment.

If you plan to be in your home longer than 5 years, than a low interest fixed rate is definitely the way to go.

If you can swing a 10 or 15 year loan, interest rates are 3.75%!!  The rule of thumb is that if the new interest rate is one point below your current rate, and you’re going to be in the home for at least 2 more years, and the fees are reasonable, then it makes sense to refinance.

Interested in exploring options?  We are fortunate enough to work with several great local lenders.  The rates quoted here are from Sun Trust loan officer, Nina Efird.  I would be happy to hook you up….just give me a call!  Or, you can visit www.lizmoore.com, click on buying and then mortgage calculators (http://lizmoore.com/buying/mortgage/calcs/index.php), and check out our calculator to see how long it will take to recoup your savings.

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Insurance Tips for Investors

One of the “insider secrets” we share with our Landlords in our property management program is the importance of requiring tenants to secure their own insurance.  The landlord’s dwelling coverage would insure the structure, but not the tenant’s possessions.   A renter’s policy provides provides personal property and liability protection for the tenants.

So, why should I as the landlord, care whether or not the tenant has a renter’s insurance policy?  Because, if there is an accident, it is best that your tenant’s policy does the heavy lifting.  A kitchen sink overflows and damages hardwood floors, a grease fire in the kitchen causes major damage, or your tenant’s dog bites a neighbor – all of these accidents would be covered by the tenant’s policy.

We require tenants in our property management program to carry at least $300,000 in personal liability on their renter’s policy, and to list our landlord as an additional insured on the policy (that way we are notified by the carrier if the policy lapses).

Be sure to check with your insurance agent for policy exceptions and optional coverage.

Tax Benefits of Home Ownership

I am often asked to explain, in simple terms, what the tax benefits of home ownership can be.  The tax deductions that you are eligible to take for mortgage interest and property taxes greatly increase the financial benefit of home ownership.  Here is how it works:

Assume that you pay $9,877 in mortgage interest in one year (based on a loan of $150,000 for 30 years, at 7%, assuming you are in the 5th year), and $2,700 in property taxes annually (1.5% on $180,000 assessed value).  You will be able to take a tax deduction for $12,577.  In order to translate that into your actual savings, multiply your total deduction by your tax rate.  Assuming you are in a 28% tax bracket, you will lower your federal income tax by $3,521.56 ($12,577 X .28).

There are additional benefits (as well as potential consequences) with investment property, so be sure to pow wow with your accountant prior to making a decision.  Mortgage interest may not be deductible on loans over $1.1 million, and deductions are decreased when total income exceeds a certain level.

Liz Moore Top Agent gives Market Overview Presentation in Fords Colony

Liz Moore & Associates agent Deelyn Neilson recently presented a 2 hour in-depth review of local market trends and statistics, focusing specifically on the Fords Colony market.  The event was hosted in a meeting room in the Fords Colony Clubhouse, and was attended by over 50 Fords Colony residents. Neilson is a 14 year Fords Colony resident, as well as Liz Moore & Associates Top Overall Agent in 2009.

“I have fielded so many questions about values in Fords Colony, as well as the impact of the bankruptcy announcement on real estate activity,” says Neilson, “that I decided the community would appreciate a forum to take a closer look at the trends.” Neilson’s presentation included an in depth analysis of data such as days on market, price per square foot, sales price to list price ratios, etc. She also focused on the most important steps a homeowner could take to enhance market value.

The seminar was very well received! “We had standing room only,” reports Neilson, “and many requests to make this a quarterly event.” Interested in an e-mailed version of Neilson’s presentation? You can contact her at deelynneilson@lizmoore.com, or by visiting her website at www.PremierWilliamsburgRealEstate.com.

Average Price per Square Foot

There are many metrics that can be helpful in a real estate purchase –whether you are the buyer or the seller.  One of those metrics is calculating the price per square foot.

In the greater Williamsburg market, that number is hovering around $143 for sold properties, which is up slightly over the same time last year.  That’s a good sign for the market, as the supply and demand begins to stabilize.

Trying to determine the right offer price can be tricky in this market, and evaluating recent comparable solds by comparing their price per square foot to the asking price can give you a benchmark.

It’s not a perfect predictor of value, however, because certain improvements can make a significant difference.  For instance, if the house you’re considering is brick, or has extensive detailed trim work and moldings, and the properties that you’re comparing are not brick and don’t have the same quality of trim work, then you should expect to pay a higher price per square foot.

This is where a good agent can be very helpful – they have experience and can spot variances that will be instructive in your comparisons.

 

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The Best Kept Secret in Williamsburg!

Liz Moore & Associates, and Debbie Cobb and Elaine Roberto, have been selected as the exclusive marketing company for Brandywyne, a community of maintenance free single family homes tucked away in a beautifully manicured setting, an easy stroll from the historic district of Colonial Williamsburg. Charming lamp posts and tree lined streets give Brandywyne a European village feel.

“We are thrilled to have been chosen for this opportunity” says Cobb, who has lived in Brandywyne since 2004, and is a huge fan of the resort style lifestyle. “There is a very special and unique sense of community here, and for those that want to participate, there is always something going on…everything from bridge, zumba and mah jong in the community clubhouse to water aerobics classes at the pool. Neighbors enjoy a short stroll downtown to enjoy events such as the Grand Illumination, a 4^th of July celebration, and everything Williamsburg!”

According to Roberto, “The winning combination of a City of Williamsburg location – with low taxes and the ability to walk downtown in minutes, and exceptional, quality built single family homes and great amenities - makes Brandywyne a must see for anyone interested in a no-maintenance lifestyle. All lawn care, including irrigation, is taken care of for you, freeing up your time to enjoy life!”

There are a limited number of opportunities to live in Brandywyne remaining, as the marketing is in its final phase, so don’t hesitate. Interest rates are at historic lows, and it’s a great time to explore a new home. To visit the models or for more information, call Debbie or Elaine at 345-8944 or e-mail brandwyne@lizmoore.com.