Thinking of Buying a Home? Linchpin’s First 3 Steps to Home Ownership

You’ve decided to buy a home! Our buyer’s system consists of 10 steps to homeownership. Read below for the first 3 steps.

Step 1: FINDING A BUYER’S AGENT

Find a Real Estate Agent that represents YOU.  As of July 2012, Virginia has a new agency law that requires that you enter into a written brokerage relationship agreement with a REALTOR® prior to viewing a home.  A Buyer’s Broker Agreement describes the duties and obligations of all parties, a specific start and end date, and how your REALTOR® will be paid (don’t worry…this is usually paid for by the seller).

Remember, this is the law and if an agent shows you a property without have you sign an agreement, they are breaking the law. When a buyer schedules an appointment with the REALTOR® whose sign is the front yard of a home, they are scheduling a showing with the seller’s representative.  Not to say that the seller’s REALTOR® will not look out for the buyer and perform ethically, but a buyer deserves a REALTOR® that is 100% on their side to help them make the largest purchase of their life.

A Buyer’s Agent does so much more than just drive around and show you houses.

They will:

• Listen to your needs as a buyer
• Communicate your needs to other parties
• Educate you on the entire process
• Negotiate the terms of the contract for you
• Adhere to deadlines and contingencies in the contract
• Work to find as much information on your behalf during the process
• Negotiate inspection items
• Coordinate the closing process
• Keep your information confidential for life
• Ensure that paperwork is maintained

Most importantly, a Buyer’s Agent is your advocate. Your Linchpin Buyer’s agent is regarded as the essential or coordinating element through the home buying process.

Step 2: FINDING A LENDER.

We always tell our buyers that it is not what you can afford but what you want to afford. Linchpin Real Estate Group has a handful of LOCAL lenders with local underwriters. The lenders are familiar with Richmond’s current market and can help determine the price range where you feel most comfortable.  There are many mortgage products out there to fit a wide range of borrowers with varying financial situations. Mortgage guidelines are constantly changing. A common mistake that is made by buyers is not finding the right mortgage for their situation.  When you use a Linchpin Approved Lender you know that you are receiving the best mortgage and best customer service available. Your lender will discuss the options with you to make sure that you are making the best decision for you.

Unfortunately, buying a house isn’t free and a lender can help determine how much cash you will need to purchase your home, from closing costs to downpayment. Understanding the process helps you to avoid surprises down the road.

This is most important part in the initial steps is the pre-approval Letter. Your lender will issue you a pre-approval letter.  This will be sent to the seller along with an offer to prove that you are eligible to purchase the home you find.

Step 3- BUYER’S CONSULTATION

When you are pre-approved to purchase your home it is important to sit down with us and discuss your needs and what you should know. Knowledge is power. The Buyer’s Consultation is designed to help you understand the process. At this time you will:

• Determine your motivation and time frame
• Determine your criteria for your home search
• Gain an understanding of the Richmond Market
• Gain an understanding of current inventory
• Review the Buyer’s Agency Agreement
• Discuss open houses and for sale buy owner properties
• Set up your personalized website search
• Discuss Purchase Contract
• Discuss home inspection
• Discuss loan commitment
• Discuss the closing process

NEXT STEP: The Home Search… Contact us if you would like more information on our 10 steps to home ownership. linchpinrealestate@gmail.com or 804.467.1881. 

What do you love about Richmond? Love letters to RVA:

What a fabulous idea from Ms. Crowder, Fox Elementary’s fabulous art teacher.  She is certainly at the top of my list of things I love about RVA. Her idea:

This Valentine’s Day, let’s write a love letter to our city. On the night before Valentine’s Day, cut a heart out of pink or red posterboard. Decorate it as you would a valentine, as simple or elaborate as you like. Write one very specific thing that you love about Richmond on your heart. Tape or glue the heart to a pencil, chopstick, paint stirrer or ruler, and drive it into the ground in front of your home, business or school. Let’s let Richmond wake up to a city that loves itself, to a city that finds beauty in the details. Invite anyone in Richmond who you think would be interested to join this group. The world is what we make of it. This city is what we make of it.

……………….

“The world is what you make of it, the city is what you make of it.” What a beautiful thought. Join us, tell us what you love about RVA. I would love to see this city covered in RVAlentines.  

 

Is LEED right for your home?

If you have not heard of LEED, let me back up, it stands for Leadership in Energy and Environmental Design.   It is a certification program, run by the U.S. Green Building Council, for buildings designed to the highest green, or sustainable, practices.  If you want all the fine print, you can find it here:  USGBC.

LEED is one of several certification programs in the US, along with Earthcraft, Energy Star, and Passive house to name a few.  I won’t fill up this post outlining their differences, benefits and deficiencies.   A quick Google search will give you more than you ever wanted to know.  In short, they all have different ratings systems, levels of complexity and at the end of the day, forms to fill out.

Any program that asks us to design more thoughtfully and build to a higher standard deserves some recognition, however many consider LEED to be the model for green building, and for commercial building it is.  In fact, all new US Federal buildings are now required to achieve at least LEED Gold certification.

What really sets LEED apart is that it concerns itself with much more than basic energy efficiency and conservation.  The system goes beyond to factor how a building will participate with its surroundings, the health of its occupants, and even the miles a material will travel to the site. It gains my respect for this comprehensive approach, but it is not a perfect system and likewise not appropriate for every home.

So, is LEED right for your home?

As LEED-Accredited Professionals, our clients often ask us about LEED; there always is one question we ask in return:  That is, why do you want the certification?  Keep in mind this is not a sticker you send away for in the mail.  It is a sizable time and monetary commitment involving a team of professionals, and it requires a good bit of forethought.

The answers vary: Achieving LEED certification may have personal value, it may come with some notoriety, or perhaps you’re thinking resale.  (Something perhaps our realtor friends can weigh in on.)    Really, the only wrong reason is, your architect wants it for his portfolio.

Don’t misunderstand; if you are already committed to sustainable design and are considering LEED, I am not advocating you lower your standards, but I have to question:  Why not use the same principles?   Why not use the same thoughtful design?   Why not use the funds that would pay for LEED paperwork and invest in better building practices and materials instead?    This is my vision that we strive to achieve a higher, healthier, more thoughtful standard, whether there is a shiny plaque at the end telling the world we did so or not.

Market Update 2012: The Museum District

In 2011 house prices in the Museum district were at an average at $168 per sf, compared to $171 in 2012.  House sales were up with 50 being sold in 2011, and 62 sold in 2012.

For non-Richmonders, the Museum District is located west of the Fan District and North of Carytown.  Built predominantly during the 1920’s, this neighborhood is steps from the Virginia Museum of Fine Arts and other Museums along Boulevard. It is rich with stylish architecture including: Queen Anne, Romanesque, Revival, Colonial Revival, Mediterranean and Tudor Revival to name just a few.

Pricing a home by using a per square foot value is nothing more than dividing the total value of the property by the total air conditioned square feet of the home. The method of deriving a value by an area price per square foot is not considered to be the most reliable valuation technique. Instead, it should be seen as one real estate metric used in valuation. In the last Market Update on the Fan District, it was pointed out that using a average price per square foot to find the price of a house is like using the average temperature in a hospital. I love that comparison, and agree that each house is unique, especially in the City. What materials were used in construction? What is the condition of the house, what is the layout? How many bathrooms are in the home? Many factors contribute to the specific price of a property. Do not use the average price per square foot to price a house.  Do understand though, that many buyers ask about the average price of an area. Use these market updates to understand the (slight) improvement in the economy from 2011 to 2012, and to compare the different neighborhoods.

Market Snapshot 2012: The Fan, Richmond, VA

What we have is volatile flatness, with short-term ups and downs and overall averages remaining relatively flat. This is partly because we are measuring a small area, the Fan neighborhood. One month could give us 5 sales, with a low average price per square foot, and another month, the opposite. Overall, the average price per square foot for the year (2012) is $176 with 99 houses sold. The year prior, 2011, we had $173 average  price per square foot with 93 houses sold.

Spikes in the number of houses sold, and price per square foot occurred in April and May of each year, which holds up the theory of the spring market. December 2012 was also positive   – with a total of 10 houses closed.

Inventory for the Fan remains low, so if you are considering selling, the competition is low and the prices are better than years prior. Now might be the time. The trend we are seeing with current buyers is that they want move-in ready condition, and while they aren’t trying to get the house for free, they want to make sure that their investment in a home will bring positive equity over time.

MSG Free: What’s an alternative to stainless?

As a REALTOR ®, I am programmed for every wall to be beige and every kitchen to have maple, stainless and granite, or “MSG” as one client (un)affectionately put it. I followed the rules when designing my own kitchen but rebelled with the cobalt blue backsplash. I am constantly thinking of what my next kitchen will look like, my “forever” kitchen, knowing that I want it to be timeless, functional and fun, as I spend more waking hours in the kitchen than I do any other room of the house (okay, maybe except for the living room…I have a big, comfy sectional couch and a Beverly Hills, 90210 addiction). As a follow-up to Laura’s blog post about life after granite, I ask: What’s an alternative to stainless?

RETRO APPLIANCES ~ These appliances make me want to swoon. The Big Chill has a gallery that will suck you in and inspire you to haul your current appliances out to the curb. It is a misconception that retro appliances mean you need a retro style kitchen. My favorite rooms are ones with multiple styles and a whole lot of personality.

CUSTOM APPLIANCES ~ In addition to the Sub-Zeros and the dishwashers with the cabinet fronts, today’s color technology allows you to have appliances made to match any color with a pantone or RAL code.  I imagine appliances in a grey-er shade of a colorful wall paint with Shaker style birch cabinets, modern, sleek hardware and a matte clear glass backsplash.  Can you see it?  Until I come up with a way to create it on paper, here are a few more examples:

Contemporary Kitchen design by Seattle Interior Designer Shuffle Interiors

THE NEW WHITE ~ Just when I think white appliances are outdated and so ”bleh,”  Whirlpool comes out with their new Ice Collection.  I wouldn’t hesitate to put these in my kitchen.

Whirlpool ICE

SLATE ~ “Welcome GE’s new fashion-forward finish, Slate: a color that is just as stylish and sophisticated as stainless steel but with a strong, earthy feel” (GE’s words, not mine).

And, of course, you can always whip out a can of spray paint.

5 Common Inspection Issues

The standard Virginia sales contract gives the purchaser a window of time to inspect the property before closing. During this time, purchasers hire a general inspector to review the structure of the house, and the inspector provides general feed back on the systems, such as heating, AC, electrical, plumbing, insulation, windows, and doors. A good inspector will provide a detailed report complete with pictures and information on your potential new home.  The cost is generally $400-$500, but the information you gain is worth the cost.

Below are 5 issues that I typically see come up on an inspection:

1. Old or damaged roof. A roof gets beat by the weather all year round, and even a well maintained roof will show the need for maintenance after an inspection is performed.  The inspector should be able to tell you the general age of the roof and the life expectancy. Damaged slate tiles are typical in Richmond’s older neighborhoods, but can be an easy fix.  Improper or damaged flashing around the chimneys and porches is also typical.  The fixes, while important for obvious reasons, are not typically expensive as long as the roof can be repaired and the seller has not allowed water damage to occur. Having to re-roof a house does get expensive, and varies in cost depending on the material used.

2. Moisture under the house. Protecting your home from water is a continual homeowner’s task.  Water is obviously bad for the house, and it manages to find a way into the home any way that it can.  Moisture under the house causes mold and rot, and can do so fairly quickly. Moisture also sends out an open invitation to termites and other wood destroying insects. Ensuring that the gutters drain properly and having the grading corrected can also prevent a lot of moisture intrusion. Additionally, conditioning you crawl space is an easy and fairly inexpensive way to keep moisture out of the crawl space, and it has the added benefit of making your home more energy efficient.

3. Deficient or older heating systems. An important issue to note on an inspection is the life expectancy of the heating system. If the furnace from 1977 is still chugging along and is in “working condition” there is not much you can ask the sellers to do aside from having the system checked and cleaned. Keep this in mind when you make an offer. Gas furnaces need to vent the gas out of the house through a chimney. These chimneys should be lined with stainless steal, and should be inspected by a chimney inspector to ensure that the flue is safe for use. Remember, even if the house has been converted from gas to electric, it may still use a gas water heater. In this case, you will still need to inspect the flue for cracks. This is an important item that you should budget and plan for replacing should the need arise. Keep in mind that high efficiency units will lower your bills significantly.

4. Minor plumbing and electrical. I tell each of my buyers that at the end of your inspection you will have a “to do” list of small items that need to be repaired. I like for buyers to be prepared for this because asking a seller to tighten a loose faucet is not the best way to negotiate bigger issues. Owning a home comes with responsibility and a list of things to do will always exist. The important thing is to maintain the home so that the list never gets out of hand and the floors are never damaged from a small leak under the sink. Hiring a plumber or an electrician for the day is an easy way to knock the small items off the list. Hiring a plumber or an electrician for the day is an easy way to knock the small items off the list.

5.  Floor Joist, beams, and rafters. Broken, cracked, damaged, eaten by bugs, moldy, cut into by Mr. Homeowner’s quest to get the cable line through the floor, I’ve seen it all. It sounds scary too. The good news is that while a floor joist is very important to the structure of the house, contractors can normally fix this easily by sistering the board.

Buyers should be prepared to walk away from a deal if the numbers don’t match up–it may be the financially responsible choice. There will be other homes you love too, I promise.

On the other hand, most inspection issues can be remedied with money and you can ask the seller to provide a credit if the item was unknown and a large issue. You can compromise. Keep in mind that negotiation is not necessarily about the “principle” of the matter but getting the right house that you can afford, repairs and all.

Color Trend: Go-To Neutrals

When the guy in the office across the hall from ours told us he was going to have his office painted white, we wondered what shade–there are so many! Well, to him there is only one shade of white, and I’m pretty sure his whole office is now painted in primer (trim included). Choosing the perfect paint color can be intimidating, but there are many, many resources with tried-and-true shades so you’ll never have to resort to “white-white” (find links to Candice Olsen and Sabrina Soto’s favorite neutrals, among others, on our “Neutrals” board on Pinterest).

The trick to picking the perfect neutral is to select a color with a greyish base and just a hint of color. For instance, grey + green = sage, grey + beige = “greige”, grey + brown = mushroom. Pair your neutral with a slightly off-white trim for a sophisticated finish, but again, look for that neutral base in the off-white (avoid anything with pink, yellow, or blue undertones). Below are a few of our current favorites, but remember: Color is relative! Always take home a swatch to view in your space at various times of day and night before committing to a color.

Just say NO! Glass Block

Let’s play a word association game. When you read “glass block,” what is the first thing that comes to mind? If you say Maison de Verre or anything related to WG Clark, you get a gold star. If you say bathroom window, interior partition walls, or the 1980s, read on–this post’s for you. I’ll spare you the full history lesson, but let’s suffice it to say that glass block was NOT designed to be used as a “window” of any sort, nor was it created for interior partitions (particularly half-height ones or curved shower walls), although it DOES evoke memories of the 80s… Needless to say, as a designer, few things make me cringe as much as when a client suggests using glass block in their brand new space: It is one of the easiest ways to instantly date your home. When I question why they want to use glass block, they always respond, “We don’t think that a normal window (or wall) will work, but we don’t know what other options we have.” Below are the two most common reasons we see people turning to glass block and some suggested alternatives.

Glass block + neon–it doesn’t get any more dated than that!
Photo credit: Jo Naylor

The problem: Privacy

The solution: Translucent glazing. When window treatments are not ideal (you don’t want curtains hanging over your tub), consider treating the glass itself to admit light into the space while blocking your neighbor’s view. This can be achieved by using etched glass–either etching the glass on the window itself or by overlaying a panel of etched glass on top of the existing window–or by applying a film directly on top of the glass. The possibilities for personal expression abound with either option and each have their place in different applications.

This lovely window film is easy to apply as well as easy to change, unlike glass block.

The problem: Water infiltration

The solution: Proper construction. If you have a window in a wet area, a wooden sash and window frame are potential liabilities. However, with a little careful planning and foresight, you can seal that window up. First of all, caulk is your friend: Make sure to seal up every possible joint where water could potentially infiltrate beyond the barrier. Secondly, use exterior-rated paint on any wooden surface and make sure that wood is never exposed to the water. Finally, consider replacing your wood sill with stone or concrete or modifying its slope so that water never sits on it. Once you’ve made sure your shower window is water tight, just make sure it’s peeping-tom-proof and you’re all set!