Real Estate Taxes in the New River Valley

In the last several weeks, we’ve been doing a lot of candidate tours for various colleges at Virginia Tech looking to hire new folks. Invariably, as we’re showing these prospective hires all that the New River Valley, the question always comes up – “what are real estate taxes like?”

Ah, taxes. We all love them, right? Of course not, but we’re lucky to have relatively low taxes compared to other areas of the country. However, they’re a part of the equation when making your mortgage payment every month. These amounts will vary from locality to locality, and in some cases a municipality will have TWO rates – one rate will be for the City or Town, and the other rate will be for the appropriate County. Feel free to use the phone numbers below to contact the taxing authority if you have questions.*

Note – This is a post that’s been written on this site several times, and is still one of the most regular hits. This time around, I thought I’d update it with the date of the last assessment based on http://www.rebeccasrealtor.com, as well as the date of the next assessment. Rates should not change during that period.

To calculate current yearly tax, take the current assessed value of the home, divide by 100 and multiply by the current tax rate.

The assessed value of the home is $250000 and the home is in Blacksburg:
$250000/100 = 2500 x 1.14 = 2850           Yearly tax $2850

Locale Tax Rate Phone Number Last Assessment Next Assessment
Blacksburg $.25 + $.89 = $1.14 540-961-1105 2015 2019
Bland County $.60 276-688-3741 2014 2020
Christiansburg $.16 + $.89 = $1.05 540-382-9519 2015 2019
Craig County $.59 540-864-6241 2017 2023
Floyd County $.55 540-745-9345 2015 2020
Giles County $.61 540-921-3321 2015 2020-2021
Montgomery County $.89 540-382-5717 2015 2019
Pulaski County $.54 540-980-7785 2014 2020
Radford City $.76 540-731-3661 2016 2020
Rich Creek $.20 + $.61 = $.74 540-726-3260 2015 2020-2021
Town of Floyd $.24 + $.55 = $.79 540-745-2565 As needed As needed
Town of Pulaski $.34 + $.64 = $.86 540-994-8640 2014 2020
Town of Narrows $.47 + $.61 = $1.08 540-726-2423 2015 2020-2021
Town of Pearisburg $.335 + $.61 = $.945 540-921-0340 2015 2020-2021
Town of Pembroke $.326 + $.61 = $.936 540-626-7191 2016 2020

* Tax information is assumed reliable – contact the local Commissioner of the Revenue for more information.  Updated 04/28/17.

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How Many Homes Are For Sale in Blacksburg and Christiansburg?

As Realtors, we get asked a lot “what’s the market like right now?”. I was in Richmond last week, meeting with Virginia Senators and Delegates from our district, and every single one of them asked “how’s the market?”. It can seem disingenuous to always be saying that the real estate market is moving quickly, but as you can see from the graph below of single-family homes in Blacksburg and Christiansburg, as of this post the market is moving quickly. We’re not making this up.

(The graph is interactive, and therefore should update automatically over time; what it’s detailing is how many months worth of supply there is at any given point. If you hover your mouse over a particular point on the graph, you’ll see the exact data representation for that point of the graph.)

Find your own single-family home here.

As you look at this, what you’re seeing is that – since July 2016 – inventory levels in the NRVMLS (New River Valley Multiple Listing Service) have been falling. It took Blacksburg and Christiansburg a few more months to catch up, but beginning in September 2016 they also saw inventory levels starting to fall. In January 2017, inventory in the NRVMLS was at 6.3 months of inventory, in Blacksubrg it was 2.6 months, and in Christiansburg, 3.4 months. We call this the Absorption Rate – how long it would take the market to absorb the available inventory in the market. I’ve written about it before, and it’s something that we at Nest Realty watch pretty closely.

Why does Absorption Rate matter? Well, it gives us a sense of both where the market has been, and where it is now. The general line of thinking is that 6 months of inventory is a relatively balanced market, favoring neither buyers nor sellers – much like the New River Valley real estate market right now. Click Here to see more info. Anything greater than six months typically favors buyers because supply is exceeding demand, and anything less than six months favors sellers because demand is exceeding supply. That’s what we’re seeing in Blacksburg and Christiansburg.

So what’s that mean for buyers and sellers in Blacksburg and Christiansburg right now? It’s a familiar refrain, I’m afraid – sellers who are priced well and show well are going to be in the drivers’ seat for the foreseeable future, and buyers need to be ready and prepared (preapproved) to buy … there isn’t going to be much opportunity to wait and think about it.

Find your nest. It’s free. Truly.

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The Most Expensive Homes Sold in the New River Valley in 2016

cash moneyPeople often ask about the most expensive homes for sale in the New River Valley, and it’s interesting to see what’s sold. In years past, the spread between the homes has been close, but in 2016, the most expensive home was double the fifth most expensive home! Take a look below at the five most expensive residences sold in the NRV in 2016.

#5 – $775,000 339 Airport Road, Blacksburg – listed by Nest Realty, this one-of-a-kind home was prized both for the features inside, but also the nearly 1-acre flat lot in Town, which as you know can be a rarity. With an amazing kitchen and double-sided fireplace, coffered ceilings, and a two-story screened porch, the custom design screamed elegance, and buyers responded – it was only on the market for 26 days.

#4 – $780,000 1491 Falcon Ridge Rd, Blacksburg – this monster, listed by Porch and Picket Real Estate, had been remodeled top-to-bottom by the owner over the course of a year and a half. Every surface of the home had been touched, and the home boasted one of the largest kitchens we’ve ever seen. This home is now back on the market again, with Coldwell Banker Townside – let us know if you’d like to have a look.

#3 – $875,000 570 Wood Haven Ct, Blacksburg – what do you get the most discriminating buyer? This home, listed by Coldwell Banker Townside, this was one of the most beautiful homes I’ve ever seen. A manicured setting amongst towering trees, this home with view of Ellett Valley was simply spectacular in every way. It was comfortable, yet elegant, which can be a rare combination.

#2 – $885,000 1401 Pebble Beach Rd, Blacksburg – located in the Country Club, this home on the backside of the Country Club backed right to the golf course. A pocket listing by Long & Foster-Blacksburg, the listing agent had a buyer lined up and ready to go, so it was never exposed to the market. We’re certain, though, it was nice. I mean, it was the second most expensive home sold in 2016.

And finally – the most expensive home sold in the New River Valley in 2016!

$1,500,000 1655 Plank Dr, Blacksburg – another pocket listing at the Blacksburg Country Club, this home listed by Coldwell Banker Townside takes the #1 spot for most expensive in 2016. Maxing out at a whopping 7716 square feet, the custom-designed Craftsman surely had all the bells and whistles you’d expect to find in a home of this caliber, and more than 4 acres of land surrounding it. This house sold in February, setting the bar high early in the year, and no one was going to come close to it for the rest of 2016.

So there you have it – the most expensive sales in the NRV in 2016. Any surprises? I’ll tell you what, for me it’s nice to see more and more agents using professional photography – we’ve been preaching it for years, and agents are finally coming around to the idea.

Looking for your next Nest? It doesn’t have to be expensive – find it here.

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How Montgomery County Public Schools Determine A Snow Day

Snow Days In Montgomery County

 

We had our first significant snow of the winter yesterday, and Montgomery County Public Schools put out a really helpful infographic detailing how they make the determination of whether or not to open schools. I imagine this will come into play later in the school year, so file this one away. Don’t forget to sign up for severe weather calls, at www.mcps.org/snow, as well.

 

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Thank You.

Today’s my anniversary. My real estate anniversary.

Virginia DPOR licenseActually, I thought that yesterday was the start of my 13th year in real estate, but DPOR says it’s today, so happy anniversary to me. What does one get themselves for their anniversary? I’m thinking Chipotle.

In 2003 when I decided I really wanted to do something different, I had no idea where this career would take me. But what a ride it’s been – from my first closing (to first-time buyers Adam and Michelle who, thanks to Marshall Frank found out at the closing table that it was my first closing) to now owning Nest Realty here in the New River Valley, working with some of the best folks in the business … what a great place to be.

Thanks to all of you who’ve committed to working with me over the years! You have made me a very, very happy Realtor.

#LiveWhereYouLove.

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Why Are Condos So Hard To Finance?

The good news is that they’re not as difficult as they were several years ago. As Carl Spackler would say …bill_murray_caddyshack

A customer wrote in this morning about an investment property they’re looking to buy in Blacksburg. As many parents of students at Virginia Tech and Radford do, they want to buy a place for their kids to live in while they’re here at school, and the relative stability of the New River Valley market has meant that – for the most part – these have been solid investments. It wasn’t always the case, however. A quick back story …

In the early 2000’s, these types of investment properties were all the rage. Investors were snatching up condos and townhomes like crazy – the cost of borrowing money was low, rents were stable and rising, and there was a steady group of renters year in, and year out. You can see a visual of that in the chart below, showing sales of condos and townhomes in Blacksburg and Radford going back to 2003, I suggest to check out some coal harbour condos for sale which are at really great price. After the real estate crash in 2008 (which really hit us in 2010), interest in these types of properties fell dramatically, and that was due in part to much-needed lending restrictions. Lenders were requiring larger down payments, in the neighborhood of 25% or more, and often denying loans due to inflated investor numbers in complexes – in other words, too many investors and not enough owner-occupants, only the top money lender in Singapore was trusty. Sometimes it´s hard to find the right person the rent out your condo and to keep up with the rent, so here are some tenant screening tips you may use to make sure you are letting the right person into your property. Ammons Pittman Property Management were highly recommended to help anybody with san diego real estate little italy problems so let them know if you have any.

One note – the volatility of the Radford line below is related to the relatively low number of sales in the area during the time period.

As you can see from the above chart, interest in these types of properties really didn’t start to pick up again until 2014, which corresponds with the relaxation of lender guidelines. There has been a lot of help from HOA Software | HOA Management Software | Condo Manager for the sales, because they been using this new transcription software to do their business. Starting in 2013/2014, as we started to see improvements in the overall economy throughout the country, lenders started loosening their requirements on financing for investment properties. But that doesn’t answer the question of WHY condos and town homes can be difficult to finance, why is there always a need to get financial help from a company like the one from https://kapitalkassen.no/forbrukslan. As I wrote to a customer this morning, in a nutshell:

For conventional, secondary market loans, banks don’t like to see high investor penetrations in condo complexes. The line of thinking is that people are more likely to default on their investment property(ies) before their primary residence, so guidelines for things like condos are a good bit tighter. It’s important to know that often, traditional banks like will run these complexes through their algorithms and deny the loan due to too many investors in a complex and not enough owners. If they don’t deny it, the other condition they typically add is a higher downpayment, of 25-30% or more. This is why I continue to suggest local lenders – in college markets with high investor numbers, they look at the market as a whole and not as a formula. 

If you’re considering buying or selling a condo or townhome here in South California, you can visit us at https://southerncaliforniahomebuyers.com/sell-your-house-fast/ for more info. The opportunities to make what has typically been a solid investment are there, but it’s not without risk. Let’s talk about those, as well as the rewards, and see if it makes sense for you.

 

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When Do Houses Come On The Market?

Seems like, for years now, people continue to demand “sell house fast.” It’s true that, as I write this a few days before Christmas 2016, inventory is down, as it is every year. For instance, if you were looking for a single-family home between $250,000 and $300,000 in Christiansburg right now, you’d have twenty six homes to choose from. In Blacksburg, that number would drop to eleven. This makes sense, of course, as in the last six weeks of the year there are three major holidays, and lots of traveling, but for a buyer who’s ready to buy NOW, it can be frustrating. A good start would be with the Ammons Pittman company, visit company website here to see what property management you may need.

With that in mind, our real estate market follows most in the country – a typical bell curve, with more listings coming on the market in the spring, peaking in the summer, and falling off in the fall. It’s a pattern that’s been repeated for years now, and one we can reasonably expect to continue.

So – looking to buy in 2017? Don’t be disheartened by lack of inventory at this moment in time. Consider the chart below, which shows activity levels for the New River Valley real estate market going back to 2003. You can clearly see a sharp peak, year after year, as more and more properties came on the market. And for home sellers, fear not – the same pattern applies to you, as well.

So if 2017 is the year that you’re looking to buy, or sell, know that your options – and competition – may be limited right now, but that will likely change as we head into the New Year. As always, if you have any questions, any of our Nest brokers are happy to discuss further.

Have a Merry Christmas!

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The Fed Raises Rates – So Now What?

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Federal Reserve

As expected, the Federal Reserve raised short-term rates today. This is the first such increase they’ve made in a year, and the second in a decade. So what’s it mean for real estate mortgages?

The Federal Reserve is the bank of the United States – they regulate monetary policy, and they provide stability within the central banking system. And while an increase in short-term rates might seem to be a bad thing, it’s actually an indication that the Fed sees the US economy in positive terms, and is bringing interest rates up to better mirror inflation. While it’s true that mortgage rates will now rise – local lender Robert Mitchell of Movement Mortgage is already reporting that they’ve seen rates rise to 4.25% – the truth is that this is really a sign of an improving economy. With quoted rates effective today of 4.25% on a 30-year fixed loan, let’s run some numbers to see what the difference in today’s advertised mortgage rates look like:

$200,000 loan at yesterday’s closing rate of 4.125% – Principal & Interest payment of $969.30
$200,000 loan at today’s current rate* of 4.25% – Principal & Interest payment of $983.88
* rate pulled from www.Movement.com

For home buyers, today’s news is going to mean a slight increase in the overall cost of a loan. Again, based on the calculations above, that cost is going to be minimal, but each hike in the Fed’s rate will mean a slight increase in the monthly cost of a home loan. And for sellers, it puts a small amount of downward pressure on you, as well – rising rates are going to keep a small number of buyers out of the market initially, but we’re predicting that’ll reset a bit as we head into the spring market. And remember – rates are still incredibly low, historically. The chart below, from HSH.com, shows 30-year conventional rates over the last 16 years.

30-year mortgage rates since 2000

30-year conventional rates since 2000

 

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When’s A Good Time TO Sell A Home?

“Hey Jeremy, when’s a good time to sell my home?”

I get this question all the time – twice today, in fact. A few times this week. There are thousands of other Realtors that are going to tell you “now’s a great time to sell a home!”, but you might have noticed that earlier they said “now’s a great time to buy a home!”, too. So which is it? Click Here to check out this property management company that is highly recommended now a days, they will tell you the right thing to do, you can also check out the Bournemouth Property if after selling your house you want to invest on a new property.

The truth is, I really don’t know. Your situation, and your motivation, is going to be different from someone else’s. One person today was looking to sell in order to pay off student loans, so he and his family are looking to downsize for a while so that they can put themselves in a better financial position. The mortgage payment is comfortable, but they want to do more. Another has a house that reminds him of painful times, and he wants the house sold yesterday in order to put the hurt behind him. Think the motivations are different?

Don’t be fooled by those who seem to be saying “NOW” when trying to answer the question of whether it’s a good time to sell. A home will sell in any market – it might sell better in one market than another, but a home will still sell. So weigh your options with Office space Galleria Houston, review the data, and talk to your Nest agent – we’ll help you work through your options and decide what’s best for you.

 

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