Category — Real Estate Report

Groundbreaking ceremony at Hammock Pointe.

Building on a tradition of excellence with careful attention placed on preserving the quality of Smith Mountain Lake and the environment for future generations, The Willard Companies announced its newest residential development, Hammock Pointe at a formal groundbreaking ceremony. Hammock Pointe will feature 17 waterfront cottages located in The Farm residential community on Rt. 616 Scruggs Road in Moneta, Virginia.

According to Ron Willard II, Vice President of The Willard Companies, “Hammock Pointe homes will be constructed in accordance to the Earth Craft House^TM green building program. These new waterfront homes will be some of the most energy efficient homes in our region. Our goal is to create a healthy living environment for our customers and deliver cost savings through energy efficiency.” 

Hammock Pointe will be the second all residential community at Smith Mountain Lake built in accordance to the Earth Craft House^TM program built by The Willard Companies. The EarthCraft House^TM is a green building program that serves as a blueprint for healthy comfortable homes that addresses energy efficiency, durability, indoor air quality, resource efficiency, waste management, and water conservation.

Starting at $584,000, Hammock Pointe, a maintenance-free community, will offer three different open living architectural plans to choose from. The cottages, ranging from 1,950 – 3,034 sq. ft., are named “The Azalea”, “The Boxwood” and “The Crepe Myrtle”. Each style features HardiPlank® siding exteriors, MARVIN® windows and doors, cupolas and covered porches. The interiors include trey ceilings, gas fireplace, Rinnai tankless water heater, spacious master suites, and ENERGY STAR certified state-of-the-art appliances.

Amenities within the community will include a picnic pavilion, pool, community dock, and community boat storage area. Homeowners at Hammock Pointe will each have a covered boat slip. In addition, ownership offers the opportunity to join The Waterfront Country Club with no initiation fee.

The Farm community features a total of 63 properties including 33 lots, and 13 estate lots ranging from 1.7 to 5.4 acres in size. The lots and estate lots are water access via a community boat ramp and are also available for purchase.

For more than 30 years, The Willard Companies has pioneered and exemplified excellence in the construction, planning and development of premier golf and country club communities at Smith Mountain Lake. With a commitment to the highest standards of quality and customer service, The Willard Companies has produced the most exceptional residential communities in the region, including The Waterfront, The Water’s Edge and The Boardwalk. The Willard Companies is nationally recognized as both ENERGY STAR and Earth Craft House^TM certified builders.

For more information about product specifications and pricing, contact Prudential Waterfront Properties at (540) 721-8659 or visit The Farm online at TheFarmatSML.com. 

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Office Hours
Monday-Friday 9 a.m. – 5 p.m.
Saturday, Sunday and Holidays
10 a.m. – 5 p.m.
Other hours by appointment

Phone numbers
Main Office: (540) 721-8659
Toll Free: (800)-858-4653
The Water’s Edge: (540) 576-1333

By: Cathie Daniel, Principal Broker

Prudential Waterfront Properties REALTORS® are consistent leaders in sales as well as customer and client service. In early March, Prudential Real Estate and Relocation Services, Inc. announced its 2009 Sales Professional award winners at its annual convention in Austin, Texas. We would like to take the opportunity to congratulate the four Prudential Waterfront Properties REALTORS who were recognized for exemplifying great sales measures in closed residential GCI, commercial GCI or closed residential units for 2009. A breakdown of the Prudential Real Estate awards winners are as follows: Chairman’s Circle Platinum Vicki Millehan; Chairman’s Circle Gold Jane Sullivan Horne and Debbie Shelton; Honor Society Dana Montgomery.

In addition, Vicki Millehan and Jane Sullivan Horne were honored with the prestigious Legend Award by Prudential Real Estate and Relocation Services, Inc. The Legend Award goes to top producers who have won the Chairman’s Circle Award, which represents the top two percent of the Network, five times during their association with Prudential Real Estate and Relocation Services, Inc.

At Prudential Waterfront Properties, we are also proud of the professional and educational standards maintained by our team. We’d like to take this opportunity and recognize the following individuals who were acknowledged for their accomplishment in obtaining real estate designations recognized and endorsed by the National Association of Realtors. These designations signify that the designees have completed a level of education that truly sets them apart as professionals within their field.

Pete Roberts has earned the nationally recognized Short Sales and Foreclosure Resource certification. The National Association of REALTORS® offers the SFR certification to REALTORS® who want to help both buyers and sellers navigate these complicated transactions, as demand for professional expertise with distressed sales grows. REALTORS® who have earned the SFR certification know how to help sellers maneuver the complexities of short sales as well as help buyers pursue short sale and foreclosure opportunities.

Jane Sullivan Horne has been awarded the prestigious Certified Residential Specialist (CRS) designation by the Council of Residential Specialists, the largest not-for-profit affiliate of the National Association of Realtors. Realtors who receive the CRS designation have completed advanced courses and have demonstrated professional expertise in the field of residential real estate. Fewer than 38,000 Realtors nationwide have earned the credential. Home buyers and sellers can be assured that CRS designees subscribe to the strict code of ethics, have access to the latest technology and are specialists in helping clients maximize profits and minimize costs when buying or selling a home.

We appreciate your continued support and as always for pricing and availability, please call your Prudential Waterfront Properties REALTOR®. As members of the Roanoke Valley Multiple Listing Service (MLS), we can assist you with any area property. For more information, visit the Prudential Waterfront Properties web site at: www.smithmtnlake.com. Our email address is realest8@smithmtnlake.com.

Office Hours
Monday-Friday 9 a.m. – 5 p.m.
Saturday, Sunday and Holidays
10 a.m. – 5 p.m.
Other hours by appointment

Phone numbers
Main Office: (540) 721-8659
Toll Free: (800)-858-4653
The Water’s Edge: (540) 576-1333

By: Cathie Daniel, Principal Broker

It’s a Buyers’ Market for Real Estate Investors, too.

Turn on any financial news program and at some point you’ll hear the experts extolling the virtues of diversification. Real estate, even through the market downturn, has long been considered a conservative, long-term strategy to growing wealth.

In fact, that very downturn has created a historic buying opportunity for potential homebuyers and investors alike. The combination of lower home prices across American and historically low mortgage rates, two essential factors that usually don’t trend in the same direction, have triggered a buyer’s market in many areas of the country. For real estate investors who want to rent their properties, this can make the difference in achieving positive cash flow sooner or right off the bat.

While some seasoned real estate investors make it look easy, to be successful, beginners should follow some basic principles.

• Learn all you can. Before committing your cash, you should have a fundamental understanding of real estate. For example, be aware that, in general, investment properties are not liquid investments. Barring exceptional circumstances, real estate does not sell at a moment’s notice. It could take days or months to sell a property, depending on the strength of the market in a particular region.
• Consider cash flow. You’ll need to have enough capital on hand to cover any short-term losses due to vacancies between tenants.
• Start small. Look into buying a condominium, single-family home or a duplex. Leave large apartment buildings and commercial properties to the pros.
• Inquire at the local Chamber of Commerce about companies relocating into or out of the area. Company movement is one indicator of demand for rental and/or office space.
• Find a property that will be in demand. Look for a moderately priced home with three or four bedrooms, two bathrooms, and a garage that sits on a quiet street.
• Research the property. The most common way first-time investors lose is by failing to investigate a property thoroughly. Look beyond the front door. Investigate the reputation of the school district, the crime rate, and plans for expanding a nearby highway or developing vacant land. Ask your Prudential Waterfront Properties real estate professional about the area, its history, and how fast (or slow) properties are moving.
• Inspect the home you’re considering for signs of water damage, such as stains on the ceiling and crinkling or gathering wallpaper; open and close every door and window; and check all electrical sockets by plugging in an appliance. Get an independent home inspection, roof inspection and termite inspection. Unexpected repair costs can eat away your cash flow. Because even the best inspection can’t always predict problems, try to set aside some of the rental income for unexpected repairs.
• Spend time driving the streets of the neighborhood noting the condition of other properties. Are lawns maintained? Are roofs in good shape? Are homes kept up?
• Be ready to make fixes quickly and respond to the renter’s needs. If you’re not prepared to be a hands-on landlord, consider hiring a property management firm.
• See your tax advisor for related planning and laws that can affect your investment decisions.

Remember, investing in a property is much different than living in one, and while emotion and attachment can be prime motivators when it comes to homes, it is return on investment that counts when investing in real estate.

Office Hours

Monday-Friday 9 a.m. – 5 p.m.

Saturday, Sunday and Holidays

10 a.m. – 5 p.m.

Other hours by appointment

Phone numbers

Main Office: (540) 721-8659

Toll Free: (800)-858-4653

The Water’s Edge: (540) 576-1333

Economists’ Commentary by NAR Chief Economist Lawrence Young: Forecast for 2010. Reprinting content from REALTOR.org – copyright.

In all, 4.4 million Americans look to take advantage of the home buyer tax credit before it expires by the middle of next year. From the enactment in February of this year through October, NAR estimates 1.8 million households would have qualified to claim the first-time home buyer tax credit. Now with the tax credit deadline extended till the end of June 2010 (for closings, with contracts signed by the end of April, 2010) and also available to many move-up buyers, an additional 2.6 million families would likely claim the home buyer tax credit.

The expected boost to existing home sales by more than 20 percent in the first half of 2010 from comparable period one year before will sufficiently trim away inventory such that home values will begin to show increases by the middle of next year in many parts of the country. The median existing home price could rise by 2 to 4 percent in 2010. New home sales could jump by nearly 50 percent, though from very depressed levels to figures that would be less than half the pace as during the peak sales year in 2005.

One assumption underlying the home sales forecast is that the mortgage rates will continue to remain at near historically low around 5 percent and not more than 5.5 percent. Meanwhile, the unemployment rate is projected to stay high at slightly above 10 percent through the first half of next year, before steadily inching down. Another assumption is that the economy as measured by the GDP continues to expand at nearly 3 percent, thereby laying the foundation for eventual consistent net job gains sometime in the spring of next year.

There was indeed good news on the job front. In November, payroll jobs were reduced by only 11,000. Of course, job cuts are bad, but the momentum of fewer layoffs with each passing month is clearly positive news. Consider this: job cuts averaged 688,000 per month in the first quarter, 512,000 per month in the second quarter, 288,000 per month in the third quarter, and 111,000 in October. In the construction sector, the job loss in November was 27,000, but the pace of cuts has also been diminishing.

The average hours worked by an employee rose in November as well, implying more full-time hours over part-time. Moreover, employment information from households and not from established companies suggests a net job addition. A total of 227,000 jobs were added when based on household survey, thereby nudging the unemployment rate lower to 10.0 percent in November from 10.2 percent in the prior month. Usually, many start-up companies and consultancy jobs are not counted in the company survey data, which explains for the differences between household and company surveys on jobs. So as long as the job momentum moves for the better, the housing market forecast of 20 percent higher sales and stabilizing home values should hold up. An improving housing market and the very important development of home values and housing wealth stabilization will in turn better stimulate economic recovery.

Not all markets are equal, however. Detroit is hemorrhaging with 17 percent unemployment rate. The Washington D.C. area is buffered from so much government spending with the jobless rate at only 6 percent. Even if a bridge is built in Alaska, somehow jobs get created in D.C. Something right is being done in North Dakota with labor shortages and a state budget surplus. Bismark and Fargo have exceptionally low unemployment rates of only 3 percent.

On interest rates, the borrowing rate for a home purchase and refinance on a primary home has never been lower than it is now. The average rate on a 30-year fixed rate mortgage was 4.8 percent in early December. The rates will not move lower than this in 2010. All indications in fact point toward higher rates next year. The Federal Reserve could end the purchase of mortgage-backed securities (MBS) in March as currently scheduled, though my guess is that MBS purchases will continue for a bit further, though less aggressively. Even in the absence of the Fed’s MBS purchase, mortgage rates will not suddenly rise to alarming levels. At most, mortgage rates will rise to the high fives (5.6 to 5.8 percent). Given global financial market inter-linkages, we need to be mindful that the Australian central bank has already begun to raise its rates and Canada is looking to do the same very soon. The European central bank, though not planning on raising interest rates anytime soon, indicated it is looking to stop its quantitative easing policy and possibly move in reverse very soon. That means that, rather than the central bank buying government and private market bonds out of newly printed money, it plans to mop up excessive cash floating in the system to assure inflation does not suddenly pop out of the bottle. With these developments, the U.S. Federal Reserve will surely have to raise its fed funds rate sometime in the second half of 2010 and stop the purchase of private bonds, including MBSs. Otherwise, the dollar will lose its ground to other currencies and steadily cut into our standard of living here at home.

The very high federal budget deficits could also do us in. After an all-time high of $1.4 trillion in budget deficit in the fiscal year 2009, another trillion dollar deficit is on the card for 2010 and near trillion in 2011 and 2012. A big factor in lessening the deficit is how the economy grows. If the economy expands and leads to robust job creation, then the deficit will be lower than projected. If the economy hits many speed bumps along the way then the deficit will get quite ugly. Therefore, a way to get out of the deficit jam is to promote policies leading to economic growth. But unfortunately, the high deficit could also put focus on ways to raise more tax revenue by chipping away at mortgage interest deduction, property tax deduction, and capital gains tax exclusion on primary residence. This discussion could come alive in 2010 and if it does surface NAR will vigorously defend homeownership policies that have been the very foundation of stable middle-class based democracy, civic participation, and long-term middle class wealth accumulation. Any housing policy leading to unsuccessful homeownership (such as the ones associated with the recent housing bust and foreclosures) should be dropped. But policies that promote responsible and sustainable homeownership have incalculable societal benefits and must be defended. In addition, given that homeowners already pay nearly 90 percent of all federal income taxes, trying to extract more out of homeowners will in the end be counter-productive economically and politically.

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Office Hours:
Monday-Friday 9 a.m. – 5 p.m.
Saturday, Sunday and Holidays 10 a.m. – 5 p.m.
Other hours by appointment

Phone numbers
Main Office: (540) 721-8659
Toll Free: (800) 858-4653
The Water’s Edge: (540) 576-1333

By: Cathie Daniel, Principal Broker

We are pleased to welcome Genie Rust to our sales team. Originally from Loudoun County Virginia, Genie vacationed at Smith Mountain Lake for twenty years before becoming a permanent resident in 2001. Prior to joining Prudential Waterfront Properties, Genie was employed by RSI Rentals Inc., a local vacation and property management company for six years where she developed an understanding of lakefront properties as well as the ability to interact with a diversified group of clientele. Genie is a member of the Roanoke Valley Association of Realtors, Virginia Association of Realtors and National Association Realtors. As a member of the Multiple Listing Service, Genie is able to assist buyers and sellers with all listed properties in a variety of price ranges and locations.

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*Congress and the President have extended the $8,000 tax credit for first-time home buyers and have expanded the tax credit so that many existing home buyers may qualify for a tax credit of up to $6,500 when purchasing a new home.  This temporary credit is only available for home purchases that go to contract before May 1, 2010 and that close before July 1, 2010. 
Consult with your REALTOR or tax advisor and visit VAREALTOR.com to learn more about the tax credit.

 *information courtesy of the Virginia Association of REALTORS

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All of us at Prudential Waterfront Properties would like to thank each of you for your business and friendship over the past year and look forward to continuing to serve your real estate needs in 2010!We are truly grateful for the opportunity to live and work as members of your community and are very proud to be part of the Prudential Waterfront Properties family.

We wish you and your families the very merriest of Holiday Seasons filled with health, prosperity, and love.