For example, take a look at our Aragona Village page in Virginia Beach, VA.  You’ll find over 20 properties in Aragona Village and you won’t even have to leave the page to get all their details.  Want more information on a property in Aragona Village?  Simply hit the quick details link and Request More Information.

Aragona Village is nearby the new Williams Farm Recreation Center and Park, Bayside High School, Haygood Shopping Center and more.

The best part of these meetings is the wonderful opportunity we all have to network with each other and to meet in our smaller “forum groups.” Within these groups we brainstorm issues, share best practices, good ideas, marketing strategies and market conditions as well. It is always interesting to get the perspective of the owners and operators of top companies outside of our own little fish bowl.

At the conclusion of our forum meeting the leader of our group asked each person to give a one word answer to describe the emotion they were feeling at the end of three very intense days of meetings. The answers went along these lines…optimistic, hopeful, and energized! The reason…no matter what region of the country we hailed from we all were seeing signs of a recovering real estate market.

Foreclosures and short sales are still a challenge for most markets helping to contribute to the downward pressure on home prices. However, there are bright spots that we all seemed to share in common all across the country.

Inventory is inching downward particularly in the lower price ranges creating the long forgotten multiple offer scenario. Rents are on the rise making leasing in many cases more costly than home ownership. Whether one is a tenant or an investor, now is the time to buy! According to the Mortgage Bankers Association interest rates are not expected to rise appreciably until the first quarter of 2013…it is an election year after all! CoreLogic’s chief economist Mark Fleming was quoted recently in Steve Harney’s blog that, “Since the peak in home prices, mortgage rates have declined and affordability has risen dramatically. Housing affordability is at levels not seen since prior to the early 1990’s.” And, Fannie Mae economist, Doug Duncan said, “Conditions are coming together to encourage people to want to buy a home.”  Imagine our naysaying economist with something positive to say about real estate!

My colleagues and I had a bit of a spring in our steps as we left Atlanta. Regardless of the trends or the forecasts that we watch so carefully what we truly trust is our deep and abiding faith in the tenacity, and resilience of our agents, management and staff to weather any storm. The rainbow is always there just behind the clouds… if we look hard enough.

Have a successful week!

Gail

Gail H . Coleman

Vice President & General Manager

If you’re moving to Williamsburg, Hampton Roads, or Northeast North Carolina from out of state, our Relocation Department can make your move a smooth one. And, our one-stop shopping for mortgages, title insurance, and settlement services is available in our offices throughout Williamsburg, Hampton Roads, and Northeast North Carolina.

If you’re a buyer or seller who’s looking for help with home repairs, home improvements, or home maintenance, our Service Center can recommend only the most tested, proven, and thoroughly professional people to help you repair, improve, or maintain your home, no matter where it is in Williamsburg, Hampton Roads, Northeast North Carolina.

When you’re ready to buy, sell, or invest in a home, contact us and we’ll get you moving!

One of the very basic guidelines in doing a 1031 exchange is that you have to exchange property for like property.  Like kind real estate means any other investment real estate other than your personal residence. That can mean exchanges from land to condos to commercial property or anything in between as long as it is investment property.   A 1031 exchange allows you to be in what type of real estate that you want to be in. This program allows the purchaser to defer from paying capital gains tax at the time of the exchange. The depreciation recapture is taxed at 25% and a 1031 exchange allows the tax payer to defer the depreciation recapture as well. A 1031 exchange works well for people that want to diversify their estate and it can also help people simplify their lives.

The general rules are as follows; the tax payer can never control the money during the transaction.  It must go through an intermediary.  The intermediary will prepare all of the paper work and verify that the purchaser has the right intent, has performed all the functions and has followed all the deadlines properly.  They also hold the funds beyond the taxpayers control which is one of the rules.  At the closing, the intermediary receives the funds and then disburses them to the new property closing.  The owner never touches the money.

The deadlines are very firmly enforced and the only extensions are due to natural disasters when the IRS might give a blank extension to properties or taxpayers impacted by the disaster.  No extensions are granted for weekends or holidays. The taxpayer will have 45 days from the day of closing to identify the new property and 180 days to close on the replacement property (the 180 days is actually the shorter of (i) 180 days or (ii) the date the taxpayer’s tax return is due, including extensions). The 45 day indentifying period is a part of the 180 day deadline to close.   If the taxpayer has not identified a property on the 46^th day or closed on the replacement property by day 181 the taxpayer will receive the exchange’s proceeds and will not qualify for the delayed tax benefit.

The property must be identified so that it can be located. You cannot describe the property generally as a lot or in a subdivision or a unit in a condominium project.  It must be identified specifically in detail such as an address, unit number or lot number.

The indemnification rule is that the taxpayer can identify up to three properties without having to list a value on the identification.  There is also the 200% rule.  If you want to identify more than three replacement properties then you have to list a fair market value next to each property and the aggregate value together cannot be more than 200% more than the property that you have sold.  So, if you have sold something for $200,000 and you want to purchase 4 properties then the aggregate value cannot be more than $400,000.  Finally, there is the 95% rule that comes in effect if the taxpayer is unable to comply with the previous two rules.  It states if you go over the three properties and over the 200% then you have to purchase 95% of the market value of properties that you identified.

To fully defer your capital gains taxes until you sell the property you need to trade equal or up in value, equity and debt.  You have to sell something at a lower value than what you purchase and transfer the equity to the new purchase and also replace the debt of the old property either with new debt or cash that you’re putting in to the new property.

Anything that you get with an exchange that is not like kind property is called taxable boot.  If you take cash out either upfront or at the end it is called boot.  You can also have mortgage boot if you are paying off the property that you’re selling and you are not offsetting it with another mortgage or cash greater than the sale.

The requirement for the contract using a 1031 Exchange is that it is assignable to the intermediary and the parties are made aware of it.  The contract actually gets assigned by the seller to the intermediary on the relinquished property.  This is normally not a problem because the contract does not prohibit the seller from assigning it.  It is advised that you include in the contract verbiage that states “Buyers to participate in sellers’ 1031 like-kind exchange transaction at no expense to buyer” On the new purchase it is important to have the language in the contract notifying the seller that it will be assigned to an intermediary as part of a 1031 exchange and will not affect the seller because most contracts prohibit the buyer from assigning the contract to anyone else.

I wanted to touch briefly on TICS.  They are Tenants in Common Interest Sales that are purchased through a 1031 exchange.  The dealers must be licensed as security dealers and they are sold like stock.  Up to 36 people can do a deal together.  It might be an option if you want to get away from traditional tenant and instead invest in a shopping strip or a big project.

Tenants need to make sure the sellers keep the mortgage current and if the seller refinances or anyway encumber the property that the tenant is given notice. A buyer should consider having a covenant in the lease option guarding against the seller impairing the title in any way from the time that the lease option is in place.  The lease option should be recorded to provide protection for the buyer giving third parties notice of the option.  The seller would prefer the option not be recorded because it might prevent the seller from getting additional financing and might present a problem if the tenant-optionee defaults and is not willing to sign a release of the rent option.   If the lease option is for more than 5 years than it has to be in a form of a deed.  However, the lease option does not have to be recorded in order for it to be effective. Option agreements are required by Virginia Law to contain all the disclosures required for it to be binding.

There are not hard and fast rules for when the price is determined for a lease option.  The buyer normally wants the price locked down at the point of the lease and the seller would prefer the right to preserve the price to the later date especially if the lease option is for a long term. The buyer and seller can agree to obtain an appraisal at a later date to help determine the price.

In a lease option the seller is paid a monthly rent and then the purchase price once the option is exercised.  Agents can try to negotiate an upfront commission or a percentage of the monthly rent.  Unless something else is worked out in advance, the agents are paid at the end of the transaction.

In many lease options there are possession agreement.  There are two types of possession agreements.  Pre settlement possession (where the buyer takes possession before closing) and post settlement (where the seller stays beyond closing).  Several suggestions are made depending on which party is being represented.   A license agreement instead of a possession agreement is recommended when representing the seller.  This way the buyer has more of a limited authority and would not be perceived as a tenant landlord relationship.  For example; giving the buyer license to use the property to store their belongings rather than giving them possession to the property.  This gives the seller a stronger position if there is a default. A security deposit is recommended and if you are the party granting possession, it is recommended that you get as large of a deposit as you can.  Rent fees are often based on the PITI of the property and are always negotiable.  If it is a pre- settlement possession, make sure that the buyer completed a walk though before the possession and waives their rights to the walk through at closing.  If it is post possession the seller should do a waiver of claims on the buyer.  The buyer might have a provision that the seller will deliver the property in the same condition as before and remedies for any breech.

Make sure that the proper insurance policies are in place for both the property and the possessions.  It is suggested that there be an indemnity agreement where either party holds the other one harmless if there is any injury or property damage on the property while they are in possession.  It needs to be spelled out who is responsible for utilities and maintenance and the covenence of the homeowners association while having possession of the property.  There should be a provision for surrendering default that requires the party in default to surrender and pay some kind of steep penalty.  This way it will force the defaulting party to move out of the property sooner.

When buying a home that has tenants in it, the buyer should have the seller represent and warrant certain things.  For an example; that the rent payments are current, there are no defaults under the lease agreements, no rents were paid in advance, no parties are in possession that are not under written leases and that the tenants and seller are not in default in any other way.

At closing, you should get the original leases, a letter certifying that the tenants have been given notice of change the address for the rent payments, all security deposits and a pro-rated payment for that month’s rent.

Landlocked from two directions and bordered by the Chesapeake Bay and the York River from the other two, Hampton, VA’s geography offers a mixture of accessibility and safe harbor. This variety is reflected in the city’s real estate as well: from the modest to the grand, from historic architecture to the very latest designs, chances are, the home you want exists in Hampton, VA.

Some of Hampton, VA’s neighborhoods are traditional. Two examples, Cherry Acres and Aberdeen Gardens, feature modest homes in classic styles including Cape Cod and single-family ranch. Both areas enjoy down-to-earth residents whose carefully tended properties reflect quiet pride. Other neighborhoods feature a pleasant mixture of real estate styles. Buckroe Beach, for example, one of the oldest resort communities in Virginia, displays both history and modern-day appeal in its blend of old and new, simple and spectacular real estate. Most properties in this area have waterfront features or even direct beach access.

Those who prefer a country atmosphere have options in Hampton, VA also. While the city is largely urban or suburban, a few small farms do remain. And neighborhoods such as Briarwood Terrace, while not far from the heart of the city, feature generously-sized lots that offer the quiet respite of country living.

Homeowners with a flair for the fashionable may enjoy areas such as Colonial Acres. An involved community with an active HOA, this neighborhood features many high-end single-family properties. Most have waterfront orientation, some with deep-water access. Home buyers with similarly refined tastes who prefer condo living may consider Crystal Lakes, which features lovely landscaping, an active community, and lakefront views.

But whatever their style, all of Hampton, VA’s residents enjoy the comforts of city living. Most homes are only a few minutes’ drive from the city’s civic center and all the familiar conveniences: performance and convention venues such as Hampton Coliseum, the business district, shopping, and easy access to the highway system.

Hampton, VA takes urban blight seriously. Renovated or rebuilt homes are designed to fit the style of the existing neighborhood, maintaining the character of the area while eliminating substandard real estate conditions. In addition, the city has an active Crime & Grime campaign which aims to get residents personally involved in fighting blight. As a result, Hampton, VA has enjoyed a significant decrease in crime rates over the past several years.

Community involvement in Hampton, VA isn’t limited to urban concerns, however. This city offers a wide variety of recreational activities year-round, from organized sports and nature/outdoor programs to dance and art classes for every age level. In addition, Hampton, VA’s calendar is dotted with special events such as festivals and shows, sales, and films for people of all interests. And they have five well-stocked branch libraries. Readers can also interact online through the libraries’ Gotta Read, Gotta Blog! feature.

For those who simply wish to enjoy a little down time, Hampton, VA sports 22 public beaches, parks, trails, and preserves suited to many tastes. One unique to Hampton’s history is Air Power Park, where aviation and space enthusiasts can enjoy exhibits that feature real aircraft. And of course, the historic and still-active Langley Air Force Base and the Virginia Air and Space Center are here in Hampton as well.

Hampton, Virginia, truly is the City of Firsts. Why not make it first on your list of home buyer’s real estate!

Real estate suited to any taste can be found within the bounds of this three-hundred-year-old region. When it comes to lifestyle choices, Portsmouth, Virginia (VA) offers diversity more than anything else.

Prefer the city life? The Olde Towne section of Portsmouth, Virginia (VA) may be the perfect home for you. Take in local history with guided walking tours or the Naval Shipyard Museum. Hunt for antiques, feast on specialty cuisine, see a movie, or simply stroll downtown while enjoying cool breezes off the Southern Branch of the Elizabeth River. Enjoy a day of family fun at the Children’s Museum of Virginia or the Virginia Sports Hall of Fame. For owners of Olde Towne real estate, this and much more is within walking distance of your house or condo!

Lovers of history will appreciate neighborhoods such as Port Norfolk and Cradock. Both areas feature a pleasing mixture of restored turn-of-the-century homes and newer real estate. Those who have their hearts set on a historic home but need to travel for work find Port Norfolk an especially attractive choice: the neighborhood offers easy access to the highway system. And those who take interest in all things nautical will love Cradock: originally planned across an anchor-shaped map, Cradock has a long history of pride in naval support.

Churchland, the northwestern section of Portsmouth, VA, is a good choice for residents who appreciate convenient access to the city but crave a little more space and a relaxed, old-time Virginia pace. Churchland real estate offers something for every lifestyle preference, from cozy townhouses to luxury estates along the Western Branch of the Elizabeth River.

Though suburban to urban, Portsmouth, VA’s edges are softened by natural beauty. More than 400 acres of real estate belong to parks are part of its landscape, and Portsmouth, Virginia (VA) has been named “Tree City USA” by National Arbor Day Foundation for the last 22 years. The city also boasts the only urban wildlife refuge in Virginia, the Hoffler Creek Wildlife Preserve (http://www.hofflercreek.org). This 142-acre paradise is home to white-tailed deer, red foxes, river otters, and hundreds of varieties of migratory and resident birds. And Portsmouth golfers, VA appreciate having a half-dozen regulation-length greens close to home.

Portsmouth, VA’s modern economy continues to reflect its naval history. Today, the city’s two largest employers are Norfolk Naval Shipyard and Naval Medical Center, Portsmouth, VA. The US Fifth District Coast Guard Command is located here as well. Many non-military manufacturing, repair, and shipping outfits call Portsmouth, Virginia (VA) home, including Earl Industries CDI Marine, Maersk (APM), and Portsmouth Marine Terminal (PMT).

Though almost anything a person desires can be found within the city limits, Portsmouth, Virginia (VA) real estate is not isolated. The city is centrally located with easy access to I-264 and I-664 and is within minutes of all area tunnels.

For more information and statistics about Portsmouth, Virginia, visit http://www.williamewood.com/portsmouthva/

Dare County is the civic name for the largest portion of the Outer Banks of North Carolina. (The northern portion of the island group is part of Currituck County .) Real estate in this region is as varied as the population, which is made up of more than 30,000 part-time and year-round residents.

A long string of narrow barrier islands nestled between Currituck, Pamlico, Oregon, and Albemarle Sound to the west and the Atlantic Ocean to the east, the Outer Banks offers a mix of history, geography, and carefree lifestyle unlike any other area of North Carolina. The region has been called “the land of beginnings” for its famous “firsts.” Roanoke Island is the site of the would-be English settlers’ Lost Colony. Kitty Hawk hosted the Wright Brothers’ first flight. And Cape Hatteras was the first US location to be given the National Seashore designation. Imagine adding “first resort-style real estate” to your personal list!

The Outer Banks area has a long history of both blessing and curse for seafarers. The shallow inlets and ever-changing sea floor characteristic of this island string trapped many a ship that would then fall into the hands of pirates including the infamous Edward “Blackbeard” Teach. Later, the same treacherous conditions would make the Outer Banks famous for its humanitarian efforts in the form of a system of well-known lifesaving stations. For modern-day owners of Outer Banks real estate, this fascinating history is part of everyday living. Today, these unique barrier islands offer boaters, kayakers, fishermen, surfers, and naval and colonial historians alike a location abundant in opportunity to learn, earn, and play.

The real estate of Outer Banks runs the gamut from cozy three-room inland cottages to sprawling, multi-history structures right on the beach. Cedar shingle and Cape Cod-style architecture are common along the water while inland luxury homes may feature stone, brick, or Mediterranean-style construction. Many larger homes features suites with access through outer doors and stairs, offering ease and privacy for those who make their homes available to guests. Many homes also feature first-floor garages and showers with living areas beginning on the second floor, making it easy to control the sand and water that follow you home after a day of adventure. While not all homes are waterfront,more real estate is within an easy walk to the water.

The Outer Banks of North Carolina has so much to offer. If you’ve ever considered making vacation-style real estate part of your daily life, this area may be ideal for you!

For more information and statistics about the Outer Banks of North Carolina, visit http://www.williamewood.com/outerbanksnc/