The Housing Interpreter—Showcasing Richmond Homes for a Cause

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Housing InterpreteR CURRENT TRENDS IN REAL ESTATE AND THE RICHMOND REGION A PUBLICATION OF THE RICHMOND ASSOCIATION OF REALTORS®

SHOWCASING

MARCH 2014

RICHMOND HOMES

FOR A CAUSE

IN THIS ISSUE: • YOUNG HOUSE LOVE BLOGGERS JOIN HOMEARAMA TO BENEFIT HABITAT FOR HUMANITY • HOME BUILDING ASSOCIATION OF RICHMOND PRESENTS 2014 FORECAST • INTRODUCING RICHMOND SYMPHONY ORCHESTRA LEAGUE’S 2014 DESIGNER HOUSE • GENERAL ASSEMBLY PASSES FIRST-TIME HOMEBUYER SAVINGS ACCOUNT LEGISLATION

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Young House Love Bloggers Join Homearama to Benefit Habitat for Humanity Sherry and John Petersik, local Young House Love bloggers and authors, will design a home by Biringer Builders, Inc. for Homearama 2014 to benefit Richmond Metropolitan Habitat for Humanity.

This May, the Home Building Association

of Richmond (HBAR) will host the designer model home showcase event Richmond Homearama at Magnolia Green in Chesterfield County. The 12-day event—typically attended by thousands of housing industry professionals and local residents—features self-guided tours of seven new construction homes from various local builders, each decorated by a different local designer or design team.

The event serves several purposes—most obviously, it is an opportunity for local builders to showcase their finest craftsmanship and designers to dazzle with fashion-forward merchandising. But this year, the event will benefit Richmond Metropolitan Habitat for Humanity—facilitating homeownership to help break the cycle of poverty. There are also a few bonuses for those in attendance, which make Homearama a unique home show. First, much of the furniture, artwork, and accessories displayed within the model homes have a price tag on them, and are available for purchase during the show.

So the show can double as an enjoyable furniture shopping experience. These items usually fall within an excellent variety of price points and are obtained from a variety of local vendors. Also, for those interested in remodeling or building their own custom home, there is information available on just about every finish within the homes—from the flooring and tile to the counters, cabinetry, and lighting.

There will be additional product displays—36, to be exact—available to view in a Home Idea Center at the show. Refreshments will also be served. After touring each home, visitors are given the opportunity to cast a ballot for their favorite.

This year, Homearama has welcomed local Young House Love bloggers and authors Sherry and John Petersik to the design team. The husband and wife duo have been involved in blueprint revisions and other decisions involving construction details as their designated home has been built.

They have chronicled several of these choices on their blog and engaged their followers to share input on these decisions. “Between now and next May when HomeaRama officially opens, we’ll be keeping you guys posted on the details as the house comes together – from sharing the final floor plans and selecting all of the finishes, to the decorating decisions that go into each room. It should be lots of fun, especially since we get to execute ideas that we don’t necessarily have spots for in our own house,” John blogged. The Petersiks have generously opted to donate their compensation (for a year of planning and design work prior to the show) to the Richmond Metropolitan Habitat for Humanity.

After the show, each of the seven homes showcased will be available for purchase, priced from the $600,000s.

Young House Love bloggers Sherry and John Petersik celebrate groundbreaking on their designated designer home with Biringer Builders, Inc.

“Between now and next May when Homearama officially opens, we’ll be keeping you guys posted on the details as the house comes together—from sharing the floor plans and selecting all of the finishes, to the decorating decisions that go into each room. It should be lots of fun, especially since we get to execute ideas that we don’t necessarily have spots for in our own house.”

Builders for the homes in this year’s Homearama include: Biringer Builders, Inc. Falcone Custom Homes biringerbuilders.com falconecustomhomes.com Harring Construction Co. LeGault Homes harringconstruction.com legaulthomes.com Lifestyle Builders & Developers Ray A. Williams Construction Co. lifestylebuilders.com rayawmshomes.com Southern Traditions, LLC southerntraditionshomes.com

See below for a calendar of special events during this year’s Homearama*.

Tickets are generally $10 (free admission for children 18 and under), but advance tickets can be purchased online through April for $8. For online ticket purchase and more information on show details, please visit richmondhomearama.com. *Special event hours may change.

MAY S M T W 1 F S S M T W T 2 S SMTWTF3 4 M T W T F S S5TWTFS SM6WTFS SMT7TFS SMTW8FS SMTWT9S S M T W T F 10 11 M T W T F S S 12 T W T F S S M 13 W T F S S M T 14 T F S S M T W 15 F S S M T W T 16 S S M T W T F 17 18 M T W T F S S 19 T W T F S

9am-11am REALTOR® Day

11am-5pm Beer & Bluegrass Weekend 11am-5pm Beer & Bluegrass Weekend

11am-5pm Wine & Jazz Weekend 11am-5pm Wine & Jazz Weekend

11am-5pm Family Fun Weekend 11am-5pm Family Fun Weekend 1pm-6pm Homearama Furniture Sale

RICHMOND HOMEBUILDERS FORECAST LOCAL HOUSING TRENDS

local O n Wednesday, February 12 , builders, REALTORS , mortgage th

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brokers, and other industry professionals gathered at the Hilton Short Pump for the Home Building Association of Richmond’s 2014 Local Forecast Seminar.

Dr. David Crowe, Chief Economist & Senior Vice President of the National Association of Home Builders (NAHB), opened the event with a presentation on the current economic and housing outlook.

Crowe cited unemployment levels, as well as consumer confidence in Richmond, now close to historical norms. He explained that given local population growth in 2012, household formations are now on the rise and housing starts are predicted to grow at a faster pace this year than in recent years. The share of new home sales currently stand at 8 percent—about half of what they were at their peak. New home production levels are expected to return to 90 percent of historically normal levels by the end of 2015. Home prices statewide in Virginia stand at about 14 percent below peak levels. Crowe pointed out that states where prices are currently at or above peak levels are “energy states” (states with energy-centric economies). Regarding home financing, Crowe explained that as lending standards have tightened in recent years, the relationship between interest rates and new home sales has diminished.

He observed that housing affordability has dipped recently, but remains high.

Craig Tolson, President of the Home Building Association of Richmond, then took the floor, citing a 30 percent increase in new home closings last year. He attributed 73 percent of the market to detached homes and 27 percent to attached homes. Tolson illustrated that—according to Integra Realty Resources— the price point of 350,000 to 499,000 has had the largest home sales growth in the last few years. He cited Chesterfield and Hanover counties as current leaders in single family home production—with Henrico leading the way in townhome production.

Dr. David Crowe gives a presentation on the current economic and housing outlook.

George Moore, Vice President of Development with builder HHHunt, followed with an overview of the top ten new home demand locations by price point. Central/southern Chesterfield and western Henrico counties displayed the highest regional demand for new homes in six indicated sales price points. Moore indicated that Chesterfield, Henrico, and Hanover counties currently make up 67 percent of buildable lots available within our region. He cited a projection by MarketGraphics Research Group that there will be a 24,921 lot shortage at the end of 2018. Moore explained that cash proffers have an adverse effect on lot availability—particularly in higher price points.

Llyod Poe, founder and owner of Lifestyle Builders & Developers, Inc., concluded the event with a presentation on 2014 home design trends. Beginning with the kitchen—a primary focus in home design—Poe showed some emerging new designs in kitchen appliances. These included refrigerators with built-in coffee makers and microwaves mounted between base cabinetry in a drawer-like fashion. He cited industrial style as the most current trend in lighting (thanks in large part to Restoration Hardware), and quartz countertops as the material to potentially usurp granite’s reign as the favorite— with its abundant color selections and virtually maintenance free constitution. Recycled glass countertops with jagged edges are also emerging as a kitchen trend, creating a modern, rustic look.

Painted cabinets are currently favored over stained cabinets, with off white or alternative shades of white dominating this trend. Poe then moved on to a few current bath trends in the home. These include open shelving with clean lines (as also seen in kitchens) and vanities off the floor. Oversized and unconventionally shaped showers are an emerging trend, and free standing tubs continue to be popular. New faucet designs include abundant twists and curves, as well as square shapes. “Watering can” shower heads mounted from the ceiling are desirable in the modern shower, and new shower head technology will allow users to feel the sensation of using a higher volume of water, without actually using more water. Vessel sinks—those that sit directly on top of the counter—continue to be on the forefront of modern bathroom vanity design and stone materials are being increasingly added to walls in bathrooms for texture and a spa-like feel.

A higher value is being placed on home storage and owner’s closets are increasingly being upgraded as standard features in new construction. Poe cited Vice President of Research for the National Association of REALTORS® Paul Bishop, who said “Most satisfied homeowners still said they would like more or larger closets and storage space.” This is something advisable to keep in mind when considering cost recoup on home remodeling projects.

REVITALIZE RVA

pushes Richmond to the top by bringing baseball to the Bottom

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avid Hicks, Senior Policy Advisor to Mayor Dwight Jones, recently presented a “Revitalize RVA” plan to a group of several REALTORS® during a private event promoting civic engagement.

The plan involves moving the Flying Squirrels’ current ballpark to Shockoe Bottom, in order to open up North Boulevard for new mixed use development, while laying the foundation for further private development around the new ballpark. Hicks explained that through partnerships with the Squirrels and other businesses that intend to locate around the new Shockoe ballpark, the new park development will be fully funded.

The development plan is projected to generate $190 million in tax revenue over a period of 20 years. In addition to the ballpark in Shockoe Bottom, the plan includes the development of a 17th street Promenade; parking, retail, and hospitality; apartments; and a slave trail, African burial ground, and Slavery & Freedom Heritage site. “This is a pivotal moment that will determine whether or not we can do business in Richmond in a new way,” Hicks said.

“The Revitalization Plan has a number of key components, all of which work together to serve an important larger goal – encouraging the private sector economic development that our City needs in order to create jobs and provide opportunity. This will help give the City a strong and broad tax base so that we can have good schools, build housing to attract new residents and meet our infrastructure, public safety and other needs. The success of the Mayor’s Anti-Poverty Initiative will be driven by a healthy, and growing, tax base. Richmond is a budding hub for tourism, which underscores the importance of this wonderful opportunity to share our diverse tapestry of history and finally tell the true stories of that rich African-American history that have never been told in a full and complete manner,” the project website states.

Construction of the new ballpark is expected to begin this year and open at the beginning of the baseball season in April of 2016.

To learn more about the “Revitalize RVA” plan, visit lovingrva.com.

Construction Underway for Richmond Symphony Orchestra League’s

2014 Designer House

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very other year, the Richmond Symphony Orchestra League (RSOL)—a supporting arm of the Richmond Symphony— embarks on its largest fundraising project, the Designer House. The project involves the selection (by committee) of a large home— traditionally an older, historic property—to host daily tours and a series of events for one month. “Hampton Manor” has been selected as the 2014 RSOL Designer House.

Once a home is selected which meets stringent criteria—such as number of rooms, adequate parking to accommodate guests, flow of the house, and abundant square footage—an open call is held for local interior designers. Interested participants submit a design proposal for a room of their choice to RSOL and one design is selected for each room. These include both indoor and outdoor spaces. Designers will be notified of their selection next month and begin working on their designated rooms in August, when construction of the home will be completed.

Once designers are notified of their selection, they will have one month to transform their space before the house is opened to the public. Designs are not restricted to any thematic conformation; so each space will be unique.

Though none of the designers are paid, landing this design gig presents an excellent opportunity for exposure. In one of the previous designer houses, one of the rooms was so well liked that the future owners of Dover Hall inquired about the designer responsible for the space in order to commission them for design of the 30-room, 33,000 square foot mansion (now a special event venue).

This year, the RSOL decided to take a slightly different approach and select a new construction home in a Midlothian community, Hallsley. This will mark only the second time in 30 years that the RSOL has selected a new

construction home as the Designer House. The architecture of the house—built by Bel Arbor Builders in partnership with East West Communities—is described as the “shingle-style” look of The Hamptons.” It is built on two lots and has 6,600 square feet, 22 design spaces, and two garages. Bel Arbor has placed a webcam outside the house to document construction— from beginning through completion—to later create a timelapse video. The decision to select a new construction home was made based on what was currently available within the desired criteria, but the selection carries the bonus of offering spaces that are fresh and structurally sound from the get-go— allowing transformations to be entirely focused on design.

All that square footage will come in handy; because in addition to hosting tours, the RSOL will select a caterer for an onsite café and local artisans to display items like clothing, jewelry, accessories, home goods, stationary and crafts for sale in an on-site boutique. This will create an opportunity for visitors to make a day of the event by leisurely enjoying refreshments and shopping on-site, after admiring designs throughout the home.

Each Thursday through the month Hampton Manor is open, RSOL will host cocktail parties on-site with live music, called “Thirsty Thursdays.” Additionally, during the month it is open to the public, the home site is available

“Hampton Manor,” built by Bel Arbor Builders, features 6,600 square feet, 22 design spaces, and two garages.

to rent for private parties. A wedding was held at the site of the previous Designer House.

Upon conclusion of the event, the new owners will be given the opportunity to decide which rooms they would like to keep intact (if any) and participating designers will transform the rest back to their original state.

The month-long event will kick off at an on-site black tie “Gala at Hampton Manor” preview party on the evening of Friday, September 12th, 2014; then, the home will be open to the public Monday, September 15th, 2014, through Monday, October 13th, 2014. For updates as the event draws near, and for information about tickets to the Gala, house tours, and special events, visit rsol.org.

A rendering of what “Hampton Manor” will look like, when completed in August.

SERVING RIVER CITY REALTORS “I Need My Money Now!” No, we’re not talking about purchasing your structured settlement or annuity, but there is some truth to this celebrated overly-corny advertising campaign.

Any real estate professional has surely had this thought a time or two when waiting on a property to close. Oftentimes, the waiting game for commission-based income can seem to take forever.

The advent of commission advance services for real estate professionals have allowed many REALTORS® to take charge of their finances and allow their income potential to grow exponentially. Having pioneered the commission advance business in 1992, Commission Express has tailored their model to serve local real estate professionals. ‘I can turn one commission into another by utilizing my commission advance to

market new listings,’ says one loyal Century 21 Associate.

Local and personal service is key to the real estate industry.

Commission Express opened a new location in Richmond’s Fan District in 2013 to serve our community of REALTORS® more efficiently. As an affiliate member of the Richmond Association of REALTORS®, they understand and are able to cater to your needs.

Understanding that all real estate transactions do not settle as scheduled, they offer a built in 30-day grace period on each transaction. Commission Express continues to provide a reliable source of funding for Richmond’s real estate agents and brokers to quickly and easily turn commissions into cash.

Commission Express | 2605 W. Cary Street | Richmond, VA 23220 804.269.4345 office | 804.269.4279 fax | www.commissionexpress.com/centva

Owner of Commission Express of Central Virginia, Mark Ughetta, says he now works for people’s financial security when they need it the most. ‘It can feel unmanageable to balance a budget without regular and reliable income. Having worked in a sales capacity for much of my career, I understand the challenges associated with commission-based income. It’s imperative to plan and prepare for the unforeseen, but I offer a service that can aid in easing that stress.’ It’s great to see more individuals taking charge of their financial security and using services, like those offered at Commission Express, as essential tools in their arsenal. For more information, or to fill out an online application, please visit www.commissionexpress.com/centva.

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First-Time Homebuyer Savings Plan

In the 2014 General Assembly session, the Virginia Association of REALTORS® (at the urging of the Richmond Association of REALTORS®) won adoption of a First-Time Homebuyer Savings Plan.

Beginning July 1, 2014, Virginians can open a savings account for the purchase of a single-family residence by first time homebuyers and use the money for down payment and closing costs.

How Does the Plan Work?

A first-time home buyer savings plan means an account with a financial institution for which the account holder claims first-time home buyer savings account status on his or her Virginia income tax return (for taxable year 2014, or any taxable year thereafter). Financial institutions means any bank, trust company, savings institution, industrial loan association, consumer finance company, credit union, or any benefit association, insurance company, safe deposit company, money market mutual fund, or similar entity authorized to do business in Virginia.

Individuals are able to designate a new or existing account as their first-time homebuyer plan and up to $50,000 of “after tax dollars” may be deposited or transferred from another account. The account grows just like any other account. The growth on the funds are not taxed as income by the State Tax Department; however, federal taxes are still due. The growth on the funds is capped at $150,000.

Who Qualifies as a First-Time Homebuyer?

A first time homebuyer means an individual or individuals who reside in Virginia at the time of settlement on the purchase of a single-family residence in the Commonwealth and who (i) have never owned or purchased, either individually or jointly, a single-family residence in Virginia or outside of the Commonwealth; (ii) are designated as the beneficiary of an account designated by the account holder as a first-time home buyer savings account; and (iii) may apply moneys or funds held in such account for eligible costs.

A qualified beneficiary may use the funds from the account for eligible costs, regardless of whether the qualified beneficiary purchases the single-family residence as a sole owner or jointly with another individual.

How Can the Funds Be Used?

The funds can be used for down payment and closing costs listed on the settlement statement.

How Do I Claim First Time Homebuyer Status?

The taxpayer is required to submit a form (developed by the Tax Department) each year the account is active, along with a 1099, to identify the account designated for a first time homebuyers savings plan and to designate the beneficiary of the account.

Financial institutions are not required to do anything to administer these accounts. This is a tax-payer (account holder) driven process. The only action the financial institution is required to do is to send the 1099 at the end of the year, which is what financial institutions do for any account.

Is There a Penalty For Using the Funds for Non-First Time Homebuyer expenses?

Yes; there is a 5% penalty (+ tax recapture) of the tax exempted growth, if funds are used for costs other than qualified expenses. Qualified expenses include down payment costs or a disbursement listed on a settlement statement.

This recent legislative victory is just one example of the many ways in which REALTORS® work continuously to promote homeownership and personal property rights.

April 25 - May 2, 2014

Join 16 non-profit housing organizations to help ensure that everyone has a safe, affordable place to call home.

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