One South

Buy a House, Pay for College

February 4, 2018 By Rick Jarvis

Several years ago, we wrote a blog about buying a small house or condo for your child attending VCU. That article has always been popular and carried significant traffic on the web.

And Now… We Have a VCU Student!

Since the first article is now a bit outdated and we’re currently in the works of purchasing a home for our own child headed to VCU, we think now is the perfect time to take a deeper look at the concept.

First, let’s look at some pricing statistics for the past several years.

Year	Median Sales Price	Median Price/SF
2015	$187,000	$147
2016	$210,000	$159
2017	$227,000	$179
2018	$238,000	$182
2019	$255,000	$191
+/- %	+36%	+29%

For the area that surrounds VCU’s Monroe Park Campus, you can see that pricing has been rising –– by about 30% over the last 5 years.

That could pay for a lot of college tuition.

Here’s Some Context:

The cost of a VCU dorm in 2020 is $11,506 (up from $7,800 in 2018)

Per our rental managers, the average cost of rent is anywhere from $600-700 per bedroom in a standard house.
To rent a 1 bedroom studio apartment, the number rises closer to $1,100 to 1,200 per month
To rent a 2 bedroom/2 bath apartment, you are likely to pay anywhere from $1,600 to $2,000 per month

The Numbers

So imagine the following scenario ––

Purchase the home for $350,000 and sell it 4 years later for:

$409,000 given only a 4% annual appreciation rate
$425,000, given a 5% annual appreciation rate
$441,000, given a 6% annual appreciation rate
Instead of paying $11,000 in rooming costs to VCU, you received $1,300 in rent per month from two roommates
And you paid down your mortgage balance by roughly $20,000 to $40,000 depending on loan type, interest rate, etc.
(As a small disclaimer: The past does not guarantee what the future will look like and the type of loan you choose and interest rate you receive will impact how quickly you pay down the mortgage balance.)

Loan Possibilities

Though there are some navigable hurdles, you can co-sign for your child and use a Maximum FHA loan that requires a very low down payment. There are also loan programs for non-owner occupied co-borrowers for less than 20% down. And finally, there are investor loans that allow you to purchase without requiring 20% down.

So all that said, you have options and not all of them require substantial amounts of cash.

So depending on what loan type you choose, we can help you find an originator who knows the market for investor and co-borrower loans.

But Aren’t Prices Going to Stop Rising?

Maybe if we solve the inventory problem or everyone decides to leave the city.

To solve the inventory issue, all we have to do is figure out how to build another, say, 3,000 or so houses per year around VCU (which if you aren’t detecting my sarcasm, is near impossible).

So while past performance is no guarantee of future returns, but, of all of the segments that offer value protection, it is housing that surrounds a 30,000 student university –– especially an urban one where the ability to add additional housing is essentially nil.

Furthermore, the fact that VCU’s housing need is largely supplied by the private sector means that the dorm life element of VCU is far less important than it is at other comparable institutions.

To back this statistic up, as we entered into the 2020 market, there was less than 2 months of inventory –– and that is as low as it has ever been.

Summary

So is purchasing for you? Not necessarily, but for many it makes a lot of sense.

The inventory issue is not really solvable and owning property next to perhaps the most important economic engine in the region has proven to be a great hedge against market downturns.

We can help.

RVA Golf

January 3, 2018 By Rick Jarvis

As someone who has been known to spend some time on the fairways and in the bunkers of RVA’s golf scene (doing market research, of course…) I have a good feel for the courses, the clubs and the real estate that many times surrounds them. I have been lucky enough to play every private course in the area enough times (and most of the public ones, as well) that I feel qualified to give the Realtor/golfer perspective (if there is such a thing) on the courses and the relative strengths and weaknesses.

[ Homes for Sale on golf courses can be found here ]

Climate

RVA, from a golf climate standpoint, is on a bit of a cut line that makes it tough to have one turf carry the course through the entire playing season. The majority of courses in Richmond have bent grass greens (few Bermuda greens) and Bermuda fairways. Sometimes, Bermuda fairways are “over-seeded” with rye grass during the early spring to increase playability until the Bermuda comes out of dormancy typically in mid-May. While I have played rounds in both January and February, it is more an exception than the rule … so expect a 9.5 to 10 month playable season.

Several of the upper end (and newer courses) have opted for bent grass fairways (in lieu of the typical Bermuda). This provides a wonderful surface for playing and it can be maintained all year long but at greater expense than the Bermuda based courses. Generally speaking, the courses in Richmond can be managed to be EITEHR at their peak during the cooler spring and fall (bent grass) OR during the summer (Bermuda grass.)

The Courses

Kinloch (Goochland County)

For the most part, Kinloch (Goochland) is considered the best RVA (and arguably, the State) has to offer. It boasts PGA tournament level conditions, world class customer service and one of the best clubhouses in the area. It also boasts a fabulous practice facility and 19 holes (yes, 19) but offers nothing other than golf for its members.

It is one of two courses in Richmond that features the caddy system. Kinloch is a newer course so the design features (Lester George, architect) were more sculpted than many of Richmond’s courses built in the 1950’s to the 1970’s (the era when most of Richmond’s private courses were built.) A few homes border the course, but not many, and they are highly custom.

The neighborhood also features coach homes targeting empty-nesters.

County Club of Virginia (City of Richmond and River Road Corridor in Henrico)

As the name would suggest, is one of the oldest and wealthiest clubs in RVA. It offers three courses, The River Course (which hosts high level State tournaments and is generally considered the best of the three), The Westhampton Course (which was recently renovated) and Tuckahoe Creek.

The Westhampton course abuts the University of Richmond and is visible from Cary Street making it well known throughout the City. CCV’s courses are classically designed and the CCV facilities are quite substantial. CCV boasts exceptional facilities for dining, tennis, fitness or events in addition to 3 courses. There is not any real housing development surrounding these courses (the courses are all older) but there are houses that do border the course and availability varies.

Salisbury (Midlothian) and Hermitage (Goochland)

While these clubs exist on different sides of the River, they are similar in many ways in that they represent mature clubs with substantial facilities that serve more than just the golfing member. Both Salisbury and Hermitage offer more than 18 holes (27 and 36, respectively) and the courses are similar in age and course design (with the exception of the newest 9 at Salisbury) and both have houses that surround the courses (but not on the level of many golf course developments). The clubhouses are similarly scaled and offer all of the typical country club services with dining, tennis, swim and fitness. Hermitage is also known for its racket facilities and hosts numerous tennis tournaments throughout the year.

Both courses were designed in such a way that they have the length to handle the changes in technology that have harmed many older courses and thus can still handle RGA and VSGA tournaments.

The Federal Club (Western Hanover)

Opened in 2008 just as the market turned (down, in case you didn’t get the memo,) The Federal Club opened to great fanfare but whose success was stunted by the plunge of the economy and real estate market, upon which much of its business model was dependent. After being acquired by the lender and subsequently sold to a local family, The Fed is back on track with new members and capital improvements being added at a rapid pace.

The course winds through the upscale Mountain Run neighborhood in Western Hanover county.

Designed by Arnold Palmer’s best architects and shaped by the crew that remade the K Club in Ireland for the Ryder Cup, the course is arguably the best test of golf in Richmond. The Signature Tournament, held each year in May, attracts some of the best players in the State, including many elite collegiate players.

The Federal Club is entirely bent grass and is one of the only courses in RVA to feature bent grass fairways AND greens making it an unique golfing experience.

The Dominion Club (Glen Allen)

Built in the later 1980’s as the centerpiece of the Wyndham Subdivision developed by Snyder-Hunt (now HH Hunt) near 295 and Nuckols Road. Wyndham/TDC did an excellent job of really making the golf course and clubhouse a signature of the development. Anyone who has played the course, knows the striking roofline of the clubhouse and the 9th and 18th greens reflecting off the lake as you turn the corner on Dominion Club Drive.

TDC is a solid golf course. It would be considered a modern course in that there was a large degree of shaping and strategic bunkering and played host to a Nike Tour/Buy.com tournament for many years. The tournament’s signature moment was Notah Begay shooting 59.

The clubhouse is excellent and the pool and tennis facilities are also very strong. TDC also boasts one of the largest memberships in the area despite some recent developer/club issues relating to ownership of the land the course is built upon.

Richmond CC (Goochland/Henrico Border along Paterson Avenue)

Richmond country Club, located along the border of Henrico and Goochland, provides a unique test of golf in that it has narrow tree lined holes that force controlled shots into tight landing areas. It is a full service club with pool, tennis and dining but does not have the same scale of clubhouse as CCV or Hermitage.

The Foundry (Powhatan)

When first opened in the early 1990’s, The Foundry was a unique concept to Richmond in that it was golf only (no tennis or swim), with caddies required, and a level of service that was not found in the RVA golf market. Kinloch now offers the same ‘top end’ service/golf only model. The course is generally in excellent condition and the entry features and clubhouse are some of the most memorable and striking in Richmond.

Even though the course is a little off the beaten path, the Foundry offers a great experience.

Stonehenge (Midlothian) and Brandermill (Midlothian/Chesterfield)

Both courses were built towards the end of the 1970’s and are modeled similarly as clubs that cater to a surrounding neighborhood. Both Stonehenge and Brandermill are larger subdivisions that surround their courses. Brandermill would be considered to be the more hilly and narrow of the two with a higher density of houses that abut the course. Brandermill also borders The Swift Creek Reservoir along several holes giving that section of the course a little extra visual ‘umph.’

Stonehenge has redesigned a few holes since its inception and hosted a Buy.com tournament mid-2000’s. It is the longer of the two courses and while built before course architects moved as much earth as they do today, Stonehenge, still offers many unique holes.

Both clubs offer pretty solid amenity mix with a nice pool complex, tennis and dining facilities.

Willow Oaks (City of Richmond/Forest Hill Avenue)

Visible from the Powwhite Parkway bridge, Willow Oaks is a classically designed golf course with several holes that wind along a very scenic section of the James (don’t pull it left on number 5….) Many a golfer has taken a glance to their right as they cross the bridge on a sunny day and wished that they were in the midst of a round instead of on their way to an appointment. Willow Oaks has hosted the State Open on numerous occasions and its Fall Invitation attracts a quality field from all over the Mid-Atlantic.

The Willow Oaks facilities are excellent (especially the racket facilities) and anyone who has ever attended a wedding or event there invariably ends up on the rear patio overlooking the 9th and 18th greens to watching golfers finish up their 9’s.

Its convenient location make it accessible from much of Richmond.

Lakeside and Hanover (Lakeside area and Ashland)

Lakeside and Hanvoer are considered to be two of the more value oriented courses in the RVA Metro. Built in more tightly constrained areas, the courses rely on sharp doglegs, small and fast greens and narrow fairways to provide the teeth that their lack of length does not. Hanover CC has the superior facilities with a small driving range and larger club house.

Lakeside is accessible from everywhere so it makes it easy to sneak away for a quick 18 without being discovered (unless your boss is on the course, too). Both courses play quickly so a round there is not a full day commitment.

Lakeside renovated their greens and expected to during 2012. Hanover underwent a renovation in 2008 so the course should not be in need of any major upgrade (think ‘assessment’) for the foreseeable future.

Meadowbrook (South Side/Jeff Davis Highway)

Built in the late 1950’s as a club to service the burgeoning industrial presence that DuPont and Philip Morris’ were bringing to the area, Meadowbrook boasts a value oriented course, strong membership and solid test of golf. As with may courses built in the era before technology changed the length required for a championship course, Meadowbrook relies on tight fairways (#2 feels as narrow as a bowling lane) and some of the smallest greens in the area (#18 is the size of my closet) to create an excellent test of golf. With a relatively flat setting, it is also an excellent course to walk.

Upscale Public Courses/Semi Private Courses

The Independence Golf Club, located off Winterfield Road along the Powhatan/Chesterfield border, was originally built to house the Virginia State Golf Association. It recently changed hands to private ownership and switched from cool season grasses to bermuda greens. Independence is built within the Founder’s Bridge neighborhood and along with a championship 18 hole layout, has probably the best practice facilities in the region for a public course.

A 9 hole executive course is also on the Independence property.

Magnolia Green Golf Course is located within the large planned community of (you guessed it) Magnolia Green. The club is currently semi-private.

Chesdin Landing is located within the large planned community of (you guessed it again) Chesdin Landing.

StoneHouse, Vinitarra, Brickshire and Royal New Kent are located east of town in New Kent County and within a few minutes of one another. Three of these courses (Royal New Kent, Stonehouse and Brickshire) are owned by the Traditions group and membership in one allows play at all three. For many in both Richmond and Williamsburg, membership in these courses is a great and affordable option for those who want the benefits of club membership at a lower monthly obligation.

A Fun Distraction – A House on the Water

July 31, 2017 By Rick Jarvis

Fishing.
Boating.
Sunsets.
Wildlife.
Festivals.
Crabs.
Oysters.
Friends.

The Bay Life

For many, the waterways of Eastern, Virginia are an integral part of life. For everyone else, it should be.

When you own a home along the water, sneaking away from work is an art form honed over years of practice. And when who don’t own a home there, nothing beats an invite for a long summer weekend from someone who does.

Search the Chesapeake Bay compliments of our friends at Bay Properties!

On the Bay
On the Rappahannock
On the Mobjack

On Gwynn’s Island
In Urbanna
Lots and Land

Many More…

Getaways on the Bay

A getaway along one of the many rivers and creeks that meander into the Chesapeake Bay can bring a welcomed end to a long and stressful work week. But along with improving quality of life, a home in the Bay region can also provide a good investment.

Several years ago, One South Realty joined forces with a decades old brokerage in Mathews County called Bay Properties. With Richmond only a short drive away, we felt it is was important to be able to offer our clients the same level of expertise there as we do in our own backyard.

A Smart Investment

As we see home prices rising in Richmond at some of the fastest rates in years, it follows that the Bay will likely see similar growth. . We wrote an article about that here — My Chesapeake Bay Time Machine

So even if a home along the water seems like a far off wish, it might be shrewd to start your search earlier than later. Maybe that affordable weekend getaway might be a great way to experience a Bay lifestyle without a substantial financial commitment. Or perhaps buying that lot now and building later might make sense.

Check out our Bay Properties site, if for no other reason than to see some truly spectacular properties and imagine what owning a piece of the water might be like:

Weekend Getaways — Homes on this page are on the more affordable end of the spectrum and on the water

Spectacular Homes — Homes on this page are on the water and have superlative features that make them truly some of the most spectacular homes in all of the region.

Lots and Land — Maybe buying a home is out of the question, but locking in land prices now with the hopes to build later makes sense.

Rappahannock Riverfront — The Rappahannock River is one of the most picturesque in the entire eastern part of the state, and thus an extremely popular place with those who love the water

Chesapeake Bay Waterfront — With views as wide as the sky, living along the Chesapeake Bay can truly fill the soul

Mobjack Bay Waterfront — Sometimes, a more protected body of water can offer more enjoyment. The Mobjack Bay is a great blend of big water, but protected water.

All of the Bay Properties Searches

Its the Agent’s Job

June 23, 2017 By Rick Jarvis

As an agent, I have a lot of jobs – driving, opening doors, research, scheduling, negotiation, problem solving, advising, management, coordinating, supporting, talking – and on most days, I usually do a little bit of each.

It is part of the job.

We Do a Lot of Things

Insights color wheel — The Insights model is one of the most helpful methods of identifying how each person wants to be related to.

At the end of the day, an agent’s job is not really definable, as we do so many different things. Each transaction is unique, as are the buyers, sellers, and other service providers that play a part in a property changing hands. What each individual transaction requires is really what defines the role(s) I play.

But all of things I can do for you doesn’t matter one iota if I can’t relate.

Interpersonal Relations

In its simplest form, people tend to be either introverted or extraverted and people tend to either analyze or feel their way through life.

Call it Meyers Briggs, DISC, Insights, or any of the other personality profiling techniques out there, but each of us has a preference for how we interact with the people, information, and world around us. And thus, we all make decisions differently.

Help Me Help You

It is also my job to recognize how you want to receive and interact with the world around you.

If you’re one of those people that likes to talk through all of the possibilities — and then talk through them again — then let’s chat until you feel comfortable.
If you like to process silently and then sleep on it, and then analyze some more, then by all means, let’s do that.
If you want me to do the research, put it summary form, and then run a series of ‘what-if’s then you tell me what you want to see and I will do it.
And if you just need some time to reflect on how the decision will impact you and the ones you care about, then I will do my best to give you the space to make the decision that feels right.

You see, I need to move to the space where you feel the most comfortable. When I do my job, your stress level decreases and the confidence you feel that you made the best decision possible skyrockets.

And, yes, it is my job.

Did You Just Hire a Realtor, an Agent or a Salesperson?

January 19, 2017 By Rick Jarvis

I wish to start this article out with a disclaimer — This is my opinion only and I do not speak for anyone else. I also know that these comments will probably generate some level of disagreement with those in my industry and I am OK with that.

So here goes…

My industry is filled with three types of people

Realtors
Salespeople
Agents

Lets discuss the differences.

The Realtor

Technically speaking, a REALTOR is a member of the National Association of Realtors and is licensed either as a broker or real estate salesperson. A Realtor will (ok, should) always abide by the Code of Ethics and is versed in all of the complicated agency, disclosure, and fair housing laws as well as the protocol for how to handle the inevitable grey areas that lie on the edge many sticky situations.

I have been involved in many deals where the cooperating broker, a Realtor in the purest sense of the word, spent more time on protocol than they did on the analysis of the market value. Their client, in my opinion, made a poor financial decision.

That said, I have also been involved in deals where the cooperating broker spent very little time on the technical part of their craft (the Realtor side, if you will) and put their clients at risk.

It cuts both ways.

Understand that in no way am I criticizing being a ‘Realtor,’ rather I am simply pointing out a Realtor (once again, in the purest sense) sees their world and the conflicts that comprise it through the lens of very a strict interpretation of proscribed rules and guidelines. Sometimes this protocol focus ignores the larger picture.

It is unfortunate.

The Salesperson

In the real estate industry (or any commissioned sales industry for that matter) there are sales gurus.

Attend any Mike Ferry Organization or Brian Buffini seminar (or Matt Ferrara, or Ben Kinney, or any other one of many and, in the interest of full disclosure, I have paid to see them all) and you will hear their ideas on how to make more money.

All of the scripts, activity goals, scheduling, etc. are all designed to increase the attendee’s earning potential.

Usually, a combination of increased people skills, basic scripts, and a diligent commitment to prospecting for new leads (via calling people you know and/or those you do not) should lead to increased income. Their (correct) theory is simply if you find more people to talk to and do a better job of telling them what they want to hear, you will increase your income. More opportunities x more skills = more income.

But at who’s expense?

The true salesperson, while they are doing nothing illegal or even immoral, hold their own ‘lead generation’ activities in the highest regard. Many times the teachings of the sales guru strongly suggest to NOT take any phone calls other than those related to prospecting for extended periods time each day. Closing issue? Call you back at noon. Termite not ordered? Please leave a message. Loan package is wrong? I am sorry, but Mr. Salesperson is busy right now.

Needless to say, it is not a client-centric philosophy.

Am I saying you should NOT hire the salesperson? No. I am saying that don’t be disappointed when your salesperson acts like one.

When the metrics of deal count and sales volume become the sole measuring sticks of success, then the advice offered must always be questioned as to who stands to benefit most.

That said, I have always found that those who are busy are usually busy for reason –– they are good at what they do. I have also found that a certain level of detachment and objectivity from my advisor comes from a certain level of financial achievement. Much of the best advice I have ever received came from folks who had little need for my business. Any advisor who needs my business, well, I am not sure their advice is best for me, either.

While the advice from the true salesman should be filtered and vetted, it is many times very accurate and based on a great deal of experience.

The Agent

The agent is a combination creature who is part Realtor, part salesperson, and part trusted advocate. Agents get deals done.

An agent, in my opinion, has a loyalty to the correct outcome for their client.

Agents may be very aggressive and disciplined in their lead generation practice (like the Salesperson) but still hold their client’s interests above their own. Agents fully understand the Realtor Code of Ethics (like Realtors) yet manage to adhere to these principles without getting in the way of the best outcome for the client.

At the end of the day, an agent will always try to help their client find the best available deal through the best available means.

An agent always asks themselves, is my client making a good decision? If they are making a bad deal, then they will try to talk them out of it. If they are making a good deal, they will try to keep them engaged in it –– all of the while conducting themselves in a manner consistent with the Code of Ethics.

They likewise are successful enough to be able to give competent advice without their own financial pressures influencing the recommendations.

Conclusion

I think it is pretty obvious by my tone that I feel the best person to hire in a real estate transaction is the AGENT. A good agent, like a good attorney, accountant, insurance broker, or mechanic, is someone who will be in your life for a long time. I know that those clients who consider me their ‘agent’ call me constantly with questions as mundane as ‘do you have a good leaf guy’ to as complex as ‘help me understand the legal aspects of non-compliance in a mandatory HOA.’

The all-time great speaker Zig Ziglar once said (and I paraphrase) that if you help enough people get what they want, you will always be taken care of. There is a lot of truth in that statement, especially in the real estate business. The ‘agent’ community in Richmond contains a great deal of talent whose ability to positively impact a transaction is robust.

Interview many and find the one who you would consider putting on your team for life.