2016 Kline May Realty Annual Report

2016

K L I N E RMe aAl tYy

Sister Companies: Cottonwood Commercial | Priority Property Management | Cottonwood Auctions

Home Y

is where our story begins

Kline May Realty Annual Report

If you have been a client of Kline May Realty or one of our sister companies, we thank you for the opportunity to be of service.

If you have not, we look forward to having the chance to work with you in the future.

Kline May Realty is a part of the Kline May Company family, and we understand the importance of real estate in our personal and business lives and take our responsibilities to our clients very seriously. We feel in order to best serve our clients, we need to be experts in our particular areas of real estate practice. Over time, we have created four distinct companies to cover the spectrum of real estate services: • • • •

Kline May Realty Cottonwood Commercial Priority Property Management Cottonwood Auctions

Residential real estate sales Commercial real estate sales and leasing Property management and leasing Real estate auctions

We have been fortunate to grow steadily for several years and are glad to offer expert services to our clients no matter their real estate needs. This report will help you learn about Kline May Realty, our sister companies, our people, and our community. We hope you find it helpful!

Thank you, Keith May

Kline May Realty Timeline 1970 1998 Ken Kline opens his own real estate firm, which he names Kline Realty.

2003

Keith May becomes sole owner of both Kline Commercial Realty and ERA Kline & May Realty. The companies move from their office on South Main Street in Harrisonburg to the Evelyn Byrd Plaza, also in Harrisonburg. In April, ERA Kline & May Realty opens their first branch office on Main Street in Broadway.

2005

Kline Realty becomes owned 50/50 by Keith May and Ken Kline. Later that year the company is split into 2 companies, one specializing in residential real estate, the other in commercial transactions, with Keith May as the Principal Broker for both companies. The residential company joined the ERA franchise system and becomes ERA Kline & May Realty. The commercial company becomes Kline Commercial Realty.

2004

Karl Waizecker becomes General Manager of Kline & May Realty and The Kline & May Realty Showcase, a local real estate television show, premieres on television.

2007 The commercial real estate company’s name is changed from Kline Commercial Realty to Cottonwood Commercial.

Kline & May Realty Broadway Branch moves to a new location on Main Street in Broadway.

Kline May Realty Timeline 2008 2011 Kline & May Realty leaves the ERA franchise and becomes an independent company called Kline May Realty.

2012

Keith May and Roy Brooks open sister company Priority Property Management, a full-service property management and leasing company. Karl Waizecker becomes Principal Broker of Kline May Realty.

2013 Kline May Realty opens a branch office in the heart of downtown Harrisonburg.

2014

Keith May and Tim Peters open sister company Cottonwood Auctions, a company that auctions homes, land, farms, and commercial properties.

2015 Kline May Realty celebrates the 10th anniversary of The Kline May Realty Showcase.

Kline May Realty opens a branch office in Augusta County in order to better serve our clients in that area of the Central Shenandoah Valley.

Kline May Realty Cares Being active in the community where we live and work is an important aspect of the Kline May Realty vision. Kline May Realty management, agents, and staff financially support and volunteer their time with many area non-profit organizations including The United Way, Big Brothers Big Sisters, Broadway High School Athletics, and the Staunton-Augusta-Waynesboro Habitat for Humanity.

This year Kline May Realty would like to highlight our efforts with two of the causes we supported this year: Rockingham-Harrisonburg SPCA and our local Relay For Life.

Finding Forever Homes Segment Each month on The Kline May Realty Television Showcase, Aimee Roberts, Kline May Realty’s Marketing Specialist, introduces the community to two animals available for adoption.

Harley, a Finding Forever Homes featured pet, and her new family

When Taryn Bromser-Kloeden, the SPCA’s Rescue Coordinator, was asked about the Finding Forever Homes Segment, she shared this story: “During our Home for the Holidays event at The Valley Mall, a couple came straight up to Harley, a ten year old pit bull, with huge smiles on their faces. They said they had fallen in love with her on the segment, and Harley went home with them that morning, after spending months at the shelter with little to no interest from potential adopters. This clearly demonstrates how positive the reception from the community has been, and how that positive reception translates into adoptions.”

Relay For Life Fundraisers The American Cancer Society’s Relay For Life movement is the world’s largest and most impactful fundraising event. It unites communities across the globe to celebrate and remember those affected by cancer.

Kline May Realty held several Relay For Life fundraisers during 2015, and the most successful company fundraiser was a holiday decorating contest. Kline May Realty would like to thank Chaz Haywood, Clerk of Court; Krystal Pittington, Sales Manager at Preston Lake; and Erin Chiles, Loan Officer at Movement Mortgage, for judging the event.

Our holiday decorating contest judges: Chaz Haywood (Clerk of Court), Krystal Pittington (Preston Lake), and Erin Chiles (Movement Mortgage)

Kline May Realty also collaborated with the Harrisonburg-Rockingham Association of Realtors® (HRAR) to raise additional funds for Relay For Life. Those events included a Back-to-School Carnival complete with a dunk tank, bounce house, and face painting.

Additional HRAR fundraisers were a chili cook-off, cake baking contest, and a womanless beauty pageant.

Kline May Realty’s first annual SoupFest fundraiser

One of the FInding Forever Homes Featured Pets, Selena

Taryn Bromser-Kloeden, RH-SPCA Rescue Coordinator; Aimee Roberts, host of the Finding Forever Homes segment; and Theo, a featured pet

Karl Waizecker about to be dunked

The first Finding Forever Homes filming

Decorations at Augusta County office

K L I N E RMe aAl tYy

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Karl Waizecker, Principal Broker of Kline May Realty

ounded in 1970, Kline May Realty has grown to become the leading real estate firm in Virginia’s Central Shenandoah Valley by providing an unparalleled level of service, born from a genuine concern for our clients’ goals and dreams.

Our philosophy is simple, we affiliate ourselves with agents who have a “servant’s heart” and equip them with the education, tools, and support to provide their clients with world class service. We believe the business of residential real estate sales has very little to do with “sales”, and everything to do with service. An agent’s job is not entirely informing clients as to what homes are for sale or even creating a newspaper advertisement to market a house…it is about market knowledge and the ability to guide clients through the home buying or selling process.

We understand that the sale or purchase of a home is a significant event for those involved, and we treat the transaction with the respect it deserves. Kline May Realty offers Seller clients free home staging and professional photography on all listings as well as exposure on over 100 websites and the longest running local television show in the Central Shenandoah Valley, The Kline May Realty Television Showcase. Our Buyer clients benefit from agents who are well educated on the latest market offerings, and from the tools available on our website like saved searches, map searching, and automatic notification of new listings.

The 2015 Central Shenandoah Valley residential real estate market continued to recover from the market recession of 2009 -2011, with steady gains in average sales price and the total number of homes sold. Kline May Realty had a good year in 2015 as well, increasing total sales at nearly three times the rate of the market as a whole.

On January 1, 2015, we opened the newest Kline May Realty office in Augusta County and we are very excited to be able to serve the greater Augusta County community with a local office. By year’s end, we had 10 agents in the Augusta County office and a tremendous Managing Broker, Minnie Stevenson, who has over 30 years experience in the Augusta County real estate market.

The opening of a new office and increased exposure to a new market, in addition to favorable market conditions like reasonable prices, historically low interest rates, and the easing of credit restrictions for some Buyers, give us every reason to expect 2016 will be an exciting year for Kline May Realty. We can be sure of one thing, it will be a year in which we continue to work hard for our clients, who have paid us the high compliment of allowing us the opportunity to be of service.

KlineMay.com

K L I N E RMe aAl tYy 2015 Total Sales Volume January 1 – December 31, 2015

Kline May Realty

$215,194,587

Funkhouser Real Estate Group

$153,032,182

Old Dominion Realty

$0

$133,508,750

Re/Max Performance

$35,580,588

Cottonwood Commercial

$35,533,259

$40,000,000

$80,000,000

$120,000,000

$160,000,000

Source: Harrisonburg - Rockingham Association of REALTORS Multiple Listing Service, 1/20/2016

KlineMay.com

$200,000,000

2015 Rockingham County Residential Market Snapshot Map of Overall Area Summary Rockingham County

NORTHWEST ROCKINGHAM

12 Month Average Sales Price

Timberville Broadway

Units Sold Year to Date

2.37%

2.96%

$203,899

1,043

Months Supply of Inventory

6.24 months

Interstate

81

NORTHEAST ROCKINGHAM MASSANUTTEN

Elkton Route

33

HARRISONBURG JMU Route

33

SOUTHEAST ROCKINGHAM

SOUTHWEST ROCKINGHAM Bridgewater © 2014, Kline May Realty

Interstate

81

Grottoes

-1.05%

Source: Harrisonburg-Rockingham Association of REALTORS® Multiple Listing Service, 12/31/15, Single-Family, Townhouse, and Duplex Sales

The real estate market in the Central Shenandoah Valley continued to strengthen in 2015, with increases in total residential units sold and average sales price, and a market generally balanced between Buyers and Sellers. Total sales in Rockingham County increased by 4%, while price increased by 3%. These numbers are indicative of a healthy market growing at a sustainable pace.

2015 Augusta County Residential Market Snapshot Map of Augusta County

12 Month Average Sales Price

Units Sold Year to Date

2.89%

4.11%

$188,875

1,393

Source: Greater Augusta Association of REALTORS速 Multiple Listing Service, 12/31/15, Single-Family, Townhouse, and Duplex Sales

The numbers in Augusta County were nearly identical to Rockingham, with sales increasing by 4%, and prices by just under 3%. A key component in the 2016 market will be the inventory of homes for sale and the return (hopefully) of new construction produced by small, local builders. With prices reasonable and interest rates still at historic lows, Buyer activity is expected to be strong and will require an increase in the inventory of homes for sale in order to to keep the market in balance.

Complimentary Staging To assist our Seller Clients in preparing their home for the real estate market, Kline May Realty makes available a professional in-house stager as a complimentary service to homeowners.

Kline May Realty’s professional stager walks through the listing with the Seller, making notes and giving them advice on decluttering, furniture layout, paint colors, and more.

The Kline May Realty Advantage

Professional Photography Industry studies show that professional photography is the most important aspect of marketing homes for sale. All Kline May Realty listings are professionally photographed, which gives listings maximum visual appeal online and in print.

Local photographers take Kline May Realty’s pictures, and all pictures, including drone and twilight photography, are taken at no additional cost to Sellers.

Television Showcase Kline May Realty has a unique partnership with WHSV that allows us to be the only real estate company in the Valley to air a TV show geared toward current real estate listings.

The Showcase airs three times each Sunday on local channels. In addition, you can view segments from the show as well as full episodes on our Kline May Realty YouTube channel: YouTube.com/KlineMayRealty.

The Kline May Realty Team Kline May Realty truly believes our greatest strength lies in the collective passion, experience, intelligence, and values of our Team.

Management, agents, and staff collaborate on marketing strategies and company direction and have seen and experienced the positive results of working together.

Home Y

is where our dog is

Professional Photography

Ashley & Ryan Swartz, Owners/Photographers; Liliya Kovalenko, Graphic Designer; and Danielle Johnson, Writer/Editor

S

ince 2011, Swartz Photography has provided professional photography services for Kline May Realty.

Owned and operated by the husband-and-wife team of Ashley and Ryan Swartz, Swartz Photography produces all of Kline May Realty’s listing images and stock photography. In 2015, they photographed 631 interiors, 131 exteriors and land listings, in addition to nearly 50 specialty photoshoots including drone and twilight photography.

With over a decade of experience in real estate, Ashley and Ryan have valuable knowledge of the business to go along with their technical and artistic photography skills. They deliver high-quality shots of every room in a home, including multiple angles of common areas and the exterior, and close-up details shots of a home’s special features. The Swartz team knows what potential buyers want to see, and their images give a true sense of properties, whether they’re being viewed online or on a flyer.

2015 was Swartz Photography’s biggest year yet, and their success gave them the opportunity to expand their range of services and hire two new staff members: graphic designer, Liliya Kovalenko, and writer/editor, Danielle Johnson. With more collaborative potential than ever, 2016 is going to be a great year for Swartz Photography and Kline May Realty, which is crucial because of the importance of professional photography in real estate.

According to the National Association of Realtors’ “2015 NAR Profile of Home Buyers and Sellers,” nearly 90% of buyers find themselves searching for their next homes online, and a staggering 98% said that during their home search, photography was the most valuable website feature.

KlineMay.com

The Kline May Realty Television Showcase

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on Hollif is the Videographer/Editor/Producer of The Kline May Realty Television Showcase and a co-founder of Appeal Production, a visual marketing firm, that is based in Harrisonburg, VA. The team at Appeal Production makes it possible for the Kline May Realty agents to showcase their listings each week on the small screen. Every Sunday, viewers can tune into WHSV TV3 at 7:30AM, The Valley’s Fox at 8:30AM, and CBS the V at 6PM to check out local real estate listings, view video tours of homes, and learn tips about the real estate market from industry professionals.

The Kline May Realty Television Showcase’s host, Meg Robinson, keeps viewers watching from week to week as she guides them through the Showcase with her warm smile and charming personality.

Twelve years and over 600 episodes later, the show has developed a regular following with as many as 2,200 views each week, and hundreds of additional views on social media.

In 2016, Kline May Realty and Appeal Production look forward to the continued success of the Finding Forever Homes segment. Each month on the Kline May Corner, Aimee Roberts, Kline May Realty’s Marketing Specialist, introduces viewers to animals who are available for adoption at one of our local shelters. Individuals approved to adopt a pet featured on the Finding Forever Homes segment, have a reduced adoption fee of $25 if they mention that they saw the Showcase. Dogs Doug, Oliver, Liam, Marielle, Scout, and Harley as well as Ellie Mae the cat all found homes as a direct result of viewers watching the show and then going to the shelter to adopt the featured pet.

Kline May Realty and Appeal Production are thrilled by the opportunity to collaborate on this unique show and look forward to working together again in 2016.

Where can I watch The Kline May Realty Television Showcase?

• • • •

Sunday, WHSV TV3 at 7:30AM Sunday, The Valley’s Fox at 8:30AM Sunday, CBS the V at 6PM Any day, any time at YouTube.com/KlineMayRealty

YouTube.com/KlineMayRealty

Keith May, Broker of Cottonwood Commercial

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ottonwood Commercial is one of Western Virginia’s most comprehensive commercial real estate resources. Over the years, their market has expanded from the broader Shenandoah Valley to beyond.

Cottonwood Commercial agents bring a diverse set of backgrounds and skills to their work. Because of this, they are able to provide specialized services across the board in commercial real estate. Areas of assistance include: • • • • • • • • • •

•

Site selection for national retailers Investment real estate Sale and purchase of convenience stores and gas stations Leasing and sale of warehouse and industrial facilities Sale and purchase of farm acreage Multi-family property brokering Site finding and brokering Leasing of and brokering of office properties Landlord and tenant representation Triple net leases, which are lease agreements that designate the lessee (the tenant) as being solely responsible for all of the costs relating to the asset being leased in addition to the rent fee applied under the lease 1031 exchanges

In 2015, Cottonwood Commercial agents brokered locations for Walmart; Napa Auto; UPS; and several new fast food locations including Dunkin’ Donuts, Pizza Hut, and Wendy’s.

The agents at Cottonwood Commercial also helped clients acquire multi-family apartments and office locations. In addition, they completed 1031 exchanges, which allow investors to sell a property, reinvest the proceeds in a new property, and defer all capital gain taxes.

2015 was a great year for the commercial real estate market, as a whole. The metrics in all commercial sectors improved in the Central Shenandoah Valley in 2015.

Interest rates have been historically low, and there has been significant demand in the retail and multi-family sectors.

Cottonwood Commercial welcomes your interest and your inquiries as you consider buying, selling, leasing, or managing commercial property. They are guided by the belief that their company is not successful until the clients they serve are successful, and they look forward to helping you with your future commercial real estate investments.

CottonwoodCommerical.com

Cottonwood Commercial has recently completed transactions with the following businesses:

CottonwoodCommercial.com

Roy Brooks, Managing Agent for Priority Property Management

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stablished in 2011, Priority Property Management is delighted to be a part of the Kline May Company family. They offer professional property management and leasing services to property owners in the Centeral Shenandoah Valley.

Currently, Priority Property Management is making investments to increase efficiency and grow in a way that creates long-term sustainability, which in turn gives them the opportunity to provide excellent service to their clients.

The rental division of Kline May Company is a valuesdriven business with an emphasis on stewardship.

They understand that real estate is one of the largest investments many of us will make; thus, it is their priority to serve their clients well by being a good steward of their investment.

In 2016, Priority Property Management will celebrate their five-year anniversary, and their team is tremendously grateful for the continued support of the Central Shenandoah Valley!

Priority Property Management’s unique blend of expertise in real estate, contracting and property management, and their relationship as part of the Kline May Company family has led to strong growth. In 2015 their portfolio grew over 30% in single-family, multi-family, and small commercial properties. This marked the largest rate of growth that they’ve seen since 2011.

If you would like to learn more about Kline May Company’s rental division and the services they offer for both residential and commercial clients, please contact one of their team members today. You can find more information about their company at ChoosePriority.com.

ChoosePriority.com

Home Y

is where we watch our kids grow up

Tim Peters, Chief Operating Officer and Auctioneer, and Megan Reichart, Director of Operations

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ottonwood Auctions, which opened its doors in 2013, is a real estate auction company that auctions homes, farms, land, and commercial properties. This year, they had auctions throughout the Central Shenandoah Valley and West Virginia.

In 2015, Cottonwood Auctions received referrals from several Kline May Realty agents, including Ritchie Vaughan, Michelle Scafidi, Jen Adams, Basil Hangemanole, and Karen Carpenter. Additional auctions came as a result of Cottonwood Auctions’ continued partnership with Josh Puffenbarger of Allied Auctioneers and Associates.

In 2015, Cottonwood Auctions saw an increased use of their company’s app. With the app, which can be downloaded from the App Store or Google Pay, bidders are able to bid remotely at live auctions using their smartphone.

Over the past year, Cottonwood Auctions has found that having an online component to auctions often results in more people bidding on the property, which is why in 2015, Cottonwood Auctions introduced online-only auctions. Online-only auctions allow potential buyers to bid on a property over a set period of time using their mobile device or computer. Bidders can participate in the auction from the convenience of their home or when taking a break from work.

Cottonwood Auctions understands that auctions are a great solution for different types of residential and commercial properties, including farms and land. They are always willing to meet with potential auction sellers for a free, no obligation auction assessment of their property, and they are looking forward to helping more clients succeed with the auction method of real estate marketing in 2016.

CottonwoodAuctions.com

Cottonwood Auctions sold the following properties via a successful real estate auction:

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Mt. Clinton House 1551 Muddy Creek Road Harrisonburg, VA 22802 Sold for $159,500

Log Cabin 5541 Williams Run Road Mt. Crawford, VA 22841 Sold for $188,100

A&E Automotive 1310 Weaver’s Road Harrisonburg, VA 22802 Sold for $209,000

Criders Cabin 22359 German River Road Criders, VA 22820 Sold pre-auction for $139,975

CottonwoodAuctions.com

Kline May Realty Office Locations Kline May Realty - Main Office

1962 Evelyn Byrd Ave. Harrisonburg, VA 540.437.3500 E-mail address and website for main office and branch offices: info@KlineMay.com KlineMay.com

Kline May Realty - Broadway Office 415 South Main Street Broadway, VA 540.896.6488

Kline May Realty - Downtown Office 83 South Main Street Harrisonburg, VA 540.437.3535

Kline May Realty - Augusta County Office 2352 Jefferson Highway Waynesboro, VA 540.943.7410

Sister Company Locations Cottonwood Commercial

1958 Evelyn Byrd Avenue Harrisonburg, VA 540.434.9922 Info@Cottonwood.com CottonwoodCommercial.com

Priority Property Management 541 Acorn Drive Harrisonburg, VA 540.578.4974 Contact@ChoosePriority.com ChoosePriority.com

Cottonwood Auctions

61 South Main Street #200 Harrisonburg, VA 540.437.9500 Info@CottonwoodAuctions.com CottonwoodAuctions.com

K L I N E RMe aAl tYy

Sister Companies: Cottonwood Commercial | Priority Property Management | Cottonwood Auctions