2017 Kline May Realty Annual Report

2017 K L I N E RMe aAl tYy ANNUAL REPORT

Learn about Kline May Realty, Our Sister Companies, and the Local Real Estate Market

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

home is

a recipe that’s five generations old.

Kline May Realty Annual Report

If you have been a client of Kline May Realty or one of our sister companies, we thank you. If you have not, we look forward to having the chance to work with you in the future.

As part of the Kline May Company family, 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 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 the nature of their real estate needs. We hope this report will help you learn a bit about our companies, our people, and our community.

We look forward to the opportunity to be of service.

Thank you, Keith May

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 Shenandoah Valley Autism Partnership, The Cinderella Project, Night to Shine, and Broadway High School Athletics. The collage to the right captures moments from a variety of “Kline May Cares” moments throughout the year.

In addition, Kline May Realty would like to highlight our efforts with two specific causes we supported: Bicycles for Refugees and the Rockingham-Harrisonburg SPCA.

3rd Annual Soupfest Fundraiser Soupfest is an annual fundraiser and soupmaking competition hosted by Kline May Realty. This year’s Soupfest supported Bicycles for Refugees and was held at the new Dave’s Taverna. We welcomed approximately 100 guests and raised $1,000.

Smiling faces at the Bicycles for Refugees Soupfest event

For those who may be unfamiliar with this cause, Bicycles for Refugees helps new community members safely and efficiently commute around town. It takes time for a refugee to get a driver’s license and afford a car, and our city’s public transportation system does not always accommodate the needs of working households. Riding a bike can be one of the most effective ways for these new residents to get to work, school, and shopping.

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.

Roe, a cat featured on the Finding Forever Homes Segment

When Taryn Bromser-Kloeden, the SPCA’s former 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.”

K L I N E RMe aAl tYy

Karl Waizecker, Principal Broker of Kline May Realty

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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 to residential Buyers and Sellers.

Buyers may also take advantage of the tools on our website, www.KlineMay.com, including saved searches, map searching, automatic notification of new listings and the ability for Buyers to save listings in a personal folder.

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 world class service. We believe the business of residential real estate sales has very little to do with “sales”, rather, it has everything to do with service and education. A Realtor® has a thorough understanding of local market and industry trends and their responsibility is to help guide their clients through the buying or selling process.

The 2016 Central Shenandoah Valley residential real estate market continued to recover from the market recession of 2009 - 2011, with a significant increase in the total number of homes sold. Kline May Realty had a good year in 2016 as well, increasing total sales and adding 20 new agents.

We understand the sale or purchase of a home is a tremendously important 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 Showcase.

Our Buyer clients benefit from agents who are well educated on the latest market offerings and trends.

On January 1, 2015 we opened the newest Kline May Realty office in Waynesboro, and we are very excited to be able to serve the greater Augusta County community with a local office. Our Augusta office underwent a building expansion and at the beginning of 2017 had 21 agents after just two years in operation.

The opening of a new office and a new market for our company, 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 2017 will be an exciting year for our company!

KlineMay.com

K L I N E RMe aAl tYy 2016 Overall Client Satisfaction Overall Client Satisfaction - 2016

Undecided, Dissatisfied, or Other, 2.5%

Satisfied 7.8%

Very Satisfied 89.7%

Total Customers that were “Very Satisfied” and “Satisfied” = 97.5%

Total Sales Volume - 2016

KlineMay.com

K L I N E RMe aAl tYy

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n our 2016 Annual Report, we mentioned that a key component to the 2016 market would be inventory, which was low at the end of 2015 due to several factors. Unfortunately, those factors are still influencing our market, and we saw inventory decline yet again in 2016. We believe a few things are causing this: a continued lack of new construction, satisfaction with refinancing results, and a delay in household formation by folks under 35.

Despite the declining inventory, sales were very strong in 2016, with overall residential sales increasing by 16% in Rockingham County and by 8% in Augusta County.

Interest rates, although slightly higher than one year ago, are still very low. These rates, when combined with slowly increasing prices, have provided a strong measure of affordability for homebuyers.

However, the combination of an increasing pace of sales and a declining inventory will almost certainly drive prices up in 2017, especially if inventory does not increase. National experts predict interest rates will rise in 2017, which will begin to cut into housing affordability for many Buyers. This should be a good environment for Sellers, which may motivate more homeowners to list their property, hopefully bringing a bit of balance back to our market.

KlineMay.com

K L I N E RMe aAl tYy Rockingham County Residential Market Snapshot

NORTHWEST ROCKINGHAM

Units Sold Year to Date

12 Month Average Sales Price

Map of Overall Area Summary Rockingham County

2.79%

16.69%

$213,982

1,308

Timberville Broadway

Months Supply of Inventory

3.78 months

Interstate

81

NORTHEAST ROCKINGHAM MASSANUTTEN

Elkton Route

33

HARRISONBURG

-37.32%

JMU Route

33

SOUTHEAST ROCKINGHAM

SOUTHWEST ROCKINGHAM Bridgewater © 2014, Kline May Realty

Interstate

81

Grottoes

Source: Harrisonburg-Rockingham Association of REALTORS® Multiple Listing Service, 12/31/16, Single-Family, Townhouse, and Duplex Sales

Augusta County Residential Market Snapshot Map of Augusta County

12 Month Average Sales Price

Units Sold Year to Date

0.51%

6.21%

$189,221

1,393

Source: Greater Augusta Association of REALTORS® Multiple Listing Service, 12/31/16, Single-Family, Townhouse, and Duplex Sales

KlineMay.com

The Kline May Realty Advantage

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.

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, giving 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 is

that spot on mom’s shoulder.

Professional Photography

Ryan Swartz Photographer

Ashley Swartz Photographer

Lil Kovalenko Graphic Designerr

Dan Emmerman Photographer

Aimee George Photo Editor

Danielle Johnson Writer/Editor

Levi Vickman Office Manager

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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’s listing images and stock photography. In 2016, they completed more photoshoots for our company than ever before: the count for the year was over 1,000.

With more than 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 in print.

2016 was Swartz Photography’s biggest year yet, and their growth allowed them to expand both their services and their personnel. The company now offers walkthrough videos, accurate floor plans, and promotional fliers in addition to photographs.

Graphic designer Lil Kovalenko oversees the fliers, while writer Danielle Johnson edits listings upon request. In September, local photographer Dan Emmerman joined Swartz Photography as an associate, bringing even more experience and scheduling flexibility to the team.

To kick off 2017, Swartz Photography also brought on Aimee George, a talented photo editor, and Levi Vickman, their wonderful office manager. We look forward to continuing the productive collaboration between Kline May Realty and the Swartz team in the year ahead.

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 cofounder of Appeal Production, a visual marketing firm, based in Harrisonburg, VA. The team at Appeal Production makes it possible for 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 real estate 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. After thirteen years and over 650 episodes, the show has developed a regular following with as many as 3,000 views each week, and hundreds of additional views on social media.

The Kline May Corner segment, hosted by Aimee Roberts, continues to be a success and allows Kline May Realty the opportunity to educate viewers about real estate market trends and local community events.

In 2016, Kline May Realty and Appeal Production worked collaboratively to update the look and feel of the Showcase. The updated TV show features local photography, family photos of past clients, updated graphics, and appearances by Kline May Realty agents.

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

Thanks for letting us

help you find home

...

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

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

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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; 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 2016, Cottonwood Commercial agents brokered locations for Janney Financial, Boost Mobile, Total Nutrition, O’Reilly Auto Parts, Dupont Community Credit Union, FirstBank, Benjamin Moore, and Orange Theory Fitness. We also negotiated locations for several new area restaurants including Jersey Mike’s, Peace, Love, and Little Donuts, and Moe’s Southwest Grill.

In addition, our Cottonwood Commercial agents helped clients acquire multi-family apartments and office locations, and we completed several 1031 exchanges.

1031 exchanges allow investors to sell a property, reinvest the proceeds in a new property, and defer all capital gain taxes.

2016 was a great year for the commercial real estate market. The metrics in all commercial sectors improved in the Central Shenandoah Valley. 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 inquiries as you consider buying, selling, leasing, or managing commercial property. We are guided by the belief that our company is not successful until the clients we serve are successful. We 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

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stablished in 2011, Priority Property Management offers professional property management and leasing services to property owners in the Central Shenandoah Valley.

In 2016, Priority Property Management celebrated our five-year anniversary with an office relocation to downtown Harrisonburg. Priority Property Management, in partnership with Swartz Photography, purchased the former Mosaic Credit Union building on West Washington The rental division of Kline May Company is a values- Street in the Fall of 2016. After breathing new life into the driven business with an emphasis on stewardship. building with some renovations, we officially opened our We understand that real estate is one of the largest doors at the new location in October 2016. With room to investments many of us will make; thus, it is our priority grow in our new office, Priority Property Management will to serve our clients well by being a good steward of their add to our team in 2017 to keep pace with our continued investment. business growth.

Priority Property Management’s unique blend of expertise in real estate, contracting, and property management, as well as our relationship as part of the Kline May Company family, continues to fuel strong business growth. 2016 was a year of continued growth in both the residential and commercial real estate markets as the number of residential and commercial properties in our management portfolio increased.

Because of our growth, the need for a larger office space became necessary.

Priority Property Management is tremendously grateful for the continued support of the Central Shenandoah Valley! If you would like to learn more about Kline May Company’s rental division and the services we offer for both residential and commercial clients, please contact one of our team members today.

You can find more information about our company at ChoosePriority.com.

ChoosePriority.com

home is

celebrating small joys together.

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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, we had auctions throughout the Central Shenandoah Valley and West Virginia.

Cottonwood Auctions enjoyed another great year in 2016. The majority of our real estate auctions were online only. In fact, we only held one live auction the whole year.

In 2016, we received referrals from several Kline May Realty agents reinforcing our belief that auctions are a great addition to traditional brokerage services. People who are settling an estate, have a unique property, or are under time constraints are great candidates for auction. Auctions create competition among buyers while exposing the property to a large number of pre-qualified prospects. They also eliminate high seller carrying costs and reduce the amount of time the property is on the market.

Additional auctions came as a result of our continued partnership with Josh Puffenbarger of Allied Auctioneers and Associates.

We are always willing to meet with potential auction sellers for a free, no obligation auction assessment of their property. We’re looking forward to helping more clients succeed with the auction method of marketing in 2017.

CottonwoodAuctions.com

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

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3 Townhouses in Madison Manor 1235-1239 Old Furnace Road Harrisonburg, VA Sold for $124,000

3 Bedroom Harrisonburg Home 315 N Dogwood Drive Harrisonburg, VA Sold for $185,000

Lexington Cabin on 92 Acres 109 Violet Lane Lexington, VA Sold for $251,350 (more than what previously listed for in the MLS!)

Staunton Home on 1.2 Acres 114 Berry Farm Road Staunton, VA Sold for $160,000

CottonwoodAuctions.com

Kline May Realty Office Locations Kline May Realty - Main Office 1962 Evelyn Byrd Avenue 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 Offices 83 South Main Street, Suite 101 Harrisonburg, VA 540.437.3535 83 South Main Street, Suite 201 Harrisonburg, VA 540.437.3500

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

40 West Washington Street, Suite 101 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