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Posts Tagged by Real Estate

Real Estate Market Shifts: Buyers Seek Smaller Houses

March 15, 2011 Posted by Sandie under Real Estate
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A recent study from the National Association of Home Builders (NAHB) shed light on the current state of the real estate market and gave projections for the future. What the study found is that as a result of the recent housing slump, people are looking for smaller houses.

According to the NAHB report, builders “surveyed expect homes to average 2,152 square feet in 2015, 10 percent smaller than the average size of single-family homes started in the first three quarters of 2010. To save on square footage, the living room is high on the endangered list – 52 percent of builders expect it to be merged with other spaces in the home by 2015 and 30 percent said it will vanish entirely.”

The report notes the increasing importance of green and eco-friendly homes. “In addition to floor plan changes, 68 percent of builders surveyed say that homes in 2015 will also include more green features and technology, including low-E windows; engineered wood beams, joists or tresses; water-efficient features such as dual-flush toilets or low-flow faucets; and an Energy Star rating for the whole house.”

According to the U.S. Department of Housing and Urban Development, home sales have been increasing due to the affordability of existing homes. Despite this good news, the report also noted that the “housing market remains fragile as data through January paint a mixed picture of recovery. Existing home sales ticked upward in January, but remained below levels seen in the first half of 2010. Mortgage delinquencies continued a downward trend compared to early 2010 and foreclosure starts and completions remain below peak.”

If you want to learn more about the results of the NAHB survey, read more from Realty Times.

Start planning your next getaway; TripAdvisor ranks top vacation rental hot spots for 2011

March 11, 2011 Posted by Sandie under Real Estate
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Trying to decide where to vacation this year? TripAdvisor.com, one of the world’s largest travel sites, just released their list of the top vacation rental hot spots for 2011. This year’s list has something for everyone, from summer beach getaway spots to areas with top-notch ski resorts.

“Vacation rentals can offer families and groups of travelers significant savings over other accommodation options,” says Hank Hudepohl, TripAdvisor’s director of vacation rentals.

The list:

  1. Kissimee, Florida
  2. Big Bear Lake, California
  3. Gatlinburg, Tennessee
  4. Kihei, Hawaii
  5. Destin, Florida
  6. Palm Springs, California
  7. Outer Banks, North Carolina
  8. Lahaina, Hawaii
  9. Hilton Head, South Carolina
  10. Cape Cod, Massachusetts

According to Hudepohl, this year’s list shows off some of the “best vacation rental destinations in the U.S. where travelers can save big.”

Read more about the vacation hot spots that made the cut on RIS Media.

Wealthy Buyers Re-Emerge in Real Estate Market

March 7, 2011 Posted by Sandie under Real Estate
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“It hasn’t been a good six months for all people, but it was a good six months for rich people,” says Glenn Kelman, CEO of Redfin real estate brokerage. The numbers seem to back up Kelman’s assertion; despite a four-year decline in the housing market, the rich are back in the real estate game.

Sales of million-dollar homes and condos rose last year in all 20 major metro areas. The average jump in high-end home sales in these areas was reportedly 18.6 percent.

What’s the inspiration behind the re-emergence of wealthy buyers in the market? According to Kelman, “When Wall Street goes up, rich people buy homes.” Take a look at the market and you’ll see that stock values have almost doubled from their March 2009 lows.

Greg McBride, chief economist at Bankrate.com, said that “Higher income households are feeling better about their financial security.” The biggest market for million-dollar homes, San Jose, California, saw a 27.4 percent spike in sales last year.

The wealthy have taken advantage of the dip in home prices, and getting mortgages for these homes has become cheaper too. Normally buyers must take out a jumbo loan in order to finance a mortgage above the $417,000 threshold. Loans for homes that fall above the threshold typically have higher interest rates because they are what is technically referred to as non-conforming, or higher risk – not backed by Fannie or Freddie. Whereas interest rates on homes with higher mortgages have typically been significantly higher than average, by 2010 the difference between interest rates for average buyers and buyers of high-end homes had shrunk to just 0.6 percent more.

To read more, visit the CNN Money site.

Stricter FHA Financing Rules Signal Need for Creative Modes of Financing

February 9, 2011 Posted by Sandie under All Things Rent To Buy, Real Estate, Rent2Buy Concept
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The Federal Housing Administration has changed their condo financing rules, squeezing sellers and creating significant new challenges for the resale of some real estate projects.

According to Orest Tomaselli, CEO of White Plains, NY-based National Condo Advisors LLC, “There were 26,000 condominium developments that would have had to have been recertified by Dec. 7, 2010, and, in fact, my office sent out letters to almost every single one of these developments across the country telling them they were going to lose their approval. Most of them didn’t even know.”

While FHA-approval typically involves a substantial amount of paperwork, the benefit is easier access to FHA financing. Condominium purchasers did not necessarily need to rely on FHA funding in the past, because up until 2007, private lenders were loaning them large sums of money. For those who did want FHA financing, there was something called a spot loan that allowed them to get FHA approval for the particular condominium slotted for purchase.

“In February 2010, the FHA ended the spot loan — replacing it was a process where every single condominium development had to have project approval, which was to be given by HUD (the U.S. Department of Housing and Urban Development), which administers the FHA, and lenders that were delegated FHA lenders,” said Tomaselli. Because of the economic downturn, the presence of private lenders in the market has drastically decreased and the need for other forms of financing has again become an important consideration for developments.

While condo developments used to be able to get approval once and then be set for life, the process has changed. Developments must now get reapproved every two years. The guidelines for approval are stricter than ever, and some developments are reconsidering their need for a partnership with the FHA. But there are drawbacks to relinquishing FHA-approval. Without FHA-approval, condos are seen as less desirable and are at a disadvantage in terms of marketing and value. This is a crucial concern considering the current state of the housing market.

So, what does this mean for you? “When those condo owners want to sell their units and no one can finance,” says Tomaselli, “when buyers can’t get a mortgage because the development is not FHA- or Fannie Mae-compliant, that’s when the pain will rise and everyone will start to scramble to become compliant.”

Rent to buy is an alternative that allows buyers to pay a monthly rental payment on a property and have a portion of that payment go towards the eventual purchase price. For sellers, offering potential homeowners the option to rent to buy the property means a property does not remain vacant, but rather makes money each month until it is purchased. It’s crucial to consider creative ways of financing given the housing market’s current state. Rent to buy is just one option that can benefit buyers and sellers alike in a time when finding a happy ending for either is almost unimaginable.

Read more, in this article from Inman News.

5 Characteristics of a Tech Savvy Agent: How to Use Social Networking Wisely

February 8, 2011 Posted by Sandie under Real Estate
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In order to stay competitive in an increasingly tech-centered world, you need to adapt to the changing trends and maximize your use of the internet and other new technologies. Social media is just one facet of your online strategy that is extremely important to master. Using social networking effectively will allow you to expand your audience and client base, easily and cost-efficiently manage your business, and stay connected with others without spending an inordinate amount of time on it.

So what are the characteristics of a tech savvy agent? The following 5 characteristics are those you should strive to emulate in order to step up your social media game and become a more effective and successful real estate agent.

  1. Open Networker: Know how to engage people. If you have 1 million friends, it means nothing if you can’t find ways to engage them and develop those relationships.
  2. Authentic and Personal: Share information about what you are passionate about. Don’t spit out content just because you think it may be relevant to your audience; also make sure to give them some insight into who you really are as a person and not just as a professional. When it comes down to it, people would rather do business with a friend than a stranger.
  3. Engaging: Signing up on Facebook, Twitter, and other social networking sites is a first step towards cultivating an effective social media strategy. Being a member of these types of websites makes you a part of the online community. But there is little value in just being a member of the community; you must strive to be an ACTIVE member of the community. Engage with your connections. Make sure to post updates, ask questions, and respond to what other people are saying. Be present in the communities you subscribe to and you’ll begin to reap the rewards.
  4. Balanced: Don’t be too over the top. Nobody wants one of their Facebook connections posting on their wall every few hours with self-promoting content. Social networking is about advertising yourself and your services without blatantly selling anything. Don’t just post your own thoughts and opinions. Go further and provoke discussions with your friends and followers. Bottom line, don’t be overly dominant; let the engagement of your entire online community work in your favor!
  5. Expert: If you’re an expert in a certain field or area, share the wealth! One of the biggest difficulties we’re faced with on the web is distinguishing legitimate content from fluff. Make this easy for your friends and followers; share your expertise. Generate content stemming from experience you have had or things that you know. Share real quality content and your fan-base is guaranteed to grow.

So what’s the bottom line? If you’re going to optimize your use of social media platforms you have to actively and consistently engage users and followers on these sites. Be authentic and personal, sharing content that you are truly passionate about. If you have substantial expertise in an area, don’t keep it to yourself! Share your knowledge with others, engage them in conversations, network openly, and you are sure to reap the rewards.

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Think It’s Only Downhill From Here? 10 Cities Where Home Prices Will Rise in 2011

February 3, 2011 Posted by Sandie under Real Estate
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Though the national average for home prices is predicted to decline in the coming year, there are some cities that will experience a marked growth. The following 10 cities are slotted as the top ten cities for predicted growth in home values. Some may take this at face value to be an indication of a rebounding housing market. However, when compared to the high percentages predicted in markets where home prices will fall the most, a 0.5 percent increase like that seen in New Orleans seems relatively insignificant.

1. Washington, DC: +6.5%
2. Houston, TX: +3.6%
3. Honolulu, HI: +3.4%
4. Memphis, TN: +3.2%
5. Columbus, OH: +2.1%
6. Dallas, TX: +1.4%
7. New York, NY: +1.3%
8. Birmingham, AL: +0.9%
9. Pittsburgh, PA: +0.8%
10. New Orleans, LA: +0.5%

Source: “Where Home Prices Will Rise, Fall the Most in 2011,” MSNBC (Jan. 26, 2011)

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For Sale By Divorce: Real Estate Agents Turned Mediators

February 1, 2011 Posted by Sandie under Real Estate
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Despite the tough economic times, people are still getting divorced. And while this can be a costly endeavor, people are making the best of their separation. While divorce lawyers typically deal with whatever baggage or bad blood still remains between two people involved in a divorce, real estate agents are more and more stepping in to bear the brunt of the pain.

According to a recent piece on NPR, the market for real estate agents helping divorced couples sell their old homes is becoming a sort of niche. Not every agent can deal with the extra emotional baggage associated with selling a home for two people who can’t get along.

One such agent who deals with a lot of separated and divorced couples says that, “Really it’s a simple, singular goal, and that’s to, as efficiently as possible, get to the end of the road, which is the sale of their home.” Scott Weeda does not, like most realtors, avoid divorce sales. He embraces the role as both real estate agent and mediator and uses all the tools available to him to keep both parties happy and get their home sold, fast.

Listen to the full story on NPR.

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Foreclosure Activity Continues Rising Across the U.S.

January 27, 2011 Posted by Sandie under News, Real Estate
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Homeowners are unable to catch a break as the recession drags on, and millions of Americans continue to default on their mortgages. In 2010, foreclosure activity jumped in 146 out of the country’s 206 largest metro areas, according to RealtyTrac.

Over the past year workers saw massive layoffs, leaving homeowners unable to pay their monthly bills and driving the foreclosure rate even higher.

Even cities that were relatively insulated in the early part of the credit crunch, like Seattle, Houston and Chicago, are facing the wrath of the continuing economic crisis. The Houston metro area faced the biggest jump in foreclosures in 2010, rising 26 percent from the city’s 2009 level. Seattle had the second-highest hike, with 23 percent more foreclosures, followed by a 21 percent increase faced down south in the Atlanta metro area.

While foreclosures spiked across the country, the areas hardest hit during 2009’s initial foreclosure push actually saw improvement in 2010. Las Vegas, which faced a rash of repossessions with its influx of new home constructions and condominiums that new buyers simply couldn’t afford, actually saw its foreclosure rate decline by 7 percent last year.

A glimmer of hope was also visible in some foreclosure-ridden California cities, after banks took steps to halt repossessions following allegations of improper evictions. In the Riverside, Calif. area, foreclosures dropped by 20 percent, while San Diego and Los Angeles saw similar drops, of 17 and 16 percent respectively. But RealtyTrac notes that lenders have resumed evictions in these areas, and 2011 will likely see a spike in California’s foreclosures.

In fact, with this news, the company paints a grim picture for the whole of America in the coming year. “We believe we’re going to see an abnormally high growth of foreclosure activity in the first quarter and we do expect that 2011 will be another record year for foreclosure activity and bank repossessions,” RealtyTrac’s Rick Sharga told the Associated Press, saying that he anticipates foreclosures will rise by at least 20 percent.

But hopefully as the economy improves and businesses start hiring again, homeowners will be back on a normal mortgage-paying schedule and once again build equity in their homes.

More Affordable to Buy than Rent in 72% of 50 Largest American Cities

January 25, 2011 Posted by Sandie under All Things Rent To Buy, Real Estate
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Trulia’s quarterly Rent vs. Buy Index was released yesterday. We’ve written about the Trulia index in past blog posts where we outlined the best cities in which to rent and those where it is best to buy. The new figures are very similar to those from last quarter, with just a few notable differences.

According to last quarter’s Rent vs. Buy Index, the top five cities where buying is cheaper than renting were Arlington, Texas; Fresno, California; Miami and Mesa and Phoenix, Arizona. In the most recent report, Las Vegas made the list and Fresno dropped from the top five. The top 10 cities to rent vs. buy are New York, Seattle, Kansas City, San Fransisco, Memphis, Los Angeles, Fort Worth, Oakland, Portland and Albuquerque.

Regardless of which cities made the top 10 list of where either renting or buying is a more financially sound option, some crucial insights can be derived from the Trulia index. Major discrepancies exist between the results of the survey and the behavior of real Americans.

Despite the fact that it is more affordable to buy a two-bedroom home than rent it in 72 percent of the US’s 50 largest cities, there has been a movement towards renting as more and more Americans shy away from homeownership. This trend is especially interesting because for only four of the ten cities in this data set is renting actually less expensive than buying.

Though people may be doing their research about whether renting or buying is better in their particular city, there are clearly many Americans who are making decisions about homeownership that are not in line with what has been shown to be in their best interest. The fact that many Americans still choose to rent when buying is more affordable is an indication that there must be other factors affecting the choice to rent vs. buy.

The discrepancy between actual decisions to rent and buy and the data informing these decisions suggests a need for increased understanding of what other factors may be behind the choices people are making. It’s possible that many renters choose to do so because they cannot afford to make a down payment on a house.

By expanding the options for potential homeowners from strictly rent vs. buy to other transaction types like rent to buy, there will be an opportunity for more homeowners to make fiscally responsible decisions without having to limit themselves due to temporary financial constraints. Rent2Buy.com offers users the option to rent, buy, OR rent to buy properties, with the goal of helping each user find the best possible transaction type to fit their financial situation and meet their individual needs.

Any thoughts on why there has been a move towards renting despite the fact that buying is more affordable in the majority of the US’s big cities? How can we make sure Americans are making the best possible decision about renting vs. buying for their particular circumstances?

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Monthly Rent2Buy Real Estate Agent Meetup – Join Us Feb 24th!

January 24, 2011 Posted by Sandie under All Things Rent To Buy, Announcements, Real Estate, Rent2Buy Concept
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At Rent2Buy, we value the input of those we serve and are always looking for new ways to reach out to our users. We have decided to start hosting monthly meetups at our New Jersey location to reach out to the real estate community and offer a forum for discussion about the industry and Rent2Buy’s role in the ever-changing real estate marketplace. The meetup is designed for real estate professionals in the area to get together, network, and learn a little bit more about Rent2Buy.

Our first event will take place February 24th from 6-8pm. At February’s meetup we will present our Agent Network Program, explain what Rent2Buy does, and give attendees the opportunity to meet members of the Rent2Buy team and ask us questions. Don’t miss this opportunity to meet other agents and learn about Rent2Buy firsthand!

RSVP on Facebook.

We hope these meetups will become a useful tool for agents to learn from each other, and from us, about how to prosper and grow despite the current state of the real estate market.

We hope you’ll join us on the last Thursday of every month for wine and cheese and lively discussion. See you in February!

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  • Upper East Side Sees Increase in Vacancies: New Market Trend or Census Data Flaw?
  • Real Estate Market Shifts: Buyers Seek Smaller Houses
  • Start planning your next getaway; TripAdvisor ranks top vacation rental hot spots for 2011
Recent Posts
  • Rent2Buy Acquires HiGear
  • Peer-to-Peer Carsharing Gains Popularity
  • Upper East Side Sees Increase in Vacancies: New Market Trend or Census Data Flaw?
  • Real Estate Market Shifts: Buyers Seek Smaller Houses
  • Start planning your next getaway; TripAdvisor ranks top vacation rental hot spots for 2011
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