How Much Will Buyers Pay for Walkable Space?

How Much Will Buyers Pay for Walk-able Space?

Urban development that boasts high density and walk-ability is in demand over life in the suburbs, according to a report by the Center for Real Estate and Urban Analysis at George Washington University School of Business and LOCUS: Responsible Real Estate Developers and Investors. In fact, such places are gaining market share against suburban areas for the first time in decades.

The report defines walk-able urban areas as those with high density, more mixed-use real estate, and multiple transportation options. The report found that these areas command drastically larger rent premiums over suburban spaces, with the ability to charge 90 percent more for office space, 71 percent for retail, and 66 percent for multifamily rentals.

But just because a place might lack a history of density and walk-ability doesn’t mean it’s stuck with lower rents. The study found that new development can help, with areas known for sprawl taking notice of the trend and making strides in adding more density and walk-ability. Researchers specifically call out Detroit, Los Angeles, and Phoenix for recent efforts to meet the growing demand for this type of space.

Source: “Walkable Cities Gaining Ground Against Suburbs, Says Report,” Curbed.com (June 14, 2016)

What Living in a Tiny Home is Really Like

What Living in a Tiny Home is Really Like

There’s a growing hype surrounding tiny homes and micro-apartments, especially in places with skyrocketing rents like San Francisco, Seattle, and New York, but what’s it really like to live in one?

A New York Times reporter recently spent the night in a brand-new 302-square-foot micro-apartment, and gave an in-depth account that may help real estate pros understand the benefits and the drawbacks of this real estate niche.

Key Takeaways Tiny Housing:

• Tiny homes are defined as being 500 square feet or less, and while micro-apartments like the one featured in the New York Times represent the most extreme side to this trend, apartment size across the country is dropping.
• Micro-apartments are typically designed in a way that maximizes space and features a lot of storage storage options. Even an apartment like the one features in the New York Times story has kitchen amenities that include a refrigerator, microwave, stove top, and even a dishwasher, though it surprisingly did not come with an oven.
• Tiny housing is often already furnished, with pieces that are designed to have multiple functions, including desks that transform into dining room tables or beds that fold into walls so they’re out of the way during the day. The downside to this, however, is the daily grind of moving and transforming furniture can get a little tiring, and the wall-bed featured in this story was pretty difficult to set up.
• These types of spaces are probably only ideal for one person to live in, but even the smallest unit can be used to entertain up to 10 people comfortably.
• Not only are these spaces eco-friendly and leave a smaller environmental footprint, as the New York Times points out they may offer residents in high-rent areas the only chance to afford living alone and having some peace and quiet from hectic city living.

Want to experience micro-apartment living? Check out the New York Times’ video:

Source: “Tiny Home Test Drive,” The New York Times (June 10, 2016)

Seller To Buyer After Closing: ‘I’m Not Leaving’

Seller To Buyer After Closing: ‘I’m Not Leaving’

A woman in Nashville ran into an unusual problem after buying her first home: The seller is now refusing to leave.

“It’s been a nightmare,” Tamara Holloway told News 2 in Nashville. “The seller has essentially pirated my house. Holloway closed on the home on June 1. There is nothing in the contract stating that the seller can stay past that date. But Justin McCrory, the home seller, says he’s lived in the property for four years and he doesn’t plan to leave.

“The transaction went through and they’re getting a good clean property,” McCrory told reporters. “What’s the problem? … I technically don’t have to go anywhere. They’d have to evict me and they’re not having that.”

Holloway filed a detainer warrant last week. That is the first step of the eviction process. Signature Title Services says the processor for the closing also has written McCrory and told him to vacate the property.

So far, McCrory hasn’t left.

The Greater Nashville Association of REALTORS® urged buyers to make sure they get their keys at closing. Holloway did not. Also, make sure to work with the seller’s REALTOR®. McCrory didn’t have one.

“Make sure your REALTOR® understands that it’s a ‘for sale by owner’ and can work with that other party to make sure things like this don’t slip through the cracks,” said GNAR President Denise Creswell.

Source: “Nashville Woman Buys Home; Seller Won’t Move Out,” KRQE News 13 (June 11, 2016)

Productivity Killers: Don’t Utter These Words

Productivity Killers: Don’t Utter These Words

Nobody can escape the temptations to procrastinate from time to time. But that doesn’t mean you have to succumb to them.

“Fighting procrastination teaches us to fully engage in our work, get more creative with it, and ultimately, get more done,” Forbes contributor Travis Bradberry, co-author of the bestselling book “Emotional Intelligence 2.0.”

Bradberry recently shared with Forbes.com some of his tips for battling common procrastination thoughts:

“I don’t know where to begin.”

If a task is difficult, fear of doing it may be crippling you from starting it. Break down the task into 60-minute increments. “Breaking your task into shorter periods (where effort is guaranteed) allows you to move out of the ‘deer in headlights’ frame of mind,” notes Bradberry, co-founder of TalentSmart. “Before you know it, you’ve accomplished something and the task goes from way too hard to absolutely doable. When it comes to challenging tasks, inactivity is the enemy.”

“There are too many distractions.”

Stop getting distracted with e-mails, calls, and whatever else that is stealing you away from a task that you need to be complete. As Bradberry notes, “being busy is not the same as being productive.” Identify what is distracting you and remind yourself to avoid the temptation and stay focused.

“I don’t like it.”

Sometimes procrastination hits because you simply just don’t want to do the task. It’s disinteresting to you. “Rather than pushing these tasks to the back of your plate, make it a rule that you cannot touch any other project or task until you’ve finished the dreaded one,” Bradberry notes. “In this way, you are policing yourself by forcing yourself to ‘eat your vegetables before you can have dessert.’”

Source: “How to Make Yourself Work When You Don’t Want To,” Forbes.com (June 1, 2016)

The Multi-functional Kitchen

The Multi-functional Kitchen

Nothing can kill a sale faster than a dated, closed-in kitchen area. Many of today’s buyers see the kitchen as the home’s command center, and not just a place for cooking and eating. They want the kitchen to be many things at once, hence the rise in popularity of what is known as the multi-functional open-concept kitchen.

If your clients are looking to renovate an existing kitchen, or you need to advise them on building one that’s brand-new, the Washington Post shared some background on how they can design a kitchen space so that it’s functional in many different way.

“Whether you are renovating existing structure or building new, architects fully recognize the need for space that is designed for movement and flow,” says Stephanie Brick, senior designer at Sustainable Design Group, in Gaithersburg, Md. “There are still rules and important elemental guidelines — you do not want to just delete all of the walls on your first floor. But by being selective in the design, materials and professionals you work with, you can easily achieve a space that does not merely react to, but anticipates, your bustling lifestyle.”

The two main considerations when designing a multi-functional space are wall placement and storage. While it may seem like an easy solution to knock down walls, Brick says there are other architectural solutions, like open doorways, that can give a similar effect while keeping the space architecturally interesting.

Being as honest as possible about individual organizational and storage needs is key when creating a multi-functional kitchen. For some owners who want to use the kitchen as a makeshift homework area or as a place to handle their bills, adding storage for these needs will be necessary. If your clients do a lot of cooking and entertaining for large groups, they will want to make sure the kitchen has space and storage to accommodate that process. If the family has small children, the kitchen can be designed with their safety in mind.

Brick has one final piece of advice when designing this type of kitchen space. “Honesty with your architect is key to creating a strong working relationship and delivering an equally beautiful and functional space in your home.”

Source: “How to create a live/work/play space at home,” The Washington Post (June 8, 2016)

Loan Rolls Student Loan Debt in With Mortgage

Loan Rolls Student Loan Debt in With Mortgage

A new loan from a mortgage originator is designed to rescue student loan–burdened millennials struggling to save up for a down payment on a home or qualify for a mortgage. Developed by Burkey Capital, the new loan wants to help move college graduates into home ownership by rolling their student loan debt into a 30-year fixed mortgage.

The “BurkeyLoan,” said by the company to be the first of its kind, is expected to roll out this fall.

The loan reportedly is to be geared to the top 20 percent or so of earning households — those with stellar credit and at least three to four years of work experience, earning a minimum of $150,000 a year. The company expects the criteria to be popular with college grads in fields such as medicine and others known to have more job stability.

In the beginning, the program will be offered only for jumbo loans, which start at $417,000. Eventually, the loan program will help with the purchase of properties in the mid-$200,000s, John Burkey, the CEO of BurkeyLoan and Burkey Capital, told realtor.com®.

Borrowers who participate will also need to be able to come up with a 10 percent down payment on the price of the home and the outstanding student debt added up together.

“We want them to have skin in the game,” Burkey says.

There are some risks to the loan. But if a home appreciates enough, the borrower could potentially have his or her student loan debts wiped out when it comes to selling the home. But borrowers will need to weigh whether taking out a second mortgage instead to pay off their student loans would be a safer bet, in case the property doesn’t appreciate as quickly.

Source: “Could a Mortgage for Debt-Ridden Millennials Be Too Good to Be True?” realtor.com® (June 3, 2016)