Buyers Gaining Upper Hand in Luxury Market

Buyers Gaining Upper Hand in Luxury Market

The number of luxury homes for sale is growing, and that is unlocking some deals for potential buyers, The Wall Street Journal reports.

Indeed, inventory of homes priced between $500,000 to $750,000 increased nearly 16 percent in March compared to a year ago, according to data from NAR. What’s more, inventory for real estate priced more than $1 million increased 12.6 percent year-over-year.

As more expensive homes linger on the market, buyers are finding more bargaining power.

For sellers, this may be a tough realization that the power is shifting. Shannon Baird, a broker with Living Room Realty in Portland, Ore., says that a major challenge is changing the mindset of home sellers who are hearing news of quick sales and bidding wars. But that’s not the case in the upper price bracket in many markets.

Stock market volatility has made some wealthy buyers more cautious to jump into a big home purchase at the moment. Also, fewer foreign buyers are on the market as the dollar strengthens, says Lawrence Yun, NAR’s chief economist.

“The stock market has come back up, but we don’t know yet if that means the upper-end home buying market will begin to return,” Yun says.

Source: “Lagging Demand for Luxury Homes May Mean Deals for Buyers,” The Wall Street Journal (June 15, 2016)

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)