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Jan 27

Google Gives Up The Search

by Mary Teresa Fowler
Google Real Estate Search

Ok, Google fans, no need to panic, you can still search for everything though your favorite search engine. You can no longer search for real estate listings, however, on its Maps portal. Everyone can continue to find real estate websites and related content via Google. Maybe that's even how you found this blog!

Discontinued

Actually, interested parties can still find real estate listings on Google Maps - until February 10, 2011. After that date, everyone has to revert to their previous method of searching for property. Yet Google does not expect potential home buyers to be too upset with the loss of this service.

Despite the search engine's tremendous popularity, few people were using the real estate feature. Now the news about low usage might seem odd to many observers. After all, Google holds a dominant market position. Yet in their recent statement, the corporation acknowledged the reason behind the lack of response to real estate listings on Maps.

"We recognise that there might be better, more effective ways to help people find local real estate information than the current feature makes possible. We'll continue to explore this area, but in the meantime, Google offers other options to home-seekers." ~ Google Inc.

Tough Competition

As well, Google's response noted "the proliferation of excellent property search tools on real estate websites." There is much truth in that statement – at least real estate statistics point in that direction. A 2009 National Association of Realtors survey showed that 90% of modern home buyers use the internet in their property search. Buyers sift through photos and take virtual tours of properties in their preferred location and price range. Consumers make short lists for viewing based on their online observations.

Although Google is a force to be reckoned with, this corporation has competition. Yet in this instance, the presence is not Yahoo or another search engine. Google is forced to compete with quality real estate websites.

Indeed, it makes sense that real estate websites can challenge Google in this area. Expert realtors and industry leaders know real estate. There is truth in saying - knowledge is power.

Of course, Google executives are not shocked by this recent development. They knew the score going into the game. As well, officials in the real estate industry expected this result. Former REA chief executive Simon Baker mentioned the probability of failure in recent days as well as at the time of the original announcement about the venture.

"The issue is that it's hard, but not necessarily impossible, but the thing is you need to have a coordinated and thought-out approach. I think they had something partially thought out, but there were elements they didn't understand," says Simon Baker, former REA chief executive.

Revised Feature

Yet Baker thinks that a revised model could meet the needs of the consumer. To a certain extent, this venture was an experiment for Google – complete with experimental apps and programs. In reality, the elements of search with this feature were not as advanced as on popular property sites.

Bad Timing

Timing is a big deal in real estate. With Google's real estate feature, confusion cropped up about the status of the listings. Is this a current listing?

Up-to-the minute data matters in the real estate industry. It matters to the person conducting the search. Finally, the consumer's needs decided the fate of Google's real estate feature.

Friendly Realtors

Of course, do not count Google out of the real estate game. Such a powerful entity does not reach its present position by ignoring facts or not learning from failures. If Google does try again, they will have to convince the real estate industry that listing on their Maps portal will bring in more sales. Many leading realtors did not participate in this initial project. Maybe next time, Google Inc. will find what they were searching for in the real estate listings.

Real Estate Search

Just one question! Recently, Google bought the former Port Authority Building at 111 Eighth Avenue in New York City for $1.9 billion. Did they use their Maps feature to find the listing or did they search at a real estate website?

Google dumps real estate research on Maps

Would You Search For Real Estate Listings On Google Maps?

Image courtesy of distilled.co.uk

Jan 22

Local Real Estate

by Mary Teresa Fowler
Local Real Estate Market

Let's face facts! When someone is thinking about buying a home, they are more interested in the news about local real estate than global real estate trends. They care about the price of the house across town. Interested buyers pay less attention to long-term predictions or the housing market in another state.

The buyer has eyes only for the dream home around the corner. Yet the truth is that the overall picture affects that dream as well as the future reality for the new homeowner. Housing markets differ but they do not exist in isolation.

Local markets are affected by external influences. Therefore, potential home buyers should arm themselves with detailed information about real estate conditions. Of course, a great deal of that data should focus on the state of local real estate.

Various organizations in different states release real estate information organized from data at regional multiple listing services. As well, housing reports are available based on data collected from county governments. Yet current statistics have to be always examined with care. Today's numbers can tell a different story if looked at in comparison to a previous period.

What Is The State Of Local Housing Markets?

California

According to the California Association of Realtors, the housing market in the Golden State recorded a 5.9% rise in sales from November-December 2010. Yet year over year, the number of transactions fell 6.8%. The median price for an existing single-family home in the state was $301,850 - up 1.7% during December - but down 1.6% from the same month in 2009.

California home sales rose in December but dragged slowly earlier in the year – especially after the expiry of the Federal First-Time Homebuyers' Credit. Within certain areas of California such as the Santa Clara Valley, median home prices were flat in 2010. Other parts of the state experienced a drop in house prices. Los Angeles, Orange County, Sacramento, and Santa Cruz County experienced a decline.

The San Francisco Bay Area and High Desert regions had median gains. Regarding sale prices, three Silicon Valley communities received top ten ranking during December 2010. Los Altos made the list with median sale prices at $1.3 million, Cupertino at $904,500, and Los Gatos was at $840,000.

The Best And Worst Cities For Home Values In 2011

Florida

The Florida Realtors Association has just released the final figures for home sales in 2010. Within Florida, local real estate results were a mix of increases and declines. Overall, sales of single-family existing homes and condos were up but prices took a fall.

Yet conditions varied drastically from one location to another. Across the state, home sales increased by five per cent. The biggest gain was in Ft. Walton Beach – a rise of 7 % - while the largest drop was in Panama City – a drop of seven per cent.

In 2010, the median sales price for a Florida home decreased 4% from 2009 figures. House prices in the four major regional markets in Florida stayed near the average. Once again, Panama City was the exception – with a 9% decrease. As you browse through the headlines about local real estate, you will discover that each page can tell a different story.

Florida And The Local Real Estate Mixed Results for the Year

What Is The State Of Real Estate In Your Local Area?

Image courtesy of realestateblackbook.com

 

Jan 19

Mortgage Changes – Helpful or Harmful

by Mary Teresa Fowler

Mortgage Changes

Many potential home owners in Canada are reeling from recent mortgage changes introduced by their federal government. Yet the Canadian administration believes that the modifications will make a positive difference in people's financial health. The regulatory changes are meant to save consumers from themselves in terms of debt load. The government is hoping to discourage potential home owners from taking on debt that they cannot handle in reality. As well, the regulations aim to discourage unwise use of home equity lines of credit.

Helpful Advice

Now many people will argue that consumers should not be prompted in one way or another; they should make their own decisions and live with the consequences. Of course, too little regulation can also cause financial woe. Consider the recent U.S. dilemma. Mortgage approval might have been too easy in some instances; many consumers became homeowners but lacked the financial means to handle the commitment.

Mortgage Changes

(Canada)

According to Canadian Finance Minister Jim Flaherty, effective March 18, 2011, the term of government-backed mortgages has been lowered to 30 years from 35 years. As well, the maximum amount of equity for refinancing will drop to 85% from the previous 90 per cent.

Many hopeful first-time home buyers are not pleased with this recent development. Yet the government insists that they are helping consumers. Eventually, homeowners will be faced with a rise in interest rates. This latest intervention is designed to discourage buyers who will not be up to the challenge.

Massive Debt

According to recent statistics, Canadian household debt has soared to 148% of disposable income. Of course, shopping trips and house sales fuel the economy but there is an 'elephant in the room' with such a high percentage of debt. The Canadian government has chosen not to ignore the massive amount of debt carried by many home owners.

Beginning April 18, the Canadian government will stop insuring newly issued home equity lines of credit (HELOCs). An ever-increasing number of home owners in Canada are using these lines of credit. In fact, HELOCs account for 12% of consumer debt.

Home Equity Lines of Credit

Actually, 50% half of these variable-rate loans are spent on consumer goods including new cars and boats. Only one third of the loans go towards paying down other debt. Therefore, the Canadian Mortgage and Housing Corporation has reconsidered its practice of insuring home equity lines of credit.

Government Regulations

With recent mortgage changes, the Canadian government claims to have considered the best interests of consumers. Of course, distancing themselves from the inevitable future rise in interest rates might be a wise move for this government – especially with a possible election in the near future. As well, in 2006, this government allowed the Canada Mortgage and Housing Corp. to lift its 25-year limit on mortgages and insure up to 40 years.

In 2008, Flaherty rewound the 40-year term back to 35 years. Maybe this latest move is an attempt to distance themselves further from that original rash decision of extending limits to 40 years. The Canadian government, however, has to be prepared for their new regulations to have a few undesirable effects on the economy. Almost one third of Canadian mortgages in 2010 were for 35-year terms.

Mortgage changes sensible

Do You Think The Canadian Government Made Sensible Mortgage Changes?

Image courtesy of dallastexasrealestateblog.com

Jan 17

Cold Weather – Hot Real Estate Market

by Mary Teresa Fowler
Cold Weather, Hot Real Estate Market

Cold weather makes us long for the warmth of hearth and home. The desire for a cozy spot in front of the fireplace works to the advantage of the real estate market. Cold weather and the real estate market seem to be the perfect match.

Longing for Home

For most people, the thought of curling up by the fireplace with a good book and a warm drink is a comforting image. Do we have a positive reaction to that scene just because of the human need for comfort and warmth? Or are we influenced somewhat by advertising campaigns of savvy entrepreneurs and eager realtors promoting that association?

Make no mistake; realtors are aware of the 'longing for home' syndrome that can set in during cold weather. Renters in tiny apartments might be more inclined to wish for that home with a welcoming and warm kitchen. Maybe homeowners would consider upgrading to a house with a better heating system or the golden glow of a fireplace or two. All 'golden' opportunities for a waiting realtor!

Leaving Home

On the other hand, cold weather can be the impetus to get sun worshippers to think about leaving home. Actually, realtors in warm climates bank on that reality. Winter-weary home owners will want to leave the snow banks in search of hotter temperatures. Therefore, a hot real estate market materializes in warmer locations.

With almost all U.S. states now covered in snow, Florida realtors are optimistic about home sales. Joseph Santini, a Florida realtor, explains the logic behind their reasoning.

"What it really comes down to is would you rather shovel two feet of snow or go to the beach to shovel sand? The cold weather is good for us,” says Joseph Santini, Boca Raton broker.

Florida realtors have their sights on homeowners in colder cities such as New York, Massachusetts, and New Jersey. According to Santini, their marketing yields results and freezing home owners reach out for a little warmth.

Florida realtors know, however, that they must market aggressively while temperatures are at their lowest points. The same urgency about a move to sunny climates will not exist if a homeowner's thoughts start shifting to the approaching wonders of spring. Santini details the general marketing approach to attract homeowners in colder climates.

"The trick is to be aggressive in selling while the weather is frigid elsewhere and meteorologists talk about weather events like “snow bombs,” explains Joseph Santini, Florida realtor.

Hot Bargains

Of course, Florida realtors are also willing to sweeten the pot and throw a few bargains into the mix. According to the Florida Association of Realtors, the average sale price of an existing home in Brevard was $105,600 in November, 2010. Consider that the price of the same home was $184,000 in 2007.

Cool Perks

Other factors in Florida also play into the realtors' hands. They can offer homeowners extra perks such as affordable short sale properties and no state income tax.

Nation's cold snap may heat up Florida's real estate market

Are You Ready To Leave The Cold Weather For A Hot Real Estate Market?

Image courtesy of mypbcpropertysource.com

Jan 14

Home Sellers and Vanishing Dollars

by Mary Teresa Fowler
Home Sellers and Vanishing Dollars

Many U.S. home sellers saw dollars vanish in front of their eyes during the past year. Although the vanishing act was really an illusion as the money never existed – except in an over-zealous home seller's mind. Pricing homes outside the realm of reality holds no magic; it just ends with disappointed sellers. All the dollars disappear because home buyers move on to another dream (and price) within their reach.

During the past year, no home sellers (upscale residence or small house) were exempt from price reductions. According to the Washington Post, Former Treasury Secretary Henry Paulson had to reduce the asking price for his Washington, DC home. In 2010, the property sold for almost one-third less than the original asking price. The buyer paid $3.25 billion. During 2006, Paulsen had paid $4.3 million for the property.

Chicago Home Sellers

Between March-December 2010, Chicago home sellers saw a widening divide between their preferred price and the actual amount of the home sale. The Chicago Agent magazine examined monthly data for Cook, DuPage, Kane, Lake, McHenry, and Will counties. The price reductions endured by sellers were calculated at $459 million a month.

Despite the size of the area, Cook County sellers led other counties in their average number of reductions (17,335) per month. As well, this county had the biggest cuts (percentage-wise) – almost 6% ($16,000) every time they lowered asking prices. Du Page County ranked second with 3,583 reductions (4.4%).

Chicago Home Buyers

Of course, Chicago home buyers were pleased with the reduced prices. Yet a few home buyers still paid a fine sum for their dream homes.

Chicago's Most Expensive Houses

            • $7.75 million - Barrington Hills (McHenry County)

            • $5.99 million - Lake Forest (Lake County)

            • $4.1 million - Hinsdale (DuPage County)

            • $2.99 million - St. Charles (Kane County)

Chicago's Most Expensive Condos

11 E. Walton Street

Three Condos

            •$7.4 million

            •$6.88 million

            •$6.28 million

Real estate mantra in 2010: How low can you go?

UK Home Sales

The current state of home sale prices varies from market to market. The average price of a home in England and Wales fell 0.2% to 222,827 pounds ($354,000) from November-December, 2010. Many UK home sellers do not want to be involved in transactions in this market. Many UK home buyers cannot get a mortgage. An Acadametrics report showed the number of transactions dropped by 53,000 (approx) in December 2010 – a 33% decline from the same period in 2009.

U.K. House Prices Decline for Third Month as Lenders Restrict Mortgages

What Do Consumers Predict For Home Prices In 2011?

The Chicago Agent magazine asked its readers for their predictions. At least 54% said that housing prices would remain the same as in the past year. Thirty one per cent of responses expected a decline of home sale prices in the coming months.

No doubt, within Chicago and elsewhere, home buyers are hoping for continued price reductions. Of course, home sellers always wish for higher prices. At least 15% of respondents to the magazine survey expected home sellers in 2011 would be getting better prices.

What Are Your Predictions For Home Prices In 2011?

Image courtesy of viewsandpreviews.com

Jan 12

New York City Penthouses – Life at the Top

by Mary Teresa Fowler
New York City Penthouses

When developer Ian Schrager, co-creator of boutique hotels, and his partners asked the renowned architectural firm, Herzog & de Meuron, to design 40 Bond Street in New York City, they were choosing a top team. This prestigious firm had designed the Tate Modern Museum in London, the main stadium for the Olympic Games in Beijing, as well as other world-class projects. Schrager made one more top decision.

"I'm taking the penthouse," says Schrager.

Luxury Penthouses

No doubt, building owners and co-owners can have the first chance to live in the luxurious penthouses. Most owners of luxury real estate position themselves at the top. Take Donald Trump and Trump Tower – another co-developer who took the opportunity to occupy an opulent penthouse. Do you ever wonder what life is like at the top?

40 Bond Street

The penthouse at 40 Bond Street makes a sizable impression and comes with a big price tag – a reported $18.5 million. That chunk of cash will get you 6,626 square feet of interior space and 3,529 square feet of exterior space. Of course, you could choose a smaller 3-bedroom apartment for $9,950,000. You could even choose a 2-bedroom unit for the more affordable price of $4,850,000.

Interiors

The apartments at 40 Bond Street have all kinds of luxurious features - Austrian smoked oak floors, Italian cabinets with smoked oak and high gloss lacquer, as well as Glacier White Corian walls, and shower floor with embossed graffiti pattern. 40 Bond Street was designed to reflect a version of SoHo commercial loft buildings. The building uses a green glass grid instead of cast iron.

Boomer hotel icon Ian Schrager is far from done

Trump Tower

Donald Trump chose an office and a penthouse in Trump Tower at 721 Fifth Avenue. Angelo Donghia designed this elegant penthouse. Even from the outside, Trump Tower is no ordinary building. Its unique look and unusual layout make an innovative statement.

Interiors

Donald Trump continues to express his individuality with his choice of detailing. From the inlaid Trump Tower seal on the ramp of the entrance to 'T' stanchions and vitrines, it is hard to miss the 'Trump' connection. Developers of luxury properties tend to make their mark with extravagant buildings.

Trump Tower is full of elaborate details. Its 100-foot high atrium features a seven-storey waterfall in front of Breccia Perniche marble in gorgeous colors – peach and orange - pink and rose. Polished granite walls and brass vitrines add an extra glow.

Trump Burns Mortgage At Trump Tower

NYC Penthouses

Life at the top might cost a fair penny but many buyers are willing to pay the price for a luxurious lifestyle. Of course, if you own (or co-own) the building, occupying the penthouse makes it a more probable and personal choice. Yet developers are not the only buyers wanting to move into penthouse apartments.

Despite the recent downturn in the economy, the U.S. luxury real estate market is rebounding in fast order. Upscale markets tend to make a fast recovery from economic woes. Luxury property is seen as a smart investment in the long term.

Luxurious residences and hotels do well in major centers like New York City. Ask Ian Schrager. He just started Schrager Hotels and created two new hotel brands – one luxury model - and one less expensive brand - for those of us who can't afford the penthouse suite.

What Would Be The Best Thing About Living In A Luxury Penthouse?

Image courtesy of bilgenozturk.blogspot.com

 

 

Jan 11

Federal Reserve in Recovery Mode

by Mary Teresa Fowler
Federal Reserve and Housing Market

When it comes to promoting economic recovery, the Federal Reserve is not acting in a 'reserved' manner. The U.S. Federal Reserve Bank has a definite plan and defining purpose.

Plan

The FOMC (committee responsible for setting monetary policy) plans to purchase $600 billion in Treasury securities.

Purpose

Encourage economic growth and keep long-term interest rates at a low level.

Reason

The Federal Reserve wants to speed up the process of economic recovery. No doubt, there have been sure signs of improvement. During the third quarter of 2010, consumer spending rose at an annual rate of 2-1/2%.

More businesses also invested in new software and equipment towards year-end. Of course, the statistics have to be looked at in a realistic light. Spending and investment is 'up' compared to the activity in recent 'down' periods.

Yet small gains can be indication of big things in the future. Issues like high unemployment, however, do not disappear from the radar overnight. It could take four or five years for employment rates to return to a normal scale.

Only 103,000 U.S. jobs were created in December 2010 – less than the 150,000 expected for that period. With its pending bond purchase by the end of the second quarter in 2011, the Federal Reserve hopes to encourage economic growth. In fact, a drop in the jobless rate is expected – almost 9% by the end of 2011 – but it will stay above 8% throughout 2012.

Housing Market

On January 7, 2011, Chairman Ben S. Bernanke gave his report (The Economic Outlook and Monetary and Fiscal Policy) before the Committee on the Budget in the U.S. Senate. The overall message in the report was that the economy would be somewhat stronger in 2011. Yet Bernanke referred to challenges in the housing market.

"However, the housing sector remains depressed, as the overhang of vacant houses continues to weigh heavily on both home prices and construction, and nonresidential construction is also quite weak," says Chairman Ben S. Bernanke before the Committee on the Budget, U.S. Senate, Washington, D.C.

The Federal Reserve has reason to worry about the state of the housing market. Three main factors can cause an economic recovery to lose steam. Damage to the credit market and regulatory and tax uncertainty problems can pose danger to an economy on the rebound. As well, problems in the housing market are stumbling blocks in a recovering economy.

Cautious Optimism

Yet there has been an increase in pending and new home sales. The rise amounted to 3.5% in November. These figures were influenced by a flurry of sales (18.2%) in the West. The National Association of Realtors chief economist, Lawrence Yun, explained how 2,000,000 jobs and just a moderate increase in mortgage rates would influence home sales.

"If we add 2 million jobs as expected in 2011, and mortgage rates rise only moderately, we should see existing-home sales rise to a higher, sustainable volume," says Lawrence Yun, National Association of Realtors chief economist.

If lenders returned to safe underwriting standards for credit-worthy buyers, there would be a greater rise in home sales.

Real Estate Outlook: Federal Reserve Promoting Recovery

Do You Agree With The Federal Reserve Plan to Buy $600 Billion In Bonds?

Image courtesy of realtorestateagent.com

Jan 8

Rounding Up the Best Real Estate Advice

by Mary Teresa Fowler
Real Estate Advice for 2011

The beginning of the New Year revolves around the 'annual' resolutions – at least according to the media. Whether people choose to follow a set plan or just play it by air, you can bet that they will be bombarded by all kinds of advice - on television, in print, and at online sites. The professional (or other) advice will cover every topic from routine to resorts to real estate.

You have to separate the great advice from the inaccurate, silly, or even foolhardy suggestions. Real estate is one area where it pays to resolve to learn more during the coming year. Even if you are not buying or selling now, chances are that you will at some point. As well, renters need to know the score. It pays to get a feel for the topic and arm yourself with knowledge.

As you delve through the mounds of real estate advice, you can find 'real' golden nuggets of information from reputable sources. Often the best pieces of advice are simple suggestions that make the most sense. Yet often, consumers overlook the simple solution because they perceive real estate as a complicated matter. Truthfully, real estate is a complex issue, but knowing the basics makes it less of a challenge.

Rounding Up the Best Real Estate Advice

"Get your home into selling shape." ~ Ilyce Glink, Real Estate Matters, Chicago Tribune

Ilyce Glink, author of Real Estate Matters, emphasizes preparing to sell your home. Part of her wise advice – get rid of items - unless you need or use them. Interior and exterior cleaning, repairs, and touch-ups are also suggestions as well as the possibility of hiring a stager.

Read More...

"Make a sensible valuation." ~ Tanya Ashreena, Financial Times

This sensible statement was written for London readers but it is relevant on a global level. Sellers have to be certain that their asking prices reflect the present market – not yesterday's value or tomorrow's prediction. The Financial Times focuses on the reality of what will happen if you ignore this piece of advice. Failure to do so will lower your chances of selling a home.

"Always get a home inspection." ~ US News

Now this bit of advice might seem boring if you've just found the perfect house – or so you think at the time. Potential buyers need to complete a 'checklist' before they decide on that dream home. The state of the foundation and the electrical system as well as water damage – all these matters (and more) have to be explored before you buy a home. Keep in mind that potential buyers can keep an eye out for types of damage and disrepair but they still need the professional help of a home inspector.

Read more...

Federal Reserve issues tips for mortgage loan shopping

Money Saving Tips for Your Apartment

What Is The Best Real Estate Advice For First-Time Buyers?

Image courtesy of occarealty.com

Jan 5

Home Buying Incentives:Good Deal-Bad Plan

by Mary Teresa Fowler
Home Buying Incentives

Tempting incentives for home buyers – especially first-timers – seem to be the 'in' thing. At one point or another, governments, builders, and property groups will offer enticing incentives to encourage home purchases. This practice is widespread in a troubled or recovering economy. Yet these offers are around to a certain degree in every real estate market.

Government initiatives have been shown to benefit home buyers. These programs assist buyers who meet the qualifications. The plans might offer a credit (as the expired Federal First-Time Homebuyers' Credit) or access to RRSP savings (Canada's 2009 Expansion of the Home Buyers' Plan).

Yet numerous builders and property groups also make offers to home buyers. Should potential buyers take the bait or resist the temptation? What types of incentives are being put on the table?

Huge Incentives

Australia

Home buyers can find all kinds of offers out there in the marketplace. Sometimes builders and a property group combine to offer huge incentives. The Satterley Property Group and 17 builders in Australia are making a concerted effort to provide affordable housing in specific estates.

With their campaign named "The Lot," offers of cash rebates, bonuses, and incentives can add up to $30,000 savings per home. Satterley provides cash rebates up to $10,000 plus landscaping, fencing, and other attractions. Builders’ bonuses include free pools, kitchen and bathroom upgrades, as well as home entertainment packages, and reverse cycle air-conditioning. Nigel Satterley, spokesman for The Lot, explained the reasoning behind the offers.

“People have been wary of interest rates and in retail, as well as in land and housing, buyers have become cautious. And research shows that a large percentage of young people are pessimistic about 2011," says Nigel Satterly, spokesman for Satterly Property Group.

$30,000 incentives to first-home buyers

US

Of course, Australia builders are not the only ones adding on incentives. U.S. home buyers can also receive offers of new pools with a home purchase. In fact, home buyers might be enticed with free vacations, free entertainment centers, or even free cars (leases). Check out a current incentive in Fort Myers, Florida.

The Background of Builders' Incentives

Before buyers accept builders' incentives, they should inform themselves about the practice. The most important point to remember is that builders are in business to make a profit. An incentive should make sense for a home buyer in the long term. Usually, offers come in with a catch.

What could the free vacation cost the home buyer? Is a quick purchase required to claim the vacation? Does the buyer have to make a substantial non-refundable "earnest money deposit"? This deposit is not to be confused with a down payment. When buyers execute a purchase contract, the agreement specifies an amount to secure the contract or "show good faith."

The free vacation or the free product sounds great but the builder will be getting it at a discount. It might make more sense for buyers to shop later for affordable holidays or special sales on products. When buyers factor in required conditions, the 'free' stuff might not seem like such a good deal.

Good Deal or Bad Plan

Indeed, accepting the incentives might be a bad plan. Home buyers do not have to stay away from all builders offering incentives. Yet buyers must understand the builders' goal.

The home purchase – a long-term commitment – must be the buyer's priority. The thrill of a tropical vacation cannot compare to finding the perfect home at the best price. Skip the incentives - if it means that you sacrifice your dream.

Incentives for Home Buyers

Would You Accept Home Buying Incentives?

Image courtesy of homebuyingabout.com

Jan 3

Foreign Investors Favor US

by Mary Teresa Fowler

Foreign real estate investment

According to the results of the 19th Annual Survey released by the Association of Foreign Investment in Real Estate (AFIRE), international buyers favor US property. As foreign investors notice a recovering economy, they are expressing a renewed interest in U.S. real estate. In the latter part of 2010, this real estate survey was conducted among association members. The James A. Graaskamp Center for Real Estate at the Wisconsin School of Business handled the project.

19th AFIRE Survey

Industry leaders are bound to pay close attention to this latest survey by AFIRE with its 180 members representing 21 countries. The survey received responses from members holding more than $627 billion in global real estate and $265 billion in U.S. property. More than 60% of responses named the US as the best potential for capital appreciation. At least 72% of foreign buyers revealed that they plan to increase their US investments in 2011 compared to 2010 transactions.

AFIRE's 19th Annual Survey holds significant weight. The numbers reflect the opinions and plans of an influential group holding a considerable stake in global and regional assets. The 2010 results are far more encouraging than previous dismal numbers.

In 2006, only 26% of international investors saw potential in US property. Now more foreign buyers recognize the chance for capital appreciation in this country. Actually, the 2010 survey showed the strongest faith in this nation's real estate in the past decade.

Leading U.S. Cities

Two US cities – New York City and Washington – outshone other global cities in this recent AFIRE survey. In fact, New York City replaced London as the number one choice for foreign investors in real estate during 2011. Since 2001, London has held either first or second place. With the latest AFIRE results, London dropped to third place – behind the Big Apple and Washington – just before Paris in fourth position. Ian Hawksworth, AFIRE chairman, is not surprised by London's drop in rank.

"...In the last downturn, London was the first market to recover, and whilst investment in the UK Capital is still very active, it is not surprising that London has dropped to third place as investors expand their search to higher yielding markets such as U.S. gateway cities that offer attractive risk adjusted returns," says Ian Hawksworth, chairman of Foreign Investment in Real Estate.

NYC tops London for real estate investors

The popularity of NYC and Washington real estate is not a big surprise. Check out our 2010 articles – Inside New York Hotels – and - Moving To Washington. NYC, Washington, and Boston came in as the top three U.S. cities for foreign investment. New York City and Washington received four times more votes than third-place Boston. Yet in 2010, Boston has moved up from its fourth place position in the previous year. Take a look back at our 2010 analysis of Boston Real Estate – Better & Brighter Market.

U.S. Cities Lead Way for Global Foreign Real Estate Investment

Surprising statistics came to light about preferred U.S. property types for investment in 2011. Multi-family homes, apartments, retail, and hotels are the top four favorites among foreign investors. Offices ranked lower and industrial spaces showed up as the least favorite. Usually, offices are the top pick of institutional investors.

The drop in popularity of office space might be tied to high unemployment rates. Although there is growth in employment numbers, buyers could be feeling somewhat uncertain about investing in offices and industrial property. Yet foreign investors have overall confidence in the U.S. real estate market. Investors interested in U.S. cities quadruple the number of foreign buyers wanting to invest in the UK.

Are You Feeling Confident About The U.S. Real Estate Market?

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