Quantcast
Channel: Real Estate
Viewing all 4385 articles
Browse latest View live

Here's how much extra buyers are willing to pay to have 'penthouse' in their address

0
0

We all know that New York City's real estate prices are staggering. The average rent for a studio apartment in Manhattan recently hit a record high — and the city's most expensive penthouse recently sold for a record-breaking $100 million.  

Despite sky-high prices, there are still people willing to pay top dollar for that "PH" elevator button. 

But how much more are they actually paying? 

CityRealty analyzed the prices of high-rise Manhattan condominium buildings and created this graphic that looks at the average price differences between penthouses and apartments on lower floors. Turns out, the average buyer is paying 75% more for the penthouse than the apartment directly below.

Check out the full graphic below.  

CityRealty Penthouses Infographic

SEE ALSO: Inside One57, where New York's most expensive penthouse just sold for a record-breaking $100 Million

DON'T FORGET: Follow Business Insider's Lifestyle page on Facebook!

Join the conversation about this story »

NOW WATCH: Here's what New York City looked like in 1905


Craigslist founder's wife had a hilarious response to these 'break up with Craig' ads

0
0

Rental marketplace startup Zumper recently launched an ad campaign urging renters to "break up with Craig." The site's goal is to make searching for an apartment easier than it is with Craigslist. 

The slogan has appeared on billboards all over the Bay Area.

Zumper craigslistzumper  craigslistBut the campaign hasn't sat well with everyone — especially those who happen to be romantically involved with a man named Craig. 

Eileen Newmark, wife of Craigslist founder Craig Newmark, shared some choice words on Zumper's blog post announcing the campaign.zumper craigslist

Eileen and Craig Newmark have been married since December of 2012. 

SEE ALSO: San Francisco real estate has gotten so crazy that this startup founder was offered stock options for his house

Join the conversation about this story »

NOW WATCH: 5 subliminal sex messages hidden in ads for wholesome brands

The Manhattan apartment with a shower in the kitchen isn't as crazy as you think

0
0

New Yorkers have long ago made peace with quirky apartment features.

But for people not as familiar with New York City real estate, this shower in the kitchen might look pretty bizarre.

shower in the kitchenA recent Padmapper listing, spotted by Gothamist, shows a one bedroom apartment on the Lower East Side with a shower in the kitchen. It’s renting for $1,795 a month, though the listing agent Lorence Dippolito writes that the price is negotiable. 

People on Twitter are understandably confused by the set up.

Though not ideal by modern standards, these apartments with showers or even tubs in the kitchen are not as uncommon as one might expect. 

When New York tenement buildings were first built in the 1800s, they did not have running water. After the Tenement House Act of 1901 passed, which required all residences to have running water, apartments were renovated with pipes for kitchen sinks.

Almost 30 years later when the Multiple Dwelling Law of 1929 was enacted, it said that “Every wash basin, bath, shower, sink and laundry tub shall be provided with an adequate supply of hot and cold water.” Again landlords were required to update their buildings, but as The New York Times writer Alice Feiring pointed out in a 2004 article, cheap landlords looking to save money realized they would only have to install one set of water pipes instead of two if they kept the sinks and tubs in the same room. 

Finally by 1969, Local Law 77 passed which allowed bathtubs to be built in an enclosed space provided that ventilation was adequate. Landlords and buildings renovated apartments to meet this new “modern” standard (plus have a reason to jack up rent costs) with many buildings getting rid of kitchen bathtubs and showers altogether.

Of course, a few of these oddities remain as a reminder of what living in the city was once like. And though not everyone enjoys it, some New Yorkers find the experience quite intimate and cozy. As NYTimes writer Feiring wrote: 

For wine tastings or dinner parties, it's indispensable. My dining table is an arm's reach away, and the tub provides ample space for overflow of dishes or for next course storage; no conventional breakfront could be as functional or multifunctional. At the risk of sounding clichéd, there's no better ice bucket for a methuselah of Champagne.

Only in New York.

SEE ALSO: Tiny apartments are technically illegal in New York City, but thousands of them exist

Join the conversation about this story »

NOW WATCH: Watch these giant container ships collide near the Suez Canal

What it’s really like to live in a New York City apartment with a shower in the kitchen

0
0

Alex Kuzoian shower in kitchen

On Monday, the listing for a $1,795 one-bedroom in Manhattan’s Lower East Side with a shower in the kitchen went viral.

And though not an ideal set up, these apartments with showers or bathtubs in the kitchen are not as uncommon as one might expect.

In fact, Business Insider associate video producer Alex Kuzoian currently lives in a similar set up with two other roommates.

“I never really had a problem with it,” he said of the apartment. “The bizarre-ness of it kind of just fades after awhile.”

Kuzoian has been living in his Hell’s Kitchen home for the past four months where he’s paying significantly less than $1,000 a month — extremely affordable for the Midtown Manhattan location where the average rent for a one bedroom is $3,374, according to Reator.com.

Even though the shower is in the common area, Kuzoian says that the lack of privacy isn’t too much of an issue since all of his roommates are on different schedules.

“The most annoying part is just not having a real bathroom,” he said. “We have one sink (the one in the kitchen) and then just a tiny room with a toilet. It would be nice not to have to brush my teeth, shave, and do the dishes in the same sink.”

It’s the act of shaving that really bothers him.

“I don't like to do it over the kitchen sink — plus theres no mirror there anyway — so I stand in front of the mirror that’s attached to my bedroom door and hold a garbage can under my chin,” he said. “That’s why I only shave like once a week.”

But Kuzoian said because the apartment is so affordable, he really doesn’t mind the set up. Plus, because he knew his roommates before he moved in, everyone is already comfortable with one another. 

“We don’t have too many guests, mainly because the place is so small — there’s not a lot of room for them to stay,” he said. “It’s usually just our girlfriends or boyfriends.”

He added, “they’re already kind of used to it.”

As for any plus sides of living in an apartment where your shower is in your kitchen, Kuzoian said it’s definitely a “great conversation piece” and that someday he hoped he would be able to look back and get a great story out of his current living situation.

“Being young makes it easier,” he said. “If I were older there's no way I’d tolerate it. But for now, it's just part of the cliche 'NYC experience,’ I guess.”

SEE ALSO: The Manhattan apartment with a shower in the kitchen isn't as crazy as you think

Join the conversation about this story »

NOW WATCH: This NYC bank-turned-mansion bought by a photographer for $102,000 just sold for $55 million

I've gone from being homeless to making deals worth millions, and I think there's only one secret to creating wealth in real estate

0
0

office building reflectionWhen the recession hit, so did reality: I knew a lot about my occupation (physical therapist), but very little about how to run a business.

The income dried up just as quickly as my debt grew. I started to cut out everything I could and even sold my car, books and anything else I could think of just to pay my tax bill. Eventually there was nothing left to sell …

And then someone invested in me.

To close my business would have cost around $20,000 in personal guarantees, so I literally couldn't afford for it to go under.

My family had nothing and lived hundreds of miles away, so asking them for help or even a sofa to sleep on was pointless. Ashamed and embarrassed, I moved into my office with one bag and a blow up bed that I then called home.

I always had an interest in real estate and knew that if I could just figure out what all of those investors seemed to know I could be successful — no matter what position I was starting from!

And then, someone invested in me.

In that first year, I managed to raise $1 million to buy $2 million worth of real estate. Within two years, my annual rent roll was $460,000 from 100 tenants, and three years later, I'm in the middle of two $5 million developments and am on target to double the portfolio.

There is only one secret to creating wealth in real estate, and that is this:

Use other people's money!

Regardless of how much you have, you will run out at some point, so the sooner you master joint ventures, the quicker your business will grow.

Here's how to do exactly that.

Build your network before you need it.

Have you ever bought something from a salesman that you had absolutely no need for? I recently popped into an electrical store and walked out with a whole bunch of other stuff I didn't even need! Why? Because I knew, liked and trusted the salesman. He knew his products, he was able to match me to something I liked, and eventually, I wanted it. Ultimately, I bought into him.

It's no different for you. If you're likeable, knowledgeable and can make an appropriate, ethical, and profitable investment opportunity people will buy into you. By building your network before you need it you have the opportunity to build genuine relationships with people interested in you and what you do.

Specialize in one strategy.

One of real estate investing's greatest aspects can also be one of it's biggest downfalls, as well. There are so many individual strategies and ways to make cash it's incredible, but with every strategy there are things to learn and inevitably mistakes to make. If you keep switching not only do you never become a true expert, you also don't allow yourself to become the 'go to' person for anything.

When I first started investing I made a name buying cheaper houses. Even though I eventually moved away from that to much bigger developments, whenever anyone mentioned a lower value property my name always came up in conversation. When potential investors are looking for where to put their money, being the person whose name constantly comes up is so powerful.

Make money … and a difference.

The reality is no matter how great your offering is, there are 100 places for investors to put their money. By being ethical in everything you do you will automatically stand out above the crowd. It creates an awesome selling point if you can show investors that not only will they be doing great business by working with you, they get to make a difference, as well.

While you're not looking for the next Mother Theresa, you are looking to work with a decent, honest person whom you can trust and work with for the long-term.

Give first, ask second.

When looking for a JV partner it's easy to go out and look for everyone that has what you need. The really powerful way to find JV partners and demonstrate your professionalism and knowledge is to flip that over and go looking for people you can add value to.

Join conversations aiming to help, support and encourage others. Join groups and forums where you can add value because you never know who is listening, and you're automatically on high ground when investors come to you rather than the other way around.

Sell through … not to.

Asking for money can be uncomfortable, especially in the your early days. When you're nervous, try this: In conversation with a potential investor ask them what brought them to the event and what they're hoping to gain from it. When they reciprocate the question, reply with "I have a fantastic business proposal and the experience to deliver the project. I'm looking for a JV partner who might want to invest. If you know anyone who would like 'X' percent return on their money over a year, please feel free to connect us."

How awesome is that? You have completely taken the heat out of the situation while still fully explaining what you have to offer. If they are interested (which they often are), they'll let you know.

When I started investing I had no money, no confidence and no home. Just a few short years later, we have a multi-million dollar portfolio and successful businesses by following these simple steps. Wherever you are now in your life, just know this: It's absolutely 100% possible for you, as well.

Kemi_EganKemi Egan is co-founder of Freedom Academies, Freedom Investments & Freedom Homes. She is a real estate investor, mentor, wealth strategist, and author of the #1 bestseller "The Power of Real Estate Investing."

SEE ALSO: There are 2 ways for beginners to start investing in real estate

Join the conversation about this story »

NOW WATCH: This is what happens to your brain and body when you check your phone before bed

The strange story of former NY governor David Paterson's fallout with a real estate tech startup

0
0

governor david paterson

For an ambitious real estate tech startup, bringing on a well-connected former governor as an adviser sounds like a match made in heaven. But in the case of iFunding and former New York Gov. David Paterson, the marriage quickly turned sour.

A year after the real estate crowdfunding startup announced New York’s former governor had joined its board, the two sides are no longer on speaking terms. Instead, they have exchanged a series of bizarre accusations, involving questionable EB-5 deals, an alleged travel ban and supposedly dire financial straits. Taken together, they paint a picture of all that can go wrong when a fledgling startup and a career politician partner team up. 

This much is clear: In March 2014, Paterson signed an agreement to become a consultant for iFunding. A copy of the contract reviewed by The Real Deal shows that Paterson was to be paid $5,000 per month in exchange for at least 10 hours of work per week. That comes to a maximum of $125 per hour, less than what a junior attorney at a New York law firm typically bills.

The agreement, which was reported in TRD at the time, was a coup for the startup and seemed poised to turn iFunding’s fortunes around.

Founded in 2012 by Sohin Shah and William Skelley, the New York-based firm had been an early leader in the nascent real estate crowdfunding space. As late as last March, the firm claimed to be the most popular platform among U.S. investors, with more than $20 million in total investment volume raised domestically. It had announced plans to fund a $250 million condominium tower at 90-94 Fulton Street. To the casual observer, it seemed like iFunding was poised to become a headline act in the crowdfunding space.

But, in fact, it had already begun losing momentum.  The Fulton Street project quickly unraveled. Rival crowdfunding startups Fundrise, Realty Mogul and Patch of Land proved more adept at building ties to influential real estate executives and investors, and started clawing ahead.

Wooing Paterson, with his extensive connections in politics and business, was iFunding’s shot at distinguishing itself. The former governor would build connections to lawmakers and work on affordable housing initiatives. Skelley and Shah also wanted to tap into Paterson’s experience in raising Chinese capital for New York construction projects, and saw him as their rainmaker in China. That was the plan, at least.

Instead, the partnership quickly unraveled. And this is where the accounts begin to differ.

According to iFunding’s initial version of events, the entrepreneurs planned to send Paterson to a conference in China, but then discovered that he couldn’t enter the country because of ongoing legal troubles. Skelley and Shah instantly decided to terminate the agreement, they claim, and told Paterson’s secretary as much. They also claim that they were unable to reach Paterson because he was ignoring their calls. “Our legal team immediately said this isn’t someone we want to work with,” Skelley recalled in a phone conversation with TRD.

iFunding’s allegations seem to fall in line with the former governor’s image as someone who regularly flirts with scandal. Paterson assumed the governorship in March 2008 following Eliot Spitzer’s outing as “Client 9″ in a prostitution scandal and held the post until Andrew Cuomo’s election in late 2010. He became New York’s first African-American and legally blind governor. But his brief term was mired by allegations of witness tampering and improper use of his office to secure perks such as World Series tickets.

After Paterson left Albany to become a professor at Touro College, scandal followed him to New York City. In April 2014, just before he joined iFunding, Paterson settled a lawsuit by a former lover, who claimed he had fired her as his assistant after their relationship soured.

The alleged legal troubles that Skelley referred to concern Paterson’s work in China. In 2011, Paterson began traveling there to court investors for the New York Immigration Fund, a firm that specializes in procuring foreign investors for New York real estate projects through the EB-5 program. One of the projects he raised capital for was for a new Times Square Hotel at 400 West 42nd Street.

Paterson acknowledged that in 2012, the Chinese state news outlet CCTV reported that some of the fund’s Chinese investors complained about delays in the hotel’s construction (work on the project has since begun). TRD could not immediately confirm that such a news report exists. At any rate, Paterson claims that the complaints concerned the immigration fund, not his work for it. Moreover, he claims that he traveled to China several times in 2013 and 2014 and never encountered any difficulties.

Instead, Paterson offers a markedly different account of his split with iFunding. He said he was only paid for his first month at the firm and by the time of the split, in July 2014, was owed two months in pay. When Skelley and Shah told him he couldn’t travel to China, he claims to have contacted the Chinese consulate and received confirmation that he could, in fact, visit the country.

“They probably just didn’t have the money to pay me and came up with this bogus story,” Paterson told TRD on Monday. “Believe me, if you did anything (illegal) in China, you would know.”

“Believe me, if you did anything (illegal) in China, you would know.”

Paterson rubbished Skelley’s account and claimed he repeatedly tried to contact iFunding’s founders, only to have his calls ignored. He described the firm’s conduct as “unprofessional” and “dishonest.”

“When they said they called me and I never returned their calls: why would I not respond if they owe me money?” he added.

When TRD asked Skelley if he had any evidence that Paterson was at any point not allowed to enter China, Skelley answered by email: “No I do not have any evidence. Obviously I was mistaken. I apologize for misspeaking.”

Asked if the contract with Paterson was ever officially terminated following their falling out in July 2014, he responded: “It was a long time ago and I don’t really remember.”

Join the conversation about this story »

NOW WATCH: This is what happens to your brain and body when you check your phone before bed

Snapchat's stealthy real estate moves are worrying small business owners in Venice

0
0

snapchat venice

Two years after turning down a $3 billion offer from Facebook, Snapchat continues to grow at breakneck speed. Its business has been valued at as much as $19 billion, and it's raised a total of $848 million in seven funding rounds. Its 24-year-old cofounder and CEO, Evan Spiegel, is reportedly worth $1.5 billion.

But in an interesting contrast to the majority of today's billion-dollar tech companies, Snapchat makes its home not in the office parks of Silicon Valley, but in the Southern California beach town of Venice. 

Snapchat has some 200 employees at its Venice headquarters. As of this writing, there are more than 40 job openings in the company's Venice office in addition to several in New York.

A company expanding that rapidly needs lots of office space, in addition to infrastructure like parking and housing for employees. 

But Venice, a beachfront community of Los Angeles that's long been a haven for artistic types, is known for its pricey bungalows, dearth of parking, and often crippling traffic.

"The market is escalating. There's not a lot of inventory," Tami Pardee, owner and principal broker at Venice-based Pardee Properties, said to Business Insider. "In terms of office space, there's not room for everyone."

Snapchat's first official office was a bright blue beach house on the Venice boardwalk. A yellow sign with a depiction of Ghostface Chillah, Snapchat's ghost logo, marked the spot. 

But by the end of 2013, they had outgrown the beach house and moved to new offices on nearby Market Street. They leased 6,000 square feet of space at 63 Market Street.

snapchat veniceThe company quickly outgrew that space, however, and a few months later they signed for an additional 3,940 square feet in the building next door.

silicon beach

 They also leased space at 64 Market Street across the street.

snapchat venice

In January, according to the Los Angeles Times, the company also leased 25,000 square feet of space at Thornton Lofts, about a half-mile away from Market Street on Ocean Front Walk. 

snapchat veniceIt's Snapchat's latest real estate deal, however, that has some local business owners questioning the company's decisions. 

Snapchat is rumored to be in talks to take over more than 40,000 square feet in a 55-unit office complex at the corner of Abbot Kinney and Venice Boulevards, one of the busiest intersections in the neighborhood.

More than 30 smaller businesses already make their home there — including mobile advertising startup Briabe Mobile, drone and robotics company Ctrl.Me, design agency Clever Creative, and several law and insurance offices. 

Most tenants at the complex are on a month-to-month lease.

According to several business owners in that complex, tenants received a note from their landlord that a deal was going to come down soon, and that it would be in their best interest to look for new space. They would know for sure by June 1 and have until the end of the month to move out.

Tenants haven't gotten any updates since receiving the note several months ago, though the Los Angeles Times recently reported that the deal is as good as done. 

"None of us has been given a lot of information," Briabe Mobile CEO James Briggs, whose company leases about 2,600 square feet in the complex, told Business Insider. "Everyone is under the assumption that Snapchat is going to take the whole thing."

snapchat venice

Several of the business owners we spoke to said they will have to leave Venice if the deal goes through. According to data from real estate firm CBRE published by the Los Angeles Times, office lease prices in Venice have doubled since 2011, reaching an average of $5.82 per square feet a month. According to the same data, the vacancy rate has halved to 10%.

"We’re looking on the west side of L.A., maybe Marina del Rey. It’s going to be a struggle," Briggs said. "There are not a lot of business complexes like this in Venice, and we’re completely priced out of what’s left. Venice is out of the question now." 

In an effort to avoid the uncertainty completely, Helena Ruffin moved her health insurance company out of the Venice complex in February.

"I really loved the community, but I couldn’t risk it," she told Business Insider. "We were in the process of enrolling a hundred new clients, and I couldn’t risk having to move offices and move my staff and interrupting my business seriously."

Ruffin purchased a two-story townhouse in Playa Vista, just a few miles east of Venice. She lives on the second floor and runs the Ruffin Group Insurance on the first, paying roughly the same amount she paid at the Venice office complex. 

"I wanted a little more control over my destiny," she told Business Insider. "I didn’t want to be subject to the whims of a landlord."

Playa Vista has been a place of interest for many larger tech companies looking to increase their footprint in Los Angeles. In December, Google paid $120 million for 12 acres in the city, in addition to its Venice presence. Yahoo plans to move its Los Angeles operation there. Facebook, Microsoft, YouTube, Konami, and Belkin also have large offices there, and there's plenty of room for construction.  

youtube spaces la

Snapchat, however, has opted to stay in Venice. 

"The expectation was that they would build their own campus in Culver City or Playa Vista, but they consider Venice part of their culture," Levi Brooks, cofounder and CEO of digital creative consultant firm Use All Five, said to Business Insider. Use All Five's office is located in the complex at Venice and Abbot Kinney.

"I understand capitalism and how it works. I’m not mad at Snapchat," Brooks said. "It would've been nice if they had helped us find a new space. Some kind of communication would have gone a long way."

According to Curbed LA, an art studio, youth shelter, and gallery are among the Market Street businesses that have already been pushed out by Snapchat in the past two years.

Some local business owners are concerned that Snapchat's rapid expansion could contribute to a deterioration of Venice's quirky culture. Established in the early 20th century as a planned community, Venice has at different points in its history served as an amusement park, hippie haven, and the birthplace of modern skating culture. 

With lots of hip restaurants and boutiques, it still maintains an edge today; in 2012, GQ named Abbot Kinney"the coolest block in America." 

But Snapchat isn't the only company to push small Venice businesses out of their office space. Locals protested GQ's designation, pointing to rising rents and gentrification as big national brands like Lucky Brand, LF, and Gant moved onto Abbot Kinney. 

silicon beach

"Venice has always been a place that prides itself on diversity," Brooks said. "When you’re buying up all of this space, you lose the diversity of small business."

Of course, not everyone sees Snapchat as having a negative influence on the community. Pardee, who sold a $2.1 million home to Snapchat cofounder Bobby Murphy in 2013, has helped several other employees find homes in the area. 

"They’ve been respectful and very educated about the market as they research so much online," she told Business Insider. "They are excited to be a part of our community."

Plus, she says, having more employees in the area means more people frequenting local boutiques, restaurants, and coffee shops.

"Small businesses and big businesses tend to feed off each other, especially in terms of creativity," Pardee said. "It's a delicate mix, but I don't think Snapchat has been a vulture in Venice. They've been really good tenants."

Jim Murez, manager of the Venice Farmers Market, told the Los Angeles Times that growing tech companies are just a sign of a changing economy. 

"Is having a Snapchat better or worse than a mom-and-pop production company?" Murez said to the LA Times. "It's neither. It's just different."

Snapchat declined to comment on its real estate negotiations. A spokesperson told Business Insider, "We love being in Venice and we strive to be great neighbors within the community where we live and work."

SEE ALSO: See why more startups than ever are setting up shop on the beach in Los Angeles

Join the conversation about this story »

NOW WATCH: Every phone needs to have this waterproof technology

The 15 most expensive streets in America

0
0

Coopers Neck Ln 1 bb4cb9

No helicopters, no mega yachts. At first glance, Indian Creek is just a small private island in Biscayne Bay. But South Florida real estate agent Cory Waldman begs to differ.

“It’s a city within a city,” the Coldwell Banker associate said. “They have their own police force. The lot sizes are enormous. It’s top-notch.”

Across the country, luxury real estate agent Kofi Natei Nartey has a similar reaction — but not about Indian Creek.

“Beverly Park is the most exclusive gated community in Los Angeles,” The Agency‘s Sports & Entertainment Division director said. “With guard-gated access only, it attracts some of the highest net worth individuals and celebrities in the world.”

They’re not exaggerating. New data shows Indian Creek Island Road and Beverly Park Circle are the most expensive streets to live on in the US.

Indian Creek, known locally as Billionaire Bunker, is home to four of the richest people in America, the Miami Herald reports. Beverly Park Circle is home to Denzel Washington and Eddie Murphy, among other big names.

So what does it cost to live there? Based on Zillow’s analysis of streets with at least 10 homes, here’s a look at the median home value for the top 15:Screen Shot 2015 04 16 at 12.03.30 PM

Names vs. numbers

Nelsons Walk 2 43169b e1428703839339

Interestingly, all of the priciest streets are names, rather than numbers. In “Zillow Talk: The New Rules of Real Estate,” co-authors Spencer Rascoff and Stan Humphries explore what’s in a street name. By digging into the data, they’ve found a named-street premium exists across the country.

Among the 20 largest metro areas, “we only found three places in the entire nation where named streets don’t have the advantage,” they write. “In Atlanta and New York, named and numbered streets come out roughly equal. Denver is the solitary example of a place where numbered streets are more valuable — probably because homes in its premier neighborhood of Country Club are located on numbered streets.”

What gives named streets a higher price tag? Rascoff and Humphries say in general, the most valuable street names describe something about a home’s location. Indian Creek Island Road is a great example because “island” indicates the homes are near water, and therefore probably worth more than nonwaterfront homes in the area.

Suffixes matter

Arvida Pkwy 2 5eefd0

It’s easy to gloss over the letters tacked on at the end of a street name. But as shown above, living on Beverly Park Terrace versus Beverly Park Circle could cost you hundreds of thousands of dollars.

In their analysis, Rascoff and Humphries discovered the most common suffixes — street, boulevard, and avenue — tend to be the least valuable. Way and place, meanwhile, make up only 4 percent of street name suffixes nationwide, and their homes’ are typically worth more.

These findings shed light on the myriad factors at play in local real-estate markets. Of course, at the end of the day, lot comes down to perception.

“There’s nothing else like [Indian Creek] in South Florida,” Waldman said. “It’s the most prestigious address.”

SEE ALSO: The 40 best new real estate developments

DON'T FORGET: Follow Business Insider's Lifestyle page on Facebook!

Join the conversation about this story »

NOW WATCH: Take a fly-over tour of the $110 million Hamptons mansion that's at the center of a huge lawsuit


The 30 most expensive homes in sports

The 5 most extraordinary homes for sale around the world

0
0

AD editors select extraordinary homes for sale around the world. 

SAN CLEMENTE, CALIFORNIA

item0.rendition.slideshowHorizontal.may estates for sale 01Pedigree: Spanish Revival grandeur meets historic intrigue at La Casa Pacifica, an iconic 1927 oceanfront estate that has been published in Architectural Digest on three occasions.

Crafted by architect 
Carl Lindbom for oil tycoon Hamilton H. Cotton, the Orange County home was purchased in 1969 by President Richard Nixon, earning it the nickname 
the Western White House.item1.rendition.slideshowHorizontal.may estates for sale 02Property Values: The impeccable 5.5 acres are dotted with a pool, guest villa, and tennis court, among other amenities.item2.rendition.slideshowHorizontal.may estates for sale 03Talking Point: Clint Eastwood, Frank Sinatra, and countless other stars have been guests at the home.

Stats: Five bedrooms, six bathrooms, two half bath, 9,000 SQ. FT., $75 million 

Contact: HÔM Sotheby’s International Realty, 949-554-1214

SANTA FE, NEW MEXICO

item3.rendition.slideshowHorizontal.may estates for sale 04Pedigree: Finding inspiration in the Southwest’s traditional adobe dwellings, the AD100 firm Alexander Gorlin Architects devised this 2005 residence as a series of interconnected pavilions. 

Set against a backdrop of mountain peaks, the 
home takes full advantage of its dramatic site, 
with broad window walls and myriad outdoor entertaining spaces. Crisp lines and sleek finishes distinguish the minimalist interiors.item4.rendition.slideshowHorizontal.may estates for sale 05Property Values: Enhancing the 12.5-acre plot 
is a lap pool bordered by a fuchsia-hued wall 
in the spirit of Mexican architect Luis Barragán.

Talking Point: This is the first time the house has been on the market.

Stats: Three bedrooms, 3.5 bathrooms, 7,700 SQ. FT., $3.9 million 

Contact: Chris Webster, 505-780-9500

SALON-DE-PROVENCE, FRANCE

item5.rendition.slideshowHorizontal.may estates for sale 06Pedigree: Dating from the 15th century, this renovated hunting lodge is the picture of Provençal charm, its ocher exterior accented by sun-faded 
blue shutters. Inside, ceiling frescoes, walls finished with marmorino plaster, and rustic parquetry floors lend a refined but cozy atmosphere.

Property Values: In addition to a pool and pool pavilion, the lush 17-acre grounds include guest and staff houses.

Talking Point: The parterre garden, which has several exquisite water features, offers a captivating spot to unwind.

Stats: Three bedrooms, three bathrooms, 4,300 SQ FT., $4.5 million 

Contact: Propriétés de Provence Sotheby’s International Realty, +33-4-32-60-15-77

ROME

item6.rendition.slideshowHorizontal.may estates for sale 07Pedigree: Old-world elegance prevails at Villa Grazioli, an extraordinary hilltop manor constructed in 1580 as a home for Cardinal Antonio Carafa.

Expanded in the early 18th century by the architect Baldassarre Erba Odescalchi, the estate later fell into disrepair but in 1998 was restored and transformed into a boutique hotel. Behind the building’s gracefully symmetrical façade lies a series of vaulted rooms brimming with period details.item7.rendition.slideshowHorizontal.may estates for sale 08Property Values: The rambling, park-like grounds encompass nearly four acres and include two additional houses for a total of 62 bedrooms.item8.rendition.slideshowHorizontal.may estates for sale 09Talking Point: Art lovers will delight in the rare opportunity to live amid Baroque frescoes by 
such noted painters as Agostino Ciampelli and 
Annibale Carracci.

Stats: 13 bedrooms, 13 bathrooms, six half bath, 39,500 SQ. FT., $17.5 million 

Contact: Rome Sotheby’s International Realty, +39-06-7925-8888

DALLAS

item9.rendition.slideshowHorizontal.may estates for sale 10Pedigree: Designed by Oglesby Greene Architects, this 2009 residence was built to embrace its 
setting on a bluff overlooking the city’s White Rock Creek, with expansive windows affording views of the surrounding woodlands. Composed of a pair of gabled wings linked by a two-story glass corridor, the house features Douglas fir and rugged limestone throughout its striking interiors.

Property Values: The one-acre parcel boasts a number of inviting outdoor spaces, such as a rooftop terrace, an infinity pool, a koi pond, and a hot tub with an adjacent fire pit.

Talking Point: Bird-watchers will enjoy discovering egrets, cardinals, and other avian species among the area’s wildlife.

Stats: Five bedrooms, eight bathrooms, 11,000 SQ. FT., $9 million 

Contact: Douglas Newby, 214-522-1000

More from Architectural Digest:

SEE ALSO: The 15 most expensive streets in America

DON'T FORGET: Follow Business Insider Lifestyle page on Facebook!

Join the conversation about this story »

NOW WATCH: The most expensive ice cream in the world is sold in Dubai — and it costs $817 a scoop

One graph illustrates a major reason why people should care about their credit scores

0
0

This New England style shingle and stone residence was originally seaside cottage built in 1908.  It was renovated in 2008.

When it comes to buying a home, there's a lot more to the process than just finding an affordable home for sale and having enough money for a down payment.

Most people need loans to finance such a large purchase, but even as the housing market has rebounded from the foreclosure crisis and low property values of 2010, mortgages remain very difficult to acquire.

A report from the Urban Institute, a Washington-based economic-policy research group, concludes that 1.25 million more mortgages could have been made in 2013 on the basis of conservative lending standards practiced in 2001, years before the housing bubble began to inflate.

Whether or not a lender approves a borrower for a mortgage depends on several factors, like income and outstanding debt, but looking at the credit scores of mortgage borrowers during the last several years shows just how tight the market has been post-recession. Here's how it breaks down.

chart credit scores urban institute

The Urban Institute estimates that the stringent credit score standards for mortgage origination resulted in 4 million mortgages that could have been made (but weren't) between 2009 and 2013. From 2001 to 2013, consumers with a FICO credit score higher than 720 made up an increasingly large portion of borrowers, from 44% of loans in 2001 to 62% in 2013. Consumers with scores lower than 660 made up 11% of borrowers in 2013, but they represented 28% of home loans in 2001.

The study authors note that their calculations do not account for a potential decline in sales because consumers may not see homeownership as attractive as it had been before the crisis.

"Even so, it is inconceivable that a decline in demand could explain a 76% drop in borrowers with FICO scores below 660, but only a 9% drop in borrowers with scores above 720," the report says.

On top of that, the authors found that tightened credit standards disproportionately affected Hispanic and African-American consumers. In comparison to loan originations made in 2001, new mortgages among white borrowers declined 31% by the 2009-2013 period, 38% for Hispanic borrowers and 50% for African-American borrowers. Loans to Asian families increased by 8%.

Millions of Americans are still feeling the impact of the economic downturn on their credit scores, because negative information like foreclosure, bankruptcy and collection accounts remain on credit reports for several years. Rebuilding the credit and assets necessary to buy a home takes time, particularly in such a tight lending climate, but by regularly checking your credit — which you can do for free on Credit.com — and focusing on things like keeping debt levels low and making loan payments on time, you can start making your way toward a better credit standing.

More from Credit.com

SEE ALSO: 12 hidden costs that make owning a home more expensive than you think

Join the conversation about this story »

NOW WATCH: Here's what it takes to be President Obama's right-hand man

Here's how much each 'Mad Men' character's dwelling cost then and now

0
0

Realtor.com has done the world a public service by figuring out how much each apartment or house that appears in the television show "Mad Men" might have cost at the time — and how much each would cost today. 

What that post doesn't do is adjust the 1960s numbers for inflation, thereby allowing us to see just which character might have gotten the richest if they held onto that property into old age.

The answer, unsurprisingly, is Peggy.

(Numbers are rounded a bit from the official CPI calculations.)

Megan and Don Draper

Don and Megan’s Upper East Side pad

Address: 783 Park Avenue, Apt. 17B
1965 Value: $55,000
Inflation-adjusted (in 2015 dollars): $410,000
2015 Value: $5 million

Peggy’s Upper West Side brownstone

Address: Unspecified
1968 estimated value: $25,000
Inflation-adjusted: $170,000
2015 estimated value: $6 million

peggy mad men season 7 episode 1

Pete and Trudy’s Upper East Side apartment

Address: East 83rd Street and Park Avenue
1960 estimated value: $35,000
Inflation-adjusted: $275,000
2015 estimated value: $2.5 million

Roger’s Upper East Side apartment

Address: 31 East 66th Street, #14A
1960 estimated value: $60,000
Inflation-adjusted: $475,000

2015 estimated value: $5 million–$8 million

January Jones Betty Draper Mad Men

Don & Betty’s suburban NY home

Address: Bullet Park Road in Ossining, NY
1960 estimated value: $30,000
Inflation-adjusted: About $240,000
2015 estimated value: $500,000

Pete and Trudy’s home in Cos Cob, CT

Address: Unspecified
1960s estimated value: $20,000
Inflation-adjusted: $150,000
2015 estimated value: $250,000

Anna’s home in Long Beach, CA

Address: 4021 S Carolina Street, San Pedro, CA
1960s estimated value: $15,000
Inflation-adjusted: $120,000
2015 estimated value: $600,000

megan draper jessica pare season 7 promo still

Megan’s California bungalow

Address: Unspecified in Laurel Canyon, CA
1960s estimated value: $15,000–$20,000
Inflation-adjusted: $120,000-$160,000
2015 estimated value: $500,000–$800,000

Don’s single-guy pad in Greenwich Village

Address: 104 Waverly Place, Apt. 3B
1964 estimated rent: $200–$300 per month
Inflation-adjusted: $1,500-$2,250
2015 estimated rent: $4,500–$5,500 per month

Joan’s Greenwich Village apartment

Address: 42 West 12th Street
1960 estimated rent: $200–$300 per month
Inflation-adjusted: $1,575-$2,375
2015 estimated rent: $4,500–$5,500 per month

Joan Harris Mad Men

Pete’s bachelor pad in Manhattan

Address: Unspecified
1966 estimated rent: $100–$150 per month
Inflation-adjusted: $725-$1,100
2015 estimated rent: $4,000 per month

Can you imagine an entire apartment in Manhattan for less than $1,000?!?!

I moved to this city in the wrong decade.

SEE ALSO: There's a 'checkmate' for any woman's career on Wall Street

Join the conversation about this story »

NOW WATCH: Here's what it takes to be President Obama's right-hand man

Take a walk through Oracle billionaire Larry Ellison's many mansions

If you're buying a home in the seller's market this spring, keep these tips in mind

0
0

open house

With spring finally here for most of the nation, prospective homebuyers can look at houses and condos without traipsing through snow and ice.

Better weather, plus the traditional belief that families search for homes so they can move in between school years, makes spring a major homebuying season in much of the country.

"Especially considering this winter, we're expecting a very busy spring season," says Daniel Hedaya, president of Platinum Properties in New York City. "We're already seeing an uptick."

The biggest challenge facing homebuyers in many markets may be finding a home to buy.

The inventory of available homes for sale remains low in many cities, especially in certain price ranges.

At the end of February, according to the latest data from the National Association of Realtors, there was nearly a five-month supply of homes available for sale, slightly below the number available a year earlier.

That means that, at the current sales rate, it would take five months to sell all the listed homes.

That's a nationwide average, and the supply is even tighter in many cities.

A six-month supply is considered a balanced market.

"Insufficient supply appears to be hampering prospective buyers in several areas of the country and is hiking prices to near unsuitable levels," said Lawrence Yun, the chief economist for the NAR, in a news release. "Stronger price growth is a boon for homeowners looking to build additional equity, but it continues to be an obstacle for current buyers looking to close before rates rise."

real estate houses sale sign

The median price of a home sold in February was 7.5 percent above the median price a year previously, according to NAR data.

A seller's market means that buyers have to be smart and prepared if they want to get the right house at the right price. Agents suggest that prospective buyers start by looking online at homes, narrowing down neighborhood choices and deciding between must-have and preferred features.

At the same time, buyers should visit a mortgage professional and get their financing in order. It's best to start that process before you start looking at homes, in case your credit needs repair or you need to pay off debts to qualify for a mortgage. In a competitive market, agents may not even show homes to buyers who don't have a mortgage preapproval.

A desirable listing may be sold in days or hours, meaning there is no time to organize financing or mull over preferred features before making an offer.

open house home buying looking

"Any market here in the Midwest is very fast-paced right now," says Missy Price, an agent with Better Homes and Gardens Real Estate Kansas City Homes. "If they do see the property that they want and they love, they're going to have to act on it."

It's also important to know how much house you can afford before you get started. Looking at more expensive houses and then scaling down several thousand dollars often leads to disappointment. "I do not like to show somebody out of their price range unless the house is terribly overpriced," says Sharon Voss, president of the Orlando Regional Realtor Association and an agent with Watson Realty Corp. "You get people prequalified, and you're not going to have a problem."

Here are 12 tips for buying a home this spring:

Get mortgage prequalification or, even better, preapproval before you start shopping. This helps you know what you can afford and makes your offer much stronger in the eyes of a seller. In a competitive situation, you may even consider waiving the mortgage contingency clause, which is something you want to avoid unless you are sure you can get the loan. "In New York City, it's always advisable to see if you can go in without a financial contingency," Hedaya says. "It's a market that's dominated by cash."

real estate agent

Find a good agent. Using a real estate agent costs buyers nothing because the seller pays the real estate commission. Ask friends, family and co-workers for referrals. Look for a full-time agent who works often in the neighborhoods where you're looking. You may want to interview several agents to find a good fit. If you can only look for homes on weekends, for example, you don't want an agent who takes weekends off.

Do your research. Use the internet and apps from major portals such as Zillow, Trulia and Redfin to research neighborhoods and asking prices for the type of home you want. But you should keep in mind that you're not always getting a complete picture.

Visit neighborhoods you're considering at different times of day. A neighborhood that's quiet during the middle of the workday may be noisy and crowded at night and on weekends. Get out and walk the streets, talking to people who live in the neighborhood, visiting shops and restaurants and "trying out" your desired location. Drive to and from work during commuting hours to get an idea of what a typical day might be like.

Expect to provide lots of documentation to get a mortgage. Since the recession, mortgage lenders have become much stricter about documentation, income verification and other paperwork. Well-qualified buyers can still get a mortgage, with rates for 30-year loans at 3.66 percent last week. "Borrowing has become much, much more difficult," says Steve Roney, CEO and owner of Berkshire Hathaway HomeServices Utah Properties. "It has become a much more cumbersome process."

Jumping into Swimming pool

Separate your needs from your wants. In a competitive market, most buyers find they have to compromise on location, amenities or condition of home. It's easier to make a choice when you know going in which features you must have and which you'd like to have but can live without. "Be flexible," Hedaya says. "Be prepared to compromise."

Be ready to move fast. A well-located house in good condition and priced right will sell quickly, sometimes the first day it goes on the market. You need to be ready to make a decision when you find a home you like. "You have to be prepared to act fast because we're seeing bidding wars," Price says. "If they don't know what they want, the property is going to be gone."

Don't expect to get a smoking deal. The days of getting a house at a discount are long gone. That doesn't mean you can't ever get a substantial discount on a house that needs work, is in a less popular location or otherwise is in less demand. But in a seller's market, there is usually very little negotiating room on price.

House, Trees, White Picket Fence

Understand that no house is perfect. Making your offer contingent on a home inspection is a good move, but all homes have small defects. Many sellers won't fix anything, and there is no reason for them to if there is a backup offer waiting if you walk away. "You can't nitpick a house," Voss says. "It is a used house."

Find a way to sweeten your offer. Most buyers can't pay all cash, but there are ways beyond price to make your offer more attractive to a seller. Have your agent ask the seller's agent if he would like a faster or slower closing. Consider whether you can waive mortgage or inspection contingencies (which does not mean forgoing an inspection), go without a seller-provided warranty or otherwise improve the deal from the seller's perspective.

Don't buy more than you can afford. Lenders will often approve a buyer for a higher payment than he or she can make comfortably. When you're calculating what you can afford to pay, remember that a mortgage payment is only part of the cost of homeownership. "Buyers should make sure they're taking into account all the secondary costs," Roney says, including insurance, taxes, lawn maintenance, condo or homeowners association fees, repairs and even furniture.

Don't buy a house you don't love. While most buyers may have to compromise on some of the features they wanted, they shouldn't settle for a home they don't like. If you don't find the right home this year, maybe you should rent and try again later rather than make a purchase you'll regret. "Make sure that you have a really strong emotional attachment to what you want to buy," Roney says. "Make sure you love it before you buy it."

SEE ALSO: What I Learned From Buying My First House

Join the conversation about this story »

NOW WATCH: This simple exercise will work out every muscle in your body

This woman moved to the US with $8,000 of savings and now owns millions of dollars worth of real estate

0
0

house

There is no shortage of personal finance experts touting a frugal lifestyle, but just how far can you get ahead just by skipping your daily latte and living like a college student?

For one woman, cutting corners got her far enough to own four homes free and clear.

Saving for the American Dream

Janet Laverty is a 39-year-old marketing professional, wife and mother.

She also happens to own millions of dollars of real estate.

No, she didn't inherit any money, and her family isn't rich — she built her wealth completely from the ground up.

A Canada native who moved to California's booming Silicon Valley in 2000, Laverty said she struggled financially while living in Canada.

"When I moved to the United States, I didn't have anything," she said.

"I had no credit cards, no family support and no financial partner. I had $8,000 in my pocket. That's it."

After the move, Laverty started working for an internet company making $58,000 a year. Immediately, she started saving.

For four years, she saved by cutting her living costs down to the bare essentials. She went without cable, shopped at thrift stores and garage sales, and drank water when she went out with friends. She even skipped drinking caffeinated drinks and other beverages because she does "not see the cost benefit of soda or coffee."

Laverty lived like this until she was able to purchase a four-bedroom, two-bath home for $672,000 in 2004. Although that price might seem cheap compared to some of the more expensive homes in Silicon Valley you will find today, $672,000 was a hefty price tag during that time.

Also, the home needed a lot of work. "The house was a hot mess," said Laverty. "It hadn't been touched since 1970."

During this time period, Laverty's income increased to $85,000 a year, and she started a side business to bring in residual income. She continued to save and started putting energy into fixing up her new home.

Keep Reading: How I Saved $30,000 for a Home Down Payment in 5 Months

Two years later, her home was in good enough shape to be turned into a rental property, and she also managed to save enough to buy her next home: a two-bedroom, two-bath condo for $550,000. But again, the home was in bad shape. "The owner was good at starting projects but not finishing them," said Laverty. "Half the floors were done, the kitchen was also half done, and the drywall was gone. I lived there and fixed it up for quite some time."

San Jose California Skyline

Money-saving tips for home renovations

Laverty continued the same pattern for the next several years: She would purchase a run-down home, fix it up, turn it into a rental and save enough money to purchase another home until she owned a total of four homes in California. This might seem like an expensive and risky endeavor, but Laverty offered some tips on how homeowners can save a ton on their own home renovations:

  • Do as much of the work yourself as possible — painting and refinishing floors are easy.
  • See if you can buy "oops" paint (incorrectly mixed paint) at Home Depot. It usually costs $5 a can.
  • When sprucing up landscaping, buy half-dead plants on sale and bring them back to life.
  • Shop garage sales to find gently used or even brand new household items.
  • If you have to buy new, don't pay full price. Look for stores that are struggling, and go in on a Sunday or close to when their rent is due. And always offer to pay cash for a better deal.

Laverty also made sure her mortgage payments were always under $1,000 a month, "because you can always rent out two rooms or get a job at a fast food joint if you need to cover it. You have to know that you can somehow make it happen."

Related: Home Renovations That Hurt Your Property's Value

remodel renovation

Maintaining a frugal lifestyle

During the early 2000s, during the good old days of internet marketing, one of Laverty's side businesses began to bring in a significant amount of extra income. At one point, she operated a website that was bringing in $300 an hour. But instead of spending that money on herself, Laverty used it to pay down her mortgages and continued to live a frugal lifestyle.

This prudent way of thinking has been the cornerstone to her financial success. "Life is unpredictable," she said. "You never know what life will be like. I always worry, but it keeps me motivated. I want to make sure I can handle emergencies, and I never assume I have a cushion."

Even when she got married three years ago, Laverty maintained a simple and frugal lifestyle. For her wedding, she bought a $250 wedding dress off the sale rack, found a couple of $2 veils on eBay and used coupons to score $3 shoes at DSW. That's right – her wedding shoes cost $3.

She and her husband also keep their finances totally separate. Calling him "the spender in the family," Laverty explained they "indulge in different things," and she prefers to stay in control of her own finances. "He likes new cars, and I hold onto them and drive them into the ground," she said. "I refused to even drive my husband's car until he paid it off. That's how serious I am about not taking on any debt."

Garage sale

Creating her own safety net

Now, Laverty has plenty of money in the bank and a steady stream of income from her properties, but she still works part time and refuses to take out a loan or even use a credit card. "Not having a credit card hasn't stopped me from anything in life – buying a car or a house," she said."I only use an ATM card. Not using credit means I know exactly how much I have and how much I can spend."

Laverty also hasn't let go of the fear that she could lose it all. She said, "I have been rich, and I have been poor, but I'm used to going without. It's so ingrained it me I don't even think about it."

Still, she learned a lot from having little money. In fact, she believes that helped her become successful. "I've never had a safety net or someone to catch me — everyone should go through that in life," said Laverty. "It made me who I am today."

SEE ALSO: A 24-year-old college dropout explains how he went from $10,000 in savings to $4 million in real estate

Join the conversation about this story »

NOW WATCH: This simple exercise will work out every muscle in your body


The $100 million mansion is here to stay

0
0

Luxury Home Dallas Mansion

WASHINGTON (AP) — The poshest of luxury homes are acquiring the cachet of a masterwork by Picasso or Matisse.

Rather than settle for garages of antique cars or a museum's worth of paintings, billionaires are increasingly willing to pay $100 million for homes that can serve as showcases for their fortunes, according to an analysis issued Thursday by Christie's International Real Estate.

"It tells you that there is a new class of collectible — they're trophies now," Dan Conn, CEO of Christie's real estate brokerage, said of the most lavish homes being acquired.

The luxury housing market has shifted in the past year as the dollar has strengthened. Sales in Manhattan, Los Angeles, San Francisco, London and other global hubs are stabilizing after having rocketed in 2013, when many buyers cashed in on stock market gains. Now, multi-millionaires and billionaires are seeking estates overseas and at resort destinations, the report said.

The dollar has appreciated 20 percent against the euro in the past year, making pied-a-terres in Paris and wineries in Bourdeaux more affordable for wealthy Americans. Sales are also surging by averages of more than 20 percent along the beaches of Turks & Caicos and the slopes of Telluride, Colorado.

Five homes sold around the world for more than $100 million in 2014, and a record 18 were listed for sale at that level, according to the Christie's report. Last year's purchases include a $146 million French Riviera mansion. Each square foot of the home cost $22,577 — roughly equivalent to a new Honda Accord.

This is the new top tier for billionaires scouring the globe for signature homes, a market that Conn said should continue to prosper because the world minted 200 new billionaires from 2013 to 2014.

"You've got this club of billionaires who just like to have unique assets," Conn said. "But it's also, truthfully, that they like to entertain their friends and say, 'This is mine.'"

The luxury market contrasts with the still-struggling U.S. real estate market as a whole. Millions of homeowners still owe more on their mortgages than their homes are worth — a vestige of the housing crash that triggered the Great Recession in late 2007. Buyers remain sensitive to changes in mortgage rates and price swings that could make ownership costlier. At the same time, access to credit remains tight for some. Sales have been running below a pace associated with healthy markets.

"There's a deeper cultural shift where people aren't willing to get a house at any cost," said Glenn Kelman, CEO of the brokerage Redfin.

Existing homes sold at an annual pace of 5.19 million in March, a sharp increase after a brutal winter curtailed buying in the Northeast, the National Association of Realtors said last week. Kelman warns that that sales pace isn't sustainable because demand has been driven largely by 30-year fixed mortgage rates averaging just 3.65 percent, compared with a 52-week high of 4.33 percent.

Luxury Home Living Room Mansion

Winter storms have also weighed on Manhattan sales, yet analysts view that market as remarkably stable. Sales in the borough during the first three months of 2015 fell 19.5 percent compared to the same period in 2014, while average prices have slipped by roughly $40,000 to $1.73 million, according to reports by the brokerage Douglas Elliman.

"We had a horrible winter," said Dottie Herman, CEO of Douglas Elliman.

She said many new developments in Manhattan that would boost sales have yet to come onto the market.

Herman is also seeing interest in second homes, something she attributes in part to wealthy baby boomers. Sales and prices have surged in winter hotspots such as Aspen, Colorado, where the average sales price jumped 55 percent in the past year to $4.15 million.

"That's because of the baby boomers, who are not retiring early and are sometimes on their third wife at 65 and have little kids," Herman said.

Still, other luxury developers say the stronger dollar has cut into sales. There has been a 25 percent drop in Manhattan's monthly sales pace and a 50 percent drop in Miami Beach, said Kevin Maloney, a developer whose firm, Property Markets Group, works on luxury buildings.

Global buyers have become more patient. They are seeking value because their incomes, earned in euros, pesos, reals and other currencies, now buy less in dollars. Real estate magnates are coping with same challenge facing manufacturers who are trying to sell their products overseas.

"If I had my druthers, I'd like to see the dollar weaken against other currencies," Maloney said.

Join the conversation about this story »

NOW WATCH: Here's the most looked-up word in the Merriam-Webster dictionary

Real estate experts share 5 tips to snag the home you really want this spring

0
0

buying a house

Spring and all its glory is right around the corner — just take a look at the signs all around you.

No, we're not talking about the budding flowers or the chirping birds — we're referring to those "For Sale" signs that start popping up on lawns across the country as the weather starts heating up.

And once the home-buying season commences … so do the bidding wars and mad dashes from one open house to another.

Since the housing market can be a tricky one to suss out, we asked agents across the country to give us their assessments for this season's real estate landscape.

Their overarching observation? This will be a competitive home-buying season — so if you snooze, you may lose out on that four-bedroom colonial you've been eyeing.

"The major pitfall is lack of preparation," says David Yocum, a Redfin real estate agent based in Chicago.

"The [housing] recovery appears slow due to a lack of inventory and a low participation rate among first-time buyers, but it's still a competitive seller's market."

So check out our pros' tips for boosting your chances of success — and possibly snagging that dream home by summer.

RELATED: Home Buying on a Budget? 7 Telling Signs of an Up-and-Coming Neighborhood

joe fernandez house

Spring house-hunting tip #1: Close that laptop — and canvass old-fashioned open houses.

These days, using real estate sites to explore your options is par for the course: 90% of people search for listings online during their home-buying process.

Kicking off your search online is a good move, but don't dawdle too long behind the computer screen — inventory is expected to be tight in many major markets, so you literally want to hit the ground running.

"In our market we hope for a burst of new inventory in the spring, but that doesn't always happen," says Richard Seaton, vice president at TTR Sotheby's International Realty in the Washington, D.C., area. "Even if that burst comes, demand will outstrip supply, so buyers have to be in a position to make a decision quickly."

Plus, what you view online may not necessarily reflect what you see when you pull up to the curb. "Buyers should be careful," Seaton warns. "The internet can tell only part of the story — and it's usually the part the seller wants you to hear."

That's why Yocum recommends using your favorite real estate site as more of an alert than a decision-making tool by setting up instant updates for homes in desired neighborhoods so you can be notified of new inventory quickly — and act quickly.

RELATED: 7 High-Tech Ways to House Hunt

"You need to be able to see the new homes the day they list, so you can be the first to see the home and make a quick decision," he says. "First offers usually are successful offers."

One other factor to consider? If you live a warm state, you may want to kick things off early. According to data from Trulia, the hunt in sunnier locales is already heating up. Home searches in Cape Coral–Fort Myers, Florida, for instance, were up 22% over the national average in January and February, while Tucson, Arizona, was up 11%.

houses for sale, suburbs

Spring house-hunting tip #2: Educate yourself on market values and trends.

"Buyers need to get up to speed quickly on market values so they know the right decision when it presents itself," Yocum says. "The more quickly buyers can educate themselves, the more successful the home search will be."

This, of course, is where it's really all about location, location, location. According to the Case-Shiller 2014 home price index, San Francisco saw the largest annual regional gain at 9.3%, while other major markets — like New York, Chicago and Washington, D.C. — saw less than 2%.

"We're in full-blown rocket booster mode and it's great to be a seller," says Alexander Clark, a realtor with Paragon Real Estate Group who runs TheFrontSteps.com, a San Francisco real estate blog. "Prices are through the roof — and going higher with each property sold."

Of course, one of the best sources of insider information is a well-connected real estate agent. But Seaton also suggests checking out sites like Curbed.com for trends in your desired area and to find where new inventory may soon be popping up.

Be aware, too, that there could be microtrends in your region that could impact local prices. For example, maybe new homes run at a premium to older ones, or the demand for townhomes and condos outpaces single family homes in your market.

RELATED: The Latest Real Estate Trend: Homeowner Landlords

houses

Spring house-hunting tip #3: Nab low mortgage rates — now.

Another reason not to dawdle too long? You want to take advantage of low interest rates while they last.

"Mortgage rates are still historically low, allowing buyers to wrap up the most house their money will afford them at payment levels that should be affordable for decades," Yocum says.

In fact, interest rates are so low that, in many markets, monthly mortgage payments are less than rent, adds Seaton. "Most predictions are that the fabulously low interest rates will stay that way through the spring, and that the variety of loan packages available to buyers will continue to multiply," he adds.

House hunters also got another boost recently: In January the Federal Housing Authority, which backs loans for borrowers who make low down payments, lowered the annual insurance premium it requires from 1.35% of a home loan to just 0.85%. The Housing Department estimates this will save more than 2 million FHA homeowners about $900 a year.

Bottom line: It's a prime time to jump on a home loan. After all, mortgage rates can be unpredictable — and a decision by the Fed to raise interest rates mid-year, as many economists predict, could cause them to climb.

RELATED: I Want to Get a Mortgage

Neighborhood Homes Rolling Hills

Spring house-hunting tip #4: Build your home-buying dream team before you bid.

If spring-cleaning season has you in a hyper-organized mood, channel some of that spirit into your house hunting — in order to be a serious frontrunner in a bidding war, you'll need to have all of your ducks in a row.

So not only will you need a savvy real estate agent, but you'll also want your lender, inspector and attorney at the ready so you can act fast, says Yocum.

And let's not forget completing your mortgage application and having your loan amount determined in advance. "We move at breakneck speed in San Francisco," Clark adds. "All of my clients must absolutely be 100% pre-approved before submitting an offer."

Seaton suggests even taking it a step further. "To make themselves more competitive, the most successful buyers are going beyond the pre-approval process to become fully approved prior to purchasing," he says. "Not all lenders offer this possibility, but some do."

RELATED: 3 Singles, 3 Home-Buying Dreams: Can They Pull It Off?

And the better known your lender is locally, the more likely you'll win the confidence of the seller. "No real estate agent wants to recommend that his client accept an offer from a buyer who dug up a lender on the internet," he adds.

For a seal-the-deal final touch, Yocum suggests drafting a template of the personal letter you'd send to the sellers of a home explaining how much you love their house and why you want it.

"Then, when you find the right home, you can drop in the address, sellers' names and specifics about the home," he says. "Sellers always respond positively to a personal letter, and if buyers are competing, it might be the deciding factor."

house for sale by owner

Spring house-hunting tip #5: Keep sweeten-the-deal moves in mind.

So you've finally found that dream Tudor on a half-acre — but you're stuck in a bidding war with another equally prepared buyer. How do you win by a nose?

For one, include an escalation clause, along with your offer, suggests Seaton. This is an amount that you'd automatically be willing to pay above a competing bid.

For example, let's say you add an escalation clause of $3,000 to your bid of $200,000. If a second offer comes in at $205,000, your bid would get bumped to $208,000. If you're in a hot market, a significant escalation factor could really pique seller interest, Seaton adds.

Yocum also suggests seeing if there are contingency clauses you're willing to forego in your real estate contract. Contingencies are terms of a contract that must be met or the buyer or seller can walk away from the deal; home inspection, appraisal and financing contingencies are among the most common.

To be sure, "all of these have various levels of risk that not all buyers are willing to accept, and you should consult with your team before [removing] any of them," he cautions. After all, you want to protect your earnest money if you suddenly realize your dream home has termites, or an appraiser discovers you're paying far more than market value.

That said, doing due diligence prep work can help you feel better about removing contingencies.

home for sale

For instance, getting fully approved for a mortgage can help you remove the financing contingency, says Seaton. "And absolutely conduct a pre-inspection prior to making an offer, so that you do not need a home inspection contingency in the offer," he adds.

There are also smaller carrots you can offer, such as finding out when the seller prefers to close and using that closing date in your contract, says Yocum. Or close as quickly as possible and offer to accept rent payments from the sellers, adds Clark.

All these perks can add up to much more than you think. Seaton, for instance, represented a seller earlier this year who ultimately went with a lower bid because the offer had no contingencies. "We see this very often," he says. "Many sellers prefer no risk to a few more dollars."

Ultimately, what all the advice boils down to is making sure you don't get caught unprepared when that perfect property is finally up for grabs.

"The name of the game," Seaton says, "is very much figure out what you want; get your financing straightened; and when the right property comes along, be ready to pounce — and quickly."

RELATED: Try Before You Buy: I Took a Mortgage Test Run

SEE ALSO: How to figure out if the home you want to buy is affordable

Join the conversation about this story »

NOW WATCH: Here's how much sex happy couples have every month

Snapchat gobbles up big office complex near Venice Beach with 10-year lease

0
0

snapchat venice

Snapchat has signed a 10-year lease at a 47,000-square foot office complex in Venice. The lease includes the option to extend by an additional five years. 

"Today is Snapchat's first official day leasing the space," Jim Abbott of Realty Advisor Group, who brokered the deal for the complex's owner, told Business Insider. 

Snapchat had been rumored to be negotiating a takeover of a 55-unit office complex at the corner of Abbot Kinney and Venice Boulevards, one of the busiest intersections in the neighborhood.

Snapchat will be renovating the office buildings at the complex, called the Venice Connection and Studio Village.

"They're paying for some significant improvements that will raise the value of the property," Abbott said.

The property owners have leased the space as a multitenant complex since 1973.

According to Abbott, Snapchat had been negotiating the lease with the owners for nearly 10 months. Several other tech companies, including Uber, had also shown interest in the office space.

"There was some concern, since the property owners weren't familiar with Snapchat," he said. "But we really worked through the lease with them. Snapchat has been growing so much over the last 10 months that it helped to solidify them as a tenant, as a company that is keeping business in Venice."

More than 30 smaller businesses already make their home there — including mobile advertising startup Briabe Mobile, drone and robotics company Ctrl.Me, design agency Clever Creative, and several law and insurance offices.

Most tenants were on a month-to-month lease, all of which will likely be terminated by the end of the summer, Abbott said.

"We’re looking on the west side of L.A., maybe Marina del Rey. It’s going to be a struggle," Briabe Mobile CEO James Briggs, whose company leases about 2,600 square feet in the complex, told Business Insider earlier this month. "There are not a lot of business complexes like this in Venice, and we’re completely priced out of what’s left. Venice is out of the question now." 

Snapchat declined to comment on its real estate negotiations. A spokesperson told Business Insider, "We love being in Venice and we strive to be great neighbors within the community where we live and work."

Snapchat also leases several buildings on Market Street and at the Thornton Lofts on Ocean Front Walk. It's unclear if the new office space will become Snapchat's main headquarters, or if the company views the collection of Venice offices as a broader headquarters. 

snapchat venice

SEE ALSO: Snapchat's stealthy real estate moves are worrying small business owners in Venice

Join the conversation about this story »

NOW WATCH: It's dangerously easy to record Snapchats without the other person knowing

People in Portland, Oregon are going crazy over these tiny houses

0
0

"Small is Beautiful" focuses specifically on four individuals living in Portland, Oregon as they design and construct their own unique tiny houses in pursuit of a mortgage-free lifestyle. As the average square feet of homes in the U.S. has climbed over recent decades, several thousand households have chosen to scale down their homes to structures measuring just a few hundred square feet, with minimal possessions and often on built on wheels for easy transport.

To learn more about the film visit smallbeautifulmovie.com

 

Join the conversation about this story »

How to buy your own private island

Viewing all 4385 articles
Browse latest View live




Latest Images