Posts Tagged ‘real estate’

Newer Entries »

Foreclosed Homes: A Good Deal For Buyers?

Wednesday, June 23rd, 2010

The number of foreclosures on private homes continues to increase, and it shows no indication of stopping in 2010.

  • Between 3 and 3.5 million houses in the U.S. are expected to go into foreclosure in 2010 (up from 2.8 million in 2009).
  • Foreclosed homes are sold “as is,” so there are many potential complications and hidden costs.
  • It’s typical for bank-owned homes to have electricity, gas, and water completely turned off, emphasizing the importance of buyer inspections.

Facts and Figures

  • There have been more than 300,000 homes per month for 15 consecutive months that received foreclosure notices.
  • An estimated 45% of adults may consider purchasing a foreclosure.
  • Some banks are offering financial incentives to those buying foreclosures.

Best Quote

“We’ve plateaued at an unprecedented level of foreclosure activity.” – Rick Sharga, Senior Vice President of RealtyTrac

An Escrow Account is…

Wednesday, June 16th, 2010

An escrow account is a kind of “neutral zone” for people completing some monetary transaction. It’s a bank account that isn’t owned by anyone participating in the transaction, so the money doesn’t have to change hands until all the details have been hammered out. Putting money into an escrow account shows you’re serious about making the transaction, but it protects everyone in case the agreement falls through.

Escrow accounts are often used in real estate deals to prevent a client’s money from mingling with other funds. When the deal is closed, the money in the escrow account is transferred to its ultimate owner – in this case, the seller.

“Augmented Reality” Brings Real Estate To A New Dimension

Wednesday, March 31st, 2010

A prosperous new market marries iPhone superpowers with the reality of day-to-day.

  • The European tech company Layar has engineered a mobile browser that layers content over reality using your phone’s camera, compass and GPS data.
  • Layar’s augmented reality technology (A.R.) is now being used in the lucrative real estate industry.
  • Point your iPhone at a home or apartment and watch interior photos and value estimates appear onscreen.

Facts & Figures

  • 1,000 developers have designed 2,000 programs for the iPhone and Google Android using Layer’s technology.
  • By 2014, the A.R. market is expected to have annual revenue of $732 million.
  • Both Google and Microsoft are working on their own versions of A.R.

Best Quote

“There’s a lot of capital, a lot of money in real estate so we expect realtor brands to use it as a service to their customers and customers to use it just out of curiosity.” – Maarten Lend-FizGerald, Layar Co-Founder

Ultrahigh-Net-Worth Families Reflect On The Recession

Monday, October 5th, 2009

A gathering of advisors to high-net-worth families reveals ongoing insecurity about more than just the market…

  • Reeling from the losses of the recession, wealthy families are expressing concern about what their changing financial positions will do to their family dynamics.
  • The success of family dynasties depends largely on each member managing the shared assets with a similar set of values and goals. But the sudden stock market crash brought to light hidden frictions and diverging interests in many families.
  • One particular point of anxiety is in commercial real estate. With the market so volatile and typical investors suddenly going through kind of financial-existential crisis, the old practice of buying up cheap real estate during down times just isn’t happening. What that means for the rest of the world remains to be seen.

Facts & Figures

  • According to a survey of 108 “ultrahigh-net-worth families,” 45% said their first concern these days is the economy and financial markets.
  • Other top concerns included government intervention in the markets and a commercial real estate crash.

Best Quote

“These families have recognized that autopilot is not a good strategy.” – Amelia Renkert-Thomas, Lawyer

Real Estate is…

Friday, July 17th, 2009

Real Estate is land and anything on it like a house, an apartment, a building, a shed, etc.

A Mortgage is…

Sunday, July 5th, 2009

A mortgage is a long-term loan for real estate that is secured by the value of the property. Basically, the mortgage secures your promise that you will repay the money you have borrowed to buy your home, and if you do not, then the property will belong to the lender.

Housing Prices: How Low Can They Go?

Friday, June 12th, 2009

There are more markets than the stock and bonds ones and they are pretty important too. Housing markets are a key indicator of the economy’s health, so obviously you can’t pass it up.

  • Housing markets take longer to rebound after recessions even if other markets recover quickly.
  • Personal housing decisions don’t often follow the fluctuations of the housing market, but instead reflect personal and economic factors – the majority of people does not constantly sell or buy housing every time the price changes.
  • A significant upswing in the economy may reverse this downward trend, but it will most likely have little effect unless attitudes towards home ownership change significantly.

Facts & Figures

  • Prices have been declining for three years and are projected to fall 41% from 2006 through 2010.
  • Current market prices are encouraging people to sell their homes while not stimulating new demand for housing: a large supply with little demand.
  • Following the 1990-91 U.S. recession, housing prices didn’t move upwards till roughly six years later.
Newer Entries »