Many owners have made a commitment to reducing their carbon footprint, whether it’s through local source or conservation. But Bank of America’s intent to build a 52-story “eco-building” in Times Square strongly suggests that green building is now seen by big business as more than just image-friendly – it’s fiscally friendly, too.
The U.S. Green Building Council estimates that 10% of all new commercial construction received their Leadership in Energy and Environmental Design (LEED) certification in 2010. A recent study of commercial property sales identified a commitment to green “redevelopment” by developers like Hines and the Durst Organization, as well as a contingent of real estate investment trusts (REITs). These groups have purchased partially-vacant or distressed commercial properties and renovated them to be green. The primary intent is to help the environment through lower emissions, and reduced usage of resources, but there is a real hard-money difference for such a venture. On average, the building owner can increase rents by about 3%; likewise, an increase of about 8% in a post-renovation appraisal isn’t too shabby, either!
At their eco-conscious corporate headquarters in Cambridge, MA., biotech firm Genzyme sees a 42% reduction in energy costs and a 34% reduction in water consumption over a “typical” commercial space. With green initiatives on the table at companies like IBM, Chase, and Johnson Controls, the trend is catching on in business.
As green goes mainstream, consumers will see the availability of more environmentally-friendly options. Likewise, developers will enjoy an improvement in their image – and their bottom line.
Short sales have become the solution of choice for homeowners who can no longer afford to stay in their house. It allows them to sell their property for less than the principal balance while avoiding a foreclosure. Short sales have also helped buyers into homes that just a couple years ago might have been out of reach. Despite a rocky start, both lenders and the federal government have pulled out all the stops to ensure short sales are successful – and timely – for both buyers and sellers.
By knowing the answers to these questions ahead of time, you can help simplify the process:
- What’s the foreclosure timeline? The earlier you start the process and paperwork, the better. That ensures the buyer will have financing in place and can close in time.
- Who owns the lien(s)? With as many times as some paper changed hands, this may be easier said than done. The best place to start is with the loan servicer(s) – the company who the checks are written out to. Make sure you account for lines of credit and seconds or thirds!
- How much is the property worth? Check the bank’s numbers against recent comps, and don’t be afraid to ask for a review if there’s a significant gap between the two.
- Do you have all the necessary paperwork? Typically, you’ll need a Letter of Authorization (allowing the agent to speak on the seller’s behalf), Listing Agreement, Purchase Contract, Short Sale Agreement, HUD Estimate, Lender Approval(s), as well as pay stubs, tax returns, and bank statements. If either party qualifies for lender and/or federal assistance, additional applications and documentation may be necessary.
- Do you plan to move before closing? Many lenders require the borrower to occupy the home until the short sale is complete.
Successful short sales can lead sellers and buyers down fulfilling new paths, both financial and psychological. By setting out a map early in the process, they can minimize or avoid any dead ends or detours along the way.
One tool that doesn’t seem to be leaving the technology world anytime soon is Foursquare. Foursquare is a geo-local, mobile application that allows you to “check-in” at locations around your community. Once you check-in, your connections can see where you are, what places you frequent the most, and if you hold any mayorships (an award given out to the person who visit the location the most). Not only can this tool be fun, but it can also aid in building your business.
Become a Community Expert: It’s a known fact that consumers like working with professionals who know their area, and Foursquare allows you to do just that. If you frequent the local Starbucks each week, take a few moments to check-in. Chances are you’ll increase your chances of gaining the mayorship. Wouldn’t it be great to have a client see that you are the “mayor” of 20 different places within the area they are hoping to buy or sell?
Connect With Your Sphere: Like Facebook and Twitter, Foursquare allows you to connect with friends, business acquaintances, and past/current clients. People enjoy seeing what their friends and family members are doing via this application. In addition, Foursquare also allows you to take photos and attach them to the location you are at. People can then comment on your location and engage with your check-in. This is just one more way to connect with those who matter most in your business.
Make It Known Where You Work: If your office isn’t already a location on Foursquare, create one. Once you’ve created the location, plan on checking in when you’re at the office. In addition, you can leave tips for the location. Perhaps, every Monday you mention a new and exciting listing. Users get accustomed to tips and will come back to see more each week.
California SB 183, requiring all single family California homes and rental units to be equipped with carbon monoxide detectors, went into effect on July 1, 2011. Carbon monoxide detectors must be installed in all homes by January 1, 2013. The presence/absence of carbon monoxide detectors must also be disclosed in the transfer of residential real estate.
More details of SB 183:
- Requires the seller of the home to disclose whether or not the property has one or more carbon monoxide detectors
- Requires a seller to certify the property is in compliance with laws requiring smoke detectors and the bracing of water heaters
- Failure to install a carbon monoxide device is an infraction
- An owner must be given a 30-day notice to correct the violation and can face a fine of $200 for each offense if not corrected within that time period.
- Tenant must notify landlord if the tenant becomes aware that the device is inoperable or deficient
- Landlord is not in violation if he/she has not received notification from the tenant
- Landlord may enter dwelling unit for the purpose of installing, repairing, testing, and maintaining carbon monoxide devices
To download the entire bill, visit leginfo.ca.gov
Refinancing a home can seem like the perfect solution for homeowners when interest rates are low. Often times it is a great decision, but they are also several things to be aware of prior to making the decision. The following items are extremely important to keep in mind if you are in the process of refinancing or are considering it.
Lack of Research
Research is key when refinancing. Homeowners should also compare annual percentage rates, in addition to the quoted interest rate. Simply looking at the quoted interest rate can result in an inaccurate interpretation of the loan cost. Also, ensure you are comparing equal metrics when looking at various numbers and data.
Selecting the Wrong Type of Loan
Keeping in mind long-term life circumstances is an important component of refinancing. If job loss or change in income may occur within a few years, lowering the monthly payment should be a key concern. Ensuring the selection of the right loan for unique circumstances is critical, so weighing out pros and cons of different loan types is extremely important.
Finding the Best Deal
In addition to basic research, homeowners should also think outside of one lender. It’s recommended that borrowers look into at least three different lenders. Often staying with the same lender is ideal, as less paperwork may be required, but, at the same time, borrowers should complete their due diligence to ensure it’s the best route to take.
Refinancing Isn’t Always the Best Decision For Everyone
Homeowners should keep in mind that refinancing isn’t right for everyone. If a homeowner doesn’t intend to stay in the home for several years, it can actually be a big mistake. Homeowners should speak with a professional to determine if it is actually the best decision for their unique situation.
Although there have been some significant shifts in real estate over the past several years, 72% of American renters still state that owning a home is among their top priorities. According to The National Association of Realtors (NAR) 2011 National House Pulse Survey, renters still believe that renting is only a temporary solution, with home ownership being the ultimate end goal.
One of the biggest challenges currently preventing these people from purchasing homes resides in obtaining the credit needed to do buy. This may continue to be a problem, and grow worse, if the proposed Qualified Residential Mortgage law goes into effect. The law would require a 20% down on all home purchases. According to the NAR study, 51% of middle class homeowners stated that if they were forced to put 20% down on their home purchase, they wouldn’t have been able to buy.
Of course, the housing marketing and the economic climate are tightly aligned. The current national unemployment rate is hovering around 9%, with an even larger number of people who are actually currently unemployed. This statistic, in addition to the proposed law, could make the dream of homeownership a bit more challenging. On the reverse side, the purchase of homes would ultimately increase consumer spending and assist with jobs.
Ultimately, the study shows that homeownership still matters a great deal to individuals who do not currently own one. The feeling of safety and stability are things that can be hard to find in a renting environment. In addition, owning a home provides financial security over the long-run.
In the past five years, an entirely new segment of marketing technologies have evolved in the real estate world. Some have faded as trends, while others seem to be here for the long run. Mobile marketing is definitely one that looks like it will be around for years to come.
Of course, with these new technologies come challenges. Finding the time to not only learn about them, but also to learn how to use them effectively, can be daunting at times. To assist, we’ve complied some great statistics that emphasize the reach of mobile marketing. As of 2010, nearly 95% of all Americans were using a mobile phone, with nearly half of them being smartphone users. As if these number aren’t large enough already, they are estimated to grow by 80 million over the next year. Although the numbers may vary from area to area, there is no disputing the immense opportunities in mobile marketing.
If you are interested in gearing up your mobile marketing strategy, there are a few things you may want to start thinking about.
Optimized Website: There is nothing worse than going to a website from your phone and finding out it doesn’t work or is limited in its functionality. One big fail is the use of Flash, as iPhone devices cannot read this program. There are various vendors and WordPress plug-ins that can help with the optimization of websites, with prices ranging from free to a several thousand dollars.
QR Codes: Quick Response Codes have become quite popular over the last year, and real estate professionals are now looking at ways to integrate them into their mobile marketing strategies. QR codes can be placed on business cards, for sale signs and printed advertising. When the end user scans the code, they are taken to a predefined location on the web. This gives the person who scanned the code instant access to the website via their phone. Of course, if you are linking to your website, ensure it is mobile optimized for best results.
One commonly overlooked component involved with buying and owning a home is a home warranty plan, and although it may seem like a minuscule detail in the grand scheme of things, the warranty ultimately can save a homeowner a great deal of frustration and cost. Home warranty plans vary dramatically based on coverage and the provider, but typically they have a handful of items in common.
The cost of a home warranty plan is hard to pinpoint, as it depends on the type and extent of coverage the homeowner in seeking. Plans may be as low as $200 and as high as $800, and although the details of a plan are unique to the agreement, they usually work in a similar fashion.
- If there is a problem with an appliance, the homeowner contacts the home warranty company.
- The home warranty company contracts one of the providers it has an established relationship with.
- The provider contacts the homeowner to arrange a time to come out and inspect the appliance.
- The provider fixes the appliance or replaces the appliance if it cannot be fixed.
- The homeowner may have to pay a small fee for the service, depending on the policy.
In addition, there are certain restrictions that exist in polices. Again, the details of these restrictions may vary based on the provider and coverage. In general, there are specific items can prohibit an item from being covered, including damage due to improper maintenance, incorrect installation or wear that isn’t considered natural.
A decade ago, there wasn’t much talk about online marketing strategies. Real estate professionals were primarily focused on print marketing, farming strategies and referral business. Today, we know the landscape looks quite different and that the web has literally changed everything.
Having an online presence is now a pivotal part of a real estate agent’s overall marketing strategy, and there is quite a bit of data that strongly supports this premise. Consumers today are used to getting information quickly and in an efficient manner. Within the National Association of Realtor’s 2009 Homebuyers and Sellers Study, the following statistics were discovered:
- 90% of homebuyers utilized the Internet as a source for information when thinking about buying or selling a home
- 77% of Internet buyers took the action to drive by or view a home after they initially saw it online
- 36% of homebuyers found the home they ultimately purchased on the Internet
These statistics only reiterate how important an online presence is in today’s world, but the challenge can reside in figuring HOW to develop a strategy. To assist you, we’ve assembled a list of resources that may assist you as you look to create your online marketing strategy.
Tips and Advice on Blogging:
Writing great content for your website and blog
Online videos for your real estate website and blog
How to turn your blog into a prospect producing machine
General Online Marketing Advice:
Build a better website toolkit
One landing page does not fit all
Articles on Marketing Your Website:
Website visibility: 7 ways to get your website noticed
If you use your personal vehicle for business purposes, we’ve got some great news to share! The Internal Revenue Service recently announced that as of July 1 you will have the ability to deduct more for each mile driven for business purposes – a total of $0.55 per mile.
According to the IRS, their rationale for change was a result in rising tax prices and the toll the prices are taking on Americans who drive frequently for business reasons. Traditionally, the IRS reviews mileage deductions towards the end of the year and implements the changes in the following year. Given the current economic conditions, they decided to push the adjustment date forward. Their hope is that this increase in deductions will assist in balancing the increase in gas prices.
Although mileage write-offs are an excellent way to reduce taxable income, one common challenge often is figuring out how to keep track of mileage throughout the year. To help, we’ve put together a brief list of applications that might assist you in staying more organized.
MilesPerGallon: This application is only available for the iPhone. It allows users to track mileage for more than one vehicle and generate reports – two functions that can be valuable once it comes time to file your taxes.
Drivers Log: This application is only available for Android phones. It’s simple interface allows you to track miles and also export them to a Google spreadsheet for reference.
Trip Cubby: This iPhone application allows you to track mileage in a traditional way, but also saves frequent trips. This function allows you to replicate a trip without having to enter information time after time – a huge time saver.
