Prudential Americana Group, one of the largest residential real estate firms in the Las Vegas Valley, is filing for Chapter 11 bankruptcy so it can reorganize its debts while continuing operations.
The company, which had not filed the paperwork by press time Tuesday, has 1,200 sales executives operating under its auspices and has positive operating cash flow. Owner Mark Stark, however, said Prudential Americana Group -- the seventh-largest real estate firm nationally in the Prudential network -- needs bankruptcy court protection so it can restructure its debt.
"We are focused on business as usual," Stark said. "This is a debt restructuring. We continue to grow market share."
The bankruptcy filing will not affect the 3,000 exclusive listings that Prudential Americana has in Southern Nevada, he said. Stark estimated that the company is probably the biggest residential real estate company in the area, with a 15 percent share of all local home resales. Brokers who operate under the Prudential Americana umbrella also sell new homes and commercial real estate.
Prudential Americana is the second big Las Vegas realty firm to seek bankruptcy protection in recent months.
Jimmy Dague, president of Vision Properties doing business as Century 21 Advantage Gold, filed for Chapter 11 bankruptcy protection in August.
At the time of the filing Vision reported $1 million in assets and $1.8 million in liabilities. The company said it had $54.6 million in gross income in 2005. Vision reported its gross income fell to $40.3 million the following year and to $15.8 million in the first eight months of 2007. The brokerage's Web site says it has 500 agents.
Prudential Americana's problems started in October 2004.
Stark borrowed money to buy the company when residential real estate was booming and home prices were soaring.
Stark bought the 75 percent of the company he did not already own from his partners and Prudential Real Estate, the national franchisor. To finance the buyout, Stark borrowed $22.5 million from Salt Lake City-based Zions Bank, an affiliate of Nevada State Bank, and Peninsula Capital Partners of Detroit.
Zions, which is owed $4.9 million of $10 million originally borrowed in 2004, is in first position among the company's lenders. Peninsula is an unsecured lender and was receiving only interest payments, pending a later balloon payment.
When he bought the company, Stark said he expected a slump in the local real estate loan market would follow the boom that sent home prices soaring, but he was stunned by the magnitude of the drop.
"I did not see a 67 percent downturn coming to the Las Vegas market," he said, referring to the drop in existing home sales over the past two years.
Because of the real estate market, Zions pulled the trigger on a loan agreement provision and ordered Prudential Americana to stop making payments to Peninsula, Stark said.
Peninsula executives in turn pumped up the interest rate on their loan to 19 percent from an average of 15 percent, Stark said.
Prudential Real Estate, the national franchisor, offered to assume the Las Vegas real estate company's debt, but Peninsula was unwilling to accept the company's terms.
The national company intends to provide financing to Prudential Americana during the bankruptcy, Stark said.
"It's probably a good strategy," said Lanis O'Steen, who owns a residential real estate brokerage in Pahrump and is a business turnaround professional.
The real estate firm, O'Steen said, can ask the bankruptcy judge "to do what's reasonable and maximize returns and recoveries for all of the creditors."
O'Steen said the bankruptcy filing is further evidence that small businesses are getting hurt because of the popping real estate bubble. Small businesses are key economic drivers, O'Steen said, and their problems could lead to further economic declines.
Prudential Americana operates as an umbrella company for independent real estate brokers who agree to pay a flat fee or a percentage of their commissions for administrative, legal and other support.
Stark told about 600 real estate sales workers on Tuesday morning about the bankruptcy and plans to reorganize the company.
"We had a standing ovation of support from the sales executives," he said.
Stark hopes the company will be able to emerge from bankruptcy protection in about six months.
Wednesday, November 28, 2007
Wednesday, November 14, 2007
High Rise industry terms
Approved project - An approved project has gone through the necessary approval stages with the county and/or city and the FAA (for height concerns). The fact that a project is approved is no indication that it will be built.
Boutique Hotel - A term originating in North America to describe intimate, usually luxurious or quirky hotel environments. Boutique hotels differentiate themselves from larger chain/branded hotels and motels by providing personalized level accommodation and services / facilities. Sometimes known as "design hotels" or "lifestyle hotels", boutique hotels began in the 1980s in major cities like New York, London, and San Francisco.
Casino Hotel - A casino hotel is a smaller hotel with a casino. These properties do not usually have all the amenities of larger resorts of casino resorts. The Westin Casuarina is a good example. It has a small casino and one restaurant.
Casino Resort - A casino resort is a full-service resort with a casino. Generally, casino resorts have several restaurants, retail, lounges, showrooms, convention facilities, nightclubs, spa facilities and a large casino. There are 22 casino resorts on the Las Vegas strip and many more scattered around the valley. Condo,
Residential Condo - A development where individual units are owned, but common areas and amenities are shared equally by all owners. These are designed to be used as a permanent residence.
Condo-Hotel, Condotel - This genre of residential building meets several needs that make it attractive. As development costs increase, the cost of hotel development can make developing new hotels difficult, especially in major cities. By selling the units as condos, the developer moves much of the development cost to the condo owners. By owning units that can be rented as hotel rooms, the owners are able to get a r eturn on their investment allowing them the ability to own a residence in a resort or major city. Owners may also elect to keep the units to themselves, adding personal art items, and not allowing the renting of the unit to strangers in their absence.
Crown - The crown is the top of a high-rise building. Usually a decorative architectural element that disguises electrical, mechanical and other unsightly devices.
Dark Towers - These are residential condo towers near the strip. The majority of the owners are rarely there as they use them as a vacation home instead of a permanent residence. In the evenings, only a few of the windows are lit.
Green Buildings - A whole-building approach to sustainability by recognizing performance in five key areas of human and environmental health: sustainable site development, energy efficiency, water savings, materials selection, and indoor environmental quality. Several new buildings in Las Vegas are "green", these are marked with a green "G" on the Construction Stats page.
Groundbreaking - While this term used to signal the beginning of construction, it is more of a ceremonial ritual these days. Groundbreaking ceremonies as of late, have been held months before and, in some cases, after construction actually begins.
Land Flippers - In Vegas it has become rather commonplace for a company to; purchase a plot of land (or several parcels as an assemblage), hire an architect to render an image of a high rise building on that land, put up a convincing website about the development, present their proposal to the county for approval, hire a bulldozer to clear the land, and build a chain-link fence around the property (usually with banners advertising the new development. Although this seems like a real project, the land (now approved for high rise construction) is worth many times what it was worth from the start. The company then flips (sells) the land and building permits for a healthy profit and the original project never gets built. This practice has lead to the misreporting (by the media) regarding a failing high rise market.
LEED Certification - The Leadership in Energy and Environmental Design (LEED) Green Building Rating System™ is the nationally accepted benchmark for the design, construction, and operation of high performance "green buildings".
Live/Work - A live/work is residential condo project that is zoned so that the resident can run a business from their residential unit.
Loft - Although many definitions exist, for our purposes a loft is a residential condo (single or multi-level) which has exposed utilities (plumbing pipes, electrical conduit, heating and AC ducts, etc.) and minimal interior walls. This allows the resident to be more creative and have more flexibility when designing their living space. Lofts are (obviously) less expensive to build than conventional condos.
Mixed Use - A mixed-use project will have many different elements i.e. hotel, condos, office buildings, shops, markets, theaters, entertainment venues, night clubs and more. Although many of the casino-resorts seem like they should fit into this category, they generally do not have food-markets and office-space which are two of the qualifying elements.
NIMBY - An acronym of (Not In My Back Yard) describes the phenomenon in which residents designate a development as inappropriate or unwanted for their local area, even if the development is clearly a benefit for many. Often, these NIMBYS own desirable property and block developers by refusing to sell it to them.
Podium - The low-rise building out of which the high-rise tower projects. Podiums usually house lobbies, casinos, restaurants, etc.
Soft Opening - The soft opening of a project is a short, break-in period when the project opens its doors to the public without any announcement or fanfare. This helps the developers get a better idea of how the spaces work and allow them some time for adjustments before the grand opening. Often, some of the shops, venues and restaurants are not yet open during the soft opening.
Strip (The) - The Las Vegas Strip is a contiguous 4.17-mile stretch of Las Vegas Blvd. bounded on the south by Mandalay Bay and on the north by Sahara. That’s the official definition. An interesting side note is that none of the official strip lies within Las Vegas city limits (which starts north of Sahara Ave.)
Timeshare - Timeshare is a business model whereby a company sells small time-slices (usually one week) of a resort to customers. This concept is most frequently used for vacation condominiums/homes. Timeshare owners may elect to: Use their usage time - Rent out their owned usage - Give it as a gift - Exchange internally within the same r esort or resort group - Exchange externally into thousands of other timeshare resorts
Topped-out - A building it topped-out when the top floor is completed. the facade and/or windows are not a factor to the status. In some cases, an American flag or pine tree is attached to the top, signaling the topping-out of the building. On steel structures, The last beam is often painted white and signed by all the ironworkers. Topping-out of a major structure is often accompanied by a celebration with food and drink.
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Boutique Hotel - A term originating in North America to describe intimate, usually luxurious or quirky hotel environments. Boutique hotels differentiate themselves from larger chain/branded hotels and motels by providing personalized level accommodation and services / facilities. Sometimes known as "design hotels" or "lifestyle hotels", boutique hotels began in the 1980s in major cities like New York, London, and San Francisco.
Casino Hotel - A casino hotel is a smaller hotel with a casino. These properties do not usually have all the amenities of larger resorts of casino resorts. The Westin Casuarina is a good example. It has a small casino and one restaurant.
Casino Resort - A casino resort is a full-service resort with a casino. Generally, casino resorts have several restaurants, retail, lounges, showrooms, convention facilities, nightclubs, spa facilities and a large casino. There are 22 casino resorts on the Las Vegas strip and many more scattered around the valley. Condo,
Residential Condo - A development where individual units are owned, but common areas and amenities are shared equally by all owners. These are designed to be used as a permanent residence.
Condo-Hotel, Condotel - This genre of residential building meets several needs that make it attractive. As development costs increase, the cost of hotel development can make developing new hotels difficult, especially in major cities. By selling the units as condos, the developer moves much of the development cost to the condo owners. By owning units that can be rented as hotel rooms, the owners are able to get a r eturn on their investment allowing them the ability to own a residence in a resort or major city. Owners may also elect to keep the units to themselves, adding personal art items, and not allowing the renting of the unit to strangers in their absence.
Crown - The crown is the top of a high-rise building. Usually a decorative architectural element that disguises electrical, mechanical and other unsightly devices.
Dark Towers - These are residential condo towers near the strip. The majority of the owners are rarely there as they use them as a vacation home instead of a permanent residence. In the evenings, only a few of the windows are lit.
Green Buildings - A whole-building approach to sustainability by recognizing performance in five key areas of human and environmental health: sustainable site development, energy efficiency, water savings, materials selection, and indoor environmental quality. Several new buildings in Las Vegas are "green", these are marked with a green "G" on the Construction Stats page.
Groundbreaking - While this term used to signal the beginning of construction, it is more of a ceremonial ritual these days. Groundbreaking ceremonies as of late, have been held months before and, in some cases, after construction actually begins.
Land Flippers - In Vegas it has become rather commonplace for a company to; purchase a plot of land (or several parcels as an assemblage), hire an architect to render an image of a high rise building on that land, put up a convincing website about the development, present their proposal to the county for approval, hire a bulldozer to clear the land, and build a chain-link fence around the property (usually with banners advertising the new development. Although this seems like a real project, the land (now approved for high rise construction) is worth many times what it was worth from the start. The company then flips (sells) the land and building permits for a healthy profit and the original project never gets built. This practice has lead to the misreporting (by the media) regarding a failing high rise market.
LEED Certification - The Leadership in Energy and Environmental Design (LEED) Green Building Rating System™ is the nationally accepted benchmark for the design, construction, and operation of high performance "green buildings".
Live/Work - A live/work is residential condo project that is zoned so that the resident can run a business from their residential unit.
Loft - Although many definitions exist, for our purposes a loft is a residential condo (single or multi-level) which has exposed utilities (plumbing pipes, electrical conduit, heating and AC ducts, etc.) and minimal interior walls. This allows the resident to be more creative and have more flexibility when designing their living space. Lofts are (obviously) less expensive to build than conventional condos.
Mixed Use - A mixed-use project will have many different elements i.e. hotel, condos, office buildings, shops, markets, theaters, entertainment venues, night clubs and more. Although many of the casino-resorts seem like they should fit into this category, they generally do not have food-markets and office-space which are two of the qualifying elements.
NIMBY - An acronym of (Not In My Back Yard) describes the phenomenon in which residents designate a development as inappropriate or unwanted for their local area, even if the development is clearly a benefit for many. Often, these NIMBYS own desirable property and block developers by refusing to sell it to them.
Podium - The low-rise building out of which the high-rise tower projects. Podiums usually house lobbies, casinos, restaurants, etc.
Soft Opening - The soft opening of a project is a short, break-in period when the project opens its doors to the public without any announcement or fanfare. This helps the developers get a better idea of how the spaces work and allow them some time for adjustments before the grand opening. Often, some of the shops, venues and restaurants are not yet open during the soft opening.
Strip (The) - The Las Vegas Strip is a contiguous 4.17-mile stretch of Las Vegas Blvd. bounded on the south by Mandalay Bay and on the north by Sahara. That’s the official definition. An interesting side note is that none of the official strip lies within Las Vegas city limits (which starts north of Sahara Ave.)
Timeshare - Timeshare is a business model whereby a company sells small time-slices (usually one week) of a resort to customers. This concept is most frequently used for vacation condominiums/homes. Timeshare owners may elect to: Use their usage time - Rent out their owned usage - Give it as a gift - Exchange internally within the same r esort or resort group - Exchange externally into thousands of other timeshare resorts
Topped-out - A building it topped-out when the top floor is completed. the facade and/or windows are not a factor to the status. In some cases, an American flag or pine tree is attached to the top, signaling the topping-out of the building. On steel structures, The last beam is often painted white and signed by all the ironworkers. Topping-out of a major structure is often accompanied by a celebration with food and drink.
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Monday, November 12, 2007
City Center Las Vegas
Location: Las Vegas Strip (Harmon)
Bldg. Type: Condo/Hotel/Mixed-Use
No. of Towers: Depends on Property
No. of Stories: Depends on Property
No. of Units: Depends on Property
Unit Sizes: Depends on Property
Price Range: Depends on Property
Square Footage: Depends on Property
Status: Under construction- reservations set for January 2007
Estimated Breakground Date: 2006
Estimated Completion Date: 2010
Developer: MGM-Mirage
Project Details
The Residences at Mandarin Oriental, Las Vegas
Private Owners Lobby
Residental Club Room
Private Owner area at Hotel Pool
Exclusive Owner Locker room on Fitness Level
24 hour fully staffed lobby
Valet Parking for all vehicals
The Harmon Hotel and Residences
Destination restaurants and shops
Private Owners Retreat
State-of-the-Art conference facility
Luxurious Spa and Pool Deck
Housekeeping Service
Valet parking for all vehicals
Veer Towers
Condo Club Room
Rooftop pool in each tower
24 hour concierge, security, bellman
Valet parking for all vehicles
Vdara Towers
Spa and Branded Salon
Coffee Bar and Lobby Lounge
Access to Hotel Services - in-room dining, housekeeping
24 hour concierge, security, bellman, doorman
Valet parking for all vehicles
Option to participate in MGM Mirage managed hotel rental program
Project Status
STATUS: Reservations List/
CONSTRUCTION: Currently in initial construction phase
RESERVATIONS START AT: Depends on Property
AGENT COOP: 3%
DEPOSIT SCHEDULE: Depends on Property
HOA Fees:
Developer Bio
MGM-Mirage is the developer and with 831 acres owned on or near the las vegas Strip, they have plenty of collateral and financial backing to make this project along with others under way a success.
Project Description
Project City Center is a $7 billion mixed used project planned on 76 acres between the Monte Carlo and the Belligo Earlier this year (2006) this was the site of the Boardwalk Hotel and Casino which closed it's doors and was imploded to make way for the construction of project City Center.
In order to plan CityCenter, the nation's most expensive private construction project and its largest collaboration of name-brand architects, MGM Mirage split the project into three components, with the final piece - the retail and condominium area - coming together more recently.
Described as a city within a city, this project will be yet another reinvention of Las Vegas. Blvd.
Project Update:
The Mandarin Oriental Hotel will have approximately 227 condominium units above the 400-room hotel tower, with the 4,100-square-foot penthouses coming with the highest price in Project CityCenter at $8 million.
The Harmon, will be operated by MGM Mirage. It will have 228 condominiums above its 400 hotel rooms.
The Veer Towers, twin 37-story condominium high-rises, will be CityCenter's only pure residential-only development with units ranging from 500 square feet to 2,600 square feet.
Vdara, a 1,543-unit condominium-hotel with units ranging from 500 square feet to 1,850 square feet. Vdara will be built between Bellagio and the CityCenter hotel-casino.
Developer Financing
The MGM-Mirage conglomerate is privately funding this project, which is considered to be the largest private ly funded construction project in in the nation, employing over 7000 construction workers.
Bldg. Type: Condo/Hotel/Mixed-Use
No. of Towers: Depends on Property
No. of Stories: Depends on Property
No. of Units: Depends on Property
Unit Sizes: Depends on Property
Price Range: Depends on Property
Square Footage: Depends on Property
Status: Under construction- reservations set for January 2007
Estimated Breakground Date: 2006
Estimated Completion Date: 2010
Developer: MGM-Mirage
Project Details
The Residences at Mandarin Oriental, Las Vegas
Private Owners Lobby
Residental Club Room
Private Owner area at Hotel Pool
Exclusive Owner Locker room on Fitness Level
24 hour fully staffed lobby
Valet Parking for all vehicals
The Harmon Hotel and Residences
Destination restaurants and shops
Private Owners Retreat
State-of-the-Art conference facility
Luxurious Spa and Pool Deck
Housekeeping Service
Valet parking for all vehicals
Veer Towers
Condo Club Room
Rooftop pool in each tower
24 hour concierge, security, bellman
Valet parking for all vehicles
Vdara Towers
Spa and Branded Salon
Coffee Bar and Lobby Lounge
Access to Hotel Services - in-room dining, housekeeping
24 hour concierge, security, bellman, doorman
Valet parking for all vehicles
Option to participate in MGM Mirage managed hotel rental program
Project Status
STATUS: Reservations List/
CONSTRUCTION: Currently in initial construction phase
RESERVATIONS START AT: Depends on Property
AGENT COOP: 3%
DEPOSIT SCHEDULE: Depends on Property
HOA Fees:
Developer Bio
MGM-Mirage is the developer and with 831 acres owned on or near the las vegas Strip, they have plenty of collateral and financial backing to make this project along with others under way a success.
Project Description
Project City Center is a $7 billion mixed used project planned on 76 acres between the Monte Carlo and the Belligo Earlier this year (2006) this was the site of the Boardwalk Hotel and Casino which closed it's doors and was imploded to make way for the construction of project City Center.
In order to plan CityCenter, the nation's most expensive private construction project and its largest collaboration of name-brand architects, MGM Mirage split the project into three components, with the final piece - the retail and condominium area - coming together more recently.
Described as a city within a city, this project will be yet another reinvention of Las Vegas. Blvd.
Project Update:
The Mandarin Oriental Hotel will have approximately 227 condominium units above the 400-room hotel tower, with the 4,100-square-foot penthouses coming with the highest price in Project CityCenter at $8 million.
The Harmon, will be operated by MGM Mirage. It will have 228 condominiums above its 400 hotel rooms.
The Veer Towers, twin 37-story condominium high-rises, will be CityCenter's only pure residential-only development with units ranging from 500 square feet to 2,600 square feet.
Vdara, a 1,543-unit condominium-hotel with units ranging from 500 square feet to 1,850 square feet. Vdara will be built between Bellagio and the CityCenter hotel-casino.
Developer Financing
The MGM-Mirage conglomerate is privately funding this project, which is considered to be the largest private ly funded construction project in in the nation, employing over 7000 construction workers.
Sunday, October 28, 2007
Holy Cow ! Ivana sells for $47Million
Ivana Trump Las Vegas real estate sold to Arizona man for $47 million. The old Holy Cow Casino, Cafe and Brewery two acre site on the Las Vegas Strip has been sold.
The very expensive land is located across the multibillion dollar mega resort by MGM Mirage, Dubai World, Kerzner International Holdings Ltd and north of the Sahara casino. A casino license is possible at this location.
The 58 year old Arizona businessman and Las Vegas land owner is Steven Johnson. He is from Desert Mountain Renegade Golf Course community and doesn’t have a definite plan for the site.
The purchase has been place through Aspen Highlands Holdings LLC. This company is owned by Johnson and has made large purchases in Las Vegas for over two decades.
The very expensive land is located across the multibillion dollar mega resort by MGM Mirage, Dubai World, Kerzner International Holdings Ltd and north of the Sahara casino. A casino license is possible at this location.
The 58 year old Arizona businessman and Las Vegas land owner is Steven Johnson. He is from Desert Mountain Renegade Golf Course community and doesn’t have a definite plan for the site.
The purchase has been place through Aspen Highlands Holdings LLC. This company is owned by Johnson and has made large purchases in Las Vegas for over two decades.
Thursday, October 25, 2007
Dick Chaney takes a nap
Cheney takes a nap.“Vice President Dick Cheney gets caught napping yesterday as Defense secretary Donald Rumsfeld and other White House aides leave a press briefing by President Bush and Chinese leader Hu Jintao. The veep’s people later insisted he was reading his notes.”
Thursday, October 18, 2007
Its Time to Buy Into Vegas
Selection, selection, selection. There are about 28,000 resale homes on the market in Las Vegas. Regardless of the price range a buyer desires, there are plenty of houses from which to choose. Just a few years ago the resale inventory dropped below 3,000 units. A buyer was forced to make compromises if they were going to locate the home of their dreams. There is a great selection of attached homes, condos, and townhouses. You can find large lots, small lots, and a lot that will accommodate your boat or RV. There are lots of options in this market.
No Bidding Wars. In 2004 we had one client that made an offer on ten homes. They lost the first nine to the 'feeding frenzy' that existed. Other buyers bid the properties up substantially from the original listing price. There were escalation clauses where buyers authorized their agents to outbid other offers by thousands of dollars. There is no competitive bidding in this buyer's market.
You can make an offer. A few years ago when you made an offer, the only question was how high above the list price could the buyer reach in hopes of being the best offer on the table. Today the sell price list vs. price ration is about 96%. A seller will not be insulted if you 'make them an offer they can't refuse'.
Patience is tolerated. In the hot seller's market that existed everything was rushed. Find a house before other buyers did. Hurry up and make the offer. Today a buyer can take their time. Look at several homes and think about your decision for a few hours.
Due diligence is welcomed. In this market a buyer is encouraged to obtain a home inspection, termite inspection, and appraisal. In 2004 many buyers waived these contingencies in order gain an advantage with multiple offers.
There are plenty of specs. In the not too distant past buyer had to 'play games' if they wanted a new home. There were lotteries and waiting lists in order to obtain new construction. Some buyers slept in their cars in order to get to the head of the lines.
Repair requests are welcomed. After a buyer completes a home inspection, they are allowed to submit a repair request to the seller. In the past a seller might insist the home was sold 'as is'. Many times, there were back-up buyers waiting for a primary buyer to upset the seller whose home was increasing in value almost daily.
Few, if any investors. It is estimated that one third of all sales in 2004 were to investors. These non-owner occupied buyer caused the market to inflate and affordability to decline. Mortgage fraud became commonplace. It's a great time to buy without having to compete with hundreds of prospective landlords.
Real Financing is available. The 'wink, wink' zero down, no doc, adjustable, sub-prime loans are gone. Fixed rates are back. FHA financing, first time homeowner bond programs, special loans for teachers and police officers are back in business. It's a great time to buy real estate!
No Bidding Wars. In 2004 we had one client that made an offer on ten homes. They lost the first nine to the 'feeding frenzy' that existed. Other buyers bid the properties up substantially from the original listing price. There were escalation clauses where buyers authorized their agents to outbid other offers by thousands of dollars. There is no competitive bidding in this buyer's market.
You can make an offer. A few years ago when you made an offer, the only question was how high above the list price could the buyer reach in hopes of being the best offer on the table. Today the sell price list vs. price ration is about 96%. A seller will not be insulted if you 'make them an offer they can't refuse'.
Patience is tolerated. In the hot seller's market that existed everything was rushed. Find a house before other buyers did. Hurry up and make the offer. Today a buyer can take their time. Look at several homes and think about your decision for a few hours.
Due diligence is welcomed. In this market a buyer is encouraged to obtain a home inspection, termite inspection, and appraisal. In 2004 many buyers waived these contingencies in order gain an advantage with multiple offers.
There are plenty of specs. In the not too distant past buyer had to 'play games' if they wanted a new home. There were lotteries and waiting lists in order to obtain new construction. Some buyers slept in their cars in order to get to the head of the lines.
Repair requests are welcomed. After a buyer completes a home inspection, they are allowed to submit a repair request to the seller. In the past a seller might insist the home was sold 'as is'. Many times, there were back-up buyers waiting for a primary buyer to upset the seller whose home was increasing in value almost daily.
Few, if any investors. It is estimated that one third of all sales in 2004 were to investors. These non-owner occupied buyer caused the market to inflate and affordability to decline. Mortgage fraud became commonplace. It's a great time to buy without having to compete with hundreds of prospective landlords.
Real Financing is available. The 'wink, wink' zero down, no doc, adjustable, sub-prime loans are gone. Fixed rates are back. FHA financing, first time homeowner bond programs, special loans for teachers and police officers are back in business. It's a great time to buy real estate!
Saturday, October 13, 2007
First Time Home Buyers
When you set out to buy your first house, you certainly want to buy a piece of real estate you can consider to be "home" and not just an investment. At the same time, the best real estate purchase is one that can fill both of these roles. Therefore, when you begin the search for your home, there are a few things you should keep in mind in order to make the best purchase possible. These include:
• location,
• house size and
• lot specifications.
By carefully considering these three areas, you will be more likely be happy with your real estate purchase for years to come.
Considering the Location
Everyone has heard that location is the most important aspect of real estate – and for good reason. After all, if the real estate you buy is in a poor location, you are not likely to be happy living there and you will have a difficult time selling the property later.
When considering a piece of real estate, you will want to look into the area's crime statistics. Just looking up the numbers for the area is not enough, however, as this does not paint a clear picture of the specific neighborhood you are considering. Find out as much as you can about your neighbors before moving in, as living next door to the wrong people can make your life miserable and can significantly decrease your property value.
You can learn more about your neighbors by driving through the neighborhood at night on a couple of different occasions. You can also ask your local police station to provide you with a list the calls they received within a one mile radius of the home over the past two years. This list will tell you when the calls where made, where the police were dispatched and why they were called in the first place.
Considering the Size of the Home
The size of the house you are looking to buy is another important consideration. Obviously, the houses in the neighborhood will vary somewhat is size, but most should be pretty similar. When it comes to resell value, you don't want to buy the largest home in the neighborhood. Because, if the homes around the one you are looking to buy are smaller than yours your home most likely will not appreciate in value as quickly. At the same time, purchasing a home that is smaller than the other properties in the neighborhood will help to increase its value faster. Of course, you need to purchase a home large enough for you and your family. Therefore, when making your decision, you will have to weigh your needs against the potential resale value of the home.
Considering the Lot
Although most of the value of your real estate purchase will be tied up in the actual home, you certainly want to consider the lot as well. Don't worry too much if the lot does not have a great deal of landscaping done to it. You can add your own landscaping later, which will give the value of the home a nice boost. More importantly, you want to select a lot that is not overly crowded, oddly shaped or situated in a strange position. All of these factors can make it more difficult for you to sell the home later.
When you buy a house, you definitely want to get a place you can call "home." At the same time, you want to shop smart and purchase a piece of real estate that will increase in value and serve as a wise investment.
• location,
• house size and
• lot specifications.
By carefully considering these three areas, you will be more likely be happy with your real estate purchase for years to come.
Considering the Location
Everyone has heard that location is the most important aspect of real estate – and for good reason. After all, if the real estate you buy is in a poor location, you are not likely to be happy living there and you will have a difficult time selling the property later.
When considering a piece of real estate, you will want to look into the area's crime statistics. Just looking up the numbers for the area is not enough, however, as this does not paint a clear picture of the specific neighborhood you are considering. Find out as much as you can about your neighbors before moving in, as living next door to the wrong people can make your life miserable and can significantly decrease your property value.
You can learn more about your neighbors by driving through the neighborhood at night on a couple of different occasions. You can also ask your local police station to provide you with a list the calls they received within a one mile radius of the home over the past two years. This list will tell you when the calls where made, where the police were dispatched and why they were called in the first place.
Considering the Size of the Home
The size of the house you are looking to buy is another important consideration. Obviously, the houses in the neighborhood will vary somewhat is size, but most should be pretty similar. When it comes to resell value, you don't want to buy the largest home in the neighborhood. Because, if the homes around the one you are looking to buy are smaller than yours your home most likely will not appreciate in value as quickly. At the same time, purchasing a home that is smaller than the other properties in the neighborhood will help to increase its value faster. Of course, you need to purchase a home large enough for you and your family. Therefore, when making your decision, you will have to weigh your needs against the potential resale value of the home.
Considering the Lot
Although most of the value of your real estate purchase will be tied up in the actual home, you certainly want to consider the lot as well. Don't worry too much if the lot does not have a great deal of landscaping done to it. You can add your own landscaping later, which will give the value of the home a nice boost. More importantly, you want to select a lot that is not overly crowded, oddly shaped or situated in a strange position. All of these factors can make it more difficult for you to sell the home later.
When you buy a house, you definitely want to get a place you can call "home." At the same time, you want to shop smart and purchase a piece of real estate that will increase in value and serve as a wise investment.
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