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How Buyers Can Compete in Hot North Texas Housing Market – NBC 5 Dallas-Fort Worth

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Nearly 75,000 people moved to North Texas in 2020, at a time when supply chain problems and rising timber costs slowed the construction of new homes.

“A lot of people, when they think of buying a house, think of what they see on TV: that we’re going to pick a bunch that we like best, that’s the one we’re going to take, jump up and Hopefully you win, ”said Jared Tye, McKinney realtor.

Instead, buyers find a fast-paced housing market where mid-range homes are signed within days or even hours of launch.

“It’s really wild,” said Tye.

Inventory down, prices up

North Texas Real Estate Information Systems found that average home sales prices were up 26% from last May to $ 332,573. Prices for May 2021 have increased 23% since May 2019.

Jim Gaines, an economist at Texas A&M University’s Real Estate Research Center, said several factors are affecting prices in north Texas, including population growth, pandemic demand pent-up, and future demand from buyers that drive plans to buy a home quickly pursue now.

“In addition to the people moving to the area who already live here who may have been thinking about buying next year or the year after that or the year after that, they are moving this forward,” said Gaines. “We are seeing some spur in future demand while interest rates are low and prices are rising even more than they are already rising.”

A low housing stock is also an important factor.

“When I’m at A&M, I can tell you in Aggie language you don’t have any,” Gaines said.

North Texas Real Estate Information Systems estimates that there will be about a month of housing for sale in North Texas.

Taylor Walcik of the MetroTex Association of Realtors stated that a healthy herd is considered six months.

“People keep asking me, ‘Is that a bubble? How long will it take? ‘”Said Walcik.” My answer is,’ It’s not a bubble, it’s a simple case of supply and demand. ‘”

North Texas Agents Stock Strategies

As many homes see multiple listings, agents say they recommend buyers look under their budget.

“We told our buyers to take a step back. If you want to end up at $ 400,000, maybe we should look 10% below that so we can declare the bidding war, ”said Walcik.

Walcik said the buyers also did what they could to sweeten the deal for the sellers, including offering to cover the seller’s closing costs or shorten the option period.

In a recent deal, Tye said the buyers had written promises to take over most of the house as it is.

“We’re doing an inspection to look for major problems,” said Tye. “We said, ‘If we don’t find defects greater than $ 5,000, we’re not going to ask for repairs or concessions at all.'”

Tye said he wouldn’t recommend buyers or sellers skip an inspection entirely.

Agents said buyers must have a pre-approval letter from the bank stating that they are approved for that price.

Some buyers add an escalation clause that automatically matches other offers that come in later.

Realtor Sally Arevalo said the bottom line for buyers is showing the seller that your deal can be closed.

“Just try to get in as clean and strong as you can, close fast,” Arevalo said.

If a seller is also looking for a home, she recommends that buyers consider some flexibility.

“If they want a re-lease, offer to do a re-lease if you can even give the seller up to a month or two to stay in the apartment while they look for a place,” Arevalo said.

Cash offers are also more common, agents said.

“There are a lot of investors who buy houses for cash. So how do you compete with that? I’d say a big part of it is getting as much information as possible through the front end, ”Tye said.

A cash offer may not be the highest bid or the best deal for the buyer, and cash offers may not necessarily be the norm for every home that comes on the market.

“There are cases where all offers are funded,” said Tye. “It’s not a deal where everyone is offering that crazy, high-cash offer, but they certainly are more common than they have been in the past.”

Do “love letters” help or hurt?

Some buyers give their offer a personal touch by writing a so-called “love letter”. It is a personal communication from the buyer to the seller.

Arevalo said if a buyer wants to write a letter she tells them to focus on why they love the house.

“Talk about the house, what you love about the house, if there are similarities, when you walk through the house,” said Arevalo. “Compliment them for what they did to the house.”

“No pictures. You have to be careful how it’s done,” she added.

The National Association of Realtors issued a warning that love letters can be a burden. Information in a personal note can be indicative of a buyer’s race, religion, or marital status and potentially influence the seller’s decision.

Arevalo said she has seen mixed results from love letters.

“I had salespeople who wanted to look at it and others who didn’t care and said, ‘I don’t want to be influenced by it. It’s just numbers, ‘”she said.

“You have to make spontaneous decisions”

When the Huyser family started looking for a place to live earlier this year, they knew the North Texas market was pretty hot.

“I didn’t expect them to be taken off the market so quickly. You hear about it, but it’s a different matter to experience it, ”said Chori Huyser.

“We looked at a house and they were under contract within 24 hours,” said Nathan Huyser.

The family searched the Collin and Denton Counties and eventually closed a house in late March after a three month search.

They said they were happy with the house they bought and believe that their offer beat the others for several reasons.

“We offered between 5-10 [thousand dollars] over [the asking price] and then we got creative with that assessment, ”said Chori Huyser.

Their broker, Tye, stated that the Huysers had included a clause in their offer promising to redeem their savings if bank appraisals were a certain amount below the sale price – to reassure the seller that their buyers are serious about the deal.

“You can see that we are confident that we have done our research and that we are not just trying to get a quote to get an initial contract. We’ll actually finalize it for her, ”said Tye.

The Huysers also said they wrote a love letter. The sellers wrote one back and left it to the Huyser family to find in the house after the keys were handed over.

“That was really, really cute and cool,” said Chori Huyser. “They were referring to things I wrote in the letter.”

“You took the time to read the letter and it made a difference. I really think so, ”said Nathan Huyser.

Your advice to other buyers?

Find a trusted real estate agent, be patient, and don’t fall in love with every home you see.

“It’s okay if it doesn’t happen now and you know it goes in. I feel like there is an emotional attachment, there is a lot to be frustrated with. It’s up, it’s down, it’s unpredictable, ”said Chori Huyser.

“This market is so fast-moving that you have to make spontaneous decisions,” said Nathan Huyser.

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San Diego City Council Reviews Audit Of Troubled Real Estate Deals

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Photo by Shalina Chatlani

Above: 101 Ash Street in Downtown San Diego. August 21, 2020.

An examination of the string of bad San Diego real estate deals received its first public hearing on Wednesday, with city council members saying major changes are needed to regain public confidence.

The reason for the audit was the city’s catastrophic attempt to lease the high-rise office building at 101 Ash Street and buy it later. The city had hoped to hire hundreds of employees to consolidate its workforce in the downtown area. The move-in date, however, kept being postponed as the city discovered more and more problems with asbestos and the building’s HVAC and electrical systems. The latest estimate of the cost of repairs and improvements is $ 115 million.

The report found that former Mayor Kevin Faulconer and his staff were not following best practices such as: B. require independent appraisals and building inspections, and withhold important information from the city council.

RELATED: San Diego Audit Mistakes in Real Estate Deals under Faulconer

“My 500-square-foot condominium has had more inspections than these city buildings,” said city council member Vivian Moreno, who chairs the city council’s audit committee. “Having seen all of this in this review, it is absolutely critical that any proposed property purchase is moved forward before the council is required to prepare a due diligence checklist.”

A checklist to ensure that every real estate transaction is in line with best practices is one of the main recommendations of the audit. Mayor Todd Gloria has agreed to implement it.

RELATED: NBC7 admits the 101 Ash Street story is based on a forged document

In addition, the audit found that city officials were not giving council members enough time to review complex contracts, nor were they showing real alternatives. Councilor Joe LaCava acknowledged that the security measures recommended in the audit could slow the process of the city’s property acquisition process.

“We can lose some good home purchases because we need extra time to make sure we’re getting things right and a seller may not be willing to wait,” said LaCava. “And I think that’s fine. As I said, it’s more important to protect the city and the taxpayers than to close a real estate deal.”

City attorney Mara Elliott announced last month that the city would order a judge to suspend leases at 101 Ash Street and another downtown office building that is currently occupied by several city departments. Both deals were crafted with the advice of commercial real estate agent Jason Hughes.

The city’s amended lawsuit followed revelations exposed through subpoenas that Hughes, who claimed he was acting as an unpaid volunteer, actually paid $ 9.4 million in fees from the sellers of the buildings.

While the audit focused on 101 Ash Street, it also looked at other questionable real estate transactions. This includes the purchase of a closed indoor skydiving facility through the city in the East Village and a piece of land in Kearny Mesa that is intended as a repair yard for fire engines and is also uninhabitable.

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Doma, the Company Architecting the Future of Real Estate Transactions, Completes Business Combination with Capitol Investment Corp. V

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SAN FRANCISCO – (BUSINESS WIRE) – Doma Holdings, Inc. (formerly known as States Title Holding, Inc.) (“Doma”), a leading force in disruptive change in the real estate industry, and Capitol Investment Corp. V (NYSE: CAP) (“Capitol”), a publicly traded special purpose vehicle, today completed its previously announced business combination. Doma leverages machine intelligence and its proprietary technology solutions to create an easier, more efficient and more affordable real estate deal experience for current and potential homeowners, lenders, title agents and real estate professionals. The combined company’s common stock and warrants are expected to trade on July 29, 2021 on the New York Stock Exchange under the symbol DOMA and DOMA.WS, respectively.

The proceeds from the transaction will be used by Doma to drive growth, both through market expansion and new product development aimed at expanding the strategic advantage customers receive from Doma’s machine intelligence platform. Capitol shareholders approved the transaction at a special meeting instead of the 2021 annual general meeting on July 27, 2021. CEO Max Simkoff and the rest of the Doma management team will continue to lead the combined company.

“For us, this transaction is about accelerating our ability to penetrate and revolutionize first the antiquated $ 23 billion title, escrow and closure market, and finally the broader $ 318 billion home ownership services market.” said Simkoff. “Ultimately, our vision is to have many of the most important experiences when buying a home, instantly and digitally. Today’s milestone is evidence of Doma’s impressive growth to date and the strength of our business. We look forward to this next phase as a stock corporation. ”

Citigroup Global Markets Inc. acted as financial advisor and Davis Polk & Wardwell LLP acted as legal advisor to Doma. JP Morgan Securities LLC acted as financial advisor and Latham & Watkins LLP acted as legal advisor to Capitol. Deutsche Bank Securities Inc. also acted as capital markets advisor to Capitol. Citigroup Global Markets Inc. and JP Morgan Securities LLC acted as PIPE placement agents with JMP Securities LLC, Oppenheimer & Co. Inc. and DA Davidson & Co. acted as co-placement agents.

About Doma

Doma (formerly States Title Holding, Inc.) is shaping the future of real estate transactions. The company uses machine intelligence and its patented technology solutions to transform residential real estate and make closures instant and affordable. Doma and its family of brands – States Title, North American Title Company (NATC), and North American Title Insurance Company (NATIC) – provide solutions for current and potential homeowners, lenders, title agents and real estate professionals that greatly simplify and efficiently close deals, reduce costs and increase customer satisfaction. Doma customers include some of the largest bank and non-bank lenders in the United States. To learn more, visit www.doma.com.

Legend for forward-looking statements

This press release contains “forward-looking statements” within the meaning of the “safe harbor” provisions of the US Private Securities Litigation Reform Act of 1995. “plan”, “project”, “predict”, “intend”, “will”, “expect.” “,“ Anticipate, ”“ believe, ”“ seek, ”“ seek, ”or other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. The absence of these words does not mean that a statement is not forward-looking. Such statements are based on beliefs and assumptions about the information currently available to Doma’s management.

These forward-looking statements include, among other things, statements regarding estimates and projections of financial and performance metrics, projections of market opportunities, total addressable market (“TAM”), market share and competition, and potential benefits of the transactions described herein. These statements are based on various assumptions, whether or not mentioned in this press release, and current expectations of Doma management and are not predictions of actual performance. These forward-looking statements are presented for illustrative purposes only and are not intended as a guarantee, assurance, prediction or final determination of fact or probability and should not be relied upon as such by any investor. Actual events and circumstances are difficult or impossible to predict, differ from assumptions, and are beyond Doma’s control.

These forward-looking statements are subject to a number of risks and uncertainties, including changes in business, market, financial, political and legal conditions; Failure to achieve the expected benefits of the business combination; Risks related to the uncertainty in the forecast financial information relating to Doma; future global, regional or local economic, political, market-related and social conditions, including due to the COVID-19 pandemic; the development, impact and enforcement of laws and regulations, including those related to the title insurance industry; Doma’s ability to manage its future growth or to develop or acquire improvements to its platform; the impact of competition on Doma’s future business; the outcome of potential legal disputes, governmental and regulatory proceedings, investigations and investigations; and the other factors described in the “Risk Factors” section of Doma’s filings with the SEC from time to time.

Should any of these risks materialize, or should Doma’s assumptions prove incorrect, actual results could differ materially from those implied in these forward-looking statements. There may be additional risks that Doma is not currently aware of or that Doma currently considers to be immaterial and which could also mean that the actual results differ from those contained in the forward-looking statements. Additionally, forward-looking statements reflect Doma’s expectations, plans or projections of future events and beliefs as of the date of this press release. Doma assumes that subsequent events and developments will lead to a change in Doma’s assessments. Although Doma may update these forward-looking statements at some point in the future, Doma expressly disclaims any obligation to do so, unless required by law. These forward-looking statements should not be taken as a representation of Doma’s opinion at any time after the date of this press release. Accordingly, you should not place undue reliance on any forward-looking statements.

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What Would Equitable Real Estate Finance Look Like? – Non Profit News

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“The Art of RE Membership, How To Be Human,” Lola Audu

“Real estate is a big issue in America,” noted Avery Ebron, who runs The Guild’s Atlanta business. Ebron made these remarks last month at a press conference to mark the release of the Inclusive Capital Collective’s (ICC) first “black paper” entitled Building Community Wealth: Shifting Power and Capital in Real Estate Finance. Ebron co-authored this paper with The Guild CEO Nikishka Iyengar and Chicago Trend CEO Lyneir Richardson. The report provides an important framework not only to identify how structural racism is penalizing real estate development by and for BIPOC communities, but also to identify specific changes that could significantly reduce these barriers.

ICC defines itself as “a growing network of community fund managers and entrepreneurship support organizations that have designed and developed a common technical and financial infrastructure for the aggregation and delivery of financial capital and other resources to entrepreneurs and colored communities in the United States.” The group was formed at a meeting in Denver in the fall of 2019 and is incubated by the 2015 Zebras Unite Cooperative, which aims to promote access to capital for socially minded companies, especially women-owned and black-owned companies.

Often the discussion about real estate focuses on home ownership and the gap between black and white ownership rates. Here, however, the focus is less on residential properties and more on the actual real estate development business. As Amanda Abrams wrote in the New York Times earlier this year, “Commercial real estate remains an area where the vast majority of developers are white.” Abrams found that a 2013 industry survey found that only 4.4 percent of the commercial real estate professionals were blacks. A recent 2020 survey by the Urban Land Institute found that only five percent of its members were black, while 82 percent were white.

In their paper, the authors state that “current community development practices and institutions tend to focus on outcomes (especially affordable housing) rather than outcomes that drive structural change.” In their report, Iyengar and her co-authors claim that a commercial Real estate industry, in which blacks and other colored real estate entrepreneurs played a bigger role, would not only be more diverse and inclusive, but would also focus on the goal of collective wealth creation. According to the authors, a “community-centered” real estate market would:

  • Prioritize affordable operating space for local BIPOC businesses
  • Be more democratic and involve community organizers, small business owners and local residents in the development process
  • Focus on providing space for important common goods like groceries and common areas
  • Leverage infill development to support affordable rents and home ownership that stabilize existing BIPOC neighborhoods
  • Create opportunities for blacks, indigenous peoples and other colored residents to have a stake in commercial real estate
  • Better connect residents and businesses to public resources such as technical assistance, basic financial literacy programs and business grants

Real estate redesign for equity

An important contribution of the report is that it provides a thoughtful list of both the barriers to equitable real estate development and potential solutions. As Joe Neri, CEO of IFF, a leading Chicago-based community development financial institution (CDFI), explained, one of the many effects structural racism has on real estate is that BIPOC neighborhoods are valued lower than white neighborhoods, what it is makes it more difficult to fund projects (as the credits are drawn up to a percentage of the appraised value), which means that a developer has to raise more money.

As Neri put it, “Old government-sanctioned banking regulations have depreciated property for decades, and now current banking regulations prevent investment in areas where appraisals are low.” Building on Neri, the ICC report calls for one “Income-based lending” (ie, lending based on a percentage of the income the project is expected to generate), which is forward-looking, not ratings that bake in past discrimination.

The authors describe specific loan products that could lower financing costs for BIPOC real estate developers. These include “patient justice,” which the authors of the report describe as a long time horizon (e.g. 10 years), low interest rates (zero to five percent), and provisions to protect development projects from early costs (e.g. payments for the first 12 to 24 years of age) Months of the loan). Foundations, according to the authors, are the most likely providers of such funding, and that funding could be five percent of the project’s value. Another 20 percent of the financing structure could be “friendly debt”, such as low-interest loans from CDFIs. The remaining 75 percent could be standard bank loans. In other words, while the need for philanthropic assistance is clear, the report also shows how limited philanthropic dollars can enable more common commercial funding.

The authors also describe additional steps in overcoming barriers – for example, easier access to credit lines, reducing zone restrictions, loan guarantees (possibly from CDFIs or foundations) to reduce interest costs, and partnering with public land banks to help BIPOC real estate developers get low-cost land.

In the report’s conclusion, the authors note that “there is an abundance of black developers creating equitable and contextualized real estate solutions for their communities – transforming the way real estate development is done and transforming them into a vector for creating Transforming Prosperity for All Americans ”. In the appendices to the report, the authors document this through case studies of BIPOC-owned real estate companies in four cities – Philadelphia, Chicago, Atlanta and Fort Myers in Florida.

When the report was released, Kevin Williams, a member of the Black Squirrel Collective in Philadelphia, spoke about the urgency of the work. “You see a lot of study and research into the plight of minorities in America,” noted Williams. “But you don’t see any follow-up. Someone writes a newspaper and says black people are poor. Yeah we know that. But has anyone followed up to see what was being done to address this issue? … We have to keep being vocal … and we have to keep pushing the point that justice has to happen. “

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