Second Century Acquires ePropertyData

 

Daily Real Estate News | March 10, 2008

Second Century Acquires ePropertyData

THE NATIONAL ASSOCIATION OF REALTORS® has acquired ePropertyData, a major provider of commercial information exchange (CIE) services for the commercial real estate industry.

The acquisition was accomplished by NAR’s new for-profit subsidiary, Second Century Ventures LLC, a strategic private equity fund that was conceived to help support NAR members in emerging technologies and services.

“Through this acquisition, NAR will provide its members with two important new services — a robust national commercial real estate listing and transaction platform, and a broker-centric solution provider for the CIE industry,” says NAR President Dick Gaylord. “The national listings and transactions platform will give our commercial members national exposure for all their sale and lease listings and provide the industry with an excellent and trusted resource to search for properties across the country.”

For the past five years, ePD, based in Gig Harbor, Wash., has been providing CIE services to the commercial real estate industry. ePD operates two of the largest CIEs in the country, CommercialMLS.com, on behalf of the 4,500-member Commercial Brokers Association in Seattle, and CommercialGateway.com for the 2,000-member commercial division of the Houston Association of REALTORS®.

Read More…

 

What Buyers Want

Highlights from NAR’s Profile of Buyers’ Home Feature Preferences

by Dr. Paul C. Bishop, Harika “Anna” Barlett and Jessica Lautz, NAR Survey Research

Times have changed for home sellers, and the housing market isn’t what it was. Sales of both existing and new homes are down, price appreciation has fallen from its breakneck, double-digit pace of a year ago, and the supply of homes available for sale – housing inventory – is at record levels. The mortgage market is still recovering from the subprime fallout. While owners trying to sell their homes in the current housing “doldrums” certainly face challenges, home buyers benefit from an ample supply of homes and the opportunity to find homes with features and amenities that most closely match their needs.

So how can sellers “attract” buyers to their homes. One way is to make sure that homes listed for sale offer those potential buyers the features that they really want. NAR’s recent 2007 Profile of Buyers’ Home Feature Preferences looks at those home features considered important during the search process, the presence of those desired features in the homes purchased, and in those cases when the home purchased lacks particular features, home buyers’ willingness to pay extra for them. Below we present highlights from the Profile that address those issues.

Home Features Desired Most by Potential Buyers
The most desired home feature was central air conditioning, ranked “very important” by nearly three quarters of home buyers. An oversized (two-or-more car) garage, a walk-in closet in the master bedroom, and a backyard or play area were also rated as “very important” by at least half of recent home buyers.

Repeat vs. First-time Buyers. The preference for certain home features can differ based on whether a potential buyer is a repeat buyer or a first-time home purchaser. Repeat buyers placed more importance than first-time buyers on almost all home features examined, with the exception of proximity to work and a backyard or play area. The features repeat buyers were much more likely to desire than he first-time buyers included oversized garages, a walk-in-closet in the master bedroom and a separate shower in the master bathroom. Buyers of new homes were also more likely than buyers of previously owned homes to consider most home features, including many luxury items, to be very important.

Regional and Location Differences. The importance buyers place on particular home features also varies by region. For example, while buyers in all regions rated central air conditioning as one of the top two most important features, it was very important to over 90 percent of buyers in the South and over 80 percent in the Midwest, compared to 41 percent in the Northeast, and 59 percent in the West. Buyers in the South also placed higher importance on newly built homes, porches, single-level homes and monitored security systems. Buyers in the West had a higher-than-average preference for lawn sprinkler systems, fencing, patios, and oversized garages. Fully or partially finished basements were more important in the Midwest, and reserved parking in the Northeast.

Buyers’ preferences also differ by the location of the home purchased, mostly based on the neighborhood features. Those who purchased a home in an urban area had a higher-than-average preference for being near public transportation, reserved parking, and proximity to work. Suburban home buyers indicated a higher preference for oversized garages, walk-in closets, and new homes. Buyers in rural areas were more likely than average to prefer wooded lots and a water treatment or filtration system.

Preferences by Age. Home feature preferences also vary by age of the home buyer. For example, among older buyers, features such as a walk-in-closet in the master bedroom and a separate shower enclosure in the master bathroom were more often viewed as very important; and a backyard or play area, and proximity to work and schools were less often considered as important among these buyers. Buyers over 44 years old had a higher preference for single-level homes than the younger buyers. Buyers aged 55 or older were more interested in homes that are cable or satellite TV ready, equipped with a lawn sprinkler system, and on a flat lot. Buyers over 64 years were more likely to prefer sidewalks and an air filtration system, and less likely to prefer fencing and porches.

Features in the Home Actually Purchased
Home buyers consider many features as important when searching for a home, but they sometimes need to make compromises when actually purchasing a property. Among recent home buyers who considered each of the features examined as somewhat or very important, the home purchased most likely included cable-satellite TV readiness, high speed Internet access, central air conditioning, an oversized garage, and neighborhood features such as proximity to schools, to a park or playground, and to shopping. Among the desired features least likely to be present in the home purchased were an intercom system, a water treatment or filtration system, homes with handicap accessibility features, and extra-wide doorways.

Repeat vs. First-time Buyers. There are differences on what features buyers comprised on depending on whether they are repeat purchasers or those buying their first home. Repeat buyers were more likely to purchase a home with most of their preferred features, including many luxury items. Compared to first-time buyers, they compromised most on neighborhood features, such as proximity to work, a park or playground, and public transportation. Buyers of new homes did not make many compromises on the size or luxury items, but mostly on neighborhood features.

Regional Differences. The likelihood that a preferred feature is present in the home purchased varies by region. Desired features much more likely to be present by region included intercom systems, hardwood floors, bay windows, skylights, proximity to public transportation and reserved parking in the Northeast; a water treatment or filtration system, an intercom system, and homes more than 100 years old in the Midwest; a tennis court, being near or on a golf court, porches, and a monitored
security system in the South; and lawn sprinkler systems and fencing in the West. Among the desired features, the ones much less likely to be present in homes purchased in each region compared to the national average were lawn sprinkler systems, fencing, patios, and new homes in the Northeast; lawn sprinkler systems, fencing, and monitored security systems in the Midwest; proximity to public transportation, fully or partially finished basements, and intercom systems in the South; and usable/ accessible attics, wooded lots/trees, and whirlpool baths in the West.

Age of Buyer. Recent home buyers aged 25 to 44 purchased a home with most of the features they desired. As the age of the buyer increased, the likelihood of compromises increased, particularly among those aged 65 and over, and especially on neighborhood features. For example, less than 50 percent
of buyers 65 or older purchased a single level home, despite ranking this feature as important.

“Will Pay for AC”
Home buyers value some features so much that they reported being willing to pay more for a home if that feature was present. The most frequently reported features for which buyers would be willing to pay more included central air conditioning, walk-in closets, hardwood floors, high-end kitchen appliances, oversized garages, and patios. The least frequently mentioned features for which buyers would pay extra included homes that were more than 100 years old, a tennis court, a sloping lot, being on or near golf course, and handicap accessibility. Home buyers who purchased a home without a valued feature were willing to pay the most for a waterfront property, typically an extra $4,760; a home less than 10 years old, typically an extra $3,800; and fully or partially finished basement, typically an extra $2,970.

Among buyers who purchased homes below and above the median price, the rank ordering of the features for which they were willing to pay extra changed little. However, there were significant differences in the amounts that buyers would typically pay for some of the features. For example, buyers of homes below and above the median price were willing to pay the most for a waterfront property; but among those with homes priced below the median, the typical extra amount was $3,360 and $8,240 among those homes priced above the median. For a cul-de-sac lot, and proximity to shopping or public transportation, those buyers with above median priced homes were willing to pay almost twice as much as those with homes below the median price. For features including central vacuum, high-speed Internet access, and intercom system, there was not much difference in the extra amount these two groups of buyer were willing to pay.

What Does It Mean to REALTORS® and Their Clients
The information provided in the Profile provides insights into the priorities of home buyers. For instance, sellers considering putting their home on the market may want to consider what “buyer preferred” features might be added to the home before it is listed. By so doing, the home could attract more buyer traffic, and likely increase the sales price. REALTORS® who are working with clients to sell homes can more accurately determine the “value” of each home feature and thus determine a proper listing price. The data and analysis in the 2007 Profile of Buyers’ Home Feature Preferences is another tool for real estate professionals to use as they market their clients’ homes to potential buyers.

The 2007 NAR Profile of Buyers’ Home Feature Preferences is based on a survey conducted earlier this year. The 39-question survey questionnaire was mailed to a random national sample of 40,000 home buyers who purchased a home between late 2005 and early 2007. The survey gathered information about those features that buyers considered very important when searching for a home and whether or not those features were present in the home they actually purchased.

Copyright National Association of REALTORS®, Reprinted from REALTOR.org with permission.

International Buyer Impact

Last month, I utilized this space to discuss the second-home market as a whole. In the meantime, the results of a very interesting survey have recently been released by the National Association of Realtors® regarding second-home purchases made by international buyers. Americans have most often viewed home ownership as a stable long-term investment, and it appears that many buyers from foreign countries agree. The survey used the time period of April 2006 through April 2007, and the results lean toward the conclusion that although the housing market in the United States has slowed down since the incredible 2000-2005 boom, our national real estate market is still a popular option for numerous international buyers.

The report highlighted the preferences of international home buyers in the areas of type of property purchased, purpose of property, median price paid, type of financing used, and where the property was located.

The profile of a “typical” international home buyer would begin with the inclination towards a detached single-family home or townhome, which is also true for U.S. home buyers. However, buyers from foreign countries tend have a stronger preference for condos or apartments than buyers from the United States, with those sales making up 22% of the homes purchased during the survey period.

As for the rationale of why a second-home is purchased in this country, a full 47% of the homes were purchased with the intent of being used simply as a vacation home for family and friends. This category was followed at 31% by being used as both a vacation home and a rental or investment property. And finally, 22% planned to use the home strictly for rental and investment purposes.

It can be estimated that the international buyers are also leaning towards some of the nicer properties in the United States. Though the national median price in 2006 for residential real estate sold was $221,900, the median price for international buyers was $299,500. And even considering that the majority of this market segment (28%) was for homes under $200,000, a full 14% of the homes were sold for over $750,000.

Like domestic buyers, the majority of foreign home buyers obtained a mortgage to purchase their second home. However, 28% of foreign buyers vs. 8% of U.S. buyers paid cash for their home. Reasons for this could be due to simply more cash on hand by the international buyers or perhaps the absence of tax benefits for carrying a mortgage in the homeowner’s country of origin.

Robyn Erlenbush is owner of ERA Landmark Real Estate (with offices in Bozeman, Big Sky, Livingston and Clyde Park) and Intermountain Property Management. She can be reached at robyn@eralandmark.com.

Visit us at http://www.eralandmark.com & http://www.stuartandsally.com

Why NOW is the best time to buy…

WHY NOW IS THE BEST TIME TO BUY

For the past year, the media has reported increasing housing inventories creating over-supply, declining numbers of home sales, and basic “Real Estate Doom and Gloom.” It seems all you hear on the news is “Real Estate Market Boom Now Bust” or “Sellers Find Difficulty in Real Estate Market” and the perennial favorite “The Real Estate Bubble has Burst.” Now, that mindset is changing. More and more national real estate experts agree that market conditions are stabilizing and moving to a “new normal.” Historically real estate has been a very safe, secure long-term investment. In the months and years to come, you will see a return to more normal single-digit returns and stable markets.

The last five years brought a new-found frenzy to an otherwise solid investment arena. As speculators poured into rapidly appreciating real estate markets, prices soared and many buyers looking for their first home were priced out of the market. These speculators were not interested in living in a specific community; their investment strategies were based only on the fast-paced ability to “flip” properties within a matter of months. The speculative dollars unduly influenced and inflated marketplaces overnight and have caused havoc in many overheated real estate markets.

According to David Lereah, National Association of Realtors chief economist, that is all changing with markets stabilizing and overall home price gains in the near future to be more modest. “Home sellers are becoming realistic about current market conditions and are now offering more competitive pricing, in addition to some incentives or concessions, especially to help first-time home buyers,” said Lereah. “We now have the most favorable market for home buyers in several years, and most sellers (who’ve been in their homes for a normal period of homeownership) are still seeing very healthy returns on their investments. Conditions for buyers have improved because sellers are flexible now and mortgage interest rates are near historic lows. The market promises to be more balanced by early spring, supporting future price growth.”

Low interest rates allow a substantially larger population of Americans to own their homes. The average 30-year fixed-rate mortgage remains near 40-year lows. Currently at 6.4 percent, this is more than an entire percentage point below 2000 levels. Combine low interest rates with lower home prices and suddenly buying a home is a manageable task. Research indicates that home prices will not go substantially lower. While certain local markets may see limited price declines, the national picture remains bright. Former Federal Reserve Chair Alan Greenspan recently said that housing prospects are looking up. “Most of the negatives in housing are probably behind us. The fourth quarter should be reasonably good, certainly better than the third quarter,” he said. According to industry estimates, 2006 will be the third-best year on record for home sales.

High inventories give buyers more options when choosing their new home or investment property. Nationwide, the average market has inventory to last approximately 6 months. Presently, inventories are at 7-8 months supply with a record inventory of nearly four million homes on the market. However, total housing inventory levels fell 2.4 percent at the end of

September to 3.75 million existing homes available for sale. As inventory starts to decline, the selection of homes will once again become limited. For prospective buyers, there may never be a better time to buy a home than right now.

Choice is another item in the buyer’s favor. With increased availability, there is more variety of property on the market. In the most recent years, our marketplace had very limited selection in a given price range, which gave buyers very few options from which to choose. That has changed with current market conditions. Whether you are looking for a cozy in-town bungalow or an expansive rustic lodge on acreage, there’s more than likely a property on the market to meet your preferences.

Low interest rates, high inventories and selection are positive incentives for purchasing real estate, but perhaps one of the best reasons for purchasing now is that real estate is an outstanding investment. Though local housing markets periodically adjust to overall economic conditions, over the long term real estate has consistently appreciated. On a national level, home appreciation has historically increased 5-6 percent annually. Not only is homeownership a stepping stone to a future of financial security, it provides a permanent place to call home and enormous personal satisfaction.

The beauty of real estate as an investment is its total uniqueness. Our marketplace is a perfect example of the individuality and diversity of housing options. No two locations are exactly alike. Even identical floor plans can have totally different looks and ambience depending on lot orientation and views. While conditions for buyers are perfect now, that is likely to change next year as sales pick up, prices gain traction and conditions improve for sellers. Under current real estate market conditions, the best time to buy is now.

 

Thanks to Robyn Erlenbush for her great article!