All Posts Tagged With: "pricing"
Why Retail Real Estate Is In Trouble
Mortgages, foreclosures and lagging home sales dominate much of our real estate discussions these days, but have you noticed the large number of empty stores near your home? Have you seen the vacancies and noticed more parking at shopping malls? Randyl Drummer with CoStar writes that commercial rents have fallen 10 percent since 2008. Given [...]
1Aug2011 | Peter G. Miller | 0 comments | Continued
2009 Home Sales Up, But Values Down
Real estate sales reached nearly 5.2 million in 2009, up 4.9 percent from 2008 according to the National Association of Realtors. The increase was the first annual rise since 2005. In terms of prices, NAR says for all of 2009, the median price for a single-family existing home was $173,200, down 11.9 percent from 2008. [...]
26Jan2010 | Peter G. Miller | 0 comments | Continued
Up or Down — How To Measure Your Local Real Estate Market
The past year has seen a slowdown in real estate markets across the country — and an outright slump in many. But such terms as “slowdown” and “slump” are relative and should be used with care — as should “boom” and “hot”. Given the localized nature of real estate, it pays to ask if there [...]
20Sep2008 | Peter G. Miller | 0 comments | Continued
What To Do In A Falling Real Estate Market
The seller was at wit’s end, a not unreasonable location given that the asking price for her beloved abode had fallen by $100,000 and further reductions loomed ahead. The house in question is well-located and beautifully prepared, but the local marketplace has begun to ease. The vast and predictable price increases of the past few [...]
19Sep2008 | Peter G. Miller | 0 comments | Continued
What’s The “APR?”
The Annual Percentage Rate (APR) represents most — but not all — of the costs that will be charged over the projected life of a loan, costs such as interest and points. One catch is that loans do not normally last as long as projected. As an example, when points are paid, they are undervalued [...]
1Sep2008 | Peter G. Miller | 0 comments | Continued
How Do I Bargain With A Builder?
Builders are merely sellers. Their prices and terms are negotiable to the extent that market forces favor negotiation. Thus, if a builder is having an easy time selling out a project the chance to negotiate (get better terms) is poor. If the builder is having problems, then price and terms are likely to be very [...]
30Aug2008 | Peter G. Miller | 0 comments | Continued
What’s A Mortgage “Point?”
A “point” or “loan discount fee” is equal to 1 percent of the loan amount. For example, if you are borrowing $100,000, you would pay $1,000 per point, or $2,000 for 2 points. This money must be paid or credited at closing. In general terms, more points mean a lower interest rate, fewer points can [...]
28Aug2008 | Peter G. Miller | 0 comments | Continued
What is “par” pricing?
With par pricing, the lender will quote a rate with zero points. Instead of, say, “6.5 percent plus 2 points” you might get a quote of “7.00 percent plus 0 points.” The reason that interest at par is higher than interest with points is that points are merely a form of prepaid interest. If you [...]
28Aug2008 | Peter G. Miller | 0 comments | Continued
Shouldn’t Real Estate Sellers Take Less If We Make A Reasonable Offer?
Question: We recently sold our house in one state at a loss and now want to buy in another state. We made an offer on a home that was about 5 percent below the asking price. Our offer was rejected. What can we do to make the owners more reasonable? Answer: Who says the owners [...]
27Aug2008 | Peter G. Miller | 0 comments | Continued
Should I Price A Home On The Basis Of Its Rent?
Question: I want to invest in real estate. Is there a way to price homes based on rental values? Answer: No doubt you can compute a return on investment given a purchase price and such factors as improvement costs, net income, the value of depreciation, savings through amortization, and appreciation (if any). But then no [...]
23Aug2008 | Peter G. Miller | 0 comments | Continued
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