Airbnb is Getting Into the Real Estate Industry

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I recently wrote a blog that discussed the effect of Airbnb, the popular sharing economy service, on real estate. In that blog, I mentioned that Airbnb could prove to be a real threat to the real estate industry. The service is already disrupting the hospitality industry and has caused a bit of a stir in real estate, but its latest venture could drastically impact both industries.

 

According to a report from Fastcodesign.com, Airbnb is partnering up with a South Florida-based development company, Newgard Development Group, in order to construct an apartment building specifically designed for the sharing economy. Depending on the success of the building, Airbnb could roll out several more buildings throughout the country.

 

Dubbed “Niido,” the apartment building will exclusively host Airbnb rentals and feature 324 units. Niido is being constructed in Kissimmee, Florida.

 

Airbnb has been looking into making deals with apartment complexes for sometime, but has been limited by legal restrictions. By partnering with a development firm to build its own apartment buildings, the company can completely avoid those issues.

 

The Niido building is being specifically designed to accommodate the average sharing economy user. Niido will feature wide open common areas in the hopes that visiting travelers will interact and engage with each other; units will feature home offices that can easily transform into a spare bedroom; each unit will feature bathrooms and kitchens constructed of durable material that is also easy to clean; units will include small safes for travelers to store their personal belongings; each unit will work on a keyless entry system that only grants access during the duration of a visitor’s stay and tenants will be able to access both home-sharing and maintenance services through a single app. Newgard Development and Airbnb have truly pulled out all of the stops in order to provide a unique experience that will hopefully push the sharing economy industry forward.

 

With the Niido building, Airbnb hopes to create something of a small community. A portion of all standard Airbnb booking fees will go towards community projects, such as cooking and art classes. This will help to create a sense of community and offer a great experience and a better reason to stay in a Niido building.

 

Should Airbnb’s Niido building take off, the company could drastically encroach on the real estate industry. What are your thoughts? Do you want to see Airbnb make their own apartment complexes or would you rather they stick with what’s been working?

Where Will Amazon Build its New Headquarters?

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Unless you’ve been living under a rock, you are familiar with Amazon. What once started out as a small, online book store has grown into the world’s largest online retailer and one of the world’s largest retailers, period. Currently, the company is headquartered in Seattle, Washington. However, the company is continuing its growth, and it is looking to build a secondary headquarters. And several cities across the nation are vying for the opportunity to become the newest headquarters for one of the world’s largest companies. Now, the question remains: where will Amazon call its second home?

 

Since Amazon announced its nationwide location hunt, multiple cities around the country have all flocked at Amazon’s door to bring the company, and the prospective 50,000 jobs that it entails, to their town. And Amazon has not been shy about what it wants from its new hometown. In an official statement from Amazon, the company announced that it will accept applications from cities while looking at six core factors: tech labor force, fiscal health, cost of living, college population, culture fit, and state tax rank.

 

At the moment, there seem to be a few cities that are prime contenders. These cities are: Dallas, Boston, Washington D.C., Atlanta, Chicago, Denver, New York, Nashville, Austin, Minneapolis, and even Newark. Surprisingly, another major contender on the list appears to be Seattle, Washington.

 

The e-commerce company has received at least 238 applications, many of which are from major metropolitan areas. Others are from much smaller areas, like Rockdale, Texas, whose population maxes out at 5,628.

 

Whichever city is chosen to house Amazon’s newest headquarters will likely be looking at some great benefits. Firstly, the building will cost several billion dollars to actually build, and, as previously mentioned, the new headquarters will create around 50,000 jobs, which is certain to stimulate the local economy. The lucky city will also become something of a tech haven overnight.

 

I am not only interested in seeing where Amazon decides to set up shop, but also how this decision ultimately affects the surrounding area. When a major corporation like Amazon builds a new campus, things are bound to change drastically; and not always for the better.

 

What are your thoughts? Where do you want to see Amazon build their second headquarters?

4 Key Tips For Selling Land And Lots

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You may think that selling land is the same as selling a home, but in reality the two are very different. In a changing real estate market, it is hard enough to sell a house, but selling land and lots can be even more challenging.

So what exactly is it that makes selling land and lots so different from selling a house? First of all, land and lot buyers are different from homebuyers. They have different needs and perspectives. While homebuyers want a home they can move into, land buyers are looking for the opportunity to customize the land to fit their needs. Selling land also requires different sales techniques, and the market for land is significantly less active than the market for existing homes. Additionally, it takes longer to sell a lot or vacant land, so the process requires patience.

Here are a few steps you need to take to successfully sell land and lots:

Understand your buyer.
When you’re selling land, it’s important to evaluate who your likely buyers will be. This depends on what type of property you’re selling, the location of the land, whether it has been developed, the market conditions and more. There also may be different buyers depending on whether it is a parcel of suburban land, a finished lot or rural acreage. After you’ve identified your likely buyers, try to think like them so you know what message to convey.

Make sure the land or lot looks presentable.
Before showing your lot to potential buyers, you’ll definitely want to clean it up. First impressions are extremely important in real estate. Make sure you remove trash and cut the grass. When your property is looking its best, take marketing photos. Some people who are selling vacant land will even plant wildflowers to make the land look more appealing.

Choose your price.
Picking a price is something that you need to put a lot of thought into. One of the biggest mistakes sellers make is pricing their lot or land too high. Pricing land can be harder than pricing a home. If you’re selling a developed lot in a community, you may be able to determine the “market” price based on the sale of similar lots. Raw land is a bit more difficult since there isn’t as much to compare to. The price you can attract for undeveloped land or a singular lot can vary based on the buyer’s intended use of the property. Land that a buyer feels is suitable for a high-end home development will likely bring a higher price per acre than land that a buyer only wants to use for a single home.

Use online listings specific to land and lot buyers
You’ll want to market to land and lot buyers in particular. While MLS is a helpful tool, it is focused on marketing existing homes. Therefore, it you want to sell land or a lot, MLS should not be a the only tool you use. Use a tool that is specifically for these listings, such as LotNetwork.com. Make sure that when you writing your listing, you understand your buyers and provide the information that they are likely to need.

Selling land and lots can be wildly different from selling a home. There may be some added difficulty, but with these tips you’ll be able to successfully sell your land or lot to a satisfied buyer.

Three Tips For Buying and Developing Raw Land

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Buying raw land can be a very fulfilling experience. Seeing that a piece of nature is now yours not only fills you with pride, but provides with you a number of other benefits. Buying raw land is a very smart move financially. All across the country, especially in rural areas with small populations, reasonably priced raw land parcels are available for purchase. And it’s a pretty good investment! If you buy the right parcel of raw land, it will continue to appreciate. You won’t have the stress of a fluctuating investment that you experience when purchasing stocks.

There is also a lot of earning potential that comes with developing your land. It can be a house, a hotel, farmland or a recreational facility. By developing your raw land, you can increase the value of your land by three to five times its original price. But this can only happen if you buy the right parcel and develop it properly. Here are a few tips for buying and developing raw land.

1) Be aware of the drawbacks

Investing in raw land can be of enormous benefit, but it also has its drawbacks. It is not possible to depreciate raw land, and while there are some tax advantages associated with raw land, these advantages are few and far between. Another important thing to remember is that any purchaser of raw land needs to be in it for the long haul. Even if you start developing it once you buy it, it may take a long time for you to gain any profits. You aren’t likely to be able to sell it quickly. And if you do eventually sell it, there is a risk of losing money, which increases if you do not fully evaluate the parcel before purchasing it.

2) Thoroughly investigate the land parcel.

Before you purchase raw land, make sure you get all of the information you can about the land parcel. Walk through your potential land purchase in order to locate ponds, trails, fence lines, and streams. It is also a great idea to take photos of the property to refresh your memory later. Make sure to find the boundaries of your property and to look for any signs of hazardous waste. It’s also crucial that you research the area that the land parcel is located in. Speak with regional development agencies to get any information you can about planned roads, building costs, utility extensions, or development forecasts. Research whether the population is growing or shrinking. The more information you gather about the land, the more likely you are to make the right decision. And you’ll be spared a number of negative surprises in the future.

3) Consider the factors that affect value

When you buy a parcel of raw land, you hope that this will ultimately bring you profits. One way to gain a profit from your land is to sell it after developing it. While the value of your land may partially depend on the way you develop it, it also has to do with other factors. One of these factors is the shape of the parcel. Make sure to view the dimensions of the property that you are considering. Another aspect that affects value is of course the location. The best parcels for development are corner lots with easy access to roads and parking. Also to be considered is the level of access to sewers, natural gas, telephone service, drinking water and electricity. Trees and streams can add a good deal of value to land as well. Making sure that your land has good value is extremely important.

Buying raw land is a big decision that involves a certain level of risk. It could either be very lucrative or it could flop. Make sure you take all aspects of a land parcel into account before purchasing. If you do your research, your raw land development endeavors will be a huge success!

Three Secrets To Selling Your Home

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Selling your home can be tedious and difficult. Sometimes it seems as if many people are walking in and out of your home, but none of them are willing to buy. We all know that we’re supposed to make the house more appealing for buyers, but it is difficult to know exactly how to go about this. Sometimes it is the little things that make a big difference. Here are a few secrets to help you sell your home quickly.

1) Price It RightThere is a general rule of thumb for pricing a house. Do some research to find out what it is worth, and then shave off 15 to 20 percent of the price. Not only will buyers flock to your home, but they will bid up the price higher than what it is worth. This pricing will give you a competitive edge because most home sellers are afraid to price their homes this way. While it is easy to give in to the fear of losing money by putting your home on the market for less than it is worth, it is the proven best strategy to sell a house in the current market.

2) Prioritize your kitchen

The kitchen in the single most important room in your house when you’re selling your house. It may cost money to remodel your money, but it will definitely be worth it in the long run. In fact, you’ll probably get 85% of your money back. Fixing your kitchen will make about a $10,000 difference in the asking price. If your kitchen looks dated, that $10,000 is likely to be knocked off the price by any smart buyer.

You may be wondering how exactly you can update your kitchen. The quickest and least expensive kitchen updates are getting new cabinet hardware and painting the walls. When picking a paint color, it is best to choose a neutral color so that buyers are presented with a blank canvas. This will allow them to envision their own changes they may want to make to the house. If you have enough money, one stainless steel appliance is a great investment. If people see one high-end appliance in your kitchen, they are likely to assume that the rest are expensive as well, thus creating the effect of an overall update to the kitchen.

3) De-personalize your house

When you show your house to potential buyers, it should appear like more of a house than a home. If you leave a lot of your own personal touches in the house, potential buyers will have more difficulty imagining themselves living there. Put about a third of your belongings in storage. Some important things to put away are personal keepsakes and family photos. You may even want to hire a home stager in order to showcase your home in the best way possible. A stager will arrange your furniture in a way that best displays the floor plan while also maximizing the use of space.

4) Make a great first impression

You only have one chance to make a first impression. In this case, this means increasing your home’s curb appeal. Many people think about focusing on the interior of their houses, but potential buyers judge homes long before they walk through the door. It is a good idea to get some inexpensive shrubs and brightly colored flowers to make the house appear welcoming. You usually get 100-percent return on any costs that went into making the exterior of the home more appealing. It is also important to make your entryway welcoming. While many people typically hang their coats in the entryway, it’s best to change this up when selling your home. A great idea is to place a vase of flowers, a small bench or even some cookies near the entryway.
Selling a home can be challenging, but it certainly doesn’t have to be. A little bit of effort goes a long way in selling your home to potential buyers. Follow these tips and buyers will be swarming to your home. From the kitchen to the curb, make sure your house appeals to buyers and it will get sold in no time!

2016 Real Estate Trends

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According to an article posted on realtormag.com, 2015 was quite possibly the best year for real estate since 2007. It is projected that the housing market will continue to expand and might even see even better results in 2016. What’s next for the housing market? One of the fundamental forces leading to this expansion in 2016 is the prediction that the job market will continue to develop, allowing consumers to save money and permit them to buy their first home or move to another one. Here are the 5 trends:

A RETURN TO NORMALCY

Jonathan Smoke,realtor.com’s chief economist, states, “We’ve survived 15 years of really irregular patterns, and subsequent to working off the staggering impacts of the lodging bust, we’re at long last seeing indications of more typical conditions.” There will be a steady and sound development in the sale and prices of homes in the coming year. Sales and new construction are due to return to previously recorded levels.

THE MILLENNIAL MARKET

Millennials deliantaed almost 2 billion deals in 2015 – 33% of home purchasers. It is expected that millennials will play a large role as first-time home buyers in 2016, with many “financially recovered” Generation-Xers and newly retired baby boomers following suit. Smokes states, “Since most of these people are already homeowners, they’ll play a double role, boosting the market as both sellers and buyers,Gen Xers are in their prime earning years and thus able to relocate to better neighborhoods for their families. Older boomers are approaching (or already in) retirement and seeking to downsize and lock in a lower cost of living.”

AFFORDABILITY

Manufacturers have been confronted with higher area costs, restricted work, and worries about the interest of the market at the entry level. All things considered, they have moved to developing more expensive homes, which has created new-home costs to rise essentially speedier than existing-home costs. In 2016, they likely will move to more moderate products in order to meet the needs of “entry-level buyers”.

MORTGAGE RATES WILL INCREASE

Mortgage rates will probably be unstable in 2016. Be that as it may, the latest move by the Federal Reserve to guide loan fees higher ought to push contract rates higher in the new year than the recorded lows they have been at for a considerable length of time. Smoke states,“That level of increase is manageable, as consumers will have multiple tactics to mitigate some of that increase. However, higher rates will drive monthly payments higher, and, along with that, debt-to-income ratios will also go higher.”

INCREASE IN RENT

Rental expenses are soaring, and the expenses are liable to just go up in the new year.“Rents are accelerating at a more rapid pace than home prices, which are moderating,” Smoke says. “Because of this, it is more affordable to buy in more than three-quarters of the U.S. However, for the majority of renting households, buying is not a near-term option due to poor household credit scores, limited savings, and lack of documentable stable income of the kind necessary to qualify for a mortgage today.

 

3 Reasons To Consider Selling Land At An Auction

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Many of us tend to shy away from property auctions. Our fear that these properties need repair or will be unkempt is not always the case.  Auctions can also be a great way to sell well keptproperties and lots. Below are a few things we should contemplate when it comes to selling land at an auction:

Cost

Land auctions make an opposition among purchasers and wipe out the issue of valuing too high or too low. A base offer can be set to begin the procedure, however the high offer might very much surpass the value set for a customary deal contingent upon the quantity of bidders and their eagerness. In a general auction process, estimating too high can bring about the listing of a property to mull; offering your property at a low price will not allow you to achieve maximum price potential.

Target Date

Land auctions cement the time span for the business process. You determine the date for the auction and terms for the deal (frequently 30 days). Whether you’ve been attempting to offer your property for quite a while or are burnt out on conveying the expenses, an auction might give the specific timing that you need. Instability is a standout amongst the most disappointing parts of selling land and auctions eradicate a bit of that vagueness.

The art of negotiation

Land auctions permit the seller to set the terms of offer from the beginning and dispose of the bother of negotiations. You’ve effectively secured the of date of the deal, now you likewise can set the time span for the closing. Buyers go to the deal the with intent of purchasing on your terms and hence straying from the bother of negotiations, which at times gets to be passionate and disappoints both buyers and sellers.

Thanks for reading!

Carter Boehm

 

Top Cities Developing Micro Apartments

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In a previous blog, the considerations and reasons behind the popularity of micro apartments were discussed. Now let’s take a look at some of the cities across North America that are developing these unique and  cutting-edgeproperties. Keep in mind the following properties are either still being considered, in the process of being built, or have already been built:

  • Columbus, OH. A company named Connect Realty is constructing a building consisting of nearly 58 micro apartment units starting at 450 sq ft.
  • Chicago, IL. A company named, FLATS Chicago has been rebuilding  single resident occupancy buildings and transforming them into inexpensive micro apartments.
  • Orlando, FL. A German architect is planning to build a micro apartment building with units that will allow a number of transforming elements and will range from 260 to 447 sq ft.
  • Portland, OR. Portland is already well-known for its abundance of tiny houses. In recent months, many companies such as Footprint Investments have developed a number of micro styled living options including but not limited to the popular Freedom Center.
  • Denver, CO. Plans for an old hotel located in close proximity to Mile High Stadium include the Nichols Partnership and Developers Realty Capital Group transforming the property into residential building called Turntable Studios. This rental property will consist  of 170 micro apartments, some as modest as 330 sq ft.
  • Spokane, WA. The Ridpath Club Apartments in Spokane is also micro apartment building formerly known as a hotel.
  • Nashville, TN. A 500 sq ft, 146 micro apartment building unit is being constructed by Giarratana Nashville LLC.
  • Edmonton, AB. Beljan Development is requesting to build a 40 unit residential building with micro apartments no bigger than 350 sq ft.
  • Providence, RI. Providence is an inexpensive location with an abundance of properties to accommodate those who wish to partake in micro apartment style living. One of the most popular micro apartment buildings, The Arcade is unique in the sense that it provides micro loft apartments on the second and third level but still operates as a mall on the lower level.
  • Des Moines, IA. The popularity of Des Moines inexpensive micro apartment building, The Flemming, is clear to see. The building is currently no longer accepting applications for units due to being full to capacity.

North Carolina’s Airport Development Study

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North Carolina’s Airport Development Study

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Charlotte Douglas International Airport received its present name in 1982 and is the second biggest center point for American Airlines after Dallas/Fort Worth International Airport, with administration to 175 residential and universal destinations. This airport is continuing to develop and needs to make another all-inclusive strategy to guide future advancement on the area encompassing the air terminal.

Charlotte Douglas is encompassed by extensive tracts of undeveloped area, particularly toward the west and north, and the city would like to support more improvement in those tracts. In an effort to assist with development, Charlotte City Council voted in favor of spending $900,000 worth of air terminal assets for an expert to concentrate on the range and suggest best uses for the area.

The airports lead development director, Stuart Hair, will lead the study along with MXD Development. The MXD Firm has previously made ground-breaking strategies for other air terminals and its experts will concentrate on recognizing perfect utilizations for the 20 square miles of area surrounding the freely subsidized Charlotte Douglas.The area between the airport and Catawba River has been surveyed by engineers and although it is for the most part lush and undeveloped, it offers a percentage of the biggest tracts of empty area in Mecklenburg County.

The hefty price tag came as a shock to many. Questions of whether or not nearly a million dollars was absolutely necessary to investigate how to develop the airport have been raised. Those in opposition of the study believe engineers only need proper market conditions instead of creating a master approach. However, those in favor of the development plan argue that because of the extent of the study range, broad effort and gatherings that are arranged by the specialists make the study a worthy investment.

 

A World Reimagined- Building A City With Autonomous Cars

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Carter Boehm discusses how autonomous cars could rule our highways

 

 

Something strange is happening in Ann Arbor, Michigan. The shadow of an emerging city creeps over the landscape, and by passers remain mystified by this unknown change, whose presence they can now feel. This shadow, this growing city over the landscape has been called -Mcity. Mcty is a place where transportation consists solely of robotic vehicles that steer themselves without a human at the wheel. This new innovation- driverless cars, must navigate several miles of the urban grid using a complex reliance on software, wireless communications, and sensor technology to get to and from their point of destination. Sounds impressive right? Well Mcity is just a simulation.

The buildings, as Urban Land Institute reports, “ are just facades, and the inhabitants unexpectedly step off curbs are just mechanized mannequins. Jonathan Levine, a University of Michigan professor of architecture and Urban Planning told the magazine “ You wouldn’t mistake it for a movie set, let alone a real city.” A new study introduced this year, relayed that the Boston Consulting Group, major automakers such as General motors are already rushing to add gadgetry that would give these cars an ability to pilot themselves on a low speed, stop and start traffic- jam conditions or in single lanes on highways, or even to find parking spaces and pull into them without human help.

This technology could really change the way we see our landscapes, in the same way that the urban street car or interstate highway was instrumental in developing the suburban and urban landscape in the US. “I think it’s going to be the most important transformational change in 100 years,” says Randall K. Rowe, chairman of Green Courte Partners, an Illinois-based private equity real estate investment firm. “It’s going to change the way we get around, the way we transport goods, and how we look at land use.”

Many experts in varying fields believe that driverless cars could start a revolution in the way we live. In a previous post, I mentioned some of the propositions for a walkable city. Well, not everyone is in full agreement with the Mcity model. Many worry about safety first, even though autonomous vehicle advocates point to Google’s experience, in which its experimental vehicles have travelled for 1.7 million miles on regular road, and a total of 11 minor accidents to its name. There are other debates on the table which present the argument that autonomous cars can free our roads of distracted drivers, and this in turn could make our cities even much more walkable.

Whether a city is walkable or driverless, it is important to remember that technological advancements in society have the ability to impact our landscape in a way that could potentially benefit or drive us out of our living spaces.

To learn more about MCity and the reimagination of a city without drivers, visit this article by Urban Land Institute