The Art Factor Boosts Housing

Public art has been linked to building booms and price increases for residential real estate. That's why developers and city planners alike are working to weave art throughout new real estate projects and public spaces.

“Developers are beginning to see that if they want to attract tenants, they have to offer them more than just four walls,” says Barbara Goldstein, a public art planner and consultant in San Jose, Calif. “We’re going to see more and more of this kind of thing.”

The art effect can be seen in real estate across the country. For example, Chicago’s Millennium Park, which opened in 2004, features open-air galleries and interactive public art. After its opening, the prices of nearby condo buildings skyrocketed. Some in the city credited the “Millennium Park factor” for the area’s real estate growth by about 10,000 new units over the following decade and $1.4 billion in residential development (as estimated by an economic impact study by URS and Goodwin Williams Group). 

A suburban Brookland neighborhood in northeast Washington, D.C. now features Monroe Street Market, which is a five-block mixed-use development that includes two buildings devoted to artists’ studios on the ground floor. The studios have glass doors and are part of an art walk in the community. When the development first opened in 2014, the median home list price in its ZIP code was $474,000. By 2017, the median price had jumped to $598,400, a 26.2 percent increase in three years, according to realtor.com® data. 

The High Line in New York is a one-mile park that reclaimed an abandoned elevated railroad track to become a tourist attraction. The park features art and attracts 1.3 million visitors each year. The real estate prices and development near it have soared since its opening in 2014.

“People really want to be near these great, iconic places or things that make a city recognizable,” says Scott Stewart, executive director of the Millennial Park Foundation in Chicago. “A lot of these spaces where you’ve created something spectacular out of something less than desirable … those are attractive. They naturally draw people to them.” 

SOURCE: DAILY REAL ESTATE NEWS

Any questions or comments, feel free to contact James Y. Kuang at (626) 371-5662 or by email: james.kuang@coldwellbanker.com      

$10,000 Cash Savings Guarantee! - VIP Buyer Program: www.VIPBuyingToday.com

Limited Time VIP Buyer Bonuses:

BONUS#1: One year home warranty policy ($497 value)

BONUS#2: Lifetime notary service (in office)

BONUS#3: Financial Impact Analysis

www.EasyHomeResource.com

www.facebook.com/JamesYKuang

How to Triumph in a Bidding War

With a record low number of listings this spring, more buyers may be finding themselves in a bidding war for the home they want. CNBC recently highlighted a few tips on how buyers can be successful in a bidding war, including: 

Set the maximum price from the start. Home shoppers should factor in the monthly mortgage payment, property taxes, homeowners insurance, and any homeowner association or condo fees. They’ll want to arrive at a general estimate of maintenance for the home, too, such as lawn care and repairs. When the bidding gets too high, buyers need to be prepared to walk away. 

Pay with cash. An all-cash offer is an advantage in a bidding war. Buyers who come with cash double their chances of winning at a bidding war, according to the real estate brokerage Redfin. Some buyers will even pay all cash to win the home and then take out a mortgage after the deal closes. 

Waive the financing contingency. Buyers who waive a contingency on their loan having to be approved by a lender first may better their chances. But this can be a gamble. Home buyers need to be careful that they don’t end up having to pay in cash if the loan doesn’t go through. Buyers should get a fully underwritten loan preapproved from a lender prior to submitting an offer. They’ll stand to possibly up their chances of winning a bidding war by 58 percent with a preapproval, according to Redfin’s analysis. 

Write a personal letter to the seller. Buyers can try to appeal to sellers’ emotions and let them know that they intend to take good care of their home. Young families may write about how they intend to raise their children in the home and the life they envision there. CNBC suggested not writing about how you intend to remodel the home or do a complete makeover.

SOURCE: DAILY REAL ESTATE NEWS

Any questions or comments, feel free to contact James Y. Kuang at (626) 371-5662 or by email: james.kuang@coldwellbanker.com      

$10,000 Cash Savings Guarantee! - VIP Buyer Program: www.VIPBuyingToday.com

Limited Time VIP Buyer Bonuses:

BONUS#1: One year home warranty policy ($497 value)

BONUS#2: Lifetime notary service (in office)

BONUS#3: Financial Impact Analysis

www.EasyHomeResource.com

www.facebook.com/JamesYKuang

Flood Insurance Premiums Are About to Go Up

Many homeowners and buyers in flood-prone areas will see higher flood insurance premiums starting April 1. The premium hikes, which are required by law, will be as little as 2 percent for some properties and as high as 24 percent for others. On average, the increase will be about 8 percent.

“The National Flood Insurance Program requires premiums to rise on certain classes of properties over a period of years until they’re paying the full actuarial rate on their risk,” say analysts with the National Association of REALTORS®. “The 8 percent average increase is right in the range of increases for the last couple of years, so there’s nothing unusual here. It’s just the standard rate increase.”

Under the change, the rate for a primary residence in an area deemed by the government to be a flood hazard will rise by 5 percent on average. That applies to so-called pre-FIRM properties, which are properties built or substantially improved before 1975 or before the initial Flood Insurance Rate Map was issued for the area by the federal government. Pre-FIRM properties that are second homes or used for business will see higher increases, possibly close to 25 percent. Those sharp increases have been in place since 2012.

Learn more about the rate changes in a bulletin released by the Federal Emergency Management Agency, which administers the National Flood Insurance Program.

SOURCE: DAILY REAL ESTATE NEWS

Any questions or comments, feel free to contact James Y. Kuang at (626) 371-5662 or by email: james.kuang@coldwellbanker.com      

$10,000 Cash Savings Guarantee! - VIP Buyer Program: www.VIPBuyingToday.com

Limited Time VIP Buyer Bonuses:

BONUS#1: One year home warranty policy ($497 value)

BONUS#2: Lifetime notary service (in office)

BONUS#3: Financial Impact Analysis

www.EasyHomeResource.com

www.facebook.com/JamesYKuang