The Pros and Cons of Corner Properties

Some people see a corner lot as an asset, but an equal number believe it is a liability.

Pluses of these properties include more flexible design options, shorter driveways, sunnier interiors, and more on-street parking. The negatives are a small and not-very-private backyard, more noise, more streetlights and headlights, and a greater need to look out for dogs and children.

Additional maintenance demands, which bring higher costs, discourage some would-be buyers of corner properties, said Steve Hovany, president of Schaumburg's Strategy Planning Associates, a real estate planning consultancy.

But some buyers like corner homes anyway. A corner home "is a rare home," said Ray Hartshorne, partner with Chicago's Hartshorne Plunkard Architecture. "It's a home that's distinctive in a world that makes distinctive homes more valuable."

Source: Chicago Tribune

Sellers Aren't Cutting Prices

The number of home sellers listing on Zillow.com who lowered their prices in August was unchanged from July, the first time in five months that price cuts weren’t on the rise.

The median price cut was 7 percent in August, unchanged from July, Zillow calculates.

The largest price cuts were in the Tucson, Ariz., and Portland, Ore., metro areas. Home sellers reduced prices 39.5 percent in Tucson and 38.7 percent in Portland.

Source: Reuters News, Julie Haviv

Most Home Buyers Have No Regrets

A new survey shows that most home buyers have not regrets. To read the article in it's entirety you may click on the following link.

REALTOR® Magazine-Daily News-Most Home Buyers Have No Regrets

Investment Property: Four Considerations

Real estate entrepreneur Ryan Moeller offers these four tips for anyone considering a consumer real estate investment:

1. Don’t count on appreciation. Appreciation is a bonus.

2. Watch the loan-to-value ratio. Ideally, the total cost of the purchase, fees, and repairs should be no more than 70 percent of the appraised value of property in good condition.

3. Maximize annual return. Aim for properties that can be rented for at least 1.5 percent to 3 percent of the purchase price. For example, plan to pay no more than $50,000 for a property that can be rented for $750 per month.

4. Have an exit strategy. Seek properties that are attractive enough to have value no matter what happens to the market – as rentals, for sale to other investors, or for sale to somebody who plans to live there via conventional financing or lease purchase.

Source: BiggerPockets.com, Ryan Moeller (09/01/2010)