Real Estate Archives - Page 3 of 175

Apache is functioning normally

August 2, 2024 by Brett Tams

Well, that didn’t last long.

A mere 9 months after Tampa Bay Lightning defenseman Mikhail Sergachev splurged on a 6-bedroom home in the sought-after Beach Park neighborhood in Tampa, Florida, the 26-year-old NHL player listed the waterfront home for sale.

He didn’t have much choice though, as he won’t get to live in the 8,766-square-foot home after he was traded to Utah’s new expansion team.

The announcement that he would play for the still-unnamed team (now known only as the Utah Hockey Club) came on June 29. And just two days later, on July 1st, his Tampa home landed on the market with a $10,900,000 asking price (later adjusted to $10,600,000).

The house was newly built when the NHL player moved in last year, and it retains its glossy, freshly completed look — with the added perk that a star hockey player briefly called it home.

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His Tampa house is now listed for $10,600,000

Photo credit: Tony Sica Photography / Coldwell Banker Realty

The NHL player, who won back-to-back Stanley Cups with the Tampa Bay Lightning in 2020 and 2021, hired Jennifer Zales with Coldwell Banker Realty to help him offload his Tampa abode.

The modern bayfront home, set in the sought-after Beach Park neighborhood, is listed for $10,600,000 following a minor price re-adjustment that cut $300k off the original asking price.

Built in 2023, the home has close to 9,000 sq. ft. of living space

Photo credit: Tony Sica Photography / Coldwell Banker Realty

Completed in 2023 by Modesta Homes, the waterfront home has a generous 8,766 sq. ft. of living space with 6 bedrooms, 5.5 baths, a formal dining room, a movie theater, and quite a few standout outdoor amenities (including a waterfront pool with fire fountains). It also has a 10-car garage.

Given its waterfront location, the home was built with concrete blocks, impact windows/doors, and elevated living for flood risk reduction and optimal insurance premiums.

Interior finishes are pure luxury

Photo credit: Tony Sica Photography / Coldwell Banker Realty

The dramatic floating staircase, glass elevator, imported tile and custom lighting, and stylish interior design all work together to give the interiors an air of luxurious sophistication, softened by the expansive water views and large windows that flood the space with natural light.

A 360-degree fireplace acts as the centerpiece

Photo credit: Tony Sica Photography / Coldwell Banker Realty

Anchoring the living space is a striking 360-degree fireplace centerpiece that adds a dazzling fire element right next to the expansive water views.

You might also like: Wayne Gretzy’s former $22.9M California home — designed by ‘The Megamansion King’

It has a sleek, European-influenced chef’s kitchen

Photo credit: Tony Sica Photography / Coldwell Banker Realty

Not to be overlooked, the sleek chef’s kitchen has dark cabinets beautifully balanced by the white island counter and warm wood elements. Upscale additions include Wolf and Sub-Zero gas appliances, an additional prep kitchen, and a generous island.

Other standout living spaces and upscale amenities

Photo credit: Tony Sica Photography / Coldwell Banker Realty

Per the listing, exceptional living spaces include a generous office, formal dining room, movie theater, waterfront flex room, lounge, entertaining bar, loft/gallery, as well as a climate-controlled wine cellar.

Full retracting doors open up to the outdoor terrace

Photo credit: Tony Sica Photography / Coldwell Banker Realty

Making the most of its waterfront location, the house’s expansive doors retract to lead guests to the waterfront terrace, the first of many outdoor amenities.

The primary bedroom is equally stylish

Photo credit: Tony Sica Photography / Coldwell Banker Realty

The primary bedroom suite offers a sleek, modern aesthetic on par with the rest of the house.

And much like the lower level rooms, it opens up to a terrace and unobstructed water views; it also has a spa-inspired bath, deep soaking tub, custom floating vanity, and a closet.

The outdoor pool faces the bay

Photo credit: Tony Sica Photography / Coldwell Banker Realty

Outdoor amenities include a custom waterfront pool with fire fountains, a floating spa, outdoor kitchen, along with dual sun decks, dock and dual lifts (16K and 6K).

Pretty sure he’s not going to find anything like this in Utah — but I hear an HGTV star designer is also moving to Utah, so maybe she can help Sergachev create something equally luxurious after the move.

More stories

Newly built $21M luxury estate redefines waterfront living in Tampa Bay

A luxury Sarasota home with rooftop putting green sells for $12.5M, a Lido Shores record

Cool listings: A $16.5M modern beauty in one of Naples’ most exclusive neighborhoods

Source: fancypantshomes.com

Apache is functioning normally

July 30, 2024 by Brett Tams

There are quite a few homes throughout Minnesota that can be traced back to the legendary musician.

Paisley Park was Prince’s most famous property, with the 65,000-square-foot complex serving as his home, recording studio, and creative sanctuary.

But there was also his former Lake Riley mansion, his private retreat away from the public eye, plus a sprawling estate on Galpin Boulevard in Shorewood, the Purple Rain house in Minneapolis, and quite a few other, lower-profile properties mostly located around Chanhassen and Minnetonka.

Now, freshly landed on the market is a home that undoubtedly held a very dear place in the artist’s heart: a single-level 4-bedroom home in Golden Valley that Prince built for his mom, Mattie Della Shaw Baker.

Listed for a modest $699,900 with Coldwell Banker Realty’s Andrea Soule, the Golden Valley house has quite a few giveaways that it was once owned by music royalty. And its current owners took extra care in preserving some of the rockstar design elements after learning who the home’s former owner was.

Prince built the Golden Valley house for his mom, Mattie

Photo credit: Matt Sari / Square Feet Floor Plans

The Purple Rain singer, songwriter, and producer, born Prince Rogers Nelson, purchased the property back in 1985 and demolished the former structure to make way for the 3,231-square-foot home.

He then had the current house custom-built for his mother, jazz singer Mattie Della Shaw, who reportedly lived there with one of his brothers until she died, according to court documents filed in a legal fight against Prince’s estate after his death in April 2016. She passed away in 2002, at the age of 68.

The current owners weren’t aware of the home’s history

Photo credit: Matt Sari / Square Feet Floor Plans

When current sellers Alatheia Stenvik and Zachary Johnson bought their suburban Minneapolis home in 2020, they had no idea who its famous former owner was — until they signed the purchase agreement.

Nevertheless, the unique design, more reminiscent of music venues rather than suburban homes, drew them to the property. “It had this glamorous vibe to it unlike anything we’d seen before,” owner Alatheia Stenvik told Minneapolis’ Star Tribune. A vibe they sought to protect, even as they proceeded to renovate the 4-bedroom home.

The house retains some of Prince’s design choices

Photo credit: Matt Sari / Square Feet Floor Plans

“In our changes we didn’t want to take away the glam look it had. We wanted to keep the ambiance and its original style,” the owner said.

So they kept the home’s signature sunken living room — still outfitted with its original chandelier and railings — and the bold, black-and-white kitchen.

But it has quite a few upgrades

Photo credit: Matt Sari / Square Feet Floor Plans

“Our goal in all of the updates was to make it livable and clean, but we also wanted to keep all the original features of the home,” Stenvik told the Minnesota newspaper.

The couple installed new carpet throughout the house. They also painted the home and invested in some bigger upgrades — that included replacing the roof, gutters, and driveway, and adding a new bedroom in the basement.

Beyond the house’s glamorous past: The Specs

Photo credit: Matt Sari / Square Feet Floor Plans

Celebrity aspect aside, the home can hold its weight: Spanning 3,231 square feet, it comes with 4 bedrooms, 1 full bath and 2 half-baths, spacious living areas meant for entertaining, and 2 standout fireplaces, all set on a desirable corner lot near shops, restaurants, and a short drive to downtown Minneapolis. It also has a 2-car garage.

The outdoor areas

Photo credit: Matt Sari / Square Feet Floor Plans

Outside, a catwalk leads to a reinforced deck that can reportedly hold a hot tub. The lot spans 0.49 acres and backs up to a natural buffer by railroad tracks.

See also: Prince’s beach house in the Caribbean finds new owner, changes name to Emara Estate

It’s located in Golden Valley, Minn.

Photo credit: Matt Sari / Square Feet Floor Plans

Looking to build their own house on a farm, the current owners are ready to pass along the house to someone who can enjoy its many attributes — and great location.

Known for its dense suburban feel, many parks, and award-winning schools, Golden Valley is one of the best places to live in the Twin Cities metropolitan area. It’s also a stone’s throw from Minneapolis proper, making for an easy commute.

“A great home with its own unique place in local history”

Photo credit: Matt Sari / Square Feet Floor Plans

“Arriving at the property, the distinctive entrance welcomes you, evoking a sense of anticipation for what lies beyond the doors.”

“Inside, the large open layout, retro design elements like the sunken living room and unique bathroom tile, and catwalk to the deck, create the perfect setting for entertaining,” listing agent Andrea Soule says, before summing it up better than we ever could: “This is a great home with its own unique place in local history.”

Another Prince-owned house is up on Airbnb

Photo credit: Eric Ogden / Airbnb

If you’re not in the market for a new home but would love to walk in Prince’s footprints, Airbnb might have the answer. The vacation rental website has recently introduced Icons, a new category of extraordinary experiences for 2024 that will allow a few lucky travelers to stay in Prince’s Purple Rain house, among other equally desirable accommodations.

More stories

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Once home to Stevie Wonder, this Beverly Hills compound has views for days

From Jimi Hendrix’s Red House to Janis Joplin’s pink home, we revisit the most iconic rock star houses from the 1960

Source: fancypantshomes.com

Apache is functioning normally

July 29, 2024 by Brett Tams

Living small can have big advantages — particularly when it comes to cost. With fewer square feet to build, maintain, and keep lit, cooled, and heated, a tiny house can be far cheaper than more traditional iterations of the American dream.

Still, not all tiny houses come with tiny price tags. While it’s possible to build an off-the-grid tiny house for $10,000, some luxury tiny homes cost $100,000 or more. On average, a tiny home costs just over $50,000 to build, not including the price of the land it’s sitting on, though purchasing a prebuilt tiny home could rack up a higher price tag.

What Is the Average Tiny House Cost?

While, as we’ve seen, the cost of a tiny house can range significantly, the average price is usually somewhere between $30,000 and $60,000, according to Porch.com. Compare that to the latest median sale price for a non-tiny home — $434,000, according to real estate giant Redfin. (That’s before accounting for peripheral expenses like closing costs.) Bear in mind, though, that tiny house prices generally don’t include the land where the house will be located or the cost of any water, sewer, or electrical service hookup.

That’s a pretty hefty difference, although of course the tight housing market has an effect on the cost of prebuilt tiny homes, too. It’s not uncommon to see tiny homes listed for close to (or even over) $100,000, especially in highly desirable areas.

Many tiny houses are so relatively low cost that they don’t meet the minimum threshold to qualify for a home loan, although there are different types of mortgage loans and you can shop around to find a lender that might finance your home.

First-time homebuyers can
prequalify for a SoFi mortgage loan,
with as little as 3% down.

Questions? Call (844)-763-4466.

Tiny House on Wheels vs. Foundation

As you may already know, tiny homes can be built on wheels (though they’re not usually as mobile as standard mobile homes) or built on a foundation just like a larger home. Along with giving their owners some flexibility when it comes to location, building a tiny house on wheels can also change the price tag.

According to data from The Spruce, a tiny house on wheels costs an average of $60,000 to $80,000, while those built into foundations start lower — at $35,000 — but can run substantially higher, to $180,000.

Many other factors also play into the overall tiny home cost, too, which we’ll take a closer look at next.

Recommended: How to Get a Mortgage

Factors Affecting Tiny Home Cost

What other factors affect your tiny home’s bottom line? Here are some of the most impactful.

Size and Square Footage

While “tiny” is a fairly open-ended description, according to builder United Tiny Homes, these structures are generally between 100 and 400 square feet. There is some wiggle room on either end, though, and 500-square-foot tiny houses aren’t unheard of.

As you might expect, the larger your tiny house is, the more materials it takes to build — and therefore, the higher its price is likely to be. Still, since even the largest tiny homes are so much less expensive than traditional homes, it may be worth it to have just a little bit more room to roam.

Building Materials

Another factor that’s true for tiny homes as well as their larger counterparts: The higher the quality of the building materials, the more expensive the tiny home is likely to be. (However, it may also be able to withstand the test of time better, lowering overall maintenance costs and actually saving you money over time.)

However, some tiny home builders save by using recycled or reclaimed materials, which can substantially lower the overall cost (though make the project more time- and effort-intensive).

Labor and Professional Services

Labor is, of course, another major factor. If you’ve got the skills to build your tiny home yourself — or the patience to learn them — you stand to save thousands of dollars on what you’d spend to have a professional builder do it for you. How much does it cost to build a tiny house when it comes to labor? Construction work usually starts around $20 per hour, depending on the specific project, and that’s not counting the cost of materials and any overhead a contractor would charge. Professionals such as a plumber or electrician can run into the hundreds of dollars per hour.

Of course, when it comes to tricky and even potentially dangerous aspects of building a tiny home, like running electricity, professional know-how might be worth the price if you’re an amateur.

Building vs. Buying a Tiny House

When you’re budgeting for buying a house, bear in mind that buying a premade tiny home could be a lot more expensive than building one yourself — but as we’ve seen, you can also rack up a large overall bill on building your own if you rely on professional labor to do so. Here are some other considerations to keep in mind as you decide which route is right for you.

Custom Build

Having the opportunity to literally dream up your perfect tiny home and bring it to life might be priceless to you — and, again, if you’re able to DIY the project from start to finish, it might cost you less than buying someone else’s already-built dream. However, working with a contractor and architect to draw the blueprint and build the entire home from scratch could be a lot pricier. The good news is, tiny homes are popular enough now that services specifically designed to build tiny homes are more readily available.

Prefab or Kit Homes

Looking for a good middle road between a custom-designed, DIY tiny home and buying one that’s ready to go? Tiny home kits are available for prices starting around $12,000 or so — although this figure of course doesn’t include the land the tiny home will need to sit on, or the labor it’ll take to get it from flat to 3-D.

Used Tiny Homes

Buying someone else’s used tiny home is an option that could save you money — or cost you more, if the house has been carefully flipped and staged and is well marketed. Used tiny homes on wheels may be less expensive than those on foundations, but lots of factors play in, including geographical location, materials used, and more.

Recommended: Mortgage Calculator

Cost-Saving Tips for Tiny House Living

Here are some best practices for minimizing tiny house cost:

DIY Construction

Once again, if you have (or can summon) the know-how to build your own tiny house from scratch, you can shave a substantial portion off the final price tag. Plus, you’ll be better prepared for inevitable maintenance projects down the line — which means the saving opportunities just keep going.

Repurposed and Recycled Materials

Using repurposed and recycled materials can lower the cost of the physical parts of your building. In some cases, recycled and repurposed materials are available for free — though you may “pay” in the time it takes to find them.

Off-Grid Living

Finally, setting your tiny house up for off-grid living saves you money on utilities and city services like trash and water. By utilizing solar panels and a composting toilet, you can make your tiny house ready for the great outdoors — and self-sustaining enough to forego the regular monthly bills.

The Takeaway

While the cost of a tiny home can vary significantly, it’s almost always substantially lower than the cost of traditional, larger American houses — which can give those who live tiny big gains in terms of financial freedom.

Looking for an affordable option for a home mortgage loan? SoFi can help: We offer low down payments (as little as 3% – 5%*) with our competitive and flexible home mortgage loans. Plus, applying is extra convenient: It’s online, with access to one-on-one help.

SoFi Mortgages: simple, smart, and so affordable.

FAQ

What is the cheapest way to build a tiny house?

If you have the know-how, building your own tiny house from scratch with recycled and repurposed materials can save you thousands of dollars. Many knowledgeable tiny home owners have completed the project for under $10,000.

How much does it cost to hire a tiny house builder?

While labor costs vary substantially depending on where you live (and other factors), the cost of materials for most tiny homes is already around $50,000, and labor usually costs about $20 per hour. Which is to say, the overall cost to hire a tiny house builder can quickly approach $100,000, particularly if you want a custom design.

Can you get a loan for a tiny house?

Tiny homes are still a relatively new phenomenon, and some mortgage lenders’ policies have not yet been updated to work for them. Given their relatively low cost, the amount you need to borrow may be under the mortgage lender’s minimum. Personal loans are another option for those who want to finance a tiny house, but beware: Unsecured personal loans usually come at higher interest rates than secured mortgages, and the interest may not be deductible on federal taxes as it would with a traditional mortgage.

Photo credit: iStock/RossHelen

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*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

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Apache is functioning normally

July 24, 2024 by Brett Tams

While he may not have secured a spot on Team USA for the Paris Olympics, Boston Celtics shooting guard Jaylen Brown is fresh off a legacy-defining season.

The eight-year NBA veteran made his third All-Star team, won Eastern Conference finals MVP and Finals MVP, and helped the Boston Celtics win their first NBA championship since 2008.

And while he’s winning big on the court, he’s hoping to bank a personal win too. He just listed an industrial-style penthouse with a historic vibe he owns on Melcher St. in Boston’s Fort Point neighborhood for $4,750,000.

One of the highest-paid small forwards in the NBA, Jaylen lives in a sprawling 7-bedroom mansion in Wellesley, bought back in 2020 for $7.8 million. So he likely hasn’t lived in the Fort Point condo for quite a while.

Nevertheless, the Melcher Street penthouse reflects the sartorial icon’s style and features open-concept, industrial-yet-warm interiors that perfectly complement the building’s historic appeal. Let’s take a closer look, shall we?

Set in a Fort Point building on Melcher St.

Photo credit: Surette Media Group / Douglas Elliman

The stylish 2,964-square-foot penthouse sits atop a 1916-built brick building at 49 Melcher St. in Fort Point, the former industrial district along Fort Point Channel filled with historic lofts, art studios, and galleries.

The building is also home to a popular local steakhouse called Mooo…. Seaport.

It has 3 bedrooms and 2.5 bathrooms

Photo credit: Surette Media Group / Douglas Elliman

The unit consists of 3 bedrooms, 2 full bathrooms, and 1 half-bath, and a spiral staircase that leads to a generously sized rooftop deck.

It has a luxurious primary suite with a walk-in closet, and an en-suite bathroom with a double vanity and walk-in shower.

The MVP of townhouses

Photo credit: Surette Media Group / Douglas Elliman

“It’s the MVP of town houses. It really is,” real estate agent George Sarkis — who shares the listing with Manny Sarkis of The Sarkis Team at Douglas Elliman — says of the $4.75 million Fort Point penthouse.

“The open concept, the feel of it, the brick and beam,” Sarkis told Boston.com. “To see this at about a 3,000-square-foot scale is very hard to come by. Having one of Boston’s steakhouses in the building is a big bonus.”

The unit retains many of the building’s original features

Photo credit: Surette Media Group / Douglas Elliman

Much like the other historic homes and converted buildings around Fort Point, the building retains its most coveted original features.

Brown’s penthouse has exposed brick walls, oversized factory windows that flood the open floorplan with natural light, and a 12-plus-foot ceiling with the original wood beams.

Open-concept penthouse living

Photo credit: Surette Media Group / Douglas Elliman

The historic elements are beautifully complemented by modern additions throughout the open-concept floor plan, particularly in the kitchen, which has been equipped with top-of-the-line appliances and an eat-in island.

The large living area — comprised of living, dining, and kitchen — can easily be configured differently, should the future owner choose to do so.

The penthouse has a generously sized rooftop deck

Photo credit: Surette Media Group / Douglas Elliman

Heading up a spiral staircase, future residents and their guests can enjoy a private 400+ square-foot roof deck to take in the bustling city life below.

See also: Michael Jordan’s house is still on the market, 12 years after it was first listed for sale

Nowadays, Jaylen Brown lives in the suburbs

Photo credit: Surette Media Group / Douglas Elliman

As for where Jaylen Brown is heading next, we’re guessing he already made his choice years before listing his penthouse in the city.

Brown has been famously living in the posh Boston suburb of Wellesley, Massachusetts, known as one of the most expensive towns in the country.

Where he owns a 7-bedroom mansion bought in 2022

Photo credit: Surette Media Group / Douglas Elliman

Back in 2020, Jaylen Brown scored a $7.8 million deal for a massive 10,099-square-foot home in Wellesley that had previously been listed for $11 million.

Sitting on 1.53 acres of land, the mansion has 7 bedrooms, 9 baths, and boasts a farmhouse style with modern aesthetics.

His Boston penthouse is now on the market for $4,750,000

Photo credit: Surette Media Group / Douglas Elliman

Since he’s nice and settled in the suburbs, Jaylen is now parting ways with his Melcher St. penthouse, and has hired Douglas Elliman top producers George and Manny Sarkis of The Sarkis Team to help him offload the city residence.

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Tour two-time NBA All-Star Kiki VanDeWeghe’s house, as seen on ‘Buying Beverly Hills’

Source: fancypantshomes.com

Apache is functioning normally

July 23, 2024 by Brett Tams

“A national secondary market for construction financing could allow lenders, like state housing finance agencies and banks, to provide the investment capital needed to get multifamily housing projects built and keys in families’ hands.”

This is the conclusion of a new report published by the Center for Public Enterprise, a nonprofit organization that promotes the expansion of public sector projects.

Such lenders, the report states, could underwrite mezzanine construction loans under the assumption that a national housing construction fund would have the ability to buy these loans on the secondary market. This could make the overall cost to entry — which is already low — more digestible.

“The size of the investments needed to get typical multifamily housing projects moving is small: mezzanine loans covering less than 20% of project costs could bring average costs of capital down significantly, allowing shovels to get into the ground,” the report reads.

Due to the well-documented issues facing housing supply across the U.S., and coupled with high home prices and persistently high interest rates, multifamily housing starts have slowed despite low vacancy rates nationwide. But when demand comes back, new housing that “should have been built has not been, starting another price cycle,” the report explained.

Establishing a national housing construction fund has the potential to reduce burdens on builders and lenders caused by higher rates. It could also potentially create “an economic environment where housing production achieves a degree of insulation from the business cycle factors that are not indicative of housing demand,” the report said. This could lead to a situation where housing production becomes “smoother and more stable across time.”

Since policy proposals tailored to the needs of housing construction haven’t materialized to any meaningful degree, stakeholders are reliant on monetary policy — a “broadsword, not a scalpel” when it comes to the interests of the housing industry. Price pressures are addressed primarily by making it more difficult to conduct business operations as opposed to addressing the root issues specific to a particular industry.

“If monetary policy is successful in reducing demand — often by inducing a recession — then eventually, interest rates normalize and, theoretically, demand comes back,” the report states. “And herein lies the problem: housing stock, particularly multifamily housing, takes time to build — far more time than it takes to produce most other goods and services Americans use on a daily basis.

“When the economy comes back, the new units which should have been available for a resurgent consumer market are not available because construction did not occur during the trough of the cycle.”

These actions also serve to teach builders that should there be a monetary policy instrument used to impact the economy, it will also likely be bad for them, leading to a pullback in construction activity in preparation for a policy change. This necessitates federal tools that can help to more precisely alleviate these burdens on housing construction, the report suggests.

“National housing researchers, including Freddie Mac, estimate that the housing supply shortfall across the country is between 1 million and 5 million homes. There are many policy levers that must be pulled to get there,” the report reads.

“A financing lever with the ability to partially insulate housing investment from the volatility of the business cycle has been, until now, a missing piece among the array of tools and interventions. We hope that a housing construction fund, as outlined here, can fill that gap.”

Apache is functioning normally

July 18, 2024 by Brett Tams

The gap between home appraisals and sale prices is rising.

That’s according to a new report from Corporate Settlement Solutions (CSS), which analyzed 10 states on the East Coast and Midwest for the share of properties that were appraised for more than the sale price, in addition to the average value over appraisal.

CSS’s analysis concluded that during the first half of 2024, 51% of sales in these states had appraised values that were higher than the sale price. That’s the largest share since the beginning of the COVID-19 pandemic in March 2020.

In 2020, 42% of properties were appraised for more than the sale price. This share was 42% in 2021, 46% in 2022 and 50% in 2023. The average percentage value of an over-appraised property in 2024 so far is 8.9%.

Properties were considered accurately appraised if these values fell within $2,500 of the sale price. Across the 10 states studied, slightly more than 40% of transactions met this definition.

Importantly for buyers and sellers who are striking deals, the percentage of properties sold this year for more than the appraised value is just 8.4%. The average percentage value of under-appraisal is 7.3%. These deals are relatively rare and can be jeopardized if terms have to be renegotiated due to an appraisal that comes in lower than the agreed-upon sale price.

“The growing gap between home appraisals and actual sale prices underscores the challenges of providing accurate valuations in a rapidly appreciating market with limited inventory,” CSS CEO Ashley Jelinek said in a statement.

“The big question is how long will this continue given that many housing economists are suggesting that home appreciation is normalizing and, in some markets, even decreasing. It is inflection points like the one we may be approaching that emphasize the importance of accurate, market-centric valuations.”

The states that CSS analyzed are Florida, Kentucky, Michigan, North Carolina, New Jersey, New York, Ohio, South Carolina, Virginia and West Virginia.

New York had the lowest percentage of over-appraised properties at 33.6%, and the percentage value of over-appraisals was a miniscule 4.6%. This suggests that New York has the most accurate appraisals of the 10 states analyzed. But New York also has the highest share of properties with an appraisal value below the sale price (14%).

Kentucky had the highest percentage of over-appraised properties at a whopping 72.7%, but the percentage value of over-appraisal was a modest 9.7%, just above the average for the 10 states analyzed. The average under-appraised value in Kentucky was 4.9%

North Carolina had the highest percentage value of over-appraisal at a somewhat shocking 33.3%, and 58.7% of properties in the state were over-appraised. Virginia‘s share of over-appraised properties over was 68.6%, while the average percentage value of over-appraisal there was 10.7%. Virginia’s share of properties sold for more than appraised value was the lowest of the 10 states at 2.9%.

Apache is functioning normally

July 14, 2024 by Brett Tams

The latest annual report from The Counselors of Real Estate highlights 10 major issues expected to impact the housing industry in 2024, but developers are painfully familiar with at least two of them: labor shortages and skyrocketing capital costs.

Today’s market conditions help illustrate the case for green, factory building as an effective solution for developers, especially for those who’ve put projects on hold due to rising interest rates and dried up investor pools. Transitioning to factory building from on-site construction reduces building costs by 20% and significantly improves delivery time; and by using green materials, developers can open up new financing options that, together, turn project economics right-side-up.

Addressing a dwindling workforce and increased labor costs

The United States construction industry is facing an extreme labor shortage, falling short of roughly 650,000 workers needed to drive the completion of critical residential and infrastructure projects across the country. The root cause of this shortage is multifaceted – but is largely driven by an aging work population and a lack of interest from young talent. The result is a sharp increase in labor costs, and longer construction times. U.S. developers spent an extra $30 billion to $40 billion in 2022, drastically impacting bottom lines and the ability to get new projects financed. And the problem is only getting worse.

Factory-built homes aren’t new but are severely under leveraged by developers for multi-family construction. For one, factory-based construction reduces labor costs by making work more efficient and tapping into labor pools that traditional construction can’t access. Traditional construction requires workers to move from house to house and project to project – and less time actually building. And the itinerant nature of the work makes it unattractive to a large part of the workforce.

Good factory builders, on the other hand, operate like car production lines, where the structure moves to the workers who are specialized and stationary. Those workers produce more per labor hour, which means less labor cost per square foot of structures built. And, because the work is done in one place and in more pleasant and controlled factory conditions, it is easier to attract talent, particularly people who might not usually consider construction as a profession, such as women and younger workers.

Time is also money. Factory building doesn’t just provide a developer with confidence in delivery timelines by avoiding inclement weather or scheduling delays; it can also cut build times and skilled labor hours by up to 50%. Shortening the build time means less project overhead, and less interest carry. Those are savings that go straight to a developer’s returns.

Green isn’t just the color of money – it’s the source of untapped funding

In addition to higher costs of development, projects are also sidelined because of reduced availability of bank financing, higher interest rates and investors unwilling to pick up the slack. Just a few years ago, a developer could borrow up to 80 percent of a project cost, but in today’s economic environment, only 50-60 percent of a project is likely to be financed – leaving a significant gap. Here, too, green factory building can be a solution. Energy efficient homes open the door to new and better financing options.

There are innovative factory-based builders who use materials and assembly methods that allow for significant energy savings that will endure for the life of the home or building. The energy efficiency of this type of construction makes it eligible for “green” financing. Green bonds, for example, are earmarked to raise money for climate and environmental projects, and they enable sustainably minded investors to fill the gap that traditional investors have left.

By reducing the total cost of a project with labor and materials savings and then adding better financing options, a developer can get back to delivering projects that meet financial objectives. For example, consider a project with a total cost of $50M. With traditional onsite construction and today’s capital costs, this project may only deliver an unattractive 15% IRR. But consider a scenario where factory-based construction allows a developer to reduce the total cost of the project by 10% or more and also access green financing to cover upwards of 30% – that same project could be delivering an IRR greater than 30%.

Given market conditions, it’s no surprise that multifamily construction starts are down substantially– but not for lack of demand: there’s an estimated deficit of 3.8M homes across the U.S. In other words, opportunity is knocking for developers who can structure economically viable projects. With the right factory-based, sustainable builder, it’s possible to get back to strong IRRs and sustainable profits.

Chris Anderson is the CEO of Vantem.

This column does not necessarily reflect the opinion of HousingWire’s editorial department and its owners.

To contact the editor responsible for this piece: [email protected]

Apache is functioning normally

July 10, 2024 by Brett Tams

One of the most influential names in real estate is once again showing us how it’s done.

Influencer, motivational speaker, bestselling author, and prominent real estate investor Grant Cardone is selling his beachfront mansion in Florida for $42 million.

But throwing cash at the seasoned investor won’t do the trick.

He wants 646 Bitcoin for his one-of-a-kind house in Golden Beach, Florida — which was formerly home to fashion designer Tommy Hilfiger, who sold it to the billionaire businessman back in 2021 for $24 million.

Cardone, who founded Cardone Capital, a real estate investment firm that manages a portfolio of billions in assets, listed his Florida residence on PropyKeys, a leading blockchain-based platform for real estate transactions.

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