Dorothy’s obit below:
Talk about buying the listing! This is the UK version of Opendoor, and they are tempting sellers with a promise of a 97% cash advance on their house. This idea is fantastic, and operators could make a bundle, right up until the market flattens out or declines. Then what?
Nested, the U.K. estate agent that provides a cash advance to help you buy a new house before you’ve sold your old one, has raised £36 million in further funding. The round was led by Rocket Internet’s Global Founders Capital, and brings the less than two year old startup’s total funding to just shy of £50 million. Buying and selling houses is a pretty capital intensive business, after all.
Launched in January 2016, Nested competes with high end estate agents by providing all of the services needed to sell your house, but with a key difference. In addition to handling valuation, marketing and sales, the startup will offer you up to 97 per cent of the market value of your property as a cash advance, that way you’re able you to purchase a new home prior to your old one selling.
Not only does this eliminate much of the stress and uncertainty of selling and buying a home, including what your final budget will be, but also ensures that you are never caught up in the dreaded property ‘chain’ and potentially miss out on your desired home, or are kept in limbo indefinitely waiting for your property to sell.
In return, Nested charges a fee from 2-4 per cent (plus VAT) depending on how long it thinks it will take to sell your home, and reduces that fee by half if it fails to sell the property for an amount above its initial valuation (something I’m told hasn’t needed to happen yet). The idea is to incentivise the startup to always try to get you the genuine market price or above. It is also slightly different to the original pricing model that saw Nested split the difference 70/30.
In a brief call, Nested co-founder Matt Robinson, who previously co-founded online payments company GoCardless, told me that the startup’s best sales funnel is people’s bad experience trying to sell their home with a competing agency. He framed the current market as online-only estate agents who are targeting the low end by charging a flat up front fee but with little guarantee they’ll go on to sell your home, and traditional brick ‘n’ mortar agents who no longer add as much value as they used to now that listings and market data has moved online.
Let’s compare this week NSDCC stats to the same week in 2016:
The 17 houses listed under $800,000 is the lowest count ever, and in the next category, $800,000 to $1,400,000, the count is down 38% also.
On the high-end, the $979/sf was the average on December 12, 2016 which was the first time the listing count came under 400. I can’t get the MLS to report the $$/sf when the listings count is over 400.
Just so you know….
Examples of capital-gains tax – let’s use this as a marker in case the Trump plan goes through:
Dear Liz: We are in the lowest tax bracket. If we sell a capital gains asset worth several hundred thousand dollars, does that put us in a higher bracket and we pay 20% or do we remain in the lower bracket and pay 15%?
Answer: In the two lowest federal income tax brackets, the capital gains rate is actually zero. For a married couple filing jointly, taxable income below $18,550 in 2016 would put you in the 10% tax bracket, while income between $18,550 and $75,300 would put you in the 15% bracket. Both 10% and 15% income tax brackets pay no federal tax on long-term capital gains.
But capital gains count as income in determining your tax bracket. So a big capital gain can push you into a higher bracket, which means you would pay a higher capital gains rate.
Let’s say your normal taxable income is $75,000. You sell an asset with a $25,000 capital gain. Now you’re in the 25% tax bracket with taxable income between $75,300 and $151,900, which means your long-term capital gains rate will be 15%.
High-income taxpayers – those with taxable income above $466,950 – are in the 39.6 percent federal tax bracket, and pay a 20 percent long-term capital gains rate at the federal level, plus a 3.8% tax (in support of the Affordable Care Act for taxpayers with adjusted gross incomes over $250,000 for married couples and $200,000 for singles). The surtax is applied to the lesser of the taxpayer’s net investment income or the amounts over those limits.
It means a taxpayer at the highest federal tax bracket could pay as much as 37.1 percent — 23.8 percent federal plus 13.3 percent state — on a long-term capital gain in California.
There may be ways to alleviate or spread out the tax hit. You could sell losing investments to offset some or all of the gain. Another option for some assets is to sell a portion at a time over several years, or use an installment sale. A tax pro can walk you through your options.
Wood in general is a beautiful, evocative natural material, and when it’s saved from a landfill and reused, it has even more character, history, and sustainability.
Reclaimed wood can be recovered from a wide variety of sources, but it most frequently comes from timber framing and decking used in old barns, factories, and warehouses. Some tell-tale signs of reclaimed wood include nail holes, manufacturer stamps, and markings.
Other unique qualities, like variation and depth of color or unusual patterning, can be a result of it being stored in vessels like wine barrels, beer casks, and other containers. Additionally, reclaimed timber is usually cut from strong, mature trees (unlike the younger, weaker trees used today for lumber), and is less prone to splitting. Because of these aspects, many designers choose to use reclaimed wood rather than virgin timber in their projects.
Here, we take a look at eight different projects that incorporate reclaimed wood in distinct ways:
Here’s where you can find reclaimed wood locally:
It’s the time of year when we see some price adjustments by agents who have tried everything else, to no avail. But how much do you need to reduce the price to cause a sale?
Ideally, it needs to be enough to cause buyers who have already seen the house to come back – that’s how you know for sure that the new price is working.
But have you noticed that every price reduction is advertised as ‘Huge’?
‘Huge’ = 10% or more reduction in price.
The minimum effective reduction = 5% reduction.
Typical reduction = 1% to 2%.
Fake reduction = moving the value-range goalposts.
Buyers are already thinking of knocking off more than 1% or 2%, and to be effective, a price reduction needs to create some real urgency in the buyers – to make them think that if they don’t react immediately, somebody else might beat them to it. The 1% or 2% reductions aren’t enough to create any extra urgency, and as a result, are just throwing money away.
In addition, a new, lower list price will be cross-referenced by the buyers with the days-on-market. They expect at least one decent price reduction per month to keep them interested.
Want it to work? Lower your price by an amount that makes you cringe!
Here are the haunted places around Carlsbad, though they didn’t mention this house on the corner of Highland and Oak – go by for a look!
“While it’s encouraging that statewide home sales improved both monthly and annually, the year-over-year sales rate is losing steam, reflecting the persistent shortage of homes for sale and an easing of concern over a surge in mortgage rates,” said C.A.R. President Geoff McIntosh. “Additionally, for the areas that have been affected by the recent wildfires, we anticipate sales will pull back in those regions as damages are assessed and replacement efforts are coordinated.”
We’ve discussed how fewer homes for sale could be the sole cause for a drop in sales. Can we learn something by comparing the change in sales count to the change in inventory!
Rich shows San Diego County inventory down 2% MoM, and down 16% YoY:
San Diego County sales down 16.7% MoM, and down 4.3% YoY:
Here are the ratios in an easier-to-read comparison:
A year ago we were in a presidential election cycle – I’m not sure data from that era means much today. But a 17% drop in September sales from August when inventory only fell 2% is probably worth noting.
The 2% inventory drop didn’t change the selection much, but with 17% fewer sales, it means that the homes for sale must not be as appealing as before.
We’re in the running – and only $400 million in incentives!
San Diego’s region-wide bid for Amazon‘s second headquarters was sent off Wednesday, one day before the online retailing giant’s deadline, according to the San Diego Regional Economic Development Corp.
The competition for the headquarters is pitting municipalities large and small against each other for a piece of Amazon’s very substantial pie. The company plans to spend more than $5 billion on what it calls HQ2, which would provide 50,000 new high-paying jobs and support thousands of construction and other related positions.
The EDC submission, set to arrive Thursday, proposes four sites — Chula Vista, downtown, Mission Valley and Otay Mesa.
On Tuesday, the Chula Vista City Council approved a $400 million incentive package for Amazon, which would have HQ2 incorporated into the city’s Millenia mixed-use mega-development. Chula Vista would provide the company with 85 acres valued at $100 million and tax breaks of $300 million over 10 years.
Amazon could also partner with the city in its ongoing plans to bring a four-year university to the city.
“We have the best proposal for Amazon,” said Chula Vista Mayor Mary Casillas Salas. “We can provide eight million square feet of space in a continuous greenfield development and Amazon can embrace our unmatched quality of life in master planned communities with housing for all income levels, biking and hiking trails, recreational activities and an incredible climate.”
Amazon already has a large presence in San Diego after leasing more than 100,000 square feet of office space in University City. But the region faces stiff competition in the bidding war with numerous other cities offering land and tax incentives.