Mike pointed out that Zillow simply kept paying too much for homes, and instead of adjusting on purchase prices being offered, they shut it down yesterday.
But Zillow is too big and too aggressive to rest.
Here’s what Mike thinks could be next:
While Zillow 2.0 may have been a failed experiment in iBuying, what captures the imagination is the next iteration of the business. How will Zillow leverage its massive competitive advantage and its iBuyer learnings for Zillow 3.0?
I wouldn’t be surprised to see Zillow play deeper in the Power Buyer space, a model that is asset-light, easier to scale, less risky with better unit economics, and has a natural overlap with Zillow Home Loans (Opendoor diversified into Power Buying earlier this year).
Zillow as a Power Buyer — either through organic development, partnership, or acquisition — is a natural extension to its existing business of helping home buyers. The world of real estate has evolved significantly since 2018, and Zillow needs to stay relevant to those evolving consumer needs.
It would be a smart move. The buyer side is where the help is needed.
Assisting buyers with making all-cash offers is a very attractive service, with no real downside because all they have to do is funnel the business into their mortgage company to refinance the purchases after the fact. They could flip these buyers to their Premier Agents too – a group who is wondering if it’s worth it to be a Zillow customer today.
The supply and demand will be out of balance for years to come, and buyers are the ones that really need the help. Go Zillow!
Here are ways to contribute to the creation of reasonably-priced housing:
The San Diego Habitat for Humanity ReStores are home improvement discount stores with a simple premise: by selling new and gently used donated goods, we can fund the construction of new Habitat homes in San Diego County.
Home products are sold to the public at 30-70% below retail prices. The ReStore offers mostly brand-new furniture and home goods from stores like Restoration Hardware and Wayfair, but there are also great deals on slightly used gear too. Shop ReStore online!
Clearing out your house? They gratefully accept donations of items in good-working condition, such as appliances, furniture, tile, lighting, windows, cabinets, tools, and more. Please click here for a full list of acceptable items. Or call them at 619-241-2221 or send an email at firstname.lastname@example.org and they’ll be happy to answer your questions!
Are you looking for stuff like doors, windows, appliances, etc.? Check the Escondido store. The Carlsbad store is primarily furniture and home goods.
Donate money for the cause – click here: $$$$
The ‘about’ page:
Thanks to the OCR for this article – link at bottom:
Sounding the latest alarm over the devastating impacts sea level rise is expected to have on the California coast, a new report from the state Legislative Analyst’s Office details the critical need for action over the next decade and notes that most preparations so far are only in beginning stages.
Between $8 billion and $10 billion of existing property will be underwater by 2050 and another $6 billion to $10 billion will be at risk at high tide, according to a study cited in the report.
“The certainty of rising seas poses a serious and costly threat,” according to the Legislative Analyst’s Office, a nonpartisan governmental agency that provides policy advice to the state Legislature.
For every dollar spent preparing in advance of disasters, $6 in post-disaster losses are avoided, according to a federal study cited by the Legislative Analyst’s Office. With the state estimating a half-foot or more of sea level rise by 2030 — and as much as 7 feet by 2100 — the report says it’s crucial to take extensive measures over the next 10 years or so.
The C.A.R. sent out this paper that reviews the current housing dilemma, which boils down to having to improve zoning regulations to facilitate more/better infill projects because the more-mature cities are out of land for the most part. She also included this:
However, the paper also offers evidence that cities can use their control over the development process to limit access to housing, sometimes in problematic ways. The finding that less housing is built in cities with both higher homeownership rates and White populations is sadly consistent with existing research on NIMBY opposition to local housing development (Lewis & Baldassare, 2010; Scally & Tighe, 2015; Whittemore & BenDor, 2018). These studies examined opposition to building multifamily or affordable housing; it is striking that in this study cities with more homeowners and larger white populations had less single-family development. This finding serves as yet another warning that racial exclusion from White communities continues to limit housing opportunities for people of color.
Link to Full Report
I love this idea – but $140,000 each? Hat tip Eddie89!
The region’s first housing project made from shipping containers could open as soon as April, providing homes for 21 formerly homeless veterans and possibly paving the way for hundreds of new affordable and median-priced homes in the near future.
The units are planned for a vacant lot at 2941 Imperial Ave. in Logan Heights. Each 320-square-foot unit would have its own patio, kitchen and bathroom. While the units will be built from metal shipping containers, they will be insulated and have interior drywalls.
What Do You Put Under That Staircase?
Hello again blog readers!
Sometimes a home can lack enough square footage. Home owners start turning attics into bedrooms, windows turn into bookshelves, and the space under the staircase can become anything you want!
Today my Trendy Tuesday is about that dead space underneath your staircase. It can be such an awkward place and many people don’t know what to put there but in reality, you can turn it into something grand! Here are some options:
1. Home Office
With a few vertical shelves and a chair, you have your very own home office!
2. Reading Nook
A lot of people like a cozy spot to curl up with a good book. Why not put it under the stairs with a few throw pillows?
3. Wine Storage
Love to entertain but can’t find a place to put all those wine bottles? Under the stairs would be a great place to show off your nicest bottles! Maybe even add a wet bar!
4. Mini Library
For all you bookworms, here’s a great place to store those great novels. Depending on how big the staircase is, you could probably squeeze a few hundred books!
Here are some great examples on our Pinterest Page!
Because millennials are more likely to stay single longer, these communal living arrangements should flourish.
They are probably an extension of the mini-dorms around college campuses. Next year, our youngest will be splitting $9,800 per month to live with 13 other women in one apartment. Their landlord inherited a dozen apartment houses, all in Westwood! H/T daytrip:
Zander Dejah, 25, pays $1,900 a month rent to live in a downtown San Francisco house with at least 40 other people, many of whom sleep in bunk beds.
Dejah is a resident of The Negev, a communal living space that styles itself as a home for millennial tech workers to brainstorm ideas, write code and create apps, even if they have to share toilets and bathrooms with dozens of others. (Related photo essay: here)
Houses like The Negev, located in a neighborhood known as “SoMa” or South of Market, have cropped up around San Francisco as an influx of young professionals, many of whom are tech workers, have faced the city’s notoriously high rents and apartment shortages. It has three floors and roughly 50 rooms, filled with bunk beds, beer bottles and laptops, according to residents.
Dejah, born and raised in New York, graduated last year with a degree in computer science and math from McGill University. Unemployed, he moved to California six months ago and found his room at The Negev on Craigslist.
“I thought New York was expensive,” said Dejah, who quickly landed a job as a virtual reality engineer at consulting firm moBack. “It’s basically an extension of college. We sort of live in a frat house.”
The home is certainly filled with parties on weekends, but the residents make sure to sit down every Sunday for a communal dinner, akin to a traditional family gathering.
While some say communal housing provides a solution for many first-time workers fresh out of college, such housing also has created its share of controversy. Housing advocates have complained that this new dorm-like style of living has pushed up rents and forced longtime residents to move out.
Alon Gutman, who co-founded a company called The Negev and began leasing the building on Sixth street in 2014, said, “We have never made somebody move out of that building,” adding that his tenants pay 30 percent to 50 percent less than others in the neighborhood.
“We are trying to solve the housing crisis and increase density in a positive way.”
The Negev company runs nine communal properties, three of which are in San Francisco. The others are in Austin, Texas, and Oakland, California.
The Negev properties, generally in run-down, low-income neighborhoods, are restructured to accommodate a large number of tenants, Gutman explained.
In the last downturn, there were a surprising amount of people who were underwater but hung on – and today with record-high prices, they are glad they did. We learned that whether you had equity or not, the chance of default was influenced by other factors. If that’s the case, lenders might as well finance the whole enchilada, and price in the same or similar percentage of defaults as last time.
BurkeyLoan launched its BurkeyLoan Mortgage division Tuesday which included its 120% loan-to-value mortgage product that funds both a home purchase and the borrower’s student loans.
BurkeyLoan, a portfolio mortgage lender, will issue, hold and service BurkeyLoan mortgages. The company’s 120% LTV product will allow Millennials to pay off or reduce their student loan debt in order to buy a home.
“After considerable research, review and analysis, we needed to build an access to capital product for the millennial generation,” BurkeyLoan Chairman and CEO John Burkey said. “Many millennials feel they are on a financial treadmill, making every effort to pay off student loans and save for a home while interest rates and home prices escalate.”
“Our mortgage product offers features and benefits that support the needs of the millennial generation,” Burkey said. “The company will utilize sound conservative underwriting that incorporates borrower credit, character, skin-in-the-game and risk mitigation.”
The program is available to community, regional and other banks as well as credit unions that broker residential mortgages.
But BurkeyLoan isn’t the first company to reach out to first time homebuyers struggling with student loans. Back in November, SoFi and the government-sponsored enterprise Fannie Mae announced a new loan option allowing homeowners to refinance their mortgage at a lower rate and pay down the balance of an existing student loan.
The average student graduates with just over $30,000 in student loan debt, according to the Institute for College Access and Success. The median home price increased to $228,900 in January, according to the National Association of Realtors. The new LTV 120% program may enable homebuyers to pay off the average student loan amount, while offering a change to invest in their housing.
Have you seen a home sale close at a surprisingly-low price, and you said,
“Geez, I would have paid that!”
Usually the house has been on the market for months, and everyone else has forgotten about it. The seller doesn’t want to lower the price, but tells his agent, “Just bring me an offer”.
The agent revises the MLS remarks, adding gems like ‘Extremely Motivated’, and ‘All Offers Considered”. A buyer who saw it earlier with another agent decided to approach the listing agent directly with an offer 20% below list – take it or leave it.
With visions of two commissions twirling around in their head, the agent tells the seller this is the best they could do. The seller really is motivated, so after months of failure at a too-high price, frustration sets in and he signs it.
If any seller is tempted to take a lowball offer – more than 10% below list – they should instruct the listing agent to immediately lower their list price to the midpoint between the offered price and current list price.
Let’s see who else is out there!
Watch how many you see that close at 15% to 20% below list and the listing agent represents both parties. It isn’t enough to change the market, but a notable strategy.
You shouldn’t burn your old agent though – there are enough listing agents who are wimpy about dual agency and prefer that you have your own agent anyway. It is the same net to the seller, so he won’t care either.
Hat tip to daytrip for sending this in:
For the Pinterest generation, which is used to browsing and pinning glamorous photos of home decor, showcasing their own magazine-worthy spaces online is now a must. And with good design easily accessible online on home decor sites such as Houzz.com, there’s an increased interest in a DIY approach. Furniture and other items are also more easily sourced than ever before, as some start-ups now cater directly to the consumer by selling wares online that were once only available to the trade.
When Jen Bailey, 33, moved in with her boyfriend, she was eager to incorporate both of their ideas when decorating their new Los Angeles home. But they faced a challenge: Bailey’s boyfriend held frequent American football parties, which didn’t exactly mix with her sophisticated tastes.
“Having 15 guys over watching football [was our] design issue,” Bailey said.
The couple turned to Laurel & Wolf, a one-year-old interior design start-up that allows customers to choose from at least four high-end interior designers who submit “first looks” of their ideas.
Customers choose the design they like and pay from $199 to $499 per room for design advice. Bailey and her boyfriend paid $299 for a package and communicated with their designer via an online platform that allowed them to chat and send photos during the process.
Call it high-style luxury for the masses.
Read full article here: