HotPads Daily :: The Official Blog of HotPads.com

Hot Pads: Making Use of Your Beautiful Surroundings

I love coming across properties that take advantage of the natural beauty around them.  And, when you're lucky enough to have property with a view like this one in Laguna Beach, you have to make sure that you make full use of it.  

And this property does just that, making sure their view is visible throughout their whole house, not just from their deck and outside areas.  

(which are beautiful, by the way)

View from the living room

View from the dining room

View from the kitchen

View from the bedroom

See the rest of this spectacular home for sale here: 6 bedroom, 6500 sqft 

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Hot Pads: The Lengthy Edition

A bartender was cleaning the glasses after a long night.  Just as he was about to walk around to flip off the neon sign, a horse walked in looking depressed and asked for a shot of whiskey.  Sympathetic, the bartender poured him a nice double shot.  Leaning in with a friendly ear, he asked, "So, tell me, why the long face?"  The horse shrugged and said, "I was born with it."

That was the first thing that popped into my head when I received a tell-a-friend of this home for sale:

"Why?" you might ask.  Check out the length of this main lobby/foyer room!  I don't think I've ever seen a room that long! 

(I know that doesn't adequately explain why I told that old joke)

As you can tell by the first photo, this house in Westerly, Rhode Island is absolutely spectacular.  Check it out!

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Scams, Spam and Illegitimate Listings

At HotPads, we're constantly working on ways to ensure that we provide up-to-date, quality real estate listings to you, our users.  It's an endless struggle, but our largest and sharpest weapon against spammers, scammers and illegitimate listings is our community of educated users. 

Humans can easily detect spam.  For example, when you're browsing listings and the contact information reads "Sleazy Stan's Spamming Systems", you know to ignore the offending listing and move on.  One thing you may not know, but will help keep your browsing experience at HotPads as pleasurable and effective as possible, is that you can report these listings.  Each bad listing you report helps us learn the patterns and similarities between bad listings, and improves our ability to automatically keep them out of our system.

You can report spam, scam or incorrect listings on HotPads by clicking "report this listing" on the offending listing page.

Scams are more difficult to detect, but knowing how to detect a scam saves you money and embarrassment. To this end, Dan Daugherty recently launched a blog called rentalscams.org to document the latest scams perpetrated by both tenants and landlords.  Most of the scams we uncover at HotPads come in the form of fake listings, which we explain more in a short guest post on Dan's blog.

While not technically scams, unlicensed landlords (in areas where licenses are required) can cause renters just as much grief.  Properties offered by unlicensed landlords likely haven't been inspected to ensure compliance with safety regulations, so they may be unsafe to inhabit.  In the District of Columbia the Department of Consumer and Regulatory affairs is running a campaign called thisshouldbeillegal to educate college students about the district's landlord licensing requirement.

Help us combat scams, spam and illegitimate listings by remaining vigilant and keeping yourself informed.

New York Times Author makes Buy vs. Rent Decision

In a recent New York Times article, the self-described "evangelist for renting" David Leonhardt describes the economic factors that finally made him take the plunge and become a homeowner.

With home prices skyrocketing a few year ago, renters enjoyed the benefit of lower housing payments and more flexibility to relocate for work, school or love.  Homeowners have always enjoyed tax breaks, control over their living space and (until the last year or two) steady appreciation of their investment.

These are the same complexities that go in to the HotPads Buy vs. Rent Calculator, and easy way for you to see what makes sense in your specific financial situation.  You can also search for apartments, condos and home for rent and sale by monthly payment using the HotPads "Buy vs. Rent" housing search.

Jackson's Neverland Ranch Avoids Foreclosure

King of Pop Michael Jackson gets to keep his Neverland ranch after the failure to pay on his $24 million mortgage had the playland of llamas and orangutans facing the aution block.  The 11th-hour purchase of the loan by Colony Capital LLC kept Jackson from losing the 2500-acre ranch.

Jacko isn't alone in his plight, as million-dollar foreclosures abound in the current market.

Jackson no longer lives at the ranch, so he should check out the Hottest Pads on HotPads for a more modest mansion, where we have nice homes starting at just $6 million.

Foreclosures Bring Buzz & Bites

If you thought that the only bloodsuckers involved in the whole foreclosures mess were shady mortgage brokers, think again.  An apparently major problem with abandoned homes are the swarms of mosquitoes that breed in the stagnant swimming pools.

To combat the threats of West Nile and worse, ruined weekend barbecues, local authorities have used a variety of methods to combat the pests.  One innovative solution reported in the Wall Street Journal last week involves stocking pools with mosquito fish, which feed on the insect larvae.

I would think that an easier solution would be to just drain the pools.  Here at HotPads we like the fish on our plates, not in our foreclosures.

Fastest Growing Real Estate Markets on HotPads

Cnn.com recently published its list of the 10 fastest growing real estate markets where homes are expected to post price gains in the coming year.  Check out the following selections on HotPads.com and see if our foreclosure heat maps tell a more cautionary tale.

• McAllen, TX
• Rochester, NY
• Birmingham, AL
• Syracuse, NY
• Buffalo/Niagara Falls, NY
• New Orleans, LA
• Scranton, PA
• Grand Rapids, MI
• Baton Rouge, LA
• El Paso, TX

If you're not convinced that these areas are great places to buy, you can still find great apartments to rent on HotPads.

Holdouts Hamper Plan to Raze 1,000 Homes

The government of Youngstown, OH is looking to bulldoze over 1,000 buildings in an attempt to save money by ceasing city services in parts of the declining town that are nearly vacant.  The few homeowners that remain are eligible for grants of up to $50,000 to relocate.

In past years, cities like Philadelphia and Baltimore have tried similar tactics to revitalize their housing markets by creating new tracts of open land for future development.  However in Youngstown, some residents of the last inhabited homes refuse to leave, even for fifty large.

Perhaps they haven't seen all the great homes for sale on HotPads.com.  Sadly, $50,000 won't even pay for lawn care at one of our Hottest Pads, which start at a cool six mill.

HotPads Partners in 2008 Fortune 1000

Fortune Magazine's annual list of America's largest corporations lists two companies near and dear to HotPads: Equity Residential and AIMCO.  Both of the real estate investment trusts showcase their portfolios of award-winning apartment communities and rental developments on HotPads.com.

For property managers looking to break into the Fortune ranks, HotPads is the place to market rentals, giving them access to one of the largest and fastest-growing housing search sites with no fees charged for listings, leads or leases.  And with those low-cost Featured Listings, no property should ever go vacant.

Check out the top ten real estate firms in the Fortune 1000 here.

Connect with HotPads on LinkedIn

The great business networking website LinkedIn.com has recently launched a new feature allowing users to see profiles for over 160,000 companies, including HotPads.com.  These company profiles have lots of interesting information like descriptions, employee rosters and locations.

The real estate community is a huge fan of LinkedIn (just search for people with the title "Realtor") as a way to keep in touch with old colleagues and as source for new business leads.  LinkedIn has none of the potentially embarrassing personal pictures and "friends" that can accompany a Facebook or MySpace account.

If you're a property manager, real estate agent or other professional in the industry, add or update your profile and link up with your favorite member of Team HotPads.

Even Uncle Sam is Unloading More Real Estate

A government report put out last year showed the federal agencies pay more than $130 million dollars a year to maintain over 20,000 real properties that they don't use.  Some of the properties are vacant.

So with a new project included in the 2009 budget, the feds will try to sell some of this property through the creation of a “real property disposal pilot.”   Agencies that own the property would get to keep 20% of the proceeds of any sale, with 80% going into the public coffers of the Treasury.

According to the acting controller for the Office of Management and Budget, the properties are worth more than $17 billion.

But don' look to buy government castoffs here.  We don't have a map icon for the "nondescript building with secret underground bunker" property type on HotPads.  The best we can do is apartments for rent in Washington, D.C.

Sellers Turn Green to Make Some

Still facing rising inventories of unsold homes and falling prices, sellers have been trying everything from juicy perks for buyers agents to unloading houses in a raffle to get out of unwanted properties.  Now in response to higher fuel costs and environmental awareness, many are marketing the new "green" qualities of homes for sale.

Some sellers tout the existing energy-efficient qualities of their real estate while others are making investments in new appliances, insulation and even solar panels.  One new home community was even giving away Prius hybrids as part of a green promotion.

Don't think that HotPads isn't ahead of this trend.  We are proud to say that we have supported green houses since we launched our site in 2005.  Just look at our logo.

Burnin' Down the House: Foreclosures Spark Arson Fears

This isn't what we meant by "HotPads" people...

To throw another log on the fire (pun intended) of bad news for the real estate world, the Coalition Against Insurance Fraud recently warned that with "untold thousands of homeowners struggling with ballooning subprime mortgage payments, fraud fighters are watching closely for a spike in arsons by desperate homeowners who can no longer afford their home payments."

News reports from Boston to Omaha tell the sad tales of strapped homeowners, who facing foreclosure, choose to light it up like Snoop Dogg in Amsterdam.

We only hope that those investigators don't turn their sights on us, because with hundreds of thousands of homes for sale added in just two months and so many apartments for rent nationwide, HotPads is blazing.

2008's Most Expensive Rental Markets

Sick of your sky-high Manhattan rent payment?  Don't wheel your roommate's dead body down a busy New York street and try to cash his Social Security check.  Move to Columbus, Ohio instead.  That Midwest jewel on the river just topped one company's list of the least expensive rental markets in America, in contrast to NYC's arm-and-a-leg prices.

The real estate investment firm Marcus & Millichap recently compiled its list of the most expensive places to rent, estimating 2008 prices based on vacancy rates, new-construction projects and job growth in the 40 largest cities.

The most expensive cities are easy to guess, with New York, San Fran and Boston taking the honors.  In economy class along with Columbus are other heartland cities like Indianapolis and Kansas City.

But if you're not willing to flee to coasts, you can still get a great deal when you search for a rental house or apartment on Hotpads.  With the largest inventory of rentals on a map-based search, you may be able to save the leg.  Even in New York.

Is this HotPads.com Rental Part of Rock History?

The record-setting growth that HotPads is experiencing seems to be a clear sign that the online community has a new favorite site to find homes for rent.  Unfortunately, we forgot to include one particular amenity for users to search by: former rock star hot pad.

We recently found out that this HotPads listing for a house in Pasadena, California is the former home of rockers Eddie and Alex Van Halen.

The truth behind this story could not be immediately confirmed, as our repeated phone calls to band went unanswered. 

Also, the two HotPads staffers who went onto the Van Halen tour bus to get the straight scoop returned only with a few empty bottles of Cabo Wabo Tequila and smiles on their faces.

We'll keep you posted with any future updates on this story.

Fannie Mae CEO Forecasts Housing Slump through 2008; Fails to Factor in HotPads

Fannie Mae CEO Dan Mudd publicly predicted that average home prices will drop another 4% to 5% in 2008,  with no up tick coming until 2009 "at the earliest."  He does expect a rapid rebound once affordability returns to the housing market.

This dour outlook was probably calculated before the news broke about the new HotPads Buy vs. Rent search engine.

Now that renters can look for available listings and see what great homes are available to buy for the same monthly payment, you can expect a healthy shot of adrenaline to be injected into the housing market.  Until now, no other website has allowed users to browse all of their available housing options using their personal monthly housing budget as a filter.  See it for yourself here.

So credit crunch notwithstanding, renters can now see the deals available with drop in real estate and help speed our recovery faster than many analysts expected.  (A small, tasteful ceremony in the White House Rose Garden will be thanks enough.)

HotPads launches first Buy vs. Rent search engine

HotPads today launched the first Buy vs. Rent search engine.  What??

Everyone knows we are in the midst of a down housing market.  Things are getting difficult for both real estate professionals and owners.  The National Association of Realtors announced that the inventory of available homes rose to 10.8 months in October.  (link)

The real estate market is going to recover.  The question is, when?... And this is why these times can be difficult for those potential first-time buyers out there.

We are launching the first "Buy vs. Rent" search engine with the hope that it will provide to housing shoppers some of the information required to make sound financial decisions when deciding whether this is the right time to buy or rent.

So... how does it work?

There are now three search portals within HotPads; For Sale, For Rent, and Buy vs. Rent. When users click the Buy vs. Rent tab above the map, both For Sale and For Rent listings are returned in the search results on the map. For Sale listings have a monthly cost associated with them that take mortgage payments including interest rate, down payment, and term length into account. As users adjust their pricing criteria on the map, homes for sale and rent appear and disappear respectively. This allows users to see exactly what properties they can afford to buy and rent.

Users can adjust the mortgage terms so each Buy vs. Rent search is customizable to the individual. 

Of course there are other factors that should weigh into the "Buy vs. Rent" decision other than just the mortgage payments, like maintenance costs, property taxes, homeowner tax deductions, appreciation, closing costs etc.  But we wanted to keep the actual search results simple... and as un-subjective as possible.  So, we are also launching a "Buy vs. Rent" calculator in all of the listing that take all of the other considerations into account.  Here is a link to the calculator:  link .

Why do we think this "Buy vs. Rent" search engine is important?

This is the first time housing shoppers can see what they can afford to buy and what they can afford to rent... and using our map-based search engine, where.  Also, in a down market, first-time home buyers can help fuel a housing recovery.  First-time buyers do not have to risk an equity loss by selling their existing home so they are more free to take advantage of declining real estate prices.

We are always looking for input.  If you have any suggestions for improving the Buy vs. Rent portal or any other feature on HotPads we want to hear from you!  Please email us at info@hotpads.com.   

More information can be found at our press release here: link

$44.3 Million Stolen from D.C. Property Tax Office

In the biggest real estate rip-off since Manhattan was bought for beads, employees at the Washington, D.C. Office of Tax and Revenue are accused of stealing more than $44 million dollars with bogus property tax refund checks in a scheme going back as far as 1999.

This story hasn't gotten the national attention it deserves, but has been tracked by HotPads since it first broke a few weeks ago.  Not necessarily because our home office is in D.C., or even for the real estate angle.  We've been keen on finding out what keen swag $44 million in cash can get you.

The alleged ringleader of the gang (former tax office middle manager Harriette Walters) owned more than 70 pairs of designer shoes, 122 luxury handbags, and a couple of Faberge eggs.  FABERGE EGGS!  When police raided the home of her neice (an codefendant) Jayrece Turnbull they found more accessories from Gucci, Louis Vuitton, Chanel, Ferragamo, Manolo Blahnik and Jimmy Choo.  Not to be left out, Versace was represented with a a 70-piece china set.

But now a gaggle of conspirators are behind bars, including the banker accused of laundering the dirty checks.   So once again, crime doesn't pay.  Like HotPads doesn't charge.  Free to list, free to search, and free on our our recognizance.

Help on its Way for Fearful Subprime Borrowers (and Lenders)

With the monthly payments on millions of subprime and interest-only loans set to rise in 2008, both the government and banking sector have been working to stave off more waves of defaults and foreclosures.

Treasury Secretary Henry Paulson has been holding talks with major players in the mortgage industry over the past several weeks to work out a program that would freeze the lower introductory rates (and mortgage payments) to keep them from going up over the next few years.  The plan is meant to target homeowners who are not in default on their loans at the current payment levels, but whose incomes would not support the higher payments caused by an interest rate adjustment.

Paulson recently announced that he is confident that the deal will go through.  One of the major points of contention is how long the freeze should last, with recommendations varying from as short as one to up to seven years.

Acceptance of the Paulson plan doesn't show a newfound altruism on the part of mortgage lenders.  It's very much in their best interest to keep good loans on the books and more properties of the foreclosure market.  That will give the housing market time to clear inventory, which should happen much faster now that HotPads.com offers for-sale listings nationwide.

Home Prices Take Biggest Plunge Since Cosby Show Era

And the pain keeps coming.

According to a report released today by S&P Case/Shiller, whose real estate pricing index covers 20 local markets and a national average, third-quarter home prices dropped 1.7 percent from the second quarter.

Yale economist and index co-founder Robert Shiller said that this represents the largest quarterly decline in the index's 21-year history and that the year-over-year decline posted its second consecutive record low at negative 4.5%.

To put this in perspective, this is the largest drop since:

1. Cheers, The Golden Girls and Dallas were on the (low def, bubble screen) tube
2. No Bush or Clinton had been President
3. HotPads' senior software engineer (and Food Leader) Doug Lewis was throwing peas against his parents' wall because they were not mashed using the proper Italian grinder

Miami Condo Bailout May Benefit Teachers and Cops

Falling real estate prices and a glut of condos in the Miami market is looking like a golden opportunity for an unlikely speculator, the city of Miami itself.  City Commissioner Marc Sarnoff is proposing that if prices continue to fall, government should buy condo units and partially subsidize them for teachers, police officers and other civil servants.

The city's Community Development Department says that new affordable housing units can cost up to $350 per square foot to build, while many condos are now $225 to $250 per square foot, with prices falling.

On the surface, this seems like a good idea.  The government can provide housing incentives to lure new workers, prop up the housing market and take advantage of existing inventory instead of building yet more homes.

To get a current idea of the prices and availability for condos in south Florida, check out the new for-sale listings online at HotPads.com.

Rent-to-Own Real Estate Makes a Comeback

Another twist in the continuing saga of the housing slump is the return of the rent-to-own deal. 

Rent-to-own (or lease-to-own as its sometimes called) typically involves renters paying an above-market monthly payment with a portion of the rent going towards the eventual down payment on the purchase of the home.  These deals fell out of favor when every home sold in 20 minutes and every borrower could qualify for a million dollar mortgage.

Rent-to-own agreements can give homeowners an opportunity to move without selling at the current depressed prices, and allow renters to save for a down payment while holding out for a more favorable lending climate down the road.  These deals can be a great arrangement for both owners and renters/future owners.

But Bankrate.com's Steve McLinden warns prospective tenant/buyers to enter into these arrangements with a clear understanding of the terms.  They can be left with a contract on a house they really don't want to buy, or fail to quality for a mortgage.  In either case, they can lose their downpayment money and be left with no home and no savings.

Real Estate Brokerage in Mortgage Ethics Flap

A founder of the largest residential real estate brokerage in the Washington, DC area is under scrutiny over what some say was an unethical directive given to his brokers.

The Washington Post reported that the founder of Long & Foster, P. Wesley Foster, sent an email urging the company's thousands of agents to recommend its in-house mortgage lender and discontinue referring clients to outside banks.

Foster's encouragement of the use of Prosperity Mortgage (an affiliated company) over firms like Bank of America and SunTrust brought criticism from consumer activists, real estate agents and naturally, the other banks.  They fear that such a move would limit choice and come at the expense of Long & Foster's clients.

A copy of the email memo was sent to the Department of Housing and Urban Development, whose officials have not commented on it at this time.

Couple Selling Home with Macabre Kick

Halloween may be over, but ghoulish tales of haunted houses persist.

A Pennsylvania couple, unable to sell their home for over a year, have come up with a strange incentive for prospective buyers.

Bob and Ricki Husick are offering to provide a full refund of the selling price... but only after they're dead.  They're asking $399,900 for the four-bedroom, three and a half bath home about 20 miles north of Pittsburgh.

But Freddy Krueger and Michael Myers shouldn't get their checkbooks out, since there is one catch.  According to Bob, there is a clause in the contract that no money will be paid to you until local authorities determine that they died of natural causes.

The HotPads Book Club, Real Estate Investing Edition

Despite vise-tight credit and sinking asset values, some people are still eager to get into amateur real estate speculation.  Probably the folks who find hijacking loads from Columbian drug cartels too safe a profession.

For those needing advice, hundreds of authors are willing to help them on their way.  A search on Amazon.com with the keywords "real estate investing" yields 331 results for books published in 2007 alone.  How can one know where to begin?  Here's a hint: It's probably wise to avoid any tome with the words "subprime", "flipping", "secrets" or "millionaire" in the title.  And if you are a self-described dummy, you may want to reconsider this course of action entirely.

Now for real advice worth the price, look for the Wall Street Journal's excellent Complete Real-Estate Invesing Guidebook by David Crook.  Crook provides a clear understanding of the ups and downs of real estate investing, with an emphasis on managing rental properties, not flipping homes.  And he does this with a nice sense of dry humor, which we can appreciate at HotPads.

California Fires Illuminate SoCal Real Estate Decisions

As massive wildfires once again rage through southern California, people who are not from the left coast scratch their heads and wonder why folks still choose to live where the real threat of losing one's home to fast-moving flames in an increasingly dry climate grows every year.

The answer is a complicated mix of bottom-dollar economics, amazing properties and the unique southern California state of mind.

For some, sky-high real estate prices in SoCal mean that they can't afford to live outside of the danger zone.  Because of the huge population growth over the past 20 years, brushland has been developed to accommodate less expensive housing.

For those who can afford to live anywhere, like denizens of beach cities like Malibu, having a mansion on a mountain peak that overlooks the Pacific Ocean is an irresistible draw.  Celebrities like Suzanne Somers and Sean Penn have lost homes to California brush fires, but rebuild and enjoy.

On top of that, you have laid-back Californians who take their natural disasters in stride.  The scene at San Diego's Qualcomm Stadium, used as an evacuation shelter, resembled a college move-in day with Starbucks coffee, Wi-Fi Internet and endless coolers of soda.

Maybe the best way to understand this is to read what was written by one real estate blogger who documented his thoughts while watching fire crews work to stop the blaze moving in on his home; He couldn't help but marvel at the extra special glow that the smoke lent to the beautiful sunset.

Mortgage Files Left for Dumpster Diving Identity Thieves

The Wall Street Journal is reporting on a growing cause for concern; your confidential financial information left on the street, by mortgage loan middlemen caught up in the turmoil of the credit crunch.   Amid layoffs, shuttered offices and looking for new jobs, many brokers and agents have failed to take even the most basic precautions (a $39 shredder from Staples) to protect their clients from fraud.

One Indianapolis reporter trolled the back alleys and trash bins behind loan offices and title companies and found that nearly half contained sensitive borrower information ripe for the picking.

Although obviously a bigger concern now with so many mortgage brokers going belly-up, this is not a new phenomenon.  The National Association for Information Destruction has an online newsroom full of articles documenting boxes of mortgage files, sometimes years old, turning up in recycling bins and other public places.

So as with all financial transactions, deal only with reputable firms that have been around for a while, and will be around for a while.  Or at least use that Lifelock guy's Social Security number on your loan application.  (If you didn't already know, it's 457-55-5462.)

New Apprentices Needed at Trump University

The losses and layoffs resulting from the housing slump have revealed the many bad business decisions made by seemingly smart folks in the real estate community.  It's evident that a lot of bankers and investors need to go back to school.  And who better to wear the robes of an academic Don than the master of real estate himself, Donald Trump.

For as little as $34.97, eager students can take courses from the online ivory towers of Trump University.  The course catalog includes subjects like "What Inexperienced Homebuyers MUST Know Before They Buy a Home and "Three Master Secrets of Real Estate Success."  But even T.U. dropouts know that you have to spend money to make money.  Premium online courses cost about a grand, and full-blown seminars will set you back $1,995.

While no one doubts the obvious cachet that a prestigious T.U. diploma garners in the business world, we did have a few recommendations for future courses;  "Buying Gold Leaf at Wholesale", "Overextending Your Brand (and Bank Account)" and "Better Ways to Invest $1,995" would all be great additions to the curriculum.

In fact, we may just save them for the 2010 launch of HotPads University.

FeloNTV Cribs? You'd Kill to Live Here.

While there's no shortage of absolutely stunning apartments on HotPads.com, the images in this post aren't shots of a high-rise in Miami or a loft in San Diego.  To live here, you will need a pile of cash, but it would have to have been stolen.

These are pictures of the Leoben Justice Center, in Steiermark, Austria.  And it's a prison.

Completed in 2004 at a cost of 46 million Euros ($65 million) this facility is a far cry from Sing Sing or Pelican Bay. Prisoners live in dormitories in groups of 15 where they have use of a fitness center, kitchen, and lounge among other amenities.  The design was intended to enhance the quality of life of the inmates and staff.

The lucky prisoners here feast on mussels in white wine sauce, sliced peppers with goat cheese and balsamic vinegar, and berries flambee over ice cream.  (I'm just making that up, but looking at these digs, it's probably true anyway.)

For more pics, and a chance to be depressed at your own rental apartment. check out a gallery of photos here.

Nervous Home Sellers Boost Perks for Buyers' Agents

Over the last few months, homebuilders and private sellers have lowered prices and juiced up incentives to appeal to buyers in a slowing market.  But when that does not work, many have turned to offering sweeter incentives to agents who can bring buyers to the closing table.

This is not necessarily a new tactic, it just hasn't been needed while the real estate market was booming and sellers could count on bidding wars by buyers desperate to get in the rising market.  Now it's almost become a standard practice in some overbuilt markets.  Check out the number of real estate forums that have threads about this topic.

What is new about the current incentives is that they are geared not to the potential home buyers (the old free plasma TV trick) but to their agents.  Buyers' agents can increasingly look to receive higher commission rates, cash bonuses, cars, vacations and more.

This has some people worried, since buyers might never know about that added bonus.  A realtor's obligation is to the client, but a very enticing perk could lead some to steer clients to specific properties first when more suitable homes are available.   So as always, let the buyer beware.  It's important that buyers do their own homework, ask questions of their Realtor and when they don't like what they see, keep shopping.

Realogy Dusts off Better Homes Brand for New Brokerage Chain

In a deal hearkening back to the halcyon days of say, January of this year (when it was all good in the world of real estate) Realogy Corporation recently announced its plans to launch a new brokerage chain under the previously-used name Better Homes and Gardens Real Estate.

Realogy already owns two of the most venerable brand in real estate with Coldwell Banker and Century 21 named under its umbrella.  Realogy also has the upper crust covered with its 2004 acquisition of the Sotheby's International Realty name license.

Iowa-based publisher Meredith Corp. will license the name of the venerable magazine to Realogy for the next 50 years.  The brand was last used for a real estate agency in the late 1990's.  Realogy is banking on a strong positive name recognition for BH&G and the vast untapped market of unaffiliated brokers to drive both customers and new franchisees.

While it remains to be seen how attractive the 83-year old Better Homes brand is to agents and homebuyers, the real value in this deal may be from access to the vast database of consumer records now at Realogy's disposal. 

Meredith's stockpile of 85 million names will prove a great marketing tool for Realogy and a huge incentive for agents to buy franchises of the new brand.

Countrywide Begins Image Makeover from the Inside

This one is just too easy... I won't take the bait.  No pithy comments about corporate Kool-Aid drinkers or potbellied mortgage brokers in NFL spandex.  Just the facts.

The well-documented travails of battered home lender Countrywide Financial include a 20% reduction of its workforce and a $2 billion bailout by rival bank of America.  To begin its slow climb back to glory, the company is embarking on a PR campaign geared to its own workers.  Efforts include conference calls with internal "opinion leaders" and financial rewards for top performers.  Amid this comes the funniest part; workers who survived the pink slip grim reaper are expected to sign a pledge to "demonstrate their commitment" to the company's efforts.  Each employee who signs up receives a wristband made of green rubber bearing the campaign's slogan: "Protect Our House."

Sound anything like the old Under Armour commercials?  The ones where buff football players preparing for a game declare that they "MUST PROTECT THIS HOUSE!"

It just so happens that the man leading this charge may know a thing or two about locker room speeches.  The executive managing director for residential lending at Countrywide is a Drew Gissinger, a former O-lineman with the Chargers. 

Watch a video of the Under Armour commercial here, and a free HotPads T-Shirt to anyone who remakes this with actual mortgage reps.

2007 Great Places in America Announced

The American Planning Association has released their list of the "Great Places in America" for 2007. They have announced both Great Streets and Great Neighborhoods. 

According to the APA CEO Paul Farmer, these Great Places have been honored "to recognize their efforts to create safe and sustainable places to live, work, and visit. These Great Places are singled out because they showcase what can be achieved in communities across the country."

While the APA have singled out neighborhoods across the country, they are all well-planned out communities that share several characteristics like functionality and sustainabilty with an eye towards community.   The neighborhoods that they have chosen to highlight this year and their titles are as follows:

Chatham Village-- Pittsburgh, PA
    "Where Nature is At Your Doorstep"
Eastern Market--  Washington, DC
    "Civic Activism Enduring Staple of Neighborhood"
            Apartments near Eastern Market
Elmwood Village--  Buffalo, NY
    "Economic and Cultural Renaissance is Alive and Well"
First Addition--  Lake Oswego, OR
    "Where Community Comes First"
Hillcrest--  San Diego, CA
    "Diverse, Urbane, and Trendsetting"
North Beach--  San Fransico, CA
    "Authentic Character is Intact 150 Years Later"
        Apartments near North Beach
Old West Austin--  Austin, TX
    "Resident Participation Keeps Neighborhood Character Intact"
Park Slope--  Brooklyn, NY
    "Community Participation Sustains historic Design and Modern Amenities"
       Apartments in Park Slope
Pike Place Market--  Seattle, WA
    "Preservation Lives with Compact, Diverse Urban Living"
        Apartments near Pike Place Market
West Urbana--  Urbana, IL
    "Citizen Engagement Brings Strength and Vitality"

Check out the APA site for articles about the "Best Streets" in America.

Thanks to my father (who always finds great blog ideas for me) for passing this on!

Google Uncovers Swastika-shaped Government Buildings

First we had Google Maps Street View embarrassing common citizens by capturing hi-res shots of them coming out of strip clubs and picking their noses. (See the top 15 Street View sightings here.)  Now Larry & Sergey are picking on someone their own size: the U.S. Government. 

Google Earth satellite imagery allows users to see the four L-shaped buildings constructed in the late 1960s as part of the Naval amphibious base at Coronado, California that when viewed from above, form the unmistakable sign of a swastika.

Amid some public heat as word of the buildings spread on the Internet, the navy has added $600,000 to its 2008 budget to add landscaping, rock structures and solar panels to mask the shape of the buildings from the air. 

You can check out some cool aerial footage and a story below.

USA! USA! America Takes Silver in Landlord Taxes

We may not lead the world in math proficiency or foreign language skills, but in yet another category of dubious distinction (e.g. number of Britney Spears albums purchased) America once again finds itself near the top of a list we don't want to be on.

According to a study on the taxes assessed in more than 90 countries, the U.S. imposes one of the highest taxes on rental income in the world,  with only Switzerland ranking higher. The study was conducted by Global Property Guide with assistance from leading accounting firms in each country.

With real estate values in free fall for the sixth straight month, many have looked to the strong rental market as lone point of light for suffering property owners.  Rents are rising and vacancies are low, but it appears that a good chunk of those profits are going to Uncle Sam.

Luckily for apartment managers and rental property owners, they don't have to pay to find great tenants on HotPads, as listings and leads are free. 

Now we understand the need for such a high tax rate in Switzerland, what with their massive defense spending cheese research budget and all; but after nearly a decade of Republican rule the United States should not be competing for any egregious tax collection titles.

For the international econ buffs in the audience you can read the full press release with statistics from Global Property Guide here.

Agents Use Hi-Tech Mall Kiosks to Find Elusive Homebuyers

In yet another example of real estate agents employing new tactics in their efforts to unload their ever growing inventory of unsold homes, we now find agents taking their trade to shopping malls with electronic touch-screen kiosks in the same places where vendors typically hawk cheap jewelry and incense.

Some of the kiosks are manned by a person, others are expected to be viewed and used by passers-by.  Companies like REosk, Touch Point Homes and In Touch Realty Kiosk are all cashing in on the need for builders and Realtors to spend more money chasing fewer and fewer buyers.

This practice is becoming increasingly widespread, with media outlets from Roanoke, Virgina to Austin, Texas reporting on the new additions to their local mall landscape.

Luckily for rental property managers, apartment vacancy rates are low so they don't need to resort to radically new measures to find tenants.  The biggest change in rental housing marketing is the abandonment of newspaper classifieds in favor of Internet search engines like HotPads.com to keep their units occupied.

Unfortunately since there are no Internet listing services showcasing for-sale properties with the innovative features that HotPads has for rentals, agents will continue to have to catch clients between the Yankee Candle store and the Cinnabon counter at their local mall.

Got Garlic? Dracula's Castle for Sale

MLS Transylvania:  Charming fixer-upper features 19 bedrooms, 63,242 bloodbaths.

Bran Castle is a 14th century fortress perched on a cliff near Brasov in mountainous central Romania.   Rumors tell the tale of Vlad the Impaler (the inspiration for Bram Stoker's novel "Dracula") overnighting there during his murderous reign.  It is a major tourist attraction, and several movies have been shot in and around the castle.

It was confiscated by the Communists in 1948, but is now on the auction block after being returned to private ownership last year.

Princess Ileana of Romania had been given the castle as a reward for works done by her royal family, which ruled Romania from 1866 until the Communist era.  Her son, Archduke Dominic Habsburg (a New York architect) saw the castle returned to the family last year.  Habsburg originally pledged to run it as a museum until 2009 but then offered to sell it last year to the local government for $80 million.  They balked at the high price tag and he is now looking for a private buyer.  If sold, the castle could net over $100 million.

But a sale may never happen.  The property is now at the center of a legal dispute, as lawmakers in Bucharest began debating today whether the property was legally returned to Archduke Habsburg and whether he is allowed to sell it.  Habsburg's lawyers said he would file a lawsuit for $210 million if parliament votes to block the sale or confiscate the castle.  And there is plenty of reason to do so; whoever controls ownership of the site is guaranteed a fortune as a result of its tourist appeal.

Realtor Marketing Actual Homes in Virtual World

Mankind has officially reached a new milestone.  At the intersection of the real estate business and Web 2.0 (which is the street address for HotPads.com, incidentally) we now have what is considered to be the first documented case of a real estate company marketing an actual home for sale in an online world.

Coldwell Banker, one of the nation's top  realty companies, has created a three-dimensional reproduction of one of its listings on Mercer Island, Washington that can be visited on the popular online world Second Life.  Second Life member can use their avatars (i.e. Second Life characters) to walk through the 5,702-square-foot home, check out its features and interact with other potential buyers.  Coldwell Banker also has a main office in Second Life, staffed with sales reps and a manager.

Many businesses are flocking to Second Life to extend the reach of their brand, target the most web-savvy customers and explore more low-cost marketing channels.  This is the latest extension of companies leveraging new Internet applications like wikis and social networking.  You can read more about Coldwell Banker's Second Life initiative here.

While only time will tell whether this foray into Second Life will reap dividends for agents, it's tough to blame them for wanting to delve into the world of virtual reality.  As bad as the for-sale market is in most parts of the country, actual reality pretty much sucks.

One City Still Sizzles: Home Prices Up 22%, Rentals Scarce

With falling home prices threatening to bring doom and gloom to the entire U.S. economy, many Americans (e.g. Realtors, Wall Street types, everyone in Florida) can be presently found curled up in the fetal position muttering phrases like "no money down" and "adjustable rate mortgage" while praying for a Federal Reserve rate cut. 

Not so with the good folks in Salt Lake City, who are partying like it's 2005.

A study by the National Association of Realtors finds that home prices in Salt Lake City have risen by a whopping 22 percent in the past year.   This is in contrast to most markets where sales are stagnant and sellers have to cut their asking price multiple times before prospective buyers even take a tour.  Just this weekend, high-end homebuilder Hovnanian Enterprises held a new homes sale that effectively cut prices by up to $100,000 on each property.  The company was looking to offload 1,000 houses.

But in SLC, sellers are singing a different tune, and it's a happy one.  The Salt Lake Tribune is reporting that with many residents now priced out of the single-family home market, condo prices are red-hot and this is leading many owners to convert their apartment buildings to condominiums.  This is making it more difficult for prospective tenants to find rentals.  But no matter how tight the rental market becomes, HotPads.com will always make looking for an apartment fun.

Houses for a Hundred Bucks? Massive Foreclosure Auction to be Held This Month.

Always with our finger on the [weakening] pulse of the housing market, Team HotPads has been following the shocking decline of real estate prices in the Detroit area for some time now.  But it may be time to call the next of kin, with the recent announcement of one of the largest foreclosure auctions ever, which will take place September 21-23, 2007.

Hudson & Marshall, the largest foreclosed real estate auction firm in the U.S. will auction off nearly 700 Detroit homes at the Ford Motor Conference and Event Center in Dearborn, MI.  A perfect storm of subprime mortgages, jobs losses in the auto industry and inept (if not corrupt) local government has forced homeowners to drop Detroit houses like the Lions' wide receivers drop passes.

While these homes are valued at $5,000 to $600,000, some banks are willing to accept any offer on certain properties and buyers can walk away with houses for significantly less.  For buyers, these homes represent a great opportunity (if you don't factor in where they're actually located) and most will go to gamblers investors.  The auctioneer warrants that the properties come with clear titles; That means that there are no back taxes or other debts owed.  Straight cash-and-carry here.

But with a glut of homes in this market, this auction is probably not a chance for a quick flip.  These homes may be be converted to rental properties or kept as inventory in the hopes of a Motown revival.

Most of the properties can be inspected the weekend of September 15 from 1 p.m. to 3 p.m., both Saturday and Sunday. It is highly recommended that potential buyers do so.  The descriptions and addresses can be found online at Hudson & Marshall's Web site.

St. Joseph Performs Miracles for Home Sellers

With home prices dropping by double digits in some markets and inventories of unsold properties rising, desperate sellers are pulling out all the stops to give themselves an edge.  But forget about that fresh coat of paint, stainless steel appliances or baking fresh cookies to fill the house with an inviting aroma.  In these troubled times, help is available from on high in the form of St. Joseph, the patron saint of carpenters, families and home sellers.

For those readers who didn't go to Notre Dame or Georgetown, Joseph was the husband of Mary and foster father to Jesus himself, teaching him the ins and outs of the carpentry biz.  No one knows for sure how Joseph became the go-to guy to help home sellers.  What we do know is that thousands of real estate agents and their clients swear by the results they've seen.

Unfortunately, with so many unsold homes on the market, St. Joseph is very much in demand and offering up just a casual prayer simply won't do.  One must perform the full invocation, which also consists of burying a statuette of the saint on the property.  Since there is no official Vatican-approved ceremony for a speedy St. Joseph-assisted closing, arguments exist regarding important details such as burial in the front lawn vs. back lawn or face-up vs. face-down.

If you're selling a home and could use a little divine intervention, don't fret; you're not without facilitators. Several websites have cropped up to sell you everything you'll need.  So get going today and make it one less for sale sign on your block.

Blame the Brits for Higher Mortgage Bills

It's no secret that our "friends" across the pond continue to hold a grudge for a little tea party that we threw in Boston.  How else can you explain the export to our fair shores of such cultural atrocities as the Spice Girls and Mr. Bean?  Now we even see blood pudding showing up on menus in NYC.

But when people really want to hit Americans where it hurts, they go for our wallets.  The British Bankers Association has been doing its part with a rapid rise in the London Interbank Offered Rate or LIBOR.  This matters because LIBOR is one of the key indexes that determines the interest rates paid on the adjustable rate mortgages that we Yankees so love.

Approximately 25% of all U.S. home mortgages are adjustable rate loans and LIBOR is the most widely used benchmark for short term interest rates world-wide.  Despite the efforts by the Fed and other central banks to keep interest rates low and the world economy juiced, LIBOR has been rising for several reasons, mainly tied to the (now) global credit crunch. 

This chart shows the recent spike in the 3-month rate.

I would consider this LIBOR business the last straw, but we Americans are a kind and patient people.  I'll just put on a Beatles album, grab a pint of Guinness and write a blog post. 

In English.

New Number 1 in Ranking of Wealthiest States

Maybe it was the recent "retirement" of Tony Soprano or the medical waste washing up on beaches this summer, but whatever the reason New Jersey has lost its top spot as the state with the highest median household income.

The winner?  Not Hawaii or New York or Nevada.  It's Maryland.  Land of the crab cake platter, the United States Naval Academy and part of the Mason-Dixon line.  According to the latest statistics from the U.S. Census Bureau, a normal Maryland household earned $65,144 in 2006.  Dead last in the income race was Mississippi, with a median income of $34,473.

The median income for the entire United States was $48,451, up less than 1 percent from the year before.  You can check out CNN.com for a list of the best and worst earners.

For a closer look at household incomes around the country, check out the heat maps on HotPads.com. HotPads uses census data to color code the entire U.S. based on income and other statistics like age, population density and more.

Real Estate Carnival Numero 56

Hey everyone, it's been a while... sorry about that.  We're pretty busy working on some exciting stuff over here at HotPads.  I thought I'd check in and share some of the recent carnival activity from the Carnival of Real Estate #56

The 56th edition of the Carnival of Real Estate was hosted by the new GeekEstateBlog.  They did a great job highlighting both "geeky" and "non-geeky" posts this week.

Check out a full rundown of this weeks winners here.

Remember to submit to the Carnival of Real Estate by 3pm on Sundays.  But, thanks to Labor Day, posts aren't due until 3pm on Monday with the Carnival being pushed back til Tuesday. 

If it were only for rent

Someone listed a house in LA for $165,000,000.  Highest ever for the US.

The monthly payments on a 30 year, $165 million mortgage would be around $1 million!  If it were for rent, you could expect to see it listed for $500 thousand to $1 million per month.  Yes, that's about $20k per day!

Slick house though:  http://guests.themls.com/profile_page.cfm?mls=07-201017

New Developments on the Real Estate Technology Timeline

Here are some recent additions to the Real Estate Technology Timeline:

• HotPads Launches Satellite Imagery
• Trulia Adds Community Features
• vFlyer Goes Mobile
• Zillow Adds Home Q &A
• HotPads Closes Series A Financing
• Yahoo! Real Estate Launches Foreclosure Center
• Oodle Raises $11 Million in VC

If any one has any additions to the timeline please email us at timeline@hotpads.com and please keep us in mind for future developments.

Carnival of Real Estate #42

The 42nd Carnival of Real Estate is up over at RSS Pieces.

They went with a beauty pageant theme and awarded links to 5 runner-ups and crowned the 'queen,' Larry Cragan, for his post He Called It The Skyhook Theory. How About Skyhook Theory For Buyers?   Make sure to check out RSS Pieces for the full lineup.   

And, as always, remember to submit your real estate post by 3pm on Sunday, May 20, to be considered for the next carnival, hosted by HomeThinking.

Consumer Focused Real Estate Carnival

While we're veterans of the Carnival of Real Estate, I came across another blog carnival for Consumer Focused Real Estate and decided to participate. 

Luckily,the host, Sadie's Take, took a liking to all the this new-comers and our Renting in the Real World got a mention.  Take a look at the carnival post, it's an interesting topic and there are numerous interesting articles addressing the consumer side of the real estate industry.

To be eligible for each week's carnival, submit your best consumer-oriented real estate blog post by Monday at 12pm.  Next week's carnival will be hosted by Minneapolis Luxury Real Estate... see you there!

Life Expectancies of Various Household Components

Have you ever wondered how long your household appliances should last?  Well, thanks to CNNMoney.com, you need to wonder no more.  Check out this slide show that designates the life expectancies of various household components. 

Here's some examples:

Cabinets: 50 years
Countertops: 20 years to forever
Decks: Up to 20 years
Dishwashers: 9 years
Electrical: 10 years to a lifetime
Floors: 25 to 100 years
Plumbing fixtures: 15 to 50 years
Refrigerators: 13 years
Roofing: 20 to 50 years
Siding and accessories: 20 to 50 years 

The 39th Carnival of Real Estate

is up at Trulia Blog. 

In the spirit of Earth Day, Trulia awarded various "Earth-Friendly" awards to its top picks.

The top pick of the week, earning the prestigious "An Inconvenient Truth" award went to Searchlight Crusade's Misplaced Improvements in Real Estate. 

An article that I found to be particularly interesting (and the winner of the "Plant a Tree" award) was submitted by Realty Thoughts: Web 2.0 in Real Estate.   

Make sure you check out Trulia's post for the rest of the winners!   

As always, remember to submit your Real Estate post to the Carnival of Real Estate before 3 pm Sunday to be considered!  Next week's carnival is hosted by TransparentRE.