We asked Craig McCullough, principal for the Catalyst Group at Compass real estate in D.C., and Lindsay Reishman, founding partner of the Reishman Group and Pareto in D.C., for advice for sellers in a hurry. The following was edited for length and clarity.
Q: Some buyers may be in a rush to buy now before rates go higher. So what can sellers do to accelerate their presale prep?
McCullough: First, make a plan with the team. Many sellers rush to get done what they think is best, then they call their agent. This is the wrong order. Call your agent first. Together you can prioritize items to be done and save yourself wasted projects that won’t improve value.
Next, focus on high-return items first. Kitchen or bath updates are the best. Since time is key here, focus on the quick things, like replacing outdated cabinet hardware, sink faucets, pendant lights, etc.
Once these items are addressed, focus on things that won’t increase value but will market the house better. A neutral paint color is not likely to increase a home’s value, but it is certainly going to make buyers interested a lot faster if they don’t have to dread painting the house.
Lastly, make sure the space is neat, clean and clear of excess. You may be fine with a coffee maker, soda stream, tea kettle, knife block, canisters, etc. on your kitchen counters. I promise you buyers are not. They respond best to clear and open space. Apply the same logic to living spaces. The tchotchkes in your home may be neutral and you may not notice them because you see them daily, but buyers will feel cramped and overwhelmed. You have to pack them eventually to move, just do it early.
Also, a word of advice: Call your agent as soon as possible and use their network. I have been able to get my contractors in and out for a full kitchen and bathroom renovation in two weeks. Why? Because your agent has pull with these contractors from all the referrals they send. Just ask for help.
Reishman: Good presentation and reasonable pricing are the keys to selling quickly. Two things you can do to accelerate the process are 1. Put your listing into the MLS with a “coming soon” status while you do the work. We aren’t allowed to show the property when the status is “coming soon,” but this allows agents to get your listing on their buyers’ radar, so they’re teed up and ready to go once you go live with the listing. 2. Hire help. There are companies that specialize in managing the process, so when we’re on a short timeline and have clients with a lot that they need to coordinate, we’ll pay to have an outside company come in and oversee the process (Wayforth.com is an example of a company like this). They will coordinate with painters and movers, get quotes, help pack, etc.
Q: How are sellers adapting to rising rates?
McCullough: Most sellers are still holding strong on price, despite rising rates. The length of time and number of bidders have changed. Homes are taking longer to sell and usually you see one strong offer, not the bidding wars we were seeing consistently before. A property priced right will get its list price, as long as the seller is patient.
Reishman: There’s still very little supply and quality houses are in high demand, so no incentives are needed. The biggest difference I see is that sellers are initiating the sales process earlier to allow buyers to lock in lower rates. As an example, I have clients who are buying a house that is being built in upper Northwest D.C. and will deliver in October. Instead of waiting to sell their house in the fall, we’re privately listing it now, so buyers could lock in a rate and close on it, then rent it back to the sellers as needed.
Q: Are sellers still getting multiple offers? Is there a strategy they’re using to encourage that?
McCullough: Sellers should no longer expect multiple offers. It’s still happening, but with much less frequency. The only way to encourage this is to price low, but you also risk only one offer coming in at the low price. Right now, patience and realistic expectations are key.
Sellers should have their agent partner with a local lender to set up special financing. Many lenders will offer incentives to be advertised with the listing. This is a win for the buyer and a win for the seller. It only takes a phone call.
With rates in flux, many buyers have been shopping at the top of the approved price range. A good listing agent should be vetting the buyer’s lender and preapproval guidelines carefully. If a seller accepts an offer and the slight rate change makes the house no longer affordable, the buyer gets out and the seller has a now tainted property. Verify the buying power of the buyer before accepting an offer.
Reishman: Yes, we’re still seeing multiple offers. Our strategy continues to be making sure that the property shows great and pricing it fairly — don’t get overly greedy with the list price, but let the market dictate the value.
That’s why a leading mortgage broker is calling on the country’s eight main lenders to increase the mortgage approval timeframe from six to 12 months.
Joey Sheahan of MyMortgages.ie says swathes of borrowers are getting two or three mortgage approvals from lenders because of the time lag between their initial approval and finding a property.
“The most recent BPFI statistics showed that there were 5,355 approvals in May 2022 alone – 2,640 of which were for first-time buyers,” he said.
“From what we’re seeing on the ground, there’s a probability that up to 40% of these applicants were also approved for a mortgage in the last 12-24 months, but have not been able to find a suitable property in the intervening period. The volume of these reapplications could be reduced and could significantly lessen the workload of both borrowers and lenders alike, and could, in many cases, result in quicker turnaround times for mortgage approval in the market overall.”
Sheahan says that only around two-thirds of the €1.45bn approved in May is likely to be drawn down, based on the current approval process and lack of housing supply.
Some estate agents ‘won’t allow borrowers to view properties’ without mortgage approval
“The dearth of supply of housing in this country is likely to be with us for many years to come, unfortunately,” he added.
“In the meantime, we have to look at other ways of alleviating the stresses of potential purchasers, and expediting the process, where possible, for those who are fortunate enough to be in a position to buy.
“If banks were to introduce a 12-month approval as standard, which some banks previously offered, it would have a significant impact on the marketplace. Some estate agents won’t allow borrowers to even view properties if they do not have a current approval, meaning that borrowers are forced to keep renewing their approval.”
Sheahan believes there’s no impediment to banks offering a 12-month approval:
“There would be no risk to lenders because prior to issuing a loan offer, which is the formal contract between the lender and the borrower, the bank can always request an update from borrowers on any change of employment or other circumstances in the interim that would have a negative implication on their financial status. Mortgage approval is always subject to change prior to draw down”.
A leading property consultancy has helped a housing developer win an appeal to build up to 170 homes at a site in north Leicestershire after giving detailed evidence at a public inquiry.
Fisher German helped David Wilson Homes and Anthony Raymond Shuttlewood win its appeal against Charnwood Borough Council, which initially refused its outline planning application to create up to 170 homes at a site off Cossington Road, Sileby.
The Council initially refused permission on its officers’ advice as the site was in an ‘Area of Local Separation’ (ALS) between Sileby and nearby Cossington and that Sileby had already met the target growth as set out in the Council’s Development Plan.
However, David Wilson Homes appealed, and its case was bolstered by Fisher German’s expertise in planning matters.
Angela Brooks, Associate Director at Fisher German, was called as an expert planning witness by Paul Tucker QC, acting for David Wilson Homes, at the public inquiry.
The presumption in favour of sustainable development was engaged as the council were unable to demonstrate a five-year supply of housing.
Angela was able to successfully demonstrate that the any negative effects of the proposed development in terms of character and appearance and the conflict with the development plan were outweighed by the clear benefits.
Despite the Council’s disagreement, she argued that the development was in a sustainable location, would make provision for affordable housing and other infrastructure requirements as well as a significant over provision of open space ensuring that incursion into the ALS was minimised.
The Planning Inspector agreed with her submissions and David Wilson Homes’ case and allowed the appeal.
Angela said: “This is a fantastic result for David Wilson Homes – we felt its application did not contradict relevant guidelines and that there was a good chance the appeal would be allowed by the Planning Inspector.
“While the site was indeed in the ALS, under half of it will be developed with built form, and the separation between Sileby and Cossington would remain.
“We’re delighted the Planning Inspector agreed with our submissions and that David Wilson Homes will now be able to deliver much-needed housing in north Leicestershire.”
John Reddington, Managing Director at David Wilson Homes East Midlands, said: “Winning the appeal for a new development in Sileby is fantastic news as it brings the delivery of 170 much needed new homes ever closer for Leicestershire property seekers.
“The plans for the development include a mix of housing and will form part of a major investment in this part of the county. Our development would also underpin approximately 340 jobs for local people.”
The landowner’s Strategic Development Consultant, John Edmond of Silver Fox Development Consultancy, said: “This detailed proposal was an important test of the Council’s Area of Separation Policy. The Inspector noted that the perceptual reduction in the Area of Separation would be limited to relatively small sections with the area of different routes around the site, while the significant area of public open space proposed would retain a meaningful break in the built form.
“It was a great result that will meaningfully assist the Council in its delivery of market and affordable housing. It was a pleasure to work with a great professional team led by Paul Tucker QC.”
This was posted in Bdaily’s Members’ News section
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Perth has the highest-ever number of suburbs in the million-dollar club, after prices in 15 new suburbs recently exceeded the milestone median.
Research from CoreLogic shows there were 56 suburbs in Perth with median house prices above $1 million in May this year, compared to 41 a year previously.
Adding to fears about the affordability of Perth property, the new research shows in the year to May, 13 per cent of sales recorded a price of at least $1 million.
CoreLogic research analyst Kaytlin Ezzy said the suburban median in the million-dollar-club is almost twice Perth’s overall house median of $555,538, following a 5.6 per cent price rise across the metropolitan area in the year to May.
The new million dollar suburbs appear to be popular for many of the same reasons as those that lead the pack — close proximity to water, big blocks, good schools and proximity to the city.
Suburbs close to either the beach or the river include Fremantle, South Fremantle, Hillarys, Karrinyup, Iluka, Como, Alfred Cove, Shelley and Burns Beach.
Good schools and proximity to the city are likely to underpin the popularity of some of the inner-city suburbs on the list, including Gwelup — which increased from $859,5549 a year previously — as well as Inglewood, and Mount Hawthorn.
Como specialist for The Agency, Vanessa Naso, said her patch enjoyed the benefit of a riverside and central location as well as big blocks and good schools.
Nine of Perth’s top 10 most expensive house markets were located in the city’s inner region, with Dalkeith recording the highest median value at $2.96 million.
It eclipsed Peppermint Grove, were the median is $2,824,616, and Cottesloe ($2,689,912)
Yallingup houses in the picturesque south west town remain the west’s only regional market to make the million-dollar list with a current median value of $1,620,473
The research found that nationally, 1,367 or 30.4 per cent of house and unit markets analysed in May recorded a median value of $1 million or more.
“High consumer sentiment, tight advertised supply, and low interest rates fuelled strong home value growth throughout 2021, resulting in a new record high annual growth rate of 22.4 per cent nationally over the 12 months to January,” Ms Ezzy said.
An M&E consultancy, which has more than 50 staff in offices in Manchester, Liverpool and Birmingham, is moving to become an employee-owned trust (EOT).
Crookes Walker Consulting (CWC) was founded in 2004 by Dave Walker and Paul Crookes.
The majority shareholding will move to an employee-owned trust, which will manage CWC on behalf of its employees.
The company said the move to an EOT was seen as the best way to secure the future of the business and reward the staff for their hard work and dedication during the last 18 years.
The board of directors will remain unchanged with Chris Skinner as chief executive, Andy Ringland as chief technology officer, and Steve Plant as chief financial officer. The board will work with the Trust to bring continued growth and development plans and safeguard the ethos and core values that underpin the business, it said in a statement.
Chris Skinner said: “It is a privilege to have the opportunity to lead this great business through its next stage of evolution and the EOT structure will perfectly reflect and secure the principles upon which the company is founded.”
Explaining how they came to this decision, founders Paul Crookes and Dave Walker, said: “CWC is a knowledge based business, with a reputation for team working and excellence. We are only as good as the people within the practice and we wanted to ensure that with any succession plan, their future was not just secured but enhanced. EOT is the ideal way to achieve both goals whilst helping to attract and retain the best talent in the industry.
“As a forward facing business CWC needs to ensure it has the ability to be agile and open to change. EOT provides the opportunity for the next generation of engineering expertise and business ideas to flourish in an environment where openness and creativity benefits everyone.”
The firm added it will be consulting with its employees during the next few months to “ensure a smooth transition”, and said it was “very excited” to move together into a new era for Crookes Walker Consulting.
Details of the advisers who worked on the deal were not disclosed.
The proportion of new-build completions coming via the build-to-rent sector has grown in the last year, now accounting for over 7% of all new homes reaching the market, according to the latest rental sector insight by rental platform, Rentd.
Analysis of the total new-build completions over the last year found that build-to-rent has become an increasing focus of the new-build sector. In fact, last year, 7,123 new rental homes came via the build-to-rent sector, a 25% uplift on the volume of build-to-rent completions seen in 2020. This growth is some 7% higher than the increase seen in total new-build completions during the same period.
As a result, build-to-rent completions accounted for 7.2% of all new-build homes delivered last year, up from 6.8% the previous year.
However, the sector’s impact has been far greater in London. The 21,000 new homes delivered in the capital in 2021 account for just 10% of the UK total. The 7,123 build-to-rent completions, on the other hand, account for just shy of half (48%) of the national total.
As a result, build-to-rent completions accounted for 34% of all new-build delivery across London in 2021, with this market share increasing from 29.2% the year before.
This growth has been more muted elsewhere around the UK, with build-to-rent market share increasing from 4.1% to 4.2% between 2020 and 2021.
Ahmed Gamal, founder and CEO of Rentd, commented: “The new-build sector has evolved to deliver more than just bricks and mortar, with the lifestyle offering provided by new-build developments becoming as pivotal to their appeal as the property itself.
“So it’s hardly surprising that this focus on better quality living to suit the modern resident has transferred so well to the rental sector and, in fact, it’s more surprising that it’s taken so long to happen.
“Despite its relative infancy, the build-to-rent sector has grown rapidly and there’s no doubt it will continue to do so over the coming years, as it becomes a greater area of focus for the nation’s housebuilders.
“Of course, we remain a nation of aspirational homebuyers and so while more of us are choosing to rent until later in life, we’re unlikely to see build-to-rent eradicate this appetite to own our own homes entirely. But the sector does provide a fantastic alternative for the smaller proportion of the population who prefer the flexibility and easier freedom of movement that renting can provide.”
Shimizu (OTCMKTS:SHMUY – Get Rating) and Orion Oyj (OTCMKTS:ORINY – Get Rating) are both construction companies, but which is the better investment? We will contrast the two businesses based on the strength of their dividends, profitability, risk, earnings, analyst recommendations, institutional ownership and valuation.
This is a breakdown of current ratings and recommmendations for Shimizu and Orion Oyj, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Volatility & Risk
Shimizu has a beta of 0.58, suggesting that its stock price is 42% less volatile than the S&P 500. Comparatively, Orion Oyj has a beta of 0.69, suggesting that its stock price is 31% less volatile than the S&P 500.
Earnings & Valuation
This table compares Shimizu and Orion Oyj’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Shimizu||$13.21 billion||N/A||$425.06 million||$2.24||9.49|
|Orion Oyj||$1.23 billion||4.58||$229.29 million||$0.81||24.69|
Shimizu has higher revenue and earnings than Orion Oyj. Shimizu is trading at a lower price-to-earnings ratio than Orion Oyj, indicating that it is currently the more affordable of the two stocks.
This table compares Shimizu and Orion Oyj’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Shimizu pays an annual dividend of $0.30 per share and has a dividend yield of 1.4%. Orion Oyj pays an annual dividend of $0.49 per share and has a dividend yield of 2.5%. Shimizu pays out 13.4% of its earnings in the form of a dividend. Orion Oyj pays out 60.5% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.
Orion Oyj beats Shimizu on 6 of the 10 factors compared between the two stocks.
About Shimizu (Get Rating)
Shimizu Corporation engages in the building contracting, civil engineering, machinery, and other construction works in Japan. It is also involved in the research, planning, study, evaluation, diagnosis, soil analysis, surveying, design, supervision, management, and consultancy related to regional, urban, ocean, space, resources, and energy developments, as well as construction works and environment improvement; and purchase, sale, letting, brokerage, management, appraisal, and consultancy of real estate. The company constructs, lets, sells, and caretaking of residential houses and other buildings; plans, constructs, possesses, maintains, and operates public office buildings, roads, harbors, airports, and parks, as well as educational and cultural, medical and welfare, and water supply and sewerage facilities; generates and supplies electricity and heat; undertakes purification works; collects, disposes, and reutilizes waste; and designs, installs, leases, sells, and maintains information communication and building management system. It also engages in the cultivation, production, management, sale, and consultancy of agricultural produce and seafood, and forestry work; maintenance and upkeep, security, and cleaning of buildings, equipment, and machinery; and design, manufacture, sale, lease, and brokerage of construction machinery and materials, concrete and wooden products, furniture, and interior fitting. The company offers industrial property, copyrights, and computer software; pharmaceutical, medical care material, and medical machinery and equipment; and advertisement, publication, printing, images and other information media, business event, inland transportation, warehouse, distribution center, insurance and travel agency, manpower supply, loan, guarantee, and factoring services. It also engages in the management and consultancy of sporting, hotel, restaurant, nursing, and resort facilities. The company was founded in 1804 and is headquartered in Tokyo, Japan.
About Orion Oyj (Get Rating)
Orion Oyj develops, manufactures, and markets human and veterinary pharmaceuticals and active pharmaceutical ingredients (APIs) in Finland, Scandinavia, other European countries, North America, and internationally. It provides prescription drugs and self-care products, including Nubeqa for the treatment of prostate cancer; dexdor and Precedex for intensive care sedative; Stalevo and Comtess/Comtan for Parkinson’s disease; Simdax for acute decompensated heart failure; and Fareston for breast cancer, as well as Salmeterol/fluticasone Easyhaler, Budesonide/formoterol Easyhaler, Formoterol Easyhaler, Budesonide Easyhaler, Beclomet Easyhaler, and Buventol Easyhaler drugs for the treatment of asthma and chronic obstructive pulmonary disease. The company also offers veterinary drugs comprising Bonqat, Clevor, Domosedan, Domitor, Antisedan, Dexdomitor, Domosedan Gel, Sileo, and Tessie; and APIs for generic and proprietary drugs, as well as provides contract manufacturing services. In addition, it markets and sells veterinary drugs manufactured by other international companies. The company serves various healthcare service providers and professionals, such as specialist and general practitioners, veterinarians, pharmacies, hospitals, healthcare centers, clinics, and laboratories, as well as consumers with pets. Orion Oyj has partnership with Propeller Health to connect the Easyhaler(R) product portfolio for the treatment of asthma and COPD; and a research collaboration and license agreement with Alligator Bioscience AB (publ) to discover and develop new bispecific antibody cancer therapeutics. Orion Oyj was founded in 1917 and is headquartered in Espoo, Finland.
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Stan Anderson has gone from dealing in woodchippers and mulch to diving into real estate with a prominent building off West Broad as one of his initial deals.
The longtime head of Powhatan-based Virginia Wood Properties bought the former Boy Scouts of America building at 4015 Fitzhugh Ave. for $4.9 million last month.
The 13,300-square-foot building is currently being converted into a new headquarters for local architecture firm 3North.
Anderson’s leap into real estate follows his sale of Virginia Wood Properties about 18 months ago. He said he thinks the 25-year-old wood processing and mulch company was the first to offer colored mulch in the region.
“Whenever someone cleared any big property, they’d log and pile (the timber) all up. We’d come in with grinders and grind it all up, take the raw material to Ashland to process and color it, then sell it as colored mulch,” Anderson said.
The business grew gradually through its early years until Anderson began seeking out acquisitions of other mulch companies in the last decade. “It was a struggle at first,” he said. “But when it took off it really took off.”
The company eventually caught the eye of regional competitor Yard Works, which made an offer to Anderson. He accepted and sold his business and assets to Yard Works about a year and a half ago.
Since the deal included some real estate in mulch yards that Virginia Wood Properties owned around the region, Anderson planned to reinvest the proceeds into another property in a so-called 1031 exchange, a financial device through which individuals can defer paying capital gains taxes on a recent real estate sale.
That led him to Fitzhugh Avenue, which Petersburg-based Waukeshaw Development had bought in fall 2020 for $1.5 million. After putting in around $1 million for the 3North renovation, Waukeshaw owner Dave McCormack put the building on the market in January.
The sale to Anderson closed May 27, with One South Commercial’s Tom Rosman and Ken Campbell representing Waukeshaw in the sale. The parcel was most recently assessed at $1.5 million.
McCormack, who also owns Trapezium Brewing Co., said he had a good feeling the building would draw buyer interest.
“A lot of people know us for doing the adaptive reuse stuff and our reputation is really about that. This one may be a little more high-profile,” McCormack said. “You could really tell that it had a lot of potential and was in a good place. (The redevelopment and sale) went pretty much as we expected it to.”
Anderson, meanwhile, said he’s looking to continue adding to his portfolio.
“We’re just kind of getting started but the Fitzhugh property was a big deal. That was a cool, cool deal,” Anderson said, noting that he owns two other properties in Chesterfield and has a fourth under contract.
McCormack also has other projects in the pipeline in the region. Work continues on the former Richmond Association of Masonic Lodges building in Church Hill, which McCormack is converting into a Trapezium taproom. After initially aiming to open this summer, McCormack said he’s pushed the opening date back to the fall.
“We’re trying to open in a way that won’t stress out our upper management. We’re moving forward, but just a little slower,” he said.
Another Waukeshaw project on the horizon is Jenkins Park, a 10-acre riverfront entertainment park along the Appomattox River in Petersburg. The project been in the works since 2019 and though more remains to be done, McCormack said next week the park will be hosting the City of Petersburg’s official Independence Day fireworks show.
When Nick Slater started selling houses in King Creek on the NSW Mid North Coast a decade ago, a seven-figure price tag was “unthinkable”.
- CoreLogic report finds median house prices in nine Mid North Coast suburbs have risen above a million dollars for the first time
- Regional Development Australia Mid North Coast chief executive Kerry Grace says unattainable house prices are exacerbating a homelessness crisis
- Regional housing markets showing stronger growth compared to capital city markets
Now, he says, it is the new norm.
“Around five years ago in the King Creek market, we would have seen the first property exceed a million dollars,” Mr Slater said.
“Then gradually, we started seeing the first properties sell for over two million.
The semi-rural area saw the median value of homes sold jump by $425,000 in the year to May, according to the latest data from CoreLogic.
King Creek is one of 170 regional house or unit markets across the nation to record a median value at or above $1 million for the first time.
The total number in regional areas is now 270.
It is a common trend in the area, with eight other Mid North Coast suburbs also joining the million-dollar median club: Sapphire Beach, Moonee Beach, Korora, Bellingen, Bonny Hills, Lake Cathie, Emerald Beach and Bonville.
Mr Slater said the rise was likely due to the shifting buyer demographic, with the area’s “acreage lifestyle” in a hinterland location near a coastal regional centre attracting Sydney’s retirees.
“The proportion of city buyers has increased immensely,” he said.
He said younger families were priced out of the area.
“These large homes on acreages are absolutely perfect for families,” Mr Slater said.
“However, over recent years, as prices have grown substantially, the market has become disproportionately skewed towards semi-retired and retired couples.”
Housing affordability crisis deepens
As house prices rise, the issue of affordability continues to plague many prospective buyers.
Regional Development Australia Mid North Coast (RDAMNC) chief executive Kerry Grace said unattainable house prices were exacerbating a homelessness crisis and an essential worker shortage in regional areas.
“There’s just such a lack of availability of housing in the market whether that’s the dire shortage of rentals or the amount of houses that are actually affordable for people to buy,” Ms Grace said.
RDAMNC’s survey of key workers across industries including healthcare, aged care, childcare, hospitality and agriculture showed many had been looking to buy property in the region but found it impossible in the face of low availability and skyrocketing prices.
“We’re hearing some harrowing stories of people who can’t find rentals or get into the property market,” Ms Grace said.
Ms Grace said the organisation’s research on the housing affordability crisis revealed not only a shortage of available accommodation but a problem of empty spaces in large homes.
Byron Bay continues to be popular
The Byron and Tweed region of NSW took out four of the top five median values in regional NSW.
Byron Bay houses topped the list with a median value of $2,741,847, up approximately $400,000 from this time last year.
Casuarina, Myocum and Suffolk Park also made the top five, with medians of above $2 million. Burradoo in the Southern Highlands had the fourth-highest median at $2,416,897.
The majority of the new regional million-dollar markets are concentrated in the regions Southern Highlands and Shoalhaven,18, Illawarra,16, and Newcastle and Lake Macquarie, 23 regions.
Posted , updated