Inside the Industry – Beyond Murphy to Manteo

Man Waives Hearing in Kidnapped Agent Case

A York, Pa., man said he “feels bad” for kidnapping a female real estate agent and chose to waive his right to a preliminary hearing to spare her “re­victimization,” his attorney announced. The homeless man, Gregory S. Knaub, said a drug addiction prompted him to kidnap a real estate agent on May 21 and force her to withdraw cash from an ATM. He allegedly lured the agent by saying he was interested in seeing a home for sale. After viewing the home, he followed the real estate agent outside and got in the backseat of her car, threatening her with a steak knife, according to police reports. Knaub is awaiting trial.

First-Timers Make Up Smaller Share of Buyers

The share of first­time homebuyers on the market is falling to historical lows, despite record levels of housing affordability. With record low mortgage rates and falling home values, many would expect first­time homebuyers to be flooding the market for their chance to get part of the American dream. However, the number of first­time homebuyers is shrinking, falling in May and June, even as the housing market shows signs of picking up. According to National Association of REALTORS’® housing data, 32 percent of buyers in June purchased their first home. Yet, the historical average tends to be 40 percent.

Entire County’s Tax Foreclosures Bought Up

The municipal government in Macomb County, Michigan, sold off its entire inventory of tax­foreclosed properties — 650 total — to a single buyer for $4.8 million. Bill McMachen, a millionaire who made his fortune in the yacht business, swept the auction, purchasing the homes for an average of slightly more than $7,000 apiece. However, since he only paid the price of the taxes owed on each property, he got some of them for as little as $50. McMachen reported that this was his first attempt at real estate investing, and added that he planned to earn $2 million by flipping some homes and donating others to needy families.

Goldman Sachs Cleared in Mortgage Probe

The Securities and Exchange Commission (SEC) has dropped plans to seek a civil enforcement action against Goldman Sachs over a $1.3 billion subprime mortgage deal. The regulators spent more than half of 2012 looking into claims that Goldman Sachs deceived investors about the quality of the securities it had sold them in 2006. The firm received SEC confirmation on Aug. 6 that it had been cleared of wrongdoing.

Man Puts ‘For Sale’ Sign on All Possessions

A man is offering up not just his Florida waterfront home and rental condo, but also basically all of his possessions and investments together on eBay, with the asking price of $3.5 million. Shane Butcher decided that instead of dying and still owning a bunch of his investments, he wants to cash out now so he can reap the financial benefits earlier. He’s offering up a waterfront Tampa Bay home, a rental condo, three cars, kayaks, video games, his gaming business called “RU Game?” with three chains, Blu­Ray players, kitchen appliances, paintings, TVs, and more. Butcher says his homes, cars, business and everything else is all paid off in full, and he’s looking for a fresh start.

Survey: Gen Y Aspires to Homeownership

ERA Real Estate’s survey of millennials, born from 1978 to 1995, found that 32 percent have already achieved homeownership — a purchase more than 90 percent of them made because they either wanted their own place or viewed ownership as a symbol of achievement. Homeownership is a future goal of 64 percent of non­owners polled, and 53 percent of millennials who do not yet own houses view them as good investments. Given that 67 percent cited the importance of affordability and nearly 80 percent deem low real estate taxes to be very important, the survey indicates that the recession has played a role in Gen Y’s thoughts on homebuying.

Canadians See U.S. Bargains Slip Away

Canadians have had a big appetite for U.S. properties in recent years while housing values in many markets across the U.S. took a tumble. But now as many housing markets pick up, bargain­hunting Canadians see opportunities closing and are rushing to take advantage of investment or getaway properties before these properties inch even higher, CBC News in Canada reports. And these days, Canadians are finding themselves in more multiple­bid situations in these recovering states and paying more than what they would have a few months ago. Still, many Canadians are finding they have an advantage in that they can make all­cash offers.

Too Stigmatized? Dahmer’s Home for Sale

Convicted serial killer Jeffrey Dahmer’s childhood home is for sale in Bath, Ohio. The home is also the site of Dahmer’s first murder in 1978. The three­bedroom, 2,170­square foot ranch­style home is located in a private wooded lot in north­ ern Ohio and is listed for $329,000. “You’ve got to kind of get past the horror factor,” says the home’s current owner, Chris Butler, who purchased it in 2005. Butler says he’s hoping other buyers can also look past the home’s history. He says that his real estate agent is vetting homebuyers to make sure they are serious about purchasing the home and not just curious to see the inside.

International Business is Booming in Florida

A study by Florida REALTORS® indicates that buyers from outside the country still favor the state when it comes to residential real estate. Latin American and Caribbean buyers accounted for 35 percent of all foreign purchases in Florida, followed by Canadians, who represented 31 percent of the buying activity, and Western Europeans, who made up 22 percent of the volume. Their favorite markets were Miami and Miami Beach, along with Fort Lauderdale. Overall, Florida REALTORS® calculated that foreign buyers spent $10.71 billion on homes in the state during the 12 months ending June 30.

Student Debt Pushes Homes Out of Reach

While college­educated workers usually pull down higher incomes than those who do not obtain a post­secondary degree, a new report indicates that many new college graduates will be unable to obtain a mortgage because their student loans will push their debt­to­income ratio too high. Student loan debt soared to $1 trillion this year. The report from Young

Invincibles, “Denied? The Impact of Student Debt on the Ability to Buy a Home,” found that today’s college graduates are actually worse off than previous generations, financially speaking. The authors estimate the average 30­year­old college graduate looking to purchase a home would need to spend about half of his or her monthly income on mortgage, student loan, credit card, and car payments, leaving them ineligible for many home loans, including those guaranteed by FHA.

Several Real Estate Firms Top ‘Fastest Growing’ List

Sixty­nine real estate companies appeared on Inc. magazine’s annual list of the fastest­growing private companies. Several appraisal and asset management companies topped the list in the real estate category, but many brokerages also made it on the list after seeing a jump in profits over the past few years. Among the real estate brokerages making the fastest­growing company list are The Force Realty, McGeough Lamacchia Realty, Asset Realty Group, Prudential Americana Group Realtors, @properties, Rapid Realty, Maximum One Realty Greater Atlanta, Keller Williams Capital Properties, Realty One Group, and ERA Sunrise Realty. Inc. magazine ranks companies annually based on overall revenue growth. The latest survey takes into account revenue growth from 2008 to 2011 with companies having to at least generate $100,000 in revenue in 2008, and at least $2 million in revenue in 2011. Companies on the list also must be privately held, for profit and based in the United States. v