The Chicago Condo Loft » Mortgage Financing

Loss Aversion Strikes the Real Estate Market, and Hard

Lindsey Anderson — Fri, 24 Jun 2011 21:11:15 +0000

Many home owners interested in selling a house, condo, or apartment in these tough economic times often wonder if they’d be better off waiting a few months, or maybe a few years, to attempt to sell their property. The economy—they reason—will likely improve over time. And they imagine that they might be able to recoup more of their losses, or recover more of their initial investment, if they wait for the economy to pick back up a bit again. But research suggests that these home owners would often be better off selling their homes as soon as possible. After all, it makes no rational sense to hold on to a piece of property that is draining you of a significant amount of time and money, and may actually continue to depreciate in value. Research further suggest that most home owners hold onto bad investments far longer than they ought to, and this holding instinct can be chalked up to something known as “loss aversion.” Loss aversion is, according to researchers, entirely natural, but entirely unhelpful. To make matters worse, behavioral scientists have also realized that people tend to place more value on items they own than is entirely appropriate, simply because they own them. That is, home owners often imagine the property they own to be worth more than they would be willing to pay for it if they did not already own it. This bizarre logic plagues home owners of all income brackets and all intelligence levels. It’s unavoidable. But, it’s also entirely ignorable. So, the next time you consider hanging onto a piece of property you’re currently losing money on, remember that, odds are, you’d be better off selling that property as soon as you could. You don’t want to become a victim of loss aversion, and you don’t want to hold on to that bad investment. For more information about this topic, or for more Chicago based real estate news, check out the CondoDomain blog today! Research further suggest

But research suggests that these home owners would often be better off selling their homes as soon as possible. After all, it makes no rational sense to hold on to a piece of property that is draining you of a significant amount of time and money, and may actually continue to depreciate in value.

Research further suggest that most home owners hold onto bad investments far longer than they ought to, and this holding instinct can be chalked up to something known as “loss aversion.” Loss aversion is, according to researchers, entirely natural, but entirely unhelpful.

To make matters worse, behavioral scientists have also realized that people tend to place more value on items they own than is entirely appropriate, simply because they own them. That is, home owners often imagine the property they own to be worth more than they would be willing to pay for it if they did not already own it.

This bizarre logic plagues home owners of all income brackets and all intelligence levels. It’s unavoidable. But, it’s also entirely ignorable.

So, the next time you consider hanging onto a piece of property you’re currently losing money on, remember that, odds are, you’d be better off selling that property as soon as you could. You don’t want to become a victim of loss aversion, and you don’t want to hold on to that bad investment.

For more information about this topic, or for more Chicago based real estate news, check out the CondoDomain blog today!

Research further suggest

Sustainable and Affordable: The Urban-C3Project

Lindsey Anderson — Thu, 23 Jun 2011 19:10:21 +0000

If you’re interested in affordable, sustainable design you may have already heard of Square Root Architecture + Design’s Urban-C3 project. If that’s the case, you already know that—according to the Square Root Architecture + Design website—the C3 project is “the first in an innovative line of green housing.” But you may not be familiar with some of the particulars of the project. I sat down with Jeff Summers, a member of the C3 design team, the other day to learn a little more about those particulars. Can you give me an overview of the Urban C3 project, in your own words? “I’ve been working on the project for three and a half years,” Summers notes. “It’s changed a lot in that time, but essentially, it is—and it has always been—a project designed to combine affordability and efficiency in home design.” On your website, you refer to the Urban C3 as a “prefab project.” Can you describe to our readers what prefab, or prefabricated, means in this context? “The term ‘prefab’ essentially refers to anything that has been constructed offsite. So a modular prefab, in this context, might be a building built from multiple 3D components, or modules. And those components were constructed—very quickly and efficiently—offsite.” What measures have you taken to make the Urban C3 more sustainable than the average home? “Well, we’ve really focused on building a high-performance, low-maintenance home for our customers. Every C3 home has great insulation, good windows, high efficiency furnaces, and a variety of other features designed to cut down on energy consumption and improve efficiency. All in all, each C3 design exceeds sustainability standards by 50%.” And you’ve managed to improve the sustainability of your home without sacrificing its affordability? Definitely. We’ve installed a variety of products and appliances designed to cut down on the cost of utilities and maintenance for our customers. And we’ve done what we can to avoid using prohibitively expensive materials. We want the C3 project to appeal to young couples and empty nesters alike. We want it to appeal to everyone, really, and we want it to be affordable too. For more information about the Urban C3 project, check out Square Root Architecture + Design’s website here. And for more information about other green housing initiatives, check out this CondoDomain article here.

I sat down with Jeff Summers, a member of the C3 design team, the other day to learn a little more about those particulars.

Can you give me an overview of the Urban C3 project, in your own words?

“I’ve been working on the project for three and a half years,” Summers notes. “It’s changed a lot in that time, but essentially, it is—and it has always been—a project designed to combine affordability and efficiency in home design.”

On your website, you refer to the Urban C3 as a “prefab project.” Can you describe to our readers what prefab, or prefabricated, means in this context?

“The term ‘prefab’ essentially refers to anything that has been constructed offsite. So a modular prefab, in this context, might be a building built from multiple 3D components, or modules. And those components were constructed—very quickly and efficiently—offsite.”

What measures have you taken to make the Urban C3 more sustainable than the average home?

“Well, we’ve really focused on building a high-performance, low-maintenance home for our customers. Every C3 home has great insulation, good windows, high efficiency furnaces, and a variety of other features designed to cut down on energy consumption and improve efficiency. All in all, each C3 design exceeds sustainability standards by 50%.”

And you’ve managed to improve the sustainability of your home without sacrificing its affordability?

Definitely. We’ve installed a variety of products and appliances designed to cut down on the cost of utilities and maintenance for our customers. And we’ve done what we can to avoid using prohibitively expensive materials. We want the C3 project to appeal to young couples and empty nesters alike. We want it to appeal to everyone, really, and we want it to be affordable too.

For more information about the Urban C3 project, check out Square Root Architecture + Design’s website here. And for more information about other green housing initiatives, check out this CondoDomain article here.

Quick Monday: Chicago real estate round-up

Liz SanFilippo — Mon, 16 May 2011 19:28:37 +0000

Jim Reynolds talks to Forbes about the state of the Chicago housing market. Mortgage delinquency rates improve in 2011 first quarter [marketwire.com] The rate of mortgage delinquency has dropped to 6.19% in the first quarter of 2011, a new study from TransUnion reported today. The study analyzed U.S. consumers with active credit, particularly whether or not they were 60 or more days past due in paying their mortgage. Those that are past 60 days are considered delinquent. This drop in mortgage delinquency rates is a good sign, especially considering analysts had estimated the rate would be the same or slow in comparison to 2010 rates. Rather, fewer people are getting behind in mortgage payments as compared to the last quarter of 2010 when the delinquency rate was 3 to 4% higher. This improvement means that today’s borrowers are less risky, according to Tim Martin, the group VP of the U.S. Housing Market at TransUnion. Also according to Martin, this improvement can be attributed to more people staying put in their homes, rather than selling. With these new numbers, TransUnion is now expecting the mortgage deliquency rate to continue improving throughout 2011, in large part due to better economic conditions as well as tighter lending standards. More Top News: Interview with Jim Reynolds, chairman of the Chicago Housing Authority [Forbes.com] Group encourages DePaul students to explore more of the city [RedEyeChicago.com]

: Jim Reynolds talks to Forbes about the state of the Chicago housing market.

Mortgage delinquency rates improve in 2011 first quarter [marketwire.com]

The rate of mortgage delinquency has dropped to 6.19% in the first quarter of 2011, a new study from TransUnion reported today. The study analyzed U.S. consumers with active credit, particularly whether or not they were 60 or more days past due in paying their mortgage. Those that are past 60 days are considered delinquent.

This drop in mortgage delinquency rates is a good sign, especially considering analysts had estimated the rate would be the same or slow in comparison to 2010 rates. Rather, fewer people are getting behind in mortgage payments as compared to the last quarter of 2010 when the delinquency rate was 3 to 4% higher.

This improvement means that today’s borrowers are less risky, according to Tim Martin, the group VP of the U.S. Housing Market at TransUnion. Also according to Martin, this improvement can be attributed to more people staying put in their homes, rather than selling.

With these new numbers, TransUnion is now expecting the mortgage deliquency rate to continue improving throughout 2011, in large part due to better economic conditions as well as tighter lending standards.

More Top News:

Interview with Jim Reynolds, chairman of the Chicago Housing Authority [Forbes.com]
Group encourages DePaul students to explore more of the city [RedEyeChicago.com]

Chicago Condo Loft About To Go Live

Anthony Longo — Wed, 11 Mar 2009 00:45:53 +0000

The Chicago Condo Loft is about to go live. This new blog will highlight new Chciago condo develompents and luxury urban properties in downtown Chicago, IL. Get ready…we plan to launch very soon.

The Chicago Condo Loft is about to go live. This new blog will highlight new Chciago condo develompents and luxury urban properties in downtown Chicago, IL. Get ready…we plan to launch very soon.

The Chicago Condo & Loft Blog Goes Live

Anthony Longo — Tue, 08 Jul 2008 18:52:11 +0000

In anticipation for the all new CondoDomain Chicago search portal, we have pushed our local blog live! In the coming months we plan to release CondoDomain Chicago and begin working with buyers looking to purchase in downtown Chicago, IL! If you want to get a feel for what our site will be like in Chicago, IL, please feel free to check out our Boston site. Why Buy With CondoDomain? 1. We are exclusive buyers brokers! We only do 1 thing…and we do it very well! 2. Condos! Its what we know! Its what we do! 3. Flat Fee! We run an efficient business that benefits YOU, not a commission based agency that is compensated when you spend more! Our average client receives more than a $13,000 refund back at closing… We’re Hiring! If you are interested in learning more about the company please write us or check out our Facebook Group here. About CondoDomain.com LLC CondoDomain.com is a web-based real estate brokerage based in Boston, MA. The company is expanding nationwide to offer its buyers’ brokerage services in more than 30 cities around the U.S. Currently operating in Boston, CondoDomain offers an innovative flat-fee business model allowing the majority of the commission to be refunded to the buyer. By combining up-to-date MLS feeds, new construction buildings, FSBO, Foreclosures, Lofts and Auction listings all on one site, CondoDomain has become one of the most popular and user friendly real estate websites available. CondoDomain.com offers a 100% satisfaction guarantee to all of its clients, ensuring a professional, efficient, and pleasant transaction. Visit www.CondoDomain.com for more information or feel free to dive into our blogs at www.CondoDomain.com/blog. For more information, please contact Erica Farthing at (877) 852-6636. Technorati Profile

Why Buy With CondoDomain?

1. We are exclusive buyers brokers! We only do 1 thing…and we do it very well!

2. Condos! Its what we know! Its what we do!

3. Flat Fee! We run an efficient business that benefits YOU, not a commission based agency that is compensated when you spend more!

Our average client receives more than a $13,000 refund back at closing…

We’re Hiring!

If you are interested in learning more about the company please write us or check out our Facebook Group here.

About CondoDomain.com LLC

CondoDomain.com is a web-based real estate brokerage based in Boston, MA. The company is expanding nationwide to offer its buyers’ brokerage services in more than 30 cities around the U.S. Currently operating in Boston, CondoDomain offers an innovative flat-fee business model allowing the majority of the commission to be refunded to the buyer. By combining up-to-date MLS feeds, new construction buildings, FSBO, Foreclosures, Lofts and Auction listings all on one site, CondoDomain has become one of the most popular and user friendly real estate websites available. CondoDomain.com offers a 100% satisfaction guarantee to all of its clients, ensuring a professional, efficient, and pleasant transaction. Visit www.CondoDomain.com for more information or feel free to dive into our blogs at www.CondoDomain.com/blog.

For more information, please contact Erica Farthing at (877) 852-6636.

Technorati Profile