Path: bloom-picayune.mit.edu!snorkelwacker.mit.edu!news.media.mit.edu!americast.com!usa-post Newsgroups: usa-today.real From: usa-post@AmeriCast.Com Organization: American Cybercasting Approved: usa-post@AmeriCast.com Subject: real Wed, Apr 15 1992 Date: Wed, 15 Apr 92 05:42:41 EDT Message-ID: 04-15 0000 DECISIONLINE: Real Estate USA TODAY Update April 15, 1992 Source: USA TODAY:Gannett National Information Network LEASE-OPTIONS ARE GOOD IDEA: Though lease-options won't work if the home seller needs an immediate cash sale, they're suitable for virtually every other home sales situation, according to industry expert Robert Bruss. A lease with option to purchase means the tenant leases the property for a set period and may buy any time during that period for an agreed price. Typically, all or part of the rent is credited. (For more, see special Lease package below.) TEXAS RETAIL MARKET GROWS: While 1991 permits for new retail buildings nationwide fell nearly 26%, Texas recorded an overall 7% increase in its 30 top markets, according to the Real Estate Center at Texas A&M University. Houston led all markets with $137 million in retail permits, up 38% from 1990. Dallas was second with nearly $107 million, up 12.5%. OFFICE BUILDING PERMITS DROP: Retail permits were up in Texas, but office building permits dropped 45% in 1991, according to Ted C. Jones of the Real Estate Center at Texas A&M University. "Obviously, Texas hasn't recovered from the office-building binge of the 1980s." Office permits nationwide were off by 31%, he said. Permits for Texas industrial buildings were down 21% for the year, compared to 35% nationally. DOMESTIC RELOCATION SLOWS: Domestic relocation activity is in a slow dance with the economy, according to Runzheimer Reports on Relocation. More than a third of 1991 respondents claim decreasing activity. Last year saw an average 212 transferees, Runzheimer says, a steep drop from 245 in 1990 and a 1989 peak of 253. In 1986, there were an average 230 transferees. LOOK INTO AUCTIONS: Developer Christine Contos says she favors the auction, when commenting on niches of opportunity for the National Network of Commercial Real Estate Women. Auctions give buyers "a favorable deal," she says. "(It's) quick, maximizes the advertising budget and generates for the seller the income needed to survive and to take advantage of the `buyer's market' " by reinvesting proceeds. HOME'S CONDITION PROMPTS ACTION: Oakland, Calif., City Attorney Jayne W. Williams Tuesday said the city has obtained a restraining order against the executor and beneficiary of the estate of Toofeek A. Fagrey. The executor is responsible for the condition of a single-family home at 3099 Suter St., East Oakland. Police and residents refer to it as the "crack house." It's the subject of a drug nuisance abatement action. FIXED-RATE MORTGAGES UNCHANGED: The rates for 30-year fixed-rate mortgages from the Federal Home Loan Mortgage Corp. were listed at 8.84% Tuesday, unchanged from Monday and down from 8.96% the week before. They were at 9.48% a year ago. For 30-year adjustable-rate mortgages, the rates were 6.15%, unchanged from Monday and down from 6.22% the week before. A year ago they were at 7.89%. ARM INDEXES DOWN: The one-year Treasury ARM index rates were listed at 4.25% Tuesday, unchanged from Monday and down from 4.50% the week before. A year ago they were at 6.22%. For the 11th District ARM index, rates were at 5.800%, unchanged from Monday and unchanged also from the week before. A year ago they were at 7.848%. T-BONDS INCREASE: Treasury security rates for the 30-year bonds showed an increase Tuesday, listing at 7.86%. That's up 0.01 from rates of 7.85%, but down 0.03 from 7.89% the week before. A year ago T-bonds were at 8.11%. SPECIAL PACKAGE ON LEASE: TENANT NEED NOT BUY: A tenant leasing a property with an option to buy it doesn't have to buy the property. But the owner has to sell it at the option price if the tenant does buy, says industry expert Robert Bruss. A lease-option is not the same as a lease-purchase agreement, where the tenant leases the property and then must buy it when the lease is up. PLACE A NEWSPAPER AD: Here's how Bruss recommends selling on lease-option. Run a classified newpaper ad headlined, "$5,000 MOVES YOU IN." He says, "Then I describe the house, the rent, the rent credit, address, and a Sunday open house from 1-3 p.m. But I never include my phone number because I will be swamped with applicant phone calls. I begin running the ad on Wednesday," he says. GET IT IN WRITING: It's a good idea to get everything in writing for a lease-option to prevent misunderstandings, says Bruss. If a real-estate agent is involved, he or she should get a partial commission up front from option money and the balance when the option is exercised. For pre-printed forms, write to Professional Publishing Corp., 122 Paul Dr., San Rafael, Calif. 94903; phone (800) 288-2006 to order. (End of package.) Real Estate Editor: Beth Mann. (1-919-855-3491) Making copies of USA TODAY Update (Copyright, 1992) for further distribution violates federal law. This article is copyright 1992 Gannett News Service. Redistribution to other sites is not permitted except by arrangement with American Cybercasting Corporation. For more information, send-email to usa@AmeriCast.COM