More bad news for Gulf area home values

Zero interest credit card meltdown

Homes along the immediate path of the Gulf Coast oil leak are forecast to decline at least 30 percent in value as a result of the environmental catastrophe, according to Housing Predictor.

by Broderick Perkins
© 2010 DeadlineNews.Com


Unauthorized use of this story is a copyright violation -- a federal crime


Deadline Newsroom - Much of the nation is poised to recover from the worst housing downturn since the Great Depression, but the Gulf of Mexico area's housing markets could be in for yet another home value depreciation disaster.

The April 20 explosion and fire that ruptured an oil well, killed 11 workers, sank the BP-operated Deepwater Horizon drilling rig and became the nation's greatest environmental disaster, could also take down home prices in the Gulf by as much as 30 percent -- another 30 percent.

• Also see: HomeAway.com issues marching orders for Gulf area vacation property owners

Since 2005 housing markets in the Gulf have been slammed by horrific hurricanes and a perfect economic storm, all of which have sucked away at home values like a Hoover.

Moody’s Economy.com says area home values have declined 34 percent since the peak of the residential real estate market in 2006.

And now, commercial real estate information company CoStar says the economic fallout could clip another 10 percent off home values for the next several years costing $4.3 billion in lost property values overall, along a 600-mile coastal stretch from the Louisiana Bayous to Clearwater, FL on the west side of the state's peninsula.

Real estate broker, analyst and information transparency advocate, fired in March from his job as president of New Orleans' largest real estate firm, outspoken Arthur Sterbcow told Bloomberg last week, home values in the area will fall 5 percent to 15 percent in the next 12 months.

With the hurricane season looming and growing reports about cash buyers and others in the area backing out on property purchase deals, another, more recent forecast is even gloomier.

"Homes along the immediate path of the Gulf Coast oil leak are forecast to decline at least 30 percent in value as a result of the environmental catastrophe," according to housing market forecaster Housing Predictor.

The forecast covers only the immediate waterfront properties in Louisiana and Mississippi where homes and condos have suffered home value depreciation as great as 65 percent since the peak of the market, according to Housing Predictor.

Florida, over speculated during the housing boom, has had one of the nation's worst housing busts. One in every 174 Florida properties received a foreclosure notice in May, the nation’s third highest foreclosure rate -- higher even then California, according to RealtyTrac

"Real estate values would also be seriously impacted in Florida and Alabama if the oil reaches the beaches and has a strong likelihood of crippling local economies, sending more homes and other properties into foreclosure," the Housing Predictor reported.

That could include beachfront properties in Florida's Northwest tourism region where the beaches and travel accommodations are often assets of individual vacation rental property owners, rather than hotels and resorts.

The draw of the beaches and vacation home facilities are a major asset for the region's tourism economy.

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Broderick Perkins, an award-winning consumer journalist, parlayed 30 years of old-school journalism into a digital real estate news service, the San Jose, CA-based DeadlineNews Group, including DeadlineNews.Com, a real estate news and consulting service and Web site, and the Deadline Newsroom, DeadlineNews.Com's news back shop.

Perkins was the first Examiner to cover three beats for the Examiner.com news service:
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HomeAway helps Gulf area vacation property owners brace for oil spill fallout

Aromatic sign of the times

The vast majority of tourist areas in the Gulf have not been impacted by the disaster -- beyond fledgling fears from travelers that the pristine sugar white sand beaches in the area might be soiled by oil.

by Broderick Perkins
© 2010 DeadlineNews.Com


Unauthorized use of this story is a copyright violation -- a federal crime


Deadline Newsroom - After an April 20 explosion and fire ruptured an oil well and sank the BP operated Deepwater Horizon drilling rig 5,000 feet down in the Gulf of Mexico, a travel survey revealed the 150,000 private vacation rental property owners in the area need not be concerned about the impact on tourism.

The vast majority of tourism areas in the Gulf have not been impacted by the disaster -- beyond fledgling fears from travelers that the pristine sugar white sand beaches in the area might be soiled by oil.

The draw of the beaches and vacation home facilities are a major asset for the region's tourism economy, especially in Florida's Northwest region where the beaches and travel accommodations are often assets of individual vacation property owners, rather than hotels and resorts.

Those property owners cheered the Gulf Oil Perception Study, conducted by the Beaches of South Walton (BSW) a Northwest Florida tourism group. It found that most June or July 2009 travelers to the white sand coast area planned to return again this year, with only 1 in 20 changing plans because of the leaking well oil.

Also see: "More bad news for Gulf Coast home values"

"The results of this survey should offer hope to homeowners," says Christine Karpinski, director of Owner Community at HomeAway.com an online vacation home rental portal.

"It indicates plenty of vacationers are planning to come to the Gulf Coast—even if the worst-case scenario happens. The oil spill isn't necessarily a deal-breaker," added Karpinski, also author of "How to Rent Vacation Properties by Owner" (Kinney Pollack Press, $26.00).

Unfortunately, since the survey, the worst-case scenario has happened -- after killing 11 drilling rig workers, the Deepwater Disaster has become the worst oil spill in the nation's history.

Spreading further and further along the coastal region, above and below surface, oil spill conditions have worsened and vacation property homeowners are going to have to pull out the stops to keep guests coming and protect their property values.

Worst case scenario

• The spill has affected 120 miles of shoreline stretching from Louisiana to Florida.

• Vacation beaches are open and gulf water recreation continues, but oil is looming off northwest Florida, already depositing tar balls and debris on some, after soiling stretches of marshland and coast in Louisiana, Mississippi and Alabama in the worst U.S. environmental disaster ever.

• According to scientists, every day, 12,000 to 19,000 barrels of oil are gushing into the Gulf of Mexico, wreaking havoc to environment, sea species and businesses. By day 49 of the oil leak, conservative estimates suggested 600,000 to 800,000 barrels had gushed into the Gulf from the busted well. The last worst U.S. oil disaster was in March 1989 when the Exxon Valdez tanker spilled 250,000 barrels of oil in Alaska's Prince William Sound.

• Fully one-third of the Gulf's federal waters, or 78,603 square miles, remain closed to fishing, and the toll of dead and injured birds and marine animals, including sea turtles and dolphins, is climbing.

• Hurricane seasons looms with the specter of wind borne black rain soaked in oil.

How to keep 'em coming

So how should area vacation property owners keep their vacation rental homes occupied and profitable under such adverse conditions?

"I suggest you take a two-pronged approach," says Karpinski. "First, do everything you can to reassure the guests who've already booked with you, and second, do everything you can to procure new bookings."

• Ratchet up communication with customers, but be transparent. Spend time directly assuaging their worries, without giving false information. Be patient and give them all the time they need to feel comfortable with their decision.

• Talk it up. Directly address the condition of the beaches, assuring guests that at this point they're still clean and beautiful (as long as they are). Frequently update online listing photographs of the white sands and pristine waters. Encourage recent renters to send up-to-date photos and write reviews. Also talk up area attractions, including restaurants, shopping, new travel facilities, or your beautiful pool, spa and Jacuzzi.

• Offer concessions. Offer free beach service, knock off the cleaning fee, offer buy-some-nights-get-one-free deals, throw in a gas card or free meal or discount attraction ticket. Do what it takes capture those yet-to-book vacationers.

• Loosen up your refund and cancellation policies. No one wants to accept a June booking in January, only to have the guest cancel on a whim on May 31, but these aren't normal times.

• Have an oil contingency plan. Don't devalue your property by slashing prices. Consider a "clean beach guarantee," that includes a full refund if the beach closes before they arrive; a refund for unused nights if the beach closes after arrival; a per-day percentage refund for guests who come even if the beach is closed.

• Be prepared for last-minute bookings. The BSW survey found that almost half of respondents planning to come to the Gulf Coast this summer haven't yet booked. Be accessible. List your cell phone number on your online listing's home page and or forward your home phone to your cell phone when you're out of the house. Be accessible.

• Gulf area vacation property owners can stay abreast with the "HomeAway Gulf Coast Oil Spill Update"

• Also see: HomeAway's "How to Mitigate Cancellations from the Gulf Coast Oil Spill"

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© 2010 DeadlineNews.Com

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Get "News that really hits home!" for your Web site or blog from the DeadlineNewsGroup.Com.

You are reading a sample of "News that really hits home!", now available from several beats and published in a growing number of locations.

Broderick Perkins, an award-winning consumer journalist, parlayed 30 years of old-school journalism into a digital real estate news service, the San Jose, CA-based DeadlineNews Group, including DeadlineNews.Com, a real estate news and consulting service and Web site, and the Deadline Newsroom, DeadlineNews.Com's news back shop.

Perkins was the first Examiner to cover three beats for the Examiner.com news service:
• National Offbeat News Examiner
• National Consumer News Examiner
• National Real Estate Examiner

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How to get inside a dog's head

This bed and breakfast has gone to the dogs

Frances Conklin and husband Dennis Sullivan have been letting their bed and breakfast go to the dogs since 2003. The Dog Bark Park Inn Bed and Breakfast, is a throw back to those trips along Route 66 when travelers would often buy gas, eat meals or stay overnight at a building that looked like a giant something else.

by Broderick Perkins
© 2010 DeadlineNews.Com



Unauthorized use of this story is a copyright violation -- a federal crime


Deadline Newsroom - If you get sent to the dog house, it ought to be this one.

Cottonwood, ID's Dog Bark Park Inn Bed and Breakfast, is a throw back to those trips along Route 66 when travelers would often buy gas, eat meals or stay overnight at a building that looked unlike any other.

In this case, this stop is touted as the largest dog house of its kind -- a 30-foot Beagle named "Sweet Willy" that sleeps four.

Three-stories tall, the dog inn's first story is comprised largely of the dog's legs which offer storage space and support for the floppy-eared structure.

You'll have to use a stairway, winding around his hind legs and up to his hip, to enter the belly of the beast -- just inside the second-story's windowed deck. Upon entry, immediately to the right, should you need a rest stop before settling in, is the bath room.

"Right where it should be," in the dog's hind quarters, said Frances Conklin, who along with husband Dennis Sullivan, have been letting their bed and breakfast go to the dogs since 2003.

Inside Sweet Willy's belly there's the main sleeping area for two and a small sitting area where you can, well, digest the days events. Nearer the Beagle's chest is the hospitality area with cooking and eating facilities, along with a small alcove for respite, reading or just regrouping.

A ladder stairway gets you up to the third-level loft space built into the giant dog's head where there's sleeping room for two.

But there's more.

Willy's muzzle houses yet another nook for anyone who needs some room to, well, breathe.

"It's where you can curl up to read a book. The kids always pull a blanket up there. The wall is lined with pillows," said Conklin.

The motif, of course, is also all canine, from a smaller 12-foot "Toby" Beagle sculpture outside, serving as Willy's companion to the 26 dogs carved into the queen bed's headboard.

Wood sculptors who doggedly chainsaw some of their pieces into shape, innkeepers Sullivan and Conklin also operate the Dog Bark Gift Shop and Artist's Studio onsite.

Starting at $86 a night, the stay comes with a hospitality area stocked with homemade granola, coffee bread, muffins, even hard boiled eggs, dog-shaped cookies and other goodies you can eat at room temperature or prepare in the microwave.

While the Web site doesn't specifically say guests can bring the real deal, if you ask, you'll find they are welcome -- under certain conditions.

"Responsible dogs who arrive with well-behaved humans are welcome to stay," Conklin says.

She's not woofin'. She's just sayin'.

Learn more from the Dog Bark Park Blog.

Also see: Dream vacation homes to vie for

More vacation rental news that really hits home.


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© 2010 DeadlineNews.Com

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Get "News that really hits home!" for your Web site or blog from the DeadlineNewsGroup.Com.

You are reading a sample of "News that really hits home!", now available from several beats and published in a growing number of locations.

Broderick Perkins, an award-winning consumer journalist, parlayed 30 years of old-school journalism into a digital real estate news service, the San Jose, CA-based DeadlineNews Group, including DeadlineNews.Com, a real estate news and consulting service and Web site, and the Deadline Newsroom, DeadlineNews.Com's news back shop.

Perkins is also the first Examiner to cover three beats for the Examiner.com news service:
• National Offbeat News Examiner
• National Consumer News Examiner
• National Real Estate Examiner

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Making Vacation Home Vacancies Vanish

Want to keep vacancies down and income up on your vacation home investment? Listen to this real estate investor, author and vacation home rental adviser.

by Broderick Perkins
© 2008 DeadlineNews.Com

Deadline Newsroom - The vacation home rental game has changed.

From food to fuel; eats to energy and credit to cribs, few costs have escaped inflation's wrath and that's put a damper on a lot of travel plans.

While savvy travelers often pick privately-owned vacation home accommodations to save a few bucks, many travelers don't even have a few bucks to save.

Vacation homeowners who want to attract these visitors and see vacancies vanish can benefit from "How To Attract Guests To Your Vacation Home -- Yes, Even At $4 A Gallon," a selection of tips from Christine Karpinski, a real estate investor and director of Owner Community for HomeAway.com, a portal for vacation home rentals where keeping vacation homes rented is their business.

Here's what Karpinski advises:

• Think positive. Sure money is tight and credit is tighter, but in America, bad times generate a yen for good times as people seek to escape the doom and the gloom. Even with the higher price of gas, it can still cost a lot less to drive to a nearby vacation home than to hop a jet and fly to a resort. Include marketing that makes the "budget travel" case to potential renters.

• Play up the benefits of staying in a vacation home. Vacation homes typically cost less per night, per individual than resort hotels; they often have enough room to share both the space and cost with friends and family; they offer kitchen facilities that help save money on eating out and many have private amenities you my not have to share with other guests, including hot tubs, swimming pools and private grounds.

"Spell out what makes your vacation home so great. Say 'Use our spacious kitchen to prepare fresh produce purchased from the local farmer's market.' Or 'Our crickets, owls, and whippoorwills give free concerts every evening.' "

• Do the math for your guests. Triple A's Fuel Cost Calculator provides a Point A-to-Point B estimates of gasoline costs based on regional per-gallon averages. Expedia.com, Orbitz.com, Priceline.com and airline Web sites offer airline travel costs and you can even compare room rates. Chart some comparisons and reveal the difference right there on your listing.

"There's just something about seeing the numbers in black and white that makes a trip seem more manageable," Karpinski said.

• Play up big cities within driving distance. There's plenty to do in Disneyland East (Orlando, FL), but if your vacation home is located somewhere quieter and less of a tourist trap, say Chattanooga, TN, market with the fact that Atlanta, GA, is only an hour and a half away. Make these points to potential guests.

• Play up local attractions. Meteor craters, the local cheese factory, a hike to a thundering waterfall, Route 66 can all be great fun for guests looking for a cheaper vacation with something a little quirky nearby. Some travelers don't want big city shopping, cultural attractions or fine dining, but just want to get away. Include local attractions in your marketing efforts.

• Help visitors gas up. Even after the airline-vs-gasoline savings, filling the SUV up at $100 a pop can still put the brakes on even the best cost-saving road trip. Instead of a mint on their pillow, plop down a $50 gas card and they'll sleep a whole lot better. Offer to subtract from your rate, the amount it costs in gasoline for them to drive to your vacation home.

"Is offering a small price break really that big of a deal in light of the $1,500 or so you'll be pulling in?" Karpinski asked.

• Allow pets. Pet owners hate to leave pets at home when they are away, but the cost of kennels and pet sitters could make them turn off vacation plans altogether. Offering to let renters bring their furry friends could change some minds.

"Many vacation homeowners let guests bring pets along, and very few regret it. People who love their pets enough to want to bring them on vacation usually have pets who are accustomed to being inside -- and indoor pets aren't typically destructive," Karpinski said.

• Add special touches, including insider information about the destination; a ping pong table (something there may not be room for at home); a soft-serve ice cream maker, espresso machine, or waffle iron (kitchen gadgets they don't have at home); high-speed Internet access; baby gear; great bed linens for sleeping luxury; terry cloth bathrobes, just like those at high-end hotels;
a DVD player (or a computer with one) and a good library of recent releases; a selection of popular board games, hand held video games or computer games; a small parting gift, a memento, a souvenir just for the memories.

© 2008 DeadlineNews.Com

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Broderick Perkins, an award-winning consumer journalist of 30 years, is publisher and executive editor of San Jose, CA-based DeadlineNews.Com, a real estate news and consulting service, and the new Deadline Newsroom, DeadlineNews.Com's new backshop. In both cases, it's where all the news really hits home.

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Foreign Travel To Boost 2008 Vacation Home Market

Foreigners cashing in on the weak U.S. dollar to buy homes in America are also expected to boost the nation's 2008 vacation home rental market.

by Broderick Perkins
© 2008 DeadlineNews.Com

Deadline Newsroom - If you want to keep your vacation home occupied this year, your 2008 vacation home marketing campaign should include an international outreach effort.

More travelers from abroad are coming to America this year.

The same weak U.S. dollar that's enticing foreigners to buy vacation homes in America will also give foreign tourists more travel for their bucks.

And travel bargain hunters typically look to vacation homes for accommodations with extra value. Virtually all customers who have stayed in a vacation rental -- 99 percent -- say they would stay there again, according to Destination Hotels & Resorts.

The Travel Industry Association forecasts foreign travel expenditures in the U.S. will amount to nearly $99 billion in 2008, up more than 7 percent over 2007.

Domestic travel spending should come in at nearly $680 billion, but that's only a 5 percent increase over 2007.

Also, 4 percent more foreigners will visit the U.S. in 2008, compared to 2007, but the number of domestic travelers will increase by only 2 percent, according to the Travel Industry Association.

Tourists who want both home-like amenities and the best stay for the money often look to the vacation home rental market to fulfill both needs.

Travel guru Ed Perkins says in 2008, vacation rentals offer the best antidote to rising hotel rates and the Internet makes finding travel housing easy.

"The surprising thing is the actual cost to rent the homes. I think, the average traveler thinks that vacation homes are expensive to rent. Our survey results show the opposite," said Christine Karpinski, real estate investor, author and director of Owner Advocacy for HomeAway.Com.

"Yes, there are the $20,000-a-week properties out there, but the vast majority of the homes available for rent are within the $100-$300 per night, peak-season range and if you want to travel off peak, you can snag a very nice place for $100-$200/night," Karpinski said.

In the HomeAway survey of nearly 4,000 vacation home owners, 20.9 percent charged from $100 to $142 a night; 22.78 percent charged $143 to $199 per night; 23.99 percent charged $200 to $299.

"And these are nice properties, properties on the beach, with swimming pools, tennis, on site-restaurants, high speed Internet, etc. They cost anywhere from $400,000 to $500,000 to purchase, but for the renters, they are only $250 per night during peak season, and during off-peak, you can rent them for as little as $150 a night," said Karpinski.

In another HomeAway survey of more than 36,000 travelers, nearly 60 percent said they plan on renting a vacation home, rather than a hotel or other accommodations for their next vacation.

"Since 75 percent of the respondents to this survey have children, it's quite obvious that for families, renting a vacation home offers so much more than a single hotel room. They can put their kids to bed in separate room, have the convenience of the kitchen (not eating out every meal), and the cost will not break their budgets," Karpinski said.

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© 2008 DeadlineNews.Com

Broderick Perkins, an award-winning consumer journalist of 30 years, is publisher and executive editor of San Jose, CA-based DeadlineNews.Com, a real estate news and consulting service, and the new Deadline Newsroom, DeadlineNews.Com's new backshop. In both cases, it's where all the news really hits home.

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