Creative Ways to Market Your Real Estate Business

Creative Ways to Market Your Real Estate Business

The real estate business is one of the most lucrative fields today. From renting to leasing or buying properties, the world is growing at a swift pace. Real estate marketing is, therefore, very crucial for any agent or investor in the industry. You should invest in both online and offline marketing to ensure no market is left out. In this article, you will find some of the creative ways to market your real estate business.

Create a Professional website

You mustn’t create just any website, but a professional one, especially if your focus is on moving property. Ensure that your website is appealing and accessible. The quality of content on the website should encourage visitors to want to see more. Avoid stuffing it with too many ads, and nobody wants that. You can as well include listings on your site and make sure to keep them updated.

Get Social Media Marketing

Make use of all social media platforms such as Instagram, Twitter, and Facebook. Research from the National Association of Realtors (NAR) shows that 92% of real estate customers first use online platforms before consulting an actual agent. So make sure your social media pages are active and highlighting what you are offering. You can even engage social media influencers to help with marketing.

Engage Local Television and Radio Stations

With this, you are sure it will reach the target audience, but make sure you do it right. If you choose to advertise through television, make sure it is one with a large viewership of your target audience. Use appealing and quality images to show your clients what you have. If it is through the radio, give precise details of your location and properties. Do not forget to leave contacts in both.

Start a Blog on Matters Real Estate

If you are a real estate agent or investor and still do not have a blog on the topic, you miss out. It would be best to start a blog to give more details about your services and engage with your potential clients. It is a great way to interact with people and know what they need. From the blog, you can link your website where potential clients can find you.

Why CRM is Important in Real Estate

Why CRM is Important in Real Estate

Customers play a significant role in the real estate business. Realtors are more likely to enjoy success if their clients are happy and satisfied with their services. As a result, happy customers will recommend their friends, relatives, or co-workers about a real estate agent. There is a lot of competition in the real estate industry. Unsatisfied customers will have to look for similar services from other agents. It is why realtors need to adopt CRM. It helps them attract and retain customers.

Understanding CRM in Real Estate

Thanks to technology, real estate agents can use CRM tools to interact and create meaningful relationships with clients. Moreover, they can manage the business from a single platform anytime and anywhere. Here is why CRM is vital in the real estate industry.

Quicker Responses

In most cases, CRM tools help realtors track and manage leads. Whether the realtor turns the lead into a client will depend on how quickly an agent responds to the lead. Additionally, existing clients expect real estate agents to respond promptly to their feedback, queries, and complaints. If a client is asking for price estimates, the agent who responds quickly has a better chance of being hired.

CRM tools allow agents to communicate and respond to their clients’ concerns quickly and from anywhere. Moreover, the software will track and record all interactions to help develop effective marketing campaigns.

Long-Lasting Relationships

In the real estate business, relationships between the agents and clients shouldn’t end. It is because previous clients can tell other people about the services. Moreover, they can contact the agent when they need to purchase property in the future.

Realtors should send emails or automated messages to clients during holidays, birthdays, or anniversaries to ensure long-lasting relationships. The timing should be right. Otherwise, they are unlikely to read the email.

Managing Marketing Campaigns

Customer relationship management (CMA) helps realtors track and manage marketing campaigns to identify their business’s most effective campaign.

Easier Decision Making

Sometimes, it can be hard to determine in which client you should invest. Also, real estate agents can spend a lot of time on deals that won’t yield an acceptable profit. CRM analytics helps realtors identify better clients and sales.

From the above, it is evident how CRM software impacts the real estate industry. It allows realtors to maximize their time and also improves productivity and communications.

 

How to Break Down the 70% Rule in Home Flipping

How to Break Down the 70% Rule in Home Flipping

How do you know if a house is a smart investment or a good property to flip? You may be looking to acquire properties for your portfolio. The problem is it can be a struggle to identify good deals quickly. Read on to learn how the 70% rule will help you.

The 70% Rule is a Simple Rule of Thumb.

Investors and flippers should use the 70% rule to determine whether to buy a property. The rule states that you should only pay 70% of the after repair value of a home.

An example would be a $175,000 home that needs $10,000 in repairs. After repair, it would be worth roughly $200,000. A flipper or investor should only pay 70% of that. The total they should pay is $140,000 for the home.

This protects them from overestimating the value of the home. It also protects against downturns in the market.

Speculating that a property will increase in value can be very dangerous. Seasoned investors prefer to make money when they buy to minimize their risks. This also protects them in case they missed something.

Other Factors To Consider For the 70% Rule.

You should also consider a few other factors. Settlement costs, financing costs, and carrying costs take a large chunk out of the deal too.

Closing costs on a $200,000 property could easily be 2 to 5% of the property. This means it would be up to $10,000. Financing costs would likely be around $5,000.

You should subtract $15,000 from your offer price to account for these factors. Some sellers may not discount the whole amount. It is better to get some of these off the cost to protect your margins.

Exceptions to the 70% Rule

The 70% Rule is a simple rule of thumb for finding rentals and flips. It is only a starting point. There are other circumstances where you might want to ignore it.

One of these cases will be if you’re holding the property long-term. Then, you would not spend as much on renovations.

You would be more concerned about the cash flow. Getting a good deal would still be necessary. A better price will still allow you to get lower monthly payments. Lower payments will help you with cash flow.

Next Steps:

Take the time to determine your situation and goals. Are you looking to get quick cash? Other times you’ll be looking for steady returns over the long-term.

The 70% rule is a good rule of thumb. You should always be cautious with your repair and closing costs. It is a good starting place to protect your profits.            

 

How to Determine if a Home is Worth Flipping

How to Determine if a Home is Worth Flipping

An essential skill in making a house flipping profit in the real estate business is knowing how to value a house properly. For individuals who are in the industry to make profits from low purchases. Here are ways to determine worthy homes to flip.

Average Value Determination: The house post-rehab value is determined by considering the cost of the houses in the general vicinity and the price of recently sold homes similar to the post-rehab vision. The final worth after repairs is the value you use for determining the worth of the house.

Standard cosmetic rehab: A general rule to estimate repair costs is $20 for every square foot. Based on this assumption, adjustments can be made upwards or downwards depending on the individual house’s specifications. This value will help determine whether to select the house for flipping.

Transactional expenses: Purchase closing costs are usually paid by the seller and account for 0.5 percent of the purchase price. The selling closing costs range between 1-6 percent, with an additional 1 percent as attorney fees. Holding costs such as property taxes, insurance, utilities, and maintenance costs should also be considered.

Offer price-setting- There are formulas to determine what offer price will be stated. One way is to get 70 percent of the average repair value deducting the repair costs. Another way is to subtract the repair costs, closing and holding expenses, and desired profit from the ARV to get the right offer price.

Geographical setting: Proximity to facilities such as shopping malls, transportation services, and school increases the property’s value while highways and airports decrease it. Different locales may have various school taxes, municipal and private trash collection companies with different days.

Physical attributes: As much as the seller wants the house to stand out, it shouldn’t be so significantly marked up in features that it overshadows the neighboring houses. It will only lead to a scenario where it will be too costly for that neighborhood. The most successful house flips are those that have the most work. However, if structural issues are suspected, it would be wiser to buy a house in better condition.

Lenders- Rehab lenders give between 65-70 percent of the ARV. This factor is because an investment is made with the anticipation of making money in the end. If the lender advises otherwise, then there will not be enough equity for the investing party to make money in the end.

Trends That Attract Home Buyers

Trends That Attract Home Buyers

As a real estate agent, finding the right home for your client isn’t always easy. To find a home that interests a buyer, make sure that you know the buyer’s interest, which is a step in the right direction. To do this, you can ask the client what features they want in their home, and this way, you’ll be able to find the right home for them. Below are some of the trends that attract home buyers;

Outdoor Spaces

Many home buyers are always interested in a home with an outdoor space where they can get out of the house and relax without leaving home. In other cases, buyers want a blending indoor and outdoor living space where the living room is extended to the backyard. Outdoor spaces are important to buyers because, in summer, this space is perfect for dinners and barbecues or holding large gatherings.

Location

Location is another critical feature that buyers consider while buying a home. A home that is located in a secure neighborhood is one of the homes that interest buyers. Also, many are usually interested in homes that have easy access to main roads. Locations like these can

be very pricy, so it always necessary to go with your client’s budget.

Spacious Kitchen

The kitchen is usually considered the heart of a home. Homes with large kitchen areas, especially open floor kitchens, seem to sell faster. They sell faster because an open floor kitchen allows easy transition between rooms.

Home Offices

Many people have jobs which allow them to work from home. A home office is a feature that such types of buyers look for when purchasing a home. A home office with a door is essential because it helps one concentrate on their work without destructions. The room’s color choice should be considered because some colors do not provide a conducive environment to work.

Eco-friendly Features

Nowadays, home buyers are interested in homes that are energy efficient. Such homes are the ones that have hardwood floors, double panned windows, and energy saving lightbulbs. Homes that are energy efficient help to limit utility bills and also benefit the environment

The Number of Bathrooms

Homebuyers are often interested in homes with at least two bathrooms. As an agent, try looking for new homes for your client because most of them have this feature. A home with two bathrooms or more will tend to sell faster than that with only one bathroom because they help save time because you don’t wait around to wait for someone to finish using the bathroom. You could use the other one.

Every home buyer wants a home that has the features mentioned above. To find a home that ticks all these boxes, real estate agents should consider modern homes at affordable prices.

The Best Locations for Real Estate Investing in 2021

The Best Locations for Real Estate Investing in 2021

Covid-19 pandemic caught us unaware in 2020, bringing a lot of uncertainty in the financial and property markets. Yet, like every dark cloud, the silver lining was the realization that our homes should be a paradise where we can be comfortable even when on lockdown. Well, 2021 is promising to be a healing year. And, we anticipate more homebuyers looking for low-cost properties in less dense areas. Here are three such best locations for real estate investing in 2021:

Raleigh, NC

Population: 1.4 million

Median Home Price: $298,998

Cost of Living: 102.3

Raleigh, a high-tech powerhouse, ranked #3 as the best location for business and careers in the US in 2019. Despite the pandemic in 2020, Raleigh offers lucrative job opportunities, a good climate, and a conducive family culture. According to Zillow, home values in Raleigh grew by 5.7% in 2020. They are to rise by another 7% in 2021. And more people are migrating to Raleigh, making it a prime spot for real estate investing in 2021.

Dallas, TX

Population: 1.345 million

Median Home Price: $238,156

Cost of Living: 101.6

The Dallas housing market felt the impact of Covid-19, causing its residential sales to drop by 35% in May 2020. But, the market is recovering, experiencing a 20% increase by July. And, the mortgage rates are at an all-time low, a great incentive to homebuyers. This prime spot has a growing job market that supports the 59% renter population. Areas like Flower Mound have 10,000 job openings, accounting for its 115% renter population rise.

Tampa, FL

Population: 390,890

Median Home Price: $268,424

Cost of Living: 100.1

Tampa Bay is hosting the 2021 Super Bowl, its fifth time to host the tournament. With this, the international stage shall boost the city’s economy. Already, the city’s unemployment rate is dropping, reaching 6.8% in August from 10.2% in April. Likewise, a third of the population is renters, opting to take part in international events while on vacation. And, rental properties near the MacDill AFB attract military personnel with access to a guaranteed housing allowance. The allowance motivates them to rent first before buying a house in the region.

Bottom Line

The millennials are now getting into their prime buying years, and rental income is on the rise. And, the just concluded presidential elections saw politicians doing all they can to support the economy. Hence, 2021 presents real estate opportunities in these three top cities.

How to Stage a Home Before Selling

How to Stage a Home Before Selling

Staging your home can help your home sell faster and for more money. When it comes to selling a home, it is all about appearance. This is what staging is about, making your home appear perfect for home buyers. You will want to stage your home before taking any photos for the listing.

Cleaning

The first thing you’ll want to do is to get rid of the clutter. A cluttered home looks smaller, and you want it to appear bigger. Box up all knick-knacks, out-of-season clothing, and personal items and store them. Don’t store them in closets. Potential home buyers will look in the closets, and you want the closets to look big.

The next step to staging your home is cleaning. Not just a normal spring cleaning, but a thorough deep cleaning from the floors to the ceiling. If possible, hire a cleaning crew to clean your home.

Stage the Living Room

According to a 2017 National Association of Realtors survey, 55% of the agents believe that the living room is the most important room to stage. Next are the master bedroom and the kitchen.

You can store your old furniture and rent new furniture for the living room. If this sounds like a lot of money, it could be worth it. Staging your home can add 1-5% to the offer price.

Make it Bright

You want your home to be bright. Before a showing, open up the curtains and blinds. If your lampshades are old and dull, or the fixtures are outdated, consider replacing them.

Even dusty light bulbs can limit the amount of light. Install new LED bulbs and play with different color temperatures that range from soft to daylight. Check the Kelvin ratings to choose the perfect lighting for your home.

Stage the Outdoors

Curb appeal is important since it will be the first thing home buyers will see. Staging the outside of your home should include:

  • Mow the lawn
  • Trim the shrubs
  • Power wash your home, sidewalks, and driveway
  • Clean the windows
  • Plant flowers
  • Add some potted plants on the front porch and have a welcome mat
  • Add some outdoor furniture to the front porch
  • Make sure the house number is easy to read
Understanding How to Calculate ROI in Real Estate

Understanding How to Calculate ROI in Real Estate

In every investment an investor puts money on, the essential thing is the return on investment of that particular project. Similarly, knowing the ROI is vital just as it is in other industries. There are some ways investors use to know the ROI. However, the surest way is through calculations.

What is ROI exactly?

Return on investment is the outcome one gets after investing in a project, and in this case, real estate. Precisely, it’s the ratio between the cost of investment and the profits. It’s determined as a percentage of the cost.

Importance of calculating ROI In Real Estate

There are many benefits of calculating ROI in real estate, especially to an active investor. Below are some;

Allows for Comparison

The critical thing potential investors do before putting their resources in a project is making comparisons to know the available opportunities. For instance, real estate is comprehensive. It entails housing and land. Therefore, comparing the options available in it and their potential return is essential.

The Project’s Outcome

Return on investment allows the investor to know how much assets the real estate will produce in terms of income. That allows for room for selection.

Here are the common steps to follow;

Understanding How to Calculate ROI in Real EstateCalculate the Yearly Expected ReturnsUnderstanding How to Calculate ROI in Real Estate

It’s important to estimate how much returns to get at the end of the year before calculating any other thing.

Eliminate the Expenses

Secondly, subtracting expenses incurred throughout the month is also an essential primary step.

Don’t Forget Equity

Calculate equity and add it to the flow column to determine the net income.

Find the ROI

Do that by dividing the result in the above step by the total investment made.

Below is the formula to use;

GAIN-COST

Calculating ROI in real estate using the above formula may require consideration of various variables such as expenses. However, it’s not as complicated as others may think. Furthermore, real estate investment is a perfect investment option that you can consider. Both housing and land are profitable as long as you track your investments sufficiently.

The above steps are recommended, especially where practical results are desired. The application of the formula in real estate will enable you to get accurate results.

Exterior Home Improvements to Consider

Exterior Home Improvements to Consider

Taking good care of a home’s exterior can make it stand out from all the other houses on the block. The exterior is the first thing people notice when they see a house, so it can instantly make or break people’s first impressions. These are some exterior home improvements anyone should consider.

 

Proper landscaping and yard maintenance

Cleaning up the yard will make any home look more appealing. No one wants to see clutter or a messy front yard when they see a home for the first time. Even taking the time to get rid of little things like dirt and leaves will make a difference. A neat yard can make any home’s exterior appear significantly more appealing. Hiring a landscaper is an option for people who do not have the time to do their own landscaping.

 

A fresh coat of paint

A nice coat of paint can make an old house look new again. If a house looks like it needs to be painted, people will notice, and this can make the house look less attractive. When people get their houses painted in popular or classic colors, their homes instantly seem more inviting and valuable.

 

Outdoor lighting

This bright detail can make a house look more welcoming. Outdoor lighting can be affordable or pricey, depending on the type, but it is worth the investment.

 

A wooden deck

A deck opens the door for countless possibilities, from outdoor family barbecues to summer cocktails with friends. A deck is always worth the investment and can easily make any home stand out. It is something that people search for when looking for new houses and could be the deciding factor that makes potential buyers choose one home over another home.

 

A garden

Gardens are known for being beautiful and whimsical and can instantly make any home appear more appealing. They add color to a home’s exterior, along with a newfound sense of fun and playfulness. Gardens will seem extra attractive to potential buyers with families, as kids will enjoy playing in the “secret garden” and couples can enjoy planting flowers together as a new hobby.

 

All these home improvements are worth the investment, as they can bring any home’s exterior to the next level.

 

Important Factors to Pay Attention to Before Buying a Home

Important Factors to Pay Attention to Before Buying a Home

There can be little doubt that the purchase of a new home can be one of the most meaningful and exciting events in a person’s life. But there are certainly several steps that most potential homeowners will need to take before signing off on a big mortgage. Here are just four important considerations to make before purchasing a new house and why buyers must always beware in the housing market.

 

  1. Where is the House Located?

In the current housing market, there can be little doubt that a house’s potential value over time will be in large part determined by its location. To illustrate this fact, simply consider that a vacant lot in Palo Alto, California recently went on the market for $9 million. Indeed, the going wisdom in real estate circles for decades has been that the least impressive house in a good neighborhood is better than the most impressive house in a bad neighborhood.

 

  1. Foundation Damage

If there is visible damage to a house’s construction, potential buyers may want to give a home purchase a miss. For example, cracked concrete or uneven and lopsided floors can both be signs that a house has suffered serious foundational damage over the course of its history.

 

Moreover, fixing these issues can be a major post-purchase investment that can add tens-of-thousands of dollars to a home’s “real” cost. If you don’t want to add to the already-sizable budget constraint of taking out a mortgage, in other words, it is important to be certain that there won’t be hidden repair costs to deal with once you’ve bought a new home.

 

  1. Water Damage

In addition to foundational damage, it is very important for potential buyers to determine whether a house has sustained significant water damage. Issues related to water damage can severely affect both future repair costs on a home and the well-being of the house’s structure itself. To put it mildly, no one wants to be forced to move out of a house that they’ve just purchased! Before you finish your first inspection on a house, be sure to examine ceilings and floors for permanent stains or other signs of flooding.

 

  1. Mold Issues

When given the chance to examine a house, potential buyers should definitely be on the lookout for issues related to the growth of mold. Red or black spots around sinks, toilets, tubs, or tiling can be signs that a house is suffering from serious mold issues; indeed, dealing with these problems can be expensive and time-consuming. More importantly, issues related to mold can also affect the health of you and your family.

 

While it may be tempting to sign off on a house that seems like a dream home, savvy homebuyers should always take a critical approach to invest in real estate. Adding huge repair costs to a mortgage can often strain a person’s financial resources to the limit. Certainly, that’s no way to start a new chapter in your life.