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.

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