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;
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 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.
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.
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.
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.
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:
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.
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.
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.
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.
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;
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.
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.
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.
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.
Making the final decision to sell your investment property isn’t easy. You must make certain you are selling at the right time. This will help put you in a position to maximize your profits at the closing table.
Should You Sell Your Investment Property?
There are many schools of thought when it comes to choosing the right time to sell an investment property. Some real estate experts believe that holding onto investment property for a long period is a sound strategy. However, this approach may not be ideal for your situation.
Here are some situations that may indicate it’s time for you to sell:
- You’re ready to retire – Selling your investment property can free up money for your retirement. Please keep in mind that selling an investment property after retiring could have a huge impact on your pension.
- You’re interested in investing in another market – You may want to consider selling if you find a property in another neighborhood.
- A major change in your life – A big change in your life may force you to think about owning an investment property. The following reasons force many people to sell their investment property: the birth of a new family member, being laid off from the job, death in the family, and sudden illness.
- The neighborhood is changing – If the market value of the homes in the area has increased, it may be time for you to cash in. However, you may want to think about selling if the market value of the homes in the area has gone down.
How to Sell Your Investment Property the Right Way
So, you’ve decided to sell it. Dozens of real estate selling systems have emerged over the years. However, we must point out that many of them are complicated.
Here are some simple steps that can help you sell your investment property with ease:
- Hire an experienced Realtor – It will cost you 6% of the selling price, but a Realtor’s services should not be undervalued. They play an integral role in the selling process. For example, they know how to market your investment property, and find a qualified buyer within a reasonable amount of time.
- Listen to your Realtor – You need to take heed to their advice. If you don’t, you may not get to the closing table.
- Make upgrades to the property – There’s an old saying in life, “It’s the little things that count.” This adage holds its weight in real estate investing. Making upgrades to your property will make it more appealing to prospective buyers. This will improve your chances of getting a buyer.
- Sell at the right price – Pricing your property properly will have a positive impact on the selling process. If your property is listed slightly below its market value, there will be more demand for your house.
- Exercise patience – It may take several months for someone to step up to the plate, and buy your property. However, exercising patience will help you make it through the selling process.
- Don’t be afraid to say no – Knowing the true market value of your home will help you avoid low-ball offers. The right buyer will eventually come along.
Selling is an investment property is a big decision. If you’re ready to cash in, there’s no reason for you to reinvent the wheel. The tips listed above can help you sell your property like an experienced real estate professional.
The real estate business is one of the most profitable investments that an individual can choose to undertake. The two options available when investing in real estate is either a resale or new construction. A resale describes a house built sometime back and had a tenant, or the owner was living in it. On the other hand, new construction represents a house where the current buyer is the first occupant.
A resale is purchased directly from the owner, while the new construction is from the individual who developed it. Compared to a resale purchase, investing in a new construction comes with several benefits, as listed below.
Investing in new construction, especially during the early phases attracts great discounts than waiting for complete construction. The real estate builders and owners easily offer these discounts as it helps them in financing the unfinished construction and gives them leverage during the development.
One of the main advantages of investing in the new construction is the low deposits that the builder needs to seal an agreement. A deposit of up to 10% of the purchase price is enough to secure the developer’s new property. The advantage of settling for the new construction is that the deposits are negotiable, allowing the buyers or investors to minimize as much as possible the amounts they spend on the property beforehand.
Low Maintenance and Repair
New constructions come with amenities that are new with no damages to them. This factor eliminates any immediate repairs and maintenance costs that the buyer would have incurred if it was a resale. This investment’s greatest benefit is that the buyer gets a warranty from the builder to cover all systems’ costs, including plumbing, for up to 2 years.
For buyers who are looking for properties to resell, the new constructions provide the advantage of faster appreciation than the resale. The general growth around the new property and closeness to essential amenities increases the value of the property.
The construction world is quickly changing, and the user preferences and tastes lean towards new technologies that the resale cannot provide. New constructions are designed and built with the latest technologies in heat insulation, air conditioning systems, environmentally friendly materials, and low maintenance technologies. This factor means that you get much better deals, better value, and satisfaction with the new constructions.