Feb 26, 2020 | Real Estate
Heading to a new place can be an exciting time; however, this is going to have an impact on someone’s relationships with family members and friends. The idea of relocation can be stressful for these emotional attachments. This can cause some hesitation as individuals and families adjust to living in a new place.
These are a few tips that everyone should keep in mind.
Keep In Touch
Of course, one of the most important tips for coping with the move is to keep in touch. This doesn’t mean that these relationships need to die. Simply arrange ways to talk with each other.
This starts with phone calls, video chats, and emails. This is a great way to stay involved in the lives of close friends and family members. Once the move has settled, invite them out to take a look at the new place. It is exciting to move to a new city and this is an opportunity to share some hospitality with loved ones.
Memories Of Loved Ones Are Important
Be sure to take souvenirs, mementos, and reminders of the old home. Pictures are the easiest way to do this. Be sure to display these photos in conspicuous places in the new home. This will ensure that these relationships aren’t forgotten.
In addition to pictures, paperweights, trinkets, postcards, and other items make great mementos and can serve as decorations in the new home. Display these on a shelf or ledge where they can be seen. This will help someone adjust to living in a new place.
Explore The New City
It is important to move forward. In order for someone to truly be happy in a new place, they need to give this location a chance. Get out of the house and explore everything the new city has to offer. Check out the bars, shops, restaurants, community spaces, and people. This is extremely important. Try to make new friends and create a solid support structure in a new place.
While it is important to maintain old relationships with family members and friends, they will want you to be happy in your new home as well. Therefore, branch out and explore. This will make coping with the move easier.
If you are in the market for a new home or interested in listing your current property, be sure to contact your trusted real estate professional.
Feb 25, 2020 | Real Estate
It is important for everyone to take steps to diversify their assets. While many people take this to mean holding multiple stocks, bonds, and mutual funds in the market, this also includes branching out into the real estate industry. The real estate industry is far more stable than the stock market and provides a fantastic opportunity to generate reliable returns. At the same time, there are lots of options to choose from when it comes to investment properties.
Here are a few tips everyone should keep in mind.
Buying And Renting
One option is to purchase a single-family home as a second building and then rent it out. On the other hand, it is also possible to purchase a multi-unit property and rent out each individual unit. One of the biggest factors to keep in mind is that the owner is going to be responsible for collecting deposits, checking the backgrounds of potential tenants, conducting repairs, and completing maintenance tasks.
If the property is located in a desirable area, it is possible for someone to collect enough rent to cover the cost of the mortgage and more. At the same time, it is also possible that someone might end up spending a considerable amount of time managing the property. It might be a solid idea to hire a property management company; however, this will eat away at the revenue. These are a few of the key factors to think about.
Flipping Houses
Another option real estate investors can consider is flipping houses. In this process, someone buys a home (which is often in a state of disrepair and inexpensive), repairs it, and then sells the home for a profit. It is also possible that someone might end up spending a significant amount of time and money renovating the home, which might eat away at any financial gains. Be sure to know exactly what repairs and renovations the home is going to need before buying.
A Real Estate Investment Trust
Sometimes, it might be too much for someone to buy individual properties. One possible option is called a real estate investment trust (REIT). This is a company that owns numerous big properties that generate incomes. Therefore, these trusts are often compared to mutual funds in the stock market but for real estate. Different REITs specialize in different areas, so there are lots to choose from.
If you are interested in buying a new home or purchasing an investment property, be sure to consult with your trusted real estate professional.
Feb 21, 2020 | Real Estate
It may come as a surprise for some people to learn that not everyone uses a real estate agent when buying or selling a home. Whenever someone is looking to move, it is critical to rely on the experience of a real estate agent. There are a few benefits that everyone should keep in mind.
Tips For Price Guidance
The price is one of the most challenging aspects of either buying or selling a home. A trained real estate agent spends his or her days looking at the prices of homes that are bought and sold in the local area.
Therefore, real estate agents can help someone sell a home both quickly and at the right price. If homes are left on the market for too long, prospective buyers might think that something is wrong with the house. This may make the home harder to sell.
Networking In The Real Estate Industry
Next, hiring professional real estate agent is important for accessing the professional network. Real estate agents typically have access to appraisers and inspectors who will be able to do a quick, easy, and cost-effective evaluation of the home. This will help the homeowner determine whether or not any repairs are necessary to get the house ready to sell.
Appropriate Financing Options
A real estate agent can also guide a prospective buyer through the financing options. There are lots of options when it comes to purchasing a home. A real estate agent can help someone review his or her options, helping a client find the right financing option for them.
Exposure For A Home Sale
One of the major benefits of working with a real estate agent is access to something called the Multiple Listing Service. This is a service where the vast majority of real estate agents list homes that are for sale. This will help any house being sold gain more exposure. The more exposure, the more potential offers, helping a house sell for a higher price.
Handling The Paperwork
One of the most often overlooked benefits of working with a real estate agent is help with the paperwork. The paperwork required to buy or sell a home can be significant. A real estate agent knows how to get through this paperwork quickly, efficiently, and accurately.
If you are in the market for a new home or interested in listing your current property, be sure to consult with your trusted real estate professional.
Feb 19, 2020 | Real Estate
Real estate investing is not only a great way to diversify assets but can also be used to generate both income and capital appreciation. While this is a fantastic opportunity, it is also important to choose investment projects carefully. It is critical to ask the right questions before making an offer on an investment property.
Why Is The Building On The Market?
There is a reason why the property is on the market. It is important to know the answer to this question. Sometimes, the house is on the market purely because the owner is moving for job or family purposes.
On the other hand, there might be an issue with the integrity of the structure. Be sure to figure out the true nature of the building before making an offer.
What Are The Other Offers?
It is important to know the competition when purchasing an investment property. Those who are trying to get the best deal possible need to know what they are up against. Asking about whether a cash offer will sweeten the deal is a great way to garner some additional insights.
What Is The Recent Maintenance?
One of the most common hidden costs in the world of real estate comes in the form of deferred maintenance. If nothing has been done on the property recently, these maintenance costs are going to be passed on to the buyer, hurting any potential ROI. Be sure to ask about any recent repairs or replacements. It’s not unusual for someone to spend a third of the building’s value on repairs.
What Is The Seller Interested In?
Be straightforward and ask what is important to the seller. Some sellers want a quick close. Other sellers want to rent the property back. There are even some sellers who want to leave the furniture behind as well. Ask what the seller needs to offload the investment property.
How Long Has It Been On The Market?
Always check and see how long the building as been on the market. If the building has been on the market for a while, figure out why it hasn’t sold. On the other hand, if the building just landed on the market, there might be more room to negotiate.
If you are in the market for a real estate investment property, your trusted real estate agent will be one of your very best assets. Be sure to make contact as soon as you are ready to start looking!
Feb 11, 2020 | Real Estate
Anyone who is looking to build a successful real estate business needs to keep meticulous records. When buying and selling property, there are a lot of tax and legal responsibilities. While some people may not want to think about this issue, the IRS may audit a real estate business. In this case, it is critical to have documentation that demonstrates proof of income as well as any credits or deductions that might have been claimed.
Some of the most common deductions that are claimed in the real estate business include depreciation, mortgage interest, repairs, insurance premiums, administrative costs, and property taxes. In order to keep records for a real estate business, there are a few categories to consider.
Improvements That Have Been Made To Properties
There are two ways that someone can deduct the costs of improvements or repairs made to properties. First, someone can deduct the entire cost of the expense during the year that it was incurred. This means the cost of materials, labor, storage, and more.
The other way that someone can claim this deduction is to depreciate its cost over a predetermined period of time. This time period is going to depend on the nature of the repair. In this case, the depreciation period would begin on the date the repair or improvement is made.
The Cost Of Cars, Mileage, And Parking
Another key category is mileage and parking. There are plenty of people who use a car to get from place to place. If this car is used for work purposes, it can be claimed as a deduction. In order to keep proper records of mileage and parking, it is important to keep either a digital or paper log for the purposes of each trip.
Then, with the number of miles driven in hand, this can be multiplied by the suggested mileage rate provided by the IRS. The grand total can be deducted from someone’s gross taxable income that year. The alternative way to calculate this is to forgo the standard rate issued by the IRS and deduct the cost of gas, maintenance, and depreciation of the vehicle. Some people like to calculate the deduction both ways and use the larger total. Just be sure to have records to support this claim.
Feb 6, 2020 | Real Estate
Did you know that some home improvements lower the resale value of a home and decrease the number of potential buyers? If you are going to repaint the exterior of your home bright, traffic-cone orange and try to sell it for a high price, think again! Maybe, if the artist Pablo Picasso once lived there that might work, but probably not under any other circumstances.
Some things are counter-intuitive. A swimming pool is an example. Swimming pools are great and highly desirable for many people. However, others do not necessarily think so and only see them as adding unnecessary expenses for maintenance and upkeep.
There are general guidelines to follow, which give you a better chance to increase the resale value of a home by making certain improvements. If possible, work with your REALTOR® who understands the local real estate market conditions before making decisions about investing in renovations to increase a home’s resale value.
Be aware that the industry averages show a percentage of recoupment of the investment and no renovations make back what they cost, in terms of increased resale value. This means you should only consider renovations that you like for other reasons as well as the potential financial impact on the home’s value. The only way to profit from renovations is to do some work yourself.
Renovations — Partial Recoupment In Resale Value
Here are the top ten things to consider with their average installation cost, average increased resale amount, and the average recoupment percentage as ranked by Remodeling in the 2020 Cost vs. Value Report:
1. Manufactured Stone Veneer (applied to the front of the home)
Installation Cost $9,357 — Increased Resale Amount $8,943 — Recoupment 96%
2. Garage Door Replacement
Installation Cost $3,695 — Increased Resale Amount $3,491 — Recoupment 94%
3. Fiber Cement Siding (applied to the exterior of the home)
Installation Cost $17,008 — Increased Resale Amount $13,195 — Recoupment 78%
4. Vinyl Siding (applied to the exterior of the home)
Installation Cost $14,359 — Increased Resale Amount $10,731 — Recoupment 75%
5. Vinyl Windows (double-pane)
Installation Cost $17,461 — Increased Resale Amount $12,761 — Recoupment 72%
6. Wooden Deck
Installation Cost $14,360 — Increased Resale Amount $10,355 — Recoupment 72%
7. Wood Windows (double-pane)
Installation Cost $21,495 — Increased Resale Amount $14,804 — Recoupment 69%
8. Steel Entry Door
Installation Cost $1,881 — Increased Resale Amount $1,294 — Recoupment 69%
9. Composite Deck
Installation Cost $19,856 — Increased Resale Amount $13,257 — Recoupment 67%
10. Asphalt-Shingled Roof
Installation Cost $24,700 — Increased Resale Amount $16,287 — Recoupment 66%
The runner-ups, with their recoupment percentages, are remodeling the bathroom (62%), metal roofing (61%), a kitchen remodel (59%), a bedroom addition (59%), and a bathroom addition (55%).
Summary
Notice that the top ten items that make the most positive impact on the resale price are all exterior projects and most of them are visible from the front of the home. The wise adage of “curb appeal sells” seems to be true when it comes to renovations that generally improve resale value.
If you are in the market for a new home or interested in listing your current property, be sure to consult with your trusted real estate professional.
