May 14, 2019 | Real Estate
Bargains in real estate may come from identifying motivated sellers who are willing to let a property go for less than it is really worth. Real estate investors who acquire properties at a discount from current market value enhance their success by increasing their profit potential. Real estate agents who list properties owned by motivated sellers increase their chances to sell a property quickly and have happy sellers who might refer them in the future.
Here are some tips on how to find motivated sellers:
Distressed Discounts
A property that lists for a long time and then the listing shows a discount is a clear sign the owner is becoming motivated. However, just because a property shows a discount from the original listing price, it still may not be a bargain. It is important to learn if the present owner has an unreasonable expectation. Check the recent comparable sales (comps) and then offer no more than 25% less than the sales price of the lowest comp.
Track Foreclosures
For real estate investors with the liquidity to do all-cash deals, tracking foreclosure dates creates opportunities. Properties may be bought just before the final foreclosure date at a large discount because the owner knows that the house will soon be lost anyway.
Short Sales
Another all-cash deal is the short sale. In this type of sale, the lender is driving the deal. The lender is willing to accept a steeply-discounted price to avoid an expensive legal foreclosure process. These homes almost always sell for way below market price and the seller is highly motivated.
Divorce Proceedings
A couple going through a disputed divorce may be forced to sell a home in order to be able to divide the assets owned by them. These are highly motivated sellers who may simply want to get rid of the home fast as part of the process of being finished with the relationship.
Estates
Another reason why a home may need to sell is if the person who owned it died. An estate sale may be a good deal if the executor of the estate is motivated. This happens if there are multiple family members who are impatient and have claims to a portion of the assets as their inheritance.
Will Pay Cash For Houses
A simple sign or flier posted many places with “Will Pay Cash For Houses” and a telephone number on it actually may work in some areas to find motivated sellers.
Personal Networking
Ask everyone if they know of someone who needs to sell a home quickly.
Summary
Finding motivated sellers is a useful thing to do for investors looking for great deals and real estate agents wanting faster-selling properties to list. Ask a homeowner why they want to sell to learn their motivation. Property owners who experience troubles create opportunities for others who are ready to help them sell a property fast and when the need is urgent.
May 10, 2019 | Real Estate
Real estate agents, who are successful, know that getting listings is the life energy of their business. It is boring to sit around waiting for a new client to call. It is expensive to spend extraordinary amounts of money on general advertising to get listings. Clever real estate people learn how to find properties for sale before they are listed.
Value Of Unlisted Properties
Real estate agents and investors have a competitive advantage when they find properties for sale that are not listed. These off-market properties may be available at a better price. There may have little or no other competition from other potential buyers making an offer. Real estate agents can motivate buyers to move quickly to close a deal on an unlisted property before it goes on the market.
Finding Off-Market Properties
Here are five ways to find properties before they are listed:
1. Check Tax Records
Sometimes it is as simple as looking up the current owner in the tax records, making a contact, and giving an offer. That direct approach may work well as long as enough contacts are made to improve the odds of finding a motivated seller.
2. Maintain Contact With Past Buyers
Real estate agents should always stay in contact with past buyers of a property that they sold. On the anniversary of the sale date, send a nice postcard with a handwritten note that says something like “I remembered this was the date you bought your home (or building). If you ever want to sell it, give me a call.”
3. Networking
Another technique is in-person networking with people. Join professional associations, mingle with people, and learn what neighborhood they live in. Tell them someone is thinking of moving there and ask them if they might be considering selling their home or if they know someone who is.
4. Friendly Neighborhood Scouting
Become known in a neighborhood as a buyer. When an investor likes a neighborhood, a terrific strategy is to wander around, knock on doors, and hand out business cards.
People hate someone knocking on the door who is trying to sell them something. However, they usually have a very positive reaction when someone wants to buy the home. There is no need to be shy. Walk around a neighborhood, get to know it better, and the people who live there.
5. Title Companies And Real Estate Departments Of Banks
Make friends with the staff at title companies. Get to know the people working at banks in the real estate department that handles the short sales and foreclosures. These two groups are very strong sources for off-market deals.
The staff of title companies knows when a sale fails at the last moment due to loan funding issues. Bank staff knows when new foreclosures come in before they list for resale. By moving fast, an investor takes advantage of the short gaps between the time these properties are available for sale and when they get listed.
Summary
Learning how to find off-market properties creates many benefits. Investment opportunities expand for real estate investors and real estate agents create more listings for themselves with these proactive strategies. Think of this as a treasure hunt and it actually can be a lot of fun.
May 9, 2019 | Real Estate
Home price growth slowed in February according to the Case-Shiller 20-City Home Price Index. Home price growth hit its lowest rate in more than six years; this indicates that the roaring growth of home prices is settling and could provide opportunities for more would-be buyers to enter the housing market.
The 20-City Housing Market Index rose 0.20 percent in February as compared to January. Year-over year home prices grew by 3.00 percent and missed analyst expectations of a 3.20 percent growth rate. The 20-City Index reported slowing trends in home price growth and emerging trends in housing markets within metro areas tracked.
California’s Hold On Top Housing Price Growth Topples
Home price growth in Los Angeles, San Diego and San Francisco, California slowed enough to lose their hold on highest home price growth rates seen in recent years. San Francisco was the only city to lose ground in national home price growth with a reading of 1.40 percent growth.
The top three cities with highest gains in home prices were Las Vegas, Nevada with year-over year home price growth of 9.70 percent; Phoenix, Arizona home prices grew by 6.70 percent and Tampa, Florida where home prices grew by 5.40 percent year-over-year.
No double-digit home price gains were reported in the 20-City Home Price Index in February; as a comparison, home prices in Seattle, Washington had grown at a seasonally-adjusted annual rate of 12.70 percent a year ago. Rapidly rising home prices slowed in California due to lack of homes for sale coupled with affordability.
Buyers seeking affordable homes in temperate climates shifted their searches to metro areas offering more homes for sale at affordable prices. While fluctuating mortgage rates impact homebuyers depending on home loans, slower rates of home price appreciation can encourage would-be home buyers to enter the market.
Regional Home Price Growth Trends Shift
Home price growth slowed nationally; Case-Shiller’s February reading showed a year-over-year rate of 4.00 percent growth as compared to January’s reading of 4.20 percent home price growth. David M. Blitzer, chair and managing director of the S&P Indices Committee, cited slowing growth in new home sales, housing starts and residential investment as more signs of cooling housing markets. Mr. Blitzer also said that regional trends in home prices growth were shifting. While home price growth in East and West Coast and Great Lakes regions slowed, home price growth gained in inland areas.
May 8, 2019 | Real Estate
If this is your first time working with a real estate agent, you may be wondering how often you’ll be in contact with your real estate agent. Obviously, you want to be sure they’re still working for you even when you don’t hear from them. So how often should your real estate agent contact you, and when?
When Your Agent Will Likely Contact You
Expect a call from your agent when the following situations occur:
- Your agent wants permission to have an open house at your home
- Your agent is giving you feedback about the open house
- A buyer wants to view your home
- A buyer wants to come back and see it again
- An offer has been made on your home
- Your counteroffer has been approved/rejected
- A prospective buyer has made an offer on a different home
- A home inspection/photographer’s/home staging appointment is pending
- A change is needed in your listing (raise/lower price, etc.)
- Other pertinent information becomes available
When Your Agent Might Not Call You
- The buyers who viewed your home have not made an offer or expressed interest
- No one has called about viewing your home
- No action is pending
Is No News Good News?
You might go several days or even weeks without hearing from your real estate agent. No news or contact from your real estate agent isn’t necessarily good news or bad news. It’s just indicative that there’s been no activity on your home sale.
You can certainly reach out to your real estate agent, but that won’t change the fact that they have no news for you. If too much time passes with no activity, your agent will certainly contact you to make a new plan about your home listing.
There’s really no set schedule for how often a real estate agent should contact you except that they will always keep you abreast of pertinent information to do with selling your home. Remember that your agent is working for you even when they go “radio silent.”
Your agent’s primary work before the sale is behind the scenes; attending other open houses and networking with other agents and brokers to spread the word about your home for sale. Be patient and know that the wheels are turning, even if they aren’t squeaky!
May 7, 2019 | Real Estate
When you started thinking about putting your house up for sale, you probably made a list of repairs that need to be done ahead of time. If that list was long, you might be at a point where you’re asking if it’s all worth it. Will prospective buyers really notice the little things? And even if they do, will that affect how much you’re able to get for your home?
You Can Sell An Imperfect House
Your house doesn’t need to be perfect in order to sell it. Many older homes have some issues like outdated kitchens and bathrooms or wall-to-wall carpeting that needs to be replaced or gotten rid of.
But be aware that a house in need of repair or is different than a house that needs updating. Outstanding repairs are a red flag to buyers that you haven’t maintained the home as you should have over the years. Buyers may suspect that your home needs even more repairs than the obvious issues. So first off, you might have more buyers walk away from a house in need of repair and second, you will probably get less money for your home.
Outstanding Repairs Give Buyers Leverage
When you try to sell a home that’s in need of repairs, you give buyers leverage to get a lower price out of you. For instance, if your house needs a new furnace, the buyers might say, “Well, we’ll make an offer but it’s lower by this amount because we know we’ll have to get a new HVAC system as soon as we move in”.
That amount for the HVAC system will usually be more than what you could have paid for a new furnace before listing your home. You can almost always sell your house for more by taking care of repairs first.
One thing that real estate agents advise is to get an independent home inspection report before you sell. This will give you an official list of all the repairs that need to be done. Then you can pick and choose among which repairs you should take care of.
This also helps to avoid unpleasant surprises later on. Even though finishing repairs can be costly and time-consuming, many home sellers find that it’s worth it to do as much as possible before listing. The final purchase price often ends up reimbursing you for your expenses, if not for your time.
Be sure to consult with your trusted real estate professional to help you prioritize home improvement projects prior to listing.
May 1, 2019 | Real Estate
No doubt you’ve been told that curb appeal will help sell your home. But if money is short you’ll need to do some curb appeal on a budget tricks.
Following are some inexpensive curb appeal tips that really work.
Fresh Coat Of Paint
A fresh coat of paint adds curb appeal without busting the budget. With a gallon of paint you can freshen up the window ledges, shutters, front door and the garage door. Add a fresh coat of paint to decks and railings, and street lampposts, as well.
Solar Lighting
You can find inexpensive solar lighting stakes at discount stores around the country. Add these to the edges of the driveway, along the front pathway and around front hedges for nighttime curb appeal.
Metallic Paint
If you can’t afford brand new hardware for your front door, consider investing in a small tub of metallic paint. Refinish the doorknob, door knocker and the metal porch light fixtures.
Annuals
Landscaping can be pricey, but with a couple dozen inexpensive blooming annuals you can transform your front walkway. Choose the most colorful annuals you can find at your local discount store. Plant right alongside the path leading to your front door. Fill in empty spaces in between plants with colored mulch.
Wreath
Simply hanging an attractive wreath on your front door adds a tremendous amount of curb appeal that can be seen all the way from the road. To avoid marring the wood, use a wreath hanger that installs over the top rim of the door.
New House Numbers
Pick up a set of brand new house numbers from your local hardware store. Hang them front and center next to your mailbox on your porch, on your mailbox post or over your garage door.
Refreshed Mailbox
Mailboxes get ignored so many times. It’s a shame because it’s easy to add curb appeal with an inexpensive magnetic mailbox cover. If you have a different kind of mailbox, consider just giving it a fresh coat of spray paint.
Bird House
Another inexpensive way to add curb appeal is with a decorative bird house or similar lawn ornament next to your front porch. These are on long stakes that you simply push into the ground. Tick one into your hedges for a charming look.
You can complete these inexpensive curb appeal tips with a minimum of time and money. Yet, they’ll have a similar impact as if you spent hundreds of dollars.
Be sure to contact your trusted real estate professional for more tips and tricks on how to ramp up curb appeal that will generate the most interest in your property.
