Category Archives: Real Estate Market
Strategies For Buying Real Estate In A Slow Market
The real estate market tends to be cyclical with some periods favoring buyers and other periods favoring sellers. As with other free markets, the pricing and availability of real estate is directly related to the forces of supply and demand. While many real estate markets in the United States are experiencing a substantial slowdown, other markets remain robust, and some even continue to grow. What makes the situation even more complicated is that even within a particular city or county, there may be some areas that are hot and others that are cold.
In regions of the country in which the real estate market is slowing, there are some things homebuyers can do to increase their chance of getting the property that they want on terms that are favorable. Below are some strategies to consider:
1. Clarify What You Want. Be sure to understand what kind of property you want (e.g. bedrooms, bathrooms, size, yard, location, etc.). Identify items that you “must have” and items that you would be willing to forego if your other priorities were met.
2. Consult Experts. You’ve no doubt heard the saying that “all real estate is local,” so arm yourself with the best information available. Consult a local real estate expert who can guide you about what communities are hot and which ones are not. Obviously, you are more likely to find deals in communities that have excess supply and limited demand than vice versa.
3. Understand Market Data. Obtaining and evaluating data can be one of the most powerful tools in your arsenal. Identify communities that you find desirable and ask your real estate agent to provide you relevant sales statistics. For example, your agent can provide you:
a. A summary of how many properties are available in communities that you deem desirable.
b. How long properties are taking to sell this month, last month, last quarter, last year, etc.
c. How many properties have sold this month, last month, last quarter, last year, etc.
d. Changes in the median and average price of properties for a community this month, last month, last quarter, last year, etc.
e. Data on the sales price to list price ratio (SP: LP). This ratio provides information about how much, on average, sellers are reducing their price.
f. Detailed data on properties that are similar to the type of property you desire (often known as “comparables” or “comps”).
4. High Inventory Communities. Identify, or ask your agent to identify, communities that appear to be particularly slow, and that have an unusually large inventory of homes. You will have a broader variety of options in these communities, and you may increase the likelihood of finding a better deal.
5. Loan Pre-Approval. Be sure to consult with your bank or mortgage broker and obtain a loan pre-approval document. This not only let’s you know how much you can afford, but it also demonstrates to sellers that you are a serious buyer and that your offer is worthy of serious consideration.
6. Seller’s Motivation. While information about why a seller is selling is usually confidential, there are situations in which the seller will allow their agent to disclose important factors regarding their personal situation. Be sure to ask your agent to inquire about any information that the seller has disclosed to his/her agent that can be conveyed to your agent. This information may help you decide on making an offer on a property and the price you wish to offer.
7. Home Inspection. A home inspection conducted by a qualified inspector can provide you valuable information about the condition of a property. Moreover, if there are items that need repair or replacement, you can use this information to modify your offer price or terms.
8. Expand Search Scope. As mentioned above, even within a particular city or county, there may be some areas that are hot and others that are not. Be sure to provided detailed information about what you want to your agent, so that he/she can provide you a variety of community options.
9. Be Patient. Time is on your side when there is excess supply and insufficient demand. Try not to “fall in love” with a house so much that you cannot be objective. It may be that multiple offers and counter-offers occur before you either get the property you want or decide to walk way from a deal. You may also want to look at more properties than you normally would, so that you are exposed to a variety of options.
While the above is not an exhaustive list of strategies, it is a good starting point of issues to consider when buying real estate, particularly in a market that favors buyers. Obtain the services of a knowledgeable Real Estate agent who can provide you with additional strategies to help you reach your real estate objectives.
Ocala Real Estate and Equestrian Property Buying Guide
When searching for Equestrian real estate, Ocala Florida is one of the highest rated horse lover communities in the country. Located in Central Florida, just an hour’s drive from Disney World, Ocala is filled with a vast array of equestrian properties.
Ocala real estate features properties that range from individual residential farms to equestrian communities. A popular retirement destination, residents are surrounded by beauty and elegance. A horse lover’s dream, those who buy in Ocala are typically horse enthusiasts, golfers or those who love beautiful weather and landscapes.
Buying real estate in Central Florida is an easy decision because you will always find property you like since you’ll have a vast majority of beautiful ranches, farms, and equestrian communities to choose from. The first thing is to determine what kind of living you are interested in. Living on a ranch has its solitude and wide open space. It is great for those with a large family, or those who want to be alone on their own property with their animals. Farmers and ranchers delight in keeping their own stables of horses and other farm animals on their own ranch. Other’s love the community lifestyle and caretaking of Equestrian villages,
A community offers amenities that a farm or ranch doesn’t with luxurious and well kept landscapes, trails, and activities plus many amenities such as a 20 stall barn, an arena, a jumping ring, a carriage storage facility, a thoroughbred training facility, paddocks, pastures, and a climate controlled track room with lounge. Horse enthusiasts who compete or just ride leisurely are surrounded by everything equine. Neighbors all share the same love of horses and there are many joint activities plus competitions and events to participate in.
Retirees love this kind of setting, where they are not alone, they have the support of a community and the wide open space of an equestrian village. When looking at Ocala homes with the intent to purchase, make sure the type of setting matches your interests and goals. An Ocala real estate agent can show you many farms, ranches and homes in communities or in individual settings. Depending on the condition of the home and what you plan to put into it, prices can vary. Do not get overwhelmed by the array of beautiful properties located in this area. Focus on what you want, the layout of the land, accommodations for your horses, and layout of the home. You are sure to find what you are looking for with patience and guidance.
Avoiding The Pitfalls In Today’S Real Estate Market To Pursue Total Financial Freedom
I want to share some psychological pitfalls that many budding investors fall into as they begin their careers as professional real estate investors I have told my students time and time again that while the strategies and techniques they use in investing are definitely important, the most important element that successful real estate investors possess is a healthy psychology of investing. In other words, successful investors possess the right beliefs about money and the correct mental approach to investing in real estate. This approach will put you far ahead of the crowd as you continue to pursue your total financial freedom through active real estate investing.
Pitfall #1 – Falling In Love With The Property
Many people make an unnecessary mistake when they begin their careers as active investors. They put as much passion into purchasing an investment property as they do when purchasing their own residence. Investing in investment property should be a passionless endeavor. Let me explain what I mean. When purchasing an investment property, the decision to make the deal should be all about the numbers involved and nothing about your emotions as an investor. When people purchase homes they are going to live in, they purchase emotionally. They ask themselves if they “like” the house, if they will “enjoy” living in the neighborhood, and might finally get around to considering the numbers of the deal as a third or fourth course of action. “Liking” a home and “enjoying” the neighborhood that it is in are all emotional issues.
When successful real estate investors evaluate an investment property, they are exclusively concerned about numbers. They ask themselves questions like, “Can I purchase this property for a wholesale price?”, or “Is there enough room for a healthy spread if I use this house as a Cash Flow tool?” These are facts questions that have very little if anything to do with a person’s emotions. When purchasing investment properties, keep your emotions out of it. Just buy properties that work numbers-wise. You will be glad you did.
Pitfall #2 – Being Too Greedy
One major pitfall, especially for Quick Cash investors, is the danger of being too greedy. They get a great wholesale deal on a property and then try to sell it above retail instead of at or a little below retail. Consequently, they have to hang on to the property too long and end up losing more than they gain by holding out for the greed factor. Listen, being too greedy, especially on Quick Cash deals, will come back to bite you. Remember, the beauty of QUICK cash is the QUICK part. Price your Quick Cash deals to move. Make money, but move them so that you can get on to the next deal and make more money. The key to great Quick Cash deals is in the volume, not just the spread.
Why are some folks susceptible to being too greedy? It’s because they subconsciously fear that this deal will be their last. We call that a scarcity mindset in the financial realm. Don’t fall prey to that. There are plenty of deals out there. This Quick Cash deal won’t be your last, unless you want it to be. So have an abundance mindset instead of a scarcity mindset and move forward by pricing your deals to sell.
Pitfall #3 – Thinking You Know It All
One pitfall that many people fall into after they have been investing for a while is the belief that they know everything there is to know about real estate investing. Listen, the market is always changing and the rules are, to an extent, always in a state of flux. There is always something more to learn in the realm of active real estate investing. Maybe the learning curve will be diminished for those who have learned the basics of real estate investing. In other words, maybe there won’t be as MUCH to learn, but there will always be distinctions to be made. So never stop learning.
These are the 3 major psychological pitfalls that plague some potentially successful investors. Be aware of them and you will be ahead of the game. Remembering what you have your sights set on in the first place will help you achieve you goal of total financial freedom.
Should you Hire a Real Estate Property Management Company?
To start off, I don’t own a real estate property management company, nor am I trying to send business to any real estate property management company. The purpose of this article is to make sure that you think things out (Look before you Leap) when you purchase your first rental property!
If you currently own rental property, or are planning on purchasing rental property then read on! It takes an effort to find good tenants. Everyone hopes to find someone who will appreciate your property and maintain the standard of living that was offered to them when they became your tenants. A possible solution is to find a competent real estate property management company.
Ideally, a company that specializes in the type of property you currently own, or are looking to purchase? Be it, a home, condo, apartment building, commercial, etc.
Who will be responsible for property maintenance?
In every state the law mandates that landlords perform certain repairs to maintain the property and keep it habitable. When searching for a real estate property management company, ask for referrals from current clients who use their maintenance service? Find out if they have a good reputation?
If you have no experience and/or no desire to manage your rental property, then I would suggest you hire a professional real estate property management company to over see your investment. It can take you years learning everything you need to know about managing your properties.
If you really have your heart on managing your properties there is one simple thing to do right from the start! That is setting up a DBA (Doing Business As). Create a name for your real estate property management company, and then file with your Local County Clerk’s office. Rent a P.O. Box where your tenants can send their rent payments. You don’t want to let your tenants know where you live! This could become a disaster! Also, don’t for get to open a checking account with your bank.
You might even want to use a professional business name instead of your real name when dealing with your tenants, and/or repair vendors? This really comes in handy especially when your tenants are asking for the carpet to be replaced? When you just spent $4,500.00 replacing for the last tenants, just before your current tenants moved in? You could inspect the carpet, then tell your tenants that you would have to talk with the owner to see if he/she would approve replacement of their carpet?
Side Bar: The only time I replace carpet is when the unit is vacant, to prepare for the next tenants to move in. If the carpet has a tear, then I just send out a carpet repairperson to fix it! This is a lot less expensive then installing brand new carpet!
This way they can’t confront you, because you don’t own the property, you just work for the real estate property management company? This places an invisible wall between you and your tenants, so you won’t be nickel and dime to death! Because right after you replace their carpet, the next thing they will ask for is getting their apartment painted, but not before replacing their kitchen & bathroom cabinets!
I hope by now you are starting to see how some tenants will take advantage of your good nature? Now I’m not trying to scare you out of having your very own real estate property management company? What I’m trying to do is warn you… it’s a lot of work! You must have the time and patients to deal with all types of people?
In the long run you can save a ton of money being your own real estate property management company and performing most of the repairs yourself. Of course you will need some maintenance experience when it comes to replacing toilets, sinks, faucets, etc. Plumbing will be your biggest repair expense with rental properties.
So knowing something about plumbing can really save you some serious money! Stop by your nearest hardware store or home Depot and check out their books on home repairs. You can also go to the library and check out one or two books on plumbing repairs?
In conclusion, if you manage only one or two buildings, then I would say… give it a try? If you plan on buying more then two, you probably will want to hire a professional real estate property management company. So you can spend most of you’re time searching and buying more properties.
Well, I hope that this gives you a little insight on real estate property management?
One last thing, when buying your rental properties try to purchase them fairly close together so you won’t have to do too much driving getting from one property to the next? You’ll need all the time you have focusing on more important things!
Good luck to your success!
Home Value Factors for the Summerville, SC Real Estate Market
Summerville, SC has seen some of the highest growth rates in Charleston in regards to its real estate market in the past five years. Its affordability and small town appeal account for a seemingly endless demand from home buyers. So far this year, there have been almost 1,600 properties in Summerville that are currently under contract or have already sold!
If you’re considering buying a home in Summerville, be sure to keep in mind resale value down the road. With the steadily increasing demand from home buyers, the house you purchase may very well be one of the most important investments you’ll ever make. As this increasing demand pushes increasing property values, your home may yield a higher return than any of your other investments – if you choose a home that matches the trends seen in Summerville’s real estate market.
Most buyers in Summerville want a single family home. Most buyers choose Summerville because they can get more for their money. In other words, they don’t want to have to live in a cramped condo or townhouse in their price range. If they can afford to buy a house, they will. You’ll find that there aren’t many condo and townhouse communities in Summerville, and there is a reason for this. This supple reflects the demand: more buyers in the Summerville area want single family homes. So, unless you’re looking in the under $75K price range, buy a house.
Next, be sure to buy a house with at least 3 bedrooms and 2 baths. You may think that you only really need one or one and a half baths. But, again, think about what buyers are going to want when it comes time for you to sell your home in the future – even if you plan on living in this home until you grow old. The 3/2 combination is, without a doubt, the most common in buyers’ home searches. So, if you only have one or one and a half baths, your home won’t even show up in their search results. This means that your home won’t show up in the listings they receive from their Realtor, which in turn means that they won’t be coming to view your home for a showing.
The most important factor to keep in mind for resale is that you want your home to fit as many buyers’ search criteria as possible. The more buyers your home matches, the larger the pool that makes up your demand. On the other hand, if you buy a very specific type of home – let’s say a very modern glass-walled home – it’s going to require a very specific type of buyer in the future. The pool of buyers for such a home is reduced greatly as a result. So, although such a home may be very “cool” to live in, it’s simply not the kind of home that buyers want – especially in a small town like Summerville where traditional home designs are the most sought after. If you want to live in a very specific or tailored house, that’s great – just know that the resale value is going to be lower than if you had spent the same amount of money and bought a more adaptable home.
There are several other trends that are specific to Summerville that will be important to keep in mind for future buyers. First, most of the buyers who choose Summerville want newer homes. Although I personally love the older homes, from an investment standpoint, the property value would be better for a newer home.
Also, if you can get more than 3 bedrooms and 2 baths, it will certainly help with resale value. In a lot of older homes, you’ll see only 1 or 2 bathrooms because families shared more space. As families want more privacy and more convenience, there is a strong trend (not just in Summerville, but all over the country) to have more bedrooms, and especially baths.
The Importance of Decluttering In Home Staging
As a home staging professional, your job is to design a home that any buyer can walk into and envision as their own. A very important part of this is simply creating an environment that is open, spacious, and depersonalized. When a home is filled with clutter, it can be very difficult for potential buyers to feel comfortable and can be impossible for them to picture themselves living in the space.
Simplicity is truly the key to home staging. The ideal room will contain a basic amount of furniture, accessories, and color. The idea is to give an idea of the perfect setup to the buyer while allowing their imaginations to fill in the bulk of the detail. If there are pictures, tables, lamps, and other items throughout the room, it is very hard for a buyer to imagine the room without them. Your goal as a home stager is truly to create the perfect room for imagination.
Your job is to do much more than choose the ideal furniture, curtains, and other accessories; it is also to know when to remove items from the space. Your clients may offer suggestions and hints for how they would like the room displayed, but ultimately it is up to you to employ the design and décor that will draw the eye and spark the imagination. Clutter is very distracting and can cause the demise of a potential sale.
When you declutter a room, you do more than simply make it more eye catching and inviting, you also make it larger. The more objects that are taking up space in a room, the less space potential buyers will see. While having minimal furniture is important, you want every room in the home to seem large enough to decorate and to fit the entire family. When creating space, it is important to realize that the concept doesn’t stop at floors and walls. Decluttering tables and desks is equally important. Let every eye in the room see that there is an abundance of space and an abundance of potential around every turn.
When you manage to declutter a space, you will find that the general response from potential buyers is much more positive. Your buyers are looking for the home that is truly welcoming and that will allow them to simply be themselves. When you create a depersonalized and decluttered space, you are able to give them exactly that.