Is An Income Property Right For You?

The appeal of income properties and the potential for what may seem like easy money and early retirement have likely crossed the mind of anyone who has heard of this business venture.  There is a lot more to consider before entering the income property game, however, than simply purchasing a property and watching the dollars roll in.  Here are a few things to consider before launching into your new career.

Can You Recognize An Income Property When You See It?

There are a lot of features that make a good income property.  Whether you are considering flipping it for a profit or renting it out to potential tenants, knowing what to look for is more than half the job.  Can you realistically estimate what the cost of renovations to the property will be?  Do you know what the value of the home will be after the renovations, based on its size, location, etc.?  Do you know what the market rent would be for the property?  If you can’t answer any of these questions you either have a lot of work to do, or you may want to reconsider.

Not Scared Off?

So you think you can reasonably identify an income property and are still interested in making your first purchase.  Here are a few tips for making that a success!

Know Your Intent—Whether it’s flipping or renting the property, you should have a clear picture before you make the purchase.  Have an estimate of what the renovations will cost as well as the profit margin of the investment, both in the short and long term.

Consider Splitting The Costs—Many people who enter the income property market reduce the risk by having partners.  Whether it’s a friend, relative, or business partner, this may be the right decision to minimize your risk in your first venture.

Make It Your Business—Whether you plan on doing this as an additional source of income or you are going into it full time, realizing that this is now a business will prevent you from losing a fortune.  You will spend a lot of time getting to know both the real estate and the home renovation industries, and the more you know, the more successful you will be.

Deciding to get into the income property business can be a time consuming, but ultimately very rewarding, venture.  Like any business, the effort you put in and the knowledge you have will determine the success you achieve.

 

Creating Curb Appeal

If you’re selling your home, there are a number of things you can do to improve your property’s potential value and appeal.  Creating curb appeal is one of the most effective and easy ways to accomplish this and to increase the interest of potential buyers in your home.  Here are some simple and inexpensive ways you can increase your home’s curb appeal.

Use Color Effectively

Color can be a power tool in attracting people to your home.  If the exterior of your home could use a fresh coat of paint or a new door, this is a great opportunity to add some points of interest to your property.  Always remember, however, more is less—choose colors that are similar to other homes in the area.  You can infuse more vibrant and interesting colors through accent features and flowers or plants.

Create An Inviting Entrance

Making the entrance to your home attractive and inviting will give potential buyers an instant sense of welcome the moment they walk through the door.  Make the door the focal point of the exterior of your home, and think about elements such as lighting and color to make it as attractive as possible.  Also think about details such as including a nice welcome mat on your front step, some flowers in attractive pots or urns flanking the entrance, and even consider adding a chair with a small table if you have a larger porch area.

Landscaping is A Must!

Is A Must!Making your lawn and yard attractive, free of clutter and debris, and nicely landscaped can really make all the difference in adding curb appeal.  First remove all weeds, fix any areas on your lawn that need repair, and mow it carefully.  If you have any unsightly items or clutter in the yard, remove it and replace it with well-placed flowers and plants.  If you have a large front yard with no trees, consider planting one or two to add interest and value to the property.

These are just a few of the many ways in which, with a little effort and a small amount of money, you can increase interest in your home.

 

Avoid The Most Common Mistakes When Selling Your Home

Here are the most common mistakes people make when selling their property.

Home Is Priced Too High

This will certainly turn buyers off, and you may have to make several contingencies or offer incentives in order to get buyers even interested in making an offer. While you may feel your home is special, asking more than the fair market value will usually get you nowhere.

Home Is In Bad Condition

While your home in its current condition may work for you and your family, if there are obvious repairs that need to be made, or it is terribly outdated, fixing these problems will not only make it easier to market your home, but will also increase its value.  In most cases this increase will be considerably greater than the money you put into making the changes.

Home Is Being Marketed Incorrectly

When selling your home, there are no guarantees that the ultimate buyer will simply walk through the front door.  In many cases you may have to bring your home to the buyer.  Effective marketing will help ensure that your property receives maximum exposure to attract a ready, willing, and able buyer in the shortest period of time.

By adhering to the advice in these simple tips, you can avoid the biggest mistakes homeowners make when selling their homes, and the process will be smoother and more profitable in the long run.

 

Home Buying Negotiating Tips

When it comes to buying a home, the ability and willingness to negotiate is a must for both the buyer and seller.  In general, sellers ask for more than they are actually willing to accept and buyers offer less than they are willing to pay.  The trick is to find the perfect balance so that you, as a buyer, feel good about the purchase price without leaving the seller feeling insulted.

Know Your Market

Real estate is a business that either favors the buyer or seller, hence the terms buyer’s market and seller’s market.  When negotiating a purchase price, it’s important to know which of the two you are in.  As the buyer, you will have the best chance at a successful negotiation if you research the price of other comparable homes in the area before making an offer.

Make It Personal

When you make an offer, the seller will see nothing more than a piece of paper with some numbers on it that represent the price you are willing to pay.  If you really want the seller to take your offer to heart, let them know why you want to buy the home.  You can do this by preparing a handwritten letter expressing your interest and the reasons you fell in love with their house.  If you have a family, tell them about everyone who will be living in the home.  Let them get to know you and allow them to picture the happiness that you can bring to their house.  Believe it or not, some sellers actually look at the process like finding a good home for a lost puppy.  They want quality people to buy their home, so do your best to show them that you are sincere.

Nobody Likes Rejection

Not every offer is accepted, so don’t be disheartened if your first offer isn’t a winner.  In some cases, the seller will make a counteroffer for your consideration.  Have you ever heard the old saying, “never take the first offer?”  The same is true in real estate, and almost every seller knows it.  Your first offer is likely to be less than you are actually willing to pay, which leaves you some bargaining room.

Why Your Offer May Not Be Accepted

There are a number of reasons why a seller may choose to reject an offer, including a feeling that the offer was just too low, the house is newly listed on the market or another offer may be higher than the one you created.  In some cases, sellers may also reject an offer that includes owner financing or other requests that are impossible to meet.  One example may be an offer that requires the house be available within a certain amount of time.  Most contracts require that the seller move out within 30 days, but anything less would require negotiation.

Read The Fine Print

Before you sign anything relating to a real estate transaction, make sure that you read over every detail of the agreement.  If you have any questions, ask your REALTOR®.  After all, real estate is their business and they are there to help you through every step.