Posts Tagged ‘Real Estate’
Make Improvements that Add Value
In today’s difficult housing market, buyers can be hard to come by. There are a lot of great homes available, and if yours doesn’t stand out you may be left without a buyer for months. As such, many people are making improvements to their homes to help them sell faster and for a better price.
You might have heard that fixing up your home will increase your home value, and to a certain extent, that’s true. However, not all home improvements are profitable and some may actually hurt your chances of selling your home. Here are a few things to keep in mind when deciding what improvements to make on your home.
Determine why you’re making improvements.
Do you want to fix up your home to help it sell sooner, or do you want to increase the price of your home? This distinction will help you determine what kinds of improvements you want to make. If you simply want your home to sell faster, replacing worn-out siding or re-painting a room could be just the ticket. Plant some flowers to increase curb appeal. All of these things can make your home more attractive to potential buyers.
However, these improvements don’t always increase the value of your home. If you want to do that, consider repairing structural problems, like a leaky roof. Make your home more energy-efficient or increase the square footage (porches are a great way to do so). These improvements may be less attractive initially, but they can definitely help increase the value of your home.
Consider upkeep.
A home is a major investment, and buyers are taking on a lot of work when they buy a house. If your “improvements” will only add to that burden, your hard work could actually turn buyers away and drive down the value of your home. Installing a swimming pool, investing in elaborate landscaping or planting a large garden are all improvements that could actually hurt you as a seller. All of these things require extensive upkeep that the buyer may not be willing to invest in. In that way, they will have to take on the added cost of getting rid of the responsibility, which could turn them off from buying your home.
Save them money.
The best improvements are those that will ultimately save your buyer money and take away responsibility. A good way to do this is to install environmentally friendly appliances and have your home well-insulated. This will save the buyer a lot of money in heating and cooling costs, and these types of improvements typically bring a large return on investment.
The Boundary Line With Trees Shared By Neighbors
Beth Robertson obtained her real estate salesperson’s license in 1970 and broker’s license in 1991. Since 1979, she has been affiliated with Century 21, receiving numerous top producer awards and appointed a member of the Century 21 Honor Society. Stay on top of housing trends with up-to-date statistics on Sonoma County real estate.
With all the rain we had in March, I have had an onslaught of questions about trees and neighbors. Trees are a huge asset to most home owners but can be viewed as nuisances when they come down in bad weather.
The tree-owning neighbor wants the tree – which provides them with a windbreak, shade, privacy and perhaps fruit – to stay, while the other wants it removed or substantially trimmed back.
Using California as an example, it appears that there are two kinds of trees: ones that are on the owner’s property and ones that are on the line of two owner’s properties. Those that are on one property are the responsibility of their owner and when they drop fruit, damage a fence, drop leaves and branches, spread roots or cause what the legal world calls “an encroachment” is when the problem begins. The damaged neighbor can reasonably trim the tree or roots as long as he does not trespass or kill the tree. Using an arborist to do the trimming or root work should ensure that whatever action is taken by the neighbor who is being encroached upon is considered reasonable. The damaged neighbor can bring a legal action that claims nuisance or damage to recover his or her costs for the mitigation, but cannot recover legal costs.
If there is a boundary tree on the line that is in dispute the only thing that you the damaged neighbor can do is seek legal relief (of course after approaching your neighbor for a joint agreement to take care of the problem) as there is no right for one neighbor to act independently.
If a tree is harmed by a neighbor performing unreasonable acts upon the tree, the owner of the tree can seek damages. This may be the appropriate time to consult an attorney. Litigation is expensive and can cause everyone emotional upset. The answer may be mediation which brings in a neutral third party to help with the process of communication and agreement on what is fair to both parties. Some communities have a low cost volunteer mediation program. The mediators could be an arborist and/or an attorney.
In some communities there are local ordinances which may also have an impact upon tree disputes. Local laws may protect views and/or protect trees of certain sizes or ages. These laws should be checked with your city officials or if you are outside of city boundaries check with county officials. An example would be the Heritage Tree Protection in Healdsburg which essentially will not allow removal of a tree with a trunk diameter of 30 inches two feet above the ground level without a permit which may not be issued if there is not a good reason to remove the tree. You can find these in the city Zoning Ordinance Section 18105.
In my world, I would certainly try to work it out with my neighbor first. Money spent on the trees themselves will go a lot further than money spent on attorney’s fees and mediation.
Cash Flow or Closed Sale?
Real estate investors make money in a lot of ways, and the most successful ones do so using a variety of techniques. But when deciding whether to sell a property or rent it out, every investor should consider the strengths and weaknesses of each option. Both have their advantages and disadvantages, both monetarily and otherwise. Here are some pros and cons to help you decide which type of transaction is best for your situation.
Rent it out for cash flow.
Pros: Renting out a property is a steady source of income. Especially if you own more than one property, renting can provide significant cash flow. It also costs less for tenants to rent than to buy, so it is often easier to find tenants than it is to find homebuyers. Renting out a property over time can also give you the means to pay off the mortgage, and when you do, you will make even more money each month.
Cons: Renting out a property is expensive and time-consuming. The costs of maintaining a property can run high, which can reduce your profits, and tenants may also damage your property. Being a landlord can take a lot of time and may be inconvenient if you have a full-time job or often go out of town. Renting also gives you less return initially, so it may be a better choice for someone who is well-established in real estate. If you’re hoping to make fast money to fund future investments, flipping properties may be a better option.
Sell properties
Pros: Earning money selling properties is a great way to make money fast. This type of real estate investing is quite popular because it can yield large amounts of money in short amounts of time. Unlike renting out a property, closed sales don’t require any additional upkeep. This makes selling property less of a commitment and less expensive in the long term.
Cons: While selling property makes you a lot of money upfront, that’s where the income stops. It’s a good way to get started in real estate investing, but if you’re looking for a more secure, long-term source of income, renting property out may be the way to go.
What is a Short Sale?
If a borrower is unable to pay back their mortgage, but the lender is willing to sell the property at a loss, one option is a short sale. This can be an attractive option for both parties as they can avoid foreclosure.
During a short sale, the bank will agree to discount the mortgage – due to economic or financial reasons – if the borrower agrees to sell the property and give the money to the bank. This allows the bank to minimize their losses, while the borrower avoids damaging their credit by having to foreclose or file for bankruptcy. While short sales can take several months, the process is usually shorter than a foreclosure.
Whether or not the option of a short sale is available is usually left up to the lenders (and it is an option – unlike foreclosure which is legally forced upon the borrower) although borrowers can suggest and negotiate the short sale option. Most lenders will assess the risk, the potential financial loss, and the likelihood of being repaid in order to gauge whether or not a short sale would be in their best interest. However, short sales have become more common during the current housing crisis.
So, if you’re considering a short sale, there are some risks involved. While you can pull out at any time, so can the bank. Any third parties involved may also have certain expectations and requirements. Regardless, you should consult a lawyer with any questions you may have.
As a real estate investor, buying short sale properties may be a worthwhile way to invest your time and money. While the process can be drawn out – as banks look to get as much money back as possible on the property – if you do end up getting the property, you’re likely getting a very good deal. You can turn around and resell it or rent it out for additional revenue.
Learning about your community for real estate investing
Image by viewoftheworld
One important part of researching a property is finding out about the surrounding area and community. Depending on what real estate investment you’re considering, this may mean just finding out about the immediate area, but could mean gathering information on the whole county or state. It takes a little work, but it’s certainly worth it.
For a more passive approach, especially if you see yourself as a long-term investor in the area, you’re going to want to set up e-mail alerts for specific phrases. Including your community/neighborhood name with words like “crime,” “trends,” and/or “property value” will automatically generate news articles and other content tailored to what you’re looking for. The more specific, the better – since you don’t want to be inundated with irrelevant results.
You should also spend time reading through your local newspaper – both current and past editions. This will help you know what sort of things are currently going on and other trends that could be coming. On top of that, you should also feel free to speak with an individual at the newspaper – or perhaps other established residents – who will be a great resource to answer any questions you may have.
Another place you should go to find out more information about a community are any official documents you can find. This includes census records, demographic information, or other documents that may give you insight into the area. There are plenty of websites that will give you that information, but you can also visit city hall or the county offices to gather more information.
Do your research and ask good questions. Don’t just look at the property foundation and the appliances; look at the surrounding community to decide whether or not this property is one you want to invest in.
