Not all information that you hear by word of mouth and read on the internet is true. As with real estate, there are so many invented stories that one should be aware of. Real estate myths are too common; however, one should know that not all information is outright false and at the same time not all information are true.
Believing certain myths can cost you money, hence when it’s time for you to buy and sell a house, you need to be very careful and consider taking the help of a real estate professional. Listed below are some of the most common real estate myths that can trip up buyers and sellers.
Never buy the biggest house on a street
- We’ve heard people saying that never buy the biggest house on a street, as with this regard, it is usually true.
- The largest house in a neighborhood is the priciest one, which may have an effect on its evaluation and make its cost much higher than other homes in the same locality on comparative analyses says real estate experts.
- In general, buyers are always concerned about the value of a real estate especially when making an investment in a home; as a result, they will welcome a forewarning with regards to limiting their group of future buyers by costing themselves out of or greater than the local market says a real estate merchant.
Cutting the service of real estate agents saves money and you can have a better deal
- When it comes to buying or selling a house, we are no experts! You have to accept it… Once in a lifetime or once a decade, we get to participate in real estate transactions.
- In an attempt to save money, some people do not take into account the service of real estate agents which is a prevailing belief. But, this is not the case always, when you involve in a real estate transaction you should never overlook the service of a real estate agent.
- A professional real estate service, apart from helping you to get a better deal, in fact, saves a lot of stress and hassles.
Renovate your space before you sell
- Each buyer will have their own taste and preferences and it is completely a false thing to believe that renovating your space will help sell your house for a better price. Well, you can adjust your price according to it, if at all, your space requires renovation.
- Zack Childress, who is an expert in Real Estate Investing, helps aspiring real estate entrepreneurs in elucidating the essential elements of real estate investing.
- If you are looking to expand your knowledge and real estate skills, then keep tuned to Zack Childress real estate reviews and you are sure to gain a lot of knowledge.
You should target inherited homes. How many people would want to move into inherited homes? probably, they are too old or consist of too many repairs. This is however, great for agents. So, how to find out such homes? Log onto the county clerk’s website and explore. Once you have access to the information, search by entering the person’s name in yellow pages. That’s it you will find the local address.
Coordinate with home suppliers and repairers
These have a huge list of customers who are preparing for selling the homes. You can have access to them if you unite with such dealers.
Use social media and email listings to track sellers
Search twitter for need to move, looking to move and want to move. Use other social media websites to target specific seller groups. Based on the interests of the people, you can pursue them. Write attractive content on your homepage and entice customers to visit your page. You can also build email lists and track customers.
Some people put their homes on rental listings since they didn’t get the proper price in the market. Target such homes and make them aware that the market scenario has changed and it is a great time to sell.
Keep abreast of present developments
Keep track of local developments like companies coming in, vacating and new residential buildings cropping up. If you diligently watch out for these, then you should be able to get a hold over a couple of them.
Network of contacts, image, internet and other offers
In competitive markets, real estate agents can use a strong network of contacts, their reputation and promise of flowery offers to entice clients. In economically devastating markets which are hit by a shortage of cash, agents use the internet to attract clients. They also offer a slash in commission rates. Agents often use their contacts like friends and relatives and even official to gain clients.
Consider vacant homes
Vacant homes can be narrowed down by searching your county clerk’s website. If you don’t find time, hire people to do this by giving them hourly wages. Or else, you can hire them for a contract of a few months by paying in advance.
By making cold or warm calls, real estate agents heighten their customer base. They can be approached through a free market analysis offer and so on.
Organize gatherings. You can even gather people online. You can talk about the market and get to know interested people. Make these sessions lively and informative. Sellers are spending quality time to come to your workshop. So, they don’t want to be bored nor do they want to be in a full time entertainment session. So, do it well. Coffee shops and ins are excellent places to host such meetings.
There are a variety of real estate businesses which are emerging.Commercial Real Estate is one which procures income, and is used for development of business outlets. A loan is required in developing any type of business. The finance for the development and procurement of the business is done through commercial realty loans.
The financiers as the banks and lenders take part in disbursing the loans on the commercial realty. There are other organizations which are also involved in lending loan for commercial outlets.
The loans for commercial real estate stand out uniquely among other types of loans. There are certain prominent features that the lenders scrutinize before offering a commercial real estate loan.
When taking into account loans for residential property, those loans may be easily acquired. But, that is not the case when it comes to business entities. There is prevalent ignorance regarding the business loans.
It is less likely that the lender will volunteer to offer loans for commercial properties for which construction is underway. There are a scant number of entities who request loan for their own businesses. This turns much favorable for the lender who is ready to offer the loan.
Loans meant for business entities
The loans that come in the form of residential mortgage are meant for commoners and commercial realty loans are for entities that run a business. Individuals gather as an entity to avail of the loans. The entities may not be able to furnish a record of the finances and may not hold a credit history. In such a scenario, the lender may ask for the principal amount or a guarantee from the business owners. When the group of individuals who own the property miss out on a loan payment, the lenders use the property as a way to recover the money.
The schedules meant for loan repayment
Taking into account the residential mortgage, the outstanding amount is cleared in regular intervals. And, this extends over a period of time. The duration of a commercial loan varies from the residential loans. For commercial loans, the duration of amortization extends beyond the duration of the loan.
The loan to value ratio makes commercial loans stand uniquely among residential loans. The Loan to Value Ratio which is lesser would make the borrower eligible for lucrative rates. This is due to the fact that their equity is there to lessen the possibility of risk in any form.
The Interest Rates and the fees that are claimed
When taking into account the commercial loans, the feature that makes it stand apart from residential loans is that the interest rates show a steep hike. There are other formalities in commercial loans which demand an amount from the investor.
The commercial realty is unique in that an investor puts money into the property, allots workspaces for several business owners and generates income via rent from the businesses running within the premises. Commercial real estate needs to undergo lots of formalities than the residential properties.
Zack Childress, the real estate professional, has had a lot of reviews, and has written articles about the commercial real estate. His articles guide us through a scam-free real estate business.
Nearly a decade after the real estate crisis, markets finally stabilized last year. Currently, experts are seeing some rising trends in the real estate industry. We will learn some of these from Zack Childress, a real estate entrepreneur and mentor.
Home prices are increasing
Home prices are increasing. The affordability factor of the average American is coming down. A realty research group which has been following home price trends closely, reports that,” about 3% of the 600 counties in United States have home prices that are unaffordable to the average earner and this may increase to 25% with greater inflation of home prices.” This rising pattern in home prices has doubled the home ownerships held by Americans and is leading to home-price stagnation.
Demand for smaller homes
More and more home constructors are creating small homes for entry level buyers who cannot afford bigger homes. Space constraints in cities and near them are also influencing the tiny home movement. There was a fall in the standard square footage rates for new homes this year, this being the first time it has ever happened since recession.
Cities are being replaced by amenity-rich suburbs
Since cities are becoming more populous and unaffordable in terms of home prices, the average man turns to suburbs for investing in homes. But these are not like the typical suburbs. People are looking for suburbs with city-like facilities – highways, bus and railway transport, grocery stores, dry cleaning, schools, eateries, sport-friendly parks, entertainment and others. Just as in cities these are expected to be easily accessible. A real estate consulting company expects nearly 80% of residential growth to occur in suburban communities over the next 10 years compared to just 15% for “urban” areas through 2025. This however results in polluting the clean and calm suburbs with traffic congestion, noise and others.
More people who are born between the early 1980’s and the late 1990’s will start buying first homes in 2017 according to the NAR (National association of realtors). Many of these buyers have saved enough to purchase a home bigger than a condo or a starting unit. They have paid off student loans and other debts.
Easy loans availability
Compared to the past 8 years, it is easier to take out a mortgage now. Factors like increase in interest rates are playing a vital role in influencing this trend. There has been a sway towards more banks wanting to offer loans to stabilize their business which is dulling down due to rise in interest rates. We can also see a loosening in loan-credit.
We have heard that buy and hold real estate investment is the best investment around, however, it comes with its own two challenges; financing and property management. We are going to see property management and in the next article, I will discuss financing. Improper management will make even the best purchases go unpleasantly. Seeing that property management is the lifeblood of a thriving hold, it can’t be ignored. Get equipped with the tips mentioned below if you decide to ultimately go that route.
- Know your role and get organized
Getting organized is the most vital and biggest part. You should stay on track and on task and work as efficiently as possible. To be on track means you will have to develop a filing or catalog system for storing information and create lists and workflow charts to help you track the progress in multiple areas.
- Concentrate on the little things:
while homeowners can tolerate things, not all tenants do that, so prevent tenant impatience and make sure that the little things are all done.
- Standardize products for your rentals:
chances are you need to face certain emergencies like repair and replacement in your rental. In order to be ready for it, you can consider buying quality products and picking one product and using it on all your rentals. This not only means you have repair and replacement materials readily at hand but also reduces your workload by not having to look for special products all the time. You will have to plan sensibly.
Self-managing is within one’s powers, even from a distance. All that it takes is a lot of constant attention and hard work. Together with this, you should be available anytime to take phone calls and act upon any concerns that come up. With care and planning, it can be a feasible solution for your family.
See More: Zack Childress Real Estate Tips
Should I hire a property manager or self-manage a real estate rental purely depends on you and most of it comes down to your preferences, style and other factors as such. However, there are quite a few factors of both that make them exceptional means in their own way, but if you decide to choose self-management then consider the guidelines of Zack Childress who is a real estate professional helping all realtors out there to make the most of it. Zack Childress real estate reviews are enlightening to aspiring realtors.
Guidelines by Zack Childress on how to stage your home
Staging does not sell your home. But it will definitely help to maximize profit and minimize the time your home sits in the market. While staging takes a lot of time, efforts and is usually costly, there are some budget-friendly staging ideas that can be followed.
Put forth the utility of a room
When you market your property, make sure to define the purpose of rooms. For example: If your prospective tenant is going to use the home as an office, specify to him that the hall can be used as the reception, the room on the right can be used as the managing directors room, the 3 rooms on the left can be used as the working floors and so on. Buyers will not understand the use of rooms clearly unless explained.
Coat your bathroom tiles with paint
Replacing tiles can be very costly. Instead if you paint them, they will wear a new look and become a big hit with the buyers. Painted bathrooms can fetch you big fat money. First use a bonding primer and then a ceramic epoxy coating which is highly protective.
A dark home is not impressive. So, use a few inexpensive table or desk lamps for lighting your home. A well lit home is sure to attract potential buyers. Make sure to turn on the lights bought when buyers visit your home.
Check the kitchen – the center selling feature of your home
Clean your kitchen cupboards. It’s not just the exteriors of these that should be clean but also the interiors. Dust free kitchens create a good opinion in the minds of the buyer persona. The kitchen slab must be spotless enough to even eat from. Utensils and fittings like windows, doors, bulbs and others must be wiped spic and span. Gadgets, the sink and the floor must be free of dirt and non sticky. On the whole, a neat and tidy kitchen is sure to help you go a long way in selling your home.
Check for unpleasant smells
You should check your home for odors. Odors can be a ‘put off’ factor to prospective buyers. It’s better to ask your neighbors about odors in your home since you may have developed an immunity to stenches around.
Use inviting colors and neutral furniture
Use light-toned colors to paint your home. They create a pleasant feeling. Don’t use very bright colors to as the practice is out of trend. You don’t want the buyer to be diverted by your personal belongings, so abstain from using shiny neon furniture. Instead use neutral furniture. This helps your future buyer to focus on the home’s features without being distracted.
There is the home insurance which is required by the lender, which could be very costly, and that which depends on a number of factors inclusive of the construction materials and the vicinity that you live in. The case might be that you have the renter’s insurance, and there will be a number of home insurance costs since you are extending payment for refurbishing the home adding up to the replacement of properties in the house. There could be a hike in the costs of insurance, and you may require added insurance if the area you live in is prone to natural catastrophe.
There are the moving costs that are incurred, particularly when you engage a truck to move your belongings. Also, you require furnishing deposits to make use of the utilities.
You might have drawn an estimate regarding the cost of home purchase, and it might have exceeded the limit. But, an investment that is put on the property is something considerable. And also, you need to live in the home for at least a decade.
Zack Childress is a real estate entrepreneur who conducts seminars and camps on real estate core concepts, if you aspire to become a successful realtor, and then you need to be aware of the day-to-day real estate happenings.
Make sure that your home is staged carefully. Careless staging can cost you dollars. Follow these easy and inexpensive staging tips given by Zack Childress to stage your home successfully.