Red Flags To Look Out For When Buying A Home

Buying a house is supposed to be a fun and exciting time. The problem, however, is that because we want to buy a home so badly, we sometimes don’t see the flaws the property has. Although we do sometimes fall in love with a property, we should never purchase it without running a few necessary checks. Let’s take a look at a few of these red flags.

First and foremost, check the neighborhood. It cannot be underestimated how important it is to check on this. The community is either growing and decline and you need to find out which one it is. Signs of decline include numerous boarded up businesses and foreclosed homes. Make sure you visit the area on two different occasions. This is also a great way to find out what traffic is like. Make sure you come during an evening once as well, so you can find out whether there is any noise pollution or traffic problems when it is supposed to be quiet. Speak to the police and ask for statistics on local crimes.

Now, you need to see how the property was looked after. You should be able to tell whether it was maintained regularly. A home that is run down on the outside will probably be in a similar state on the inside. Make sure to inspect the wiring. Real issues can only be identified by a qualified professional, but you can get a good idea yourself. Flickering lights and hot outlets are major red flags. Similarly, if you notice that there is a single wall, or just a few walls that have been painted very recently, where others haven’t, the owners may be hiding something. Also look at the windows. If there are signs of condensation or windows don’t open properly, it could be a sign of serious damage that will cost you a lot to repair.Naturally, never view a property that you are not allowed to see in full. If there have been any structural changes to the original property, you need to check whether these were done in accordance with various building regulations.

When push comes to shove, you are the only one who can work out whether or not you want to purchase a property. Plus, it is certainly true that a home with problems is often a home that can be sold at an even greater discount. On the other hand, if you then have to pay even more money to fix it up, or if you can never sell it again, then it was a waste of money. A home is a place where someone, either you or a tenant, will have to live and this means it does have to be an enjoyable property to seem extent. Although it is certainly true that you should look into the condition of the actual property, focusing on the neighborhood is equally important. A property inspector is all you really need in order to look into the condition of the actual property after all. When it comes to checking out the neighborhood, however, it isn’t so much about cold, hard data, but rather about personal feelings and emotions and whether or not you like it.

Choosing The Right Investment Property

The perfect real estate investment is one that has high returns and very low risks. This is only possible if you know how to make smart choices. The following three things make for an excellent real estate investment to help you get started.

You should never invest in real estate before having a few affairs in order. To get started, you will firstly need to have investment capital. Also, make sure that you get to know the real estate market and learn about the neighborhoods you are interested in.

Investing in real estate, therefore, shouldn’t be about the appreciation, but rather about the cash flow. Calculating your cash flow means you need to work out how much money from your rental is left after you have paid for all the necessary expenses. What you should do is leave your cash flow alone, and keep that as savings as much as possible. Plus, your cash flow can increase as rent prices go up over time. This is particularly true if your mortgage payments stay the same. The best cash flow is at least 20% of your overall income from the property. There are some great online resources in terms of calculating your cash flow.

You can also decide to look into a real estate investment trust (REIT). Through a REIT, you can get started in investing with less capital behind you, although your returns will be smaller too. REITs are popular because you are essentially investing in real estate corporations. Hence, you could invest in anything from an apartment block to a retail park. You can keep track with the performance of a REIT through the NASDAQ and stock exchange. A REIT can be best compared to a mutual fund, although the REIT invests solely in real estate. Before investing in a REIT, there are a few things to learn about. The economic conditions of the key holdings is one. Next, find out what the past performance of the REIT has been like. You should also consider their future plans. Looking into the REIT’s manager and what their experience is. Lastly, you need to look into the current state of the real estate market and how the REIT is expected to respond to that.

Practical Suggestions When Thinking Of Selling a Property

Step-By-Step Uncomplicated Suggestions When Thinking Of Selling a House

Lots of individuals have been investing in real estate these days so if you are intending to sell your home, the perfect time is now. The only issue here is that selling a house is very challenging.

Most of you have most likely seen some articles telling you that selling a property is simple. There are also some ads that will tell you that they could sell your house within weeks. You could lower the asking value of your home since it’s going to be more desirable to the buyers, but this is not a good thing to do.

In the real estate market, the supply surpasses the demand, but there are a lot of techniques on how you may successfully sell your property. We’re going to give you a few recommendations to effectively sell your house.

Focus on Curb Appeal

First impression lasts so your house should have a specific impact when a customer sees it for the first time. You could place yourself in the shoes of a customer and try to appraise the curb appeal of your home.

Head out into the streets and take a look at your house to view all of its flaws. You should make certain that it is appealing enough to leave a good impression to possible customers and check everything that need maintenance.

The potential buyer would see the exterior of your house as soon as he goes out of his car and most of them always take notice on how the new house would look like in the outside. You must prepare everything and repair everything.

Upgrades in The house

Making some improvements in the house is essential if you would like to attract customers. You should improve the interior and outside of the house so it might be visually appealing to the possible customers. If you’ll sell your property, you need to check anything that needs to be fixed and make improvements. Nonetheless, make certain that you will not over improve because there are enhancements which will not make a huge difference.

Enhancements can boost the value of your house and its chances to be sold, but you cannot make improvements that will not pay in the long run. You must make your own research and only invest on things that will offer the best return.

Take Away The Clutter

If you say clutter, these are actually the things that you must eliminate from the house when you’re selling it. You’ll have to eliminate your personal items, collectibles and art works because it’s going to not help you in selling the house. Eliminate all of these things and leave out the essential furniture to make the rooms a bit bigger. The main goal of doing this is to help the buyers visualize what they need to do in your house once they bought it. Once they are inside the house, they will start visualizing what they want to add so get rid of the unneeded and personal items in your house. It’ll surely be challenging for them to do this if your personal items are inside your house.

Put a Competitive Price For Your house

If you will sell a home in Yolo County, you need to put a competitive price for your house. If you’ll put a lower value, it’s going to be similar to leaving money on the table and placing a high price will make it unattractive to buyers.

With regards to home buying, most customers will have a look at the houses which are similar to yours and compare the costs. If your home is too pricey, they won’t even take a look at it as one of their choices.

Most of the buyers right now are only depending on home financing so you can expect that they won’t choose a house that is too costly. It is true that putting a low value might help sell your house very easily, but your investments will not be given back to you.

Find a Real Estate Agent

You’re certainly making an error if you believe that you can sell your home on your own. If you’re not a professional real estate agent, it’s going to be challenging since you do not have the experience and knowledge to do it. If you plan to do this on your own, there is a possibility that your house will not be sold or you won’t obtain a great deal. You may get lucky and get an excellent deal for your house, but you can’t depend on luck alone when selling a property because this is a lot of money. You could always employ an agent and let them do everything. You’ll absolutely need to pay them, but this is better than acquiring a bad deal as you do not know anything.

Before you choose to sell your home, you need to look at all of these simple suggestions so you will not make a mistake. It’s quite difficult to sell a property so you need to know everything and anything about the real estate market.

Home Staging 101

The ultimate goal of home staging is to create an atmosphere in which a buyer is able to imagine themselves living there. To imagine the future memories that they will create. Thus, when they are looking to find the home of their dreams to build their life and lifelong memories in, they don’t want to walk into the home feeling another person’s memories. The best way to ensure you create an atmosphere in which the buyer will envision his life there instead of yours, is to “neutralize” the surroundings.

De-cluttering can’t be stressed enough. This includes the packing, or giving away or pack up toys, linens, and small kitchen appliances to store offsite. This is the time to do what many people always put off. While it is a hassle to go through everything in your home, remember you are going to have to do it anyway when you officially move.

The most important rooms to focus on are all of them. However, if this is not possible, the absolute necessary rooms to stage are the the foyer, kitchen, living room, master  bedroom, and family room. The foyer is extremely important. This will set the tone for how the buyer will view the house.

Removing personal items from the home is very important. The buyer doesn’t want to walk in feeling like they are coming over to your house for a dinner party. They want to envision themselves hosting a dinner party with their family and friends.

There is really no excuse to not get almost all the information you need to DIY, as there are too many outlets available to do so. Great methods to find these ideas are catalogs, searching online, word of mouth, reading related books, or watching design TV shows such as HGTV, or House Hunter. All of these outlets will give you great tips and useful information. It will also give you ideas to decorate your new home!

When a potential buyer views the home, one of the most important things they will be assessing is the amount of space and storage the home has. Thus, whatever small things you have tucked away in drawers, or cabinets, will be seen. Not only will clearing these things out make the space appear larger, but the buyer does not want to look at all of your prescriptions and Pepto Bismal.

The yard should be in good shape, and look well-maintained. Again, the yard and the foyer are crucial in creating a positive first impression in the buyer’s eyes. Don’t cook anything with a pungent smell before prospective buyers  come to view the house. No one wants to walk in and smell the salmon you have just made. Also, these smells distract the buyer from having a good first impression when they walk in, because they immediately think about the smell in the air other than focusing on what the entry looks like.

Floors are of utmost importance when considering purchasing a home. Dirty carpets are not a good look. Not only does someone not want to have to consider the cost of replacing carpet, but it also gives off the idea that the home was not well-maintained.

Staging is about making it easier for the buyer envision  themselves in the home. A great way to do this is to set the table; it is easy to do, and it makes all the difference. The buyer can see themselves having parties throughout the year.

Fresh flowers are a great way to make the buyer associate the home with positive feelings, as flowers are correlated with happiness. If you have a fireplace and you are showing your home in the fall or winter, use it. Nothing is more inviting to a prospective buyer than a warm firing going. All the same, fresh flowers can do wonders. Flowers are related to happiness, and will make a subtle difference. Be sure to replace them as they die, as buyers do not want to see dead, or wilted flowers. No flowers is better than wilting ones.

Light brings a feeling of openness to the house. If during the day, open all blinds or curtains to let as much light in as possible. If you have a yard, consider opening the door before the buyer gets there. It will also make the house inviting, and they will see themselves relaxing on the patio. Complete any touchups. When there are many touchups that need to be done, the buyer takes into account the things they will need to fix. Again, it also shows that the home was not maintained well, as you didn’t take the time to fix something as simple as a faulty doorknob.

For more tips, read Why Home Staging Could Give You the Edge In the Property Market, as well as this great video on Home Staging.

Post-Sale Checklist

While the deal on the home has been closed on, and is officially sold, you still have a few more things to do. Here are some things you can do to save money post-sale.

Keep copies of all paperwork that was accumulated throughout the sale. You’ll want these papers for taxes in April. This is because to file them properly, you’ll need documentation for the expenses and proceeds of the sale. And after you file your return, you’ll want to keep the paperwork in case you’re audited.

You’ll need to keep documents of all improvements you performed on the home. This is because the IRS allows you to add the cost of improvements to your home’s cost basis during the time you own the home. However, in order to do this, you’ll need to keep receipts for everything you spent on home improvement.

Be sure to be up-to-date on tax laws, because they are always changing. This is why you’ll want to keep your paperwork. A recent law permits you to exclude a significant portion of the profits from the sale of your primary residence from your taxes.

If you sell your house without purchasing another directly after, you need to keep your money somewhere in a secure place. This usually is a money market mutual fund.

Don’t feel like you need to buy another house right away. Even if you have to rent, you should wait until you find something you really like, that’s in your price range. Many people don’t know this, but you have two years to defer tax on your house-sale profits. Again, this is why you should stay educated on tax laws.

Think about which realtor you’ll choose to purchase your next house. Some realtors are more experienced in buying houses, while others are more experienced in selling them. You don’t have to use the same realtor you did to sell your house. Keep in mind as well, that if you’re moving into a different neighborhood, then that agent likely won’t know the market or comps well enough to help you get the best deal.

If you can afford to put more than 20% down on your next home, consider whether it’s better to put that money in the down payment or to invest the money elsewhere. Last but not least…don’t forget to change your address!

Check out this useful article on Preparing to Sell Your Property: A Checklist, as well as Must-do Checklist for Selling a House.

What Do I Need to Qualify for Rent-To-Own?

Qualifications for Rent-To-Own

A rent-to-own agreement is a great way to purchase a house, while you get your finances together. The buyer’s monthly payment is a sum of a rent premium, and an option fee toward the home’s total purchase price. Certain requirements are common in order to be considered:

Proven Income
You must be able to prove that you have the means to eventually purchase the home. The homeowner will require proof that the buyer can pay the rent and option fees. Financial documentation will also be requested by the homeowner. Financial documentation will include copies of paychecks and tax returns. If you are self-employed, you more than likely be asked to provide a statement of profit and loss figures. You can also ask your clients for letters showing that you have commitments for future work.

Personal History
In order to be a good candidate, you must have a great personal history background. The homeowner will research the buyer’s credit history, looking for any flaws. If the candidate has a low credit score, and/or any black marks on it, they will be charged higher interest by the homeowner, aside from likely being denied altogether. The tenant’s history and criminal background will be checked, as well as any other previous or existing legal problems.

Seller’s Terms
The terms for a rent-to-own agreement are worked out between the homeowner and the buyer. The landlord will set his own qualifications for the buyer, like the minimum down payment required, if any.

The Bottom Line
A rent-to-own agreement allows potential buyers to move into a house while getting their finances in order to purchase the home several years in the future. It does come with a risk; the potential buyer could very well end up losing money if they cannot buy the property when the lease expires.

Conclusion
A rent-to-own agreement is a legally binding contract that often includes complicated language. You should consult with a realtor, and it would not hurt to consult a lawyer, either. No matter what terms you are purchasing a house, you should understand every word of a contract before you add a signature, in order to clarify your rights.

Other Great Links:

Rent-To-Own Calculator

Rent vs Buy Calculator

When it’s NOT Time to Buy

Rent-To-Own Pitfalls – Forbes