Buying an Investment Property? Here’s How You Can Maximize Your Rental Revenue

December 4, 2014 by

Buying an Investment Property? Here's How You Can Maximize Your Rental RevenueWhether you’re buying a ski-in/ski-out condo at your favorite resort or you’re thinking of picking up a small home in a busy tourist area, buying a property for short-term rental purposes can be an excellent investment that quickly begins to provide additional revenue.

Let’s take a quick look at a few steps that you can take to maximize the revenue that your investment properties bring in each month.

Upgrade Your Home to Give It a Luxurious Feel

It should go without saying that if you want your home to rent for a high price it has to have a significant amount of value behind it. After you purchase the home, spend some time on upgrades that help to enhance the home’s beauty and usability. If possible each sofa should be a sofa-bed so that additional guests can stay the night. Upgrade the televisions, have Wi-Fi internet access available and provide a phone number that guests can call if anything goes awry.

Professional Photos and Copywriting

If you’re renting your property out to short-term or vacationing tenants you’re most likely going to use online services like VRBO, HomeAway or AirBnB to attract new business. While these sites have a lot of visitor traffic you’re also going to face a high level of competition from other property owners in the area. It’s worth paying a professional photographer to take pictures of your home as well as having a professional copywriter handle the sales copy for your listing. These are one-time costs that can help you to defeat your competition and close high-ticket clients.

Cater to Large Groups or a Niche Crowd

There are a number of “niche” travelers out there and if you can cater to these groups you’ll find that you’re able to charge more than the average vacation property. For example, you may be buying a home in a popular wedding destination that can be marketed to couples who are being married. If you’re buying a larger 3 or 4 bedroom home, be sure to note that it can house large groups who may be traveling together.

Referrals and Repeat Business

Finally, don’t forget to ask your clients to refer you to their friends and family who many want to stay in your unit, and always invite them to return in the future. You may want to consider offering a discount to repeat visitors to encourage them to visit annually.

Renting out your vacation home or investment property can provide a lucrative income stream as long as you have a professional approach and focus on providing a high level of customer service.

Filed Under: Home Buyer Tips Tagged With: , ,

You Ask, We Answer: Should I Consider a Warranty when Buying a New Home?

November 28, 2014 by

You Ask, We Answer: Should I Consider a Warranty when Buying a New Home?Are you buying a new home? If so, you’ve likely pondered whether or not you should invest in a warranty to protect your investment. In today’s blog post we’ll briefly explore home warranties including some of the pros and cons of buying one and how they differ from homeowner’s insurance.

The Benefits of Buying a Home Warranty

Home warranties are an excellent solution if you’re buying a brand new home which has a lot of new appliances and fixtures inside of it, or if you’re not really the “do it yourself” type and would prefer to make a service call if something inside of your home breaks down.

For example, imagine that you have a home warranty that covers your central air conditioning system and one day it stops working. You simply call the warranty provider to book a service call and as long as the problem falls within the scope of your warranty the repairs are completed without any additional cost to you.

How a Home Warranty Differs from Homeowner’s Insurance

Home warranties and homeowner’s insurance are vastly different but work together to protect your investment. Insurance policies cover your home against unexpected damage – fires, crime, wind storms, water damage and more, depending on your policy. A home warranty tends to cover items inside of the home – the furnace, the plumbing, electrical wiring and appliances – and will provide you with discounts on repairs or replacement should the covered items break down or otherwise stop working.

Cost and Other Home Warranty Downsides

Of course, there are a few downsides to buying a home warranty. You’ll need to pay the up-front purchase cost of the warranty unless you’re buying a brand new home in which the warranty is included. You’ll also find that warranties generally won’t cover a lack of maintenance due to the previous homeowner, which can be a bit of an issue if something breaks down and you find out it’s not going to be covered. Finally you may find that any necessary repairs are actually less costly than the warranty itself.

Filed Under: Home Buyer Tips Tagged With: , ,

Negotiation Tips: How to Ask the Seller to Pay the Closing Costs

November 7, 2014 by

Negotiation Tips: How to Ask the Seller to Pay the Closing CostsYou’ve found the perfect new house or condo, and you are now preparing an offer that you believe the seller will find tempting enough to accept. However, you know that there are going to be thousands of dollars in closing costs that need to be paid before the sale is completed and you become the home’s new owner.

The question is, should you ask the seller to pay some or all of the closing costs? In today’s blog post we’ll address this question and list a few scenarios in which you may want to consider having the seller pick up the tab.

Ask if You’re Offering the Full Listing Price

If you’re prepared to offer the full asking price for the home you can certainly include the caveat that the seller assist with some or all of the closing costs. Many sellers will price their home slightly higher than they expect to receive as they believe that buyers will submit low initial offers which need to be negotiated.

For example, if a home is listed at $275,000 a seller might actually be expecting $260,000 or $265,000 for it. You can offer $275,000 but ask that they take care of the closing costs.

Ask if You’re Confident the Seller Has Few Other Options

If the home has been on the market for a number of months or if you’re fairly confident that the seller isn’t going to find much luck elsewhere you can ask them to pick up the closing costs as one of your purchase conditions. You’ll obviously want to negotiate in good faith, but if you’re coming from a position of strength you can leverage this in to some additional savings.

Ask if You’re Ready to Close Immediately

Are you ready to sign on the dotted line today? If you’re sure that this is the right home for you, let the seller know that as long as they’re willing to assist with the closing costs and accept your bid that you’ll start the closing process today. Nearly all sellers will be willing to make a small sacrifice to get the deal done.

As you can see, there are a number of situations in which it makes sense to ask the seller to shoulder some of the closing costs. If you have found a home that you wish to purchase and you’d like advice on how to proceed, contact a real estate agent today. An experience real estate professional can help you craft an offer that the seller won’t be able to refuse.

Filed Under: Home Buyer Tips Tagged With: , ,

Buying a Vacation Home? A Quick Guide to Renting Out Your Second Home to Generate Income

October 31, 2014 by

Buying a Vacation Home? A Quick Guide to Renting Out Your Second Home to Generate IncomeAre you thinking about buying a second home to spend some time in when you’re on vacation? Whether you’re picking up a small house near the beach or you’re looking at a ski-in/ski-out condo at your favorite ski resort, if you’re only going to be in the home for short periods each year you may want to consider renting the property out the rest of the time to generate some additional income.

In this post we’ll share a few tips for getting your property ready to rent to short-term visitors and how to get things started.

Preparing Your Home For Use As A Rental

Before you list your vacation property up for rent you’ll need to get it ready for your first tenants. Spend some time walking through the home to determine what’s missing and what might need to be upgraded.

Do you have a few spare sets of sheets and towels? Are all of the kitchen appliances in top condition? If you’re going to be supplying soap, shampoo and other toiletries, are you fully stocked?

Remember – your goal should be to impress each and every client to ensure they leave a positive review and come back again in the future.

Hiring Housekeeping And Property Management Services

Since you likely don’t live in the area around your vacation home, you’ll want to contract out the cleaning and management to local vendors who specialize in managing vacation properties. It should be relatively easy to find these companies with a quick web search, but be sure to ask for recent references so that you can rest easy knowing your home is in good hands.

Listing Your Rental On Popular Websites

Once your home is prepared and you have your team lined up, it’s time to list your property on websites such as VRBO, HomeAway and AirBnB. Browse through other local listings to see how your competition markets themselves and to get an idea of how much you should be charging on a nightly or weekly basis. Also, remember you’ll need to set up a PayPal account or figure out another way for your clients to pay for their stay.

Filed Under: Home Buyer Tips Tagged With: , ,

Moving to a New City? Tips for Finding a Family-friendly Community to Buy Your New Home In

October 22, 2014 by

Moving to a New City? Tips for Finding a Family-friendly Community to Buy Your New Home InIf you’re moving to a new city with children, one of your likely considerations is finding a family-friendly community where you can settle in and call home.

In this post we’ll share a handful of tips that you may find helpful if you’re searching for a family-friendly neighborhood in a new city.

Check Out The Quality Of Local Schools

Schools are one of the cornerstones of a community and high-quality schools are a sign that a community is suitable for your family. When you’ve made your short list of communities that you are considering, take some time to research the local elementary or high schools to see how they stack up against other schools in the surrounding area.

You may also want to connect with the school’s principal or dean to ask about the environment and whether or not it would be suitable for your children.

Look Around For Local Churches And Other Community Groups

Great communities are those which are filled with engaged citizens who are actively working to better the area for everyone. When you drive through a community that you’re considering, look around to see if there are churches and other groups that get local residents together on a regular basis.

You may find that these groups make for an excellent welcoming committee who can introduce you to the area and help to get your family settled.

Parks And Other Gathering Spaces Are A Good Sign

Another excellent way to determine if a community is suitable for raising a family is the number of nearby parks and public gathering spaces. You’ll want to ensure that your children have a nice area to run around and play with your family pet, or that you have a nice park in which to have the occasional picnic lunch to spend some quality time together.

When In Doubt: Ask The Locals

If you’re visiting a community or touring through homes, spend some time talking to the locals to hear their thoughts and opinions on how family-friendly the local area is. If you haven’t yet, you should also connect with a local real estate agent who can share the ups and downs of the community you’re thinking about moving to.

Follow these tips and trust your instincts, and you’ll be able to find a great new community that makes a perfect home for your family.

Filed Under: Home Buyer Tips Tagged With: , ,

The Pros and Cons of Buying a New Home Versus Buying Pre-owned

October 10, 2014 by

The Pros and Cons of Buying a New Home Versus Buying Pre-ownedAre you thinking about buying a new home? Congratulations!

Buying a house, condo or townhouse is an exciting and rewarding time which tends to be a lot of fun. However, along the way you’ll need to make a number of decisions – including whether you want to buy a pre-owned home or one that has been built recently and is brand new.

Let’s take a quick look at some of the pros and cons of buying a new home versus buying pre-owned.

New Homes Tend To Have Fewer Problems

One of the major upsides of buying new is that newly-built homes tend to have very few problems within the first few years of ownership.

While you’ll still be required to make regular maintenance on a new home, when you buy pre-owned you’re buying a house that has seen years or decades of weather and regular wear-and-tear.

New Construction Allows For Customization

If you want to be able to customize certain aspects of your home, it might be better to buy brand new as the builder will be able to incorporate your requests as they’re building the home. Of course, you can always renovate and upgrade a pre-owned home but if you have significant needs you may find it easier to get them built into the home as it’s being developed.

The Major Downsides To Buying New: Cost And Location

While there are a number of upsides to buying new, there are some downsides that you’ll need to know.

First, new homes almost always cost more than an equivalent pre-owned home. Brand new homes are filled with new appliances, fixtures and modern building materials which add to the overall cost of the home. Unless the pre-owned home is on a larger lot or property, you’ll generally be able to save a bit when you buy pre-owned.

Depending on where you’re buying, you may also find that the location where brand new homes are being constructed is much further from the downtown or urban area. In many cities, the only available space for new construction is in suburban areas, which means that you may be in for a lengthy commute to and from work each day if you choose to buy new.

These are just a few of the factors that you’ll need to consider when buying your next dream home.

Filed Under: Home Buyer Tips Tagged With: , ,

Closing Costs: Understanding What It Costs to Close on a Home and What You Can Expect to Pay

October 8, 2014 by

Closing Costs: Understanding What It Costs to Close on a Home and What You Can Expect to PayIf you’re in the process of buying a new home, you’ve likely heard the term “closing costs” in regards to the many different fees and taxes that you’ll be required to pay during the purchase process.

In this post we’ll look at a number of these closing costs and what you will be expected to pay when you buy that next dream home.

Taking out a Mortgage? There Will Be Fees Attached

If you’re taking out a mortgage to finance the cost of buying your home you’ll end up incurring a variety of fees. Nearly all lenders will charge a mortgage application fee, which covers the cost of processing your application and all of the necessary paperwork.

You’ll likely have to pay for a professional appraisal of the home as well, as the lender will want to ensure that they aren’t lending you more than the house and property are actually worth.

Inspection And Insurance Costs Will Add Up

If you’re buying a pre-owned home you’ll need to pay for a home inspection to gain an understanding of the home’s condition and if you’ll need to make any repairs in the near future. You’ll also need to purchase homeowner’s insurance on the property to protect yourself in the event that something does go wrong with the home.

If you put less than 20 percent down on the cost of the home, your mortgage lender may also require that you purchase private mortgage insurance; this will vary depending on which state or province you are buying in.

Don’t Forget About Escrow Fees and Taxes

As with any major financial transaction you’ll need to satisfy the tax man by paying various taxes on your purchase. These will vary depending on where you are buying your home, but might include sales taxes, property taxes, transfer taxes, recording fees, title transfer fees and more.

If you used a third-party escrow service to manage these fees or to hold your deposit during the closing process you’ll also need to pay escrow fees prior to signing the final paperwork.

Filed Under: Home Buyer Tips Tagged With: , ,

Five Small Signs That Can Indicate Much Bigger Problems with a Home

September 26, 2014 by

House Hunting: Watch for These Five Small Signs That Can Indicate Much Bigger Problems with a HomeIt’s not uncommon for homebuyers to recount horror stories about properties that appeared to be fine at first glance, but were actually hiding very expensive problems. If you fail to do your due diligence, you might find your dream house turning into a nightmare. The next time you walk through a house, pay attention for these five signs that the property might be hiding a unfortounate secret or two.

Mold, Water Spots and Water Damage

Older and newer homes alike may develop a leaky pipe or another similar plumbing issue from time to time, but any type of water issue can result in mold growth inside the walls. Water spots and warped wood indicate that the property has had a water issue in the past, and this means that the property should be more thoroughly inspected for mold growth before you make a purchase.

Doors and Windows That Stick

One of the most common signs of a foundation issue is doors and windows that stick or that are difficult to open and close. As you walk through the home, open and close the doors at leisure to identify if they are not in the frame properly. The issue should be reviewed by a structural home inspector or foundation contractor.

Small Cracks in the Walls

Some cracks in both interior and exterior walls can indicate that the home’s foundation has shifted and is no longer flat and level. Significant issues may be indicated by molding or door frames that appear to have shifted after installation.

Fresh Paint on a Small Area of the Wall

Many property sellers will apply fresh paint to walls before listing a home for sale, and this is not necessarily a sign of damage to the home. However, when fresh paint is applied on one area of the wall alone, this may be a sign that the homeowner is attempting to conceal water damage or other related issues with the property. Further inspection of the property is in order.

Floors That Slant

Any time a floor slants to a level that you feel as though you are walking up or down across the home, this is a significant indicator that the foundation has shifted. Foundation issues result in the movement of the foundation that the entire home rests on, and this can result in an uneven feeling when you walk across the floor. If you notice that the floors in a property slant, you should schedule an inspection of the foundation.

Filed Under: Home Buyer Tips Tagged With: , ,

Considering a Vacation Home? Six Tips for Buying a House or Condo for Relaxation and Vacation Use

September 18, 2014 by

Considering a Vacation Home? Six Tips for Buying a House or Condo for Relaxation and Vacation UseIf you’ve just returned from the vacation of a lifetime, you probably wish that wonderful time never had to end. When you buy a vacation home or condo, you can guarantee that you have an escape that will provide you with years of enjoyment. Before you take the plunge, though, take advantage of these six helpful tips about buying a vacation home.

Choose Someplace Versatile

When buying a vacation home, it’s all about getting the most out of your investment. Consider choosing a place that you can enjoy throughout the year. Your ideal vacation home will be a haven in the summer, a beauty in the fall, a refresher during the spring, and the perfect place to celebrate the winter holidays.

Think About Convenience

When you choose your vacation home, you will want to find a relaxing getaway that fits your lifestyle. If you love to have easy access to the grocery store and other amenities, don’t buy in a remote location. If instead you’d prefer something secluded, opt for a home that is hidden far from civilization.

Consider Your Neighbors

Depending on where you choose to buy a vacation home, you’re likely to be surrounded by others who love the area as much as you do. You need to decide if you want to have many others who are in close proximity or if you prefer having your space to yourself.

Find Out About Taxes

If you are opting for an extremely popular location, beware of high taxes. You want to go into your purchase with your eyes wide open. If you choose a home that is off the beaten path, you could have a more favorable tax rate.

Learn About Restrictions

You may have restrictions to deal with when you buy a vacation home. From a Home Owner’s Association that stipulates regulations about the care of property to restrictions in paint schemes, you may not have complete freedom with your property.

Look For Excellent Deals

Whether it is due to the strained economy or someone who has to make a property move quickly, you could find a phenomenal deal. Don’t rush into any sale until you’ve reviewed all of your options. Buying a home that is in a community neighboring a hot spot (instead of in the hot spot itself) could make for better prices as well.

A vacation home is a great real estate investment that can make vacation planning much easier. With these tips in hand, you’ll be well equipped to find the perfect vacation home for your budget. 

Filed Under: Home Buyer Tips Tagged With: , ,

Buying Land to Build a New Home On? Don’t Forget These Three Important Considerations

September 9, 2014 by

Buying Land to Build a New Home On? Don't Forget These Three Important ConsiderationsWhen most people talk about real estate, they envision buying an already-built house on already-landscaped property. However, buying vacant land and building a new home is a great way to ensure that you get the home that you want in the location that you want. It’s also a major undertaking, which is why you should take these three considerations into account before you buy any land for your new home.

Location, Location, Location: It’s More Important Than You Think

People often hear the phrase “location, location, location” and it’s a very prudent maxim with buying land. The parcel of land that you buy should be in a good geographic location and on stable ground – which means there shouldn’t be any major water sources nearby (like a swamp) and hills should be minimal. You’ll also want to consider zoning regulations that influence the acreage and other regulations that influence how you can and cannot use the land.

Utility Connections Will Be Your Responsibility

New land tends to not have utilities laid out under or over the ground. If this is the case, you will need to invest in electrical, water, and possibly heat utilities for the home.

This process involves communicating between the municipal government and utility companies so that the proper infrastructure is put in place. These costs and the implementation can be quite a headache depending on how isolated the land is from municipal or regional infrastructure.

Access: Look Up Any Easements on the Land

Many homeowners may not realize how legal access to land can affect their purchase. An easement refers to the legal right of other entities to use your land even though they do not own it. Before you buy land, you and your lawyer should investigate whether or not the land has easements, and whether or not these easements may interfere with your goals for the property.

These are just a few of the major considerations you need to make when you buy land. Purchasing a plot of land is quite a bit more complicated than buying a house, and if you’re not prepared, it can easily turn into a nightmare. When properly planned, though, buying land can give you a great backdrop on which to build the house of your dreams.

Filed Under: Home Buyer Tips Tagged With: , ,