Home Selling: Why You Must Do It In 2019?

Just like purchasing a home, home selling is as difficult, even many times as hard a decision to make. Homeowners sell their homes for a variety of reasons, some of them are on the negative side such as paying the debt, hospital bills and other important reasons – and they need to sell their house fast. Most of the time, they will end up selling it at a very discounted price since they don’t have a choice.

There a lot of things to consider when it comes to selling your house. But one of the most important factors is timing. You must know the answer to the question, is it the right time to sell my house? In case you don’t have any idea in knowing the right time to sell your house in 2019, then check out this article written by The Truth About Mortgage as they provide home selling tips in 2019.

12 Home Selling Tips for 2019

Photo Credits: The Truth About Mortgage

While the recent stock market rout will undoubtedly make prospective home buyers feel a little bit poorer, lower gas prices and cheaper interest rates may have the complete opposite effect.

Regardless of what happens to the economy, chances are that those who are planning to buy a home this year, will, assuming they can find one that suits their individual needs.

1. It’s Still a Seller’s Market for Most

Similar to talk of the low mortgage rates going away, which kind of finally did, only to return again, we’ve been told year after year that the seller’s market is coming to an end.

Sure, it will at some point, but my expectation is another solid year for home sellers, perhaps with some leveling of the playing field, as mentioned in my 2019 predictions post.

2. Know Your Buyer and Appeal to Them

Along those same lines, if you’re selling a home in 2019 you’ll want to ensure it is well-maintained and on point design-wise.

The types of homes you see sitting on the market these days are consistently not updated and often not priced to take that into account.

3. Photos and Staging Matter, More Than Ever

Real estate is very emotional. While economists talk numbers, home buyers and sellers lead with their hearts.

One of the most important things you can get right (or very wrong) is photographs. Ultimately, unless you or your real estate agent is a photographer by trade or serious hobby, you’ll need to hire a pro.

See full post here…

To some experts, the entire housing market right now is still favoring the home sellers, which means that the start of 2019 is actually a good time for sellers to put their homes into the various listing. Also before even thinking of selling your house, be sure to stage your house properly. Take some good pictures as well to get the attention of potential home buyers.

Now going back to the main topic, Devon Thorsby of US News wrote an article with the question, Why you should sell your home in 2019? Check out the article below to know the answer to this very important question.

Why You Should Sell Your Home in 2019

Photo Source: Getty Images

Housing markets may not be as hot as previous years, but selling now could be your best bet.

Few people are predicting that 2019 will be a record-breaking year for home prices.

But relatively speaking, 2019 might be the best time for you to put your house on the market. Especially if you’re on the fence about selling this year or next, Nick Ron, CEO of House Buyers of America, recommends going with the devil you know rather than the devil you don’t.

“I think it’ll be better than 2020 and 2021 – who knows what’s going to happen in those years,” Ron says.

Home price growth slowed in the second half of 2018, with fewer buyers entering the market, at least partially due to rising interest rates issued by the Federal Reserve. In 2019, consumers shouldn’t expect homebuyers to flood the market again and drive prices through the roof, but it’s also unlikely to be a crisis for home sellers.

If you bought your house in the last year or two, still love it and don’t want to part with it, go ahead and wait another five years before revisiting the thought of selling. But if you’re weighing your options to sell, considering selling this year or maybe the year after, don’t play the waiting game.

New Buyers Are Still Entering the Market

As interest rates rise, some buyers will hesitate to make an offer on a home or apply for a mortgage, so be ready to see occasional drops in buyer activity. And if your house is at the higher end of the price range in your market, you should expect less buyer interest than before. Ron notes the combination of rising mortgage rates and home prices exceeding buyers’ budgets are what has caused the slowing of homebuyer activity in recent months.

Interest Rates Are Still Low-ish

Mortgage interest rates have been on a bit of a bumpy road over the last few months. Interest rates for a 30-year, fixed-rate mortgage reached their highest level in over seven years in November 2018, when they hit 4.94 percent, according to Freddie Mac. As of the end of February 2019, however, interest rates are down slightly to 4.35 percent, according to the mortgage loan company. While it’s reasonable to expect mortgage rates to continue to climb gradually throughout the next year, they’ll remain much lower than the historic high of more than 18 percent in 1981. Click here to read the rest of this post…

With new home buyers entering the market, which means there is more demand. Most likely your house will soon find its buyer provided that you priced your house right and within their budget. Another important data is the low mortgage interest rates, which means more and more people can afford to purchase a house thru lending institutions like banks.

Catrina Sun-Tan of Homelight also wrote an article backing up the abovementioned claims by the experts about home selling in 2019, this time data-backed reasons to sell your house in 2019. Read more below.

Strike While the Market’s Still Hot! 10 Data-Backed Reasons to Sell Your House in 2019

Image Source: Rawpixel

As a homeowner headed into 2019, you may have noticed that real estate trends have been nothing but good for awhile now. In fact, we’re in the midst of the third-largest housing boom since 1913, with U.S. property values rising 53% on average since the start of the expansion in February 2012. That means a typical house worth $200,000 only 6 years ago is now worth $300,000. Cha-ching!

In case you needed another reason to put out the for-sale sign, here are 10 of them. All based on cold, hard data and the professional insights of housing experts.

1. Tick-tock: Existing-home sales already hit their peak in 2017

The National Association of Realtors’ (NAR) existing-home sales report measures completed transactions of existing (rather than newly built) single-family homes, condos, co-ops, and townhomes every month. The report pulls 40% of the data from multiple listing services across the country, offering inventory and price data while providing insight into regional real estate trends and homebuyer behavior.

2. Mortgage rates are going up, up, and away, making it more expensive to buy a house

The Federal Reserve implemented four interest rate hikes in 2018, the most recent of which was on December 19. In response to a rise in inflation rates and labor market expectations, the Committee voted to raise the federal funds rate to 2.25%-2.5%, the highest it’s been since 2008.

Long-term rates like mortgages aren’t directly controlled by Fed rate hikes, but rising interest rates do put pressure on mortgages, eventually softening demand for housing. A 1% increase on the 30-year fixed loan reduces the pool of eligible buyers by up to 20% in major cities.

3. Homebuyers are signing fewer contracts, so 2019 is the time to secure an offer

According to NAR’s pending home sales index, which measures signed real estate contracts for single-family homes and condos, real estate contract activity dropped 2.6% in October, highlighting the 6.7% decrease in pending home sales year-to-year.

A major contributor to this decrease is the rise in mortgage rates and drop in eligible homebuyers. Without the buying power that comes with lower interest rates, people are signing fewer contracts to buy a house.

Browse the entire list here…

Data shows good timing for sellers to put their house into for sale listings, with mortgage rates going up, among other reasons. It’s time to fix those areas in the house that need repairs for it increase home’s value.

If you need some help in selling your house fast, we at Dependable Homebuyers can help you sell your house fast, finding the right buyer for your beloved property. To know more, visit https://www.dependablehomebuyers.com and we’re ready to help.

The post Home Selling: Why You Must Do It In 2019? appeared first on Dependable Homebuyers

Advertisements

Rental Growth May See Modest Declines in 2019

Due to increasing home prices and less and fewer people are able to afford to purchase a home, forcing homeowners to rent a property or a house for a longer period of time that at some point, they are changing their minds preferring renting over buying a new house. With rising home prices amidst better US economy still prevailing in the housing market, it is very important to know the current status of rental growth, whether increasing or decreasing or remain resilient and supported by continued population growth.

According to an article written by Kathy Orton in The Washington Post, some of the experts were weighing in on what 2019 rental market will bring to the entire housing market. Read the article below to know more about the rental market.

Experts Weigh in on What the 2019 Rental Market Will Bring

Photo Credits: Justin T. Gellerson for The Washington Post

Last week, we looked at where the housing market is headed in 2019. This week, we’re taking a look at the rental market.

People are not only renting longer, but in some cases they prefer renting to buying a home. Developers are responding to this demand by building more units, which is holding down rents in some places. But supply continues to be a concern, especially at the lower end of the market, where high occupancy rates are pushing up rents.

The challenge when trying to discover how the rental market is faring is that the data can be contradictory. That’s because it depends on how each source gathers its numbers. Some restrict their data to large buildings. Others limit it to the listings on their site. Renters of single-family homes are usually excluded. As a result, the data can be confusing.

But while the numbers may not agree, the insights they offer can be useful. Below is a snapshot of what rental experts are predicting for 2019:
RealPage

A wave of new apartments has held down rent price growth in the D.C. region, according to RealPage, a tech company that provides software and analytics for the rental housing industry. Washington added around 11,000 units in 2018. Another 16,000 are expected to come online in 2019. The influx is well above historical norms of 7,000 to 8,000 units per year. But this cycle, which started in 2010, has brought an average of 10,000 to 12,000 new units per year.

National Apartment Association

The NAA predicts occupancy rates will continue to be around 94 to 95 percent in 2019, with rent growth averaging 2 to 3 percent. Concessions — breaks landlords offer to lure renters — are declining.

Paula Munger, NAA director of research, expects healthy demand for apartments in 2019, even as developers continue to bring more buildings online.

“I don’t think we’re caught up,” she said. “There’s still a gap. … There is not enough [apartments] at all price points.”

Investment in D.C.-area apartment buildings is also strong. Sales of apartment buildings were up 27 percent from 2017, with the most transactions in Georgetown, Southeast Washington and Fairfax. See full post here…

The more important data to look at is the fact that people right now are not only renting longer but now prefer renting than buying a new home. Also according to these experts, the rental occupancy rates will still be at a very high level at 94 to 95 %, with rent growth at around 2 to 3 percent on average. This is actually an awesome feat and very good news for landlords and real estate investors who are into property rentals.

On the other hand, in an article written by Shawn Knox in Global News, Regina is expecting to see modest housing gains for the year 2019. Learn more about this topic below.

Regina Expected to See Modest Housing Gains in 2019

Image Source: Global News

A modest recovery in housing is expected to start in Regina for 2019 and 2020 according to a report from the Canada Mortgage and Housing Corporation (CMHC).

The report says it’s expecting a significant decline in Regina’s housing market for 2018, saying weak employment growth and higher mortgage rates have combined to reduce consumer buying power, which has moderated demand for new housing units this year.

The report expects to see a modest recovery in residential construction for 2019, based on expected gains in employment and higher oil prices.

Housing prices in Regina are expected to further decline in 2018, but in 2019 and 2020 they are expected to get modest gains.

The rental market in Regina is expected to see declines throughout the forecasted period, but remain higher than historical norms. Learn more here…

Experts believe that the entire housing market in the US and Canada are expected to decline further in 2018, but in the next years, they are expected to bounce back a bit and get modest gains. The entire rental market is also expected declines throughout the forecasted period, but still higher than the historical data.

Caroline Basile of Housing Wire also published an article about Capital Economics’ forecast of rental growth’s modest declines in the next couple of months. Read the entire story below.

Capital Economics: Rental Growth May See Modest Declines

Image Source: Housing Market

Latest report says rental growth will fall back as earnings cool down

The latest housing outlook report from Capital Economics shows that as GDP growth cools, so will rental growth.

Economists at the firm say it expects that the gradual loosening in market conditions mean rental growth is set to cool off.

“From 3.5% y/y today, rental growth on the CPI [Consumer Price Index] measure will drop to 3.2% by early 2020, where it will remain for the next year or so,” Capital Economics writes. “Our profile for rental and house price growth implies that gross rental yields will rise slowly over the next three years, from 6% today to around 6.3% by the middle of 2021.”

Economists at the firm explained that the “pronounced slowdown in global economic growth” is now affecting exports and when paired with the fading fiscal stimulus and the lagged impact of past monetary tightening, that means growth will ease.

“We expect GDP growth to slow from 2.9% to 2% this year and only 1.4% in 2020, before cuts to interest rates help growth recover to 2% in 2021,” the report states.

Rental growth will also fall back as earnings growth slows, the experts write, but the decline should be modest, and gross yields are set to edge up over the next couple of years.

From the report:

The obvious driver for rising rents is the acceleration in earnings growth seen over the past year. As noted above the rise in average earnings growth, to a 10-year high of 3.4% y/y in February, has not yet brought down the share of rents in earnings. Accordingly, that implies landlords have been able to capture much of the rise in earnings from existing rental householdsRead more about the report here

According to Capital Economics that based on the recent housing market reports, the entire rental growth will fall back as earnings cool down in the first quarter of the year. However, these declines in the rental market are at most, modest and the gross yields are also set to edge up over the next few years. For the meantime, landlords will definitely feel the slow growth in the next couple of months, might even result into increase in rentals affecting the tenants. We do hope that this modest rental growth ends quickly in order for both landlords and tenants to benefit from the rising US economy.

However, if you’re tired of renting a home and decided to buy one for you and for your family, Dependable Homebuyers can help you find affordable homes that are right on your budget. To learn more, check us out on https://www.dependablehomebuyers.com and let’s get started.

The post Rental Growth May See Modest Declines in 2019 appeared first on Dependable Homebuyers

Planning To Renovate Your Home? Check Out These Cool Home Renovation Tips

Homeowners do home renovations at least once a year, even more, depending on how they view their respective homes. A home renovation project is costly, depending on the design, materials, and labor being utilized. Those who have the money have the luxury to do renovations as often as they want and those who are on a tight budget do it seldom, or not doing it at all. The most common misconception is that home renovation is a thing just for the rich, which is definitely not true. However, if you’re on a tight budget, you may focus first on the most important part of the house.

Starting on your living room first, check out these tips from Real Simple on how to design your home interiors the way professionals are doing them. Read below to learn how.

Interior Design Tips From a Pro

Photo Credits: Christopher Sturman

Want to elevate your home without taking on a complete overhaul? Interior decorator Nick Olsen—DIY whisperer and master of the cheap trick—reveals the little tweaks that make the biggest impact.

How did you get started in this field?
Right after getting my architecture degree, I read about the designer Miles Redd in a magazine. I was so blown away by his bold aesthetic and everything he’d accomplished by the age of 35 that I wrote him a letter asking for a meeting. Two weeks later, I had my first full-time job, as his assistant. It was fate!

What’s one quick change that will improve any room?
Lower the artwork. People tend to hang it too high; it should be at eye level. And don’t worry about having something on each wall. It’s better to cluster art in one or two spots than to spread it out.

Decorating a huge room can be intimidating. How do you deal with soaring spaces?
My philosophy is to fill them with large-scale furniture and art. If you’re a less-is-more type, go for one massive piece, like an amazing painting over the sofa.

Suppose you can’t afford art that big?
Buy a blank canvas and paint it yourself. Pick the most interesting color in the room (as long as it’s not already the dominant color) and just cover the canvas in that shade, using the same paint you’d use for walls. There’s no way to mess this up, and it costs next to nothing. Google [famed abstract artist] Ellsworth Kelly for inspiration. He has pieces like this hanging in the Whitney Museum.

Any tips for jazzing up a minuscule space?
Nearly every room has a door. Work it. Paint it a glossy black: It takes only two hours and gives a room instant sass but won’t eat up any valuable real estate.

Click here to read the rest of this post…

If you want to know more about home renovations, better learn it from the pros for they will give you with the most creative, effective and practical home interior design tips that suit your needs. Pros will consider room spaces and work on it as well as your budget. Those tips above are really helpful, especially for first-timers.

If you plan on changing your windows and don’t have any idea how to make it look awesome, check out these tips on finding the perfect windows for your home as published by Easy Home Improvement Blog.

How to find the perfect Windows for your Home?

Image Source: Easy Home Improvement Blog

Just as you’d take plenty of time when choosing new furniture or décor, selecting the ideal windows for your home is an important decision that requires plenty of consideration. With so many styles, finishes and openings to choose from, it’s essential that you choose glazing that will enhance the exterior of your house whilst ensuring your home remains insulated and secure.

Whilst the cheapest way of fitting windows to a new house is to use white PVCu windows, hardwood, composite and aluminium windows offer a lot for design options and a wealth of stunning finishes. With all this in mind, the team at Martindale Windows Northampton have taken a look through the world of windows to give you a deep insight into what each style of window will provide along with the pro’s, con’s and sots of each.

PVCu Windows

PVCu (plastic) windows have dominated the windows market since their original introduction in the 1990s as a they offer the simplest of all window solutions. Whilst his solution is no longer deemed to be environmentally friendly, at an average cost of between £4000 and £15000 per property, they do offer a relatively cost-effective solution and require little maintenance. However, they can look cheap and reduce the value of period homes and can be difficult to repair if broken.

Composite Windows

Formed around a timber window frame with a weather-proof capping, composite windows are generally used on houses that have harsher climates as they are extremely durable. Available with triple glazing and in range of modern designs, composite windows provide a very low maintenance solution that offers extraordinary insulation. However, at around £10,000 to £25,000 per home, composite windows are one of the most costlier solutions. See full post here…

Those are easy to follow tips in finding the right windows for your home. Remember the cost of installing windows depend on the type of windows you’re going to install. Knowing what each window style will provide, as well as the pros and cons of each type. Doing so will completely minimize the cost and avoid making errors in your renovation projects.

Another important area of the house that frequently needs renovation is the kitchen, and Callie Little of Zillow.com gives us tips in making the most of your limited kitchen space. These tips are really helpful to those who have small spaces to work with. Check out the tips below and wholeheartedly follow them for best results.

Small Kitchen? Try These 9 Tips for Making the Most of Your Limited Space

Transform your standard-issue rental kitchen with these tips.

Is there some kind of law that requires rental apartments to supply no more than a single square of kitchen counter space to each unit?

Between the white walls, scarce and often outdated cabinets, and a lack of amenities, it’s rare to find a solid kitchen in the world of yearlong leases.

Here’s where to begin.

Donate first

Before moving into your new space, make sure to get rid of all those things you don’t need anymore.

Have you actually used that discounted bundt pan in the past year or two? If not, donate to your favorite local charity shop. Someone else might get use out of it, and you’ll be saving yourself from more clutter in your new home.

Think vertically

Photo Credits: Zillow

Vertical storage is a tried-and-true method of using space, and the kitchen holds some unique opportunities for making the most of it.

Hanging pot racks, magnetic knife strips, mounted dish-drying racks installed above the sink, and rods with hooks for towels, aprons, small tools and oven mitts are all excellent ways to keep clutter in its place — and keep the surfaces and lower area of the room free.

Find beautiful cleaning tools

The ugly truth is that a lot of everyday items just make sense to keep out — but that doesn’t mean they have to be such an eyesore.

Skip the plastic and get yourself a classic wooden broom, natural fiber dish brush and a glass soap dispenser. These items don’t cost much, but they add a softer look while also getting the job done. Read the entire article here…

The kitchen is among the most important house areas where renovations are necessary in case a new cooking appliance has arrived, or you need to accommodate a bigger sink, etc. It is important for the kitchen to be organized all the time, and space must not be a hindrance to achieving the organization you would like.

It is important that we burst that myth of home renovations are just for the rich and for larger homes. There are cheaper and affordable ways to achieve your desired design without hurting your pocket. In addition, careful planning with the design will negate small spaces. Ask an expert if you need to. However, if you don’t have time to do the renovations and decides to sell your house fast, Dependable Homebuyers can help you find the right buyer for your home. To get started, visit us at https://www.dependablehomebuyers.com and let’s hear from you.

The post Planning To Renovate Your Home? Check Out These Cool Home Renovation Tips appeared first on Dependable Homebuyers

Important Things You Must Know About First-Time Home Buyers

Important Things You Must Know About First Time Home Buyers

First-time home buyers are among the most in terms of numbers as far as the number of home buyers is concerned. Usually, their classifications composed of some millennials and the younger population workforce who have saved enough to purchase a house, or those who are qualified to get a mortgage loan. Since they account for at least the majority of home buyers throughout the country, what they do (or not doing) could have a huge impact on the real estate market in general. On that note, knowing the most important characteristics of first-time home buyers are essential.

The first thing we need to know is the demographics of first-time homebuyers, the, and younger generations, and their variation is best described in the written by Toni Lapp at Real Trends. Want to learn more about their changing demographics? Then read the article below to learn more.

The Changing Demographics of First-time Homebuyers

Image Source: Real Trends

Single women are one of the fastest-growing demographics in the housing market, according to realtor.com research.

The future of real estate will be significantly influenced by women, millennials and Hispanics, according to realtor.com®‘s analysis of first names on 2018 home sales deeds.

Single women are one of the fastest-growing demographics in the housing market, according to the data. Although older Baby Boomer and Silent Generation women are leading the charge, the increase in deeds with female names is particularly visible when comparing genders within the millennial generation. Looking solely at names with a peak year between 1981 and 1997, millennial female names are outpacing millennial male names, with home sales with female names beating male name home sales by 1.5 percent (6.9 percent versus 4.4 percent on average year-over-year, respectively). Seven of the top 10 fastest growing buyer names are predominately millennial female names, and all of them peak in the 1980s and 1990s.

Overall, Hannah, Austin, Alexis, Logan, and Taylor — of which three are predominantly female names — were the top five fastest growing first names on home sales deeds in 2018, with their frequency seeing an average increase of 22 percent from 2017. While Michael, John, David, James, and Robert were still the top five first names on sale deeds by sheer volume, these names saw a 3 to 5 percent decline over 2017.

Millennials are NOT the rent generation
In 2018, home sales with millennial names1 increased 5.3 percent, followed by Gen X names at 0.8 percent. Names of Boomers (born 1946 to 1964) and the Silent Generation (born before 1945) fell 2 percent and 3.5 percent, respectively.

Geographically, millennial buyer names are particularly overrepresented in Kansas, Indiana, Louisiana, Missouri, and Utah – states where housing affordability remains above national levels – confirming that jobs and availability of entry level homes act as magnets for young buyers. Click here to read the rest of this post…

One important information we must know that the current demographics of first-time home buyers are being dominated by single women, making them one of the fastest-growing in the housing market. In addition, the future of real estate will also be significantly influenced by them, as well as millennials and Hispanic. These millennials are also not the rent generation and they prefer owning a home than renting.

As mentioned earlier, not all first-time home buyers have the financial capabilities to purchase real estate in straight cash, but by borrowing money from lending institutions such as banks with mortgage interest rates they can afford to pay. Whether they have the capabilities to pay their loans or not could also have an impact as to where the housing market will head to. Katies of Zillow.com further explains the characteristics of today’s first-time home buyers are borrowers alike. Read the article below and know more about these characteristics.

First-Time Home Buyers: Characteristics of Today’s Home Borrowers

Photo Courtesy of Zillow

While the role of first-time home borrowers hasn’t changed much over time—they are generally vacating rental housing to move into starter homes—the characteristics of these new home borrowers has definitely evolved. Today’s first-time home buyers are older, less likely to be married, and purchasing more expensive homes than they have in the past.

What does this mean for mortgage lenders when these new buyers are ready to purchase a home? By understanding what drives their decisions, you can be more prepared to help this group of borrowers when they come looking for a mortgage loan, and you will be better able to connect with them and meet their unique needs.

Delaying their home purchase

The median age of 32.5 for today’s first-time home buyer might mean they’ve paid off any student loans or are close to it, making it possible for them to save even more for their home—or to afford a better home or neighborhood than they originally thought. They could be well-established on their career path with a reliable income and a higher credit score. This financial stability makes them less of a risk for larger loans and better equipped to handle a mortgage in general.

Renting longer

After renting for an average of six years, today’s first-time home buyer might not realize that there are more costs associated with buying a home than just what’s on the price tag. Helping your borrowers understand how their loan repayment will work, and being transparent about added costs, such as closing fees, can go a long way in helping them prepare for their first mortgage.

Being upfront and providing a complete financial picture will give borrowers confidence in you as their lender, which goes a long way in securing repeat and referral business. Click here to read the rest of this post…

First-time home buyers generally vacating rental housing to finally move into purchasing their very first home. Apart from the younger generations and millennials, some of the first-time home buyers are also older and less likely to get married in the next couple of years.

Jessica Guerin of Housing Wire also gives us more information on what you need to know about first-time homebuyers, as well as pinpointing relevant characteristics of this demographic.

Here’s What You Need To Know About First-Time Homebuyers

Image Source: Housing Wire

Earlier this week, we established that first-time homebuyers are not, in fact, being shut out of the housing market as some had feared, thanks to a recent study by the Federal Reserve Bank of New York.

Rather, their share of market participation has remained stable over time, rising and falling slightly over the last 17 years in response to market conditions, but averaging about 45% of the overall market.

The NY Fed revealed that as of 2016, first-timers comprised a healthy 46% of homebuyers.

Now, a second part of that study aims to pinpoint the characteristics of these first-time buyers and note how they have changed over time.

The goal, the researchers said, is to help shape housing policy aimed at enhancing access to homeownership.

First-time buyers generally take out smaller mortgages than repeat buyers.
And, this gap is widening. In 2000, the average origination mortgage balance was $117,000 for first-timers was and $143,000 for repeat buyers. In 2016, the average origination mortgage balance was $213,000 for first-timers was and $273,000 for repeat buyers. Read full article here…

Her article also debunked the common misconception that first-time homebuyers are being shut out of the housing market. Studies are being conducted to help shape a policy for housing aimed at enhancing access to homeownership. In addition, first-time home buyers are also typically conservative as they generally take out smaller mortgage loans than repeating buyers.

There are lots of first-time home buyers, and their actions have an impact on the housing market in the short, mid and long term. It is crucial to know their characteristics and their tendencies to prevent the real estate market from crashing. With all being said, if you’re a first-time homebuyer and looking for good home deals in Baltimore or in Nashville, Dependable Homebuyers can help you find affordable but quality home deals. To learn more, visit https://www.dependablehomebuyers.com and let’s get started achieving your dream home.

The post Important Things You Must Know About First-Time Home Buyers appeared first on Dependable Homebuyers

Avoid These Costly Landlord Mistakes To Maximize Rentals Profitability

Property rentals are among the most popular and one of the most profitable real estate investment types. It is relatively easy to manage and does not require expert investment or real estate investing skills to become successful. However, there are still significant things to do and mistakes to avoid for every landlord to maximize profitability.

Avoid These Costly Landlord Mistakes To Maximize Rentals Profitability

Landlords are the people that own the property being rented to tenants at agreed terms. So, in a nutshell, landlord basically waits for the time until the tenant settle their monthly obligations (depending on the agreement of both parties). But then again, landlords are bound to commit mistakes that at some point could affect the property’s profitability. Larry Alton of BiggerPockets shared to us the most costly mistakes landlords are committing that limit their profitability. Read the article below to learn more.

4 Expensive Mistakes Landlords Must Avoid

Image Source: BiggerPockets

Successful landlords aren’t cheap, but they are definitely cost-conscious. In other words, they understand that costs add up over time, so they make smart choices to maximize revenue.

For example, a $100 mistake might not seem like a big deal in isolation. But if you’re making a $100 mistake every month on three different properties that you own, you’re costing yourself $300 per month—or $3,600 per year!

This can create cash flow issues and prevent you from being able to accomplish your long-term goals.

There’s a time and place for spending money to set yourself up for success. However, there are also ways you can limit your expenses to maximize your revenues. Here are some expensive mistakes to avoid.

1. Investing in the Wrong Properties

You make your money when you buy a property. Repeat that out loud: You make your money when you buy a property.

The biggest profitability problem landlords have is created by investing in the wrong properties—or overpaying for the right ones. If you make either of these mistakes, you’ll find it nearly impossible to generate a profit that’s worth your time and energy.

Bad properties have slim margins and a tendency to need lots of work. While you won’t find a perfect rental property, you should practice greater patience and seek out ones that have the opportunity for greater gains. This will provide more margin for error.

2. Poor Tenant Screening

After selecting the right property and making a smart investment, nothing matters more than tenant selection. And if you don’t have the right screening processes in place, you could seriously impact your long-term profitability.

A bad tenant will cost you in multiple ways, including:

  • Late rent checks and/or missed payments
  • Lack of care for property (frequent maintenance issues)
  • Violation of lease agreement terms
  • High turnover
  • Failing to leave the property in good condition upon moving out

The list could go on and on. If you aren’t carefully screening tenants, then you’re taking a major risk.

Should you end up with a bad tenant who has financial issues and a lack of regard for your property, it could cost you thousands of dollars. By enhancing your tenant screening, you’ll minimize these instances and maximize profitability. See full post here…

It is no denial that the landlord often commits mistakes in screening their tenants. They must have an established tenant screening process. Remember that a bad tenant will affect your profitability in multiple ways. Missed payments, maintenance issues, and other issues add to the landlord’s cost. Better avoid all of these by properly screen tenants first.

Lindsey Schober of Zillow also shared the most common mistakes landlord makes that are commonly observed by the experts over the past years. Want to know more about these mistakes? Read the article below.

Top 10 Mistakes Landlords Make

Image Source: Zillow

People enter the landlord business for many different reasons. Maybe you’re an “accidental landlord” who decided to rent out your former residence, or you gained a property through an inheritance. Or, maybe you diligently researched properties for sale and chose to purchase one (or more) as an extra source of income. Regardless of how or why you entered the business, being a landlord can be a profitable endeavor — or a costly one if you stumble into some common pitfalls.

Here are 10 of the most common mistakes landlords make and how to avoid them.

1. (Not) Understanding your local market

The three most important words in real estate investing continue to be location, location, location. This is twofold: First, it means making sure your rental is in a desirable area so you can attract more potential tenants. Just because the price is right doesn’t mean that the location is. Get to know the neighborhood, including access to transportation, grocery stores, area features and businesses. Second, understanding your location means learning about the dynamics of the local market, researching area taxes and determining what you can charge for rent — all of which are key to estimating the return on investment for your property so you can predict your monthly rental income.

2. (Not) Understanding fair housing laws

Before you start looking for tenants, you need to understand fair housing and discrimination laws; otherwise, you risk getting into legal trouble. Fair housing laws are federal statutes that ensure equal access to housing for everyone. It is illegal to discriminate against anyone on the basis of race, color, religion, national origin, sex, familial status or disability. Many local and state governments have additional protections that you’ll want to become familiar with. A general rule of thumb is to focus on the property and amenities in your advertising and conversations — not on who you think the ideal tenants would be or features geared toward a specific group. The bottom line is to treat and communicate with every applicant and renter in the same way.

3. (Not) Conducting a thorough tenant screening

While speed is important in filling your vacancy, you still want to choose a highly qualified renter. Create a documented process and criteria for finding, screening and securing your tenants. Make each potential renter fill out an application and verify everything from employment to past addresses (and get landlord references while you’re at it). You’ll want to perform a tenant background check and run a tenant credit report. Confirm that renters have paid the rent on time and have not caused problems for their previous landlords or employers.

Click here to read the rest of this post…

Some landlords failed to understand their target market, ending up finding a very bad location for their property rentals. As a landlord, it is very vital to know and understand your market very carefully; whether you’re going to rent your property to students, workers, entrepreneur, etc. Understanding your market will bring you a long way as a successful landlord.

There are also the biggest mistakes that kill profitability, but still, a lot of clueless landlords are doing them. Andrea Collatz of My Smart Move compiled these mistakes so that they can be avoided.

The Biggest Mistakes Landlords Make That Kill Profit

When you first started looking into purchasing a rental property, you likely had dreams of a profitable return on your investment. After all, no one goes into business to lose money. But what if you were losing money in ways you didn’t even realize? Below are some the mistakes landlords make that eat into their rental profits.

1. Not properly crunching your numbers

When looking to buy an investment property, it’s crucial to first calculate all your expenses and what you can reasonably expect to get in rental profit. If you skip this step, you could wind up in trouble when you realize that your monthly rental income only covers part of your monthly rental expenses. Doing the math may sound like a pain, but it’s worth it when you consider your bottom line.

Image Source: My Smart Move

Once you know your expenses you’ll be better able to set a rent price to help make a reasonable monthly profit. In terms of profitability, one guideline to use is the 2% rule of thumb. It reasons that if your rent is 2% of the purchase price, you are more likely to generate positive cash flow. But the market drives rental prices, so you’ll have to do your research to determine what you’re able to rent for in the neighborhood. Renting for under market value risks tanking your monthly profit, but so will vacancies. If an asking price is too high, you could be left with an empty apartment for several months, and you’ll likely end up renting for whatever the going market rate is.

2. Choosing a bad rental location

Location is a highly influential factor as to why renters choose to rent where they do. If you’re a new investor looking for a rental property, work with a real estate agent who is familiar with the area and can point you to some of the better neighborhoods for rentals. In general, tenants look for areas that are close to public transportation, dining, shopping, schools and universities.

If the location of your rental is undesirable, you’re going to struggle to find renters. This means your unit will take longer to turnover, you won’t be able to charge as much in rent. Plus, you’ll end up with a smaller pool of renters to choose from because it might take longer to find someone who’s a good fit for your rental. All of these factors can cause you to lose out on income, therefore, location is a key factor in choosing a successful and profitable investment property. Click here to read the rest of this post…

Always remember that the main goal of renting a property and becoming a landlord is to earn profits from the property (a house) rental. However, committing errors and huge mistakes will limit your capability to profit. Follow the above expert tips, and completely avoid the mistakes in order for you to maximize profitability.

If you plan to rent a property and is looking to purchase a house to achieve it, then Dependable Homebuyers can help you find the right house to rent. Become a successful landlord in no time. To learn more, visit https://www.dependablehomebuyers.com and let’s get started.

The post Avoid These Costly Landlord Mistakes To Maximize Rentals Profitability appeared first on Dependable Homebuyers

What Are The Different Types of Home Repairs And How To Maximize Them In House Staging?

What Are The Different Types of Home Repairs And How To Maximize Them In House Staging

There are lots of advantages of doing home repairs (or renovations) before listing it as for sale. Basically, a home with less damage and had undergone renovations and repairs will increase its worth than those being listed as is, with no repairs whatsoever. Now, depending on the severity of damage in both the interior and exterior of the homes is the type of home repair you need. Remember that the goal of doing the extra effort of home fixing is to appreciate home’s value, and spending extra cost on repairs you don’t actually need will defy that purpose.

First thing you need to know is the worthiness of house staging for real estate investors. To know the answer to this very important question, G. Brian Davis of Lending Home explains thoroughly house staging and its impact on real estate investing in general.

Is Staging a House Worth It For Real Estate Isnvestors?

Image Source: Lending Home

You’ve renovated a house to flip it. Congratulations! Now it’s time to pass it over to a Realtor and put your feet up, right?

Not necessarily.

Your job as a house flipper doesn’t end when the last nail slams home. Ultimately, you’re the one on the line for soft costs like the monthly hard money loan payment, paying the utility bill, insurance, and so on. Every month that goes by, your profit margin slims.

One option to do just that? Staging houses on a budget.

The benefits of home staging: sales price

Does staging a home for sale actually work?

According to most buyers’ agents, it does. A study by the National Association of Realtors (NAR) found that 97% of buyers’ agents reported that staging had some effect on how buyers view prospective homes.

While staging can certainly help boost a property’s price, it can’t perform miracles. Make sure you have a firm grasp on pricing strategies as a house flipper before setting a sales price.

Is staging a house for sale worth it?

Not every house should be staged. Part of learning how to flip a home is understanding what’s effective in different markets and neighborhoods, which goes doubly for marketing your home to sell fast.

Nor is staging a one-size-fits-all proposition, even for properties that can benefit from it. Consider the following options at varying price points:

  • Hiring a full professional home staging service
  • Staging a couple key rooms with furniture on your own
  • Staging without furniture by simply adding a few touches throughout the house

So how do you decide which properties are worth staging, and what degree of staging to do for each?

First, consider the value of the property and the prospective buyers. If you’re flipping a house to a landlord as a turnkey rental, staging won’t persuade your pool of buyers. See full post here…

Then again, home repairs and renovations must be done to increase the home’s value. However, not every house should be staged or renovated. You might end up spending more than your profit. Always study first what’s effective in your market and neighborhood. In addition, if you think you can’t perform the repairs on your own, it won’t hurt to hire a professional to get the job done.

Going back, there are parts in the house that don’t need for repairs and Sasha Brown-Worsham of Realtor.com mentioned the things not bother fixing first. Read the article below to learn more.

Selling Your Home? Relax! 5 Things to Not Bother Fixing First

Image Source: Realtor.com

Selling your home? Then you’ve likely had that rude awakening where a real estate agent tours your home and breaks some tough news: Your house needs work before it goes on the market.

For starters, you’ll have to fix the boiler. And paint. And replace those outdated cabinets … the list might go on and on.

Given that all these tweaks cost money, you might wonder: Do I have to do everything?

Many of these fixes are indeed necessary, says Kathleen Kuhn, president of HouseMaster, a national chain of home inspection offices.

“Any defect or condition that affects the intended function or operation of a major house system should be fixed,” she says. This would include taking care of leaks, built-in appliances not functioning properly, insect infestations, plus any imminent safety or environmental hazards.

1. Fixing cosmetic damage

Cosmetic damage includes things such as scuffed floors or peeling paint: They don’t interfere with the function of your home, although they do make it look run-down. The good news is, a keen home buyer knows to look beyond that, says Craig Webb, editor of Remodeling Magazine.

“Sophisticated home buyers and home flippers know that cosmetic damage can be easily fixed,” says Webb. What will give them pause is the hard stuff.

2. Updating kitchens and bathrooms

So your kitchen is woefully outdated, your bathroom avocado green (yuck). That may be OK. Really.

The reason: Many buyers these days look forward to remodeling these “fun” areas—plus, trying to second-guess what they want and have it there waiting for them is just plain unrealistic, given all the home decor styles there are to choose from today.

3. Doing partial fixes

If you do decide your kitchen and bathroom are so bad they’re worth redoing, don’t go halfway. Unless you can redo a whole kitchen, don’t bother with partial fixes. Older cabinets with brand-new granite countertops only highlight the old.

Click here to read the rest of this post…

In home repairs before selling, it is vital to focus first on the top priority home areas that contribute to home’s appreciation. Also, don’t bother with partial fixes are also not recommended to do partial fixes. Cosmetic damages do not affect the functionality of your home, put it at the end list of repair priorities.

Lisa Smith of Investopedia identified the different types of home renovations, and which of them actually boost your home’s value. Check out her article below to find out more.

4 Types Of Home Renovation: Which Ones Boost Value?

Photo Credits: Futurzweb

“Fix it and flip it” is a phrase often associated with real estate. With this in mind, many homeowners undertake major renovation to their residences before putting them up for sale: Sprucing up the place will always send the sales price soaring, right? Wrong. More often than not, these upgrades fail to pay for themselves. Read on to find out how to renovate strategically and which sort of projects really add value to your property.

The Difference between Investors and Owners

Updating an investment property is generally a sound strategy – if it’s done the right way. Successful advocates of the fix-it-and-flip-it philosophy are investors, with the investor’s mantra of “buy low, sell high.” So they purchase run-down homes at bargain prices and save money on the repairs by doing most of the work themselves. A little sweat equity goes a long way toward making a real estate investment profitable. They carefully choose their remodeling projects,too, focusing on those that will result in the most value for the least amount of effort and cost.

Part of the process includes paying attention to the other homes in the neighborhood to avoid over-improving the property. If none of the other houses in the area have crown moldings and Corian counter tops, adding these amenities is unlikely to result in a significantly higher selling price.

The Basics

The basic are the things that buyers expect when they purchase a home. This includes a roof that doesn’t leak, functioning gutters and downspouts, a dry basement, a reliable furnace, solid floors, walls that are in good repair, retaining walls that work; most potential buyers also expect your home to have functioning plumbing and HVAC systems. In upscale properties, the basics might also include a certain number of bedrooms, bathrooms and garages, and any other amenities that are common to the neighborhood.

Curb Appeal

Items that add curb appeal help the property to look good when prospective buyers arrive. While these projects may not add a considerable amount of monetary value, they will help the place sell faster. Curb appeal items include a well-manicured lawn, low-cost landscaping, fresh paint inside and out (at least, the front door), cleaned carpets and new fixtures (even redoing the address numbers). You can DIY these projects to save money and time.

Adds Value

The projects that add considerable value are big favorites of fix-it-and-flip it advocates – and they should be high on a homeowner’s list too. While most of these efforts will not recoup their costs, some will come close. The National Association of Realtors cites new siding, kitchen renovations (new countertops and state-of-the-art appliances) and new windows as some of the most beneficial projects, often recouping 80% or more of their costs during resale. Learn more here…

In general, doing home renovations, repairs or house staging before listing your home as for sale helps a lot in increasing home’s overall worth. However, there are pitfalls that could incur additional cost on your end. Always follow the plan and just focus on the priority.

If you’ve done all the necessary repairs and is now ready to put your home into various listings, we at Dependable Homebuyers help you put your home into different home listing sites in Baltimore, Nashville, and other areas. To get started, visit us at https://www.dependablehomebuyers.com and we look forward to talking to you.

The post What Are The Different Types of Home Repairs And How To Maximize Them In House Staging? appeared first on Dependable Homebuyers

How To Efficiently Do Home Rehab and Flipping?

House flipping is a common real estate investing type that involves buying a property such as a house, then selling it again for profit. It is actually a highly profitable investment, but with a higher risk. In fact, a lot of investors lose money from house flipping due to wrong decisions such as selling the house way below the purchase price, unexpected renovation costs, among others. To a lot of experts in flipping homes, the crucial key to house flipping success is the earlier you sell the house, the better profit you can get. Also, fixing, repairing and renovating the house increases its worth and is another way to make profit other than selling the house as is.

How To Efficiently Do Home Rehab and Flipping

To help make the most out of your flipping experience, G. Brian Davis of Lending Home provided us with flipping a house checklist for a profitable house flipping by doing the right home rehab. Read the article below to learn more.

Flipping a House Checklist: A Cheat Sheet for Your Next Rehab & Flip

Image Source: Lending Home

Anyone who tells you that flipping a house is as easy as 1-2-3 is probably selling something. But, in their defense, it’s not rocket science either.

While you still need a house flipping business plan to increase your chances of a profitable flip, the fundamentals of flipping a house don’t require a Ph.D. If you’re new to flipping houses, use the steps below as your “flipping a house checklist” to ensure your first few house flips run smoothly and profitably.

1. Find good deals

Learning how to find houses to flip is a lengthy discussion in itself, but the first step is deciding on a deal-finding strategy. Will you look for on-market deals, listed on the MLS? Perhaps bid at real estate auctions, or foreclosure auctions? Or are you looking off-market, through local wholesalers, or a direct mail campaign, etc.?

Pick one or two strategies, and learn everything you can about finding and buying investment properties through that approach.

Now is also a good time to line up lenders for financing that support your particular strategy. Get a pre-approval letter from your first-choice lender to submit along with your offers.

2. Make offers

Be prepared to submit five, ten, twenty or more offers before one is accepted. Real estate investing is a numbers game, so don’t be discouraged when your first – or tenth – offer is declined.

Before making an offer, set a firm ceiling price for negotiation. The seller may come back with a counteroffer, sparking a negotiation for price and buying terms. But before you enter a negotiation, get very clear on the property’s numbers.

Remember, you can always include a contingency clause in your offer. For example, if the home inspector finds previously-unknown problems with the property, you can structure your offer to allow cancellation with a full deposit refund. Your Realtor will provide the legal language in the contract if you choose this route.  See full post here…

Before even thinking of house flipping, it is important to devise a plan first, which basically contains your approach, strategy, and contingencies in case your plan fails. The above checklist is a good way to start as well. By listing down the most crucial steps down the least important, you’ll have a good grasp of your strategy and so that you will not miss any relevant details on your house flipping deals.

If you’re being cautious on your repairs and renovations budget, then you must focus first on the most important things to repair before selling the house to be flipped. Bill Gassett of Max Real Estate Exposure shares the most important things to repair before selling the house. Check out his tips below and apply it to your flipping strategies.

Most Important Things to Repair Before Selling a House

Photo Credits: Angie’s List

It is easy to miss a lot of the wear and tear that happens to your house over the years. But when you start thinking about selling, the state of your home becomes much clearer.

Taking care of the most important things to repair before selling a house will put more money in your pocket! This is one of the primary reasons real estate agent recommend taking care of certain things before you list your home.

Repairs Worth Making Before You Sell

1. Paint

Paint is one of the cheapest, easiest ways to update the look of your home before you list it. And you don’t need to be a professional painter to make this work for you, either. Watch a few videos online, pick your colors and go to town!

Lighter and neutral colors are preferred when selling because they tend to appeal to most people. You never know who will walk through the door to view the house, so it makes sense to keep the styling primary.

2. Exterior

The exterior is the first thing buyers will see, so you want it to look good. Replace missing fence boards, add sod if the yard is looking the worse for wear, and clean up any junk that may have accumulated in the yard or on the outside of any storage sheds.

Make sure the grass is mowed and that weeds are taken care of before someone comes to view the home. You can also plant some flowers in the beds to add color and make the place feel homier. Here are some low-cost exterior home improvements worth doing.

3. Kitchen

Kitchens Are Essential to Home Sales

Everyone wants a large, spacious kitchen with all new appliances – where they can cook and entertain (even if they never do either). Now your kitchen may not satisfy these desires without significant upgrades, which may not make sense financially.

Do not do a complete kitchen renovation unless your agent tells you that he or she believes you can make your money back on the sale. See full post here…

On a tight budget, you don’t have to repair or renovate the entire house, especially if the overall cost will reduce your profitability significantly. Focus on the most important areas on the house that will depreciate its value if left unrepaired. Follow the steps above to minimize the cost of repairs while maximizing your profitability.

Speaking of maximizing your profitability in house flipping, Auction.com shared awesome tips for boosting profits in house flipping. Read the article below to learn more.

Tips for Flips: Part I: 4 Ways to Boost Your Profits

Image Source: Auction.com

Many investors today have realized that it can be lucrative to “flip” homes—buy an underpriced house, fix it up, and quickly re-sell it for full neighborhood value. It’s so easy to believe the real estate cable TV shows that promise huge profits on every deal.

But they leave out all of the other expenses—closing costs, real estate commissions, taxes, insurance, utilities, and miscellaneous property maintenance—that come with a real estate transaction. In real life, the actual net profit is often far less.

If you want to maximize your profits, it’s imperative that you learn how to minimize costs while rehabbing. Here are several tools that I’ve used over the many years of my real estate investment career.

1. Use cash or cash equivalents

The least expensive way to flip a home is by using cash. Although you tie up those funds for a few months, when you sell the home, your return on investment should be substantial, and much higher than parking your money in a savings account or CD.

If you don’t have enough cash to purchase a home, the next cheapest source is a home equity line of Credit (HELOC). These are low-interest, variable-rate lines of credit that are secured by either your primary residence or an investment property. Typically, the HELOC rate is set about 1–2% above the prime rate, which is currently 3.25%. You need to put the HELOC in place before you bid on any homes; then you can bid on the home as a “cash deal,” rather than as a “financing deal.”

Just remember that a HELOC, just like a regular mortgage, puts a lien on the property that it secures. If you don’t make your payments, you could lose that property to foreclosure.

2. Target homes that will sell quickly

When choosing a property to buy and flip, make sure that you buy one that has the best chance of being re-sold quickly. That means you want to buy a home in an area that has a good reputation, good schools, and a low crime rate, among other features. You should also buy one that will re-sell in a price range that attracts the largest number of potential buyers. For example, if you flip a home that’s really cheap, there may not be people in the area whose credit scores will qualify them for a loan.

Conversely, if you buy a very expensive home to re-sell, there will be fewer people who can afford to purchase it, and it will take longer to sell. Look for homes that you can flip into that sweet spot in the middle of the area’s price range. Click here to read the rest of this post…

There are lots of ways to boost your profit margin in house flipping. Purchasing the house to be flipped in cash gives you more opportunity to earn more since you don’t have to pay interest rates from loans. In addition, using your skills and experience in finding homes that will sell quickly allows buying more houses, thus more opportunity to make profits. Other factors such as location, high homebuyer demographics, etc. must also be taken into consideration.

House flipping is indeed a profitable real estate investment type, but with a higher risk if not managed properly. Also, it requires knowledge, skills, and experience to get the best deals. With that said, if you plan to do house flipping but lacks the capital, you may sell your other property (if you have one) and raise the needed capital. Dependable Homebuyers can help you sell your house fast and get the needed money for your latest investment ventures. To learn more, visit us at https://www.dependablehomebuyers.com and we look forward to hearing from you.

Dependable Homebuyers
1402 Belt St, Baltimore, MD 21230
(443) 266-6247

The post How To Efficiently Do Home Rehab and Flipping? appeared first on Dependable Homebuyers