Make Sure To Avoid These Common Real Estate Investor Mistakes

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Although the rewards can be high in the real estate game, the financial risks are also real. When looking to enter the market of real estate investment, it is critical that all avenues are explored and all precautions considered. Here is a list of a few of the top mistakes that rookie investors making when jumping into the real estate market:

NOT BEING AWARE OF DAYS ON MARKET (DOM)
This crucial statistic is one of the best indicators of the health of the market. A higher DOM generally demonstrates that the market is more buyer-friendly while a lower DOM is an indication that a market is more difficult to crack. Knowing these numbers for your region and keeping tabs on their fluctuations will greatly increase your odds of success.

CHOOSING THE WRONG PEOPLE
When flipping houses, it is especially important to find a stable crop of quality contractors to do the dirty work for you. Ask around to trusted colleagues for recommendations and then ensure that the candidates are properly vetted. Hiring the wrong contractor can end up busting a budget and wasting precious time. And in a business where time is money, that is a losing proposition.

NEGLECTING TO LEVERAGE THE MLS
With the popularity of sites like Zillow and Redfin exploding in recent years, many realtors are moving away from the traditional MLS listing. Neglecting to harness the power of the MLS is a big mistake. As the host for the largest pool of real estate properties, the MLS still holds the greatest power in the market. Not leveraging this service could prove to be detrimental to the success of your business.

NOT CREATING A COMPLETE BUDGET
Before jumping into the real estate market, it is critical to plan out a complete budget, taking into account all possible pitfalls and roadblocks. Failing to do so can negatively impact both your current project as well as your potential for success in the future.

FORGETTING TO OBTAIN THE PROPER PERMITS
Although the red tape can be tedious, savvy real estate professionals understand the importance of following the rules when looking to flip a house. Do not neglect to obtain the necessary permission in the name of saving money and time.

Take A Trip Inside This Miami House

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This stunning glass-and-steel contemporary, located in the uniquely gorgeous Ponce-Davis neighborhood, is the sort of home that dreams are made of. Nestled in an ultra-private gated estate and shaded by lush live oaks, the five-bedroom estate is just waiting for the right owners to come and add their discriminating touch.

The unforgettable tour begins outside on the 34,408-square-foot lot, where the turquoise waters of the infinity pool beckon alongside a modern cabana. The outdoor space is accented by vertical gardens, designed by none other than Andres Tabora of Venezuela. An open-air kitchen rounds out the alfresco experience. With these delightful features just outside the door, it would be hard to imagine ever wanting to go inside, but what awaits within the walls is worth more than a second glance.

The home–built by Norway Builders, following a design laid out by O’Donnell Dannwolf & Partners Architects–boasts 7,916 square feet of living space. Classic wood flooring, stack stone, and a floating staircase are just a few of the marvels featured here. While the property lists five bedrooms and six and a half baths, there are numerous multi-use spaces just begging to be transformed into whatever the owner’s heart desires–maid’s quarters, an office or study, a cozy den, a walk-in closet, or perhaps a media room. The master bath features a soaking tub deep enough to lose yourself in, surrounded by floor-to-ceiling impact glass windows. Natural light spills freely throughout the interior, with open walkways and abundant windows making the space feel even larger than it really is.

Step into the modern kitchen, with its crisply neutral color palette and sleek lines, and have a seat at the built-in breakfast bar. Overhead, the recessed lighting provides just the right degree of ambiance to make you feel instantly at home. Wood paneling gives a nice texture and contrast to the open space. The appliances are all state-of-the-art and fashionable to boot, and the entire house is wired for high-tech sound and security.

At $5.9 million, this property is priced for the discriminating buyer, the one seeking a home that’s unlike anything else on the market. While its design blends in perfectly with the South Florida landscape, you’d be hard-pressed to find its equal in any of the surrounding neighborhoods, or even within Ponce-Davis itself.

How Can You Improve Your Listing’s Buying Potential?

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If you are thinking of selling your home, there are a few relatively simple and low-cost steps that you can take to ensure that your listing gets the most attention and, ultimately, receives the highest price. Luckily, modern tools make listing a home far easier and more effective than it has ever been. But you need to know how to best use those tools that are at your disposal. One of the most effective ways to give your listing a huge leg up on the competition is through the use of high-quality drone photography.

The advent of modern drone photography has represented a tectonic shift in the way that modern homes are marketed. But you need to find a high-quality drone photographer in order to take full advantage of the many benefits of this new form of real estate photography.

With the recently relaxed FAA rules for the operation of drones within residential areas, nearly everyone in the country has the ability to enhance their listing through the use of drone photography. Modern drones use ultra-high-quality cameras that produce movie-quality videos. They use stabilization technology to get shots that look better than anything aerial photographers of the past have ever been able to realize.

However, when your home is photographed from above, it is necessary to ensure that areas that you normally would not think about are in top condition. Make sure that all shingles on your roof are in good shape and that both the roof and gutters are completely clear of debris. Having excess leaves, shingle damage and gutter debris in the drone shots can actually detract from positive perceptions of your property.

You should also remove all exterior clutter from the home and make sure that the lawn is mowed, and the yard is generally well kept. A beautiful exterior shot of a home can drive traffic to your listing in a way that nothing else can. But a shot that contains kids’ toys, bikes, fallen tree branches and weeds can serve as a detraction from the perceived value of your property.

All told, drone photography, when done right, can serve as powerful enticement to get prospective buyers into a showing of your home. Follow these drone photography steps, and your home won’t be sitting on the market for long.

Australia’s Housing Market Prices Are Falling

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The up-and-down nature of the real estate business is notorious, but Australia in particular has been on a consistent “up” since the turn of the millennium. That trend, however, has seen a significant downturn as of late, with home prices dropping at a rate of 4.5 percent in Sydney alone. So what are the reasons behind this sudden decline?
Prices soared dramatically around the time of the Great Recession
In 2008, the Australian government doubled an existing tax credit, offering $14,000 instead of $7,000 for first-time buyers of an existing home. If the home was new, the credit was increased to $21,000. This incentive contributed to buyer interest, keeping home prices higher than they might have been otherwise.

It’s also worth noting that Australia offers tax breaks on rental properties, to the effect that the government essentially subsidizes any losses incurred from investing in real estate. With a safety net like this, it’s no wonder that the industry thrived for so long.
The Australian economy continued to strengthen over the past decade
While the United States floundered beneath the tide of the Great Recession, other markets were booming. China was purchasing large amounts of and coal and iron ore from their Australian neighbors, thereby keeping the economy strong enough to justify the rising home prices.
China also invested heavily in real estate during this time frame
Although the Australian government has restrictions on foreign buyers, a small percentage does manage to sneak in under the radar. Lately, it’s become increasingly clear that a number of Chinese buyers made these investments as a way of keeping their funds off-shore, as the homes they purchased were lying vacant. As this foreign interest in Australian real estate has waned, so too have the prices.
An increase in interest-only loans has created a speculative bubble
Interest-only loans allow investors to borrow more, which increases their debt but allows their gains to flourish as long as the value of the homes continues to rise. Conversely, however, when home prices fall, so does their equity. As many as 40 percent of Australian mortgages are currently interest-only, which leads prognosticators to assume that the investors are concerned mainly with short-term gains. If the prices continue to go down, many of them may try to bail out by selling their properties, which will contribute to the downward spiral.

What Outdoor Features Can Set Your Home Apart?

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Most homeowners are interested in increasing their home’s value to ensure that they can make more of a profit off of the property once it’s time to sell. When it comes to boosting your property value, adding outdoor features can prove to offer a high rate of return once you find a buyer. When you want to invest in features that will pay off, there are a few features that are worth purchasing.

Barbecue Stations

Barbecue stations and outdoor kitchens are in demand among buyers because it offers a place to entertain outdoors. Homes with barbecue stations have a 26 percent higher value than those that don’t include the feature because it provides the ability to spend more time outside.

Showers

Outdoor showers are increasing in popularity because they provide you with the chance to rinse off after taking a dip in the water. Many homes that are located near the beach or a lake can benefit from an outdoor shower because it will prevent you from tracking in sand or dirt.

Fire Pits

Fire pits are now considered to be a staple for outdoor spaces because they allow you to stay warm while inviting your guests over. The open flames make it easy to roast s’mores and can make it possible to spend time in cooler weather conditions while stargazing.

Patio

A patio makes it possible to lounge outdoors instead of having to sit on the grass in your backyard. Patios are a valuable addition that has an ROI value of over 100 percent. You can place patio furniture on the feature and spend time dining outdoors while taking in the view of the surrounding environment. Finishing or repairing an existing patio can also have a high return of 500 percent. Add outdoor light and a few pillows to make it a comfortable space.

Pools

Although some pools don’t have an effect on the value of the home, they can increase what the property is worth if there’s enough space available around the feature to ensure that the backyard can still be used for other purposes. Install a pool with spillways, a diving board, or rock formations to create an appealing feature that will increase the visual appeal and the functionality of your backyard.

Why Your Realtor Won’t Sell Your House

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You’re ready for a change of scenery, either because of work or simply through your sheer power of will; you want to sell your house. So, you look for a realtor, and no matter how hard you try, not a single one seems interested in selling your home. This may seem odd since most people assume that all realtors are begging for houses to sell, but that is simply not the case. There are many factors and variables that can affect whether or not a realtor will even spend his or her time on your home. Here are a few reasons why a realtor wouldn’t want to work with you.

 

Asking for too much

If you’re like most Americans, you’ve probably spent years in your house; you’ve renovated the kitchen, bathroom and master bedroom, you’ve painted the outside of the house and you’ve spent a great deal of time growing a beautiful garden outback. To you, your house is almost invaluable. Unfortunately, not everyone will see it this way. There are a bevy of factors that go into what determines the actual value of a house, and if you believe that your house is worth more than what your realtor does, then the agent will more than likely not bother. If the agent does decide to take on the listing, it could spend months on the market, which hurts his or her reputation.

 

You aren’t willing to show it

The best way to really entice potential buyers is by letting them into your house. Much like any other purchase, humans typically enjoy seeing something before they buy, especially when making such a large investment. Because of this, you need to be willing to show off your house. If you’ve put the time and work into it, then don’t be afraid to put it on display. Many sellers are afraid of theft and they opt out of showings, or they are not flexible in their showing hours. This can all make a realtor very wary of your home.

 

Your house is messy

This is incredibly plain and simple: if your house is unkempt and dirty, it makes the sell much harder. And realtors know this. While they can suggest that you clean it up before they take the listing, if you are unwilling to make the appropriate adjustments, they will more than likely skip altogether.

 

At the end of the day, realtors need to make a profit from the house that they are selling. If your home presents too many challenges, and you are unwilling to be flexible and reasonable, they will likely refuse to list your house. Take some of these tips, get out there and sell your house!

Renting Vs. Owning: What’s The Difference?

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Many people are torn between the prospect of owning a home versus the carefree lifestyle of simply renting. The pros and cons of both renting and owning have been laid out below in a simple and concise manner.
Upfront Costs

When calculating the upfront cost of renting a home or an apartment, the figures are relatively affordable. Renting only requires a light contract with first and last months rent along with a security deposit in order to successfully obtain said property. Alternatively, homeownership tends to be very heavy in regards to upfront costs. When going through the process of purchasing a home, a person is usually required to pay a certain percentage of the mortgage immediately including any and all closing costs.
Fluctuating Monthly Expenses

One advantage of owning a home is that the monthly mortgage payment is set by the bank who issued the mortgage. Depending on the type of interest rate that was negotiated, the monthly mortgage payment can remain steady for many months depending on how housing costs rise and fall. Alternatively, when paying rent to a landlord, the rent can be increased at the whim of a landlord but only if they follow proper legal regulations regarding rent increases. If someone is renting without a contract, the renter is at the complete mercy of the landlord in regards to the monthly rental rate.
Repairs and Renovations

A homeowner is financially and physically responsible for all repairs to the home. The bright side to this is that they also have the freedom to redesign, redecorate, or renovate the home as much as they desire. A person who rents isn’t usually afforded the same privilege. Landlords may impose strict rules in the rental contract regarding changes to the home or apartment, preventing the renter from painting, remodeling, or redecorating. On the other hand, renters aren’t responsible for any repairs and can usually apply for replacement appliances and fixtures if covered by the rental agreement.
Relocating

When renting a home or an apartment, deciding to pick up and move to a different city or state is relatively simple. A person can sublet the remainder of their lease to a third party and skip town before their rental contract has expired. On the other hand, a homeowner doesn’t have that same luxury. A homeowner must first prepare their home to be sold and ensure it has enough equity to be marketable. This could take months or years to accomplish.
Choosing whether to become a homeowner versus remaining a renter really depends on the type of lifestyle you live and whether you prefer security or freedom.