How to Sell Your Home in a Hot Market

Sure you’ll have a bigger chance of selling your house at a desired price range during the seller’s market compared to when the market is cold. However as customers’ tastes, preferences, as well as access to information evolve over time, it’s often not that simple. A lot of people selling their houses find it difficult to sell their house at the price range they have set regardless of the fact that it’s currently a hot market in their area.

Selling house in a hot market

Appropriate pricing

Be informed. Do as much research as possible and understand how the market is faring. You don’t have to do this alone if you can afford it; hiring an agent and a consultant is a wise thing to do as they not just provide you with data, but also give you insights from years of experience and training in the real estate field. Make sure to consult with the agents that you trust; someone whose opinion you’d be willing to listen to. Be willing to listen to them. Realize that you share a common goal: to successfully sell your house. Often time, what happened is that homesellers would not listen to their agents and go off on their on doing what they think is right, then ended up with a big DOM despite selling in a hot market. If your relationship with your agent does not work, then don’t hesitate to hire a different one. As with anything else, communication is key here, and you will be collaborating with your agent.

Be adaptable

If you already have a pretty accurate idea of the price range of your house as well as those recently sold in your area, then you have a good head start. Being realistic about your price expectations is extremely important to save you from disappointment. Be flexible with the price. If you’ve set the price at the highest range and you apparently are not getting any offers, then it’s clear that it’s time to adjust your price. Consult this with an agent you trust, if you have little idea where to start. Lower prices can result to more offers, and it could lead to more competitions among the potential buyers. It gives way to a bidding potential; it might even get you higher than the asking price.

Consider staging your house

Cleaning and decluttering might cut it, but staging your house professionally would put it in a different league from your competitors. Study has also shown that staged homes could sell 30% more than the asking price on average (depending on several factors). Staging a home would greatly help your potential homebuyers to visualize how they would live there. It’s far more intimate and imaginative compared to listings shown to be bare.

Be prepared to move out quicker than you’d anticipated

If you haven’t moved out already, then this is something that you should expect. This is especially true if you’ve successfully sold your house with the price that you desire or even higher—sometimes buyers are willing to pay higher for inventory if they could have the house ready on a set of time they’d determined.

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Novel and Practical: Co-Living Spaces Rise in Popularity

Co-living might sound like a new thing; as it’s gaining popularity across the globe. It is indeed a “very millennial” thing that’s becoming a prevalent option for more and more people. However the concept of shared living spaces or communal living has been around since forever. In fact, the concept of individual family houses is relatively new, especially when human history is taken into consideration.

Co-Living Spaces

There is a confusion among the terms that concern the style of living in shared spaces. A lot of people often interpret co-living as “commune” or “hacker’s house”, or even “co-housing”. However co-living, especially by people who opt the lifestyle, is considered as distinct compared to other types of shared living. It’s been described that co-living puts emphasis on design, convenience, as well as service. Co-living has been described as more of a lifestyle instead of simply a shared living space.

Co-living emerges as the solution to more affordable housing in big cities, and is especially in demand in metropolitan areas. While the price of the house does not rise significantly in the past years, rent certainly does particularly in cities. A common financial problem faced by millennials and younger generations after them is student debt. A lot of millennials are looking for a more affordable housing; some even opt to live with their parents until they pay off student debts. For those who cannot afford to live back with their folks, co-living has been a brilliant solution so far. With the average apartment price amounts to $2,800 to $3,000 for a studio to one bedroom apartment in cities like New York, and rising still, co-living space definitely shines in terms of cost.

A number of common spaces exist in co-living buildings that encourage social activities. Some co-living spaces, aside from a common dining room, have a common, larger kitchen where tenants can cook together and more comfortably, as well as socially interact. Cooking events or cooking classes can also be held in these fashionable spaces. A lot of co-living companies also offer cinemas, working spaces, laundry, library, and even spa services, all in one building. It makes everything highly convenient—and that’s what set co-living style apart from other shared living styles.

The average price offered by co-living space is $200 to $300 per week for studio apartment and en suite. The price also depends on the length of your stay. The fee already covers utility bills, wi-fi service, taxes, security, as well as cleaning services. An obvious advantage of co-living spaces is that contract is largely flexible. This does not require one to put in the commitment, and is highly beneficial for people who are highly mobile and often move from one place to another. This is why co-living spaces are also extremely popular with travelers, working class who label themselves “digital nomads”, as well as people newly migrated to a city. The social setting of the co-living space is highly conducive of social interactions on a day to day basis, making it easier to form friendships compared to living in the traditional apartments.

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How to Sell Your House in a Cold Real Estate Market

Sell house in a cold real estate market

During a buyer’s market or what is often referred to as the “cold market”, selling your house may not be as pleasant and may not yield as much as you’d expected from your investment. If you can’t avoid selling your house in a cold market, timing shouldn’t be much of an issue as long as you’re resilient, aware, and understanding of what you’d expect. There would also be time when the state of the cold market benefits you as you buy your next property.

Be aware of how your house is being marketed

This is the first step to identifying your issues and how you can perform better. Do you hire an agent? If yes, then make sure to ask the nitty gritty details on how they are marketing your house, how an agent negotiate is also key. Often, what an agent does is nothing more than putting up your homes in the MLS (Multiple Listing Services) and in a hot market or neutral, that is often enough. But selling your house in a cold market require extra effort.

What a good agent will do is help you set a good price, according to the state of the market. Professionals are able to offer insights on the state of the market, what may cause it, and how houses can do well in the current state of the market. They may also be able to provide you with history to provide you further insights of home selling during similar market state. You need to listen to your agent; don’t hesitate to ask whenever there is something that you don’t understand.

Your agent will gladly explain it to you. Once you’ve reached an understanding, make sure to heed what your agent had suggested. Remember that if you don’t get along or if you doubt your agent, it could prove to be disastrous with the sales of your house. Consider hiring a different agent if you don’t think you can work it out with your current one. But if you can, just proceed, as you don’t need to start all over again if you can work it out with your current agent.

Get references on similar houses

Your very own independent research may prove to be insightful and provide you with the current state. Scour houses in our area as well as houses similar to yours and compare how they fare in the period of 3-6 months to a few years back. Being able to extract this information can be a fulfilling endeavor and it would give you more heads-up, especially if you don’t hire an agent.

It’s good to re-evaluate

Often times, homes simply do not sell because they lack aesthetic quality, or that you fail to show their aesthetic qualities. Often times, pictures at the MLS of your house simply does not show your house in a good light. Make sure to take photos of your house properly in order to show it in its best light.

Take a good look at your curb appeal; often times, you need to spruce up your home a bit to make it look presentable. Take a close look at your indoor appeal as well. If needed, you may even try “staging” your homes. The extra effort during the cold market would usually pay off, even at your asking price. A lot of people are simply drawn to houses that just appear beautiful and move-in ready.

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All You Need to Know about Buying Vacant Land

As an investor in property business, you must know that there are many types of opportunity you can take to earn the most profit. We,, buying vacant land can be one of them. However, it is important that you find out more about vacant land and how to buy it because it is different than when you buy a real estate. This is can be a promising investment if you can plan thoroughly about what you are going to do to make it true. First, you need to know what vacant land is. Well, it is basically a land which doesn’t have a structure or it may be built in the past but has torn down by the time. There are different procedures to buy vacant land which is why you need to learn more about it instead of rushing in.

All about vacant land investment

For some investors, buying vacant land can be overwhelming. Well it is true but it is not impossible to accomplish. You need to do your due diligence properly and thoroughly following the right process and procedures. Then, you will be the landowner of the land you bought. In buying vacant land, at least you need to follow these basic steps:

  • Find the right reason why you think you should buy the land. What is your purpose in buying it for the future? What will you do to the vacant land after buying it? Are you going to build a property like single-family home or apartment complex? Those questions are important to answer before you decide to buy the land.
  • Make sure that you have set your financial management. The price might be cheaper than real estate but payment procedure can be a little higher than when you pay for house down payment.
  • Find the best vacant land with the best price to make sure that your investment is going to be worth it. You need to bargain to the seller to close the best deal. It will be beneficial for your finance if you can reduce the price.
  • The next process is to go through all the process needed in order to complete your purchasing. Make sure not to skip any process such as surveying, mapping, zoning, environmental testing, etc. Those are important steps you can’t miss.

Is vacant land investment promising?

Well, there is always pro and con in everything including investment. In the matter of vacant land investment, it is safe to say that it is promising because there are benefits you can take such as:

  • You have total freedom to do whatever you want once you buy the land. You can build property for next investment or make it a wholesale deal.
  • Vacant land doesn’t necessarily need high maintenance. Thus, it can save you from hassle.
  • The price of vacant land is lower than real estate. It includes the tax and fee. Thus, you can save your finance from excessive expense for your investment.
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Property Business Negotiation and Its Relation with Psychology

In property business, negotiation is one of the most challenging things to do. Some property business goers are reluctant to do this step because they think they may have not the ability to negotiate effectively with efficient talking. However, this is certainly not a thing to avoid when it comes to property business.

Property Business Negotiation and Its Relation with Psychology

It is in fact one of the most important keys to succeed in this business. Great negotiation leads to successful deals. Besides, closing the deals is what to expect to gain profit and build the business even stronger.

Thus, instead of avoiding the challenge of negotiation, it is better to learn and understand more about the art of negotiation using psychology. Becoming a better negotiator needs times and practice. However, it is worth once you have become great negotiator for this business.

One of the keys to be the most successful negotiator is to learn the psyche as well as the rationale behind all business negotiation. It sounds easy yet not so much.

In fact, it is a little bit complicated if you look into the theoretical side. However, you need to be more into practical side instead.

How to use psychology to become a better negotiator in property business

In real estate negotiation, it is important to understand that it is the interactions involving two or more people in different points of view.

There is clear diversity in the matter of perspective and expectation. Those are needed to be learned and avoided. By practicing more and more in negotiating, you will be able to learn more about how to understand the other’s need and want to close the deals.

One thing to remember is to create win-win scenarios for both parties. Besides, practicing to negotiate more enables you to know ad master various strategies to use for effective negotiation.

However, it is also important that you are being gullible or weak in negotiating. To compromise doesn’t mean you should let the other have their ways to win over you. You need to remind them that you as well have expectation for gaining the same deal with equal benefits.

Aside from being a good negotiator, you need to be a power negotiator as well. That is how you can show that you have strength in the deal and your role is important.

You need to be prepared to walk away from the deal if you don’t get what you want. This way they will not see you as a bluffer.

As mentioned earlier that you need to be thoroughly prepared before negotiation.

To do it, you need to check out the other investment properties beforehand. Thus, you can make back up plan if something doesn’t go on your way.

By thoroughly prepared, you will also know the pressure point of the others that will help you gain the benefits. Well, basically using psychology in property business negotiation can be helpful.

As stated before that practice is important to help you get used to know the psyche of the others and close the best deals.

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Finding the Most Ideal Partner to Run Property Business

Just like how you try to find your soulmate, finding a perfect partner in property business is challenging. It is not an easy feat since humans are far from perfect in reality. However, it is not only about finding the most perfect human being.

Ideal partner for property business

What you need to find is the most ideal partner to run property business together successfully.

Partnership in property business is not something new. Lots of businesses choose to get them partner so they can share their burden and work together to achieve their goal.

Some people remains to work solo while trying their best to build their business empire in property industry. If you consider partnership, you might as well know how to find ideal partner for your own.

Identify ideal partners for successful business

People have different characteristics which make them unique in their own way. Differences don’t always mean bad. Compatibility is what you are looking for when trying to find the best partner.

Below are some tips for you to find the most ideal partner for long term partnership in property business:

1. Don’t be in a rush just because you find your first and second impressions are positive.

Even if you think you are suited for each other, you must know better that in relationship there is always honeymoon phase.

It is almost always easy to find someone so perfect in the beginning. However, don’t fool yourself because basically everyone likes to do their best especially in the beginning. Instead of rushing your partnership, it is better to give some times to get to know each other.

You can have coffee together and find out more about your potential partner such as their personality, their tendencies, as well as motivation to achieve success.

2. As mentioned earlier that differences are not always bad.

Even if you and your potential partner share the same traits, assets or strength, it doesn’t guarantee that your partnership will work out in the future.

Surely it will make everything feel comfortable. However, it also means that you both share the same weakness and no one can cover it. Therefore, it is better to find partner who has opposite qualities in a good way.

For example, if you are bad at administrative stuff, you need a partner who is good at it. Thus, you can complete each other in running property business.

3. Make sure that you and your partner define your expectations clearly from the beginning even before you decide to create partnership.

Defining your expectation is not only verbally but also in clear writing.

You need to figure out how the structure of the business is, decide the best plan to achieve the goal of business, what contribution each of you will give, figure out the value of your partnership clearly, and the last but not least is create exit strategies.

Next important point creating partnership is to find someone who has high motivation to achieve goals. This is a quality that is not less important than connection, knowledge, or skills.

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Undesirable Locations to Live In That Affect Real Estate Investment

 

Undesirable Locations to Live In That Affect Real Estate Investment

 

While people rave on about good locations, the desirable quality of what consists as a “good location” is something highly subjective and lies on several different set of factors. However, is there such a thing as “bad” or “undesirable” locations, when everyone needs a place to live?

 

There are several basic notions of what is perceived as undesirable locations. These traits are something basic that everyone looking to buy a house should be on the lookout for. Whether you’re a homebuyer looking to buy your first home, or a real estate investors looking to re-evaluate some important factors, heed these red flags.

 

High crime

An obvious reason that a location is undesirable. High crime rate is something that everyone looking into buying homes need to be aware of. Safety is a primary need and a precondition for people to be able to live, not just survive. And places that provide a sense of safety are usually in high demand.

 

Sometimes this is not very apparent. A lot of people say they just “heard” about the neighborhood or the region. But without evidence to prove this, you might be missing out on good, reasonably priced properties. Make sure to check police record, talk to the neighbors, and get the feel of the surrounding area. Are people out in the streets? Kids playing in the park, people walking their dogs? These are indications that an area feel safe enough for people to go out on the streets without fear. However, make sure to return when the sun’s out as well, as a lot of crimes happen during the night, by coming during the evening, you can gauge the feel of the neighborhood during these dark hours.

 

Noise pollution

This aspect does not simply affect comfort, but people’s mental and physical health as well. Homes near railroad tracks are often avoided, or buyers are quick to sell them. Near the airport or just under the airplane flying routes and places near concert venues, although are commonly good economic centers, are less than ideal. The exposure to such noise makes some places unlivable.

 

Environmental noise has been linked to health problems. Continued exposure to 85 dBA noise causes hearing problems or even hearing loss. According to Center for Hearing and Communication, examples of 85 dBA are heavy traffic, noisy restaurant, handsaw, some vacuum cleaners, etc. Make sure to factor in this element whenever you’re thinking of buying, or simply living, in the place.

 

Industrial area

When it comes to real estates located within or near the industrial area, the houses of the average people would likely be negatively impacted. It would be extremely bothersome for homeowner’s everyday lives.

 

Industrial waste, irresponsible company, noise pollutions, industrial smoke, are all among the major factors that make the location undesirable. Aside from the disturbances these locations often inflicted on the inhabitants, health risks are abundant. Not to mention the fact that there is little homeowners can do about the issue.

 

Lack of accessibility

Living in a place that is simply not convenient would really tamper in everyday lives. Homebuyers look for things such as markets, repair shops, establishments that make day to day life easier. The existence of things such as a local supermarket or a minimart within walking distance make a difference, or even small restaurants or cafe to go to when you don’t have time to cook. Unless the house is a one-of-a-kind, or some extremely quirky establishment that exist not for its practicality, then convenience is a major thing to consider.

 

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Real Estate at a Glance: Should You Invest in REITs?

The question on whether one should invest on REITs or not is highly subjective. The decision mainly depends on each individual’s aims in the investment, and to a large extent, how much effort they’d like to put into the investment.

Invest in REITs

Some people don’t consider REITs as a “real estate investment” in a practical, business mindset. For a lot of them, they find directly purchasing and directly getting involved in the properties and the issues it’s involved is what real estate business is all about.

Then again, for people who want to test the waters or for those who’s just getting started on investing, REITs are appealing and could be a viable start to investing.

Why are REITs attractive?

REITs are required to pay at the very least 90% of the taxable income to their shareholders in the form of dividends. The high dividend payouts attract a massive public interest, especially when compared to the stock market.

REITs may also save you time and energy compared to directly buying properties, and the existence of REITs cuts the barrier low when it comes to starting out in real estate investment.

How much does REITs pay?

In general, REITs pay approximately 7% – 15% back to the investors. Compared to the stock market, the percentage share is considerably higher.

Some REITs pay on a quarterly basis, some pay their shareholders monthly. People may see the return of their investment pretty quickly.

However, just as giving your money to a company and generally letting them do all the work, investing in REITs is generally much less profitable compared to owning your own properties and managing them yourself.

Make sure to be informed about the fees associated with everything regarding your investment.

Fees, institutionalized.
Generally less profitable.

Inform yourself of the company’s history in payouts

Find out their compensation structure, what type of REITs they’re investing in, as well as their track record or the history of the payout itself.

Whether it’s residential, retail, office REITs, healthcare, or other types of REITs, do your homework and research. Find out about their management as well, as the managing team is everything in the success of REITs investment.

You can start low

REITs is created to be as accessible as possible to the average Americans when it was established by Congress in 1960. People who’d like to try investing in real estate may start in REITs to test the waters.

Some companies have a very accessible minimum limit of $2,000 to $4,000. Compared to outright buying your very own property, REITs allow you to start investing in real estates with what funds you have.

Your investment would also be in a form of liquid, and it’s generally easier to sell a share as opposed to selling a property in case you change your mind.

Less effort on your part

Investing in REITs meant you trust a company to do the work for you as opposed to doing the purchasing of properties, the management, the marketing, and everything else to the REITs.

It takes out a lot of responsibilities and work you’d have to undergo such as property maintenance, property improvements, management, and the likes.

Investing in REITs may not be for people who are serious about wanting to do real estate business. Those looking to do full-time doing real estate may not learn much from investing in REITs. However, for those who’d like to test the waters in the real estate industry or those who’d like to start small, REITs may be a pretty viable option for you.

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Getting to Know DOM in Real Estate

DOM stands for Days on Market—indicative of the term, DOM represents the number of days a property has been listed. DOM usually provides you information on how long it takes to sell a home from listing to pending status in the current market temperature. Real estate agents obtain “average days on market” by totaling all of the days on the list of each property and dividing the total by the number of listings.

Buyers would usually want to see the history of the property, and are often inquisitive about the DOM of the listings they’re considering. Homebuyers often wonder the reason why a property stays in a listing for longer compared to its competitions. People hold onto their properties for a range of different reasons. However it is important to know aspects of DOM to make an informed decision on a property.

DOM is used as a thermometer of the market

Across several listings in one or multiple areas, the length of time it takes for someone to sell a house is often an indication of how the real estate market is fairing. Days on Market can be a big indication of whether the current time is a buyer’s market, a seller’s market, or even a neutral market. Knowing your DOM would prove to be a good resource for both homebuyers and sellers alike.

Homebuyers do pay attention to DOM

Homebuyers tend to wonder why a certain listing has been active for a long period of time. This would especially become apparent when compared to the competitors around the area. Potential buyers tend to wonder if there is anything faulty with the property or if there is other underlying issues that might influence the length of time it takes for a property to sell.

Multiple Listing Service (MLS)

MLS contain a large number of data of property’s features as well as other relevant information in real estate sales. This is one of the listings people go to in order to obtain data on properties’ DOM. An individual generally is not able to put their listing directly to the MLS, as the membership is often restricted to real estate brokers and agents who are licensed or are members of associations. MLS are highly controlled by the real estate industry. Resourceful real estate agents would be able to research the accurate length of how long a property has been on active listings. It is a bit difficult for the general public to obtain information, but not improbable with the right, resourceful aid.

Overpricing

A property is overpriced for a range of reasons. Often time, the price of a property is not adjusted to the “temperature” of the market. This is a very common mistake sellers make. A lot of sellers do not take their time in learning the current state of the market. Selling a house for a high asking price in a cold market may lead to “period of silence” until the listing price is lowered. Sometimes, sellers have not assessed the value of their property well, often leading to a much higher asking price compared to what a real estate agent or an appraiser would value their property for.

Re-listing

Some people do the practice of re-listing in order to start the days of their listings. This is done because homebuyers tend to gravitate towards new listings. This could be very misleading for potential homebuyers. Sometimes re-listing  needs to be done because a the property’s listing has expired. It is possible to gain an accurate information on a listing’s DOM if consult a neighborhood specialist, especially if this is a concern for you.

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The Best Visa If Own Bali Property

The number of foreigners who own property in Bali is no longer a secret. Even so, they do not get a special visa. Many foreigners think that having a Bali property benefits them because they have the right to get a visa.

bali property

If you have a property in Bali and only have a short stay, a tourist visa will be enough. Tourist visas usually get a visit permit for 1 month. Peeping on your property condition in 1 month is enough. A lot can be done to check the condition of your property.

Social, Pensionary, or Working Visa?

Property maintenance must be done regularly. It will be difficult if a foreigner has a Bali property and has only been visited in a short time. If you own a property and will stay longer in Bali, every foreigner can use a Social visa. You will get the first 2 months, and then can be renewed every month for a period of 6 months.

To get a social visa, every foreigner must have an Indonesian sponsor. The beauty of this exotic island makes many foreign tourists have an interest in buying Bali property.

Most foreigners not only invest to buy a property. Business in Bali has its own charm. Given that Bali is a popular tourist destination and is the world’s favorite, tourist visits are increasing every year. A sponsored visa is not issued in Bali but can only be issued outside Indonesia. If you want to stay more than 6 months in Bali, then you must fly after 6 months to the nearest neighbor and return to get a new social visa.

Having a Bali property and getting a social visa does not mean you can work freely. There are many processes that you must follow according to Indonesian government regulations to be able to work as foreign workers. Sometimes deflecting the rules will be very easy to do, but don’t try them if you own property in Bali.

To be able to work in Bali, you must arrange a work visa or called KITAS. It must be considered that having quality makes foreigners get a lot of benefits. KITAS holders can have a driving license, place your name in a private motor vehicle and others.

Benefits if you are a foreign pensioner, you can get a period of stay for 1 year when the visa is issued. Renewal of a retirement visa can be done every year for a total period of 5 years. The point is you must carefully choose the type of visa to Bali. Don’t bend the rules easily if you still want to live in Bali. Bali property can be one of the reasons you continue to live and work in Bali.

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