Real Estate Made Simple

Tag: home buying

What to Expect for the Real Estate Market in 2023

The real estate market has changed drastically over the last few years. The pandemic brought a surge in demand for houses, followed by a freeze in the market as inflation and interest rates rose. That begs the question, what should we expect from the following year?

Most experts believe 2023 will bring a new semblance of normalcy. That means the market will settle down and return to more normal levels. Inflation should reduce or at least balance out, while interest rates will slow down. Let’s take a closer look at what to expect this year.

Housing Prices

Experts are quick to weigh in with their opinion on housing prices and values. Unfortunately, not all experts agree on this. For example, Realtor.com believes that housing prices will increase by another 5.4%, while Zelman believes the value will decrease by 5.1%. Ideally, these two extreme estimates will land in the middle, providing us with a stable market.

In other words, if we balance out the expert opinions on prices, it indicates little change. This means we’ll see a flat or neutral appreciation in 2023. This is good for sellers and buyers, as the market will not change drastically. 

Rate Lock-In Phenomenon

Mortgage rates hit a record low a couple of years ago, countering the current higher rates we’re seeing. This results in homeowners with a low rate (below 6% in most cases and below 4% in exceptional circumstances). That’s great for those homeowners, but they will unlikely consider selling their homes with an average mortgage above 6%. 

Homeowners are unwilling to give up their low mortgage rate in exchange for a higher interest rate. Some homeowners will sell regardless, either because of need or desire. But a large percentage will stay at their current home to wait out this shift.

Ironically, this is going to affect another market. Homeowners that wait out this shift may choose to work on home improvement projects. This will ultimately encourage a stronger contract market and increase home values – if done carefully. 

Reduction in Building

There will likely be a reduction in the number of homes built over the next year or two. Specifically, experts believe that builders will cut back on the number of new single-family homes they are constructing. Likewise, building permits will likely decline as homeowners settle in and wait for rates to change. 

What to Know Before Renting to College Students

Landlords, as a rule, rent their properties to many different subsets of people, including students. However, there are certain things that landlords and property owners must know before renting to students.

Renting to a student is a great way to quickly fill a vacancy, give a young person a chance, and potentially make a difference in the community. The downside is the higher risks associated with this sort of rental. Here is what you need to know before you get started.

The Risks

As mentioned above, there are certain risks associated with renting to students. For example, most students will only need to rent a space seasonally, so renting to them may create vacancies in the summer. Likewise, most students will not have an extended credit history, putting them at higher risk financially.

There are other risks to consider, such as their lack of experience (including a lack of experience paying bills) and potential noise concerns (consider the stereotypical student behavior, and this one is clear). 

Students may also not understand basic tenant responsibilities, such as how to file a maintenance request. This may result in a little problem growing in scale when it otherwise could have been prevented.

The Positives

Don’t worry; there are positives to help balance these additional risks. There is a generally higher demand for student housing, especially near school towns and properties. So filling vacancies shouldn’t be an issue. This has a secondary benefit as it reduces the need for expensive advertising. Word of mouth will do that for you.

Since students have little experience renting properties, they will not go into this process with inflated expectations. In other words, they’ll be happy to get an apartment and won’t demand all the latest bells and whistles. They will happily accept a simple property with no upgrades.

Finally, the possibility of multiple roommates in a property can help to mitigate any financial risk. The more people on the lease, the easier it will be for them to make their monthly payments. As this is a common social expectation for students, frequent arrangements are already in place for this sort of thing.

Lowering Risk

There are additional steps a landlord or property owner can take when renting to students. These steps will help reduce the overall risk. For example, requesting a cosigner or guarantor will minimize the risk of property damage and ensure that the rent gets paid. Likewise, periodic inspections can help spot damage or other repair needs before they become a more significant problem.

Finally, it is critical to set expectations in the lease. This means laying out any rules, regulations, or rules to follow. Doing so in writing will protect you and make it easier for the students to find information as they need it. 

Ways to Get Organic Leads as a Realtor

Every industry has unique tactics and requirements for getting things done. This is especially true for realtors, who must handle several elements of their own business. One such concern is generating organic leads as a realtor.

It can be challenging to create these leads, especially at first. It takes time and practice for them to feel more comfortable and organic. However, once you get the swing of things and establish a pipeline of leads, you’ll have no problem succeeding in the industry.

Networking

One of the most important things for any realtor to consider is networking. Networking can easily generate the most leads and should never be overlooked. Neighbors, coworkers, friends, etc., can all help generate word-of-mouth advertising. Each new professional connection you create introduces new opportunities.

In other words, to create a base for organic leads, you have to network. There’s no way around it, so get it done. If networking is intimidating for you, take some time to research tips & tricks. This will help you understand your strengths and weaknesses.

Branding

You’ve likely heard the term branding regarding a company’s image – but personal branding is something to consider. A strong personal brand can generate leads while you sleep if done right. How? Your name will be out there, traveling out (by word of mouth, advertising, and other branding techniques), even without your active participation. 

Put another way, the better your personal branding strategy, the more consistent your work can be. People will approach you with work, creating more organic opportunities to follow through.

Referrals

Never underestimate the value of a good referral. They’re like gold, showcasing your talent and reliability to potential clients. Referrals come in many forms. For example, it may be a comment from a past client on your website. Or it may be an associate forging a connection between you and a prospective client. 

Don’t forget always to show appreciation for these referrals. Especially the ones that have gone above and beyond for you. Encourage this behavior by sending them a thank you note or showing appreciation.

Social Media

Finally, don’t forget about social media. Social media is a powerful tool, with varying effectiveness depending on your goals and utilization. When using social media to generate leads, be sure you’re picking the right platform for your goals. For example, you don’t want to be on TikTok if you’re looking for leads in older generations. 

Finding your stride with social media marketing may take a minute, but once you’ve nailed it, the leads will come in. Just keep working on it and be willing to adapt your strategies.

Home Buyers Outdoor Darrow Feilderpng

Outdoor Features to Attract Homebuyers

According to a report by the Outdoor Industry Association, at least 13.6 million Americans perform outdoor activities such as camping, running and hiking. And although these leisure activities are fun, perhaps the simplest way to get outdoorsy is to chill in the backyard.

Many homebuyers appreciate the versatility of residential outdoor space. From entertainment to gathering with friends and family or just winding down after a long week, outdoor spaces have plenty of value to offer. Here are five outdoor features that attract homebuyers.

1. Good Landscaping

Most real estate agents can agree that nothing attracts potential homebuyers quite like beautiful landscaping. Furthermore, landscaping costs are relatively low, so sellers can easily recoup 100% of their investment after a home sale.

Privacy-oriented landscaping, in particular, adds plenty of value to a home. Well-manicured hedges and trees planted reasonably close to a house can provide aesthetic value while adding a sense of privacy. According to the Council of Tree and Landscape Appraisers, a single mature tree can raise a home’s value by $1000-$10,000.

2. Entertainment Area

What is a backyard without a dedicated entertainment area? Thanks in part to the pandemic-induced lockdowns, indoor entertainment may have lost much of its appeal. Some of the entertainment features prospective homebuyers look for in an outdoor space include outdoor kitchens, grills, permanent seating and spacious decks.

3. Spacious Yard

Outdoor playtime is not only essential for children but also family bonding. Homebuyers are increasingly expressing interest in homes with yards big enough to accommodate play structures such as slides and swings, basketball courts, sandboxes, miniature soccer fields and more. Homeowners appreciate the peace of mind that comes from knowing their children can play all they want within the confines of their backyard.

4. Fire Pit

Outdoor fireplaces or fire pits are grand for reminiscing, keeping warm during chilly evenings and roasting marshmallows or hot dogs. Families that love camping will definitely appreciate the outdoor heating idea.

5. Outdoor Lighting

Outdoor lighting treads the thin line between a functional, must-have feature and a decorative element. Combining smart, solar-powered lights with motion sensors can make an outdoor space more inviting, all while acting as a security feature.

Final Thoughts

Homebuyers view the modern yard as an extension of the main home. The right yard additions can transform a home’s outdoor area into more than a living space and increase the offers made for the home significantly.

What Real Estate Appraisers Might Not Disclose To You - W Darrow Fiedler

What Real Estate Appraisers Might Not Disclose to You

The real estate appraisers help people in determining the value of their real estate properties. They assist buyers with the valuation information so that they don’t get overcharged by property owners. Similarly, the sellers, too, are protected against possible underpayments by willing buyers.
Real estate appraisers are also useful when a property owner intends to obtain a loan using their property as collateral. Without their input, the homeowners may secure smaller loan amounts than expected or fail to meet the minimum financial assistance requirements. Below are some things that the real estate appraisers may not want one to know.

They Don’t Know Much about an Area

Before the real estate property boom, appraisal officers used to work within specific counties or states. However, this has never been the case in recent years. Most Appraisal Management Companies (AMCs) have increased the tendency of sending their officers to different counties and states. Therefore, it’s likely that a real estate appraiser works in areas they know very little about.

They Hate Being Followed Around

Some homeowners or buyers usually find themselves trying to keep in touch with their appraisers most of the time. While they may think it’s the right thing to do, it’s their real estate agents and inspectors they should be spending more time with. Therefore, it’s appropriate to give the appraisers some space once they’ve received the valuation report.

They Do Most of the Evaluation Off-the-Site

Property valuation assessment should take up to about 8 hours. Surprisingly, most appraisal officers would take as little as a half of the total set assessment time. It happens so because of the increased use of technology in the process. For instance, some AMC agents could use video clips of the home from drones and computer-stored data about the property to compile the final appraisal report.

Last Minute Renovations Don’t Always Add the Value of the Property

Many people believe that making some little changes in the kitchen or the bathroom would increase their property’s selling price. But unfortunately, this isn’t true, and the appraisers know – only that they’ll never talk about it.

Consulting the real estate agents or inspectors in advance is by far the best way of ensuring a successful sale of a property. By doing so, the homeowner would get to know more than what an appraiser is always willing to share.

Powered by WordPress & Theme by Anders Norén