For many people, the idea of downsizing their home can be daunting. After all, our homes are often seen as a reflection of our success, status, and wealth. However, the truth is that downsizing can have a number of surprising benefits that make it well worth considering. If you’re feeling overwhelmed by the size of your current home or simply want to make a change, take some time to consider whether downsizing might be the right choice for you.
Perhaps the most obvious benefit of downsizing your home is the potential financial savings. A smaller home will typically cost less to purchase, maintain, and run. This means that you’ll have more money left over each month to put towards other things, whether that’s paying off debt, saving for retirement, or simply enjoying life. Another place you’ll save money is on your property taxes. Because square footage is a factor in assessing a home’s value for tax purposes, property taxes are generally lower for smaller homes.
When you have a smaller home, you simply won’t have as much space to accumulate unnecessary clutter. This can be incredibly freeing, as it allows you to focus on the things that truly matter to you. You’ll also be forced to be more intentional about the items you bring into your home, which can help you to cultivate a greater sense of mindfulness and clarity.
Maintaining a large home can be incredibly time-consuming, with all of the cleaning, organizing, and upkeep that goes into it. By downsizing, you’ll be able to free up more time to spend on the things that truly matter to you, whether that’s spending time with family and friends, pursuing hobbies and interests, or simply relaxing and enjoying some downtime.
Large homes require more resources to build, heat, and cool, which can have a significant impact on the environment. By downsizing your home, you’ll be doing your part to reduce your carbon footprint and live a more sustainable lifestyle.
As we age, our homes can become more difficult to maintain and navigate. By downsizing to a smaller home or apartment, you can make it easier to get around and maintain your independence for longer. This can be especially important if you’re looking to age in the comfort of your own home and avoid moving to a retirement community or assisted living facility.
Living in a smaller home or apartment can also help you to feel more connected to your community. You’ll be closer to your neighbors and more likely to run into people when you’re out and about. This can be especially beneficial if you’re looking to make new friends or simply feel more connected to the world around you.
In a world of ever-changing investment opportunities, real estate investment continues to stand out as a reliable and lucrative option. With its stability, potential for long-term growth, and diversification benefits, real estate has retained its position as a solid strategy in today’s dynamic market. In this article, we will explore the reasons why investing in real estate remains a wise decision, even amidst evolving economic landscapes.
Unlike intangible investments like stocks or cryptocurrencies, real estate provides investors with a tangible asset that holds intrinsic value. The physical nature of real estate assets fosters a sense of security and stability. Property values tend to be less volatile compared to other investment classes, making real estate a reassuring choice for risk-averse individuals. Moreover, real estate often appreciates over time, allowing investors to accumulate equity and generate substantial wealth.
Investing in rental properties can yield a consistent cash flow stream. By purchasing properties and leasing them to tenants, real estate investors can benefit from regular rental income. This income not only covers mortgage payments and maintenance costs but also provides a potential source of passive income. The reliable cash flow generated by real estate investments offers financial security and stability, making it an attractive option for long-term investors.
Throughout history, real estate has demonstrated a tendency to appreciate in value over the long term. Although short-term fluctuations are possible, real estate markets have consistently shown resilience and the ability to rebound from downturns. Investors who adopt a patient buy-and-hold strategy can enjoy significant returns as property values increase steadily. Furthermore, strategic location choices and property improvements can amplify the potential for appreciation, resulting in even greater returns on investment.
Real estate offers a unique opportunity to diversify an investment portfolio. By allocating a portion of funds to property, investors reduce exposure to the volatility of other asset classes, such as stocks or bonds. This diversification provides a hedge against economic uncertainties and market fluctuations, allowing for a more balanced and resilient portfolio. Real estate’s low correlation to other investments helps smoothen returns and mitigates risk, making it an excellent addition to an investment strategy.
Real estate investment comes with a range of tax benefits that can enhance overall returns. Rental income is often taxed at a lower rate compared to ordinary income, and investors can deduct various expenses, including property taxes, mortgage interest, and maintenance costs. Additionally, real estate investors may benefit from depreciation deductions, which offset taxable income and potentially reduce tax liability. These tax advantages contribute to the profitability and appeal of real estate as an investment option.
Real estate has historically served as a reliable hedge against inflation. As prices rise, so do property values and rental income. Unlike paper assets like bonds or cash, real estate possesses the unique ability to maintain its value and potentially outpace inflation. This characteristic makes real estate an appealing choice for long-term investors seeking to protect their wealth from eroding purchasing power.
Summer is one of the busiest seasons in the real estate market. With the warm weather, longer days and the school year ending, many people are eager to buy a new home or move into a bigger one. If you are looking to sell your home this summer, there are several things you should do to ensure a successful sale. Here are 5 things to do when selling your home this summer.
The first and most important thing to do when selling your home is to make it attractive to buyers. This involves cleaning, decluttering, and staging your home to showcase its best features. Start by getting rid of any unnecessary items and organizing your belongings. Make sure your home is clean and tidy, and consider hiring a professional cleaner to deep clean your carpets, floors, and walls.
Staging your home is also important. This involves arranging furniture in a way that makes your home feel spacious and inviting. Consider adding fresh flowers or plants, adding some art or decor to the walls, and making sure all of your rooms are well-lit and welcoming.
Pricing your home correctly is crucial when selling in a competitive market. Research the current market conditions in your area, and compare your home to similar homes that have recently sold. Consider working with a real estate agent who can help you set the right price for your home.
In today’s digital age, buyers are more likely to find your home online than in person. That’s why it’s important to use high-quality photos and videos to showcase your home’s best features. Hire a professional photographer or videographer to take photos and videos of your home, and make sure they are well-lit and show your home in the best possible light.
Summer is a busy time for buyers, so it’s important to be flexible with showings. Make sure your home is available to be shown on short notice, and consider hosting open houses on weekends or in the evenings to accommodate busy schedules.
Finally, working with an experienced real estate agent can help you navigate the selling process and ensure a successful sale. A good agent will have a deep understanding of the local market, know how to price your home correctly, and have a network of potential buyers to market your home to. They can also handle negotiations and paperwork on your behalf, making the selling process smoother and less stressful.
If you’re considering making some upgrades to your home, adding a pool might be one of the best investments you can make. Not only does it provide a great space to relax and cool off during hot summer months, but it can also significantly increase your home’s value. Here’s how building a pool can increase your home value.
One of the main reasons that adding a pool can increase your home’s value is that it’s an attractive feature that many homebuyers desire. Pools are great for hosting pool parties and barbecues, and they offer a fun way to stay cool and active during the summer. In fact, according to a survey by the National Association of Realtors, a pool was the third-most-desired outdoor feature among homebuyers.
A well-designed pool can greatly improve the aesthetics of your home’s outdoor space. By integrating the pool with your landscaping and adding features like waterfalls, lighting, and seating areas, you can create an inviting and beautiful oasis that enhances your property’s value.
Another reason why building a pool can increase your home’s value is that it effectively increases your home’s usable space. With a pool, you now have a dedicated outdoor area for relaxation, exercise, and entertainment that you can enjoy for many months out of the year. This can be particularly attractive to families with children who want a safe and fun place to play.
While building a pool can be a significant investment, it can also provide a higher return on investment than other home upgrades. According to a study by the National Association of Realtors, a pool can add between 8% and 15% to a home’s value, depending on factors like location, pool size, and pool design. By comparison, other home upgrades like a kitchen renovation or bathroom remodel typically provide a return of between 60% and 80% of the cost.
Finally, building a pool can help attract affluent buyers who are looking for a luxury home. High-end homes often have elaborate pools with features like infinity edges, hot tubs, and swim-up bars, and these features can greatly increase the home’s value. By building a pool, you may be able to attract buyers who are willing to pay a premium for a home with a high-end pool.
Building a pool can be a great way to increase your home’s value. Not only does it provide an attractive and functional outdoor space, but it can also provide a higher return on investment than many other home upgrades. So if you’re looking to make some improvements to your home, consider adding a pool – it could be the best investment you ever make.
Purchasing a home is one of the most significant investments that most people will make in their lifetime. It is a decision that requires careful consideration, especially when it comes to choosing between a new build and an existing property. While there are benefits to both options, there are several compelling reasons why you should consider buying a new build. In this blog, we will explore some of the advantages of buying a new build and why it may be the right choice for you.
One of the most significant advantages of buying a new build is the ability to customize the home to your exact specifications. When you purchase an existing property, you may have to compromise on certain features or spend additional time and money on renovations. With a new build, you have the opportunity to work with the developer to create a home that suits your needs and style. You can choose everything from the layout of the rooms to the color of the walls, ensuring that your new home is tailored to your preferences.
New builds are designed to be more energy-efficient than older homes. They are constructed with modern building materials and techniques that make them more environmentally friendly and cost-effective in the long run. For instance, they may have better insulation, double-glazed windows, and energy-efficient heating and cooling systems. These features can help you save money on utility bills and reduce your carbon footprint.
When you buy a new build, you can expect to have fewer maintenance issues compared to an older property. This is because everything is brand new and built to the latest standards, so you can have peace of mind that your home is in good condition. Furthermore, most new builds come with warranties that cover defects and structural issues for a specified period, which can give you added protection and save you money on repairs.
New builds come with modern amenities that are designed to make your life easier and more enjoyable. For instance, they may have smart home technology that allows you to control various aspects of your home from your smartphone. They may also have built-in appliances, such as dishwashers and washing machines, which can save you time and effort. Additionally, new builds are often located in areas with easy access to public transportation, shops, and restaurants, making them an excellent choice for those who want a convenient lifestyle.
Finally, buying a new build can be a smart investment in the long run. They tend to hold their value better than older properties, which can make them easier to sell in the future. Furthermore, as the property market continues to grow, the value of your new build may increase significantly, giving you a substantial return on your investment.
In conclusion, buying a new build offers several advantages that make it an attractive option for those looking to purchase a new home. From customization to energy efficiency, modern amenities, low maintenance, and better resale value, there are many reasons why you should consider buying a new build. Of course, it is essential to do your research and work with a reputable developer to ensure that you get a high-quality home that meets your needs and expectations. With the right approach, buying a new build can be a smart investment that provides you with many years of comfort, convenience, and enjoyment.
Activity in the housing market has decelerated a bit from the fast-paced environment we saw over a year ago.That being said, it helps to know where the market stands when buying or selling a property. Currently the inventory of available homes for sale is very low, making it still a seller’s market. Since there are fewer homes available, sellers are at an advantage.
A seller’s market occurs when demand exceeds supply. In other words, there are many interested buyers, but the real estate inventory is low. The latest Existing Home Sales Report from the National Association of Realtors (NAR) shows housing supply is still unusually low. Today, we have a 2.6-month supply of homes at the current sales pace. A “normal” or “neutral” market is one in which a 6-month supply is available for active buyers.
In a seller’s market, homes sell faster, and buyers must compete with each other in order to score a property. These market conditions often make buyers willing to spend more on a home than they would otherwise. Therefore, sellers can raise their asking prices. The increased interest means that buyers rarely have the power to negotiate and are more willing to accept properties “as-is”. This could also lead to bidding wars where buyers make competing offers and drive up the price usually above the original asking price.
Whenever there’s a limited supply of houses on the market and an ample amount of interested buyers, time is of the essence. Don’t drag your feet on a house you know you want to buy, you may find that it’s no longer available by the time you wish to make an offer. Another way to speed things up is to get preapproved for a loan ahead of time, so your financing is in order when you need it.
Acting fast sometimes means buyers will end up making offers on homes they otherwise wouldn’t be interested in because they’re tired of losing out. Remember, buying any property is a huge investment and often a 30-year commitment to a mortgage payment. Don’t settle on a home just because it’s the only one available. Unless you have to move immediately, it may be a better idea to wait it out and resume your home search after the market cools down.
Buyer’s in a seller’s market are at a disadvantage. A seller’s market is not the time to try to push contingencies, concessions, specific closing dates or repairs. If there are certain stipulations you want written into the contract, think hard about whether they’re worth losing the property over. If you can make an all-cash offer, you should. Sellers prefer buyers who are willing to buy the house with cash because they don’t have to worry about the deal falling through due to issues with financing.
Since sellers must compete with each other to attract buyers in a seller’s market, listing a home that is in good condition and that has been thoroughly cleaned and organized will increase interest in your property. Knowing that homes tend to sell for more money in a seller’s market, it still helps to list your home for a fair price. If you set your asking price at or slightly below fair market value, you’re likely to attract more interested buyers. Some sellers choose to list their homes for slightly less than the assessed value in order to encourage a bidding war.
For any buyers who require financing, you should ensure that they have been pre-approved for a loan. Knowing that a buyers’ finances and credit history have been verified makes it far more likely they’ll be able to obtain a loan for a specific amount of money. Offers that include restrictions, like mortgage contingencies, home sale contingencies, appraisal contingencies and inspection contingencies, enable buyers to back out of sales contracts if certain conditions aren’t met.
Sellers are often so focused on choosing the highest offer that they forget to examine the financial strength of each buyer. You never want to accept an unrealistic offer and be forced to put your home back on the market when the deal eventually falls through. The longer your home is on the market, the more questionable it will seem to buyers, and could invite lower offers or time consuming negotiations.
Looking at homes which are adjacent to vacant or nearby undeveloped land always comes with a question mark. When viewing these homes use caution and take emotion out of the equation. Rather than becoming enamored with the vast open space behind the house, buyers should use a critical eye instead… envisioning the back of another house, an apartment complex, a shopping center, or busy road. Avoid potentially nasty surprises by investigating and verifying the ownership, zoning and approved use of that land before you buy.
In most areas, researching a property further may be as simple as reviewing county records online to see who owns the property, and what type of use the land is zoned for. Check on zoning regulations in the specific area you’re interested in to see what is permissible on that property.
If the land is not zoned solely as residential, it could be designated for either mixed-use or commercial development. Land in a mixed-use zone could be developed as a planned community, with a combination of residential housing, office, retail, medical, and recreational spaces.
Land that is zoned as commercial should be a major red flag. You could end up living next to a warehouse, service station or a shopping center. You should also dig a little farther and check with the town’s planning department to see if any development proposals are being discussed or are already on the books.
You could also encounter a vacant property that backs to a conservation easement. Unlike some easements, a conservation easement is favorable, because it may allow limited residential use or agricultural activities but prohibit commercial development.
If you want to keep the land next to you undeveloped or increase your property size and value, you might consider buying the vacant land. This circumstance is ideal when you have a large family with kids. You also know that nobody else will be building a home on that vacant lot, giving you greater peace of mind and privacy.
Keep in mind that you will have to pay higher property taxes when you are purchasing both your house and the vacant lot next door. Also, if the owner of the vacant lot is aware that you are buying the other property, they may try to increase the sales price knowing that you are a motivated buyer. So be careful and check the real estate market to see if there is any sudden mark up to the asking price. You may be able to get the property at a reduced price from a property owner who doesn’t want to deal with the continued maintenance and upkeep of it.
If you don’t see any sign on the property that shows it is for sale, this situation doesn’t mean that you can’t still make an offer for the property. You will have to do some research gathering at the property assessor’s office to find out who is the owner of the lot and whether they would be interested in selling it.
Some property owners don’t consider purchasing the adjacent property because they think that they have to take out a second mortgage. Yet some lenders will allow you to add the lot to your existing mortgage when deeding it onto your property. Check with your trusted mortgage professional to see if this is an option.
If you want to sell your home fast and expect to get your asking price, you must stage it to attract as many buyers as possible. Home staging is a strategy that many sellers use to show off their property’s potential, and it’s one of the most important tasks you can do before putting your house on the market.
Staging makes it easier for buyers to visualize the space as their future home while allowing them to picture how they could use the space. It’s important to show them an inviting and comfortable sleeping environment. By following a few simple “do’s and don’ts” you may be able to increase the sale price by up to 5% according to many real estate agents.
Begin your bedroom-staging process by decluttering. Many bedrooms—especially infrequently used ones like guest bedrooms—become a dumping ground for extra bedding, clothes, and accessories. Remove all items from bedroom closets, as they might distract buyers during home showings. Plus, an empty closet can create a feeling of ample storage space.
Depersonalize the rooms by getting rid of family photos, religious and political items, as well as knickknacks and trophies. A bedroom will look more complete and thoughtfully staged with a large painting or framed print hung on the wall above the head of the bed. Good rule of thumb is to have the piece at eye-level for the average sized person. A single piece of art should be hung about 60 inches from the center of the piece to the floor.
The bed is the bedroom’s main focal point, so it’s important you give it extra attention. Sellers should make up the beds in a luxurious yet simple way. A properly made bed is key to a well-designed bedroom that can win over any buyer. Choose neutral bedding that can appeal to most design preferences. Use new standard bed pillows, rather than ones that are flat or an odd shape. Then finish off the look with a few throw pillows that provide a fun pop of color.
Show off every bedroom in the best light possible. When staging your bedroom, make sure you maximize the amount of beautiful natural light while including a mixture of ambient and accent. Ambient lighting provides the primary illumination for a room and includes overhead lights. The most common accent lights are table lamps, wall fixtures or sconces.
Remember to avoid heavy draperies and curtains with bold prints or colors; they can distract buyers and use the correct size bulbs for lamps and fixtures. A 40- to 60-watt soft white or warm white bulb is most commonly recommended for bedrooms.
We love our pets, but unfortunately, prospective buyers might not feel the same way. Pet crates, beds, and toys can possibly deter potential buyers. If you have pets, be sure to remove any traces of them, especially before you take listing photos. This will eliminate the possibility of buyers assuming your house smells of pets because they see traces of them in your home. It’s also a good idea to have a trusted friend or relative watch your pet during showings.
When you renovate your property, you’re showing potential renters that you care enough to make your property as attractive as possible to potential tenants. Yet, Many landlords make the mistake of over improving a rental property. Rentals need to be hard-wearing, since many tenants don’t respect the property as they would their own home. When tenants leave, the landlord needs to turn the property around quickly to keep income flowing. If landlords are going to be spending money on improving their rental property to attract higher-quality tenants and boost property values, it’s important to focus on the right things.
Homeowners generally get the most bang for their buck in renovations of kitchens and baths.Generally with rentals, improvements don’t need to be as expensive as those in sold residences and flips. Landlords should spend their money on plumbing and cosmetic upgrades (kitchens, baths, flooring, and painting) to ensure against water damage or other upkeep and make the unit presentable. Spending extra cash on tiling, baseboards, or fancy fixtures is often money down the drain.
While renovating your kitchen, it’s easy to go appliance crazy and see no return for the money put into those new appliances. There isn’t a financial benefit by splurging on a $3,000 side-by-side when there are models that look similar and do the same job for a third of the price.
Now, there are a few reasons to update older appliances that should be noted. Since the kitchen is often the focal point of a home, new kitchen appliances may be just the thing that attracts prospective tenants. This could be done as simply as having them all the same color and hopefully from the same decade. Keeping your properties appliances in great condition can cut down on the volume of maintenance requests you might receive from renters. Also, renters appreciate the newer energy efficient models since they’ll most likely save them money on electricity bills.
It’s possible to achieve a high-end look with a mid-priced budget. Quartz countertops have a fairly uniform price and always look good. Vinyl plank flooring, when chosen wisely in lighter beachy tones, mimics trendy white oak well without having to shell out more money for hardwood and its installation.
Cabinets also can be made to look like they cost more than you paid. Refinishing, repainting and adding new hardware can look good instantly. If your cabinet fronts are old-fashioned, buying new fronts and then staining or painting them is a less-expensive alternative to purchasing all new cabinetry. It will add the “wow factor” without the expense of brand-new cabinetry.
This may sound obvious but the best way to maximize the money coming in from your rental is to make sure the running expenses are kept to a minimum. Investing in a few heavy duty or higher quality items throughout the property will ensure costly repairs aren’t eating into your profits.
At some point in their lives, most people will have enlisted the help of a real estate agent to buy or sell their home. While hiring a real estate agent isn’t required, many people turn to an agent for help navigating the process of buying or selling their home. Due to the many steps to complete a real estate transaction, licensed agents are a valuable asset. With all that said, how do they make their money?
Most real estate agents are paid on commission after completing the sale of a home, which is typically 5 to 6 percent of a home’s sale price. The seller usually pays both the listing agent and the buyer’s agent’s commission fees once the home has been sold. The listing agent and buyer’s agent split the commission equally, usually. Buyers might unknowingly pay a portion of the commission because most sellers factor it into the asking price.
A portion of the commissions are also paid to brokers, which varies based on the experience of the agent. Experienced agents may keep as much as 90% of the commission, whereas new agents may pay as much as 70%.
Despite the fact that real estate commissions can take a significant portion of a seller’s profits, these fees are negotiable and variable, so there is hope for sellers. In order to prevent clients from finding lower commission rates, brokerages cannot agree to fixed commissions together, in violation of antitrust laws. According to the value brought to clients, commissions must be determined independently by each broker or brokerage.
How much they can actually make really depends on a few factors, such as sale price, real estate brokerage policies, the housing market, and more including:
Agents typically only make money if a sale is completed. However, real estate agents can protect themselves through contingencies in listing agreements, guaranteeing their pay if a sale falls through due to something out of their control. Some agents may also add a fee in the listing agreement for marketing services, such as professional photography, in the event a home doesn’t sell.
While rare, some real estate agents are paid an annual salary and earn bonuses rather than a commission. Some agents might prefer the predictability of a salary and choose to work with a brokerage that pays an annual salary and bonus instead of working on commission.
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