Our Real Estate Blog
If you’re a homeowner considering selling your home as an investment property, timing is important. From a financial perspective, just as you probably bought strategically, you want to sell strategically too. The trick is knowing when the right time arrives. Here are four common metrics people use to determine when it's time to sell their property.
Amount of Equity in the House
A primary factor to look at is how much equity is in the home. Ideally, to sell a home as an investment, the seller can make a tidy sum. If mortgage payments are still owed, this may negate any potential profit made, but not necessarily. If you're looking to broaden your investment portfolio, be certain you can sell your house for enough money to pay off your debt with a sufficient amount left over to re-invest. If you don’t have enough equity to do this, you’re better holding off.
Market Conditions Are Good
Many owners who bought low and can sell high find this to be a strong motivator to put their property on the market. Since market conditions eventually shift to a buyer’s market, it’s a smart strategy to sell when the housing market favors the seller. Owners who have held their property for a long time or purchased as the housing bubble burst between 2007-2012, are likely going to make a better profit than investors who purchased when prices were at their peak.
Tax Code Advantages
Buyers are often motivated to sell if there are tax code advantages. For instance, the IRS currently offers a tax-deferred advantage to investors looking to sell one property to buy another. Under tax IRC Section 1031, sellers are required to find another property to purchase within 45 days and then buy it within 135 (180 days total).
By selling and making a similar real estate investment, investors can defer paying their federal and state capital gain taxes. It’s a good strategy to use if you want to leverage real estate and broaden your portfolio.
Taxes Are Going Up
If local taxes are going up, often buyers find this to be an incentive to sell. For instance, if a town severely limits commercial activity, the tax burden falls to homeowners. Over time, the tax bill may become too exorbitant. If you own enough equity in your property and the housing market is in your favor, high taxes might be your tipping point.
Modern design is still alive and well in new construction. There are specific philosophies and style elements of modern design that have made the style so enduringly popular both with homeowners and with builders. However, with so many famous modern homes being owned by celebrities and prominent architects, you might wonder if it’s affordable for the average person. The good news is that modern design can be far less expensive than other style alternatives. Here’s what makes modern design affordable:
Modern Homes Have Simple Layouts
One of the most recognizable elements of modern design is the use of rectangular shapes and straight lines. Not only does this create a striking aesthetic, but it’s also cheaper to build. If your home design is made up entirely of rectangular rooms and facades, you will be looking at lower costs primarily because of quicker construction. If construction can move faster than planned, you’ll save a bundle on hourly labor, contractor salaries, rental amenities and more.
The interior layout and floor plan of the home can also have a significant effect on the overall cost. Modern homes use open floor plans with fewer walls and barriers. This means less work for the construction crew and potential to save money in the future because of overall energy efficiency.
Modern Homes Are Efficient
Over time a modern home with an efficient layout means lower utility bills. Open floor plans allow optimal circulation and airflow, reducing the amount of energy needed to heat or cool the home. Modern design also has a huge emphasis on windows—and lots of them! Some modern designs boast entire glass walls which can get expensive, but overall the amount of windows allows natural light to fill the space. Well-insulated vinyl windows will keep that cool or warm air inside, too.
Modern Design Avoids Expensive Details
“Less is more” has always been one of the biggest concepts in modern design that conveniently equals lower costs. In modern homes you won’t find a lot of embellishment, extra decorative furnishings or features. The focus on functionality and efficiency means no complicated trim, crown molding or ceiling reliefs. Everything is sleek and clean, which means it’s quicker and easier to build. Also, the lack of complex embellishment means less potential repairs in the future. Details can be expensive and time-consuming to maintain, and might even require hiring specialized help. The clean simplicity of modern design allows you to avoid all of those costs.
Modern Homes Use Functional & Affordable Materials
The practical simplicity of modern design is also more affordable because of the building materials. Many modern homes use widely available and inexpensive materials such as concrete, sheetrock, stucco and brick. Stone veneer is a popular modern option for creating accents alongside wood and glass. Even while avoiding complex embellishments, you can achieve some visually pleasing combinations by using contrasting materials.
No matter what style of house you’re wanting to build, there are ways you can save money. However, with modern design a lot of that savings is built right in. With the layouts, floor plans, simplicity and materials used, you’ll already save money compared to building a different style of home.
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A home listing often introduces a homebuyer to a residence. It may include home photos, a brief home description and details about various home features and amenities. As such, an effective home listing is a must-have, particularly for a home seller who wants to stir up plenty of interest in a residence.
Ultimately, there are several best practices to consider when you create a home listing, and these include:
1. Provide Accurate Information
Learn about your home, and you can provide accurate information about your residence in your home listing.
If you're unsure about your home's condition, it often pays to complete a home appraisal. That way, a property appraiser can evaluate your residence both inside and out, identify any problem areas and offer a property valuation.
Furthermore, if you recently completed assorted home improvements, you should include information about these upgrades in your home listing.
Whether it's new windows that you installed throughout your residence or an updated home air conditioning system, including details about various home upgrades in your home listing could help your residence stand out to potential buyers.
2. Include High-Quality Photos
You don't need to be a professional photographer to capture high-quality photos of your house. In fact, many smartphones and tablets feature first-rate cameras, and you can use these mobile devices to take photos of your house's interior or exterior.
As you photograph your home, remember the homebuyer's perspective. For instance, a homebuyer likely wants to see photos of a clean, pristine kitchen and other awe-inspiring images of your house. If you clean and declutter your house before a photo shoot, you can increase the likelihood that your home photos will capture homebuyers' attention.
On the other hand, if you want professional assistance, you can always reach out to a real estate photographer as well. A real estate photographer can offer home photo recommendations and suggestions and help you capture photos that show off the true size and beauty of your residence.
3. Collaborate with a Real Estate Agent
A real estate agent knows what it takes to craft an effective home listing. Therefore, if you collaborate with a real estate agent, you should have no trouble creating a home listing that hits the mark with homebuyers.
Typically, a real estate agent will meet with you, learn about your home selling goals and plan accordingly. He or she then will use the information that you provide to develop an engaging home listing.
With a real estate agent at your side, you can seamlessly navigate the home selling journey too.
For instance, a real estate agent will host open houses and set up home showings to promote your residence to homebuyers. Plus, he or she will keep you up to date about any home offers and provide expert advice at each stage of the home selling journey.
Creating an effective home listing may seem difficult. Fortunately, if you use the aforementioned best practices, you can craft a home listing that can help you generate substantial interest in your residence.