12 Most Commonly Asked Real Estate Questions
1. Is now a good time to sell? Yes! Home prices are still expected to slowly increase and buyers are still out there ready to purchase. 2. How much is my house worth? Two things: Your home can have an appraised value and a market value. An appraiser can come to your house and tell you a figure of what the literal house and property is worth, however the market value could differ. To figure out what it would sell for at the time you list it, we will look at comparable homes that have sold in your area and get an approximate price of how much you could get. 3. What are some things I need to do to get my house ready for sale? Declutter, clean, and freshen up the curb appeal. Get rid of the extra junk that a buyer doesn’t need or want to see. Dust, vacuum, mop, clear countertops, and make the beds and couches look presentable. And last but not least, freshen up the curb appeal by possibly adding new mulch or plants to a garden bed outside, pressure wash the driveway, or add a fresh coat of paint to the front door. Impress buyers right away before they even walk inside. If they don’t like what they see on the outside, they won’t even bother walking in. 4. Would it be wise for me to have a home inspection done before listing my house? It isn’t required to have an inspection done before you list your home for sale, however, it could help you as the seller better understand the condition of the home, how much you should price it at, and if there are any repairs that need to be made beforehand to move the sale along. Ultimately, it’s not necessary but if you have an old home that hasn’t been looked at in a while by a professional, it could help you. 5. How long do you think it will take to sell my house? According to the DMAAR year end 2022 housing market reports, the average days on market was 52 days. From the data that we have so far from January to October 2023, the average days on market is 48 days so it is slightly lower than last year by a few days. 6. What’s the initial step in purchasing a home? Reach out to a mortgage lender and get pre-approved for a home loan. Once you know how much money you can get for your loan, then we can help you shop for your dream home. If you need recommendations of which lenders to reach out to, call us and we’ll lead you in the right direction. 7. What are my options if my offer is turned down? If you are a buyer and you put in an offer on a home that isn’t accepted, don’t worry! We can help you find other properties and negotiate your next offer. Also, things happen. Even if your offer isn’t initially accepted, it doesn’t always mean everything is final. Some times things fall through and don’t work out so don’t give up right away. In the meantime, we can help you find your next dream home and hope for the best! 8. How does my agent get paid when buying a house? When Realtors represent buyers, they are typically compensated by the seller’s broker sharing their commission. In our industry it’s referred to as co-operating brokerage agreements, which means that all the real estate brokerages agree to co-operate with each other to best serve buyers and sellers of homes. However, there are exceptions, when we represent buyers purchasing homes that are for sale by owners or through a non-co-operating real estate broker. In those instances, we will discuss compensation options with the buyer and do our best to negotiate with the seller or their representatives to include buyer representative compensation. Either way, all compensation is settled when closing on the property. 9. What if I sell my home but I’m not able to find a new one to buy? There are a variety of ways we can protect the seller and provide them time to find a home of their choice. First, when we meet with sellers to develop a strategy to sell their home, we also discuss what their requirements and wishes are in purchasing a new home and we get those plans going as soon as possible. If our seller finds a home they want prior to their house being under contract to purchase, we can use a Subject to Sale Addendum that will outline options and timeframes for the purchase of the new home that will be contingent on their current house being sold. If our seller receives an offer on their home prior to finding a home to purchase, we can create a contingency that allows the seller to find a home of their choice prior to their current home being closed. In both scenarios, the closing date is a bit uncertain until all purchase contracts are fully executed. In the unlikely event that the seller cannot find a home they like, Zealty Home Advisors has access to several short-term rentals for our clients to help them in their transition. 10. Home prices are going down. Should I wait to buy? Actually, nationally they are increasing! However, only slightly and at a slower rate. Economists and other experts predict that home loan interest rates will slightly decrease in 2024 so even though home prices are increasing, interest rates will hopefully decrease allowing more buyers to enter the market and find the home of their dreams. 11. How would you market my house for sale? First we start out by having a consultation with you to establish your needs and goals. Do you want to sell quickly or do you want the highest dollar amount? Would you like a 3-D rendering of your home done so potential buyers can get a virtual tour of your home online of would you prefer in-person home showings? After we discuss the important things, we will have a professional photographer take photos of your home so we can price it and list it on our website and start showing your home to buyers. We will also post a preview of your home on social media to get it more attention. 12. How frequently and by which methods do you communicate with your real estate clients? We can call, text, email or meet in person if necessary. However, we are easier to reach via call or text due to us driving and showing homes or meeting with other clients. *This house is not actually for sale. It is a stock image with an added for sale sign in the front of it.*
5 Simple Ways to Winterize Your Home
Winter is almost upon us and we wanted to share 5 simple and easy ways to winterize your home this season. If these tips were helpful, please make sure to like this video and subscribe to our channel before you leave. 1. Clean your gutters. Clear out fallen leaves, sticks, and other debris to allow for snow melt to drain properly to avoid sludge clogging up your gutters. 2. Keep out the cold from your windows and power outlets. Apply caulk to the cracks and seams of your windows and use foam outlet inserts to keep the cold out in poorly insulated walls. 3. Add weather stripping to door frames and door sweeps. The cold can easily get in through large gaps and exterior doors are usually one of the biggest culprits. Cut weather stripping to size to fit in the cracks of your doors and get a door draft stopper for underneath to keep your home nice and warm. 4. Pick up some ice melt to keep porches, walkways, and driveways clear of any trip and fall hazards. Along with clearing hazards, make sure to have a snow shovel handy. Don’t forget an ice scraper and rubbing alcohol/water solution for quick melting of your vehicle windshields on the go. 5. Maintain your heat to at least 65 degrees or higher and ensure that your home is well insulated to keep the heat in and the cold out. We hope those tips were helpful! Please like this video and subscribe to our YouTube channel for more home and real estate related tips.
Hosting on Airbnb and Vrbo - Is it Worth It?
When it comes to vacations or needing to change up the scenery, it comes with needing a place to stay. Short-term rental platforms such as Airbnb or Vrbo have got you covered. They have everything from A-frame houses, cozy cabins in the woods, luxury treehouses, tiny homes, airstream campers, to entire homes, single bedrooms, beach condos, or apartments in a busy city. These rental platforms offer unique places to stay during your time away to make you feel right at home. On the flip side of things, if you’ve ever considered becoming an Airbnb or Vrbo host or getting into real estate investing, it can be a lucrative business if done correctly. But is it worth the time and energy? How do I start? Step one is to invest in real estate. Whether you are a first time buyer or already have a property you can use, make sure that the dwelling is well maintained, has competitive amenities, and comfortable bedding to make your guests as comfortable as possible. You don’t need to have the nicest home to get your foot in the door of starting this business, however, it is important to stand out among the other surrounding properties in the area to get more traffic to your listing. If you are a first time home buyer, there are down payment assistance programs available in the state of Iowa that can help you purchase your first property. Check out Neighborhood Finance Corporation’s website to see if you qualify for $10,500 in free money. What is the difference between a traditional investment property and an Airbnb? A traditional investment property rental is usually a long-term rental where a tenant can stay in your property for anywhere from one month to many years. In contrast to that, Airbnbs and Vrbos are short-term rentals where tenants have the option to stay for one night, a few nights, or a few weeks and have the option to stay for multiple short-term stays. During the short-term stay, guests will have access to some or all of the property. They may have access to the entire house, some of the house, or a single room and bathroom. Here is where the money is up for grabs because you can have multiple different tenants stay at different times helping you pay for your mortgage. If the tenants enjoy their stay, they can write a positive review or return back for another stay another time for continued business. Can I utilize a down payment assistance loan to purchase a property and rent out my place? Yes! Let’s say you buy your first home for $250,000. Using your down payment assistance with Neighborhood Finance Corp, you pay 3% down and then they’ll loan you $10,500 in free money to use towards your principal or closing costs and you can pay it back whenever you can with no interest. However, if you want to do this in combination with Airbnb or Vrbo, you have to live in the property while paying off the loan. So, you can rent out a room or a main level or basement while your tenants/guests help you pay towards your mortgage. For example, let’s say that your monthly mortgage payment is $1,500. If you break that up into a daily rate, divide $1,500 by 30 and you get $50. When you host your home to guests, for a nice home with amenities, you can charge around $100+/night. If you get guests to stay in your home every night for 30 days at $100/night, that’s $3,000! Then after you pay your $1,500 mortgage payment, you not only have other people paying your mortgage but you also POCKET the other $1,500. Airbnb and Vrbo do take a cut of your earnings for booking fees however, Airbnb only takes 3% and Vrbo takes 5%. So if you take your $3,000 earnings minus the 3-5% booking fee, your net earnings come out to $2,850-$2,910 (not including property taxes and insurance). To be clear, please note that you are only eligible for down payment assistance through Neighborhood Finance Corp if you live in the home. You cannot not buy the property with the loan assistance to solely rent it out and never live in it. This works great if you have a spare bedroom and bathroom you aren’t using or if you have a finished basement or main level that you aren’t using and can make some extra cash. Should I hire a property management company? You could! However, you can save more money by maintaining the property yourself. As many of us know, YouTube has a ton of helpful videos showing how to do things. If you get to the point where you don’t have time to do it and life gets busy, we recommend Nest Property Management as they offer home maintenance, additional marketing on other platforms, and tenant screening. So is hosting on Airbnb or Vrbo worth it? Yes! If you’re able to get into the market and purchase a house or use a property that you already own, this is a great opportunity to make extra cash or even make it a full-time job. If you are considering becoming an Airbnb or Vrbo host, we have investment properties that we own and manage and would love to answer any of your questions about getting started. Don’t forget to reach out to Neighborhood Finance Corp to see if you qualify for free money to purchase your first home!
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