Philadelphia Real Estate Podcast with Danielle Py-Salas & Guillermo Salas

  We previously shared three costs of buying an investment property, and we’re back today with some more. Here are four more costs you’ll need to keep in mind when you invest in real estate: 1. Utility costs. Oftentimes, you can have your tenants pay the utilities—especially if they have separate meters. In jurisdictions like Philadelphia, however, if the tenant doesn’t pay their gas/water bills, the costs can become lienable against the property. There are a few ways to get around this, such as going through a waiver process for gas bills, creating a reimbursement-type arrangement in your lease, and more. 2. Property taxes. If the taxes aren’t in line with the neighborhood’s values, you can always appeal them. You can find the numbers in public records—if you can’t access them yourself, I can certainly help you. “By looking at your income and these expenses, you’ll find your net operating income.” 3. Property insurance. This actually isn’t as expensive as you might expect; it’s not like what you’re paying for your primary residence. I recommend covering the home replacement value, which is about 0.5% of the property’s value. 4. Other costs. This is made up of expenses that are unique to a particular property, such as homeowners association fees, snow removal, lawn care, etc. The four items from this video and the three from the previous one will help you analyze the rate of return you’ll receive for a property. By looking at your income and these expenses, you’ll find your net operating income (NOI) and be on the path to finding out what your property is truly worth. We’ll talk more about using these metrics in future videos. If you have any questions, need more information, or have any ideas for topics I should cover, feel free to reach out to me. I look forward to hearing from you soon.

When purchasing an investment property, there are a number of costs you’ll need to keep in mind. For brevity’s sake, we’re going to cover just three of the most significant expenses today: 1. Property management fees. As a landlord, you’ve got enough on your plate. Hiring a property manager will ensure that your investment is well taken care of. However, this necessary service comes at a cost—usually 5% to 12% of the monthly rent. “Hiring a property manager will ensure that your investment is well taken care of.” 2. Leasing. This can cost as much as one month’s rent or as little as .25% each month. 3. Maintenance. Typically, landlords should maintain a reserve between $300 and $400 to make sure minor issues can be resolved in a timely manner. Having between 3% to 6% of annual rent in reserve will help you avoid spending out-of-pocket funds on fixing up your property. If you have any other questions or would like more information, feel free to give us a call or send us an email. We look forward to hearing from you soon.

Victor Cortese is joining us once again to answer another common investor question: “What are the things that I need to look for in a property manager? What questions should I ask them?” According to Victor, you want to enter with a framework of a partnership. Part of that is managing your tenants and making sure there’s proper customer service in managing your tenants. Trust and transparency are critical as well to protect your asset and make sure that your ideal margin is maintained. “Trust and transparency are critical.” A lot of our clients are looking to buy multiple properties at once and want to take these assets to help them meet their retirement goals. Protecting that margin is important, and you want a management company that is proactive and performs preventive maintenance to avoid bigger issues down the line. A maintenance reserve of a few hundred dollars usually takes care of this, but we’ll talk about that next time when we talk about the costs of hiring a property manager. In the meantime, if you have any questions for Victor, you can reach him at (484) 450-8908. If you have any other questions for me, feel free to reach out anytime via phone or email. I look forward to hearing from you soon.

To help us understand what a property manager does to earn their fee, I invited Victor Cortese of PPS Properties to speak with us today. As a property manager himself, he knows the ins and outs of the business. So, what does a property manager do? Their key duties include: Collecting rent Managing the accounting process Distributing statements Fielding tenant calls for work orders, tenant management issues, etc. “They’ll look at oil burners, electrical systems, and water pipes during their maintenance.” PPS Properties also goes above and beyond these typical duties, performing an annual preventative maintenance check to keep issues from occurring. They’ll look at oil burners, electrical systems, and water pipes during their maintenance. This also helps with their turnover costs at the end of the day. I’d like to thank Victor for joining us today; you can visit his company’s website at www.PPS.Properties. And if you have any real estate questions or need further information, feel free to reach out to me. I look forward to hearing from you soon.

We at the Salas Team would like to thank you all for an amazing year; we wouldn’t be where we are without your support! In an effort to show our appreciation for your continued support and have a little fun at the same time, we’d like to invite you to participate in our referral contest. From now until February 28, send us referrals for anyone who is looking to buy or sell a home in 2019. After you send us their name, phone number, and email, you’ll be entered into a prize drawing for a new Apple Watch. Visit http://www.ReferTheSalasTeam.com to enter. If you have any other questions or would like more information, feel free to give us a call or send us an email. We look forward to hearing from you soon.

The first thing that you look at when buying an investment property is whether the rents are going to be adequate in order to make that investment worthwhile. In that vein, today I want to share some practice points for verifying that you’re charging enough rent for your property. Here are four rules to keep in mind: 1. Use the MLS to see how much rent currently is for your type of property in the area. Whether you have direct access to the MLS or if you’re looking via your Realtor, you should be able to generate a report that shows what the current rents are for your type of property in your area. I typically do a radius or zip code search and then go back six to 12 months to look at the history of rents within my criteria. 2. Ask property managers about where rents are currently and where they’re headed. There are many property managers out there in the industry who have their fingers on the pulse of current trends in rentals, and they can advise you about what you should be charging for your rentals based on their experience. “If you use these four approaches, you should get a really good sense of what the rental incomes for that building would be.” 3. Keep an eye out for local listings and how much rent they’re going for, including listings online, in the newspapers, and wherever else rentals are advertised. Be sure to account for listings that have a property type similar to yours. 4. Cruise the neighborhood and look for rental signs. Call the owners or landlords to ask how much is being charged for rent to give you an idea of what you should be charging. If you use these four approaches, you should get a really good sense of what the rental incomes for that building would be. In turn, you’ll also get a better sense of what you should be inputting into the spreadsheet I mentioned in my last video so you can do an actual evaluation to figure out what the rate of return might be. If you have any questions about this or any other topic, as always, feel free to reach out to us. We’d be happy to answer any questions you have.

We’re continuing our series on investment with a topic we’ve been teasing for a while: How to analyze your investment. There are three key metrics of investment we’ll be looking at today: 1. Cash flow. This is your income, minus expenses, which gives you your net operating income. After subtracting debt service from your net operating income, you now have an idea of how much money is flowing in from your investment property. 2. Paid down. This is when you use your tenants’ rent money to pay down your property’s mortgage. Over time, the tenants will help you recapture your equity in the property. “You should be looking for a combined rate of return between 17% to 20%.” 3. Appreciation. You need to factor this into your return. From 1970 to 2010, home prices in the United States have appreciated at around 4.4% each year. When you combine cash flow, paid down, and appreciation, you should be looking for a combined rate of return between 17% to 20%. If you hit this point, you’re doubling your money every four years. I have a spreadsheet that calculates returns over time, and I’d be more than happy to go over it with you. If you have any questions or need any information, feel free to reach out to me. I look forward to hearing from you.

In continuing our series on real estate investing, today we’ll be discussing two key points that will guide you toward the right investment property. The first is having a mission and vision, and the second is defining your property criteria. To fulfill each of these two points, there are five steps you’ll need to take. 1. Know what your goals are. Decide how much money you want to make, how many properties you want to own, and how quickly you want to accomplish these things.  2. Set and prioritize your criteria. Of all the various points you may have on your checklist of the perfect investment property, one of the most important is location. Investors should mainly stick to properties that are within 30 minutes of where they live or work. It’s also a good idea to set your sights on “up-and-coming” areas rather than those that are already red hot. The most successful investors are those who can get in on opportunities ahead of the curve.  “The most successful investors are those who can get in on opportunities ahead of the curve.” 3. Find the right type of property. Single-family properties are great in terms of maximizing your net worth since they tend to appreciate well over time. Multi-family properties, meanwhile, appreciate less but generate a higher cash flow.  4. Check the property’s condition. Investors should purchase a property that has “hair on it.” Properties others might shy away from can be a great opportunity. It’s all about being able to see the value through the issues.  5. Be aware of fair market value and demand a discount. A good rule of thumb when asking for this discount is to aim for 10% less than the fair market value. If you have any other questions or would like more information, feel free to give us a call or send us an email. We look forward to hearing from you soon.  

A good real estate investor needs a good team. There are a lot of moving factors and many team members you can add, but I’m going to cover four key components (with a focus on apartment building). This is what you’ll need to ensure your investment goes smoothly and puts money in your pocket: 1. Find a good commercial lender. It’s a shock to many investors how financing commercially is different from buying primary property. Down payment requirements are higher at around 25%, the amortization table holds higher costs, and the loan itself works differently. It’s not a normal “fixed-rate for 30 years” situation—there are many different options to choose from that do not usually extend as long. These are just a few reasons why you want somebody with a strong knowledge of commercial finance on your side. 2. Set up a company. This is important from a liability perspective. You can set this up with an attorney, or you can contact us and we can help. We typically advise people to set up a company for each individual property in order to manage liability. “You need someone who isn’t just looking for an immediate sale.” 3. Get a good property manager. A great property manager is incredibly important because it’s a choice about whether to work or not, earn a passive income or not, etc. A responsive property manager will free your hands from landlord duties, provide you detailed reports, and generally make your life easier. 4. Find the right agent. Not every agent in this world is built the same. Your investment agent is different from the one you use to buy or sell your home. Because you’re thinking critically about investment opportunities, you need someone who isn’t just looking for an immediate sale. This agent will be part of a long-term investment relationship. They’ll need to find the right properties for you, sift through deals both good and bad, and ultimately position you to hit a home run. There are other aspects of building your team, but these four key components will get you to an ideal launch pad. If you have any questions about real estate or investment, would like to locate people for your team, or need additional information, feel free to contact me. I look forward to hearing from you.  

Many people hesitate to start investing in real estate because, for them, there’s so much mystery about the process, which saps their confidence. The key to getting started as an investor is just like everything else in life: Once you do it a couple times, it’s just not that complicated anymore. Additionally, talking to a professional (like myself) can also provide some much-needed clarity. So today I’ll focus on three key things to help you wrap your head around the concept. 1. Identify your risk profile. Not everyone is built the same way; some people are riskier than others. The same applies to the types of assets you can acquire in real estate. There’s land as an asset, where you get to build from the ground up, but this is a bit riskier. Shells are also a risky, but potentially viable, asset.Apartments that have already been established and are currently being rented out are less risky assets to think about. They’ve likely got cash flowing already, and even if it’s not much, you’ve got renters paying down your principal and interest.So, when thinking about your own risk profile, you need to consider what assets you would feel comfortable owning. Also, consider your investment horizon, or how long you intend to stay invested in an asset before cashing out. You can start out with a turnkey property and once you’ve built confidence in your investing skills, you can take on assets that will provide a bit more value down the road. “When thinking about your own risk profile, you need to consider what assets you would feel comfortable owning.” 2. Demystify the process. We’ve all seen the shows on HGTV—many think that they could never do anything like the investors on TV because it’s all just so complicated. The key to dispelling the mystery around the process is to align yourself with the right resources.Here at the Salas Team, we help our clients with the process. We can help you expand your contacts so that you have the right contractors, property managers, attorneys, architects, and so on. If you have the right people on your team, then everything will go much smoother.  3. Understand how to value an opportunity. I started this process by reading “Rich Dad, Poor Dad” by Robert Kiyosaki. The book will take you through the steps needed to learn how to value a deal, and I highly recommend you read it.In addition, I built a spreadsheet with easy entry points with certain fields highlighted. Fill it in, and you can see your numbers from the income side, the expense side, and what you can expect in terms of a return for each asset class you’re pursuing. It’s essentially dummy-proof. In the future, I’ll do more videos on how to value properties so that you can demystify the process and lower your anxiety, allowing you to begin the process with confidence. If you’re interested in learning more about real estate investing sooner, however, please feel free to reach out to me. I’d be happy to discuss it more with you.

In addition to helping people buy and sell their primary home, a big part of what we do here at the Salas Team is to help real estate investors. In fact, real estate investing is where our team got its start. There’s nothing more empowering than being able to build passive income so that you can choose to work instead of being obligated to work. If this sounds appealing to you, there are a couple of steps you’ll need to follow to get started. First, figure out what your personal household expenses are. Determining the dollar amount of what you spend on various things on a monthly basis will give you a better idea of your financial position. “There’s nothing more empowering than being able to build passive income so that you can choose to work instead of being obligated to work.” This will, in turn, give you more leverage to work toward investing in real estate. Depending on how aggressive you want to be with your investing strategy, you could begin paying off your monthly personal expenses using passive income in just two or three years. Of course, there are many points to consider and steps to take before you can delve into real estate investing. That’s exactly why we will be going into greater detail on the subject in our next few upcoming video blogs. However, if you’re interested in learning more right now, feel free to reach out. And, as always, if you have any other questions or would like more information, please give us a call or send us an email. We look forward to hearing from you soon.  

Sometimes, two people who are looking to buy a home together have difficulties choosing one option because they can’t agree on certain features or amenities. When one of our clients is facing this situation, we resolve it by having them use a tool called “the triangle.” The triangle is simply a list of the top three essential features the clients can both agree are needed in their future home. Focus on the three most important things you want in your new house. Not five, not six—just three. Everything else is an opportunity to increase the value of that house. The reality is, no home is perfect—whether it’s a new construction or recently rehabbed. After you’ve found a home within your triangle, put your investor’s hat on. You can fix up any other problem areas in the house that aren’t a part of your triangle. For instance, if a bathroom in the house needs updating, you now have the opportunity to build equity in your new home by fixing it up yourself. When the time comes to sell it, you’re reaping the benefits of that equity instead of buying someone else’s premium. “Focus on the three most important things you want in your new house.” Since today’s topic was suggested to us by one of our subscribers, we want to take a moment to remind you that if you send us a question that we choose to answer in a future video, you’ll be rewarded with a $25 gift card. As always, if you have any real estate needs or if you’re thinking of buying or selling a home, please feel free to reach out to us. We’d be glad to help you.

Summer is here, which means it’s the high season for real estate. If you’ve been thinking of selling your home, you might be in for a golden moment.However, it might not last long. Let me explain why, with a few details about the current real estate market.Right now, homes are selling in record time. This May, it took just 34 days on average for a home to go under contract, which broke last year’s record of 36 days.Home prices also continue to rise. In fact, they’ve been rising for six straight years. For the past two years, this growth has been accelerating. As a consequence, 27.6% of the homes sold in May sold above their list price.All of this is due to a woefully short supply of homes on the market. In fact, the total supply of homes is 5.4% lower this year than it was at the same time last year.However, the real estate market might be on the cusp of change. Mortgage rates have been rising, and now stand near their highest levels in seven years. As a result, pending home sales were down as of April. More alarmingly, we saw a drop in customers touring homes for the first time in 27 months.What’s going on? The home price surge might be nearing its end. Overall, home affordability is dropping: Over the past 6 years, there has been a 48% increase in average home prices, while wages increased only 14%. Wage growth has not kept pace with home affordability and we saw the results of that in April.While some sellers are still managing to sell at higher prices than listed, nearly a quarter of sellers actually had to lower their prices this April. What does this mean for you?If you do decide to sell right now, you would have an easy time of it, and you could get top dollar for your home. If you decide to wait, things might go south quickly. That’s because the market may be reaching the limits of price growth and may be stalled by higher mortgage rates. “Demand and prices are still high (for now).” If you want to take advantage of current conditions by buying or selling a home any time in the near future, don’t hesitate to reach out and give me a call or send me an email today. I’d be happy to help you figure out what we think your home could sell for with a CMA.  I look forward to hearing from you soon.

If you are preparing to list your home for sale or already have it on the market, you should know about the things that may be sabotaging your home sale. These are the nine silly things that I am going to share with you today. 1.  Cords hanging from your mounted television. Putting the cords behind the wall is a small expense but it makes a room look cleaner and brighter. Buyers want the ideal home and if they see cords along the wall it breaks the fantasy in their minds. 2. Unkempt yard. First impressions are lasting impressions. The first thing someone sees when they drive up to your home is your yard, so you want to make sure it looks tidy and maintained to make the best impression. 3. Dingy front door. On the same note as before, painting or power washing your front door can make all the difference to a buyer’s first impressions. 4. Animals. Many people have pets that they love, but a buyer might have a sensitive nose. They may smell a dog and not want to come into the house. Sellers must also be very cautious of pet odors because although we may be unable to smell it, other people can. You can eliminate pet odors with plug-in filters, just make sure you do not make it too overpowering for the same reasons. I recommend storing all pet toys and beds while showing a home, as well. “Sellers must be very cautious of pet smells because although we may be unable to smell it, other people can.” 5. Cobwebs. I know that it’s silly to think about, but if your house has a bunch of cobwebs or dust lying around, someone may think you are not there often, which puts you at a disadvantage. Some people may think that they can negotiate because you are a desperate seller. Have someone come through your home occasionally to remove the cobwebs and give you the best chance of a full-priced sale. 6. Poor furniture arrangement. Buyers want to imagine where they are going to put their furniture. If you have bigger pieces, consider minimizing the furniture in the room to make that room appear bigger and streamlined. Don’t be afraid to rearrange a room to look more organized. The new arrangement may not be functional for your family but if it’s a standard arrangement, buyers will be open to imagining their own arrangements. We can also help with staging if you prefer to use staged pieces rather than your own. 7. Junk drawers and crammed cabinets. I feel it’s acceptable to have one junk drawer, but any more and people will wonder if the house is going to be big enough for them. Cleaning out clutter and keeping drawers and cabinets tidy opens space in your home, making it spacious for buyers. 8. Overfilled closets. Anything that is out of season can be stored away so that the closet is not as stuffed. Remove any excess hangers and clear the bottom of the shelves because buyers always look in the closets. They want to make sure they have enough room for their shoes and other items and having a tidy space for them that is functioning but not over-filled is the perfect way to grab their attention. 9. Cluttered countertops. We all love our coffee or tea in the morning, so keeping out a kettle or a coffee pot is okay but storing away any extra appliances and knick-knacks creates extra space. The buyer can see how much counter space they can potentially have to prepare food and entertain. It’s all about playing into the buyer’s fantasy home. If you have any additional questions or are interested in buying or selling, please feel free to contact me. I look forward to speaking with you soon.

Today we’re going to go into the details of the costs of selling your home. If you’re ready to get your property out there, these are some of the costs you can expect: 1. Paying for upfront repairs. This isn’t always the case for home sellers, but more often than not, it is. When I visit a home for the first time, I look for any glaring repairs that need to be done before listing. This will ensure the home is shown in its best light. I’ll make recommendations for staging as well. 2. Commissions. You can anticipate an average commision rate of 6% to 8% depending on the type of service you opt for. 3. Closing costs. Depending on the state you’re in, closing costs may vary. In Pennsylvania, these costs are split 50/50 with the buyer. That would include a transfer tax, a mortgage and deed recording tax, etc. If you’re in New Jersey, the seller typically pays that transfer tax on their own. “You may incur additional repair costs after the buyer inspects the home.” 4. HOA fees. If your home is a condo or part of an HOA, you are going to have to order a resale certificate and association documents for the buyer prior to closing. This is an upfront cost you’ll have to pay. 5. After-repair costs. After the buyer has had their home inspection, it’s possible they might ask you to repair certain items or ask for a credit for those repairs. 6. Payoffs. If you have a mortgage, any kind of lien, or utility balances, you’ll need to pay those off at closing as well. 7. Moving expenses. You might have to pay for some storage as well. 8. Cleaning expenses. Those are the basic costs of selling your home. If you have any questions or want to discuss any of these things further, don’t hesitate to give me a call or send me an email anytime. I look forward to working with you.

I have a few tips to share with you that will help you upgrade the outside of your home. Whether you’re selling your home or making sure it’s well-maintained heading into spring, here are a few tips that will help you upgrade its exterior. First, replace or clean the siding. Take a look around the outside of your home and search for any damaged siding that needs to be replaced. Also, spray off any dirt or mold or consider hiring a professional to power-wash your home. Next, keep an eye out for any dry rot, especially around door and window frames. Scrape off any peeling materials, sand, and/or paint to make your home more attractive to buyers. If you have any roof damage, have it repaired before putting your home on the market. If your concrete is in disrepair, that could become a hazard, so consider having any broken or uneven concrete fixed. “A fresh coat of stain can go a long way.” If you have a deck or patio, keep that clear of any debris. A great way to give these areas a great new look is to have them power-washed. If they’re made of wood, a fresh coat of stain can also go a long way. Fences can sometimes fall into disrepair and give your home a shabby look, so make sure you have any missing boards replaced and painted or stained to match the rest of the fencing. Your gates should also open and close smoothly. If you haven’t kept up your home’s maintenance or you have doubts about its condition, you can always get a home inspection done before listing to give yourself peace of mind knowing it will sell without any issues. If you’d like more tips on how to upgrade your home’s exterior or you have any other real estate questions I can help you with, don’t hesitate to reach out to me. I’d be happy to assist you.

Here are six tips I always share with my clients that can help you drive your home sale to success. 1. Price it right. You don’t want to overprice your home, because you won’t attract enough buyers to actually show up and look at the property. Most buyers have search ranges, and if your home is over their range, they won’t even take a look at it. It will also hurt you in the long run because if you price the home too high initially and you have to keep reducing that price while the home sits on the market, buyers will be suspicious of it and wonder what’s wrong with it. 2. Understand buyer preferences. If your house has multi-colored bedrooms with many different types of furniture, that might not be very popular among the buyers of today. You might be better off switching things to a more neutral color. Your agent can certainly help you with this kind of thing. 3. Stage and declutter. Make sure someone walking into your home can envision it as their home. If you have lots of clutter and personal items lying around, that will make doing that hard for them. Don’t forget to declutter your closets too, because buyers always check those to make sure there’s enough room for their stuff. “Make sure someone walking into your home can envision it as their home.” 4. Repair any pet damage.Oftentimes, dogs and cats can leave scratch marks around doors and door frames, so make sure that kind of thing is repaired. You also want to check for smells. It’s hard to notice your own house’s pet odor, but buyers will definitely notice if a house has a dog or cat smell. That being said, don’t overpower the house with potpourri, because that can give off the wrong impression as well. 5. Enhance the home’s curb appeal.This can be tougher in wintertime, but you want to make sure anyone approaching your house sees a clean driveway and walkway and a sharp exterior. In springtime, it’s a good idea to plant some flowers. 6. Focus on marketing. Roughly 99% of all buyers today look online when searching for a home, which means the first thing they see are photos. You want to make sure those photos pop and impress them enough to want to see your property in person. If you have any more questions about how to drive your home sale or you’re thinking about buying or selling a home soon, don’t hesitate to reach out to me. I’d be happy to help you.

You should never ask a magician their secrets, but I don’t feel the same way about real estate. Today, I’m going to clue you into a couple “magician’s secrets” of real estate by providing you with insider questions you should ask a potential listing agent when making your decision about who to work with. 1. What is your average sales-to-list price ratio? When you sell your home, you’ll decide on a price for it. Ultimately, you want your home to sell for at least that price, but it could also sell for less. The market average right now is about 92%, but here at the Salas Team, we actually sell with a 96% sales-to-list price ratio. But not every agent is built the same, and some agents will only sell the home for 80% to 85% of the original list price. Ask this question to make sure that your agent meets the industry standard. 2. What is your marketing strategy? For instance, do they stage the homes they’re trying to sell? You want an agent who is experienced and can tell you what a potential buyer will want to see so that you can prepare your home to sell for top dollar. Do they use professional photography? Never settle for an agent who uses their iPhone or Android to take pictures of your home. A good agent should have someone on staff with professional equipment and and experience. “Look for key indicators of success, such as how many houses they’ve sold.” Do they have a strong social media presence and knowledge of online advertisement? In our social media-driven society, it is so important to be up to date on the latest internet technologies. You can access demographic information to predict who is most likely to be looking for a house. They should have a properly segmented database, and use Facebook and Google advertising to their best advantage. Do they do circle prospecting? Your agent and their team should be calling around the neighborhood to ask if anyone is thinking of buying a house. This is critically important in a market with tight inventory. You want an agent who will proactively market on your behalf. 3. What is your success rate? Look for key indicators of success, such as how many houses they’ve sold. The average agent sells about three homes a year. The Salas Team, however, has repeatedly sold 150 homes a year. An agent who sells many homes has the experience to be able to advise their client in the best way. 4. Are you part-time or full-time?The popularity of real estate shows like those on HGTV has brought a lot of people into the market thinking that it’s a flexible career. But a part-time agent isn’t good enough for you. This is, in many cases, the biggest financial transaction in your lifetime, and you’ll want someone who knows what they’re doing and can devote their full attention to your needs. Asking these questions is a great way to get a look at how experienced the agent is and whether or not they have the level of expertise you need in order to satisfy your goals. If you have any questions for us, we’ll be more than happy to give you answer. Feel free to reach out to us by phone or email.

What are the seven habits of highly effective homebuyers? If you’re ready to enter the market and start looking for your new home, here are some great tips to get you started: 1. Get pre-qualified. Be ready to buy as soon as you find the right home. Sellers are going to want to see a pre-qualification letter to know that you are truly capable of purchasing the property. You should become pre-qualified before even beginning your search. 2. Define your “must-haves,” your “like-to-haves,” and your “don’t-wants.” At our buyer’s consultation, my team and I will go over these things with you. It’s important to determine what you’re really looking for in a home. Once you do, you can break down those desires into the categories I mentioned earlier. 3. Be realistic. Today’s market is short on inventory. With that being the case, buyers simply won’t be able to lowball sellers. 4. Be open and flexible. As a buyer, you won’t always get everything you want. It’s certainly good to focus on what you want and don’t want from a property during your search, but try not to expect the perfect house. Remember that you can always change things after you move in. Don’t get caught up in trying to find a home that’s already perfect. “Don’t get caught up in trying to find a home that’s already perfect.” 5. Understand the home buying process. Our team wants to help you understand what you can expect. When you meet with us for a consultation, we will walk you through every step. 6. Be responsible and maintain your credit. I can’t tell you how many times I’ve had issues with buyers paying off some major debt right before closing. It might sound counterintuitive, but paying off a loan or a credit card right before you close can actually sink your credit. Also, hold off any major purchases until after closing. 7. Have fun with the process. My entire team and I truly want you to have the best home buying experience possible. If you let us help, we will make sure the process is as smooth and as enjoyable as it can be. If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.

Today, I’d like to share three easy steps for selling your home. The first step I recommend is planning. When it comes to selling, a lot of mistakes can come from a lack of preparation. If you take the time to plan things out, you will be more successful. This goes for selling a home, as well. One thing to consider is when and where you move. If you have children in school, you may want to think about which point during the school year you want to make your move. Part of the planning process means having your real estate with you for at least 30 to 60 days before you plan to sell. In this current climate, it could take 30 to 45 days to find the right buyer. And even once you’ve found a buyer, it could take an additional 30, 40, or even 60 days to actually close. You really need to plan for this amount of time in order to be successful with your home sale. “Taking the time to plan things out will greatly benefit your listing.” The second step has to do with first impressions. When it comes to selling houses, first impressions matter. The first 30 days of the process are especially important. Some of the ways you can make sure your home gives off the right impression to buyers are by neutralizing and decluttering. Also, be sure to have a professional take the photos for your listing. The third and final step is to make sure you price it right. I know you probably hear this tip over and over again, but it is so critical in today’s market. The strategy of pricing a home high and waiting to negotiate down simply isn’t a good idea. All that does is lead to more haggling. In order to price your home right, you should take the time to do a comparative market analysis. My team will perform this for you by sitting down to really examine your home and the competitive landscape around it. If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.

My team and I wanted to take a moment to thank all of you for the love and support you’ve provided us with over this past year. Our success in 2017 wouldn’t have been possible without you. From our family to yours, happy holidays. May the season be merry and bright for you and your loved ones. To hear our full message, watch this short video.

Have you ever wondered how a real estate agent comes up with the property valuation for your home? Are you thinking of putting your home up for sale, or would you like to get it out on the market? Today, we’re going to talk about the four general ways to obtain a property’s value. 1. Look at the assessed value. The assessed value of a home is the value assigned via the county tax records.Typically, this isn’t a great number to use because it could be an assessed value on the land alone, or it could be based on land and improvements, even though the improvements were made many years ago. 2. Online valuation tools. Everyone asks me if the Zillow valuation tool called the Zestimate is accurate, and my answer is no. Online valuation tools average prices that have sold in your area, but oftentimes they’re looking at county records or MLS records. There’s a lot of skewed data in those records. They also don’t look at apples-to-apples comparisons, meaning that if the home next door with less square footage than yours sold for less than your home, they’ll still compare the two homes, which could negatively affect the valuation. Let’s stay away from those Zestimates. “Online valuation tools average prices that have sold in your area, but oftentimes they’re looking at skewed data from county records or MLS records.” 3. Obtain an appraisal. This is actually a great start, and I often ask my clients to get an appraisal for their homes. The good thing about them is that they do look at the homes in your neighborhood that have recently sold, the layout of the house, and they also do apples-to-apples comparisons. However, an appraiser is only going to look back six months. They don’t look at market conditions or trends. 4. Obtain a comparative market analysis (CMA). This is the best way to get an accurate analysis of your property. Performed by a real estate agent, a CMA will look at what has recently sold in your neighborhood within the last six months to a year depending on the market today, as well as what’s currently available. Understanding the market trends is important, and if it’s a hot market in which things are selling quickly, then certainly your home is going to be worth more. What’s more, by pricing your home correctly, you’ll certainly sell it quicker and for more money. If you have any questions about selling real estate in general, or if you’re thinking about buying or selling a property, feel free to give us a call. We’d be happy to speak with you.

There’s a lot of debate in the real estate world about whether it’s better to list a home during the spring and summer months or during the fall and winter months. For sellers, there are pros and cons for each season. In the spring and summer months, homes look better and have better curb appeal. The days are also longer, so more buyers will be able to look at your home during longer periods of time. Sellers can also be pickier about which offer they choose during the warmer months because there are more buyers out and about. One of the downsides of selling during the spring and summer months, though, is there are more sellers to compete against. Because there are more sellers, buyers can afford to be pickier as well. “Houses sell all year round.” Selling in the fall and winter months means there aren’t as many buyers, but the ones that are active are far more motivated to buy and will typically come with stronger offers. You’ll also face less competition from other sellers. Snow and other inclement weather can lessen a home’s curb appeal, however. You might also come across thriftier buyers who will try to lowball you because they assume the fact that you’re listing during the fall and/or winter means you’re more eager to sell. In my experience, if you price your home correctly and you have the right agent in your corner, you can extract the right value for your home at any time in the market. Remember—houses sell all year round. If you have any more questions about our market or you’re thinking about buying or selling a home soon, don’t hesitate to give us a call. We’d be glad to speak with you.