Are you thinking about selling a home that you have rented out for some additional revenue? If so, you’re likely trying to discern how to best inform the current tenants and conduct the sales process in a way that works well for all of the parties involved. In today’s blog post we’ll explore how to sell your home while you’re renting it out to tenants and share three tips that can make the process a bit easier.
#1: Review Local Laws and Your Tenancy Agreement
First, you’ll want to break out your tenancy agreement and download any state, provincial or municipal laws that apply to landlord-tenant relations. Selling a home with renters living in it can result in a number of sticky situations. You’ll want to ensure that you conduct yourself in accordance with the rule of law as you may end up in court if the process goes sour. OR CALL ME and I will do that leg work for you!
#2: Communication is a Vital Part of the Process
Next, you’ll need to ensure that you’re communicating with your tenants every step of the way. Be polite but firm; you don’t want to encourage any hostility but this is your property and ultimately, your decision.
Don’t forget to fully inform your tenants as to how home showings will work, as they’ll likely be concerned as to who is being provided with keys to their home.
#3: Incentives Can Sway an Unruly Tenant
Finally, if you’re faced with some unruly tenants that are making the sales process challenging you may find that financial incentives to help the process go smoother. You’ll need their cooperation in keeping the home relatively clean and tidy, so you may want to consider offering some gift certificates or paying a portion of the rent in exchange for their help. If you’re hosting an open house over a weekend, offer to put their family up in a nice hotel somewhere in town where they can enjoy a weekend together.
While selling a home with tenants living inside is rarely easy or fun, it’s certainly doable. When you’re ready to learn more about the home selling process, GIVE ME A CALL, to leverage my expertise and guidance to ensure you get the most from your sale.
Whether or not you’ve been looking into selling your house for a while, there’s a good chance you’ve heard the buzzword ‘renovation’ and considered how it can positively impact the value of your home. From upgrading your kitchen to painting, there are plenty of renovations that will do wonders in terms of your property’s price on the market, but there are a few that can actually have the opposite effect so you’ll want to be leery of the following fix-ups.
Cool Colored Tile
If, at one point, you installed a bunch of brightly colored tile into your living room or kitchen to add a bit more life to your home, it’s possible this is the type of renovation you may come to regret upon resale. Often times, when it comes to purchasing a home, buyers will be looking for something they won’t have to renovate right off the bat, so a flashy feature can have a marked effect on the selling potential of your house.
An Unflattering Paint Color
You’ve probably heard all about the power that painting has to revamp the look of your home, but the wrong tint of paint can actually have the completely opposite effect. Instead of opting for bright or risky colors, ensure you stick to neutrals that will coordinate in a flattering way with your furniture and flooring. A bright color can certainly make for a memorable impression, but it can also obscure many other good features if it happens to be too much.
Adding On Another Bedroom
It can often be considered a great benefit to have a house with multiple bedrooms. However, if you’ve condensed the size of one room to create an extra bedroom that’s little more than miniature, it may not have the impact on your price-point you envisioned. Instead of focusing on the house that you don’t have, play up the positive features of your home and the ideal buyer will come to you – and hopefully with the offer you’re looking for.
Renovating your home is a good idea if you’re planning on putting it on the market, but adding on another bedroom or choosing a garish color of paint might not be worth the cost you’re going to pay. If you are planning on putting your home on the market in the near future, give me a call today!
When delving into the world of real estate and investment property, there are many terms that will come up that require further explanation. Whether you’ve never heard the phrase ‘home equity’ before or you have a little familiarity, here are the ins and out of what it means and how this asset can help your financial outlook.
It’s All About The Benjamin’s…& Home Equity
Essentially, home equity refers to your portion of the value of your home, and the amount of this figure is important because it is included among your assets when determining your net worth. If this sounds confusing, think of it this way: if you have completely paid off the cost of your home, the value of your home equity is this total amount. Of course, because most people seek a lender to borrow money from when they purchase a home, their home equity would consist of their down payment and whatever amount they’ve paid down on the mortgage since purchase.
To provide further clarification, let’s use the example of a house that has been purchased for $300,000. In the case that a down payment of 20% has been provided at the time of purchase, the equity in the home would be $60,000. Since this amount is the percentage and cost of the house that’s been paid down, this is the amount of the house that is actually owned and this will be figured among an individual’s assets.
How Home Equity Works
As you pay the amount that you owe on your home each month, you are paying off your total debt and thereby increasing your equity. Since this amount of money is considered an asset that belongs to you, it can be used down the road to buy another home or invest in other important things like education or retirement. While paying off the amount owed on a home is a considerable investment, if the value of your home increases, this means that you’ll still owe the same on it but your home equity will have automatically increased.
As an asset that is part of your financial net worth and can be used down the road to fund other investments, home equity is a very useful term to know when it comes to purchasing a home. If you’re on the market for a home and are considering your options, give me a call for more info…
There can be many downsides to both renting and buying, depending on what side of the coin you are on, but if you’re leaning towards purchasing a home it can have added benefits for your bank account that renting does not. While renting can certainly alleviate many of the costs that go along with property ownership, here’s why purchasing a home can have positive monetary affects in the long run.
The Good Impacts of Inflation
While inflation is often seen as a dirty word, a real estate purchase can see the positive side of inflation with how your home purchase investment will grow over the years. Putting money into rent will mean that money is gone and out the window once you’ve paid for the month, but investing into a property will come back to you in future gains that are made in the real estate market. While buying a home will be more expensive in the short term, it can also provide you with greater financial flexibility and equity in the future.
Renovations Will Increase Home Value
While changing up the bathroom or the paint on the wall in your apartment isn’t going to add any extra lining to your wallet when you move out, making upgrades to a home that you own will have the very opposite effect! Renovations can certainly be unpopular while they’re taking place, but no matter how small or large, they can mean an easier sell and a higher profit when the home finally goes on the market.
The Opportunity For Rental Property
An apartment you rent won’t offer opportunity for investment if you’re away from your home for an extended period of time, but a home you own may serve as an ideal investment property at some point in the future. With the success of Airbnb and unique modern housing needs that may only require a home rental for a short period of time, being able to use your house as a rental property can be a significant boon for earning money you would have otherwise been without.
Buying a home can require a lot of number crunching in the beginning that rent does not, but it can also provide significant financial benefits down the road that might not exist without such a purchase. If you’re considering purchasing a home in the near future, you may want to contact your local real estate professional for more information.
What do buyers and sellers need to know to be smart about the housing market in 2016?
Realtor.com® released “Top Tips for Home Buyers and Sellers in 2016” to help guide house-hunters and home sellers on what’s most important for buying and selling a home this year. Here’s what they had to say.
Top Tips for Buyers in 2016
- Don’t wait. More than 85 % of buyers who say they plan to buy a home in the next year say they will wait until the spring or summer of 2016, shows a recent realtor.com® survey. But buyers who start their hunt early will likely face less competition and have just as many homes for-sale to consider.
- Shop around for a mortgage. Buyers shouldn’t take the first rate-quote they receive and should talk to more than one lender. A lower interest rate could equate to thousands in savings over the life of the loan. Mortgage rates are largely expected to rise over this year. Realtor.com® is predicting mortgage rates to reach 4.65 % by the end of this year (they’re currently just under 4 percent).
- Don’t discount buying new. New-home construction is expected to surge this year, with an expected 16 percent increase in new home sales year-over-year. Buying new most likely means less competition and a wider selection of homes.
- Don’t underestimate the value of hiring a GREAT Broker or Agent to represent you!
Top Tips for Sellers in 2016
- List during prime-buying season. Realtor.com®’s data shows that the prime home buying season usually begins in April and reaches a peak in June. “Sellers who list their home during the prime spring and summer months benefit from a larger population of buyers and potential bidding wars, which often result in higher prices and faster closings,” according to realtor.com®’s report.
- Price to sell. Home prices nationwide are expected to rise 3 percent year-over-year. Home sellers would be wise to take their local REALTOR®’s advice to price their home adequately for the market and based on comparables.
- Consider an incentive. Is there something extra a seller could throw in to entice buyers? Sellers who are open to negotiate beyond just price may find more success in hooking a buyer. Thirty-seven percent of all sellers offered some type of an incentive last year.
- Sell in California. The Golden State is being singled out as having the most markets that will likely tilt in sellers’ favor this year. Job growth, rising home prices, and limited inventories are boosting housing markets in the state!
Source: Move Inc.