Guide to Real Estate Investments
Investing is an excellent means of multiplying your wealth. And while there are many investment options that an individual can venture in, real estate offers one of the most lucrative investments with more advantages that outweigh the risks. Investing in landholdings has its tax advantages, and you can also leverage the property to expand your wealth.
In definition, real property consisting of the land and building erected on it including all the natural resources within it. These can be livestock, untouched flora and fauna, and mineral deposits.
When speaking of landholdings, most people look at it from the perspective of residential homes only. But the industry can be classified into three categories: residential, commercial and industrial properties.
Reasons Why You Should Invest in Real Property
Unlike personal property (including tangible assets like stocks, bonds, and other chattels), investing in a plot has several benefits. Below are some of the reason why most people invest in landed property.
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High-Margin asset value.
Personal property such as stocks can hit rock bottom prices while a new car continuously depreciates in value. There will always be value in real estate, you will just need to learn where your investment is best put. So as with any property developed on it.
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Diversify Your Portfolio
Most financial planners encourage investors to diversify their investments portfolio. When you buy a home, you acquire a safe, tangible asset, while expanding your portfolio. Through diversification, you spread out your investment risks across many sectors.
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Tax advantages
You can get several tax benefits on mortgage interest, cash-flow accrual from investment properties, lower operational cost, insurance, property tax and depreciation among others. Talk to your local Tax professional for advice before making any investment in which you may have tax interests. Real estate agents may know a little of the general tax information, and may even be able to give you estimates, but Realtors are not tax professionals and can not give tax advice.
Hiring a Real Property Agent
In the landholdings industry, there is a vast pool of agents. That makes it a challenge to find the best agent who can take you through the search process, until you know what home is right for you. Unlike popular opinion, a qualified agent is not the one who makes the highest deal, but one who listens and conducts themselves ethically. Read on to learn the tips of finding a qualified agent.
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Do an Online Search
Many online sites refer agents to potential clients, but with no certainty of quality. Usually, these agents are listed because they have met the financial obligation of the site owner. To hedge your bet on finding a qualified professional, search online for real property companies within your local area. Visit their website, detailing their experience in the industry, as well as the consumer reviews. Be cautious of review though. Many real estate agents fall victim to a competitor who somehow manage to get a bad review posted. In any negative review, confirm its validity by clicking on the profile of the reviewer and look for previous reviews the person may have given. If it looks fishy, or if they’re all bad reviews, then you should disqualify that reviewer.
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Monitor neighborhood signs
Always take note at the neighborhood sign on a property on sale. Check the day they go up, and the day they are written: “SOLD.” The company that seals deals on homes quicker is the best for you than an agent whose properties are always “ON SALE.”
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Ask for Referrals
Your friends and family are a good source of recommendations. Try finding other real property agents who can offer referrals too. Agents are always willing to provide recommendations on other associates, especially those who deal with an entirely different landed property fields.
Home-Selling Process
Selling a property is not a decision that a householder can make on a whim as there are many mistakes that can arise. Understanding the nitty-gritties regarding the best market price for your home with the least hassle requires adequate planning. Read on to understand what preparing a home for sale entails.
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Know Your Property’s Market Value
There are many ways through which homeowners can gauge the value of their homes. They get fliers via mail, go to open houses or check online for homes under sales. However, when it comes to real estate marketing, you need to understand the price that home shoppers are willing to spend on the open market.
The best way of finding out market value is by letting an agent take a look at the home. Consequently, they’ll perform a Comparative Market Analysis (CMA). After that, they can offer you information about recently sold homes and an informed estimate of the value.
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Prepare Home for Sale
Preparing your property for sale can also mean a large or small makeover! Little changes to highlight the best features to sell the property. Also referred to as home staging, this practice emphasizes on a home aesthetics by reducing clutter (putting items in a storage facility), redecorating, adding or a variety of other little tweaks and twists to make your home look like it’s worth top dollar. Many home sellers invest in spray foam insulation as well as other efficiency items to increase their home’s value on the open market. But staging can also mean having to remove some of your own personal property, and sometimes things that are personalized, or otherwise may distract from the home showing its own appeal.
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Start Monitoring Comps
Monitoring the comps mean you get deeply acquainted with the real estate market. Try and attend as many open homes as possible to get a real feel of what needs to be done to sell a home.
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Have a Working Deadline
You and your agent should agree on a date to finish up the preliminary work and get the property listed. The property should be open-house prepared, for photography purposes, at least. Photos offer potential buyers a virtual reality tour of the home and should always be of the best quality. When your property is first listed, if you’ve got all the proper things in place, something you Realtor can help with, you’ll have your best chance at a quick sale right away.
There’s nothing harder than spending months on the market without a buyer. It’s always a good idea to work with an experienced local Realtor who can help you plan your best strategy to a quick home sale. Happy selling!
