Monthly Archives: April 2018

FSBO 101: Browsing For Sale by Owner Homes

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FSBO 101: Browsing For Sale by Owner Homes

A great part about life is that there is usually more than one way to get something done. And this is certainly true of finding real estate. Not all homeowners go through a REALTOR® when trying to sell their home. There is such a thing as For Sale by Owner properties (FSBO for short) and they can actually be a great way to find your next home. Many have found that the experience can be positive. The only challenging part can be trying to find these sorts of listing. Here’s how to utilize FSBOs to your advantage.

Narrow Down the Neighborhood

The first step in finding FSBOs is narrowing down the neighborhood you’d like to find property in. Look for and list desirable “maybes” in different areas and check to see if the home values are in your budget. Also include school ratings if you have children.

Ideally, talk to a friend who either lives in one of your target areas or knows someone who does. Do your research. See what you can dig up about the area, especially in regard to day-to-day life (i.e. if it is a noisy neighborhood, etc.).

Choosing a neighborhood is very important because you want to be happy and feel good about living there for what is likely to be a long period of time.

Finding a Property

Once you’ve got the location narrowed down, it’s time to start locating properties you’d like to buy. You can use online real estate sites to help you find a few that you like. Once you’ve found that one property you like, then you can either use a REALTOR® or go talk to the homeowner yourself. One of the best ways to finding FSBO properties is to go online. There are more than a few sites out there that specialize in such real estate listings. Many of these sites only list FSBO properties, making your search much easier.

Even though you can purchase directly from the seller using these sorts of internet sites, it is still wise to have a REALTOR® represent you so that you are guided through the entire transaction process, which is usually confusing. Having a REALTOR® on your side when purchasing FSBO properties also helps you with determining if the sale price is competitive or not while helping you navigate the whole inspection and appraisal process.

A Word of Caution

There are some drawbacks to FSBO properties. Sometimes there is no sense of urgency with the homeowners to move or their finances might hinder and make the entire transaction process longer than it should be. And one of the biggest drawbacks is you don’t know if you can trust the owner or not since they aren’t bound by any code of ethics as REALTOR® are.

The bottom line is there are some bargains and/or great niche properties that you might not find through traditional channels, but having a REALTOR® assist you will simply add an invaluable peace of mind.

5 Tips for Purchasing Investment Properties

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A lot of people are looking into real estate, investing with one eye on the practicalities of it and another on the potential fortunes to be made. Although it is possible for you to get-rich-quick through real estate investments, the reality is most investments are long-term projects. The good news is they can bring significant returns for those who can exercise a little patience.

Like most real estate topics, there is a lot to learn. Don’t feel overwhelmed! Today, we’ll highlight some important aspects when making real estate purchases.

1% Rule

Because it is not common to have the capital to buy a property outright, renting out an investment property is an attractive option. The 1% rule is your gauge to determine the viability of renting a house out. Simply put, you want to ensure that you make 1% per month in rent of the total price of the property.

For example, if you are purchasing a property at $200,000 you would want to rent it for $2,000 a month to be worth your while. 1% per month will generally cover possible expenses the house could cause you within a year’s time. Of course, nothing is perfect. There are always the chances of unforeseen costs, but employing the 1% rule is usually a safe bet.

Know Your Locations

As with all aspects of real estate, location is crucial. It is one of the most obvious things that affects property and house prices, but not the only one. Some properties in higher-priced areas can be more affordable due to the age or condition of the house, and therefore are also great, potential investments. With a little fixing up, you can save some money and increase the value of your investment.

Set Real Goals

The term “real” here doesn’t mean you have to lower your standards, it just infers that you need to understand your own expectations. What is your reason for buying an investment property? What do you hope to get from it? What kind of ROI are you aiming for?

A clear understanding of your goals will better prepare you for every part of purchasing an investment property. Answer the above questions now and save

yourself time and money later.

Fixer Uppers

While it can be risky to buy a property that you know needs repairs, if you are handy you can save a lot of money on your initial purchase and increase its future value if you do a lot of your own repairs.

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with a word of caution, however. Don’t get yourself into damage that is beyond your ability to fix. If all repairs cannot be completed alone and with minimal time, you could end up spending a lot more for repairs without ending up with a property that has a value worth the investment.

Market

 

In addition to being an investor, it helps to exercise some marketing muscle when investing in property. There are several marketing techniques and strategies that you can utilize to woo potential real estate buyers and sellers.

Social media is always an effective means to market anything, and real estate is no exception. If you are trying to sell or rent out a property, let everyone know about it on Facebook and other social media sites you use.

If you don’t like marketing yourself, there are plenty of places to hire marketers to give your property the exposure it needs. And if you want to save some cash and market yourself, here are a few points to remember:

  • Take or get professional-looking photos of the property and house
  • Write an attractive description of the property and post it online with the essential details
  • Encourage communication and include your contact details

Happy Investing…

The final word of advice here is to team up with a real estate agent you trust. They can guide many of the points listed above and offer helpful advice to maximize your real estate investing journey.