Three helpful tips for renting out your home

 

(NewsUSA) – Home ownership has always been a part of the American dream, but that may be changing. 

According to an online survey commissioned by the National Apartment Association, 76 percent of consumers think that renting is preferable to owning a home in today's market.

Likewise, some homeowners believe it's better to rent out their home than to sell it for less than its worth, if they can sell it all. Those considering renting out their property shouldn't make a hasty decision. Neglecting to weigh the costs and potential risks could put first-time landlords in a poor situation. Moco, Inc., a company that provides screening services to property owners, managers and employers throughout the United States, offers the following tips:

* Look at the numbers. Renting might not be the best option. If you're going to lose money each month, it might make more sense to sell, even if you won't get your asking price. Consider all potential costs, including property taxes, income taxes on your tenants' rent, maintenance, and the normal wear and tear your property will experience. Remember that you won't be able to pocket all of the rent money; you will have to put a portion of it back into the property.

* Find quality tenants. Nightmare tenants can be, well, a nightmare. Prepare for a careful screening process. Many private landlords can't access the quality screening products available to larger businesses without going through a lengthy certification process. However, you can avoid time and expense by asking your applicants to visit MyScreeningReport.com. The report includes a consumer credit report, SSN verification, comprehensive criminal search, eviction search, national sex offender registry search and an OFAC (federal terrorism database) search – everything you need to determine whether a potential tenant meets your standards.

* Use an all-encompassing lease. Whether you use a template or hire an attorney to write your lease, make sure that the lease clearly states your expectations. The lease should state who is responsible for what, when you expect rent to be paid and what penalties you will impose if it is late.

For more information, visit www.MyScreeningReport.com.

Which comes first: The real estate deal or the buyer’s list?

 

This question is kind of like another question where people can't seem to agree on the answer; "Which came first; the chicken or the egg"? Real estate investors all have a different opinion when they are asked whether you should find a deal first or start a buyer's list and then find a deal.  For me, the answer has always been "the deal." If you have a great deal, you can always find a buyer for it.

I had someone email me recently that said they had wanted to begin wholesaling houses for a couple of years, but he just couldn't bring himself to buy that first investment property. He was afraid he wouldn't be able to sell it. This man had spent a number of years learning the business, but had become paralyzed with fear over this prospect of putting a house under contract that he wouldn't be able to sell.

If you are just getting started and you find yourself having the same problem, here are 4 tips for you.

1. Know What a Good Deal Looks Like

This is no doubt the hardest part when you are brand new. You almost always pay too much for your first couple of deals. Before you sign on the dotted line, run your potential deal by someone that is an experienced investor. Marginal deals are hard to sell.  If you have any doubt about the numbers or the area where the house is located, just walk away and find another deal. There's always another one around the corner.

2. Know Where Investors Like to Buy

It won't do you any good to get a house under contract at a great price if it is in an area where investors don't like to buy.  Ask experienced rehabbers and landlords where they like to buy. Be sure to find out what types of properties they like, and the price range they prefer. In general, you will be pretty safe in bread and butter neighborhoods; the kinds of neighborhoods for first time homebuyers.  In my area there is a market for more expensive houses, but there are fewer investors in this group.  Buy houses that would work for either a rehab that would be sold to a retail buyer, or a home that would make a great rental and they will always be in demand.

3. Put an Escape Clause in Your Contract

This is vital especially when you are brand new.  Make the deal subject to inspection or partner approval. This is your safety net. It will make it easier for you make offers with confidence.

4. Begin Immediately to Build Your Buyer's List

There is nothing like having a good buyer's list to call or email when you have a property you want to sell quickly. It is truly a wholesaler's secret weapon.  These folks will be loyal repeat buyers if you always have great deals for them, and if you conduct your business with them in an ethical manner 100% of the time.

Implementing these 4 tips will make it easier to make those first offers and get your first few houses under your belt.
Finding a Buyer for Your Deal

There are a number of ways you can quickly find a buyer for the property you have under contract even if you don't have a buyer's list.

You can take the deal to your local REIA group where you will find a group of people that are looking for their next house.  At my monthly meeting, we have a table set up for vendors and for folks that want to put out fliers about properties they have to sell. This is usually the first place people head after signing in.

You could list the house on Craigslist. I have sold several properties there, but I would rather much sell to someone at my REIA group; they are usually more experienced investors.  But even if they are brand new, they will almost always be educated to some degree if you find them at this meeting. Most investors are more than willing to help them if they can close the deal.

Concentrate on getting a great deal, and you can be sure you will find a buyer.

Author: Sharon Vornholt

Sharon's Website: http://LouisvilleGalsRealEstateBlog.com

Boost your home’s curb appeal for a quicker sale

 

Selling a home requires a bit of marketing, some sweat and elbow grease, and a touch of luck. But even in a competitive selling market, it is possible to turn the sign in your front yard from For Sale to Sold so you can move on to your next residence.

First, look at your home as if you were a potential buyer. Drive up to the driveway or the front curb and park, carefully looking at the home as if for the first time. Make note of the beautiful aspects of your home, and also areas that could deter potential buyers. The outside of your home is the first image they will see, both in person, and while pre-shopping online.

One maintenance project to tackle that will really spruce up the exterior of your home is refurbishing the outside woodwork that has been weathered by the sun, rain and snow. If you have a front porch, wooden window edgings or even a back deck, chances are these areas could benefit from new stain for a refreshed and clean look.

Home decks return about 70 percent of their original cost back to homeowners when a house is sold, according to Remodeling Magazine's annual Cost vs. Value Report, but that's only when the decks are kept in top shape. To remove moisture and sun damage and protect your exterior woodwork from further damage from moss, mold and rot, Flood wood care offers an entire wood care system from prepping materials such as deck cleaners to stain. Before prepping your deck, consider if you need Wood Finish Remover to remove latex, oil, semi-transparent and solid stains, or if your deck is unstained, you may need Wood Brightener/Cleaner to bring the old and faded gray coloring back to a fresh new wood appearance. Finally, apply a Flood wood stain to your deck and woodwork to give it a beautiful look that will have home buyers and your neighbors impressed.

In addition to your exterior woodwork, also take a look at your siding and gutters. Vinyl and aluminum sidings can collect dirt and look dingy after a season or two. Use a power washer on the siding and gutters to wash away the grime and spider webs and bring some vibrancy back to the outside of your home. Also consider adding season-appropriate flowers, plants or landscaping or replacing gutter downspouts with decorative chains to give your home an artistic look.

Finally, take a close look at your exterior lights. Glass-enclosed lights can become filthy from all the elements, so take a quick moment to wipe them clean with glass cleaner. If your light fixtures are tarnished, or looking run down, purchase a can of spray paint in any complimentary color to the exterior of your home and freshen them up. It will make your lights appear new in no time at all.

These quick-fix projects will boost the look of your home both for prospective buyers arriving at your front door, and also in the photographs visible online. With this better exterior appearance, chances are you'll be able to sell your home much quicker.

Is your new home safe and secure?

 

"As we approach Home Safety Month in June, there is an urgent need to educate families about fire safety," says Kate Carr, president and CEO of Safe Kids Worldwide. "Fire and burns remain a leading cause of unintentional injury and death for children, particularly those under the age of 5. Replacing older smoke alarms is a simple way for parents to help protect their families."
More than two-thirds of residential fire deaths occur in homes without smoke alarms or with non-working alarms according to the National Fire Protection Association. One in four families with homes built prior to 2002 is at risk due to aging (10 or more years old) smoke alarms, according to a recent survey from Kidde.
Is%20your%20new%20home%20safe%20and%20secure%3FFire experts recommend replacing alarms every 10 years as older smoke alarms may not operate efficiently and often cause nuisance alarms. By the time a smoke alarm is 10 years old, it has a 30 percent chance of not alarming due to age-related factors such as accumulated dust, insects and airborne contaminants, according to a Kentucky Injury Prevention and Research Center study. If you don't know how old your smoke alarms are, or if you know they were installed more than 10 years ago, it's replacement time.
Additionally, the survey found that most American families are under-protected when it comes to fire safety. Sixty-seven percent of respondents have four or fewer smoke alarms in their homes, but the average U.S. single-family home should have at least five alarms.
When replacing your home's alarms every 10 years, look for smoke alarms with a 10-year sealed lithium battery that will keep your alarms powered for a decade. The alarm will never need its battery replaced during its useful life. Or, select a combination smoke and carbon monoxide alarm, which offers a voice warning and uses the latest technology to help minimize nuisance alarms that often occur when cooking.
As you prioritize your move-in to-do list, remember that an ounce of prevention today could save a life tomorrow.

Five reasons why buying a home is still a good idea

 

* Homeownership can help make good credit even better. If your credit is in poor shape, you'll want to monitor it before seeking a mortgage. But if you have good credit, live within your means, and consistently make good financial decisions, a mortgage can be the kind of "good debt" that helps your overall financial health. Making regular payments on a mortgage shows potential lenders that you're a less risky candidate for a home loan. Before you begin home shopping, it's a good idea to check your credit. Enrolling in a product like freecreditscore.com can help you better understand and leverage your credit.
* A mortgage can function like an automatic savings plan. By now, you've read the news reports about how little we Americans save these days. Well, every year you pay on your fixed-rate mortgage, is a year of building equity, and equity is like money in the bank. When it's time to sell – whether you've stayed in your home seven years or the full 30 year term – you'll have created equity and should be able to sell your house for more than you owe.
* Homeownership comes with plenty of financial perks, including an income tax credit for property taxes you pay on your home. For detailed information on tax breaks check out IRS.gov. Buying a home also affords you the opportunity to halt your housing costs. Rent will always go up from year to year, but if you have a fixed-rate mortgage (avoid adjustable rates) your biggest annual expense – housing costs – will be locked-in.
* Mortgage interest is a good deal when stacked up against other types of interest that don't do much for you – such as high credit card interest rates or low rates on savings accounts and CDs. Mortgage rates are low right now, meaning you can pay less over the life of a loan than at practically any other time in recent history. Plus, it's the only kind of interest that you can deduct from your taxes.
* Prices are still relatively low and inventory is high. It's been a buyer's market for a long time, but that's going to change. The question is: when will the market start to improve in your area, taking home prices with it? You'll have to do some legwork and astute research to determine when is the best time for you to buy.
If you monitor your credit and are on a sound financial footing, buying a home can still be a good idea. And now is as good a time as any to make your purchase.

Three ways to give your home’s curb appeal a boost

 

From simple upgrades to meticulous landscaping projects and replacing an outdated roof, there are dozens of options to enhance the appearance of your home's exterior. Improvements don't need to break the bank or take a year to complete. By focusing on three simple areas, you can change the entire look of your home that you'll appreciate every time you pull into your driveway.

1. Landscaping

The key to curb appeal is balancing what makes you happy with what works in your community. Take a moment to observe the types of trees, plants and flowers in your surroundings and look for ways to incorporate them into your yard.

Planting flowers is one of the easiest, most cost-effective ways to make an impact. Flowers along the sidewalk, in front of the house, inside flower boxes, pouring out of hanging baskets, or even in berms and raised garden beds, provide a giant boost to your curb appeal. Exercise your creativity by combining plants of different height, texture and color in the same container. By sticking to perennial plants native to your environment, you will not have to worry about replanting every year.

2. Roofing

Redesigning the style and color of your roof is a dramatic and effective strategy for improving curb appeal.

"Your roof accounts for 50 percent of your home's exterior," says Stephen McNally, vice president of sales and marketing for TAMKO Building Product, Inc. "Updating the shingles on your roof is going to make a huge impact on the overall appearance of your home – take advantage of it."

Start by evaluating roofing choices for compatibility with your existing siding as well as the style of your home. If your home has a busy exterior with more than one contrasting color, try adding a classic, rustic color like TAMKO's weathered wood. The shingle's subtle blends of color and wood-like appearance complements nearly any exterior paint color.

If your home's exterior is a more neutral shade, try adding a vibrant colored shingle to stand out in your neighborhood. TAMKO has a large selection of classic and vibrant shingle colors and styles to meet any need. To learn more visit www.tamko.com.

3. Paint

Whether you're updating your color scheme or applying a fresh coat, painting is an easy way to update your home's look from the street in a big way. Depending on your budget, this project can be big or small. To make the most significant impact, consider painting the entire house. This will bring new life to paint that has lost its luster or possibly a new palette of color to incorporate into your yard. Although this project can call for a larger investment, the result will pay off in the end.

If your budget is more limited, focus on the areas that catch the eye. Give shutters and trim a fresh coat of paint, or paint the front door a bright shade of red or blue.

You don't have to make a large investment to make a large impact. Focusing on key areas of your home's exterior will refresh the entire appearance of the home and provide a facelift that's within your reach.

How to think like a buyer when getting your property ready to sell

 

The house is finally done after a whole lot of "blood, sweat and tears", and now it's time to get your wholesale flip "retail buyer ready". Real estate investors all have the same question at this point; how can I make my house stand out from the other homes for sale in the neighborhood? The answer is quite simple. Your home has to make a better first impression than your competition. Your potential buyer has to want to come inside from the moment they drive up to the house. So how do you do that?

Learn to think like a buyer!

Curb Appeal Is Everything!

Pay special attention to the landscaping and keep the grass cut and trimmed while your house is for sale. If you are selling during the summer months, extra watering may be needed to keep the lawn in tip top shape.

    Give your yard a manicured look. It will really pay off to spend a few dollars to have the plants neatly trimmed, the planting beds weeded, and fresh mulch put down. A great touch is to put brightly colored flowers near the front of the house. You might even want to add a couple of pots of flowers at or near the front door well give it an extra touch. Be sure to pick plants that don't need daily watering.

All your windows should be sparkling clean on the exterior as well as the interior.

Take a good look at your front door. Does it need a fresh coat of paint or maybe just a good cleaning?

Spend a few dollars and replace your old mailbox, then add some attractive house numbers. These simple things will give your house a polished look.

Make sure your deck or patio in the back yard is neat and inviting. You want your buyers to be able to imagine entertaining or just relaxing in this space at the end of the day. A power washer can be rented for about $40-$50 dollars if heavy duty cleaning is needed. Go ahead and power-wash any siding on your house at the same time.

Store all garden equipment and trash containers out of sight.

Look at the interior of the house through "buyer's eyes"

Have a professional do a thorough house cleaning when the house is finished, paying special attention to the kitchen and the bathrooms. Remember these are the rooms that sell houses!

Make sure all floors have been cleaned and are in good condition. This also applies to any carpet that hasn't been replaced.

Give the house the "sniff test". Does it smell good?

Buyers don't want to have to paint before moving in, so be sure the house is painted in neutral colors. Painting the trim a crisp white makes the home look modern and inviting.

Home staging always pays big dividends! Consider doing some simple home staging so that prospective buyers can imagine what the home will look like with furniture in it.

Does the basement have a "musty" smell? Figure out what the problem is and correct it.

Does everything in the house function properly? Make sure all the light bulbs are working, and all of the cabinet handles and doorknobs are securely attached. Walk through the house and give it the same scrutiny that a buyer will, double checking the smallest details in the home.

Be sure to change your filters. If the furnace or AC filter hasn't been replaced during the rehab, clean or replace it.

Author: Sharon Vornholt

Sharon's Website: http://LouisvilleGalsRealEstateBlog.com

Secrets of a solid home inspection

 

Nearly two-thirds of surveyed homeowners report that a home inspection during the selling or buying of a house saved them money.

Selling, buying or just putting a house on the market may raise many questions. Can I get a good price? Are there any problems I should fix prior to listing my house? If I buy this house, will I encounter problems that may make me regret my decision?

The sale price of a house depends on many factors, including the market, location, size of the property, age of the house, condition of the structure, what appliances might be included in the sale and even how nicely the property and building were landscaped and decorated – just to name a few.

Having a qualified professional inspect your house prior to putting it on the market – or for prospective buyers, before closing on a sale – can help guide your decision. But many homeowners and prospective buyers are unsure what's included in a standard home inspection, according to the American Society of Home Inspectors (ASHI). A qualified home inspector will review these aspects of a property:
 

  • Roof, attic and visible insulation
  • Foundation, basement and structural components
  • Walls, ceilings and floors
  • Heating and central air conditioning systems
  • Windows and doors
  • Water fixtures and faucets
  • Decks

Nearly two out of three homeowners recently surveyed by ASHI reported they saved a lot of money as a result of having a home inspection during the selling/buying of a house. Sellers use inspections to help determine potential problems that can be repaired or replaced prior to listing – potentially getting them a higher sale price. And buyers use the inspections to determine if they want to invest in the property, or help negotiate for a better price that would include the repair and replacement of potential problems.

Not all home inspectors are certified and licensed. ASHI's "Find an Inspector" tool allows homeowners to locate an inspector in their area. Always check with your local inspector for a complete list of services provided.

"It's important for homeowners to do their homework before hiring an inspector," says Kurt Salomon, ASHI president. "Look for a home inspector certified through the ASHI Certified Inspector Program, which is the only home inspection association program approved by the National Commission for Certifying Agencies."

The following elements are not included in a standard home inspection:

  • Septic system
  • Electrical wiring and plumbing that is not readily accessible (for example, behind drywall or plaster)
  • Water conditioning or softening system
  • Swimming pool
  • Backyard fences
  • Lawn irrigation system
  • Household appliances
  • Compliance with local codes
  • Appraisal to determine market value

Before hiring a home inspector, inquire about what is covered in the inspection and ask to see a sample report. Although some inspectors provide ancillary services, it may be necessary to consult a specialist for concerns that extend beyond a standard inspection. Often your inspector will help you make this determination.

Hiring a certified home inspector and having questions answered before putting your house up for sale – or before finalizing a purchase price – can not only help save money, but also allow you to go through the process with more peace of mind.

Selecting a trustworthy mover is the first step in avoiding moving day headaches

 

Americans are on the move. The United States Census Bureau estimates that 12.5 percent of Americans – nearly 40 million people – changed residences each of the past two years. While many turned to moving professionals for assistance, some learned the hard way that not all moving companies are created equally. In fact, the Federal Motor Carrier Safety Administration (FMCSA) received nearly 3,000 complaints about moving companies last year alone – a double-digit increase from the prior year.

Some good news arrived in October in the form of a new law that provides additional protection for victims of rogue moving companies that hold belongings hostage in the interest of scamming consumers to pay unexpected fees. The new law gives FMCSA the authority to force the return of consumer belongings in addition to the ability to levy fines of up to $10,000 per day.

Unfortunately, our industry has been plagued by moving 'companies' that advertise unbelievable 'deals' that turn out to be consumer scams, says Jon Sorber, executive vice president of Two Men And A Truck, the nation's largest franchise moving company. The new regulations are a welcome change for those of us committed to operating legitimate moving companies, but they are just a start. Education is really the key to making sure consumers avoid the hassle of a moving scam in the first place.

Sorber suggests consumers ask the following questions before hiring a mover:

1. Can your family, friends and co-workers make a referral? It's likely that you know several people who've hired a moving company in the past year. Why not tap the resources of people you trust to share their experiences?

2. Does your mover have a brick and mortar facility you can visit? Often the "rogue" mover operates from a storage unit or perhaps with no office at all. If you are dealing with a legitimate moving company, they will have an office with trucks, employees, boxes, supplies, etc.

3. Is your mover licensed in your state? The majority of states require a formal license to operate as a mover, and selecting a licensed, insured mover is your best bet in guaranteeing a hassle-free experience.

4. What community or industry associations does the moving company have? Is your mover in good standing with the Better Business Bureau? Are they active members of the local Chamber of Commerce? Choose a mover who is valued and trusted within your community and you'll likely eliminate any concern of questionable practices.

5. Does your mover offer free moving quotes? A legitimate mover is going to provide free estimates of your move before a single item is moved. If they refuse to do so, keep shopping regardless of how good the deal sounds.

Paul Oakley is senior vice president for Government Affairs at the American Moving and Storage Association (AMSA), the moving industry's largest trade association. He and his team began working with Congress to develop the new regulatory provisions. Like Sorber, he believes the new laws provide some measure of safety, but cautions that more work must be done to eliminate dishonest moving practices.

The laws going into effect directly impact policing of the industry, says Oakley, but ultimately we must have safeguards that make entry into the industry more difficult, tougher enforcement against bad actors, and a greater effort needs to be made to educate consumers on how to choose a proper moving company.

Two Men And A Truck offers more questions consumers should ask before hiring a mover at www.twomenandatruck.com/moving-questions. Consumers might also consider AMSA's Before You Move checklist at www.moving.org.

Secrets of a solid home inspection

 

Nearly two-thirds of surveyed homeowners report that a home inspection during the selling or buying of a house saved them money.

Selling, buying or just putting a house on the market may raise many questions. Can I get a good price? Are there any problems I should fix prior to listing my house? If I buy this house, will I encounter problems that may make me regret my decision?

The sale price of a house depends on many factors, including the market, location, size of the property, age of the house, condition of the structure, what appliances might be included in the sale and even how nicely the property and building were landscaped and decorated – just to name a few.

Having a qualified professional inspect your house prior to putting it on the market – or for prospective buyers, before closing on a sale – can help guide your decision. But many homeowners and prospective buyers are unsure what's included in a standard home inspection, according to the American Society of Home Inspectors (ASHI). A qualified home inspector will review these aspects of a property:
 

  • Roof, attic and visible insulation
  • Foundation, basement and structural components
  • Walls, ceilings and floors
  • Heating and central air conditioning systems
  • Windows and doors
  • Water fixtures and faucets
  • Decks

Nearly two out of three homeowners recently surveyed by ASHI reported they saved a lot of money as a result of having a home inspection during the selling/buying of a house. Sellers use inspections to help determine potential problems that can be repaired or replaced prior to listing – potentially getting them a higher sale price. And buyers use the inspections to determine if they want to invest in the property, or help negotiate for a better price that would include the repair and replacement of potential problems.

Not all home inspectors are certified and licensed. ASHI's "Find an Inspector" tool allows homeowners to locate an inspector in their area. Always check with your local inspector for a complete list of services provided.

"It's important for homeowners to do their homework before hiring an inspector," says Kurt Salomon, ASHI president. "Look for a home inspector certified through the ASHI Certified Inspector Program, which is the only home inspection association program approved by the National Commission for Certifying Agencies."

The following elements are not included in a standard home inspection:

  • Septic system
  • Electrical wiring and plumbing that is not readily accessible (for example, behind drywall or plaster)
  • Water conditioning or softening system
  • Swimming pool
  • Backyard fences
  • Lawn irrigation system
  • Household appliances
  • Compliance with local codes
  • Appraisal to determine market value

Before hiring a home inspector, inquire about what is covered in the inspection and ask to see a sample report. Although some inspectors provide ancillary services, it may be necessary to consult a specialist for concerns that extend beyond a standard inspection. Often your inspector will help you make this determination.

Hiring a certified home inspector and having questions answered before putting your house up for sale – or before finalizing a purchase price – can not only help save money, but also allow you to go through the process with more peace of mind.