The way I see it you have 4 options.
1)You can do it yourself. 2)You can hire a Realtor to find a tenant. 3)You could hire a management company. 4)Go short term vacation rental depending on your neighborhood rules and deed restrictions.
#2 option-Hiring a Realtor to find a renter and then you/owner manage the term and duration of the lease directly with the occupant. Expenses on this range from 60% to 80% (varying 10% plus minus) of first months rent. This hypothetical 60% - 80% is the commission to both Realtors involved. Value in your Realtor is background check, running credit check through a formal agency and casting a wide net for finding a good tenant plus showing the home to candidates.
#3 option-Hiring a management company will handle most of the details day in day out. This cost is around 6% to 9% of each months rent. There could also be a commission added when a new tenant is needed. Typically having more than one property makes this route more popular.
#4 option is one I will defer to your own investigation. With my own investment property I am intrigued but have not experienced it yet.
Monday, October 17, 2011
W.I.I.F.M.?
Whats in it for me (W.I.I.F.M.) to accept?
A question buyers and sellers ask themselves when negotiating a housing transaction, especially true if they 'feel' they made a good offer or counter offer.
Don't be shy to ask your Realtor, "whats in it for me?". This would typically pop up when you have received a less than list price offer or you are buying and your offer was countered. Utilize the value of your Realtor and listen to some points of consideration that could be useful in digestion of what is on the table.
Full time Realtors are constantly working in the housing market and the one you chose has a fiduciary responsibility to your needs if they know them. A major value in a Realtor is the fact they are not AS EMOTIONALLY involved as The Buyer & The Seller. Your Realtor could have some good insight to consider, a way to allow time to consider all options which relieves pressure for a quick decision. A Realtor has access to data that could make a decision to keep looking (for another buyer or another home) more digestible.
A question buyers and sellers ask themselves when negotiating a housing transaction, especially true if they 'feel' they made a good offer or counter offer.
Don't be shy to ask your Realtor, "whats in it for me?". This would typically pop up when you have received a less than list price offer or you are buying and your offer was countered. Utilize the value of your Realtor and listen to some points of consideration that could be useful in digestion of what is on the table.
Full time Realtors are constantly working in the housing market and the one you chose has a fiduciary responsibility to your needs if they know them. A major value in a Realtor is the fact they are not AS EMOTIONALLY involved as The Buyer & The Seller. Your Realtor could have some good insight to consider, a way to allow time to consider all options which relieves pressure for a quick decision. A Realtor has access to data that could make a decision to keep looking (for another buyer or another home) more digestible.
Monday, October 10, 2011
Consideration of the other side
A lot is and has been said about pent up inventory of homes. Are there a large stockpile of houses that are coming out which will flood the market? I don't know but it is being reported as a concern. This same concern involved commercial real estate about this time last year and it ended up not being as big of an issue. All this revolves around inventory but what about consumption? Read this;
http://www.marketwatch.com/story/millions-waiting-for-right-time-to-buy-a-home-2011-10-07?link=MW_latest_news
http://www.marketwatch.com/story/millions-waiting-for-right-time-to-buy-a-home-2011-10-07?link=MW_latest_news
Friday, October 7, 2011
Stats and area LS
Updated stats as of August 2011 are out (real estate stats lag almost 2 months behind today's date due to transactions being closed but not reported immediately). Of all areas the Lake South (LS per Multiple Listing Service/MLS definition) earns top honors with;
$42,814,945 for sold volume with 98 sales
Average price of $436,887
This area makes up 8.03% of the volume in the market during August which is at the top.
The area has 4.63% of the sales.
The only other areas that come close to percentage of sales is parts of Cedar Park and parts of Round Rock.
I am a fan of Lake South (also loosely referred only as "Lakeway" but there are other neighborhoods like Flintrock, Apache Shores and more), LS per MLS. True this area has a wide price range of homes and is a big area but this area has a complete package. Public Schools are great from K through Senior H.S.. Homes are newer and amenities are established all along 620 (sometimes set back so you have to look while driving by) not to mention a football program that is proving to be a state powerhouse and it is close to a lake when we get rain.
$42,814,945 for sold volume with 98 sales
Average price of $436,887
This area makes up 8.03% of the volume in the market during August which is at the top.
The area has 4.63% of the sales.
The only other areas that come close to percentage of sales is parts of Cedar Park and parts of Round Rock.
I am a fan of Lake South (also loosely referred only as "Lakeway" but there are other neighborhoods like Flintrock, Apache Shores and more), LS per MLS. True this area has a wide price range of homes and is a big area but this area has a complete package. Public Schools are great from K through Senior H.S.. Homes are newer and amenities are established all along 620 (sometimes set back so you have to look while driving by) not to mention a football program that is proving to be a state powerhouse and it is close to a lake when we get rain.
Thursday, October 6, 2011
Provide the details
When making a less than list offer provide some details for the "why". Your Realtor will provide excellent value in this area.
Discuss in a letter to the other side (listing Realtor/owners) your reason for pricing their home the way you did in your offer; examples of similar homes that recently sold, market conditions you as the buyer are facing (relative to the market this seller is selling in), concerns that keep you from 'hitting' their list price. Best to start this letter with how much you like the home. It would seem obvious that you like the home enough to make the offer but don't just jump right into criticism of their home before highlighting their work and effort (a mistake Realtors make when starting a negotiation - I am guilty). If you have seen a ton of homes, waited for a long time to pick the right one let the sellers know. End this letter with why you could be a great buyer and great match with your sound qualifications. Your Realtor is perfect for this as they know the market, know how to communicate your message within the current market environment and they want to help you get that home.
Discuss in a letter to the other side (listing Realtor/owners) your reason for pricing their home the way you did in your offer; examples of similar homes that recently sold, market conditions you as the buyer are facing (relative to the market this seller is selling in), concerns that keep you from 'hitting' their list price. Best to start this letter with how much you like the home. It would seem obvious that you like the home enough to make the offer but don't just jump right into criticism of their home before highlighting their work and effort (a mistake Realtors make when starting a negotiation - I am guilty). If you have seen a ton of homes, waited for a long time to pick the right one let the sellers know. End this letter with why you could be a great buyer and great match with your sound qualifications. Your Realtor is perfect for this as they know the market, know how to communicate your message within the current market environment and they want to help you get that home.
Monday, October 3, 2011
Large yard & defining "location"
A client who has a ton of business experiences around the world made 2 great points as we discussed his housing goals.
The first one he had was on how to find the perfect home, "stand on the porch and look out into the neighborhood, if you like what you see go for the home because you can always change what is behind you." (behind you would be the house itself) This is especially true for locations with fantastic views and water front. I have previously posted that buyers should find a sense of enjoyment in the neighborhood when driving to the potential 'house of choice' and less on the house itself. When you have had a long week, long day, a big reason to buy (That American Dream) is really liking the neighborhood surrounding your home (like the streets for a walk, like the playground nearby for your kids, like the shopping, on and on). Standing at the front door with the house behind you and looking out is a better way to state this point.
Last, if you want a larger yard consider reducing expectations on year built for your search criteria. Generally speaking the more recent developments have reduced the lot size to maximize R.O.I.. Better common area parks are being offered and smaller lots are being sold than in the past. You might have to settle on how upgraded the home is. This brings us back to what are your top 5 must haves before considering an offer? In the current market with higher inventories you might have a chance at a remodeled house in these older areas that is priced close to non updated houses.
The first one he had was on how to find the perfect home, "stand on the porch and look out into the neighborhood, if you like what you see go for the home because you can always change what is behind you." (behind you would be the house itself) This is especially true for locations with fantastic views and water front. I have previously posted that buyers should find a sense of enjoyment in the neighborhood when driving to the potential 'house of choice' and less on the house itself. When you have had a long week, long day, a big reason to buy (That American Dream) is really liking the neighborhood surrounding your home (like the streets for a walk, like the playground nearby for your kids, like the shopping, on and on). Standing at the front door with the house behind you and looking out is a better way to state this point.
Last, if you want a larger yard consider reducing expectations on year built for your search criteria. Generally speaking the more recent developments have reduced the lot size to maximize R.O.I.. Better common area parks are being offered and smaller lots are being sold than in the past. You might have to settle on how upgraded the home is. This brings us back to what are your top 5 must haves before considering an offer? In the current market with higher inventories you might have a chance at a remodeled house in these older areas that is priced close to non updated houses.
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