If You follow us on Social Media (If you don’t you should) you’ve probably noticed a couple of properties we just listed with multiple units. So it got me thinking, what are some of the advantages of owning these types of properties and why you should consider it!
Duplexes are a great start for those who are interested in investing in real estate. And, a superb (yet out-of-the box) strategy for first-time buyers. Duplexes are unique, and can prove to be a winning proposition!
Five advantages of owning a duplex
A duplex can be a great start for you if you are looking to buy a bigger home in the near future. Why? Rental income. The potential to finish `which helps pay off the mortgage.
Get help with your mortgage
As I mentioned above, you can use your rental income to pay off the mortgage much quicker making it more affordable. This is one of the greatest advantages when owning a duplex which is why it’s appealing for new or seasoned investors.
To help paint a picture, let’s say your mortgage payments on the property is $1,500 per month. You rent the other half of the property for $950 a month, which leaves you only paying only $550 a month! If that isn’t turning some gears in your head then I don’t know what will.
Live in one side, work from the other
If you’re an aspiring entrepreneur who want’s an affordable workspace why not work from next door? Living next door to the office can save you time and money in the long haul. Say goodbye to the long hour commute.
Use the second unit for family
If you have an older family that need close attention, a duplex arrangement might be a great solution. You can all have peace of mind knowing your just a doorknock away. Another idea, rent it out to a family member who’s just graduated from University but can’t quite afford their own place yet. Not only will they be thankful but helping family and friends is one of the most rewarding feelings.
We’ve all heard of it but does it work? There are numerous investors (new and experienced) who are taking advantage of the airbnb platform. Having the ability to rent out half of your property for a certain time is a win win. Check out how you can take advantage with a click youtube search to get started!
Selling a home can prove to be a nerve wracking process for many sellers, especially if you will also be buying a new home simultaneously.
Some of the biggest concerns and questions sellers have are:
- Will I be Homeless?
- How do I buy my next home if I haven’t closed on my current one?
- What if I can’t find a replacement property?
It’s a lot to take in, but don’t worry – if you find yourself in this position – this article will help!
The process of purchasing a new home with the condition of selling your current home/property is known as a “contingent purchase” as the purchase is contingent on you selling a property. The same goes with your sale as you will be selling contingent on purchasing replacement property. There are a lot of moving parts to a contingent sale/purchase as typically the goal is to close the sale and purchase concurrently. There are typically two title companies/Escrows involved, multiple agents and loan officers, multiple inspections, not to mention appraisers on both the down-leg and up-leg transactions (if there’s financing involved).
Are you getting acid re-flux yet? It can be complicated and drive you mad. Often, in an effort to mitigate all of this stress and complexity, sellers inadvertently make crucial mistakes that may actually complicate the transaction which add more fuel and stress. These are the top three most common mistakes made by contingent sellers.
1) Waiting to list your current property until you find your replacement home.
While at face-value this seems to be an ideal and smart strategy, it proves to delay the entire process (especially in hot and competitive markets).
Upfront, sellers feel reluctant entertaining contingent offers because there is a level of uncertainty as to whether your down-leg transaction (aka your current property) can and will actually close. Sellers want to be reassured that you can actually close the purchase. When you send a contingent offer and your property is not even on the market, sellers will interpret your offer in one of two ways: 1, You’re not serious, or 2, this will be a seriously delayed transaction.
Both of these make your offer substantially less appealing and more likely to be rejected. This will delay the process as you will be wasting time making offers which you will probably not be considered at all. Your offers are more appealing if you can demonstrate your current property is listed on the market. Its even more attractive if your current property is under contract (in escrow) and most attractive if it’s in escrow and the buyer of your home has removed all of their contingencies!
2) Pricing Their Listing Too High
Obviously, every seller wants top dollar for their property, and trust me, every listing agent’s chief aim to get the highest and best offer for our sellers. However, we cannot, ignore the mindset of buyers: every buyer wants a deal! So, when we market and advertise, we need to use psychology to drive buyers to your property. The more foot traffic and eyes you can get on your property, the higher the potential for multiple offers, the more offers we obtain on your property the higher we can drive the price! Makes sense right?
Pricing your home too high for your market or neighborhood will limit the amount of activity at your property diminishing the volume of offers and adding to your market time, again delaying the purchase of your next property. There is one caveat to this principle: if the condition, upgrades or amenities are far superior to those of your neighbors. Pricing your property just right is crucial to not only getting the best offers, but to moving the sale expeditiously!
3) Writing Low-ball Offers
As mentioned above, all buyers want a deal- and a commonly used strategy to get a deal is to write aggressive offers in the hopes of grinding a seller down on price. When you are a contingent buyer, you already have a large psychological barrier to overcome with the seller. They see contingent offers as “Delays” and their biggest doubt and question is – When will this deal close? Adding a low ball price to a contingent offers adds another layer of doubt in the mind of the sellers.
This will lead to a higher potential of your offer being rejected adding to your frustration. I recommend writing reasonable offers with traditional appraisal and loan contingencies, as well as a due diligence period to inspect and investigate. This will prove to be more attractive to sellers and will increase the likelihood of your contingent offer being considered.
Expedite the process of purchasing and closing on your new home by putting your current home on the market ASAP and pricing it correctly to obtain the best offer and terms- lock it down in contract. Then write reasonable offers on your replacement property with the adequate contingency period and terms.
Everyone wants a speedy home sale
Even though not all is in your control for dictating the amount of time it takes to sell a home, why not prepare and set yourself up for success? Would you like to discover some things that you can control to improve your chances in selling your home faster and for more money? We’ve got you covered!
A picture is worth a thousand words
You take pride in owning your home, now it’s time to show of that pride of ownership. Pictures are worth beau coup bucks when it comes to selling . We understand that smart phone cameras and apps have improved tremendously over the years, but they won’t do your home justice when marketing online! They won’t capture the best light, size or essence of your home! We recommend using a wide angle lens with appropriate filters. And, unless you are a phenomenal photographer yourself, it is highly advisable to hire a professional photographer – specifically one that understands what it takes to adequately shoot a property. Your wedding photographer may be phenomenal at taking portraits and candids, but actually terrible at shooting a tight space like your powder room. Remember, you’re competing with other listings in your neighborhood and beautiful images of your home will help make it stand out.
Home improvement (euuuuuhhhhh)
Remember the fence you were supposed to fix? the missing tile in the kitchen back splash? the stain in the ceiling? Well, when potential buyers see these things, they immediately see $$$$$. They start to worry about how much money they’ll need to invest in fixing things up. The peculiar thing is that, realistically, those minor items may not cost much to repair, but once the buyer gets it in his/her mind that your house is a fixer one of two things will occur: 1. they won’t bid on your property 2. their offer will come in lower than you desire. So, it’s time to pick up a hammer and nails, and complete some home projects. If you’re not handy, hire a handy man or contractor – they’ll do the job faster and usually better. If you’re not sure which projects should take priority, we recommend you focus on kitchens and bathrooms, as these will give you more bang for your buck. You don’t have to go all out on this either, minor upgrades can go a long way (think fresh coat of paint or new carpet)
First impressions are everything
When a potential buyer walks up to your house, the outside of it is their first impression. Time to test and see how green your thumb really is! Tend to the garden and clean up the walkway. Add a fresh coat of paint or a new mailbox. Have fun with it. Curb appeal will draw them in!
Make your home feel larger
You can make your home feel larger with little tricks like using lighter paint colors, and adding extra lighting. And when it comes to furniture, LESS is MORE! Bulky or too many furniture pieced make rooms look smaller and turn off buyer. Consider hiring a designer or a staging company bring welcome to home buyers who preview your home. This will help them picture their perfect home set up.
Unfortunately, most humans do NOT have exceptional visualization skills. And, most buyers fail miserably at visualizing themselves and their things in your property if your home is uber personalized. So, we have to help them see themselves in your home so that they make offer. This is a good time to take as many pictures off of walls and fridges – Hey, we know you 21 year old son was so cute in his T-Ball trading card , but your buyer would rather visualize pictures of their family on the fridge. If you’re into really unique art, even as awesome as it may be wise to remove it. This one is touchy, because everyone has their own tastes, but you never know what may turn someone off from bidding on your property.
The price is right
This is probably one of the most trickiest parts when listing your home. You don’t want to price too high or too low. If it’s too high, many potential buyers may skip on even looking at it. If it’s too low, buyer may even see it as an opportunity to go even lower. Analyze the market: what have have homes in your neighborhood sold for? Are your features better or worse? How does your lot size compare to the others? Is it situated in a corner lot? etc.
Hire a realtor
Hiring a professional who knows your market and understands today’s marketing and PR trends is key to creating the buzz and promotion to move your property. And, Not only can a real estate agent help you navigate the ins and outs of the market, but a real estate agent will help you negotiate the best deal possible.