How Millennials Will Affect the Future of Real Estate

Moss Sidell Millenial Real Estate Header

The future of the real estate industry is going to be impacted by millennials no matter what. Many real estate agencies and agents are curious about how millennials will change things moving forward. There are many factors to consider when looking at millennials and real estate. Read on to look at this topic further so that you can glimpse into how things might be just a few years down the road. 

Millennials Are the Largest Consumer Base

Currently, millennials are the largest consumer base and they are helping to drive many industries forward. The issue that some companies and industries are facing has to do with not understanding millennial spending habits to a fine degree. Many millennials seem very hesitant to commit to ownership in various fields. Obviously, this could have a huge impact on the housing market and real estate could wind up changing significantly. 

Millennials seem to value experiences and other intangible things more than ownership. This isn’t going to be true of all millennials, but it is something that needs to be considered. If they are hesitant to commit to buying things like cars, then they’re definitely going to pause when thinking of purchasing real estate. This could mean that the millennial generation will be more likely to rent homes than they will to buy them. 

A large number of millennials think that buying a home is not a good investment. They would rather spend their money elsewhere and this presents problems for the real estate industry. How do you sell homes to a generation that isn’t as interested in them? This is an issue that real estate companies are going to have to grapple with over the coming years. 

Renting Might Be King

Renting might be king in the future of real estate. If millennials hold true to the current statistical trends, then home ownership numbers might go down substantially. This could lead to more rentals being available and you might have a generation of adults who prefer short-term renting options over committing to settling down in one area by buying a home. Predicting the future is not entirely possible, though, and it makes sense to pay attention to see how things play out in the coming years. 

from Moss Sidell | Real Estate Attorney http://mosssidell.com/how-millennials-will-affect-the-future-of-real-estate/
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The Benefits of Social Media for Real Estate Agents

You should never underestimate the importance of social media in the modern era. Real estate agents can use social media to their advantage in many ways. Take a look at the benefits of social media for real estate agents by reading the information below. You’ll see that it can be a handy tool and will understand how to use it better. 

It Makes Networking Easier

Networking is going to be substantially easier when you make use of social media. Social media will allow you to easily connect with people who are looking to buy or sell homes. It’ll also be a convenient way to stay connected with other agents who might be able to help you out professionally. You should leverage social media platforms to improve your networking capabilities as soon as you can. 

Social Media Enhances Your Brand Visibility

Enhanced brand visibility is another excellent reason why you should be using social media as a real estate agent. You want people to be able to recognize your brand, and bringing new people into the fold will be helpful. This will get more eyes on your real estate, and it makes it easy for others to share what you’re doing. You can build a much stronger brand by using social media outlets as part of your strategy. 

It Gives You More Marketing Options

You’re also going to have more marketing options when you start using social media. Marketing your services on popular social media platforms will help you to connect with people. You can also use social media platforms as a way to get video content in front of the eyes of potential home buyers. It’s a great way to market homes that you are trying to sell, and you should be using social media as much as possible. 

Social Media Can Increase Your Website Traffic

Of course, social media is going to be able to drive traffic to your website as well. It’s going to help you to get more website views, and all of your website content will benefit from a healthy social media presence. Share your blog posts and other articles on your social media profiles. It’ll help to improve your website traffic substantially, and you’ll be glad that you started using social media more seriously. 

from Moss Sidell | Real Estate Attorney http://mosssidell.com/the-benefits-of-social-media-for-real-estate-agents/
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How to Increase Property Value as a Real Estate Investor

As a real estate investor, you want to be able to increase the property value of your properties as much as you can. If you make use of specific methods, you should be able to get the most out of your investment. Read on to explore how you can increase your property value as a real estate investor. These methods won’t be too hard to implement, and they should really pay off in the end. 

Clean the Property Thoroughly

Cleaning the property thoroughly is the first thing that you should do when you’re looking to make improvements. Clean the home on the outside and the inside to make sure that it looks great. Some investment properties might have issues that will need to be addressed. Make sure that you take the time to clean things up before you start thinking of selling it or renting it out. 

Paint

A little bit of paint can transform a home into something more beautiful. If you want your property to increase in value, then you should always try to make it as presentable as possible. Take the time to paint the home so that it looks the best that it can. This will help you to get more out of the property when it comes time to sell it off. 

Give the Property More Curb Appeal

You want your property to stand out in a positive way from the road. Taking the time to increase the curb appeal of your property will make a difference. Plant some flowers and plants to add a bit of charm to your property. You can also consider how the shutters look, whether the deck is presentable, and other options that can help to increase the curb appeal. 

Update Flooring

If your property has older flooring at the moment, then you might want to make some changes. Get rid of the old carpeting and buy something new that will look visually appealing. You could also consider buying hardwood flooring or some other type of flooring. Improving the flooring situation in the home will increase property value, and it’ll make it easier to get buyers interested in the house when you’re looking to sell. 

Get New Siding

Getting new siding can be very helpful as well. If you want the value of your property to increase, then new siding will help you to accomplish just that. The house will look a lot nicer with new siding, and it’ll add a lot to the value of the home. This will cost you a bit of money, but it should be worthwhile since it adds value to the house while making it something that will appeal more to the buyers. 

from Moss Sidell | Real Estate Attorney http://mosssidell.com/how-to-increase-property-value-as-a-real-estate-investor/
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What You Need To Know To Avoid Losing Money In Real Estate

money loss

As with any investment, there is risk involved when a person decides to put money into real estate. However, lessening that risk is possible if an investor follows a few rules. Here are five factors that a person should know so that they avoid losing money in real estate:

Find Positive Cash Flow Deals

If a person wants to make money in real estate, they should really plan on holding the property for an extended period of time. Over the years, rental prices will usually increase and loans will get paid down. Finding a piece of property that has a positive cash flow each month is crucial for success. By buying real estate that has a positive balance of income, it helps create protection from times when the home market dips or prices stall.

Have Reserves Available

Another challenge that gets real estate investors into trouble is not having enough reserves to take care of unexpected expenses. These extra costs may be due to:

  •  A roof that is leaking
  • Busted pipes
  • A broken HVAC system  
  • Destroyed property
  • Evictions

Whatever the cause, an investor needs to make sure that they have plenty of reserves available to handle unexpected expenses. A good rule of thumb is to have a minimum of six months worth of expenses for each property.

Following Others

Typically, following the herd is the wrong move to make. Plenty of bad decisions have been made based on the actions of others. It’s human nature to join with the pack and do what everybody else is doing. This course of action is likely to get an investor in trouble if they buy real estate when everyone else is doing the same. Real estate purchases should be made when they are based on a long-term plan.

Assuming That Price Will Appreciate

Many amateur real estate investors make the mistake of believing that the property they buy will appreciate in price. A professional will purchase a property that’s undervalued, producing positive cash flow and located in a great area. Making a purchase that is solely based on price appreciation is a gamble.

Location Still Counts

While a home may look excellent on paper, if it isn’t in a solid location, it probably isn’t worth buying. When homes are purchased in bad neighborhoods, it’s likely that an investor will have to rent to tenants that have poor rental histories, unreliable incomes and average credit scores. Location is still one of the number one factors that should be considered when purchasing real estate.

from Moss Sidell | Real Estate Attorney http://mosssidell.com/what-you-need-to-know-to-avoid-losing-money-in-real-estate/
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4 Challenges to Overcome When Selling a Solar-Powered Home

solar home

The number of solar-powered homes in the United States has increased by more than 1,000 percent from 2006 to 2013, according to the Union of Concerned Scientists (UCS). By 2020, experts predict that roughly 4 million U.S. homes will be partially or fully powered by solar energy. Homeowners who are thinking about selling their solar-powered home, however, may encounter a few challenges due to the presence of solar panels on their property.

#1) Required Maintenance

Some people are reluctant to buy a solar-powered home because of the additional maintenance it requires. They assume that solar panels must be regularly serviced to continue generating electricity for the home. But sellers can overcome this objection by explaining to prospective buyers that the only maintenance a solar panel system requires is the occasional cleaning using water.

#2) Conveying the Benefits

Unless a prospective buyer has owned and used a solar power system before, he or she probably won’t know the benefits it offers. Therefore, sellers should educate prospective buyers about solar power systems and how they can improve their life. A seller can explain, for example, that a solar power system will reduce their dependence on utility-supplied power, allowing them to save money on electricity. Solar power is also clean and renewable, so it doesn’t contribute to greenhouse gas emissions or other forms of environmental air pollution.

#3) Leased Solar Power System

Not all homeowners purchase their solar power system. Some lease their system from a solar power company, which can add another challenge when selling a solar-powered home. When a solar power system is leased, the homeowner pays a solar company to use it for a fixed length of time, such as 10 to 20 years. If the homeowner sells his or her home, the buyer may be required to take over the monthly lease payments. The good news is that the cost of leasing a solar power system is typically much lower than the value of the electricity it will generate.

#4) Dealing With Real Estate Agents

Real estate agents may be reluctant to work with a seller if his or her home has a solar power system. This usually occurs when a real estate agent has little or no knowledge of solar power systems. Since they don’t know how it works, they can’t effectively market the home to prospective buyers.

Selling a solar-powered home requires a little more legwork. By educating prospective buyers and real estate agents about solar power, however, sellers can secure a deal more quickly.

from Moss Sidell | Real Estate Attorney http://mosssidell.com/4-challenges-to-overcome-when-selling-a-solar-powered-home/
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Curb Appeal Tricks

Curb Appeal

A home is everyone’s biggest investment. Potential buyers are drawn in by how a home looks from the street more than any other factor. Fortunately, it doesn’t take expensive designers and landscapers to create great curb appeal. Use the following tricks to magically transform a home to its fullest market potential.

Enhance the Landscaping

Even if the landscaping is a little lacking, homeowners can create an illusion of foliage by adding container gardens in the front. Choose containers to compliment or contrast aesthetically with the home’s exterior. Larger containers can even be used for dwarf trees and shrubs. Evergreens will look nice all year, and blooming plants will add a splash of color in the growing season.

Refresh the Exterior

A fresh exterior is a must for maintaining a home, especially if it will be put on the market soon. Refresh the paint, siding, and trim. Touch up the existing colors or go with a new color for a different look. This is the most important home improvement and the one that will make the most dramatic difference.

Add Lighting

Bring out the best in a home’s existing landscaping with landscape lighting. This simple step will have a lot of impact. Illuminate the walkway, highlight trees, or add strategic lighting to spotlight the entire house. Landscape lighting can either be hardwired or added with battery-powered or solar-powered lights. Consider security lighting for both curb appeal and practicality. Floodlights or spotlights at key locations will add security and attract buyers.

Spruce Up the Entryway

A home’s entryway is essential to curb appeal since potential buyers spend time here first. If the door and other features are in disrepair, home shoppers may assume the rest of the house is also. Take time to repair and paint the front door or replace

it if necessary. Consider adding a door wreath, potted plants, or a small attractive table to the entryway.

Mailbox Makeover

A mailbox in poor condition is more noticeable to potential buyers than homeowners. They are inexpensive to replace and are available in many creative and attractive designs at home centers like Lowe’s or Home Depot. Plant vibrant flowers around mailboxes near the street.

Install Window Boxes

Many residential designs can be complemented with the addition of window boxes. They can look quite charming when painted to harmonize with the house. Fill them with seasonal flowers on a rotating basis.

from Moss Sidell | Real Estate Attorney http://mosssidell.com/curb-appeal-tricks/
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Everything You Need to Know About Short Sale

short sale

When people begin researching real estate investing, they’re almost always drawn to short sale properties. These properties seem to offer the best deals and they can often seem to hard to pass up. However, before you invest capital in this type of investment, it’s important to learn more about what’s involved in a short sale transaction.

It’s a Long Process

When you make an offer on a home under normal circumstances, you can usually expect to hear back rather quickly. That’s not the case with a short sale. The offer must be approved by lenders with claims to the property and lenders often have more than a few offers to consider. Just getting your offer approved can take a few months or more.

You Are Getting a Good Deal

There’s no denying that you are getting a good deal. The lender just wants to recover what’s owed, which means they’re likely not asking full market value. Additionally, regular homebuyers are less willing to consider this option, due to the drawn-out process. This means less competition, so you’ll have a better chance of your bid getting accepted.

Short Sales Are Harder to Find in Good Markets

In better markets, you’re less likely to find a short sale to suit your needs. There are a few reasons for this, but essentially a good market means most properties won’t stay on the market for long. This is especially true in cases of a short sale, where the home may be listed below the actual market value.

You’re Buying the Home As-Is

A short sale is different from a regular home sale in that the lender is trying to get rid of the property as soon as possible. This means they’re not going to foot the bill for a home inspection and they won’t require the previous occupant to make repairs. Whatever problems exist with the home will solely become your burden.

The complex nature of buying property through a short sale requires that you do your due diligence. This means hiring and consulting the right professionals to help you navigate the deal. You should be sure any attorneys or real estate agents you work with have experience in assisting with short sale transactions. It’s also important to keep in mind that, even after you jump through the necessary hoops, you may still lose the deal. However, if you’re patient, there’s every reason to believe that you can find the right short sale property for you.

from Moss Sidell | Real Estate Attorney http://mosssidell.com/everything-you-need-to-know-about-short-sale/
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