Credit: Binyamin Mellish
If you’re looking to get into real estate, now is as good a time as ever. Real estate is a great way to make income on the side, whether you’re flipping a house, renting out condo properties in Fort York, or you’re trying to create office spaces. However, there are some important things to know if you’re a beginner. Check out these tips to avoid beginner mistakes.
The 1% Rule:
The one percent rule is one of the most basic rules in real estate, but also one of the most valuable. The rule stands to help you get back what you’ve invested into a property so that you eventually begin to turn a profit. If you’re renting a place, the monthly rent should be equal to one percent of the mortgage value. Therefore if the mortgage on a property is $200,000, the monthly rent should be set at $2,000.
Buyers Love Healthy Lawn’s:
It’s easy to overlook the lawn on a property, but should you? Appearances make all the difference when it comes to selling a place, so make sure that the lawn is cleaned up as much as possible. One tactic many veteran real estate agents use to spruce things up is having the lawn mowed a few hours before the place is set for an open house or a showing. Buyer’s love the smell of fresh cut grass on a new property.
You need to be strategic when pricing a home. When you go to the grocery store do you notice how items are marked at a penny under the next dollar value ($2.99 vs. $3.00)? This is because it’s more appealing psychologically to buyer’s. If you’re selling a property for $250,000 and it’s not selling, try bumping a thousand or two off and you may find more people attracted to it.
Don’t Bury your Listing:
There’s certain times of the year when listing a property is bound to fail. These times are typically before a flurry of activity such as family vacations or kids going back to school or away to college. Avoid listing properties too close to holiday’s where people are sure to be paying less attention to listings. You want your listing to hit the market running and start generation a buzz.
Avoid Scaring Away Buyer’s and Renter’s:
If you’re living in a hot market where homes sell fast, then you need to be real careful. It may be a seller’s market, but buyer’s still have the ultimate say. If your property sits for more than a month in this type of market then your property is likely overpriced. If you drop the cost, you appear desperate. So what’s the solution? Make sure you register a fair price from the beginning to avoid this sticky situation.
Getting into real estate can be an awesome way of generating passive income and turning quick profits, but there are many little things you can do that deter buyer’s and renter’s. Pay attention to these tips so you can garner the most success.