4 Small Details that Boost the Value of a Home

It may be a seller’s market, but that does not prohibit some houses from sitting on the market for months because they are missing what potential buyers crave in a new home. Luckily, there are many inexpensive, relatively quick fixes that can help boost the value of your home before you sell.

  1. ‘Smart’ technology

In an age where almost anything can be automated or accessed from a smartphone, household appliances should be no different. With technology constantly changing and updating, large, expensive technological updates may not always be a smart investment. However, there are less expensive, easy to install devices that can provide a facade of a high-tech home. An electronic thermostat or a doorbell with a built-in camera can typically be purchased online, installed by the most novice DIY-er, and can be customized through a smartphone.

  1. Greener grass

The outside of your home serves as a buyer’s first impression and your best chance to entice them to look inside. This is why clean landscaping and a neatly kept lawn is so vital for your home’s curb appeal. A lawn that is freshly mowed and flower beds that are neat and tidy give the illusion of a low maintenance yard – every homeowner’s dream. Furthermore, your neighbor’s lawn can impact the perceived value of the neighborhood as a whole. If they are close enough to your property, quickly trimming your neighbor’s grass for them before a showing can go a long way, and also count as a nice deed between neighbors as well.

  1. A facelift for your fixtures

Fixtures that are used daily are often the first to show signs of aging in your home. Even though they are small, fixtures like light switch panels, bathroom sink faucets, kitchen cabinet handles, and closet door handles can quickly give away the real age of your home. These details are typically inexpensive and easy to fix and don’t require heavy installation. As a bonus, changing handles and faucets can add a unique touch of your own style to an otherwise plain room.

  1. A fresh coat

Whether it is the crown molding in the dining room, the front door, or your master bedroom, paint is one of the easiest ways to bring new life into a room. Currently, light, neutral colors like grays and whites are very popular. Not only do they typically appeal to most any potential buyer’s style, but they also can open up a room. Light colors reflect more natural light, and in turn, can make a room appear larger than it really is. Utilizing natural light is also a great way to save electricity, which buyers will appreciate.

This article was originally published on http://matthewgorelik.io

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Using OPM in Real Estate Investment

One of the biggest obstacles that potential real estate investors face is not having the cash capital that it takes to get started. Real Estate is an investment and investments essentially require using money to make more money. One technique in real estate investing is rapidly becoming more popular today, which is the Private Bank Concept or using other people’s money (OPM) to acquire properties.

What is OPM?

OPM, short for Other People’s Money, is when investors borrow money from individual people instead of banks or loan institutions. When utilizing an institution, like a bank, to fund the property, the investor is typically still required to pay a portion of the cost, in most cases a 20% down payment. For those without the means to pay this 20% portion, private lending or OPM is a great way to receive the funds without actually having the capital.  

How does OPM benefit both parties?

It seems bizarre that a private lender would be willing to advance a large sum of money to help someone break into the real estate investment world. However, OPM methods have a benefit to both parties involved. Typically in these scenarios, each investor has an ideal part to play. The initial investor is willing to do the work to receive the highest return on investment (ROI). This could involve finding tenants for a rental property, handling maintenance, and is the point of contact for all transactions involved. The private investor supplying the capital would then likely act as a silent lender – someone who is interested in real estate investment but not in the maintenance involved after the property is acquired.

The loan will have an agreed upon interest rate and date that it must be returned to the lender. In the lender’s case, they would receive their funding back in full, and then interest. To the initial investor who lacked capital, they would receive only a portion of the profits from the property, but without providing any personal capital, only labor. Both parties close the deal with a profit of some amount. Using OPM for multiple properties also enhances the speed at which the investor can close on properties as no bank or mortgage is involved.  

How do I get OPM?

Seeking family or friends who have a healthy sum in their 401k, IRA, or savings is a great place to start. Lenders are more likely to invest in someone that they know. The key to attracting investors is to first gain knowledge on the situation to better sell the deal. A good selling feature to convince someone to break into their retirement plans for funding is that any return profit would not be taxed. After some hard work and ROI build up, you can gain enough capital to invest yourself.

This article was originally published on http://matthewgorelik.co

What to Expect When Buying and Selling a House in LA in 2019

Los Angeles has been in the driver’s seat for about a decade now when it comes to being an ideal seller’s market. However, things are shifting fast in 2019. The City of Angels has fallen from grace as far as real estate values go today. The latest trends show a slow down with home prices leveling off and the number of overall sales significantly down from the average.

Affordability and rising mortgage rates are a couple of reasons for the softening market. In addition, realtors say that Millennial buyers are not hot for home hunting like they were in recent years. Would-be buyers have become shut out of the game because home values in L.A. have skyrocketed. The city is also known for wages that lag considerably behind housing costs. For example, lower-earning residents would need to shell out more than 83 percent of their yearly incomes just to meet the monthly mortgage payments on an average home purchased there.

Mortgage rates are expected to hit 5.5 percent by the end of 2019. Potential move-up buyers are also staying still and keeping their existing homes. Instead, they will make renovations and be satisfied with their current low mortgage rates.

Those who rent are also feeling the struggle and having to set down roots in the cheapest neighborhoods of L.A. or get a roommate just to meet the rising housing costs. That means that renters who desire becoming homeowners are finding it almost impossible to gather enough funds for a downpayment.

For example, looking nationwide, the median price for a two-bedroom apartment is $1,180. That is nearly 33 percent below the L.A. price.

This is Los Angeles’ reality; the rate of homeownership there is one of the lowest in the country. In L.A., 64 percent of households rent instead of own, and even that poses a hit to the wallet.

If one is a seller with a great property, the house will probably go but not at the crazy pace before. L.A. sellers have to be aware of the competition, especially for more expensive properties.

If one’s an L.A. buyer, there is less buyer competition and more inventory in that respect. Buyers don’t have to rush and can take time to find the home that fits into their budget.

How School Districts Harm or Improve Real Estate

Shopping for a new home is one of the most important things someone will do in their adult life. Not only are they finding a place for the whole family to live for the next several years, but they are also buying an extremely important and expensive investment. There will come a time when the new home gets put up for sale, and this process will be a lot easier if it increases in value over the years. There are a number of things that alter the real estate market, but nothing has a bigger impact on the overall value of a house than the local school districts.

School districts have a major impact on the real estate market because parents are willing to do anything to help their kids succeed. Attending well-respected schools as a child makes getting into an elite college a lot easier. This makes the houses in areas with great schools extremely desirable among parents. This high demand drives up the prices of the homes. A good school district can potentially increase the value of a home by as much as $300,000.The opposite is also true. Homes in bad school districts will be considerably cheaper than similar homes in an area with good schools.

Luckily, it is very easy to take advantage of this information when buying a new house. Finding an area with an up-and-coming school district is a great way to maximize the value of a newly purchased house. As the school district starts to get more recognition over time, the house will only rise in value. This allows the homeowner to pocket a lot of money the next time they move.

It is also possible to use the knowledge of the area’s school districts to find excellent deals on spectacular homes. Finding a dream home in an area with slightly underachieving schools will cost a lot less than moving to a different part of town. This is the perfect way for someone without children to save money. It is also an effective buying strategy for anyone looking to stay in their new house forever or someone that is planning on sending the kids to private schools.

School districts will always have a huge impact on the local real estate market, so it is vitally important to keep this in mind when buying and selling homes.