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Top Four Factors That Affect the Selling of a Home

There are a lot of factors that determine the selling potential of a home, but the most impactful ones are overall interest rates, economic conditions, and the economy in association with the real estate market. Whether you are a potential home buyer or a current home owner planning to sell your home, you must be well aware of what factors have the biggest impact on the entire process. This short article will give a brief explanation of the top four factors that affect the overall process of selling a home.

1. Fluctuating mortgage interest rates
Majority of home buyers who are interested in purchasing a home in this day and age opt for the fixed-rate type of mortgage that lasts for 30 years. For most home owners, one of the biggest investments in their lives is their house. That being said, as a home owner, you have to understand what impact the decrease or increase of interest rates has on your monthly expenses. Moreover, mortgage rates also have a direct correlation with interest rates making it all the more important on your part to have a better understanding of these fluctuating mortgage interest rates.

Generally, the rule of thumb for mortgage interest rates is that for every 1% increase in your mortgage interest rate, you get an increase of $60 per month per $100,000 of your loan in terms of costs. Basically, if your mortgage has a value of $500,000, if its interest rates will go up by 1%, your monthly payment will increase by $300 more or less.

Despite the fact that in the past five years, mortgage interest rates have gone down and up until are still relatively low, they still increase at nearly 1%. For instance, if interest rates will go up from 3.5% to 4.5%, the above example can be expected. However, if the federal reserve decides to raise the interest rates and from 3.5% the rates will go up by 5.5%, this would be a very impactful increase on the part of most home owners.

2. Mortgage eligibility
For most lenders, they determine the eligibility of a person for a particular mortgage by looking into the relationship between the person’s monthly income and his or her monthly expenditures. Thus, if mortgage rates increase, some of the potential home buyers may not be eligible for buying a home that they once were qualified.

3. Housing market strength
If you look at the current real estate market, you will see that most of the houses being sold have increased selling prices. This is a simple scenario of the supply and demand chain as well as the existence of the sellers market making the current industry have more potential home buyers versus more available houses for sale. When mortgage interest rates will affect negatively the number of potential home buyers, the end result will be decreased demand for house and perhaps leading to home prices going down.

4. New construction/buildings
Once again, when interest rates increase, costs associated in making construction loans increase. This could result in one of two things, that is, home building becoming more expensive and challenging or reduced home building plans. This might imply builders to take more risks, accept lower profit margins, or not accept any new projects for the time being.

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The Job of a Commercial Property Manager

As the name implies, a commercial property manager provides expert assistance to property owners in managing their commercial properties. Commercial property managers carry out a number of different tasks to provide the best services to commercial property owners, but generally, they take care of the following things:
• The maintenance and repair of elements of the buildings constructed on the commercial property such as mowing of lawns and prompt repairs
• The screening of possible new tenants who are interested in renting one of the commercial stores or buildings
• Overseeing of the leasing of property sections like the retail spaces inside a mall
• The collection of rent payments from tenants on the commercial property owner’s behalf



Basically, a commercial property manager deals with different kinds of commercial properties from retail spaces to office buildings with multiple stories. Most of the time, commercial property owners will hire companies that offer these services to take care of the daily operations that take place in their commercial properties. This allows them to have more time in dealing with other parts of their business. For any company or commercial property manager that will be hired to manage commercial properties, they will usually be given some authority that will allow them to make crucial decisions that would have some influence on how much income the commercial property owner will receive. There are a lot of benefits to hiring the right company. To start, the property owner will be able to have lower turnover rates for their tenants and will be able to secure the best rental rates.

As mentioned above, one of the responsibilities of a commercial property manager is to be the one to do the screening of possible tenants in the property. They accept their applications as well as be the ones to do some background checks. If they find it reasonable to accept the application of the tenant for a rent of space, they will be preparing the lease. For the entire duration of the lease, the manager will see to it that the tenant will be receiving benefits and responsibilities stated in their lease agreement from their rental amount to their rental due and many more.

Furthermore, the commercial property manager will act as the middleman between the commercial property owner and the tenants. If, for instance, the tenants have any needs or problems that need catering to such as repairs of their rented space, they will immediately go see the manager. The manger will then be the one to institute the necessary measures to resolve the issue at hand. It is the role of the manager to resolve this whatever problems tenants have to benefit not just the tenants themselves but the owners as well. On the other hand, when the tenant is not able to pay the rent as stipulated in the leasing agreement or is doing something that is not stated in keeping with their agreement, then it would be the job of the manager to send an eviction notice. For every state or jurisdiction, there will be differences in their eviction regulations. If the manger will serve this notice, he or she must be sure to follow all the steps being outlined by the state about this process. By doing so, the entire process will be done legally avoiding the possibility of receiving some complaints from the tenants that they have been evicted illegally.

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The Importance of Getting a Home Loan Pre-approval While Still Looking for Houses

What majority of potential home owners enjoy a lot while going on a house hunt will be seeing what each neighborhood and each housing option offers. The houses you see from one neighborhood are clearly not the same as the houses you see from another neighborhood. Yet no matter how enjoyable this process might be, you will be investing a lot of your time and effort in it.

Nevertheless, getting the best financing option seems to be one of the most important aspects in buying a home. A wise home buyer is someone who first gets a home loan pre-approval before buying a house or better before even starting looking for the perfect one.

While going on a house hunt in your target neighborhoods, you finally found a property that is well priced. Keeping this in mind, you know that the competition will be tough to have your offer accepted by the home seller over the other bidders. It will be to your advantage then to acquire a home loan pre-approval so that when your real estate broker will offer a deal, they will tell the home seller that you are pre-approved already. If the home seller wants to sell their home fast that they cannot afford anymore to wait a couple of weeks or months to get check out the highest bidder, they will most likely take your lower offer knowing that you can surely pay them.


Getting a home loan pre-approval does not necessarily imply that you will be approved of getting a mortgage more so getting a more favorable set of terms or a particular rate. The process of being pre-approved is really all about getting yourself started in buying a house while still preparing for minimal documentation. It helps in knowing what price range of houses you can afford based on your income. Also, it can serve as a credit check that would help determine what alarming issues you might be facing.

But what is really beneficial with getting a pre-approval is the fact that you can start accomplishing your documentation requirements as recently, these requirements have become stricter. You have to provide your tax returns the past years as well as be ready to answer any question that pertains to your sources of income.

Gone are the days where not having any documentation will have you accepted to get a house loan. This is actually something very beneficial among home buyers who would want to keep their homes with them, enjoy it, and increase its assets and value in the following years. You must be able to prepare the following documentation when getting a pre-approval for your home loan: verification of employment, proof of assets, and proof of income.

Usually, lenders make sure to give the best interest rate offers to people who have obtained a credit score above 740. However, this does not automatically imply that those who have a credit score below such number cannot get a loan. They can actually still be granted, but they can always expect to be getting terms that are less favorable instead.

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Unique Concepts to Try on Your Urban Real Estate Property

One of the challenges of owning a real estate property found in urban areas is that it can be challenging to fully develop it if you are on a tight budget. However, if you live in an urban area and you have an extra lot, there are some ways for you to make use of your property without having to invest a lot of your money. Here are some unique concepts that you can try on your property that will contribute to the overall improvement of your community.


• Urban gardening
Among urban properties, gardening is gaining some popularity. And what is great about it is the fact that in just a single lot, you can grow a lot of vegetables. By just preparing a few raised beds, you cannot just grow some greens such as arugula and lettuce you can also grow bigger vegetables and some tomatoes on the side. Just a single lot can be more than enough to provide a good vegetable supply among family and friends. If not, you can turn this lot of yours into a spot where community gardening can be carried out. Allow having your neighbors plant and maintain their own plots. This will no doubt result to improving the overall diet of your entire neighborhood.

• Construction of tiny houses
In the current real estate market, smaller living spaces are becoming popular. One tiny house can easily be constructed on a trailer structure and can be used as a living space for one or two adults. For majority of cities, zoning laws are too complicated where there are some areas that do not allow people to live in small mobile houses. If you have no interest in becoming a legal residence in this tiny house, you can still utilize this space to create between two and three tiny houses and then put them up on display for sale. Your home buyers can easily transfer them to a trailer park or any suburb that have less strict zoning laws. Construction of tiny homes is not the same as that for the more traditional homes because the former will not be needing as many different permits and certifications as the latter.

• Petting zoo
For most children, there is no better feeling in the world than visiting a zoo and having a chance to pet the animals; hence, the existence of petting zoos. Aside from the children benefitting from them, the grownups also benefit from them by allowing them to do whatever it is they want. If you were growing up as a kid loving petting zoos, turning your urban lot into one can actually be a good idea. Though growing goats within city limits can help you produce some meat and milk, most cities have tight regulations against raising livestock. Collecting pets, however, is not the same as raising livestock because it is not intended for producing food. Having a petting zoo within the city can benefit a lot of children from the neighborhood by teaching them about certain kinds of animals that they can never normally see while living the modern city life.

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What Makes a Property Management Company Worth Hiring?

Your choice of property management company can either make or break your investment plans in the real estate market. There are basically a number of property managers that are present in all areas of the real estate market. Taking advantage of their services can only be made possible if you choose the right company to help you out.

• Their branding and messaging efforts
What outbound branding and messaging efforts the property management company utilizes determine how good they are in doing their job. In order for you to better understand what goes on in their daily operations, you have to be assertive and ask them the most appropriate questions.

• Their dealing with documentation
While looking for potential property management companies that you can hire, you have to first assess if they are recognized by relevant bodies and are currently licensed. As the potential client, you have the right to find out what types of properties they have managed and are currently managing. You then proceed in getting references from them. Never hire a company that cannot or will not give you the necessary documents that you need. If you are given the necessary pieces of documentation papers in person, then you can rest assured that they are operating legitimately.

• Make sure that you find out the following specific things about the property management company you plan on hiring:
– Their method of collecting and setting rent payments
– Their dealing with repair and maintenance concerns
– If they do property inspections
– Their methods of marketing and keeping tenants
– The ways in which they deal with owner and tenant funds
– The process of doing tenant screening

Other concerns that you have to speak with your potential project management company includes their management contract and their management fees.

If possible, you determine the abovementioned things from your project management company options (at least three) before you go into contract with them. Always take the necessary precautions when hiring these companies. Never settle for a company that looks promising when you still have not really talked to them in person and have brought to them the abovementioned concerns. There is nothing wrong with being able to see and talk to the company before you consider hiring them. It even pays to talk to other potential companies that you can hire rather than just talking to one. Who knows, you might find the third or the second option more promising and more capable of dealing with your project management concerns.

Denying yourself the time to talk to other companies will not let you have to do any comparisons from one company to another. You need to get some idea how each company differs in terms of their business operations so that you can really ascertain that you are hiring the right people for the job.

There are a number of websites and databases that you can benefit from when you go looking for some project management companies within your vicinity. Always make decisions after doing all the necessary research, interview, and brainstorming for each potential company that you can hire. There are a lot of qualities that make one company better than the others and you can start your search by looking into the above factors mentioned above.

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Promoting Rental Properties Better by Going Green

If you say going green, you are referring to the state of being more environmentally inclined with all aspects of your life. In terms of your home, going green is a good move when it comes to both home construction and home decorations. If you own rental properties, there are certain factors to them that determine their prices.

For instance, the number of years from date of construction, square footage, height or elevation, and site all determine the price of your rental property. However, it does not just end there. Now, their green attributes will have some bearing on the price of your rental properties as well. The green attributes of your rental properties also determine how well your property sells. Thus, if you own rental properties, it is best that you capitalize on their green attributes for you to better stand out from your other competitors. Here are some ways for you to prove that you have a green rental property.

LEED certification: Assurance is crucial in dealing with rental properties. If you want to convince your prospects that your property is green, you have to be able to secure a LEED certification and be able to present your prospects this. In the present, having this certification mean that you are well known for ensuring sustainability development. It puts a stamp on your building with a certain rating that declares its being efficient, healthy, and cost-saving. Based on current statistics, green rental properties have 9.1% more rental premium in comparison to other rental properties that do not possess LEED certification.

Energy star compliance: Another way to tell your prospects that you have a green rental property is to present to them energy star compliance. Being energy star compliant means that your property is an energy efficient one as issued by the EPA or Environmental Protection Agency. While getting the energy compliance is more common among appliances with energy-saving features, green buildings are also being issued with this symbol to give some recognition to the efforts of the owners and developers in ensuring that the property is a contributor to increasing energy efficiency and lessening carbon footprints.

Who should you market?
For green rental properties, the millennials are your target market. According to recent articles, millennials are the ones dominating the single-family rental market. They have this semi-nomadic kind of lifestyle that makes them very flexible and mobile to face new challenges to their independence, careers, and freedom. With green rental properties, millennials are given the edge of sustainability while taking advantage of their benefits without having to give up the freedom that they have always wanted.

Where should you market?
The millennials are very much attached to their technology. You can see this in almost every aspect of their lives. Clearly, you cannot see any millennial roaming around your vicinity without having some gadgets with them. It does not matter if they are at home, at the office, at food hubs, at malls, and even in the caves, mountains, forests, and beaches, millennials will always carry their smartphones, laptops, tablets, or wearable technology pieces with them.

So, if you want to entice this particular market with your green rental properties, get in touch with them using social media platforms such as Facebook, Twitter, Instagram, and many more. And surely, they will hear you out.

Posted in Real Estate

Important Financial Aspects You Must Consider Before Going on a House Hunt

Finally, you are ready to buy a home or find another home that might be more suitable for your particular needs. In order for you not to experience a lot of hassle and stress in buying a home, you have to make sure to do the necessary preparations.

This sort of preparation is also not the only thing that you can do before you buy a home, you also do certain preparations before you go on a house hunt. A house hunt is actually a must if you have plans of buying a new home or a home that you can relocate so that you can further compare certain features from one house to another.

Now before you go on a house hunt, here are some important financial aspects that you must make sure to check.

Credit report: When planning to buy a house, the first step that you must take in association with your finances always involves you reviewing your credit report. Examine it thoroughly and assess if omissions have been made as well as errors. If there are errors, make sure to take a step-by-step approach in fixing them. You should expect to use a whole lot of your time while doing this. Make sure to secure a free copy of your credit report from major credit reporting agencies. If you cannot do this task yourself, you can always hire a company that will help you out in checking if your credit report is kept up to date and contains the right information.

Stay away from additional credit: If you are serious in buying a house, before you go house hunting, be sure that 6 months prior to availing a house, you must stay away from applying for additional credit. Do not get easily tempted by stores that tell you they offer you discounts when you use your credit card to purchase from them. If you miss out paying for another of your credit, this might have some negative impact on your current credit report.

Disciplined savings: As a potential home buyer, you will have to save a huge amount of your money because by the time you will buy a house, you will have to pay for down payment as well as other additional fees and charges. Even if you will not have to pay for the upfront cost, lending institutions will still consider looking into your account to assess if you are worth lending some money to and if you can pay them off.

Prepare yourself for three essential reserves: It is never enough to buy a house with its only current value. You also have to consider three essential reserves that you must be paying for once you own a house. These three include your deposit (usually 20%), your monthly reserves (upkeep, repairs, utilities, etc.), and your contingencies (alteration, renovation, and unanticipated expenses).

Recognize your limitations: Do not turn yourself into a person who is only rich in terms of your house and poor in terms of your cash flow. Be honest in recognizing your personal limitations as well as your comfort zone. Always remember that buying a house is not all about your ego. It is best that you buy a home that you do not just enjoy but truly afford as well.

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Wholesaling Real Estate Like the Pros

There are a number of ways for a person to invest in the real estate market. However, if you prefer to invest in this market with no credit, no money, or no financial risk, then you must go with wholesaling of real estate properties. A lot of real estate investors have found success in this particular venture. However, if you are still starting in real estate investing, you might find wholesaling challenging.

Nonetheless, the idea of investing in real estate with no barriers makes real estate wholesaling a very enticing investment option. As long as you can take advantage of the good side of wholesaling, there is no doubt that you can attain some success. This can be said since wholesaling is really all about being wise in finding deals. If you can hone your skills in finding good deals, your profit potential will surely be unlimited.

After finding a good deal, you proceed in selling the real estate property to make some profit. Here are some ideas on how you can structure your wholesale properties like the pros.

Contract assignment: Though this is the easiest among the other options, you need to understand that this also carries some risk if the method is not done right. This method is also restrictive since bank owned properties are off limits for this particular wholesaling method. Even so, this is a good method of wholesaling when you are the one that directly deals the seller.

Basically, you start by getting a house that is under contract and then have your rights assigned in the contract to another buyer for a particular fee. This new buyer will be getting the responsibilities and rights stipulated in the contract and will be closing the deal in your place. It is always the better option to be getting your fee upfront; however, the most common practice for this method is only getting your fee after the buyer has bought the house. When assigning contracts, make sure to take into account the certain things.

To being, you must always disclose to your seller that you are assigning the agreement to another buyer for a particular fee. It will be better to put this into writing in the form of a contract. Sellers will not have any problems with this set-up as long as you are being transparent that you are the type of investor who buys houses for money before you go about doing some negotiations.

Double close: For this particular wholesaling method, you will be buying the house and then be reselling it. There are a number of ways that this can be done but the most common way is to buy and sell a house on the same day. Generally, you have to get some financing help so that you can better close deals with any seller.

This method is unfortunately the most expensive since you will be paying for two sets of closing costs. Nonetheless, a lot of real estate investors prefer this method since they are not required to disclose to the seller their intentions of reselling the house. The investor has every right to keep the deals with the seller and those with the buyer private. This is a wholesaling method that allows better protection of profit. Of course, the information will then become public knowledge; however, this can only be done after the contract or deal is closed.

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Figuring Out If You Should Be Hiring the Services of a General Contractor or Not

If you are a home builder, for sure, you have considered hiring the services of a general contractor or not when it comes to your projects. The most obvious reason to not hiring one is saving more of your money. But to save this amount of money, what does it entail on your part?

Before you go about figuring out if you should be hiring the services of a general contractor or not, you must first know what they do. A general contractor is basically a person who will be overseeing your construction project. They are tasked to also manage your subcontractors and help you finish your project in no time. Usually, they do not have the skills and expertise to carry out particular tasks such as electrical and plumbing. However, they are well aware of the basics of any construction project and are very well organized.

The pros of being your own general contractor
In most places, you can act as your own general contractor if the project is just small or if you are just managing and getting the services of licensed subcontractors. The value of a general contractor to your project must be paid by you. By not hiring one, you are able to save some of your money. Paying less for the remodeling or construction of a house can be more profitable to you.

Aside from saving most of your money, when you act as your own general contractor, you will gain more experience in the field. If you are a real estate investor, you should know that having some basic understanding of how you can remodel a house is a great advantage to you. In the near future, if you will do bigger projects, this experience can help you and also, you can better pinpoint bad contractors and steer clear from them.

And last, if you do not hire a general contractor, you can have more control over your home construction project. Also, this lets you avoid hiring a bad general contractor. Terminating a general contractor, no matter how bad they might be, can be very challenging. They can still have their crews working while still owing their subcontractors some money. When you are the one directly dealing with your subcontractors, the job will be more smooth sailing and less of a hassle.

The pros of hiring a general contractor
There is nothing wrong with being your own general contractor; however, if you are going to become a real estate investor, it would be best if you hire one. It can be difficult juggling investing in real estate and working in it. So, to better concentrate on your real estate investment business, it would be best to hire someone to carry out the responsibilities of being a general contractor instead. Aside from delegating your workload, here are other benefits of hiring a general contractor.

  • They have a better understanding of building code and will make sure to do their work according to such code.
  • Hiring a good one enables you to save some money on your holding costs because they can get the job done fast and efficiently.
  • Liability can be shifted through them. When something is not done right, the responsibility can go to the general contractor or their insurance company. They should also provide you warranty.
  • They can save you a whole lot of your money in the sense that they can get a better pricing from subcontractors if they have built good relationships with them. Most general contractors have also established positive relationships with material suppliers.
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Top Reasons Why You Should Own a Home

Until this day, there are still a number of people who are confused as to what is the best living arrangement for them. They choose to either rent a home or buy a home that they can call their own. It requires a number of things to own a home. You have to not only be prepared financially but also emotionally.

You need to have some understanding what owning a home means. Even so, there is no denying that owning a home is one of the best investments that you will ever make in your entire life. Owning a home is a major decision that you must make and one that should be taken seriously. This short article will give you 4 reasons why it is always for the best to own a home.

  • You do not just pay your bills but accumulate your assets. If you rent a home, you pay a certain amount to the owner of the house or building every month. No matter how much you do this, you will still not be able to accumulate ownership to the said home or building. Though renting a home entails less responsibilities, it is only by having your own home that you do not just pay for your bills but also accumulate a certain degree of equity.
  • You enjoy the benefit of tax-deductible mortgage interest. Taxes may be a headache to most people even those that are required for their home. However, there is this so-called mortgage interest deductions that benefit a lot of home owners when they reach a certain size of mortgage. Basically, after the taxes, you will pay lesser net amounts if you own a home than rent it.
  • You get ownership pride. If you rent a home, you become a tenant of the property rather than the owner. Though this implies that you have fewer responsibilities, you will have no right to customize the home that you are renting to be in keeping with your particular requirements and the changing conditions in and out of your home or even your changing family. When you own your home, you will have gained something that is intangible. You have this so-called pride of ownership that gives you some sense of being proud of yourself for owning your own home.
  • You have all the freedom to update, upgrade, renovate, change, and customize your home. Home renters or tenants cannot really do a lot about certain rooms of their home such as their bathrooms and kitchens if they landlord does not allow them to make some changes to these areas of the home. In the same way, the landlord is the same person you must approach when you have plans of doing a painting job with the home that you are renting from them.
  • Moreover, if you rent a home, it is just impractical to install or buy very pricey items that you cannot then take with you once you move. By owning a home, you have all the freedom in the world to change, customize, update, upgrade, or renovate your home according to your preferences. You can do anything with your home for as long as you secure a permit from your town or city as well as have the personal finances to back your budget up.