Let’s talk about one of the most critical real estate terms out there: return on investment aka ROI. If you have any investments or you’re looking at real estate, you’ve probably heard ROI thrown around a bunch. But what does it actually mean and why should you pay attention? ROI is the amount of money you get back on an investment you’ve made–like real estate. For example, if you buy a house for $450,000 and then, after a few years, sell it for $550,000, you’ll have made all of your money back plus $100,000. That’s a pretty good investment. But ROI isn’t just important when you’re buying or selling a house. You should also make sure you consider ROI when you’re doing home renovations or putting money into your home. You want to make sure that you’ll get the money you put into renovating your home back when you sell. This is why kitchen remodels are so popular—you can almost always make all of the money back plus some. On the other hand, renovating your home to include a home gym or a rose garden in the backyard might not necessarily make buyers want to pay more for your home. As a result, you could lose money by doing these types of projects. Recouping costs and making a profit is the name of the game in real estate. Whether you’re buying, selling, or renovating, ROI is important to keep in mind so you can make smart money decisions that benefit your financial future. Want to talk about finding the best ROI remodels for your home? I have tools that can predict the added value for certain projects in specific neighborhoods! Shoot me an email if you'd like some data on projects that are adding the most value in your area!

If you are thinking about purchasing a beach house, city condo, mountain cabin, or other vacation property, let me help you do your due diligence. There is a lot to consider when owning a second home and you want to enjoy the property, not be burdened by it. The first thing to consider is what your goals are for the property. Will it be strictly a retreat for your family and friends, or do you want to earn rental income when you are not using it? If you are entering the rental market, find out what months are the high and low season for visitors. Will this conflict with your personal use of the property? The size of the property is another consideration if you want to rent it out. You may need three bedrooms for your family to vacation comfortably, but the rental market may be much higher for two-bedroom properties. You need to weigh what is more important to you. When figuring your budget, you need to know what resort fees or taxes you will be required to charge visitors, liability insurance policies you may need, costs for regular repairs and maintenance, and refurbishing household items that disappear or wear out often. Make sure you know the area laws or neighborhood rules on renting your property. Some neighborhoods do not allow short-term rentals of less than a month, others don’t allow less than a week. Some restrict the time of year, the number of people, or whether pets are allowed. If you will want to rent your property, make sure you get a referral to a reliable property manager, handyman, and cleaning service that can assist you in between guests. As you shop for properties, find out what HOA or deed restrictions are in place. If you are looking at condos or townhomes, are assessments charged for major improvements like a roof replacement, storm damage, or structural repairs, and when is the last time that happened? Is there planned construction or development in the area? You don’t want to fall in love with the view off the porch of your cabin, only to find out a new complex is planned to be built below you. Consider the ease of getting there. If you can load up the family, a few bags and groceries, and get to your vacation home with relative ease, you will be far more likely to use it often than if everyone arrives stressed out. Ideally, you want to have recreational gear and some basic provisions stored at the home so you can just pack a few clothes and perishable goods. Make sure everyone is all in. Nothing spoils a good time faster than having to force the idea on your children or spouse. If everyone is complaining about having to go rather than looking forward to the next trip, you have a problem. There are different philosophies on family vacations. Some families like to explore new places all the time. For them, a vacation home may not make sense. But, if your family philosophy is revisiting the same beloved place year after year, and creating memories there, then a vacation home may be perfect for you. If you have made the choice to look into a vacation property, I would love to help you locate the perfect property or refer you to a trusted real estate agent in that area.

If you are planning to sell your home in the near future, you may be considering selling “By Owner.” The idea of saving the money you might spend on broker’s commissions is attractive. After all, who wouldn’t want to have a few thousand more dollars to spend on their new home? However, selling your home by yourself is more time consuming and stressful than most people realize. One of the scenarios we agents see all too often is the homeowner that puts their house up for sale without planning realistically for the whole process. Then, after weeks or months of frustration, they call on a real estate agent to bail them out and get the job done quickly. So, before you put that FSBO sign in the yard, give some thought to these points from your local real estate experts: You’ll need a fair market value on your home. You may think you know what your home should sell for, but often homeowners overprice their home, which will lead to more time on the market. Real estate agents have many tools available to evaluate the market in your area and give you an accurate sales price. Buyers will lowball you on offers. Knowing you aren’t paying broker’s commissions, buyers will offer you well below your asking price, so you may not save as much as you hope. Research shows homes listed with a broker sell for more money and less time on the market than those sold by owner. Having an agent who is experienced in negotiating price and terms is well worth the cost. You will need to coordinate your own showings and open houses. Do you have the flexibility to field calls and schedule showings at all hours of the day and night? Agents are used to working 24/7 and juggling ever-changing showing schedules. You may not be prepared for shifting your family’s schedule around daily so that someone can be home to show the house. How will you respond to strangers roaming through your home, closets and cabinets? It’s well known that homes show better when the seller is not home and the buyer can look freely, under the supervision of a real estate agent. You’ll need to advertise your home. When you list with an agent, your home goes into the Multiple Listing Service (MLS), where it is available to every agent in your area, and it will appear on Zillow.com, Realtor.com and other national sites. Additionally, your agent will market your home within their network of agents, on social media, in print media, mass mailings, local signage, open houses, or other sources. There are flat fee listing services that will put your home in the MLS system, but they don’t offer you the support and personalized services a dedicated agent can give you. The process is just starting when the contract is signed. Getting under contract is the first step of many in the process, and things can, and often do, go wrong along the way. The escrow deposit, home inspection period, home appraisal, buyer’s financing approval, obtaining a clear title, and the buyer’s final walk-through are all hurdles that must be cleared. Each step requires a clear and legal paper trail that an agent knows how to properly execute to protect your rights as a seller. An agent can guide you through any complications that might arise and will be able to speak effectively on your behalf to the other parties working on your transaction. We’re here for the long haul. As your real estate agent, we want to build a lasting relationship with you. We’ll be here after closing day to help you with any additional needs. Even if you are moving to another city, you can call on us to give you referrals for professionals in your new area.