When it comes to achieving anything in life, having a set of goals to drive you can really make all the difference. For a goal to be effective, however, it needs to have certain characteristics. As long as it does, you can be sure that you are much more likely to reach it. The purpose of goals in property investing is that it keeps you on your toes. You are much more likely to continually build your profit and your portfolio, and you will learn a lot more along the way as a result. But what should these goals look like, and what kind of goals should you ultimately be aiming for? In this post, we are going to take a look at answering both of these vital questions, so that you can expect to see much more from your investments in the coming years.
What Does A Good Goal Look Like?
Before we get into the specifics of what kind of goals property investors should seek to attain, we will first think more closely about what characteristics good goals have. With the right characteristics, a goal is much more likely to be attainable, and to teach you something along the way, so it is worth knowing more about this topic. As it happens, there are a few key elements which many goals do need to have in order to really be truly and fully effective.
One characteristic which you can’t really overlook is that a goal should be as simple as possible. Simplicity here does not mean that it is not a complex issue, just that the way the goal is defined is relatively straightforward. In other words, you should be able to express what the goal is in a basic sentence. If you can’t do that, it is likely that it is too diffuse, and won’t really get you anywhere. If you have a goal which does not seem to be simple enough, you might consider stripping it down a little. In some cases, separating it into a few different goals is a more logical approach to take, but it all depends on the mission in question.
Simplicity helps to make the goal clearer to comprehend, which might be considered a characteristic in its own right. Clarity is what ensures that your goal can be carried out easily, as it shows that you truly understand what the goal actually is. In a way, all of these characteristics are attempts to reach a state of clarity within those goals.
In order to achieve any goal, you need to have a strong idea of what actually constitutes achieving it. In other words, you should have clear criteria for the end result of the goal. Another way of putting this is that a goal should be concrete in its expectation of what you are hoping to achieve. It is much better to say that you would like to make a profit of a certain number, than to say you would like to simply make more profit. So when you are formulating your own goals, be sure to specify what the end point actually is.
Another powerful way to give your goals a little more chance of success is to ensure that they are time-oriented. As long as you have a specific time frame within which you hope to achieve the goal, you can be more certain of whether or not you have actually reached it. This is clearly important for the sake of clarity – but it also ensures that you are more likely to actually go ahead and reach for that goal. This is what most good characteristics do – they both make the goal more concrete and concise, and put the fire behind you to go and get them.
We now know exactly what a good goal should look like, but what about the specific goals of property investors? What should you actually be aiming for?
Arguably one of the most common types of goal that any investor aims for is an increase in profit. After all, what is the point of investing if not to make as much profit as possible? But setting such a goal can often be surprisingly difficult to get right. Bearing in mind the above characteristics, how can you expect to set a profit-based goal for your investment portfolio?
The best way is to bear in mind primarily the characteristic of time-bound goals. You want to be able to make a certain profit by a certain time, and that is easily the best way of ensuring that you make more and more profit. The real difficulty here is in figuring out how much profit you should expect to make, and in what kind of time frame. Nobody can really answer this for you, as it all depends on your situation, and there are so many variables to consider. But you can do a number of things to ensure that you are more likely to reach that profit goal.
One of the main revenues of income for property investors is rental income. So if you want to make more of a profit, generally the best way is to ensure that you are charging enough rent. You don’t want to be a miser of a landlord, but you do want to make as much money as possible, so this is worth looking at. Similarly, the other most effective way of making more money is to learn how to be more effective at waiting for the right time to buy and sell. Paying attention to the markets and selling your property on at the right time should really make a huge difference to how much profit you are seeing coming in.
Profit is clearly important to any property investor, so this is goal you will not want to ignore or avoid. However, it is far from being the only worthwhile goal in investment.
Another common type of goal is to want to expand your portfolio. When you start out in your investment, you will only have one property – unless you are fortunate enough to have plenty of capital behind you. But as you continue onwards in your investment, you want to try and gain more and more properties along the way. This will ensure that you are able to continue growing profits at the same time, and is another main goal to always try and achieve.
The question of how to actually grow your portfolio is often a tricky one. One of the best things you can possibly do on this front however is to find some professional assistance. You would be amazed at what the help of a property management company could do for your investment growth and portfolio expansion. They will often have knowhow which you simply don’t have, given the much more experience they generally have behind them. It is well worth making the most of such help, but you should also constantly be thinking of ways of growing your portfolio yourself. Get this right, and it will make a world of difference to how quickly you see better and better profits.
For some investors, it is much less about making a profit or expanding than it is about finding and holding on to decent property. If you are someone for whom the love of the property itself is what matters, then you might well be concerned primarily with the idea of finding properties which really appeal to you. In this case, you might formulate it as a goal in terms of finding a certain number of fantastic properties for you to have in your portfolio.
For some, it is more about renovating and building up old properties, bringing out the beauty in those places. But don’t be mistaken: doing so is still a viable way of making decent profit in the long run, and is essential for anyone who wants to be successful in property investment. If you fall into this category, all you need to do is follow your nose and see where you feel you are led to.
Another goal which you might want to consider is less about you, and more about your tenants. If you are going to be making money by renting out your property, you will find that it is essential to work hard to be the best landlord you can be. Everyone has a slightly different idea of what a good landlord is like, but there are some basic elements which most people will agree on.
For a start, you want to make sure you give the tenant space to be left alone in their property – this ensures that they do not feel hounded by you. You will also be sure to be responsible for anything that needs fixing up or which goes wrong in the property, and to do so as quickly as possible. The better a landlord you are, the more likely your tenants are happy to pay the rent.
Get these goals in line, and you will be well on your way to being a better investor.
Serious Investing: What to Consider Before Buying Commercial Real Estate
The total value of commercial real estate in the United States is estimated at around $15 trillion.
If you’re looking for an investment opportunity with a lot of potential returns, you definitely ought to consider buying commercial real estate.
Of course, buying commercial real estate is no easy feat. If you’re considering taking this approach, it’s important to know exactly what you’re getting yourself into.
Read on to learn more about commercial real estate investment.
You’ll also learn about some of the most important things you need to consider before you decide to buy commercial real estate.
Benefits of Investing in Commercial Real Estate
There are many reasons why you might want to consider investing in commercial real estate. The following are some of the greatest benefits of this particular investment strategy:
- More cash flow: Some types of commercial real estate investments yield a lot of cash and allow you to see returns much sooner
- Lower risk: All real estate investments are hard assets, which makes them more resilient to market fluctuations than things like stocks
- High appreciation of value: The value of your property can increase quickly with the help of things like good, proactive building management
- Tax benefits: There are lots of tax credits and perks available to real estate owners
Investing in commercial real estate also provides you with new educational opportunities. You get to learn more about different types of properties and investment opportunities, such as Opportunity Zone Funds and 1031 exchanges.
Tips for Buying Commercial Real Estate
There are definitely perks that come with being a commercial real estate investor. In order to experience these perks, though, you need to make smart decisions when you start buying commercial real estate.
Before you purchase a commercial property, be sure to consider the following factors:
The very first thing you need to do before you start shopping for commercial real estate is to make sure you have the financing necessary to purchase a property — any property.
Reach out to a lender to see what kind of funding you qualify for right away. This helps you know what you can afford to spend and it can help you to facilitate deals more quickly since you’ll already have the money ready to go.
Build a Great Team
There aren’t a lot of commercial real estate investors out there who work completely on their own. Commercial real estate investing is serious business, and it’s best to have a team behind you.
Find a great real estate broker who can help you track down the best properties. It’s great to have a real estate attorney and a certified public accountant (CPA) or financial advisor working with you, too.
Consider Your “Why”
Before you go ahead and invest hundreds of thousands of dollars in a piece of property, think carefully about why you want to do this. What is the purpose behind commercial real estate investing? What do you hope to gain from it?
Understanding your “why” will help you be more mindful when choosing investments.
For example, you’ll be less likely to take on highly risky ventures if your reason for commercial real estate investing is to make sure you have enough money set aside for your kids’ college tuition.
Demand vs. Sustained Demand
When you’ve found a property that seems like a good fit for you, think carefully about whether there will be a sustained demand for this kind of property.
How long, on average, will the tenants stick around? How much competition will you have in the area?
Ideally, you’ll only choose to invest in properties that have a high sustained demand. These kinds of properties will allow you to see higher, long-term returns.
Location, Location, Location
Location is key when you’re choosing a commercial real estate investment property (or any kind of real estate investment property, for that matter).
Pay special attention to the area in which the property is located and the other types of businesses that surround it.
Think, too, about the type of people who spend time in this area and consider whether they’re the type of people who might want to rent space in your building.
Consider Developer Trustworthiness
Make sure you have an experienced, trustworthy developer working with you before you invest in any kind of property.
If the developer lacks proper experience or engages in shady practices, the profitability of your property is going to suffer.
Consider their past performance and try to find someone who has experience working in the same sector as you.
Do Your Due Diligence
Be sure to do all of your homework before diving in and purchasing a particular property.
Run the numbers, consider the potential gains, and learn everything you can about the property and the developer.
Make sure this purchase is going to benefit your portfolio and won’t yield any serious financial losses.
What are the Risks?
Finally, when you’re investing in real estate, you need to consider the risks of buying a particular property. Be honest with yourself in doing this and don’t try to sugarcoat things.
Make sure that the contracts are robust and backed by considerable assets. It also helps to think about the worst-case scenario before you agree to a particular deal.
What’s the worst thing that could happen? Can you live with that worst-case scenario? Can you put parameters in place to protect yourself from it? If you can’t, it’s probably not a good investment for you.
Learn More About Real Estate Investment
As you can see, there are plenty of things you need to keep in mind when it comes to buying commercial real estate.
The commercial real estate investment process might seem a bit daunting at first. If you keep this information in mind, though, you’ll have a much easier time finding and purchasing property that best suits your needs.
Do you want to learn more about commercial real estate investment or real estate investment in general? Either way, we’ve got you covered.
Head to the Investment section of our website today to learn more about all things investment-related.
Why You Need To Know Your Property’s Value
Congratulations you’re the proud owner of a property. It’s no small feat either; when you look at the past 30 years and what’s happened to homeownership rates in the UK. They have been in steady decline, and now they’re at their lowest level.
“Official figures in the annual English Housing Survey show 62.9 per cent of English households owned their homes in the financial year 2015-16, the lowest figure since 1985.”
So once again, well done, you’re on the property ladder either as an owner occupier or an investor.
Your property is a valuable asset, and its probably worth more than your other assets combined. What you need to know is, its expected sales price or value will go up and down.
Market conditions mostly dictated by global events will change your property’s value and this is out of your control so you’ll have to get used to it.
Property Values Fluctuate
The property market is closely connected to the economy so if the economy is doing well, the property market usually is doing too with property prices going up.
If the economy is struggling, however, like it is currently, in the UK, due to Brexit uncertainty, you’ll see property prices go down.
There are other reasons too for a drop in the value of your home. Its physical condition is one that will influence it either positively or negatively.
A home in a dire condition will be worth a lot less than an equivalent home that’s in superb shape.
Make a mental note, to do regular maintenance and replacement of its interior and exterior when required. Doing a small job today is better than a big job tomorrow.
Knowing your property’s worth empowers you to make better financial decisions. For example: if it’s gone up in value, you can consider leveraging the equity in it to buy a property for investment i.e. for its rental income.
On the flip side, if your home has dropped in value and so too your equity in it, your lender may request a top up, i.e. request you increase your equity stake.
Most homeowners borrow to purchase their home and the loan is known as a ‘mortgage’. The homebuyer does have an equity stake in the property which is their initial deposit.
What they borrow however is usually the lion’s share of the property value.
On a LTV loan, the amount borrowed can be as much as 90 percent of the current value of the property, with your deposit only making up the remaining 10 percent.
Here’s an example of the actual numbers of a 90% LTV loan: If at the time of purchase, your property purchase price was £300,000, you have borrowed £270,000 and put in a deposit £30,000.
If there is a major correction in property values due to an event out of your control it will change the equity stake you hold, be it a drop or an increase.
Therefore when you’re aware of your property’s value at any given time, you’re empowered to make smart borrowing decisions on the type of loan best suits your financial position.
Home loans lenders offer many different types of mortgage products. There are variable interest rate loans, and fixed interest rate loans, where the interest rate is fixed for a set time.
The term of the loan product could be as little as six months, or 5 years or more. There is a lot on offer so please heed our warning:
It is at this time, we recommend you always get sound financial advice from your financial advisor, accountant, lender etc.
There is never a good time to just read an article like this one and take action without first seeking input from your professional service providers.
When you are ready to sell your home for whatever reason, with the knowledge of your property’s value, you’re in a much stronger position to take the right action and make the best decisions regarding how to sell your home to achieve it’s optimum sales price.
You’ll already know what you could borrow, to renovate it and you’ll also know what you’ll get back when it eventually sells. There’s nothing worse than making the wrong move and it negatively affecting your financial position, let alone you and your family’s well being.
A home is a big ticket item and a huge responsibility. However it’s manageable, which is why we love to own our own home and also invest in property too.
Stay financially literate and knowledgeable about your home so you can avoid nasty surprises and take positive action in the market as you see fit.
Toughest Rentals Rules, Landlords on Notice
Just when Kiwi (New Zealand) landlords were coming to terms with tougher measures, the government has announced even stricter regulations. After passing the Healthy Homes Guarantee, ministers have enforced a series of stipulations, which are likely to make landlording more challenging than ever before.
The Healthy Homes Guarantee Act
What does it mean for landlords and tenants?
Private landlords in New Zealand have been given a deadline to ensure their properties meet the standards set out by the Healthy Homes Guarantee Act. This set of guidelines relates to minimum standards for heating, insulation, moisture control, ventilation, and drainage.
Landlords have until July 2021 to make sure their properties are compliant. NZHousing
What rental properties must have
The Healthy Homes Guarantee Act states that rental homes must have:
- Heating systems that can warm the main living areas to a minimum of 18°
- Floor and ceiling insulation that meets the 2008 Building and Code
- Kitchens and bathrooms with extractor fans
- A ground moisture barrier to prevent damp
- Suitable drainage and guttering
- Anti-draft measures
On the surface, the measures appear to hit landlords and benefit tenants, but the added costs of running rental properties will be passed on to tenants.
Moderate weekly increases are already in force, but landlords are facing additional costs, which could spiral into the thousands over the course of the next few years. When prices go up, this usually means one thing: tenants pay more.
While many landlords were considering weekly increases as a viable option for covering elevated fees, a new rule change is set to throw a spanner in the works. It has been announced that rent changes will only be permitted once a year. So, where does this leave Kiwi landlords, and are they facing a raw deal in comparison to property owners in other countries?
How does New Zealand stack up?
New Zealand is not the only country making changes to try and improve living standards and rental conditions. In the UK, the US, and Australia, there have been policy changes, which are designed to enforce a minimum standard.
Renting is becoming increasingly popular, and in many cases, people are signing long-term contracts, or even opting to rent for life.
Australia – Rental Properties Measures
To cater for the evolving market and emerging trends, Australian policymakers have introduced a raft of measures that will undoubtedly enhance life as a tenant. Landlords in Victoria, for example, will only be able to refuse pets through a tribunal, and tenants will have the right to make cosmetic changes, for example, hanging shelves, without written consent.
Fee changes, if applicable, will also be approved once a year, rather than every 6 months. Private rental properties will also be required to satisfy standards related to security, privacy, insulation, and energy efficiency. Any tenant that moves into a home that doesn’t comply has the right to order urgent repairs or modifications.
United Kingdom – New Rental Homes Regulations
In the UK, new regulations could pave the way for minimum terms of 3 years and the abolition of tenancy fees. Landlords will also be required to ensure their properties meet eco-friendly criteria that are designed to boost energy efficiency and save tenants money.
The majority of measures across the board are focused on heating and insulation. There’s no doubt that tenants in all countries will benefit from improved systems and advanced technology, but there is always a cost to bear when policies change.
By increasing running costs for landlords, there’s a risk that tenants will end up paying more, making renting less accessible and affordable. There’s also a very strong possibility of landlords selling up. While this may provide opportunities for first-time buyers, it could also contribute to a lack of affordable housing for those who are not in a position to buy.
Further misery for Kiwi landlords?
Many private property owners in New Zealand are people who have invested in bricks and mortar as a means of boosting their income on a long-term basis. Most have a small number of properties, rather than an extensive portfolio, and the consensus is that they won’t be able to continue to profit from renting out their properties as a result of the new healthy homes measures.
When life already seemed to be getting tougher by the day for those landlords, another potential hurdle was revealed. A decision on capital gains tax is imminent. At best, this will represent an extension of current ring-fencing rules, but there’s a risk the announcement will create much wider-ranging problems for landlords.
Being a landlord is undoubtedly tougher and more expensive than ever before. Recent changes in New Zealand reflect trends in other countries, but this won’t provide a huge amount of comfort for Kiwi landlords facing higher costs and an ever-growing list of demands and requirements.
How Do Trees Affect Your Property Value?
Sometimes when we have money available to invest in our property, we are not sure or stuck on which areas of the house we should prioritize for investment in order to raise the property’s value. Trees are one investment many people tend to overlook. They can either add to your property value or reduce its value.
In this guide, we will look at arguably the most overlooked subject when it comes to adding value to your home and preventing trees from causing problems that may reduce the value of your home.
Topics we will touch on include:
- Checking that your trees are healthy
- Challenges homeowners have with neighbours and trees on boundaries
- Avoiding possible structural damage caused by tree roots
- How trees can block sunlight to key areas in your garden
When it comes to adding value to your property, trees can really make a difference and the investment is not as much as other more obvious home investment opportunities such as putting in new windows or refitting your kitchen. We will look at the choices you have and refer you to some guides and stories of people that have managed to add a reasonable amount of value to their property simply by hiring an arborist.
By the time you have finished reading this article, you should be able to understand how you can take advantage of using a tree service provider so when you come to sell the house the return on investment will be well worth your while.
1. Check Your Trees Are Healthy
Tree health is very important because if you don’t notice a tree is dying, then an appraiser coming to value your home most likely will. Tree removal will go down as work that needs doing on the house. In this case, a dying tree will need removing and as such the maximum cost of removal will be taken into consideration. That cost will be subtracted from the value of your home.
Another point worth making here is that you should have a qualified tree surgeon come into your home and certify that all your trees are in good health. It is additional paperwork that shows an expert arborist has assessed the trees in your garden and confirms they are in good health.
A healthy tree could be worth up to $10,000, so it worth getting a tree surgeon to come in and appraise your trees in your garden.
Take a look at this blog explaining how trees increase property value.
2. Challenges homeowners have with neighbours and trees on boundaries
Some people may have an issue with your tree growing into their garden – especially if the tree often sheds its dead leaves. There are ways to solve this issue. You can continuously cut/prune the tree yourself or hire an arborist to prune the true in such a way that the branches do not stretch into your neighbour’s garden.
Another big challenge is if you have a tree that is spreading its roots into your neighbour’s garden. Worst still the roots could be causing structural damage to your neighbour’s wall, driveway, or even their house. We will go into the subject of tree roots and structural damage in the next section.
Lastly, if your tree grows to high or thick, you may receive complaints from your neighbours because the tree could be blocking their sunlight. We will also look deeper into this issue in a later section.
You can read more about neighbours and overhanging branches here.
3. Avoiding possible structural damage caused by tree roots
One of the issues with trees is the unseen structural damage they can cause says Nicolas Ford of Canopy Trees. The damage could be to the property foundation, plumbing works, garden paths as well as other garden infrastructure. For this reason, you should consider seeking the advice of an arborist in order to make sure your trees have not caused any damage you may not know about.
If you come to sell the house in the future and there are trees near to the building, you can be sure that someone is going to ask to have the roots checked to make sure that they have not caused any damage. Should the inspector find that there has been damage caused or that there is potential for a tree to cause damage, this can severely reduce the market value of your property.
The reason trees can have a negative effect on your property value is down to the cost of tree removal, disposal, and the landscaping in the area where the tree was removed.
4. How trees can block sunlight to key areas in your garden
There are both positives and negatives to trees blocking sunlight in your garden. On the positive side you can plant the right type of trees to give certain areas of your garden shade on hot sunny days. People that plant trees with this strategy in mind do so usually because they have quite an open garden with not much to get in the way of the sun.
In addition to this, there could be windows in your house that the sun shines through and makes some rooms in the house unbearably hot. The only option is usually to put a blind or curtains there, but if the room only has this one window, then it will always remain dark. A strategically places tree will allow you to let the light in but block the hot rays from the sun overheating the room.
Over to the negative points and trees can also be a burden on the amount of sunlight coming into your garden. Some of the main issues you will come across with trees is disputes and complaints from neighbours about trees blocking sunlight and reducing the value of their home because your trees are negatively affecting their garden light.
If your house is the one having its sunlight blocked by your neighbour’s tree, then check out this blog here about neighbour’s tree blocking sunlight.
Where Do You Begin?
It is always hard to know where to begin when it comes to investing in trees. This is understandable and you are not alone because not many people are qualified when it comes to how trees grow or where to properly plant trees.
The best place to begin your research is online. As you can see from this guide, there are plenty of links to information provided by professionals on their websites to help you understand more about what it is you are hoping to achieve by investing money in your house.
Look for companies that offer ‘free no obligation quotes and design plans’. This will give you the opportunity to ask for 2 or 3 quotes so you can get an idea of the best price you can get the job done for. Make sure you use arborist companies that have good feedback. Even better than this, if you have friends that have had similar work done to their property, then go and take a look at the workmanship first-hand for yourself.
Expert-Approved Tips When Investing In Real Estate
Investing in real estate can be very rewarding. However, it can equally be a traumatic experience if you go in blindly. These tips will hopefully act as a guiding light as you navigate your way through this interesting venture.
1. Have a Plan
Create a business plan to gauge your successes and failures. A business plan also helps you handle the unpredictability of the real estate market. Include the following elements in your plan:
- Your goal: Set a goal that is suited to your finances and interests.
- Strategy: Find a strategy that will drive you towards your goal.
- Procedure: How you handle day-to-day activities or long term events. This can include things like how you manage your time, how you spend petty cash, how you handle revenue/windfalls etc.
Planning also makes you an attractive prospect to private investors who may want a stake in your business.
2. Acquire Information
Staying informed goes twofold:
- Learning as a newbie.
- Keeping yourself informed when you become more experienced.
As you enter the real estate industry, sponge on all the information you can from podcasts, books, blogs, videos, you name it. As a newbie, advices like these 5 real estate investing tips can really help out. Get recommendations of the appropriate learning material from the experts.
Once you strike out and become a market player, keep updating your information reserves with ongoing market trends. Watch news touching on the industry and observe how experts are reacting to it. Socialize with other investors to get the latest relevant news. Which brings us to the next point.
3. Build relationships with other Investors
Even when you establish yourself and achieve a level of success in the real estate investment arena, you still need the input of other investors (and even the process of establishing yourself you would have needed them anyway). For example, they might have information that you are not privy to and having an alliance with them will grant you access to it. As you build a network or business relationships in general, the key things to focus on are:
- Find people who align with your investment strategy
- Offer them some value back and not merely expecting the exchange to go one-way. For example, you can share your insights with them as they share theirs with you.
There are multiple avenues where you can find other like-minded real estate investors. Social media is one platform where you can source connections to build your network. Facebook groups and relevant forums can be particularly helpful in this regard. A reliable social circle can propel you to greater heights.
4. Overestimate Your budget allocations
Budgetary projections in real estate have time and again proven to be mere pointers. Things tend to not go as planned when it comes to budgeting in this industry. Overruns and delays are rampant in construction and you must cater for them to avoid crashing. A good number of experts will actually tell you to double your estimations to be on the safe side and avoid getting blindsided.
5. Find Mentors
Learning the ins and outs of the market on the fly is a good way to gather experience but having someone who will guide you is important. A mentor will shave off inordinate amounts of time off your learning curve. They can also help you avoid potentially catastrophic pitfalls and help you expand your circle. Just ensure that you make it worthwhile for them by following their advice and giving value to them in return in some way.
There are more things you need to take care of as you try your hand at real estate investing. Hopefully, these tips will set you on your way to a fruitful venture. Give it time and you will be a success.
Lemon in the Driveway? 4 Things That Will Trash Your Home’s Value
When it’s time to sell your home, there are a few factors that will determine what you’ll get. Property value, market value, and much more.
But what determines your property’s value?
There are many things that can help, or hinder, the value of your home. Some things you can control, other’s you cannot. To find out what makes property value decrease, keep reading.
What Makes Property Value Decrease?
Whether selling or thinking about investing, you should know what decreases home value. Here is a list of things for which to look.
1. Your Neighborhood
The state of your neighborhood isn’t yours to control, and that makes things difficult. It doesn’t seem fair that your home value could hinge on what others do with theirs. But, it’s an unfortunate truth.
If your neighbors have trashy yards, or if the HOA doesn’t enforce standards, it can look bad for everyone. Before buying a new home, take a drive around to look at the homes. You should also talk with the HOA and find out how strict they are.
2. Your Curb Appeal
What hurts property value most? Your curb appeal plays a large part, and it’s something you can control.
Curb appeal can hinder value through a few different ways:
- Your yard– weeds, yellow grass, and dirt patches
- Your paint– peeling paint or a bad color
- House siding– mold growing on siding
- Your Roof– missing shingles, wrong shingle type or color
- Your vehicle– chipped paint, non-working car, car parts
These things might cost money to fix, but they’ll be worth it. Fix up your yard, paint your house, and protect your paint job on the car. It might not seem like it, but these are factors in how people perceive how you’ve treated the property.
3. The Interior
When you get an appraisal, they’ll look at every nook to value your home. Any water damage, cracks, or foundation issues are recorded. But the interior paint jobs and installations will be too.
Before getting an appraisal, make sure you remove all mold and water damage. Also, check the faucets, the hoses, and appliances to make sure everything is in working order. Remember that everything counts when it comes to valuing your home.
4. The Surrounding Market
When it comes to the value of your home, the value of other people’s homes factors in. The market value around you is a direct reflection of how much you can expect to get.
If you’re able to put in an extreme amount of work, it can raise the percentage. But, in most cases, your home won’t exceed the area in which it’s selling. That’s something you should often keep in mind before buying.
More About Selling Property
Knowing what makes property value decrease gives you an edge. You’ll know what to look for, and it can put you ahead of other homeowners looking to sell. It’s all about being wise to what contributes to property value.
Want more advice on selling your property? Here are some remodeling ideas to help your home’s value.
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