5 Factors That Reveal Where The Real Estate Market Is Really Headed

It’s the old supply-and-demand predicament: Home sales in the U.S. continue at a torrid pace, but the availability of listings remains limited. Buoyed by historically low mortgage rates, buyers keep shopping for homes, reducing the available inventory and sparking a rise in home prices across the country.

News website The Atlantic summarized the sizzling home market this way:

“Pick a housing statistic at random, and it’s probably setting an all-time record. Home prices: record high. Inventory: record low. Percentage of homes selling above asking price: record high. Average time on market: record low.”¹

Meanwhile, homebuilders are contending with an increase in material costs and a shortage of labor. These issues come amid an ongoing shortage of housing. A study commissioned by the National Association of Realtors found the U.S. is coping with a deficit of about 2 million single-family homes and about 3.5 million other housing units.²

So what can we expect from U.S. real estate? Here are five factors that illustrate where the housing market is today and is likely heading tomorrow.

ROCK-BOTTOM MORTGAGE RATES TO GRADUALLY RISE

Low interest rates continue to fuel demand from homebuyers. Some experts believe mortgage rates will creep up later this year. They expect rates to remain near historic lows.³ However, the Federal Reserve signaled in mid-June that it may institute two interest rate hikes as soon as 2023. Which could then trigger a more substantial uptick in mortgage rates.⁴

In June, the Mortgage Bankers Association reported that 2020 closed with the average rate for a 30-year, fixed-rate mortgage sitting at 2.8%. But the association anticipates the average rate climbing to 3.5% at the end of 2021 and 4.2% by the end of 2022.⁵

“As the economy progresses and inflation remains elevated, we expect that rates will continue to gradually rise in the second half of the year,” said Sam Khater, chief economist at Freddie Mac.⁶

What does it mean for you?

You’ve likely heard the old saying about “striking while the iron is hot.” Well, that phrase applies to the current environment for mortgage rates. It’s impossible to predict with certainty when mortgage rates will rise or fall. So, when mortgage rates are at or near historic lows (as they are today), you should seriously consider taking advantage of those rates to borrow money for a home purchase or to refinance your existing mortgage.

HOME PRICES EXPECTED TO KEEP CLIMBING

Low mortgage rates are sparking interest among homebuyers, but some are running into affordability issues.

In June, the national median list price for a home reached an all-time high of $385,000, up 12.7% on a year-over-year basis.⁷ And according to the Home Buying Institute, various reports and forecasts indicate home prices will keep climbing throughout 2021 and into 2022.⁸

While this may be welcome news for homeowners, high prices are pushing homeownership out of reach for a growing number of first-time buyers. In a recent CoreLogic survey, 82% of respondents listed housing affordability as a key problem.⁹

“Younger and first-time buyers, including younger millennials, are faced with the challenge of having sufficient savings for a down payment, closing costs and cash reserves,” said Frank Martell, President and CEO of CoreLogic. “As we look to the balance of 2021, we expect price rises to continue which could very well push prospective buyers out of the market in many areas and slow home price growth over the next year.”⁹

What does it mean for you?

If you’re a buyer waiting on the sidelines for prices to drop, you may want to reconsider. While the pace of appreciation should taper off, home prices are expected to continue climbing. And rising mortgage rates will only make a home purchase more expensive.

SINGLE-FAMILY HOME SALES REMAIN ROBUST

While record-high prices are sidelining some buyers, the impressive pace of single-family home sales marches on.

Single-family home sales are down from their peak in October 2020 yet are still above the overall level last year. In May 2021, 5.8 million existing single-family homes were sold in the U.S. That’s a 45% increase over the 4 million homes sold in May 2020.¹⁰

However, home sales saw a 0.9% dip in May 2021 compared with the previous month, the National Association of Realtors says. That was the fourth straight month for a decline in home sales. The number of home sales has slid recently because of rising prices coupled with a shortage of available homes amid intense demand.¹⁰

Fannie Mae expects total home sales to tick up slightly in the fourth quarter and finish the year up 3.8% over last year. They also forecast a slight decline of 2.2% in sales volume in 2022.¹¹

What does it mean for you?

The market for single-family home sales remains quite active. As a result, if you’re a homeowner, you may want to ponder whether to sell now, even if you hadn’t necessarily been thinking about doing so. With demand high and inventory low, your home could fetch an eye-popping price.

LACK OF INVENTORY STILL CONSTRAINS THE HOME MARKET

According to the National Association of Realtors, in May there were 1.23 million previously owned homes on the market, down 20.6% from the same time last year.¹⁰ This translates to a 2.5-month supply of homes, which is well below the 6 months of inventory typically seen in a balanced market.^10,12

According to the Realtors group, this lack of inventory translates into tougher searches for buyers and contributes to a rise in prices.¹⁰

“Demand for bigger and more expensive accommodations amid the COVID-19 pandemic, which has left millions of Americans still working from home, is driving a housing market boom. The inventory of previously owned homes is near record lows,” according to Reuters.¹³

What does it mean for you?

If you’re thinking of selling your home, now may be the right time to do it. Across the country, it’s a seller’s market, meaning demand is outpacing supply. That supply-and-demand imbalance puts sellers in a great position to sell their homes at a premium price. The May 2021 Realtors Confidence Index from the National Association of Realtors found the average home that was sold attracted five offers, and the association says nearly half of homes are selling above list price.^14,15

CONSTRUCTION OF SINGLE-FAMILY HOMES SEES SLIGHT UPTICK

Frustrated buyers may soon find some relief, however, from an increase in new construction. Economists forecast that 1.1 million new houses will be started in 2021, compared with a predicted 940,000 units just six months ago, with 1.2 million new starts predicted for 2022 and 2023, according to the Urban Land Institute.¹⁶

Amid the rise in home construction, builders are coping with rising costs for materials. In April, the National Association of Home Builders estimated that a surge in lumber prices over the previous year had led to $35,872 being tacked onto the cost of an average new single-family home.¹⁷

“Shortages of materials and labor have builders struggling to increase production of new homes, though the demand remains strong,” Robert Frick, corporate economist at Navy Federal Credit Union, told the Reuters news service. “Potential homebuyers should expect tight inventories and rising prices for both new and existing homes for the foreseeable future.”¹⁸

Builders (and buyers) did receive some good news in June, though: Lumber prices are coming down—although likely to remain above pre-pandemic levels for the foreseeable future.¹⁹

What does it mean for you?

Given the issues affecting the new-home market, it may make sense to widen your home search to include both new and existing homes. Your brand-new dream home may not be available, but you might be able to find an existing home that lives up to your vision. Keep in mind that we can help you find either a new or existing home and can advocate for you to ensure you get the best deal possible.

ARE YOU THINKING OF BUYING OR SELLING?

If you’re in the market for a home, you’re ready to sell your house or you’ve simply been wondering whether you should sell, you definitely could benefit from an expert to help you navigate the sizzling hot real estate market. Let’s set up a free consultation to discuss your situation. We can help you figure out your options and come up with a plan to capitalize on the value of your current property or to find your ideal next home.

Don’t hesitate to take a look at the rest of our very informative Blogs on our website.

Sources:

1. The Atlantic –
   https://www.theatlantic.com/ideas/archive/2021/05/us-housing-market-records/619029/
2. Wall Street Journal – https://www.wsj.com/articles/u-s-housing-market-needs-5-5-million-more-units-says-new-report-11623835800
3. Time –
   https://time.com/nextadvisor/mortgages/mortgage-predictions-2021/
4. Bankrate –
   https://www.bankrate.com/banking/federal-reserve/fomc-meeting-recap-june-2021/
5. Mortgage Bankers Association – https://www.mba.org/news-research-and-resources/research-and-economics/forecasts-and-commentary/mortgage-finance-forecast-archives
6. Associated Press News –
   https://apnews.com/press-release/globe-newswire/mortgages-mortgage-rates-business-0fc0360d0f4af0c988504385fa2794c3
7. Realtor.com –
   https://www.realtor.com/research/june-2021-data/
8. Home Buying Institute –
   http://www.homebuyinginstitute.com/news/home-prices-will-keep-rising-through-2021/
9. DS News –
   https://dsnews.com/daily-dose/07-06-2021/record-high-home-prices-intensify-affordability-challenges
10. National Association of Realtors –
    https://www.nar.realtor/newsroom/existing-home-sales-experience-slight-skid-of-0-9-in-may
11. Fannie Mae –
    https://www.fanniemae.com/media/40561/display
12. Real Estate Center at Texas A&M University –
    https://assets.recenter.tamu.edu/documents/articles/2046-7.pdf
13. Reuters –
    https://www.reuters.com/world/us/us-housing-starts-rise-less-than-expected-may-building-permits-fall-2021-06-16/
14. National Association of Realtors – https://www.nar.realtor/research-and-statistics/research-reports/realtors-confidence-index
15. Realtor magazine –
    https://magazine.realtor/daily-news/2021/05/17/report-half-of-homes-sell-above-list-price
16. Urban Land Magazine – https://urbanland.uli.org/capital-markets/uli-forecast-sees-increased-improvement-in-outlook-for-u-s-economy-2/
17. National Association of Home Builders – https://eyeonhousing.org/2021/04/higher-lumber-costs-add-more-than-35k-to-new-home-prices-119-to-monthly-rent/
18. Reuters – https://www.reuters.com/world/us/us-housing-starts-rise-less-than-expected-may-building-permits-fall-2021-06-16/
19. NPR – https://www.npr.org/2021/06/21/1008843212/lumber-prices-are-finally-dropping-after-they-soared-during-the-pandemic

Yuri V Flores
Broker / Owner / Instructor
The RE Society – Florida Real Estate
8501 sw 124th ave
Suite 212A
Miami, Fl 33183
C: (786) 271-7468
E: Yuri@FLRESociety.com
W: SearchBeyondZillow.com or ForSaleMiamiHomes.com

Thanks for reading the 5 Factors That Reveal Where The Real Estate Market is Really Headed

The post 5 Factors That Reveal Where The Real Estate Market Is Really Headed appeared first on The RE Society - Florida Real Estate.

This article will talk about the 10 Staging Secrets from the pros for a quick Home Sale at top dollar. According to the National Association of Realtors, staging a home prior to listing it can result in a faster and more profitable sale.¹ In fact, the Real Estate Staging Association estimates that professionally staged properties spend 73 percent less time on the market, receive more foot traffic, and typically sell for more money.²

Following are 10 tips you can use to get your home “show ready” prior to hitting the market. These easy and cost-effective ideas will help your house look its best—and help buyers visualize themselves living there. Even if you’re not currently in the market to sell, you can use these tactics to breathe new life into your existing home decor.

To get a plan customized for your particular property, give us a call to schedule a free consultation. We’d be happy to share our insider knowledge of the buyer preferences in your neighborhood … so you’ll know where to focus your time, money and energy to maximize your results.

1. REMOVE CLUTTER

The most important of the 10 Staging Secrets from the pros for a quick Home Sale at top dollar is Decluttering is typically the first thing we tell clients to do to prepare their home for sale. And according to the National Association of Realtors, a whopping 93 percent of agents agree.¹ Decluttering is the act of removing excess “stuff” from your home to make it appear clean and spacious.

Overflowing closets and cluttered countertops can make your house feel small and cramped. In contrast, sparsely-filled closets and clear countertops will make your home appear larger and assure buyers that there will be plenty of room to store their belongings.

Don’t neglect drawers, cupboards and even your refrigerator in your decluttering efforts. Serious buyers will check out every nook and cranny of your home, so pack up anything you don’t use on a daily basis and store it off site. The same goes for jewelry, sensitive documents, prescription medication, firearms and other items of value. Store them in a locked safe or storage unit before opening your property to buyers.

Make sure any items that remain are clean, tidy and well organized. The good news is, when it comes time to move, a large portion of your packing will be done!

2. DEEP CLEAN AND DEODORIZE

From carpets to bathrooms to appliances, having a clean home is a MUST. If you’ve ever checked into a dirty hotel room, you can imagine how buyers can be turned off by a home that hasn’t been thoroughly cleaned.

If you have a large home, or are short on time, you may want to invest in a professional cleaning service. And if you have carpet, we generally recommend you rent a steam cleaner or hire a company to clean your carpets for you.

In addition to cleaning, it’s equally important to neutralize odors in your home that can be off-putting to buyers, especially pet smells and cigarette smoke. If the weather allows, open your windows and let in fresh air. Empty the trash frequently, and especially before a showing. Avoid cooking any strong-smelling food such as fish or heavy spices. You may need to clean (or remove) drapes and upholstery if odors are particularly strong.

Try to keep your home in clean, show-ready condition while it’s on the market. You never know when a potential buyer will want to drop by for a viewing.

3. DEPERSONALIZE

Your family photos and personal mementos are often your most treasured possessions. For many of us, they are what make a house a home. However, buyers will have a hard time envisioning themselves living in a place if it feels like YOUR home.

Pack up any items that are personal to you and your family, such as photos, books, children’s artwork, travel souvenirs and religious items. Collectibles and excessive knickknacks can be distracting to buyers. Instead, keep your decor items minimal and generic to appeal to the largest number of buyers.

4. NEUTRALIZE YOUR COLOR PALETTE

Along those same lines, bold color choices may not appeal to all buyers. By incorporating a neutral color palette throughout your home, buyers can better visualize the addition of their own furniture and decor, which may contrast with your current color scheme.

But don’t limit yourself to white and beige. Incorporating earth tones and midtone neutrals—like mocha and “greige” (grey-beige)—can add a touch of modern sophistication to your decor.³

One of the quickest and most cost-effective ways to neutralize your home’s decor is with paint. Walls painted in dark, bold or bright colors can turn off buyers. A fresh coat of paint in a neutral color like greige (try Benjamin Moore’s Revere Pewter) or warm white (such as Kelly-Moore’s Rotunda White) offers a clean palette upon which buyers can visualize adding their own personal touches.⁴

If your sofa is worn, stained or has a bold pattern, consider purchasing a neutral-colored slipcover. Dated or overly busy window coverings should be taken down or replaced. Instead, bring in tasteful pops of color with throw pillows and accessories.

5. INCREASE YOUR CURB APPEAL

You only get one chance to make a first impression. According to a 2017 report by the National Association of Realtors, 44 percent of home buyers drove by a property after viewing it online but did NOT go inside for a walkthrough.⁵ That means if your curb appeal is lacking, buyers may never make it through the door.

Walk around your home and look for any neglected areas that might seem like “red flags” to buyers, such as missing roof shingles or rotted siding. Trim trees and shrubs if needed, and make sure your lawn and flower beds are well maintained. Add some colorful flowers to your front beds and/or flower boxes to brighten up your landscaping.

Make sure the exterior of your home is as clean as the interior. This can often be accomplished with a simple garden hose. But if your siding, walkway, or driveway are stained or dingy, you may want to rent a pressure washer.

Thoroughly wash windows and screens, and remove and store dark solar screens if you have them. Open shutters, curtains and blinds, which will not only make your house look more inviting from the outside, it will brighten the inside.

Consider a fresh coat of paint on your front door, trim and shutters. And small, cosmetic improvements like new house numbers, a colorful wreath and a clean front doormat can have a big impact.⁶

6. FRESHEN KITCHENS AND BATHS

Kitchens and bathrooms will show better and appear larger if all items are cleared from the countertops, except for one or two decorative pieces.⁷ You should have already packed up non-essentials during your decluttering process, and the remaining items should be neatly stored in pantries and cupboards.

If your cabinets are dingy or outdated, adding a fresh coat of paint and new hardware is an easy and inexpensive way to make them modern and bright. Consider purchasing new shower curtains, bath mats and towels for the bathrooms and new dish towels for the kitchen.

Before each showing, make sure kitchens and baths are spotless and trash cans are empty and out of sight. To add a comforting aroma, try baking cookies, or in the fall, simmer some cinnamon sticks and cloves in a pot of water before you leave the house. In the spring, try a vase of fresh cut lilacs.⁷

7. SET THE TABLE

Buyers often imagine hosting family gatherings in their new home, and the dining room plays a large role in that vision. If your dining room chairs are stained or outdated, you may want to recover them or use slipcovers. In most cases, an imperfect table can be camouflaged with a neutral and stylish tablecloth.

Be sure the table is centered underneath the chandelier and on the area rug if you’re using one. If your dining room is small, remove all other furniture and leave only four chairs.⁸

Dress up the table using nice tableware and cloth napkins or a table runner and centerpiece. For a long table, try lining up a series of small vessels down the middle.

8. REARRANGE FURNITURE

Start in your living room and think about what you want to emphasize (and de-emphasize) about the space. For example, do you have a beautiful fireplace or a stunning view? If so, arrange the furniture with that focal point in mind. Use a symmetrical seating arrangement to create a cozy conversation area adjacent to the focal point.

If the room is small, consider removing some of the furniture to make it feel larger, especially oversized pieces. That includes oversized television sets, unless it’s a designated media room. Pulling furniture away from the wall can make the room feel more spacious, and placing your largest furniture piece in the far-left corner (as opposed to near the entry) can create the illusion of a larger space.⁹

For small bedrooms, remove all the furniture except the bed, bedside tables and a dresser. If it’s a large room, add one or two chairs and a table to create a seating area. Place lamps on the bedside tables and seating area if you have one.¹⁰

Make sure each space in your home has a clearly defined purpose. For example, if you’ve been using an extra bedroom as a catch-all storage space, stage it as a guest room or office instead. Turn an awkward alcove into a workstation or a reading corner. Help buyers imagine how they could use the space themselves.³

9. LIGHTEN UP

Lighting can have a drastic impact on the look and feel of a home. Few buyers seek out a dark house; most prefer one that’s light and bright. Make sure windows are clean, and open curtains and blinds to let in the maximum amount of daylight.

Each room should have three types of lighting: ambient (general or overhead), task (such as a reading lamp or under-cabinet light), and accent (such as a floor or table lamp). Aim for a goal of 100 total watts per 50 square feet.¹¹ If your mounted light fixtures are dated, replacing them with something more modern is an easy and inexpensive upgrade that can have a big impact.

Strategically placed landscape lighting can add a dramatic effect to your home’s exterior. Welcome evening visitors with a lighted walkway, or use a spotlight to accentuate trees or other landscaping features. Solar lights require no wiring; simply place them in a sunny spot and they will turn on automatically at dusk.

10. HIGHLIGHT YOUR BACKYARD’S BEST FEATURES

While your home’s interior often takes center stage, don’t forget about staging your home’s outdoor areas to help buyers imagine how they could utilize the space.

Even a small patio can become a selling feature with the addition of a cafe table and chairs. Add a tray of plates and coffee cups to help buyers envision a peaceful breakfast on the back porch. Place chairs and wine glasses around an outdoor firepit or hang a hammock with a book in your favorite shady spot.³ These small, simple additions can help buyers visualize the possibilities your backyard has to offer.

BEFORE YOU GET STARTED

If you’re in the market to sell your home, this list provides a great starting point for your preparations. But nothing beats the trained eye and expertise of a real estate agent. Before you do any work, we recommend consulting a professional for advice about your particular property.

We offer free, no-commitment seller consultations and will walk through your home with you to help you assess which projects and upgrades are worth your time and money, and which ones you can skip.

As local market experts, we are intimately familiar with buyer preferences in your area. We’ll run a comparative market analysis to find out how your home compares to others currently on the market, as well as those that have recently sold. Then we’ll tailor a custom plan to suit your particular property, budget and needs. I hope this blog helped by detailing the 10 Staging Secrets from the pros for a quick Home Sale at top dollar.

Please call or email us today with questions or to schedule a free consultation!

Sources:

1. National Association of Realtors –
   https://www.nar.realtor/sites/default/files/migration_files/reports/2017/2017-profile-of-home-staging-07-06-2017.pdf
2. Real Estate Staging Association –
   http://www.realestatestagingassociation.com/content.aspx?page_id=22&club_id=304550&module_id=164548
3. Houzz –
   https://www.houzz.com/ideabooks/2661221/list/sell-your-home-fast-21-staging-tips
4. HGTV –
   https://www.hgtv.com/design/outdoor-design/landscaping-and-hardscaping/10-curb-appeal-tips-from-the-pros-pictures
5. National Association of Realtors –
   https://www.nar.realtor/sites/default/files/reports/2017/2017-home-buyer-and-seller-generational-trends-03-07-2017.pdf
6. The Spruce –
   https://www.thespruce.com/must-try-neutral-paint-colors-797983
7. HouseLogic –
   https://www.houselogic.com/sell/preparing-your-home-to-sell/home-staging-checklist/
8. StageMyOwnHome.com –
   http://www.stagemyownhome.com/staging-the-dining-room.html
9. Realtor.com –
   https://www.realtor.com/advice/sell/small-living-room-staging-tricks/
10. SFGATE –
    http://homeguides.sfgate.com/stage-master-bedroom-34573.html
11. HGTV –
    https://www.hgtv.com/shows/designed-to-sell/15-secrets-of-home-staging-pictures

Yuri V Flores
Broker / Owner / Instructor
The RE Society – Florida Real Estate
8501 sw 124th ave
Suite 212A
Miami, Fl 33183
C: (786) 271-7468
E: Yuri@FLRESociety.com
W: SearchBeyondZillow.com or ForSaleMiamiHomes.com

Thank you for reading: 10 Staging Secrets from the pros for a quick Home Sale at top dollar.

The post 10 Staging Secrets From the Pros for a Quick Home Sale at Top Dollar appeared first on The RE Society - Florida Real Estate.

Could Rising Real Estate Home Prices Impact Your Net Worth is the question many are wondering after 2020. Learn how to determine your current net worth and how an investment in real estate can help improve your bottom line.

Among its many impacts, COVID-19 has had a pronounced effect on the housing market. Low home inventory and high buyer demand have driven home prices to an all-time high.¹ This has given an unexpected financial boost to many homeowners during a challenging time. However, for some renters, rising home prices are making dreams of homeownership feel further out of reach.

If you’re a homeowner, it’s important for you to understand how your home’s value contributes to your overall net worth. If you’re a renter, now is the time for you to figure out how homeownership fits into your short-term goals and your long-term financial future. An investment in real estate can help you grow your net worth, build wealth over time, and gain a foothold in the housing market to keep pace with rising prices.

What is net worth?

Net worth is the net balance of your total assets minus your total liabilities.Or, basically, it is what you own minus what you owe.²

Assets include the cash you have on hand in your checking and savings accounts, investment account balances, salable items like jewelry or a car and, of course, your home and any other real estate you own.

Liabilities include your total debt obligations like car loans, credit card debt, the amount you owe on your mortgage, and student loans. In addition, liabilities would include any other payment obligations you have, like outstanding bills and taxes.

How do I calculate my net worth?

To calculate your net worth, you’ll want to add up all of your assets and all of your liabilities. Then subtract your total liabilities from your total assets. The balance represents your current net worth.

Total Assets – Total Liabilities = Net Worth

Keep in mind that your net worth is a snapshot of your financial position at a single point in time. Your assets and liabilities will fluctuate over both the short term and long term. For example, if you take out a loan to buy a car, you decrease your liability with each payment. Of course, the value of your asset (the car) will depreciate over time, as well. An asset that is invested in stocks or bonds can be even less predictable, as it’s subject to daily fluctuations in the market.

As a homeowner, you enjoy significant stability through your monthly real estate investment, also known as your home mortgage payment. While the actual value of your home can fluctuate depending on market conditions, your mortgage payment will decrease your liability each month. And unlike a vehicle purchase, the value of your home is likely to appreciate over time, which can help to grow your net worth. Right now, your asset may be worth significantly more than it was this time last year.³

If you’re a homeowner, contact us for an estimate of your home’s market value so that you can factor it into your net worth calculation. If you’re not a current homeowner, let’s talk about how homes in our area have appreciated over the last several years. That way, you can get an idea of how a home purchase could positively affect your net worth.

How can real estate increase my net worth?

When you put your real estate dollars to work, it’s possible to grow your net worth, generate cash flow, and even fund your retirement. We can help you realize the possibilities and maximize the return on your investment. Let’s keep getting to the root question, Could Rising Real Estate Home Prices Impact Your Net Worth?

Property Appreciation

Generally, property appreciates in one of two ways: either through changes to the overall market or through value-added modifications to the property itself.

1. Rising prices

This type of property appreciation is the one that many homeowners are enjoying right now. Buyer demand is at an all-time high due to a combination of record-low interest rates and limited housing inventory.⁴ At other times, rising home prices have been attributed to different factors. Certain local conditions—like a new commercial development, influx of jobs, or infrastructure project—can encourage rapid growth in a community or region and a corresponding rise in home values. Historically, home prices have been shown to experience an upward trend punctuated by intermittent booms and corrections.⁵

2. Strategic home improvements

Well-planned and executed home improvements can also impact a home’s value and increase homeowner equity at the same time. The type of home improvement should be appropriate for the home and in tune with the desires of local buyers.

For example, a tasteful exterior remodel that is in keeping with the preferences of local home buyers is likely to add significant value to a home, while remodeling the home to look like the Taj Mahal or a favorite theme park attraction will not. A modern kitchen remodel tends to add value, while a kitchen remodel that is overly expensive or personalized may not provide an adequate return on investment.

Investment Property

You may be used to thinking of investments primarily in terms of stocks and bonds. However, the purchase of a real estate investment property offers the opportunity to increase your net worth both upon purchase and year after year through appreciation. In addition, rental payments can have a positive impact on your monthly income and cash flow. If you currently have significant equity in your home, let’s talk about how you could put that equity to work by funding the purchase of an investment property. You may use this site to search for new investment properties, www.SearchBeyondZillow.com or www.ForSaleMiamiHomes.com

1. Long-term or traditional rental

A long-term rental property is one that is leased for an extended period and typically used as a primary residence by the renter. This type of real estate investment offers you the opportunity to generate consistent cash flow while building equity and appreciation.⁶

As an owner, you don’t usually have to worry about paying the utility bills or furnishing the property—both of which are typically covered by the tenant. Add to this the fact that traditional tenants translate into less time and effort spent on day-to-day property management, and long-term rentals are an attractive option for many investors.

2. Short-term or vacation rental

Short-term rentals are often referred to as vacation rentals because they are primarily geared towards recreational travelers. And as more people start to feel comfortable traveling again, the short-term rental market is poised to become a more popular option than ever. In 2020 alone, in the thick of widespread travel bans, the short-term rental platform Airbnb’s market share of the hospitality industry reached as high as 41 percent.⁶

Investing in a short-term rental offers many benefits. If you purchase an investment property in a top tourist destination, you can expect steady demand from travelers while taking advantage of any non-rented periods to enjoy the home yourself. You can also adjust your rental price around peak demand to maximize your cash flow while building equity and long-term appreciation.

To reap these benefits, however, you’ll need to understand the local laws and regulations on short-term rentals. We can help you identify suitable markets with investment potential.

WE’RE HERE TO HELP

Ready to calculate your personal net worth? Contact us for an easy-to-use worksheet and to find out your home’s current value. And if you want to learn more about growing your net worth through real estate, we can schedule a free consultation to answer your questions and explore your options. Whether you’re hoping to maximize the value of your current home or invest in a new property, we’re here to help you achieve your real estate goals. Hopefully this blog helped to under and answer the key questions, could rising real estate home prices impact your net worth?

The above references an opinion and is for informational purposes only.  It is not intended to be financial advice. Consult the appropriate professionals for advice regarding your individual needs.

Sources:

1. National Association of Realtors –
   https://www.nar.realtor/newsroom/housing-market-reaches-record-high-home-price-and-gains-in-march
2. Forbes –
   https://www.forbes.com/advisor/investing/what-is-net-worth/
3. The Washington Post –
   https://www.washingtonpost.com/business/on-small-business/your-net-worth-is-americas-secret-economic-weapon/2020/08/20/70df5b92-e2d4-11ea-82d8-5e55d47e90ca_story.html
4. Bloomberg –
   https://www.bloomberg.com/news/articles/2021-04-09/home-prices-soar-in-frenzied-u-s-market-drained-of-supply
5. Federal Reserve Economic Data –
   https://fred.stlouisfed.org/series/MSPUS
6. Propmodo –
   https://www.propmodo.com/what-the-growing-short-term-rental-market-means-for-multifamily-real-estate/
7. The RE Society Blog Page – Blog – The RE Society – Florida Real Estate (flresociety.com)

Yuri V Flores
Broker / Owner / Instructor
The RE Society – Florida Real Estate
8501 sw 124th ave
Suite 212A
Miami, Fl 33183
C: (786) 271-7468
E: Yuri@FLRESociety.com
W: SearchBeyondZillow.com

The post Could Rising Real Estate Home Prices Impact Your Net Worth? appeared first on The RE Society - Florida Real Estate.

So you’re considering a career change, then why not Real Estate? Let me tell you why I, Yuri V Flores, got into this business. I’ve been in Miami real estate now almost 17 years from the moment of writing this blog. I have always had a passion for sales itself. Moved from business to business, until I ended up working in accounting for 5 years. I must tell you though, although I give a lot of thanks to that Company for giving me an opportunity.

My decision to leave it was the day I asked if I can have the opportunity to join the Sales Department. I was basically told the following; ‘sorry family only’. That’s the moment I realized it’s time to make that leap that I have always wanted. No longer did I want to work for others, but it was time to build my business, and make it successful.

I remember my neighbor at the time who was our Real Estate agent, talking to me about the business. It intrigued me so I decided, this is the right place, right time to be having this conversation. I made that leap. I tell you though it wasn’t easy. The real estate school I attended really didn’t prepare me, for what is to happen after you get your license. So I looked to that neighbor who I felt would take me under his wing. Unfortunately, that also turned out to not pan out, even after joining his Real Estate company which at the time was the largest organization in the world. I felt lost, confused, asking myself did I make the right decision.

Many will talk about the ups, downs, and depression about real estate. Well I’m here to tell you they do exist. It took almost 8 months to make that first check. Back in the days agents would guard what they call “their secrets” so there was not much help. Just a few here and there which I thank. So you may ask yourself why go through with it.

I will fall down and get back up always I told myself. I will not go back to work for anyone I kept telling myself. So even through the real estate crash, I kept on and kept on. Building my business, but most importantly building my brand. I finally realized, that the business is not about sales, but about your name, your brand, and marketing to all you can in ways others may not have done yet.

Check out one of my first ever videos (Disclosure, I covered up the logo once I moved to my 2nd company which was KW, where I remained another 8 years):

Back to the question in the title. I gave you a quick excerpt to show you where I began and how hard it was to get going, in order to better understand that this business is not easy. As long as you keep reminding yourself why you’re making the leap. Understand your big why? your motivation? and push yourself to success, because just as the old saying said, “if you build it, they will come…” Let me tell you a bit about how my came.

After so much sweat and tears, I not only own and manage my own firm called The RE Society, LLC., but I am also the owner/instructor of The Society Real Estate School, LLC., and now recently my fiancé Isabel Diaz and I launched Florida Real Estate Tutor . We now manage over 35 agents and growing in less than 1.5 years. We have had over 1200+ students of Real Estate pass through our doors. This is what this career has built for us. There was a time I asked another to give me the opportunity to grow in their company and was denied.

Now I own 3 companies. This is why Real Estate was the right choice for me. It has allowed me to take trips, have time for my family, be there for my family and create new dreams for many more. This gave me a reason to wake up day in day out. My passion for it only grows stronger. I now make sure that all my students know and expect more as they leave my school. I make it a point that they will never go through what I went through, if they give me that opportunity.

So I leave you with this. If after reading this blog you’re still considering a career change, and you want to look into Real Estate?, check us out, or just call me and join The RE Society Family.

Yuri V Flores
Broker / Owner / Instructor
The RE Society – Florida Real Estate
8501 sw 124th ave
Suite 212A
Miami, Fl 33183
C: (786) 271-7468
E: Yuri@FLRESociety.com
W: ForSaleMiamiHomes.com

The post Considering a Career Change? appeared first on The RE Society - Florida Real Estate.

As anybody who has ever bought a house before knows, real estate is quite expensive! Many buyers, although elated that they’re about to be homeowners (either for the first time or in new digs), also realize that they need to budget carefully for their move so they don’t get overextended during their new-home honeymoon.

What do you need to know in order to be able to move on a budget — and get it all done without losing your mind? Here are things to consider.

Assess your time vs. money situation

The economics of moving your household are pretty simple: If you have the time to do it all yourself, then you won’t have to spend any money. Or, if you have enough money to pay for other people to move you, then you won’t have to spend any of your own time.

So the first thing to think about is how valuable your time is and how valuable your money is right now. This will likely be different depending on your life stage, what you do for a living, and how much time you have available to you for your move. If you’re a first-time homebuyer in your 20s with no kids, then it might make sense to do more of the moving yourself; if you’re a move-up buyer in your 40s with a big household, then you might want to think about using your time to make enough money to pay movers.

Don’t eliminate options without doing some research

One insidious thing about trying to budget for a move is that it’s not always apparent which option is actually more expensive. By the time you pack up your entire house, spend your money on a truck, and fill it up with gas as you drive — are you really saving that much over a flat-fee moving service? Possibly, but quite probably not.

Look into all your different options and consider all of the different expenses and components that go into them. This is probably going to take some research; a full-service moving company is obviously going to do more for you than a flat-fee company, but how much, exactly, are those differences worth? Would it make the most sense to pack your stuff up yourself and hire movers to haul it to your new place?

While you’re exploring your options, make sure you’re checking review sites like Yelp so that you know what kind of quality you can expect from any moving services you might hire. Evaluate how much hiring a truck and paying for gas and mileage could cost you. And think about alternate options, like a PODS (portable on-demand storage) module that you can fill up with your belongings for a truck to haul away.

Platforms like TaskRabbit can also be good ways to facilitate a move if you don’t want to go with a full-service or flat-fee mover. Maybe instead you can hire a couple of people on TaskRabbit to help you shlep boxes.

Time your move as best you can

You’ve probably heard the saying “timing is everything,” and that is also true when moving. You could save a significant amount of money by timing your move to coincide with low-demand times of the month or of the year.

Summertime, for example, is a pretty expensive time of year to move. Lots of other households are trying to take advantage of both the weather and the break from school to make changes in their lives, and if you can wait until the fall or winter to move, then you’ll probably get some better rates from any moving companies you talk to.

Moving companies also tend to get booked up toward the end of the month, when many leases expire, so if you can time your move at any other time of the month, that can also be helpful. Weekly timing also can affect your budget; weekend moves are almost always going to be more expensive than moving on a weekday. And even the time of day matters, when you factor in a rush-hour — if you rented a truck and you’re stuck in traffic with it, you could incur a late fee, so try to avoid moving during peak traffic hours.

Get rid of as much as you can

Minimalism might be having a bit of a moment right now, but even if you’re a packrat, you have to acknowledge the wisdom in the concept that you won’t have to pay to move things that you don’t own anymore. When you’ve determined how much time and money you can spend on your move, and you’ve figured out when you’ll be moving, it’s time to start narrowing down what to move as much as you possibly can.

Start with any big items that don’t appeal to you as much as they used to, or that won’t fit in your new place, or that you don’t need anymore. There are all kinds of ways to get rid of things today, including Craigslist and Facebook Marketplace; take pictures of your items and advertise them online.

You can always donate anything that nobody buys, but you just might make enough money off of your virtual garage sale to help pay for movers … especially once you’ve reduced what they have to move.

Don’t pay for boxes

When you’re moving on a budget, boxes are one of the very last things you should pay for — there are so many ways to get free boxes to move your things, and they can really add up if you’re buying them new from the truck-rental place.

Where can you find cheap or free boxes? Try your workplace, first and foremost. If you work in an office, there are probably boxes for printer paper that work well for moving. Restaurants get food delivered regularly, and that food arrives inboxes. Grocery stores and liquor stores also often have repositories of boxes, and if all those fail, you can always beg your friends on social media for any boxes they have handy to spare.

Use what you have for packing materials

Bubble wrap, like boxes, is one of those moving expenses that feels especially painful; it’s disposable and literally only used to get your belongings safely from one place to another. One easy way to save money is to use the fabrics in your house — sheets, towels, blankets, coats, sweaters, and so on — to wrap breakables like your dishes or vases.

This does work well, and your items will arrive intact at the other end; however, you may find yourself with quite a bit of laundry to do as you unpack from your journey. You’ve been warned!

Consider USPS Media Mail

You wouldn’t think that mailing yourself your belongings would be a very cost-effective way to move, but that’s probably because you’re not familiar with USPS Media Mail. This is a service that allows you to mail certain educational-material items, such as books and movies, at a very reasonable rate. (Unfortunately, comic books do not count.) The Media Mail rates are based on weight, but once you do the math, you might discover that mailing the bulk of your books and movies will allow you to rent a smaller vehicle and save a lot of money.

Do what it takes to get your deposit back

If you’re renting, then you probably put down a security deposit on your place. What are the odds that you’ll get it back? This can be an easy way for landlords to earn money; people are tired after packing up all their things, and one of the very last things you want to do is scour the house you’re going to leave.

But don’t get lazy and hand over that hard-earned security deposit to your landlord. It’s already been sitting in their bank account, accruing interest that’s not yours — now it’s time to get that money back and make it work for you instead.

Write it off if you can

You might have heard that you can write off a move for work on your taxes. This was true until 2017 when the tax law changed; now, the IRS no longer lets taxpayers write off moves for employment on their federal return — but some states, such as California, still allow residents to write off a move. Look into your local state laws or check with an accountant to see if you could get some kind of break for your move. 

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