Real Estate

What every homeowner should know about their assets

Understanding how much equity you have is the first step in figuring out what you can afford when you move. And since housing prices has increased so much in recent years that most people have a lot more equity than they themselves imagine. Here’s a deeper dive into what you need to know if you’re ready to leverage your investment and put your equity toward your next home. Home Equity: What Is It and How Much Do You Have? Home equity is the difference between the actual value of your home and the amount you still owe on your mortgage. For example, if your home is worth $400,000 and you only owe $200,000 on your mortgage, your equity would be $200,000. Recent data from the Census and ATOM shows that Americans have significant wealth right now. In fact, more than two out of three homeowners have fully paid off their mortgages (is shown in green in the following graph) or have at least 50% equity in their homes (is shown in blue in the following graph): Nowadays, more homeowners are receiving a higher return on their homeownership investments when they sell, and if you have that much equity, it can be a powerful force in driving your next move. What you should do next If you are thinking about selling your home, it is important to know how much equity you have, as well as what that means for the sale of your home and your potential profits. The best way to get a clear picture is to work with your agent, while also speaking with a tax professional or financial advisor. A team of experts can help you understand your specific situation and guide you forward. Home prices have gone up, which means your equity probably has too, so you can know how much you have in your home and move forward with confidence when selling. Don’t forget to check out our latest news.

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If you don't do any renovations to your home, should you offer discounts when selling it?

Real Estate / DSKM

Last updated on August 1, 2024 A move-in ready home is highly desirable and tops most buyers' wish lists. However, if your home needs a lot of TLC, you may be wondering what your options are when it comes time to sell. Should you offer discounts on your home or invest time, energy, and/or money into updating certain spaces before listing it for sale? In today's post, we'll examine your options, taking into account the conditions of the real estate market right now. The homes on the market today fall into one of two groups Right now, there are two groups in terms of homes that are on the market. In the first group, we have houses with fair prices and in good or excellent condition. These houses sell in an average of 10 days. In the second group, there are homes that are not priced fairly and are not in good condition, and these homes sit on the market for 60 to 70 days and often sell after one or two price reductions. Are sellers offering concessions for homes that aren't move-in ready? In reality, we don't see many concessions for cosmetic improvements. Our real estate agents advise clients to price homes correctly from the start, meaning that the price reflects the state of the work needed. We are seeing more concessions being made on closing costs than recently, but that is generally to cover necessary repairs to a home. Does it make sense to improve my home before putting it up for sale? Our agents get this question very often and unfortunately there is no clear answer. Generally, the houses that are in the best condition are the ones that sell for much more than the asking price. However, the types of updates or repairs are different for every home, and the best thing you can do is contact your real estate agent many months before you plan to list your home to start a conversation about how to maximize the value of your home. Our agents offer a Physical startwhere you will be given a rough estimate of the value of your home in relation to the current market, as well as recommendations for repairs or improvements that will give you a return when you sell it. For example, many homeowners are surprised to discover that a large-scale kitchen or bathroom remodel doesn't make sense in terms of recouping their money years from now when they sell. Minor improvements to the kitchen or bathroom often pay off better than investing a lot of money in those areas. Exterior improvements are also always a good idea and often pay for themselves when the house is sold. It's never a bad idea to replace an old entry or garage door. Of course, there are always exceptions to the rule in terms of what you should or shouldn't upgrade, and these vary by area and even by neighborhood, so you should always contact a real estate agent who specializes in your general area first. Keepp reading: 14 items you shouldn't renovate before selling Visited 742 times, 35 visits today

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AirDNA vs. PriceLabs: A Comparison for Hosts and Investors

Real Estate / DSKM

The short-term rental market is booming, thanks to platforms like Airbnb, VRBO and Booking.com. For hosts and real estate investors, staying competitive means leveraging the right tools to Dynamic pricing and market analysis. Two options to consider are AirDNA vs. PriceLabs. Each offers specific benefits but pursues the same ultimate goal: Optimizing rental income: This post details everything you need to know about AirDNA and PriceLabs to help you decide which tool is best suited for your property management strategy. Quick summary of AirDNA vs PriceLabs AirDNA is a sophisticated analytics platform designed specifically for the short-term rental market. It provides comprehensive market research and competitive analysis, and offers insights into pricing strategies, occupancy rates, and revenue potential for specific locations. AirDNA’s features are geared toward hosts who want to maximize the performance of their listings by understanding market trends and fluctuations in demand. Price laboratories It focuses on automating dynamic pricing. Using data analytics and machine learning, it adjusts rental prices in real-time based on market demand, local event calendars (like the Super Bowl), seasonality, and other influencing factors. It’s an ideal tool for hosts and investors looking to effortlessly optimize their pricing strategy and ensure their properties are competitively priced to maximize occupancy and revenue. Comparison of data, features and benefits of vacation rentals Choosing between AirDNA and PriceLabs can be overwhelming. Both platforms offer advanced features designed to help hosts and new investors make strategic decisions to maximize revenue in their search for investment properties. However, it’s important to understand the differences between each service and how they can align with your goals and objectives. In this section, we’ll compare the features and benefits of AirDNA and PriceLabs, giving you a clearer picture of each platform’s offerings. AirDNA vs. PriceLabs Feature Comparison When evaluating the potential of AirDNA and PriceLabs, it is essential to take a deep look at the specific features that each platform offers. Doing so allows property managers and hosts to distinguish between unique benefits that might tip the balance in favor of one over the other. Airborne DNA Market data analysis: Provides comprehensive data to identify trends. Helps users understand the competitive landscape of the short-term rental industry and seasonal fluctuations. Competitive Perspectives: Provides detailed competitor analysis including pricing and occupancy rates to make better decisions. Revenue Projections:Provides users with future rental income predictions based on current market data, helping in long-term planning. Seasonal trend analysis: Highlights important seasonal market trends, allowing users to adjust their strategies accordingly. Price laboratories Dynamic pricing: Uses machine learning algorithms to automatically adjust Airbnb rental prices based on market demand to give hosts the best chance of earning maximum rental income. Integration capabilities: Easily integrates with multiple property management systems. Personalized pricing recommendations: Offers personalized pricing advice based on the specific market and property characteristics. Management tools: Provides features to set minimum stay requirements and track market performance, offering a comprehensive revenue management tool. In comparison, AirDNA focuses more on providing deep market insights and analysis, which can help in strategic decision making. PriceLabs puts greater emphasis on pricing automation and operational integration, aiming for efficiency and revenue optimization. AirDNA vs PriceLabs User Experience and Integration for Property Managers Ease of use is an essential aspect of any software. Let’s explore the user experience and integration capabilities of AirDNA and PriceLabs: Airborne DNA User interface: AirDNA offers a user-friendly platform that prioritizes ease of navigation, allowing users to access data and information with minimal effort. Ease of integration: While AirDNA provides excellent market data, its integration capabilities with property management systems are not as extensive. Instead, AirDNA focuses more on analytics than direct management capabilities. Support and resources: AirDNA is known for its comprehensive customer support system, which includes detailed tutorials, webinars, and efficient customer service. These tools help users get the most out of the platform. Learning curve: There is a moderate learning curve associated with utilizing the full range of features offered by AirDNA, particularly for users who are just beginning to work with portfolio analysis. Price laboratories User interface: PriceLabs features an intuitive interface designed for streamlined pricing strategy management, with easy-to-use tools and dashboards. Ease of integration: It stands out for its robust integration capabilities. It links directly with numerous property management software solutions, thus facilitating a more automated and cohesive management experience. Support and resources:PriceLabs does not offer the same level of customer support as AirDNA. However, users can contact representatives via email for assistance. Learning curve:Thanks to its focus on dynamic pricing and operational efficiency, PriceLabs is found by users to be relatively easy to adopt. With fewer complexities to begin using the platform effectively, it is a bit easier to get up and running faster. In comparison, AirDNA excels at providing a robust user experience through its analytical insights and support resources, which are designed for users looking to dig deeper into market data. PriceLabs, on the other hand, emphasizes seamless integration with property management systems and ease of use. It’s geared toward those looking to keep their operations running smoothly and optimize revenue potential automatically. AirDNA vs. PriceLabs Price Comparison When considering which platform to use, budget is important. Both AirDNA and PriceLabs offer a variety of pricing plans, including monthly or annual subscriptions. Additionally, there are different tiers depending on the level of features and access to data provided. Airborne DNA: AirDNA pricing is offered in three tiers: “Free,” “Basic,” “Pro,” and “Advanced.” Prices range from $0 to $85 per month, as well as custom plans for large investment portfolios. Price laboratories: PriceLabs offers a more dynamic pricing structure, with prices based on the number of Airbnb listings and the location of the properties. Their prices range from $19 to $125 per month. While AirDNA offers a limited free subscription, PriceLabs offers a 30-day free trial. However, both platforms require payment to access their full range of features and data. Mashvisor: A comprehensive solution for property management Mashvisor stands out as a superior alternative to PriceLabs and AirDNA.

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This type of bathroom remodel gives you the greatest return on investment.

Real Estate / DSKM

Last updated on July 12, 2024 A mid-range bathroom remodel, which costs homeowners an average of $24,000 and allows for 70% of the money to be recouped at closing, is a project with a pretty good rate of return. Compared to a high-end bathroom renovation, where you can expect to spend nearly $72,000 and recoup only 42% when you sell your home, investing in a more modest bathroom remodel makes more financial sense if you plan to sell your home in the next 3 to 5 years. Are you interested in a bathroom remodel that fits your budget? Here are the most cost-effective ways to update your space: Subway tile Subway style tiles have been a staple in kitchens and bathrooms for decades. Homeowners can't seem to get enough of the clean lines and classic look of subway style tiles. If you want to save money on your bathroom remodel, choose inexpensive subway style tiles for your walls and shower surround for a timeless look and a money-saving option. Using leftovers Instead of dismantling a still-functional vanity just because it has an outdated countertop, keep the existing cabinets and use scraps from a flagstone patio for the countertop. Project costs can quickly add up when you start changing your bathroom space. To make the most of your smaller budget, work within the confines of the existing space and use smart storage solutions to solve space issues. Don't be carried away by the personalized A custom-made vanity can easily go over your budget. Shop around at big box stores and look for online options to find a more affordable vanity that fits your space and save thousands of dollars. New doors and drawer fronts Another option to save money on an old cabinet that is in good condition is to simply replace the doors and drawer fronts and paint everything in a color that complements the hard finishes/decor in your bathroom. Maintain the garden tub Instead of removing the garden tub and opting for a sleek freestanding tub, consider keeping the garden tub and updating it. Remove the dated tiles surrounding the garden tub and choose a neutral stone that will stand the test of time. Find out more Inspiration for your home here. Visited 814 times, 815 visit(s) today

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Owning a home is the American dream

Real Estate / DSKM

Owning a home is the American dream Homeownership continues to top the list as an important part of the American dream. A recent Bankrate survey found that 78% of people rank it above other milestones like retirement and career success. Why? Security and wealth building. A fixed-rate mortgage keeps expenses stable, and as you pay down your mortgage, you build equity and financial stability. Let us make your dream of homeownership a reality. Don't forget to check out our latest news. market reports! I'm Joe Peters, a real estate agent with over twenty years of experience with Coldwell Banker Residential Brokerage. I work with people looking to buy or sell a home (or both) in Hunterdon or Somerset County, NJ. Clients rely on me for detailed market and neighborhood information and to make real estate transactions seamless. My access to big data through Coldwell Banker, plus current technology and marketing knowledge, gives clients a unique advantage.

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Things you'll want to avoid after applying for a mortgage

Real Estate / DSKM

Things you'll want to avoid after applying for a mortgage Just applied for a mortgage? Keep in mind that there are a few things you should avoid to make the closing process go smoothly: – Don't switch bank accounts – Don't apply for new credit or close accounts – Don't make any major purchases or transfers – Don't co-sign loans Pro tip: Once you've started the process, always check with your loan officer before making any financial moves. Don't forget to check out our latest news. market reports! I'm Joe Peters, a real estate agent with over twenty years of experience with Coldwell Banker Residential Brokerage. I work with people looking to buy or sell a home (or both) in Hunterdon or Somerset County, NJ. Clients rely on me for detailed market and neighborhood information and to make real estate transactions seamless. My access to big data through Coldwell Banker, plus current technology and marketing knowledge, gives clients a unique advantage.

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The dangers of overpricing your home in this market

Real Estate / DSKM

Last updated on June 29, 2024 If you're thinking about putting your home on the market soon, you may be thinking about how to price it. You may have heard that we're in a seller's market, and while that's true, the way sellers priced their homes 2 years ago in the frenzy of a post-pandemic market isn't an advisable strategy today. Inventory is declining sharply and is projected to hit five-year highs in the second half of the year. While this increase in housing availability is unlikely to change the situation enough to favor buyers over sellers, it does reframe the conversation about home asking prices. How to Price Your Home in Today's Market Our advice to sellers is to price their home correctly from the start. In today's market there are two categories: The first group includes homes that are fairly priced and in excellent condition. These homes sell in an average of 10 days. In the second group, there are homes that are not priced right and are not in great condition, and these homes sit idle for 60 to 70 days and often sell after a price reduction or two. The right way to price your home is to let the market determine it. Instead of pricing your home based on your opinion, let the market determine the sales price for maximum exposure. Although there are fewer buyers on the market than this time last year, well-priced homes in good condition are still in high demand. Just to give you an idea of what we're seeing nationally, 29% of homes sell over asking and the average number of offers each home receives is 3.1, so even though there are fewer buyers On the market, homes are still receiving multiple offers and closing above the asking price. The downside of overvaluing your home While it is true that there are more buyers than available homes, buyers look the other way when it comes to homes with an inflated asking price. Today's buyers are savvy, and given interest rates coupled with home price appreciation, an overpriced home will sit on the market. In a fast-paced market like the one we live in now, any home that stays and stays leaves buyers wondering what's wrong with it, and the longer it stays, the more this thought solidifies in buyers' minds. Typically, homes in this condition end up selling only after significantly reducing the price or a prolonged period on the market. For the best results when selling your home, we recommend that you hire an experienced agent whom you trust and who has a track record of success. It is important that the relationship is collaborative and that the agent helps you achieve your goals and objectives. Find other helpful articles on how to sell your house here. Visited 1,063 times, 3 visit(s) today

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Storage Real Estate: Pros and Cons for Investors

Real Estate / DSKM

Introduction to Self-Storage Properties Self-storage properties are designed to house numerous individual storage units of various sizes. This sector is thriving, with its market value projected to exceed $64 billion by 2026. Individuals and businesses rent these units to store items ranging from furniture and clothing to business records and inventory. Key Reasons for Using Self-Storage Moving Lack of space at home Changes in household size Downsizing Business purposes Why Investors are Drawn to Self-Storage Steady Income The self-storage industry promises a consistent income stream. Demand for storage units surged to 14.5 million in 2022, an increase of 970,000 from 2020. Owners have enjoyed an impressive annual return on investment of nearly 17% over nine years. Recession Resistance Self-storage real estate is notably resilient during economic downturns. During the pandemic, warehousing revenue rose steadily, with occupancy averaging 96.5% in Q3 2021, up from 91.5% in Q1 2020. Even during the 2008 Great Recession, self-storage showed a positive return of 5% while most REITs suffered losses. Lower Operating Costs Operating costs for storage units are relatively low, typically around 35% of revenue. These spaces experience less wear and tear than apartments, offices, or commercial properties and have fewer amenities. Property taxes account for nearly one-third of property expenses on average. Stable Cash Flow With many small units, the loss of a single tenant has minimal impact on cash flow. Vacant units can be quickly readied for new tenants, avoiding the renovation costs and time required for other property types. Advantageous Leases Month-to-month leases allow landlords to adjust rates swiftly in response to market conditions. Automatic credit card or ACH billing reduces default risks. Evictions, though undesirable, are generally simpler and quicker than for apartments or commercial tenants, with the potential to recoup losses through lien auctions of unit contents. Challenges in Self-Storage Investment Market Saturation A major risk is oversupply. Thorough market analysis is crucial to avoid investing in saturated areas, which can occur due to excessive new construction or a surge in institutional investments. Management Requirements Despite fewer management tasks compared to residential properties, self-storage facilities still require onsite staff to manage access, assist customers, and maintain equipment. On average, U.S. facilities employ 3.5 staff members each. Security Needs Facilities must have robust security measures, including access control and video surveillance. Units should be constructed with reinforced walls and doors, and tenants typically provide their own locks to enhance security. Conclusion Investing in self-storage real estate can be highly rewarding, offering recession-resistant demand, stable cash flow, and low operating costs. However, it requires diligent market research, effective management, and stringent security measures. With careful planning and a realistic understanding of the sector’s challenges, investors can capitalize on the growing demand for self-storage facilities.

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What every homeowner should know about their assets

If you don't do any renovations to your home, should you offer discounts when selling it?

AirDNA vs. PriceLabs: A Comparison for Hosts and Investors

This type of bathroom remodel gives you the greatest return on investment.

Owning a home is the American dream

Things you'll want to avoid after applying for a mortgage

The dangers of overpricing your home in this market

Storage Real Estate: Pros and Cons for Investors

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