Monday, October 20, 2008

10 Top Tips to Add Value to Your Property For Free

1. Have a clear out. You will want to create an illusion of having ample space and you need to create as much space as possible. Having messy piles around the house, although may feel cosy and homely to you, will indicate that you don't have enough space and that your house is simply too small to accommodate you. If it's too small for you it could be too small for your potential buyer. Also, without the clutter your buyer will be more easily able to imagine how their own furniture and belongings will fit and suit each room. If they can imagine this then your property will memorable.

2. Keep your house tidy because first impressions count. A messy or unclean house will make the house uninviting to live in. Remember people viewing your house must want to actually live there and spend tens of thousands of pounds on it. Unless your buyer wants to renovate or update a house, which is the minority of buyers, they will not want to imagine themselves living in an unclean house. Of particular importance, are the bathroom and the kitchen. They have to be sparkling, ultra-hygienic with no unsavoury odours. Each viewing is a potential sale and tedious though it may be, clean thoroughly before each one. Also remember that if you indicate any lack of care, buyers may quickly take the view that you have not cared for the property and therefore there may be maintenance problems lurking which buyers will not find attractive to deal with.

3. When you have a viewing take any pets out or leave them with the neighbour. Some buyers will not be bothered by pets and it may be a common interest but other buyers will certainly find this a turn-off. Pets can mean that dirt is being brought into the house, fleas could be around, lingering odours, hair and fur on the floor and furniture and even droppings (here we're talking house rabbits, birds in bird cages, or pet hamsters and gerbils being petted out of the cage). The only exception is fish in a fish tank!

4. Get rid of any house smells. Scents are evocative and are remembered. Top smells to get rid of are smoke, pets and some cooking. Avoid using air-fresheners - they can have the effect that you are trying to hide something. Baking bread, cake and coffee smells are inviting and attractive to buyers as they evoke relaxation and general good times.

5. When you have a viewing insist that your agent accompanies the viewer and be sure you are out of the house. The potential buyer will then feel more relaxed and uninhibited. They will be able to talk freely and imagine themselves more easily living in the house. They will be able to sit down in the lounge and get a real feel of the house without feeling they are intruding. If they want to ask any questions of you, then that can be done at a later date. You will also avoid answering any difficult questions such as why you might be selling and in fact, some sellers are prone to point out the defects of their house! Of course, this needs to be avoided at all costs.

6. Most buyers apparently decide whether they like the property in the first 15 seconds. You therefore need to ensure that your property is inviting from the outside. Tidy the front, have flowers in pots and hanging baskets, move any car out of the driveway. Hide any unsightly bins and have any lights on if it is likely to be at all dark. Have a foot mat on the outside - it shows that you don't want dirt in the house. Make sure it is clear that this house is cared for and well-maintained. Many potential buyers do an initial drive-by to check out the house before viewing it and you need your property to pass this initial test.

7. Time your viewings carefully. Avoid the school runs, market days, bin-collection days and any days where traffic could be a problem. You do not want the sale of your house compromised by factors outside your control.

8. Before your first viewing ask your agent for their opinion on how your house can be made more sellable. You can ask friends but having their opinion could be awkward and possibly unwelcome - it's better to keep it to the professionals.

9. The best time of the year to sell your house is in the spring, and secondly the autumn. If you sell at the best time of the year there will be more buyers and so you'll get a better price.

10. Ensure that the property details from your estate agent such as photos and descriptions do justice to your property. Many photos could be improved upon, descriptions can be wrong and can undersell your property. For example, a garden could be described as a courtyard, a bedroom could be described as a box room. Check your property details, do not solely rely on your agent and take the initiative to sell your property in it's best light.

Spending a small amount of time to improve the desirability of your property will attract more potential buyers. You want them firstly to be interested in the property details, then at the outside of the property you want them to want to come inside. Once inside you want them to want stay inside and live there. You need to make sure that they are given the opportunity to imagine themselves living in your property. If they can do all of these things then you are more likely to receive an offer which should take you to the crucial sale.

Wednesday, October 15, 2008

Understanding Property Investment - Real Estate For Beginners

Understanding property investment is the most vital aspect of becoming a professional real estate investor. If you are just starting out in the Real Estate business then it is vital that you develop a good understanding of what is required when purchasing an investment property. Understanding property investment is the best way to feel comfortable about putting lots of your hard earned money into a home that you aren't even going to live in. I am often asked "what is the best real estate for beginners tips that I know?". Without doubt the best bit of advice that I can give you is to get a Real Estate education and truly understand property investment before you start buying houses.

To many people this advice will be quite straight forward but many of us want to run before we can walk. Some of us (myself included) decide that we are going to buy a house and then want to buy the first bit of property for sale that we see. Whilst this enthusiasm is great it is much more beneficial if you take things a little bit slower and develop a wide and complete understanding of property investment.

For instance should you buy residential or commercial property? What is stamp duty & how much will it cost me? What is capital gains tax & how much will it cost me? Where are the best Real Estate Listings? Which real estate agents should you talk to? There are many more questions that I'm sure you want to be answered but for now lets have a quick look at some of the basic concepts that any real estate for beginner books should (but don't necessarily) cover. Once you understand these concepts you will be well on you way to completely understanding property investment.

1. Residential vs. commercial property - Which one is for me?

If you are just beginning in property then I would suggest that you stick with residential property. There are many great advantages to commercial property but it is generally slightly more advanced and risky. Lets face it, most people are going to know a lot more about what people are looking for in residential houses because they have all done it themselves- whereas not too many people truly understand what makes a great commercial property investment. Remember 'Always play to your strengths'.

2. What is stamp duty & how much will it cost me?

Unfortunately you will be forced to pay capital gains tax on your investment property. The exact amounts vary depending on how much the investment property is worth but on average you can expect to pay about 5% of the properties value. For instance if you bought an investment property for $300k then you would have to pay about $15k in stamp duty.

3. What is capital gains tax & how much will it cost me?

Most professional investors never sell their investment properties so therefore capital gains is not an issue. You might be wondering "what the point in buying a house if you don't plan on selling it?" You will be surprised to know that there a easy and legal ways of accessing your profits without actually selling your house.

4. Where are the best Real Estate Listings?
When it comes to Understanding property investment it is important not to over complicate things. Today there are hundreds of websites that have 99% of all real estate listings. This will save you hours and hours of work as you dismiss hundreds of houses that in the old days you would have needed to inspect personally.

5. Which real estate agents should you talk to?

All of them - If I can give you one bit of advice it would be this

'Real Estate agents are your friends'
If you can get a good relationship with real estate agents it will make your job so much easier. Whilst they are working for the vendor it is in their interest to sell the house. Their commission won't alter too much if the house sells for $300k or $350k but for you that is a massive difference.

So in order to truly understanding property investment it is vital that you get a great education. There is so much information available on the net these days that it is very easy to great high quality free information. So what are you waiting for - Find a good Real Estate for beginner's book, read it, learn from it and then implement it. The people that truly understand property investment are the ones who will succeed.