Sunrise Homes & Renovations, Inc.

4 Critical Tips To Consider When Hiring A Home Contractor

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4 Critical Tips To Consider When Hiring A Home ContractorThere are many reasons why you might be interested in hiring a home contractor. These professionals are an important part of helping someone attain their dream home. While everyone cares about the price of the contractor, this is not the only factor that you should consider.

After all, the home is where people spend a lot of their time. By thinking about price alone, you might be sacrificing quality. It is important for you to take the proper steps when it comes to hiring a home contractor. There are a few factors that you should keep in mind.

Start The Process With A Detailed Plan

This is the step that absolutely must be completed before you even approach a contractor. If you need help with this, think about reaching out to a designer or an architect who can help you. Walk your contractor through your plan step by step. This will help the contractor give you a more accurate price estimate and will allow the contractor to ask important questions. 

Give The Project Specifications Upfront

There are certain finishes or fixtures that you might want in your home. Make sure to provide your contractor with this list ahead of time. These specifications can drastically influence the price estimate. Save your time, as well as the contractors, by providing the specifications as early as possible. That way, the contractor can figure out how much each of these specifications is going to cost.

Ask About Insurance

It is also important for you to make sure your contractor has insurance. Sometimes, accidents happen. This is a reality of the industry. The contractor probably has a large crew that he or she needs to work with to help your project come together. This is not easy. When mishaps happen, your contractor needs to be set up to deal with these issues professionally.

Ask For Client References

Lastly, it is important for you to take a look at some of your home contractor’s work. Take a look at some of the prior projects and make sure you are satisfied with what you see. This will help you get a solid idea of what your project might look like when all is said and done. 

As always, your trusted local real estate professional is an excellent resource for referrals to other quality service providers around the home.  Give them a call today and ask for a referral!

How To Find Hot Markets For Real Estate Investment

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How To Find Hot Markets For Real Estate InvestmentReal estate investors who want to build up a strong investment portfolio always keep an eye out for hot markets, which gives them a chance to pick up properties that add to their portfolio value.

A word of caution about hot markets is that if you learn about them after they are already hot, you may have missed much of the run-up that made them hot. 

Clever real estate investors try to anticipate markets that will heat up before they do, so they can buy properties in advance of increasing values. Selling properties in a hot market is how they capture profits. 

The Hot Markets

Realtor.com® identified seven markets in the United States that are currently hot markets for flipping houses. The average gross profit for house flippers is $62,700. This figure does not include the cost of making the repairs. The gross profit equals about 20% to 33% of the home’s sales price after making the repairs.

An evaluation looking for hot markets for flipping homes considered the percentage of home sales that were investment properties.

The current hot markets, in the order of activity, are:

  1. St. Louis, MO – 18.8% of home sales are investment properties. The median sales price is $189,900.
  2. Birmingham, AL – 17.3% of home sales are investment properties. The median sales price is $190,000.
  3. Miami, FL – 17% of home sales are investment properties. The median sales price is $299,900.
  4. Tampa, FL – 16.2% of home sales are investment properties. The median sales price is $230,000.
  5. Memphis, TN – 16.1% of home sales are investment properties. The median sales price is $206,300.
  6. Las Vegas, NV – 15.7% of home sales are investment properties. The median sales price is $301,800.
  7. Phoenix, AZ – 15.1% of home sales are investment properties. The median sales price is $275,800.

Hot Pockets In Cooler Markets

Another way to find opportunities is to know your local market very well and look for areas that are up and coming. Look for a fixer-upper in a decent area. Also, search in areas that are adjacent to high-priced areas. 

Look for soft barriers that can be passed easily, such as a block that is improving, which is next to another block that has already improved. Hard barriers, such as a wide street, a freeway, or a river make it more challenging for an improving neighborhood trend to pass across them.

Summary

Finding a hot market or a hot pocket comes from investigating potential growth areas and watching them. Get a feel for the trends. One strategy is to buy early when the prices are still low, rent the property for a while, and then sell later, once the market heats up.

If you are in the market for a new home or want to find out about the hot neighborhoods in your area, be sure to consult with your trusted real estate professional.

What Is Passive Real Estate Investing?

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What Is Passive Real Estate InvestingWhen you are looking to purchase a home, you might be looking for a place for you and your family to live. It might surprise you to learn that not everyone who is looking for a house is necessarily in search of a place to live.

Real estate is also a great way for someone to grow wealth. Furthermore, real estate is actually one of the most common ways that people become millionaires.

Some of the active ways that people invest in real estate include flipping houses and renting out property. This can be time-consuming and isn’t right for everyone.

If you are looking for a way to make money in real estate without flipping houses or looking for tenants, passive real estate investing might be the answer.

An Overview Of Passive Real Estate Investing

While passive is the opposite of active in this scenario, passive real estate investing does not mean that you won’t have to do anything. There is still work to be done.

When you invest in a passive manner, this means that you aren’t playing an active role in the growth of the asset, which is property in this example.

One example of passive investing is the stock market. You need to make sure that you do your homework before you start throwing money at the real estate market.

There is a serious time commitment that comes with passive real estate investing. You will also need to monitor the property values to make sure your investment is generating a solid return.

Ways To Get Involved In Passive Real Estate Investing

There are a few common ways that you can start investing in real estate, in a passive manner.

First, one of the most common ways is through the stock market. There are businesses that make their money by investing in the real estate market for you. You can buy shares of these companies who then invest your money in real estate.

Alternatively, you can also set up a partnership with an active investor. You might own the properties and then pay the active investor to rent them out to someone else.

Finally, there is also real estate crowdfunding that has come on the scene. Those looking to invest smaller amounts of money might be interested in this method which pools smaller investments together to invest in much larger real estate projects.

It’s important to talk with your trusted local real estate and mortgage professionals to get the best information for your personal situation.

How To Navigate The Changing Remodeling Market

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How To Navigate The Changing Remodeling MarketRemodeling is a common project that homeowners take on. If you are looking to remodel your home, it is important to keep in mind that this involves more than just improving your living area. If you remodel your home, you might also be expecting to generate a return on your investment. 

In prior years, a home remodel meant an increase in the value of your home. Furthermore, some people actually make money by buying homes, fixing them up, and selling them. This is commonly called “flipping.” Unfortunately, like other sectors of the economy, this market ebbs and flows. Recently, it looks like the drive to remodel homes has taken a downturn.

Why Homeowners Steer Away From Remodeling

There are financial and real estate professionals who analyze this market just as other professionals look at other areas of the economy. According to the professionals, there are a number of reasons why people might be steering away from a home remodel.

First, there has actually been a decline in home sales. This goes along with a decline in homebuilding activity. 

These factors cause homeowners to hesitate when they remodel their homes. If you are looking to sell your home, this is a prime time to remodel. You might think this remodel is necessary for your home to succeed on the market. If you aren’t looking to sell your home, there is less reason to remodel. When home sales drop, the remodeling market drops as well.

Home Price Appreciation Plays A Role

Another important factor involved in the home remodeling market is the pace of home appreciation. In prior years, the growth of home prices was outpacing the rate of income appreciation. In recent years, this trend has flipped.

When home prices aren’t rising faster than wages, there is less pressure to remodel. Instead of investing this money in a remodel, homeowners are looking to invest this money in other areas that might generate a bigger return. This has led to a reduction in the remodeling market.

Considering A Home Remodel

If you are looking to remodel your home, think about these factors ahead of time. You should expect a return on your remodeling investment. Take a look at the market before the remodel begins.

As always, your trusted real estate professional can offer advice on what improvements might help the value of your home with their experience in your marketplace.

How To Practice Electrical Safety Around Your Home

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How To Practice Electrical Safety Around Your HomeElectricity plays an important role in your home. It helps keep you warm, allows you to cook meals, and brightens up the interior of your house. At the same time, electricity is a common hazard.

Electrocution accidents can lead to burns, serious injuries, and even death. You should feel safe in your own home. Therefore, it is a smart idea for you to remember a few important tips when it comes to electrical safety at home.

Watch Out For Damaged Power Cords

One of the most common causes of electrocution accidents at home is from damaged power cords. Over time, the wires that run through the home might start to degrade. This is a danger that is often overlooked. If the protective coating on any of your wires has been stripped away, cover the cord or replace it. If you need help doing this, call a professional for help.

Overloading The Electrical Outlets

Another common source of electrical accidents comes from outlets that have been overloaded. Your outlets have been designed to deliver a certain amount of power. If you plug too many devices into the same outlet, the circuit will become overloaded. This can lead to a fire or an explosion. If you need to plug in more devices, use a power strip. These are designed to add additional outlets in a safe manner.

An Extension Cord Is A Tripping Hazard

Extension cords are great for providing electrical power to something that is far away. On the other hand, they also should not be left out constantly. These cords are long and represent a tripping hazard. In addition to a fall injury, this can also lead to serious damage to the outlet and the cord itself. This can increase the chances of something bad happening with the home’s wiring. If you are using extension cords all the time, it is a smart idea to call an electrician who can add additional outlets to the home.

Avoiding Injuries With Electrical Safety

Other common electrical safety tips include keeping powered devices away from water and supervising children at all times. Electrical injuries are serious and should be avoided at all cost. Practicing proper electrical safety is vital to preventing injuries.

If you are looking for a new home or if you are interested in listing your current property, be sure to contact your trusted real estate professional.

When’s The Best Time To Buy A House?

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When's The Best Time To Buy A HouseIf you happen to want to move to a hot market for home sellers, here is some advice. Go looking for a home to buy when it is freezing outside or the weather is otherwise severe. Buying a home is both about finding one you like and beating out others if the market has buying competition. 

Days On Market

To find out the competition for a particular market, check the median number of days that a home is listed on the market before it sells. This is called the “days on market.”

In a hot seller’s market, the median number of listing days may be very low. The national average days on market (DOM) is 62 days in America.

The top ten cities where homes sell the fastest with the lowest DOM as reported by Realtor.com® are:

  1. San Francisco, CA – DOM 28
  2. Spokane, WA – DOM 31
  3. Boston, MA – DOM 32
  4. Colorado Springs, CO – DOM 32
  5. Lafayette, IN – DOM 34
  6. Columbus, OH – DOM 34
  7. Sacramento, CA – DOM 34
  8. Santa Cruz, CA – DOM 34
  9. Midland, TX – DOM 36
  10. Odessa, TX – DOM 36

Time Of Year

Most homebuyers look for a home during spring and summer. That is when the buying competition is normally stronger. June is the worst month to buy a home if you want to get a discount.

If you can wait until fall or winter, you may see more price reductions. The best time to make a low offer may be during the short window of time between Christmas and New Year’s when virtually no one is looking to buy a home.

Use bad weather for an advantage. Go looking for a home in the dead of winter, when the roads are barely passable, and you may be the only buyer interested. Another advantage that comes from viewing a home during severe weather is that you get to see how much trouble the weather will be if you own it. 

Tax Time

One very successful real estate investor buys homes right before tax time because that is when sellers are worried about paying taxes and might be more flexible on the price.

Estate Sales

It is possible to get a nice deal on a house when a family is liquidating assets.

Divorce

A seller may be motivated by having to sell a house as part of a divorce settlement.

Summary

The main factors, if you want to get a discounted price for buying a home, are not to be in a rush to buy one and take your time finding a home that is for sale by a motivated seller. Always ask, “Why are you selling your home?” when negotiating with a seller.

And as always, ask your trusted real estate professional for advice to negotiate the best deals in your local marketplace!