Sunrise Homes & Renovations, Inc.

Real Estate Remains A Strong Wealth Management Investment

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Real Estate Remains A Strong Wealth Management InvestmentA young long-haul trucker driver once took an elder’s advice and invested all of his money into real estate. Even though he was seldom at home to enjoy the fruits of his labor, he hired a property management company to handle the properties. The advice that stuck with the driver was simple. “They’re not making any more of it, land that is.”

In terms of growing personal wealth, the real estate market may fluctuate, interest rates change, and the GDP can bounce like a ball. But, land is permanent. That may seem like a simplistic view of wealth management. Maybe it is. But that trucker retired early with multiple investment properties and a reasonably wealthy man.

His portrait in wealth management success highlights the notion that real estate remains a strong financial driver. The next logical question is whether or not now is the time to build a powerful real estate portfolio.

Current Market Conditions

Real estate investment does not necessarily follow the popular stock market thinking about buying low and selling high. In fact, investors such as the trucker had no plans to sell at all. That being said, the current real estate trends are widely considered a “seller’s market.” Are they really?

With Millennials and soon Generation Z buying up homes, inventory remains lower than demand. That naturally has resulted in an uptick in listing prices. Couple the supply and demand issue with a Fed raising rates and one might think this is a bad time to buy. Nothing could be further from the truth.

Buying rental properties are long-term investments. Buyers would be wise to do the math on how much the monthly mortgage, insurance, taxes and overhead measure against the potential revenue. Some property owners do their math based on 10 months rather than 12 to account for unexpected expenses. If the math works, it could be a valuable asset.

Real Estate Less Risky Than Stocks

Return on investment in real estate has the potential to far outpace stock buys. Consider that when you purchase a stock, things outside your control impact value and dividends. Think for a moment about how Elon Musk turned Tesla stocks into a roller coaster ride due to a few odd tweets and media interviews.

Owning property insulates investors from many external forces. Over time, rental revenue pays down the note. This allows owners the ability to siphon off money or leverage equity for additional real estate buys. With measured determination, your wealth management portfolio could include multiple properties that are paid off at retirement age. It worked for a truck driver who took some simple advice from an elder.

There’s little doubt that real estate remains a strong asset for increasing personal wealth. If you are considering a purchase, be sure to contact your trusted real estate professional as soon as possible.

Mistakes Seasoned Home Buyers Often Make

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Mistakes Seasoned Home Buyers Often MakeIt’s not uncommon today to move several times during adulthood, whether across town or across the country. Seasoned home buyers have been through the real estate process, often more than once. However, even if the home purchase has become routine, there are mistakes that can be avoided.

Stuck In The Past

The real estate market doesn’t stand still. It cycles and shifts, which is why it’s often recommended to rely on a real estate professional for an understanding of the current market. Home buyers with property purchased ten years ago, likely won’t have the same experience buying today. Don’t get stuck in the past, thinking the process will play out the same. It may, but it’s important to be ready for changes.

Skipping Homework

Whether upgrading to a larger home to accommodate a growing family or downsizing as the nest empties, it’s essential to do the homework before placing the current home on the market and committing to a new one. Certain homework needs to be done before beginning the buying process, especially if the purchase is reliant on the sale of the current home.

  • Determine if buying with cash or need to sell current home.
  • If need to sell current home first, will seller of new home offer contingency?
  • Is a flexible timeline needed for closing on current home/buying new?

Working out these types of critical details, even for seasoned home buyers, can be daunting, which is why it can be helpful to have a trusted real estate agent.

Allowing Emotions To Lead

Maybe the current house wasn’t the “forever” home. Seasoned home buyers, just like first-timers, can find themselves lost in emotions when searching for the perfect house. It’s a pitfall every home buyer should work to avoid. The home may have some of the exact features desired or be in the ideal location, but if it doesn’t fit the budget or has other issues, it’s not the right one.

Overextending Resources

Home buying is an exciting experience and it can be easy to become caught up in the process. However, overextending resources can make life after the purchase difficult. To help protect against overextension of resources later, always factor in the following when buying a home:

  • Budget
  • Time
  • DIY Abilities

Overextending on budget can directly affect the ability to make any needed repairs and if schedules are hectic, there might not be enough time for projects. In addition, it’s important to honestly take stock of DIY ability, and it’s okay to acknowledge that some jobs/repairs will require professionals or some level of assistance. 

The key for seasoned home buyers, as well as first-timers, is to never be afraid to ask questions, make lists, and rely on professional help from your trusted real estate professional.  

3 Key Advantages Of Listing Your House This Fall

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3 Key Advantages Of Listing Your House This FallHomeowners looking to maximize their return on investment often want to know what season best achieves that goal. Getting near or full asking price can be influenced by a wide range of factors, including market trends, inventory and interest rates to name a few.

It will come as good news to know there are strong indicators that this fall has unique listing advantages. That means listing a home this fall could help sellers get the price they want.

1: Inventory Remains Very Tight

The rules of supply and demand apply equally to the housing market and there are not enough homes to go around.

The single-family housing shortage has been driven by multiple factors. A large population of Millennials have entered the real estate market at a time when new home construction had been stifled for years. Simply put, the supply of new homes has significantly fallen behind the demand.

Although builders are starting to ramp up construction, the economic boom continues to position first-time buyers more quickly than the lagging supply. The real estate wild card may be how quickly construction outfits put more homes in play.

Should the building sector pivot to take advantage of higher prices, inventory could loosen in 2019. That makes this fall a prime time to maximize profitability and avoid the risk of improving supply.

2: Fall Looks Like A Seller’s Market

Although summer was once again a popular time to sell, it appears home sales did not satisfy the high demand. With fewer listings available and plenty of active buyers jumping on properties, listing this fall could put sellers in the driver’s seat.

One interesting caveat is a recent study that says buying a home is currently less expensive than renting in 35 percent of American counties. Talk about motivated buyers. By listing a property now, the odds are on the seller’s side that the home will close at a desirable price.

3: Homes Move Quickly

Market data shows that homes are selling at a fast clip across the country. According to a report by realtor.com, the median days on the market rate continues to decline.

From 2012 to 2017, the number of days a home spent on the market declined by nearly one-third in some comparable months. This year, homes are selling at a staggering rate in traditionally high-priced metropolitan markets. According to research, homes in San Jose, California, were only on the market an average of 28.6 days. In Seattle, Washington, homes sold at an average rate of 34.1 days and Nashville, Tennessee, saw a short 40.6 window. While these areas may be considered hot, they show that homes are moving quickly even in high-end areas.

Sellers may find the elixir they are looking for by listing this fall. Economic and market indicators point to a vibrant seller’s market flush with motivated buyers.

Whether you are ready to sell your current home or look for a new property, be sure to contact your trusted real estate professional.

5 Things To Know About Severe Weather And Homeowners Insurance

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5 Things To Know About Severe Weather And Homeowners InsuranceThe average homeowner feels secure knowing they have insurance in the event of a severe weather calamity. Most people believe that no matter what happens, they have paid for protection against disaster.

Unfortunately, not every homeowners insurance policy provides full reimbursement from severe weather losses. Hurricanes, tornados, earthquakes and other rare catastrophes may not be covered under your current policy. Consider the impact of these extreme events and whether you are fully insured for the subsequent losses.

1: Hurricane Damage May Not Be Fully Covered

The recent national mobilization to deal with the fallout from Hurricane Florence highlights just how catastrophic severe weather can be to people and property. That being said, homeowners generally anticipate calling their insurance carrier to file a claim after returning home and assessing the damage.

It may come as a surprise, but many policies limit reimbursement to damage attributed to high winds. For example, a tree falls on a garage or vehicle and the insurance outfit writes a check.

But damage attributed to water can be tricky. Many policies do not cover flood insurance. That could mean that water backed up in the street or a stream, lake or pond overflowing into your home might not be covered. That’s why homeowners are advised to clarify water-related coverage.

2: Floods May Not Be Covered

People living near bodies of water may be required to carry flood insurance when applying for a mortgage. Flooding represents a high risk that can result in a total loss. Lenders are often apprehensive about approving mortgages for properties in so-called “floodplains.”

FEMA offers coverage through the National Flood Insurance Program. Homeowners living just outside a flood zone may not be required to buy additional coverage. However, you are taking a significant risk.

If your policy does not cover flooding, you could be on the hook for the full cost of the home’s repair or replacement. Considering the average flood insurance policy runs about $700, it may be worth the expense to protect your investment.

3: Tornado Insurance Coverage Can Be Murky

Although most policies cover damage from tornados, premiums can run higher in regions prone to these severe weather storms. But, like hurricanes, tornados that additionally bring about flooding can pose a problem for homeowners who make a claim. A carrier may conclude that the high wind and impact damage enjoys coverage. Water, however, can be a very gray area. 

4: Earthquakes Often Not Covered

Like people who live in flood plains, earthquake riders may be required in certain areas of the country. Without additional coverage, the destruction caused by these catastrophic events may not be reimbursed. It’s imperative that people living in or around regions prone to earthquakes carry specific coverage. Imagine losing your home and still owing a monthly mortgage payment.

The important thing to glean from this overview about severe weather claims is that homeowners are wise to dig deep into their policies and have a clear, concise understanding about coverage. Keep in mind that water damage from flooding, rain and even sewer back-ups pose a significant threat to your home. For a few dollars more, enhanced severe weather insurance may be worth every penny.

Your trusted real estate professional is knowledgable about high and low risk properties. Be sure to utilize this valuable resource if you are in the market for a new property.

4 Things You Should Know About Easements, Right Of Ways

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4 Things You Should Know About Easements, Right Of WaysRobert Frost once wrote that “Good fences make good neighbors.” The poet was not referring to people bonding over the task of mending fences. Rather, defined boundaries are an important facet of neighborly relationships.

Without clearly defined property lines and rights, otherwise good people too often become embroiled in land disputes. That’s why a basic knowledge about easements and right of ways can help property owners maintain a working friendship with people whose land abuts yours.

These are four of the important elements about easements and right of ways you should know.

1: Types of Easements

An easement allows another person the right to access a property for a specific purpose. There are two basic types. Negative easements prevent an owner from using their property in a certain fashion. This might preclude building another floor on a home that would block a water view. A positive easement might allow someone access to land for the purpose of clearing timber or driving over it. The right to passage over a property remains the most common.

2: How Right Of Ways Differ

A right of way is, in fact, a type of easement. The general difference is that it is often accompanied by a defined road or pathway that one party uses to cross over. Hunters often establish right of ways with property owners and landlocked homes generally have driveways running over another person’s land.

3: How Easements Are Created

There are several ways an easement may be legally created. The first is generally called a “permissive easement.” This basically means you give permission to another party to use your land in a specific fashion. Again, driving over it to reach their property is the most common.

A key element of a permissive easement is that, in most states, it cannot become permanent without the property owner’s express authorization. In other words, allowing someone to drive over your land does not give them the right to continue forever. You can decide at any time to revoke permission.

Another way that easements are formed is by adverse possession. This tends to lead to hostilities between neighbors because one party asks the courts for a legal right to use your land based on prior usage. The lawsuit generally offers little or no compensation. It’s basically a land grab.

The more amicable way to create an easement is by granting an abutter the right to use your land. This generally entails creating a land-use agreement in which the property owner receives reasonable compensation.

4: Easements May Have Time Limits

An easement does not necessarily last forever. Some are granted with a defined expiration date. Others are recorded with the deed and are passed on from owner to owner. When buying a home, a title search should be performed that provides detail about existing easements and right of ways. This is an important part of purchasing a property because land disputes can be financially and emotionally taxing.

If you have concerns about any type of easement on a potential property, be sure to discuss it with your trusted real estate professional.

3 Things to Know About Winterizing Your Home

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3 Things to Know About Winterizing Your HomeTemperate fall weather means it’s time to put summer vacations behind you and start planning for winter weather.

Switching coveted leisure time to home chores can be a difficult challenge. More than a few homeowners want to keep kicking back on weekends. But autumn winds mean all hands on deck. Homeowners who procrastinate could find their properties vulnerable to seasonal changes. These are some things to keep in mind about winterizing your home.

Fill The Cost Gaps

Arguably the single biggest waste of money is allowing heating and cooling loss. The small gaps where doors, windows and other material meet can be a conduit for migrating air. Drafts cause utility bills to increase with homeowners reaping zero benefit. Consider addressing these areas.

  • Windows: It’s important to remember that window caulking has a limited life span. As it cracks, shrinks and expands, its efficiency diminishes. Check it annually and don’t hesitate to replace it.
  • Weather Stripping: If you live in a frigid region, weather stripping can save a boatload of cash. Most home stores carry products that act like tape and fill the seams around doors. It’s an easy DIY project that can more than pay for itself.
  • Door Guards: Similar to weather stripping, door guards are designed to eliminate drafts under the doors. There are permanent and temporary products that can address this issue.
  • Flues Need Support: Many chimneys allow mass amounts of air to flow freely into homes. You don’t need to call a mason and rework the hardware to fix this draft. Try inflating a balloon inside it to cut off air circulation. Just remember to remove it before lighting a fire.

Gutter Avoid Disaster

A common problem homeowners overlook is the gutters. When these become clogged with leaves, twigs and other material, water can back up and impact the outer walls of a home.

Water penetrations remain the single greatest danger to homes and homeowners. Moisture behind walls and under floor boards can spur dangerous mold growths. Certain molds can cause critical health conditions, particularly among our valued elders and young children.

If you live in an area that frequently suffers freezing temperatures, gutters can fill, freeze and break. Better to clean them out now than buy new ones in the spring.

Insulation Matters

When people think about insulation, the pink stuff in the attic usually comes to mind. While that remains an excellent product to mitigate energy loss, let’s talk about another type.

Water lines can be negatively impacted by cold weather. Frozen pipes can crack, burst and cause a flood. Check for areas that are exposed. It only takes one sharp cold snap to damage water lines and a home’s interior. The time and cost of wrapping exposed pipes could prove far less expensive than hiring a plumber and remediation contractor.

When preparing a home for winter, think in terms of air and water. Those are the culprits that will cost you money and jeopardize your family. 

Maintanence is a wise way to protect one of your largest investments. If you are looking to add to your portfolio or put your current home on the market, be sure to contact your trusted real estate professional.