Published at Wednesday, February 13th, 2019 - 18:28:36 PM. House. By .
Buying A House - Design and Style Tips : We are going to start this entry with a basic overview of the designs and styles of houses. The different types are as follows: Ranch - One level Split Level Split Foyer 1.5 Story 2 Story Patio Home Condominiums Town House To understand the difference between the types of houses we should look at things someone would normally consider when they buy a house. If someone does not want to walk up and down stairs it would be a natural assumption a ranch or patio style house would best suit their needs. Someone that does not want to cut grass would be more interested in a condominium or town house. The people with children or an expanding family would probably lean toward a split level, split foyer, 1.5 story, or 2 story. Especially if they need their own space. Does the House Conform When we ask if the house conform we are asking a basic question. Does your house look like the Jones down the street? We all want to be different in some ways but being different in Real Estate is not always a good idea. This can drastically affect the value of the house youre buying. If the house is a lot bigger or smaller than the other houses in the neighborhood, it does not conform. When buying a house you never want to buy the biggest house because the value will never be maximized to its full potential. If you are going to buy a house that does not conform, buy the smaller house. Think of it with this example, if Donald Trump lived in your neighborhood would his house help or hurt your value? The answer is Donald Trumps house would help the value of your house because he is always going to have the very best house. Your house on the other hand would hurt Donald Trumps value because your house would bring his value down. This is why you see similar designs and styles in a neighborhood. The reason for buying a house smaller than any others in the neighborhood is because the only way the value can go is up. The most inexpensive addition anyone can make to a house is adding square footage. No one ever tears down part of their house to make it conform to their neighbors. Things You Notice But Do Not Realize Have you ever noticed there are always more condominiums, town houses, and patio homes for sale in a neighborhood than there are in a traditional neighborhood? There are many reasons for this activity but we will cover the most important. When buying a house you should examine competition. Competition is what is for sale in the neighborhood, how many and for how much, compared to the house youre interested in buying. For these types of homes, they are usually a first or last time home buyer. This means the young married couple or the elderly that down-sized. In these neighborhoods, there is always what I refer to as a fire sale. Someone is expecting a baby and needs more room so they need to sell fast. When a fire sale takes place there is always a drop in the asking price to try to sell it before any of their neighbors. This is a good strategy for them since all of the homes are identical. This is not good for you though. This is also called the principle of substitution. Why pay more for the exact same thing when you can get it on sale down the street? The value in these neighborhoods struggle to appreciate and go up in value because there is so much competition compared to a traditional neighborhood. How and Why to Bargain Shop When Buying a House It is unfortunate to have as many deals on the market as there are today. It does not make you less of a person to look for a foreclosure or short sale when youre buying a house. A house is your greatest savings account. If you look at these types of houses they will most likely need repairs. This is perfect for you as a buyer. The market is slow and Lowes is not selling as much. If Lowes isnt selling as much then contractors are not working as much. This benefits anyone buying a house if they will use the discounts available to them in the market. The house down the street is selling for $150,000, but the foreclosure is selling for $65,000. The foreclosure looks horrible and not very appealing in its current state. Take the blinders off and imagine it like the house down the street once the repairs are completed. Lets say the repairs cost $30,000, with the foreclosure. You saved $55,000, instantly by buying the foreclosure. If you buy the house down the street you are going to paint it at the least to match your taste. Now youre in debt because you paid full price and spent money after the fact. There are mortgage loans to buy and repair from the very beginning so take advantage of them. The most recognized is the FHA 203(k) loan. There is also Homepath sponsored by Fannie Mae. You can look at their website for available houses in your area. You can also visit the HUD Home Store. When youre buying a house make sure you dont buy with short sighted thoughts. Buying a house is an investment you are making today but is one of the most important investments you are making for your future. If you buy a house right today, it will provide the equity for security in the worst Real Estate market. Its a long term saving account to draw from if its ever needed.
How to Sell Your House Privately : To sell your house privately can be an exciting challenge for most people but can also be a daunting task especially if youve never done it before. While selling your house privately is never as easy as you think, its certainly a feasible way to avoid paying thousands of dollars in commission to a real estate agent. If youre confident you can do it or just want to give it a go, youll need to know the ways in which you can market your house so that you receive a quick hassle-free sale as well as achieving the best sale price possible. Here are several ways that you can market and sell your house privately... Sell Your House Privately - Tip # 1: Internet The Internet is probably the most utilised form of contact for buyers looking for a house so you should have your house listed on the Internet, but on probably no more than two websites (any more than two is unnecessary). Unfortunately the major sites realestate.com.au and domain.com.au dont allow private sellers to list their houses for sale. However there is a loophole...several private listing real estate websites actually subscribe as members to the above websites. So if you list your house with these private listing sites theyll automatically list your house on whichever of the major two sites that theyre subscribed to (for a price). Otherwise you can simply list your house for sale on a private sale website such as PrivateSales.com.au. Sell Your House Privately - Tip # 2: Flyers/Leaflets According to statistics, something like 80% of homebuyers buy a house within 5km of where they currently live. This being the case, its a great idea to create your own flyers using Microsoft Word or Microsoft Publisher and have them printed professionally by a printer. Flyers are usually dirt cheap so shop around for the best deal. Youll probably need around 5000 to make a splash in the area (in metropolitan areas) and something like 15,000 flyers would create a good coverage of your local area. You can deliver them yourself (if you have the time), or you could use a mailbox distribution company such as Salmat or PMP Distribution (These are Australias two largest distribution companies). Your cost of delivery will probably be a minimum of 5 cents per flyer under a certain delivery amount (say 30,000). This is quite cheap when you consider that youd either have to deliver them yourself (you could probably only deliver a few hundred per day) or have to pay a commission to a real estate agent. For ideas on how to design your flyers, simply copy the best ones that you receive in the mail from the larger franchised agencies such as Ray White, LJ Hooker etc. Remember to use a catchy headline at the top of your flyers eg. HUGE family house on a BIG 1200sqm block. Expect a 1% response rate on your flyers eg. Deliver 5,000 flyers and you likely receive around 5 calls. Sell Your House Privately - Tip # 3: Newspaper Newspapers are the most traditional way of advertising a house for sale. There are two ways you can advertise in the newspaper. You can have a display ad which is simply a picture ad along with a certain amount of text allowed (these are the most expensive ads but you can specify the unit size of the display ad from a small one unit up to an entire page depending on your budget). The other type of newspaper ad is a classified ad. A classified ad is a text-only ad that allows headings, bolding, underlining, bordering and even some coloured text to make the ad stand out. All of these features come at an additional cost but classified ads are the cheapest types of newspaper ads available. Prestigious and/or expensive houses usually work best as display ads since this is where your target buyer is looking for these types of houses. Sell Your House Privately - Tip # 4: Magazines Advertising your house for sale in magazines is a more niche way of advertising your house simply because magazines usually have a specific niche that theyre targeting their publication to eg. Country Property Magazine. This is not necessarily a negative; in fact it can be very positive because you have more qualified homebuyers looking in these publications for a house. Most magazines will have display ads as well as classified advertising available; again it depends on your budget as to what ad youll use. Sell Your House Privately - Tip # 5: Word of mouth Word of mouth is often overlooked as a possible way to market a house. You can spread the word through family, friends, workmates, business colleagues, schools, membership clubs that youre involved with, sporting teams. You could create some flyers and hand them out, send out a broadcast email for friends to forward or even organise a private open house for friends and friends of friends. Sell Your House Privately - Tip # 6: Signage Signage is a great way to attract local interest in your house. Itll create a stir in the neighbourhood and may even help you achieve a sale if one of your neighbours friends wants to move to the area. You can have a sign made by most printers; the material or product to ask for is a corflute sign to advertise a house for sale. Most printers are probably involved with a local real estate agency and create them often. It may set you back a few hundred dollars but shop around and see what you can do. Sell Your House Privately - Tip # 7: Open House Your end goal with all of your marketing is to get potential buyers to inspect your house and one of the most common ways for buyers to inspect houses for sale is through open houses. They offer buyers a somewhat anonymous way of inspecting a house without any sales pressure. Its a great way to screen buyers to see which ones are ready-to-buy so that you can spend the most time with those buyers. Create your own Inspection Register and get the names and contact numbers of everyone who inspects your house. This is not only good for the sales process but also for general security of your house. Have a set presentation for when you first meet potential buyers to let them know about some of the features of your house. Its a good idea to have brochures or flyers on hand to give to buyers. Questions to ask potential buyers are: Have you been looking for a while or are you just getting started? (if theyve just started looking they will need to be educated about prices in the area. They can potentially be time wasters as they dont have any reference points to compare your house with others. In addition to this, the type of house they think theyre looking for could be completely different from the one they actually buy after theyve completed some research. Are there any features that you particularly like about the house? How does this compare to other houses youve seen? Sell Your House Privately - Tip # 8: Investor Groups There are always investor groups or buying clubs that have a database of members that are constantly on the lookout for investment opportunities and could be suitable for you to approach to sell your house. A few downsides to these groups is that theyll want to buy the house for the lowest possible price and generally wont be emotionally driven to buy the house which can affect your end selling price or even negotiating power. If you have a particular urgency in selling your house then this option could be for you. A lot of these types of clubs promote the fact that they buy houses for cash with a quick settlement period. Several of these groups include WeBuyHouses.com.au and The Investors Club Sell Your House Privately - Tip # 9: Postcards Postcard marketing is a more unique and modern way of promoting your house for sale. They work the same as flyers except that your ad is printed on postcards that are then distributed to letterboxes. Its best to have them distributed by companies such as Salmat and PMP Distribution. Sell Your House Privately - Tip # 10: Publicity Publicity is probably THE most underutilised way to sell a house privately (or through an agent). Publicity is great for a number of reasons; first of all, its free, and secondly and most importantly, publicity promotes your house from a third party perspective. Instead of you saying my house is so great... you have a third party saying this house is great, you should go and see it!.
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