Investment properties used to be homes and multi-family properties used for full-time rentals. Over the past decade, we’ve seen a new crop of investment properties emerge, the short term rentals. But what’s involved in owning a vacation rental? Is it worth the work?

A short term rental is a great investment for a number of reasons. In addition to creating annual income for the investor, the property could also appreciate in value during the time of ownership. Although the short term rental is still a rental property, it often pencils out to much higher income than a traditional long term lease does.

Vacation Rentals might seem like a great deal of work, and they can be. The first choice a vacation rental owner will need to make is whether they would like to self-manage or hire a property management company. Many short term rentals are managed by a professional property manager that specializes in the short term market. These managers have people on call to help with arrival, departure, cleaning, repairs and rent collections. While they do charge for their services, a professionally managed vacation rental can provide a nice income stream by building positive reviews.

Of course, there are downsides to owning this kind of investment. It’s important to choose the right location to ensure a steady stream of renters. Additionally, one must budget for unexpected repairs or damage. With the deposit being made with a credit card, it can be difficult to collect for damage done to the home.

The Internet has been instrumental in the new vacation economy as peer-to-peer platforms like Airbnb, VRBO and HomeAway offer visitors the ability to interact directly with the owner. By reducing the advertising costs, investor-owners, can negotiate directly with potential renters and screen them to prevent possible problems. It is definitely a subject worth exploring. 

Home sellers and listing agents across the country spend a great deal of time and energy trying to determine what home buyers want. They pour over magazines and read blogs to learn what is the #1 feature they can add or enhance to ensure home buyers find their home irresistible.

The National Association of Home Builders’ released a 2019 home trend and buyer preferences report which cited a surprising and very practical answer – laundry rooms. In the report, 91% of those surveyed stated that having a separate laundry room was essential in their new home.

The association surveyed over 4000 home buyers and asked about features which ranged from outdoor kitchens to master suites and spa-style baths. While these features were well received, the overwhelming response to what was most important in the home design is the laundry room.

Laundry rooms have become so popular, that home builders are finding ways to increase their size and utility in home developments. Homebuyers stated that homes with laundry chutes which lead to the room were their idea of the perfect home. These home buyers were willing to forgo trendier amenities like wine cellars, dog runs, and outdoor fireplaces in order to hide piles of dirty laundry.

Homebuyers can be finicky and mysterious to home sellers and their agents. What this trend demonstrates is that staying with home features which provide convenience and ease of use is more important to home buyers than fancy features and expensive upgrades.

Hunting for a new home online a is a great place to start your search but keep in mind that you don’t see everything. Real estate agents are great at highlighting the features of a house listing online but to make the most of your time, keep these three things in mind:

Identify your Housing Needs

Preferences are important when house searching. A house may not have everything you want but it will have most of the things. Be realistic about pricing and keep in mind the must-have items that will definitely be needed because this will help narrow your search.

Stay up to Date

When you start your search, make sure you go to sites with up-to-date listings directly from the multiple listing service. Realtors post their most current homes for sale through this. Many sites fail to remove listings that are already off the market, and this can lead to you trying to sort through them and find the recent ones.

Pictures can be Deceiving

Photographers capture listings at their best. They use different strategies and tools to boost the appeal of the home like creative editing and expensive camera equipment known for its effects. What they don’t show is unappealing parts, like an undone bathroom or small closet.

Go See The Listing After

After you have chosen a house that’s appealing to you, schedule a showing with your real estate agent. This is the opportunity to see every part of the house in person and see if it’s a good fit. 

Searching online is a great way to learn more about the house you’re looking for. Even if you’re still unsure about moving, house hunting online gives potential sellers the basic information

A lot of money goes into buying a new house so it is understandable if a seller feels hesitant investing even more money to fix up their current house prior to selling. However, sellers may not realize that some of the issues they live with every day and consider minor, such as the hallway light switch or the kitchen sink that has plumbing issues, may actually be considered major to home buyers. These issues may even prevent buyers from making an offer on a home or making a lower offer. It’s crucial to keep your house presentable and in good shape before you list it on the market. That being said, read on to find out what repairs you might want to consider before you list on your house on the market.

Roof Problems

A roof is one of the most important components of a home, protecting all that is underneath. Additionally, roofs are major expenses to replace. Therefore, it is imperative to keep the roof well maintained and free of damage and leaks. Issues like water and sun damage, clogged gutters, and rotting will lead to bigger issues if not fixed timely. Tending to these items immediately will help prevent further damage and help present the home well.

Poor Maintenance

Minor issues such as damaged flooring, paint chipping, and old carpeting can be easily fixed to give your home a renovation. Your goal is to make your home appealing so start by replacing anything that is heavily worn and adding a fresh coat of paint. And these minor upgrades can be inexpensive because you’ll most likely see a return on investment.

Plumbing

Plumbing problems can result in minor or major issues and it is very important to take care of these issues right away as they can lead to further problems. Bigger problems such as water damage can lead to mold and easy fixes to leaky faucets can be replaced inexpensively.

Wiring

Electrical problems can cause a wide variety of problems. Smaller fixes such as faulty switches, missing wire nuts, or damaged junction boxes can be fixed with a good electrician. Replacing a circuit breaker might be needed if they don’t match the amperage of your home. Some repairs are obvious to see and others aren’t so it’s a good idea to run a pre-inspection of your house before listing. After, review it with your realtor because they can advise on which ones are the first priority.

You did it. You moved into a new home you love and now you’re dreaming of how you’re going to decorate it. But before getting into all of that, there are still some other tasks that need to be at the top of your priority list.

Changing the Locks

Double check them even if you’ve been told that there are new locks installed. It’s better to take safety measures and know that no one else has keys to your home. Call in a locksmith if you want to spend a little money or it can be done yourself.

Call an Exterminator

A great exterminator can take care of any pests that have been lurking in your home.

Get the House Cleaned up

If it isn’t already, clean out the refrigerator, wipe down counters, cabinets, oven if needed, and plumbing fixtures. Prior occupants might have had pets or young children so it’s best to steam clean. This will free your floors of any junk or allergens.

Mechanical Equipment Cleaned

Getting your heating and cooling systems cleaned is crucial and make sure to get a service contract just in case it stops working suddenly.

Get some Closet Organizers

Keep in mind where everything is going to get placed so it can be accommodated in your closet space. A shelf or a coat hook can go a long way for making room for organization.

Meet the Neighbors

You want to reach out to your neighbors as soon as possible. It’s good to establish yourself within the community and you can get advice on some home repairs like which plumber to use.

Having these as priorities will help you move into a clean, working home. And then, you’re ready to move in with all your belongings and start making it yours!

Let's dive even deeper than this. Let's begin by looking at a year over year comparison of specific real estate data that will help us understand what our local markets are doing compared to the rest of the country. 

JUNE New Listings:

We start by looking at June of 2017, where we see there were 504 NEW LISTINGS that came on the market. In June of 2018, we find an increase of +8.7 percent with 548 NEW LISTINGS. The following year in June of 2019, we decreased by -0.2 percent with 547 NEW LISTINGS. 

JUNE Homes for Sale:

We again, start by looking at June of 2017, where we see there were 967 HOMES FOR SALE. In June of 2018, we find an increase of +3.6 percent with 1,002 HOMES FOR SALE. The following year in June of 2019, we decreased by -8.4 percent with only 918 HOMES FOR SALE. 

JUNE Pending Sales:

Let's view June of 2017, where we see there were 419 PENDING SALES. In June of 2018, we decreased by -10.5 percent with 375 PENDING SALES. The following year in June of 2019, we increased by +34.4 percent with 504 PENDING SALES. 

JUNE Median Days on Market:

Let's view June of 2017, where we see there were 13 MEDIAN DAYS ON MARKET. In June of 2018, we decreased by -15.4 percent with 11 MEDIAN DAYS ON MARKET. The following year in June of 2019, we increased by +18.2 percent to 13 MEDIAN DAYS ON MARKET. 

JUNE Months Supply of Homes for Sale:

In June of 2017, the MONTHS SUPPLY OF HOMES FOR SALE was 2.9. In June of 2018, we stayed the same at 2.9 MONTHS SUPPLY OF HOMES FOR SALE. The following year in June of 2019, we decreased by -17.2 percent to 2.4 MONTHS SUPPLY OF HOMES FOR SALE. 

So there is your comprehensive LOCAL look at the real estate market. If you are thinking about purchasing a home, please reach out to the Linda Hall Team. We'd love to assist you!!

So you made an offer and it was accepted. Now, your next task is to have the home inspected prior to closing. Agents oftentimes make your offer contingent on a clean home inspection.

This contingency allows you to renegotiate the price you paid for the home, ask the sellers to cover repairs, or in some cases, to walk away. Your agent can advise you on the best course of action once the report is filed.

How to Choose an Inspector

Your agent will most likely have a short list of inspectors that they have worked with in the past that they can recommend to you. HGTV recommends that you consider the following five areas when choosing the right home inspector for you:

1. Qualifications – find out what’s included in your inspection and if the age or location of your home may warrant specific certifications or specialties.

2. Sample Reports – ask for a sample inspection report so you can review how thoroughly they will be inspecting your dream home. In most cases, the more detailed the report, the better.

3. References – do your homework – ask for phone numbers and names of past clients who you can call to ask about their experiences.

4. Memberships – Not all inspectors belong to a national or state association of home inspectors, and membership in one of these groups should not be the only way to evaluate your choice. Membership in one of these organizations often means that continued training and education are provided.

5. Errors & Omission Insurance – Find out what the liability of the inspector or inspection company is once the inspection is over. The inspector is only human, after all, and it is possible that they might have missed something they should have seen.

Ask your inspector if it’s okay for you to tag along during the inspection. That way they can point out anything that should be addressed or fixed.

Don’t be surprised to see your inspector climbing on the roof or crawling around in the attic and on the floors. The job of the inspector is to protect your investment and find any issues with the home, including but not limited to: the roof, plumbing, electrical components, appliances, heating & air conditioning systems, ventilation, windows, the fireplace and chimney, the foundation, and so much more!

Bottom Line

They say, ‘ignorance is bliss,’ but not when investing your hard-earned money into a home of your own. Work with a professional who you can trust to give you the most information possible about your new home so that you can make the most educated decision about your purchase. Contact the Linda Hall Team as we will gladly assist you in the purchase of your next home!

Let's dive even deeper than this. Let's begin by looking at a year over year comparison of specific real estate data that will help us understand what our local markets are doing compared to the rest of the country. 

May New Listings:

We start by looking at May of 2017, where we see there were 506 NEW LISTINGS that came on the market. In May of 2018, we find an increase of +3.4 percent with 523 NEW LISTINGS. The following year in May of 2019, we increased by +15.7 percent with 605 NEW LISTINGS. 

May Homes for Sale:

We again, start by looking at May of 2017, where we see there were 957 HOMES FOR SALE. In May of 2018, we find a decrease of -3.8 percent with 921 HOMES FOR SALE. The following year in May of 2019, we increased slightly by +0.8 percent with 928 HOMES FOR SALE. 

May Pending Sales:

Let's view May of 2017, where we see there were 382 PENDING SALES. In May of 2018, we increased by +5.0 percent with 401 PENDING SALES. The following year in May of 2019, we increased again by +28.7 percent with 516 PENDING SALES. 

May Median Days on Market:

Let's view May of 2017, where we see there were 15 MEDIAN DAYS ON MARKET. In May of 2018, we decreased by -13.3 percent with 13 MEDIAN DAYS ON MARKET. The following year in May of 2019, we increased by +7.7 percent to 14 MEDIAN DAYS ON MARKET. 

May Months Supply of Homes for Sale:

In May of 2017, the MONTHS SUPPLY OF HOMES FOR SALE was 2.9. In May of 2018, we decreased by -6.9 percent to 2.7 MONTHS SUPPLY OF HOMES FOR SALE. The following year in May of 2019, we decreased by -7.4 percent to 2.5 MONTHS SUPPLY OF HOMES FOR SALE. 

So there is your comprehensive LOCAL look at the real estate market. They say that June is National Homeownership Month and so if you are thinking about purchasing a home, please reach out to the Linda Hall Team. We'd love to assist you!!

When you renovate your home, you want to get the most bang for your buck. Not only do you want to make your home a better place for you and your family to live, but you also want your renovations to add to your home’s resale value.

But what, exactly, are the features that will help your home sell faster?

According to recent data from Realtor.com (which analyzed more than 1 million single-family listings), the top three renovations that will help you sell your home quickly and at a prime price point were:

1. A chef’s or gourmet kitchen.

Gourmet Kitchen - 204 Cattle Ridge Road, Waxhaw, NC $970,000

2. A home gym.

Rustic Home Gym - "29 Creative Home Gym Ideas - The Spruce"

3. A theater room.

Beam Me Up, Scotty - How To Build a Home Theater, HGTV

These renovation projects were named the “most profitable home features for sellers banking on quick sales.”

Those three features were deemed the most profitable. But they weren’t the only renovations that helped homes fly off the market. Also included on the list of features that will help your home sell faster include a three-car garage (#4), solar panels (#5), a home office (#9), and an in-ground pool (#10).

The Bottomline -

If you’re thinking about renovating and adding features to your home, you’re going to want to think about your return on investment and choose a renovation that’s going to help your home sell quickly and profitably.

Is your house a little dated? Do you want to make some improvements or upgrades but also want to make sure that you get the best bang for your buck if you decide to sell? Not all home improvements bring a good return on investment when selling, so unless the improvement is simply for your own style and enjoyment, choosing projects with higher ROI just makes sense.

Home Improvements with High ROI

• Add square footage – The best return on investment is adding space. Converting an attic or basement into a family room, adding a room or bathroom or even installing a garden room or outside kitchen will bring solid returns when selling.
• Bathroom and Kitchens – Remodeling a bathroom or kitchen will always bring more than their cost when selling. Create simple and soothing environments where a future owner can imagine themselves using and avoid heavy period-style cabinetry and surfaces.
• Doors and Windows – Upgraded doors and windows can really add impact to a room. Not only do current options save energy, they come in a wide variety of styles and finishes to accentuate the space.
• Garage Doors – If you have an old or weathered garage door, this is a relatively inexpensive way to dress up your home.
• Paint – Fresh paint is inexpensive and makes the home appear new and modern. Choose calm tones which compliment any décor.

Regardless of whether you’re considering a weekend project or a major remodel, understanding the return on your investment can help you make the best choice for your project. Home improvements can be costly and if you’re considering listing your home for sale in the future, make sure you can recapture your cost.