What is the shortest and most reliable route that you or anyone can use to change their financial destiny and arrive at a place of financial freedom? Depending on whom you ask, you will get answers like work hard and smart, have a great business idea, invent something, or save and invest.
While all these are valid answers, they may not always bring you to a life that is free of financial worries. Each method’s ability to reach the desired goal depends on how well it meets that one requirement which is the most important factor when trying to achieve a life of financial freedom.
What is the critical factor that serves as the basic foundation for wealth-building?
You can separate how much money you earn from how much effort you invest in the thing that makes you that money. When your income-earning ability is no longer limited to your physical labor, you free yourself from the constraints of your limited time and energy.
If you are committed to your goal of building wealth, the most important thing you can do for yourself is to become adept at identifying, managing, and maximizing opportunities that make it possible to consistently earn a lot of money without necessarily having to do a lot of work.
This kind of income is known as passive income.
Non-passive income sources depend on your physical presence and direct effort to make money. They stop yielding income as soon as you stop contributing your physical presence or energy. Their income-earning ability is limited to how many man-hours you invest.
But how many hours do you think you would need to work to be able to earn up to one million dollars in a single year? The answer to that question will tell you why non-passive income sources are not the recommended path for pursuing wealth.
How can you get started with earning passive income?
Passive income through rental properties
Although there are several different ways to earn passive income, Keyrenter Hampton Roads advises the best one is putting your money into income-generating real estate, and rental properties. Why is owning rental properties a better source of passive income than investing in stock or bonds?
Steady and substantial income
Both real estate and stocks can serve as sources of passive income. But rental properties are better because the income is more predictable than stocks. As a landlord, you often know how much rental income to expect and when to expect it.
Real estate offers tax incentives that are not available when investing in other asset classes. These tax deductions can be made from the everyday expenses of operating the property. They offer a way for landlords to increase their profits.
Strategies for earning passive income from rental properties
To make money from real estate, you must understand the following things about rental properties:
Types of rental properties
There are two kinds of rental properties – commercial and residential – and within these two broad categories, there are several sub-categories. Before you buy any property, make sure you understand the different types of rental properties.
Location
The most important factor in the performance of a property is its location. The neighborhood where a rental is located is a bigger factor than the physical qualities of the property. Learn how to evaluate the viability of different locations before you invest.
Leverage
Your ability to get approved for a loan and negotiate the best terms is critical to your success. The cost of capital is a huge factor in how much passive income you earn from your property. If you don’t know much about this, hire a mortgage broker.
Know your numbers
Before you buy a property, find out the potential income from the property (based on the rental rate) and your projected operational costs. Take the time to look at numbers like the vacancy rate for the property or similar properties in the area.
Hire a property manager
Finally, you should know that real estate is not entirely a passive investment like stocks. Managing a rental property requires a lot of time and expertise. But there is a simple way to get around this problem and make the asset passive; you can hire a property manager.
Hiring a property manager to oversee your rental property is what transforms it from a non-passive form of investment into a source of passive income. A property manager takes on the responsibility of making the rental property work in exchange for a share of the profits.
Whether you’re looking for homes for sale in Lake of the Woods VA or Waterfront property in Virginia we are your Real Estate Advisors for Stafford, Fredericksburg, Spotsylvania, Locust Grove, Central Virginia, and Greater Virginia. Thinking of selling? In any market condition, “what is my home worth?” is the #1 question asked by homeowners. If you wish to sell your home, it needs to be sold for top dollar and in a timely manner. Pricing your home accurately, Pat will partner with you to make the selling process so much easier. Get started today by calling us at (540) 388-2541 or contact Pat Licata.
To see available Lake of the Woods properties, please visit our site.
Even though it’s a cliché, first impressions matter a lot in real estate. Yes, some purchasers may require a few days to mull it over. But, for the most part, buyers are smitten with a house the minute they pull up to its driveway and see it for themselves. Appraisers will also value your home mostly by the first look. So, you’ll definitely want the landscape to look great. Also, according to statistics, now could be the best time to sell – and you’d want to do it for top dollar. So, here are some curb appeal ideas to add value to your home.
1# Make it sophisticated
When it comes to house sales, properties with elaborate landscaping—such as curving bed lines and huge island plants—tend to get a higher price tag, according to real estate stats. The landscapes with huge deciduous, evergreen and annual color plants sold better than those without these types of plant materials. Planting beds, according to experts at orangemover.com, are an affordable and low-lift option to add aesthetic interest, texture, and color. You may use them to make your lawn seem fuller even when the grass is well cut and trimmed.
2# Make it green
You can’t go wrong if you have trees in your yard. In addition to providing shade and removing carbon dioxide from the atmosphere, trees will add value to your exterior. Trees also have a way of making a house seem more like home. They provide a feeling of continuity between a home and its surroundings as well as a connection between the people who live there and their surroundings. The best way to choose a tree is to think about the function it will serve. Deciduous trees are a good pick if you want additional shade in the summertime. When the trees lose their leaves in the winter, they allow some light into your yard. In addition, they may possibly save you money on your utility bills!
A big tree will provide not only you shade but also privacy on hot summer days
3# Rock your exterior design with some rocks
Adding a low-maintenance focal point to your yard is easy with a beautiful rock bed. Tossing random rocks, on the other hand, is a bad idea. If you want a traditional “rock” aesthetic but don’t want to shell out hundreds of dollars for a 400-square-foot area, consider using decomposed granite or trap rock. Also, avoid using limestone since it decomposes fast and turns into debris. If you decide on bigger individual stones, seek smooth and spherical ones. These will endure longer and generate less unpleasant, gritty rock-garden waste that weeds enjoy.
4# Fiberglass doors are one of the best curb appeal ideas to add value to your home
When it comes time to put your house on the market, a fiberglass front door might help you recuperate some of your investment. There are also other advantages. They’re more energy-efficient than traditional wooden front doors, just like steel ones. In contrast, steel doors are prone to rust and corrosion over time and will not look good, no matter how good your home staging is. With fiberglass, you won’t have to worry about unattractive dents and corrosion.
5# Decking made of composite material is a big yes
Wooden decks are beautiful, but maintaining their waterproof qualities demands a lot of time and effort. Composite decking, on the other hand, has a long warranty. It requires no sealing, staining, replacement of rotting boards, or danger of termites, extending the life of the deck and saving you thousands of dollars over the course of its existence. Composite decking comes in three varieties:
Polyethylene-based
Polypropylene ones
Polyvinyl chloride (PVC)
6# Make sure your landscape reflects the design of your house
How can you get the most out of your landscaping dollars? It’s about making sure your landscaping truly compliments your home’s design. Craftsman-style homes should be given basic and traditional landscaping, such as a bed of vividly colored flowers or well-structured shrubs. If you want your house to be called a breathtaking home in the market, modern additions like koi ponds and lavish fountains that appear as if they belong in Caesar’s Palace should be avoided at all costs.
Sometimes, just a bed of vividly colored flowers makes all the magic.
7# Make your front yard look simple yet trendy
We’ve already mentioned the importance of greenery in the presentation. But, we picked up a few more sneaky tricks from professional movers. It is important to keep up with trends in order to boost your home value, and the trend right now dictates that ‘less is more. What does that actually mean in terms of front yard remodeling? It is important to add some greenery to your presentation, but it’s also important to pick only a few different kinds that will look good together. The other key to success is to pick wisely and choose the kinds of plants that don’t need too much maintenance. That way, you’ll save money and make trendy and harmonious curb appeal.
8# Light it up—but functionally
As a reward for your efforts, ensure you can always see the results of your hard work. Landscape lighting will draw attention to your home’s architectural elements and most eye-catching vegetation. In addition, the project is very cost-effective and easy to implement. Also, who doesn’t like a good and functional light show in their yard? Smart lighting will surely add to your home’s value. If you really want to go all-in, you can make adjustable lighting that will be able to tone it down and allow a buyer to enjoy star gazing under Virginia’s sky.
If you put some creativity in, you can make an exceptional exterior design with simple light bulbs.
Bottom line
So, there you have it—a ticket to a better home sale. If you apply at least two of these curb appeal ideas to add value to your home, you’ll be on a great path to a good deal. Even if some of these are inapplicable to your situation, be smart and adjust. The most important thing is to think like a buyer. When you see all the flaws clearly, you can focus on fixing them. Just then, there will be a great reward in money return.
Whether you’re looking for homes for sale in Lake of the Woods VA or Waterfront property in Virginia we are your Real Estate Advisors for Stafford, Fredericksburg, Spotsylvania, Locust Grove, Central Virginia, and Greater Virginia. Thinking of selling? In any market condition, “what is my home worth?” is the #1 question asked by homeowners. If you wish to sell your home, it needs to be sold for top dollar and in a timely manner. Pricing your home accurately, Pat will partner with you to make the selling process so much easier. Get started today by calling us at (540) 388-2541 or contact Pat Licata.
To see available Lake of the Woods properties, please visit our site.
If you’ve ever bought or sold a home, you’ve probably heard the term “escrow”—but have you ever wondered what it means and what exactly the escrow process entails? Here are a few common questions to help shed light on this important step in the home sales process:
– What is escrow? Escrow is a legal term indicating that a deed, property, deposit, or fund is temporarily in the custody of a neutral third party, such as an escrow company, title company, or law firm. These third parties hold money and the property until all conditions from the purchase and sale agreement have been satisfied and the deal closes.
– What is an escrow account? There are two types of escrow accounts that serve different purposes: one is used during the home buying process to protect a buyer’s earnest money deposit until all conditions of the sale have been met, and the other holds a homeowner’s money for expenses such as property taxes and insurance throughout the life of a mortgage loan. This second type of escrow account can make it more convenient to manage your tax and insurance payments, since your lender will estimate the total annual expenses, add a prorated portion to your monthly mortgage payment, and handle paying the bills when they are due—thereby eliminating the need for you to make large lump-sum payments once or twice a year.
– How long does the escrow process last? Escrow begins when the seller accepts an offer and the buyer provides an earnest money deposit. Typically, the process lasts about 30-60 days until the closing occurs, although the timeframe may vary depending on factors such as issues that arise during inspections or delays with the mortgage lender. At closing, the escrow agent will transfer the deed to the buyer and the earnest money to the seller.
Whether you’re looking for homes for sale in Lake of the Woods VA or Waterfront property in Virginia we are your Real Estate Advisors for Stafford, Fredericksburg, Spotsylvania, Locust Grove, Central Virginia, and Greater Virginia. Thinking of selling? In any market condition, “what is my home worth?” is the #1 question asked by homeowners. If you wish to sell your home, it needs to be sold for top dollar and in a timely manner. Pricing your home accurately, Pat will partner with you to make the selling process so much easier. Get started today by calling us at (540) 388-2541 or contact Pat Licata
Real Estate Bubbles: what are they, are we in one now, and why there’s no cause for alarm.
It’s natural to compare today to 2008, but this housing market is vastly different.
You can lean on our expertise! We’ve seen all types of markets, so reach out with questions.
With home prices soaring to levels never before seen, it is undeniable that the U.S. housing market is in uncharted territory, with many industry experts speculating that we’re in the midst of yet another housing bubble. However, like snowflakes, every bubble is created differently and is unique.
As mortgage rates rise and rumors of another crash in the housing market fill the news cycle, it may be tempting to get cold feet and postpone your homeownership dreams. But as we’ll explore below, it’s essential to understand the anatomy of housing bubbles, what causes them and why it’s a term you needn’t fear.
What exactly is a bubble within the housing market?
In basic terms, a real-estate bubble is a temporary economic event that occurs periodically and refers to an increase in the overall value of the housing market. When a bubble grows, home values increase; when a bubble pops, property values decrease.
Simple enough, but, what causes the housing market to experience bubbles?
Traditionally, the Law of Supply and Demand dictate a property’s market value. For example, when the demand for housing is high, and supply is low, home prices often rise, typically resulting in a seller’s market. Conversely, when housing supply is high but demand is low, market values fall, resulting in a buyer’s market. However, additional factors such as speculative investing, FOMO (Fear Of Missing Out) panic buying, and risky lending (such as occurred in the 2008 Housing Crash) are all elements that influence the growth and burst of housing market bubbles.
Why you don’t need to fear housing bubbles
We can always count on the old axiom in real estate: “You can never enter the same river twice.” (Fun fact: Greek philosopher Heraclitus came up with that lasting gem!)
What is meant by this is that history does not strictly repeat itself, and for us today in the real estate market, that means that it’s not 2008. As mentioned above, though the market moves in cyclical fashions, most experts do not believe that The Great Recession is repeating itself in today’s market.
2022 is not 2008 repeating itself
The infamous U.S. housing bubble of the mid-2000s had its origins in the unprecedented growth of the subprime mortgage market. Additionally, U.S. government-sponsored mortgage lenders Fannie Mae and Freddie Mac made home loans accessible to borrowers with low credit scores and a higher risk of defaulting on those loans.
None of this is happening today.
The current market demand is not the result of easy lending. Instead, today’s rising property values result from the natural market forces of a low supply in housing inventory meeting high demand. But with new home construction expected to surge in the second half of the year, this will help ease demand in the future and stabilize the market overall.
Regardless of whether you’re selling your home or are a first-time homebuyer, the key takeaway for you is this: today’s high home values are not likely to crash any time soon, so it is as good a time as any to enter the market.
You Can Count on Us in Uncertain Times
If you’re feeling unsure about whether to buy or sell a home right now, reach out and rely on our expertise to guide you to make a sound financial decision. Our team has the experience and knows our local market, so contact us today and we’ll work with you to find the right strategy for your situation.
Whether you’re looking for homes for sale in Lake of the Woods VA or Waterfront property in Virginia we are your Real Estate Advisors for Stafford, Fredericksburg, Spotsylvania, Locust Grove, Central Virginia, and Greater Virginia. Thinking of selling? In any market condition, “what is my home worth?” is the #1 question asked by homeowners. If you wish to sell your home, it needs to be sold for top dollar and in a timely manner. Pricing your home accurately, Pat will partner with you to make the selling process so much easier. Get started today by calling us at (540) 388-2541 or contact Pat Licata.
To see available Lake of the Woods properties, please visit our site.
Oil and gas prices are the highest in United States history!
Individuals and families are shifting how they think about housing, from suburban versus urban to downsizing or going multigenerational.
It’s critical to work with an agent who understands the right fit for you and your family.
Record-high oil and gas prices are changing home buying and selling
It’s difficult to escape the news: gas prices are surging across the nation, with the increase averaging $1 per gallon. With costs at historical highs, the ripple effect changes how we think about everything. That includes the largest line item on any household’s budget: their home. How will this new reality change how people buy and sell real estate? Let’s take a look at some of the main considerations.
Urban Versus Suburban
Traditional wisdom says that the suburbs are more affordable with their long commutes, while cities are expensive due to more amenities and desirability. But when the daily commute costs more than it ever has in the history of the country, the conventional advice isn’t necessarily the right move for everyone.
To judge whether relocating from the suburban to the urban is right for you, take a look at the commute time, proximity of local amenities, and public transportation. Some urban centers offer more robust and reliable options for getting around, while others are still heavily car-dependent. If moving into the city won’t get you out of your car, the suburbs are still a good choice. But big city living is an attractive option if you can reduce how often your family drives—or even go from a multi-car family to a single vehicle.
Reconsider Your Housing Footprint
The size of a home is always a big consideration when you’re looking at your next place. Right now, there’s the added pressure of the costs of heating and cooling a home to consider when you think about total square footage. On average, the cost of natural gas is up 24% in February 2022 compared to the previous year, and electricity is up 9%.
Downsizing can be a smart reason to sell your home and buy a new one, especially if your family situation has changed and you don’t need as much space. With less to heat, cool, and maintain, finding a home that’s just the right size for the stage of life you’re in is something your agent can help you with.
During the COVID-19 pandemic, families started moving back in together at rising rates. Now, more than 40% of homebuyers consider multigenerational living in their purchasing decision. New developments are dedicated to building homes and communities that accommodate people at different stages of their lives. And, if the family situation changes, being able to rent out a dedicated space is an excellent source of passive income.
Whether you’re looking to go small by yourself or go big and share the costs, homes that are renovated with energy-efficient appliances, or new construction with the latest smart home technologies, are especially attractive. These are smart decisions to make now that will also save you costs in the long run, even when oil and gas prices stabilize.
Act Fast to Lock in Interest Rates
Gas prices are tied closely to mortgage rates. Yep, it really does affect everything! Mortgage lenders want to have an extra cushion over inflation when they set rates, and with the rise of oil and gas prices, interest rates will get pushed up too. If you’re buying a home, it’s time to get serious about making offers. Higher mortgage rates will impact what you can afford.
For sellers, this can impact the white-hot housing market streak that was the dominant theme for the last few years. With interest rates set to rise, home sellers may want to be flexible about offers, in case the market shifts dramatically as interest rates go up throughout the remainder of the year. Of course, this varies widely by market, and you’ll want to consult your agent before making any decisions on offers on your home.
Make Your Move
There’s no time to wait—with the market changing this rapidly, you’ll want to leave yourself enough time to have options and make a well-informed decision. That’s why you need to work with an agent that understands the ups and downs of this historic market and considers the needs of you and your family. Contact us today to get started!
Whether you’re looking for homes for sale in Lake of the Woods VA or Waterfront property in Virginia we are your Real Estate Advisors for Stafford, Fredericksburg, Spotsylvania, Locust Grove, Central Virginia, and Greater Virginia. Thinking of selling? In any market condition, “what is my home worth?” is the #1 question asked by homeowners. If you wish to sell your home, it needs to be sold for top dollar and in a timely manner. Pricing your home accurately, Pat will partner with you to make the selling process so much easier. Get started today by calling us at (540) 388-2541 or contact Pat Licata.
To see available Lake of the Woods properties, please visit our site.
Even in a seller’s market, you may still need to reduce your price
Consider if you’ve tried everything else before a price reduction
Make sure to seek the advice of your trusted realtor–we’ve seen it all before!
Even in a competitive seller’s market like the one we’re in right now, listing your home for the right price is key. Don’t count on a bidding war happening to get the price you want! Let’s take a look at what you should do before listing your home, indicators that your home is priced too high, and the strategies you can use to make the price right.
How Do I Figure Out the Right Price?
When home prices are rising quickly, low appraisals can affect your listing price. With year-over-year home prices up 17% on average nationwide in 2021—with some markets seeing as much as 35% increases—the appraisal you receive may not reflect other recent asking prices in your area.
Your experienced real estate agent will use data from the local MLS and consider other homes in your neighborhood and what they sold for recently. They’ll also consider tax data, your property’s previous sale price, and even micro market trends. Working with an agent in such a fluid, dynamic market is essential to getting the price right.
Since your largest pool of buyers often finds your home within the first 21 days of listing, try to list your home at the right price from the start. If you’re not seeing the offers you thought you would, make an adjustment quickly before the initial interest fades away.
If the first week of listing your home isn’t resulting in offers, especially in a market this hot, that’s a red flag your home is overpriced. However, if you’re getting offers, and they just aren’t meeting your listing price, it’s a good sign you’re in line with the market and may need a small decrease.
How Do I Know When to Lower the Price?
It’s exciting to list your home in such a historic market, but moving too fast and forgetting the basics can hurt your chances of success. Work with your real estate agent to market your home. This includes cleaning and decluttering your home, staging rooms, taking attractive photos, and communicating the value of the property in the listing.
Rely on the most recent data to find the sweet spot for price. You’ll want to consider homes recently sold within a mile or two of your home, especially ones with the same number of bedrooms and bathrooms and square footage within 20% of your home that closed within the last 90 days.
If all of that is said and done and you’re not receiving any offers, you may need to lower the price. Even in a seller’s market, selling over asking or enjoying a bidding war for a higher price is not guaranteed. Make sure you know the lowest price you’re willing to accept before you list your home, so making a change won’t feel like taking a loss.
When it comes to finding the new price, there are a few things to consider. While the general advice is to lower anywhere from 0.5% to upwards of 3%, you also want to pay attention to your price bracket and what buyers are searching for. If lowering your price brings you down from $410,000 to $398,000, that will open up your home to a new pool of buyers searching for homes under $400,000.
Price Your Home Right from the Start
Real estate is a continual learning process, and it takes effort to figure out the right price. That’s why you should work with our experienced, trusted team to get started out right! Contact us today to find the true value of your home based on the most recent, up-to-date, micro-economic data available. Our team is here to help you sell your home for top dollar.
First-time home-sellers need an accurate value before listing.
Sellers need to make smart choices on repairs and staging.
Offers are evaluated on multiple factors, not just price.
The three most common questions first-time sellers ask our real estate team.
It’s common to be overwhelmed by the number of questions you inevitably run into when you’re selling your home. Does the doorbell work? Are the exterior colors suitable for today’s market? Am I getting what my home is worth? From marketing the house to negotiating a fair market price and making repairs, here are some of the most common questions sellers ask us and some helpful strategies you can utilize when selling your home.
Question 1: How do I know what my home is worth?
Ultimately, a home is worth what someone will pay for it. However, there are three values attributed to any home currently on the market:
What the seller thinks it’s worth.
What the buyer assumes it’s worth.
What a professional appraiser will think it’s worth.
One of the most critical aspects of selling your home is quickly getting those three numbers to align. Most real estate agents freely perform a comparative market analysis of home values to establish a property’s value to determine a selling price. They look at factors such as square footage, construction quality, condition of the home and neighborhood, design, and floor plan, plus all of the neighborhood’s features, like transportation availability, nearby shopping, and area schools.
Question 2: How do I get my home ready to sell?
Nearly all home purchase contracts include an inspection clause. This term is a buyer contingency that allows buyers to back out of the deal if numerous defects present themselves or negotiate their repair.
The trick to getting your home ready for the market is not to overspend on pre-sale improvements, especially if few houses are on the market with many buyers willing to pay almost any price. On the other hand, making such investments is the only way to stage and sell your house, even in a market that favors sellers.
Here are some quick highlights of expected home improvements and staging tips that every homeowner should have on their checklist going into negotiations:
Make sure that your roof is up-to-date; this will get you the highest return on your investment.
Fix any maintenance issues, such as leaks, plumbing problems, drafts, rusty areas, squeaky floorboards, mold, or mildew well before buyers can find them.
Applying a fresh coat of paint will make rooms look brand-new!
Polishing lighting fixtures and upgrading light bulbs is an inexpensive way to make a home look newer and brighter.
Less clutter helps a home look larger inside, so remove extra objects or furniture to give your home a more spacious feel.
Question 3: How do I pick the right offer on my home?
While seeing a bid over-asking price will make your heart race, it’s best to take a deep breath and consider the whole picture. Buyers include contingencies, like inspection, financing, and appraisal, in their offers. The fewer contingencies, the better it is for the seller.
You can consider an all-cash offer to eliminate the risk of contingencies. Anywhere from a quarter to a third of home sales now are cash offers, depending on the market, so this is more common than you may think!
What’s your next step after your home sells? The closing timeline can influence choosing your best offer—perhaps you’re in a hurry to move into your new place, or you need some extra time to finish packing. There’s always a lot to consider, and each seller’s needs are different.
The ultimate question: what are my net proceeds?
Because the real estate market is continually changing, and market fluctuations affect property values, your list price, sale price, and closing costs must be based on the most recent comparable sales in your neighborhood. To find out the current value of your home, contact our team today! Selling your home is a team effort that yields more success with the help of the most qualified and skilled realtors.
Whether you’re looking for homes for sale in Lake of the Woods VA or Waterfront property in Virginia we are your Real Estate Advisors for Stafford, Fredericksburg, Spotsylvania, Locust Grove, Central Virginia, and Greater Virginia. Thinking of selling? In any market condition, “what is my home worth?” is the #1 question asked by homeowners. If you wish to sell your home, it needs to be sold for top dollar and in a timely manner. Pricing your home accurately, Pat will partner with you to make the selling process so much easier. Get started today by calling us at (540) 388-2541 or contact Pat Licata.
To see available Lake of the Woods properties, please visit our site.
