Exploring Opportunities: How to Get Started in the Real Estate Market

Are you interested in investing in real estate but not sure where to begin?

The world of real estate can seem daunting at first, but with the right information and strategies, anyone can start building their wealth through property. In this article, we will discuss some key ways that you can get started in the real estate market. Let's get started!

Educate Yourself
The first step to success in any field is knowledge. Before you dive into real estate investing, take the time to educate yourself on the basics. This includes learning about different types of properties, financing options and current trends in the market. You can find a wealth of information online or by attending seminars and workshops hosted by experienced investors.

Define Your Goals
Before you start investing, it's important to have a clear understanding of your goals. Are you looking for long-term rental properties or short-term fix and flip opportunities? Do you want to focus on residential or commercial properties? Defining your goals will help guide your investment decisions and keep you on track towards achieving them.

Be sure to be realistic about your goals when it comes to starting in the real estate market. While everybody dreams of making big profits, it's important to understand that success in real estate takes time and effort. It's also crucial to assess your financial situation and set achievable targets based on your resources. Setting unrealistic goals can lead to disappointment and may cause you to make rash decisions that could harm your investments in the long run.

Start Small
Don't bite off more than you can chew when starting in the real estate market. You definitely don't want to start flipping mansions, getting into any dodgy investments or set to work not knowing the Rules for 1031 exchange. Begin by investing in a smaller property or partnering with other investors to spread out the risk. This will help you gain experience and confidence before taking on larger investments.

Some small ideas to get started in the real estate market include investing in a rental property, such as a single-family home or duplex, and becoming a landlord. This can provide a steady stream of passive income and give you hands-on experience managing a property. You could also consider purchasing a fixer-upper and renovating it for resale, known as "flipping" properties. Other options include investing in real estate investment trusts (REITs) or crowdfunding platforms, which allow you to invest in real estate projects with smaller amounts of capital.

Network
In any industry, networking is key. This is especially true in real estate where relationships and connections can lead to lucrative opportunities. Attend local real estate meetups, join online forums and connect with experienced investors in your area. You never know who you may meet and what valuable advice they can offer.

Consider Financing Options
Real estate investing can require a significant amount of capital, but there are various financing options available to help you get started. These include traditional bank loans, hard money loans, private lending and even crowdfunding platforms. Research and compare these options to find the best fit for your financial situation.

So, when do you know you're in a good spot to start investing in real estate? While the answer may vary for each individual, there are some key indicators to keep in mind. Firstly, it's important to have a stable source of income and manageable debt before taking on any investments. Additionally, having a solid understanding of market trends and property values can help you make informed decisions.

It's also crucial to have a financial cushion in case of any unexpected expenses or fluctuations in the market. Lastly, having a strong support system and network can provide valuable guidance and resources as you navigate the world of real estate investing.

Location is Key
When it comes to real estate, location is everything. Do your research on different neighborhoods and areas to find properties with potential for growth. Look for areas with good schools, amenities and a strong job market as these factors can greatly impact the value of a property.

Be Prepared for Challenges
As with any investment, there will be challenges along the way. Real estate is not a get-rich-quick scheme and it's important to have patience and resilience when facing obstacles. Stay informed on market trends and maintain a strong team of professionals such as real estate agents, lawyers and contractors to help you navigate any challenges that may arise.

When facing challenges, be sure to remain calm and composed. This allows you to think clearly and make rational decisions instead of reacting impulsively. One way to handle challenges calmly is by having a solid plan in place and being prepared for potential obstacles. It's also helpful to have a support system or mentor who can offer guidance and advice during tough times. Remember to stay focused on your goals and have patience, as overcoming challenges is a natural part of the real estate investing journey. 

Take Action
The most important step in getting started in the real estate market is to take action. Don't get bogged down by analysis paralysis or fear of failure. Start small, educate yourself and be proactive in seeking out opportunities. The more you invest and learn, the better your chances of success will be.

The world of real estate investing is full of opportunities for those willing to put in the work and take calculated risks. By educating yourself, defining your goals, networking, considering financing options, researching locations and being prepared for challenges, you can begin your journey towards building wealth through property. So don't wait any longer—start exploring the possibilities in the real estate market today! Happy investing!

Read more at Rismedia.com

Related Links

• 6 Essential Spring Home Maintenance Tasks To Do ASAP

• 4 Tips To Make Your Strongest Offer on a Home

• ‘The Best of Both Worlds’: The Spring Housing Market Might Just Change Everything for Homebuyers and Sellers

If there is a home that you would like more information about, if you are considering selling a property, or if you have questions about the housing market in your neighborhood, please reach out. We’re here to help.

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As Featured in West + Main Home Magazine: Building from Scratch!

West + Main Agent Pam Catania

“We have lived in a 1904 Bungalow, a 1958 Sparling Mid-Century Ranch,  and thought it was time to build a new home and were lucky enough to find a lot with the most awe-inspiring mountain view.”

— Pam

With national resale inventory for housing at an all-time low, more homebuyers than ever are opting to build custom homes from scratch or purchase new construction. And with interest rates higher than they've been in a couple of decades, builders are sometimes able to offer buy-down incentives or lock-in lower rates, making brand new homes even more tempting as an option. If you would like information about the pros and cons of building and buying new...Ask your amazing West + Main Real estate Agent to help you find a great lot to build on, introduce you to unlisted new build projects, and find you a great lender to make sure you get the best deal possible on your next home or investment purchase!

“It was an ever evolving 2 year project. There were always decisions to be made on the fly, We moved in 2020, so you can only imagine the delays and product that just became unavailable.  Now that the project is done and we wake up to the Mountain view, and entertain with family and friends, it was all worth it.”

“I love standing in the kitchen, opening the accordion doors and breathing the Colorado air!”

Related Links

• As Featured in West + Main Home Magazine: Nest Out West!

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If there is a home that you would like more information about, if you are considering selling a property, or if you have questions about the housing market in your neighborhood, please reach out. We’re here to help.

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5 Home Renovation Mistakes To Avoid

Everyone loves home renovation shows on television, but renovating a home isn't as glamorous or as easy as these programs make it seem.

If you're buying a fixer-upper or deciding whether or not you want to do major renovations to your existing home, it's crucial to have some knowledge of the realities.

New and experienced homeowners alike often make one of these five renovation mistakes. Read on to avoid learning these lessons the hard way.

1. Focusing on Aesthetics Only

Everyone wants a beautifully redone kitchen, bathroom or living space that is functional and aesthetically pleasing. However, your renovation dollars should first go to the home's main components before beautifying the fun and more visible areas. This includes plumbing, electrical, water heaters, roof, windows, insulation and structural work.

Alyssa Thomann, a first-time homebuyer who renovated a cabin in upstate New York with her husband during the pandemic, found herself in this position. Immediately after closing, they had to spend tens of thousands of dollars on major home repairs, including reinsulating the attic and eradicating pests. They also discovered the septic system was waterlogging their backyard.

"We were planning on having our wedding in the backyard," says Thomann. "We had put off fixing the septic system by doing small fixes, like adding a French drain, and were finally left fixing the issue the summer before our wedding, which caused so much stress and was extremely expensive. We ended up renovating the kitchen regardless, which was all aesthetic. It turned out so nice, but we should have focused on the bigger items first."

Focusing on the core components of a home before making aesthetic changes reduces your chance of running out of money or being left with big bills for issues that need to be addressed immediately.

2. Underestimating the Timeline

While it's not always the case, most renovations will take double the time and cost more than you expected. "Everything takes a little bit more time than you think," says Morgan Ellis of St. Petersburg, Florida, who has renovated two of her primary homes with her husband and three children as well as more than 20 investment properties. "A good rule of thumb is to double your timeline."

Sometimes addressing one project leads to another. "When we put in our pool in our current house, we ended up having lots of calcium and lime in our soil," recalls Ellis. They had to rent equipment to address it, which took more time. Then a hurricane stalled everything for a month. "We ended up having a big giant dirt pit in our backyard for a while until it was finished. There are things out of your control, like the weather, but there's a good chance it will take longer than expected."

3. Not Allocating Enough Funds for the Job

Estimating your renovation costs is one of the hardest aspects of a project. Cost for materials and labor can fluctuate dramatically, depending on where you are and the current availability of experienced contractors. Even if you're doing it yourself to save money, there is a good chance you'll uncover surprises that make a job cost more than anticipated.

Always get several estimates from licensed and qualified professionals to get an idea of what the job will cost. If it's a big project that could reveal other issues like structural problems or water damage, budget more than the quote alone.

As a real estate investor who has renovated nearly a dozen homes since 2014, I learned to set aside an extra 20% of my total renovation budget for unexpected costs or items I forget to include. We just renovated our primary residence in St. Petersburg in 2023. We spent roughly $20,000 more than we had budgeted because we discovered problems we didn't know about until diving in.

4. Not Inspecting Thoroughly

Getting a thorough inspection of the property before you buy can be a helpful way to gauge what projects need to be done first and what they may cost you. But a basic inspection might not reveal all of the issues. Inspectors do the best they can with potential visible issues in the home. However, you may need to hire additional inspections to understand the full scope of the problem.

"As new and first-time homebuyers, we had no idea how intense the inspection process should be," Thomann says. "We had an inspection, but I don't think it was to the level it needed to be. The inspector indicated there were critters in our attic and recommended we get it checked out."

Unfortunately, the inspection didn't indicate how serious or expensive the issue might be. The inspector also didn't complete a full-blown septic inspection, which is done by a septic specialist, not a general inspector. As a result, the couple missed another big issue with the home.

"I didn't have any experience with a septic system before," says Thomann. "So, I did not know we should have the septic inspected by a septic specialist before buying. After a year, the yard got waterlogged because our septic system backed up. I wish I had known more about the inspection process as a whole."

5. Hiring the Wrong Contractor

Another common mistake is hiring the wrong contractor. It's always ideal to hire contractors and people you know and trust. "Having references from someone you know is great, if possible, because there are sly people who will take your money and run or get half the job done and never finish it," Ellis says.

Frank Spottke of Treasure Island, Florida, is in the middle of a two-year-long major home renovation project. The home was taken down to the studs and is being completely rebuilt with new plumbing, electrical, windows, stucco and interior layout.

"You need to trust your contractor. They will try and sell you on the trust aspect, but you have to research the contractor, whether that is talking to people or looking at their reviews," says Spottke. "Avoid just listening to their promises."

He recommends asking questions immediately and making sure to get a direct answer. "You need to handle the transaction very businesslike and not let your emotions get in the way," he says. "A lot of my problems came from trusting our contractor completely, and not asking questions or clarifying what I wanted and needed when it came up."

Read more at RealEstate.USNews.com

Related Links

• 6 Essential Spring Home Maintenance Tasks To Do ASAP

• 4 Tips To Make Your Strongest Offer on a Home

• ‘The Best of Both Worlds’: The Spring Housing Market Might Just Change Everything for Homebuyers and Sellers

If there is a home that you would like more information about, if you are considering selling a property, or if you have questions about the housing market in your neighborhood, please reach out. We’re here to help.

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6 Essential Spring Home Maintenance Tasks To Do ASAP

The first day of spring has finally sprung. It’s time to throw open the windows, let in the fresh air, and revel in some sunshine.

Once that’s done—and stick with us here—spare some time for some easy home maintenance tasks.

Spring brings an hour of extra daylight, and you might now notice that all the ice, snow, and general wintry mix have given rise to small (but essential) home maintenance tasks you won’t want to skip this season.

We know, we know—fixing up the house is not as fun as frolicking among the flowers. Yet a few minutes of upkeep now will help save you hours of headaches down the line.

Here are the six biggies you should tackle now, either by yourself or by hiring a pro.

1. Inspect your home’s exterior and roof

No. 1 on any spring maintenance checklist is inspecting the outside of your home for any storm damage.

Depending on where you live (and what kind of home you have), it’s possible that your house took a beating during harsh, cold weather. Avoid nasty surprises—like a leaky roof—by giving everything a once-over now.

“It’s essential to inspect your home regularly for any potential damage,” says professional handyman Walter Bennett. “That includes checking the exterior and roof for water leaks, storm damage, or anything else that may need fixing.”

DIY route: If you feel comfortable climbing a ladder, you can easily inspect your home’s exterior.

Call in the pros: Are you concerned about climbing onto the roof? Find a local roofing company that can help.

2. Check for water leaks in the basement

What’s good for the outside of your home is also imperative for the inside’s darkest corners. It’s time to journey into the basement and look for water leaks or musty odors indicating moisture problems.

“Many homeowners neglect this important task, but it’s crucial to catch any potential problems early on to be fixed before they become more significant issues,” says Bennett.

DIY route: Start by inspecting the walls and floor for any signs of moisture or water stains. Check for dampness or puddles in corners and along the baseboards. Examine pipes, joints, and connections for signs of dripping or pooling water.

Call in the pros: If you find water you cannot quickly stop from entering your home, call in a pro. Unchecked water damage in the basement can lead to foundation issues.

3. Reseal driveways and paths

Driveways and paths are another vital part of our homes that degrade during the long winter months. These areas need to be resealed every few years to protect against inevitable corrosion.

Call in the pros: Resealing a driveway isn’t rocket science, but getting the job done well takes time and experience. We recommend calling in the pros to be sure your driveway doesn’t end up looking like a patchwork quilt.

4. Get your chimney cleaned

If you use anything that burns wood to keep you cozy during the chilliest time of the year, you should schedule to have it checked at the end of every season.

“Fireplaces and wood-burning stoves are beautiful additions to any home, but they need to be appropriately cleaned and maintained to function safely and correctly,” says Bennett. “A dirty fireplace can cause a dangerous creosote buildup, leading to a chimney fire.”

Buildup can also occur in wood-burning stoves and cause them to not function as efficiently. If you start to notice that there seems to be less oxygen flow within your stove, it might be time to call a chimney sweep.

Call in the pros: Unless you have the safety equipment to climb on your roof and clean the chimney safely, it’s best to leave this to the professionals.

5. Clear gutters and spouts

Neglecting all the organic material that built up in your gutters over the past few months could result in significant structural damage to your home—so it’s best to check them as soon as the snow’s gone.

“Maintaining rain gutters matters because they are the first and most important defense against water damage to homes,” says Kevin Leahy of The SpoutOff. “Gutters and downspouts must be checked and cleaned regularly to prevent clogging.”

Leahy recommends paying particular attention to the outlet (the hole in the gutter at the top of the downspout), where many clogs originate.

DIY route: If you can handle being on a ladder, you can tackle cleaning the gutters on a warm afternoon. Here’s how.

6. Spiff up the yard and garden

Spring is the time to clean up all the random bits and bobs that landed in your yard and garden from winter storms.

“Remove all debris from last year’s season: leaves, branches, and other yard waste,” says Bennett. “This will help prepare your yard and garden beds for healthy new growth.”

DIY route: Not sure where to start? Use this checklist to kick-start your spring gardening.

Read more at Realtor.com

Related Links

• First-Time Home Buyer Checklist: Have You Done Everything?

• 4 Tips To Make Your Strongest Offer on a Home

• ‘The Best of Both Worlds’: The Spring Housing Market Might Just Change Everything for Homebuyers and Sellers

If there is a home that you would like more information about, if you are considering selling a property, or if you have questions about the housing market in your neighborhood, please reach out. We’re here to help.

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‘The Best of Both Worlds’: The Spring Housing Market Might Just Change Everything

It’s not just the temperatures that are warming up right now.

If you didn’t already know, spring is the start of the busiest homebuying period of the year. Houses ooze curb appeal with early flowers in full bloom. Buyers don’t mind trudging to open houses in nicer weather. And families start scouring home listings, hoping to move in just a few short months when the kids are out of school.

This spring is also the housing market’s make-or-break moment, coming a year after high list prices and mortgage rates—and a lack of available properties—stalled home sales.

So what should homebuyers and sellers expect this season? Will asking prices and mortgage rates finally ebb? Will more homes come onto the market? Will sellers have to—gasp—negotiate? Or will a proposal by President Joe Biden to make housing more affordable nip the spring market in the bud?

“Where we are right now is the best of both worlds. Price increases are slowing, which is good for buyers, and prices are still relatively high, which is good for sellers,” says Realtor.com® Chief Economist Danielle Hale. “There are some optimistic signs, but we haven’t seen that yet translate into more sales.”

She expects sales will be better than in 2023, but they will be down from the surges seen during the COVID-19 pandemic and from a more typical year.

“We’re moving in the right direction,” says Hale.

One positive sign for the housing market is that Americans are more optimistic about buying and selling homes, according to Fannie Mae’s Home Purchase Sentiment Index. About two-thirds of consumers, 65%, said it was a good time to sell a home in February.

However, just 19% of folks said it’s a good time to purchase a home, according to the index. And that was an increase from 17% in January.

That’s because housing is still incredibly expensive. Nationally, list prices clocked in at a median of $415,500 in February, according to the most recent Realtor.com data. Mortgage rates also remain high, averaging 6.74% in the week ending March 14, according to Freddie Mac.

“The housing market is at a stalemate with high rates,” says Devyn Bachman, chief operating officer at John Burns Research & Consulting, a company that works with builders. “Until something changes, we’re kind of stuck where we are.”

Good news for buyers: More affordable homes are coming

The best news for buyers this spring is more—and cheaper—homes are going up for sale.

There were nearly 15% more homes for sale in February than a year earlier, according to Realtor.com data. That alone could jolt the housing market a bit if more “For Sale” signs continue to appear. However, the nation is still suffering from a housing shortage even with all of that new inventory.

Many homeowners chose to stay put to hold on to the ultralow mortgage rates they locked in during the pandemic. But now, they might be starting to move, even if they have to stomach a higher mortgage rate to do so.

“Listings are up a bit as life events and job changes are putting increasing pressure on locked-in homeowners to sell their homes,” says Mark Zandi, chief economist at Moody’s Analytics. “Homeowners may also be slowly coming to the realization that mortgage rates aren’t going back anywhere near the rate on their existing mortgage.”

Buyers can also rejoice in more inexpensive homes going up for sale. The number of properties priced between $200,000 and $350,000 shot up 20.6% year over year in February.

More than half of these less expensive homes, or 55.5%, were in the Southern region of the country.

“The biggest need for homes is in those lower-priced categories,” says Hale. “We’re starting to see the market give buyers the choices they can afford.”

More home sellers are also cutting prices. About 14.6% of all homes on the market underwent a price reduction in February, up from 13.2% in February of last year.

Buyers shouldn’t get too comfortable, though.

“Spring is always more active than the rest of the year. We’re more likely to see bidding wars and above-ask offers in spring than in other seasons,” says Hale. However, “there will be less of that this year.”

Mortgage rates are a wild card this spring

The success of the spring selling season might hinge on which direction mortgage rates head next.

They came down from nearly 8% last fall to the 6% range in mid-December. This was thanks to the U.S. Federal Reserve’s plans to cut interest rates, which would likely result in lower mortgage rates as well.

But with inflation stubbornly remaining above the Fed’s 2% target, the Fed may choose to keep its rates higher for longer. That is expected to keep mortgage rates high as well.

“There will be more of a roller coaster in mortgage rates than previously expected,” says Hale. “Buyers are going to have to stay on their toes and be prepared to adjust.”

This time around, however, buyers might be more willing to accept a higher rate on a mortgage they can refinance when rates come down.

When rates first started rising rapidly in 2022, many found the prospect of a mortgage rate in the high 6% range financially terrifying. But after rates almost hit 8% last fall, they’re looking a lot better to many aspiring homeowners.

“Buyers and sellers have come to terms with these higher rates,” says Lisa Sturtevant, chief economist of Bright MLS, which covers the mid-Atlantic region of the country. “I do think we’re going to see them above 6% for the rest of the year.”

Even if rates do drop, home prices could potentially rise to make up the difference. That’s because more buyers will jump into the market, making it even more competitive. That could lead to more bidding wars and offers over the asking price.

President Biden might have threatened the success of the spring market

The housing proposals Biden unveiled at the State of the Union, which are designed to make housing more affordable, could also inadvertently endanger the spring market.

Biden, the Democratic Party’s 2024 presumptive nominee, would like to offer middle-class homebuyers tax credits of up to $5,000 for two years and middle-class homeowners tax credits worth up to $10,000 if they sell starter homes to other owner-occupants.

“President Biden’s proposals are just proposals and unlikely to become law, at least not anytime soon,” says Zandi.

However, many potential buyers and sellers might still hold off on entering the market.

“They might wait until they can get the tax credit money instead of moving ahead with plans,” says Hale. “It could cause a temporary drop in housing demand.”

Bidding wars and offers over the asking price could return

Despite high home prices and mortgage rates, buyers are expected to face a lot of competition over a still-limited number of homes for sale.

“Homes that are turnkey and in a good school district will be in high demand, meaning there will probably be bidding wars,” says Ali Wolf, chief economist of the building consultancy Zonda. “They will sell above asking price.”

However, real estate experts don’t predict a repeat of what we saw during the pandemic.

“I don’t think we’re going to see a return of buyers having to offer up their firstborn child to get a home,” says Sturtevant. “Sellers are still going to have the upper hand, but they’re going to have to negotiate.”

Sturtevant is seeing more seller concessions in the mid-Atlantic region. About a quarter of all sales included sellers providing the buyers with some cash for their closing, buying down their mortgage rates, or kicking in some money for repairs.

“For someone who is willing to accept an older home that needs more work, there is a bit more negotiating power,” says Wolf. “There will be opportunities for negotiating this spring season.”

Read more at Realtor.com

Related Links

• First-Time Home Buyer Checklist: Have You Done Everything?

• 4 Tips To Make Your Strongest Offer on a Home

• Weekly mortgage demand jumps again as interest rates fall just below 7%

If there is a home that you would like more information about, if you are considering selling a property, or if you have questions about the housing market in your neighborhood, please reach out. We’re here to help.

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