Investing in real estate is a great strategy for achieving financial success. While it seems fulfilling and lucrative, the process can be pretty complex, especially for novice investors struggling to gain a foothold in a competitive market.
Among the different methods adopted by homeowners while selling their homes, the most common is approaching either real estate agents or investors. Since hiring real estate agents proves quite costly for most homeowners, their best resort is home buying companies. These real estate investors will buy properties at a fair price regardless of their condition.
If you’re a real estate investor currently starting out in the field, or you want to learn some new investment tactics, you might want to start learning from real estate coaching programs or follow these tips to help you maximize your profits:
Stage The Property
According to the National Association of Realtors in their 2019 Profile of Home Staging, 40% of home buyers stated that home staging had a significant impact on how they viewed a specific property. Additionally, 83% of agents claimed that home staging helped clients to visualize a property as their own home.
So to sell your property easily while reaping more profit, stage the property and let buyers appreciate and realize that the property is habitable for them. Highlight the best features of your property and stage it in a way that buyers can actually visualize themselves living there.
Furthermore, don’t overlook the curb appeal of your property as this can greatly boost its overall value. By considering the entirety of your property, potential buyers will immediately be able to assess if it’s suitable for their lifestyle needs. Improve your curb appeal through various home improvements, repairs, and renovations. The results will yield added property value and more interested buyers.
Have It Featured In MLSs
The key to maximizing your profits is to turn your properties around as quickly as possible. The longer it remains in your possession, the less return you’re likely to earn from it. A good platform to feature your property is Multiple Listing Services (MLS) which shows the photos and details about a listed property, and can help you attract more potential buyers.
Moreover, you’ll save the cost of hiring an agent who’s looking for commission at every step of the transaction. In MLS, the selling agent and listing agent split the sales commission once a sale concludes, and you can gain relatively more profit from your property.
Install Smart Home Technology
You won’t be able to gain much profit from your property if you’re not willing to put your money on the line. So, install smart technology in your property for a “wow factor”. Smart technology offers the utmost comfort, convenience, safety, and peace of mind to homeowners. So while buying a property, opting for homes with installed smart technology at a slightly higher price won’t be a bad call, after all.
Smart home functions and energy-efficient systems are no longer rare, but having these devices installed in your property would certainly improve its living conditions. Plus, your home buyer won’t have to worry about installing these smart devices themselves.
Find The Right Time To Buy Or Sell
Buying and selling homes isn’t an endeavor that can be undertaken all-year-round. To make the most out of your transaction, choose the right time to buy and sell your property.
The perfect opportunity to sell is when inventory levels are at their lowest point and the demands of home buyers are peaking. This way, you can maximize your profit as more interested home buyers would be keen to consider your property.
On the other hand, if you’re the one buying, wait until inventory levels are high and there’s not much demand from other home buyers. This correlates with the law of demand and supply, as you can negotiate the price of the property and save more if property demand is at its lowest point.
Earn Profits Through Rent
Instead of finding a property buyer immediately, you can put your property up for rent as a way of maximizing your profits. Managing rental investment is not always easy, but there are a few factors that you should consider. These include finding great tenants, assessing your property value accurately, understanding market conditions, and choosing a good location.
By opting to rent, you can gain a recurring and passive income without having to put a lot of effort into maintaining your property. It can also offer you a degree of flexibility, as whenever market conditions aren’t at their best, you can rent out your property while the market recovers.
Moreover, if it’s not the most profitable time of the year to sell your property, renting it out saves the time you might have wasted in finding the right buyers.
Just like any other venture, making investments in property can be perfected through time. Although it can prove tough during the initial stages, employing effective investment strategies can contribute greatly towards maximizing the profits you earn. By considering the tips mentioned above, you will set yourself on the right track to making better property investments.