4 Steps to Turn Around the Exterior of Your New Investment Property

Now that you have bought a property that needs to provide a return on your investment and generate income, it needs to look its best and be in good condition.

When updating the exterior, here are some things to work on that will attract the interest of buyers or renters.

Repair the Roof
A home's roof is an important consideration to people looking to rent or purchase a property. Damaged or inadequate roofing can lead to moisture leaks from rain or snow. Wind damage can worsen the roof's condition. Check to see that the shingles are intact and nailed securely. Ensure that the gutters and downspouts are properly installed and free of leaks or rust. The chimney should also be inspected for signs of crumbling bricks or mortar as well as any openings that would enable insects, rodents, or birds to get inside. Professional roofers can handle these issues if you lack the time or expertise.

Update the Windows
A building's windows need to be in good condition without leaks, cracked glass, or torn screens. The window casings and frames should also be solid and not warped or damaged. Paint the frames to coordinate with the home's exterior color or texture for a smooth, updated look. Indoor curtains, valances, or drapes can often be seen from outside, so choose a style that enhances the window design. You may want to install shutters or awnings made of canvas or aluminum to shield the windows from sunlight glare and add attractive accents.

Enhance the Entrance
Homebuyers always check out the front door first. If the entrance is appealing and welcoming, they are likely to schedule a tour to see the rest of the property. To make the most of your property's entrance, freshen the front door with a coat of paint. Add hanging baskets of flowers or planters on the stoop or steps as well as a seasonal wreath on the door. Trim any hedges or bushes at the front of the property. Clean the yard and add fresh mulch to flower beds.

Reinforce the Foundation
Walk around the house to see how the foundation looks. If rainwater trickles toward the foundation, reposition the dirt alongside the basement foundation so that it slants away from the house for better drainage. Tuckpoint any gaps or cracks and clean up crumbled brick, block, or cement.

With a few basic tasks like these, your investment property can look better than ever. Take time to objectively appraise the home's curb appeal, and make improvements like these to attract interested shoppers.

Get more tips like this on RISMedia.

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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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The 4 Backyard Pool Features Real Estate Agents Absolutely Love to See

Thanks to today’s crazy hot real estate market, sellers don’t need to do too much to woo potential buyers.

That’s especially true of well-appointed homes that have lots of updates or desirable features like swimming pools. However, not everyone sees a pool and jumps for joy. Some people can actually have some major reservations about buying a home with a swimming space — whether it’s because of the additional insurance concerns or simply worries about safety — which is why Florence Saade, a Realtor associate with Brown Harris Stevens Miami, says every seller with a pool should make sure their pool area has these four things.

An Inviting Vibe

Pools can be a massive selling point to hopeful homeowners with dreams of having a swimming spot all their own, but Saade says it’s really important for prospective buyers to be able to see themselves lounging around the space. “When buyers are touring potential homes, they like to envision themselves entertaining or having a great time with friends and family around the pool — especially during the summer months,” she says. “Anything that looks inviting and ready to entertain will make buyers’ eyes light up and increase the value of the home overall.”

The Essentials New Owners Need to Get Started

While pools can be enticing, all the work that comes along with them is decidedly not. Pools require upkeep, maintenance, and sometimes costly chemicals, which is why Saade says it’s important to provide everything your home’s next owner will need in order to get their feet wet… literally. “When listing a home with a pool, sellers ensure the pool area is turnkey, allowing buyers to bring nothing more than a swimsuit and jump in.”

Plenty of Room for Hanging Out

Your pool isn’t the only thing that needs to look inviting; the area around your pool should highlight just how much time a new owner will want to spend hanging poolside. “A well accessorized poolside sitting area is an excellent touch,” Saade says. “The area should have comfortable, clean seating and offer sun protection, like a canopy or a stylish umbrella.” 

A Unique Feature

Pools are obviously a huge selling point all on their own, but Saade says you can get even more bang for your buck if your backyard pool area also comes with an outdoor kitchen. “They create a sense of luxury and convenience,” she says. “Buyers like the idea of being able to serve food and drinks without going back and forth to the main kitchen. Even when space or budget doesn’t allow for a full outdoor kitchen, a nice BBQ for example is a wise investment. Just be sure it is clean and in working condition.” As an added bonus, an outdoor kitchen means less dripping bathing suits in the house! 

Get more like this on Apartment Therapy.

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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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Should You Buy a House With Roof Damage? The Surprising Benefits—and Challenges

For most home shoppers, any mention of roof damage is enough to send them sprinting in the opposite direction.

Buyers who are not in the market for a fixer-upper are typically trying to nab a house in the best possible condition, and roof damage can be seriously costly to repair.

But should a faulty roof scare you off, or does it present an opportunity to negotiate the price of the home? Consider these factors before making a decision.

How bad is the damage?

The extent of the roofing damage is one factor that should help sway your decision.

Are you getting an FHA loan?

Buyers who plan on using a Federal Housing Administration loan to finance the house can end up putting down as little as 3.5%. But to be approved for the FHA loan, the property must be in livable and insurable condition, and the buyer must have secured property insurance before closing.

To get property insurance, the insurance company will require a four-point inspection, which covers electrical, plumbing, HVAC, and the roof’s condition and life expectancy, according to Juan Rojas, licensed real estate broker at JPR International Real Estate in Miami.

“Typically, if the roof doesn’t have at least three years of life expectancy, an insurance company won’t be able to insure it,” he says.

Therefore, if you’re planning on getting an FHA loan, trying to buy a home with roof damage might be more trouble than it’s worth.

What if it’s just an old roof?

Perhaps there’s no proven damage to the roof; maybe it’s just really old, like, 20 years old. The life span of your roof is determined by the material it’s made of and the weather conditions in your area. Slate, copper, and tile roofs can last 50 years or longer; wood shake roofs last about 30 years; fiber cement shingles last 25 years; and asphalt shingle roofs last about 20 years, according to the National Association of Home Builders.

Home buyers shouldn’t necessarily shy away from a home with an older roof, Lesh says.

“It would depend on the quality of the workmanship and materials, and whether any signs of abnormal wear are visible,” he says. “For example, a 20-year-old undamaged, clay tile roof in the southwestern United States is more likely to last longer than a brand-new composite shingle roof in the same area.”

Should you buy a home with roof damage?

Ultimately the decision is yours; however, most of the experts we spoke to believe that problems with a roof should not deter you from purchasing a house—as long as there are stipulations.

“As long as the damage has been or will be repaired, there should be no problem buying a house with a roof that has been damaged,” says Lesh.

Maya Madison, a real estate agent at Keller Williams Realty in Metairie, LA, believes you should absolutely consider buying a house with roof problems.

“During the inspection period, get a quote from a licensed contractor to repair or replace” the roof, she says. “Either the seller will agree to fix it before the act of sale, or take the amount off the purchase price.”

And if you don’t agree with the seller’s decision, Madison says you can cancel the contract during the inspection period.

However, if you decide to proceed with the purchase, Breyer warns against letting the sellers make the repairs. He advises buyers to get their own quotes and then negotiate the price down based on the amount it will cost to repair or replace the roof.

“The sellers’ goal would be to save money, meaning that they are going to hire the cheapest contractor, and you might end up with a roof repair that is lacking in quality,” Breyer says.

Get more like this on Realtor.com

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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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Luxury home sales see biggest decline since the start of the pandemic

Even the wealthiest Americans are starting to feel the effects of economic uncertainty, as sales of luxury homes saw their largest decline since the start of the pandemic, a Redfin analysis found.

Sales of luxury homes plummeted 17.8% year over year during the three months ending April 30. That's a much larger decline than non-luxury homes, which fell only 5.4% in the same period.

The only two times this decade when the drops were steeper came during the 2020 pandemic, when the market fell as much as 23.6%.

The high-end housing market is cooling down after an 80% surge in sales last year, thanks to rising interest rates, soaring inflation, a shaky stock market and uncertain economic outlook. Higher mortgage rates can translate to monthly housing bills increasing by thousands of dollars for the most expensive homes, Redfin said.

Mortgage rates climbed again last week after staying mostly flat for a few weeks, rising in anticipation of Friday's inflation data, said George Ratiu, Realtor.com's senior economist and manager of economic research.

Redfin said luxury home sales began to cool off this time last year, when there was a shortage driven by wealthy remote workers who wanted to leave cities and take advantage of low mortgage rates.

Prices are still rising for luxury homes -— though not at the same rate as a year ago. The median sale price rose 19.8% year over year to $1.15 million, down from its peak of 27.5% in the spring of 2021. Pre-pandemic, year over year price increases held steady at less than 10%. Fleck said sellers are now willing to lower asking prices as demand cools and the housing shortage eases.

Redfin has been tracking of this data since 2012, qualifying luxury homes as those in the top 5% based on local market value. Non-luxury homes are between the 35th and 65th percentile based on market value.

Nassau County, New York, saw a 45% decline in luxury home sales. Metro areas including Oakland, California, West Palm Beach, Florida and Dallas and Austin, Texas, all saw declines of sales of more than 30%.

Keep reading on CNN.

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Housing Market Hot but Not a Bubble, Economists Say

Although home prices continue to break growth records, a panel of housing experts and economists surveyed does not believe the market is in a bubble.

The latest Zillow Home Price Expectations survey [1] polled more than 100 experts from academia, government and the private sector to gather their opinions on the state of the housing market and future growth, inflation forecasts and recession risks. 

Of those surveyed, 60% said they did not believe the U.S. housing market is currently in a bubble, compared to 32% who think we are in a bubble, and 8% who are not sure. 

The most popular reason respondents rebuffed the bubble thesis was strong market fundamentals, including demographics, scarce inventory and shifting housing preferences. Low credit risks as a justification followed, due to sound loan underwriting and the overwhelming share of fixed-rate, fully amortized mortgages. Another large group of respondents rejected the term “bubble,” which implies a subsequent crash they do not believe is imminent. 

Among those who do believe we’re in a bubble, unaffordable prices in the absence of record-low mortgage rates is the chief rationale. 

To be sure, the housing market is incredibly hot. Home values in April are up about 21% over last year, marking the 13th consecutive month of record-breaking annual home value appreciation. Affordability is greatly suffering too, as the astronomical rise in both home prices and rents over the last two years coincides with a more recent hike in mortgage rates. However, an extremely hot market does not necessarily mean one in a bubble. 

Although a recession is looking more and more likely, the housing market today is a far different beast than what we saw in the mid-2000s. Unlike in 2006, this market is underpinned by strong fundamentals and has been built on mortgages with sound credit, factors that won’t change in the near term.

When will the next recession hit? 

While the panel largely does not believe the housing market is in a bubble, it does foresee a recession coming soon. The largest portion of the panel (45%) expects the next U.S. recession to begin in 2023, which gathered more votes than 2022 (30%), 2024 (8%) or 2025 and beyond (17%). 

Can the Fed thread the needle?

The Federal Reserve is working to strike a balance between twin mandates of reducing rampant inflation and avoiding a recession. Those polled by Zillow are skeptical that this “soft landing” will be achieved, as 56% of survey respondents do not expect the Fed to materially reduce inflation while averting a recession. The remaining respondents are cleanly split, with half believing that the Fed will be successful in avoiding a recession while reducing inflation, and the other half who are not sure. 

Of those who doubt a soft landing will happen, three fourths see a short recession as the most likely economic outcome. 

Home price expectations still rising

Despite a more than 100-basis point increase in mortgage rates since the previous survey just three months ago and the potential for higher rates in coming months, the panel’s expectations for 2022 home price appreciation still rose to 9.3% from 9.0% last quarter. This would be a significant step down from the 19.6% appreciation observed over the 2021 calendar year, but still high above long-term historical averages. 

Looking forward, the most optimistic quartile of respondents predicted prices would rise 46.1% between now and the end of 2026, while the most conservative quartile predicted a cumulative rise of only 9.3% in that time. On average, respondents are forecasting a 26.4% cumulative rise by the end of 2026.

Keep reading.

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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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