Real Estate By Type

Should You Buy a Multi-Family Home?

CB-for sale 3If you are thinking about owning a piece of property to live in while wanting to have an extra section to help pay the bills, then you will find that there is an effective way to do it. Today, many people are considering the idea of buying a multi-family home, because this allows you to have your own space for you and your family while getting extra income from renting the other apartments. Keep in mind that as advantageous as this is, there are a few points that you have to consider.

1.  Keep in mind becoming a landlord will require some extra work. When repairs are needed, or a tenant does not pay the rent it can cause some unwanted worries. This being said it can also be a great way to start off allowing you to live, in some cases, rent free while getting monthly income to help pay down your mortgage.

2.  In choosing the right tenants,  think like you are running a business, as you will be collecting an income from the home you are renting. Take the time to choose the right tenant, a credit check, otherwise you might find yourself in a situation where you will be losing money if your tenant does not pay up at the end of the month. If you are willing to put in the work, purchasing a multi-family home can be a great way to invest.

For more information on purchasing a multi-family contact your Coldwell Banker Upton-Massamont REALTOR today.  Our agents are live and work in the Pioneer Valley and look forward to assisting Buyers find just the right home.

To start your search click HERE to see all the multi-families available in Franklin County, MA

To start your search click HERE to sell all the multi-families available in Hampshire County, MA

How NOT to Sell Your Home

Seems these days everyone is telling you what to DO, but where is the DO NOT list when selling your home? Here are three easy tips on what not to do in the sale of your home.

1. Do not get emotional

That is easier said than done -this is your home after all. The more you think of the sale as a business transaction the better and thinking with your heart is not always the best route to take when negotiating a deal.

Buyers will not place the same value on your home as you do. You will have to put your emotional attachment aside. A house is worth what a buyer is willing to pay. Much to the seller's chagrin, this means that buyers set the market. In most cases, there is a going fee for homes. The price is typically is determined by location, house style, number of bedrooms, bathrooms, lot size, and condition to name a few. What is not taken into consideration are the memories and the love you put into taking care of your home.

2. Don't go it alone

Real estate professionals are skilled to showcase home selling qualities. They are also skilled negotiators who know how to get you the best deal. According to the 2010 National Association of REALTORS® Profile of Home Buyers and Sellers, homeowners that sold on their own property typically received $59,000 less for their home than an agent-assisted home sale.

It can be very difficult for a seller to show and close the deal on their own home. It is usually very awkward for buyers viewing a home while homeowners are still there. It may discourage them from commenting, criticizing things, or even looking as thoroughly as they normally would. A buyer is leery about trusting and working directly with the seller. Negotiations typically break down without the real estate professional's expertise.

3. Don't choose the agent who gives you the highest price

Many sellers get caught up in what an agent will say the house is worth. Refer back to number one on this list. The house is worth what the market will bear. Often times an agent may entice you with a higher list price to get the listing, only to drive down the ultimate selling price of your home because it has sat on the market for too many days. Choose an agent based on their reputation, marketing strategy, and one you can trust. You may want to even throw in a gut feeling on the choice. Remember you will have to work with this person so a good relationship is important.

What Buyes and Sellers Really Think

Each year the National Association of Realtorsdoes a study of home buyers and sellers. They ask home buyers and sellers across the country why they bought or sold, how they made decision and who they are. Here are just a few of things they found out:

WHAT SELLS

The typical home purchased was 1,780 sq ft, was built in 1990, and had three bedrooms and two bathrooms, according to NAR's 2010 survey of buyers and sellers.

APPEALING TO BUYERS

44% of sellers offered incentives, like home warranties and help with closing costs, to attract buyers, according to NAR's 2010 survey of buyers and sellers.

THE PRICE IS RIGHT

Recent sellers typically sold their homes for 96% of the listing price; 57% reduced the asking price at least once, says NAR's 2010 survey of buyers and sellers.

GENDER GAP

There are more single female buyers than single males. But single male buyers grew by 2 percentage points between 2009 and 2010; single female buyers.

COST OF LIVING

The median price buyers paid for homes was $179,000, according to the latest NAR survey of buyers and sellers.

Home Buying Simplified

Buying a home can be a scary and confusing process. It is easy to get confused by all of the homes, locations, and what is truly important to you when buying a home.

First you will want to determine what you can afford. To do that you will want to get preapproved. That means a bank; mortgage broker or credit union will determine how much of loan you qualify for based on your income, debt and credit score. They will give a pre-approval letter stating how much you can afford.

Now it is time to pick a real estate professional to help you find the right home, negotiate on your behalf and help you navigate through the process. It is important that you choose an agent that is reputable; you have interviewed to find a good fit and is willing to listen to your needs.

Many buyers often confuse their needs with their wants. Making a list of what you actually need and what you want or your wish list is very helpful when looking for a home. Buying a home is typically a process of elimination. Many home buyers often dismiss homes that perfectly fit their needs in search for one that has their wants. This doesn't mean you can't have your wish list, but home buying is more often defined by your budget than wish lists.

To help with this process it is typically helpful to make a list of needs and wants.

Examples of NEEDS Examples of WANTS
Reasonable square footage for comfortable living Paint, carpet, counter tops, accessories.
Bedrooms to accommodate your family Pool or Jacuzzi (unless for medical reasons)
Adequate number of bathrooms Wood floors
Eat-in kitchen Bay windows, skylights
Garage or basement for storage needs Entertainment centers,  moldings, decks and patios
Lot size to accommodate children's play area Upgraded lighting fixtures
Adaptation for Handicapped View
Proximity to a specific school
Single floor living for health reasons

Each individual will have a different list of needs and wants. Your own list will help you evaluate homes as you go through the process. Sharing this list with your real estate professional will also help narrow down your search. The goal is to find a house that includes all of your needs and meets as many of your wants as is practical in your budget.

Keep This in Mind When Buying Land

There are many ways that you can invest in real estate. One way is by purchasing land. This option can be a very lucrative choice, as long as you keep the few important points in mind. The reason why purchasing land could be a viable option is because you get to pick your location, and build a home to your specs. This will allow you to find your own contractors to construct your building for you. By having full control over who you choose and what you pay, it becomes easier for you to save on costs.

Keep in mind that while you do have full control over who you choose to build on your property, it also means that there will be more responsibility hanging over your shoulders. For example, you would need to make sure that you have all the right permits to construct your building, and you also have to make sure that you choose the right contractors; otherwise the whole project can turn into a big catastrophe. Therefore, before deciding to purchase a piece of property that is completely void of any buildings, take some time to do some research, as this will save you a lot of headache in the long run.

Buying land in a down market can also be a great investment. Land is becoming harder to come by, which is creating a higher demand for land and in turn bringing the price up. Buying land now and holding onto to it could bring some great return. Think about it in 10 years from now there will be a lot less land and your lot could be worth a pot of gold. Invest now and reap the rewards down the road. Think of it like a savings account, you deposit money into a piece of land and watch your money grow!