4 Tips To Start Investing in Real Estate

Four tips for beginners getting started in investing with real estate.

Have you ever thought about investing in real estate? If you haven't, maybe you should. Investing in property is a fantastic way to secure long-term wealth, but where do you start? Today I’ll share my best tips to help you begin investing in real estate: 1. Buy a duplex, not a single-family home. If you’re a first-time buyer, this is a great place to start. You can live on one side and rent out the other. After living there for a few years, you can buy a single-family home while keeping your duplex. This way, you’ll have a home all to yourself and a great investment property.

“Flipping properties is great, but it’s not a way to build long-term wealth.”

2. Start simple. When you buy your first single-family home, don’t go way over budget. Instead, stick to a simple, three-bedroom, two-bathroom house with a garage in a decent area. Once you upgrade from this property, you can keep it and rent it out, just like the duplex. 3. Short-term rentals are great for beginners. You can rent out part of your current home as an Airbnb, or you can turn an inherited property into a short-term rental. 4. Flipping homes is not a long-term investment. Buying distressed properties, fixing them up, and selling them for a profit can be a great way to invest in real estate. However, it is not a good way to build long-term wealth. If you need more information, please call or email my team. We’d love to help you start investing in real estate!

What To Prioritize as the Market Changes

Three actions to prioritize so you can thrive as the market shifts.

As a real estate professional, I’m sure you’ve noticed that the market is changing. This is the time to make sure you’re doing things correctly so you thrive instead of flounder. That is why I have narrowed down three priorities that are the most important actions an agent should be taking right now: 1. Check on your systems. Do you have systems, and are they in order? You should have an ideal system for all your processes that does the same thing every time. These systems will give you consistency in this shifting market.

“Who you align yourself with matters.”

2. Update your tools. My advice as someone who has been through downturns in the market before is you should be more careful to make sure you're spending wisely. For example, your marketing pieces — are they giving you a return on your investment? Also, are they reflecting the market? This all has to do with making sure your tools are updated to reflect the current climate. 3. Align yourself with a leader. Who you align yourself with matters, and you should be getting coaching from someone who has experience. If you don’t have anyone like that in your life, I would love to have a conversation with you. If you would like to know more about our experienced team and how we work well during change, send me an email. I hope to hear from you soon!

How Buyers Can Get Deals in Today’s Market

 

How much should you offer on a home? Today I’ll give you a few tips.

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How do buyers decide on how much to offer for a home?

First, are you in a seller’s market or a buyer’s market? That’s an easy question to answer—we are certainly in a seller’s market right now. Most homes are selling for at least 100% of their asking price. That means, in today’s market, if you come in and offer 90% to 95% of the asking price, one of two things will probably happen: you’ll offend the seller, who was expecting a full price offer, or You’ll get beaten out by someone who did offer full price. If the market were to transition to more of a buyer’s market, then you would have some leeway in what you could offer.

“If you’re looking for a deal on a house right now, I’d first shop among the homes that have been listed for a while."

To get a deal in a seller’s market like this, I advise you to negotiate on things

other than the price. For example, say that someone wants $260,000 for

their home. You could offer them full price but negotiate on terms, like getting

the extra refrigerator they have in the garage in addition to the one in the kitchen.

You could also ask to move in a little sooner or make a deal to get

help with closing costs.

Also, consider how long the house has been on the market. If it’s only

been for sale for two or three days, you’re less likely to get a deal. If the

house has been on the market for two or three weeks, you might have a

better opportunity to offer a little less money for the home. Frankly, if you’re

looking for a deal on a house right now, I’d first shop among the homes that

have been listed for a while.

Finally, how does their asking price compare to other, similar homes in

the same neighborhood? Ask your buyer specialist to show you the data

on how those homes compare. Even if a home is new on the market, if it’s

overpriced, then you’ll have an issue with the appraisal

If you’d like information about working with a buyer specialist who can give

you tips on this topic and much more, or if you have any questions, please

give us a call or send an email. We can give you a checklist of things you

need to think about when you make an offer on a home. Hope to hear

from you soon!

Avoid These Common Buyer Mistakes

 

Here are four mistakes you should avoid at all costs as a buyer.

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If you’re thinking about buying, make sure you don’t make these common mistakes: 1. Picking a bad location. This might mean it’s in a poor part of town. It might be cheaper to buy, but the value is worse in the long term. The lot location can also affect the resale value. If you sit way above or below grade, you can have trouble selling the home.

“I would never waive the inspection on a home I was buying."

2. Buying a home sight unseen. A lot of people are doing this, but it’s a mistake in the long run. You should at least try to see the home at a later date rather than make a decision based solely on the pictures. 3. Waiving the home inspection. This is a dangerous idea. There are some ways around it though. You might ask the inspector to look at the property on your first walk-through, for example. It won’t be a complete inspection, but it’s better than nothing. 4. Not having a knowledgeable representative. When you’re making an offer, you need someone who can give you advice on the location, pricing, and even what to waive. We have plenty of buyer specialists on the Charlotte Mabry Team. You can send me an email at charlotte@charlottemabryteam.com or call my team at (423) 593-5588. We would be glad to help you get the best deal on your new house.

6 Steps To Find The Right Agent

Here are my six steps to find the perfect agent to sell your home.

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So, you’ve decided to sell your home. Now’s a perfect time because it’s a great seller’s market. However, how do you find an agent that can get you the best deal possible? Today I want to talk about the steps you should take to find a great agent to sell your home. 

1. Visit open houses. Even if you aren’t planning on selling your home right this second, visiting open houses is a good way to meet a wide variety of agents. When it comes time to sell, you’ll have a list of contacts ready to go. 

2. Get a personal referral. You should ask everyone you can if they know a great agent. Coworkers, family, and community members are all good places to start asking around. 

3. Check the agent’s track record. There are plenty of new agents, and they have to start somewhere, but do you really want to be their first sale? I recommend you look for someone with plenty of experience. 

“There are plenty of ways to do an inspection without spooking your seller.”

 

4. Compare online reviews. Comparing online presences is one way to get a feel for an agent. Are they hard to find? Are positive reviews readily available? Ideally, your agent has a significant online presence. 

5. Work with a team. Individual agents can be fine, but if you want to guarantee success, you should work with a team. It’s pretty simple: two heads are better than one. Instead of one person doing all the work, teams have people dedicated to marketing your home, researching your area, and making sure you get top dollar. 

6. Talk about communication. Like in all relationships, communication is key. Do you prefer calling or texting? How often do you want updates? These are all important questions you should talk to your agent about. 

I hope these steps gave you a good idea of where to start when looking for an

agent. If you have any questions, please call or email me. I have a more

comprehensive list of steps to take when selling your home that I am happy

to give you with no strings attached. 

Of course, if you are looking for an experienced team to help sell your home,

the Charlotte Mabry Team is hard to beat. We look forward to hearing from you!

Why You Shouldn’t Waive the Home Inspection

Here’s everything you need to know about waiving home inspections.

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You want to buy a home in this competitive market, and you’re wondering

if you should waive the home inspection. Let’s talk about it.

It sounds like a good idea. You want your offer to stand out, and if the seller

gives you disclosure forms, what is there to worry about?  

“There are plenty of ways to do an inspection without spooking your seller.”

 

In my opinion, I would never buy a property without some sort of home inspection. There is too much risk involved in not having one. The last thing you want is to have your dream home turn into a money pit. 

Now, there are ways to have a home inspection without spooking sellers. For example, you can write in your offer that the inspection will be done quickly, and you won’t ask the seller to make any repairs. If you have a home inspector already lined up, you can streamline the process and shorten the overall inspection time. 

Another tip I have is to take your pre-selected home inspector with you when you tour a property. They can do a quick, 30-minute run-through to see if they find any glaring issues, and you won’t have to worry about putting the inspection in the contract. 

At the end of the day, I highly recommend you always have an inspection done when buying a home. Even a quick one can save you a ton of headaches and money. 

If you are looking to buy, our team has some rockstars ready to get you into your dream home, so please reach out to us via phone or email. Also, if you liked today’s blog post, we have tons of great content on our site. We look forward to hearing from you!

5 Ways You Can Stay Ahead of the Market

Here are five ways you can make your offer stand out in today’s crazy market.

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If you’re thinking about buying a home, and you’re ready to make an offer, how can you stand out

in this crazy market? I have five tips that can help make your offer as strong as possible.

1. Know what you can afford. Don’t make offers on homes that are right at the top of what you can afford. If you look for houses that are a little bit below that line, you can potentially bump up your offer price to outbid other buyers.

“You’ll probably need to make your best offer first.”

2. Keep a fast pace. If your agent calls you and tells you to look at a house, you need to look at it right away because it might move in the blink of an eye. Being flexible with your work and your time can let you see more houses before they get sold.

3. Make your best offer first. Back in the day, we could make an offer and gauge how the seller responded to it. That’s not the case anymore. A weak initial offer will just make the seller ignore you and go with seemingly stronger buyers.

4. Be a flexible negotiator. If the sellers want to stay in the property a little longer, or even if they want to rent afterward, you might have to be flexible. It can help your offer stand out and get you the home.

5. Use a seasoned real estate professional. We have a lot of good agents in our market, but you really need to be working with the best. They understand the process and will help you win multiple-offer situations

Here at the Charlotte Mabry Team, we have some awesome people who really know what they’re doing. I’d love to hook you up with one of them and help you win that house. Call or send us an email, and feel free to reach out even if you just have real estate questions.

What Happens When You Close on a Home

Here’s an overview of what happens during the closing process.

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While you’re getting ready to close on your new home, what’s going on behind the scenes? Here’s a checklist of tasks that typically happen: 1. Your contract is reviewed. This ensures all your contingencies are met, your loan information is correct, your name is spelled correctly, etc. 2. Your loan is verified. This ensures that all your funds are there and you’ve met all the terms of the loan process. Your lender will also check your employment history and your credit. This all happens typically the day before closing. 3. Your deed for the home is checked. This involves title work and a title search to verify that there are no liens on the property or any other surprises. The title insurance policy is also prepared to ensure the title is free and clear. 4. You receive the survey of the property (if you ordered one). This survey will then be verified so it matches with the written description of the property.  

  

"Double-check the numbers before signing on the dotted line. "

5. You do a final walk-through. You and your agent will walk through the home to confirm that everything is in working order and exactly how you purchased it. We typically recommend doing this the day before closing. 6. You receive a closing disclosure. You receive an estimate of your closing costs during the initial phase of the closing process, and this document breaks down all of those closing costs. Your lender usually sends it to you three to four days before closing. Double-check the numbers before signing on the dotted line. 7. You sign a lot of paperwork come closing day. If you’ve bought a home before, you know that you need to bring both hands with you on closing day because you’ll be signing a lot of papers. Transactions with conventional loans typically involve more paperwork than cash transactions, and transactions with government loans (VA or FHA) usually feature even more paperwork. 8. The deed is sent to the courthouse and recorded. Afterward, that document is sent back to the title company, who then sends it back to you. You should get it in the mail two to six weeks after closing. If you have questions about the closing process or there’s anything else I can assist you with, send me an email and I’d be happy to help you. I hope you have a fantastic day!

'First Time' Homeowner Maintenance Tips

So you've purchased a new home and now need to maintain it.

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So you've purchased your first home. Today we're going to talk about maintaining a home after you purchased it. What should you think about first? Here are the maintenance projects I suggest you do as soon as you move into the home.

1. Change the locks. Always do this, even if the seller says they just changed them. I'd change them again anyway because Aunt Susie might have an extra key or Bob the neighbor down the street might have one. 

2. Check all of your filters. Check the filters on your heating and air system and water system to make sure they're clean. If needed, replace any old filters.

3. Check the caulking around windows and doors. Even though your home checked out at closing, caulking is always a maintenance item to keep an eye on.

4. Add insulation to your water heater and pipes. Your pipes and water heater can always use a little extra insulation to be a little more efficient and lower your heating and cooling bills.

"Always change the locks, even if the seller says they already have."

5. Install a programmable thermostat. This will also lower your utility bills. It's a great value-adding item if you do sell again.

6. Clean your refrigerator coils and dryer vent. Lots of dust and lint can accumulate behind your fridge and in your dryer vent. Those can both be fire hazards, so getting them clean right away is very important. 

7. Extend your downspouts away from your house. It's the best way to keep water away from your home and flooding the basement.

8. Double check your smoke and carbon monoxide detectors. We just assume those things work; although your home inspector probably checked them out, there's time to make sure between your home inspection and you moving in.

If you'd like a complete list of all the things to maintain your home, I am more than delighted to send you more information. Contact me at charlottemabryteam.com. If you have suggestions on topics, send me an email and I'd be glad to cover them for you. I hope you have a fantastic day and I look forward to seeing you back here next time.

Using an Escalation Clause in Today’s Market

Have you ever heard of an escalation clause?

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What in the world is an escalation clause, and as a buyer, should you even use one? Today I’ll answer both of these questions and more.

If you’re thinking of buying a home in 2021, just know that so many other people are thinking the same thing. In fact, for every home that’s available to buy, there are typically between 10 and 30 other people looking at it. That means homebuyers are in for some tough competition. So how do you compete in this market?

A good tactic is to use an escalation clause. An escalation clause is a section of your contract that states you will pay a certain amount above any other offer but not more than a limit that you set for yourself. For example, you might offer $200,000 for a home, but if another offer comes in, your escalation clause might raise your offer to $210,000 or up to your cap amount (let’s say $212,000). Keep in mind that some states don’t allow for escalation clauses in contracts, so be sure to check with your agent.

The good news is that with this tool, you have an opportunity to stay in the game—hopefully all the way to the end, where you end up winning the bidding war.

Escalation clauses are a great tool, but they do bear some consideration.

The bad news is that with escalation clauses, all your cards are on the table. In the earlier example, you said that you were willing to go up to $210,000, so the seller may raise the price to $210,000 or higher. Another issue is when an appraiser comes along and states that the house is worth less than the offer price. If you agreed to pay $210,000 and the seller accepted your offer but the home doesn’t appraise to that amount, then you’ll need to find a way to make up the difference. Many buyers are removing their appraisal contingencies, but even if you left it in your contract, you’d still have to make up the difference. You might end up having to renegotiate and your contract could potentially fall apart due to the appraisal.

As a final piece of advice, think about the state of the market now and compare it to what you want. For example, if you bought a house now and then got transferred for your job in five years, would the market be as high then, and would you get a good price for it? It’s hard to say, but consider whether you’re escalating your offer because you’re thinking ahead or if it’s just a tool to help you get what you want in the moment. Escalation clauses are a great tool, but they do bear some consideration.

If you have any questions about escalation clauses and how they work or you’d like more information about what it takes to compete as a buyer in this market, feel free to reach out to me. I’d be happy to put you in touch with one of our buyer specialists to talk to you in more detail. Hope to hear from you soon!

6 Things to Ponder Before Buying Land

Before buying land, make sure you run through this list.

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Have you ever thought about buying that beautiful piece of land and building your forever home on it? Before you do, there are some things you need to know:

1. Buying land is a long-term investment. Whether you’re buying it for residential or commercial development, you want to do your research on the land and the area around it.

2. Pay for land with cash if possible. This ensures your mortgage is only applied to the cost of the property itself. There are ways to buy the land and the mortgage and roll them into one loan.

3. Ask about septic tanks and/or sewer access. This is so important, particularly if you’re developing a commercial property.

You should be aware of everything before buying.

4. Check for restrictions and zoning issues. Even the smallest piece of property can have its own restrictions and zoning issues. If you're looking to build a particular style of home but it’s not allowed in your zone, that could be a problem.

5. Look for easements on the property. Is there another driveway coming through or something in the soil that needs to be addressed? You should be aware of everything before buying.

6. Ask about water issues. If access to water is important, you’ll want to know if it’s going to be a problem. Is your property outside the floodplain?

These are just a few of the things you need to think about when purchasing land. If you have any questions for us, don’t hesitate to reach out via phone or email. We look forward to hearing from you soon.

Navigating Home Inspection Repairs

So you’ve had a home inspection done—what do you need to repair?

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If you or a potential buyer has had a home inspection done on your property, what repairs are you obligated to make? Well, none of them are mandatory. However, you do need to consider three key things:

1. What is written in your purchase and sale agreement? If your agent wrote (with your permission) that you’d spend up to $500 on any repairs that were found in the inspection, then that’s how much you’d be expected to spend. If you wrote that you’re selling the house as is, then that’s the way it will go.
2. What are the lender requirements? If your buyer is doing an FHA, VA, or another government-backed loan, they can get a little picky about repairs and may require them to be done in order to give the buyer the loan.
3. What do local laws say? It could be that you’ve been using the property for something other than what it has been zoned for; in that case, local laws may require you to make certain changes to the property.

As you can see, when selling your home, it pays to have a strong listing agent to represent you. That’s something that the Charlotte Mabry Team excels at, so if you’re thinking of selling, don’t hesitate to reach out to us. We’d be happy to help you from the start to the finish.

Are You Thinking About a Career in Real Estate?

If you bear these 10 traits, a career in real estate could serve you well.

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So you’re interested in learning more about what it’s like to work in the world of real estate (or at the very least, you were curious enough about the industry to check out this blog). Well, there’s a lot of information to digest, but let’s start with an important question: What does it take to be a good agent? Are you cut out for it? Here are the top 10 traits that describe every successful agent:

1. Problem-solver. There are a ton of moving parts in every single real estate transaction and plenty of room for things to go wrong; are you ready to roll up your sleeves and find solutions on the fly?

2. Self-motivated. Do you have an entrepreneurial spirit?

3. Honesty and integrity. These are increasingly difficult traits to find, but they’re essential to achieving true professionalism and serving the needs of others.

4. Willing to hustle. When the going gets tough, tough agents get going.

5. A general interest in homes. You don’t have to be a specialist, though. No one will expect you to have an advanced-level knowledge of architecture or interior design, but you should be someone who enjoys looking at different homes.

In this business, the more detailed you are, the better off you’ll be.

6. Engaging personality. Since we’re doing everything via video these days, are you someone who would feel comfortable reaching out and grabbing people’s attention? Do people often tell you that you have a confident yet welcoming demeanor?

7. Attention to detail. Salespeople aren’t generally known for having a meticulous, detail-oriented nature, but here’s the truth: In this business, the more detailed you are, the better off you’ll be.

8. Knowledgeable about the local market. You need to be able to look at the data, draw the proper conclusions, and then help clients make sense of it all through casual, jargon-free conversations.

9. Natural networker. Building a network of people who know, like, and trust you isn’t just important in the real estate business—it is the real estate business.

10. Well-informed. Do you have an appetite for the latest reports and news articles about the real estate market (local, regional, and national) and the economy at large? You’ll need one; staying up to date is how we agents further position ourselves as experts.

I hope you found this brief list to be a helpful starting point; there is much more to be said about each of these 10 traits, and there are certainly more traits that will serve you well in the real estate world. If reading this has made you feel excited or even convinced about a career in real estate, I’d love to talk to you. Just give my team or me a call, or send an email. I look forward to speaking with you and sharing what I’ve learned in my 34 years in real estate!

How Has COVID Changed Things for Buyers and Sellers?

Here are six of the key ways that COVID has changed real estate.

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If you’re thinking about buying a home or selling your current one, you should know about some of the changes that have happened because of COVID. Here are the most important ones to know:

1. Buyers are in a hurry. On average, buyers look at just four houses before making a decision. In the past, that average was closer to nine or 10 homes. The reason buyers are in more of a hurry now is that supply is so limited. You don’t have the luxury of being as picky in this market as you have been in the past because if you don’t make a decision quickly, you’ll lose out.

2. Home wishlists have changed. Number one on the list is privacy. Everyone wants a home office now, too. Yard space is another big thing that today’s buyers are looking for.

If you don’t make a decision quickly in this market, you’ll lose out.

3. Buyers are less concerned about commuting. With so many people working from home these days, their commute to work is nonexistent. Those homes that are selling in some of the outlying areas of Chattanooga have an opportunity to be in front of more buyers.

4. Multi-generational households are on the rise.

5. Pets. We’re seeing people make decisions with their pets in mind, such as buying a home with a fenced yard.

6. Housing tenure is going to change. We always talk about the “seven-year itch” because the average homeowner buys a new home every seven years, but we’ve seen people staying closer to an average of 10 years. Due to COVID, I expect to see this reverse and we’ll begin to see people move quicker.

It will be very interesting to see how all these things develop. If you are thinking of buying or selling or just have any real estate questions in general, don’t hesitate to reach out via phone or email. I look forward to hearing from you.

Things to Consider If You’re Looking to Downsize

Sometimes, your big dream could be a smaller space; here’s how to prepare.

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If you’re considering downsizing, what sort of things should you be factoring into your decision? For starters, think about your furnishings. I have a great big room in my home that I accented with a huge sofa, and I love how it looks. However, I know that if I were to ever downsize, I’d have to figure out what to do with that sofa—it likely wouldn’t fit (or look good) in my new home. Take an honest look at all your furnishings and decide what could (and could not) practically make the journey with you into a smaller home.

Here’s another tip: New construction homes can be a worthwhile sector to explore if you’re downsizing. Even though their floor plans will be much smaller than your current home, a lot more thought goes into optimizing space in today’s new builds. They also have surprisingly accommodating storage capacity, which is perfect since the move to a smaller arrangement often reveals a cumbersome amount of belongings that suddenly need to be dealt with.

Most people didn’t feel completely comfortable with their decision until after they had some time to truly settle in—that’s natural!

Hopefully, bills will be less expensive in your new home, so make sure you really think about where those savings should go. One potential downside of a smaller home is that your ability to entertain guests is diminished, as you no longer have that 20-foot-long dining room table or sprawling backyard. Again, just make sure you’re considering all of the ways that your lifestyle will be impacted.

I happen to know a lot of folks who made the change from a roughly 5,000-square-foot house to something like a 2,000-square-footer; they loved it, but it did take them some time to adjust. Most of them didn’t feel completely comfortable with their decision until after they had some time to truly settle in—that’s natural!

If you’re thinking about selling right now, we have tons of buyers looking for homes of every size, and that includes yours. If you’d like us to test the waters for you, just send me an email or give me a call! We can offer some numbers on your home, gauge how many buyers are in the market for property just like it, and go from there. I look forward to the opportunity of speaking with you soon!

Q: What Are Some Ways I Can Protect My Home?

Here’s how to keep your property well-monitored so you can sleep easy.

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There are four great tech tools you can employ to make your home safer:

1. Home security system. In this day and age, there are so many options available. There are portable devices available on the market, as well as systems that get fully wired into your home. Perhaps most convenient are the systems you can manage through apps on your smartphone. Since there are so many different options to choose from, consumers can find a decent security system for a relatively low cost.

2. Smart locks. Gone are the days you needed to have a physical key in your hand at all times. Now, you can set complex number and letter combination codes to unlock your door. If you’re at work but forgot to unlock the door for a scheduled appointment with an exterminator, for example, you can unlock your door remotely via your phone, and lock back up when the job’s done.

3. Smart lighting. Maybe it’s a late night at the office, and you don’t necessarily want to advertise that you’re still not home yet; you can once again use your phone to turn on all or some of the lights in your home. It adds a level of security, but also convenience—no one likes fumbling around for keys or light switches in the dark.

4. Security cameras. Whether it’s a Ring doorbell so you can know who’s knocking no matter where you are, cameras around the perimeter of your house, or anything else that can help you record activity on your property, investing in security cameras is such a fantastic thing to do.

If you have questions about these security measures or anything else concerning real estate, please call or email us. We would love to speak with you.

The Top Home Improvement Projects for ROI

The four best home improvement projects to save money when selling.

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When you’re updating your home, your money will be better spent on certain projects over others. So what are the best updates to do if you’re trying to avoid overspending? Here are my suggestions:

1. Adding a stone veneer to the exterior of your home. This can change the look of your house in a way that is attractive. By doing this, you could get a 96% return on your investment. That means if you spent $10,000 on this update, you could add $9,600 to the overall value of your home.

2. Garage doors. If you spend the money to replace your garage door, you’ll typically get around a 95% return.

3. Minor kitchen improvements. This could include small projects like painting cabinets or changing countertops—doing so will get you around a 77% return.

4. Replacing your siding/windows or adding/replacing the deck. This project could bring you a 75% return.

Look at some of the other houses in your neighborhood to see what they’ve improved.

When you’re making upgrades to your home, I recommend doing these types of maintenance projects first before you spend money on strictly cosmetic items. The home improvement projects that will bring you the lowest returns are typically over-expenditures on bathrooms and kitchens, where you’ve spent your money outside the market.

If you’re going to remodel, look at some of the other houses in your neighborhood to see what they’ve done. If everyone else has a $100,000 kitchen in their home, you probably need one too. Of course, reach out to a real estate professional for their expert advice about what projects would most benefit the value of your home so that you don’t overpay.

If you have any further questions about which home improvement projects are the best or how to increase the value of your home, don’t hesitate to reach out to us. We’d love to hear from you.