Tag: Real Estate

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Choosing a Real Estate Developer: What to Consider Before Your Next Investment

When you’re looking into starting a residential or commercial property construction or renovation project, having a highly qualified real estate developer at your side is important. Real estate developers handle real estate projects, whether it’s developing land for commercial use or renovating houses that are in poor condition. Hiring a real estate developer means you’ll have an experienced professional there to oversee your project from start to finish and take care of any issues that might occur. The following tips can help you choose the right real estate developer for your project.

Research Different Real Estate Developers

You can begin your search for a real estate developer by visiting their website to get more information, such as how long they’ve been in business and what kinds of real estate projects they’ve competed. This helps you find a developer who fits your needs, but you’ll still have to make sure they are reputable before hiring them. While you’re on their website, you should also check reviews and look through a portfolio of their past work. Since their own website will most likely only have positive reviews and accolades, you should check other sites for reviews to get a better idea of the service quality they offer.

Look for Developers With the Right Expertise

Depending on your project, you should look for a real estate developer who has the right expertise. For example, you should choose a developer who specializes in commercial real estate for your commercial construction project rather than one who specializes in residential real estate. If you’re planning new market projects, you’ll want to find a developer with this kind of expertise rather than one who focuses on historic development. Hiring a real estate developer with the expertise you need helps ensure your project’s success.

Check the Developer’s Financial Stability

The real estate developer you hire should have enough funding for your project, which helps reduce the risk of delays. Having plenty of funding also lowers the risk of having a developer substitute lower quality materials in order to save on costs. Checking business reports or finding out the developer’s success rate on projects can help you understand their financial situation better. You should look for a real estate developer with a solid history of completing projects successfully and selling them without any difficulties.

Get in Touch With Past Clients

When you meet with real estate developers, ask for a list of references that you can contact. These references should be clients that the developer has worked with, preferably in recent years rather than several years ago. Get in touch with these clients to find out how the real estate developer handled their project. You’ll want to know how satisfied the clients were with the project and whether the developer was able to complete it in the estimated timeframe. You should also find out about any issues that came up with the developer and how these were handled. You can ask about the actual cost of the project compared to the estimated cost as well. These conversations can help you determine which real estate developer offers the best customer service and workmanship.

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How to negotiate house price: A seller’s guide

two people with paperwork

The home selling process can involve varied house prices, which makes it crucial to learn how to negotiate those
prices. As a seller, you want to get the best deal possible, even if not in a seller’s market. If a buyer offers
less than the original asking price, it’s time for negotiation strategy.

Working with a real estate agent, here are some tips for negotiating a selling price:

Always use market value as your starting point

The market value of your home is the actual amount a buyer is willing to pay in context of the current market. In a
buyer’s market, a seller may need offers below the present cost of the property in order for a house to sell. If the
price is too much higher than market value, offers may be too low to be accepted.

Keep your list of upgrades handy

Buyers often raise concerns about features or details of a property in an attempt to negotiate lower prices.
Therefore, it’s important to counter with the positives to their negatives. One great idea is to emphasize any
upgrades or improvements to the home that might outweigh a buyer’s misgivings.

Know the housing market

Knowing the market value of your home is just one piece of the puzzle. Understanding the trends of the overall real
estate market in the area you’re trying to sell in is essential. 

Real estate agents can help you choose the best price with comparative marketing analysis, or CMA. This type of
report gathers data on market behavior regarding asking price, purchase price and the likelihood of multiple offers.

Negotiate from a win/win perspective

Negotiating isn’t necessarily win or lose. If you approach your price negotiation from the perspective that everyone
can win, you’re likely to be more successful. Addressing buyers’ concerns and interests with a collaborative,
positive outlook can win you a higher home price, even if the initial offer is lacking.

inforgaphic about negotiating home price

Negotiation can seem intimidating, but real estate professionals are there to help you. Using these guidelines, you
can ensure you get the highest possible amount for your home sale, no matter what offers you receive.

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A Beginner’s Guide to Fair Market Value

Fair market value is an important real estate metric for investors, buyers and sellers. It can help you determine the best possible asking price for a home sale or whether a home you want to buy is a good deal. However, unlike many other pieces of the real estate puzzle, fair market value can be complicated to find. Here are the basics of fair market value to help you get a better understanding of this important term.

What Is Fair Market Value?

The fair market value of any property equals the price that a buyer would pay in the current market climate. It’s an estimate based on multiple fluctuating factors. Rather than the intrinsic value of the property in any market, the fair market value can be affected by economic trends, such as supply and demand. Therefore, the fair market value of the same property might be different in two different places or at two different times.

How Is Fair Market Value Calculated?

You can find the fair market value of a property in several ways:

  • Buyer & Seller Agreement – As long as both the buyer and seller are knowledgeable about the current real estate market, they can agree on a fair market value for the property themselves. Both would require knowledge about local trends and details about the property itself to decide on a fair value.

  • Comparative Market Analysis – The buyer and seller can work with a real estate agent to get a comparative market analysis. By evaluating comparative properties nearby, real estate agents can help calculate the fair market value.

  • Appraisal – While appraisals won’t tell you everything about trends or market behavior, an appraiser can help you determine fair market value by providing an extensive report on the property itself. Most mortgage lenders require having an appraisal done regardless, so you can use this knowledge to your advantage.

  • Relative Price Per Square Foot – Another approach to calculating fair market value is to figure out the approximate price per square foot of your property. You can do this by comparing it to other similar properties. Once you have the dollar amount per square foot, multiply it by the number of total square feet to find an estimate of fair market value.

Real estate transactions have many metrics and variables. While it’s tricky to determine, fair market value is crucial in making sure you get the best possible price for your property.