Research has indicated that kitchen or bathroom remodels give the greatest return, along with family rooms and master bedrooms, however for maximum increase in value, the homes should be sold within one year of the remodel being completed.

Adding a feeling of spaciousness and making your home feel new and refreshed is the key to securing a quick sale and recouping the value. Experts agree that in many cases, a simple case of adding more space will achieve a greater value. Of course spending money on general maintenance jobs will not increase the value of the property but it will potentially increase curb appeal. You must also bear in mind that the longer the period of time between the remodel and when you sell your home, the less value will be added.

Surprisingly adding an addition to your home is not the most efficient way to add value. Due to the expense involved, you would probably expect to recoup approximately eighty percent of the remodel cost back as valued added. Kitchen remodels are by far the most common way to add value. The kitchen is probably the most frequently used room of the house by all family members, so it has great buyer appeal when it is freshly remodeled.

It is important to balance remodeling part of your home with ensuring its curb appeal has been maximized. Your home’s exterior should create enough of a wow factor on your potential buyers to invite them in to appreciate your newly remodeled bathroom or kitchen. It is also important to take your existing neighborhood into consideration before remodeling. A two story addition could potentially yield less value, if yours is the only one on the block. Likewise, adding an updated kitchen when all your neighbors have also remodeled will simply bring you back up to the neighborhood standard unless you can accomplish something extra special.

The main consideration is to have quality work done on your remodel, don’t be tempted to try and cut corners, as the cheapest estimate is not always the best option. Obtain referrals from family and friends and be sure to use specialist or licensed contractors. A well planned and executed remodel will help you sell your home more quickly and for a far better price than comparable homes, so it is usually well worth the inconvenience and will have you well on the way to living in your new home.

• Highlight The Space

This is by far the best strategy possible to showcase your home to its best potential. Allowing viewers to see how open and spacious your home is, can really add interest. To make the best use of space, clear out any excess furniture which may be making the rooms appear cluttered. Although you may need several couches to seat the whole family when they arrive for a holiday visit, you won’t need them for everyday use. Pack up any excess belongings, furniture or seasonal clothes for storage. Don’t be tempted to cram them into your basement or garage as potential buyers will need to view these areas, so ask family and friends for assistance with storage space, or consider temporarily using a storage unit.

• Define Each Room

We are all guilty of having a multipurpose to some rooms of the house, but to showcase successfully, each room needs a clear single purpose. Bedrooms should carry a relaxing, inviting atmosphere, so a treadmill or piece of gym equipment in the corner of the room will be a distraction. Bathrooms should feel like you would see in a nice hotel, sparkling clean, bright and with all personal toiletries hidden away.

• Avoid Making Rooms Sterile

A common mistake many people make when staging their home is to make their homes too sterile and bland. Although you want to neutralize the home, you want it to also be warm and welcoming. Consider refreshing your paintwork with a neutral color palate but use ornamental touches and soft furnishings for accents of color. To make each room bright and airy, fully open all blinds and drapes for maximum natural light. The use of mirrors can be fantastic to reflect natural light and make the room feel spacious.

• Avoid Sense of Smell Overload

Although you want to eliminate any pet odors or smells of cooking, many people try too hard to create a welcoming scent. We have all tried baking cookies or brewing coffee but sometimes this can make a potential buyer worry you are trying to hide something. Scents should be used sparingly and should complement the features of your home. If your home has plenty of natural wood features a touch of pine scent achieve a lovely atmosphere, but it would seem out of place in a contemporary home with glass and metals. You should also tailor the scent to the season, so avoid winter spicy smells in spring. Overloading or selecting the wrong scent can have a distracting effect on your potential buyer, so if in doubt ensure your home is cleaned thoroughly and ask an honest opinion from a family member or friend.

• Update your listing

Most important of all, especially if your home has been listed for a while, when you have gone to the trouble of staging your home, make sure you take new photographs and update your listing with your real estate agent.

Home staging can be very effective in helping you sell your home quickly and for the best price. Following these few little tips and tricks will see you well on the way to welcoming new potential buyers.

The pier referred to by local residents as St Pete’s Pier, is considered to be the one of the major landmarks of the area. It has stood since 1889 and has continued to be developed ever since. The pier is home to a number of businesses and hosts a great deal of the local community events such as music festivals, demonstrations and fairs. However in 2004 it was determined that substantial structural work was needed. This gave the local council an opportunity to simply renovate the existing pier or take the radical step of demolishing the old pier and constructing a completely new feature.

While campaigners argue the pros and cons of demolition and try to delay action, the closure date of the pier is still set for the end of May 2013. Should this go ahead, there are many businesses which would have to relocate from the pier and find alternative commercial premises.

Regardless of the outcome of this debate, this presents potential investors with a great opportunity in the area. Whether the pier is completely renovated or demolished and a new design reconstructed, the council is investing a significant amount of money to regenerate the pier area which will give the neighborhood a new lease of life.

This has given many potential real estate investors pause to investigate the area fully. The investment in the pier will give many surrounding neighborhoods rejuvenation and boost the residential and commercial property values significantly on completion. However many amateur investors are hesitant to commit while the debate rages. This could be a costly error as once plans are given the definitive go ahead and demolition of the pier is complete, the area will be under great investment scrutiny and many will jump on the bandwagon.

While the closure date is still set for the end of May, many campaigners are voicing concerns and councilors are proposing delaying the closure date until the matter can be resolved. Should the pier be demolished, the estimated date of completion for the new pier built to “The Lens” architectural designs approved by the council would be sometime in 2015. For anyone serious about investing in the real estate market of St Pete, it is certainly worth looking at the surrounding neighborhoods and making some decisions before this debate is resolved.

Baseboards- This is one area of the floor which is usually missed, but it doesn’t need to be recoated in paint to be given a bright finish. Make sure you wait to clean your baseboards until after your floors are done or bits of debris or dust may be transferred to your newly cleaned baseboards. Your vacuum cleaners brush attachment can be very useful to remove any surface dust, and then an all-purpose spray detergent or cleaner will bring them to a lovely shine.

Walls- Although many people are tempted to freshen up their walls with a fresh coat of paint or new wall coverings, this is not always necessary. Walls can be given a fresh appearance with a simple clean. You may get into the corners for cobwebs during your usual cleaning routine, but you could try using your vacuum cleaners brush attachment to fully dust the walls. Once any surface dust is removed, wipe the walls down with a cloth soaked in an all-purpose cleaner or detergent. Make sure you wring out any excess liquid and don’t be tempted to use a spray cleaner directly on the walls as you could end up with streaks.

Ceiling fans and lighting-It is amazing how freshly cleaned light fittings will immediately make your home feel lighter and brighter. Dust off any debris with your vacuum cleaner attachments and freshen up with all-purpose cleaner. For ceiling fans, there is no need to dismantle them for a good spring clean. Use an old pillowcase to get a great finish by spraying a cleaning solution on the inside, placing it over each blade then wiping the full length of both sides.

Windows- Now is a great time to give the frames, glass and screens a good clean. There are many glass cleaning products available, but a simple mix of one part vinegar and one part dish detergent diluted with water will produce a great streak free finish. You can just use it with a microfiber cloth and dry with some kitchen paper.

Window screens can sometimes be a bit of a chore, but the best way to fully remove all the screens and wash them outside in your yard with a garden hose, a soft brush and a bit of all-purpose cleaner. Make sure you label all the screens and fittings as you remove the screens which will make rehanging them much easier. Be careful when cleaning the actual screen and use your brush gently. You can also take this opportunity to repair any winter damage to the screens before you rehang them.

Outside- Now you’re fully in the spring cleaning frame of mind, why not clean your driveway and siding. If you have a power washer you can quickly refresh the outside of your home, just be careful not to damage the paintwork of your siding, if your power washer is very intense. If in doubt you could simply use a long handled softer brush with warm and soapy water.

Even if you are not thinking of listing your home, a good spring clean will have your home feeling fresh and it means you can fully enjoy it for the rest of the year.

Common Desires

There are some basic things that homebuyers are looking for when they look at a home. Some of the most common are centralized air conditioning, a walk in closet in the master bedroom, a bedroom on the main floor if the home is two or more stories, a patio for entertainment, as well as an oversized garage that will fit multiple cars as well as provide some storage space.

Even these common desires are not straightforward. An air conditioning unit that is 25 years old cannot provide centralized air; most buyers want an efficient central air conditioning unit. A patio needs to truly be an outdoor living space that has had some thought and planning associated with it. And the bedroom on the main floor needs to be big enough for either a master bedroom or a good-sized guest room for either guests or even an aging relative that needs care.

Rooms that Get Noticed

One room that is important to buyers in today’s market is the living room. Most buyers are giving up the formal living room and family room split and simply want one, big open floor plan that will allow them to entertain company as well as lounge around and watch movies on a Saturday afternoon. Informal spaces such as this are in because they are more functional.

Another room that will get noticed is the bathroom. Not only do buyers want more than one bathroom, they want them to come fully loaded! Luxury items such as soaking tubs, garden tubs, pricey fixtures, and quality tiling always go over well in the bathroom. Pedestal sinks, claw foot tubs, and a separate shower and tub are also very popular in the bathroom right now and are what most buyers are going for.

The kitchen is also another room that will get more than a once over when a buyer comes in. Stainless steel appliances, high quality wood cabinets, marble or granite counters, kitchen islands, and quality flooring will all go a long way toward selling a home. Buyers see the kitchen as an entertainment area, so if things are in order and are updated a home will likely sell much sooner than if it is not. If the dining area also blends well with the kitchen, this is even better!

The Homes Target Audience

Age really does affect what a home buyer wants in a home. Most realtors will report that those that are less than age 44 usually want a home that is in the suburbs or a subdivision. The home will sell well if it is located near schools, parks, and playgrounds. For buyers over age 45, homes that are one story, less than 10 years old, and on a flat lot with items such as sprinkler systems will appeal to them. Location really is important to home buyers as homes in certain areas may contain features that are important to some buyers but not so important to others.

First time home buyers are also likely to overlook items like pricey fixtures, walk in closets, granite counters, or oversized garages. Typically it is the first time buy that will have a shorter list of must haves, because they are just getting into the market and may be on a stricter budget or just not have a whole lot of experience with offered features. Repeat home buyers will be more likely to have a list of must haves, so a home that is well finished and has all of the items described above will likely appeal to a repeat home buyer.

The type of upgrades one has made to their home or is willing to make to their home will decide who the home will generally appeal to. Of course, home buyers all have their own preferences about what makes a home worth buying, but studies have been done and the general consensus is that older home buyers have a longer list of must haves and items in a home that are very important to them, such as a bedroom on the main floor.

As you can see, homebuyer’s want a little of everything, and the specific needs and wants vary widely from buyer to buyer. Generally, a home that is well cared for and offers some modern or updated features will attract many home buyers and if located in the right area, will sell relatively quickly.

Why Photographs for Your Listing Are Important

One of the most important things that will set your property out from others is photographs. When a buyer is looking in MLS, on the internet or in some other location, photographs draw their attention. Is this shallow? Well, yes and no.

Unless you are talking to a lawyer or psychiatrist, words are cheap. Indeed, the real estate world has its own lexicon of terms that don’t really mean what they say and are the basis for some snide remarks. For instance, a “cozy” home is a real estate methodology for saying a property is SMALL! The question, of course, is how small are we talking? This is why photographs are key to your marketing efforts.

In the view of most buyers, the initial proof in the pudding is in photographs. Almost nobody really believes any of the adjectives used in real estate advertisements. Frankly, they words could mean anything. Much like a dating site, however, photographs tend to shed a more objective light on the subject. Unlike a dating site, a property doesn’t tend to dramatically age over five years, change hair color, go bald or gain some unwanted pounds. Put in practical terms, buyers don’t believe your words, but do believe your photographs.

If you give some thought to what I just said, you will realize that I am suggesting that most buyers assume you will lie about your property in advertisements. Don’t take it personally. They don’t know you, so why should they trust you? Frankly, they should not. That being said, you can use this distrust to your advantage.

You would be shocked how many people put little or no effort into the photographs of their property. As an old commercial slogan stated Image is everything. A shallow statement, but true. Your photographs represent the first curb appeal impression buyers will get of your property.

This means you need to strongly consider hiring a professional photographer to take the photographs. They understand lighting, angles and so on. It may sound like an unnecessary expense, but it can be the difference between a sale and sitting on the market for month after month.

Walk-Throughs

What is a walk-through? What is its purpose? Is it important or just a formality? Can it be used to re-negotiate the terms of the contract at the last minute? Let’s look.

Typically the buyer just before settlement conducts a final walk-through. The idea is to be sure the seller is delivering the home to the buyer in the condition they agreed to under the terms of their contract. Therefore it includes checking on anything the contract says about the condition of the property.

One requirement often seen in contracts about the condition of the home at time of settlement and possession by the new owner is that it will be “in substantially the same condition” as on the date of the contract. Another frequent requirement is that it will be “broom clean.” Still another is that all the working parts of the home (such as heating and cooling systems, plumbing, appliances that convey, electrical systems, etc.) be “in normal working order.”

Sometimes contracts and addenda to them require things like new carpeting to be installed, gutters to be cleaned out, and HVAC systems to be “professionally serviced and filters changed.”

Read Your Contract

It’s a good idea for both buyer and seller to review their contract paying attention to what is said about the condition in which the home will be delivered. Those are the things that should get attention at the walk-through.

While walk-throughs are a formality of closing or settlement, they are not something you should take lightly. This is your chance to get any problems straightened out.

Pre foreclosures are properties that are in the final stage before they are taken back by the bank or lender. This means that the owner is still in charge of the property, but if they do not make any attempt to rectify their situation the bank or financier will repossess the home.

There are many benefits in buying pre foreclosures. The reason that most people miss out on these homes is because they do not know what they are, or how to find them.

The number one advantage of pre foreclosures is the lower price associated with such properties. The owner has to sell the house before the bank or lender takes it and is more inclined to listen to any offers that they receive. It is quite possible to find pre foreclosures that are up to 50% off of the market value.

In addition to the bargain that you can get on pre foreclosures, you will also be able to deal directly with the owner. This is an advantage because the buyer is in control during a pre foreclosure deal. If the home owner turns down your offer and fails to find another buyer, they will end up losing everything. If they manage to sell the home they can at least end up making back some money.

Finding pre foreclosures can be done in the same way as locating homes that that bank already owns. You can find them in the newspaper, online, or by calling the lender directly on the phone. It is really up to you, and you can base it on what seems to be most effective.

Compared to foreclosed properties, you would normally face less competition with pre forecloses. This increases the chance of getting a great price.

If you own a property in pre-foreclosure and need to sell immediately. Call GT Property Pros, LLC for a free consultation or visit http://gtpropertypros.com/sell-your-home

A warranty deed is a document which the seller presents to you and is used in majority of all sales transactions. The warranty deed simply states that the seller owns the property being sold and that it is free from any sort of liens. By presenting a warranty deed, the buyer is assured that the holder of the title has the legal right to transfer ownership of the unit and is assured that no one (financial institution or other creditors) would come after him to make a claim on the property. In the eventuality that someone does lays claim to the property that has just been purchased (or that the claims stated in the warranty is erroneous), the buyer is further protected by law, and would be entitled to receive a form of compensation. Warranty deeds seldom stand alone as these documents are usually backed up by a title insurance policy.

A quitclaim deed, on the other hand, is presented to a buyer by someone who does not necessarily own the property being sold, but holds responsibility for it. This occurs due to several reasons such as when the owner dies and bequeaths the property to one of his heirs, or when there is a marriage and the owner wants to include the name of his/her spouse to the title (among others). A quitclaim deed offers a lower level of protection to buyers. This kind of document is used primarily when the property in question will just stay within a family.

Incidentally, there are times when both a warranty deed and a quitclaim deed are presented to a potential buyer. An example is when the property lies on the border of rivers and or lakes; where ownership of the underwater land on which his property stands on remains unclear.

To buy or sell discounted properties, or to purchase fully renovated properties please contact GT Property Pros, LLC for information.

Cap rate has two main components which area: net operating income (NOI) and price or estimated value of the property. NOI is found by subtracting all expenses from the gross income of the property. When the NOI is divided by the price or value of a property, you are left with the cap rate.

You can move the components of cap rate around in order to determine each of the variables in the equation. The different equations used to determine any of the three variables are below:

NOI
Cap rate = ——–
Price

NOI
Price= ———-
Cap Rate

NOI = Value x Cap Rate

As you can see, depending on the information you have regarding the property, you can determine any of the three variables.

That’s great, you say, I can determine these three variables! But how does it affect my commercial real estate endeavors?

To show the main differences between cap rates, I am going to divide investments into three major categories:

Safe investment: Cap rate of 5%
Average investment: Cap rate of 10%
Risky investment: Cap rate of 20%

What the buyer wants out of the property determines what a buyer is looking for.

For example, property being sold at a 5% cap rate is often characterized by low vacancy percentages (less than 5%-10%), beautiful property grounds, good management, up to date amenities, and rents or leases priced at market rate. There is a positive and strong cash flow every month because the property is operating at its full potential.

This property’s value is greater when operating at peak performance, so a higher price is asked by the seller, making the cap rate lower. Those who buy at low cap rates are often looking for retail, already performing property that brings in a steady cash flow every month. A buyer such as this is often part of a REIT, or real estate investment trust, or a professional, such as a doctor or lawyer, who wishes only to deal with good properties and watch the cash flow in.

A property being sold at a 10% cap rate is often characterized by higher vacancies (around 10%-20%), average grounds, an average management team and average amenities. There is definitely some room for improvement with these properties. A buyer who picks up a property like this is looking to make those improvements by increasing rates, renovating and fixing up the property, as well as employing a well operating management team.

The sole purpose of this type of buyer is to create value in the property where it is lacking. It does take some work, and is more risky than the 5% cap rate property, so the asking price is less. Hundreds of thousands of dollars can be created in this difference between an average and good operating property.

A property being sold at a 20% cap rate, or more, is usually considered a very distressed property with vacancies of 20% and more, rundown grounds, old buildings that are falling apart, a poor management team and even a problem owner. Because of the risk, low operating income and problems with the property, a person who is willing to undertake such a property must not be afraid of a little (or much) work and the risk involved in attempting to turn a property of this type around.

However, there are hundreds of thousands, sometimes millions of dollars to be made in these properties! It takes a keen eye and some varied and creative scenarios to determine if the property will perform as you expect it will.

As you can see, the cap rate can be great for one person, and horrible for another, depending on the type of investor the buyer is!

As a seller, the seller wants to sell the property at the lowest cap rate possible because that means it is being offered at the highest price possible. It definitely depends on the condition of the property, operating income, expenses, vacancies and management team to determine what the seller can get for the property. The market will dictate what the right price is for a property.

Cap rates are considered the best way to determine the value of a property. Remember that a bank, or other type of lender, will be looking at the NOI of a property compared to the debt in order to determine if it is a safe investment for the lender. To a lender, the debt coverage is more important than the cap rate. However, if you can get the cap rate higher by getting a lower purchase price, then you can get a smaller loan, and possibly be able to cover the loan with the current NOI. It is a matter of working the numbers to see if a deal is feasible.

When you investigate commercial properties, use the cap rate to determine if the subject property fits your specific criteria. Always create future scenarios and manipulate the property’s income and expense sheets to determine if you can get the money out of the property that you hope to get.

Gold mines can be found in higher cap properties, so check it out and see what you can discover in your own community.