Habloft
We buy and sell houses in any condition.
Investors get on our buyer's list. to obtain access to on and off market listings.
MY BLOGS
Buying Wholesale Deals
Wholesale real estate deals can be a lucrative investment opportunity for real estate investors. In this blog, we will explore what a wholesale real estate deal means and how it can benefit investors.A wholesale real estate deal refers to a transaction where an investor purchases a property at a significantly discounted price and then sells it to another buyer, usually an end-user or another investor, for a profit. The key to a successful wholesale deal lies in finding distressed properties or motivated sellers who are willing to sell their properties below market value.Investing in wholesale deals can be highly advantageous for investors. Firstly, it provides an opportunity to acquire properties at a lower cost, allowing for greater profit margins. By purchasing properties below market value, investors can secure instant equity in the property, which can be leveraged for future investments or used to increase their overall net worth.Moreover, wholesale deals can be an excellent option for those who are looking for quick and hassle-free transactions. As wholesalers typically aim to move properties quickly, investors can benefit from a streamlined process, avoiding lengthy negotiations or waiting periods. This speed is especially beneficial for investors who are looking to generate cash flow or flip properties for a quick profit.Another advantage of investing in wholesale deals is the flexibility it provides. Investors can choose to either hold onto the property for long-term gains or sell it immediately for a quick profit. This adaptability allows investors to tailor their strategies based on their individual goals and market conditions.To find wholesale deals, investors often rely on their network of real estate professionals, attend local networking events, or utilize online platforms and auction websites. Building relationships with real estate agents, wholesalers, and other investors can provide access to off-market deals and increase the chances of finding lucrative opportunities.However, it's important for investors to conduct thorough due diligence before investing in wholesale deals. This includes evaluating the property's condition, researching market trends, and assessing potential repair costs. Additionally, investors should have a solid understanding of the local real estate market and be aware of any legal obligations or regulations governing wholesale transactions.In conclusion, wholesale real estate deals offer investors an opportunity to purchase properties at discounted prices and sell them for a profit. This strategy allows for increased profit margins, quicker transactions, and flexibility in investment strategies. By diligently researching and networking within the real estate industry, investors can identify and capitalize on wholesale opportunities to build wealth and achieve their financial goals.
Newly Built Homes Could Be a Game Changer This Spring
Buying a home this spring? You’re probably navigating today’s affordability challenges and dealing with the limited number of homes for sale. But, what if there was a solution that could help with both?If you’re having a hard time finding a home you love, and mortgage rates are putting pressure on your budget, it may be time to look at newly built homes. Here’s why.New Home Construction Is an Inventory Bright SpotWhen looking for a home, you can choose between existing homes (those that are already built and previously owned) and newly constructed ones. While the number of existing homes for sale has increased this year, there are still fewer available than there were in more typical years in the housing market, like back in 2018 or 2019.So, if you’re looking to expand your pool of options even more, turning to newly built homes can help. As Danielle Hale, Chief Economist at Realtor.com, explains:“The shortage of existing homes For Sale has opened up the possibility of new-home construction to more buyers who may not have once considered it.”And the good news is, there are more newly built homes to pick from right now. The graphs below use data from the Census to show how new home construction is ramping up in two key areas (see most recent spike in green): Starts, or homes where builders just broke ground, have seen a big increase lately. And completions, homes that builders just finished, are also up significantly. So, if you want a new, move-in ready home or you want to get in early and customize your build along the way, you have more options right now.Builders Are Offering Incentives To Help with AffordabilityAnd to sweeten the pot, builders are offering things like mortgage rate buy-downs and other perks for homebuyers right now. This can help offset today’s affordability challenges while also getting you into your dream home. Mark Fleming, Chief Economist at First American, explains why you may find builders have more wiggle room to offer more for you than the typical homeowner:“Builders aren't rate locked-in. They would love to sell you the home because they're not living in it. It costs money not to sell the home. And many of the public home builders have said in their earnings calls that they are not going to be pulling back on incentives, especially the mortgage rate buydown, so that will help the new-home market continue to perform well in the spring home-buying season.”An article from HousingWire also says this about what builders are offering right now: ". . . the use of sales incentives still shows some momentum as 60% of respondents reported using them, up from 58% in February. "Just remember, buying from a builder is different from buying from a home seller, so it’s important to partner with a local real estate agent. Builder contracts can be complex. A trusted agent will be your advocate throughout the process.They’ll be your go-to resource for advice on construction quality and builder reputation, reviewing and negotiating contracts to get you the best deal, helping you decide on which customizations and upgrades are most worthwhile, and a whole lot more.Bottom LineIf you’re struggling to find a home to buy, or with today’s affordability challenges, connect with a local real estate agent to see if newly built homes could be the solution you’re looking for.
Why Overpricing Your House Can Cost You
If you’re trying to sell your house, you may be looking at this spring season as the sweet spot – and you’re not wrong. We’re still in a seller’s market because there are so few homes for sale right now. And historically, this is the time of year when more buyers move, and competition ticks up. That makes this an exciting time to put up that for sale sign.But while conditions are great for sellers like you, you’ll still want to be strategic when it comes time to set your asking price. That’s because pricing your house too high may actually cost you in the long run.The Downside of Overpricing Your HouseThe asking price for your house sends a message to potential buyers. From the moment they see your listing, the price and the photos are what’s going to make the biggest first impression. And, if it’s priced too high, you may turn people away. As an article from U.S. News Real Estate says:“Even in a hot market where there are more buyers than houses available for sale, buyers aren't going to pay attention to a home with an inflated asking price.”That’s because no homebuyer wants to pay more than they have to, especially not today. Many are already feeling the pinch on their budget due to ongoing home price appreciation and today’s mortgage rates. And if they think your house is overpriced, they may write it off without even stepping foot in the front door, or simply won’t make an offer if they think it’s priced too high.If that happens, it’s going to take longer to sell. And ideally you don’t want to have to think about doing a price drop to try to re-ignite interest in your house. Why? Some buyers will see the price cut as a red flag and wonder why the price was reduced, or they’ll think something is wrong with the house the longer it sits. As an article from Forbes explains:“It’s not only the price of an overpriced home that turns buyers off. There’s also another negative component that kicks in. . . . if your listing just sits there and accumulates days on the market, it will not be a good look. . . . buyers won’t necessarily ask anyone what’s wrong with the home. They’ll just assume that something is indeed wrong, and will skip over the property and view more recent listings.”Your Agent’s Role in Setting the Right PriceInstead, pricing it at or just below current market value from the start is a much better strategy. So how do you find that ideal asking price? You lean on the pros. Only an agent has the expertise needed to research and figure out the current market value for your home.They’ll factor in the condition of your house, any upgrades you’ve made, and what other houses like yours are selling for in your area. And they’ll use all of that information to find that target number. The right price will bring in more buyers and make it more likely you’ll see multiple offers too. Plus, when homes are priced right, they still tend to sell quickly.Bottom LineEven though you want to bring in top dollar when you sell, setting the asking price too high may deter buyers and slow down the sales process.Connect with a local real estate agent to find the right price for your house, so we can maximize your profit and still draw in eager buyers willing to make competitive offers.