Category Archives: Residential Real Estate

Multi-Family Properties are HOT!

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If you want to become a Landlord, The Following May Be Of Interest.

FACTOID #1:  A full 90% of new multifamily construction today is rentals according to one study.

For the last several years, demand in multifamily has outpaced new construction, causing some places to see huge spikes in rent prices. Still demand has not slowed.

FACTOID #2: Multi-Family prices have been growing by up to 8% year-over-year.

Listed below are some of the most important things that today’s tenants are looking for in a rental.

Location

As with any other type of business, the location of your building can, and likely will, have a large impact on the revenue you bring in. Tenants often look for a property that is close to their place of employment, and that offers easy access to grocery stores, restaurants, parks, and more. Tenants are often willing to pay more, or even overlook less than desirable aspects of the unit, in exchange for the quality of lifestyle offered from being in a great neighborhood.  Millennials are attracted to the convenience of advanced technology. They expect that same kind of convenience in their living environments (grocery store within walking distance, public transportation just a few blocks from the apartment, office or workspace accessible by light rail or bus). The more walkable the location, the more attractive it is to young renters.

School District

With more and more consumers choosing to rent, it stands to reason that more families are choosing to rent rather than own. Along with location, tenants are likely looking at the area’s school district, as well. After all, every parent wants the very best for their child — and a safe, quality education is at the top of many parents’ lists.

Parking

Think about it — no one enjoys driving around for an hour looking for a parking spot that’s close to home. While there may be ample parking spaces for your suburban property, parking can be a bit of a challenge in urban areas. If you can’t offer easy off-street parking for your tenants, consider directing your tenants to a parking garage that’s located nearby.

…but not all tenants have cars.

Multi-Modal Transportation Options for Residents

Parking lots are disappearing to make room for more pedestrian friendly options. Most millennials in urban areas do not own cars. They bike, walk, or ride to work. Some high-end multifamily developers are including bike repair and storage “shops” in their buildings or providing ridesharing pickup and drop-off locations on-site.

Convenient On-Site Package Delivery Systems

More than a quarter of the workforce today does not work from an office. Mailing letters or shipping packages usually requires a trip to a FedEx or post office. One amenity attracting young professionals are on-site package delivery systems where packages are received and signed for in real-time through an alert sent to a tenant’s smartphone. Packages can also be sent out from the apartment with pickups scheduled from the apartment’s online platform.

Activities Space and Luxurious Common Areas

Gyms are not the only community spaces tenants want. New developers will need to think about adding an on-site café, workspaces, and lounge areas. Some unique ideas include community gardens and wine tasting rooms, community theaters or apartment pubs or pool halls.

Renovations and Upgrades

Sometimes, the smallest details are the ones that really make a house feel like a home — and that can secure a lease on your space. Upgrades that are smart and strategic, such as hardwood floors or stainless-steel appliances, can help attract higher quality tenants. Other renovations that rank highly among tenants include renovations in the kitchen and bathrooms, updated cabinet hardware, central air conditioning, and a new kitchen backsplash.

Think of these features you offer your tenants as a way of demonstrating to them how you expect to be treated in return — and the care you expect to be given to your building. Even small steps can indicate to your tenants that you really care about the property and that you will be responsive to any necessary property maintenance — always a big concern for renters. By offering these features that tenants are looking for, you are differentiating your property from the competition — allowing you to attract and retain better tenants and enjoy a better return on your investment.

If you have any questions about any of the above information call or text Joe Luca, REALTOR® at 401-580-9797.

The above information was obtained from various web articles published by NAR, CBRE, and NAI Global.

10 Reasons NOT To Sell Your Own House – FSBO

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  1. Time
    When you decide to FSBO be prepared to sacrifice a lot of time. From staging the property and taking perfect pictures to getting the description and marketing right. You’ll also spend time showing the property, entertaining lookie-loo’s and door-kickers, and talking with agents who won’t take you seriously.
  2. Costs
    When you sell by owner you may think you’re saving money but in reality you’re often spending a lot of money up front with no guarantee of any return. Listing agents spend a calculated amount of money up front to make sure a listing sells and ultimately pays both you and them both fairly.
  3. Saving On Commission
    Choosing to FSBO doesn’t really save you money. On average, homes sold by agents get $230k compared to $180k for FSBO. When you find the right agent they will price your property to get the most money in the shortest time, a combination that can mean 10-30% more net profit. When you are considering saving 1.5-3% on a listing commission you should take that into consideration.
  4. No Money Up Front
    Listing agents do not charge anything upfront to sell your home. If they spend thousands and can’t sell it for the price you want, they are out those thousands, not you! This is perhaps one of the greatest things about using an agent. There is an extremely low risk and cost to doing so!
  5. Perception
    The perception of FSBO sellers is that they are not serious about selling their properties and are often just testing the market or seeing if they can get some far fetched price or perfect buyer that isn’t realistic. They are often not taken seriously in the real estate community because they don’t see the value in representation by an agent or broker.
  6. Marketing
    You might be ready to post your home on Facebook and Craigslist a few times, but you don’t have the ultimate home selling tool – the MLS. The multiple listing service can be accessed by licensed real estate agents, and is the way to get your home listed on sites like Realtor.com, Zillow, and Trulia. A large majority of home buyers begin their search on sites like these, and you want your home to be seen by as many buyers as possible to get the best price. It’s no surprise that homes sold via FSBO have seen a steady decline as online real estate has become the norm.
  7. Liability
    When you sell your home without an agent, any mistakes you make can cost you greatly. Agents have something called E&O (Errors & Omissions) Insurance. This protects them when mistakes are made in contracts. When you sell on your own, others can make sure to exploit every little mistake you make.
  8. Agent Boycott/Sabotage
    When you decide to sell your home yourself you are telling other agents that you don’t understand their value in a multi-billion dollar industry. Agents often see FSBO sellers as easy marks to negotiate against because they have the upper hand. They control the buyer/offer and can negotiate their own commission. They can also pick your property and price apart because they have the expertise to do so. They don’t need to worry about treating you unfairly because the chance of them dealing with you again is slim to none. More often than not they will simply ignore your listing altogether to avoid the hassle.
  9. Pricing Incorrectly
    Pricing your home incorrectly when you list it can be the worst mistake, and can greatly affect days on market and final sales price. Pricing too high will mean fewer people see it, resulting in fewer offers. Price it too low and you’re conveying that something is wrong with the property or that you are desperate to sell. More days on market will also signal to buyers that something is wrong and can ultimately mean less money upon final sale. Learn more about setting the price right here.
  10. Low Ballers
    When you FSBO you attract investors and low-ballers who see your inexperience and ignorance as a prime opportunity. What may seem like a lot to you may be a steal to them. An experienced agent will understand this and negotiate the most money possible for you.

The above was sourced from UpNest.

What is Cash-Flowing Real Estate?

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Cash-flowing, or performing, residential real estate is a property that generates consistent, positive net cash-flow month after month. Typically there is a Lease between a Landlord (property owner) and a Tenant (renter) for a specific period of time, (Term) usually one year. The term is the period of time the Tenant is obligated to pay rent and the Landlord is obligated to retain Tenant if Lease covenants are kept by the Tenant.

(However, if it is a commercial property/tenant (not legally intended to be used as a residence by the tenant) the Lease is frequently for a longer Term.)

Positive cash-flow is what remains from the total rent and other income (laundry, storage etc) received by the Landlord after ALL expenses have been paid. This is the “Shangrila” of Landlording; all expenses have been paid, and there is money left at the end of the month. This positive cash-flow can then be utilized to pay down the mortgage debt, saved up to buy another property, or used to fund a retirement. (Typically a CPA can help with this decision.)

In short, “cash flowing” residential real estate is leased to tenants and the rent more than covers all expenses so there is a “profit”.  Landlords should regularly consult with a reliable and honest Lender to see if they can save money on the largest expense; the mortgage.  John Dolbec at First Home Mortgage  401-266-4413 is highly recommended.

Honest, Ethical, and Dedicated to providing great service to his Clients.

The opposite of positive cash-flow is negative cash-flow; when there is not enough money to cover ALL expenses.  If this is the result of a tenant who is not paying rent you should immediately consult with an eviction attorney and get a better tenant.  Tenant-selection is one of the fundamentals that should not be over-looked.  If you have to hire a mover to entice a tenant to move out sooner do it.  Call Gentry Moving and Storage 401-785-1600 for a stress-free experience. 

Your BEST Choice for moving.

Please note: this is not legal or tax advice and an attorney or tax professional should be consulted for legal and tax questions.  We recommend Resnick and Caffrey Law Firm. 

Reliable, Knowledgeable, and Experienced.

Pets and Home Value

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So you want to buy a new home…but before you can do that you need to sell your current home.  If you have pets there is one important step you should consider taking before you begin showing your home. Ask your REALTOR® if they notice any pet-related odor. Time and time again studies show that when we are continually exposed to certain orders we become desensitized to them and no longer noticed them.  Have you ever visited someone’s home who has cats and you walk in the front door and immediately you said yourself: “oh, I smell cats”.  Chances are that the pet owner doesn’t notice that odor, and yet they have been living with it for years.

If there is a pervasive odor that is noticeable as soon as guests enter the house, what can you do? Deodorizers and scented-candles simply “mask” the source of the odor, they don’t remove and eliminate it.  For me, deodorizers and scented-candles can be a telltale sign that there is something else going on in the house.

One of the first things I do as a Buyer Agent when I walk into a home is to take a deep breath.  What I smell tells me a lot about the house…and its occupants.  If I smell cigarette smoke, mold, or pet odors, it is an immediate “red flag” that I will ring to the attention of my Buyers.  Why? Because it is going to be an added expense to get that smell removed, and it could indicate other deferred maintenance issues lurking within.

Usually, I ask my Buyer: “If there were to be a lingering smell post-closing, would that be an issue?” If the answer is yes they need to consider retaining the services of Green Home Solutions to remove the odor or remove the house from consideration. greenhomesolutions

Green Home Solutions uses a fine spray that is free of harmful chemicals and uses fast-acting enzymes that bind to and neutralize odor molecules. No perfumes or masking agents are ever used.

Conversely, you just moved into a new home and you want to avoid that “Pet Odor”  from enveloping guests as soon as they enter.  You love your pet(s) so getting rid of them is out of the question…what can you do?  The old adage “An ounce of prevention is worth a pound of cure” is very appropriate in this instance.

There are certain things you can do to mitigate the smelly situation.  Whether switching to a premium pet food, or to premium cat litter, you can proactively address the problem.  Premium pet foods and cat litter have the potential to literally save you thousands when you sell your home.  If you are preparing to put your house on the market the above applies to you too.

How can a Premium Pet Food help me when I sell my house?

If you feed your pet a premium pet food, they will not have to eat as much food because they will receive more than enough nutrition from a smaller amount of food.  Additionally, since your pet is eating less food, they will have fewer bowel movements.  That means less pooper-scooping in the yard, less residual waste, or smaller poops in the Litter Box.  If there are fewer “land-mines” in the yard, and less “poop” in the litter box, that means there is less a chance that someone will “step-in-it” and less of a chance that the house will smell from your cat doing its business.

Cat litter can affect the sale of my house???

Most definitely.  As the owner of two indoor cats, I know from first-hand experience.  Over the years I have been in thousands of houses and all too often, you can tell the houses that have cats immediately upon entering.  There is that “ammonia smell” that identifies the house as a “cat house”.  There are some new, specialized premium cat litters that prevent that ammonia stench. The best one I’ve found and use is Lucy Pet’s Cats Incredible Litter, it may cost a bit more but you will notice that there is NO ammonia smell; even if you wait a whole week to change your litter box…I know I tested it and use it in my home. It still “clumps” so it is easy to clean, and it works well with multiple cats.

While neither of these products is the cheapest, they aren’t the most expensive either.  Every time I change the cat litter, I find that the extra upfront cost is well worth it because it is much less unpleasant.  I was impressed that there are companies that make specialized products for pets and in the case of Lucy Pet, I was also impressed to find they make some really great high-end specialized pet food as well. My friends with dogs feeding Lucy Pet dog food find that their pets shed less,  there are fewer, and less-stinky, “land-mines” in the backyard, and their pets just look healthier overall.  The lesson here is that just because you have pets you don’t have to let that interfere with, or potentially decrease the selling price of your home.  … Aside from the fact that as pet lovers we all want to give our pets the very best, there really are benefits not only to their health but to the condition of your home.  Your pets, and your home are worth the small investment.

LucyPetProducts

Why Should I Work With a REALTOR®?

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Not all real estate practitioners (Licensees) are REALTORS®. The term REALTOR® is a registered trademark that identifies a real estate professional who is a member of the NATIONAL ASSOCIATION of REALTORS® and subscribes to its strict Code of Ethics.  REALTORS® are required to do more than comply with the law; REALTORS® must conduct themselves in an ethical, professional manner in all dealings with colleagues and consumers.

Here are several reasons why it pays to work with a REALTOR®.

  1. You’ll have an expert to guide you through the process. Buying or selling a home usually requires disclosure forms, inspection reports, mortgage documents, insurance policies, deeds, and multi-page settlement statements. A knowledgeable expert will help you prepare the best deal, and avoid delays or costly mistakes.
  2. Get objective information and opinions. REALTORS® can provide local community information on utilities, zoning, schools, and more. They’ll also be able to provide objective information about each property. A professional will be able to help you answer these two important questions: Will the property provide the environment I want for a home or investment? Second, will the property have resale value when I am ready to sell?
  3. Find the best property out there. Sometimes the property you are seeking is available but not actively advertised in the market, and it will take some investigation by your REALTOR® to find all available properties.housing
  4. Benefit from their negotiating experience. There are many negotiating factors, including but not limited to price, financing, terms, date of possession, and inclusion or exclusion of repairs, furnishings, or equipment. In addition, the purchase agreement should provide a period of time for you to complete appropriate inspections and investigations of the property before you are bound to complete the purchase. Your agent can advise you as to which investigations and inspections are recommended or required.
  5. Property marketing power. Real estate doesn’t sell due to advertising alone. In fact, a large share of real estate sales comes as the result of a practitioner’s contacts through previous clients, referrals,

    Remax BannerOutstandingAgents

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    friends, and family. When a property is marketed with the help of a REALTOR®, you do not have to allow strangers into your home. Your REALTOR® will generally prescreen and accompany qualified prospects through your property.

  6. Real estate has its own language. If you don’t know a CMA from a PUD, you can understand why it’s important to work with a professional who is immersed in the industry and knows the real estate language.
  7. REALTORS® have done it before. Most people buy and sell only a few homes in a lifetime, usually with quite a few years in between each purchase. And even if you’ve done it before, laws and regulations change. REALTORS®, on the other hand, handle hundreds of real estate transactions over the course of their career. Having an expert on your side is critical.
  8. Buying and selling is an emotional process. A home often symbolizes family, rest, and security — it’s not just four walls and a roof. Because of this, home buying and selling can be an emotional undertaking. And for most people, a home is the biggest purchase they’ll ever make. Having a concerned, but objective, third party helps you stay focused on both the emotional and financial issues most important to you.
  9. Ethical treatment. Every member of the NATIONAL ASSOCIATION of REALTORS® makes a commitment to adhere to a strict Code of Ethics, which is based on professionalism and protection of the public. As a customer of a REALTOR®, you can expect honest and ethical treatment in all transaction-related matters. It is mandatory for REALTORS® to take the Code of Ethics orientation and they are also required to complete a refresher course every four years
  10. Relationships. Real Estate is a relationship-driven business.  Experienced, Full-Time REALTORS® have relationships with licensed, insured, experienced, practitioners in many different parts of the business: Home Inspectors, Moving Companies, Plumbers, Electricians, Painters, Fencing Companies, Attorneys, and more.  You won’t have to worry about finding someone, your REALTOR® can refer them to you!

Success: red graph over coins

Additionally, Full-Time, Experienced REALTORS® understand the market; they work with Buyers so they know what Buyers like and dislike, and they know what “competition” is on the market.  Full-Time, Experienced REALTORS® know Millennials (The Largest Generation of Home-Buyers in history) have different expectations than Gen X’ers and Boomers.  Each group has different needs, wants, values, and ways of communicating during the buying process.

Last, but not least important, is Safety.  Your home, or you, can be seen as an “opportunity” by individuals with bad intentions.  REALTORS®, especially Full-Time, Experienced ones, are trained in how to minimize your exposure to situations which could compromise you and your family’s safety.

So, why should you work with a REALTOR®? If you want to buy or sell a home on YOUR schedule, with minimal stress and surprises, and receive more value from the transaction (buy lower, sell higher) you should hire a Full-Time REALTOR®

Here are a few of our Preferred Partners:

1st Home Mortgage

John Dolbec Team (401) 266-4413

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Don Miller (401) 241-9676

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Matt Resnick 401-439-5240

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Suzanne Caldeira Team 401-228-9565

Bank of england mortgage

Anthony Senerchia Jr (401) 385-3630, Ext. 109

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Dan Anderson  401-871-3335

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Brian Crum 401-500-2925

Questions To Ask a REALTOR®

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Questions to Ask When Choosing/Hiring a REALTOR®

Make sure you choose a REALTOR® who will provide top-notch service and meet your unique needs. It is one of the LARGEST transactions of your life, an error could cost tens of thousands of dollars.

1. How long have you been in residential real estate sales? Is it your full-time job?

While experience is no guarantee of skill, real estate — like many other professions — is mostly learned on the job.

2. What designations do you hold?

Designations such as SRES®, GRI®, and CRS® — which require that agents take additional, specialized real estate training — are held by only about one-quarter of real estate practitioners.

3. How many homes did you and your real estate brokerage sell last year?

By asking this question, you’ll get a good idea of how much experience the practitioner has.

4. How many days did it take you to sell the average home? How did that compare to the overall market?

The REALTOR® you interview should have these facts on hand, and be able to present market statistics from the local MLS to provide a comparison.

5. How close to the initial asking prices of the homes you sold were the final sale prices?

This is one indication of how skilled the REALTOR® is at pricing homes and marketing to suitable buyers. Of course, other factors also may be at play, including an exceptionally hot or cool real estate market.

6. What types of specific marketing systems and approaches will you use to sell my home?

You don’t want someone who’s going to put a For Sale sign in the yard and hope for the best. Look for someone who has aggressive and innovative approaches, and knows how to market your property competitively on the Internet. Buyers today want information fast, so it’s important that your REALTOR® is responsive.

7. Will you represent me exclusively, or will you represent both the buyer and the seller in the transaction?

While it’s usually legal to represent both parties in a transaction, it’s important to understand where the practitioner’s obligations lie. Your REALTOR® should explain his or her agency relationship to you and describe the rights of each party.

8. Can you recommend service providers who can help me obtain a mortgage, make home repairs, and help with other things I need to be done?

Because REALTORS® are immersed in the industry, they’re wonderful resources as you seek lenders, home improvement companies, and other home service providers. Practitioners should generally recommend more than one provider and let you know if they have any special relationship with or receive compensation from any of the providers.

9. What type of support and supervision does your brokerage office provide to you?

Having resources such as in-house support staff, access to a real estate attorney, and assistance with technology can help an agent sell your home.

10. What’s your business philosophy?

While there’s no right answer to this question, the response will help you assess what’s important to the agent and determine how closely the agent’s goals and business emphasis mesh with your own.

11. How will you keep me informed about the progress of my transaction? How frequently?

Again, this is not a question with a correct answer, but it reflects your desires. Do you want updates twice a week or do you not want to be bothered unless there’s a hot prospect? Do you prefer phone, e-mail, or a personal visit?

12. Could you please give me the names and phone numbers of your three most recent clients?  

Ask recent clients if they would work with this REALTOR® again. Find out whether they were pleased with the communication style, follow-up, and work ethic of the REALTOR®.

If you need help preparing your home for sale call our sponsor: Green Home Solutions

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You can call Dan Anderson at Green Home Solutions 401-871-3335

Is There A “Bust” Coming After This “Boom”?

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For the past several months I have been hearing from my colleagues, consumers, and “talking heads” on the business channels on cable, that there is a coming “correction”, “downturn”, and even the dreaded “R” word; Recession.  Bollocks! I say.  Has there been a relenting of the continued pressure to increase prices? Yes, there has.  However, that does not mean that prices are in decline, or will be any time soon.

Recall the basic laws of economics; Supply and Demand.  We still have a tight supply and demand is very strong.  In many parts of the country, and especially in most of New England, there is much less than six months of supply.  (Six months of supply is considered to be “Balanced.”)

The reason that the pressure to push prices higher has relented a bit is that inventory has increased slightly.  So if the level of inventory went from 3.5 months to 4.4 months, there are more houses for buyers.  However, we are still far from a “Balanced Market”.

Balance scales

How do we know that this Demand will continue if the Fed raises interest rates? The reason that higher interest rates will not be detrimental to the real estate market is that Success: red graph over coinsREAL wages are increasing and new job creation is outpacing forecasts.

There were 230,000 new jobs created in September versus a Wall Street forecast of 180,000.  Additionally, demographics support continued strength in the housing market.  The number of millennials in the “Purchasing Pocket” ( most people buy their first home between 30-34 years of age) has been and will continue to increase.

This sustained demand and the continued increase in wages bodes well for the housing market. If the housing market is healthy that will create a thriving economy at-large because many more people will see increases in their income.  Every time a new house is sold $60,000-$75,000 of income is injected into the local economy.  That will help legions of small businesses.

Coming real estate “Bust”?…I think not.  The data doesn’t support that claim.

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