Gea Elika's Blog, page 152

Taxation of Passive Activity

We recently discussed the benefits of passive income. The IRS defines passive activity as a business in which one does not “materially” participate in. However, rental activity qualifies, no matter the level the participation. One notable exception is if you are a real estate “professional,” which the IRS defines as someone spending more than half his/her time on real estate activity and greater than 750 hours in the business as a material participant. However, we are aiming this post at the non-professional real estate person.

Even if renting real estate is a sideline to your main career, it is incumbent upon you to understand the tax regulations that govern passive income and losses in order to make decisions that are more informed.

 

Image by Elika Real Estate / Flickr

 

Making sense of taxes

IRS publication 925 lays out the taxation of passive activity, including those generated from real estate activities. Starting with the punch line. Generally, you cannot have a passive activity loss in a particular year.

There is a nuance for real estate investors that may prove beneficial, however. You can “actively participate” in real estate if you and/or your spouse own at least 10% of the rental property and you make significant management decisions. The IRS gives examples that would qualify, including making decisions on new tenants and rental terms, as well as approving expenses. There is good news for you in this circumstance. You can use up to a $25,000 loss to offset that year’s other taxable income (single and married filing jointly filers).

However, there is a phase-out provision that is particularly relevant for New York City residents since it is a high-income area. The allowable $25,000 loss is chipped away if your modified adjusted gross income (MAGI) is more than $100,000, and there is no allowance if your MAGI is greater than $150,000.

A numerical example

It is useful to present a numerical example since this is a complex area. In this hypothetical example, you are single and own a condo unit in Manhattan. Just starting out in your career, you decide to rent the unit while earning wages from your regular job. Nevertheless, you make major decisions, such as reviewing prospective tenant applications and approving the renter. Therefore, you are an active participant.

In the first year, your wages are $75,000, but there was a rental loss of $5,000, largely due to the allowable depreciation expense. Since you are an active participant in the rental activity, you can use the $5,000 to offset your other income, which is $75,000 in this case.

Several years later, your wages grow to $175,000, and you have other income from dividends and interest. Any loss from the rental is disqualified, and you can only deduct the passive losses to the extent you have passive gains in that year. However, if you still have a loss, you can use this credit to offset future passive income.

Concluding thoughts

Basic knowledge can improve your profitability, although business decisions should not be guided completely by tax considerations. There are NYS and NYC tax considerations, as well. Real estate can generate a nice cash flow, but remember, it is the after-tax amount that matters.

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8 Art Exhibits You Don’t Want to Miss This Winter in NYC

Think beyond the snow and the tree in NYC this winter. Consider seeing the performing arts and visual arts as well. The art scene never dies in NYC, and the winter season brings out the best and brightest artists, as well as a few up and coming artists in the area. Don’t spend your days cooped up in your home. Get out and enjoy art. These are the eight art exhibits you won’t want to miss this winter in NYC.

 

1. A Body in Fukushima

 

Image by William Johnston /Flickr

 

Visit the Cathedral of St. John the Devine on Amsterdam Avenue in NYC. The historic, Romanesque cathedral is currently displaying A Body in Fukushima, a collection by photographer Eiko. The work is a collaborative effort between Eiko and renowned historian William Johnston. In it, Eiko dons striking red clothing while being photographed in the inhabitable areas of Fukushima. The exhibit runs through March 2017.

 

2. A Pen of All Work

 

Raymond Pettibon, No Title (Let me say,), 2012. Ink and gouache on paper, 45 × 93 in (114.3 × 236.2 cm). Private collection, Los Angeles. Courtesy Regen Projects, Los Angeles Image courtesy of New Museum / Raymond Pettibon’s A Pen of All Work

 

Visit the New Museum to view Raymond Pettibon’s A Pen of All Work. The collection will feature more than 700 works of art, including visual and written texts, which expose what defined and decimated America’s counterculture in the 1970s and 1980s. The collection dates back as far as the 1960s. The exhibit opens on February 8th and runs until April 9, 2017.

 

3. Black Cowboy

 

Ellis “Mountain Man” Harris – The Federation of Black Cowboys / Image Courtesy of Huffington Post

 

The Studio Museum will feature Black Cowboy until March 5th. This collection of photographs allows you to view the iconic time in history when cowboys roamed the West and South. The photos pay homage to the unforgotten black cowboys of those days.  Black Cowboy challenges you to rethink everything you thought you knew about gunslingers and what an American cowboy really is.

 

4. Young Lady

 

The Young Lady collection by Bonnie Lucas / Image Courtesy of Timeout

 

The Young Lady collection by Bonnie Lucas will be at JTT Gallery on the Lower East Side until February 26th. For this exhibition, Bonnie Lucas traveled to Chinatown and collected children’s toys and anything else she could find, and then she morphed them into exquisite pieces of art that are both frightening and playful.

 

5. Fast Forward

 

Jean-Michel Basquiat (1960–1988), “LNAPRK”, 1982. Acrylic, oil, oil stick, and marker on found paper on canvas and wood, with rope, 72 1/4 × 66 5/16 in. (183.5 × 168.4 cm). Whitney Museum of American Art, New York; gift of June and Paul Schorr in honor of the 60th Anniversary of the Whitney Museum of American Art 91.83 © 2016 The Estate of Jean-Michel Basquiat / ADAGP, Paris / ARS, New York

 

Visit the Whitney Museum to view paintings from the 1980s in the Fast Forward collection. The collection aims to recognize the less notable artists of the 1980s by giving them a platform to show their work right next to more well-known artists such as Eric Fischl and Basquiat. The exhibit will run until May 14th.

 

6. Remembering Steve

 

[Image: Steve Wolfe “Untitled” (Study For Vanguard/Cooks/Sapporo/Durham’s/Campari Cartons) (2003- 2005) Oil, screenprint, lithography, ink transfer and modeling paste on paper, Framed: 21 3/4 x 26 3/16 in.]

 

Until March 11 you can view Remembering Steve, the exhibit of the iconic bibliographic artist Steve Wolfe, who the art community lost in 2016. Steve was known for creating works of art using replicas of literary classics and records from a post-war America—mainly books from the 1960s and 1970s. The exhibit is hosted by Luhring Augustine and is at the Chelsea gallery.

 

7. Jack Whitten

 

Quantum Wall, II (Missing Matter), 2016 Acrylic on canvas  121.9 x 243.8 x 7.6 cm / 48 x 96 x 3 in

© Jack Whitten Courtesy the artist and Hauser & Wirth

 

Jack Whitten’s work will be on display at Hauser and Wirth New York in Chelsea. The now 70-year-old abstractionist will display his unique paintings that feature dried acrylic chips, spectacularly arranged on the canvas like mosaic tiles. You can view the collection from now until April 8th.

 

8. Beverly Buchanan – Ruins and Rituals

 

Beverly Buchanan—Ruins and Rituals, installation view. Image courtesy the Brooklyn Museum. Photo: Jonathan Dorado / 4 columns.org

 

Ruins and Rituals, the art exhibit by Beverly Buchanan, will be at the Brooklyn Museum until March 5th. The exhibit is part of the Black Art Project, which aims to make African American art more visible and celebrated throughout the country. The collection is the most complete collection to date of the celebrated explorer and non-conforming artist who recently died in 2015.

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The Long Game: Why NYC Rental Investment Sets You Up for Financial Security

New York City’s rental market is one of the most expensive in the world, and for good reason. The competition is steep and the cost of living is high. With NYC offering some of the best career opportunities and salaries that are uncommon elsewhere, residents are prepared to pay for the convenience of living close to everything. For investors, the appeal of NYC rental properties is timeless. As people continue to flock to New York for its lucrative opportunities and lifestyle, owning rental properties and collecting rent from tenants allows you to profit from a passive stream of dependable income.

 

Image by Ragnarok NYC /Flickr

 

It Is Not About Getting Rich Quick

Unlike house flipping, where one often sees dramatic profits that come in lump sums, rental investment requires endurance and patience. Your gains are likely to be small at first, but as you pay off the loans that went toward your units and acquire more properties to lease, your income will increase. Rental investment is a long game that can even go into overtime (thanks to years of acquiring properties and paying down loans), but if your goal is a comfortable retirement, then you need to stay the course. Collecting rent from multiple paid-off units creates an extremely comfortable lifestyle that gives you the freedom to fulfill more of your goals and dreams. In addition, if you hire a property manager, you can also be free from making maintenance calls and collecting the rent, making for a stress-free and enjoyable retirement.

Let Your Tenants Pay Off Your Loans

If you took out a loan to buy your first property, you can use the rent you collect to pay off your debt. Since rent is priced higher than a typical mortgage, the difference between what you receive in rent and the installments you pay toward your loan will be your profit. You can also use the money you receive as emergency savings or for extra payments toward the loan’s principal. Having other people pay off your loans and investments is one way to work smarter, not harder. This process requires patience, but once your loans are paid off, you will see noticeable profits that continue to grow.

Rental Prices Go Up With Costs of Living and Market Demand

Even if you own properties that adhere to rent stabilization regulations, rent payments in New York have traditionally experienced an upward trend. As the cost of living inevitably rises, salaries will need to keep pace and rent should rise accordingly. As a landlord, you will need to charge the right amount in order to make the appropriate maintenance to your units and profit appropriately.

Let a Real Estate Agent Help You Find the Perfect Investment

If you need help finding the right investment property, then getting the expertise of a real estate agent who knows New York is essential. Not only can an agent help you gain a property located in an area that is desirable and likely to grow in value, he or she can negotiate the best deal and conditions for sale.

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The Noma – 50 W 30

Rising 24 stories and designed by critically acclaimed FXFOWLE and developed by Alchemy Properties, the NOMA offers 55 beautifully appointed condos in the contemporary NoMad district. For luxury at its best, look no further than the Noma.

Architecture

Designed in a neo-Bauhaus style, FXFOWLE uses classic forms from the Bauhaus school and updates them to be bold, crisp, and modern. Banded brick and glass and a focus on articulated volumes make the Noma unique in the city.

 

Rendering Courtesy of Noma 50 W 30

 

Residences

Totaling 55 condos, the Noma residences represent the height of refined elegance. From the outsized casement windows that let sunlight pour onto the white oak floors to the custom kitchens, FXFOWLE worked to get everything ‘just so.’

 

Rendering Courtesy of Noma 50 W 30

 

The attention to detail and commitment to quality continues through to the kitchen, where white polished cabinetry sits above white marble backsplash and gray quartz counters. Kohler sinks and Miele appliances round out the functional elegance of the kitchen.

 

Rendering Courtesy of Noma 50 W 30

 

The same lux functionality continues into the bathrooms of each residence. The masters are complete with white marble walls, mosaic marble flooring (with underfloor heating) and marble and walnut vanities. Kohler sinks and Kallista faucets mean that it’s luxury that will last. In the powder rooms, the marble mosaic flooring continues and extends up the walls, while the fixtures take on a simple elegance with wide black stainless steel vanities and Kallista gunmetal finish fixtures.

 

Rendering Courtesy of Noma 50 W 30

 

Amenities

No expense was spared when it comes the amenities at the Noma. With a soaring two-story entranceway, impeccably decorated in an industrial style with reclaimed wood and a gunmetal chandelier, the Noma greets you warmly from the very start. Complete with Venetian plaster and leather upholstered walls, limestone floor, and a 24/7 doorman, it’s a wonderful place to come home to.

Residents also have access to the 125 foot wide landscaped terrace, complete with outdoor grill and seating, a library and sunny fitness center with cardio, free weights, and boxing equipment. All detailed with reclaimed wood for a warm, relaxing environment to help you stay at your best.

Availability

There is a range of configurations available across the 55 condos, ranging from one bedrooms up to penthouses.

A 696 square foot one bedroom starts at $1.55 million, with around $2,000 in monthly taxes and fees.

Two bedroom units start at $2.4 million for 1,266 square feet and go up to $3 million for a 2-bed, 2.5 bath 1,310 square foot unit with a 92 square foot terrace.

The penthouse unit offers 3-bed, 3.5 bath and 2,190 square feet of interior living space with an additional 413 square foot terrace. The penthouse is listed at $6.75 million, with a projected $6,400 in monthly taxes and fees.

Neighborhood

NoMad sits in Flatiron at the crossroads of New York’s art, culture, design, fashion, and food scene. Just steps away are some of the most famous neighborhoods in the city – Union Square, Chelsea, and Gramercy Park, to name a few. Don’t feel like going far? With artisan foods and boutique stores just around the corner, not to mention plenty of parks and the High Line just a 20-minute walk, you’ll never want to leave your hood.

[ Noma ]

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5 Factors: Convenience vs. Commuting: Weighing the Costs

New York City offers some of the most lucrative careers in the world. As a result, rent and mortgages will be expensive if you choose to live there. Today we will discuss the big decision every career-minded person faces: is it better to spend more on your living space to be closer to work or to save money and commute? One option saves you time but leaves you with less financial margin, while the other saves you money but cuts away at your free time. To decide where to live, you must weigh a few important factors like your finances, home life, and personal happiness.

 

Image by Miles Nicholls /Flickr

 

Factor #1: Your Rent or Mortgage

Financial experts advise that your rent or mortgage should not take up more than 30% of your monthly income. Though this is not always feasible, it is wise to not let this monthly expense go beyond a reasonable rate. When you choose a place to live, balancing your finances should be your top priority. No matter how attractive that apartment across from your office may be, if it is eating up a larger chunk of your salary than you can handle, you should consider more affordable options or consider getting a roommate when renting.

Factor #2: Travel Costs

If you choose to live further away from work to save on your rent or mortgage, be sure to figure in the cost of commuting. Expenditures such as gas, rail/bus tickets, your MetroCard, and meals on the go should be penned into your monthly budget. Lower mortgages and rents from the suburbs should always have travel costs added to them to give you the true cost of commuting.

Factor #3: Time

Once you have a better picture of the costs of commuting vs. living closer to work, you should also decide on the time you want to spend outside of your home. Commuting requires more time for travel, whereas living closer to work gives you more free time. Make a realistic schedule of how you will spend your time in each location and decide if it fits into your desired lifestyle.

Factor #4: Your Family Life

Having a family is an important factor to consider when deciding how far to commute. Saving money by commuting can keep a family’s budget from becoming strained, but the lack of time at home can affect your relationship with your family. Balancing child-rearing responsibilities with your partner is also important. With your living plan, are you making enough time for your loved ones? Will commuting too far affect your ability to be available for daycare pick-ups and emergencies? Do you have a partner who can stay at home or work closer to your children’s school? Your answers to these questions will help you decide on how you and your family can compromise to make a healthy balance between work, commuting, and relationships.

Factor #5: Happiness

You should enjoy your career and home life, so if a living situation is not working out for you, do not be afraid to make adjustments. Life is full of constant changes to which we must periodically review and adapt, so it is wise to assess your situation and work toward a happy life.

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Make Your Rental Property Shine: How to Market Your Rentals to Avoid Vacancy

Being a landlord has many rewards when all your units are occupied by good tenants. The steady stream of income you receive from monthly rent payments continually pad your income and become a building block for future investments. When there is a vacancy, however, you may find yourself experiencing some financial difficulties. This is problematic in a business where it is advisable to have extra money to cover inevitable repairs.

In spite of the increased demand for rentals since the recession, the rental market is still competitive. Tenants want the best deal and are keen to see what their money is worth. In order to avoid vacancies after a lease ends, you need to have your next tenant lined up and ready to move in. It is possible to keep your units occupied like this by marketing your units well to make them appealing to quality tenants.

 

Image by laura cattano / Flickr

 

List Your Unit at the Right Price

First and foremost, price is a major factor in determining how soon a new lease will be signed. Potential tenants are particularly observant of costs. In order to get the best value, they will weigh every factor to arrive at the best deal for their lifestyle, income, and family. When a rental is priced correctly for its amenities, location, and size, you will get the right amount of interest from qualified tenants. To maximize your property’s earnings, you will want to make sure the rent is high enough for you to earn a profit but low enough to be fair and appealing to future tenants.

When priced too high, your unit will generate little interest as prospective tenants explore similar properties at better prices. There is also a danger in listing your rental too low. When your unit is listed as a steal, you will get an overwhelming amount of inquiries from applicants with financial backgrounds that may not qualify for the apartment. This poses risks for you financially if the tenant is not reliable with payments. Also, when you make your rent too low, you do not get an optimal return on your investment.

Make Your Unit Visually Attractive Online

An overwhelming majority of prospective tenants start their home search online. The photos you post of your unit are going to be the first impression they receive, so they should boast your property’s best assets. If there is a spacious living room with great light, show it off! Investing in professional photography for more high-end units will make your online advertisements look even better, attracting the best tenants.

Maintain Your Units Well

Keeping your units well-maintained makes them extremely marketable. Quality tenants want the most for their money and will choose an apartment that is in good condition over one that “needs work”. In your listing online, be sure to emphasize the new perks and maintenance that have been completed. Nothing is more assuring than moving into a unit with great appliances, fresh paint, and clean carpets. When your property is pleasant to live in, you can also keep tenants for years!

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A Subway Line Breathes New Life

There likely has never been an infrastructure project as eagerly anticipated as the Second Avenue Subway. Decades in the making (the original proposal commenced in 1919, but the Great Depression prevented work from starting, and construction started in 1972 before being halted in 1975 due to the city’s fiscal crisis), the first phase  launched on New Year’s Day, extending the Q line 3 stops (72nd street, 86th street, and 96th street). New York City’s biggest expansion of the system in 50 years, the Second Avenue Subway will officially be the T line. The service will ultimately extend from the Financial District to 125th street.

 

Image by airbus777 / Flickr

 

Previously, those residing on the East Side had limited transit options. The 4, 5, and 6 subway lines run on Lexington Ave, but those who reside east of this point had to make other arrangements, such as enduring a long walk. However, this created a situation where those living in Yorkville were able to snatch up lower prices for their apartments than other areas of the city. This area is considered a subsection of the Upper East Side, generally defined as running from 79th Street to 97th Street, between Third Avenue and FDR Drive.

Although convenience is important, our readership is primarily concerned with how this impacts the neighborhood’s real estate prices.

A nice windfall

If you own an apartment in Yorkville, you may already have seen an increase in value. Future gains are also possible now that the project has finally become a reality. You have lived through the inconvenience and broken promises, particularly for longer-term residents. More recently, you endured the sounds and rumblings of construction. However, this should pay off in handsome price appreciation.

 

Image by Chris Hamby /Flickr

 

Anecdotally, real estate agents were reporting solid double-digit increases (up to 20%) in sales prices over the last couple of years before the completion of the current construction phase. There is room for growth, with the average price per square foot at $1,750, according to Streeteasy. This compares to $2,496 for all of the Upper East Side. The average price in the Lenox Hill and Carnegie Hill neighborhoods that also comprise the Upper East Side was $2,841 and $2,496, respectively.

To quantify the potential price appreciation, we can turn to a 2013 study commissioned by the American Public Transportation Association and the National Association of Realtors. This found homes closer to transportation sold for 41% more than those that were located further away. Not surprisingly, the study found this was more pronounced in cities that are more reliant on mass transportation, such as New York.

Of course, if you are a first-time homebuyer bargains harder to come by, but purchasing an apartment in the Yorkville neighborhood provides a much better commute, which you may find worth the extra price tag.

Final thoughts

The Upper East Side has many benefits to offer. These include the many museums and cultural institutions as well as parks. You can now add an improved commute to the list.

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7 Interior Decorating Tips to Make Your Apartment Instantly More Sophisticated

There’s never been a more exciting time to redecorate your apartment. With design trends like wall decals, bold paint, and accent pieces to spice up a dull room, you can make some minor changes that will impress your guests. Here are seven simple ways to spruce up your apartment and give it a touch of sophistication.

Accent chairs. A unique chair that stands out in design and color can add an element of fun to any room. For example, a bright blue slipper chair in your living room creates a splash of contrasting color that adds fresh texture and visual stimulation. A leather wingback chair near your fireplace can become a quiet, private space that gives the room a classic feel. Accent chairs are portable as well, making them practical in that they can become extra seating anywhere in the home.

 

Image by Shaun James Cox /Flickr

 
Windows. Your window treatments can change the entire topography of your room design. They are the element that makes any living space look “complete.” There are many ways to make your windows look great and tie a room together. For example, Roman shades function like blinds, but their unique larger folds make a bold statement in any room. For another style, fine linen curtains hanging on engraved brass rods can add class and charm.
New paint. This simple touch-up can freshen up any interior. Adding a new color to your walls can help create harmony between your furniture and decor. Diverging from standard white paint to experiment with bold colors can also make a room’s mood energetic and fun. Meanwhile, earthy tones can create a warm and pleasant ambiance
Rugs. A great rug can tie various pieces of furniture together by becoming the focal point of the room. Consider something classic like a Persian rug that will never go out of style, or experiment with bold and modern prints that express your unique personality.

 

 

Image by Aleka Iakovidou /Flickr

 
Wall decals. A good wall decal is the perfect compromise between a nicely painted wall and the decorative patterns of wallpaper. Decals can also showcase things you care about like favorite quotes from a book. Since these can be changed anytime, they are fun to experiment with, and they make it easy to change your interior any time.
Throw pillows. When you want to update the look of your furniture but lack the time and money to replace it entirely, sometimes a few new accent pillows are all you need. Try out diverse patterns and colors. You will be surprised at how well they enhance your living space!
Local art. The next time you pop into a coffee shop or small business, check for unique artwork for sale by local artists. These pieces of art can come in the form of acrylic paintings, ceramics, and fine crafts—all which make excellent decorations. If you want a conversation piece that expresses the heartbeat of your city, don’t pass up the next great piece of original art you see!

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Neighborhood Spotlight: Brooklyn

Brooklyn has experienced incredible growth and change in the recent years. From hosting a local postmodern art revival to being the place where new businesses and tech startups choose to take root, this borough has been undergoing a genesis that has made it one of the most desirable places to live in New York. As a result, it is now one of the most populated and diverse boroughs. Brooklyn neighbors Queens and Long Island, making it possible to see an incredible city skyline from its shores. When you live here, you are just a ferry ride or subway stop away from reaching other parts of the city, making travel and commuting to work conveniently.

 

Image by Peter Miller /Flickr

 

Brooklyn: A True Melting Pot

Brooklyn embraces diversity, as evidenced by the motto of its seal and flag — Eendraght Maeckt Maght — which translates to “unity makes strength.” The residents of Brooklyn are from all walks of life and many parts of the world and are proud to call Brooklyn their home. Many nationalities, faiths, and ethnicities are represented here, from the Jewish American community that is over 600,000 strong, to the many Latinos who have set up successful businesses in the area. The wealth of cultural exchange is priceless: Brooklyn offers the unique ability to taste the authentic cuisines of many countries in a single place.

There’s Something for Everyone

 

Image by dumbonyc / Flickr

 

Brooklyn can appeal to people of many interests in any stage of life — whether you want a morning jog in Brooklyn Bridge Park, to walk the Brooklyn Heights Promenade, or to attend lively sporting events. Among its iconic locations is the historic Coney Island that still draws in thousands of visitors since its heyday in the 20th century. Brooklyn residents can also take it easy at a Brooklyn Cyclones game at the newly revamped MCU Park baseball stadium. Other memorable landmarks include the Brooklyn Borough Hall which emulates the sophistication of neoclassical architecture, while the Soldier’s and Sailor’s Arch recalls the majestic arches of ancient Rome. And finally, you can’t talk about landmarks without mentioning the world-famous Brooklyn Bridge, which connects residents of Brooklyn to Manhattan. By making it possible to travel by car over the East River into the city, this bridge is not only an impressive piece of architecture, but it is one of New York’s main arterials for daily traffic and commerce.

 

 

Other Perks of Brooklyn

 

Though living in New York is not cheap, apartments and property values in Brooklyn are more affordable than what you can find in Manhattan and other boroughs. On top of this, there are currently nine subway lines that run through Brooklyn, and they can take you nearly anywhere in the city.

 

Image by Elika Real Estate /Flickr

 

If you are looking for a neighborhood that is rich in history and is undergoing exciting growth and evolution, then Brooklyn is for you. Living there situates you near the excitement of the city in an incredible community where you can take in sights and have experiences that are difficult to find elsewhere.

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4 Steps You Need to Take if You Want to Sell Your Home

Perhaps you are outgrowing your first home, or you finally landed that dream job in another city. Whatever the reason may be, when you need to sell your home, you need to sell it at the best price and at the right time. If your next home purchase is contingent on selling your current home, the situation is all the more urgent. Here are four crucial steps you can take to make sure your home sells quickly and at a good price.

1. Get A Real Estate Agent

This first step seems basic, but it is the most important one you can make. Sometimes owners try to sell their homes by themselves in an attempt to save some money, but ultimately these people miss out on a real estate agent’s professional insight. Your agent will have the experience, tools, and marketing abilities that help your home sell more quickly than you can alone. For example, your agent can price your home appropriately the first time and get your home maximum exposure on the market — both online and in your area.

2. Prepare Your home for Photos

Though sprucing up your home involves a bit of investment on your end, it will attract more interested and committed buyers. Also, you will have more negotiating power during the contract phase when your home is in pristine condition. If you want to get the most out of your home’s market value, then you should beautify your home’s interior and give your walls a fresh coat of paint. All of these touch-ups will make your home’s photos more appealing to prospective buyers.

 

Image by Ashley / Flickr

 

3. How Much You Invest Will Determine How You Can Market Your Home

Move-in-ready homes are more desirable to standard buyers. If you invest in some attractive updates before you sell, then you can expect higher-priced offers. Though there is a market for fixer-uppers, a home without updates that is in dubious condition will likely sell at a lower price. If you choose not to pay for any updates or maintenance, your home will sell at a lower price or repairs will be negotiated into the offer. On the other hand, remarks about new appliances and fresh carpet can generate more mainstream interest and justify a home’s higher listing price. Ultimately, you will need to decide which investments are going to be advantageous to you in this transaction.

4. Make Your Home Appealing to Your Target Buyers

Your agent is your best resource for marketing your home properly. In the listing, he or she will emphasize your home’s best features and advantages that will appeal to your potential buyers. For example, is it good for commuters? Located on a quiet cul-de-sac? A great deal? Overall, your home’s value and condition will determine the target “customer persona”. Your agent is adept at tailoring your listing to your expected buyers. For example, high-end homes do not have as many qualified buyers, so the marketing must be aggressive in showing off your home’s best assets. If your home is affordable, however, you won’t have as many marketing needs. A good rule to follow is this: as the listing price rises; you need more bells and whistles to get your home sold quickly.

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