How Do You Know When to Sell an Investment Property?

How do you know when it is time to sell your investment property? I’ll go over a few signs to look out for today.

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If you have an investment property, how do you know when to sell it? Here are a few reasons why you might want to get that property off your hands: 

1. You’re moving out of state or out of the country, which will make managing the property too difficult. 

2. You have a bad tenant. If your tenant is not paying rent or not taking care of the property, you might want to go ahead and sell. 

3. Did you inherit the property? If you did and real estate just isn’t your cup of tea, go ahead and sell. 

4. You don’t have property management experience. If you can’t find a really good property manager, you are probably better off just selling the property. 

If you have negative cash flow, sell the property and stop the bleeding.

5. The market is starting to go down. In that case, it may be a good idea to sell your investment property before the market flattens out because it can take a while to recover. 

6. You have negative cash flow.  Negative cash flow means that the rent is not covering the mortgage. Sell the property and stop the bleeding. 

7. You are behind on making payments. Whether you are behind on HOA fees or taxes, that’s definitely a great reason to sell. 

If any one of these reasons resonates with you, please don’t hesitate to reach out to me. I would be happy to help you prepare that property for the market. As always, if you have any real estate questions, just give me a call. I look forward to hearing from you!

Six Things to Remember When Renovating in San Diego

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Plan ahead. People don’t plan to fail. They fail to plan! Plan everything, including time, cost, and more. It’s better to be proactive than reactive.

Overestimate your cost. Don’t cap your budget too low when renovating. Some appliances might require a larger investment for exceptional quality.

Consider all loan options. Sometimes, a line of credit or home equity line will be better than refinance. The opposite also applies. There are other available directions, such as cashing out. Figure out the best for your situation.

Get quotes from three licensed contractors. Don’t rely on one client! Understand the market and talk to multiple vendors. This could save you thousands of dollars alone. Additionally, ensure their license is still active.

Stick to the plan. Don’t overindulge! It’s easy to get caught in the mix and overspend. For instance, a relative might offer unsolicited advice and pressure you to spend more. Don’t give in.

Overestimate your time frame. It never hurts to have time left over. Don’t plan in a short period of time; you’ll run out of time quickly.

If you have any questions about renovations or anything else real estate related, feel free to reach out by phone or email. I’d be happy to serve your real estate needs!

How to Find Your True San Diego Home Value

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Can you trust Zillow to give you an accurate home evaluation? The answer is YO: yes and no. It all depends on your neighborhood.

Typically, Zillow estimates are off by 5% to 15%. However, if you're in a cookie cutter neighborhood, where multiple homes have the same builder and similar floor plans, then it's pretty easy for Zillow to estimate. It may not be completely accurate, but it will be closer than an estimate for a home in a custom neighborhood.  

Other neighborhoods can be more difficult. Zillow uses an algorithm, so if you're in a custom neighborhood like La Jolla, Zillow has no way of knowing all the features of your home. If your neighborhood has different builders, custom homes, and different amenities, Zillow is going to be way off.

For instance, in La Jolla, the way the home is positioned can significantly throw Zillow off. Some houses in La Jolla are angled for spectacular ocean views, boosting their home value over other homes in the neighborhood.

Ultimately, there are certain things Zillow cannot know. No one from Zillow goes into your home to check all the upgrades or renovations you have made. I recently went into a listing appointment where Zillow really underestimated the home value. The seller had made many upgrades and add-ons that increased the home value dramatically.

Although Zillow is a good place to start, the best way to know your home value is to have a real estate agent come out to your property and run a Comparative Market Analysis. The CMA takes recently sold homes in your area and the unique features of your property into account, giving you an accurate value.

If you have any questions, give me a call or send me an email. I would be happy to help you!

The Problem With Selling For Sale By Owner in San Diego

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Many people think they can sell their home themselves and just forego the agent commission. Ultimately it's up to you, but today we want to share why doing a For Sale By Owner is not the smartest move.

• Paperwork: You can hire an attorney to take care of the mountain of paperwork you'll have to sort through, but it will cost you a whole lot more than an agent. Taking care of all the paperwork by yourself will take a whole lot of time, and who has that?

• Liability: I've been in real estate for about 20 years and have about 1,000 sales under my belt. I've learned a lot in those years, including how to avoid a lawsuit. Liability can come back to hurt you if anything changes in a transaction.

• Price: You may have done all the research possible to put a price on your home, but online home evaluations will only get you so close to the right number. Pricing your home accurately is of the utmost importance when selling, and the best way to make that happen is with an agent.
  

These are just a few reasons why selling without the help of an agent can be a risky endeavor. If you have any questions about how to avoid the pitfalls of a For Sale By Owner, or if you need real estate assistance of any kind, please don't hesitate to reach out to me. I would love to hear from you!

Why Do You Need a Lock Box in San Diego?

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Lock boxes make showing your home easy and stress-free. Unfortunately, the ones sold at Home Depot and Lowes aren't as good as the ones that Realtors use.

Agents usually use a lock box that requires both a key card and a code to enter the home. These key cards are pretty high-tech, so they can track who has been in and out of the home. They also offer much greater security.

A lock box will also bring in more qualified buyers to your home because a listing agent will always be showing the homes to the very best buyers. A lock box also allows ease of access for your listing agents and their buyer clients. You don't have to be home to let them inside, and you hardly have to worry about showings with a lock box.

Overall, a lock box makes selling your home easier, and it improves the security of your property.

If you have any further questions, please don't hesitate to contact me. I would be very happy to speak with you!

Three Key Factors for Selling Your Home in San Diego

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Today I'm going to help you P.A.C. for your home sale. This is an acronym I use with my sellers and it stands for price, accessibility, and condition.

Price is of the utmost importance when you're selling in this market. Some people never go as far as saying that your price is your biggest piece of marketing and advertising. If you price too high, sellers will ignore you. If you price too low, you'll leave money on the table.

Accessibility is also crucial when you sell your home. You need to be flexible because buyers will want to see your home at all times of the day. Your home won't sell if buyers cannot come and give it a look. You're going to have to make some sacrifices if you want to sell for top dollar.

Condition is the last piece of the puzzle. Your home needs to be in excellent condition if you want it to sell fast. Buyers want to see homes in turn-key condition where they don't have to worry about making any repairs upon moving in. Go to model homes and take notes on what you see. Open your windows, turn on all of the lights, air out your home, and please tidy up!

If you follow these three steps, you have a very good chance of selling quickly and for top dollar in San Diego. If you have any questions, please don't hesitate to contact me!