4 Questions To Ask Yourself Before Becoming A Landlord

Posted on March 22, 2023 by author

Investing in real estate is one of the most dependable ways to build wealth, but it’s important to know all the ins and outs before getting into it. Set yourself up to be successful by researching and making sure it’s the right choice before you purchase your first rental property.

In the midst of your research, ask yourself these four questions before starting your journey as a landlord.

Do You Have Enough Time?

Being a landlord isn’t as easy as buying a property and finding tenants; there is a lot more to it than that. If you are going to update the property before finding tenants, you’ll be taking calls and coordinating contractors to come out to the property. Once you have tenants, they’ll call if something needs to be fixed or something goes wrong, and those calls could come any day at any time. As the landlord, these are all things you will need to handle quickly to keep your tenants happy.

Remember, the more properties you own, the more calls you’ll take and the more issues you may need to handle.

How Will You Screen Potential Tenants?

Making sure you choose the right tenants is important because you want to make sure they will take care of the rental and pay their rent on time. While it might cross your mind to let whoever replies to your online ad first move in immediately, that is not the smartest idea. As the landlord, you want to screen prospective tenants by performing background checks, checking credit scores, confirming income and job details, and calling previous landlords to make sure they’re the right fit.

Do You Have Legal Counsel Lined Up?

While you hope to never have to call your lawyer, it’s important to have one lined up that specializes in landlord-tenant issues. If nothing else, having a lawyer review your leases and ensure all paperwork complies with local laws is helpful. There may come a time when you have a tenant who doesn’t pay their rent, and in this case, an experienced lawyer will be a huge asset.

What Is Your Why?

Understanding why you want to be a landlord is important for success. Are you doing this on the side to make extra money, or do you want to do it as a full-time job? Will the time you’re putting into being a landlord and the potential issues that could come up be worth it? Keeping your why at the forefront is important as you purchase your first rental and continue becoming successful.

Becoming a landlord is hard work, but the rewards will be huge if everything works in your favor. If you have any questions or need recommendations about how to start investing and becoming a landlord, reach out to us! We are always here to help.

5 Ways to Make Your Home Feel and Look New This Spring

Posted on April 21, 2022 by author

Whether you’ve lived in your home for years or are looking to sell this spring, we’re sure you’re tired of looking at the same walls for years on end. A new study discovered that homeowners now spend about 13 years in their homes. This is a considerable increase of about ten years compared to a decade ago. Many factors determine the length of homeownership: older homeowners aging in place, a home supply shortage, and more affordable housing payments if homeowners refinanced and took advantage of the low mortgage rates last year. Whether a seller or homeowner, here are 5 ways to bring your home back to life and make it feel and look new this spring!

1. Paint the walls

Paint is the most cost-effective way to make a massive difference in any room. This will be especially noticeable if the walls are chipped or show other flaws.

But choosing the right paint color is the key to success. For a color that goes with everything, earthy colors or tinted neutrals are the colors you want. Both color types are soothing and easy to mix and match in your home. If you want to give off the illusion of more space, then off-white will be your friend.

If you’re selling this spring and want to attract homebuyers, it’s best to avoid colors that trigger a love-it or hate-it reaction. Think of trending colors like mint green, yellow, baby blue, etc.

2. Update the kitchen

You don’t have to renovate your entire kitchen to make it feel new, either! A few replacements and upgrades will help give it a new look. Some ideas are replacing old kitchen cabinets and handles with modern hardware, installing a touchless faucet, or installing or updating the backsplash.

3. Replace outdated light fixtures

Any REALTOR® or photographer will tell you that lighting is essential. Lighting has a significant impact on a room by defining the room’s look and feel. Lighting fixtures go out of style, too, so consider replacing old chandeliers, sconces, and pendants. It’s also a good idea to replace the light bulbs themselves, depending on the mood you want for the room. For bedrooms, it would be beneficial to use soft-white bulbs, while the kitchen could benefit from daylight bulbs. Don’t forget exterior lighting either!

4. Increase curb appeal

Did you know homes with high curb appeal sell for 7% more than houses with a less than pleasant exterior? Your home’s curb appeal is people’s first impression of your home, and you know that saying, “you only get one chance to make a first impression.” And that’s true with homebuyers this spring! Increase your home’s outside appearance by adding landscaping or changing what’s already there. If you don’t have a green thumb, a simple task like trimming trees and shrubs will still make a big difference.

5. Replace the carpet

According to a March 2021 poll by the National Association of Home Builders, most homebuyers prefer hardwood floors. 32% said hardwood floors in the main living area is a “must-have”! So if your flooring needs a tune-up, consider removing the carpet and going for hardwood. Another option is to restore the original hardwood floors found under the carpet. Laminate hardwood floors are less expensive than natural wood and easier to maintain if you’re on a budget.

If you need help sprucing up your home this spring to sell your home, contact us!

Two More Scenarios After Your Offer Is Accepted On A Home

Posted on January 27, 2022January 20, 2022 by author

In our previous blog, we covered the more common scenarios that happen after your offer is accepted on a home. In this blog post, we’re covering the scenarios of what happens if you or the seller wants to back out. If a seller accepted your offer, congratulations! You are one step closer to owning a home or property. What happens now can vary, but I’ll cover the different scenarios below.

Scenario 1: You Want to Back Out

Contingencies will determine how easily you can withdraw. If you’ve already signed a purchase agreement, it’ll be a little harder to withdraw but it may still be doable. If a contingency in your offer isn’t satisfied, you have two options. The first is to renegotiate with the seller to reach a point of mutual agreement, or you may be able to withdraw the offer, depending on the accepted contract.

Contingencies can be a safety net for buyers, but you can lose your earnest money deposit if you don’t fulfill your buyer obligations. Obligations mean following the deadlines and timeframes outlined in the purchase agreement.

In this competitive seller’s market, buyers have removed contingencies to make their offers more appealing to sellers. This means it will be harder to withdraw from the purchase agreement before closing. If there are no contingencies and you want to continue withdrawing from the contract, the seller has the right to retain your earnest money deposit. This is usually about 3% of the purchase price. For a $500,000 home, it could be a $15,000 loss.

Scenario 2: The Seller Wants to Back Out

A seller could have many reasons to change their mind, whether it’s accepting a better offer or deciding to no longer sell. The key is the timing of when they want to back out. If the seller chooses to withdraw their offer acceptance before signing the purchase agreement, there’s not much you can do. Similar to scenario 3, if the seller wants contingencies, but both parties cannot agree to, the contract can be canceled. If the seller decides to back out after signing the purchase agreement, they won’t lose their deposit, but they could have a lawsuit as they have breached the contract.

If you need help navigating this fast-paced seller’s market, contact me today! I’d love to help you find the home of your dreams this year. Reach out to TALK Property Management–we are here to help: (512) 721-1094 or dbrown@talkpropertymanagement.com.

Two Scenarios After Your Offer Is Accepted On A Home

Posted on January 20, 2022January 20, 2022 by author

If a seller accepted your offer, congratulations! You are one step closer to owning a home or property. What happens now can vary, but I’ll cover the different scenarios below. In this blog, we’ll cover the two most common scenarios and in our next blog post, we’ll cover the scenarios if you or the seller wants to back out.

Scenario 1: You Sign the Purchase Agreement

This scenario is the most natural progression after an offer is accepted. Signing the purchase agreement means the property is under contract since the agreement has been accepted in writing and signed by both parties. It will include the following information:

Identification of participating parties (buyer and seller)
Legal description of the property
Financial details
- Purchase price
- Buyer financing
- Earnest money deposit amount
- Closing costs and how it will be split between buyer and seller
Condition/specifics of the sale
- Contingencies
- Items conveyed in the sale (appliances, fixtures, etc.)
Timeline
- Contingency time frame
- Offer expiration date
- Closing date
Condition of the home
Property disclosures
Relevant seller concessions, repairs, or credits

After the purchase agreement is signed and the earnest money is deposited, you now have the legal right to purchase the property. The signing and returning of the purchase agreement with the buyer’s earnest money deposit is the process of moving the sale into escrow.

Scenario 2: The Seller Wants to Negotiate

The seller might like your offer but can still negotiate some terms, so it’s in the seller’s favor. The seller can negotiate by submitting a counteroffer. This is why having a good buying agent is crucial, as they are the key to helping you navigate the negotiation process and helping get both parties what they want. Negotiations can include:

Increasing the purchase price or down payment
Removing/editing contingencies
Adjusting the length of closing schedule
Modify seller concessions/contingencies
- Seller repairs or credits
- Excluding certain items from the sale
- Property transfer deadline, also called the seller move out date

Once both parties find terms agreeable to them, a purchase agreement will be drafted for both to sign. Then the buyer can move forward with purchasing the property.

What Does A Homebuyer Pay for in Closing Costs in Texas?

Posted on September 8, 2021September 8, 2021 by author

Home prices have begun to stabilize in Austin! According to the Austin Board of REALTORS® July stats, the median home sales price is $480,000. This is $2,364 less than the previous month. If you’re ready to buy as a homeowner or an investor, read what you’re paying for in your closing costs.

Title Company Fees for Homebuyers in Closing Costs

These are the following fees your title company will charge you and what you are responsible for paying as the homebuyer.

Escrow Fee

The buyer and seller will pay their own escrow fee to the title company to process the sale’s closing.

Endorsements

Endorsements are expanded coverage with a title company’s insurance policy to help cover the specific needs of the transaction. Depending on your title company and unique situation, this price can be as low as $30 or as high as hundreds or thousands of dollars.

Recording Fees

Once the sale is finalized, documents need to be sent to the county. This can range from $120 to $160, but it will depend on the county.

Appraisal Fee

The buyer typically pays for the appraisal, and it can range from $500 to $700. The lender you choose will most likely want an unbiased third party to appraise the property to ensure the property’s value matches the contract price.

Credit Report

A buyer will pay the $50 to $75 fee for their credit report to be pulled.

Lender’s Document Preparation

This $100 to $120 fee is paid to the lender for creating and organizing all the closing documents.

Escrow Accounts for Homebuyers

If you’re putting down less than 20% for a down payment, the lender will require you to place your taxes and insurance into an escrow account at closing. As a homeowner, you will pay your taxes and monthly insurance to your lender directly using the escrow account. When the taxes and insurance are due, the lender will use the money from the escrow to pay them on your behalf.

Homeowner’s Insurance

Depending on the property and the coverage you choose, the price can range from $900 to $2000 per year.

Property Taxes

At closing, the seller will pay the buyer a year-to-date prorated amount for taxes. For example, if the closing happens on October 1st, the seller will give the buyer credit for ten months since the seller owned the property for ten months of the year. The buyer is then responsible for paying the difference between the credit and the total tax bill at the end of the year. Your lender will require several months of taxes in the escrow account.

If you’re ready to buy or invest in Austin area real estate, contact us today! Reach out to TALK Property Management– We are here to help: (512) 721-1094 or dbrown@talkpropertymanagement.com.

A Realistic Look at Austin Investment Opportunities in 2020

Posted on May 7, 2020 by author

If you are considering investing in Austin real estate as we approach uncertain times in the COVID-19 era, you need to be realistic and ask yourself the hard, honest questions. An economic downturn can offer opportunities for real estate investors where competition is lessened, and the number of those seeking rentals can increase. Investing in Austin requires a keen eye for opportunity, and now is the time to prepare to buy a rental property.

First, an Austin investor needs to understand the current real estate market. Local REALTORS® have access to resources that an investor can use to study current trends. Consulting with an agent that works daily in Austin’s home buying and selling industry is key to making an informed decision. Recently, residential sales in the Greater Austin area have increased by 2.2% year over year, while the median price hit a spike of 11.7% compared to March 2019. The numbers indicate that the first of the year’s activities were on track to continue pushing the market to new highs. As the May selling kicks off, the housing market could start to see subtle or not so subtle changes due to COVID-19’s effect on the economy. No one has absolute answers, but we can strongly speculate a significant shift ahead.

Second, those seeking to buy rental properties in Austin need to evaluate their financial situation honestly. Here are a few key areas to analyze:

Savings – can you cover at least three months of personal expenses, including having funds set aside for emergencies?
Job situation – are you in a stable position, or does your industry anticipate layoffs?
Assets – do you have assets that will become a burden and/or are you considering selling one or multiple assets first?
Liquidity – do you have readily available funds for a down payment, repairs, maintenance, and future mortgage payments?

2020 health concerns are creating unprecedented times but can also present opportunities for those intending on investing in Austin rental properties. For the realistic buyer, now is the time to prepare for those opportunities. If you need guidance from a local, experienced REALTOR®, contact Dona Brown and Talk Property Management. We serve in Travis, Williamson, and surrounding counties in residential sales and property management. Call 512-721-1094 for a free consultation.

Mortgage Rates and Investing in 2020

Posted on March 26, 2020 by author

Austin area investors have incredible mortgage rates to take advantage of, and even lower rates may be headed our way for home-loans. The Federal Reserve recently pledged to buy bonds and treasuries in an effort to stabilize the market this spring and, as a side-effect, will push mortgage rates downward.

In a time when rates are already historically low, how much lower can they go? It is possible that homebuyers could see a 30-year fixed rate of 2.75%, according to President of Naroff Economics, Joel Naroff, who recognizes patterns from previous years. The Fed launched similar efforts in 2008, which in-turn pushed rates down below 5% for the first time in U.S. history.

Mortgage rates are likely to either drop slightly or at least remain the same while the Fed keeps any sudden increases at bay. The reserve institution lifted its cap of $200 billion on spending for mortgage-backed securities (MBS). That move creates the additional buying power of the bonds and treasuries as noted above, and the market for these MBS’s is what impacts the current mortgage rates.

For now, only time can tell the future, and what is current is that rates are low, staying low, and consumers should watch headlines closely to prepare for any changes in the market.

If you are considering buying a home or investment property, now is a great time to make a move and take advantage of the all-time low rates. The money you save on a mortgage can easily be pushed into renovations, flipping, and a property management company that will set you up for long-term success and sustainability.

Are you in need of a recommendation for a reputable lender to answer your toughest mortgage questions? Contact Dona Brown; she has a vast network and years of experience to point you in the right direction. 512-721-1094.

Search for Homes Here

Property Management Services