Archives for October 2019

The real estate interest rates scenery in 2019

interest rates

Any real estate agent should be updated when facing a potential home buyer or investor. So we’ve been working on a kind of report for you to know the forecast and last events on the real estate financing market. 

 

A lot of homeowners have recently come to us willing to refinance their mortgages, hoping to save more money on their monthly payments. That happened because the average contract fixed-rate interest for mortgages of 30-years went down to the lowest level since November of 2016, arriving at 3.93% during August. That drove to an increase of 37% in refinancing volume, which is the highest level achieved since three years ago.

 

Last July, the Federal Reserve has also lowered interest rates “by a quarter percentage point to a target range of between 2% and 2.25%”, according to Markets Insider. That means monetary policies are now empowering customers to spend more, while businesses are able to do more investing. Market application volume for mortgages had seen un upgrade of 21.7% first week in August compared to the last week of July. We have seen the impact. Homebuilding shares have been boosted by these lower interest rates, and are close to achieving the highest levels of this year. Lennar, our Miami-based homebuilder partner, has seen its stock risen by 32%. And when we talk about lower interest rates, we are describing a situation similar to late 2016. It’s now cheaper for everyone to buy and refinance their houses. Financing is now cheaper for developers, also.

 

What’s best, market watchers are predicting a new drastic drop in interest rates. This means not only homebuyers can plan ahead but also businesses that, with lower borrowing costs, can think about expanding or growing more quickly and generating bigger profits. So here’s some advice for investors to make the most of this scenery. Be sure to share it with your real estate clients.

 

5 ways to increase returns for investors in lower interest rates scenery

 

  • Consider changing your bank savings account into an online savings account, which can provide you a major interest and increase your cash account returns.
  • Do you know about preferred securities? They are hybrid investments that work similarly to stocks. As they have more risk, they also provide higher relative yields, similar to corporate bonds. 
  • Invest in real estate for leasing. This way you can diversify, creating long term income and capital appreciation. You can take advantage of low mortgage rates and access up to 70% financing if you’re foreign or 90% (commercial real estate) or 97% (residential) if you are national. Click here to prequalify.
  • Check out emerging markets stocks. While nowadays you can find stocks at bargain prices, you could be looking at a future dividend income about to grow. It’s likely at some point some of these stocks may revert.
  • Seek out high-income stocks or chase those undervalued that with a greater risk, in long-term could be providing you with also greater profits.

 

Once you’ve shared this information with your real estate clients, you won’t only be trusted but also considered as a reference when it’s time to invest. Be a realtor on-trend, stay up to date on our blog.

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Virtual Staging for Realtors

virtual staging

Did you know most of the homebuyers (and we are talking about more than 90%) are now looking for houses online? Not only they search online, but also they visit the houses in this modality. 360° tours and videos, renders and other online tools will help you close deals remotely. Among those resources to empower your sales, you’ll find virtual staging. In fact, when we are talking about foreign investors, this first step, for sure, will make the difference. 

 

Today up to 35% of real estate clients make an online offer without ever stepping for real in their future properties. Thus, you can agree with us, virtual staging is nowadays a must to continue in the market and thrive. So, how could you take advantage of this trend? How big should be your investment in this matter? What are the dos and don’ts? Let’s take a look.

 

Being accurate with multimedia

 

Photos or videos that you provide should be reflecting reality. Be aware that if you sell online and the results don’t meet your client’s expectations, the outcome will be terrible. Word of mouth spreads, but negative word of mouth is like a deadly virus for realtors. Be sure the material you’re providing is accurate.

 

Do virtual staging for vacant houses

 

The possibilities of virtual staging are endless if the house you’re working on is currently vacant. You’ll find in this way the opportunity of presenting your clients an office, a game room or a kid’s playground with just one picture from the same space. Empty of furniture spaces like the beach can also be staged as entertainment or relax areas. 

 

Take advantage of different furniture or decor trends

 

Virtually staging will not only save you money compared to traditionally furnishing the house, but also give you the chance to do changes, improvements or adding at any time. If you discover there’s a decor trend now that you find attractive, take that opportunity and just in a few hours redesign, make the arrangements you need, always taking good care of your budget and saving time.

 

Team up with your real estate client

 

Do good use of your client’s profile. Don’t forget you’re doing the virtual staging for them. So you can be proactive and arrange the house if you already know your client’s taste and expectations. Otherwise, just talk to them, ask the proper questions about what they like or dislike and show them the potential of the house you want them to buy by doing customized real staging, according to their needs and desires. 

 

Be honest with your clients

 

Last but not least, remember that what’s obvious to you, it’s not always evident to others. Make sure your clients know that what they’re seeing is virtual staging. You can consider also showing you the pre-staging photos, the original ones. This way not only you won’t get related complains but also you’ll gain trust. 

 

Working on the real estate market requires being updated and on the trend at every moment. Virtual staging is the next resource we’re pointing out as a must for realtors. Have you used it? Has it enhanced your marketing results? We’d love to hear about your experience.

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