Katie Zarpas Blog

A real estate listing agent can make the home selling process much easier. If you are interested in selling your home, then there are two ways to do it: you can either list your home for sale yourself (by owner) or trust in a real estate listing agent to sell the home for you. The fact is, selling your home is not an easy process, and it requires a lot of market research and the implementation of marketing strategies to ensure good prospective buyers are attracted to the home.

Although the idea of saving money by selling your home yourself may seem attractive, it often becomes more time consuming and costly to do so as the home is likely to sit on the market longer or possibly sell for less than your home is truly worth. It is helpful to understand the responsibilities of a real estate listing agent to decide if hiring a listing agent is the right strategy for you.

What A Real Estate Listing Agent Does

There are certain responsibilities that a real estate listing agent has. The ultimate goal, of course, is to sell the home for the most amount of money possible and as quickly as possible, while taking away the hard work from the homeowner in the process. The following is a more in-depth look at the way a listing agent will go about ensuring the home is sold for optimal value and all necessary steps are completed during the home sale.

In-Depth Research Of Market

One of the main benefits of hiring a real estate listing agent is that they understand the local real estate market. This is particularly important when it comes to listing your home for the most appropriate price. A well-priced and well-marketed property can ensure it sells as fast as possible, limiting the number of days it stays on the market.

There are several different aspects of the market that the real estate listing agent will analyze. They will look at comparable properties in the neighborhood to get an idea of how much the home is worth. They may also do a comparative market analysis (CMA) to determine the most accurate value of the property to ensure it is listed in the proper way.

Market Property

After conducting thorough market research and determining the best price to initially list the home, the listing agent will officially list the property for sale and begin marketing the property. This is when a listing agent can really become useful as finding prospective buyers who have the right financing takes time and expertise.

A real estate listing agent has an extensive list of contacts and understands how to find prospective buyers. They are able to receive multiple offers, potentially creating competition for purchasing the home. Without an experienced real estate listings agent, there is a much greater risk of the home sitting on the market for an extended amount of time, driving down the value and appeal of the home in the process.

Efficiently Attend Home Inspections

An experienced real estate listing agent will do everything they can to ensure the home selling process goes smoothly. A necessary part of the home sale is the home inspection. A good real estate listing agent will attend the home inspection to ensure they are able to answer any questions the home inspector has, which can help clear up problems before they develop.

A good real estate listing agent may also choose to attend the home real estate appraisal so that they can answer questions the real estate appraiser has. This can avoid the appraiser knocking the appraised home value due to misunderstandings about the home features. This can ensure a smooth selling process and allow the closing to happen faster as there is less of a risk of disputes and tough negotiations during the sale.

Finalize Any Loose Ends

If you have never gone through a home sale yourself, then you may quickly become overwhelmed by all of the loose ends that have to be finalized. An experienced real estate listing agent can take care of all of the minor details that could otherwise delay the home sale. Their job is to make the process convenient for the seller and to avoid as many roadblocks as possible throughout the selling process, which ultimately allows the deal to close sooner and for optimal value.

Work With The Katie Zarpas Group

Our team helps homeowners who are interested in selling their home fast and for the best possible value through the home listing and sale process. Feel free to give us a call at 757-685-4400 or schedule an appointment if you have questions. Our experienced real estate listing agents at The Katie Zarpas Group are more than happy to answer your questions and help you make the first step toward selling your home.

Real estate is an exciting venture. Investment properties have the opportunity to bring along great growth for you in a financial sense. When searching for your perfect property, make sure to keep a few thoughts in mind. So, what is there to look for in an investment property?

Things To Keep In Mind For Investment Properties

Certain factors have the opportunity to be successful in an investment property. It’s important to take these into account when making your decision. Here is what to look for in an investment property:

Investing In The Location

When it comes to real estate, you might already be familiar with the mantra “location, location, location.” Location is everything for real estate investments and should be the primary starting point in your search for an investment property. Many considerations need to be made, and many of them boil down to if you want to be close to the property or not. Will your mind be more at ease if you can make a short drive to visit the property, or are you looking to invest in properties that you won’t be visiting on a regular basis? Are you going to be responsible for property management and maintenance, or do you intend to outsource those aspects?

The second thing to consider is what advantages the location offers you as a property owner. Is it in a good school district? Does it have easy access to interstate highways? What are the market trends for the area?

Navigating Your Finances

After you’ve decided on a location that suits your strategy, next is the big hurdle – financing. You typically will need excellent qualifications, as investment property mortgages are considered to be high risk. An alternative may be to consider an owner-occupied home, where you occupy one unit or room and rent out the others. This comes with advantages such as reduced down payments and interest rates but it isn’t the approach for everyone.

For non-owner-occupied properties, you should expect your mortgage to require a 20% down payment at minimum, with 25% being far more common. Unless you are in a position where you can pay in cash upfront, this needs to be accounted for in your financing plan. Remember that you’ll also be responsible for closing costs, and typically need 6 months of payments in reserve.

There are two approaches to financing – conventional financing and asset-based loans. Conventional financing refers to mortgages from a bank that is backed by your personal qualifications. The considerations for conventional financing of an investment property include the type of property, your credit score, employment status, assets, and other debts. While you may be able to use some of the property’s projected rental income to qualify, your current income is going to be the main factor. That means if your existing mortgage or debt uses a large portion of your gross income, it might be difficult to get conventional financing.

If a conventional loan isn’t a good fit, asset-based loans might be an option. Asset-based loans use the investment property itself as the main qualifying factor instead of the borrower’s personal qualifications. While your credit score will still help to determine your eligibility and interest rate, you do not have to worry about personal debts, income, and employment. The primary condition for approval is that the property generates sufficient cash flow to cover the mortgage payments with a reasonable cushion.

Calculate The Cost of Maintenance

Whichever approach you pick, projecting your cash flow is going to be your next significant consideration. If it costs more to own and maintain the property than the property is bringing in, then the property isn’t going to make a good investment property.

Cash flow can often be variable and you’re never going to be operating from a position of 100% certainty when projecting it, but a good rule of thumb is to set aside 15% of rental income to cover vacancy and maintenance.

Example of Good Cash Flow

• Start with the expected monthly rental income
• Subtract your mortgage payment, taxes, and insurance cost
• Subtract your property manager’s fee (if you use one)
• Subtract any recurring expenses
• Subtract your vacancy and maintenance set aside

If you have a nice cushion after your subtractions, the investment property could be a valuable asset to you.

Plan For Gap Periods

One thing that might have caught your eye is vacancy. Vacancy and other gap periods can negatively affect cash flow but are an unfortunate reality. If your cash flow is right down to the margin and you need the full monthly rental income to break into the positive you will only be able to cover
expenses when things are going perfectly. One thing investment property owners learn quickly is that things don’t always go perfectly.

There will be times that your property is vacant. Repairs or maintenance in between tenants, for one. If you are buying an investment property that already has residents with signed leases – find out the terms of those leases immediately (e.g., are they annual or month to month?) so you are not hit by any sudden unexpected gaps when you take over ownership.

Do You Need A Property Manager?

Another crucial decision you need to make is, do you want to self-manage the investment property or outsource to a property management company? Property managers typically charge between 8% and 10% of the collected rent but come with benefits such as:

• A wealth of experience that can help you to maximize rental income
• The ability to advertise and attract tenants
• Conduct background and credit checks on prospective tenants
• Collecting rent for you
• Serving as the primary contact for maintenance issues and tenant complaints
• Paying bills or utilities on your behalf

A property manager can help free up your time but at a cost. Make sure that you calculate in this cost when you are determining your cash flow projections.

Team Up With The Experts At The Katie Zarpas Group

Reach out to the real estate professionals at the Katie Zarpas Group in Virginia Beach for more information about buying your first investment property. At the Katie Zarpas Group, we help clients obtain key information about listings in Virginia Beach and the surrounding areas, including Norfolk, Chesapeake, Portsmouth, and Suffolk. We strive to constantly track local real estate market trends, which means we can help you estimate your desired investment property value. Our team can help you to identify what to look for in an investment property.

We will always put your priorities first, regardless of what you are seeking. Call the Katie Zarpas Group today at (757) 685-4400 or schedule an appointment online to learn more about our work. We look forward to discussing what to look for in an investment property, and helping you in your process!

COVID-19 has affected real estate listings and made the home selling and buying process more of a challenge. Understanding the ways in which the real estate market has changed due to stay-at-home mandates, personal health concerns and other effects of COVID-19 can help you prepare and decide if buying or selling a home during the pandemic is right for you. Working with a qualified listing agent can help you in your process, and ease any stress you may have.

The Effect Of COVID-19 In Real Estate Listings

Like almost every industry, the housing market has taken a significant hit due to COVID-19. This is due in large part to many businesses temporarily and permanently closing, financial uncertainty from high employment rates, state-ordered stay-at-home mandates and not knowing what to expect during the home buying and selling process.

There is also an inability to see the home in person because of state mandates or personal health concerns. Many prospective buyers simply prefer to wait until the COVID-19 pandemic has passed so that they can see the home before purchasing, rather than purchasing a home sight unseen.

COVID-19 has also had an impact on construction and renovation. This is of course the result of many construction crews temporarily closing due to safety concerns and a lack of construction and home decor supplies being sent from China.

Delayed Closings

There has also been an increase in delayed closings due to COVID-19. Many are not able to make it to the closing because of travel restrictions and stay-at-home orders. This has led to many closings continually getting pushed back as states wait for the number of cases to decline. Also, many buyers are not willing or able to close until after they have seen the home in person. Often, the home closing is contingent upon the buyer seeing the property.

Longer delays between the buying agreement and the home closing have also led to more cancelations. This can be damaging to a seller as it puts them back to square one if they do not have a backup plan. A real estate listing agent can help with the closing process, ensuring the deal is able to close in a timely manner. They may do this through a remote closing or by reducing the number of people required at the home closing.

Mortgage Rates

One of the few bright spots of the housing market during COVID-19 is mortgage rates, which hit an all-time low in 2020. According to Freddie Mac, the average 30-year fixed mortgage rate is at 3.03 percent, a percentage that seemed unreachable at this point in 2019. In fact, the mortgage rate in some areas reached close to 5.0 percent last year.

The lower mortgage rates are intended to encourage prospective home buyers to be more proactive in their efforts, and the idea of enjoying lower monthly payments due to the lower rates is certainly intriguing for many. There is little doubt that the mortgage rate will quickly increase once the number of COVID-19 cases decreases, especially if there is a spike in home purchases, so those who are interested in the lowest interest possible should consider purchasing now.

Also, many are taking advantage of the lower interest rates to refinance, especially by reducing the number of years they have left on the mortgage to best capitalize on the opportunity.

Luxury Homes Could See A Boost

The demand for luxury homes could see a significant increase during the pandemic. This is due in large part to the lower interest rates making luxury homes more affordable and putting more people in the financial position to purchase the home of their dreams.

In addition, there are more international purchases of U.S. luxury homes and land due to the increase in financial certainty properties inside the U.S. offer that other countries may not. This is also a mindset that many Americans have adopted as well, and capitalizing on more affordable land that is more financially resistant to pandemics and other complicated situations is an interesting approach.

In essence, COVD-19 provides a perfect storm for luxury home sellers and buyers. Buyers have an increased urgency to purchase before mortgage rates increase, making it easier to close deals for many sellers.

There are also fewer luxury homeowners selling, making the demand more limited for prospective buyers. In some instances, luxury homeowners can get away with charging higher prices due to the savings buyers will have because of lower interest rates and the increased demand for luxury homes in many areas inside the United States.

Work With An Experienced Listing Agent

Get in touch with our real estate listing team at the Katie Zarpas Group for more information about real estate listings during COVID-19. We pride ourselves on our ability to adapt and continue to list and help sell homes, regardless of any obstacles the pandemic may present. Working with a qualified listing agent can greatly improve your process, and help you stay informed along the way. Reach out by phone at (757) 685-4400 or schedule an appointment today to learn more.

Understanding a homeowners association can help you to save against costly fines. Depending on your location, associations may have different requirements for your neighborhood. Read on to learn how to easily understand homeowners associations in 2020.

What Do Homeowners Associations Do?

A homeowners association (HOA) is an organization within a condominium or gated community that is responsible for creating and enforcing rules for residents and properties. HOAs also typically charge fees for living in a community. Regulations and restrictions about what can be done with homes often vary from one neighborhood to the next.

The Foundation for Community Association Research recently reported that approximately 22-24% of the United States population resides in private communities governed by some type of HOA. IPropertyManagement.com also estimated that by the end of 2018, there were 347,000 HOAs in the U.S., comprising 26.6 million households.

Here is a guide to homeowners associations in 2020.

What Governs Homeowners Associations?

An HOA typically has a board of governors or directors who are residents of the community and who are elected to oversee and enforce all regulations. Rules are ordinarily outlined in a document known as the Declaration of Covenants, Conditions, and Restrictions (CC&Rs). These conditions can dictate structural limitations, such as the kinds of landscapes and fences permitted, or more minor choices like the type of paint used for a property. The Declaration of CC&Rs also often explains what types of penalties are assessed for violations (e.g. fees, forced compliance, and litigation).

HOAs are also often subject to federal and/or state laws. One federal law that is most relevant to HOAs is the Fair Housing Act (FHA) of 1968, which sought to curb discriminatory practices in real estate. There’s also the Americans with Disabilities Act of 1990, which forbids discrimination against disabled individuals and that affects the operations of HOAs with common elements that are open to the public.

Virginia, for example, has its own Fair Housing Law, which has discrimination protections similar to those provided by the FHA. Housing Discrimination victims are allowed to file a complaint through the state’s Department of Occupational and Regulation or HUD within one year from the date of the discriminatory action, or a private lawsuit within two years of the action in question.

Pros and Cons of HOAs

Like virtually any governing body, a homeowners association can have both benefits and disadvantages. Here are some of the pros of HOAs:

• Enforcing community rules: Without rules, chaos can easily arise.
• Protect property values: a home’s value can be significantly changed by ensuring no part of it is damaged, especially during any type of renovation.
• Offer amenities, services, and facilities: HOAs do not only enforce rules but also often provide amenities such as landscaping and swimming pool and tennis court maintenance.

Conversely, HOAs can hold many disadvantages such as:

• Fees, dues, and assessments: According to iPropertyManagement.com, approximately $95.6 billion in fees is collected annually by HOAs in the US as of 2018. Fees also increased by 32.4% between 2005 and 2015.
• Strict regulations
• Inefficient operations/management style

How to Join a Homeowners Association

In many cases, HOA members are decided via elections among community residents. However, it’s important for you to remain involved in your neighborhood, even if you do not officially sit on the board of directors. You should regularly speak out about any concerns you may have, especially if you fear your community is likely to be hit by a natural disaster such as a flood or an earthquake. You could suggest purchasing catastrophe insurance for situations such as these. Certain HOAs may offer additional coverage as a perk for ownership, in addition to snow removal, for example.

Speak with a Virginia Beach Real Estate Agent

Before entering the luxury real estate industry in 2005, Katie Zarpas worked as an assistant film director and thus acquired many valuable connections in the entertainment business. Katie has since earned several accolades, including the Hampton Roads Realtors Association’s prestigious Gold, Platinum, and Diamond awards. She has also been ranked as one of the top realtors in the country.

Reach out to the real estate professionals at the Katie Zarpas Group in Virginia Beach for more information about HOAs and how they operate. At the Katie Zarpas Group, we help clients obtain key information about listings in Virginia Beach and the surrounding areas, including Norfolk, Chesapeake, Portsmouth, and Suffolk. We strive to constantly track local real estate market trends, which means we can help you estimate your desired home’s value. We will always put your priorities first, regardless of what you are seeking. Call the Katie Zarpas Group today at (757) 685-4400 or contact us online to learn more about our work.