Discover Heritage Enclave of Hobe Sound

50 Well-Appointed 3 and 4 Bedroom Townhomes in Hobe Sound, Florida

Heritage Enclave is a collection of 50 brand new 3 and 4 bedroom units priced from the $270s. Located at US1 & Heritage Boulevard in Hobe Sound, the model is open daily 12-4. Info 772-675-2268. Learn More

Eric Slifkin, a Broker Associate, is the founder of the Slifkin Team at Keller Williams Realty. Eric and his team of experienced agents serve South Florida and the Treasure Coast, including  Stuart, Port Saint Lucie, and the Palm Beaches.

What Exactly is a Counteroffer? If you make an offer on a home, and the seller rejects your offer and suggests different terms, that’s their counteroffer.

A counteroffer typically says that the seller will accept the buyer's offer subject to additional terms and/or conditions. These terms and conditions may include the sales price, the removal of certain contingencies, the good faith deposit, the inspection period ,the closing date, among others.

Eric Slifkin, a Broker Associate, is the founder of the Slifkin Team at Keller Williams Realty. Eric and his team of experienced agents serve South Florida and the Treasure Coast, including  Stuart, Port Saint Lucie, and the Palm Beaches.

Renters for a Weekend or a While: What’s the Best Use of Your Investment Property?

The residential rental market is now the fastest-growing segment of the housing market. In the United States, the demand for single-family rentals, defined as either detached homes or townhouses, has risen 30 percent in the past three years.¹ And in Canada, rental units now account for nearly one-third of the country’s homes, with particular demand for multi-family units, including apartments and condominiums.²

At the same time, the short-term or vacation rental market is also booming. The popularity of online marketplaces like Airbnb, HomeAway, and VRBO has helped the short-term rental market become one of the fastest-growing segments in the travel industry.³

Now, more than ever, there is an abundance of opportunities for real estate investors. But which path is best: leasing your property to a long-term tenant, or renting your property to travelers on a short-term basis?

In this post, we examine the differences between the two investment strategies and the benefits and limitations of each category.

WHY INVEST IN A RENTAL PROPERTY? The Top 5 Reasons

Before we delve into the differences between long-term and short-term rentals, let’s answer the question: “Why invest in a rental property at all?”

There are five key reasons investors choose to real estate over other investment vehicles:

1. Appreciation is the increase in your property’s value over time. And history has proven that over an extended period, the cost of real estate continues to rise. Recessions may still occur, but in the vast majority of markets, the value of real estate does grow over the long term.
2. Cash Flow One of the key benefits of investing in real estate is the ability to generate steady cash flow. Rental income can pay the mortgage and taxes on your investment property, as well as regular maintenance and repairs. If appropriately priced in a robust rental market, there may even be a little extra cash each month to help with your living expenses or to grow your savings. Even if you only take in enough rent to cover your costs, a rental property purchase will pay for itself over time. As you pay down the mortgage every month with your rental income, your equity will continue to increase until you own the property free and clear, leaving you with residual cash flow for years to come.
3. Hedge Against Inflation Inflation is the rate at which the general cost of goods and services rises. That means as inflation rises, the money you have sitting in a savings account will buy less tomorrow than it will today. On the other hand, the price of real estate typically matches (or often exceeds) the rate of inflation. To hedge or guard yourself against inflation, real estate can be a smart investment choice.
4. Leverage is the use of borrowed capital to increase the potential return of an investment. You can put a relatively small amount down on a property, finance the rest of the investment with a mortgage, and then profit on the entire combined value.
5. Tax Benefits Don’t overlook the tax benefits that can come with a real estate investment, as well. From deductions to depreciation to exemptions, there are many ways a real estate investment can save you money on taxes. Consult a tax professional to discuss your particular circumstances.

These are just a few of the many perks of investing in real estate. (For more detailed information, visit our previous post: Why Real Estate Investing Makes (Dollars and) Sense. But what’s the best strategy to maximize returns on your investment property? In the next section, we explore the differences between long-term and short-term rentals.

LONG-TERM (TRADITIONAL) RENTAL MARKET

When most people think of owning a rental property, they imagine buying a home and renting it out to tenants to use as their primary residence. Traditionally, investors would use their rental property to generate an additional stream of income while benefiting from the property’s long-term appreciation in value.

That steady and predictable monthly cash flow is one of the key advantages of owning a long-term rental. Plus, you don’t usually have to worry about paying the utility bills or furnishing the property—both of which are typically covered by the tenant. Add to this the fact that traditional tenants translate into less time and effort spent on day-to-day property management, and long-term rentals are an attractive option for many investors.

However, there are also limitations to long-term rentals, which often come down to your ability to control the property. Perhaps the most obvious one is that you do not get to use the home or closely monitor its upkeep (this is different from a short-term rental, which we’ll share in the next section).

Also, while you can usually generate a steady, predictable income stream with a long-term rental, you are limited in your ability to adjust rent prices based on increasing or seasonal demand. Therefore, you may end up with a lower overall return on your investment. In fact, according to data from Mashvisor, in the ten hottest real estate markets, short-term rentals produced “significantly higher rental income” than long-term rentals.⁴

SHORT-TERM (VACATION) RENTAL MARKET

Short-term rentals are often referred to as vacation rentals, as more and more travelers enjoy the benefits of staying in a home while on vacation. In fact, according to Wells Fargo, vacation rentals are steadily growing and predicted to account for 21% of the worldwide accommodations market by 2020.⁵

Investing in a short-term rental or funding your second-home purchase by renting it out can offer many benefits. If you purchase an investment property in a top travel destination or vacation spot, you can expect steady demand from travelers while taking advantage of any non-rented periods to enjoy the home yourself. In addition to greater control over the use of your property, you can also adjust your rental price around peak travel demand to maximize your returns.

But short-term rentals also have risks and drawbacks that may dissuade some investors. They require higher day-to-day property management, and owners are typically responsible for furnishing the property, upkeep, and utilities.

And while rental revenue can be higher, it can also be less predictable based on seasonal or consumer travel trends. For example, a lack of snowfall during ski season could mean fewer bookings and lower rental revenue that year.

Also, laws and limitations on short-term rentals can vary by region. And in some areas, the regulations are in flux as residents and government officials adapt to a new surge in short-term rentals. So make sure you understand any existing or proposed restrictions on rentals in the area where you want to invest.

Urban centers or suburban communities may be more resistant to short-term renters, thus more likely to pass future limitations on use. To lower your risk, you may want to consider properties in resort communities that are accustomed to travelers. We can help you assess the current regulations on short-term rentals in our area. Or, if you’re interested in investing in another market, we can refer you to a local agent who can help.

WHICH INVESTMENT STRATEGY IS RIGHT FOR YOU?

Now that you understand these two real estate investment options, how do you pick the right one for you? It’s helpful to start by clarifying your investment goals.

If your goal is to generate steady, predictable income with less time and effort spent on property management, then a long-term rental could be your best option. Also, if you prefer a less-risky investment with more reliable (but possibly lower) returns, then you may be more comfortable with a long-term rental.

On the other hand, if your goal is to purchase a vacation or second home that you’ll use, and you want to defray some (or all) of the expense, then a short-term rental may be a good option for you. Similarly, if you’re open to taking on more risk and revenue volatility for the possibility of higher investment returns, then a short-term rental may better suit your spirit as an investor.

But sometimes the decision isn’t always so clear-cut. If your goal is to purchase a future retirement home now to hedge against inflation, rising real estate prices, and interest rates, then both long- and short-term rentals could be suitable options. In this case, you’ll want to consider other factors like location, market demand, property type, and your risk tolerance.

HERE OR ELSEWHERE … WE CAN HELP

If you’re looking to make a real estate investment—whether it’s a primary residence, investment property, vacation home, or future retirement home—give us a call. We’ll help you determine the best course of action and share insights and resources to help you make an informed decision. And if your plans include buying outside of our area, we can refer you to a local agent who can help. Contact us to schedule a free consultation!

The above references an opinion and is for informational purposes only.  It is not financial advice. Consult the appropriate professionals for advice regarding your individual needs.

Sources:

1. USA Today –
   https://www.usatoday.com/story/money/personalfinance/real-estate/2017/11/11/renting-homes-overtaking-housing-market-heres-why/845474001/
2. The Globe and Mail –
   https://www.theglobeandmail.com/real-estate/the-market/article-demand-for-rental-housing-in-canada-now-outpacing-home-ownership/
3. Phocuswright –
   https://www.phocuswright.com/Travel-Research/Research-Updates/2017/US-Private-Accommodation-Market-to-Reach-36B-by-2018
4. com –
   https://www.rented.com/vacation-rental-best-practices-blog/do-long-term-rentals-or-short-term-rentals-provide-better-investment-returns/
5. Turnkey Vacation Rentals –
   https://blog.turnkeyvr.com/short-term-vs-long-term-vacation-rental-properties/

Contact Eric Slifkin to buy or sell a home on the Treasure Coast.

Eric Slifkin, a Broker Associate, is the founder of the Slifkin Team at Keller Williams Realty. Eric and his team of experienced agents serve South Florida and the Treasure Coast, including Stuart, Port Saint Lucie, and the Palm Beaches.

Maximizing the Web in Your Real Estate Search

Before selecting a real estate agent or buying a home, most consumers head to the Internet first. Researching homes and real estate agents online can get you ahead of the game when it comes to narrowing down your options. But with so many sites and sources to choose from, an online search can be exhausting…and sometimes futile. Here’s a guide to help you navigate the web when searching for a home or real estate agent. 

When searching for a real estate agent: While a referral from a trusted friend or colleague is a great way to find an agent to work with, be sure to dig deeper. Search for the suggested agents on social media sites like Facebook and Twitter and find out more about them. This will help you get a feel for who they are as a person and how they conduct business, including how they use social media to market homes. Another way to find an agent to list your home is to look at properties on the market in your area. Find homes similar to the one you are trying to sell and search for those agents online—they’ll usually have a personal website. Once you’ve narrowed down potential agents, be sure to meet with them in person and ask specific questions related to your needs. 

The online open house never closes: All major real estate brokers have websites that showcase their listings. You can search by town, price range, number of bedrooms, etc. Also, use the search tools available through major home listing portals. YouTube is also a new way to search for homes. These digital open houses give buyers a good sense of what the house looks like…and they’re open 24/7. 

Do your homework: To ensure you won't be disappointed or become emotionally invested in a new home for sale that is out of your price range, get pre-approved for a mortgage loan. The last thing you want to do is fall in love with a property and realize that you can't afford it. Online mortgage calculators can help you get a sense of what you can realistically afford. 

Source: AOL Real Estate

Contact Eric Slifkin to buy or sell a home on the Treasure Coast.

Eric Slifkin, a Broker Associate, is the founder of the Slifkin Team at Keller Williams Realty. Eric and his team of experienced agents serve South Florida and the Treasure Coast, including greater Stuart, Port Saint Lucie, and the Palm Beaches.

Last week there were over 200 open houses along the Treasure Coast. Our open house listing alert service will notify you whenever new open houses are scheduled in your selected area complete with date, time, location, property details, and photos.

Builder Closeout on Unit 102

3-Bed/2.5-Bath for $265,650

Learn More

Heritage Enclave is a new gated community of just 50 CBS-constructed townhomes. Choose from three or four bedroom floorplans with preserve or lake views, one-car garage, stainless steel appliances, granite counters, tile floors in the living areas, impact windows and more. Visit our model at the corner US1 & Heritage Blvd., Hobe Sound. Open daily 12 to 4. Call 772-675-2268 for info.

Are you thinking of buying a home but need to get your credit on track? Getting started can feel a bit daunting. After all, it can sometimes seem as if credit agencies want to keep you in the dark about how they calculate scores. Not to worry - with some diligence on your part and a little insight into the world of credit score-keeping, you can get back on track.



What is the truth about a credit score? A credit score tells lenders about your creditworthiness (how likely you are to pay back a loan based on your credit history).

When you begin a loan application your lender will obtain a specific score from the information provided in your credit reports. This is typically a FICO score, which is the standard for credit scoring that is used by 90% of top lenders.

FICO credit scores follow an algorithm first developed by the data analytics company years ago. For a while, credit scores weren't the primary force behind a credit decision, but over time the impact of a credit score became more and more critical. Most every loan program available today has a minimum credit score.

There are five characteristics of your credit history that make up your three-digit score: your payment history, account balances, the length of your credit history, the types of credit used, and how often you've applied for new credit. Credit scores will improve much more quickly by paying attention to the two categories that have the most significant impact on a score: payment history and account balances.

Payment history accounts for 35 percent of the total score. When someone makes a payment more than 30 days past the due date, scores will fall. An occasional "late pay" won't do much damage to your score, but continued payments made more than 30 days past due definitely will. Preventing late payments is key to recovering your score.

Account balances compare outstanding loan balances with credit lines and comprise 30 percent of your score. If a credit card has a $10,000 credit line and there is a $3,300 balance, scores will improve, as the ideal balance-to-limit is about one-third of the credit line. As the balance grows and approaches or exceeds the limit, scores will begin to fall.

The remaining three have relatively little impact. How long someone has used credit accounts for 15 percent of the score, but there's nothing anyone can do to improve this area other than to wait. The types of credit and credit inquiries both make up 10 percent of the score. By concentrating on payment history and account balances, scores will improve significantly over the next few months.

Eric Slifkin, a Broker Associate, is the founder of the Slifkin Team at Keller Williams Realty. Eric and his team of experienced agents serve South Florida and the Treasure Coast, including  Stuart, Port Saint Lucie, and the Palm Beaches.

Buying a home isn't easy. If you’re ready to jump off the sidelines and into the housing market, the following steps will make the home-buying process a little easier to navigate:

1. Find a reputable real esƒtate agent to help you identify the best home for you. An experienced agent will save you time, money, and stress!

2. Know your credit score. Don’t wait until you find a house to learn that your credit isn’t good enough to get the necessary mortgage. If there are any errors within your credit report, get them fixed immediately.

3. Get pre-approved. Once you find a mortgage that fits your needs, get a pre-approval letter so sellers know you’re serious. You don’t want someone else to swoop in with a bid while you’re waiting for financing.

4. Assemble a team. In addition to an agent, you should also have a lawyer, mortgage lender and home inspector on hand.

5. Don't settle! Keep searching for your dream home! Even if you have to make concessions, make sure it’s a house you can see yourself living in for a decade or more.

I can help you avoid unnecessary stress and navigate the home buying process! Message me to get started. #home #houseexpert #realestate #realtor #listreports #realestateagent

Eric Slifkin, a Broker Associate, is the founder of the Slifkin Team at Keller Williams Realty. Eric and his team of experienced agents serve South Florida and the Treasure Coast, including  Stuart, Port Saint Lucie, and the Palm Beaches.

4 Things to Avoid When Putting Your Home on the Market

So you've decided to put your home on the market. Congratulations! As you start checking things off your to-do list, it's also important to know what not to do. Here are a handful of things to avoid.

Don't over-improve. Updating the appliances or replacing that cracked cabinet in the bathroom are all great ideas. However, it's important not to over-improve or make improvements that are hyper-specific to your tastes. Make any needed fixes to your space, but don't go above and beyond—you may lose money doing so.

Don't over-decorate. Over-decorating is just as bad as over-improving. You may love the look of lace and lavender, but your potential buyer may enter your home and cringe. When prepping for sale, neutralize your decorating scheme, so it's more universally palatable.

Don't hang around. Your agent calls to let you know they will be bringing buyers by this afternoon. Great! Just make sure to leave the house before they come. Buyers want to imagine themselves in your space, not be confronted by you in your space. Get out of the house, take the kids with you, and if you can't leave for whatever reason, at least sit in the backyard. 

Don't take things personally. Real estate is a business, but buying and selling ho, they will need to replace your prized 1970s vintage shag carpet with something “more modern,” try not to raise your hackles.

Are you stressed about selling? I'm here to help - let me improve your home selling experience. Text or call me at 772-288-1765 to get started.

Schedule a call to learn more about how we help home sellers on the Treasure Coast.

Eric Slifkin, a Broker Associate, is the founder of the Slifkin Team at Keller Williams Realty. Eric and his team of experienced agents serve South Florida and the Treasure Coast, including  Stuart, Port Saint Lucie, and the Palm Beaches.

Leave a Comment

So, you’ve been thinking about putting your home on the market, but the timing never seems right. We get it; life moves fast!

The holidays will be here before you know it. Entertaining guests, traveling, and spending time with family during this season is stressful enough that you can't even fathom the thought of potential buyers walking all through your home, dealing with inspections, and navigating.

So what do you do? Should you wait another few months after the holidays to list your home? No. In fact, according to Realtor.com, the average time a house is on the market is 62 days. That means the longer you put off listing your home, the longer the sale will take to wrap up after the holidays.

Why Winter Is The Best Time To Sell

Less Competition

If you wait until spring to list like everyone else, there will be more competition. In the winter, there are fewer homes on the market, which will make your home stand out even more.

Showcase Winter Readiness

You can also use winter to your advantage when showing off your home’s features like fireplaces and hot tubs by making it cozy and warm. Selling in the winter also demonstrates that your home can handle harsh winter conditions.

Eliminate Looky-Loos

As you know, just because someone is looking at homes doesn't mean they are intent on buying. But if someone is taking the time out of their holiday break to come to see your home, chances are they're more than just looking. Although you may see fewer potential buyers come through showings and open houses, most of them will be more serious contenders.

Higher Offers

Since we are approaching the end of the year, performance reviews may bring more bonuses and financial freedom to a buyer's budget, which is excellent news for you, the seller.

If you want to sell with all these advantages in mind this winter, you may want to speed up your decision to list your home. Schedule a call to learn more about how we help home sellers on the Treasure Coast.

Leave a Comment