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The number of homes sold dropped nearly 2 percent in January, compared to January 2023. Sale prices were still up.
Source: newscentermaine.com
The number of homes sold dropped nearly 2 percent in January, compared to January 2023. Sale prices were still up.
Source: newscentermaine.com
Selling your house is often one of the largest financial transactions you’ll make in your life. It can be complex and emotionally challenging, especially if it’s your first time dealing with a home sale or if the house is full of family memories.
Despite these challenges, millions of people successfully sell their homes each year. The process is well-trodden, but each sale has its unique circumstances and can come with many curveballs.
Whether you’re downsizing, upgrading, relocating, or just ready for a change, selling your house is a big step. The task might seem daunting, but remember, you’re not alone. Many resources can guide you through this process, providing advice and support along the way.
This guide aims to simplify the process and provide you with step-by-step instructions to help sell your house.
From setting your objectives to finally handing over the keys, we’ll walk you through each stage. We will address common challenges and offer expert insights to ensure you’re well-prepared for the journey ahead. Our goal is to help you sell your house at the best possible price within your desired timeline, while minimizing stress and maximizing satisfaction.
The first step in any successful real estate transaction is understanding your motivations and objectives for selling. Be clear about your goals and timeline to create a selling strategy that will get you the price you want for your home within the timeframe desired.
Your motivations for selling might be tied to lifestyle changes, financial circumstances, or relocation for work. Perhaps you’ve outgrown your current house, or maybe it’s become too big after the kids have moved out. You might need to relocate for a new job or prefer a change in scenery as you approach retirement. By identifying your reasons for selling, you’ll have a clearer idea of what you want to achieve with the sale.
Your timeline can significantly influence your selling strategy. If you’re in a rush due to reasons like a job relocation or closing on another home, you may have to price your property more competitively to attract a faster sale. However, if you have the luxury of time, you can afford to be patient and wait for an offer that matches your ideal price.
Understanding your financial situation is essential in the home-selling process. A realistic view of your finances will help you make informed decisions, particularly in setting a reasonable asking price.
Equity refers to the portion of your property that you truly “own” – it’s the difference between the current market value of your home and the remaining balance on your mortgage. Knowing your equity can give you an idea of your potential profits from the sale.
The amount left on your mortgage is another critical factor. If your outstanding balance is more than your home’s sale price, you may need to consider a short sale, which requires your lender’s approval and can affect your credit score.
Closing costs are the fees and expenses you pay to finalize your home’s sale, excluding the commission for the real estate agent. They may include title insurance, appraisal fees, and attorney fees, among other costs. These are usually about 2-5% of the purchase price. Understanding these costs is crucial as they directly impact your net proceeds from the sale.
Taking the time to clarify your selling objectives and understanding your financial position will pave the way for a more streamlined and successful home-selling experience. These factors are not just critical for setting a realistic asking price but also for aligning your home sale with your larger financial or life goals.
Once you’ve identified your selling objectives, the next step is to prepare your house for the market. A well-prepared home can catch the attention of more prospective buyers and even command a higher sale price.
Before you list your home, assess its overall condition. Some minor upgrades and necessary repairs can significantly enhance your home’s appeal, often leading to a faster sale or higher selling price.
Begin with a deep clean to ensure your home looks its best. Pay attention to often-overlooked areas, such as baseboards, window sills, and ceiling fans. If you have carpets, consider hiring a professional carpet cleaning service to remove any stains or odors. Cleanliness can significantly influence a buyer’s first impression.
Next, tackle minor upgrades and repairs that could deter potential buyers. This could include painting walls with a fresh, neutral color, fixing any plumbing or electrical issues, and ensuring all appliances are in working order. Although these tasks may seem small, they can make a big difference to potential buyers.
Staging your house involves preparing it for viewing by potential buyers. It can significantly impact how quickly your home sells and the price.
A professional stager, although an extra cost, can be a worthwhile investment. For a few hundred dollars, they can transform your space and make it appealing to as many potential buyers as possible. They use strategies like optimal furniture placement, accentuating natural light, and choosing neutral decor to make your home attractive and inviting.
Part of effective staging involves depersonalizing your home. This means removing personal items like family photos, collections, and mementos. The aim is to create a neutral space where potential buyers can easily envision themselves and their own belongings. It’s all about helping buyers picture your house as their future home.
In the competitive real estate market, first impressions count. By investing time, money and effort in staging your house for sale, you can stand out from the competition and make a great impression on prospective buyers. These preparations could translate into a quicker sale and potentially a higher price.
One of the most critical decisions in the home-selling process is determining the right asking price. Setting a competitive price can help attract more prospective buyers, shorten the time your home spends on the market, and potentially yield a higher sale price.
Choosing the right price is not just about the amount you’d like to receive. It’s also about understanding buyer psychology and local market trends. Pricing your home correctly can result in more interest, more showings, and ultimately, more offers.
A key tool for setting the right price is a Comparative Market Analysis (CMA). A CMA provides information about recent home sales in your area, adjusted for differences in features and conditions, giving you a good idea of what buyers might be willing to pay for your home.
A great real estate agent can provide an accurate and comprehensive CMA. They have the experience and local market knowledge to understand which homes are truly comparable to yours and how various features and upgrades impact pricing.
Comparable sales, or “comps,” are recent home sales in your area that are similar to your property in size, condition, and features. Your real estate agent will look at these comps, adjust for differences, and use the information to guide you towards a fair and attractive list price.
Every home is unique, and its features and condition will impact its value. Your real estate agent will consider these factors when setting your home’s list price. For example, if your home has a new roof or a remodeled kitchen, it might command a higher price compared to a similar home without these upgrades.
Setting the right price is both an art and a science. It requires an understanding of the local real estate market, an evaluation of comparable sales, and an assessment of your home’s unique features. By enlisting the help of a great real estate agent and leveraging their expertise, you can set a competitive price that will attract serious buyers and maximize your profits.
Once your house is ready for sale and priced right, the next step is to get the word out to prospective buyers. Effective marketing can attract more interest and lead to quicker, more competitive offers.
Professional photography plays a crucial role in marketing your house. High-quality photos can showcase your home’s best features and give potential buyers a good first impression. Homes listed with professional photos tend to receive more views online, which can lead to faster sales and often at higher prices.
A well-written listing description can spark interest and invite potential buyers to learn more. Highlight your home’s unique features, recent upgrades, and what makes it special. Remember, you’re not just selling a property, you’re selling a lifestyle. Allow your real estate agent to offer feedback and help you create an enticing, optimized listing that will also show up in search results when people are looking for a home like yours.
Open houses and private showings are opportunities for potential buyers to experience your home in person. Be flexible with your schedule and make your house available for viewing as often as you can. The more people who walk through your door, the better your chances of receiving an offer.
Marketing a house involves a significant time commitment and a specific set of skills. This is where a good real estate agent comes into play.
A good real estate agent can list your property on the Multiple Listing Service (MLS), a database of homes for sale that’s used by real estate professionals. An MLS listing can increase your home’s visibility, attracting other real estate agents and their clients.
Choose a real estate agent with a proven track record of sales in your area. Their experience and local market knowledge can be invaluable in promoting your home effectively and attracting serious buyers.
In a crowded real estate market, standing out is key. By leveraging professional photography, crafting a compelling listing description, and utilizing the expertise of a good real estate agent, you can market your home effectively, attracting more potential buyers and increasing your chances of a successful sale.
Once your marketing efforts start paying off and offers begin to come in, it’s time to shift focus to negotiation. The goal here is to achieve the best possible terms that align with your selling objectives.
When you receive an offer, it’s essential to look beyond the offered price. While the highest offer might seem the most appealing, it’s not always the best choice.
Understanding where the buyer’s financing comes from is important. Offers from buyers who are pre-approved by a well-known lender may carry less risk than those from buyers who are not pre-approved or who are using a less established lender.
The size of the buyer’s down payment can indicate their financial stability. A larger down payment may suggest that the buyer has solid finances and is serious about purchasing your home.
A buyer’s timeline can be just as important as their offered price. A qualified buyer who can close quickly might be more attractive than a higher offer that’s contingent on selling a current house.
Receiving multiple offers can be exciting, but it can also be overwhelming. Your real estate agent can help you with this process.
Your real estate agent’s experience can be invaluable in this situation. They can guide you through your options, help you compare offers side by side, and give advice based on their understanding of the current real estate market and the specifics of each offer.
When reviewing multiple offers, it’s important to consider your own needs and priorities. For example, if you need to sell quickly, you might prioritize a buyer who can close sooner, even if their offer is not the highest.
Negotiating and accepting offers can be a complex part of the selling process. It’s not just about accepting the highest offer, but understanding the nuances of each proposal and making the best decision for your circumstances. With the right real estate agent by your side, you can handle this process confidently and successfully.
After you’ve accepted an offer, the next step is to finalize the transaction. The closing process involves several stages, including a home inspection, title search, potential repair negotiations, and final paperwork signing. Here’s what to expect:
The due diligence period allows the buyer to further investigate the property after their offer has been accepted. During this time, the buyer’s agent will arrange for a home inspection.
A professional home inspector will thoroughly examine your property and generate an inspection report. This document details the condition of the house and outlines any potential issues, from minor maintenance concerns to significant structural problems.
If the inspection report reveals necessary repairs, there may be further negotiations. Buyers might ask you to handle the repairs, reduce the sale price, or offer a credit at closing to cover the repair costs.
As part of the home buying process, the buyer’s lender will work with a title company to conduct a title search. This ensures the house is free from liens or claims and that you have a clear title to transfer to the new owners.
Buyers might also negotiate for you to pay for title insurance as part of the closing costs. Title insurance protects the buyer and their lender from future property ownership claims, unexpected liens, or undisclosed property heirs.
The last step in the home sale process is the closing meeting. Here, you’ll sign the final paperwork, which includes key documents such as:
This document transfers the ownership of personal property (like appliances or furniture) included in the home sale.
This legal document transfers ownership of the property from you, the seller, to the buyer.
The closing process involves many legal documents. These might be prepared by a real estate attorney or real estate brokerage to ensure everything is in order.
Closing the sale of your house can be a complex process. However, understanding each step can help you proceed with confidence and reach a successful conclusion to your home sale journey.
Even after the final paperwork has been signed, and the new owners have the keys, there are a few additional factors to consider. The sale of your house doesn’t just end at the closing table. Let’s delve into these post-sale considerations.
Selling your house can have significant tax implications. The application of taxes largely depends on the profit you make from the sale and how long you’ve lived in the house.
If the house was your primary residence for at least two of the last five years before selling, you might qualify for a capital gains tax exemption. This can significantly reduce your tax liability.
However, tax laws can be complex, and every situation is unique. Consult with a tax professional or a certified public accountant to fully understand the potential tax impacts. They can provide guidance tailored to your specific circumstances.
Moving to your new home involves logistical and financial considerations. Plan ahead for moving costs, including professional movers, moving supplies, and potential temporary housing.
It’s wise to keep a comprehensive record of all home sale-related expenses. This includes real estate agent commissions, home improvements made before the sale, and any fees or costs associated with closing. These records can be crucial for your future tax returns or financial planning.
Some of your moving costs may be tax-deductible if you or a member of your household is in the military, and you are moving due to a military order. Previously, moving costs were tax-deductible for many people who were relocating due to a job. After 2025, these deductions may return.
Selling your house is a significant event, and educating consumers about the process can reduce stress and result in a better outcome. By preparing your home, pricing it right, and working with a competent real estate agent, you can complete the transaction smoothly and efficiently.
The selling process might seem overwhelming, but with thorough preparation and the right team on your side, it can be an exciting time. Remember, every house can sell, it just requires the right strategy, a competitive price, and a bit of patience.
If your house isn’t attracting buyers, various factors could be at play. The asking price may be too high, marketing efforts might be insufficient, or the house’s condition could be deterring potential buyers. Consult with your real estate agent to pinpoint potential problems and devise solutions. You may need to reduce the price, enhance your marketing strategy, or invest in necessary home improvements.
Yes, selling your house yourself is an option. This is known as “For Sale By Owner” (FSBO). However, selling a house involves complex tasks like pricing, marketing, negotiating, and handling legal paperwork. Real estate agents possess the expertise and experience to deal with these challenges. If you opt for FSBO, be prepared for a significant time commitment and be ready to handle these tasks yourself.
The timeline for selling a house can vary greatly and depends on numerous factors, such as local market conditions, the home’s condition and price, and even the time of year. On average, it can take anywhere from a few days to a few months. Your real estate agent can give you a better estimate based on local trends and your specific situation.
A seller’s market occurs when the demand for homes exceeds the current supply. This often results in homes selling more quickly and at higher prices. If you’re selling your house in a seller’s market, it can be an advantage as you may get multiple offers and a higher sale price.
Whether to make repairs before selling your house often depends on the type and extent of the repairs and the overall condition of your house. Small repairs and improvements, like painting or fixing leaky faucets, can make a good impression on buyers. If your home has more more substantial issues, discuss the repairs with your real estate agent to weigh the cost against the potential return on investment.
Source: crediful.com
U.S. new-home construction sank at the start of the year by the most since the onset of the pandemic, indicating the recovery in the housing market will be gradual as many buyers await a further decline in mortgage rates.
Residential starts decreased 14.8% last month to a 1.3 million annualized rate, after an upward revision to the prior month, government data showed Friday. Multifamily home construction plummeted by more than 35% after surging in the prior month, while single-family groundbreakings also slowed.
The headline figure — which was lower than all estimates in a Bloomberg survey of economists — was the slowest pace in five months.
“The monthly housing starts numbers are extremely noisy and prone to revisions, but the bigger picture is that single-family starts are trending higher, lagging the drop in mortgage rates towards the end of last year, while multi-family starts are trending lower, lagging the rollover in rent inflation,” Kieran Clancy, senior U.S. economist at Pantheon Macroeconomics, said in a note.
Building permits, a proxy for future construction, decreased to a 1.5 million rate. Permits for one-family homes edged higher after rising consistently throughout 2023, and multifamily authorizations fell 7.9%, the most since September.
The government’s report showed housing starts fell in all four of the nation’s regions, led by the Midwest and Northeast. The number of single-family homes completed plunged to the lowest level since May 2020.
The housing market’s recovery has struggled to maintain momentum as mortgage rates are still elevated near 7%. However, the nation’s builders have been gaining confidence in recent months on expectations that a further decline in borrowing costs will boost demand.
So far, builders have enjoyed limited competition from existing homes for sale. Homes available on the resale market are well below pre-pandemic levels as most owners remain reluctant to give up mortgages locked in at much cheaper rates.
At the same time, the inventory of new houses for sale remains elevated and suggests builders may be cautious about beginning new projects.
The National Association of Realtors will give a glimpse of the nation’s resale market Feb. 22, when it releases existing-home sales figures for January.
A separate report Friday showed prices paid to US producers rose in January by more than forecast, highlighting the sticky nature of inflation.
Source: nationalmortgagenews.com
Looking for a real estate side hustle? Whether you are looking for passive income ideas or if you are looking for a part-time job (or more!), there are many different real estate side hustles. I have done a few different real estate side gigs, and I know many people who have side hustles in this…
Looking for a real estate side hustle?
Whether you are looking for passive income ideas or if you are looking for a part-time job (or more!), there are many different real estate side hustles.
I have done a few different real estate side gigs, and I know many people who have side hustles in this area as well. To get started in real estate, you don’t have to spend a lot of money – there are several real estate side gigs that can be started even if you are brand new or are on a budget.
Here’s a quick summary of some of the different best real estate side hustles:
Below, you will read the full list and learn more about each one.
Flipping houses can be a good real estate side hustle if you like real estate and enjoy fixing things up.
When you flip houses, you’re basically buying homes, making them better with repairs and upgrades, and then selling them to make more money.
The first thing to do for a successful house flip is to find a property that can be made better, such as by looking for homes in neighborhoods that are getting better or have room to grow. Think about things like where it is, what the market is like, and the condition of the property.
Before putting money into anything, it’s important to carefully look at the finances. You’ll want to figure out how much it will cost to buy, fix, and keep the property, and think about things like the cost of materials, paying workers, getting a loan, and the costs while you’re fixing things.
To flip a house well, you need to make smart changes that make the property better, without spending too much, by concentrating on important areas like the kitchen and bathrooms, and fixing any big problems with the structure or safety.
Recommended reading: 10 Best Books on Flipping Houses To Make Money
Real Estate Investment Trusts (REITs) are companies that own, operate, or finance income-generating real estate. They are a way for you to invest in real estate without directly managing or owning properties.
An REIT is like a company that owns and takes care of real estate that makes money. They sell shares of this company to people, kind of like how stocks work.
When you invest in REITs, you can earn money from the real estate world without actually owning any property. So, if you don’t want to deal with being a landlord, this could be a good option. It’s way less work than owning property and handling it yourself.
You can even spread out your money and invest in different kinds of properties with REITs, like houses, offices, factories, and stores.
Getting a roommate in your home, whether that be a full-time roommate or renting out an extra room in your home short-term on Airbnb, can be a great real estate side hustle that doesn’t require very much work from you.
The earnings you can make from having a roommate depend on things like:
To find a roommate, you can share about it on your own Facebook page, put up an ad on sites like Craigslist, or make a rental listing on Airbnb. There are lots of places where you can let people know you’re looking for a roommate.
I have had many roommates in the past when I was younger and had a home with spare bedrooms. I would rent them out to long-term renters and people that we personally knew (such as friends and my sister).
Recommended reading: Tips For Renting A Room In Your House.
Turning your property into an Airbnb or other short-term rental can be a way to generate extra income. This is when you rent out your space, whether a full house, an apartment, or just a room, to travelers for short stays.
Before starting your Airbnb side hustle, be sure to:
The amount you can earn can vary, with some hosts making around $5,000 to $10,000 a month or more, but this depends on factors such as location, rental type, and occupancy rates. Always plan for occupancy ebbs and flows – it’s part of the short-term rental business.
If you’ve ever looked at a house listing and thought that the pictures looked awful, then this may be the real estate side hustle for you.
Real estate agents many times hire out for the photography side of selling a house, as they know and understand how important good pictures are.
Real estate photography is all about taking pictures of houses and spaces to grab the attention of people who might want to buy them. Real estate photographers might take pictures of the outside of a house, the backyard, the living room, attic, bathroom, and more.
You can start with the equipment you likely already have, like your smartphone, which can work well because phones these days have great cameras.
How you show a property can really impact a client’s chance of selling it. Your photos are not just pictures; they’re an important part of how the property gets advertised.
As you continue with this real estate side hustle, you might think about getting better equipment (like a real camera!), but for now, practice paying attention to details and getting better at taking pictures.
If you’re thinking about doing something extra to earn money in real estate, photography could be a great choice.
Recommended reading: 18 Ways You Can Get Paid To Take Pictures
Drone pilots sell real estate photography services to help real estate agents showcase the properties they are selling.
When property listings include pictures from various angles and heights, it gives a different perspective compared to regular photos. This helps show aspects of real estate that traditional pictures might miss.
When you sell property photography services using your drone, you’re providing a valuable service to real estate companies that want to stand out in a crowded housing market.
Homes are increasingly being sold using drone photos, and it’s understandable because they can showcase the surroundings of a home. Also, potential home buyers can see the entire property and house through a drone picture, giving them a better understanding of what the home includes.
Recommended reading: How To Make Money With A Drone
A long-term rental is when you rent out a property for a long amount of time, usually six months to a year or even longer. An example would be renting out an apartment or house to a family to live in full-time.
Long-term rentals are different from short-term rentals like vacation homes or Airbnb listings. They are meant for people or families looking for a longer place to live.
A benefit of long-term rentals is the reliable and steady income they can give you. When you rent your property to tenants for an extended period, you set up a regular cash flow of rental payments. This stability can be especially nice for people who are looking for a dependable source of passive income.
Plus, it’s usually less work than a short-term rental, because you don’t have to clean the home every few days or find new people to rent out to.
Recommended reading: How This 34 Year Old Owns 7 Rental Homes
If you want to grow wealth through real estate, the buy-and-hold strategy is a way to achieve lasting growth. This means buying a property and keeping it for an extended period, benefiting from both its increasing value over time and the rental income it makes you over the years.
Some positives to think about with a buy-and-hold real estate side hustle include:
The buy-and-hold strategy requires patience and a willingness to handle market changes. It’s a long-term approach, not a quick one, but if you stay persistent, you can create an investment portfolio for future financial stability.
If you want to get more into the real estate world without becoming an agent or broker, becoming a notary public can be a way to make extra money.
Many documents, including deeds, mortgages, and power of attorney, require notarization to be legally binding.
With a notarization license, you can provide an important service required for different real estate transactions.
Notaries are important because they help make sure that the people signing documents are who they claim to be to prevent fraud.
Rental arbitrage is a way to make extra money in real estate without owning a property. You rent a place for a long time and then sublease it as a short-term rental using platforms like Airbnb.
Here’s how to get started:
Potential Benefits | Considerations |
+ Strong cash flow potential | – Initial setup and furnishing cost |
+ Low startup costs compared to buying | – Dependence on short-term rental market stability |
Making money in rental arbitrage comes from the difference between the cost of the long-term lease and the income from short-term rentals. The bigger the gap, the more potential for profit. But remember to factor in the expenses of running the rentals, like cleaning and maintenance costs.
House hacking is a strategic approach to real estate where you purchase a property with multiple units and live in one unit while renting out the others. This is a side hustle because it can help offset your living expenses through the rental income.
House hacking can be an easy starting point if you want to dip your toes into real estate investing with the added perk of reducing your personal living expenses.
Back when we were living in a traditional house, we house hacked for a little while and had a few different roommates live with us. The monthly rent we collected allowed us to lower our house payments and put more money in savings.
We house hacked with our first house, and it was really great for us. Being able to set more money aside even helped me get ready to quit my job to become a full-time blogger.
If you are looking for a good book on the subject of house hacking, then I recommend reading The House Hacking Strategy: How to Use Your Home to Achieve Financial Freedom by Craig Curelop.
Recommended reading: What Is House Hacking & How To Live For Free
A real estate agent is a person who helps people, like you and me, find real estate to buy or sell. They usually earn their income through a commission, which is a percentage of the property’s sale price.
To become a real estate agent and start this real estate career, you only need a high school diploma and a professional license. As of 2021, the median pay, according to the U.S. Bureau of Labor Statistics, is $23.45 per hour, or $48,770 per year.
And, there are tons of real estate agents who make a lot more money than this.
If you want to learn how to make extra money in real estate, then crowdfunding and peer-to-peer lending are areas to look into.
Crowdfunding platforms allow you to invest in real estate deals with a smaller amount of money compared to purchasing property outright. This can provide you with passive income through rental returns or potential property value appreciation.
Peer-to-peer lending platforms enable you to lend money directly to borrowers. You can potentially earn higher returns compared to traditional savings accounts, but there is always the risk of a borrower not repaying the loan.
Both crowdfunding and peer-to-peer lending utilize technology to connect investors with individuals seeking funding.
Bird dogging in real estate can be a side hustle where you help find potentially profitable properties for investors. Your skill in spotting undervalued or distressed properties is important.
Here’s what you usually need to do:
Typically, you’ll be on the lookout for foreclosures, bank-owned properties, and distressed homes due for a quick sale.
As a bird dog, your compensation usually comes from a referral fee after the investor decides to move forward with your find. Importantly, to perform this role, you don’t necessarily need any initial capital, just the time and skill to identify promising investment opportunities.
General contractors handle the day-to-day activities on construction sites, overseeing tasks from residential remodels to constructing new homes.
This is typically more of a full-time job, but this can sometimes be done as a real estate side hustle.
As a general contractor, you can choose projects that match your schedule and interests, providing flexibility. Despite the responsibilities, this role allows you to play a central role in turning plans into actual buildings, giving you the potential to make extra money.
Getting involved in raw land flipping is when a person finds and buys undeveloped land to sell later at a profit.
The main benefits include a lower initial investment and less complexity compared to traditional real estate investments, as it doesn’t involve renovation or improvements. There are no buildings, instead it may be a lot or acres of land.
Here’s a step-by-step guide on how to start:
If you have unused land or space in your home, renting it out for storage space can be an easy way to make passive income.
People have a lot of stuff, and they will pay you to store their stuff in your unused spaces.
You can sell storage solutions for vehicles, boats, personal belongings, and more. You can rent out your parking space, closet, basement, attic storage, and more.
A site where you can list your storage space is called Neighbor and you can earn $100 to $400+ each month. This depends on the demand in your area and the type of storage space you are renting out.
Recommended reading: Neighbor Review: Make Money Renting Your Storage Space
A property manager side hustle can be a great way to make extra money.
A property manager is a real estate professional who finds and oversees tenants, collects rent, and handles repairs and maintenance activities. It’s a side hustle that property owners pay for because they may not have the time or skills to effectively manage their own property.
Property managers can manage long-term rentals like apartments, short-term rentals like Airbnbs, and even commercial spaces as well.
I have a friend who is a property manager on the side of his full-time construction job – he manages many different types of properties, from second homes to vacation rentals to someone simply being out of town. He checks on their properties to make sure that everything is running smoothly.
If you’re passionate about real estate and design, starting a side hustle as a home stager could be profitable for you. As a home stager, your job is to improve the appearance of a home before it’s listed for sale.
This often results in faster sales and higher prices, making your service valuable to sellers.
You can start by staging homes for friends or family, if possible, to build a portfolio. Before and after photos are powerful tools to showcase your work.
You can even provide consultations to homeowners who prefer to do the actual staging themselves. In such cases, your design style can be a more budget-friendly option for a do-it-yourself homeowner.
We recently bought a house, and our home inspector was actually a home inspector on the side – this was his real estate side hustle! I think he was a city inspector (or something similar) full-time, so he was very knowledgeable in the area.
Home inspection as a side job can be a strategic move if you’re interested in real estate. This job allows for flexibility since you can set your hours, such as by completing home inspections on the weekends or before or after your day job.
You’ll need to invest in proper training and get licensed, which is a process that can be completed relatively quickly.
The responsibilities of a home inspector include:
Real estate appraisers determine the fair market value of a property, and this process is important in transactions, such as home sales and refinances.
Appraisers assess property values by taking notes on unique characteristics and comparing them with similar properties that have sold recently.
They then prepare reports, detailing findings and providing a valuation that banks and other institutions depend on for loans.
Real estate wholesalers are middlemen who find properties under market value, contract them with the seller, and then sell the contract to a buyer, often an investor. Their profit comes from the difference between the contracted price with the seller and the amount the buyer pays.
Here is a quick summary of what a wholesale real estate side hustle is:
By becoming skilled at finding good deals and building connections with trustworthy investors, real estate wholesaling can become a profitable real estate side hustle.
Starting a real estate blog (or even a real estate YouTube channel or social media account!) can be a good way to make extra money without having to spend a lot of money.
With a real estate blog, you can write about local market insights, home buying and home selling tips, property investment strategies, home improvement and DIY projects, and more.
I have been a blogger for years, and I really love it. I am able to create my own schedule, decide how I make money online, travel whenever I want, and more. And, it all started on the side of my day job – so I definitely think that a real estate blog can be started as a side hustle.
Learn more at How To Start A Blog FREE Course.
Below are answers to common questions about real estate side hustles.
Yes, real estate can be a lucrative side hustle. Many people do real estate activities on a part-time basis, which can include short-term rentals, getting a roommate, and more, with lower time commitments.
Real estate as a side hustle can be worth it if you are looking for more income streams and have an interest in the housing market or real estate. As you probably noticed above, there are many different kinds of side hustles, so the amount of money you can earn or the amount of time you will spend will just depend on the gig you choose.
Realtors can make extra money by managing rental properties, taking part in real estate crowdfunding, selling real estate photography services, and more.
Yes, real estate can be a good side hustle for teachers. There are many options that may work for a teacher.
For example, some teachers work as real estate agents on the side. This is possible because you can handle listing and selling homes during weekends, breaks, evenings, and over the summer. However, keep in mind that selling homes might pose challenges, as clients may require your full attention during the day, which could clash with your teaching commitments.
You can find more ideas at 36 Best Side Jobs for Teachers To Make Extra Money.
Depending on the side hustle, certain licenses like a real estate license may be required. For example, to become a real estate agent or home inspector, you’ll need a specific license. However, if you’re looking into just getting a roommate, then you may not need a license. It all just depends on the real estate side gig you are interested in.
As you learned above, you don’t need to personally buy or own real estate in order to make money in real estate. You can invest in REITs, become a notary for real estate transactions, include affiliate marketing for real estate products on a blog, and more.
I hope you enjoyed this article about real estate side hustles.
Picking the right side hustle gig in real estate might feel overwhelming because there are many choices.
Some people might like jobs where you have to do more, like fixing up houses or taking care of Airbnb rentals. Others might prefer making money without doing much, like through REITs or renting out a spare room.
Whatever you’re into or however much money you have to invest, there are probably real estate side business ideas that fit with what you have and what you want to achieve.
What do you think is the best real estate side hustle?
Recommended reading:
Source: makingsenseofcents.com
Average mortgage rates climbed appreciably yesterday, taking them to their highest level in a couple of months. Two different inflation reports were behind last week’s damage.
Mortgage rates might move a little lower next week. That is more of a hope than an expectation. And I’m basing it on nothing more than that little is scheduled for the next seven days, and markets might decide they went too far on Friday. Such delayed reactions happen quite often after sharp movements.
Markets are closed next Monday for the Presidents’ Day holiday. And this should mean mortgage rates won’t move that day. So, the usual daily edition of this report won’t appear.
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Program | Mortgage Rate | APR* | Change |
---|---|---|---|
Conventional 30-year fixed | 7.31% | 7.32% | +0.06 |
Conventional 15-year fixed | 6.61% | 6.64% | +0.02 |
Conventional 20-year fixed | 7.16% | 7.19% | +0.09 |
Conventional 10-year fixed | 6.49% | 6.52% | +0.06 |
30-year fixed FHA | 6.52% | 7.2% | +0.07 |
30-year fixed VA | 6.62% | 6.73% | -0.03 |
5/1 ARM Conventional | 6.15% | 7.33% | Unchanged |
Rates are provided by our partner network, and may not reflect the market. Your rate might be different. Click here for a personalized rate quote. See our rate assumptions See our rate assumptions here. |
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I think there is a strong possibility that this week’s poor inflation reports have delayed my hoped-for downward trend in mortgage rates. And we now may have to wait for it to fully establish itself until May, June or even later.
This is beyond disappointing and means I’ve changed my personal rate lock recommendations to:
However, with so much uncertainty at the moment, your instincts could easily turn out to be as good as mine — or better. So let your gut and your own tolerance for risk help guide you.
Both this week’s consequential inflation reports showed prices rising more quickly than markets were expecting. And mortgage rates moved higher in response.
That was partly because the bond investors who largely determine mortgage rates hate inflation. But it’s also because markets know that higher prices are likely to delay the Federal Reserve’s first cut in general interest rates and may mean fewer subsequent cuts this year.
Mortgage rates probably won’t move lower in a sustained way until Wall Street is confident that the Fed is set to cut general interest rates imminently. And we may well now have to wait until the summer for that level of confidence.
Of course, I can’t guarantee that mortgage rates will fall at all this year. But I think improvements in the second half of this year are currently the most likely scenario for 2024.
We’ve had enough excitement recently and are due a dull week. And, sure enough, we’re about to get one.
The only day on which reports are likely to move mortgage rates is Thursday. And that’s just a couple of February purchasing managers’ indexes (PMIs) from S&P.
PMIs certainly can affect mortgage rates, though rarely appreciably. And I’ll be shocked if next week’s reports more than tweak them.
The only other reports next week are leading economic indicators on Tuesday, and initial weekly jobless claims and existing home sales, both on Thursday. Again, the market that determines mortgage rates typically shrugs these off.
The Fed is scheduled to release the minutes of the last meeting of its rate-setting committee next Wednesday afternoon. We already know a lot of what was said from the news conference that was hosted by Fed Chair Jerome Powell immediately after the meeting. And much has changed since then, meaning the minutes have already been overtaken by events.
But investors always pore over these minutes in the hope of gleaning some new insights. And mortgage rates may move if they find anything actionable. I doubt they will, but let’s hope that anything they do uncover pushes those rates lower.
Seven senior Fed officials have speaking engagements next week. And their remarks have the potential to affect mortgage rates.
Whether their speeches are good or bad for those rates will depend on what they say. Ideally, we’d like most of them to talk up a May cut in general interest rates. But that may be wishful thinking.
Besides economic reports and Fed activity, our best hope for lower mortgage rates over the next seven days is a calming in market sentiment. I’m hoping investors will reflect on the current position and feel they overreacted to last week’s inflation reports. Such bounce downs are common after sharp rises but far from inevitable.
See above for details about the more important economic reports next week.
In the following list of next week’s reports, only those in bold typically have the potential to affect mortgage rates appreciably. The others probably won’t have much impact unless they contain shockingly good or bad data.
We’re in for a quiet week for economic reports. But mortgage rates could still move on any day except Monday.
Time to make a move? Let us find the right mortgage for you
Mortgage rates might edge lower next week. I think the chances of that are better than further rises. But only slightly better. So, don’t bank on anything.
A bond market generally determines mortgage and refinance rates. It’s the one where trading in mortgage-backed securities takes place.
And that’s highly dependent on the economy. So mortgage rates tend to be high when things are going well and low when the economy’s in trouble. But inflation rates can undermine those tendencies.
But you play a big part in determining your own mortgage rate in five ways. And you can affect it significantly by:
Time spent getting these ducks in a row can see you winning lower rates.
Be sure to count all your forthcoming homeownership costs when you’re working out how big a mortgage you can afford. So, focus on something called you “PITI.” That stands for:
Our mortgage calculator can help with these.
Depending on your type of mortgage and the size of your down payment, you may have to pay mortgage insurance, too. And that can easily run into three figures every month.
But there are other potential costs. So, you’ll have to pay homeowners association dues if you choose to live somewhere with an HOA. And, wherever you live, you should expect repairs and maintenance costs. There’s no landlord to call when things go wrong!
Finally, you’ll find it hard to forget closing costs. You can see those reflected in the annual percentage rate (APR) that lenders will quote you. Because that effectively spreads them out over your loan’s term, making that rate higher than your straight mortgage rate.
But you may be able to get help with those closing costs and your down payment, especially if you’re a first-time buyer. Read:
Down payment assistance programs in every state for 2023
Mortgage rate methodology
The Mortgage Reports receives rates based on selected criteria from multiple lending partners each day. We arrive at an average rate and APR for each loan type to display in our chart. Because we average an array of rates, it gives you a better idea of what you might find in the marketplace. Furthermore, we average rates for the same loan types. For example, FHA fixed with FHA fixed. The result is a good snapshot of daily rates and how they change over time.
Source: themortgagereports.com
The 10-year yield is the key for housing in 2024. In my 2024 forecast, I put the 10-year yield range between 3.21%-4.25%, with a critical line in the sand at 3.37%. If the economic data stays firm, we shouldn’t break below 3.21%, but if the labor data gets weaker, that line in the sand — which I call the Gandalf line, as in “you shall not pass” — will be tested.
This 10-year yield range translates to mortgage rates between 5.75%-7.25%, but this assumes spreads are still bad. The spreads have been improving this year so much that if we hit 4.25% on the 10-year yield, we still won’t see 7.25% in mortgage rates. As we saw last week, I already got this wrong in 2024 because we got above 4.25% on the 10-year yield and peak mortgage rate pricing was 7.14%. This means the spreads are acting better in 2024 than I had anticipated.
We are approaching a critical technical level on the 10-year yield that can cause market drama for mortgage rates. For those who have followed my Instagram story videos for over a year, the essential level of 4.34% is getting close to being tested again. If we break above this level, bond traders can sell bonds and take the 10-year yields much higher if the Fed doesn’t step in.
The Fed has said they don’t want this to happen because policy would be too restrictive, but short-term bond traders don’t care. It was good to see Fed Governor Waller try to push back on the recent move in yields last week, but playing with fire here is not the best thing for the Fed. We have bounced from the 3.80% area twice, once in late 2023 and early 2024. This year we have mostly stayed between 3.80%-4.25% — this isn’t surprising, especially with low jobless claims data.
Jobless claims data, to me, is the most critical data line for rates to go lower in 2024, and it’s been firm so far this year. However, the 10-year yield above 4.34% is not part of the 2024 forecast, and if that happens, look again for Fed members to try to talk the bond market down again if this escalates to a 5% 10-year yield and 8% mortgage rates. The chart below looks at the 10-year yield, and the horizontal lines show why 3.80% and 4.34% are key levels, especially when looking at the downtrend from 5%.
The best part of 2024 for me is watching housing inventory grow year-over-year. As we can see below, we are more than double the lows we saw in March of 2022, when I had already deemed the housing market savagely unhealthy. We should see the seasonal bottom soon and then the traditional increase in active inventory to match the growth in new listings data. This also assumes that new listing data stays on its path for growth year over year.
Here is a look at last week:
New listings data saw a week-to-week decline, but it is still up year over year. Mortgage rates have been increasing lately, and I am always mindful that some people will not list their homes to sell and buy another one if rates jump on them. Last year, the data was very steady, even with mortgage rates heading toward 8%. However, 2023 was the lowest new listings data pool ever, which was an unhealthy outcome.
Weekly new listing data for the last week over the previous several years:
Every year, one-third of all homes take a price cut before selling — this is a traditional housing activity that happens every year. However, this data can move stronger in either direction when mortgage rates rise or fall aggressively.
The year-over-year price data has been stabilizing since Nov. 9, 2022. Even with 8% rates last year, the data was negative year over year and we are still showing a decline year over year. However, the gap is narrowing, and the seasonal inventory increase will happen soon. Here are the price cut percentages for last week over the last several years:
Higher mortgage rates are already impacting the purchase application data with three straight negative weekly prints, and rates went higher again last week. Now, while home sales aren’t crashing and we will see a bounce in sales in the following existing home sales report, the forward-looking data isn’t showing growth. As I have stated time and time again, the Fed and the government have a COVID-19 housing economy policy, and keeping sales depressed is in their interest, something I talked about last year on CNBC.
Since November of 2023, we have had eight positive and three negative prints after making holiday adjustments. Year to date, we have had two positive prints versus three negative prints. I know some people have said the last two weeks show positive weekly data, but they are looking at the unadjusted numbers weekly data; we don’t count that.
The week ahead: Existing home sales, jobless claims and Fed talking points
This week we will have the existing home sales report and the leading economic index. We will see a bounce in existing home sales, but it won’t be like in 2023, when sales rose to 4.55 million. Fed Governor Michelle Bowman might come out with some absolute hawkish statements, so keep an eye out on Wednesday when she talks. Of course, my crucial data line is jobless claims data, which comes out every Thursday morning.
Source: housingwire.com
Even though the National Association of Home Builders (NAHB) reported the third consecutive increase in its measure of home builder confidence, actual residential construction activity fell. The residential construction report for January shows both the rate of permitting and housing starts declined from the previous month, the second straight loss for starts.
The U.S. Census Bureau and the Department of Housing and Urban Development said construction began on residential properties at a seasonally adjusted annual rate of 1.331 million units. This was down 14.8 percent from the December rate of 1.562 million. The December rate was, however, a substantial upgrade from the 1.460 million units originally reported. On a year-over-year basis, starts were almost flat, with a decline of 0.7 percent.
Single-family starts fell 4.7 percent to an annual rate of 1.004 million units but that was an improvement of 22.0 percent from the prior January. Multifamily starts, at 314,000 units, were down 35.8 percent from December and 37.9 percent on an annual basis.
On an unadjusted basis, the report says there were 93,700 units started during the month, 68,700 of them single-family houses. The December numbers were 108,800 and 72,300, respectively.
The setback for permitting was more modest. Total authorizations were at an annual rate of 1.470 million, a 1.5 percent dip from 1.493 million in December and an increase of 8.6 percent for the year. The 1.015-million-unit rate for single-family houses marked a 1.6 percent gain for the month and 35.7 percent year-over-year. The permitting rate for multifamily units dropped 9.0 percent and 26.6 percent.
Analysts polled by Econoday overshot the mark for both starts and permits. They projected that starts would be at a rate of 1.470 million units and permits would come in at 1.510 million units.
Before seasonal and annual adjustments, permits were issued at a rate of 112,700, up from 104,900 the prior month. Single-family permits increased from 64,800 to 75,400.
NAHB said its Housing Market Index (HMI) rose another 4 points in February to 48. This is the highest reading since last August and represents a 14-point increase over the last three months. NAHB economist Robert Dietz said “Expectations that mortgage rates will continue to moderate in the coming months, the prospect of future rate cuts by the Federal Reserve later this year, and a protracted lack of existing inventory helped provide a boost to builder sentiment” over the last three months.
He added “Buyer traffic improved at the start of 2024, as even small declines in interest rates produce a disproportionate positive response among likely home purchasers. And while mortgage rates still remain too high for many prospective buyers, we anticipate that due to pent-up demand, many more buyers will enter the marketplace if mortgage rates continue to decline this year.”
The NAHB/Wells Fargo monthly survey of builders gauges their perceptions of current single-family home sales and sales expectations for the next six months as “good,” “fair” or “poor.” The survey also asks builders to rate traffic of prospective buyers as “high to very high,” “average” or “low to very low.” Scores for each component are then used to calculate a seasonally adjusted index where any number over 50 indicates that more builders view conditions as good than poor.
All three of the major HMI indices posted gains in February. The HMI index charting current sales conditions increased 4 points to 52, the component measuring sales expectations in the next six months rose 3 points to 60 and the component gauging traffic of prospective buyers increased 4 points to 33.
Looking at the three-month moving averages for regional HMI scores, the Northeast increased 3 points to 57, the Midwest gained 2 points to 36, the South rose 5 points to 46 and the West registered a 6-point gain to 38.
Those attitudes were not reflected in regional housing starts which declined across the board. They tumbled 20.6 percent in the Northeast compared to December and were 18.8 percent lower than in January 2023. The Midwest suffered a 30.0 percent loss although the region’s starts were up 10.9 percent for the year. The South had declines of 9.7 percent and 4.2 percent from the two earlier periods, while the West dropped by 15.7 percent month-over-month but was 11.4 percent higher than 12 months earlier.
The regional figures for permitting were more upbeat. The Northeast rose 19.4 percent and 4.5 percent for the month and year and the Midwest was up 6.6 percent and 18.0 percent. The South posted a monthly loss of 7.0 percent but was still up 3.9 percent for the year. Permitting in the West was 1.5 percent higher than in December and 16.7 percent above the previous January rate.
The residential construction report estimated that completions were running at a 1.416-million-unit rate in January, down 8.1 percent from the prior month. An estimated 96,300 homes were completed during the month, down from 148,000 in December.
At the end of January there were 1,676 million housing units under construction, 680,000 of them single-family houses, and a backlog of 267,000 permits.
Source: mortgagenewsdaily.com
Mortgage applications for new homes surged in January as a lack of existing homes continued to fuel the demand for new construction.
Mortgage applications for new home purchases rose 19.1% in January on a year-over-year basis, the 12th consecutive month with an annual increase. Applications were up 38% from the previous month, according to the Mortgage Bankers Association (MBA) Builder Application Survey for January.
According to MBA estimates, new single-family home sales were at a seasonally adjusted annual rate of 700,000 units in January, the highest pace since October 2023. The pace was up 16.9% from December’s rate of 599,000 units.
“Applications for new home purchases were strong in January, as newly built homes remained an attractive option for prospective homebuyers who looked to take advantage of lower mortgage rates during the month,” Joel Kan, MBA’s vice president and deputy chief economist, said in a statement.
In January, conventional loans accounted for 64.5% of loan applications for new homes. Federal Housing Administration (FHA) loans accounted for 24.8% of applications, U.S. Department of Veteran Affairs (VA) loans took a 10.3% share and U.S. Department of Agriculture (USDA) loans accounted for 0.4%.
The average loan size for new homes decreased to $401,282 in January, down from $405,368 in December.
Homebuilders are feeling optimistic about the spring buying season. Homebuilder confidence shot up to a five-month high in February, according to the National Association of Home Builders’ most recent survey.
MBA’s survey tracks new home mortgage application volume from mortgage subsidiaries of homebuilders across the country.
Source: housingwire.com
Not all is gloomy in the housing market. Redfin’s Homebuyer Demand Index has been on an upward trend since mid-January. The number of home tours has also seen a 16% increase since the start of the year, outperforming the growth observed last year during the same period. In addition, there’s been a 7% year-over-year increase … [Read more…]
So far in 2024, fewer homes are taking price cuts than in 2023, and this trend is on the verge of breaking below the 2023 lows in price cuts percentages. While weekly inventory is still falling, we have year-over-year growth in total active listing and new listings data. This calls into question a mortgage rate lockdown, as mortgage rates are also higher year over year.
What is all this data pointing to? We might have an average year in housing compared to the past four years! So, we need to be very mindful of the weekly data to get clues on the marketplace.
Every year, one-third of all homes take a price cut before selling — this is a traditional housing activity. However, this data can move stronger in either direction when mortgage rates rise or fall aggressively.
A perfect example was in 2022: when housing inventory rose faster as demand crashed, the percentage of price cuts rose faster. After November of 2022, home sales stopped crashing and the price-cut percentage data has stabilized. Even when mortgage rates were approaching 8% last year, the number of homes taking price cuts was always 4% below the 2022 level. Currently, the price-cut percentage is less than 1% from breaking below the lows set in 2023. Demand is rising from a low bar, and total housing inventory levels are still historically low. This is the price-cut percentage for last week over the last few years:
A really positive story for 2024 is that we have higher housing inventory year over year. It isn’t anything to write home about, but it’s a positive story nonetheless. I am a very pro-housing supply person and will feel much better about the housing market when we return to pre-COVID-19 levels for total active listings. Last week, inventory fell week to week but was up over this time last year. I am still hoping we get the seasonal bottom in inventory in February and not March or April.
Here is a look at last week:
The new listing data put a big smile on my face this week! For the first time in a while, this was a good week for new listing data. Over the last few years, we have been trending at the lowest levels ever, so seeing a positive week is great. Also, this brings into question the mortgage rate lockdown premise since mortgage rates are higher yearly. This is something I have been discussing for many months on CNBC.
Weekly new listing data for last week over the last several years:
The 10-year yield is the key for housing in 2024. In my 2024 forecast, I put the 10-year yield range between 3.21%-4.25%, with a critical line in the sand at 3.37%. If the economic data stays firm, we shouldn’t break below 3.21%, but if the labor data gets weaker, that line in the sand — which I call the Gandalf line, as in “you shall not pass” — will be tested.
This 10-year yield range translates to mortgage rates between 5.75%-7.25%, but this assumes spreads are still bad. The spreads have been improving this year so much that if we hit 4.25% on the 10-year yield, we still won’t see 7.25% in mortgage rates.
Last week was very interesting because we had a few Fed events to deal with. First there was the aftermath of Jay Powell’s 60 Minutes interview. Then the president of the Minneapolis Fed, Neel Kashkari, made statements about how the Federal Reserve policy isn’t as tight as people would believe, presenting his case in this article. However, just a few days later, Kashkari talked about how his gut tells him that two to three rate cuts are indeed in play. I discussed this turn of events with Editor in Chief Sarah Wheeler on the HousingWire Daily podcast.
The 10-year yield closed at the week high on Friday, even though the highly anticipated CPI revisions data showed that the inflation slowdown was accurate and no upward revisions were made.
Mortgage rates didn’t move around too much last week, ranging between 7.04% and 6.95%. However, as we can see, even with significant progress on the growth rate of inflation slowing down, mortgage rates are near 7% and the 10-year yield is still over 4%. My point on this topic has been clear for a while: the Fed hasn’t pivoted, and they have a highly restrictive policy against housing as they still believe in their COVID-19 housing policy keeping home sales trending near all-time lows.
Last week, we had some confusion on purchase apps, as the unadjusted numbers showed 6% week-to-week growth. We don’t account for that data line ever; the actual numbers showed -1% week-to-week growth, and we are still showing negative 19% year-over-year data. Last year, we had better positive data as mortgage rates headed down toward 6% before rates started higher, so the year-over-year comps will get easier. However, if we had strong housing demand, purchase application data would easily be positive year over year and by double digits as well. For now, just think of a bounce from record lows in demand.
The year-to-date count is two positive reports and two negative purchase application reports. Since mortgage rates started to fall in November of 2023, we have had eight positive and two negative weeks after making some holiday adjustments. This has the potential to take the seasonal inventory bottom to March. However, I am hoping for the bottom in February.
We have a lot of data coming up: two inflation reports, retail sales, the builder’s confidence index and housing starts. The CPI inflation data will be exciting over the next six to seven months because we can start to see the rent factor kicking into higher gear to the downside. Even though the Fed says they don’t account for shelter when talking about rate cuts, lower inflation will bring more and more pressure on them to pivot and bring rates down. We will have tons of data lines to work from next week.
Source: housingwire.com