When home-furnishings mogul Evan Cole set out to build a home in Los Angeles, he wanted a classic design that would mesh seamlessly with his neighbor: the famed 110-acre Getty Center with its curved, marble buildings.
“The whole goal was to…make sure it matched the Getty—that it didn’t look out of place up there,” said Cole, who co-founded the home division of ABC Carpet & Home in New York City in the 1980s and later, California-based home furnishings company HD Buttercup.
Working with architect Thomas Juul-Hansen, Cole spent more than five years building a roughly 15,000-square-foot house clad in travertine marble. During that time, his family relocated to Aspen, Colo., and he is now putting the six-bedroom house on the market for $68 million, according to listing agents Branden and Rayni Williams of the Beverly Hills Estates, who have the listing with Kurt Rappaport of the Westside Estate Agency.
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“Doing this house is the culmination of all of my work, to be honest with you,” said Cole, 63, a Queens, N.Y., native.
The roughly 2-acre Brentwood property sits on a hilltop next to the Getty Center. When he drove up to the L.A. property in the early 2000s, Cole said he was immediately attracted to the location’s privacy and views. “When you’re there, you don’t feel like anybody can see you,” he said. “It’s like having a perch.”
He paid about $5 million for the site in 2004, he said. At the time, the property contained a “cool California ranch” house spanning 2,000 square feet. Cole lived there with his wife and two children there for eight years while he mulled over plans for a new residence. “Every day, I was like, ‘I’ve got to do something with this place,’” he recalled. “It took me eight years to figure it out.”
Cole was hung up on the idea of building something classic that would be “symbiotic” with the Getty next door, he said. He credited Juul-Hansen with designing a building that could be a “sister” to the museum.
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The three-story residence has 20-foot ceilings in the entryway and living room, which feature frameless glass sliding doors. A gym overlooking West L.A. has 60 feet of glass. “From every angle in the house, you have a view,” Cole said. Atop the house, there is a roughly 5,000-square-foot roof deck.
The house has two primary bedrooms and a “mother-in-law suite” with its own kitchen, Cole said. There is also a wine room and a spa with a sauna and massage room. The grounds have a kidney-shaped pool that cantilevers over the hillside.
Most of the materials came from Europe, including solid oak doors, Murano lighting and acoustic wood panels for the ceiling, Cole said. The house is clad in travertine sourced from the same quarry in Italy that provided the materials for the Getty. Cole said he relied on his contacts to source materials for the house. “I know where to buy the good stuff,” he said. “I could not have done any of this if I were not in the business.”
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Cole declined to say how much he spent building the house. Before it was completed, Covid hit and his family relocated to Aspen. Although he travels between Colorado, New York and L.A., he doesn’t want to uproot his children by moving them back to L.A. “It’s time to move on,” he said.
While Cole said he planned to move into his latest creation, he has never even spent the night. (He does, however, keep bottles of Fiji water in the fridge.) He has built several family homes in New York and L.A., he said, and feels that building is about the journey, not the result. “I have felt like whoever gets it, it’s theirs,” he said. “I’m like it’s shepherd rather than its master.”
Despite a slowdown in the luxury market nationwide and in L.A., the number of single-family home sales in Brentwood during 2023’s fourth quarter rose 15.6% compared with the prior-year period, according to real-estate appraisal firm Miller Samuel. The median sale price for single-family homes grew 3.8% year-over-year to $4.3 million.
While the overall L.A. market has softened, Brentwood and Pacific Palisades have remained attractive, seeing “a really good uptick” in deals, Branden Williams said. “Everybody loves to be on the west side,” he said.
Mortgage rates have risen recently but they could be much worse than they are today. As someone who doesn’t believe the Federal Reserve has pivoted and that the Fed enacted a COVID-19 housing policy to keep existing home sales depressed, It’s not shocking to me that rates are still this high, even though we had lower rates with a higher growth rate of inflation data.
Mortgage rates and the 10-year yield
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 will be tested.
The most important data line for me, along with mortgage rates, is jobless claims data because I value labor data over inflation. The jobless claims data got better recently so it’s not a surprise to me that mortgage rates and the 10-year yield are still high.
Below is a look at the 10-year yield over the past few years.
Serious mortgage rate talk
For those who have followed my travails with the 10-year yield over the past year, you know that the 4.34% has been a critical level for me up and down in the merry-go-round world of tracking rates. If we break above this level, the Fed is playing with fire again like it did last year and the 10-year yield can shoot up to 5% again — putting 8% mortgage rates in play again. Even with a lot of hawkish Fed talk last week, we still haven’t broken above that level.
One part of my 2024 forecast has been wrong so far this year: I forecast that if the 10-year yield reached 4.25%, mortgage rates would hit 7.25%. That hasn’t happened. The 10-year yield went above this 4.25% level briefly, and the highest mortgage rates got was 7.16%. This is because the spreads are doing better this year; if the spreads were average, mortgage rates would be lower.
For the 10-year yield, breaking above 4.34% is a big deal. Also, getting below 3.80%, another critical level for the 10-year yield, will be a big deal. As discussed in a recent HousingWire Daily podcast, we would need softer economic data or a real Fed pivot for that to happen. You can see in the chart below why I suspected the bond yield wouldn’t get much lower than 3.80% after that massive move from 5%. If the economic data was getting softer, then yes, that is one thing, but that hasn’t happened yet.
Mortgage rates were lower in late 2022 and early 2023 with a higher inflation growth rate and the Fed still hiking because the bond market anticipated a Fed pivot or a recession, neither of which happened. Remember, the macro data and Fed expectations run a lot of this. This is why I believe in talking about 10-year yield channels for every year and not a single mortgage rate forecast.
For now, the economic and labor data is holding up, so we are still here with 7% rates. In this recent podcast, I discussed why I don’t believe the Fed will pivot housing here.
Weekly housing inventory data
My favorite housing data line for 2024 has been seeing the increase in inventory year over year. I firmly believe that housing inventory can grow over time when mortgage rates increase and we see weakness in demand. The trick is keeping rates higher for longer for that to occur, because once rates fall, the inventory growth story is gone.
Here is a look at inventory last week:
Weekly inventory change (Feb. 16-23): Inventory rose from 494,029 to 497,608
The same week the previous year (Feb. 17-24), Inventory fell from 437,282 to 430,395
The recent inventory bottom was in 2022 at 240,194
The inventory peak for 2023 was 569,898
For context, active listings for this week in 2015 were 958,304
New listings data
New listings data is growing year over year and increasing week to week, but I wish we were seeing more significant growth. As mortgage rates rise, there is weakness in demand and homes don’t go into contract immediately. This data line can grow faster as long as people still list their homes weekly.
Weekly new listing data for the last week over the previous several years:
2024: 51,381
2023: 44,864
2022: 48,979
For some historical reference, during 2008-2011, new listings data was growing between 250,000-400,000 per week.
Price-cut percentage
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. As rates increase and the seasonal inventory increases, the year-over-year price cut data should increase versus 2023 levels as more supply enters the marketplace and purchase application data is trending negatively.
Here is the price cut percentage for the last week over the past several years
2024: 30.4%
2023: 31.1%
2022: 18.3 %
Purchase application data
We are seeing a similar pattern in the purchase application data to last year: when rates rose in February, purchase application data declined. Last week mortgage rates rose from 6.63% to 7.16%, ending the week at 7.08%. That’s created four straight weeks of negative data, similar to last year. This means the recent existing home sales report that showed a bounce is already too old.
Since November 2023, we have had eight positive and four negative purchase application prints after making holiday adjustments. Year to date, we have had two positive prints versus four negative prints. We are seeing a carbon copy of what happened in 2023, which means it’s hard to get real sales growth even working from the lowest sales levels ever. This is why last year, I talked about how the housing market really revolves around the 10-year yield.
The week ahead: Housing data and the inflation report
We have a bunch of housing reports this week, including new home sales, home price index reports and pending home sales. Pending home sales will be interesting because purchase apps have been weaker, so they should decline. If they don’t, they will be pushed into next month. Sometimes, old monthly data lags current forward-looking data by a month or two.
However, the Fed’s main inflation index, the PCE inflation report, will show that the inflation growth rate has cooled down from the pandemic’s peak but is still not good enough for them to pivot. As always, keep an eye out for Thursday’s jobless claims data. That’s the most critical data line we have today.
A sluggish housing market for most of last year began to heat up as the calendar turned to 2024.
In recent weeks, however, the market has cooled once again.
A surge in mortgage rates accounts for the slowdown in the housing market, experts told ABC News, pointing to elevated home prices pushed out of reach for most consumers when combined with high borrowing costs.
The jump in mortgage rates is due to stubbornly high inflation that has delayed interest rate cuts at the Federal Reserve, experts said. Mortgage rates track yields on 10-year treasury bonds, which are highly sensitive to the Fed’s benchmark rate.
“High mortgage rates and high housing prices have led to an affordability problem of a dimension that we haven’t seen in decades,” Susan Wachter, a professor of real estate at University of Pennsylvania’s Wharton School of Business, told ABC News.
The average interest rate for a 30-year fixed mortgage has soared to 6.9%, rebounding after a steady decline at the end of last year, according to a report from Freddie Mac on Thursday.
Meanwhile, home sales have plummeted. Mortgage-purchase applications fell 10% from a week earlier, data from the Mortgage Bankers Association on Wednesday showed.
“Existing home sales have fallen off a cliff,” Lu Liu, also a professor at the Wharton School at the University of Pennsylvania, told ABC News.
The housing market dynamic traces back to a highly anticipated announcement in December, during which the central bank revealed expectations of interest rate cuts in 2024.
The signal elicited a boost of optimism among key market players, who foresaw the end of the Fed’s fight against inflation and the decline of interest rates from near-historic highs. In turn, yields fell on 10-year treasury bonds, and mortgage rates soon followed suit.
Inflation, however, has refused to cooperate. Stronger than expected economic performance and resilient consumer demand have helped buoy price increases, keeping them above the Fed’s target rate.
“The strengthening of the economy is a surprise,” Wachter said. “It does raise questions about the Fed’s next steps.”
Consumer prices rose 3.1% in January compared to a year ago, slowing markedly from the previous month but missing expectations of an even larger cooldown, a report from the Bureau of Labor Statistics earlier this month showed.
Inflation stands well below a peak of 9% last year but remains more than a percentage point above the Fed’s target rate of 2%.
“The inflation rate is reflected in the 10-year treasury rate, which pushes mortgages up,” Wachter said.
When the Fed initiated the rise of bond yields with its first rate hike of the current series in March 2022, the average 30-year fixed mortgage rate stood at just 4.45%. The average mortgage is now nearly 2.5 percentage points higher.
Each percentage point increase in a mortgage rate can add thousands of dollars, or even tens of thousands, in additional costs each year, depending on the price of the house, according to Rocket Mortgage.
The rising mortgage rates have put a freeze on the housing market in part because home prices remain high, Liu said. Potential homebuyers would rather stick with mortgages that have comparatively low rates rather than shift to higher rates that would compound the elevated home prices, she added.
“A lot of people are holding back from moving or selling,” Liu said.
Observers would expect home prices to fall amid low consumer demand, but the stubbornly high housing costs may be owed to that reluctance among prospective homebuyers to first put their own homes up for sale, Liu added.
“It’s a little bit of a puzzle why home prices have remained stable or even ticked up,” Liu said. “Home owners may be buying, but they’re not selling.”
Prospects for the spring market look a bit brighter as January numbers show an increase in both the pace of existing home sales and the size of the unsold inventory. The National Association of Realtors® (NAR) said sales of pre-owned single-family houses, townhomes, condominiums, and cooperative apartments were at a seasonally adjusted annual rate of 4.00 million. This was an increase of 3.1 percent from the December rate of 3.88 million and was 1.7 percent below the pace in January 2023. December sales figures were also revised slightly higher, cutting the previously reported year-over-year decline nearly in half to -3.7 percent.
Single-family home sales rose from 3.48 million in December to 3.6 million, a gain of 3.4 percent, and remained lower year-over-year by 1.4 percent. Condo sales were flat at an annual rate of 400,000 and were 4.8 percent lower than one year earlier.
Existing home sales beat analysts’ expectations, but not by much. The consensus forecast from Econoday was 3.97 million.
“While home sales remain sizably lower than a couple of years ago, January’s monthly gain is the start of more supply and demand,” said NAR Chief Economist Lawrence Yun. “Listings were modestly higher, and home buyers are taking advantage of lower mortgage rates compared to late last year.”
Those listings did expand in January, up 2.0 percent to 1.01 million units. This is estimated to be a 3.0-month supply at the current rate of sales, but that estimate is virtually unchanged from that in both December and January 2023. Properties typically remained on the market for 36 days in January, up from 29 days in December and 33 days in January 2023.
NAR’s current president Kevin Sears said the association has been pushing Congress to pass H.R. 1321, The More Homes on the Market Act. The bill would lower taxes on home sales and hopefully bring additional inventory to the market. “More listings will help Americans move,” Sears said.
Home prices continued to rise, posting the seventh consecutive month of annual price gains. The median for all residential sales climbed 5.1 percent to $379,100. The median single-family home price was up 5.0 percent to $383,500 while condo prices appreciated 5.7 percent to $321,100.
The median home price reached an all-time high for the month of January,” Yun said. “Multiple offers are common on mid-priced homes, and many homes were still sold within a month. The elevated share of cash deals – 32 percent – indicated a market full of multiple offers and propelled by record-high housing wealth.”
First-time buyers were responsible for 28 percent of January sales and individual investors and second-home buyers accounted for 17 percent. Only 2.0 percent of sales were considered to be distressed.
All four major regions posted annual price increases but only one saw annual growth in sales. In the Northeast the sales rate of 480,000 units was unchanged from December but 5.9 percent lower than in January 2023. Median prices jumped 10.1 percent to $434.300.
A 2.2 percent increase brought Midwest sales to an annual rate of 950,000 in January, down 3.1 percent for the year. The median price was $271,700, up 7.6 percent from January 2023.
Existing home sales in the South rose 4.0 percent from December to an annual rate of 1.84 million, closing to within 1.6 percent of sales 12 months earlier. Median prices were up 4.1 percent to $345,100.
Sales in the West rose 4.3 percent compared to December to 730,000 annual units, 2.8 percent higher than the prior January. The median price in the region gained 6.3 percent to $572,100.
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Hong Kong CNN
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China’s central bank has cut its key mortgage reference rate by a record amount, as it ramps up efforts to stem a prolonged property crisis.
The People’s Bank of China (PBOC) announced Tuesday that it would cut its five-year loan prime rate (LPR) from 4.2% to 3.95%, while keeping the one-year LPR unchanged at 3.45%.
The 25 basis point cut to the five-year LPR is the biggest reduction the central bank has made since it revamped its LPR system in 2019. That August, the central bank announced that the LPR would become the new reference rates for lending by Chinese banks.
The latest cut was also the first reduction to the five-year LPR since June 2023.
The LPR is the rate at which commercial banks lend to their best customers. The five-year rate usually serves as a reference for mortgages.
“Today’s 25 (basis point) cut to the five-year LPR is clearly aimed at supporting the housing market,” analysts from Capital Economics said in a note on Tuesday.
“On its own, it will not revive new home sales. But coupled with efforts to provide increased credit support to developers, today’s cut should help to reduce pressure on the property sector somewhat,”they said.
China’s economy has been hobbled by a real estate downturn since 2021, when a government crackdown on developers’ borrowing triggered a liquidity crisis in the sector.
The property market has since entered a prolonged slump, marked by an ongoing decline in both investment in and sales of property. Dozens of major developers have defaulted on their debt, with Evergrande, once the country’s second largest homebuilder, ordered to liquidate last month.
The crisis has triggered widespread protests by unpaid construction workers, buyers of unfinished homes and frustrated investors facing financial losses. It has also spilled over to the country’s massive shadow banking industry, with Zhongrong Trust declaring itself severely insolvent last year after failing to repay its debt.
Beijing has scrambled to revive the property sector, which accounts for as much as 30% of China’s gross domestic product.
Measures unveiled include slashing interest rates, reducing the size of down payments, encouraging banks to extend maturing loans to developers and loosening restrictions on home purchases in Chinese cities.
Capital flight
China’s economy faces a litany of other problems, including deflation, low confidence and accelerated capital flight.
The country’s direct investment liabilities, a measure of foreign direct investment, reached $33 billion in 2023, according to data released by the State Administration of Foreign Exchange on Sunday.
The gauge, which measures direct investments by foreign-owned entities in China, was down 82% from 2022 and stands at its lowest level since 1993.
While an uncertain economic outlook and rising geopolitical tensions are partly to blame for the exodus, foreign companies and investors have also grown wary of increasing political risks in China, including the possibility of raids and detentions.
The country’s stock markets have suffered a prolonged slump since their recent peaks in 2021, with more than $6 trillion in market value having been wiped out from the Shanghai, Shenzhen and Hong Kong markets.
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.
Understand Your Selling Objectives
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.
Why are you selling?
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.
What’s your timeline?
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.
Evaluate Your Financial Position
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.
Understand Your Home Equity
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.
Consider Your Outstanding Mortgage
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.
Estimate Closing Costs
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.
Prepare Your House for Sale
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.
Home Improvements and Necessary Repairs
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.
Deep Cleaning and Carpet Cleaning
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.
Minor Upgrades and Fixes
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.
Stage Your House
Staging your house involves preparing it for viewing by potential buyers. It can significantly impact how quickly your home sells and the price.
Hire a Professional Stager
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.
Depersonalize Your Home
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.
Set the Right 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.
Understand the Importance of Pricing
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.
Get a Comparative Market Analysis
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.
Hire a Great Real Estate Agent
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.
Consider Comparable Sales
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.
Adjust for Features and Conditions
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.
Market Your House
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.
Use High-Quality Professional Photos
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.
Craft a Compelling Listing Description
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.
Host Open Houses and Private Showings
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.
The Role of a Good Real Estate Agent in Marketing
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.
Leverage the Multiple Listing Service (MLS)
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.
Find a Realtor with A Proven Track Record
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.
Evaluate Offers and Negotiate
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.
How to Evaluate Offers
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.
Consider the Buyer’s Lender
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.
Assess the Down Payment
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.
Understand the Buyer’s Timeline
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.
How to Manage Multiple Offers
Receiving multiple offers can be exciting, but it can also be overwhelming. Your real estate agent can help you with this process.
Consult with Your Real Estate Agent
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.
Make the Best Decision Based on Your Needs
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.
Close the Sale
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
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.
Home Inspection and Report
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.
Negotiating Repairs
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.
The Title Search and Insurance
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.
Understanding Title Insurance
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.
Sign the Final Paperwork
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:
The Bill of Sale
This document transfers the ownership of personal property (like appliances or furniture) included in the home sale.
The Deed
This legal document transfers ownership of the property from you, the seller, to the buyer.
Documents Prepared by a Real Estate Attorney or Real Estate Brokerage
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.
Post Sale Considerations
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.
Understand the Tax Implications
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.
Capital Gains Tax Exemption
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.
Consult with a Tax Professional
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.
The Move to Your New Home
Moving to your new home involves logistical and financial considerations. Plan ahead for moving costs, including professional movers, moving supplies, and potential temporary housing.
Keep Records of Your Home Sale Expenses
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.
Conclusion
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.
Frequently Asked Questions
What should I do if my house isn’t selling?
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.
Can I sell my house myself instead of using a real estate agent?
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.
How long does it usually take to sell a house?
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.
What is a seller’s market, and how can it impact my home sale?
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.
Should I make repairs before selling my house?
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.
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.
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.
Key Takeaways
Real estate side hustles have a range of options from income generating assets to freelance opportunities to office jobs.
You can supplement your income with both short-term and long-term real estate strategies.
Finding the right fit depends on your availability, investment capacity, and financial goals.
Best Real Estate Side Hustles
Here’s a quick summary of some of the different best real estate side hustles:
House hacking: Buy a property, live in one unit, and rent out the rest.
REIT investing: An easy way to start investing in real estate with less capital.
Airbnb rentals: Rent out a spare room or an entire property on a short-term basis.
Property management: If you’re organized and good with people, managing properties for others could be a perfect fit.
Long-term rentals: Becoming a landlord can generate steady cash flow.
Fix and flip: Buy properties that need work, renovate them, and sell them for a profit.
Below, you will read the full list and learn more about each one.
1. House flipping
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
2. Investing in REITs
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.
3. Getting a roommate
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:
Where your home is (an expensive area? rural?)
The space you are renting to a roommate (for example, do they get their own bathroom? private entrance available?)
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.
4. Airbnbs and vacation rentals
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:
Check local laws: Make sure short-term rentals are permitted in your area. There are many areas nowadays that are more strict when it comes to short-term rentals.
Understand the financials: Calculate potential earnings against expenses like mortgage, utilities, and maintenance.
Set up your space: Furnish and decorate to create a welcoming environment.
Market your rental: Use high-quality photos and create listings on rental platforms like Airbnb and Vrbo.
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.
5. Real estate photography
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
6. Real estate drone photography
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
7. Long-term rentals
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
8. Buy and hold for long-term wealth
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:
Appreciation: Over time, real estate often increases in value.
Rental income: It can provide a steady cash flow each month.
Tax advantages: Possible deductions can reduce your taxable income.
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.
9. Notary services for real estate
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.
10. Rental arbitrage
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:
Check local laws: You’ll want to make sure your city or state allows for short-term rentals.
Make sure the rental allows for you to do this: Not every rental will be okay with you renting it out. You will want to read your rental contract carefully.
Do market research: Understand the demand for short-term rentals in your target area, such as by looking for locations with high tourist traffic or business conferences.
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.
11. House hacking
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
12. Real estate agent
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.
13. Crowdfunding and peer-to-peer lending
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.
14. Bird dogging
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:
Conduct market research to locate properties that are flying under the radar.
Build a network with local real estate investors who are looking for deals.
Learn to use the Multiple Listing Service (MLS) to spot opportunities.
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.
15. General contractor
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.
16. Flip raw land
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:
Find raw land – Research areas with potential growth or upcoming developments that could boost land value.
Due diligence – Perform thorough checks on land titles, zoning laws, and road access to avoid legal issues.
Pricing strategy – Your selling price should be attractive enough for buyers yet ensure you make a reasonable profit margin.
Sell and negotiate – Use online platforms to reach potential buyers and negotiate the best deal.
17. Rent out your storage space
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
18. Property manager
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.
19. Home stager
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.
20. Home inspector
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:
Inspecting homes for possible problems, like a leak or bad wiring.
Creating and delivering reports based on what you find during the inspection.
21. Real estate appraiser
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.
22. Real estate wholesaler
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:
Find a distressed property – Search for properties that can be bought below market value.
Evaluate the property – Determine the After Repair Value (ARV) and estimate repair costs.
Secure under contract – Enter into a contract with the seller, giving you the right to purchase.
Find a buyer – Locate an investor interested in buying the contract.
Assign the contract – Transfer your purchasing rights to the investor for a fee.
By becoming skilled at finding good deals and building connections with trustworthy investors, real estate wholesaling can become a profitable real estate side hustle.
23. Start a real estate blog
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.
Frequently Asked Questions
Below are answers to common questions about real estate side hustles.
Can real estate be a side hustle? Is real estate a good side hustle?
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.
Is real estate worth it as a side hustle?
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.
How can realtors make extra money?
Realtors can make extra money by managing rental properties, taking part in real estate crowdfunding, selling real estate photography services, and more.
Is real estate a good side hustle for teachers?
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.
Which licenses might be required to pursue a side hustle in the real estate field?
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.
How to make money in real estate without ever buying any property?
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.
Real Estate Side Hustles – Summary
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?
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.
Find and lock a low rate
Current mortgage and refinance rates
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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Should you lock a mortgage rate today?
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:
LOCK if closing in 7 days
LOCK if closing in 15 days
LOCK if closing in 30 days
LOCK if closing in 45 days
LOCKif closing in 60days
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.
What’s moving current mortgage rates
This week
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.
Economic reports next week
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 next week
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.
Economic reports next week
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.
Monday — Markets closed for Presidents’ Day holiday
Tuesday — January leading economic indicators
Wednesday — Fed minutes
Thursday — February PMIs for the services and manufacturing sectors from S&P. Also January existing home sales. Plus initial jobless claims for the week ending Feb. 17
Friday — Nothing scheduled
We’re in for a quiet week for economic reports. But mortgage rates could still move on any day except Monday.
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Mortgage rates forecast for next week
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.
How your mortgage interest rate is determined
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.
Your part
But you play a big part in determining your own mortgage rate in five ways. And you can affect it significantly by:
Shopping around for your best mortgage rate — They vary widely from lender to lender
Boosting your credit score — Even a small bump can make a big difference to your rate and payments
Saving the biggest down payment you can — Lenders like you to have real skin in this game
Keeping your other borrowing modest — The lower your other monthly commitments, the bigger the mortgage you can afford
Choosing your mortgage carefully — Are you better off with a conventional, conforming, FHA, VA, USDA, jumbo or another loan?
Time spent getting these ducks in a row can see you winning lower rates.
Remember, they’re not just a mortgage rate
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:
Principal — Pays down the amount you borrowed
Interest — The price of borrowing
Taxes — Specifically property taxes
Insurance — Specifically homeowners insurance
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.