How to Grow a Property Portfolio

As a property investor, growing your portfolio is probably the first thing on your mind. A good portfolio comes with financial freedom. Even though growing it may take a while, it isn’t impossible. Here are a few tips for growing your property portfolio fast.

Timing Is Everything

Timing is a critical aspect of real estate portfolio management. You need to be strategic about buying property to maximize your profits. The key to a successful investment is getting the right price. Proper timing will help you acquire property below the market value.

You can record significant profits when you finally resell it. Reinvesting will build your portfolio fast.

Be on the lookout for opportunities. Find out when properties are going for less than their true worth. When the circumstances of a seller change, they may settle for a quick sale at a lower cost. This is the ideal time to buy. The secret is to make low offers and be open for negotiation.

Additionally, buying property with positive cash flow or the ability to make profits can give you equity and the leverage to make your next investment.

Some points of the property cycle will bring you more profits than others. The best time to make profit is when the market hits rock bottom but is slowly beginning to gain its value.

If you buy when the market is booming, you may need to wait a long time before recording significant returns. It won’t be easy to grow your portfolio.

Start With a Solid Investment

Instead of experimenting with lots of little investments, start with one solid one. The way you start a portfolio can significantly impact its future success.

If you get it right, the first project, when starting, can snowball. The numbers will begin stacking up sooner than you expect. You can use the profits to buy into your next deal.

If you get things wrong the first time, you could mess up the whole experience. It triggers unhealthy financial situations and could make it difficult to keep investing in other projects.

For many investors, the first property is the most difficult one. Luckily, things get better as you gain more experience. Even though you probably want to grow your portfolio as fast as possible, you must walk before you run. A strong foundation sets the pace for everything else.

Expand Your Market

You cannot depend entirely on estate agents for deals. Just because a real estate agent says a deal is good doesn’t mean it is. Expand your market by focusing on niche groups and social media platforms.

Use them to engage motivated sellers and other deal sources. Look out for deals that match your interests, and you will be making profits sooner than you expect.

Come Up With a Cash Flow Strategy

Failure to have a cash flow strategy is setting yourself up for failure. If you don’t have a cash flow strategy, you probably don’t have an investment criterion.

You may take random deals just because they appear to be profitable. This could cost you the best deals. Even when trying to expand your portfolio, resist the urge to jump at every opportunity that looks good.

Create a cash flow strategy before buying property. If the numbers don’t add up, you should probably stay away. Use logic rather than emotion to make your decisions.

Building a property portfolio isn’t always as easy as it may seem. It requires a lot of patience and dedication. With the tips mentioned above in mind, you can have a solid portfolio in no time. You can build wealth and attain financial freedom sooner than you think.

What Does “Pending” Sale Mean in Real Estate?

If you’ve spent any amount of time perusing real estate listings, then you’re probably well aware that a home can be characterized numerous ways outside of just its physical features.

Often times, buyers get their hopes up when they see a home is for sale but later discover that the home is in “pending,” “contingent” or “active under contract” status.

In order to make sure you don’t miss out on a great property, you’ll want to understand the terms that refer to its current status on the market.

What Does Pending Mean?

Before you understand what “sale pending” means, you have to understand contingencies in real estate.

A contingency means that the seller has accepted an offer, but certain requirements – or contingencies – must be met first before the sale becomes official.

For example, the buyer might demand that the seller pay to have the roof replaced first. As long as that gets done by a certain date, the buyer agrees to purchase the house.

Likewise, sellers can have contingencies, as well. A common one occurs when the buyer makes an offer but still hasn’t sold their own home. In that case, the seller can demand that the buyer must sell their home by a certain date or the seller can entertain other offers.

Another common contingency deals with the home appraisal on the property. The “appraisal contingency” allows the buyer to keep their earnest money and terminate the contract if the home does not appraise for contract price.

The status of a listing is not typically changed to “sale pending” until the contingencies are resolved. When a home’s status is changed to “sale pending”, this means that an offer has been accepted and the sale is being finalized.

The Difference Between “Sale Pending” and “Contingent”

The big difference between “sale pending” and “contingent” is that the latter isn’t close to being finalized yet. A lot could still happen that would make the listing active again.

That’s not to say that a “sale pending” status means the house is off the market. Some MLS’s (multiple listing services) have different categories of statuses. So, be sure to check with your agent if you’re questioning whether a home is truly available or not.

Sometimes there are additional stipulations or clauses that make the status of a listing more complicated. For example, many states allow a “kick out” clause, which gives home sellers the right to market their home and receive other offers, despite being under contract with another buyer.

Can You Make an Offer When a Sale Is Pending?

Yes, even if a listing shows “sale pending”, you can still make an offer on the house. After all, if the sale is pending, then the house isn’t sold – yet.

However, that doesn’t mean you’ll automatically bump the current buyer out of the contract. Instead, it’s like you’re getting in line if that buyer drops out. We’ll talk about backups more in a moment, but the important point to grasp is that not all is lost just because a sale is pending. If you’re really serious about a potential house, it still might be worth putting in an offer.

In fact, some real estate agents keep showing houses with pending sales as if an offer had never been made. They don’t stop marketing the home until the sale is finalized. If the sale falls through, they want another buyer lined up, especially if the offer is even better or if they’re concerned about the first buyer performing.

Aside from just putting in your own offer, you can also contact the listing agent to ask about the current status of the sale. Sure, you know it’s pending, but the agent may tell you about other offers or how confident they are about the sale going through.

You can also offer to pay more for the home, cover closing costs, agree to the seller’s move-in dates, purchase the home “as is,” or do anything else to make yourself a more attractive buyer than the current one. If nothing else, this extra step will make sure they remember you if the sale falls apart and their client needs a new buyer.

Pending Status Defined By Local MLS

Many MLS’s require agents to change the “status” of the listing from “active” to “pending” within 24 or 48 hours of the contract going “binding”. Basically this means that the listing agent can’t continue to leave the listing in “active” status indefinitely because this is unfair to the buyer who is under contract.

Most MLS’s will flag listings and even penalize brokerages when a listing is reported to be under contract but yet not marked as “pending” or “contingent” by the listing agent. Often times, listing agents will neglect to update the status to pending, despite the home being under contract. The reason is simply to generate more interest and hedge against the first buyer’s contract falling through. Naturally, this frustrates many prospective buyers who find a home they love but discover it’s actually under contract, despite showing “active” on sites like Zillow.

Find Your Dream Home Before The Listing Says “Sale Pending”

Although a listing that says “sale pending” doesn’t always mean you’re out of luck, those are definitely two words you never want to see next to a house you’d love to call home.

That’s why you should start working with an experienced real estate agent the moment you decide it’s time to buy a house.

At SimpleShowing, we’d love to introduce you to one of our local real estate agents. Even better, when you work with our team, we’ll give you up to 1.5% back or $5,000 on average towards your closing cost when you buy any home. It’s part of our Buyer Refund Program that rewards buyers like you for the work you’re already doing in the home search process.

The 8 Best Places to Live in Broward County

Without a doubt, Florida is one of the best states to live in the US. Great weather, stunning beaches, and awesome parks are just a few of the many characteristics that make over 21 million people call this state home.

While there are many different places to choose from in Florida, Broward County has been selected by over 1.9 million residents as their desired place to settle down and make a living. If you are considering moving and South Florida has caught your attention, then check out our picks for the 8 best places to live in Broward County.

Best Cities in Broward County, Florida

With a strong economy, diversity and great weather, these cities are safe, growing and still relatively affordable. South Florida is tough to beat, but if you decide to shop outside of Broward, these are the top cities in the entire state of Florida.

1. Coral Springs, Florida

Coral Springs is an excellent option if you’re looking for a place to live close to Miami. Located approximately 20 miles northwest of Fort Lauderdale, Coral Springs sits against the great Florida Everglades – a natural wetland with beautiful views that stretches over 1.5 million acres in South Florida

Home to top-rated schools, excellent parks, safe neighborhoods, and a thriving business community, Coral Springs is perfect for any family. At the second highest on our list, the median home value in Coral Springs is $364,277.

If you’re looking for things to do in Coral Springs, you can catch a show at the Coral Springs Center For The Arts, a 1,471-seat theater hosting entertainment for every age and taste.

If theater isn’t your activity of choice, then you can also visit the Sawgrass Nature Center where you can observe non-releasable, exotic animals and birds in the center’s permanent exhibit area.

View Homes For Sale In Coral Springs, Florida

2. Coconut Creek, Florida

Coconut Creek, the Butterfly Capital of the World, is a much smaller but well-planned city with a population of 61,361. The median home price in Coconut Creek is $230,463. This city was named one of the “Best Cities to Live in America” by Money Magazine and one of the “Safest Cities in Florida” by Safewise, so you can see why it made our top list.

In 2004, the city of Coconut Creek adopted plans for 250 acres of unique boutiques, fine dining, luxury housing, and beautifully landscaped parks. The Seminole Casino Coconut Creek is just one of the many booming businesses in this area, along with the Coconut Creek Promenade, an open-air, upscale shopping and restaurant center.

If you’re looking for a thriving business community with lots of new developments, then Coconut Creek may be the right option for you.

View Homes For Sale In Coconut Creek, Florida

3. Pompano Beach, Florida

Pompano Beach, often called “the Heart of the Gold Coast”, is centrally located between Palm Beach and Miami. This city has excellent schools with its high school ranked at #2 in Broward County.

Pompano Beach maintains more than 50 local parks with playgrounds, grills, picnic areas, and other amenities to keep you entertained while enjoying the warm Florida weather with the family.

Outdoor enthusiasts are also drawn to Pompano Beach for its excellent boating, fishing, offshore coral reef and 1,000-foot-long fishing pier. There’s even a holiday boat parade in December.

With a median home value at $230,775, Pompano Beach is a great choice for those looking for a taste of life on the coast.

View Homes For Sale in Pompano Beach, Florida

4. Pembroke Pines, Florida

Pembroke Pines is an ideal destination to enjoy a quiet, suburban life. Located about 20 miles northwest of downtown Miami, Pembroke Pines rests between the Everglades to the west and beaches to the east. Beautifully-landscaped neighborhoods, lush parks and an excellent school system are some of the top things residents love about this community. If you’re looking for the best school in this area, then you’ll want to check out Somerset Arts Conservatory – the #1 high school in Broward County. The median home price in Pembroke Pines is $327,279.

In Pembroke Pines you’ll enjoy a safe city alongside others who value community. Enjoy shopping at Pembroke Gardens or a round of golf at Pembroke Lakes Golf Club. In short, Pembroke Pines is a great place for any family.

View Homes For Sale In Pembroke Pines, Florida

5. Hollywood, Florida

The city of Hollywood is a beachfront community located in southeastern Broward County between Miami and Fort Lauderdale. Hollywood brings a small-town vibe to the South Florida coast and has a median home price of $301,389.

Hollywood is home to seven miles of beautiful beaches and the award-winning Hollywood Beach Broadwalk, a promenade that stretches nearly 2.5 miles along the Atlantic Ocean. The Hollywood Beach Broadwalk is a brick-paved thoroughfare where pedestrians, joggers, bicyclists, rollerbladers, and millions of others come every year. Along the promenade, you’ll find many attractions such as a children’s water playground, all types of cafes and eateries, and plenty of hotels and condominiums.

Hollywood has received one of Tripadvisor’s awards for “Best Beach” and was also named one of “America’s Best Beach Boardwalks” by Travel + Leisure magazine.

In addition to the Broadwalk, there is more to do in Historic Downtown Hollywood where you’ll find hundreds of events hosted each year including concerts, shows, art exhibits and music festivals. Downtown Hollywood is a bustling business, entertainment and arts district where you can enjoy a wide variety of shops, dining and entertainment all just a few steps apart.

View Homes For Sale In Hollywood, Florida

6. Weston, Florida

Weston is a master-planned suburban community of just over 71,000 residents. Weston has one of the highest percentages of families among communities in Florida, possibly due to the fact that it ranked as the one of the safest city in Florida. And with many schools in Weston having received an A+ rating from Niche.com, it’s no wonder that families are flocking to this area. The median home value is $399,000 in Weston, but the low unemployment rate and high median household income of $93,814 help balance it out.

There’s no shortage of things to do in Weston either. Whether it is an afternoon spent out at one of the museums or historical sites, or a day at one of the nature reserves enjoying the view of the Everglades, Weston is sure to provide ample leisure activities.

View Homes For Sale In Weston, Florida

7. Davie, Florida

Davie is a suburb that lies 30 minutes outside of Miami with over 97,000 residents. With minimal tax rates and a median home value of $315,800, Davie is an affordable place to live in South Florida.

Davie is an education-oriented city with five college and university campuses. With affordable housing and so many educational options, Davie is a popular place for students to start their education.

View Homes For Sale In Davie, Florida

8. Fort Lauderdale

Last, but certainly not least on our list of the 8 best places to live in Broward County is Fort Lauderdale. This ocean-front city is filled with waterways, beautiful homes, amazing restaurants, and more than seven miles of sparkling beaches. Fort Lauderdale has its own unique vibe with a cross between beach town, yacht capital, and urban metropolitan.

Fort Lauderdale isn’t cheap with the cost of living higher than the national average by 29.6%. The median home price is also on the higher end at $384,600. However, Fort Lauderdale was named a top city in the 2018 Emerging Trends in Real Estate report from the Urban Land Institute, so your investment in a home now, could be profitable in the long run.

Nicknamed the Venice of America with nearly 40,000 residents living aboard their yachts, Fort Lauderdale has almost 500 miles of waterways with waterfront bars and restaurants. Ranked as one of the best cities to live in without a car by Forbes, Fort Lauderdale provides a different form of lifestyle.

Fort Lauderdale has been catching up with the vibrant nightlife of neighboring Miami with some of the greatest festivals and events including Tortuga Music Festival, Fort Lauderdale Fringe Festival and Las Olas Food and Wine Festival.

View Homes For Sale In Fort Lauderdale, Florida

Get $5,000 Towards Closing Costs When You Buy A Home In Broward County

To start exploring one of these cities today, book a showing of any home in the area or contact us to connect with a local Broward agent to help you find your new home. Learn more about South Florida with our post on pros and cons of moving to the Miami area.

Plus, when you work with a SimpleShowing agent, you will get all the benefits of working with a full-service agent and also qualify for our Buyer Refund Program, which can give you $5,000 on average towards your closing costs.

Quick Guide to Summer Home Maintenance: 5 Tasks You Should Do Soon to Protect Your Home This Season

Each year as the seasons and climate change, homeowners are faced with new challenges when it comes to home maintenance. As the summer season creeps up, we’ve put together a quick guide to summer home maintenance to prepare your house for the incoming heat and humidity this season.

1. Prep The HVAC

It’s easy to lose your cool when your air conditioner conks out on a Friday night in late June. Then, you’re forced to stick it out through the hot, sweaty and uncomfortable weekend until the air conditioning repair guy shows up with a bill that makes you wonder if it would have been better to sweat it out. To save yourself some money and a lot of headaches, we suggest prepping your HVAC for summer before the heat hits.

First, you should change the filters, so the unit doesn’t have to work as hard. Next, go outside, visually inspect it yourself and remove any debris. Lastly, you can call your A/C repair contractor, like ARS and request a summer tune-up. They can prep your HVAC for the long hot season ahead, give you a heads up if you need any major repairs, and estimate when you’ll need a replacement. An ounce of prevention is worth a pound of sweat later.

2. Check Your Ceiling Fans

Dust the blades of your ceiling fans and make sure the fan is balanced and working. A properly working ceiling fan can significantly lower your electricity costs by working with your air conditioner to circulate air. Also, make sure the blades are running counter-clockwise. With the blades running in this direction, the fan will direct the air straight down into the room to help with cooling.

3.Green Up Your Lawn

Fertilize, mow, and water your lawn. With rising heat and humidity, these are the three things you need to do to keep a lawn in this climate happy and healthy. Summer is the time to fertilize your lawn, not during the dormant cold season. Luckily in Florida and Georgia, fertilizing during this period also allows you to take advantage of their long growing season. Getting an organic lawn fertilizer is a great choice for your summer fertilization needs, as it will help to promote strong root growth and encourage healthy grass. Organic fertilizers are free of harsh chemicals and synthetic ingredients, making them safe for both you and the environment.

Mowing properly can be tricky, depending on what kind of grass you have. The most popular grass types in Florida include Bermudagrass and Centipedegrass, and Bermudagrass and Tall Fescue in Georgia. Bermudagrass should be cut at a height of 1.5 to 2 inches tall, Centipedegrass to a height of 1 to 2 inches, and Tall Fescue to a height of 3 to 3.5 inches.

Finally, you’ll get a boost from the summer rainy season with your watering schedule, because in a typical year, the region gets most of its rain in the hot months. While you’re at it, freshen the mulch around your flower beds. This will enable them to retain water and cut down on exhaustive weeding during the hottest part of the summer.

4. Prepare for Hurricanes If You’re On The Coast

Many Americans have experienced extreme winds, heavy rain, storm surge, and billions of dollars in damage from hurricanes. The Atlantic hurricane season runs from June 1 to November 30, with its peak coming in late August and early September.

While there’s nothing that will hurricane-proof your home, you can take a few measures now to help protect it. Install window covers, storm shutters or at least have pre-measured plywood boards ready to cover your windows if the worst happens. Caulk around windows and doors to prevent rain-driven moisture from coming into the house. Test out your sump pumps and drains to make sure they’re in working order. And make sure you have flood insurance especially if you’re in a floodplain.

5. Trim Trees

Cut the branches back on trees surrounding your home so they’re at least eight feet away from your house. Fallen trees and branches do the most damage during a big storm. Long branches also create easy access for squirrels to jump onto your house. We also suggest clearing your yard of all branches and twigs that critters could use to nest.

Summertime is an easy season to manage, as long as you keep up with your home maintenance. The demands of the hot season are different than the challenges of the short winter, but if you stay on top of things, your home can weather even the biggest challenges.

Preparing your home to sell? Check out these articles for more tips:

Condo or Townhome: Which is Right For You?

One of the first and most important factors that go into buying a home is the type of home you plan to buy. While detached single family homes are the most popular option, these types of homes are not for everyone. Not only do they tend to be more expensive than other housing options, but they also require more time consuming landscaping and outdoor maintenance.

If you find yourself looking into alternative housing options, you’ll likely come down to middle housing options like townhomes and condos. These two housing options are great for those seeking homeownership without the financial strain or maintenance that comes with a larger home. There are quite a few similarities between these home types, but there are also quite a few differences.

Let’s break down the similarities and differences between condos and townhomes so that you can make the home purchase decision that is right for you.

Condo vs Townhome: The Basics

A condo is similar to an apartment in that it’s an individual unit located within a building or set in a community of buildings. The defining difference is that a condo is owned by the resident, not rented from a landlord.

A townhome is often considered a hybrid between a single family detached home and a condo. In a townhome, one or more of the walls are shared with an adjacent attached townhome. This means there is slightly more privacy than a condo.

Condos and townhomes are most often found in urban and suburban areas due to their smaller size. The biggest difference between these two property types is the ownership, fees, maintenance, and space associated with them.

Similarities

Affordability

Compared to traditional single family homes, townhomes and condos tend to be the more affordable option. This often means buyers can get more square footage in a townhome or condo. Of course, this comes with some compromises like less privacy and lack of yard.

Home Ownership

Home ownership is no longer as affordable as it once was. This is especially true for single family homes. Luckily, condos and townhomes offer home ownership at a more affordable price. This homeownership means that you would be responsible for all of the maintenance within the property’s walls.

HOA Fees

Most townhomes and condos belong to a homeowners association (HOA). This means that owners of these properties pay a monthly fee to cover costs of various amenities and exterior maintenance. This HOA fee is generally a positive one as it requires less maintenance on the owners part and allows them to take advantage of onside amenities. However, HAOs can also have strict regulations around what owners can and can’t do to the property.

Less Maintenance

Because of the smaller size and minimal yard space, HOAs often cover some of the home’s exterior maintenance. This includes lawn mowing, tree/ shrub trimming, snow removal, and landscaping. For home buyers looking to sit back, relax and avoid exterior maintenance, condos and townhomes are a fantastic option.

Slower Appreciation

Condos and townhomes tend to be tailored towards more niche markets such as younger singles or couples in more urban and suburban areas. As a result, these types of properties have a slower appreciation rate than a traditional single family home. Of course, that is not to say these types of properties won’t increase in value overtime. They will definitely increase, just at a slower pace.

Less Privacy

One of the benefits of single family detached homes is the yard space that separates the homes from one another. When purchasing a condo or townhome, home buyers can plan on sharing walls with at least one of your next door neighbors. Of the two types, townhomes tend to have less shared walls than condo units. For someone who enjoys a certain level of privacy within their home, this might be a dealbreaker.

Differences

Vertical Layout

Condos are similar to apartments in the sense that the unit has only one story. This means that condo owners are likely to have either upstairs or downstairs neighbors in addition to sharing walls with other properties. Most townhomes have a vertical layout with three to four stories. You may have neighbors to the left and right, but none above or below.

Amenity Options

Paying HOA fees, townhouse and condo owners will have amenities at their disposal. It should be noted that the amenities offered are not always equal. At most condo complexes or buildings, owners will find an abundance of amenities similar to what they would find living in an apartment complex or building. But, townhomes are not always set up to include the same amenities. Some townhome communities are stand-alone with no included amenities while others are located within larger master planned communities with amenities galore.

Interior Space

While both are generally smaller property sizes, the size of the interior space within a condo versus a townhome is very different. Because condos are one story, they tend to be smaller in square footage than townhomes. If you’re looking for a home with more living space, this may be a determining factor.

Yard and Garage

Condos and townhomes both have considerably less yard space than traditional single family homes. Some don’t have any yard at all. Condos are typically located within a condo building which means they don’t have a yard. Instead of a garage, owners will either park in a parking lot within the complex or in a parking garage attached to the building. Townhomes tend to have a small front and backyard and a one-to-two car garage. This could be a pro or con depending on what you are looking for in an outdoor space.

As you can see there are many similarities and differences between condos and townhomes. Each one offers their own unique pros and cons. At the end of the day, both housing options are great choices for buyers seeking home ownership at a more affordable price.

Are you searching for a perfect condo or townhome of your own? Let the SimpleShowing team help you out in our search. Find a condo or townhome that you like and schedule a showing with one of our agents. Be sure to take advantage of our buyer refund to get half of your agent’s commission back at closing when you buy a home!

Importance of Buying a Home in A Good School District

This current school year may be quickly coming to an end, but that doesn’t mean we can’t plan ahead for the next! For many home buyers, especially those with children, the spring and summer months are the ideal time to buy a new home and get situated in a new place before the school starts back up.

Typically the home buying process requires buyers to consider factors such price, amenities, neighborhood, safety, and much more. One other key factor that buyers should consider is the local school district. While this might seem like a factor that would only be relevant to families with school-aged children, that is actually not the case.

School districts have a significant impact on a home’s overall value and influence over the neighborhoods within the district. Here are a few important reasons why the quality of local schools should be heavily considered during your home buying process.

Quality Education is Important

For families with school-aged children, buying a home within a good school district is a no brainer. Providing a proper education is one of the most important things a parent can do for their child. Every school has its own reputation socially as well as academically. The teachers that are with a child and the peers a child develops friendships with will have a huge impact on both their long term academic success and their social development.

Finding the right school district for your child often requires moving to a new area that might come with a higher price. But, in most cases, it is well worth the higher price tag if it means a higher quality education system. This is especially true for families seeking out extracurricular activities, or those that have children with specific learning needs. With the right research, any buyer is sure to find a school district that accommodates what you are looking for.

When researching schools, be sure to look at all levels of education. This includes elementary schools, middle schools, and high schools. Weigh out all of the differences between the public schools and private schools as well. Each school in the district will likely offer a very different learning environment from the other. Use school review sites, local Facebook groups, and city forums as your guide. Your buyer’s agent will also be a valuable resource to you in this process.

Safe School District = Safe Neighborhoods

Whether a buyer has school-aged children or not, safety is likely a determining factor in their home search. Feeling safe in your new home is important and the area that you live in directly influences that. If a home is located within a good school district, that usually means that the neighborhood is probably a safe area of town.

Safer areas tend to be more popular areas to live in. Neighborhoods that surround a strong school system have a strong community feel. In these neighborhoods, buyers will find great convenience with easy public transportation, local shops and restaurants, well-maintained parks, brightly-lit streets, and community events. This business and community presence creates a strong relationship between its residents and therefore increases the feeling of safety and security.

Of course, it’s not just the feeling of safety and security that increases. The actual safety and security within a good school district also increases. A home in a good school district is going to cost more due to the high demand of families competing for good schools. These higher cost areas are more likely to drive out crime and have a tighter security within them.

Correlation Between School Districts and Resale Home’s Value

In real estate, there is a strong connection between school districts and a home’s value. Neighborhoods within good school systems tend to have better reputations and have higher demand among buyers. Homes in these districts have a higher value due to this popularity. A home’s sale value may not be the first thing a buyer thinks of when buying a home, but it is definitely something to consider.

Most people buy a home with the intention of living there long-term. However, plans change and the need to move may come up sooner than anticipated. In these kinds of situations, the buyer will have a better resale value. The home will also spend less time on the market due to the higher demand for homes in that district. This means that the buyer can make a profit, and move on to their next home quickly and easily.

Real estate investors will definitely want to make sure they spend time researching school districts and scoping out the fixer uppers in the area. The one downside for investors is that the homes may still be on the higher side of what they would like to pay. Luckily, this type of investment is one that pays off big time because of the continuously increasing values of the homes. Whether an investor is buying to resell or to rent out, they are sure to make a solid profit.

Finding the right school district to buy in requires knowledge of the area. This expertise can be found through the expertise of one of our knowledgable agents at SimpleShowing. Our local agents can help to point out the best school districts and guide you to the perfect place to call home. You’ll even receive half of your agent’s commission back at closing with our buyer refund.

Ready to buy a home before the upcoming school year? Contact us today to connect with an agent the process started!

What is an Appraisal Contingency? (For Home Buyers)

It is likely that the purchase of your home will be the largest purchase that you ever make. Fortunately, there are contingencies that are often used to protect the buyer in this large purchase.

A contingency is a requirement that must be met in order for the purchase to go through. In the case of an appraisal contingency, the buyer is offering to purchase the house as long as its value matches the offer price.

What Is an Appraisal Contingency?

An appraisal contingency is a requirement that protects the buyer and lender.

After the seller agrees to the purchase agreement, both parties are entered into a legal contract. An appraisal contingency requires that the property of interest meets the agreed-upon price. This means that the property is valued at or higher than the offer price.

When setting an appraisal contingency, it is important to have an intended timeline. This is the amount of time that you have to order and produce the results of the appraisal. The buyer is required to share the results of the appraisal with the home seller. The buyer may adjust their purchase agreement based on the results, and it is up to the seller to agree or decline the edited agreement. Declining the agreement will back each party out of the contract.

An appraisal contingency will evaluate the following factors:

Condition of the house
Location of the house
Required repairs
Size of the house
Number of bedrooms and bathrooms in the house
Size of the lot
Comparable sales of similar-sized houses in the area
Demand for houses in the neighborhood

A registered appraiser will schedule an appointment with the sellers. During that appointment, they will evaluate the condition and features of the house. They will also take into account details about the neighborhood and recent sales, coming up with an appraised value. They will then offer a report to the buyer’s lender and the buyer.

Appraisal Contingency vs. Financing Contingency

While there are a multitude of different contract contingencies that can be used by either party, the two most common types of contingencies are an appraisal contingency and a financing contingency.

An appraisal contingency related to a financing contingency and will allow you to back out of the sale only if the appraisal does not meet the offered price.

A financing contingency (or sometimes referred to as a mortgage contingency), on the other hand, is an intent to buy the property as long as the buyer is able to obtain funding. Some purchase agreements may have both types of contingencies present.

Other common types of contingencies that you might come across during the home buying process include:

Inspection contingency
Home sale contingency
Financing contingency
Appraisal contingency
Home sale contingency

Understanding the different types of contingencies and how they protect you can ensure that you make an informed decision on your home purchase.

When an Appraisal Contingency Can Protect You

An appraisal contingency protects you from paying too much for a house that is not valued at your offered price.

If you were to pay more for the property than what it is worth, then you might find it difficult to sell the property later for a profit. Also, if your finances were to change and you could no longer afford the mortgage payment, you might not be able to sell the house to pay off the mortgage.

If you were to lose the property and it went back to the lender, they would also not be able to make up their initial investment. In this event, they would have to sell the house for its current value, and then they could come after your remaining assets to make up the difference of what you owe them. Because of the risk, a lender will not typically lend more than what a property is worth. The buyer would need to come up with the difference in cost in the event that they decide to still go through with the purchase. Depending on the value and offer of the house, this could mean thousands of dollars spent out of pocket.

Because an appraisal contingency protects the home buyer, it is the buyer’s responsibility to cover the appraisal costs. Most buyers find it worth it to pay the couple hundred dollar cost of an appraisal to protect them from the potential risk. Depending on the requirements of the lender, you may be required to order an appraisal through your mortgage company.

When You Should Think About Waiving The Appraisal Contingency

Although it is not common to waive the appraisal contingency, there are a few situations when you might consider it:

Competitive offer: The fewer obstacles that a home seller has to go through, the faster they can sell their property. Waiving the rights to an appraisal contingency can make your offer stand out among other buyers. However, because of the risk involved, this is not often recommended and there are other ways to make your buyer offer stand out.
You are familiar with the market: Some real estate investors buy and sell properties frequently in a certain area. Familiarity may make these buyers aware of current values and neighborhood demands. In an attempt to cut costs and maximize profits, some investors may choose to waive the contingency.
Automated appraisal: Some larger lenders have an automated appraisal process. This means that they are able to input the property address and a system will automatically gather details about the house, neighborhood, and recent sales in the area and provide you with an estimated value. This may lead some homebuyers to waive the contingency. However, it is important to keep in mind that the best way to get an accurate value is with an actual appraiser.

In most cases, you will find that an appraisal contingency is a necessary part of buying a house. Not only does it protect you legally, but it could also end up saving you thousands of dollars in the event you are required to make up the difference in the price.

4 Benefits of Living In or Around Atlanta

Atlanta has long been labeled as the “Capital of the New South” with its booming new developments around every corner. The city offers everything that any major city should: world-class restaurants, thriving art and culture, a plethora of great entertainment options, an inclusive community, and job opportunities galore.

While many have moved to the suburbs and more rural areas over the past few years, the city still offers amazing benefits to those who choose live here. If you are considering making a move towards the city, here are four benefits of living in or around Atlanta.

1.) Larger Selection of Jobs and Opportunities

The vast array of job opportunities is one of the biggest draws to city life. Major cities tend to be huge hubs for company headquarters and offices. Atlanta alone is home to many major corporate headquarters such as Delta Airlines, Home Depot, Coca-Cola, Newell Rubbermaid, and United States Parcel Service. There are also numerous hospitals in Atlanta such as Emory University that provide numerous jobs in the healthcare field.

Atlanta is also a well renowned leader in top thriving industries such as supply chain management, health and health IT, film and television, and technology. While the competition for these types of jobs may be a bit higher in the city, the pay is usually quite a bit more than what is is typically found outside of the city.

In addition to the vast job opportunities, there are also numerous opportunities for increasing your employability and boosting your resume through higher education and training. There are 15 colleges and universities in Atlanta offering several great degree and certification programs. Through these schools, as well as through local professional groups, you are sure to find endless networking opportunities and professional workshops.

2.) Quality School Systems

Just as Atlanta provides quality jobs, but they also provide top-tier education. This includes the colleges and universities previously mentioned, in addition to the K-12 public and private schools. Schools in more urban areas tend to have a much higher proportion of qualified teachers, less likely to experience staff shortages, and often have more resources to offer their students. Schools in and around Atlanta are no exception to this.

DeKalb County and Fulton County, the two counties that take up much of Atlanta, are home to many incredible and diverse public schools with high student performance rates. Of course, that doesn’t include the wonderful public school districts located in the Atlanta metro area in cities like Marietta, Alpharetta, Lawrenceville, and Duluth.

For those who prefer private school education for their families, Atlanta offers plenty of private schools to choose from that offer rigorous curriculum. These include those that are faith-based, as well as those that are not. Some of Atlanta’s most reputable private schools include The Westminster Schools, The Lovett School, Woodward Academy, Pace Academy, and Atlanta International School.

3.) Proximity to Entertainment, Event and Conveniences

Aside from career opportunities, the proximity to entertainment and conveniences are another huge benefit of living in or near Atlanta. There is a reason cities attract more tourists than rural ones. Atlanta is filled with entertainment venues such as restaurants, shops, parks, nightlife, museums, and more. There are also always the popular attractions such as The Georgia Aquarium, Ponce City Market, and Atlanta Botanical Gardens that draw in both tourists and locals alike.

That doesn’t even begin to include the public events that can be found throughout the city on any given day. Just a quick walk through Piedmont Park or any intown Atlanta neighborhood could introduce you to a new event and new people to meet. While the metro area may be a bit spread out, local events are still in abundance there, and only a quick drive to even more intown. Living in or near Atlanta, you will surely never run out of things to do.

While all of attractions and events are always nice, you also want proximity to conveniences like grocery stores, gas stations, medical facilities, transportation, work, churches, and more. Depending on where you live in or near Atlanta, these conveniences are sometimes just a quick walk down the street or a block away. At the very most, it may just be a short drive to your destination. Having all of these conveniences convenient to you makes life significantly easier and worry-free.

4.) Cultural Diversity

Cities are vibrant and thriving cultural centers that offer its communities opportunities to engage, experience, and learn. Atlanta played a huge role in the civil rights movement which continues to be reflected in the city’s culture today. The city is home to the Atlanta University Center Consortium which consists of four historically black colleges and universities (HBCU). The city also prides itself in its black-owned businesses which are located throughout Atlanta.

Atlanta is also incredibly friendly towards the LGBT with many local businesses, bars, clubs actively showcasing their acceptance and support. Over the past few decades, other ethnic and cultural groups have found their way to the city, with large Hispanic, East Asian, and African communities becoming more prominent. North Atlanta areas like Chamblee, Doraville, Norcross, and Duluth have been especially transformed by these immigrant groups.

Each of these communities has greatly influenced the city in their own unique way. They have brought with them new ideas, foods, music, traditions, art, events, and so much more. Atlanta and metro cities around it work hard to embrace its unique cultural diversity and create an space where everyone feels welcome.

Conclusion

There are many great benefits of living in or around Atlanta. Whether you are looking for new job opportunities or a diverse community to live in, you are sure to find whatever you are looking for here.

When it comes time to buy a home, let SimpleShowing be your guide. Our team of experienced real estate agents are knowledgeable about Atlanta and its metro area cities. Wherever in or around Atlanta you plan to buy a home, we can help you find (and save money on) the right one for you. Contact us today to get started!

Fixed vs. Adjustable-Rate Mortgages: Which is Best for You?

When it comes to mortgage options, buyers have two options: a fixed-rate mortgage or an adjustable-rate mortgage. While both mortgage options ultimately help buyers purchase a home, they do have some key differences.

As a buyer, you want a mortgage loan that makes sense for your homeownership plans and your financial goals. So what is the difference between fixed vs. adjustable-rate mortgages? Here is an easy breakdown of these two mortgage options to help you determine which is best for your situation.

Fixed vs. Adjustable-Rate Mortgage: What’s the difference?

The main difference between fixed-rate mortgage (FRM) and adjustable-rate mortgage (ARM) is the type of interest rate you receive.

With a fixed-rate mortgage, buyers receive a set interest rate and payment that does not change. This means that whatever interest rate you start off will be the same interest rate you will end with for the entire time you have the loan. This means that the mortgage part of your monthly payment remains consistent.

With an adjustable-rate mortgage, interest rates fluctuate over time. Borrowers will usually have an initial interest rate to start out with and keep for a period of time. This is often much lower than the interest rate for a fixed-rate mortgage. However, part of the interest rate you pay will be tied to a broader measure of interest rates. This is called an index. Your interest rate goes up when this interest rate index increases, as does your monthly mortgage payment.

Pros and Cons of Fixed-Rate Mortgages

Pros:

They are the most common and most dependable mortgage option due to its set interest rate. Long-term homeowners especially enjoy this consistency over time.
They are easy to budget for as the interest, and therefore monthly mortgage payments, stay the same month-to-month. No worrying about interest rate increases.
They come with longer loan terms which allows borrowers to spread out payments over time (often up to 30 years).
They overall help to minimize monthly mortgage payments and make homeownership much more affordable.

Cons:

They tend to have higher rates than those on adjustable-rate mortgages (at least for the first few months or years of the loan).
Because of the higher rates, this type of mortgage can be difficult to qualify for. This means you’ll need lower debt–to–income ratio, higher credit score, or more in savings.
Due to the higher interest and mortgage payments, fixed-rate mortgages may not be the best option financially for short-term homeowners.

Pros and Cons of Adjustable-Rate Mortgages

Pros:

The interest rates tend to be incredibly low in the beginning, proving great initial savings for buyers.
Adjustable-rate mortgage rates fluctuate both up and down. This means the rates could potentially be even lower than the initial rate, or decrease if rates do increase during your term. More than likely thought, the rates will stay the same or increase.
Short-term homeowners benefit greatly from the initial interest rates that come with adjustable-rate mortgages.

Cons:

Adjustable-rate mortgages are the much riskier option. While most ARM’s come with rate and payment caps, they are still very unpredictable when it comes time for rates to adjust.
Once the rates begin to fluctuate, it might become harder to budget for monthly payments. The new interest rates could mean that your payment is no longer affordable to you.
This type of mortgage option is not beneficial for homeowners that plan to stay in the home beyond the rate adjustment period. While there is a chance that rates could stay the same or even decrease, you’ll most likely end up paying higher interest rates and mortgage payments than you would like.

Which Mortgage is Best?

The answer to this question truly depends on your homeownership plans, your financial goals, and what you are most comfortable with paying. Despite the higher interest rates, the majority of home buyers opt for a fixed-rate mortgage. Very few buyers, especially first-time buyers, are not comfortable taking on the risk of an adjustable rate mortgage. Instead, they prefer to have a rate and payment that is steady and predictable.

Of course, that isn’t to say that adjustable-rate mortgages are bad. Adjustable-rate mortgages are much lesser known than their fixed counterpart. Many buyers aren’t even aware that this mortgage type is an option for them. Depending on the situation, it may be the better option.

While an adjustable-rate mortgage may not be the best decision if you are looking to live in the home long-term, it does benefit short-term homeowners. ARMs usually come with three, five, seven, or 10–year fixed–rate periods. As long as you plan to sell or refinance the home before the period is up, you can usually save on both your monthly payment and your total interest costs.

Adjustable-rate mortgages are also a good option if you know that your income is going to increase in the future. Knowing you’ll have significantly more income in the future provides peace of mind knowing that you’ll be able to afford whatever interest rate increase comes your way.

If you plan to have stable financing and intend to refinance your home before the rate fluctuation period begins, ARM’s might also be a good option. Refinancing before those interest rate fluctuates would allow you to opt for another ARM to maintain a low rate. You can also refinance to a fixed-interest rate at that point if you plan to stay in the home longer or want the benefit of consistent payments.

Need a bit of guidance in your home buying journey? Our team at SimpleShowing is here to ensure find the best mortgage options for your goals and financials. Be sure to look into our buyer refund program and let us know how we can help you afford (and save!) on your next home purchase.

Moving Across The Country Doesn’t Need To Break The Bank

Are you thinking about moving across the country but dread the thought of what it’ll cost?

You’re not alone. According to a recent study, the average cost of a long-distance move is around $4,900. But with a bit of planning and preparation, you can easily reduce that number.

So if you’re ready to take the plunge and start your new life in a new place, read on for our tips on saving money on your cross-country move.

Get Rid of Things You Don’t Need

One of the best ways to save money on your move is to get rid of things you don’t need. This includes clothes, furniture, knick-knacks, and anything else that you don’t use regularly.

Getting rid of these items will save you money on your move, making unpacking and setting up your new place much more effortless. And let’s be honest, we all have things that we don’t need.

So go through your things and get rid of anything you haven’t used in the past year or two. You can sell these items online, have a garage sale, or donate them to charity. Grays marketplace is one of many sites that’ll take most of your unneeded gear off your hands. Some non-profits will even pick up your donations for free, plus there could be a tax deduction for you.

Plan Your Move Carefully

Another way to save money on your cross-country move is to plan it carefully. This means figuring out exactly what you need and want to take with you and what can be left behind.

A relocation guide may be a helpful tool during the planning process. This guide can help you figure out what to take, what to leave, and how to get the most for your money.

And when it comes to actually moving, compare rates from different moving companies. Get quotes for both full-service and do-it-yourself moves to see which option is best for you.

When you’re getting quotes, be sure to ask about any discounts or deals that may be available. For example, many moving companies offer discounts for seniors, students, and military personnel.

By carefully planning your move and doing your research, you can save a significant amount of money on your cross-country relocation.

Pack Carefully and Efficiently

Remember to pack carefully and efficiently. This means using smaller boxes for heavy items and larger boxes for lighter items.

It also means packing your things to prevent them from getting damaged during the move. For example, you should wrap fragile items in bubble wrap or towels to protect them.

And if you’re planning on doing your own packing, be sure to get plenty of boxes and other supplies from your local moving company or hardware store.

The boxes you use should be durable and sturdy, and the tape should be strong enough to hold them together. You don’t want your parcels to fall apart during the move and damage your things.

USA.gov provides a moving guide that can help prepare you for your domestic move. In addition, this guide includes tips on avoiding scams and how to change your address.

Plan Your Move Well in Advance

The earlier you begin the planning process, the more time you’ll have to look for deals and discounts. So start planning your move as soon as you know you’ll be moving.

This will allow you to compare prices, find discounts, and ensure everything is in order before the big day. Cross-country moves can be expensive, but you can easily save money with a little planning and preparation.

Planning in advance also helps you avoid any last-minute surprises. For example, if you wait until the last minute to book your move, you may find yourself stuck without anyone to help you.

So start planning as soon as possible to avoid unnecessary stress and expense.

Don’t Forget About Hidden Costs

When budgeting for your move, be sure to factor in all of the hidden costs. This includes things like gas, food, lodging, and transportation costs.

If you’re driving to your new home, be sure to factor in the cost of gas and lodging. And if you’re flying, be sure to factor in the price of airfare and transportation to and from the airport.

In addition, be sure to set aside some money for incidentals. This includes things like tipping your movers, buying packing supplies, and even cleaning your old place once you’re gone.

Three Movers long distance moving calculator can help you estimate the costs associated with moving your belongings, so be sure to take advantage of it.

While these costs may seem small, they can add up quickly. So be sure to factor them into your budget to avoid any surprises on moving day.

Use a Reputable Moving Company

When planning your move, be sure to research different moving companies. This includes reading reviews, getting quotes, and comparing prices.

There are plenty of fly-by-night moving companies out there, so it’s essential to do your homework before selecting one. Be sure to get everything in writing, including the cost of the move, the date, and what services are included.

And be sure to ask about additional fees and extra charges. These can add up quickly and cost you more than you bargained for.

Get Creative With Your Housing Arrangements

If you’re moving to a new city, you may be able to find creative housing arrangements that will save you money. For example, if you’re moving for a job, see if your employer offers temporary housing or discounts on hotels.

If you’re moving to be closer to family or friends, see if they’re willing to let you stay with them for a few weeks or months. And if you’re moving for school, see if the school offers dorms or other housing options for students.

You Don’t Have To Spend a Fortune To Move Across Country

While cross-country moves can be expensive, there are plenty of ways to save money. By packing carefully, planning your move in advance, and being mindful of hidden costs, you can make your long-distance move more affordable.

Don’t let the cost of moving stop you from pursuing your dreams. Instead, use these tips to help you save money on your next cross-country move. With a bit of planning and creativity, you can make your long-distance move as affordable as possible. So start planning today and enjoy your new home in no time.

Most Common Home Buying Mistakes and How to Avoid Them

Buying a home is an exciting experience, especially for first-time buyer. While you might want to jump right into touring homes, don’t let the excitement allow you to make careless mistakes along the way. A home is a huge purchase and one that shouldn’t be taken lightly.

To ensure that you make a smart home purchase, here are a few of the most common home buying mistakes and way that they can be easily avoided.

1.Not Figuring How Much Home You Can Afford before Shopping

As a home buyer, it’s easy to want to jump right into the home search. However, this can often lead to disappointment and frustration. No buyer wants to fall in love with a home only to find out it is well above what they can afford. That’s why it is extremely important to figure out what you can afford and plan a budget accordingly.

As a buyer, you will most likely want to aim on the lower side to ensure you can get a mortgage loan with payments you’re comfortable making. To reach this number, use a mortgage affordability calculator. This mortgage calculator will provide a price range that is affordable to you. Go ahead and talk to a mortgage professional about getting pre-qualified or even preapproved for a home loan before starting the home search process.

2. Not Shopping Around For Mortgage Loans

One of the biggest mistakes buyers can make is not shopping around for mortgage loans. Shopping mortgage loans is the same as shopping for any other expensive purchase- you will want to compare all your options. Mortgage interest rates vary from lender to lender. Why settle for one quote when there could be a better one?

Instead of settling for a loan that may not be in your best interest, get pre-approved for mortgage loans with other mortgage lenders. This will provide you with multiple quotes to compare. Understand the terms and details of each while comparing them. Choose the best mortgage lender and offer available to you.

3. Not Double Checking Your Credit Report

Your credit report is an important factor that lenders use to determine eligibility for a mortgage loan. If you don’t want to get rejected or get quoted an interest rate that is higher than you deserve, you will want to double check your credit report.

To provide added peace of mind, you may request a free credit report from one of the three credit bureaus. Look over your credit report information to make sure there are no errors that could negatively impact your mortgage loan. If you find errors in the report, dispute them immediately before applying for a mortgage loan.

4. Not Exploring Loan Programs and Down Payment Assistance

Buying a home is a huge investment. Most buyers, especially first-time buyers, don’t have that kind of money upfront to pay for it. Luckily, loans are available to help make buying a home easier. What many buyers don’t realize is how many loan and down payment assistance programs are available, as well as how many they qualify for.

Many government programs like VA loans, USDA loans, or FHA loans help buyers purchase a home with little or no money down. Be sure to also look into first-time homebuyer grants. Many of these are offered through your state housing finance authority, as well as your city and county governments. An experienced lender will help you explore these options and determine which ones would work for you.

5. Making Too Small of a Down Payment

While having a low down payment can be certainly beneficial, many homebuyers have regrets and wish they had saved up more for a bigger down payment. Think about it in the long run. Putting down a larger down payment means providing you with a smaller mortgage that is much more affordable long term.

While it might seem tempting to put down assmall of a down payment as possible, consider the decision in the long term. If you have the extra money, or time to save up the money for a larger down payment, that may be the better option. However, the one downside with taking the time to save up money is that home prices and mortgage rates may increase during that time. Nonetheless, weigh the pros and cons of both options. A larger down payment may actually be in your favor.

6. Spending All of Your Savings

Just because you have plenty of savings to you towards down payment and closing costs doesn’t mean you should spend every penny. If you are purchasing a pre-owned home, there is a good chance you will encounter an unexpected repair after moving in. There is almost always some issue that turns up whether it’s replacing a hot water heater or repairing weather damage.

Save enough money to make a down payment, pay for closing costs and moving expenses, and to take care of repairs that may come up. Your lenders can provide estimates of closing costs, and you can call around to get estimates of moving expenses. From there, budget in some cushion room to hold onto for repairs.

7. Underestimating Home Ownership Costs

Home ownership is more than just paying a down payment, closing costs, and monthly mortgage payments. There are additional bills that mortgage companies don’t factor in when qualifying you for a mortgage loan. It’s up to you to figure out whether you can afford it or not. These includes utilities like gas bills, cable bills, electric bills, HOA fees, and more.

A knowledgeable local real estate agent will be able to go over neighborhood property taxes and the typical cost of insurance. Also, ask to see the seller’s past utility bills. This will give you a rough idea of what you can expect to pay when you move in.

8. Not Taking Advantage of Low Commission Savings

Not taking advantage of low commission savings is one common home buying mistake many don’t think about. Buying a home is one of the biggest purchases a person can make. If there is an opportunity to save money when buying a home, why not take it? One way many buyers miss out on savings is by not looking into non-traditional brokers that are focused on helping buyers buy smart and save smart.

Low-commission brokerages like SimpleShowing do just that. When purchasing a home, buyers receive half of their agent’s commission back at closing in the form of a buyer refund. This is all without compromising the service and expertise you’d get working with a real estate agent.

Common home buying mistakes can be easily avoided with a good realtor by your side. If you are looking for quality service (and the opportunity to save on your new home) contact us today to see how we can help!

How to Protect Yourself from the Real Estate Fraud

The real estate industry performs some of the most complex transactions globally, which means that they caught the attention of many scammers and thieves who want to obtain personal gains through the usage of fraud by making both sellers and buyers vulnerable to a variety of fraud schemes.

Nowadays, due to the implementation of technology in our daily lives, it’s common to see your email inbox overflowed with multiple not-friendly requests and emails that were “sent” by scammers and identity thieves.

The way in which many scams in the real estate industry happens is due to the multiple receptions of fraudulent emails in the victims’ inbox with requests about updating bank accounts information. In case you didn’t know it, this information is often more than enough to gain access to your funds and transactions, hijacking them and losing everything due to falling for a scam.

Types of Frauds and How to Protect Yourself:

Being the victim of traditional fraud might be troublesome but at least most of those cases can be solved in no time. However, when it comes to real estate transactions, the case becomes more problematic as many things must be considered due to the nature of the transactions.

That’s why it’s recommended to have some understanding of how these frauds work and what can be done to protect yourself against them. In this article, all the types of real estate fraud will be discussed to understand how it can be possible to protect yourself against them.

Wire Fraud

One of the biggest issues with the digitalization era is the fact that many individuals tend to have the bad habit of using the same password for absolutely every platform. In the case of certain real estate agents, the situation isn’t any different. Wire fraud begins when a hacker obtains access to the password of a real estate agent and then proceeds to enter communication tools like e-mail. After that, what proceeds will be them looking for phrases like “offer is accepted” or “negotiations completed.”

The reason why those phrases are looked at is due to the fact that they are used only when the deal is accepted. This means that what comes next is the transaction of the funds. This is when wire fraud occurs. The hacker sends an email to the buyer with wiring instructions to pass the funds of the purchase to an external bank account. By the time the buyer realizes they haven’t received replies back regarding the financial transaction, the hacker has already completed the wire fraud scheme

How can you be Protected Against Wire Fraud?

The simpler yet most effective way of preventing wire fraud is by manually calling the real estate agent for absolutely every email sent to your inbox related to the transaction. This way, both parties can be rest assured knowing that all of the funds will be transferred to where they should go.

Another important measure that is done in combination with the previous one is to avoid using the number that can be found on the email sent by the hacker. You might think that the agent owns the number, but once an email is compromised it’s extremely easy to change all of that information. Instead, use business cards or the numbers that are listed on their website.

Identity Theft

Due to the fact that we are living in the era of digitalization, cyberattacks are becoming more common as time passes. Being the victim of identity theft is never a good thing, as cyber thieves can take out loans and even buy expensive properties in your name after your personal information has been compromised.

Being the victim of identity theft is dangerous, as you might never know that you are a victim until it’s too late. The way it happens is simple to explain. First, the victim receives an email from a hacker targeting your information and data. The received email might be a phishing email (an exact copy of emails sent by popular companies). A change of data or personal information update is required to keep using the services of a certain company.

Sadly, many individuals fall for the phishing email, and their information gets compromised, allowing hackers to have open access to credit cards and obtain personal gains through your effort and hard work.

How can you be Protected Against Identity Theft?

To avoid identity theft, it’s recommended to acquire identity theft protection services. These protection services will manage to keep your information protected against cyber thieves by having resolution specialists available for your case 24/7.

Every piece of personal information will be under strict watch. In this way, social security number, credit reports, driver’s licenses, insurance, and bank accounts can be free of theft thanks to identity theft protection services.

Title Fraud

This fraud scheme occurs when an involuntary transfer of the property’s ownership is bypassed without the true owner knowing about it. Scammers will try to transfer the ownership to someone else, and they can borrow a lot of money by using someone’s property as collateral. Fraudulent liens on a property can be avoided if the lender and title company are doing a good job.

How can Title Fraud be Avoided?

To avoid title fraud, it would be ideal to have a trustworthy lender and do business with only legit title companies. Also, something that is often underrated is getting an owner’s title insurance which will protect your property ownership even when you become a victim of fraud.

Rental Scams

Scammers can easily access and steal your information about a certain property listing and then proceed to add contact information for themselves. In this way, they will ask for money upfront for a property that they don’t even own. This fraud scheme affects buyers and tenants as they will be the ones who will lose the funds due to making transactions to pay the “rent” that was requested by the “property owner,” which ends up being a scammer.

How can Rental Scams be Avoided?

First of all, rent transactions should only be made after confirming with the property’s owner beforehand, don’t try to make big payments without checking the veracity of the operation. Renters should avoid at all costs signing paperwork without seeing the rental.

Rental scams are the cause of the loss of millions of dollars over the last few years. It’s extremely important to be rational and operate with patience and security.

Predatory Lending

Predatory lending happens when someone imposes unfair and abusive loan terms on borrowers. Luckily, this is a practice that has been declining over the years, but it can still happen nowadays.

Being the victim of predatory lending could involve high-interest rates, higher fees than usual, and terms that don’t promote equity by using aggressive sales tactics to get borrowers to take out loans that can’t be afforded.

How can you be Protected Against Predatory Lending?

The best way in which you can protect yourself against predatory lending is by being educated on the matter. Read the contracts, pay close attention to interest rates and the consequences that might happen if you are late on a payment, and look for misleading marketing techniques as they will be used against you.

The best offense is based on having a good defense, being someone with a good credit history, and then you can be eligible for low-interest loans, meaning that no one would ever try to play dirty tricks with a clean credit like yours.

It’s sad to see that certain individuals can use something as efficient as technology to wreak havoc on your finances. The future isn’t looking any brighter as real estate fraud cases are just increasing over the years even when preventative actions are being taken. Everything depends on your own protection. Following the previous security measures will pay off and prevent you from real estate fraud