Having an Exit Strategy in Real Estate

Real estate is a good way to invest, but there are hazards in which you must look out for. Whether you are an experienced investor or a novice, being aware of these pitfalls can be very helpful. To make successful investments, use these tips provided by real estate developer Solly Assa. Before buying an investment property, just like any experienced investor, he too plans for a specific exit strategy. Assa in his interview for inspirery shares how he started in real estate and also gives more tips which can help you if you are beginner.

A backup plan is critical, as things can change at a moment’s notice. Having multiple real estate exit strategies will proceed to lower impending risks and allows investors to achieve maximum return on their investments. Establishing a proven system, a plan if you will, has the potential to propel any business to the forefront of its respective industry. Accordingly, an exit strategy is essential to making money with real estate. Ultimately, it is up to the individual investor to determine their success relative to their peers. However, implementing one of a number of well-devised real estate exit strategies will surely give anyone a significant advantage over their competitors.

Real estate exit strategies are plans in which the investor intends to remove himself or herself from a real estate deal. The decision to implement a sound exit strategy is crucial to success, as the correct approach will result in maximized profits and minimal risks. As an experienced investor, Solly Assa understands how important it is to evaluate each scenario with the end in mind. That is, to have a specific plan for every house you are considering purchasing. Investors should have a clear understanding of how they intend to profit from every real estate investment before they even meet with a prospective seller.

Having a real estate exit strategy can save your business thousands of dollars, if not millions. In Solly Assa’s opinion, you should never start negotiations with a seller without knowing how you would potentially exit the deal. Not only will blind ambition increase risks, but it will deprive any potential chance to negotiate from a position of power. By not considering an exit strategy, you are reducing potential profits while simultaneously increasing risks.

When planning an exit strategy, there are several key factors to take into consideration. Understanding your strategic plan will help you maximize returns on your investment. The exit strategy usually depends on the amount of cash you want to invest in the project and the level of experience. The founder of Assa Properties, Solly Assa, notes that although there is no right or wrong strategy, knowing all of the different ways to exit from a deal can increase profitability, as you will know how to navigate even the most marginal of deals.

Key Factors that Affect Real Estate Prices

When it comes to real estate prices, there are different methodologies for determining a property’s value. Regardless of whether individuals are buying or selling properties, people are always considering current property value. NYC real estate executive and founder of Assa Properties, Solly Assa explains that there are several factors that can shift property prices on both ends, either increasing or reducing prices. Major factors that determine the value of any kind of real estate property include general condition, location and the current status of real estate market. Here, Mr. Assa uncovers some of the most important factors affecting the property market that will almost certainly impact the price of your home.

Real estate represents a significant portion of most people's wealth, and this is especially true for many homeowners in the United States. Recent studies show that more than 65.2% of American families own their own primary residence. The real estate market size and scale make it an attractive and lucrative sector for many investors. In this article, Mr. Assa explains some of the main factors affecting the real estate market as well as the variety of investments available.

Location

We’ve all heard the phrase “location, location, location,” but what does this mean when it comes to property prices? According to Mr. Assa, location is the main factor for property price shift. Property prices are majorly influenced by location, whether the property is located in a well-developed neighborhood, commercial zone or in an upcoming zone that is witnessing development. Having easy access to amenities like shopping centers, healthcare facilities and entertainment offerings will shift the price towards the high end. Rougher areas with high crime rates don’t attract too many buyers and investors, which causes property price to fall.

Size and Layout

The age and size of your home compared to other available properties also plays a part in your home’s value, explains Mr. Assa. The larger the square footage of the house, the more expensive it can be. Additionally, the number of bedrooms largely influences a home’s value. So, a house with several bedrooms is more likely to have high curb appeal as opposed to a one bedroom unit. Interestingly enough, sometimes fewer but larger bedrooms tend to boost value. Moreover, an open plan design layout is often more appealing than a boxy space of the same size. Furthermore, a house which is newly built or is in immaculate condition holds highest market price than the one that needs remodeling. Historic homes or newly built, modern properties often reach higher prices than houses built somewhere in between. Potential buyers will take into account the condition of your home when deciding if they want to buy it and how much they are willing to pay for it.

Can’t Sell Your Home in a Hot Market?

You've had your home for sale for months and yet not a single home buyer has made an offer. Having a house that isn't selling can be frustrating, to say the least, especially when you’ve spent a lot of money on home advertising and made a number of price reductions. Many readers have asked real estate expert SollyAssa what they can do when their home isn't selling. If your house has been sitting on the market for months, with minimal or no movement, then it is probably time to take a step back and determine the exact reasons why your house isn't selling.

The first factor you want to consider is the market. Does the current market favor buyers or sellers? Are things moving quickly in the current market? Sometimes, real estate is hot, and other times it’s not. Before you jump in, make sure you’re able to objectively look at the situation, says Solly Assa, developer and founder of Assa Properties, a New York City-based real estate company.

Although there is no guarantee that your house will sell right away, a few "marketing" tricks can certainly make the property appear more attractive, and hence, bring you more potential buyers. Marketing makes a big difference, says Solly Assa.

In a buyer’s market, it is especially important to pull out all the stops and make your home stand out from the sea of inventory on the market. Ask yourself: why would a buyer choose my home over all the other homes for sale? How you market it can be the differentiator. In order to help you with the process, Solly Assa dives in to discuss some of the main factors that often interfere with house sales, and suggests some clever points to maneuver your way around these obstacles. 

•    Set the Right Price

In addition to the market’s temperature, and your marketing efforts, the most likely factor when it comes to a lack of offers on a home is price, states Solly Assa. Determining the best asking price for a home is one of the most important aspects of selling. If your home is listed at a price that is above market value, you will miss out on prospective buyers.

Properties sell when they are priced correctly. The value of your home is determined by what a buyer is willing to pay for it. If it is much too high, it is likely that you won't get any offers. Of course, you also don’t want to lower the price below the amount owed on your loan.

Make sure that you are certain of the value of your home in your market and price it right. “You can get an analysis of the local market with a professional agent, compare it with other homes, and determine specific market trend data,” says Solly Assa.

•    Create a Better Property Listing

The quality of your property listing has a big impact on the ability to sell your property. Quite often, buyers have only one shot at making a great first impression. So, if you aren't putting your best foot forward when your listing is first published, you can lose a lot of potential buyers. Solly Assa shares some of the key things:

Photos are extremely important to a listing, so make sure to use high-quality, well-staged photos. If necessary, use a professional photographer. 99% of people pass by listings that have one photo or no photo at all. Listings with dozens of good photographs get noticed quickly. For optimum marketing, quality photos include wide angles and plenty of light showcasing your home's best features.

Last but not least, don’t forget to add descriptive text to each photo. Remember, you're not just selling a house, you’re also selling a dream. So, learn to tap into people's emotions, understand which aspects of your property are truly remarkable, and write about those features and about your property in a way that makes it sound like a dream come true.