Real Estate 2016: The Future Will Be About Warranty, Technology
Donald Trump, a Republican presidential candidate, had said that real estate would always be good as far as he is concerned. Of course, he was referring to the state of today's real estate market.
As of February 2016, unemployment was actually recorded at 4.9 percent. Previously, halted projects had received multi-million dollar funding through state and federal governments, while sellers are getting highly motivated to convince desperate buyers.
The Urban Land Institute Center conducted a survey from Aug. 28 to Sept. 21, 2015 and the survey involved real estate economists across 36 organizations. According to the survey, these market experts have predicted that three more years of positive real estate conditions will be experienced.
Warranty and Sales
Generally, as an investor, a warranty will increase sales. Almost 90 percent of buyers, especially first time buyers, prefer a home covered with a warranty clause because the cost of repairs can be seen as an intimidating expense, according to HSWarranty. At closing, the warranty will reduce the chances of equipment issues, will guard against any delays, and most importantly, allow investors to calculate repair costs accurately by recording repairs and projecting future expenses. All these will result in savings on both services and products.
Real estate investors who prefer building their own models with a package that delivers functionality and property analysis have ranked Microsoft Excel very high. On the other hand, Real Data offers two versions of investment software, which are Express for portfolios and Professional for larger income properties. According to Discern, both of these are expected to boom in the years ahead.
REI Wise also crunches numbers in the cloud. It has lease modeling, transaction platforms and marketing options. The software not only analyzes comparables on all properties, but it also uses activity history to determine show spreads, pictures and specific descriptions.
Assessing real estate investment deals through the years has been tricky and time consuming. The software that handled the fundamentals was complex and slow. However, today's real estate investor software options can deliver results in real-time. From Microsoft Excel to CRE model, investors can now use an app to calculate figures for ROI, IRR, cash flows and time value.