Listing Courtesy of BERKSHIRE HATHAWAY HOMESERVICES GALLO-L
When you think about the importance of staging when a Rehoboth Beach home goes on the market, you might relate it to how department stores go about increasing sales during the holidays. You have only to stroll through the front door of any of the legendary department stores this time of year to experience what I mean: the most successful ones fairly assault your senses with the color, glitter, sounds (sometimes even the scents!) of the season. If you’ve ever strolled down 5th Avenue in Manhattan any time after Thanksgiving, you’ll have experienced a major jaw-dropping tourist attraction. It seems like the whole place is staged—and masterfully, at that!
Why so many veteran merchants put that kind of effort (and budget) into holiday decorating is proof of how cost-effective staging is for merchandising. It’s not that different when a Rehoboth Beach home is being prepared to be offered to the public. Effective staging for an Rehoboth Beach property performs the same function that Macy’s and Neiman Marcus hope to achieve: to indirectly alter their visitor’s mood to one more receptive to the designer’s goal. Department store holiday décor is more than just eye-candy created to instill a jolly mood. By transporting us into the spirit of the season, it gently cues us into recreating how we feel at the moment of gift-giving (i.e., generous gift giving!). Sometimes that might take 50 or more fully-decorated Christmas trees—all for the sole purpose of creating an atmosphere that Scrooge himself couldn’t resist!
In the same way, staging a Rehoboth Beach home effectively can put prospective buyers into in a receptive frame of mind. The goal is to create an instant impression that does two things.
, it immediately establishes trust. By presenting a well-designed and smartly maintained environment, it acts to dispel one major element of buyer resistance—the fear of the unknown, which in the case of a Rehoboth Beach home sale translates into lurking suspicions about the condition of "somebody else’s" house. Good staging envelops visitors in spaces that just feel substantial.
(just as important), staging an Rehoboth Beach home effectively creates a welcoming feeling. If visitors feel comfortable—at ease enough that they can easily picture themselves at home there—they are much more likely to consider the next steps. Not every home can appeal to every prospective buyer, of course, but good staging does away with idiosyncratic artifacts that would narrow the field.
National studies show time and again that, staged correctly, homes are more likely to garner higher offers—and more quickly. Of course, staging is only one step in the process of listing and selling a home, and it isn’t even the first: that one is giving me a call!
When you own the Rehoboth Beach home your family lives in, you are by definition a real estate investor: it comes with the turf. Your investment is essentially a passive one. Until the day you decide to sell and move on, any improvement in its value is secondary to how well it serves to shelter your family.
How you think about your investment—and how you proceed to manage it—is altogether different when you buy a home purely as a financial venture. For one thing, you face an immediate strategic decision: will you be flipping for a quick short-term profit, or aim for the long term through a buy-and-hold strategy? You have to weigh some pros and cons in order to make the right decision.
Pro: Capital is Freed
A flipping strategy minimizes the amount of time your investment capital is committed, freeing it for other uses. Should you identify another potentially lucrative investment, you will be able to take advantage of it.
Con: Unexpected Challenges
While flipping for short-term profit has definite ‘hands-on’ appeal, first-time investors can be surprised by unexpected complications. Properties that appear to be undervalued (and ripe for a quick flip!) may require costly fixes. Overspending on renovations quickly eats into profits, but underspending can lead to a lengthier holding time. Experienced Rehoboth Beach flipping veterans have learned to successfully gauge a property’s true turnaround value.
Additional Consideration: Taxes
Sussex County flipping has tax implications that impact the bottom line. Profits from a property owned more than a year are generally taxed at the ordinary income tax rate, while a property held for less than a year may be taxed at the capital gains rate. Local and state tariffs need to be considered as well—this is where input from a qualified professional is important.
Pro: Passive Investment
If management is outsourced to a professional property manager, the buy-and-hold strategy will require less personal attention than flipping does. Preparing a property for a flip often involves considerable time commitment and adept contractor schedule-juggling.
Con: Management Costs
The passive investment advantage holds true if outside management is contemplated— with commensurate expense. If you enjoy the challenge of successfully managing a property, this negative doesn’t apply.
Pro: Fewer Properties Need To Be Identified
Ultimately, successfully executing a flipping strategy means scrutinizing a huge number of properties over the course of time. In contrast, a buy-and-hold strategy necessitates finding only a few great bargains. Pursued intelligently, both buy-and-hold and quick flip strategies have proved profitable for many investors. Both call for finding solid value in Bethany Beach properties—which is where giving me a call comes in!