Below are some basic but key terms to understand when considering commercial real estate investments. These terms will help you in your conversations with brokers, owners, appraisers and lenders.
ARV: After repaired value of the piece of property or land.
ADV: After developed value. The new assessed value of the land after the development is completed.
Compared to purchasing a property that is physically built and ready to be occupied, reserving at Off-Plan stage allows investors and homebuyers alike the opportunity to secure their desired plot/s at a very early stage. Typically, purchasers view the proposed floor plans, site plan, specification, etc. and reserve a plot on this basis. Some developers may even allow keen purchasers to reserve before final planning permission is in place (on the basis that if full planning is not granted, all reservation fees, deposits, etc. to date are returned in full!).
Let’s talk about the drawbacks of selling “For Sale by Owner.” Basically there are two things to seriously consider:
1) You have to do the work. You’re going to make your own marketing materials, take your own photographs, organize and post listings, etc.
Price the Home Correctly: It is crucial that you research and place the correct price tag on your home when selling it. A reputable real estate agent is the first person to contact to help appraise your home. Many agents won’t lend you the time of day to assist you with this aspect since they aren’t listing your home. But a good agent will do it for you with no strings attached. They realize that their business is based on reputation and referrals. They may not get this listing, but you may want them to represent you in your next home purchase. Or your cousin may need a good realtor’s help in the future. Do your homework. Find similar homes in your area and compare their price tags. Are the homesas attractive as yours? Are they as large as yours? Pricing the home correctly is crucial.
