How to Lose Money in Real Estate

We’ve talked about how you can make money in real estate, but what are some ways this investment can backfire? By knowing how people can lose money in real estate, you’ll be better prepared to make a good investment.

Market Downturns

This is one of the most well-known ways of how a good home purchase can turn into a bad real estate investment. The impacts of the 2008 housing market crash are still felt by many today.

The good news is that a housing bubble and subsequent bursts can be tracked. There are no guarantees, but even in the years leading up to 2008’s crash, many people were already nervous about where home prices were headed. Read up and stay informed on the state of the housing market to help make good real estate investments.

Bad Neighbors

While you might be able to put up with the Urkels and Kramers of the world, future buyers probably won’t. From nearby factories to neighbors who care little for their curb appeal, bad neighbors can negatively impact your home sale.

Bad History

A death in your house — even if occurring naturally, and even if from a previous owner — spooks people from wanting to buy. Unfortunately, there are enough horror movies to scare potential buyers from wanting a home with some, erm, history.

Going Over the Top

Rapper 50 Cent had to take around an 80% cut on his mansion. Michael Jordan still hasn’t sold his Chicago home. The more over-the-top your place, the more niche your buying market becomes. This inevitably lessens your chances of selling.

Some personalized details to your home are OK, but there’s a fine line between “unique” and “eccentric.” Before making any substantial changes, remember to think with a seller’s mindset — you won’t own this home forever.

Too ________

Too big, too much carpet, too many cobwebs, too little closet space, etc. Buyers are like Goldilocks — they want a property that’s juuuust right. Keep up on current trends to know what buyers are looking for

And remember — if there are things that bother you about your property, they’ll likely bother others. It’s better to make those changes now and increase your home’s value when it’s time to sell.

If you’re reading this list and wailing at all the boxes your home checks, don’t despair! RealtyHive offers time-limited events to make selling easier. Even if you’re ready to get rid of your home as-is, we’re the ones to call. Sell with RealtyHive for a stress-free process.

Rebates for Homebuyers (And Sellers!)

It’s tough and competitive to be a real estate agent. In most states, agents try to set themselves apart from their competition by offering real estate rebates to potential homebuyers. Find out how rebates work, and how our new Cashifyd app can help buyers and sellers alike.

What are real estate rebates?

Real estate rebates are incentives, usually monetary in some way, that agents offer homebuyers who choose to work with them. This might be cash back after closing (usually up to 1% back from the broker), a gift card, or some other type of gift.

Are rebates hurting consumers?

The Justice Department did a study on this very topic. They found that rebates are actually helping consumers because it’s saving them money on such a huge investment. Even a little bit of savings can go a long way.

Can anyone get a real estate rebate?

No. There are nine states that do not permit rebates. Rebates are prohibited in Alabama, Alaska, Kansas, Louisiana, Mississippi, Missouri, Oklahoma, Oregon, and Tennessee. Iowa doesn’t allow rebates when two or more brokers are used

Traditionally, rebates are only for homebuyers. Sellers have to pay commission for real estate agents, so they could try to negotiate paying a lower commission. But this isn’t exactly a rebate or incentive for sellers — they’re just paying less money.

However, rebates are about to change and include sellers as well. That’s because RealtyHive is introducing Cashifyd, the only app that allows buyers and sellers to get cash back on a home sale.

Make Yourself the Middleman With Cashifyd

Cashifyd is a self-referral marketplace — the first and only of its kind. 

  • If you are a seller looking for an agent, you’ll still pay for their commission. The difference is that by looking for agents through Cashifyd, you’ll actually get money back.
  • If you’re a buyer looking for an agent, you’ll receive a referral rebate when working with Cashifyd.
  • If you’re an agent on Cashifyd, you only pay referral fees when sales happen. No more having to pay big real estate databases for leads that lead nowhere.

How do Cashifyd rebates work?

Other real estate rebate programs have it where you only get cash back if it’s a house that a particular site or company is selling (or helping you buy). In other instances, you might only get a rebate by working with a specific agent.

With Cashifyd, rebates apply for any property and almost any agent — we say “almost” only because the agent has to agree to partaking in this. But as of this blog post, we haven’t had anyone say no!

Cashifyd rebates do not work in those aforementioned nine states, but otherwise can be used around the world. Even buying an international property could land you a referral rebate! And as mentioned, this is the only option for sellers to get a rebate, too.

RealtyHive strives to make buying and selling a better experience for all. Get ready for the Cashifyd launch, and start saving money on your next home sale or investment!