What Is Confidential Real Estate?

When we think of selling a house, we think of the traditional: “For Sale” sign in the front yard, a social media post, a listing on a real estate platform, and maybe asking around for any realtor recommendations. This might be common practice, but it’s not always the best option for sellers (and it’s certainly not the only way).

Confidential real estate offers a more private alternative to selling, ideally without losing much buyer reach or selling potential. There are several reasons why a seller might go this route. Find out if working with a confidential real estate company is a better option for you.

Why do people choose to sell confidential real estate?

Selling isn’t always a joyous occasion that marks an exciting next chapter. For some sellers, putting their property listing out there for all the public to see is the equivalent of airing dirty laundry. Confidential real estate is a way for sellers to list their property with more discretion.

Who can sell their property confidentially?

There are several instances where people might choose to sell with a confidential real estate company:

Divorce

Moving is painful enough as it is, add divorce into the mix and you’ve got yourself a living nightmare. For many people undergoing divorce, listing their house traditionally means having neighbors, acquaintances, and anyone else in the area gaining access to news that they might not want to share. Confidential real estate offers some much-needed privacy.

Foreclosure

Just like divorce, there can be a lot of shame with losing a house to a foreclosure. The last thing anyone wants in that situation is for random neighbors or people at work asking them about their money troubles. Confidential real estate can stop someone losing their house from becoming the talk of the town.

Businesses

Businesses move and it might not always be for dire reasons — in a lot of cases, it’s to a better location or bigger space (all positive things). That being said, a “For Sale” sign in your favorite restaurant’s window can send anyone into a panic.

Business owners usually go the confidential real estate route — they don’t want to scare their clients into a panic. It’s why you’ll notice most businesses announce their move right as it’s about to happen, after the sale.

Are there any downsides to confidential real estate?

Yes, but only if you don’t work with the right company. We’ll dive into that in a minute, but in the meantime, here are some of the drawbacks a confidential seller might run into:

  • Less exposure: Keeping a house sale out of the public eye could mean fewer potential buyers.
  • Fewer resources: Homeowners don’t list with the MLS and Zillow doesn’t list commercial properties.
  • Lower offers: With less exposure, fewer resources and subsequently, fewer interested buyers, property owners might not get as high of an offer.

RealtyHive: An Unmatched Confidential Real Estate Company

Zillow can’t help business owners, but RealtyHive can. We frequently list commercial properties in a confidential manner, but that’s not all we do:

  • Non-MLS marketing: We provide strategic marketing to get your property the exposure it needs.
  • Selective listings: Don’t want to list your foreclosure in your neighborhood? No problem. We can exclude cities, states, and even countries from marketing.
  • Screened calls: Our customer service reps answer calls for you (or on behalf of your agent) for another layer of protection and privacy.

You deserve as much of peace of mind as possible when selling your house. RealtyHive makes that happen. Work with us to get the best confidential real estate experience possible.

Why Buy in an International Real Estate Development?

International properties in general are an amazing buy. They offer rental investment opportunities. They’re about as superb a vacation home as you can get. Plus, there are often tax laws that make owning an international property both lucrative and more affordable than you might realize. 

But as you look through international listings, it can be difficult to find the right one, especially when you don’t know much about the culture or laws where you’re buying. There’s an easy solution: go with an international real estate development. These developments are one of the most solid options you can choose from.

What is an international real estate development?

International developments are often gated communities or apartment/condo complexes. They have security access and the properties (condos, apartments, or houses) are available for purchase.

Why buy in an international real estate development?

Safe

As mentioned, these developments are usually gated, often with 24-hr security access. This can serve as a relief to homeowners who feel some unease from living in a foreign country. It can be intimidating when you’re new to language and customs. Wanting to feel secure — especially when out of your comfort zone — is natural.

Amenities

International developments often have tons of amenities onsite, and we’re not just talking about the pool. Amenities may include (but are not limited to):

  • Stores
  • A bank
  • Pharmacy
  • Workout facility

These conveniences makes many of your vacation plans easier (which is exactly what we all want when on vacation). If you want to rent out this property, it makes your place all the more enticing.

Resources

One of the biggest amenities is being surrounded by concierge and staff from the area. Whether you need a doctor, are hoping to buy a car, or even just want the deets on the best restaurants in town, they’ve got you covered. 

Westerner-friendly

If you want a vacation home where English is widely spoken, an international real estate development is practically a must. Most of these developments have English-speaking staff. Plus, US dollars are generally accepted and homes are more in the style of US/Canadian homes. International developments offer a lot of the “home away from home” vibes that many property owners are looking for.

Pay Structure

A lot of times, foreigners can buy from an international real estate development by paying in chunks. It’s not always easy to get a mortgage when buying abroad, but developments make it easier.

More Opportunity

Certain countries don’t allow foreigners to buy or own land whatsoever. Or, there are limitations in place (such as buying a foreign home from another foreign seller). Developments open up buying opportunities for foreigners in ways that would not otherwise be possible.

We’d all love to sip mojitos poolside in a beautiful destination abroad but arguably, we’d love it even more if it was a home away from home. Whether you’re ready to find your dream vacation home, are looking for a new rental property investment or just want to dream a little, look through the RealtyHive international listings for some incredible international real estate developments!

Procuring Cause: The #1 Reason Why You NEVER Call a Listing Agent

You’re driving through a neighborhood when suddenly you see it. The house you’ve always loved at a distance, now with a “For Sale” sign in the front. Excitement bubbles up and you pull over to get the phone number on the— STOP RIGHT THERE.

Do NOT call the number. Calling this number throws a real wrench into a lot of people’s plans, and could even shortchange you thousands of dollars. Here’s why:

Whose number is on the “For Sale” sign and why shouldn’t I call it?

That real estate agent is known as the listing agent, and they work for the seller. You don’t want to work exclusively with them because the listing agent has the seller’s best interests in mind. But there’s another reason not to work with them, and it’s called the procuring cause.

What is the procuring cause?

Let’s say you call the number on the “For Sale” sign and work with the listing agent, named Lisa. You meet with Lisa and she shows you the property. 

Now that’s all fine and swell, but you actually want Bob the buyer’s agent as your Realtor because you know he will represent you best. However, since Lisa already showed you the property, she could say that she actually gets Bob’s commission because of the procuring cause (she already showed you the house). This inadvertently throws Bob under the bus.

How can I avoid the procuring cause?

The easy answer is to not call the number you see on the sign. Not only does that protect Bob’s commission, but it could protect thousands of dollars that you could get as cashback at closing by using Cashifyd.

How does Cashifyd work?

Cashifyd is a way for you, the buyer, to take advantage of realtor referral fees and get money towards your closing costs. It’s simple to use and should be every buyer’s first step! Here’s how it works:

  1. Tell us about the property you’re interested in.
  2. Submit your info.
  3. Hear back from agents about offers and cashback.
  4. Pick your agent and connect with them.
  5. Buy the property, get cashback at closing!

The next time you look through our listings or see a property you’re seriously interested in, don’t call the listing agent. Don’t run into the procuring cause. Do get connected with Cashifyd to find a real estate agent near you who’s looking out for your best interests. It’s easy, it’s fast, and it leaves you with solid cashback to help with closing costs — it’s the only way to go.

Shill Bidding & Other Shady Auction Tactics

Using an auction to buy or sell a house has long been thought of as “unsavory.” Many sellers have seen it as a last resort, an act of desperation. This isn’t a completely unfair analysis — there are lots of auction tactics out there (such as shill bidding) that range from questionable to downright shady.

RealtyHive does not condone any such practice. We distance ourselves from shady auction tactics entirely, but all the same we think it’s a good idea to keep your eyes out for anything that could potentially rip you off. 

Shill Bidding

Shill bidding is one of the most common examples of a shady auction tactic. In shill bidding, a seller will have a friend or family member place bids to drive up the competition. While the backfire could lead to the “fake” bidder having to pay up, the potential benefit could gain the seller a lot of profit.

When it comes to selling a house, shill bidding is designed to help the seller. It absolutely hurts the buyer. This comes as a surprise to most people, but many real estate auction sites allow sellers and even agents to bid on their own property.

Rest assured, RealtyHive has a strict no shill bidding policy. We make sure no sellers have any part in the bidding process of their own properties.

Adding Time

Most auctions have a set time where people can place bids. At the end of that time, the highest bid is the winner — a format most of us are very familiar with.

However, some auction sites say they have a set time but it’s not actually the case. For example, a site might hold bidding from 10 a.m. to 4 p.m. If a bid comes in at 3:59, they add two more minutes. This keeps going until no more bids are added.

Again, this might seem beneficial to sellers, but it hurts buyers by providing more leeway to hike up the price. At RealtyHive, we’ve designed our bidding structure to be as fair as possible.

Reserve Price

Some auction sites say that a seller can only sell when a Reserve price is met. Oftentimes, they won’t tell the buyer what this is. If this mysterious Reserve price isn’t met, the site might put the property for sale again. This tactic might not hurt someone outright, but it could still pose an inconvenience. At the very least, it’s best to work with an auction company that’s as transparent as possible.

Overpriced Listing

Savvy buyers and those who work with agents will likely not have to worry about this, but it’s a shady auction tactic to watch for all the same. An auction site might take a home that’s worth, say, $300k and put the opening bid at $400k. Again, this helps the seller but drives the price up for the buyer, unnecessarily.

More than anything, when it comes to buying or selling a house, you want to do your due diligence. This is true regardless of if you work with an auction site or not. But the great thing about RealtyHive is that you don’t have to be wary or worry if you’re getting ripped off. 

You can use an agent (and if you use Cashifyd, you can get cashback at closing but it’s OK if you want to use your own). You can finance your house as you would normally buy a house. You can still put in an offer before the bidding day. You can take a walk-through. As a buyer, you might score a deal and as a seller, you might make an even greater profit.

Don’t risk it with shady auction sites — work with RealtyHive for a verified and trusted time-limited event.

Is It Worth It: Home Security Systems

Castles had moats, China built the Great Wall — humans have a history of wanting to protect their domain. But when it comes to protecting your home, are home security systems worth the cost?

That’s what we’ll figure out in our latest Is It Worth It installment. We’ve covered backyards and basements and in this post, we’re checking in on home security systems.

Some security measures are legally required.

While we will dive into advanced home security systems, it’s important to note that there are some basic security measures that every house needs. In every state (except Kansas, for some reason), houses must have a smoke detector and many states also require carbon monoxide detectors.

Even if your state doesn’t have laws on smoke and carbon monoxide detectors, it’s just good practice to install them. They’re inexpensive, they rarely need battery changes, and they truly can save lives. Keeping a fire extinguisher on hand is also a good idea.

Are home security systems worth it?

A security system like ADT can range from $9 to $14 a week, or between $468 and $728 annually.

This is a fairly hefty expense, but here are some reasons why a home security system could be a good investment:

Provides a Sense of Security

It goes without saying that this benefit adds protection and can eliminate stress. Many homeowners consider a security system worth every penny, regardless of cost. No one needs a reason to get a security system, but it might be of extra value to homeowners who travel a lot, or those who stay home with kids. 

Lowers Homeowners Insurance

Homeowners typically pay at least $1,000 a year for insurance. Some studies suggest that purchasing a security system could lower your annual insurance costs by 10 percent. This percentage might go as high as 15 percent or more if your system calls the police during an event.

Potentially Tax Deductible

If you work remotely and have a home office, you can potentially write your security system off as a business expense.

Increases Home Value

According to Forbes, “The top five technology features [home] buyers would like to have are security cameras, video doorbells, programmable thermostats, a wireless home security system and lighting control system.”

Three of those five features were security related. Smart home security systems pique buyer interest and add resale value to your property.

Security Systems Tend to Be Successful

Studies have shown that burglars tend to avoid houses with security systems. When multiple houses have these systems, burglars typically avoid those areas altogether. 

One thing to note:

Security measures like a video doorbell or security camera are fixtures. Unless you specify otherwise when planning to sell your home, don’t plan on taking these things with you. Keep in mind, if you do take them with you, you won’t get the benefit of increased home value.

Verdict

Homeowners who don’t feel like their safety is threatened will have to decide if several hundred dollars a year is a worthy cost. But if you want to feel as protected and safe as possible, a home security system is a good investment. Check out reviews.com Best Home Security Systems. You’ll see some financial advantages firsthand and get the peace of mind you’re looking for.

How to Stage a Bedroom

They say all the world’s a stage and when it comes to selling your house, this is especially true. Staging is a crucial aspect to selling and while we’ve covered bathrooms and kitchens, we’re onto another important part of the house: the bedroom.

Some people turn their bedrooms into an elaborate living space, others treat it as a functional place to catch some Zs and nothing more. No matter where you fall on the spectrum, there are plenty of ways to make sure your bedroom will pique buyers’ interest (instead of turning them away).

Organize your closets.

One of the first things interested buyers will look for in a bedroom is the closet. If you were planning on stuffing everything into your closets as a means of organization, think again. Hang everything up, move dirty laundry elsewhere, and organize shoes.

You can also use this as an opportunity to donate clothes. Since moving is on your horizon, cleaning out your closet and making donations means you’ll have less to pack.

Make sure every bedroom follows the same four rules.

Whether it’s a master bedroom, your 10-year-old’s room, or your teenager’s room where they seem to be a permanent fixture, every room should meet the following expectations:

  1. Make the bed
  2. Clear the floor
  3. Dust all surfaces
  4. Organize and tidy everything else

Your child’s room doesn’t have to look like a Pottery Barn ad, and you certainly don’t have to change out their Minecraft-themed bedding to stage properly. Consistency is more important. 

Keeping consistency in every bedroom puts guests at ease — they know what to expect in each bedroom. This is important because one of the most immediate turn-offs for buyers is when something is out of place or comes across as a surprise.

Don’t forget: the nose knows.

Bedrooms are where we sleep, it’s true. They’re also where we pile our dirty laundry and occasionally wake up, mouth wide-open, with drool all over our pillows. Suffice to say, bedrooms can sometimes contain some unsavory scents. Air things out, light some candles or diffuse some oils, and take care of laundry (and wash sheets) regularly. 

Smell is one of our most powerful senses. Just recently, this writer toured a townhouse for a foreclosed home selling as-is. Everything looked decent until I opened the fridge door to find two rotting eggs inside. Anytime I think of that property, that scent (and subsequent scene) is the first thing I think of. You don’t want your bedroom to have that kind of effect on potential buyers.

Stash valuables and nonessentials.

It’s unlikely that someone touring your home will take anything. All the same, it’s good practice to put a lot of your stuff away — clutter is distracting and distracted buyers quickly lose interest.

Jewelry boxes, picture frames, and other tasteful, small decor can stay out. Toiletries, clothing items, handheld game consoles, iPads, etc. should all go out of sight before buyers or photographers come.

Open blinds and curtains.

Natural light is staging’s best friend. It’s helpful for photographers and appealing to potential buyers. Consider adding a lamp if your room doesn’t get a lot of natural lighting — it’s best to keep things as well-lit as possible. 

What if my bedroom is a disaster zone?

First off, we get it. Bedrooms are where we go after a long day of work. Sometimes all we can do is throw our dirty clothes on the floor and collapse on the bed. Things accumulate over time, and getting multiple bedrooms in order might seem like more trouble than it’s worth.

Regardless of whether your house is spotless or you simply don’t have the time or resources to properly stage your bedroom, list with RealtyHive. You can sell fast, easy, and on your terms with RH — no matter the condition your home is in. Learn more about the benefits of selling with a time-limited event and if you decide to tackle bedroom staging, good luck!

Home Closing Costs: The “Hidden” Fees That Surprise Buyers

You’re ready to buy a home. You’ve saved for a down payment. You’re about to close when WHAM — you’re shocked to learn that you owe several more thousand dollars than you expected.

Closing costs have struck another unsuspecting buyer yet again. Most first-time home buyers think of the house price as the only thing they have to account for. Some might take sales tax into account, but many don’t realize that home closing costs are going to take a chunk out of your wallet.

What are closing costs?

Many people and entities are involved when a home closing transaction takes place. The title company and appraisal company are just some of the involved parties that render payment for their services.

Here are just some of the things that closing costs cover:

  • Escrow fee (goes to the title or escrow company for managing the closing)
  • Attorney fee
  • Courier fee (the cost to transport documents)
  • HOA transfer fee (paid for by the seller)
  • Homeowner’s insurance
  • Title insurance

Again, these are only some of the main costs — talk to your real estate agent or closing attorney so you know what to expect.

What are average closing costs?

Closing costs depend on the state, but you can expect to pay anywhere between 2 and 5 percent on the house purchase price. For a $200k home, your costs could range from $4,000 to $10,000.

One thing to note: that 2-5% range is for the buyers to pay. Factor this is when looking at house prices, and plan on paying for it upfront!

Are closing costs covered by the buyer or the seller?

Both parties will have some share of closing costs to cover. For example, if you’re buying a house with an HOA, the seller has to prove that they’re up-to-date on their dues and transfer things over to you. The seller has to pay for this transaction. 

Other fees, such as the home inspection, are covered by the buyer. Sellers and buyers can negotiate over who pays for what.

Do you have to pay closing costs in cash?

Sellers will often have their fees deducted from their profits. Buyers will most likely have to pay in cash or with a check. However, there are some no-closing cost mortgages where buyers don’t have to pay when closing.

That being said, a no-closing mortgage could come back to bite you. You might receive a higher interest rate, or the lender might add the closing costs to your mortgage (which means you’re now paying closing fees, but with interest). Either way, it’s much better to pay your portion on closing day.

When do you find out how much you owe?

Your lender will give you a Closing Disclosure statement at least 3 business days prior to closing. This statement goes over each of the closing costs.

Zillow recommends that buyers “compare [the Closing Disclosure statement] to your Loan Estimate and ask the lender to explain what each line item on your closing costs is and why it is needed.” The last thing you want is to walk into closing day and come across some unsettling or unknown surprises.

Is there anything buyers can do to lower closing fees?

You can negotiate with the seller, but this isn’t a guarantee. One thing that can help is to find an agent through Cashifyd. This RealtyHive program allows you to choose an agent and come closing time, you’ll get cash back that can be used towards the closing costs — solely from working with Cashifyd.

Using the cashback as a form of a credit acts as a rebate that goes directly to your closing costs. For buyers, this lowers the amount you need to pay; for sellers, this increases the amount you walk away with! Avoid those “hidden” closing fees — learn more about Cashifyd and see how you can save.

What’s the Difference Between a Lease & Leasehold Property?

The United States loves to pride itself on freedom, and owning property is no exception. Nearly every property in the US is a freehold property, in which you own a place or land, free and clear.

But in many other places around the world, leasehold properties are more common. It’s important to know the distinction between freehold vs. leasehold, as well as leasing vs. leasehold, especially if you ever want to buy property abroad.

What is a leasehold property?

A leasehold property is where you lease, or, rent, the property, but don’t own it. In some countries, leasehold properties are common, if not the exclusive way to live in a house. In Vietnam, for example, no resident can own a house outright.

In many other countries, residents can own freehold properties but foreigners cannot.

How is a leasehold property different from a lease?

Even though we don’t call them “leasehold properties,” we still have leases in the US, right? Aren’t they the same thing?

Duration of Lease

One of the biggest differences with a leasehold property and a traditional lease that we think of here in the states is the length of the lease. The concept of leasing is the same, but leasehold titles last for much longer — anywhere from 25 to 99 years — whereas leases are for 6 months, a year, month-by-month, etc. 

Corporate vs. Residential

The US almost exclusively deals with freehold properties, but not always with commercial properties. Foundations, companies, and nonprofits will allow for leasehold properties — but again, even in this instance we still refer to this as a lease.

“Lease” vs. Title

Leasehold properties still provide residents with a title to prove “ownership.” As most of us who have ever rented know, tenants sign and get a copy of the lease, but it’s all temporary. There are also restrictions that renters often have to deal with that leasehold property “owners” don’t. Painting the walls, hanging certain things up, and smoking in the property are just a few examples.

Is a leasehold property my only option for owning internationally?

Not necessarily. If you’re hellbent on owning a freehold property, there are two ways to make this happen:

  1. Find a country where foreigners are allowed to own property (Belize is one of the most popular countries where US residents buy).
  2. Own a condo or apartment. This works in some instances because you’re not technically owning the land.

Keep in mind, however, that other countries’ rules and customs should be respected, not treated as something that you’re exempt from. If you think another country’s way of doing things is “wrong” or “backwards,” you probably shouldn’t be buying there.

Now comes the fun part: finding an international property! RealtyHive has a mix of freehold and leasehold properties around the globe. Look through our listings and find your ideal vacation abode, rental, or home away from home.

Everything You Need to Know About Selling an Inherited House

While inheriting a house is a blessing to some, it’s a curse to others. Maybe not a curse in the horror movie/haunted house sense (at least, we’d hope not), but it can be emotionally draining and a time-consuming hassle to deal with. 

No matter your reasons, if you’ve inherited a house and want to sell it, you’ve come to the right place.

Is selling an inherited house the same as selling a regular house?

Simply put, no — there are different things to handle and deal with. Here are some important questions to consider before we dive in:

  • Does the house have an existing mortgage?
  • Are you the sole inheritor or was it left to multiple people?
  • Have you lived in the house?

Does the house have an existing mortgage?

Finding out if there’s a mortgage or reverse mortgage right away. Do not pass go until you do! Whether or not there’s a mortgage determines your timeline, as well as the price you need to get for the house.

Are you the sole inheritor or was it left to multiple people?

Regardless of your answer, you’ll likely want to hire a real estate agent (use Cashifyd for cashback at closing). They’ll have the best understanding of how selling an inherited house works, especially if multiple people are involved. Plus, as of May 2020 we’re in the midst of a really hot market — agents often are able to ask for (and get more) for properties.

Not to mention, an agent takes so much responsibility out of your hands. Especially for those who are grieving the loss of a loved one, trying to sell a house ends up being just another burden. Agents can also navigate the family dynamics that can sometimes boil over when the will gets read.

In addition to an agent, hiring a lawyer might also be a good move. If your family/other inheritors can work out the kinks on your own, you’re probably fine. But lawyers are overall useful for changing over titles, establishing real estate trusts, and other complex legal components of home selling.

Have you lived in the house?

If you have, you’ll likely need to fill out a condition report that states the defects of the home. If you haven’t, you won’t need to fill this form out but you will have to sign some paperwork that says you never lived there.

There is some benefit to living in the house before selling, particularly if you qualify for the Home Sale Tax Exclusion. When you inherit a home, you won’t be eligible for this exclusion unless you live in the property for at least two years. After that, you might qualify and have the first $250k-$500k of a home sale be tax free.

Another thing to note: The value of the house is calculated on the day the original homeowner dies. But if you sell your inherited property at that value, you won’t have to pay taxes. However, if you sell this property above fair market value, you’ll have to pay taxes on the difference (i.e. a $700k home that goes for $710k would mean you’d be taxed on just that extra $10k)

When is selling an inherited house a good idea?

To be clear, if you want to keep the house in the family, we’re not here to push you. We just know that there are some major benefits to selling an inherited home, both financially and sometimes emotionally. It makes sense to sell if:

  • The house is a source of grief
  • You don’t have the time to deal with the property
  • You live far away from the property
  • Selling would provide you more immediate financial relief

If you decide to sell, you’ll probably want things to go as fast as possible (while still getting your money’s worth). Use RealtyHive as a resource. Our time-limited events connect motivated sellers with motivated buyers, and you could even get some additional cash back in the process. Learn more about the benefits of selling — we hope that whatever happens with your inherited house ends up being the right move for you.

What Is an ADU?

While folks in LA or the Bay Area might be familiar with the term “ADU,” it’s still pretty uncommon. We predict, however, that this form of housing will grow in both understanding and popularity over the next several years. As the population grows, it might become more of a necessity (and a great rental property investment option for those wanting to get ahead of trends).

What is an ADU?

ADUs are accessory dwelling units; in other words, a secondary residence that’s on the same property as a primary residence. Examples include:

  • A guest house
  • A detached garage or shed that’s been remodeled to a livable space
  • A completely new building

ADUs have to have their own entrance that’s separate from the house, a kitchen, living area, bathroom, and all the other components you’d expect to find in a house.

Why do ADUs exist?

Cities like San Francisco or Denver have a lot of older (usually pretty big) houses, oftentimes with carriage houses or detached garages. These cities have also experienced massive population booms as of late. 

When rental units are hard to come by and houses are nearly impossible to afford for the average Joe or Jolene, homeowners who already have these houses can turn the spare residence into a rental.

Does an ADU have to be an existing building?

Homeowners can build new ADUs on their property. However, there are a ton of building codes, zoning ordinances, and other regulations that need to be factored in. Building a new ADU is no easy feat — if anything, just getting approved to have one is sometimes more challenging than actually constructing one.

Are ADUs a good rental property investment?

Potentially. Here are some of the pros and cons of ADU rentals:

Pros:

  • If you already have a carriage house or apartment above a garage, renovations are likely much cheaper than buying a brand new property.
  • Having a rental property on your own property makes it more convenient to renovate (you won’t have to drive anywhere).
  • Depending on your area, a well-constructed ADU could be in high demand.
  • ADUs add more housing in an area that doesn’t have more land to build on.
  • Adding an ADU could also add more value to your home.

Cons:

  • Taxes could be so high that you wouldn’t turn a profit.
  • Zoning and building permits can be some of the biggest hassles and take a ton of time.
  • ADUs are still a new concept; many potential renters might lean towards a traditional apartment or house.
  • Many subdivisions or cities don’t allow them.

Bottom line, if you’re interested in an ADU for your property you should definitely consult with the city to see if it’s allowed, as well as check in with a tax professional before diving in. Weigh out as many costs as you can beforehand. 

If it doesn’t seem feasible but you still want to own a rental property, look through the RealtyHive listings! We connect highly motivated sellers with interested buyers through our time-limited events. Find your ideal rental property through RH.