Everyone’s heard of Houzz and Pinterest, but these sites are a lot more than just a vast collection of online images. They also serve as fabulous resources for homeowners who need a little inspiration and help coming up with a solid plan for their next home improvement project.

The tools available on these sites allow homeowners to not only gain some much-need inspiration, but also to organize their projects, collaborate with professionals, and even do a little shopping.

Houzz

On Houzz, you’ll find an immense array of images and info needed for you to gain some inspiration and ideas for your next home improvement project. Not only that, just about every well-known professional in the world of home improvement and design has some presence on Houzz.

Ideabooks – A great way to start using Houzz is to use an ‘ideabook’, a place where you can save all of your favorite images, notes, products, and other details related to your next project. Ideabooks can also be used to communicate and collaborate with any professionals that will be helping you bring your vision into reality. 

For instance, if you’re currently planning a bathroom overhaul, you can use ideabooks to collect images of bathrooms that have caught your attention and narrow down the specific style, color palette, and finishes that you like. You can then send this collection to the people you’ve hired to help you and show them what you want to have incorporated into your project. Essentially, your ideabook can serve as a workbook that you can use to work together with the experts you’ve brought on board to help.

When using ideabooks, you might want to organize them according to different design elements. These image collections can be a great resource to use if you’re ever feeling overwhelmed with all the choices and decisions that need to be made.

Sketch – The ‘sketch’ feature is another handy tool and makes it easy to communicate with your designer or others using images. It even allows you to add any products you may have found from the Houzz Shop to these photos. You can even write or draw on the images and add some stickers to make communication even easier and faster.

Whether you want to circle a certain feature that gives you some inspiration, jot down room dimensions, or sketch out the location of where you want certain pieces to go, sketch can make this easy.

Pinterest

While Houzz is geared specifically towards homeowners and professionals in the home improvement and design industry, Pinterest is for anyone and anything, including elements of the home.

Pinterest is a website that lets you post and categorize photos on the web. It’s an awesome visual tool that essentially allows you to collect ideas for home design and remodeling by categorizing your images into ‘pinboards’, which are essentially the equivalent of Houzz’s ‘ideabook’. These boards can be used for any room in your home, as well as for exterior components, such as your landscaping and other type of exterior design.

There’s really no limit to what you can use pinboards for. For instance, many users on Pinterest use boards to gather ideas and inspiration for their favorite pieces of art or even their appliances. 

Why is this useful? Creating these boards can help you hone in on exactly what you strive to achieve in your home. And if you’re using a designer or contractor of some sort, your Pinterest boards will give them a clearer idea of what your personal style is, which can help save a lot of time, frustration, and even money. In fact, more and more homeowners and their designers are using Pinterest to collaborate and share ideas to communicate them more effectively and make the job much easier.

Pinterest is also great for finding pieces for your home that you might not necessarily find at a retail store or by doing a Google search on the net. You’d be amazed at all the unique finds that you will discover by perusing this handy site, including furniture, accessories, and fixtures.

If you want to keep your boards private from the 50 million Pinterest users and post them only for your eyes to see, you can do so, but you’re only allowed a maximum of three private pinboards on this site.

Homeowners can use Pinterest in a number of ways to achieve their goals:

Creating a clear vision – It can be challenging for the average homeowner to clearly visualize the precise look that they’re going for. Luckily, Pinterest can help with that. You can have different boards dedicated to various components of your project. Simply think about all the items that will go into creating the final look you’re going for, then include them on your board. This can include things such as color schemes, textiles, lighting, flooring, building materials, furnishings and so forth.

Organizing your items – Once you’ve added all the items as mentioned above, you can then systematize your boards into themes according to the items you’ve added. This is helpful not just for you, but for any designer that you may be collaborating or working with. By creating boards to hold certain items or ideas, you’ll have an easier time honing in on each board one at a time as each phase of your project is completed.

Buying items – Not only is Pinterest a great place to gain inspiration for home remodeling or decorating ideas, it’s also an awesome resource to purchase pieces that you simply won’t find anywhere else. After you’ve managed to narrow down your choices in the above steps, you can begin shopping for them. A lot of the pins for products have links that connect users directly to online stores that sell them, making outfitting your home according to your project specs a cinch.

The Bottom Line

Both Houzz and Pinterest certainly offer a plethora of ideas and sources of inspiration, probably more than you will find anywhere else. But in addition to all the images that homeowners can draw ideas from, these sites are also great resources to help organize projects, choose a design, pick materials and finishes, and communicate with designers and other professionals. With tools like these at your fingertips, planning and designing your next home improvement project has never been easier.

When you’re buying a new home, the last thing you’re probably thinking about is selling it. But not only should you consider how well the home will suit your lifestyle, you should also be thinking about how easy it will be to sell at some point in the future and what its potential value will be.

Even if your current intentions are to stay put for the long haul, anything can change in the future. You might be relocated for your job, or you might suffer a loss of some sort that will warrant a change. Whatever the case may be, considering the resale value of the home you intend to purchase is the smart thing to do.

Look at the property objectively from a future buyer’s perspective. Features that may not necessarily be important to you might be important to the next buyer, and vice versa.

Location

The first – and most important – feature to consider when it comes to ensuring that your home will hold its appeal is the location. Obviously, this is a critical factor to consider for yourself as the location of your home will impact your everyday life.

If you choose a to buy a property in a desirable location, chances are that location will continue to be valuable well into the future. In addition, the home will likely increase in value over time, and in turn, you should be able to attract a larger number of buyers. On the other hand, a location that is not as desirable will have a damper on the future sales price that your home may be able to command as well as the number of buyers it will attract.

That said, anything can happen. Desirable neighborhoods can go downhill for many reasons, while less favorable neighborhoods may experience revitalization that can have a positive impact on the area and the homes within it. In addition, what may not be nuisance for you doesn’t mean it won’t be for future buyers.

A property’s location is its number one selling factor. Choosing a spot that’s in close proximity to employment, good schools, shopping, health care centers, and public transportation is typically regarded favorably and is more likely to remain valuable well into the future. The key is to buy a home that is likely to appeal to the largest pool of prospective future buyers. Taking this into consideration when you’re buying can help increase your resale value in the future.

View

When choosing the location of your home, it’s also important to consider its views. Obviously, it’s much more pleasant to have views of green space rather than a view of an industrial building, and the former would certainly command a higher value than the latter. But be sure to consider whether or not the view is worth paying the extra money for it and if the view will have an effect on the future sale price, particularly if there are plans for any nearby construction.

It should also be noted that buyers in some locations might not necessarily place as much importance on the view for resale value compared to things such as location or size. It’s important to understand your real estate market before placing too much weight on the view.

Lot Size

The lot size and features also play an important role in the future resale value of your home. Generally speaking, a larger lot is perceived as more valuable to prospective buyers than a smaller lot. That said, the lot shouldn’t be so large that it can actually turn off buyers who may see the property as more maintenance than they care to handle.

The features of the lot matter, too. For instance, a flat property is typically more convenient and functional than a lot that is significantly sloped. Where the lot is located in relation to the neighborhood also needs to be considered. A lot on a private cul-de-sac is regarded more favorably than a lot of the same size on a corner near the main road, for example.

House Size

In the same way that the lot size matters, so does the size of the home. Ideally, the square footage should be similar to other homes in the area. A home that’s much larger than all the other properties on the block will probably be devalued, while homes that are too small may not be desirable to future buyers. Homes don’t necessarily have to be “cookie-cutter” as far as size is concerned, but the home you buy shouldn’t be too different than the others in this respect.

Number of Bedrooms and Bathrooms

If buyers in the neighborhood typically look for nothing less than three bedrooms and your home only has two, this could be a major drawback in terms of resale value. While you may be paying less for the home when you buy it compared to other homes on the street with an extra bedroom or two, you’ll need to accept the fact that you’ll be selling it for less in the future.

The number of bedrooms is one of the main needs of buyers. The best value for a home as far as bedrooms is concerned is typically three or four. Young buyers typically look for a minimum of three bedrooms while four bedrooms can attract even more buyers. Any less will likely be viewed unfavorably. If you choose to opt for 5 or more bedrooms, make sure there is a potential market for this type of home and that you’re paying appropriately for the area, regardless of how many bedrooms there are.

As far as bathrooms go, a minimum of 2.5 bathrooms is best. Homes with one bathroom probably won’t get as much attention. One bathroom should ideally be located on the main level for guests, with a second bathroom close to the bedrooms. A master ensuite bathroom can add even more resale value.

One thing to consider if you’re thinking of buying a one-bedroom home is that if you add another bathroom (if the layout and size permit), you may be able to add some extra value into the home yourself that will bring in a decent ROI when you sell in the future.

Layout

The layout of a home is a crucial component in terms of resale value that needs to be taken into consideration. Typically, an open concept layout is what many buyers look for in a home for maximum function and flow. That said, you may be able to add some resale value to a home by knocking down some walls or reconfiguring the layout. Not only will this increase the home’s value, it can also help make it more practical and enjoyable for you.

Storage

One of the main features that buyers tend to look at when looking for a home to purchase is the amount of storage space available. Ideally, the home should have some closet space at the front entrance, an adequate linen closet, and sizeable closets in each bedroom. There should also be space for storing all the larger things, such as garage space, a shed, or even room in the crawl space for additional storage accommodation.

The Bottom Line

Considering the magnitude of a home purchase, you want to make sure that the home you buy checks off as many things on your list as possible to suit your needs. But while you’re considering all the things needed to make life as convenient as possible for you, it’s also important to consider what future buyers might want as well. Thinking about the resale value of your home will help ensure that you attract a larger pool of future buyers and wind up with more money in your pocket.

As a real estate investor, you’re likely already aware of the tax implications of selling investment properties and the profits made from such transactions. Normally when an investment property is sold for more than what was paid for it, capital gains tax needs to be paid on the profit. This can take a huge chunk off of your bottom line, but there’s this little thing called a 1031 exchange that can help keep some of that money back in your pocket.

Thanks to a 1031 exchange, real estate investors can defer paying capital gains taxes if the proceeds of the sale of one property are put directly towards the purchase of a new one. In this case, the transaction is seen as an exchange instead of a sale.

As good as this may sound, there are still some stipulations governing a 1031 exchange that all real investors should know about before taking advantage of them.

The Property Must Be For Investment Purposes

A 1031 exchange only applies to properties that are specifically bought and sold for investment purposes. That means you can’t take advantage of this tax tool when you sell your own personal residence. And while interests as tenants in common may qualify, exchanges of partnership or corporate stock interests don’t.

You Have 45 Days to “Designate” the New Property

From the moment you sell your original investment property, you have 45 days to find and “designate” in writing a new property that you want to buy. Any money that you make from the sale of the original property is held by a third party until the purchase of the new property closes.

The Deal Needs to Close No Later Than Six Months After Selling

The closing of the new property that you purchase needs to occur within six months (or 180 days) of the sale of the old property. You can’t drag on the closing of a new home if you want to ensure that your transaction qualifies for a 1031 exchange. This time period begins after you’ve found and designated the replacement property.

You’re Allowed to Identify More Than One Replacement Properties

According to the IRS, real estate investors are allowed to identify up to three properties as the replacement property, as long as one of them results in a successful purchase. This gives investors some leeway in case one of the deals they may be working on falls through. 

That said, investors may be able to identify more than three replacement properties as long as they qualify under a specific valuation rule. In order to qualify for a 1031 exchange, the combined value of all identified properties cannot be any more than 200% of the value of the old property or properties.

The New Property Must Be Worth More Than the One Sold

In order to benefit from a 1031 exchange, the new property purchased needs to be worth at least the same amount as the property being sold. If you pay less for your new property, you’ll be stuck paying taxes on the difference between the two prices.

Any Reduction in Loan Liabilities Will Be Taxed

It’s important to take into consideration the mortgage that you carried for the old property versus the one you now carry with the new one. If your loan liability decreases, that amount can be taxed. For instance, if you carried a $700,000 mortgage on your old property and the mortgage on the new replacement property is $500,000, you’ll be considered to have a $200,000 gain that will be taxed.

The Bottom Line

The 1031 exchange is certainly a welcomed tool to help real estate investors reduce their tax obligations, but it still must be utilized properly in order to qualify and take full advantage of them. Before you decide to sell an investment property, speak with a professional accountant or tax consultant who can help guide you and ensure that all your ducks are in a row before you finalize any transaction.