Hot Home Trend: Colorful Appliances

t’s another way to spice up an all-white kitchen without paint.

Listen to the segment “Hot or Not?” on Real Estate Today to learn more about the latest kitchen trends.  

By Jillian Pretzel

EnvelopeFacebookTwitterLinkedinPinterest

By Kathleen Willcox

5 Stress-Reducing Tips for Planning Your Long-Distance Move

By Realtor.com Creative Studio

When you’ve found the perfect house, you may be surprised you have to work around a property easement. You’ll want to include learning about any easements among your steps to buying a house because the rights granted by an easement could affect your privacy and future plans for the property. 

What is an easement on a property? 

An easement grants someone else the limited right to use your land for a specific purpose. Common easements include access to shared driveways or sidewalks, utility company access to cables and piping, or access to a pond or hunting land adjacent to the property. In some cases, an easement can be unfavorable, such as when it allows someone to cross your property to reach theirs.

As a homebuyer, before you offer to purchase a house, you should determine if the property has an easement. If you’re working with a real estate attorney or title company, they’ll run an easement search on your behalf. 

To search for property easements on your own, follow these four simple steps: 

Check with the county land records office or the county clerk to determine whether the prior deed shows an easement.

Check with the utility companies to see if they have a property easement. 

Order a property survey to identify any easements and where they’re located.

Ask the owner for a warranty deed. A warranty deed shows that the grantor (or current owner) guarantees, or warrants, that they have legal title to the property. It also shows property easements. 

If you discover that the property has an easement, you’ll want to know if the property you’re buying is the dominant or servient property before making an offer. If you own the dominant property, you’re the easement user and can make full use of the property according to the terms of the easement, often whenever reasonably convenient.

If you own the servient property, you must allow the dominant property owner to use your property according to the easement terms. Here’s a rundown of the most common types of easements used in real estate today. 

Common types of easements and how they affect you as a property owner

Different easements have consequences and required actions based on the terms of each easement. Here is a list of the most common easements and how they can affect you as a property owner. 

Utility Easements

This type of easement gives public utilities – gas, electric, water, and cable/internet companies – the right to access and maintain equipment on your property to provide service to the community as a whole. This easement doesn’t give a utility company the freedom to do anything they want on your property, just the right to perform necessary actions for the community’s good. 

For example, the utility company may install underground lines or utility poles without your permission. A utility easement can also restrict your own actions on your property — like planting a tree – that could interfere with power lines. 

Public Easements

These easements give the general public a right to use the area according to the easement. For example, if you have a sidewalk in your backyard that leads to a local park, people can use that sidewalk at any time if the city has an easement for it. 

Easement Appurtenant

This type of easement is tied to the property itself and remains in place even if ownership changes. An example of this is an easement on a property that offers the only access to a private fishing pond shared by two neighbors. Even when the property sells, the new owners must continue to allow their neighbors access to the pond through the easement because the easement stays with the home.

Easement in Gross

An easement in gross is tied to a person or entity, not the property, such as utility easements. Another example could be an easement that allows a friend to hunt or fish on your property. Because you granted the easement to a specific party, the easement is irrevocable until you, as the easement holder, pass away or sell the home.

Upon the sale of a property, the seller may transfer the easement in gross to the new owner, but they can choose to deny the easement. However, if the easement has been granted to a public entity like a utility company, the public entity could challenge the denial in court. A new homeowner can also transfer the easement to a new servient property, but the dominant easement holder cannot transfer their rights.

Such as in the fishing pond example above, your friend cannot transfer the easement to another person and give them rights to use your property. Neither can the utility company transfer its easement to another company without your consent as the property owner. Any new homeowner buying a new property must file for a new easement. 

Implied Easements

Implied easements are not written contracts. However, if two neighbors have agreed to a specific use of the property a certain way over time, an implied easement can serve as a legal theory for the party who isn’t the owner to gain an easement. If a dispute arises, this habit or past use pattern will serve as grounds for the easement. An implied easement does not appear on a deed and could be disputed if the property changes hands.

Prescriptive Easements

Prescriptive easements occur when someone openly uses your land regularly for a particular purpose over a specific time. For example, suppose your neighbor cuts across the property as a shortcut. They may not have an official road, but continued use without objection from the property owner could create a prescriptive easement.

Another example of a prescriptive easement would be when a homeowner allows the neighbor to use their boat dock. The neighbor never specifically asked permission but has been using the boat dock for the last five years. The neighbor could get an easement of prescription to continue to use your property for such activities in the future.

Easements by Necessity

Easements by necessity can be granted out of an absolute need if your property comes between your neighbor and access to their land, such as a public road or a sidewalk. This can also happen in landlocked situations if your property is behind another property with no road access. An easement by necessity can be either implied or written, based on the fact that the other party must be able to fully use their property.

How can you deal with negative easements?

Once in place, an easement stays with either the property or person depending on the type of easement described above. Change in ownership does not always provide grounds to revoke an existing easement. As the new owners, you must abide by the easement terms. If you want to take action on an easement, you can contact a local real estate attorney in your area to help.

Some easements may also have an expiration date – instead of fighting an undesirable easement, you can simply wait until it expires. You could also talk to the party involved to see if they’ll release their easement rights. If that approach fails, another remedy is to offer to purchase their land. Merging the two properties under one owner will cancel the need for the easement.

If you can terminate an easement, you need to record the termination with the local recorder’s office. Recording the termination will also help you if there are issues in the future. 

As a new homeowner, you may have some rules to follow in connection with an easement on your property. When you understand the type of easement placed on the property, you’ll be in a better position to decide whether to contest the easement or allow it to stand.

You have a lot of things to consider when house hunting. One of the most significant is –  do you want a home that you could move into tomorrow or a home that you can fix up and customize to your liking? Choosing between move-in ready homes and fixer-upper homes can be challenging given they each have their own unique set of advantages and disadvantages. 

To help you determine the right type of home for you, we have created this guide that’ll break down the definitions of move-in ready and fixer-upper houses, some of the top pros and cons of each type of house, and even how to find these homes in your area. Let’s get started.

What is a fixer-upper?

If you’ve ever toured a home with shag carpets, peeling paint, and kitchen appliances from the 1970s, then you know all about fixer-uppers. A home described as a fixer-upper is usually livable – but the property needs significant maintenance work such as redecoration, redesign, or reconstruction. Every fixer-upper is different; some only need cosmetic updates, while others may have more severe problems like mold or structural flaws. 

What does move-in ready mean?

The definition of ‘move-in ready’ can vary depending on who you ask. At its core, move-in ready means the current state of the house or property is ready for immediate occupancy. However, the term is more broadly used to describe a house that doesn’t need any major renovations or aesthetic updates prior to moving in. Turnkey homes are more likely to have key features that many homebuyers are looking for, like modern appliances, updated flooring, and sleek interior design.  

Pros and cons of move-in ready homes

Before buying a home that’s move-in ready, here are some advantages and disadvantages to consider. 

Pros

Immediate move in: After house hunting,home inspections, bidding wars, and more, the last thing some homeowners want is a remodeling project. Buying a move-in ready home allows you to unpack your boxes and enjoy your home immediately.

Fewer surprises: Move-in ready homes are safe for immediate move in. If you complete the proper inspections, you can expect fewer surprises like a septic tank issue or foundation problem that could cost a lot of time and money to fix. 

It’s easier to stick to your budget: You’ll likely have an easier time sticking to your budget when buying a move-in ready home. Since these homes typically don’t need renovations, you won’t need to worry about going over budget during construction. 

You may have an easier time qualifying for a loan: Move-in ready homes are usually seen as a less risky investment than fixer-uppers to mortgage lenders. This can makeapplying for a home loan easier for you if you’re buying a turnkey home. 

Cons

More expensive: Convenience comes at a price. Move-in ready homes are often more expensive than fixer-uppers.

Limited opportunity for customization: Other than interior design, there isn’t much opportunity to customize these homes to your liking. Changing the floor plan to add a bedroom or bathroom could be extremely difficult and costly.

Lots of competition: The benefits of a move-in ready home are appealing to many homebuyers. Because of this, you may have a more challenging time buying a house because of the high competition. 

You may not be able to find a truly move-in ready home: Based on your preferences and the houses currently on the market, you may not find a home that perfectly fits your needs without any renovation.

Pros and cons of fixer-upper homes

A fixer-upper can be a great option for some homebuyers. Below are some of the major pros and cons of fixer-upper homes. 

Pros

Better value: As mentioned previously, fixer-uppers are often sold at a lower price than turnkey homes. If you have the time and money to invest in a fixer-upper, you can get a large house in a great neighborhood for a fraction of the cost.

You can personalize your home: A fixer-upper allows you to tailor your home to your personal needs and style.

Lower property taxes: Since property taxes are calculated on a property’s original purchase price, you’ll likely pay less in taxes when buying a fixer-upper than if you were to buy a home that you can move into immediately. 

Investment opportunities: When done correctly, buying a fixer-upper and transforming it into a turnkey property can be a great investment opportunity for some homebuyers.

Cons

You may need temporary housing: You may not be able to live in your home during construction. If that’s the case, you’ll have to find a temporary housing solution like moving in with family or finding a short-term rental property – which can be expensive. If problems arise during the renovation process, who knows how long you’ll have to be in your temporary housing solution. 

Unknown problems: You never truly know what you’re getting yourself into. During demolition, you may find significant issues like structural flaws, asbestos, mold, etc., that can quickly eat away at your budget. 

High risk: Some mortgage lenders may see your home renovation as a risky investment. Because of this, they may choose not to finance your purchase, or you may have to use more expensive loan options. 

How Much Should I Spend on a House? 5 Tips to Help You Make a Decision

Once you’ve decided to buy a house, the next step is to decide how much you can realistically afford. To help you get started and make the process easier, here are five tips to follow when deciding how much you should spend on a house.

1. Understand what percentage of your income should go toward your mortgage

To calculate how much you can afford to pay for a mortgage each month, start by adding up your gross annual income from all sources, including salary, wages, tips, and commissions. If you have a spouse or partner whose income will also contribute to the mortgage, make sure to include that as well. Divide the total by 12 to get your monthly income, and use that figure as the basis for your mortgage calculations.

Once you’ve determined your monthly income, it’s time to follow the 28/36 rule. According to this rule, you should not allocate more than 28% of your monthly income to housing and no more than 36% to all outstanding debts, including your mortgage. By staying within these parameters, you will have sufficient funds for groceries, fuel, holidays, and saving for your future.

Example: Let’s say you and your spouse are looking to buy a house in Anaheim and have a combined monthly income of $6,000. Applying the 28/36 rule, you wouldn’t want to spend more than $1,680 on house related expenses ($6,000 x .28) and $2,160 on total debt ($6,000 x .36).

2. Use an affordability calculator to calculate how much house you can afford

By inputting information such as your location, annual income, down payment savings, and current monthly expenses, our home affordability calculator can provide you with an overview of what kind of house you can afford to purchase.

Adding advanced filters such as monthly homeowners’ insurance, mortgage interest rate, private mortgage insurance (when applicable), loan type, and the property tax rate can further refine your calculations. The more data you enter, the closer you will be to finding out the ideal amount of house you can afford.

3. Consider current mortgage rates

The mortgage interest rate is the amount charged by a lender in exchange for loaning money to a buyer. It is expressed as a yearly percentage of the total loan amount but is calculated into the monthly mortgage payment.

The mortgage rate offered is a major factor in determining if you can afford to buy a home. It is important to note that even a small difference in the rate, such as one basis point (one-hundredth of a percentage point), could mean the difference between a home being affordable or unaffordable. Be sure to shop around and speak to numerous lenders to find the best rate.

4. Factor in additional costs of homebuying

It’s not all about your home’s purchase price. Below are the common costs associated with buying a house.

The largest initial expense is the down payment. When purchasing a home, a down payment is the cash you put towards the purchase price. Among the various loans available, you can find down payment requirements ranging from 3-20% of the home’s purchase price. If your down payment is less than 20%, you will likely need to pay private mortgage insurance (PMI). This insurance is to protect the lender in the event of you defaulting on your mortgage payments. The cost of PMI is between 0.5% and 1% of your annual mortgage, and this amount is added to your monthly payment.

Remember to include closing costs. Closing costs typically consist of lender and escrow fees, insurance, and taxes—all of which are necessary to finalize the sale of the home and make it legally yours. Expect to pay between 3-6% of the home’s total purchase price for closing costs. If you are purchasing a $500,000 home in Austin, for example, you can expect to pay somewhere in the range of $15,000–$30,000 in closing costs.  These costs are due with your down payment when you close on the home.

5. Remember, being a homeowner comes with recurring expenses

When closing day is over, your responsibilities are not finished. Make sure to allocate enough funds in your budget to cover your monthly home expenses. Additionally, it is wise to save some money to make repairs and updates to your house in the future.

Utilities. If you have been renting in the past, you may not be familiar with the cost of utilities when owning a home. It can be difficult to estimate these expenses since some landlords cover sewer, water, and garbage in the rent. As the new homeowner, you should plan to pay for these utilities on top of your mortgage, as well as for internet, cable TV, natural gas, and electricity. 

Property taxes and insurance. When purchasing a home, at closing, you will be expected to pay an initial part of the property taxes and homeowners insurance. However, you will need to keep up with them as long as you own the house. Property taxes and homeowners insurance can vary depending on the worth of your home, its locality, and any changes that may arise annually.

Home maintenance and emergency repairs. As a homeowner, it is your responsibility to take action when something breaks down or is damaged. This could be due to a malfunctioning major appliance, a plumbing leak, a broken air conditioning system, or a storm causing damage like ripped off roof shingles or uprooted trees. Additionally, it is important to set aside money for tasks that need to be done periodically, like cleaning out gutters, carpets, and pressure-washing the deck. For a comprehensive list of home maintenance tasks, consult a home maintenance checklist.

How much should you spend on a house: the bottom line

Many factors influence how much you should spend on a house, and the answer is personal. However, becoming aware of the basic costs can help you determine if this is an opportune time to buy and even save you money when purchasing your new home.

Source: By Ryan Castillo https://www.redfin.com/blog/how-much-should-i-spend-on-a-house/

It’s All About Curb Appeal: The Simple Landscaping Task That Can Boost Your Home’s Value the Most

 By Clare Trapasso

You’re ready to sell your home. You found the perfect real estate agent, and you’re more prepared than ever to get your property on the market. But first, you’ll probably need to sign a listing agreement.

A listing agreement is a legally binding contract between the seller (you) and the real estate brokerage that helps you sell your home. It states that the seller is hiring the agent to handle their home sale and authorizes them to find a buyer. In exchange, the seller agrees to pay the agent a commission fee.

Only sellers need to sign a listing agreement. But potential buyers may need to sign a buyer’s agency agreement before an agent will represent them.

Signing any contract can be nerve-wracking, but it doesn’t have to be as intimidating as it sounds. Here’s what you need to know.

What to expect in a listing agreement

A real estate listing agreement lays out a framework of duties and expectations between you and your agent. They’re used almost everywhere, from homes in Miami, FL to Vancouver, BC, and in countless markets in between.

The agreement usually includes several essential details about the upcoming sale. You’ll want to look them over carefully to make sure everything checks out.

The listing agreement will include things like:

• Contact information
• Listing price
• Agent fees
• Agent duties
• Property description
• Items included in the property sale
• Items that will be removed after closing
• Agreement duration
• Conflict resolution details
• Protection periods
• Type of agreement

Here’s what to expect from each one:

Contact information

This can include names, phone numbers, addresses, and other information for the seller and real estate broker or agent. Which contact details are included depends on how the agreement is written.

Listing price

This is the sales price your home will be listed at. You and your agent will talk about the listing price ahead of time, so make sure it matches your earlier conversations.

Agent fees

Real estate agent fees usually come as a percentage of the home’s final sale price. Total commissions tend to hover around 6%, split evenly between the buyer’s and seller’s realtors. The seller usually pays both.

For example, if a property sells for $250,000 and the agreed-upon commission is 6%, the seller would owe 3% to their agent ($7,500) and 3% to the buyer’s agent ($7,500). Real estate commissions are negotiable.

Agent duties

These are your expectations of the agent and what you give them permission to do. For example, if you want your agent to hold open houses or list your home on an MLS (multiple listing service), you’ll grant them formal permission in this section.

Understanding the agent’s responsibilities will give you a clear idea of what they will (and will not) do during the selling process.

Property description

Items included in the sale: Here you’ll find any personal property left behind after the property is sold. It often includes large appliances like washers, dryers, ovens, and refrigerators.

Items not included in the sale: Anything you’re taking with you or getting rid of before the buyer takes possession of the home.

Agreement duration

The amount of time the realtor will represent you before the agreement terminates. Most real estate listing agreements include a default duration, but this is negotiable.

Some agents prefer a longer term (six months), but you may decide a shorter period would be better (three months). An agent may be willing to change these details if you’d like them to.

Conflict resolution details

This legal-heavy part of the document lays out how any potential disputes are resolved between the property owner and agent. It will probably specify whether conflicts are settled using mediation (a third party helps the parties reach an agreement) or arbitration (a third party makes the decision).

Odds are you probably won’t have to deal with a formal dispute. But it always helps to understand this section, just in case you need it down the road.

Protection period

A protection period, sometimes called a tail period, helps protect the seller’s agent from losing their commission. It stays in effect for a certain amount of time after the listing agreement expires.

A protection period kicks in when the agent shows the house to someone during the listing agreement period, but that person doesn’t buy the home until after the listing agreement has expired. If there’s a protection period clause in the agreement, the seller would still pay the agent their full commission.

Type of agreement

Most agreements will specify one of four types of listings:

1. Exclusive right-to-sell listing
2. Exclusive agency listing
3. Open listing
4. Net listing

Read on to learn how each type changes your relationship with a real estate agent.

4 types of listing agreements

Listing agreements usually come in one of four types. Your agreement type is often listed at the top of the document itself.

These names can vary based on where you live, so read the listing agreement closely to understand the specific contract you have with your broker or agent.

1. Exclusive right-to-sell listing agreement: The most common type of listing agreement. Exclusive right-to-sell listings give the listing agent and their brokerage exclusive rights to represent the seller’s home. The agent is entitled to their commission regardless of who sells the property, as long as the listing agreement is in effect.
2. Exclusive agency listing agreement: This is similar to an exclusive right-to-sell listing. The only difference is that an exclusive agency listing gives the seller a way out of paying a commission: by selling the home themselves. If they successfully sell the property on their own, they don’t have to pay their agent.
3. Open listing agreement: Think of an open listing as a “last agent standing” competition. This non-exclusive agreement allows the seller to use multiple real estate agents to sell their home. The agent who sells the home is the only one who gets a commission. It also gives sellers the power to try to sell the home themselves, even while other agents are trying to sell it too. If the property owner succeeds, the agents walk away empty-handed. For this reason, most real estate agents will be hesitant to sign an open listing agreement.
4. Net listing agreement: With a net listing agreement, the seller agrees on an acceptable home sale price with their agent. If the agent sells the home for more than that price, they get to keep the proceeds. Net listings are uncommon, and actually illegal in some states.

5 easy things to double-check (and triple-check) before you sign a listing agreement

The entire listing agreement is important, but you can double-check five crucial details in a handful of seconds:

1. The listing price
2. The agreement’s expiration date
3. The commission rate and how it’s divided with the buyer’s agent
4. The type of listing agreement
5. Your personal property that is or isn’t included with the transaction

These details are easy to verify, but they aren’t the only things you should look for in your listing agreement. Try to read it as many times as you need to completely understand what’s in it.

Listing agreement FAQs

When do you sign the listing agreement? 

You’ll sign the listing agreement after you and the agent have agreed on all the details of your real estate transaction. By signing, you’re stating that you’re ready for the agent to move forward with the steps needed to sell your home.

Do I have to sign the listing agreement?

Yes. The listing agreement is a legally binding document that outlines your preferences along with the agent’s duties. If you choose to sell your home yourself, you won’t need to sign a listing agreement since you’ll represent yourself.

Can I negotiate a listing agreement?

You can negotiate several parts of a listing agreement. These include:

• Agent commission
• Agent duties
• List price
• Agreement duration
• Listing type

Most minor changes can be made right on the contract, but bigger changes might need to be added to an addendum at the end of the agreement.

How long does a listing agreement last?

In general, a listing agreement can last for any amount of time you and your agent agree on. Most listing agreements last three to six months.

Shorter time frames allow you to hire a new agent if you aren’t happy with your current agent. But if the duration is too short, an agent may not want to risk walking away without a commission.

If the agreement expires and you’re satisfied with your agent’s work, it’s easy to renew the contract.

How much does a listing agreement cost?

It usually doesn’t cost anything to sign the listing agreement itself. You probably won’t pay anything upfront, but the contract will specify the broker or agent’s commission fee. This fee is paid at closing once the title company confirms a clear title and the property is formally signed over to the buyer.

What if my home doesn’t sell?

If your home doesn’t sell within the time frame outlined in the listing agreement, you have two options:

1. Renew the agreement and keep your current agent
2. Hire a different agent

If you choose to find a new agent, review the termination section of the agreement to make sure you won’t owe any fees for the expenses incurred during the listing period.

Can I make changes to the listing agreement after I sign it?

Yes, but only if all parties agree. Most modifications to a listing agreement are done in writing, either directly on the agreement itself or through a listing agreement addendum (more information added to the end of the document).

I have questions about my specific listing agreement. Who should I talk to?

A licensed, local attorney is the most qualified person to answer your questions. They’ll be able to address your concerns and point out any potential issues in the contract.