Real Estate Tips

Every property has some kind of easement–utility, water and sewer or driveway easements which give access to landlocked parcels. As a property owner, you may be affected by easements at some point.

The easement in gross is the most common type of easement used by public utilities. These easements are often under or above the ground, so they do not consist of actual land. If a utility gains the right to an easement in gross over your land, it must pay you for the diminishment in value of your property.

Easements by prescription become easements simply through unchallenged use by the landowner for a specified number of years (usually 10-20). To avoid such an occurrence, the landowner must periodically make a formal objection to “start the clock over”.

The most familiar type of easement is easement appurtment that allows access to public roads and is used to create driveways and walkways for subdivided parcels. This type of easement should be treated by both landowners (and beneficiaries) as actual land parcels to be described and recorded meticulously.

Obtaining the proper permits when remodeling can be a critical element in the process. Many homeowners are unaware of the local building codes and zoning laws governing renovations. Disregarding these laws may result in fines, and in some cases you may even be asked to demolish the work that has been done.

When remodeling you have to go through the process of obtaining the proper permits. Zoning laws protect homeowners and cover issues such as the size of setbacks (distance between buildings and property lines), the height of buildings and occupancy. State and local building codes deal primarily with life and safety issues (insulation, smoke detectors, plumbing, electrical wiring, etc.) In order to satisfy these regulations you must submit information showing the project complies with the laws.

When plans do not conform they are sent to the Zoning Board of Appeals. There the homeowner, accompanied by an architect or attorney, presents his case at a public hearing. Usually the board tries to work with you in compromising with what you would like to do and what is best for the neighborhood.

Who represents the homebuyer in the transaction? The most common scenario is for homebuyers to purchase a home with the help of the seller’s listing agent. In this case, known as “dual agent representation,” the real estate agent assists both the sellers and the buyers. However, it is also possible for the buyers to ask another realtor to represent their interests exclusively, acting as the “buyer’s agent,” a service which is available at no additional cost to the homebuyer.

Any licensed real estate agent can act as your buyer’s agent, helping you to locate and look at properties in your price range. However, if that real estate agent works for the same brokerage that is listing a particular property, dual agency or designated agent rules will then apply. The buyer’s agent will advise the buyer if issues arise such as termite damage or significant material defects appearing on the home inspection report. If the home appraisal comes in at less than the asking price, the agent will represent the buyer’s interest, working with the seller and the lender to negotiate a satisfactory resolution.

The ideal piece of land cannot be purchased without due diligence. Say you notice a lot for sale in a suburban area that looks like a perfect place to build your dream home. Buying undeveloped land can provide an opportunity to build a house that will meet your needs, but you will need certain information before you sign on the dotted line.

Most suburban areas have zoning regulations which govern the type of structure that can be erected, the dimensions, and even the material used on the exterior. Historic preservation groups work with builders in many areas to ensure that any new construction fits in with the existing buildings. If you want to build out of the city limits, check the availability of public utility services and the cost of bringing those services to the site. Local planning and zoning boards can provide you with information about proposed development that could change your quiet country lane into a busy street.

It is a good idea to consult an architect and a zoning expert to confirm that your vision will work on the property you have selected.

Many states require the seller of a home to fill out a real estate disclosure statement when transferring the title. The disclosure is designed to reveal any material defects in the home to the new owner. When buying a home, take the time to read the fine print of the disclosure form.

Look for a section that asks the seller to indicate the material defects that exist in the home’s major systems. Most forms will specify interior and exterior walls, ceilings, roof, insulation, windows, fences, driveway, sidewalks, floors, doors, foundation, and the electrical and plumbing systems. As the buyer you will want to know of defects in any of these areas.

Sellers are required to note the presence of environmental hazards or zoning violations. They must disclose if there are any encroachments or easements, or walls or fences shared with adjoining landowners. Room additions or repairs made without the necessary permits or not in compliance with building codes must be noted. Sellers must disclose citations or lawsuits against the property. If any such conditions appear on the disclosure form, consult with your real estate agent immediately regarding how to proceed with negotiation.

What is the best price for a piece of real estate? Mortgage lenders, appraisers, and real estate brokers use what is called the “fair market value” (FMV). FMV has been defined as “the price that a buyer is willing to pay and the seller is willing to accept, when both parties are knowledgeable about the property and neither is under any time pressure to buy or sell”. Sounds great, but how is this price determined?

The starting point for determining a fair price may be an opinion of the value or “comparative market analysis”. Such an analysis uses information on similar properties which are: 1) currently for sale, 2) already sold, or 3) expired properties (those which did not sell). Local, national and international trends and market conditions must also be evaluated.

By comparing similar properties in each of the three categories and the market conditions, appraisers, lenders and agents come very close to the maximum price that buyers would be willing to pay for a house.

Are you planning to build your dream home? Once you are pre-approved for a loan and have found a professional real estate agent you trust, you are ready to start looking for the perfect lot.

Compare the qualities of several target neighborhoods by looking at schools, shopping, recreation and zoning. Make sure that the zoning regulations allow you to build the size and height of the home you want. Find out if there are use restrictions that would prevent you from developing your property as you intend. A visit to the local planning department will clarify your options for building.

Consider what type of home would best suit your lifestyle. Create a checklist to itemize the “must-have” interior and exterior features of a house that you feel are absolute requirements. Make notations about yard size, paint, roof and window conditions for the exterior, and floor plan, room quality and condition of the appliances for the interior. Bring your lists to your real estate agent. Together you can look over the currently available properties that correspond to your needs.

Setting the right price is an important first step in the process of selling a home. Is it necessary to spend $200 to $400 for a professional appraisal of your property before placing your home on the market?

A professional appraiser’s opinion of a property’s market value is based on the recent sales of similar homes in the neighborhood, and on the square footage and condition of the property. Different appraisers might come up with different figures. Even if all of them agreed on a value, there is no guarantee that you would receive that amount for your property.

An alternative to a professional appraisal is to ask a professional real estate agent for a written market analysis of your property. This analysis will include information about recent home sales in your neighborhood, as well as how those homes compare to yours. Real estate agents may provide this service with no charge or obligation. If you are still unsure of the value of your home, you may wish to pay for an appraisal.