Think You’re A Real Estate Pro? Take the Quiz and Find Out!

/0 Comments/in /by

When it comes to real estate knowledge, are you as seasoned as an agent or still renting a studio? See how you stack up with our real estate quiz!

1. What does a buyer do FIRST when they find a house they want?

A. Hand over cash to the seller.
B. Set a closing date.
C. Write an offer.
D. Sell their current house.

2. True or False: A house can’t fail a home inspection.

3. What happens when a real estate agent refers you to another agent?

A. You pay both agents separately.
B. The referral agent gets a cut from the selling agent’s commission.
C. The agent who is referred gets their entire commission.
D. The referral agent automatically gets the next closing.

4. Which of the following is NOT a downside to FSBO (For Sale By Owner)?

A. It’s a lot of work.
B. A property could sit on the market for a longer period of time than normal.
C. A property could sell for less than if the sellers had an agent.
D. Sellers won’t have to pay agent commissions.

5. What can a non-recourse loan be used for?

A. Purchasing a home.
B. Purchasing just a vacation rental property.
C. Purchasing just a long-term tenant rental.
D. Purchasing properties that are turned into rentals (regardless of type).

6. Why is “We Buy Houses For Cash” a bad idea? Choose all that apply.

A. It’s a scheme that only offers cash for sales.
B. It’s a scheme that preys on the vulnerable.
C. Sellers tend to massively lose out on their home’s actual value.
D. It’s a scheme that takes any property, which hurts future buyers.

7. True or False: It’s a bad idea to list your home in the fall.

Friendly neighborhood with porches and sidewalk.

8. What is an escalation clause?

A. An addendum that sellers include in their home listing.
B. An addendum that buyers can add to their offer.
C. An addendum that real estate agents write up at closing.
D. An addendum that lawyers add in at closing.

9. Which of the following is NOT an advantage to building a house?

A. Getting to customize the design.
B. Having more control in a house’s structure/overall look.
C. Typically more expensive than buying.
D. Can add in features that are more expensive to install on an existing house.

10. What’s the difference between a vacation rental and long-term tenant rental?

A. Long-term tenant rentals are for people living in the property for a longer amount of time (usually on a lease), vacation rentals are for guests to rent during travel.
B. Vacation rentals are only in tropical locations, long-term tenant rentals are in cities.
C. A vacation rental has to be listed on Airbnb and a long-term tenant rental is listed with VRBO.
D. Long-term tenant rentals are exclusive properties that people rent first, then buy.

Answers

1. What does a buyer do FIRST when they find a house they want? 

A. Write an offer. The sellers have to accept the offer in order for the sale and eventual closing to go through.

2. True or False: A house can’t fail a home inspection.
True. Home inspections solely look at the conditions of a house. Even if your house has major repairs needed, you won’t “fail” an inspection.

3. What happens when a real estate agent refers you to another agent?

B. The referral agent gets a cut from the selling agent’s commission. Referral agents traditionally get 25% of a closing agent’s commission.

4. Which of the following is NOT a downside to FSBO (For Sale By Owner)?

D. A property could sell for less than if the sellers had an agent. Real estate agents have more of a pulse on listings and pricings and can get sellers the best deal.

5. What is a non-recourse loan used for?

D. Purchasing properties that are turned into rentals (regardless of type). As long as the home was built after the ‘40s and is not the owner’s primary residence, a property will qualify.

6. Why is “We Buy Houses For Cash” a bad idea? Choose all that apply.

B. It’s a scheme that preys on the vulnerable.
C. Sellers tend to massively lose out on their home’s actual value.

7. True or False: It’s a bad idea to list your home in the fall.

False. That myth might have once had more truth to it, but in this day and age you can still list your home in the fall (or winter, for that matter).

8. What is an escalation clause?

B. An addendum that buyers can add to their offer. Escalation clauses give a buyer’s offer a boost. If there are other interested buyers, this clause allows buyers to say “I’ll increase my offer by [x incremental dollars].”

9. Which of the following is NOT an advantage to building a house?

C. Typically more expensive than buying.

10. What’s the difference between a vacation rental and long-term tenant rental?

A. Long-term tenant rentals are exclusive properties that people rent first, then buy.

If you got all 10 right…

You are a seasoned real estate pro! Are you sure you’re not a real estate agent?

If you got 7 to 9 right…

You are at least a second-time homeowner! You have tons of insights that you’ve gained over the years.

If you got 4 to 6 right…

You’re a first-time homebuyer! You’re learning lots and it’s starting to show.

If you got 3 or less right…

You’re a renter! Good for you for building your real estate knowledge — keep going!

How to Find a Good Deal on Real Estate

/0 Comments/in /by

If you’re a coupon saver, wholesale shopper, wait-for-it-to-go-on-sale-er, it only makes sense that you want the best deals possible when buying a house. But truly, who doesn’t want to save money on one of the biggest expenses of their life?

The best way to find real estate deals isn’t limited to buying with cash or knowing where the next “big” area will be. There are a few other ways that you could potentially score some substantial savings.

Find a motivated seller.

Motivated sellers are just what they sound like: homeowners who are really determined to sell their house ASAP. This might be the case if:

  • The seller doesn’t have the means to or interest in fixing up their house.
  • The seller’s house has been on the market forever.
  • The seller has another house and/or mortgage to pay for.
  • The seller isn’t living in their house’s area.

Because of these circumstances, motivated sellers are likely to reduce the price or meet the buyer’s terms. Compared to your average competitive market where the seller holds all the cards, finding a motivated seller is a great way to get a deal.

Buy out of season.

For a long time there existed a stigma about buying (or listing) a house in the fall or winter. While the season doesn’t automatically determine a buyer’s or seller’s success, there are still plenty of people who think it’s best to wait until spring or summer to look or list.

Looking “out of season” means you might face less competition and that the buyers are more desperate to leave their house. Moving in the winter is far from ideal but hey — who wouldn’t want to save thousands of dollars just for a few hours of moving in the cold?

Work with a real estate agent.

Real estate agents will likely know how long a property has sat on the market — and they’ll know how long is “too long” in your area. This insight could point you in the direction of a motivated seller who’s desperate to sell.

Look above your price range.

When every buyer goes for the same house price range, the competition drives up the price. Consider raising your ideal price by 15% when looking for a house. You’ll likely come across houses that similar buyers to you have missed. Plus, you could even put in an offer that’s within your existing ideal price range and end up paying just that!

Consider houses with a death or divorce situation.

Is it morbid? Oh yeah. Is it a good strategy? Absolutely. The general public is superstitious and tends to shy away from houses with bad juju. 

In some areas, it’s required to disclose deaths and that usually hurts the value of the house. If you’re able to make an offer before the house is listed, you might still snag a great deal and the family or estate of the deceased could get more than what they might through putting it on the market.

In situations of divorce, people tend to want to sell fast and move on. This information is not something you’ll find on a real estate database, so your best chance for getting a deal is probably knowing of someone in your personal network. Of course, if you know someone getting divorced, have some tact and respect. The last thing you want is to make it seem like you’re just here to capitalize on their trauma.

Buy through a time-limited event.

Most buyers don’t think to look at time-limited events for some potential house deals. But the fact is that all TLE sellers are motivated sellers! RealtyHive has countless listings that you can look through and make a pre-event offer on. Look through our listings today — you just might score the deal of a lifetime.

Do DIY House Projects Hurt Your Home’s Value?

/0 Comments/in /by

No matter what style house you have, no matter where you live, you share something in common with every other homeowner on the planet. At some point, your house will need improvements and repairs.

Repairs range from annual (like sealing your house from drafts) to hopefully once in your lifetime (such as replacing your roof). Home improvements (think renovating your kitchen or repainting your living room) aren’t usually as time-sensitive as repairs.

But whether it’s a repair or an improvement, both are time-consuming and range from financially inconvenient to scarily expensive. It’s natural for most people to think about solving the issue themselves rather than fork over hundreds or thousands of dollars. However, are the short-term savings of a DIY home fix worth potentially decreasing your home’s value? If you fix things on your own, will it come back to bite you?

Spoiler Alert: DIY projects can hurt your home’s value.

But only if they’re not done correctly. If you try fixing or improving home issues on your own and are unsuccessful, one of two things will happen:

  • Future homebuyers will have to pay for them, lowering the price of your home OR
  • You will have to pay for the fixes if the homebuyers include this as a contingency in their house offer (and you accept the offer).

However, you don’t have to put down that nail gun just yet. There are plenty of times when DIY projects won’t negatively affect your home’s value.

When do DIY home projects make sense?

Smaller, low-stakes projects are OK to tackle on your own (if you want to). Some examples include:

  • Changing out door knobs or handles
  • Updating kitchen fixtures
  • Painting
  • Sealing leaks throughout your house
  • Minor plumbing issues (like a toilet that won’t stop running)
  • Replacing a door

Most of these fixes require attention to detail, confidence, and being thorough, and access to YouTube doesn’t hurt. They’re all fairly inconsequential — for example, choosing the wrong paint color is no fun, but it’s an easy mistake to remedy.

DIY home improvements also make sense if you want to take the project on and it’s manageable. It’s fun to learn new skills while bettering your home.

When should you hire a professional?

There are three main situations for when you should hire a professional:

  1. Structural projects
  2. Dangerous projects
  3. “I don’t want to do this” projects

Structural Projects

Repairing the foundation, repiping plumbing, installing a new heating system (such as switching to geothermal), or home improvements like adding a new room — all of these are structural projects that require a professional. Making a rookie mistake on a foundational project isn’t just expensive in the long run, it’s downright dangerous.

Dangerous Projects

“Electricity” and “danger” go hand in hand, which is why you want to leave these type of home improvements up to the pros. Becoming a journeyman electrician can take 5 to 6 years, with much of that time including apprenticeship. That’s more time than most people spend in undergraduate programs, and it’s because electrical work is tricky and dangerous.

Other dangerous projects involve working with certain chemicals or materials that are hazardous for health (asbestos removal is a prime example) or anything involving heights and power tools (think tree trimming or roof replacement). Professionals have the necessary equipment to handle these types of projects. Hiring a pro not only helps maintain your home’s value, but it also ensures your safety. 

“I Don’t Want to Do This” Projects

Lacking the time to complete a necessary house project (or learn how to do it)? Think DIY home improvements should stay on HGTV? Hire someone instead! Home projects often reflect the attitude going into them — if you really don’t want to retile the bathroom, you’re more likely to speed through and do a sloppy job, which will only cost you more later.

DIY home improvements can save you money, but at the end of the day, if the job isn’t done well, it will cost you. Professional work and craftsmanship will always reign supreme in the land of home appreciation, but that also doesn’t mean you can’t learn the skills to fix things on your own.

If you’ve read through this with a sinking feeling, thinking of your home’s DIY fixes that work for you but might not for the next inhabitants, don’t despair! Sell with RH for a time-limited event (you can even get cash back with Cashifyd). Even if your house isn’t in the best possible condition, we can still help.

What Exactly Is a Title Company?

/0 Comments/in , /by

When it comes to selling or buying a house, everyone knows about real estate agents. Many people know about house offers and contingencies, and even more people know about the need for homeowner’s insurance. But there’s one very crucial element to real estate that remains somewhat of a hazy mystery:

What exactly is a title company?

What is a title?

Before buying a house from someone, you need to make sure that they legally own the property. A title company does just that. They run a search to ensure that, before a sale goes through, the current homeowners legally own the home. 

People sometimes confuse titles with deeds:

  • A deed is a legal document that transfers the property between owners.
  • A title is a legal document that states who owns the property. When you become the new homeowner, the title is now in your name — sort of like registering your car.

When is a property legally owned?

A property that’s owned free and clear has no mortgages or liens associated (the house is paid off). However, you can still sell a house when you have a mortgage.

In this event, you’ll give your money to a middle man (usually the title company that holds the escrow) and they’ll pay off the seller’s mortgage. The proceeds will then roll into a new property, their bank account, etc.

Here are some instances where a property might not be legally owned:

  • Unpaid taxes
  • Outstanding mortgages (mortgages that weren’t previously discussed)
  • Illegal boundaries or encroachments
    • Ex: A house that is not entirely on the land that it’s zoned/surveyed for (such as a house that’s partially built on a neighbor’s land) would bring up issues.
  • Restrictions, leases, or easements: A person can still legally own a property with any of these, but they must be disclosed to the buyers.
  • Problems with the deed
    • Ex: The previous sellers bought the house from someone in their family or in some other “under the table” format but there is no deed to prove they own the house.

Every homeowner needs title insurance.

The last thing you want is to buy a house with a legal issue. If that happens, the problems of the past homeowners become your problems unless you have title insurance.

Title insurance protects you in case the home you’re planning on buying is not legally owned.

Title company ≠ title agency.

A title agency represents the title company; the title company itself underwrites and distributes title insurance. When you close on a house, you’ll most likely meet with a title agency (and you can choose which agency you work with).

Can title companies get something wrong?

It’s scary to think about but it’s true nonetheless: sometimes title companies make mistakes. 

In all honesty, many times what might seem like a mistake is actually a lack of comprehension or understanding on the part of the buyer or seller. This is why it’s essential to have a lawyer or real estate agent with you to go through the closing paperwork.

However, when a title company truly is at fault, they are liable. Be sure to carefully look over everything before signing and again, bring a lawyer with you. 

Will title companies continue to play such a vital role in the future?

It’s more than likely, but the paperwork part might change. Instead of printing massive amounts of paper for reading over and signing, there’s a chance that title agencies will go paperless in the future. Cook County (where Chicago, IL is located) uses blockchain for closing transactions, eliminating paper.

Whether you’re a seasoned vet or complete novice in the real estate industry, RealtyHive has the resources you need. Sift through our listings to find a home near you (and get cash back with Cashifyd), sell with a time-limited event, or browse through our blogs for the latest in real estate info.

Does it Make Sense to Own a Home While Still Renting?

/0 Comments/in /by

Buying your first house but not living in it — seems pretty crazy, right? To many people’s surprise, it’s a housing market trend that’s spiked in recent years, particularly among millennials. But why is this happening, and is this real estate trend a good idea?

Why buy a house you’re not going to live in?

Millennials prefer urban living. Unfortunately, their tastes in location can’t compete with city housing prices. Buying a house in a city is astronomically more expensive than buying outside of one.

However, cities offer job opportunities that smaller towns don’t. Instead of driving 45 minutes to an hour (or more) every day for a commute, many millennials opt for living closer to their job.

This leads to the current housing market trend: buying a house you’re not living in. Millennials will sometimes buy a house outside of the city that’s more affordable while still renting a place out in the city. Here’s why:

  • Opportunity to rent out. Renting out a house could cover part (if not all or more) of the mortgage on a home. Eventually, this investment property could turn into a source of income.
  • Place to settle later. Whether decades down the road or in the next few years when their employers finally allow people to work remotely, having a house to settle in is a wonderful source of comfort.
  • Passion project. For those flippers who love turning a property for a profit, it might make sense to spend nights or weekends working on a house outside of the city.

When does it make sense to buy a house while still paying rent?

While this trend might sound lucrative, it’s still a bit risky. The last thing someone wants is to pay for a mortgage, homeowner expenses, and expensive rent every month. However, there are a few situations where this might work:

Your current rent isn’t bad…

If you don’t break out into a sweat paying rent every month, you might be in good shape to own a house on top of it. We’d like to think that if you’re sharing a place and paying $700 or less in monthly rent, you might be in a good spot to pay an $800 to $1,000 mortgage. But again, you’ll know your finances and what you can handle best.

…AND you could rent out the house you’re considering.

Find a property that you know could turn a profit (or at the very least, lower or eliminate your mortgage)? That’s a great sign. And don’t limit yourself to long-term tenant rentals, either. Vacation rentals or even flipping houses can help your financial portfolio grow.

The house could appreciate massively in the coming years.

Of course, buying in an area that will be popular but isn’t quite there yet takes some finesse. But if you’re nearly positive the house you’re considering could sell for significantly more than what it’s worth right now, it’s likely a good investment property. A diet of rice and beans and frugal living until you sell your house could very well pay off.

You see yourself living in this home (and can afford two rents until then).

Maybe you’re waiting for your novel to get published or your boss to let you work remotely. Maybe you and your partner are starting a family soon and one of you can (or wants to) stay home with your child. No matter the situation, it could work in your favor to buy a house, even if you still have to rent a place in the meantime. It might work better to have a place set up instead of entering the housing market when you’re “ready.”

While paying rent and a mortgage is not ideal, many people are making it work. What’s more, many are actually profiting off of this real estate trend. When you’re ready to jump into the housing market (or are even just ready to think seriously about things), jump in with RealtyHive. In addition to our listings, we offer cashback opportunities for homebuyers. Get started today!

Should you list your home in winter?

/0 Comments/in , /by

It’s the most wonderful time of the year, but is that true for real estate?

Conventional wisdom states that winter is the worst time to buy or sell a home, but we haven’t had a conventional real estate market in a while. People used to be less interested in buying and selling during the hustle and bustle of the holiday seasons, but the rules have been rewritten.

Why you should list your home in winter

The Internet Has Changed Everything

The internet lets buyers explore a new home without ever leaving the comfort of their own. Part of the old argument against listing your home in winter was the fact that shorter days meant fewer daylight hours. It’s hard to get a good look at the exterior of a home when it’s dark out. The internet has once again made this concern obsolete. If you do list your home in winter, it is a good idea to make sure the exterior of your home is well light. Focus on making your home look inviting for any prospective buyers who drive by or come to a showing.

Inventory is Down

The lack of housing inventory is well known. Factors such as the strong economy, the low unemployment rate, the Millennial generation coming of age and Baby Boomers looking to downsize has meant stiff housing competition.The McMansions that were so popular just before the housing crisis in the late aughts have faded from favor and instead smaller, more affordable homes are in high demand. Regardless of the type of home you have, listing in winter means you’ll face less competition on the market and your home will stand out.

Flaunt It If You’ve Got It

Winter is a great time to show off some of the special features of your home. Whether it’s a fireplace, built-in sound system, or formal dining room. With the holidays around the corner and entertaining on the mind, if you list your home in winter, these “extras” will really make your home stand out.

It is also a great time to showcase any energy efficiency upgrades you have as well.  Depending on where you live, winter may also bring out some of the challenges in a home. Think frosty windows and icy gutters–so being able to show your home at a challenging time, as long as your home stands up to the challenge, will help buyers see the value.

Nosey Neighbors Need Not Apply

Winter tends to bring out serious buyers. While there are great advantages to buying and selling a home in the winter, the fact of the matter is that most people are not looking for a new home during the holidays. This also means that the ones who are looking are serious about making a deal happen. You can expect that if you list your home in winter, any person who shows interest is motivated and ready to make a deal.

Winter can be an excellent time to sell your home, although it isn’t for everyone. If you’re considering putting your home up for sale this holiday season do you research, find an agent you trust, and enjoy the process. After all, it’s the most wonderful time of the year!

Should You Downsize Your Home?

/0 Comments/in /by

Downsizing was once considered pretty mainstream. As homeowners grew older and as kids moved out, relocating to a smaller house became the go-to move. 

But as more people continue to stay in their homes, the relevancy of downsizing is up for debate. RealtyHive is here to investigate: Is downsizing worth it, or has this trend phased out?

The Benefits of Downsizing

Downsizing homes was a popular trend for reasons that are still pretty valid:

  • Less to manage. Taking care of a 3- or 4-bedroom, two-story home or massive yard/property is often very challenging for older folks. Smaller homes are much easier to manage.
  • Less expensive. Energy bills are significantly less in smaller homes. Especially if you’re not using all the space of your home anymore, it doesn’t make sense to pay for it.
  • More accessible. Navigating stairs in older age isn’t just tricky, it’s downright dangerous. Moving to a smaller home can eliminate many of the hazards in a bigger home.
  • Could be profitable. If you bought your house for the median price of $47,200 in 1980 (we know, our jaws dropped too), you could very well pay for a smaller home outright after selling. Of course, this is assuming your existing home appreciated in value.

Why People Aren’t Downsizing (As Much)

A big reason for this is that humans are living longer. Whereas a person in their 50s might have looked into downsizing several decades ago, many people in the 21st century are fully functional in their homes, well into their 60s and 70s.

The other main factor is that technological advances make it easier than ever to stay in a person’s home. Stairlifts, chair lifts, and even elevators take hours or days to install. Smart homes are designed with convenience in mind. Many people would rather make their current home more accessible if it means they get to stay put.

The “Silver Tsunami”

Zillow reports that “33.9 percent of owner-occupied U.S. homes are owned by residents aged 60 or older, and 55.2 percent by residents aged 50 or older.” In the next few decades, nearly 90% of houses will become available as the baby boomer generation passes away. While many people struggle to find a house, this will rapidly change in the coming years.

But what does that mean for downsizing? 

Since people stay in their homes longer, there’s a shortage of available homes and the housing market is incredibly competitive. For many boomers, it’s currently a struggle to close on a smaller home that makes financial sense. Downsizing has a lot of potential benefits, but not if buying a new home will wipe out a person’s savings.

Is Downsizing Worth It?

If you…

  • want to downsize AND
  • find a smaller home that’s well within your budget AND 
  • you can make a substantial profit through selling your current one

then downsizing is a good option. But if you want to stay in your home and age in place and have the means to do so, that will also work. 

One of the most important things to remember: nothing in life is certain, and this becomes even more true as we get older. You might plan on downsizing and living in your new house for a decade or two, then deal with unexpected health issues that require assisted living. No one likes thinking about it, but it’s necessary to keep in mind.

If downsizing feels like the right move for you and it makes financial sense, then go for it! If you have to tap into your retirement to downsize, if the housing market is not favorable for downsizing in your area, or if making your current home more aging-friendly will take much less time and money, then don’t feel the need to downsize.

Ultimately, the decision is yours, but RealtyHive can help. Look through our listings to find a home in your area (or even somewhere far away) to see if downsizing would work for you.

How to Buy a House: A Beginner’s Guide

/0 Comments/in , , /by

Congratulations! You’re pretty sure you’re ready to buy a house. You’ve done some research and you’ve been scoping out houses available in your area online. Great! So what comes next?

Buying a home is a REALLY big step — probably the biggest financial move you’ll make — and it can come with a lot of anxiety and questions. Luckily, here at RealtyHive, this is something we do Every. Single. Day. Here’s a  REALLY simplified version of the home buying process in a perfect, simplea(and often typical) transaction.

1) Get Pre-Approved

Before you even think about talking to an agent, you’ll want to talk to a few mortgage lenders about what you’re looking for and what you can afford. It’s a good idea to talk to at least three different lenders: one from a bank, one from a credit union, and one from a mortgage lending institute. This is one of the biggest steps in the process so it’s a good idea to have a little background before you set these meetings up. Check out Home Loans 101 to learn everything you were never taught about home loans in school. 

2) Find an Agent

There’s often a debate on whether or not you need to use an agent when selling a home, but when it comes to buying, the answer is clear. You need to use an agent. Among the other benefits (Check out this article on why you need a Buyer’s agent), you won’t pay anything for their services and they’ll guide you along during the process. 

BONUS: RealtyHive has a new program called Cashifyd that pairs you with a local agent who will show you homes, give you advice, and give you a cash back credit on your closing costs (saving you money)!

3) Find Contender Properties

Your agent will likely set you up with a listing cart from their MLS (an agent-only portal that shows the info on all available properties in your area). You’ll be able to set filters like number of bedrooms, bathrooms, size, location, and others to narrow down your selections. If you’re interested in possibly seeing “For Sale by Owner” properties, it’s a good idea to keep an eye out for those as they won’t show in your listing cart. When you find a property you want to see, tell your agent and they’ll set up a showing for you. 

4) Visit Properties & Fall in Love

Depending where you live and where you’re looking to buy, the market could have a plethora of properties that meet your criteria or you may be looking for awhile. If you find “the one” right away, great!, but don’t feel obligated to write an offer on a home you’re not completely sure of just because you’ve been looking for awhile. It’s important to remember that things like landscaping and paint colors can be changed easily, but major repairs and permanent features (like location) are deciding factors. 

5) Make Your Offer

Again, depending where you are and what you’re looking at, you might be the only offer the property receives or you may be one of several offers. This is where having an agent is vital. They can help you make a compelling offer and make sure you include the things that are important to you (like having inspections). You’ll sit down with them and complete the multi-page offer that covers everything from purchase price (including earnest money) to contingencies to timelines. 

5) Offer is Accepted

In the best case scenario, your offer is accepted outright. It could also be rejected or the sellers could counter your offer to try to get a more amicable deal. Assuming the offer is accepted, you are now one (major!) step closer to being a homeowner. 

6) Get Your Checkbook Ready

From this point on, things move pretty quickly. First you’ll need to submit your earnest money. This is a like a downpayment to the seller that says “I’m serious enough to put this down” Your earnest money will come back to you as a credit on the closing statement or refunded to you if the deal falls apart due to contingencies outlined in your offer, but be aware that you could lose your earnest money if you back out of the deal for no good reason. 

7) Get on the Phone

While you’re basking in the excitement of your accepted offer, there’s a few things you need to accomplish. First, you’ll need to talk to your insurance agent. You need to prove that the home is insurable and they can get the paperwork rolling on that. They’ll need to provide this to your mortgage lender and you’ll have to pay one year of homeowners insurance before closing. The next thing you’ll (most likely) need to do is schedule inspections. Depending on what type of inspections your wrote into your offer, you could be looking at scheduling a few different inspection ranging from a general home inspection to a well and septic test to a radon test. You’ll want these to be scheduled as quickly as possible so that you don’t miss any of the following deadlines (which could cause the deal to fall apart). You’ll also let you lender know that you found a home and have an accepted offer, but be sure to tell them to NOT schedule the appraisal if you’re waiting on inspections. Also during this time a floodplain check will be done by the lender. This is to ensure that the home is not in a floodplain area and you can often get out of your offer if you do not like the results of this check. 

8) Have the Lender Schedule Appraisal

If you’ve got your inspections done and you’re still wanting to proceed with the purchase, it’s time to let your lender know to schedule the appraisal. This inspection is a little different than the inspections you just had done. You can learn more about appraisals in Appraisal, Assessments, and Inspections. 

9) Money, Money, Money

When the property appraisal comes back at or above the purchase price, it’s loan commitment time. There’s nothing you need to do here, but you should be aware that this is going on. Shortly after this, your lender will let you know exactly how much money you need to bring to closing. Be aware that there are costs outside of whatever you offered on the property that you will be responsible for. These can include tax escrow, title fees, appraisal fees, and more.

10) Final Walk Through

A day or a few days before closing, you’ll get your chance for a final walkthrough. This is your last chance to make sure everything is in (roughly) the same condition as when you put in your offer. Keep in mind that minor wear and tear can happen and that if you’re planning on getting out of your offer at this time, you should have a really good reason or you’ll almost certainly be forfeiting your earnest money. 

11) Closing Time

On closing day, you’ll meet with your agent, your lender and the representative of the title company to sign papers. You’ll give them the closing cost money (your lender will provide the mortgaged amount) and sign many papers. After that you’ll get the keys. 

Congratulations, you are now a homeowner!

Simple, right?! Let us know of any questions you have in the comments section below or check out some of the amazing properties for sale now on RealtyHive!

How to Buy International Real Estate

/5 Comments/in , /by

A beautiful Bahamian bungalow or a Spanish seaside condo? An apartment in Toronto or a modern house in Ecuador? 

Once you find the international property you want, you’ll know. But then what?

Countries Where Americans Can’t Buy Real Estate

Vietnam is the only country where you flat-out cannot buy a property. This is because all land is owned collectively — even native Vietnamese citizens cannot own property.

However, there are a few countries where, while not impossible, it’s pretty tricky for a US citizen to buy real estate overseas.

  • Greece: A bit easier if you’re part of the EU, not so much if you’re an American. The birthplace of Rome has tons of zoning restrictions due to its archaeological history. Mortgages in Greek are also notoriously hard to come by.
  • Thailand: The only way a foreigner can own land in Thailand is if they form a corporation, which requires 51% ownership from Thai nationals.
  • Mexico: Probably the least tricky of the four, but purchased land must be in an unrestricted zone.

Best Countries for Buying International Real Estate

There are a lot, but Belize is pretty popular for US citizens. It’s a gorgeous country with phenomenal beaches and marine life, it’s not too far from the states (less than 2½ hours flying from Houston, direct!), and it’s an English-speaking country.

Paying for International Real Estate

Nearly always, you’ll need enough money to buy the property outright (or enough to almost buy it outright). Financing is typically challenging or met with insanely high-interest rates.

What to Look for in a Foreign Property

Just like buying in the US, you want a property in good condition and in a solid location (or at least, a location that meets your needs). 

However, you also want to make sure you’re buying a freehold property (a property that you own entirely and that you have rights to use as you please, as long as it’s in accordance with the law).

Buying a freehold property isn’t always possible, and that doesn’t have to spell impending doom. Just know what you’re getting into and understand the limits in place for a property that’s not freehold.

Who to Hire When Buying Foreign Property

Here’s who to assemble when buying property overseas:

  • Local lawyer: Someone local to the area where you’re buying.
  • US accountant: Someone who specifically has experience in international real estate (if they have experience with your country of preference, even better).
  • Local real estate agent: Use RealtyHive to find an agent — we can find an experienced agent in practically any location.

What to Use Foreign Property for

Most often, people use foreign properties for vacation or rental purposes. However, this doesn’t mean you can’t relocate to a new destination — we applaud your adventurous spirit!

Some people even purchase land abroad solely for protective purposes. If buying near a coral reef or forest, you could speak to the local authorities about conservation efforts. Whenever we have the means to help the environment, we should do what we can.

Beginning to look for international real estate? Check our overseas listings! Ready to make a purchase? Let us help you find an agent! Get started on buying property overseas today with RealtyHive.

Dog Laws & Home Ownership: What You Need to Know

/0 Comments/in , /by

You’ve lived in cramped apartments where having a dog wouldn’t make sense. You upgraded to a beautiful condo annnnnd unfortunately, dogs aren’t allowed.

Finally, the moment has come. You’re buying a house! You can get as many dogs as you want now! You can open up your own rescue if you wanted? Right?

Surprisingly, the answer is no. Even as a homeowner, your dog ownership capabilities are more limited than you might think.

Number of Dogs

Buying a house out in the country with lots of land? The sky is pretty much your limit with how many dogs you can own. That’s not the case in many cities, where there are restrictions on how many dogs live in a household. Here are a few examples

  • In Holland, MI only two dogs are allowed per household. A man spent 90 days in jail for refusing to give up one of his three dogs.
  • The New Jersey Supreme Court ruled in favor of a neighborhood law that homeowners could have one to three dogs.
  • Homeowners can have no more than four weaned dogs in Long Beach, CA.

Before you buy a house, check the area’s laws if you have more than two dogs, just to play it safe.

Kennel License

Kennel licenses are often thought of for breeders or doggie daycare owners, but that’s not always the case. Some cities require homeowners to get a special kennel license if they own more than four or five dogs. You might have to pay a few hundred dollars each year. Check this table to see each state’s laws (and how much you’ll owe).

Homeowner’s Insurance

Unless you buy a house in Michigan or Pennsylvania, homeowners insurance companies could deny you coverage, solely because of your dog’s breed. These are some of the breeds that are sometimes flagged by insurance companies:

  • Pitbull
  • Doberman
  • German Shepherd
  • Rottweiler
  • Huskie
  • Chow Chow
  • Great Dane
  • Akita
  • Wolf hybrids
  • Boxer

Some of those breeds are actually banned in cities as well. Keep in mind, simply having a dog might up your insurance costs — even if Fido is not one of the breeds listed above.

Fencing

The HOA will often have limits on the type of fencing you can have. In some cases, they might require you to have an underground, electric fence — even if you weren’t planning on installing one. The HOA typically has rules on the height, material, and possibly even color of your fence. It’s a good practice to check into HOA laws before buying a house, regardless of owning a dog.

Overall Costs

It’s already expensive to buy and own a house. Considering the kennel licenses, higher insurance premiums, and fence installation costs, it’s pretty clear to see that owning a dog ups your expenses even more. Make sure to factor all of this in when budgeting for buying a house.

Owning a dog is one of the greatest parts of life for many adults. The same goes for owning a house. Having both at the same time is borderline (collie) heavenly, and it’s certainly attainable. But as you’re looking for homes through RealtyHive, make sure you follow up with dog laws in the area before you buy a house, a dog, or both.