By: G. M. Filisko Published: March 30, 2010 You’ve found your dream home. Make sure missteps don’t prevent a successful closing. 1. Be truthful on your mortgage application You may think fudging your income a little or omitting debts when applying … Continue reading
By: G. M. Filisko Published: March 11, 2010 By knowing how much mortgage you can handle, you can ensure that home ownership will fit in your budget. 1. The general rule of mortgage affordability As a rule of thumb, you can … Continue reading
By far one of the biggest mistakes buyers make when purchasing real estate is choosing not to have a new survey completed.
Several complaints have been filed through the years with the Real Estate Commission about property lines, driveways, access to property and other issues of confusion as to whether a certain strip of property was or wasn’t included in their purchase of land. Of course, for the Real Estate Commission to have jurisdiction over the issue, the complaint has to be filed against a person licensed by this agency, usually a Realtor®.
All too often in these situations, a buyer will decide that he doesn’t need to obtain a survey of the property. Sometimes the buyer will ask for a copy of the latest survey done on the property, usually done for a current or previous owner when that individual purchased the property. This is not advisable, however, as the property may have been affected by various events since the latest survey. Other times, a buyer may see no reason to assume the property lines are anywhere other than where they appear to be and choose to save money by not ordering a survey. It’s understandable why a buyer may decide this. After all, if the property is in a subdivision, shouldn’t property lines have been clearly sorted during the development phase? And what of fences? It’s perfectly logical to assume that a fence at the edge of a property was positioned on the property line, or that a driveway that is shared with the next door neighbor has a property line running down the middle. Another presumably safe assumption would be that a fairly new storage building was built within the property lines. When purchasing real estate, however, assumptions, logical or otherwise, are never safe. The only way to determine for sure what you are buying is to have a survey completed.
In any of the situations listed above, the buyer will almost always be left holding the bag. Simply put, it’s difficult to hold anyone else at fault when the buyer learns after closing that there’s a problem with some element of the physical location of the property, rights of access to the property or usage of the property. The real estate licensee cannot vouch for all the geographical aspects of the property. Sometimes, even the seller may be confused.
The Real Estate Commission once had a complaint where the seller actually believed a portion of property nonadjacent to her property belonged to her. She had tended the area as though it was hers. Unfortunately, the person who bought the property from that seller would later learn that the seller was wrong and did not own the additional strip. Another buyer who filed a complaint against their real estate agent was satisfied at the time of purchase to have the seller just “mark the corners”. That didn’t work out well either.
Even though there are a myriad of professionals working to bring a real estate transaction to pass, the only professional truly capable of establishing property lines, rights and access is a surveyor. A title insurance company will prepare a title insurance policy to cover the property described in the legal description; however, while that policy may include recorded disputes over property boundaries, the title insurance company doesn’t define where the property lines run. An appraisal report may include some information taken from the legal description about property boundaries but will not likely include information about access to the property or rights of usage. Neither can a home inspection be counted on to address the layout of the land. The property insurer is focused on the improvements to the property, not where the lines run. And unless the lender requires the buyer to obtain a survey, they do not establish where the property lines run.
So what exactly is a survey? Surveys show property lines, right-of-way easements, utility easements and they detect encroachments upon adjacent properties. These are all issues that often become central to a property owner’s dissatisfaction and discontent with their new purchase. Surveys may also help a buyer determine before closing the transaction whether the property can be used for what they intend. For example, if the buyer plans to put a double wide mobile home on the property, a survey will reveal setbacks and utility easements that could prohibit placement of the mobile home on the lot.
The bottom line is that buyers of real estate should consider two facts when deciding whether to obtain a survey. First, only a survey will determine with any degree of certainty what is being purchased. Second, if the buyer decides not to obtain a survey, they need to be prepared to “own” that decision and its consequences because no other party other than a surveyor will likely be held responsible for those things that only a survey will reveal.
And from Tracy Beavers at Arvest:
THE LAST WEEK IN REVIEW:
Mortgage rates are still at historic lows! The housing sector continues to improve with housing starts and building permits rising. The Housing Market Index rose to its best level in 8 years. Retail sales for last month were also strong.
What does this mean for mortgage rates? The Fed is watching the ups and downs of our economy very closely so they can decide if they will continue to purchase bonds (which help make our mortgage rates low). They meet in mid-September so we will be watching to see if any direction is given.
Just received a link to a great article on the difference between a pre-approval and a pre-qualification from John D. Carrico at Bank of the Ozarks. The Difference between a Pre-Approval and Pre-Qualification is an important distinction when it comes … Continue reading
What Are the Hot Arkansas Home Décor Trends for 2013? Just like fashion designs and hair styles, home décor trends are constantly changing and evolving. Each new season brings a new must-have feature for your home. In order to … Continue reading
From John Carrico at Bank of the Ozarks: Today’s information regarding retail sales was good, not great but seems to be enough to boost confidence in the market as some believe it is on an upward trend. There will be a report midday that will give an outlook for the economy. The 10 yr treasure bills are up today nearly 10 points from where they closed yesterday. We should see how these affect the investors’ confidence in rates later this morning.
Dollar Gains as Increase in Retail Sales Boosts Fed-Taper Bets
By Joseph Ciolli – Aug 13, 2013, Bloomberg News
The dollar gained versus most of its major peers after a report showed retail sales increased in July for a fourth consecutive month, adding to speculation that theFederal Reserve will reduce the pace of monthly bond purchases.
U.S. Stocks Fall as Retail Sales in July Miss Forecasts
By Lu Wang and Nick Taborek – Aug 13, 2013, Bloomberg News
Data today showed retail sales rose 0.2 percent in July, following a 0.6 percent gain in June that was larger than previously reported, according to Commerce Department figures. The median forecast of 81 economists surveyed by Bloomberg called for a 0.3 percent advance.
Fed Bank of Atlanta President Dennis Lockhart will give a speech at 12:45 p.m. on the outlook for the U.S. economy. Lockhart said in an interview with Market News International on Aug. 7 that the Fed may reduce its bond purchases as early as September.
“The progress to date is pretty impressive and certainly should be factored into the readiness of the economy to move forward without asset purchases,” he said in the article.
WASHINGTON (July 25, 2013) – Americans overwhelmingly believe owning a home is a good financial decision and a majority of renters say homeownership is one of their highest priorities for the future, according to a survey by the National Association … Continue reading
Amazing custom built home on main channel of the Arkansas River. Spectacular views. 3 bedroom, 2.5 bath home, 4 car garage, stained concrete floors on first floor, hardwoods & carpet up, refrigerated room, safe room built per FEMA code, Pella windows, granite counters, screen in porch w/slate floor, covered patio, hurricane proof windows, walk in pantry, security system, breakfast bar in master bath, huge master closet with w/d up, custom wrought iron stair rails, Runni tankless water heater.