Real Estate Word of the Day: Easement

I was talking to an old friend recently who mentioned new company had moved into Minneapolis/St. Paul area named FICO. I was taken aback by the confusion because most people living in the Twin Cities north metro are aware the business analytics company, Fair Isaac Corporation, has been located in Shoreview for decades. So the "new" company was just  Fair Issac being renamed as it's acronym, FICO. But it was eyeopening that few outside the real estate and mortgage industry may have made this connection.

Once again, I was a bit surprised that such a simple term I use everyday as a REALTOR® would be unknown to others. But then it got me thinking of all the times a glazed look came over a buyer’s eyes when I talked about escrow or earnest money. These can easily be confused with other real estate and mortgage terms like down payment or cash to close. It is totally understandable because most home buyers do not buy houses everyday.

There are so many terms that could possibly confuse a First Time Home buyer that I thought an online glossary of real estate terms might be helpful. So over the next several weeks I am going to have a series of posts for the first time homebuyer with explanations of the most often used (and sometimes confusing) real estate terms. This way you can skip buying that big “how to buy a house” book or attending that First Time Home Buyer Class and have a quick resource at your fingertips. Today’s Real Estate Term is:

Easement—A right given by the landowner for a specific use of a portion of his/her property granted to a third party. Once the right is given and recorded on the title it continues unless vacated by the entity that received it. Common easements include utility and driveway easements. There can be more than one easement on any given property. When buying a home it is important to understand where the easements are as they can dictate what you can and cannot do with the land.

For instance, a new septic system, storage shed or flower garden cannot be constructed in a utility easement as the easement holder uses the easement for access to under and above ground utilities. Likewise a drainage easement could literally wash away your landscaping investment.

Driveway easements allow access to a landlocked property. While such agreements often provide an acceptable solution for access, they can cause headaches for neighbors who aren’t respectful of each others.

Easement holder does not own the land but has a right to use the land as specified in the easement agreement. This differs from an encroachment where a third party uses the land without permission.
 

Copyright 2013 www.terieckholm.com

Real Estate Word of the Day: Deeded Access

A typical person will buyer only buys a home once every five to eight years. Many will only buy one or two properties in a lifetime. First time buyers and repeat home buyer alike can forget some of the simple terms used in real estate on a daily basis. For some it can be hard to remember whether the earnest money or money escrowed becomes part of  the down payment  or not. Often buyers are easily confused by similar sounding terms like easement and encroachment as they both deal with property lines and usage but what do they really mean?

Whether you are a novice, first time buyer or someone who owned a home previously but hasn’t purchased a home for several years, sometimes a refresher on real estate terms can be very helpful. I often notice buyers (and sellers) with a glazed look on their face when certain terms come up so I thought an online real estate glossary would be a useful tool. The real estate term for today is:

Deeded Access Deeded access is access to the lakeshore as outlined in the deed for the property. As a Minnesota REALTOR® I deal with lots of lakeshore properties. Heck, it is the “Land of 10,000 Lakes” after all. Some properties are right on the shoreline and the riparian rights (right to use the lakeshore) is obviously the property owners. But sometimes a property within close proximity to a lake will allow homeowners to use the lake as well. These rights can include the ability to use a private beach, put in a dock, dock a boat or other various rights. Not all deeded access is created equal. To understand the riparian rights associated with the property, a buyer must inquire and read the specifics outlined in the deed.

Copyright 2013 www.terieckholm.com

How Invested are YOU in Selling Your Home?

When a home owners contact a REALTOR® for a market analysis, they often have a myriad of questions to ask me as their potential agent about what I can do to get their home sold. They want a person with a good, solid track record of getting a home sold quickly and for the best price possible. This is what I want too and it does take a good strong marketing plan. One key to the process is when I work with a motivated home seller who is on the same page with me and who asks, “What can I do to make my home appealing to a buyer?” And even if the home seller doesn't ask, I will work the topic into the conversation. There is nothing worse than trying to represent an apathetic or reluctant home seller.

If a homeowner doesn’t want to do the work and partner with me to get there home sold, it will be an uphill battle to the closing table. It is imperative for a home seller to be totally invested in the home selling process. And this starts even before the home is listed on the market.

Steps to being an INVESTED Home Seller!

• Preparation—Having the home freshly painted, cleaned and staged are essential before the home is listed. Special touches really do add a welcoming touch like a seasonal wreath on the front door. Dust free vents, spotless floors, cobweb-free ceilings and light fixtures do make a difference.
• Pricing—Listen to the advice of experts when it comes to setting the price. Don’t go by an old appraised value or what your dad said he would ask for your home. Unless Pops is a real estate professional, it is best to stick to the market statistics to come up with your list price.
• Presentation—Interior and exterior appeal should be optimized for each and every showing.  Beyond clean and staged, light a fire in the fireplace, place a plate of warm cookies on the counter and make a potential homebuyer feel welcome!
• Availability—Allow buyers in! Don’t say no to a showing unless it is absolutely necessary. Sometimes relocation homebuyers are just in town for a limited time and make their decision based on the homes they see that day. If you refuse a showing, you might miss out.

A potential home seller really wants and needs for their listing agent to be invested in getting their home sold quickly. But all the marketing in the world cannot get a home sold if the homeowner isn’t invested in getting the home sold too!

Copyright 2012 www.terieckholm.com

It's Not Your Grandma's Kitchen Linoleum!

Faux Ceramic Tile Vinyl Flooring

Our kitchen, laundry and main hallway flooring was a beautiful white geometric design. It was a very popular pattern when we purchase our home in the late 1990’s but a decade later, it was just ugly.  

Being a REALTOR® and knowing we would be moving within a few years, we didn’t want to over remodel our home but knew we had to make changes during our kitchen remodel in 2010. We decided on an upgrade of hardwood for the kitchen and adjoining family room we were converting into a dining room but what to do with the hallways and laundry? In my mind’s eye, I saw ceramic tile but it didn’t calculate as a wise investment. Our second thought was a laminate floor that looked like tile. However the flooring store professionals talked us out of that one—best not to use Pergo-type products anywhere that is damp due to potential peeling of the image. So, we finally opted for an upgraded vinyl that looked like tile. Some of the faux-ceramic tile products have a visible texture so one has to reach down and touch it to see if it is tile or not. It was the perfect choice! The first day after the vinyl floor installation, our milkman was making his weekly delivery and asked when we had the ceramic tile installed. Bingo! Now, two years later and it still looks new! And best of all, it was just a fraction of the cost of ceramic or laminate flooring.

It is essential to make smart choices when upgrading features in your home. This is especially true if you plan to move someday. Not every home has the value or location to support high quality upgrades. Sometimes a good, budget-conscious alternative is the way to go. Over upgrading is one of the saddest news I have to deliver when people ask a market analysis. There is often a misguided expectation of receiving a dollar for dollar return on the remodeling investment. The reality is more of 25-30% return on investment on average for most remodeling projects. However, not doing anything when your home is out of date or deteriorating can affect the bottom-line when it comes time to sell. This is where a REALTOR® for life comes in. If you are unsure of whether you need to install the most expensive or just a good quality alternative product in your next remodel, give all me. I can help you decide whether your upgrades will make sense for the neighborhood. 

Copyright 2012 Teri Eckholm 

Holding your OWN Hand when Buying or Selling a Home!

Well over a decade ago, I was on a weekend shopping excursion with my family. Just as we were about to step off the curb into the busy parking lot of the local Target, I attempted to take the hand of my precocious son when he announced to my husband and I, “I can hold my own hand!” And being obstinate and still in that "terrible two" stage, he did.

He put one chubby little fist inside the other behind his back and attempted to step off the curb and into traffic. And like the mama lion I was, I stopped him by the scruff of his neck...well actually, the collar of his jacket.

Realizing his need for independence, we explained to our child the danger of his actions. (Hey Bud...A driver of a car cannot see a tiny person out their windows as they back up their cars.) We compromised. He was allowed to hold his own hand everywhere we went except busy parking lots and when crossing the street. Then he would be required to hold mommy or daddy’s hand or hang on to his brother's stroller for his own safety.

Holding your own hand is good in life but there are times when one must rely on a professional to help them through a new or difficult situation. As a real estate agent, I realize most clients want to “hold their own hand” through a transaction for the most part. They do it with the knowledge that when they will need to “step off the curb”,  I am by their side  ready to explain and guide them through every step of the process. Whether it is a question from a home seller about getting their home ready for the first showing or a first time home buyer wondering whether a townhome or single family home would be a better investment, I am there ready to educate and assist.  

A good REALTOR® knows it is important for the client to make the decisions—it is our job to guide and educate our clients through the home buying or selling process.

Copyright 2012 www.terieckholm.com