TEN GREAT REASONS TO BUY A HOME IN 2012

Re-claim the American Dream!

1. Quality of life – a home provides stability and security for you and your loved ones, and membership within a community of neighbors.

2. Pride of home ownership – a home is a personal haven, a place that you can decorate, shape, and share over time because it’s yours.

3. Excellent affordability – lower home prices combined with low interest rates means there are tremendous opportunities for buyers. 

4. Historically low interest rates – around 4 percent in the U.S. gives better purchasing power to those who qualify.

5. Appreciation potential – your home investment can grow in value. 

6. Equity buildup and debt pay down – homeowners enjoy an average net worth of approximately $184,000 vs. $4,000 for renters. 

7. Leverage – where else can you buy an investment of this magnitude with about 3 percent down? 

8. Tax deduction advantages – property tax and mortgage interest write-offs.

9. Tax exemption – up to $500,000 per married couple or $250,000 per person on sale of a primary residence in the United States.

10. The real cost of renting – at $800 per month, with the average 6 percent rental increase per year, you will pay $126,536 over a 10-year period but have zero ownership of the property.

*** For more real estate market tips and resources, visit TulsaHomeGuru.

How to Find the Right Neighborhood for You

There are many factors to consider when selecting a neighborhood that is right for you. Think about the location in terms of commute time to work, distance from leisure-time activities, and proximity to shopping, schools or any other places you frequent. You may think of others factors that are important to you. Please take some time to write them on your Home Search Criteria form.

Scout out the Neighborhood!

• It is important that you scout the neighborhood in person.  
• Talk to people who live there. 
• Drive through the entire area at different times of the day, during the week, and on weekends. 
• Look carefully at how well other homes in the area are being maintained - are they painted; are the yards well cared for; are parked cars in good condition? 

Neighborhood Factors to Consider

• Look for things such as access to major thoroughfares, highways, and shopping.  
• Listen for noise created by commerce, roads, railways, public areas, schools, etc.  
• Smell the air for nearby industry or agriculture.  
• Check with local civic, police, fire, and school officials to find information about the area.  
• Research environmental topics such as soil and water quality, as well as floodplain implications. 
• Study traffic patterns around the area at different times of the day and measure drive time from the area to work.  
• Is the neighborhood near parks, places of religious worship, recreation centers, shopping, theaters, restaurants, public transportation, schools, etc.?
• Does the neighborhood have a Homeowner’s Association?

*** For more real estate market tips and resources, visit TulsaHomeGuru.

Considering Alternative Energy for Your Home

Whether or not one believes global warming is an issue to be concerned about, it’s hard to refute the evidence that the world’s carbon dioxide production is the main cause of the warming of our planet. To slow the effect, more individuals and corporations are doing their part to minimize their carbon footprint.

Recent advancements in and an explosion of research on alternative, or renewable, energy are making it possible for homeowners to lessen the impact of their energy usage. Increasingly, there are more options that provide comparable or better performance to current energy sources.

Three of the more common renewable energy sources are solar power, wind power and hydro power. Note that while these are “more common,” they are not necessarily widely used in homes … yet.


Solar power is exactly as it sounds: power that comes from the sun. By the same token, wind power comes from the wind. Hydro power comes from the force of moving water. This article focuses on solar energy.

Determining solar power for homes

By various estimates, sunlight can meet the energy needs of the entire human population many times over. Imagine, using the sun’s energy to heat your home, take hot showers, power up all your electronic gadgets and kitchen appliances and keep your lights on!

There are, of course, heavy initial costs involved to using solar power to run your house. At the same time, there are ways you can use the sun’s energy for many years without a long-term expense.

If you’re building a new home, work with your designer to make the most use of the sunlight that falls on your lot. For example, place doors and windows where they’ll work best for you. If you live in a cooler climate, don’t put windows on the shady side. Also in this environment, avoid high ceilings unless you absolutely must have them (they are really nice to have, just keep in mind that you’re heating a lot of space you don’t use).

In warmer temps, plan for the back of the house to get the hottest sun of the day and put fewer windows on the hotter sides.

If you’re in an existing home, plant trees and perennial bushes near doors and windows. During the summer the growth will keep your house cool and in the winter the bare branches will let the sun in. You might also board up windows on the “wrong” side of the house or use insulated window coverings.

For either a new home or existing one, consider installing a solar power water heater. It can be a big expense initially, but you’ll recover the cost through energy savings within 10 years. Even if you don’t plan to be in your house that long, having a solar power water heater will add to your home’s value at the time of sale.

Installing a solar power system

There are a variety of factors to consider when researching solar energy for your home. How much you intend to use it will determine how many solar panels you’ll need. If you’re going completely off the grid, i.e., independent of your local power company, you’ll obviously need more than if you continue to use supplemental power.

Another factor is where to put the system. Rooftops are the logical choice, but since solar energy systems are designed to last for several decades, will your roof hold up that long? (Much solar power installation happens with new construction.) If not, you could mount the panels on poles, on a shed or on the ground.

As with any purchase, you’ll want to shop around for your solar power system and interview a few installers to make sure you’re comfortable with the product and service you’re getting. The outfit you buy it from may offer installation or at least have suggestions for reputable installers. Another option is the ever-increasing “do-it-yourself” project.

For an in-depth look at solar energy technologies, go to the Department of Energy website.

Why is solar power a great way to save money?

Sunlight is free! It’s really as simple as that in the long-term. But as indicated earlier, the short-term, up-front costs can be steep.

One way to reduce your costs is to do it yourself. Build your own panels and install them with a little help from your friends. It does seem like a daunting task, but it is possible and more people are turning to this solution.

One D-I-Y’er offers a number of articles and insights on building and installation.

IMPORTANT: Before you commit to a system, be sure to check with your city or county government permitting office to ensure your system meets current laws such as zoning and height restrictions. Better yet, know what they are before you even begin the process!

Is it true that solar power = no pollution?

Not entirely. There are the fumes associated with manufacturing, transporting and installing solar power systems. Once in place, however, they don’t contribute to acid rain or urban smog! You can be assured that your energy system is much better for the environment all around.

A word of caution: while a solar power system doesn’t emit pollution once installed, its efficiency can be affected if used in heavily polluted areas.

*** For more real estate market tips or to search for a relo, visit TulsaHomeGuru.

Alternative Home Energy Installation: What are Forms of Renewable Energy

Three forms of renewable energy (the most common) are solar, wind and hydro. Less-known are tidal (sea waves), geothermal (natural heat), biomass (decomposed matter), fuel cell (hydrogen and oxygen) and nuclear energy.

We continue here with a look at wind power for home use, along with sources for further research and information.

Why is wind power important?

Simply put, it's good for your pocketbook and for the environment. At a time when saving money is on top of everyone's mind, regardless of an individual's financial health, opportunities to reduce the cost of basic expenses such as utilities are worth considering. And just as wind is a renewable resource, the savings on wind power are sustainable for the life of your home.

Natural gas power vs. wind power

From a short-term cost perspective, natural gas power, currently at a low price, is the better deal. However, even after considering the expense of installation, a wind power system is the most cost-effective way to go, thanks to a 30 percent tax credit for systems in service before December 31, 2016.

Environmentally speaking, although natural gas is among the cleanest of the fossil fuels, it still releases pollutants. Wind power systems do not, once the manufacturing and installation processes are complete.

In terms of reliability, natural gas power comes out on top. It's readily available, whereas wind can be intermittent. This takes us to a look at the most ideal circumstances for wind systems to be most effective.

A flat, open expanse makes for the best situation in harnessing wind energy, as tall buildings and close, surrounding homes break wind patterns. In this situation, you have the option of going completely off the grid. In a more developed area, it's not practical to expect there will be enough wind to run all your energy needs.

Want to see if you live in a region that has powerful winds? Find high-resolution wind maps and estimates of wind resource potential at Wind Powering America.

How does a wind energy system work?

The most common home system involves the use of turbines, which convert the kinetic energy into mechanical power. (Wind turbines/windmills are among the oldest forms of renewable energy, dating back to medieval times!) The kind of turbine you'll need depends on where you live and how much you plan to use wind as your source for energy.

If you live in a remote area where wind is easy to come by (and height restrictions are less stringent), you have a choice of a rooftop turbine or one that sits on the ground and towers over your home. The latter can go as high as 120 feet!

As noted, living in a developed area isn't conducive to using wind for all your power needs so a small rooftop turbine should be enough to generate the most feasible amount of energy in that environment.

Learn more about small wind systems for your home through the U.S. Department of Energy's FAQs.

Where can I find home energy kits?

Save money at the start by doing it yourself! A quick search on the Internet yields a long list of sources for wind energy systems, so finding one will be easy enough. The key to finding the right one is doing some thoughtful research. Whether you make and install your own system or have it done for you, refer to the American Wind Energy Association for some helpful tips first.

In general, alternative home energy installation is the wave of the future. In fact, already there are those who would prefer the word “alternative” no longer be used as “renewable energy” becomes more mainstream.

Converting to renewable energy in an existing home is a major commitment. Be prepared to spend a lot of time on research, looking at the history of your energy use and predicting what it will be in the future. A growing family will gradually need more while empty-nesters may begin to use less. Saving money and “doing good” can only be positive things, but you'll have to decide if all the work is worth it. We close with some general comments for your consideration.

Is renewable energy for me?

If you're thinking about transitioning from fossil fuels for your energy needs, whether for financial or environmental reasons, the same considerations apply.

How much do you intend to use it? Where will you put it? (A wind or water turbine is more cumbersome than the nice flat panels of solar power.) What is your budget? What are the local zoning laws? Do you want to do it yourself?

Advantages and disadvantages of renewable sources of energy

First, the good news. The sun will shine and the wind will blow. Generations hence, these natural sources will be in abundant supply. The same can't be said for fossil fuels.

Renewable sources don't release toxic chemicals into the atmosphere, making them environmentally sound and safe for all.

While initial costs to transition to renewable energy can be steep, the long-term cost-savings can be substantial. If you start with these alternatives in a new home, the savings are more immediate.

As for the not-so-good news, the main drawback (other than initial costs for existing homes) relates to the first note above. While the sun will shine, there will be cloudy days when not enough sunlight can be harnessed. Likewise, the wind may be, well, less windy. These can be worked around by storing energy during peak conditions, but it will take extra effort and solid planning.


*** For more real estate market tips or to search for a relo, visit TulsaHomeGuru.

Are Relocation House Purchases a Good Deal?

Relocation... to purchase or not to purchase
A lot of people ask, "Are relocation house purchases a good deal?" If you're asking this question,
you are most likely interested in purchasing a house from a relocation company. By buying a house from a relocation firm, often called a "relo," you can get a good deal if you take a few precautions as you go through the home buying process.

Relocation companies typically buy homes at a discount, but with the increased number of foreclosures and short sales in the past couple of years, they may be more willing than ever to make a deal. With the glut of properties available at great prices, take your time, do your due diligence, and you should be able to drive a hard bargain.

Steps to Make Relocation House Purchases a Good Deal

Find a reputable real estate agent from a well known company who specializes in relocation properties. Make sure this agent works with more than one relocation company. In order to get a good deal on a relocation house purchase, you want to know that you're not being steered to only one relocation company's listings. Let the real estate agent know you are interested in seeing listings of properties owned by relocation companies.

You need to find out the pricing history for the home and the neighborhood. Is the relocation company pricing the property to move? Get pricing opinions on the properties you select. This will usually be called a Comparative Market Analysis or CMA. Make an offer only after you have all of this information. Also, remember that a relocation company is an unemotional seller, and this can help you get a good deal on a relocation house purchase. Unlike an individual owner, there's virtually no risk of ôoffendingö the seller with a low offer.

Buying a House from a Relocation Firm

Most properties owned by relocation companies will be sold "as-is." This means your home inspector's inspection needs to be as thorough as possible when buying a house from a relocation firm. Be sure the home inspector knows the home is a relocation house being sold by a relocation company. This is really important for all real estate transactions, but especially when buying from a relocation company. The relocation company's property disclosure form will likely say that they have "no knowledge of any problems." In other words, they can say whatever they want, and you'll have a virtually impossible time trying to prove otherwise. Make sure your inspector is extra thorough on your inspection and looks for things like water damage, evidence of poor drainage, foundation settling ... anything that could cost you money fixing after you've purchased the house.

Get pre-approved and not just pre-qualified by your mortgage lender. Pre-approved means you've filled out a mortgage application. This way your offer, even if it's a low one, will get more attention. The more complete your offer is, and the quicker and easier the relocation company perceives the closing to be - regarding what percentage you can put down, how quickly you can get settlement, and your credit score - may end up being more important than your offer.

As with other real estate listings, the length of time a house is on the market will have an impact on how willing the relocation company will be to negotiate on price. You will have the greatest bargaining power with homes that have been on the market longer. If you offer a low price on a house that has only been on the market a few weeks, the relo company may not budge. But, if you find a relocation house that has been on the market for a few months or one that has already had several price reductions, you may be able to get a really good deal.

It all depends on inventory, time on the market, and market conditions. You cause no harm by offering low, and you just might get a deal. The worst that can happen is the relo company says no. Unless you are in a seller's market or the home is already deeply discounted, your chances of getting a good deal on a relocation house purchase are good.

If the relocation company purchased the house, they are paying the utilities and taxes as well, so they may be in a good position to sell at a lower price to a quick and secure settlement. Ask if they'll pay or split closing costs if they won't lower the price.

You want someone looking out for your interests, not those of the relocation company, so you should hire a real estate attorney to review the documents. Most relocation companies require the use of their sales agreement forms, which differ from standard realtor-approved forms, and you don't want to end up in a bad mortgage deal.

Many people have successfully purchased houses from relocation companies. With a good real estate agent and a well-constructed offer, in this market, you should be able to get a good deal on a relocation house purchase. Which brings us back to the question, "Are relocation house purchases a good deal?" With the right market and a little effort from the buyer, they can be.

*** For more real estate market tips or to search for a relo, visit TulsaHomeGuru.

Home Mortgage Interest Deduction Could be Reduced

Summary of the National Commission of Fiscal Responsibility and Reform

Many Americans just finished filing their taxes for 2010, and roughly a third of taxpayers itemized deductions on their tax returns. For many taxpayers, the decision to itemize or not is driven primarily by the amount of their home mortgage interest deduction. The average homeowner deducts over $10,000 in home mortgage interest, which for a taxpayer in the 25 percent tax bracket, results in a tax savings of approximately $2,500.



All of that could change; however, as the bipartisan National Commission of Fiscal Responsibility and Reform slices and dices tax breaks in an effort to reduce our nation's $14.3 trillion debt. Economists, lawmakers, tax analysts and Obama administration officials question whether the United States can afford to give generous tax breaks when the country is carrying such massive debt. One of the national debt reduction commission's recommendations involves reducing the tax deduction on home mortgage interest. This would not only affect homeowners' taxes. It could also have detrimental effects on an already fragile housing market.

Our earlier article on Home Mortgage Interest Deductions explained the history of the home mortgage interest deduction, how the removal of the home mortgage interest deduction could affect the housing market, and earlier proposals by the National Commission of Fiscal Responsibility and Reform. Let's take a more detailed look at the recent summary of the National Commission of Fiscal Responsibility and Reform's report as it relates to the home mortgage interest deduction.

The national debt reduction commission's report recommends reducing or eliminating several tax breaks claimed by millions of middle-income Americans, and President Obama has proposed limiting itemized deductions for the wealthiest 2 percent of taxpayers. The reduction of the home mortgage interest deduction is just one of these itemized deductions, but it is a big one. As quoted in our earlier article, according to the Tax Policy Center:

In 2012, the MID [mortgage interest deduction] will cost the federal Treasury an estimated $131 billion, much more than the total of all outlays by the Department of Housing and Urban Development ($48 billion). Homeowners also benefit from other federal tax preferences, including deductibility of residential property taxes on owner-occupied homes ($31 billion), and exclusion of tax on the first $250,000 ($500,000 for joint returns) of capital gains on housing ($50 billion).

Unfortunately, the home mortgage interest deduction is not a target simply because of its cost to the U.S. Treasury. Many feel that tax breaks on home mortgage interest contributed to the collapse of the housing market. Critics argue that home mortgage interest deductions acted as an incentive for people to go deeper into debt, funneling capital into the housing market, and causing the real estate bubble that eventually popped.

The summary of the National Commission of Fiscal Responsibility and Reform proposed replacing the home mortgage interest deduction with a 12 percent tax credit and reducing the one million dollar limit on home mortgage interest deduction to $500,000. A tax credit helps reduce the amount of tax a taxpayer owes the government, and a tax deduction helps lower the taxpayer's taxable income. The National Commission of Fiscal Responsibility and Reform's proposal would also eliminate tax breaks on second homes and home equity loans.

In addition to the work being done by the National Commission of Fiscal Responsibility and Reform, a bipartisan task force led by former Republican chairman of the Senate Budget Committee, Pete Domenici, and the former Clinton administration director of the Office of Management and Budget, Alice Rivlin, is proposing replacing the home mortgage interest deduction with a 15 percent tax credit, and President Obama's 2012 budget would limit the deduction for families in the top tax brackets.

How Would Changes to the Home Mortgage Interest Deduction Affect the Real Estate Industry?

Changes in the home mortgage interest deduction will not happen easily. This is not a tax deduction that only affects the rich; the home mortgage interest deduction is enjoyed by millions of Americans. Plus, limiting the home mortgage interest deduction could result in a further decline in home prices. The National Association of Realtors President Ronald Phipps said that the proposals to limit the home mortgage interest deduction have upset potential homebuyers at a time when the housing market is still recovering:

"Since income taxes were first introduced into the tax code in 1913, the deductions for home mortgage interest were included," Phipps says. "My grandparents, my parents and I have taken advantage of that deduction. We think it's a matter of fairness for future generations that they have it."

The NAR has asked its one million members to contact their congressional representatives and urge them to preserve the tax break. Homeowners interested in preserving the home mortgage interest deduction could do the same.

*** For more real estate market tips or insider information, visit TulsaHomeGuru.

How Do I Calculate the Value of My Home?

What is the fair market value of my home?

These are two very common questions when people are considering selling a home. Talk to any real estate agent, and the first thing they'll tell you about calculating home value is that location is a big factor, but not the only factor. After the big real estate crash many people are asking themselves, ôWhat is the fair market value of my home?ö

Most of us understand there are more factors involved in calculating home value than just granite counter tops and stainless steel appliances. We also know that there are online sources like TulsaHomeMarket.com that can assist with determining house values by address. 

TulsaHomeMarket.com has one of the best ways to calculate the market value of your house because it doesn't just use algorithms and general housing data. TulsaHomeMarket.com has a local real estate expert in the Tulsa area to determine the real fair market value of your home. It's okay if you are just checking out the value of your home and aren't actually ready to sell your house. Asking an agent to help with calculating your home value is very common in today's economy. Many people are wondering, "Could we sell our home if we had to or wanted to?"

Whether you are trying to calculate the value of your home because you are thinking of selling or just out of curiosity, here are five factors to consider.

Factors that Help Determine the
Market Value of Your Home

Home LocationLocation is the key influence for calculating the value of your home. Besides the proximity of the home to a major metropolitan area or a breathtaking view, these are a few more location factors that can increase home value:

  Proximity to schools, parks and points of interest:

Homes within reasonable walk-ability to schools or parks will strongly influence buyers with small children. However, homes that boarder school or park property lines may suffer in home value due to unwanted traffic, parking limitations and the likelihood of youth mischief.

•   Neighborhood with increasing desirability:

Where is new growth heading in town? Will there be any new business areas, grocery stores, or libraries in the future?

•   Proximity to infrastructure: 

Is the house surrounded by other houses? Apartment complexes? Other buildings? The best possible situation for your home is to be situated between two other houses and located along a road without yellow traffic lines.

Homebuyer Demographics
After you buy a house, the market value of your home is affected by who else is likely to purchase the property. If the property is a perfect starter home for pre-family newlyweds, and the main homebuyers in town are senior-citizens, the fair market value of your home might be lower than you think.

Older buyers typically look for one story homes without stairs, whereas families with small children often desire homes with a front yard away from a busy street and multiple bathtubs.

Home Storage SpaceThe more closets, garages and laundry rooms a house has, the higher the fair market value of your home. Most homebuyers look for a walk-in closet in the master bedroom, as well as closets in high traffic areas like front entryways, bathrooms and other bedrooms.

The two-door garage is the most common size for most homes, yet three-car garages are becoming more and more common.

As for the laundry room, the washer and dryer units should be located together in a common access space without creating an eyesore.

KitchenThe kitchen is the most active area of a home. Typically, the following features add value to the kitchen:

• Granite countertops
• Stainless steel appliances
• Gas stovetops
• Convection ovens and microwaves
• Ice machines
• Cable television access ports
• Also, the proximity of the kitchen to the dining room and family room will impact the usability of the house and thus is a factor in calculating the value of your home.

Home Layout and Size

Homebuyers typically look for homes with three to five bedrooms with an average of one shower per every two bedrooms. Split bedroom plans with bedrooms on opposite sides of the house are a popular trend with modern homes. Also, many real estate professionals love to use the phrase ôlight and brightö to highlight homes with lots of natural lighting.

As for size, most residential neighborhoods will have a slight variation in square-footage and number of rooms, but they all should be within a standard deviation of one another. If resale value of your home is a big concern, it's in your best interest to not buy the largest home in the neighborhood. When calculating the market value of your home, real estate professionals measure the homes in the surrounding area against yours, and if most of the nearby properties are smaller than yours, it can act as an anchor to drag down your fair market value.

For more real estate market tips or insider information, visit TulsaHomeGuru.

What Does Short Sale Mean?

Buying Short Sales: What You Need to Know

As the real estate market remains volatile, one of the best options for many new homebuyers is purchasing a short sale home. But, what does "short sale" mean? A short sale is when lenders have the opportunity to sell a property before the bank forecloses on the home rather than after. While buying short sales creates the opportunity for real estate investors to pay well-below-average housing prices for properties within ideal locations, there are still drawbacks.

If you're interested in buying short sales, here are a few things you need to be aware of:

Why Banks Short Sale Pre-Foreclosure Homes



The last thing a bank wants to do is own a property secured by the bank's loans. When a property owner is in default and owes more than what the home is currently worth, the bank will work with the seller to offer the property for less than they owe on the mortgage loan.

How much money will banks take off? When buying short sales, how much should I expect prices to fluctuate? On average, banks estimate that holding on to the property after foreclosure will cost up to 18 percent of the home value to complete the inspection, appraisals, repair and maintenance. Instead, it is a much easier and financially sound decision for banks to sell the home ôas isö to avoid any third-party inspection process.

The Negative Side of Buying Short Sales

Buying short sales might seem like a good deal for the buyer, but that's not always the case. Here are three major conflicts buyers and sellers face when a short sale, pre-foreclosed home is on the market:

• Time: Don't let the name fool you. Buying short sales takes a very long time. There's a whole gambit of scenarios of why a short sale might be delayed, but many of the hurdles buyers have to overcome have to deal with secondary financing on the homeowner's original mortgage, bank processing delays and private mortgage insurance policy breakdowns. Buying short sales is a very complex process, which can leave the short sell buyer in housing limbo for up to six months.
• Condition: Short sale homes often need additional maintenance and repairs. When the current property owner is unable to pay the mortgage on the home, more often than not the condition of the property diminishes over time. Additionally, short sale homebuyers should take into account that the property will have had more than one previous owner, which adds to the wear and tear.
• Lender Restrictions: Banks can renegotiate a short sale at the last second. If a new law passes, the market begins to change or the bank finds out more information about the property, they reserve the right to change the terms of the contract at any point in the process. Banks will also refuse to pay for extra services like seller closing costs or inspections. If you want something specific inspected on the property, you're probably going to pay for it yourself.

Short sale homes are the real estate market's diamond in the rough. It's true that buying short sales can be a very tricky process, but for the flexible and patient homebuyer, the short sale home can be the dream house they've been searching for.

*** For more real estate market tips or insider information, visit TulsaHomeGuru.

What are Easement Restrictions? How to Ensure Clear Title on a Property

When buying a home you’re bound to encounter some things that you don’t know anything about. They are things that outside of the home buying process you won’t ever run into. And since the average homebuyer only goes through this process a few times in his or her lifetime, it’s understandable that these things would be unfamiliar. A couple of items that seem to be perplexing are title insurance and the property survey, specifically how easements are represented.

When purchasing a home with a mortgage you need to get title insurance and a survey. This is required for all financed home purchases. An attorney or title company typically orders property surveys. Though the buyer has to pay for this service they usually don’t need to be directly involved in the process.

What is Title Insurance?

Title insurance is just another line item expense when purchasing your house, paid for one time at closing. Essentially, it is protection for you and your mortgage company that the person selling you the house has full and clear title to the property and was able to legally pass it to you. The title insurance company investigates the ownership of the property and then insures their work. If the seller didn’t rightfully own the home, and someone else does, the mortgage company and the homebuyer are financially protected. Fortunately, issues of title defects are relatively rare, meaning that title insurance isn’t too expensive and really not something to worry about.

What is a Property Survey?

A property survey is a carefully measured drawing that shows the land that is for sale and all structures on the property. It shows how large all the structures are and how far they are from each other and the borders of the property. Most importantly, it shows setbacks and easement lines.

Wait, what? It seems like the property lines and structures should be most important, but they are not. The setbacks and easement restrictions are actually the most critical elements of the survey because those are usually where the biggest problems are found.

What is a Setback?

A setback is the required distance between the house you wish to buy and other property features. For example, a city or county ordinance (or even a homeowners association) may require that homes be set back 20 feet from the road. So even though you own your front yard, you cannot extend your house any closer than 20 feet from the road.

Other setbacks indicate how closely you can build to your property boundaries or to your neighbors’ homes. If you live in an area with natural features like streams or lakes, certain special setbacks may also dictate how close you can build to these structures.

What is an Easement?

Easements refer to property with common usage rights. For example, you may own the land that a sidewalk is on, but anyone can walk on this part of your property.

Why Setbacks and Easement Restrictions Matter

What happens if the survey reveals that part of the house (the actual structure) up for sale sits within a setback or an easement? It’s a problem! In some instances it means that part of the house will need to be torn down before it can lawfully be sold. Otherwise title cannot be passed to a new owner because someone is attempting to sell property that was not built legally.

Surprisingly, this situation is not so uncommon. It may not affect the main domicile on a property, but garden sheds or pool equipment are occasionally located in an area where they don’t have a legal right to be. In these cases your lawyer has some work to do. Hopefully, you’ll discover that the structures are grandfathered because they were erected before certain setbacks were enacted. But definitely investigate these matters fully, as doing future improvements on the property may necessitate that they be corrected in the process.

Spend Some Time With Your Property Survey

For some, the survey process is one of those “check the box” items during home buying. Most get it done and move on. But it’s important to look over everything carefully and ask questions. Surveyors are happy to discuss the survey with you, and errors on surveys can occur. Spending 15 minutes looking this over will save you the headache of having it redone down the road when you want to build or make a change on your property.

*** For more real estate market tips or insider information, visit TulsaHomeGuru.