According to one home painting company, painting the exterior of your home yields a 55% ROI in terms of value increase. This means that if you’re selling your home, you most definitely want to consider giving it a fresh coat of paint before putting it on the market.

But what are the best house paint colors to choose in order to get the highest price for your home? 

In this article, we’ll take a look at some of the most popular paint colors for selling a house and give you some tips on how to choose the right one for your home. 

Does Painting Your House Increase Your Home’s Value?

A fresh coat of paint can do wonders for a home’s appearance, but does it also boost its value? The answer is yes (and we’ll link to some studies below that back this claim up), but the extent to which paint increases a home’s value varies depending on a number of factors. 

One of the most important is the quality of the paint job. A high-quality paint job will definitely increase a home’s value, while a poor job can actually decrease it. 

Another important factor is the type of paint used. Some types of paint are more durable than others and will last longer before needing to be replaced, which can add to a home’s value. 

Finally, the color of the paint also matters. Neutrals are always a safe bet, but certain colors can also help to increase a home’s value. We’ll get into those in a bit, but the key really lies in choosing a color palette and sticking to it in a way that looks organized and intentional.

Overall, a newly painted house does have more value, but it’s important to keep the above factors in mind to ensure the biggest return on investment.

What to Consider When You Paint Your House

Before you jump into a project as big as painting the exterior of your house, you want to make sure that you’ve not only prepared your home properly but that you’ve taken into account the time and cost of this kind of project.

After all, you need to ensure that it’s worth your time and money in terms of how it’ll help you increase the value of your home. While the study above references a 55% ROI for exterior home painting, it’s still important to calculate the costs of hiring a painter.

Currently, the average cost of hiring a painter to paint the exterior of a home in the US is between $3,750 to $9,750. Keep in mind that this cost can vary depending on the size of your home and the city that you live in.

Regardless, you need to ensure that painting your home will increase the selling price of the property by more than what it costs to pay for the job. If not then you’re not only going to lose money but you’ll also waste a lot of time.

How to Ensure Your Colors Match

It’s important that your home’s exterior colors match in order to give it a cohesive and polished look. The easiest way to do this is to choose one main color and two accent colors. 

The main color should be used for the majority of the house, such as the siding or trim, while the accent colors can be used for smaller details like shutters or doors. 

Once you have chosen your colors, you can purchase sample paints to test out on your home before making a final decision. With a little planning, you can ensure that your home’s exterior colors match and create a stunning façade.

The Best House Paint Colors for Wood Paneling

Painting wood paneling is a great way to update the look of your home. However, you’ll want to be careful so as not to damage your wood paneling before you sell your house.

Before painting with your newly selected colors, you’ll want to clean the paneling with mild detergent. Then, sand the surface lightly with fine-grit sandpaper to create a smooth surface for the paint. 

Next, apply a primer specifically designed for use on wood paneling. Once the primer is dry, paint the paneling with high-quality exterior paint. For best results, paint in long strokes and allow the paint to dry completely between coats.

Now you’re ready to choose the best house paint colors for your home.

Two-Toned Olive

Two-toned olive paint can give a home’s exterior a sophisticated look. The two colors can complement each other and create an elegant effect. The darker color can also make the house look more stately and regal. 

In addition, two-toned olive paint can be used to highlight architectural features or to downplay problem areas. 

For example, if the house has a lot of windows, the lighter color can be used to make them stand out. Or, if there is an unsightly drain pipe, the darker color can be used to disguise it. This will help ensure your home looks its best when you put it on the market.

Beige & Gray

Beige and gray paint is a mixture that looks good on the exterior of a home for a number of reasons. 

First, these colors tend to be very neutral, making them a good choice for homes that are located in busy neighborhoods or areas with a lot of foot traffic. 

Additionally, beige and gray paint can help to hide dirt and stains, making it easier to keep the outside of the home looking clean. This can be a selling point when you speak to potential buyers.

Plus, in one survey conducted by Zillow, homes with charcoal-colored front doors sold for up to $6,000 more than expected.

Taupe, Red & White

Finally, you might also consider opting for a mix of three colors: taupe, red, and white. These make a good color combination for the exterior of a home because they are all neutrals. 

Taupe is a light brownish-gray color, red is a primary color, and white is a secondary color. The taupe paint will provide a nice background color for the other two colors. Red and white will stand out against the taupe and will make the house look more attractive. 

This color combination is also easy to match with other colors if you want to add trim or accessories to the outside of your home. And, most new homeowners see a white home as a “clean slate” for them to start over in (which makes it easier to sell!).

The Best House Paint Colors for Brick

Painting brick is a popular home improvement project because it can give your home a fresh new look. This is especially true in neighborhoods where your neighbors all have updated homes and you’re stuck with outdated brick that looks like it’s straight outta the 80s.

Although painting brick isn’t a difficult task, it’s important to choose the right paint and to prepare the surface properly before painting. If you don’t take the time to do this, the paint won’t adhere well to the brick and you’ll be stuck with a home that looks a little cheap.

Aside from painting it correctly, here are a few of the best colors to paint a house that has brick.

Black & White

Black and white are classic colors that never go out of style. This helps ensure that when you sell the house the new homeowners won’t have to change the paint style anytime soon according to paint trends.  

They are also good choices for painting a brick home because they provide good contrast and make the bricks look more distinct. In addition, black and white can help to hide imperfections in the bricks and make the home look more sleek and modern.

And, finally, black can actually increase the resale value of your home. One report from Zillow found that having a black front door could increase the price of your home by nearly 3%.

Navy & Cream

Interested in making your home look more elegant? Navy is the best color to paint a brick house. This dark blue color can give your home a stately look while cream is a light white color that can make your home look more elegant.

Navy and cream are both good choices for painting a brick home because they are neutral colors that will not clash with surrounding homes (in most cases). They’re also neutral enough to allow you to add a touch of color to the trim if you’d like.

Additionally, these colors really never go out of style. They’re just as timeless as black and white but with a bit of an extra edge.

Gray & Green

For a brick home, gray and green are two excellent choices. Gray can help to create a more modern look, while green can add a touch of nature-inspired beauty. Either way, these colors can help to give your brick home a fresh, new look.

Plus, they’re both neutral enough to pair with almost any other color. So whether you’re looking for a subtle update or a complete transformation, gray and green are two great exterior paint colors to consider.

Calculate the Value of Your Home

Is painting your house even necessary? Before thinking about the best colors to paint a house or browsing through some of the best house paint color boards on Pinterest, it pays to calculate the current value of your home.

You might be surprised to find that your home’s current value is fine as is and you don’t need to paint it.

Use our free home value estimator tool to see the value of your home and even receive a cash offer.

The post What Are The Best Paint Colors To Sell a House? appeared first on iBuyer Blog.

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According to the most recent statistics from the National Association of Realtors, issues with property title searches and deeds cause around 9% of home sales to fall through. 

If you’re trying to sell your home or a home you’ve inherited recently, it’s a good idea to conduct a title search, so you can take steps to avoid this issue.

Otherwise, you could end up with frustrating delays or lose your buyer altogether. Keep reading to find out more about property title searches and how they can affect your home sale. 

What Is a Property Title?

A property’s title describes the owner’s rights in the context of ownership. It’s different from a deed in that it refers to aspects involved in owning the home.

A deed is a document, whereas a property title is a legal concept. It describes the range of rights that come with owning real estate.

What Is a Bundle of Rights?

Ownership of a property comes with fixed rights, referred to as a bundle of rights. These outline the owner’s legal privileges regarding the property.

They define what the owner can do with the property within the bounds of the law. Owners have the right of:

Control

The title owner has complete control over how they use the property, as long as the intended use is legal and complies with overriding regulations, e.g. HOA rules.

The right of control refers to the freedom to use the house as a residence, guest house, or for other municipally-ordained purposes.

Possession

Once the owner has paid for a property, they enjoy the right of possession. They maintain this right as long as they abide by any relevant regulations and pay their property taxes.

If the owner takes out a mortgage on the property, the lender splits the lien of the property with their lender. That means they can foreclose on the property or take possession of it in the event the mortgage holder defaults on their payments. 

Exclusion

The titleholder may decide who enters their property. This does not apply if law enforcement agents or utility workers must enter the property to perform their duties. 

Disposition

The right of disposition gives the property owner the power to transfer ownership of the title to whoever they please, provided they own it outright.

They can transfer ownership temporarily or permanently, as they see fit. 

Investigating the Seller’s Rights

When buying a new home, it makes sense to ensure the seller is the only one with a claim to the property. Claims and liens against the property can affect whether this is the case. 

A property title search reveals whether the owner has the right to sell the home.

The term ”clean title” refers to instances where there are no issues, while a ”dirty title” implies there is uncertainty over the owner’s rights.

These uncertainties could relate to serious issues, or something as simple as a typo in the relevant documentation. The owner can’t sell the property unless they resolve these issues. 

What Is a Title Search?

The title search process usually starts after the seller makes their initial offer on the home.

If a buyer is financing a home, their lender will likely insist on a title search. That’s to protect them from investing in a property that isn’t salable. 

Cash buyers aren’t obliged to perform a title search, but they could discover problems if they try to sell the home in the future. 

When a seller buys a home, they can inherit a lot of hassles attached to the property, including mortgage liens, easements, restrictive covenants, and debts. 

Title Insurance

Title searches are mandatory in cases where a real estate transaction requires title insurance. 

Even the most experienced professional may overlook certain issues during a title search. Title insurance protects the lender and the buyer against damages or losses incurred by these oversights.

It differs from the usual type of insurance in that it covers past events, rather than potential future ones. Most title insurance policies cover the following:

• Instances where someone apart from the seller owns the property
• Document forgery or fraud
• Incorrectly signed documents
• Flawed record-keeping or records
• Unrecorded easements or other restrictive covenants
• A judgment involving the property like outstanding lawsuits
• Outstanding liens on the property

The term for someone who does a title search for property is “abstractor”.  

An attorney or title company usually carries out the title search process, although some states insist on one or the other of these professionals doing the searching.

There are 23 attorney states in the US that demand a real estate attorney performs the search.

In a nutshell, a title search involves examining public records to ensure there are no factors that could cause another entity or person to assert a stake in the home.

These factors include liens, issues, and claims. 

What Do Property Title Searches Look At?

The municipal clerk or county office usually maintains the records of all properties in their jurisdiction. The title company will visit one of these locations to start the title search.

Nowadays, they might have access to online records, which can save time. 

They review all the available sources of information related to the home in question. These include:

• Bankruptcy records
• Construction liens
• County land records
• Deeds
• Divorce details
• Property plat plans
• State of federal tax liens
• Probate cases
• Judgments
• Maps of the area 

Other factors that can assist in the search include mortgages attached to the property, as well as street and sewer assessments. 

A title search can only look into publicly recorded information. Only a separate judgment search will help bring these to light. 

Once they’ve gathered all the information, the title company or attorney will create a report containing details of their findings. 

What Problems Can a Title Search Reveal?

A title search may all kinds of deep, dark secrets regarding a property, but some issues come up more than others. These are:

Lack of Continuity in the Chain of Title

All property transfers must follow a logical sequence. For instance, Seller A sells to buyer B, who then becomes the seller when transferring to buyer C, who sells to buyer D. 

If the transactional document between B and C doesn’t exist, there’s a link missing. You can resolve this by obtaining a deed for the missing transaction.

Irregular or Missing Legal Descriptions

These kinds of errors usually involve clerical oversight, and they’re easy to rectify. All that’s needed to rectify this is obtaining a corrected deed from the parties involved.

An affidavit from someone who drafted the document will usually suffice to correct the error, but only if it doesn’t change the nature of the legal description.

Missing Interests

If a title chain includes a transfer from an estate, the abstractor must ensure any heirs have relinquished their claim to the property. Alternatively, the seller must acquire proof of this from these parties in the form of a deed releasing their interests. 

Open Security Deeds

If a property forms part of a security deed, the holder of the security deed must release the property before it’s sold. Often, these deeds stay open in error, so this is often a quick fix.

Liens

Liens are legal claims on a property used as collateral to fulfill a debt. These may include contractor’s liens for unpaid home repairs. 

If this factor comes up in a title search, the abstractor must determine if the lien has expired, or if it does not apply to the party involved.

Outstanding Property Taxes

Known, as ”ad valorem” taxes, the seller must pay any outstanding property taxes before they can transfer ownership to the buyer. If the lien is already sold, they’ll need to buy it back from the holder.

What Happens When a Title Search Reveals Problems

It’s impossible to transfer property until all the issues mentioned in the title search are completely resolved. This leaves buyers with three options:

• Asking the seller to resolve the issues
• Fixing the issues themselves and asking the seller for compensation
• Walking away from the deal and receiving a refund for the deposit

In this way, a dirty lien can create lengthy delays and costly extra expenses. 

How Long Does a Title Search Take to Complete?

In most cases, it takes one or two weeks to complete a title search. The process may take longer in the case of an older home or when the house has changed hands frequently.

With older homes, the searcher might need to go back in the records for 50 years or more, to discover the root deed. From there, they must investigate each subsequent transfer to ensure everything is above board.

How Much Does a Title Search Cost?

The cost of a title search varies depending on who is searching and the value of the purchase amount. You can expect to pay anything from $75 to $1,000 for this service.

The value of a title search lies in the fact that it could save the buyer thousands of dollars by revealing expensive issues that may crop up after they buy the home.

For sellers, pinpointing any potential issues before listing their home may prevent the buyer from backing out, or time delays due to a minor issue in the title search.

Once the title search is complete, the person who paid for it gets a simple report concerning all the documents connected to the property. This report highlights any encumbrances that may hamper the sale of the property or cost extra money at closing.

The title search includes two main costs, as follows:

Settlement Service Fees

These expenses include those incurred close to the loan, such as escrow, wire fees, and underwriting of the title insurance policy. It may include costs to resolve any issues discovered, too.

Title Insurance Premium

Title insurance involves a one-time cost paid at closing. They can amount to anything from 0.5 to 1% of the purchase amount. 

How to Do a Title Search on Property

Anyone can do a title search on a property. It’s much cheaper to do a title search yourself, but this time-consuming and complicated process is best left to the experts. 

All you need is the property’s legal description, i.e. the wording on the deed. This usually occurs on the property’s tax statement.

You take this information to the Office of the Examiner of Titles or the county Recorder’s Office and tell them you want access to public records. You can search for details about these government offices online. 

One of their employees will usually help you look up the chain of titles on a computer terminal. 

The rest is up to you. Unless you have a list of what’s required and experience deciphering legal documentation, it’s easy to overlook important aspects during a title search. 

You’ll need to visit several offices, or websites, and spend hours going through sometimes complicated legal documents. It’s easy for untrained people to overlook important details during a property title search. 

You need knowledge of real estate requirements and lien periods to carry out a title search. You’ll need to navigate complex records and legal indexing along the way.

Add to that the possibility of missing documentation, and you’ll never really know if you’ve covered all the bases in your title search.

Due to the difficulties involved, a title insurer will always insist that a professional carry out the title search. 

Avoid Worries About Title Searches

If you’ve inherited a home, property title searches may reveal issues you’re unaware of. In this case, selling to a cash buyer might be your best option.

With iBuyer, you have access to numerous cash investors. Some of these will pay cash for properties with minor title issues and assist you in clearing these up. 

Get started by entering your address in our home value estimator to see what you could get for your home, right now.

The post What Is a Property Title Search? appeared first on iBuyer Blog.

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If you’re considering listing your home on the market, you might want to review a comparative market analysis (CMA). What is a CMA in real estate, though?

But first, let’s talk about the current real estate market and why you’d be wise to review a CMA. 

According to Fortune Builders, over the last 12 months, housing market prices have increased by 18.2%. Inventory levels for new homes are also low, which could mean a great chance to take advantage of the market. 

So what is a CMA, and why should you review one? 

What Does the CMA Real Estate Term Mean?

If you’re still asking yourself, “What is CMA in real estate?” the name says it all. This is a comparison report of the local real estate market. Some realtors might refer to these CMAs as simply “comps“. 

These CMA reports can vary not only because of the market and location of your home but also what market variables your realtor feels best indicate the property’s value. 

Your realtor isn’t the only individual who can utilize the data to create a comprehensive CMA. An appraiser will also generate a real estate report. 

Only a licensed appraiser can issue a real estate appraisal. It needs to be said that a CMA is not an appraisal, which will be surprising for some new sellers. 

But this said, creating a CMA is a complex operation that combines many elements. Including the real estate market trends. Which, as we mentioned, is heavily favored towards the sellers. 

Also, a CMA should reflect a fair, unbiased assessment of property, which will give everyone involved a good understanding of the asking price. 

Another note to make is that generating a CMA real estate report is not a necessary exercise. It is not required by the federal government and is done only for your information. 

But as the expression goes, those who don’t prepare, prepare to fail. 

So, why generate a CMA report if it’s not required by law?

Why Should You Prepare a CMA Report? 

If you are onboarding a realtor, you need to be on the same page about the pricing of the home. 

By simply going through the exercise of compiling a real estate CMA report with a realtor, you will also be able to tap into new insights into the market. 

They will be able to give your comparative market analysis tips and comparative market analysis guides. 

In some states, homeowners can hold realtors and their brokerages responsible for performing an uninformative CMA and mispresenting the facts. This means that your realtor needs to be your real estate CMA guide. 

If you are a homeowner that believes this has happened to you, you can file a complaint to the state’s real estate licensing commission. But you need them to compile a CMA. 

Homeowners who are successful and are found to be right can expect the guilty party to face disciplinary action. 

But, other factors that an adequately filed CMA report will reveal are:

• Repairs that need to be made to the property
• Estimations of timings
• Highlight your property’s positive attributes
• Professional opinion to back up the listing price

We’d strongly recommend getting an iValuation or home evaluation, even if you sell your home for cash and don’t need an appraisal. 

Let’s focus on what might be in a CMA report.

What Will Be In a Real Estate CMA?

A realtor’s first step is to research real estate trends in your area for the last three to six months. This comparative listings report will be taken from data of homes within a radius of a few blocks. 

For areas where it is difficult to tap into these statistics due to your home being very new or in a place where no one is selling (AKA: rural area), we’d suggest getting an appraiser in to do a more qualified assessment. 

But calling an appraiser will cost money, so if your agent can produce the document, allow them to use the tools at their access — namely, the Realtor’s Property Resource, a national home sales database. 

All these sales are listed on Multiple Listing Services (MLS), which will list those subscribed to the service who can access data about recently sold and bought properties. 

In some cases, agents might look up property tax records, as it is an excellent jumping-off point to set parameters for what the federal government has estimated the property’s value. 

However, these will usually be lower than the median price in the area. 

So, what are the other factors that change the CMA?

Location of Property

When it comes to marketing a property, the location matters. The CMA will take into account its proximity to schools and amenities. Another consideration is the neighborhood’s general condition, whether the sidewalks are clean. 

The property’s location gives the agent an idea of the lifestyle they are selling. A perfect lifestyle fit, or generalization, for younger and single individuals, is if your property is located in the center of town. 

A factor to also consider is if there is an active homeowner association (HOA). HOA can either add to the property’s attractiveness or, if they are restrictive, be a hurdle. 

Overall, location matters a lot when compiling a comprehensive CMA. 

Other Properties Details 

As mentioned, this is a comparative market analysis, which means that your realtor will need to compare listings of properties sold and bought within the last three to six months. 

In these listings, the realtor will be focusing on:

• The asking price of the property
• Size of the property
• Age of building 
• Styling
• Construction of the home
• Landscaping
• And any mentions of updates and renovations

Once this information is gathered, the real estate agent will determine what criteria made a property attractive or not. 

Depending on where your home is located, trends can be different.

At the end of this process, the realtor will select three to five comparable homes in the area for the CMA. 

But how would they determine the best reflection of your home? 

Selecting Homes for the CMA

The agent will split the selection between recently bought and sold. These listings be the closest examples of the seller’s house.

While physical aspects will be listed, CMA will also highlight:

• Distances to amenities
• Schooling districts
• And the time they were either bought or sold

The last point is arguably the most important, as the property can change overnight. So, if you are selling, you want to do it as quickly as possible. 

But for the seller whose market hasn’t fluctuated, it will give a good indication of what sales. 

Another factor when selecting homes for a CMA is their differences. 

These differences can be the difference between being able to ask for more or less. 

Also, some additions will add more value than others. More bedrooms is one of the main differentiators of price when comparing homes. In contrast, niche features such as a putting green will not drive up your potential asking price. 

Once they’re happy with their adjusted list, they need to work out how much properties in the area sold for and work out per price per foot. 

Working Out Per Square Foot

Once you’ve adjusted your asking price for the differences in the CMA, the agent needs to show you how much your home is worth per square foot. 

They’ll start by dividing the price other properties sold for compared to their square footage, giving you their sold square footage.

You will want to find the average of this estimate for your area, meaning all the listings in the CMA will be worked out. 

Your realtor will need to crunch all the numbers and tap into their insights to give you the asking price that’ll work for you. 

Getting That Asking Price Just Right

While the real estate market is extremely healthy, there are some concerns that the market might change soon. Which, according to Insider Business, we’ve skipped.  

There’s still a need to ensure your home’s listing price is just right. Too much, and you’ll be stuck with a property that doesn’t move. This will eventually mean potential buyers will submit lowball offers. 

And if you’ve undervalued the property, you might not get the cash you need to pay off your mortgage or get the profit you need for your future plans. 

We also need to mention that your realtor providing this service will need their commission. 

According to Redfin, the typical real estate commission is between 5%-6% of your home’s selling price. 

This means if your home is listed for $150,000, you owe your realtor $7,500. 

Suppose you’re worried about profit margins and can’t avoid selling your home with a real estate agent. Don’t be. 

You can recruit the exact client with cash in your area with iBuyer.

But how does iBuyer work? 

No Need To Worry About CMAs With iBuyer.com

iBuyer has changed up the home selling process. There’s no need to call in real estate agents, landscapers, repairmen, and appraisers, just hop onto our site and get a fair cash offer now. 

In 2022, we can access this information compiled in a CMA in seconds without human error. Allowing for computers to work out the CMA, you get real current market values in the palm of your hand. 

And some of our iBuyers will send an evaluator to double-check the computer’s calculations. 

The post What Is CMA in Real Estate? appeared first on iBuyer Blog.

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Did you know you must have at least 120 hours of real estate education in an approved institution to become a realtor? The real estate examination is also difficult for many people. 

One aspect of real estate is there are a lot of terms you’ve got to understand if you want to be successful. Phrases like “closing costs” and “open listing” may not have meaning to the average person.

We’ll teach you about the four types of real estate listings, so you leave this article with an in-depth understanding of open listings. Keep reading for more about open listings explained.

What Is a Listing Agreement? 

A listing agreement (or listing agent contract) is a legally binding contractual agreement between sellers and the agents representing them during the sale. The agent in this arrangement is also called a “seller’s agent.” 

Now that you know what a listing agreement is and who uses them, let’s talk about listing agreement types. Listing agreements can be modified as needed, but there are generally four types: 

• Open listing agreement
• Exclusive right to sell
• Net listing agreement
• Exclusive agency

What Is an Open Listing in Real Estate? 

At the article’s start, we’d said that a real estate open listing is a non-exclusive contract; this is true, but it’s a little more complicated. Open listings are flexible contracts that allow you to work with multiple agents.

In the most common type of listing – exclusive right to sell – you’d enlist a listing agent (agent marketing the house) with the exclusive right to sell your home. This agent would keep all commissions from the sale.

All offers for your residence would go through this listing agent you’ve hired. With open listings, there is no listing agent; instead, various local buyer’s agents would market the listing. 

Think of open listings like an expanding web. Each buyer’s agent (agent attracting home buyers) can bring more potential buyers to your property. An open listing can reach out to many sales demographics. 

Real Estate Open Listing: What Is FSBO? 

FSBO or “For sale by owner” means that a seller is trying to sell their home without the assistance of a real estate agent. Before moving on, let’s clarify something – you do not need a real estate agent’s license to sell a home. 

If you own a home, you can sell the property. But, the catch is that FSBO sales are often difficult for homeowners. Selling a home takes a lot of effort, something many may not realize when begging the task.

Many homeowners have issues staging their homes for sale and handling the multitudes of paperwork. You can hire a real estate attorney to handle paperwork, but it costs extra and doesn’t come with the perks of a realtor. 

Marketing an FSBO home is also notoriously tricky, mainly because the typical homeowner may not know how to attract buyers to their property. 

How Open Listings Help FSBO Sales

You might wonder, “What does this have to do with open listings?” Open listings are technically a form of FSBO. Remember, you don’t enlist the help of a listing agent – you’re not getting someone to market the home. 

You’re only reaching out to people that will bring potential buyers to your property. Here’s one of many open listing tips to keep in mind – they make FSBO sales easier. 

An open listing on your residence makes marketing your house much more manageable. Various buyer’s agents can attract people to your home, and you’re not stuck trying to figure out how to handle the task. 

Advantages of An Open Listing

Here is the second of our open listing tips; these listings are more flexible than the others. As we said, you’re not committed to a single buyer’s agent. 

You can take your house off the market whenever you want without penalties. Typically, using a committed listing agent may result in having to pay full commission or marketing fees. 

These penalties happen because of cancelation clauses written into the listing agreement. The agents don’t want to lose the money they’ve put into your property before you’ve taken the property off the market. 

An open listing means you only have to pay part of the average commission amount. An agent’s commission is often around 6%, meaning you only pay 3%.

Disadvantages of Open Listings

There are cons to opting for real estate open listings. Open listings are essentially FSBO sales; you’re on your own with inspections, open houses, negotiations, and marketing. 

You’re still in charge of most of an agent’s responsibilities. Also, while agents will bring buyers, they’re more concerned with the buyer’s desires, not yours.

The buyer’s agents are negotiating on behalf of their client. They’ll pose prices agreeable to the person looking to purchase your home, and you either agree or decline. 

Open Listing vs. Exclusive Right to Sell

If you’ve wondered, “What is an open listing?” and never had an answer; hopefully, this guide has explained. But what exactly is the exclusive right to sell? 

We told you earlier that the exclusive right to sell means you hire a listing agent with the exclusive right to all sales commissions. You cannot work with another agent during this arrangement.

We’d also said that these listing agreements were the most common kind. Most agents agree to exclusive right to sell listings because they’re entitled to their entire commission fee (the complete 6%). 

The agent handles all offers, so they don’t lose any money or time on a deal they won’t garner payment. An exclusive right to sell listing agreement may have exceptions when the person is predetermined to buy your home.

You must have included this predetermined person in the sales proceedings before listing your residence. Their name must also be on the contract before all parties sign it. 

Customer service is the most significant advantage of an exclusive right-to-sell listing agreement. Securing buyers is not an easy task, so an agent will do whatever it takes to market your home to potential buyers. 

What is a Net Listing Agreement? 

Net listing agreements are less common than even open listings. A net listing agreement is when a listing agent agrees to sell your home for a specified price.

The agent pockets the remaining funds if the house sells for more than the stated price. Before you attempt a net listing agreement, know that they’re illegal in most places in the United States. 

You can attempt a net listing agreement in California and Texas. These two states have strict laws in place to protect sellers and prevent lawsuits regarding perceived losses. 

Net listings are a potentially good option for people looking for an assured, quick sale. But you need to be absolutely sure you trust your agent.

Agents are very involved in the purchase price, so they can take advantage by hiding lower offers from you. The financial danger and possible abuse of power are why these arrangements are risky and illegal in most places. 

Exclusive Agency

Exclusive agency listing arrangements are also rare. You can still hire a listing agent, but if you find a buyer, you keep the entire commission. You may have guessed why exclusive agency listings are rare. 

Many agents don’t want to risk putting in effort on a job to get no money. But exclusive agency does have great benefit to the seller. 

If you’d like to be hands-on and are confident in investing in marketing your home, an exclusive agency real estate agreement may be perfect for you. You still have an agent as backup and a source of reliable information. 

You should know that while you’ll still have a listing agent on your side, they may not provide the full suite of marketing services. It’s a good idea to track each buyer, so you’ll know who gets the commission. 

What Is an Open Listing? 

An open listing is a non-exclusive agreement that enables you to work with multiple buyer’s agents to find a potential buyer for your home. While open listings mean you pay an agent less than usual, there are disadvantages. 

You’re still committing an FSBO sale, so you’re stuck doing most of the leg work to sell your home. Luckily, this guide helped you understand this type of real estate listing.

If you need help selling your home, you can get a no-obligation offer from iBuyer.com. To get the process started submit your address and create an account to get your estimated home value.

The post What Is An Open Listing and How Does It Work? appeared first on iBuyer Blog.

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The thought of buying a home may conjure up feelings of stress, excitement, and chaos. Finding the right property is the biggest obstacle for 53% of buyers. Understanding facts about real estate could help you make better investment decisions. 

The real estate industry isn’t all doom and gloom. There are plenty of interesting real estate facts that may surprise you. Did you know that open houses used to last 12 hours?

It can be useful to brush up on real estate trends if you are buying or selling a home. Here are 15 real estate fun facts that are fascinating and practical to know. 

1. The Demand for Second Homes Has Grown by 99%

Buying a second and third home is becoming a popular choice for home buyers. Since 2015, the demand for second homes has grown by 99%. The estimated total of second homes in America is 7.5 million, which accounts for 5.5% of the total housing stock. 

The state with the largest stock of second homes was Florida with 1.1 million properties. South Dakota has the smallest stock of all 50 states with 20,000 second homes on record. 

2. 1 in 10 Americans Sell Their Home Due to Paranormal Activity

Many people stated that they thought their house was haunted before they bought it. Don’t worry if you don’t have a gift for the supernatural. State disclosure laws may require that agents disclose spirit residents and hauntings to potential buyers. 

A survey conducted by Cinch Home Services revealed that 1 in 10 Americans have sold their home due to a paranormal experience. Half of these encounters occurred in homes with two floors. Many Americans will contact a religious figure to deal with their spooky residents before deciding to sell up and move on. 

3. 50% of Millennial Investors Choose to Invest in Real Estate

Millennial investors are choosing real estate over the stock market. 85% of millennials agree that real estate is a good investment. Owning bricks and mortar is a more appealing and stable asset compared to stock market shares. 

Millennials are saving 10% of their income, which is more than double what Baby Boomers would have saved. The younger generation is less focused on buying their first home, which means they spend more time saving up for a deposit. Although millennials are becoming more interested in real estate, Baby Boomers are the generation with the most real estate wealth.

4. The Average House Price in America Is $428,700

The average house price in the US has increased each year for the last four years. The median house price increased by 416% between 1980 and 2020 to $428,700. House prices and income vary from state to state, but the average monthly mortgage payment is $1,230 per month for a 30-year, fixed-rate loan.

Hawaii is the most expensive state to purchase a home with an average house price of $1,038,544.

5. Over 17 Million Americans Spend Half Their Income on Rent

The Joint Center for Housing Studies of Harvard University released a report that showed that 1 in 4 renters spend 50% of their income on housing. Many of these people will be looking at buying a home to reduce their monthly outgoings.

Fannie Mae recently announced that renters who pay on time will increase their chances of qualifying for a mortgage in the future. 

6. 34% of Buyers Were First-Time Homeowners in 2021

The National Association of Realtors (NAR) showed that the typical age of a first-time buyer was 33 years old. When asked, their main reason for buying a house was to own their home. For most people, buying a home is the biggest financial decision they will ever make.

A first-time buyer is not always someone who is buying their first home. Many prospective buyers are single parents who previously owned property with their ex-spouse. A person who has not owned a personal residence in the last three years is also classified as a first-time buyer.

7. 44% of Millennials Would Buy a Home Based On Listing Photos

Millennials are more comfortable than older generations when ordering items online. With their finger on the pulse of digital society, Millennials turn to celebrities and influencers to help them make decisions on everything from real estate to furniture.

Buying a house online is a socially distanced and acceptable way to purchase a property in 2022.

Millennials are also buying houses through Facebook and Instagram while applying for their mortgages online. Buying a house through a real estate agent can be less convenient than conducting property searches online at any time of day.

8. The US Housing Market is Worth $33.6 Trillion

The US housing market is now worth more than the GDP of the two largest global economies (the US and China). The total value of every home in America is now estimated to be worth $33.6 trillion. California makes up 21.2% of the nation’s housing value with $7.1 trillion worth of homes. 

Los Angeles has added more than a trillion dollars to its housing market since 2010. 

9. Staged Homes Sell 3 Times Faster 

Staging your home before selling it is a worthwhile expense. 85% of real estate agents report that staged homes sell three times faster than non-staged properties. Make sure that you showcase each room by clearing the space and increasing natural light. 

Buyers are looking for a property that is fresh and well-maintained. Spending time on your home’s exterior can also increase the property value.

Spraying existing doors and window frames could save you a fortune and add up to $10,000 to your home’s value. Ask your realtor what you can do for your property to add value before it goes on the market.

10. Gen X and Millennials Want Large Yards

Most millennials realize that their first house may not be their forever home. However, outdoor space is at the top of their priority list. More than two-thirds of millennials and Gen Xers want access to a large yard or outdoor space. 

A community survey by the National Association of Realtors (NAR) revealed that millennials want a larger home within a walkable community. 

11. 67% of Buyers Want a Detached Home

The majority of home buyers do not want neighbors. A report by the National Association of Home Builders revealed that 67% of buyers are interested in a single-family, detached home. 15% of buyers would like a townhouse and 8% want to buy a multi-family condo.

Detached homes offer privacy and the possibility of extending without upsetting neighbors. A detached house also has more curb appeal, which can be handy if you plan on moving again in the future. 

12. Buyers Will Pay More for Smart Home Devices

78% of home buyers said they would pay more for a home with smart devices installed. Smart home technology makes a house more convenient while saving time and money. Women are also twice as like to desire home security systems as men.

Multi-functional smart hubs are the most popular devices with video doorbells and smart lighting following closely behind. 

13. The Average Home Purchase Takes 51 Days

According to ICE Mortgage Technology, it takes an average of 51 days to close a loan on a home purchase. Getting pre-approved for your mortgage can shorten this time and improve your chances of a better mortgage rate.

Keeping a close eye on your finances and preparing documents can also save time and speed up the home buying process.

14. 42% of Buyers Believe Real Estate is a Better Investment Than Stocks

Although the return is not as good as the stock market, real estate is a lower-risk investment for many Americans.

A survey conducted by the NAR revealed that 42% of home buyers feel more comfortable investing their money in real estate over shares in the stock market. Stocks can be more volatile than real estate making them the less preferable choice for investors. 

15. 1 in 5 Realtors Live in California

There are approximately 1,564,537 realtors in the USA as of October 2021. California is home to more realtors than any other state in the US.

With interest rates at an all-time low, the housing market in California is booming. California is a popular location for home buyers who want a slice of the beachfront lifestyle at an affordable price.

Buying a home in California has so many perks for prospective buyers, too. The Bakersfield real estate market is a popular place to find affordable housing in California. Bakersfield is known for its agriculture and energy production with beautiful, warm summers.

Find More Helpful Facts About Real Estate

Fine-tuning your real estate knowledge can be beneficial if you are selling your home. These useful facts about real estate can help you discover what people are looking for when buying a home. If you are thinking of selling your home, getting a price estimation online could be an easy first step.

Do you want to sell your home without the hassle? A trusted iBuyer could make an instant offer for your home in minutes with no obligation. Get in touch with iBuyer to get an instant and accurate estimate for your home.

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