With the internet at your disposal, it’s easy to scope out what’s available for sale right now, and with all those Open Houses that take place every weekend, visiting homes for sale on your own is a real possibility. Even taking a DIY approach to selling property is possible, especially with the internet at your disposal.

Sure, it’s possible to buy or sell without a real estate agent, but it’s not recommended. In fact, it’s strongly advised against and could wind up being one of the biggest mistakes you ever make. Buying and selling real estate is a big deal and involves a lot of intricacies that you are likely unfamiliar with.

Considering how big this particular financial decision is, you definitely want to get it right the first time, and the best way to do that is by working with an experienced real estate agent.

Still not convinced? Here are just a handful of reasons why not working with an agent can prove to be disastrous.

1. You Have No Experience

Unless you’re an agent yourself, you probably have very little to no experience buying homes. There’s a reason why agents undergo extensive training and study through courses before obtaining their license: there’s a lot to know about the industry. Participating in a real estate transaction without an agent is like going in blind.

Agents have a ton of expertise buying homes on behalf of clients. There’s a slew of forms and documents to have to sift through and sign, and you definitely don’t want to put your John Hancock on any legally binding contract that you don’t entirely understand. Plus, how will you even know how much to offer and what terms and clauses to include in a purchase agreement if you’re buying? And if you’re selling, how will you know how much to list for?

Realtors have a plethora of knowledge and experience in this realm, and not using their help is a big mistake.

2. You’ll Barely Scratch the Surface When Finding Homes For Sale

If you’re on the buying end of a deal, you might be able to find a number of properties for sale on the internet. But realtors are constantly networking with other agents and communicating about properties that are coming up on the market. As such, they’ll be able to help their buyer clients have a larger pool of properties to choose from. They may even be able to connect you with a home that hasn’t even hit the market yet.

3. You Don’t Experience Negotiating Real Estate Deals

Unless you’ve been immersed in negotiations for real estate, you’ll be at a serious disadvantage when it comes time to wheel and deal the best price, regardless of what side of the coin you happen to be on. With today’s housing market heating up, negotiations are more likely to be pretty heated, so you’ll want to make sure that you’ve got the negotiating abilities to score a good deal.

Think about the competition and the potential for bidding wars – wouldn’t you rather have an experienced professional in your corner to help ensure a successful transaction?

4. Your Network May Be Limited

When it comes to buying and selling real estate, a lot of other professionals typically play a role. Whether it’s interior designers, home stagers, contractors, lawyers, or home inspectors, many other experts often come into play, and real estate agents typically have a network of such professionals that they know and trust. Without such a network, finding a professional that you can count on can be a bit of a challenge. But with a realtor by your side, you can connect with another professional to meet your needs without any hassle.

5. Your Emotions Will Probably Get in the Way

It’s not uncommon for buyers and sellers to get emotional during a real estate transaction. This is especially true for sellers who have obviously developed an emotional connection with their homes and may get easily offended by lowball offers or criticism of certain aspects of the property.

In this case, emotions can get in the way of a smooth, streamlined deal, which is why it’s always best to have a neutral, unbiased third party act as a buffer in the negotiations to make sure that decisions are being made from the head rather than the heart.

Without an agent, you’ll have to deal directly with a buyer or seller, as well as all their rejections and objections. This can certainly be distressing at times, but an agent can neutralize such settings to ensure a successful transaction that every party can be satisfied with.

6. You Probably Don’t Have Enough Time to Go it Alone

Most likely, you’ve got a full-time job and don’t have a lot of time in your schedule to dedicate to buying or selling on your own. This is especially true for sellers who would be tasked with all the marketing, scheduling of showings, and fielding phone calls from potential buyers. There really is a lot of behind-the-scenes activity that real estate agents take care of that the average buyer or seller may not be aware of.

This is what they do for a living, and it takes up a better part of their day. Do you have the hours upon hours to dedicate to selling your home? Would you be able to take calls in the middle of your workday? Would you have the energy to deal with marketing your home and showing it to potential buyers after work or on weekends? Probably not, which is why your best bet is to hire a real estate agent to take care of all this legwork for you.

7. You Could Put Yourself at Legal Risk

Buying and selling real estate is a legal process and involves a lot of paperwork that is legally binding once signed. All that legal paperwork needs to be entirely accurate and not omit or embellish anything. This is of particular importance for sellers who are ultimately responsible for drafting up paperwork that encompasses all necessary and pertinent information.

In particular, disclosures are huge, and sellers have a duty to disclose all relevant information regarding their home that would influence whether or not a buyer would be interested in making a purchase. If you’re a seller and leave out any relevant information – regardless of whether or not you were aware of such ommissions – you could land yourself in legal hot water once the buyer moves in and discovers any defects that weren’t disclosed.

But if you work with a real estate agent, you can effectively keep out of trouble, making an agent a crucial part of the real estate equation.

The Bottom Line

There’s really no reason to leave a real estate agent out of the picture when buying or selling homes. As a buyer, you don’t have to pay commissions anyway (since sellers typically cover this cost), so there really is no reason to go about finding and buying a home alone.

And as a seller, the legal ramifications are just too significant to risk selling a property without the aid of a professional. Any commissions paid can be easily recouped in a higher sale price, better contract terms, and protection from legal troubles that can realistically occur if your paperwork isn’t airtight.

With everything that real estate agents have to offer buyers and sellers in the real estate process, it makes sense to include them as part of this crucial process and transaction.

Based on the average price of houses these days, coming up with a down payment can be a major endeavor. According to the California Association of Realtors (CAR), the average price for a single-family existing home currently sits at $584,460. If you were to try and come up a 20% down payment, you would need to gather up $116,892! That’s a hefty sum for the average American, but conventional mortgages require 20%, or else Private Mortgage Insurance (PMI) will be applied. That means more money dished out.

Of course, it is not mandatory to put down 20%. Conventional mortgages will accept a minimum down payment of 5% towards the purchase price of a home, as long as your credit is in good standing and your financials are in check. Even still, 5% of the statewide average home price is $29,223, which is still a large amount for many borrowers to save up.

Luckily, there are several low down payment options available to homebuyers who struggle to save up a large down payment.

1. FHA Loan

One of the more popular mortgage programs available for those with a low down payment are FHA loans. This type of mortgage program is backed by the Federal Housing Administration (FHA) allows down payments as low as 3.5%.

While the government doesn’t actually fund the loans, it does provide lenders with some reassurance in case borrowers default on their mortgages. Not only are FHA loans good for borrowers with a low down payment, they’re also suitable for lower-income borrowers and those who don’t have excellent credit.

It should be noted that if your credit score is less than 580, you may have to put down slightly more than 3.5%. In addition, you’ll have to pay mortgage insurance premiums over the life of the loan if your down payment is less than 10%.

2. HomeReady Program

Fannie Mae’s HomeReady mortgage is also backed by the government and only requires 3% down to secure a mortgage. This type of program is geared towards low- to moderate-income borrowers with decent credit scores.

One of the great things about this program is that it can take into consideration the incomes of other adults living in the home. That means any grandparents, adult children, or siblings can include their income in the calculations to make securing a mortgage and coming up with a decent down payment much easier if you’re struggling to do so on your own.

3. Home Possible Program

Similar to Fannie Mae’s HomeReady program, Freddie Mac’s Home Possible program allows borrowers to put down as little as 3% towards a down payment. This mortgage option is great for low- to moderate-income homebuyers, as well as first-time homebuyers who are struggling to make the leap from renting to owning.

There are income limits that apply, however. In order to be eligible for this mortgage program, your income can’t go over the median income in the area where the home that you’re buying is located. That said, there are some exceptions, including situations where the home that’s being purchased is located in high-cost areas. In these cases, higher AMIs may still qualify.

4. Conventional 97 Program

Fannie Mae has another low down payment mortgage program for borrowers struggling to collect a large sum of money. The Conventional 97 program is designed to help borrowers who are only able to afford no more than a 3% down payment, and there are no credit requirements to qualify, either.

In addition, the Conventional 97 program allows 100% of the down payment to be a gift, as long as the proper paper trail shows that it is not a loan. Private Mortgage Insurance (PMI) is required on conventional mortgages with a loan-to-value ratio (LTV) of over 80%. However, once the LTV dips to 78% or below, PMI automatically drops off the mortgage.

5. VA Loan

If you’re a veteran or are the spouse of a veteran, you may be eligible for a VA mortgage, which is backed by the U.S. Department of Veterans Affairs (VA). These types of loans actually require no down payment at all and offer 100% financing, making them as affordable as mortgages can get. Not only that, but VA loans do not require any mortgage insurance, which can save you even more money over the life of the loan.

As far as credit requirements are concerned, individual lenders will have their own criteria for borrowers to meet. That said, the majority of lenders require a credit score of at least 620, though lower credit requirements may be found with specific lenders.

6. USDA Loan

USDA loans are meant for buyers who are purchasing a property in a designated rural area, as long as the property itself is not considered a working farm. This type of loan, which is backed by the U.S. Department of Agriculture, is designed to help stimulate growth and development of rural areas. In exchange, USDA loans do not require a down payment. In addition, the upfront fees are typically lower compared to other types of mortgages.

In addition to the type of property being purchased, there are also income restrictions in order for borrowers to qualify. The total household earnings – including all adults working in the home, including adult children – cannot exceed 115% of the Area Median Income (AMI). However, you may be able to deduct specific expenses from the total income amount.

Other requirements include a minimum credit score of 620 and a debt-to-income (DTI) ratio of no more than 45%.

The Bottom Line

Depending on your specific situation, you may be eligible for any one of the above mortgage programs that allow a small down payment, and sometimes none at all. Just keep in mind that mortgage insurance will most likely be required in most cases if your down payment isn’t above the 20% mark. Be sure to speak with a mortgage specialist who can walk you through all your options before settling on one particular mortgage program.

Homeowners insurance is essential when buying and owning a home. In fact, you won’t even be able to get a mortgage if you are unable to secure an insurance policy for your home, as lenders will want to make sure a home is eligible for insurance before extending a mortgage.

But there isn’t just one type of homeowners insurance policy. In fact, there are several different types, and the one that you choose will depend on the specific type of property you’re buying and your particular needs.

The following are the different types of homeowners insurance policies you should become familiar with before choosing the one suits your situation best.

HO-1

This is the most basic form of insurance and only covers the dwelling against damage from:

• Fire
• Lightning
• Explosions
• Windstorms
• Hail
• Theft & vandalism
• Damage from vehicles
• Damage from airplanes
• Riots
• Volcanic eruptions

You’ll notice that floods and earthquakes are not included in this list. That’s because the HO-1 policy is very basic in nature and only covers costs associated with disasters that are not very common (aside from fire). Floods and earthquakes are much more common, and as such, you’d have to take out additional insurance riders to cover any damage associated with such disasters.

These policies are not very common given their vague nature and limited coverage offered.

HO-2

An HO-2 is more common and covers all the perils included in an HO-1 policy, as well as things such as damage from the weight of ice or snow, falling objects, overflow of water, freezing of HVAC systems, cracking or bursting of plumbing pipes, and damage from electrical currents. Unlike the HO-1, the HO-2 policy also covers personal liability if you or a family member are responsible for causing property damage or bodily injury to someone else.

HO-3

This is the most common type of homeowners insurance and provides coverage for your home and other structures, such as detached garages, sheds, pool houses, and so forth, except for damage caused by mishaps specifically excluded. It also covers your personal belongings and personal liability. While this is the more popular form of insurance, it’s important to go over the policy with an insurance provider to fully understand what’s covered and what isn’t.

HO-4

If you are renting a property, this policy is for you. HO-4 insurance policies cover personal belongings and personal liability for renters. Your landlord is responsible for insuring the actual building itself. Under this policy, your belongings would be covered against the same mishaps included under an HO-2 policy, as well as additional living expenses if you ever have to stay somewhere else temporarily while your unit is being repaired.

HO-5

This is a popular type of homeowners insurance policy because it is comprehensive and covers many more items that are not included in other policy types. While the HO-3 policy is popular, the HO-5 offers even more coverage and is often recommended by professionals, though they do come with a higher premium in exchange for more comprehensive coverage.

That said, certain perils are not covered under this type of policy, such as damage from:

Floods

Earthquakes

Mold/fungus

Birds, pets, and insects

Foundation settling

War

If you want to be covered for any one of the above-mentioned perils, you will have to take out an insurance rider, which will cost extra.

HO-6

If you own a condo, you will want to take out a specialized type of homeowners insurance policy that is designed specifically for these unique types of residences. The actual building itself and all common areas are covered by the condo association’s own insurance policy, but you’re responsible for taking out your own policy – an HO-6 – which covers the ceilings, walls, and floors of the unit itself, as well as personal belongings and personal liability.

HO-7

Even mobile homes require some form of homeowners insurance, and the HO-7 policy is specifically for these dwelling types. This form is similar to the HO-3, but is meant specifically for mobile and manufactured homes.

HO-8

This insurance policy is designed for older properties to cover issues that are not typically covered under other policy types. Older homes are often made with materials that are no longer used or available today, so it would be nearly impossible to replace the materials to rebuild the property in case anything ever happened. Historic and heritage homes are typically covered under these policies.

The Bottom Line

While HO-3 and HO-5 policies are the more common types of homeowners insurance policies, the one you choose will depend on your specific dwelling type and needs. You can also add on insurance “riders” in order to fully customize your coverage in case one particular policy doesn’t provide you with the exact type of coverage you require. Be sure to discuss all of your needs with your insurance provider to help you select the appropriate policy for you.

Given California’s fabulous climate, the outdoors can be enjoyed year-round, especially at home. An outdoor living space is a lot more than just a couple of lawn chairs and a table. These days, savvy homeowners are making the most of their outdoor spaces by incorporating a number of convenient and ingenious ideas.

The following are some of the hottest trends in outdoor living that are big in 2018 and will likely maintain steam going forward.

1. Vertical Gardens

Fruit, vegetable, and herb gardens are a common staple in outdoor spaces. But in addition to planting all of your greens on the ground, you can use any vertical space you may have as well. This is especially helpful if you lack a lot of square footage outside, in which case growing your gardens vertically can save a lot of space.

Those who live in condo units or townhomes would particularly benefit from vertical gardens. You can hang your plants on walls or install pergolas or arches to provide added vertical surfaces for this purpose. Not only do vertical gardens make good use of a small space, they also add an element of depth to the area.

2. Fire Tables

Having a fire pit in the backyard is the great way to add some ambiance as the sun starts to set and provide a little bit of warmth on particularly cool nights. But in addition to a traditional fire pit, today’s outdoor spaces are increasingly being outfitted with fire tables.

As the name suggests, these pieces combine the functionality of a table with the convenience of a fire in the center. The great thing about fire tables is that they blend in seamlessly with all other patio furniture while simultaneously offering a heat source and a cozy atmosphere.

3. Deep, Bold Blues

As far as colors are concerned, blue seems to be taking the top spot for outdoor decor. While bright reds and natural greens are still hot, deep blues are becoming the color of choice among homeowners as of late This vibrant hue can be incorporated in seat cushions, umbrellas, and area rugs. When coupled with neutrals that are traditionally found in outdoor furniture such as black, grey, and natural wood, bold blues can make a backyard really stand out.

4. Porcelain Floors

Concrete, wood planks, and interlocking stone have long been used for flooring outdoors, but other non-traditional types of materials are making their appearance outdoors, including porcelain pavers.

A highly durable and strong material, porcelain makes a great alternative for patio and deck flooring. It’s also aesthetically appealing and can easily add a decorative element to any outdoor space. Porcelain pavers can also make the transition from the indoors to the outdoors as seamless as possible.

5. Folding Glass Doors

As an alternative to sliders or swinging doors, folding glass doors fold neatly out of the way without the need to have a double-door entry. Folding glass doors basically stack as they slide along a track system. Unconventional elements like these can also help create a seamless transition from the inside out.

6. Motorized Retractable Screens

Similar to folding glass doors, retractable screens roll out of sight. While there are manual options available, motorized retractable screens quickly roll up and are housed in the door frame at the touch of a button when you don’t need them. When it’s time to close the retractable screen, simply push the button again to have it roll back into place to provide fresh air indoors without letting any pests in.

7. Outdoor Televisions

You can catch the big game right from the comfort of your own backyard with the installation of a big screen TV. Outdoor televisions are specifically made to withstand the elements and are properly sealed so that no precipitation will be able to destroy the unit. In addition, sealing will also help reduce the glare from the sun so that you can enjoy what you’re watching.

8. Patio Bars

Joining the increasingly popular outdoor kitchens are patio bars, which are perfect for entertaining outdoors. In fact, patio bars are easily one of the hottest trends in outdoor space design these days. And with a myriad of finishes and materials to choose from, you can easily create the most unique patio bar to suit your style and your home.

The Bottom Line

If you’re creating a new outdoor living space or are looking to update or add to your existing space, any one of these trends can help you give your backyard a major boost. So far, 2018 home design is all about making outdoor living spaces function like indoor spaces as far as entertainment, relaxation, and convenience is concerned. Consider implementing any one of these ideas into your outdoor space to create a backyard oasis you’ll never want to leave.

Having a pool in the confines of your own backyard can certainly be a statement element for your outdoor oasis. And considering the fact that the climate in California typically allows for year-round enjoyment of swimming outdoors, adding a pool can offer you and your family plenty of recreational time. Plus, buyers in the Golden State often look for homes with a pool, and may even expect it.

That said, there are still certain things you should consider before making the decision to install a pool on your property, including the following.

1. How Will You Use it?

Sounds like a silly question, but you might want to ponder it for a moment because the answer will help determine the type of pool you install. Are you installing the pool for entertainment purposes? For the kids? To exercise or relax? Or simply for investment purposes?

Pools for one purpose will look significantly different than pools for another. For instance, a pool meant for the kids to frolic in might look completely different than one used for tranquil spa-like afternoons. Answering these types questions can help you determine the right type of pool design that will suit you best.

2. What is Your Budget?

Obviously, the amount of money you have available to spend on a pool installation will be a key factor. Is your budget even capable of covering the installation of a pool? If it is, what type of pool and features will it be able to accommodate?

You will definitely want to have a chat with your pool builder to get a detailed idea of how much it will cost you. Knowing these numbers in advance will help you determine if the project is possible and what type of pool and amenities you’ll be able to afford so you can adjust your budget accordingly.

3. What Security Options Will You Include?

You will need to obtain a building permit before you have a pool installed, and part of this permit involves the types of safety codes that will need to be met. But in addition to what the bylaws stipulate, what other means of safety and security will you implement into your pool design?

You might want to take measures to keep children or pets safe if there are any in the home, and there are plenty of safety gadgets and features available to make your pool very safe. These may include water entry alarms, locks on gates, and child-proof pool covers.

4. What Materials Will You Use?

Pools can be constructed using a number of different material types, some of which are more durable and expensive than others. The best material is typically concrete, as it is the most durable and long-lasting. It also allows for more flexibility in shape and size. But, it’s also more expensive than other options and is more invasive to install. Other options include vinyl and fiberglass, both of which are quick and easy to install.

As far as pool surfaces are concerned, you also have a number of options to choose from, including vinyl covers and even tile surfaces, the latter of which is becoming more and more popular, especially among luxury pool owners.

5. What Shape Do you Prefer?

Pool builders typically recommend that homeowners select a pool shape and style that goes well with the surrounding landscaping, the size and shape of the property, and the architecture of the home. If you have a specific pool shape that you are hard-pressed to have installed but doesn’t complement your home’s architecture or landscape, you can always add an area that transitions from the surroundings to the pool, such as walkways, different hardscape materials, or plants.

Of course, you will also want to consider how the pool will be used when determining the shape of the pool. For instance, a lap pool meant for fitness should probably be long and rectangular in shape, while leisurely pools can take virtually any type of shape you want.

6. Is Your Lot Suitable For a Pool?

You will need to consider whether or not your lot is easily capable of accommodating a pool. For example, significant changes in elevation might make pool installation much more of a chore. In addition, the soil itself will need to be tested before pool installation to see if it is suitable for any construction. Rocky or sandy soil, for instance, might make things more difficult.

There may also be accessibility issues, making pool installation very difficult, if not impossible. Lots of heavy machinery will be required to install a pool, and if that equipment can’t reach the pool site easily, there could be a problem.

7. Where Will You Put the Pool?

If your backyard is very small, you might not have many choices about where to have your pool installed. But if you’re dealing with a larger property, you’ll need to determine a few things first before deciding on the exact location of the pool on your property.

Start with finding out what the exact zoning and building laws are in your area. There may be restrictions in terms of how your pool needs to be fenced in, the direction of the slope for water runoff, and where the gas, electrical, and cable lines are located. You will also want to think about how people will get in and out of the pool, where bathers will be hanging out, and exposure to the sun’s rays.

8. How Much Maintenance is Involved?

Pools require a great deal of maintenance, and unless you hire a pool maintenance service to tackle this job for you, it will be your responsibility. Find out how much maintenance is required to keep up with the pool equipment, keeping water chemicals balanced, and cleaning the water and pool surfaces.

9. What Types of Amenities and Features Do You Want?

If your budget permits, you might want to think about adding some features or amenities that will make your pool much more enjoyable. These days, the options are seemingly endless, with features such as lighting, waterfalls, infinity edges, underwater sundecks, swim-up bars, and sporting equipment all available to make the most of your pool.

Think about the amenities you want outside of the pool as well, such as a cabana, bathroom with shower, dinette area, gazebo, fire pit, and outdoor kitchen. If you plan to add any of these amenities, make sure that your pool plan accommodates such features in terms of space and utility lines. 

The Bottom Line

There are definitely a number of things to consider when it comes to installing a pool in your backyard. Once you’ve decided to add a pool on your property, a lot of planning will be involved. But after you’ve covered all your bases and communicated with your pool builder about everything you’d like to have, your home can become a resort that you never have to take a plane ride to visit and enjoy.