Have you ever wondered, “Do I need a Realtor for new construction?” After all, when you’re house hunting, the allure of new construction is undeniable. You get to be the first to live in the pristine home—one untouched by grimy hands or muddy shoes. It’s full of brand-new appliances and the finishes and treatments that you picked to fit your aesthetic. And you won’t have to worry about making any cosmetic or structural upgrades for years.

If you are interested in buying a new construction, the builder’s agent will be ready to help you with the process. But make no mistake: You need your own real estate agent from the get-go. Even if it seems like plug and play to sign up with the builder’s on-site agent, you’re going to want someone representing your side of the deal.

Using a Realtor for new construction: What is a builder’s agent?

When you buy a new construction, the home’s builder is considered the seller, and the agent representing the builder is called the builder’s agent.

“The builder’s agent will always have the builder’s best interest in mind,” says real estate agent Jason Walgrave, with Re/Max Advantage Plus, in Lakeville, MN.

After all, the job of the builder’s agent is to get the highest price for the homes the builder is selling so the agent is not going to be as eager to negotiate down.

Why you should hire a Realtor for new construction

It’s a good idea to have your real estate agent accompany you on your first visit to the new construction. Why? Because the builder (aka the seller) will be responsible for paying the commission, and needs to know if you’ll have a real estate agent representing you. So bringing your agent to the first visit will make it clear that the builder’s agent will be on the hook for paying commission. Some builders might even refuse to pay your agent a commission if you don’t register the agent the first time you visit the home on a new construction site.

“Your real estate agent’s job is to help you get the most value for your money, with the least hassle and frustration,” says Patrick Welsh, a real estate agent with Keller Williams, in Houston.

When buying new construction, here’s what your real estate agent will help you with that you might miss out on if you stick with the builder’s agent:

• Negotiating extras: Want upgraded counters or appliances in that new home? Your agent can help you with all those extra perks, amenities, and upgrades. “We can often negotiate with the builder on things like paint color or even the style of garage door, especially if the housing development is in the beginning stages,” Walgrave says.
• Recommending financing: A builder typically will have a “preferred” lender that it will try to steer you to, but your real estate agent can help make sure that you’re getting the mortgage that works best for your situation. Shopping around is always wise, and you don’t want the builder’s agent pressuring you into using their suggested professional unless it’s right for you.
• Overseeing a home inspection: Tempted to forgo a home inspection in new construction? Don’t do it, advises Welsh. “The number and severity of new-home defects often rival resale home problems,” he says.The builder’s agent is unlikely to push for or offer up an inspection, so it’s up to you and your real estate agent to make it happen.

How the builder’s agent can help you

All that said, the builder’s agent can be a valuable resource for learning about your potential new home.

“They are knowledgeable about the construction and available amenities, as well as the housing development and general community vibe,” says Walgrave. You can rely on the builder’s agent for background information—just don’t make this individual your sole point of contact on the buying and selling process.

Everyone wants to walk away from buying a home—whether it be a new construction or not—with peace of mind. Having a real estate agent in your corner will help facilitate that.

For this and related articles, visit Realtor.com

Veterans, service members, and their families believe in homeownership. In fact, the homeownership rate among veterans far outpaces that of civilians.

But the financial toll of military service can make it tough for some veterans to get a financial foothold, let alone land a home loan.

The good news is those who serve have access to a host of home-buying benefits and protections, from what’s arguably the most powerful home loan on the market to financial safeguards and more.

Let’s take a closer look.

VA loan program

Since the VA loan program’s inception in 1944, the Department of Veterans Affairs has backed more than 21 million loans for veterans, active-duty military members, and their spouses. This program has made buying a home more accessible to those who most deserve the American dream they helped build and protect.

VA loans feature many benefits that help make home buying possible, including the following:

• No down payment requirement
• No mortgage insurance
• Lower average interest rates
• Limits on closing costs
• More lenient credit requirements

VA home loans have boomed in recent years, attracting many veterans and military members who may not qualify for conventional loans, which have stricter credit requirements.

Still, many eligible buyers are unaware of the benefits of VA home loans and the protections they offer. Some buyers also make the mistake of assuming a government-backed loan comes with endless red tape and miss an opportunity to benefit.

Typically, veterans and active-duty service members are eligible for a VA home loan if they served in the following capacity:

• 90 consecutive days on active duty during wartime
• 181 consecutive days on active duty during peacetime
• 6 or more years in the National Guard or Reserves

Some spouses of military members who died in the line of duty or of a service-related disability may also be eligible for a VA loan.

Talk with a VA lender about obtaining your Certificate of Eligibility and getting a sense of your purchasing power.

Occupancy & power of attorney

VA loans are focused on getting buyers into homes they’ll live in full time. But the program makes exceptions for some veterans and active-duty service members.

For example, a spouse or children may be able to fulfill the occupancy requirement on behalf of a VA buyer. Also, a VA buyer who is deployed or otherwise unable to manage the loan process can typically assign a power of attorney to a spouse or family member to manage the loan process and sign documents.

There are two types of power of attorney: general and specific. The type needed depends in part on what loan-related documents the VA buyer can sign.

The occupancy and power of attorney options mean an eligible VA buyer’s spouse and children could buy a home during a deployment or unaccompanied assignment, helping alleviate the emotional toll of multiple moves on military families.

Basic allowance for housing

Many active-duty military members who receive a monthly housing allowance are surprised to learn that they can use this money to qualify for a home loan. Lenders can count Basic Allowance for Housing (BAH) as effective income. That can help service members make the leap from renting to owning, especially in higher-cost areas.

BAH is based on several factors, including the location of your duty station, your pay grade, and your family size. The housing allowance can change on an annual basis. To calculate your BAH, refer to the BAH calculator on the Defense Department’s website.

Financial protections

Even after becoming homeowners, active-duty service members can face unique financial challenges. Deployment and changes of station can strain a family emotionally and financially.

The Servicemembers Civil Relief Act (SCRA) provides active-duty military personnel and their families financial protection involving interest rates, income tax payments, eviction, foreclosure, and more.

For example, military personnel can ask creditors—including their mortgage lender—to cap their interest rate at 6% during their term of service. The SCRA also forces lenders and servicers to seek a court order to foreclose on active-duty military members during their time of service and up to nine months afterward.

Veterans Affairs also offers foreclosure avoidance protection assistance for homeowners. The VA has a team of experts who work with lenders and servicers on behalf of struggling homeowners to find alternatives to foreclosure. Their efforts have helped nearly 500,000 veterans and service members avoid foreclosure in the past six years alone.

Check with your local Armed Forces Legal Assistance office for more information regarding the Servicemembers Civil Relief Act. VA homeowners in jeopardy of defaulting on their mortgage can contact the VA loan program at 877-827-3702.

For this and related articles, visit Realtor.com

Two years ago, we painted a major living area in our home—a large, open-concept space that contains our family room and kitchen, with high ceilings and lots of natural light. We took it from a garish mustard yellow to white. The room now looks so light, so bright, so green.

How could this be? It turns out, our home is surrounded by trees, and during the day, the light flooding through the windows carries a green tint, which shows up on our white walls. We hadn’t considered this possibility when we’d picked what we thought was the perfect shade of white. Oops.

The fact is, as simple as it may seem to pick a paint color, there’s a host of factors to consider beyond the colors you like. Even when you narrow it down, for each color there are literally hundreds of shades and sheens, and each will look a bit different depending on where it’s painted.

So how do you choose the right one? Here are some factors experts say you should consider to find a color you won’t regret.

Determine what mood you want the space to convey

Before you determine how you want to paint your space, you want to consider why you’re painting it. Paint has the power to significantly change a room, but it’s important to determine the goal for that change.

Erika Woelfel, vice president of color and creative services at Behr Paint, says an important consideration is mood.

“When people are looking at a painting project, they’re usually looking for a transformation to happen, and mood is a big part of that,” Woelfel says. “So how you want the room to feel is often a good way to help determine the right color. For example, a brighter room is more energetic, while neutrals are calmer.”

Are you looking for a bright and peppy perk-up, or are you craving a tranquil escape? Asking yourself these kinds of questions can help you at least determine a starting point on the color spectrum.

Keep tabs on what colors are in the room already

Woelfel says people also often forget to consider an entire space when choosing a color. Inside, that means coordinating colors with things like the cabinetry, flooring, and hardware. The same idea holds true outside.

“In the excitement of selecting paint colors for the exterior of a home, you can forget to consider the colors of the architectural details you aren’t painting or changing,” says Jessica Barr, national trainer and paint application expert for Behr Paint. “Make sure the colors of the shingles, brick, stonework, and light fixtures complement the exterior paint colors you choose.”

Pick a paint sheen, too

Once you choose the color, you’re not done—you must also consider a paint’s finish, which cannot be accurately evaluated through an app. In general, the choices fall into three categories: flat or matte, satin, and semigloss or gloss. They determine how reflective a paint is and can significantly affect how a particular paint color looks on your walls.

“People very often forget to consider the sheen of a paint,” Woelfel says. “The higher the sheen, the deeper the color looks. When it’s flat or matte, the light gets absorbed, but when it’s glossy, the color looks deeper, because there’s a shine to that surface.”

You must also consider where you’re applying that paint. For example, higher-gloss paints tend to be easier to clean, so they’re better for high-traffic areas, although they do highlight imperfections. Matte paints are more difficult to clean, but they’re better at hiding imperfections and may be good for ceilings and hallways. Satin finishes fall somewhere in the middle, and are a popular choice for bedrooms, living rooms, and playrooms.

For more information on choosing the best paint sheen, Home Depot offers the following video:

Use paint color apps to test it out

Once you have a general idea of the color or colors you like, it’s time to start narrowing things down further. The good news is there are online tools to help you make the right paint choices and set that mood, many of which don’t even require you to leave your couch.

For example, Home Depot’s ProjectColor app lets you snap pictures of various areas of your home, then try out different paints on them. It will make suggestions and help you find versions that coordinate with furniture or other items in the spaces. Similar functionality can be found with the Sherwin-Williams Color Snap Visualizer.

But don’t depend on these apps entirely. One variable that can’t be accurately reflected in pictures is the light in the space you want to paint.

“The type of light you have in a room really determines how that color looks,” says Barr.

What a color looks like in one room may be different in another, and what looks just fine at one time of the day may look not so fine (in my case, green) at other times.

Try a paint swatch first

The only way to truly see how a paint will look on your walls, considering all these elements, is to actually put some on your walls, also known as swatching. Most brands sell small containers of their paints for this purpose, so you don’t have to buy an entire gallon just to test out a color.

Paint a swatch as large as possible, then observe it at various times throughout the day to see how it changes with the light. Painting various spots throughout the room and observing them in different types of weather is helpful, too.

If it leaves you less than enthused, then it’s time to try something new.

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One of the most exciting aspects of a kitchen remodel is choosing your fridge, stove, and other appliances. After all, this is where tech and style combine into sleek, sexy packages that can make even takeout veterans drool!

That’s why we’ll take you through choosing the appliances your new kitchen needs, and the questions that’ll help you figure out what’s right for you.

How much do kitchen appliances cost?

Before you get your heart set on that dishwasher that cleans 16 place settings at once, confirm how much cash you have in play.

“A full kitchen package can run anywhere from $2,000 to upward of $50,000, so the style and brand of appliance depends on your budget,” says Ben Pugliares, manager of major appliances for Wayfair. “Generally, you should expect to allocate between 15% and 25% of your total kitchen renovation budget on appliances.”

Are built-in kitchen appliances best?

If you want your appliances to fit seamlessly behind kitchen cabinets or walls, you’ll want to consider built-ins. In addition to a sleeker look, built-ins also often sport more finely honed systems, such as digital controls, multiple lighting systems, and better drawer and shelf components.

The downside of built-ins is the higher cost—and because they’re custom-built to fit a certain space, odds are you’ll need to leave these pricey appliances behind whenever you decide to move.

Traditional free-standing appliances are the more affordable choice, and installation is a cinch—just slide them into their space, plug them in, and you’re good to go. But if you like the idea of built-ins but can’t afford them, consider a compromise: Buy free-standing large appliances and get smaller countertop appliances (e.g., coffee maker and microwave) built in instead.

Should you get stainless steel?

Stainless-steel appliances are all the rage these days, not only due to their modern look, but also because the material is strong and durable, resisting scratches, water damage, and rust for years. They also increase your home’s resale value. The downside is the cost.

“The cost of stainless steel as a raw material is more than the steel plate used in white and black fridges,” explains Carib Daniel Martin, a residential architect near Washington, DC. Count on spending about twice as much for stainless steel.

Black stainless steel has been a growing trend for the past few years, but now, “white appliances are making a big comeback, but not your parents’ dull, textured white appliances—bright, painted steel appliances with stainless accents,” says Pugliares.

You could also order appliances in matte black or white, then customize your handles and knobs in brushed bronze, copper, or black stainless steel. But before you shell out the bucks, ask yourself: Are you going to appreciate a high-end appliance or not pay it much attention?

Once you’re clear on that, you’re ready to start shopping.

Refrigerator

The first appliance you choose should be the fridge.

“We can all guarantee that those doors are opened way more than any type of oven,” says Ana Cummings, designer and founder of Ana Interiors.

Figure out the size of fridge you need. You’ll need to know the height, depth, and width of the allotted physical space in your kitchen to ensure a unit will fit. You’ll also need to do some math to ensure the model you choose can handle the perishables you store inside it. In a perfect world, a family of four needs a fridge of at least 20 cubic feet.

Aside from size, consider the style and layout. For example, side-by-side doors require less swing space to open, but you can’t wedge wide loads like a pizza in the fridge easily. Here’s more to help you decide which type of refrigerator is right for you.

Trend alert: “We’re seeing black interiors instead of the typical white,” Cummings says. “Black allows the products inside the fridge to pop out at you, so no more opening the fridge door and not finding what you were looking for.”

Stove

Gas, induction, electric? Figuring out the type of range you need will help you narrow down your options. For instance, an electric range is best for small budgets, gas is great for foodies who crave temperature control, and induction offers the fastest, most energy-efficient option on the market. Here’s more on the pros and cons of gas, electric, and induction stoves and more to help you pick.

Furthermore, “ranges are starting to come in a rainbow of colors because they’re often the focal point of the kitchen,” says Cummings. Smart technology’s also on the menu. For instance, Cummings adds, “some ovens come with apps for your phone so you can start the preheat on your drive home. They can also be preprogrammed to bake your favorite recipes and meals just the way you like them.”

Microwave

Until someone else comes up with a better strategy for reheating leftovers, microwaves aren’t going anywhere. But at least now, you have control over where you want yours to live—on the counter? Over your range? Tucked inside a cabinet?

Plus, a combo convection oven/microwave allows you to brown and crisp—two cooking methods that traditional microwaves tend to botch spectacularly.

Dishwasher

“A dishwasher will be located as close to your sink as possible to streamline plumbing, so this decision will have the least impact on your design decisions,” says Pugliares.

In other words, make it the last appliance you choose.

When comparing models, consider the noise each model makes, the ease of loading dishes and, of course, how well it cleans.

“It’s also worthy to note if there’s an emergency shut-off, in case it senses a flood or malfunction,” says Cummings. “I’ve known too many people whose floors have been ruined due to a leaky appliance.”

More advice on kitchen appliances

If you’re really into the latest kitchen tech, you might want to install some other favorites, too: Steamers are all the rage, as are built-in coffee and beverage centers and refrigerators that serve a specific purpose, like keeping your wine chilled.

Another tip? Not everything has to match. Many dishwashers, range hoods, and over-the-range microwaves today come without the brand plastered on the front. That said, if you buy all your appliances from one brand and series, you’re likely to get matching handles for a more consistent look—and maybe even a discount for buying them as a package deal.

For this and related articles, visit Realtor.com

If you’re thinking of buying a home in today’s market, you need to be prepared for the possibility of an appraisal gap.

So what is an appraisal gap?

An appraisal gap is when a home’s appraised value is lower than the purchase price the buyer has offered to pay. Appraisal gaps are becoming increasingly common in competitive markets like what buyers are facing today—and they can seriously complicate matters if you aren’t prepared.

“Today’s gaps are the result of market conditions,” explains Will Hedrick, the CEO of Speek Real Estate in Charlotte, NC. “Because buyers are faced with a low supply, the market has become very competitive, driving up prices.”

This can easily cause appraisal gaps to occur—sometimes wide ones amounting to tens of thousands of dollars.

Read on to learn what an appraisal gap is, how it could affect your transaction, and four ways to resolve this scenario.

What is an appraisal gap?

In real estate, an appraisal gap might occur when an appraiser estimates the value of the house to be lower than the offer price that has been agreed to by the homebuyer and seller. For example, if a buyer agrees to purchase a home for $400,000 but the property appraises for $375,000, there is a $25,000 appraisal gap that will need to be dealt with in the transaction.

This is a problem because lenders will typically cover a loan for only the appraised value of a home—so if that appraisal is lower than what the buyer has offered, the buyer is stuck covering the difference.

Lenders use a loan-to-value (LTV) ratio to determine how much money they can put out for a loan. This LTV ratio is a percentage of the home’s value. Most conventional lenders like banks prefer an LTV ratio of 80% (or lower), which means that buyers need to make a 20% down payment.

Yet when an appraisal comes in low, the total amount that lenders let buyers borrow changes.

Let’s say, for instance, that the buyer has agreed to pay the seller $400,000 for a house and is willing to make a 20% down payment amounting to $80,000. This leaves the lender with an LTV ratio of 80%. That’s all fine and good.

However, if the appraised value comes in lower, at $375,000, the bank will be willing to loan the buyer only 80% of that, or $300,000. Yet given the buyer has agreed to pay the seller $400,000, this would mean the buyer will need a total of $100,000 to cover the difference. In addition to the 80,000 down payment, the buyer will need to find an additional $20,000 to close the deal.

Best practices for handling an appraisal gap

As you can imagine, most buyers aren’t thrilled at the prospect of having to come up with thousands of extra dollars by the time they sit down at the settlement table. After all, not everyone has the cash on hand to cover a large unforeseen expense. Fortunately, we’ve collected some best practices to help you navigate an appraisal gap if one comes up in your transaction.

Include an appraisal gap clause in your offer

First, including an appraisal gap clause in your offer is a way to tackle this situation head-on. Using this clause, you can spell out for the seller what you are willing to do if an appraisal gap occurs. For example, you could agree to pay the full amount of the difference or to put a set amount of money toward the gap.

In short, including this clause in your offer can help you limit your exposure. Still, at the same time, since you’re willing to put extra money out for the home, it will also help give the seller a better sense of your motivation.

Request an appeal of the appraisal

When you request an appeal of an appraisal, you’re essentially asking for the appraisal to be redone by another neutral third party. The hope is that the new appraiser will think the property is worth more than the figure in the original appraisal. If so, you might be able to close the appraisal gap.

However, there is no guarantee that the new appraisal will be any different. If you decide to go this route, ask your real estate agent to provide comparables that support your proposed purchase price. That way, you’ll be able to provide evidence that supports your offer.

Renegotiate with the home seller

If there’s an appraisal contingency in your offer and your appraisal comes back low, you’ll have the option to renegotiate the purchase price with the seller. That said, again, there is no guarantee that the seller will be willing to accept a lower price. Especially in a competitive market, there is very little incentive for the seller to do so.

Walk away from the home

Last but not least, if you have an appraisal contingency, you are also within your rights to walk away from the home. While it might not be the ideal outcome, if you don’t have the cash to cover the appraisal gap and the seller is unwilling to budge on the price, it might be your only viable option.

For this and related articles, visit Realtor.com