Tyler, The Creator, a name synonymous with innovation, creativity, and sheer talent, has not only made waves with his groundbreaking tracks but also through his impressive forays into fashion and entrepreneurship.
With two Grammy Awards under his belt and a net worth that’s the envy of many, it’s only fitting that Tyler’s living situation mirrors his larger-than-life persona.
Set in the lush, exclusive neighborhood of Bel Air, California, Tyler, The Creator’s house is a sprawling mansion that screams luxury and showcases Tyler’s unique sense of style. And it’s a significant upgrade from the rapper’s previous abode — set nearby.
That’s right, the hip-hop heavyweight, who’s also a founding member of the rap collective Odd Future is now a real-life Prince of Bel Air (and the spot was right open, as the OG Fresh Prince, Will Smith, lives in Calabasas).
He recently traded a $7 million, one-story residence originally built in 1965 for a distinctly modern, three-story home (with an endless list of amenities) also located in Bel Air. And, just in case you were wondering where Tyler, The Creator lives nowadays, we’re here to give you a closer look at his home upgrade.
The house at a glance
Fresh off the heels of his launch of a deluxe re-release of his Grammy Award-winning album, Call Me If You Get Lost: The Estate Sale, Tyler — by his real name, Tyler Gregory Okonma — splurged on a $13 million mansion in the ritzy Bel Air neighborhood.
Tucked away on a woodsy parcel sitting on almost an acre of land, Tyler paid $2 million less than the asking price for his newly renovated (or rather, rebuilt) property.
The house had been listed for sale in November 2022 for $15,000,000 and Tyler purchased it three months later, with public records showing that the sale went through right before Valentine’s Day on February 14, 2023, giving himself a grand self-gift that rivals the best box of chocolates.
And the property isn’t just your regular house; it’s a 5,000-square-foot modern marvel sitting on nearly an acre of prime Bel Air land.
With 4 bedrooms, 6 bathrooms, and an open floor plan that seamlessly merges indoor and outdoor living, the property is a dream come true for anyone with a penchant for the finer things in life. Swipe through the photos to see inside Tyler’s house:
Completely rebuilt one year before Tyler purchased it, the three-level house replaced another three-story structure built in the early 1970s, meaning the WusYaName singer is basically living in a newly built home.
Designed with an eye for contemporary elegance and a nod to rustic charm, the mansion boasts breathtaking views of the city and ocean, making every moment in this house an experience in itself.
From the custom Brazilian wood floors with a white oak finish to the steel case windows that frame the stunning vistas outside, every detail in Tyler’s home has been curated to offer not just comfort but a statement of luxury.
The inclusion of a step-up cigar lounge and a formal living room adds layers of sophistication, making the house not just a living space but a venue for artistic inspiration and high-end entertainment.
Standout amenities for the modern music mogul
But what sets Tyler, The Creator’s Bel Air mansion apart are the amenities that cater to every conceivable luxury.
Let the property’s former real estate agent, Ben Bacal — who held the listing alongside his colleague Rachael Williams from Revel Real Estate — give you the gist of things in this quick video tour posted on his Instagram profile when the house was first listed:
The saltwater swimming pool is a centerpiece of the outdoor area, perfect for those sunny California days.
For movie enthusiasts and cinephiles, the state-of-the-art movie theater offers an immersive experience without ever needing to step outside.
Health and wellness are also a priority, with a dry sauna available for a detoxifying session after a long day. The expansive wood deck, complete with a fire pit, full bar, and gas grill, ensures that entertaining guests is always a breeze, providing a perfect blend of ambiance and amenities for any gathering.
In a world where privacy is a luxury, this property, hidden behind private gates and surrounded by a tranquil woodsy setting, offers a serene escape from the hustle and bustle, giving the Grammy Award-winning rapper the much-needed privacy he deserves.
Yet, it’s the home’s tech-driven features, from the sophisticated smart home controls to the luxury of an 8-car parking space, that underscore Tyler’s penchant for the cutting edge.
The other Bel Air home Tyler sold
Tyler, The Creator’s decision to snap up another Bel Air mansion doesn’t come as much of a surprise, as the Igor rapper has long been calling the upscale Los Angeles neighborhood home.
Prior to his $13 million manse purchase, Tyler owned another Bel-Air abode, a lovely mid-century home with contemporary interiors — which he listed for sale in late 2022 for $7 million.
Tyler, the Creator Lists Bel Air Contemporary at a Loss https://t.co/qZL7wmKGCH pic.twitter.com/BDHybb9qR9
— Maniaci Real Estate Group (@ManiaciREGroup) December 17, 2022
The single-story home was built in 1965, but heavily updated sometime in the 1950s.
Sporting 4 bedrooms, 4.5 baths, a large living room with a fireplace, a huge primary bedroom with two walk-in closets, and a home theatre, the house clearly wasn’t a good fit for the Call Me If You Get Lost rapper.
Less than a year after purchasing it, Tyler listed that property at a loss (he paid $7.9 million for it just 12 months prior).
Hopefully, he’s now found the right fit with his new $13 million Bel Air abode.
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A judgment is an order issued by a judge or jury to settle a lawsuit. This decision details the rights, responsibilities, and obligations of each party. For example, if you fail to pay a debt, the lender can take you to court. In this case, the judge may order you to pay the other party as part of the court’s final judgment.
The order can be issued in one of two forms:
A monetary judgment: A judgment that orders one party to pay the other party a specific amount of money.
A nonmonetary judgment: A judgment that involves a nonmonetary type of resolution, such as the exchange of property or services. For example, a contractor may be ordered to complete a service for a client.
There are several classifications for judgments, including:
In personam: This is the most common civil judgment classification. It occurs when one party is liable to another.
In rem: Rather than involving personal liability, in rem judgments hold liability over a specific item, such as property.
Quasi in rem: Quasi in rem judgments consider the legal rights of individuals and not necessarily all parties involved.
Ultimately, if you don’t pay a debt, the lender or bill collector can file a lawsuit against you to recoup the money. The judge or jury determines if and how much money you owe. These terms are laid out in the final judgment.
What Is a Judgment on Property?
Your property includes both physical items and money. That means judgment creditors can seek debt payment from more than your wages and bank accounts. They may also take back a car you financed or other personal property. Another option is placing a lien on some of your property, such as your home.
What Property Can Be Taken to Settle a Judgment?
Creditors must follow the law when applying a judgment to take, or seize, your property. Some things are exempt—which means they can’t touch those items or properties. Some examples include the home you live in, the furnishings inside it, and your clothes. State laws identify these items and set limits based on their value.
Non-exempt property can be taken to help meet a judgment debt. Your creditor can take or leverage these possessions in the following ways:
Wage attachments. This is known as wage garnishment. When your employer receives the proper legal notice, they must withhold a percentage of your wages. These payments are sent to the judgment creditor until your debt is paid. The Consumer Credit Protection Act caps these types of garnishments. The limit is 25% of your disposable weekly wages or the amount you earn that’s above 30 times the minimum wage. The lessor of these two amounts applies. Some states set the cap even lower.
Nonwage garnishment. If you’re retired, unemployed, or self-employed, your bank account may be garnished instead. Here, too, there are exemptions. Veterans payments, social security, and disability benefits are not eligible for nonwage garnishment. Some states add even more restrictions to the garnishment of bank funds.
Property liens. If you own real estate, your judgment creditor may file a legal claim against it. These liens notify lenders of the creditor’s rights to your property. That way, if you sell your real property, the debt must be paid out of the proceeds. In many states, liens are placed automatically when a judgment is entered.
Property levies. Judgments may also allow some of your non-exempt personal property to be taken through a levy. Law enforcement may seize things like valuable collections or jewelry to be sold at auction. Sales proceeds are applied to your debt.
What Are the Types of Judgments?
Judgments come in many forms. Below is a look at the five types of judgments.
Satisfied judgment: A satisfied judgment means the debt is settled. This doesn’t necessarily mean you have paid the debt in full. It could mean there’s a new payment arrangement and you’re making regular payments.
Unsatisfied Judgment: An unsatisfied judgment means the debt is not settled yet. You’re expected to follow the court order and make payments on the outstanding debt. Until you make your final payment or come to another agreement with the other party, it will remain an unsatisfied judgment.
Vacated Judgment: If you don’t agree with the court’s initial judgment, you have the right to appeal that decision. If the judge decides to dismiss the case, the initial order becomes a vacated judgment.
Summary Judgment: If both parties agree to the basic facts of the case, either party may request to skip the trial and go straight to a summary judgment. The judge issues this final judgment without going through the process of holding a trial.
Renewed Judgment: Some states allow creditors to seek a new judgment for specific reasons. If this happens, the judge may issue a renewed judgment. This judgment may void the initial judgment or serve as an additional order.
Three Ways of Getting a Judgment
There are several ways a civil judgment can be determined.
1. Judgment After Trial
As the name suggests, a judgment after trial is a decision that occurs only after a trial. Once the judge or jury hears all the evidence and makes a final decision, the judge issues a formal judgment in the case.
2. Consent Judgment
A consent judgment occurs when both parties negotiate a final settlement. The judge must approve this final agreement, which is done by issuing a formal consent judgment.
3. Default Judgment
A default judgment occurs when the defendant fails to respond to a summons and complaint. In this case, the judge issues a default judgment in favor of the plaintiff without hearing any evidence from the defendant.
Can Judgments Affect Your Credit?
Judgments can’t directly impact your credit because the details of these orders aren’t part of your credit report. However, it’s likely that issues leading up to the final judgment could affect your credit. For example, your payment history can remain on your credit report for up to seven years. If you have any missing or late payments that led to the judgment, this history can impact your credit score.
A judgment could also have a positive effect on your credit. For example, once the debt is paid, the account balance should change to zero on your credit report. This could help lower the amount of debt you owe, which could impact your credit utilization rate.
Once the judge issues a judgment, you can use Credit.com’s Free Credit Score service to see if it had any effect on your score. As you work to rebuild your credit, you can enroll in Credit.com’s ExtraCredit® program to monitor your credit score over time.
What Is a Judgment on a Credit Report?
Judgments aren’t reported on your credit report and don’t directly impact your credit score. However, judgments are public records, so lenders could still have access to this information. This could affect your ability to secure credit in the future.
What Happens After a Judgment Is Entered Against You?
Once the judge enters a judgment, both parties must abide by the order. For example, you must pay the amount of money ordered by the judge, and the creditor must mark the account paid in full once payment is made. If you can’t pay the amount all at once, you may be able to set up a payment arrangement. You’re legally obligated to make these payments.
What Happens After a Judgment Is Entered Against You?
The court enters a judgment against you if your creditor wins their claim or you fail to show up to court. You should receive a notice of the judgment entry in the mail. The judgment creditor can then use that court judgment to try to collect money from you. Common methods include wage garnishment, property attachments, and property liens.
State laws determine how much money and what types of property a judgment creditor can collect from you. These laws vary. So, you need to look to your own state for the rules that apply. A consumer law attorney can help you understand your state’s laws on judgment collections.
What Is the Difference Between a Civil Judgment and a Criminal Judgment?
There’s a major difference between civil court and criminal court.
A civil court typically involves disputes between two parties. For instance, it could involve a case between two individuals, two organizations, or one organization and one individual. These cases often pertain to a breach of contract, an unsettled debt or a lack of services.
Unless both parties agree to the facts of the case, the judge gives each party the opportunity to present evidence. For example, if a debt collector takes you to civil court for an unpaid bill, you can provide evidence of any payments you made. After hearing the evidence, the judge issues a final judgment, known as a civil judgment.
On the other hand, criminal court involves someone accused of breaking the law. The federal, state, or local government charges the accused party. If, after holding a trial, the defendant is found guilty or the defendant pleads guilty prior to the trial, the judge issues a criminal judgment. A sentence is issued later, which could include jail time or some other form of punishment.
What Can You Do to Avoid a Judgment?
Heading off a lawsuit is the best way to avoid a judgment. To do so, don’t ignore calls and correspondence from your creditor. Reach out to learn if they’ll accept suitable payment arrangements. Educate yourself on smart ways to pay debt collectors, and consider using the services of a debt management agency.
What if the loan company or debt collector has already started the lawsuit? Don’t skip court. Show up and fight. You may win if the statute of limitations has expired.
If you haven’t made a payment on an old debt for many years, you may have a successful legal defense. Most states set the time frame between four to six years. Collectors often still file suit because they win by default if you don’t show up. So, it’s important that you go to court with proof of your last date of payment.
If you successfully defeat or avoid a judgment, don’t stop there. Take some sensible steps to help you get out of and stay out of debt. Adopting these smart financial habits can also help prevent future judgment actions.
Additional FAQs about Judgments
How Long Can the Judgment Creditor Pursue Payment?
The answer depends on where you live, since state laws differ. Some states limit collection efforts to five to seven years. Others allow creditors to pursue repayment for more than 20 years. With the right to renew a judgment over and over in many states, it may last indefinitely.
Judgment renewals may be repeated as often as desired or limited to two or three times. This is another state-specific issue. Judgments can also lapse or become dormant. The creditor must then act within a specific time frame to revive it.
What Happens When You Can’t Pay a Judgment Filed Against You?
If you own a limited amount of property, it may all be exempt from judgment collection efforts. Also, you may not work or only work part-time. With the CCPA cap, that may mean you don’t earn enough for garnishment.
This inability to pay your debt is called being judgment proof, collection proof, or execution proof. While these circumstances exist, the judgment creditor has no legal way to collect on the debt. It’s not a permanent solution. The creditor may revisit collection efforts periodically for many years.
For a more permanent solution, you may want to consider filing bankruptcy. This process can discharge or eliminate most civil judgments for unpaid debt. Exceptions apply for things like child support, spousal support, student loans, and some property liens. Speak with a bankruptcy lawyer to learn whether this will help your situation.
Can You Settle a Judgment?
If you can afford to pay a decent lump sum, you may be able to negotiate a settlement. The judgment creditor may be willing to settle if they fear you will otherwise file bankruptcy. Get the terms and settlement amount you agree upon in writing. Be sure the creditor agrees to file a satisfaction of judgment with the court after they receive your pay off.
Can a Judgment Be Challenged or Reversed?
Challenging and overturning a judgment is difficult but not always impossible. This is the case if there were errors. Perhaps you weren’t notified of the suit or it was never your debt to begin with. Consult with an attorney to find out whether you have grounds to challenge the decision.
If you want to challenge a judgment, act fast. If you received prior notice of the case, you may have up to six months to reopen it. If you weren’t notified, you likely have up to two years to appeal. By reopening the case, you have the opportunity to fight the claim anew.
Do Credit Reports Still Include Judgments?
For many years, credit reports included judgment information. But that changed in 2017. The National Consumer Assistance Plan is responsible for creating more accurate credit data requirements. These changes resulted in the removal of civil debt judgments from credit reports.
Judgments are still a matter of public record. But the NCAP now requires that there be identifying information on these records for more accuracy. That data includes a social security number or date of birth along with the consumer’s name and address.
Public records cannot include this type of identifying information. It would violate privacy laws. This is the reason these judgments are no longer reported on credit files.
How Do You Find Out if You Have Any Judgments Against You?
You should receive a summons when you’re being sued. So, you can expect a default judgment will follow if you don’t show up in court. You can also expect a notification when a judgment is entered against you.
Mistakes happen, though. You may have missed the notice or moved to a new address. If that happens, you may not learn of the judgment until collection actions start.
What if You Find a Judgment on Your Credit Report?
Take action if you learn that judgments are still being reported by Equifax, Experian, or Trans Union. The NCAP eliminated this practice, so if there’s a judgment on your report, this is definitely something that you should dispute. Credit repair services, like Lexington Law Firm*, can help you challenge the errors on your behalf with the credit bureaus and request that they correct your report.
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Disclosure: Credit.com and CreditRepair.com are both owned by the same company, Progrexion Holdings Inc. John C Heath, Attorney at Law, PC, d/b/a Lexington Law Firm is an independent law firm that uses Progrexion as a provider of business and administrative services.
Southern California’s real estate market is as cold as the snow currently adorning the peaks of its mountains. Interest rates are up. Inventory is down. And deals are few and far between.
In slow markets, the agents at the top — those with experience, connections and plenty of clients — typically maintain a modest but steady stream of business. It’s the agents at the bottom — those just getting into the industry who’ve only managed to close a handful of sales — who starve.
As those agents have grown more desperate for leads, they’re trying alternative ways of finding them. Some are outsourcing the work overseas, and others are turning to AI or automation in a last-ditch attempt to find a seller.
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During the record-breaking pandemic market, there were so many transactions that most determined real estate agents were able to make a living. More than 43,000 single-family homes traded hands in L.A. County in 2021, and more than 42,000 were sold in 2022, according to the Multiple Listing Service.
During that time, tens of thousands joined the National Assn. of Realtors, or NAR, with membership swelling to a record 1.6 million in 2022, up 200,000 since 2020. Real estate wasn’t just a solid job; it was a way to leap into a higher tax bracket.
But then the market started to freeze in 2023 as mortgage rates shot up. Only 11,539 single-family homes sold that year, and sales are at a similar pace so far this year.
Some agents are simply calling it quits. In California alone, NAR lost 9,723 members from December 2023 to January 2024 — a 4.75% decline . But even after the drop, California still holds the second-most active Realtors in the nation at 194,964, and they’re all fighting for an extremely small pool of sellers.
At the peak of the pandemic market, Tyler Andrews, 29, tried his hand at real estate in the Inland Empire, thinking he would use his outgoing personality to sell homes as L.A. residents flocked to the area during the pandemic. He got his license and helped a few friends with their house hunts, but ultimately didn’t earn any commission and stopped in 2023.
He’s one of many agents who rushed into real estate hoping for a taste of California’s latest gold rush.
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From the outside, listing a house in a hot market seems like the easiest of get-rich-quick schemes. Homes sell in days, and a 3% agent’s commission on a $1-million sale comes out to $30,000. If you represent both sides of the deal, it turns into $60,000.
But the real estate industry isn’t an easy one to break into. You typically get paid only if you close a sale, and in any market, most homeowners still prefer to go with an agent with experience.
In a hot market, sellers find an agent. In a cold market, agents have to find a seller. The situation is coming to a boil in many areas, such as Leimert Park, where residents have been barraged by agents asking whether they’re interested in putting their homes up for sale.
Cold calling is time consuming — and stressful, considering the ire it draws from those on the receiving end. So some agents are handing that thankless task to machines.
A handful of companies such as Slybroadcast and Salesmsg offer “ringless voicemail,” a robocall-adjacent tool enabling agents to send pre-recorded messages straight to your voicemail box without your phone ever ringing. The messages are often meant to trick you into thinking you missed a call, saying things like, “Sorry I missed you! Give me a call back whenever you get a chance.”
In 2022, the Federal Communications Commission declared the trend a form of robocalling and said it’s illegal if the caller doesn’t have the recipient’s prior consent. But that hasn’t stopped agents from sending out such voicemails to potential clients.
“I don’t have time to cold call all day,” said one real estate agent who asked to remain anonymous due to the potential taboo of using the technology. “I have to find clients somehow, and in a market like this, you have to get creative.”
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The thinking is this: An agent could spend eight hours a day calling every home in a neighborhood to ask whether they want to sell their home. Or they could send out 500 ringless voicemails simultaneously, and those who bother to call back have a better chance of needing the services of a real estate agent.
Andrews said he had heard of other agents trying such technology as the market got colder in 2023, but he never bothered doing it himself because it didn’t seem authentic. It also would’ve been an extra expense — one he didn’t have a budget for.
Mary Thompson has owned her home in Beverly Crest for more than a decade. Over the last year, she’s received multiple ringless voicemails asking whether she wants to list or buy a house.
“I was fooled by the first one. I called back and ended up on the phone with an agent for 15 minutes asking about my plans as a homeowner,” she said. “I don’t bother calling back anymore.”
U.S. consumers received more than 55 billion robocalls in 2023, 5 billion more than the previous year, according to the YouMail Robocall Index. Roughly 15 billion were telemarketing calls, and 8 billion were scams. California consistently ranks as the state with the second-most robocalls, behind only Texas.
As a response to thousands of unwanted call complaints, the FCC has established a Robocall Response Team to combat the influx of robocalls, many of which are targeted toward homeowners.
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Last year, the commission shut down a robocalling campaign from MV Realty, a real estate brokerage that was sending out robocalls with misleading claims about mortgages. A whistleblower from the company told a Seattle news outlet that employees were directed how to use software called PhoneBurner and required to make at least 450 calls per day.
Other companies such as VoiceSpin give agents access to auto-dialing software, which, like it sounds, automatically dials numbers from a list. VoiceSpin claims to use AI and machine learning and enables agents to drop voicemails straight into inboxes, record calls or even use local area codes so you’re more likely to pick up.
In that case, you’d be talking to an agent, but sometimes you might find yourself unwittingly conversing with a robot.
The tech company Ylopo recently uploaded a video showcasing an AI assistant conversing with a potential home buyer planning a move to the North or South Carolina coast. The company said it’s “one of thousands of AI calls being made daily already for Ylopo clients.”
Cinc, a real estate lead generation platform, offers agents an AI-powered digital assistant that purposefully misspells words and uses emojis to make interactions with potential leads appear more human.
The NAR itself offers an AI scriptwriter powered by ChatGPT that analyzes housing trends so that agents can appear more knowledgeable about the market. Agents can even choose the tone: professional, engaging or conversational.
Earlier this month, the FCC continued its fight against robocalling by outlawing robocalls that use AI-generated voices. Since the ruling is so fresh, it’s unclear how companies utilizing the technology will be affected.
In a market as slow as this one, even finding numbers to call becomes a challenge; tech becomes useless if it’s being wasted on the wrong potential clients. So many agents are looking for leads.
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On Fiverr, an online marketplace for freelance services, a glut of listings has popped up offering agents potential leads on prospective buyers or sellers. One of the most prolific is Abhishek Rai, who has racked up more than 3,000 five-star reviews offering leads on motivated sellers, vacant properties or absentee owners since joining the platform in April 2020.
Rai, who’s based in India and uses the handle @virtualguy2020, typically charges $10 for 100 leads, $50 for 650 and $100 for 1,500.
“Real estate agents have demanding schedules, and outsourcing lead generation tasks allows them to focus on other aspects of their business, such as client meetings, property showings, and negotiations,” he said.
Rai has clients across the U.S., including many in Southern California. He added that generating leads is a specialized skill and not every agent has the expertise to find them on their own.
For his leads, he combs through public records, online databases and real estate sources such as property records, tax records and foreclosure listings.
To be clear, the vast majority of agents in Southern California still conduct business the old-fashioned way. But the ones trying new things are often doing so in order to make a living.
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In 2022, Realtors with 16 or more years of experience made a median gross income of $80,700, according to the NAR. But those with two years or less experience made just $9,600.
According to a report from business networking platform Alignable, 31% of real estate firms struggled to pay rent for their office in January.
AI’s subtle invasion of the real estate industry doesn’t necessarily come as a surprise because the technology has pervaded nearly every profession over the last few years. But for an industry that has long relied on human connection — handshakes, open houses, fresh flowers and other personal touches — AI’s cold, sterile seep into housing has become unnerving for some.
“When I do need a real estate agent, I need one that I can connect with,” Thompson said. “I don’t want anything to do with their AI assistant.”
Enough space. It’s something we all want in a home, but it can easily end up just outside our budget. Fortunately, if you’re feeling a little crowded in your own residence, living in a city with plenty of room can make all the difference.
The largest cities in the U.S. by area
The bigger the city, the more space there is for activities, attractions and places to eat, shop and drink. To that point, here are the largest cities in the U.S. by area. They’ll give you plenty of room, to stretch out and find adventure, when being at home feels a bit too cramped.
Land area is determined by public records from the U.S. Census Bureau.
Population numbers are based on the U.S. Census 2019 population estimates.
Rent prices are based on a rolling weighted average from Apartment Guide and Rent.’s multifamily rental property inventory. We pulled our data in January 2021, and it goes back for one year. Our team uses a weighted average formula that more accurately represents price availability for each individual unit type and reduces the influence of seasonality on rent prices in specific markets.
The rent information included in this article is used for illustrative purposes only. The data contained herein do not constitute financial advice or a pricing guarantee for any apartment.
Lesly Gregory has over 15 years of marketing experience, ranging from community management to blogging to creating marketing collateral for a variety of industries. A graduate of Boston University, Lesly holds a B.S. in Journalism. She currently lives in Atlanta with her husband, two young children, three cats and assorted fish.
Burrell countersued earlier this month, arguing that he shouldn’t have to pay the bank back since it knew he was using the business credit for personal expenses.
The bank has asked an Aspen judge to let it foreclose on six of Burrell’s properties as collateral.
Public records show that the businessman owns two homes in Basalt, Colo. and a 190-acre ranch in New Mexico, valued at $21.1 million, which is currently up for auction.
However, per a report on luxury real estate listings site Mansion Global, only one of Burrell’s five children are still living at home, so Burrell and his wife, Nikola, have decided to downsize.
First Western reportedly wants to foreclose on Burrell’s home in Aspen and ranch near the affluent ski town, as well as a property in Nantucket and land in Vero Beach, Fla., according to The Denver Post.
In his countersuit, Burrell argued that if First Western forecloses on his properties, “Burrell, Burrell’s wife, and Burrell’s minor children are at risk of losing their primary residence and have incurred emotional distress,” according to the countersuit, The Denver Post reported.
In a bizarre twist, Burrell also argued that it was “improper” for the bank to give him business loans when it was well aware most of the funds would be spent on his personal life — such as his divorce payments, buying a yacht and building a house in Basalt, Colo.
“Additionally, First Western did not make a reasonable and good faith determination at or before consummation that Burrell had a reasonable ability to repay,” his countersuit states, per The Denver Post.
The bank also didn’t allow him to refinance, didn’t consistently provide him with paperwork for the loans and wrongly accepted his personal homes as collateral, Burrell alleged, the outlet reported.
Burrell’s counsel, attorneys Sarah Auchterlonie and Courtney Bartkus in the Denver office of Brownstein Hyatt Farber Schreck did not immediately respond to The Post’s request for comment.
The Post has also sought comment from First Western Bank.
First Western’s CEO Scott Wylie referred to “a client we’ve had since 2018” who is “facing a liquidity crunch and becoming delinquent on their payments,” during an earnings call in October.
He noted that the bank had to declare the loans in default in order to seek the collateral, but assured: “We think we’re going to have a full recovery.
The real estate collateral that we have is in some very desirable markets. It’s in Aspen, it’s in Nantucket, it’s in (Florida),” he said.
Though Wylie didn’t name the borrower, Burrell argued that analysts listening to the call were able to figure it out, according to The Denver Post.
Burrell said that one listener even called him to ask about his personal finances.
This has caused Burrell and his investment company “reputational harm and public disgrace,” he argued.
Last month, Burrell and his second wife opened an auction for an 8,400-square-foot estate located on Aspen’s Red Mountain — the Burrell family’s “primary home,” according to Mansion Global — and a nearby, 4,200-acre ranch in Carbondale as part of an $86.5 million package.
Two of his children from his first marriage with Australian jewelry magnate Katherine Jetter are in college, while his third child with Jetter is set to head off to college next year.
Burrell also has two kids with Nikola — one of which is at a boarding school in Boston, leaving just one at home, according to Mansion Global.
Sotheby’s Concierge Auctions led the bidding, and has since marked the ranch on its website as “sale pending,” while the Red Mountain home’s bid deadline has been extended to Feb. 15.
Burrell, the founder of investment firm The Burrell Group, claimed that First Western’s lawsuit violates federal lending laws as it interferes with the auction of his Red Mountain estate, a property valued at $38.5 million.
He is also seeking damages for what he claims was an invasion of privacy and public outing of his financial situation by First Western, The Denver Post reported.
Although you’re allowed to sell your own home, doing so is a lot of work. Before you move forward, take time to consider the pros and cons of handling things on your own.
If you’re thinking about putting your house on the market, you may be wondering whether you can sell your own home. Yes, you can, but don’t put up a For Sale sign just yet. Although you’re allowed to sell your own home, doing so is a lot of work. Before you move forward, take time to consider the pros and cons of handling things on your own.
Statistics on FSBO Homes
For sale by owner, better known as FSBO, tells buyers you’re not using a real estate agent or a broker. According to the National Association of REALTORS®, FSBO listings accounted for 10% of all home sales in 2021.
Nearly 30% of owners used word-of-mouth marketing via friends, family members, and neighbors to market their listings. Owners also used yard signs, third-party real estate aggregators, social networking sites, and other FSBO marketing methods to find buyers.
Why Sell Your Own Home?
Many people ask “Can I sell my own home?” because real estate agents receive a commission on every sale they make. The average commission is 6%, with the listing agent receiving slightly more than the buyer’s agent. If your home sells for $300,000, that’s $18,000 in commissions at the average rate.
Then, assuming the listing agent gets 3.5% and the buyer’s agent gets 2.5%, selling your own home would save you $10,500. You could use that money to buy new furniture, cover some of your closing costs, invest in the stock market, or take a vacation.
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Potential Pitfalls of Selling Your Own Home
If you decide to sell your own home, you’ll have to do all the work that a real estate agent would normally do. Some of the most important tasks include:
Setting a sale price
Preparing your home for walk-throughs and open houses
Advertising the property
Following all relevant real estate laws
Meeting with potential buyers and their agents
Learning how to do these things is time-consuming, and there’s also the risk you’ll make a serious mistake. For example, if you price your home based on emotions instead of market data, you may have trouble attracting potential buyers.
When you sell your own home, you also lose the opportunity to benefit from an agent’s extensive network of contacts. Experienced agents maintain relationships with plumbers, landscapers, home staging professionals, and other people who can help you get your home ready for the market. If you don’t have these relationships, you may have to wait weeks or even months before a home service provider can add you to their busy schedule.
One of the biggest potential drawbacks to selling your own home is that you may not get as much money as an agent would. The National Association of REALTORS reports that FSBO listings sold for an average of $225,000 in 2021. In contrast, agent-listed homes sold for an average of $330,000.
Tips for Selling Your Home Without an Agent
If you decide to sell your own home, follow these tips to maximize the sale price and reduce the amount of time it takes to find a buyer.
1. Choose the Right Sale Price
When setting a price for your home, you have to think strategically. If it’s priced too high, you’ll have trouble selling. If it’s priced too low, you’ll lose out on potential profit. The price has to be just right to attract a buyer without leaving money on the table. To find the right price, consider these factors.
Recent Sales
A comparative market analysis lists recent sales in your neighborhood, giving you valuable information about local prices. Normally, a real estate agent would provide a CMA report for you, but it’s possible to create your own. To get started, use public records or third-party listing websites to identify sold homes that are approximately the same size and age as your home.
Once you have the initial list, narrow it down by looking for homes that have features similar to yours. For example, if your home has four bedrooms and two bathrooms, you’ll want to include other four-bedroom homes in your analysis.
The market changes quickly, so limit your search to homes sold in the last three months. Once you have a workable list, note the sale price of each listing. If you’re not comfortable creating your own CMA report, consider getting a professional home appraisal.
Location
The location of your home has a big impact on the sale price. Many buyers are willing to pay a premium to move to an excellent school district or reduce the amount of time it takes to get to restaurants, salons, office buildings, and entertainment venues.
Location refers not just to what city you live in but also where your home is situated. If it’s near an airport or a busy street, you may not be able to get as much as you would if it was tucked away at the end of a quiet cul-de-sac.
Condition of the Home
The better your home’s condition, the more money you can get for it. Think top-of-the line appliances, fresh paint, and new flooring. If your home needs repairs or the appliances and flooring are a little outdated, you may have to set a lower price to attract potential buyers.
Market Conditions
Supply and demand have a big impact on home prices in your area. In a seller’s market, the demand for homes outpaces the supply, driving prices higher. Buyers may even get into bidding wars over the most desirable properties. In a buyer’s market, the supply of homes outweighs the demand, driving prices down.
2. Use Multiple Advertising Methods
It would be great if all you had to do was put your listing on social media, but it takes a little more work to sell a home. You may want to use the following marketing methods:
Newspaper advertisements
Social media posts
Yard signs
Third-party listing websites
Flyers at local businesses
Virtual home tours
3. Plan Your Open House Carefully
An open house gives potential buyers a chance to walk through your home and see if it looks just as good in person as it does in photos. Here are a few tips to help you plan a successful open house event:
Schedule it on a weekend: Many people work during the week, so holding an open house on a Wednesday at 11 a.m. isn’t the best way to attract eager buyers. If possible, schedule your open house for a Sunday afternoon.
Advertise: Yard signs are helpful, but you should use several advertising methods to make more people aware of your event. Try advertising on a third-party website or posting on social media
Clean thoroughly: You don’t want potential buyers focusing on dust bunnies, so give your home a thorough cleaning the day before your open house. Before people arrive, straighten your throw pillows, take out the garbage, and do some last-minute tidying.
Put away personal items: Potential buyers should be able to imagine themselves living in your home. They may have a tough time doing that if you have family photos and other mementos on display. To make your home more appealing, put away personal items before the open house begins.
Make arrangements for your pets: If possible, take your pets to a family member’s house before your event begins. Some buyers aren’t comfortable with animals, and you’ll have an easier time focusing if you don’t have to worry that one of your pets is going to escape.
4. Consult an Attorney
If you sell your home without an agent, you’re still responsible for following all relevant laws and regulations in your area. To ensure you don’t make a costly mistake, consult an attorney beforehand. A licensed attorney can advise you of your rights and educate you about the potential pitfalls involved in selling real estate.
It’s possible to sell your home without a real estate agent, but it takes a lot of time and effort. If you make a mistake, you can easily lose thousands of dollars in profit, making it critical to do in-depth research before you begin the process. You may also want to research other things before selling or buying a home, such as the state of your finances, your current credit health, or your loan options. Credit.com can help you work to understand these things better, so consider signing up for your free Credit Report Card today
Buying a home is an exciting milestone, but it comes with its fair share of financial responsibilities, including the often-misunderstood closing costs. These costs are a vital part of your home purchase budget and can significantly impact your financial planning as a new homeowner.
Far from being just a trivial detail, closing costs encompass a range of fees and charges that, when understood correctly, can help you make more informed decisions and potentially save money in your home-buying journey.
Here’s everything you need to know about mortgage closing costs to avoid any last-minute surprises.
Who Pays the Closing Costs: Buyer or Seller?
When it comes to closing costs in a home purchase, the question of who pays what is often a topic of negotiation and varies by transaction. Generally, both buyers and sellers have their own set of fees to handle, but the exact distribution can differ.
Your mortgage lender is required to provide you with an estimated breakdown at multiple points in the loan process. The loan estimate outlines the estimated closing costs and lists out all the different fees, as well as who is responsible for paying them.
Buyer’s Responsibility
Typically, the buyer shoulders a significant portion of the closing costs, which can include:
Loan-related fees (such as application and origination fees)
Appraisal and inspection fees
Initial escrow deposit for property taxes and mortgage insurance
Title insurance and search fees
Seller’s Contribution
Sellers commonly pay for:
Real estate agent commissions
Transfer taxes and recording fees
Any homeowner association transfer fees
Room for Negotiation
It’s important to note that these are not hard and fast rules. In many cases, closing costs are a point of negotiation in the sale agreement. For example, in a buyer’s market, a seller might agree to cover a larger portion of the closing costs to attract buyers. Conversely, in a seller’s market, the buyer might take on a larger share to make their offer more appealing.
Case Example
Imagine you’re buying a home priced at $300,000. The closing costs, amounting to approximately 3% of the purchase price, would be around $9,000. As a buyer, you might agree to pay $6,000 of this, covering most of the loan-related fees and escrow deposits. The seller, in turn, might handle the remaining $3,000, covering their portion of fees like the agent’s commission and transfer taxes.
Comprehensive List of Fees Associated with Mortgage Closing Costs
Mortgage closing costs can be broken down into a few different categories: lender fees, real estate fees, and mortgage insurance fees.
Lender Fees
These fees may vary depending on the lender you choose. Here’s a basic rundown of each closing cost to give you an idea of what you can expect.
Application fee: Covers processing your mortgage loan application and obtaining your credit report.
Attorney fee: In some states, an attorney must review the mortgage paperwork; fees vary and can be hourly or a flat rate.
Broker fee: If using a mortgage broker, they typically charge a commission, usually between 1% and 2% of the home’s purchase price.
Origination fee: The origination fee compensates the lender for administrative tasks and is typically around 1% of the loan amount.
Discount points: Paying points upfront can lower your interest rate; each point equals one percent of your loan amount.
Prepaid interest: Covers the interest that accrues between the closing date and the first mortgage payment.
Recording fee: Charged by local governments for recording the mortgage documents; it covers the administrative costs of maintaining public records.
Underwriting fee: Charged for the underwriter’s services in evaluating and preparing your loan; includes costs like due diligence and legal fees.
Real Estate Fees
Real estate fees are related to costs surrounding the property itself. Some are one-time fees, while others are recurring.
Appraisal fee: Necessary to assess the market value of the home. Costs vary, but typically around $500 to $600, payable before the appraisal or at closing.
Property tax: Generally an annual or biannual payment. Most lenders require at least two months’ worth pre-paid into an escrow account at closing.
Homeowners’ insurance policy: An annual premium required for a home loan. The first year’s premium is often paid at closing, with subsequent payments included in your mortgage.
Title search and insurance: Ensures the property is lien-free. Lender’s title insurance protects the lender, while owner’s title insurance safeguards the buyer.
Transfer tax: Imposed by governments when a property is sold, usually a percentage of the sale price.
HOA fees: For properties in a homeowners association, this may include a transfer fee and potentially the first year’s annual assessment.
Mortgage Insurance Fees
When you pay less than 20% of your home purchase price as part of your down payment, you’re usually required to pay mortgage insurance. Your private mortgage insurance (PMI) premium is typically assessed as a monthly fee within your mortgage payment. However, you may also have some costs at closing.
Upfront mortgage insurance fee: Depending on your loan type and lender, you may have to pay an additional application fee for a loan with mortgage insurance. Additionally, some loans require that you pay a one-time fee at the time of closing on top of your annual fee throughout the mortgage.
Government-backed loan fees: If your loan is from the FHA, USDA, or VA, then you may have extra mortgage insurance fees if your down payment is under 20%. FHA loans require an upfront mortgage insurance premium (MIP) of 1.75% and a monthly fee. The VA and USDA don’t charge mortgage insurance, but instead have guarantee fees. VA fees fall between 1.25% and 3.3% while USDA fees are a flat 2%.
Understanding How Closing Costs Are Calculated
That list may seem huge and overwhelming. However, before making an offer on a house, you can estimate your closing costs using some shortcuts. Average closing costs are usually about 2% – 6% of the loan amount.
Let’s look at that in real numbers.
Say you buy a home for $200,000. You can realistically expect your closing costs (not including your down payment) to extend anywhere between $4,000 and $10,000. That’s a pretty big range, so use that as a starting point when you begin to compare loan offers.
But don’t wait until you’ve fallen in love with a house to financially plan for closing costs.
Instead, use an online closing costs calculator early in the process to get a more specific estimate. You will want to use real information like average property taxes in your area and the costs associated with your type of loan.
A good mortgage lender can walk you through the variables, including how different loan types affect your closing costs.
Strategies for Reducing Closing Costs: Negotiation Tactics
Negotiating closing costs can be an effective way to reduce the financial burden of buying a home. While some fees are fixed, others offer room for negotiation. Here are strategies and insights to help you lower these costs:
Understand What Can Be Negotiated
Identify which fees are negotiable. These often include certain lender fees like the origination fee, broker fees, and some third-party charges. Knowing what can be adjusted is the first step in negotiation.
Compare and Shop Around
Before settling with one lender, shop around. Get Good Faith Estimates from multiple lenders and compare their closing costs. This can give you leverage in negotiations, as lenders are often willing to offer competitive pricing to win your business.
Ask the Seller to Contribute
In some real estate markets, it’s common for buyers to ask sellers to cover a portion of the closing costs. This is particularly feasible in buyer’s markets, where sellers are motivated to make the sale.
Look for Lender Credits
Some lenders offer credits in exchange for a slightly higher interest rate on your loan. These credits can be used to offset closing costs. While this increases your long-term interest cost, it can significantly reduce upfront expenses.
Negotiate with Service Providers
For services like home inspections and title searches, you have the option to choose your provider. Shop around and negotiate with these providers for better rates.
Review the Closing Disclosure Form
Before closing, you’ll receive a Closing Disclosure form listing all the fees. Review it carefully and question any fees that seem off or weren’t previously disclosed. Sometimes, errors can be corrected, leading to lower costs.
Time Your Closing
By scheduling your closing towards the end of the month, you can reduce the amount of prepaid interest you’ll need to pay.
Seek Legal or Financial Advice
Consider consulting with a real estate attorney or a financial advisor. They can provide valuable advice on which costs can be cut and how to negotiate effectively.
Options for Financing Your Closing Costs
In some cases, you can roll your closing costs into the mortgage, but you have to meet some basic requirements. First, it depends on your type of loan, since not all loans allow you to do this. Most government-backed loans, like FHA and USDA loans, do offer the possibility to add them into your home loan.
What’s the downside to this idea?
A higher loan amount means a higher monthly mortgage payment and a larger amount of interest paid over the life of your mortgage. Furthermore, your new home needs to appraise for the higher amount you want to finance. Plus, your debt-to-income ratio needs to be able to support that larger payment to qualify for such a loan.
If you’re getting a loan that doesn’t allow for closing costs to be rolled into the mortgage, you can still get around it. However, you must meet those criteria we just talked about.
Simply ask the seller (through your real estate agent) to pay for closing costs in exchange for paying the extra amount as part of the purchase price. Here’s an example.
If your $200,000 offer is accepted, but closing costs are $5,000, ask the seller to contribute $5,000 and change your offer to $205,000. At the end of the day, the seller still walks away with the same amount of money.
Again, this strategy is contingent upon the numbers working for you, your financial situation, and your mortgage application.
Finalizing Payment: Methods to Cover Your Closing Costs
When you finally get to closing day, it’s almost time to relax and move into your new home. But first, don’t forget to set up a way to pay closing costs.
You can ask your lender or settlement company for the preferred payment method. However, in most cases, you can either get a cashier’s check from your bank or set up a wire transfer. There’s usually a minor fee associated with each one. It’s a quick and easy process, but it shouldn’t be forgotten before you get to closing.
Conclusion
Closing costs are a crucial aspect of buying a home. Being well-informed and prepared for these expenses can make a significant difference in your financial planning. Remember, while some fees are fixed, others offer room for negotiation, and shopping around can lead to potential savings.
By factoring in these costs from the start, you can ensure a smoother, more predictable home-buying experience. Buying a house is a major step – financially and personally. Approach it with the right knowledge, and you’ll be set to make this important decision with confidence and peace of mind.
Frequently Asked Questions
What is an escrow account, and how does it relate to closing costs?
An escrow account is a third-party account where funds are held during the process of a transaction, like buying a home. Regarding closing costs, part of these costs often includes initial deposits into an escrow account for future property taxes and homeowners’ insurance. This ensures that there is enough money set aside to cover these recurring expenses.
Can closing costs be included in the mortgage loan?
In some cases, closing costs can be rolled into the mortgage loan. This is more common with certain types of loans, like FHA loans. However, including closing costs in the loan increases the total loan amount and, consequently, your monthly mortgage payments and the total interest paid over the life of the loan.
Are there any tax benefits related to closing costs?
Yes, certain closing costs can have tax benefits. For example, points paid to lower your interest rate may be deductible in the year you buy your home. Always consult a tax professional to understand how your closing costs might affect your taxes.
How can first-time homebuyers prepare for closing costs?
First-time homebuyers should start saving early for closing costs, which typically range from 2% to 6% of the home purchase price. It’s also helpful to research and understand the different types of fees involved in closing costs, and consider attending homebuyer education courses for more detailed information.
What happens if I can’t afford closing costs?
If you find that you can’t afford closing costs, there are a few options. You can negotiate with the seller to pay some or all of the costs, look for lender credits, or explore programs available for first-time buyers or low-income buyers that offer assistance with closing costs.
Editor in Chief Sarah Wheeler sat down with Kenon Chen, executive vice president of strategy and growth at Clear Capital, to talk about appraisal modernization and how technology is just part of the solution.
Sarah Wheeler: What are some of the biggest challenges right now?
Kenon Chen: The challenge that’s in front of everyone continues to be the market itself, and then housing affordability. With mortgage rates continuing to remain high and home prices remaining high because of low supply, we’ve had another year of a reduced market. It’s difficult for lenders who don’t have a lot of extra cash to invest in making big changes right now — they need to stay focused on running their business in a smart way. But that’s why I think it’s really on solution providers like us to run ahead and create great opportunities that don’t require a lot of extra work and time and investment.
For us that means really simple APIs that are easy to integrate with, providing flexible options for how lenders can consume the products. That’s also making sure we’re partnering with the ecosystem to solve problems before the lender even asks for it and working with partners to make sure they can consume these products within the solutions they’re already using. That’s been a big part of the focus: getting the whole ecosystem to work together better so it doesn’t put all the onus on lenders to have to integrate a lot of different places to just get one solution together.
SW: How are appraisers adapting to some of these challenges, including new rules on valuations from the GSEs?
KC: Change is always hard. The GSEs implemented a number of policy changes that are an evolution from what appraisal has been for decades. So now we have multiple risk-based options: waivers, waiver plus property data, desktop appraisals, hybrid. Lenders and appraisal companies have a lot more menu options and their tech choices have to take them down the right path.
We’ve invested in the property data collection process and scaled it for a national level with mobile tech to capture all of the data right at the site. We’re using computer vision, AI, to capture the whole property into the space. We’re creating a digital twin and bringing the property into the digital realm, building a formation model and driving from that place as opposed to starting from a clipboard.
That’s required changes for everyone involved and we’ve been rolling that out as the market change happened at the same time. We see lenders really looking to the future and preparing for when volume returns — investing now to have a competitive edge in the future.
SW: How hard is it to change the way valuations are done at a fundamental level?
KC: Many lenders’ loan origination systems are really just providing a document repository and maybe some screens. But what ends up happening is that underwriters have to open up a lot of different documents, go to a lot of different sites. And one, that’s inefficient, but two, I think there’s something powerful about aggregating all the data first, running models on it, and then bringing back findings that focus underwriters where they need to look.
Most lenders’ loan origination systems are not designed to do that, for collateral especially. That’s been an area that’s a lot more PDF-based, because you have a PDF-based appraisal, you have a PDF base SSR. So that’s why we’ve invested a lot in a tool with an API that you can bring all your findings in at one place, as well as underwriting tools that put the right information in front of the right person at the right time. But all of that takes years of investment to create something that is really battle tested and can have proven results.
SW: Is the end goal of appraisal modernization to replace appraisers?
KC: The GSEs say all the time that they didn’t redesign these processes to replace appraisers, but to add more objectivity to the process, to create efficiencies in the process. Regardless of the tech used, there are human eyes reading, observing and looking at the data or a model, but starting with objective truth about the subject property is essential. And having a process that’s repeatable and standardized and consistent in every community — that’s where tech really helps.
We’ve been able to roll out standards through our mobile app that guides appraisers so that they’re grabbing the same data in the same way at every home. The evolution of mobile tech and AI and then greater connectivity when it comes to APIs to bring that data to people at their desks is what’s allowed us to approach this differently and do it at scale.
SW: Getting accurate square footage and floor plans has been a thorn in the side of the GSEs and agencies for years. Is that now solved?
KC: We went shopping for a solution back in 2016. There was a refi boom in Oregon and Colorado and appraisals were taking six weeks at the time. There was so much pain caused by elongated turn times — borrowers having to live In hotels when they were in between properties. We thought there has to be a better way.
Looking at the amount of time just driving, a time study showed appraisers were spending sometimes 30-40 hours a month just driving. Instead, we wanted to bring homes to the appraiser. We tried everything but we didn’t find anything that scaled to where anyone could do it with a mobile phone. Then we discovered CubiCasa and it actually worked. We had a partnership that led to acquiring the company. It’s now been adopted by real estate agents, brokers, photographers. We have about 30 Multiple Listing Services who have partnered with us as well.
MLSs want more accurate data and public records not always up to date. CubiCasa provides better data, shortening the days on market for the property. Consumers can really understand the property before they visit. It’s really rare that an app helps both the real estate process and the mortgage process and also makes secondary investors more comfortable.
SW: What keeps you up at night?
KC: Tech is always changing. And the conversations around generative AI have captivated the industry because seeing how fast things are changing and how fast these new capabilities are coming is now a lot more visible. So it’s always necessary to innovate, but in a way where you’re not introducing risk into the system. For us, it’s always about innovating in a thoughtful way, not just to try the new thing for the sake of trying a new thing, but making sure it really will have the outcome, the benefits we’re looking for and that it can be really useful to our clients.
Seems like a simple thing — to measure the square footage of a house. Just multiply the length by the width of each room and add up all your numbers. Not so fast. First of all, what’s a “room”? Do closets count? Basements? And why does accurate measuring even matter? There’s a lot to unpack.
What’s so important about getting square footage right?
If you’re moving into a new home and you want to know if your California king is going to fit into the primary bedroom, it’s nice to know the room’s square footage.
But there’s more riding on how to calculate the square footage of a house than just being able to fit your stuff. The square footage of a house determines its value. Lenders rely on square footage for mortgage calculations, tax assessors rely on square footage for assessments.
So, if you’re renting a house now but thinking of buying, it’s important to understand your current square footage so you can make a good comparison when house hunting.
What’s included in a house’s square footage?
There are several different answers to this question. First, here are a few terms to understand:
GLA (gross living area) is a home’s finished livable space above ground. And, if any part of the finished space is below grade, the entire area is typically known as below grade. GLA calculates when appraisers measure the home’s exterior. It goes in public records and is often important for tax purposes.
TLA (total living area) is like GLA but it includes finished basement space or possibly an accessory dwelling unit (ADU).
Living space is determined by American National Standards Institute (ANSI) Z765, which is a voluntary guideline for describing, measuring, calculating and reporting area for single-family homes.
Living space generally refers to “anything that is under the roof, within the house that is finished and heated — space heaters don’t count,” said Bryan Reynolds, a Certified General appraiser in Kentucky and Tennessee and president of the National Association of Appraisers.
Rooms to measure when calculating the square footage of a house
You might be surprised by which rooms are included — and which are not — when determining how to figure out square footage:
Bedrooms
Bathrooms
Kitchens
Hallways
Finished closets
Areas that don’t count towards the square footage of a house
There are plenty of rooms or spaces in your home that would qualify as “living space,” but don’t get counted in the total square foot calculation:
Finished basement: Say you have a ranch home with 1,000 square feet above ground and a 1,000-square-foot finished basement. An appraiser would say it’s 1,000 square feet of above-grade space and 1,000 square feet below grade. A real estate agent might say that there are 2,000 total square feet.
Enclosed porch: “If it’s unheated or used seasonally and there’s a separate door to the livable area, then it’s not included,” Reynolds said. But “if it’s finished in similar quality to the rest of the home, functional in design and has a heat source that is permanent in nature, then it can be included.”
Garage: The normal garage storage space doesn’t count. However, a bonus room above the garage might count. Only if it’s heated and 100 percent finished to a similar quality as the house. And, if it’s directly accessible from the inside of the house though.
Accessory Dwelling Unit: Unless it’s actually part of the house, it’s considered a separate entity.
Then, if you want to really get into the weeds, what about the sort of dead space under the stairs? According to Reynolds, ANSI says to include it, but AMS (American Measurement Standard) allows you to remove it from the square footage equation.
And, if you’ve got a bay window with a bench under it, one could argue that if you were to take the bench away, there would be useable floor space and that should come with the square footage.
How to figure out the square footage
Now that you know what to measure, here’s how to measure. But first, remember the aforementioned ANSI Z765?
For a room to make it in a home’s total square footage, the ceiling must hit a certain height — seven feet or higher or six feet four inches if there are beams or soffits. Plus, no portion of the finished area can have a ceiling height of less than 5 feet.
Let’s say you’ve got a Cape Cod with a sloped ceiling and knee walls. That portion under the sloped ceiling (if it’s five feet or less) is not counted in the square footage (see image). In addition, the rest of the ceiling must hit at least seven feet for at least half of the room’s floor area.
Photo source: AccurateHomeMeasuring.com
Keep in mind that an appraiser will, hopefully, look around inside the house but will measure the house from the exterior — unless there’s that pesky sloped ceiling situation, in which case they will have to go inside or the square footage will be off.
According to Hamp Thomas, certified residential appraiser and author of “How to Measure a House Using the ANSI Standard,” the pros use a 100-foot tape measure to do their job. Certainly, a shorter tape measure would work. However, there is a lot of stopping, starting and adding that can lead to inaccuracies.
Measure around the outside of the house above the foundation. Multiply the length by the width of each rectangular space. If you’ve got a second story and can’t reach a corner on the exterior, for example, measure from the inside and then add the width of the exterior walls.
Know why you’re measuring
It’s likely that, if you’re reading this, you’re not a professional appraiser. If you’re interested in getting a general sense of how much footage you have in your house, grab a measuring tape and measure each room’s length and width and multiply those numbers. Then add all the square footages together. “Don’t forget to include any outside walls thickness, or just measure from the exterior,” Reynolds said.
If a room isn’t a nice rectangular shape and has jogs and bumps, create rectangles, measure and multiply the length by width. Then, add up all the bits and pieces.
And if old-school tape measures aren’t your thing, there are lots of free measurement apps that you can download to your phone. You can also put the information into Calculator Soup’s square footage calculator, which can help you figure out the square footage of differently shaped rooms.
Measure on.
Stacey Freed is an award-winning writer and former senior editor for Remodeling, a trade publication focused on the business of the remodeling and construction industry. As an independent writer, she continues to write about the building, design, architecture and housing industries. Her work has appeared in Better Homes and Gardens and USA Today special interest publications, Realtor magazine, This Old House, Professional Builder and online at AARP, Forbes.com, House Logic and Sweeten.com among other places.
Welcome to Throwback Thursday, a web series where we revisit the most memorable properties we’ve covered in the past — and see what happened to them. Ranging from architecturally distinct properties to luxury listings with some quite unique features, to unforgettable houses that left us daydreaming about potentially moving in one day, Throwback Thursday revives our past favorites and provides an update on whether or not they’re still on the market, how much they sold for, and, if the information is publicly available, who bought them. This article has been updated to reflect the current status of the property, but all the information about the house itself as well as the property photos date back to our initial coverage (published on October 1, 2020).
Many million-dollar homes often come with name-bragging rights.
Sometimes, it’s because a celebrity once lived in the house, or because a famous designer left its expert touches on the home’s interiors; or maybe the address itself is well-known, for one reason or another.
But there’s a whole other level of name-dropping that comes with owning a home envisioned by one of our generation’s leading architects.
And that’s exactly the case for this modern glass home in Sagaponack, NY, designed by world-renowned architect Shigeru Ban.
In fact, the property is the award-winning Japanese architect’s first and only work in Long Island. And since it spent some time on the market in recent years, we got to take an exclusive look inside.
Famous for blending traditional Japanese elements with modern Western architecture, Shigeru Ban was named to TIME magazine’s shortlist of 21st-century innovators, won the 2014 Pritzker prize (the biggest distinction in the architecture world), and left his imprint on structures like the Aspen Art Museum, Centre-Pompidou-Metz in France, and Tainan Art Museum in Taiwan.
Despite his many accolades, the Japanese architect is most known for being a champion of sustainable architecture and has been instrumental in designing disaster relief housing from Rwanda to Turkey.
His design philosophy is centered around creating uniquely free and open spaces with concrete rationality of structure and construction method, and the Hamptons house is a perfect embodiment of this.
With a design based on Ludwig Mies van der Rohe’s unbuilt Brick Country House (which dates back to 1924), the 8,000-square-foot home boasts unique architectural features, including a row of pillars that line the path to the front door — that can double as hidden storage.
The 5-bedroom, 5.5-bath home features exceptional furnishings by renowned designer Shamir Shah.
It has floor-to-ceiling windows, an oversized living room (with a wood-burning fireplace and wraparound views of the landscaped lawn), and a massive workout room that is more akin to a private high-end gym — complete with oversized mirrors and every piece of equipment you could think of, including a spin bike, elliptical, treadmill, press machines, and more.
See also: This Floating Farmhouse in the Catskills dates back to the 1820s, but you could never tell
The indoors seamlessly open to the outdoor areas, where there’s a heated in-ground pool and a pool-side terrace with multiple lounging areas — adding to the tranquil zen garden area (with a modern stone fountain) which greets visitors as they enter the property.
What happened to this Shigeru Ban-designed home?
When we covered this property back in October 2020, it had just been listed for sale asking $4,995,000.
Listed with Matt Breitenbach of Compass, the architectural property was already marked as ContractSigned on the brokerage’s website mere days after it came to market, which means it’s likely that an architect buff has quickly seized on the opportunity to own a home designed by the Pritzker-prize winner.
As is to be expected for a property of this caliber, the Shigeru Ban-designed home sold for way over its original asking price.
Public records show that the sale closed in March 2021 for $5,250,000. That’s 5% over ask.
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