Buyer's Vs. Seller's Market For Homebuyers - Tips For Understanding The Difference

The economy works in a cycle and each cycle has an effect in the prices of goods. Each industry has a unique 'market cycle' generally follows the whole economic trend and real estate is no exception. Most people consider the home and property industry to have two phases: the buyer's market and the seller's market. Knowing which market the industry is in can benefit you as a homebuyer.

Houses are generally affordable in a buyer's market and it's easy to get a loan since interest rates are lower than average. You may even see numerous 'For Sale' signs in front of homes.

In a seller's market, people might state that the home and property industry is in crisis. It would be hard to spot affordable deals and some sellers might organize exclusive lotteries wherein select buyers bid on exclusive homes.

Buying a home in the right market cycle can give you more value for a home compared to its purchase price. The only problem is "cycle phases are much easier to pinpoint long after the fact", according to Barron's 'Smart Consumer's Guide to Home Buying'. They further explain that "if you know what to look for, it's easier to figure out the state of the market." Look for these market indicators to guide you in the timing of your home purchase:

As mentioned, 'For Sale' signs are everywhere in a buyer's market. At this time, sellers are giving incentives, such as concessions and discounts, to sell their properties quickly. There would also be an increase in the number of foreclosures and high-priced, quality homes will be sold for lower-than-average prices.

Expect to see very few 'For Sale' signs in a seller's market. Prices of homes are relatively high and sellers within the same neighborhood employ competitive selling tactics. There are a lot of people who 'flip' homes; buying and renovating a home and quickly selling it. Many rental complexes are also converted into condos during this cycle.

The best time to dive in and purchase a home is during a buyer's market. It's pretty obvious but as a buyer, you would want to buy a home at the lowest possible price. Most sellers will give discounts and other incentives for you to make an offer. Just keep in mind that you still need the guidance of a professional realtor to navigate the market and find the right home for you, especially if you are a first time homebuyer.

Homebuyers must have a strategy to help them out in the entire homebuying process. Homebuyers are advised to look for market indicators, work with a professional and do their own research to come up with a plan and choose their best option.

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Buyer's market or the seller's market, when you are looking for homes for sale in Colorado Springs, you should hire a reputed Colorado Springs REALTOR to help you find the right Colorado Springs real estate property that will suit you in every respect. If it's a commercial real estate that you are interested in, you need to see Mike Stuard for all your Colorado Springs commercial real estate needs.

Home Selling Process

If you want to sell a home on your own without a costly real estate broker, you can do it by following certain steps. It is not at all a difficult task and simpler than what the majority of people feel. Nevertheless, it would require some activities from your part. You need to do a number of things that a realtor might usually do. If you go by a step-by-step approach for selling your home, the entire home selling procedure would become easy.

Steps Involved

1. Get your home ready for sale – make it attractive

2. Price your home efficiently

3. Find a real estate lawyer

4. Marketing for your home

5. Negotiation of a bid on your home

6. Home inspections

7. Buyer appraisal and other information

8. Closing

It is money that matters. Sellers can save a lot of money if they don't pay a commission of 6% or 7%. For instance, if your home can be sold for $200,000, you can save $12,000 to $14,000 in commissions.

Sell your home quick. Since you are not making payment for an exorbitant sales commission, you are able to value your home more assertively. The lesser the price, the more is the probability that it would sell quickly. You can walk off with thousands of dollars as savings, but you would simply be performing it sooner.

If you follow the home selling steps properly, it would become quite simple. A real estate broker also knows that.

Eight Simple Steps for Selling Your Home

Step 1: Get your home ready for sale – make it attractive: If you can make your house attractive, you would be able to draw a considerable number of eager homebuyers. Your objective is to amaze homebuyers. Get the views of your neighbors about the outlook of your house and ask them how you can make it more presentable.

Step 2: Price your home efficiently: You should not price your house excessively high. If you do that, it would lessen the interest of the buyers. This is the most important cause why home sellers cannot sell their homes profitably. You should always keep in your mind that the home price is determined by the home selling market and not you (the seller).

The simplest means to correctly price your home is to get in touch with your local home appraiser.

Step 3: Find a real estate lawyer: It is always prudent to engage a real estate lawyer in spite of the fact that it is an extra cost. He would work for protecting your interests during the whole deal. A seasoned lawyer would help you assess complex offers (where there are a range of terms and conditions), function as an escrow agent for holding the down payment, assess complicated mortgages and/or rentals with options to purchase, analyze deals and manage the closing procedure of your home.

Step 4: Marketing for your home: For selling your home quickly, exposure is an important factor.

Writing your advertisement for sell: If you are giving a newspaper advertisement, the ad must be detailed yet short, easy to understand and pertinent.

Home photos: If you provide a photo of your home, it would work like a thousand words.

Open houses: You can conduct an open house with the help of realtors for drawing buyers to your home.

Lawn signs: Lawn signs work as one of the strongest marketing tools for home sellers. They draw notice to your home. It can be a professionally produced sign or a directional sign.

Information sheets/home brochures: Making an information sheet along with a photo of your house is always advisable to attract prospective homebuyers.

Multiple Listing Service (MLS): Multiple listing service or MLS also assists in marketing your home, especially to realtors who might have knowledge of buyers looking for a home like yours. It is basically a directory utilized by realtors.

Step 5: Negotiation of a bid on your home: You should take the advice of your attorney whenever an offer is made by a homebuyer. You can receive the offer either directly from the buyer or from his attorney. There is an Attorney Review Period applicable, which is normally three days, to decline or modify the offer. It becomes an agreement when the Attorney Review Period has expired and is compulsory. Always evaluate the financial eligibility of the buyer. Also try to get a better idea of the home selling market trends.

Step 6: Home inspections: The potential homebuyer has the authority to inspect your home – therefore get ready. You can also consult your local home inspector to know how your house would score. As soon as the inspections are over, the buyer would send the application to the mortgage lender.

Step 7: Buyer appraisal and other information: The mortgage lender would arrange for a buyer appraisal for your home to ensure that they’re not paying higher than the value of the house. A mortgage commitment is issued by the mortgage lender and all the terms and conditions enumerated on it have to be accomplished by the buyer and his attorney.

Step 8: Closing: Closings normally happen 30-45 days following the signing of the sales agreement. You can close with the help of a title company or a lawyer. During closing, all funds are gathered, any existing liabilities are paid off, the deed is handed over and insurance for a free and clear title is issued. The home seller would get the proceeds in one or two working days subsequent to the closing.

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Buying or selling a Colorado Springs real estate can be a daunting process. It can be made easy if you hire the services of a reputed and well established Colorado Springs REALTOR to help you sell you home fast and for those looking for homes for sale in Colorado Springs, there are some fantastic property listing to choose from. If you have any questions about Colorado Springs commercial real estate please contact Mike Stuard.

 

Own Your Dream House Even Without Savings With Rent To Buy Home Method

Not everyone is lucky to have their housing loans approved. For those who seem to find no way to get to own a house, it looks like it is almost impossible for them to get a house of their own. With the financial crisis that they are experiencing, attempting to acquire a loan may just get them into more trouble later on, and which will even worsen the situation.

If you want to break free from the rental cycle, then the rent to buy home can be an effective way to finally get the chance of paying for your own home, even without stepping inside a bank or a lending company.

The idea of rent to buy home doesn't mean you get to own the house immediately. It still works similar to renting a house on a monthly basis, although there are other additional agreements depending on what the buyer and seller have agreed upon. What is brilliant in this method is that the buyer will get to pay and own the house gradually, without even sacrificing their everyday needs and wants.

This is a slow but sure method that can be very advantageous especially for the buyer, if he has limited ways of purchasing a house, through the rent to buy home method. How can you get a potential seller be interested on rent to buy home method?

If you are familiar with For Sale By Owner or FSBO, this is a method done by sellers through selling their properties without the presence of middleman. The middleman, or the realtor will earn a lot from the commission they will get by helping to close a deal. Some sellers choose FSBO method because they are possibly having financial troubles that make it a bit more difficult for them to sell their properties.

Whatever reason they have, this can be a very good opportunity for you to settle a deal; a deal that will not be one-sided, but an agreement that will best answer the problems of the two parties involve.

The terms and conditions of a rent to buy home system are very flexible, as long as it answers the needs of the two parties and they both agree with it. Buying a house would definitely cost much more compared to just renting for it. Although you don't need to sacrifice your needs just to pursue it, if rent to buy home will not work for you, then try to find other methods. The bottom line is it should be able to solve the problems of both parties- the seller, being able to fix his financial problems; and the buyer, finally gets to purchase his own home.

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Colorado Springs is a great place to call home. With the Colorado Springs real estate market slowly picking up pace, there are some fantastic homes for sale in Colorado Springs. For those of you looking to relocate to Colorado Springs can hire the services of a reputed Colorado Springs REALTOR to help you find a home that suits your style and budget. If you have any questions about Colorado Springs commercial real estate please contact Mike Stuard.

 

Women Drive Real Estate Purchases

Women are working more, earning more and buying more than they ever did. Consequently, they have a significant influence on the American economy in general, and the real estate industry in particular.

The collective buying power of US women accounts for about 85 % of all consumer purchases. When it comes to purchasing patterns, women are estimated to make 94 % of home furnishings decisions, 91 % of new homes purchase decisions, and 89 % of travel decisions.

Women's earnings have accelerated over the last few years and they have emerged as the Chief Purchasing Officers in their households. According to IRS data, women constitute 39 % of the top wealth holders in the country. This means about 2.5 million women possess a wealth of $4.2 trillion put together. Notably, the IRS estimates that by 2050, 42 % of these women will be single or widowed. The IRS further estimates that more wealth is bound to be accumulated among women.

Another growing trend that emerged in a December 2006 study by the National Association of Realtors (NAR) was that about 22 % of homes purchased between July 2005 and June 2006 were by single women who were in the 25 to 34 age range. Women accounted for a record number of 1.76 million home purchases (1 in every 5 homes), a significant increase from 14 % a decade ago. Women's growing success in their careers, higher education, financial independence and a desire to build an early nest on their own, are some of the reasons that have spearheaded this home buying trend.

Among the vast demographic spectrum in the real estate industry, women have become a force to reckon with. Real estate agents are increasingly taking note of their female clients and the power they wield in home buying decisions. By the influence that they bring into play in home buying decisions, women form a significant and growing market that simply cannot be ignored.

If you are considering buying a home, condo, or any other real estate, be sure to seek out the services of a local real estate agent to guide you through this complex process.

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So for all those ladies who wish to invest in a Colorado Springs real estate property or are looking for some great homes for sale in Colorado Springs, you may hire the services of a reputed Colorado Springs REALTOR to help you find one that suits you in every way. And for those looking to buy a commercial real estate property and need any information about the Colorado Springs commercial real estate market, please contact Mike Stuard.

 

Do Your Own Home Inspection

Do Your Own Home Inspection

Anyone who has gone through the process of buying a home in the Colorado Springs real estate market will tell you that one of the most tedious and lengthy part of finding a home is narrowing down your list of prospective homes.

Though time consuming, it is the part that you cannot skip. You can however do it by conducting your own small inspection of the home you wish to buy. Home inspection, big or small, plays an important role. It can help you get rid of bad choices right from the start. Once you have done your mini inspection, it is important to hire professional building inspector to do a thorough check before you finalize the contract.

Here are a few things to look for while conducting your own small inspection:

1. Termites: Look for signs of termites in sleeper and specially hardwood retaining walls.


2. Weep Holes: Make sure that the weep holes are not covered up and are well above the ground. Weep holes are a common place for termites to get into your home.


3. Fascia lines of the roof: Look for any noticeable distortion or blowing.


4. Cracks: Cracks are a sign of major structural problems; look out for evidence of excessive cracking.


5. Leaks: It can be a costly repair, look for minor leaks in the shower or under the skin.


6. Damp spots and stains: They can be signs of major fault.


7. Roof: Look for extremely worn out tiles and signs of corrosion in case of metal roofs. Look out for patch jobs on the roof.

These are just a few things that you can look into, but there could be others that catch your eyes. Be sure to look at the smallest issues which could later turn into a major problem. Finally before you finalize the contract have the professionals do a thorough inspection of your future home. If you are a first time home buyer, you may hire the services of a reputed Colorado Springs REALTOR to help you find your dream home. And as far as inspection is concerned, it also holds true in case of commercial real estate. If you have any questions about Colorado Springs commercial real estate please contact Mike Stuard.

 

 

Knowing the Perfect Time when to Offer Much Lower than the List Price

If you are considering purchasing a house for the fulfillment of your life-long dream or for future investment
and profitability, it is high time you know the different components in coming up with a great and productive venture. For instance, you ought to learn and understanding basic components of getting the most out of your pursuits. It is not enough that you make a home purchase offer and wait for the home seller to approve your proposition. You ought to learn and determine if you are indeed making a profitable investment. In the current economic condition, making sure that your hard-earned money is in good hands and venture is a must and knowing when to offer a much lower price than the asking price of the property is one example of this salient step.

The perfect time to ask for a price modification particularly geared to deduction or reduction of the list price depends on your preparedness for the proposition. You have to equip yourself with sufficient knowledge as to the trends and patterns of the real estate industry. For instance, know if the market remains to be a buyer’s market, which means that there is an overflowing supply of houses or properties for sale than the percentage of sure buyers in the market. You could definitely take advantage of this trend and use it to effectively pave your way to a price reduction offer. Compare prices of similar properties in nearby places in the vicinity. This gives you the full scenario of the movement of home buying and price rates in the locale and you may use this basis as your solid proof in asking for a lower price.

Determining the perfect time to offer a lower price rate requires a credible and reliable help from a professional real estate agent. There are certain mechanics and technicalities in this industry that are often beyond your knowledge and basic understanding hence you need a seasoned professional to give you advice especially in your pursuits for home acquisition. You may find reliable online sources and even referrals from your family, colleagues and friends to know who to hire and entrust your transactions to.

Another good time to offer a much lower price rate is when you have finished a thorough and accurate home inspection on your prospective property. Home inspection is considered a tool that helps you in making a sound and wise investment. It clearly notes salient home maintenance issues such as pinpointing areas in the house that needs attention for repair and fixture. You must know how to subtract all noted defects and malfunctions and even the estimated amount you are sure to incur when addressing the issue. It is primarily the home owner’s obligation to deal
with these issues on repair and fixture however if he does not budge to your request, you may negotiate further and opt for a price reduction.

Determining the right time to offer a lower price for your prospective property is essential in making a profitable and productive investment. Know when to do it and how to do it correctly and you are bound for an amazing venture in the end.

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Buying a Colorado Springs real estate property can be one of the most important decisions of your life. To ensure that you get the best deal in the market, hire the services of a reputed and well established Colorado Springs REALTOR, one who will show you the properties that meet you standards and requirements and fits your budget and also help you with the process of buying that property. If you have any questions about Colorado Springs commercial real estate please contact Mike Stuard.

Realtor Loyalties

Realtors have an important role when it comes to buying and selling real estate. It is their role to bring buyers and sellers together. Without the assistance of local realtors it would be much more complicated to complete a real estate transaction.



Realtors Represent You



Selling or buying real estate involves a large sum of money, sometimes millions of dollars. While there are real estate transactions that seem to run smooth as clockwork there are others that wind up being complicated and full of legalities to overcome. However, there are ways to help protect you and your interests.



Selling



When selling a home you should utilize the services of a local realtor. It is important that your interests are put first and protected. A realtor and/or the brokerage firm that represents you, has the fiduciary duty to protect your position and interests, unless otherwise stated. It is important to talk with your agent concerning what their responsibilities are and how they will protect your interests. The contract between seller and agent is commonly referred to as "seller agency".



An example of how a realtor will protect you when in such a relationship is in existence is by not telling potential home buyers why you are selling the home and if you offer any concessions in price. Of course you may choose to allow this type of information to be disclosed but many times you save it for the negotiations.



Buying



Similar to "seller agency" is "buyer agency". This type of relationship is between the buyer and realtor but the same principles apply. Under this type of agreement the realtor represents the buyer. Information is kept secret to protect the buyer's interests. Also if the realtor finds valuable information concerning the seller and the property that is not being disclosed they are obligated to inform the buyer.



Often time’s home buyers don't enter into this type of agreement but there are times it can be beneficial. The only thing it costs is commitment to that realtor; however time frames can be set in the contract.



Realtors work hard to earn their commission, whether helping a buyer or seller. They drive buyers around town, buy an occasional lunch, and research the market. When buying and selling real estate it is important to know your rights and where the loyalties lye of the realtors involved.

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Hire the services of a reputed Colorado Springs REALTOR, when you are looking for some great Colorado Springs real estate properties, who will show you ifferent options that will suit your style and budget. And if you have any questions about Colorado Springs commercial real estate please contact Mike Stuard.

Designing Kitchens For Resale - Make Your Decor Match Your House

We once owned a very traditional looking Cape Cod style house that had a kitchen that did not match the house. It had those old style cabinets in melamine with oak strip handles. It was awful in the space. The style of the house was very traditional, with its fancy trim package with crown molding and over-mantles. The kitchen did not go with anything else in the house.

The house was traditional and the kitchen was 1980's contemporary. It had been for sale for years when we bought it. It was in an excellent location and a great neighborhood but no one who wanted the house wanted the kitchen. They just didn't go together.

This is a big problem for homeowners when they want to sell homes. Whatever a house looks like from the street, the inside decor needs to be consistent with the exterior. You don't want to disappoint a potential buyer who likes the exterior curb appeal.

There are some classic styles of cabinets and other details that will look good in almost any house, but you need to be careful.

In kitchens, whether a house is contemporary, traditional or transitional, cabinets need to go with the style of the house.

A traditional or transitional house with a fancy trim package can look good with raised panels that are also framed or Shaker style cabinets. Raised panel doors are basically for traditional or European style houses.

A Shaker style cabinet has a flat panel with trim around the outside of the doors. It can look good in every style house, from cottages to transitional or contemporary. Shaker decor was the original minimalist style. Bead trim on a shaker style cabinet makes it more traditional and looks good in rustic or farm house style houses, even ones that are going for a European look.

Flat panel doors with no frames around the outside edges look good in mid century modern and contemporary houses. The other day I saw a Northern Colonial style house with a center hall plan that had a kitchen like this. Resale may be difficult for this traditional house just because it has a hard contemporary kitchen.

Another aspect of decor to consider is paint color. A classic style of paint for traditional homes is a flat, light wall color with white trim around all the windows and doors inside and out. But the trick is that older traditional homes like Queen Anne farmhouses were never painted with the extreme white colors available in modern paints. They were painted with whites that were more ivory or cream, not bright white. Skip wallpaper. Most buyers don't like it.

Natural wood cabinets look good in many styles of kitchen decor. Painted cabinets can look good, too. But remember to complete all the details. Finish off the ends of cabinets and the backs of islands.

Let the architecture speak for itself. Stop decorating before you reach sensory overload, especially in kitchens. Kitchens tend to be busy visually. Open shelving might sound nice, but be very careful. It can look very messy and not function well at all. If you do any cooking, everything on open shelves will get dust, dirt and grease on it. On the other hand if you only eat take out food it won't matter and you might get by with well-staged shelving.

You may not need granite and stainless steel. The appliances matter more than the counters. Ceramic or stone tiles can look great and cost less. Butcher block looks great, too. If you live in an area where granite works with high priced houses, it might be worth it, but in cheaper housing markets you will never get your hard earned money back.

The overload of doodads and stuff is a problem in kitchens. Use fresh food items and minimalist window coverings or no window coverings at all. And make sure you can put most stuff away. Professional home stagers only let you have one item out on the counter. Many people choose a coffee maker. And then you can have some fresh flowers or fruit and you can make the table. That's all. So slow down on the stuff in the kitchen and it will make your house more salable.

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Home staging plays an important role when it comes to property sale. Ensure that you stage you home well or hire the services of professional stagers when selling your home in the Colorado Springs real estate market. You may even hire the services of well established and repute Colorado Springs REALTOR to help you find the best deal. If you have any questions about Colorado Springs commercial real estate you may contact Mike Stuard.

Which Home Improvements Add the Most Value

The recent economic recession has made many home owners try their hands on home improvement that would fetch them a good price when they put it over for sale. Doing maintenance work on homes may sound a bit pricey, but that is not correct; when you really think about it, you may even consider the task as an investment opportunity.

To begin your work, go for a complete inspection of your home. Check all electrical cables/wires in your home for any damage. In case you notice something wrong, change it as soon as possible because as time passes, it can get weak and could be a cause of a short circuit.

Minor, mid-range, and major renovations are the three categories of home renovations. They are based on the on the cost of the task involved. Minor renovation includes changing the flooring, tiling work, shower doors, etc. Remodeling a bathroom or making a new one could fall under the category of midrange renovations. When you go for a 6 figure renovation like adding a pool or adding a third storey to the existing home etc, these are huge investments and should be done if you live in a neighborhood with million dollar houses.

It would be a waste if you go for costly decorations on your home and not get anything out of it in the long run. Stay away from big budget renovations if you are planning to relocate or sell off that property in a year or a short period of time. Invest in the maintenance of that home, so that you can keep the property well maintained and make sure that your investments in remodeling or renovation, always adds more square footing to the plinth area. Be cautious about those investments that will bring additional expenses, like building a pool, etc. Think forward in time, when it comes to the maintenance- cost of each addition.

When you are preparing a budget, take into consideration the cost of labor and the cost of the goods as well as equipments you have to buy. Make your home more fuel efficient and energy friendly. Such innovations will allow you to bring down your expenditure on bills, on fuel and electricity. Make your home more ‘green’ so to speak. Another area of home improvisation is the investment in home security gadgets and equipments. This is a vital form of home renovation, so make sure you go through having the needed security features for your home, when you are preparing your budget.

It may seem like just another house, but your children and you put together make it a home. So at the end of the day, it is the protection and comfort of your loved ones that add up. Do what is vital and keep in mind that it is for each and everyone of them. There are many professional companies who offer home modeling and maintenance services that may be what you are looking for. Offering services on all three categories of maintenance, these companies have skilled workers with them who could attend to any type of work. You should always check if they possess the needed licenses, employ the best technicians, and also have liability insurance, so that if anything goes wrong, you are covered.

Keep these things in mind if you are going for a renovation.

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Consult you local Colorado Springs REALTOR about adding home improvements to your Colorado Springs real estate before you put it out for sale. These tips may help you get better value than you expected. You may contact Mike Stuard for all your Colorado Springs commercial real estate needs.

Myths About Real Estate Agents

There are some myths about real estate agents, many of which are not so flattering. But when it comes down to it, real estate agents are not too out there, and there is a logical explanation to each misconception. Let's straighten out a couple myths and facts.

Myth #1: They have big hair.

Fact: Though occasionally real estate agents do have big hair, most are regular people who get up in the morning just like you do, and go to work just like you do. Many real estate agents, in fact, are going bald due to stress related hair loss. Same with the fancy dagger-shaped manicures; in actuality, many real estate agents have bitten their nails down to nubs.

Myth #2: Real Estate Agents drive luxury cars while talking on their cell phones.

Fact: It's true that real estate agents are often trying to do too many things at once, but they like to be careful about it. And though real estate agents would like to make a good impression on you, more often than not they drive Hondas and Toyotas and hope that their hard work will sell you, not their Lexus.

Myth #3: Real Estate Agents know your area.

Fact: Just like normal people, real estate agents can't know everything. Though they do spend a lot of time driving around town, they canâ??t be in all places at once, and they themselves probably have preferences for one neighborhood versus another. Make it clear to your realtor what kind of area you want to live in, and they can help you look within that section of town.

Myth #4: Real Estate Agents live outside of time.

Fact: Real estate agents have lives too, and those lives happen to take place in the same physical realm as yours does. While it might seem like they spend a strangely disproportionate chunk of time speaking with you, they are actually trying to be as time-conscious as possible, so that you can move more quickly into your home and they can move more quickly to helping their next client.

Myth #5: Real Estate Agents just want your money.

Fact: What real estate agents actually want is an easy life. They want to help you find a home you love, and they want to make their (often small) bit of commission off of it (and that's off the sale, not out of your pocket). They do not want your soul or your firstborn, just some patience, consideration, and a positive home-buying experience for all.

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Your local Colorado Springs REALTOR is the right place to start when you are looking for some great Colorado Springs real estate properties. And if you have any questions about Colorado Springs commercial real estate please contact Mike Stuard.

What Kind of House is Right for You?

It can be overwhelming when you start looking at homes once you've decided that you're in the market to buy. There are so many options out there that it can be hard to really know what you want or what would best work for you if you just start viewing homes.

The very first thing that you need to find out is how much you can afford. Talk to your bank and see how much you can get in a pre-approved mortgage. This will give you a ballpark figure to work with. This also gives your agent an idea of what range of homes to show you.

Next, decide who this house is going to be for. Unless you really love moving, you'll probably want to take into account who you anticipate living with you in the next five or more years. You might want to consider if you're likely to have kids in the next few years or if you have an elderly parent or grandparent who you might want to come and live with you.

While the addition of kids into your house may well make you want to have at least one additional bedroom, having an elderly relative living in your home may make you rethink the whole style of a prospective home. Elderly people may need a bedroom and bathroom facilities on the main floor of the home, as well as ground floor entry.

If have children, or plan to, it is likely in your best interests to take a look at schools in the general areas that you're looking at being possible destinations to move to. Also take a look at the proximity of parks and playgrounds, activity centres, and public transportation. Another handy thing to have close by your home is a grocery store, even just a small one where you can buy milk.

Something that people sometimes forget in regards to location is what do you NOT want your home close to. If are not a parent, you may not want you home located right across the street from the local high school. You likely don't want your home near industry or farms if you're concerned about smells. Industry is also often noisy, as are airports or airport corridors. Take all these factors into account when looking at areas to buy in. If you're concerned that a seemingly perfect area might become less than perfect in the future, check out city hall to see if there's anything in the works for that neighbourhood.

Consider your hobby needs when thinking about what kind of house will suit you best. Are you an avid woodworker or mechanic who needs a full shop facility or are you a budding artist who requires space for a painting studio? If you like to camp or boat then you might require adequate parking for your RV or boat. If having a yearly vegetable garden is important to you, then make sure your agent knows that you need the space for that.

Next, consider what kind of condition you need the house to be in. Are you an avid to-it-yourselfer? If so, then you might be more inclined to buy a house that has all the features that you want even if it needs some work. However, if you're not particularly handy or can't afford to dish out a bunch of money for repairs or renovations, then you might want to buy something in better shape.

Lastly, consider what style of house you want to buy. Some buyers are very flexible on this point, where some others are very sticky on what style of home they want to live in. Some buyers already have a whole houseful of Victorian furniture and so want their house to match; others just want a house that meets all their other criteria.

Take time to think about all of these aspects of a home and then prioritize them. Be upfront with your realtor about what the most important qualities of a house are important to you so that they can keep an eye out for the houses that'll suit you best.

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Be sure you know what kind of home you are looking for when you look through the Colorado Springs real estate. Once you have made it clear to your Colorado Springs REALTOR about the specific features that you wish to have in your house, it would be easier for the Realtor to find you the house that suit your needs. If you have any questions about Colorado Springs commercial real estate please contact Mike Stuard.

Setting the Price

When it comes to selling a home the main thing both homeowners and homebuyers are concerned with is price. Homeowners are looking to get as much as possible for the sale while homebuyers are looking for the best deal. Even though the interests are different it is not impossible to obtain a win/win situation.

If the selling price is to high several problems will arise. The main one of course is that the home will not sell. It will sit on the market for months and months eventually drawing no activity whatsoever. This is a waste of resources and time.

To get the sale of your home back on track you will need to make some major concessions, typically in price. There are even times when taking your home off the market for a period of time as you re-determine the price can be very beneficial.

On the flip side if the price is set to low then the homeowner can miss out of thousands of dollars. At some point this is every home sellers concern so it is important to determine what is an acceptable asking price and selling price and take it from there. Remember that if your home sells quickly that is not always an indicator that the price was to low. It often means that the home was priced right.

When setting the price the best you will be able to do is come up with a range. The easiest way to do this is to contact several local real estate agents and obtain a CMA from them. The information should be similar, if they did their job correctly, and provide you with a great starting point for setting the price.

In the end it is the buyer who determines the selling price so as a seller it is important to understand what the real estate market is doing and what a reasonable selling price is. You can't put a sales tag on memories and if you could most homebuyers wouldn't pay you a dime.

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Hire the services of a reputed Colorado Springs REALTOR to help you find the Colorado Springs real estate that suits your budget and style. If you have any questions about Colorado Springs commercial real estate please contact Mike Stuard.

What Is A Real Estate Coach?

If you are planning on making a living real estate investing, you need a good real estate coach. A real estate coach can help you along as you make your first real estate investment as well as subsequent investments. The main quality that you want in a real estate coach is experience.

Whether you are planning on investing in commercial or residential real estate, it is a good idea to have a real estate coach who has, as they say, been there and done that. Rather than learning as you go, which can be very costly and cause you to make poor investment choices, you can learn from the mistakes of others.

Before you entrust your real estate investing business to any real estate coach, you should be sure of their experience. You will also have to gain some experience yourself. Learning as much as you can prior to starting any sort of real estate investing is the best way that you can get started in this field.

There has never been a better time than right now to start a career real estate investing. Real estate is a unique investment opportunity. Unlike the stock market, real estate not only provides you with something that you can use, but something that we all need. We all need a place to live, so real estate is one investment that is here to stay.

Even if you are just thinking about buying a home in which to live, you can make good use of a real estate course. There are many different types of real estate courses that are offered online today, and some that are offered on television. Choose one that is taught by people who have vast experience in real estate investing and offer real estate coaching as part of the package. In this way, you will effectively be killing two proverbial birds with one stone.

After you have completed a good real estate course, you should have a better handle on the concept of real estate investing. This will give you a head start in the investment world and will prevent you from making a bad investment. There are a lot of homes on the market right now - but in order to invest, you have to be able to understand which homes stand to make you the most money upon resale. This is something that the real estate course will teach you.

Your real estate coach will help you with any questions that you will have after you have completed the course. This can be very beneficial to you if there are questions that are not contained in the course. A real estate coach can keep you from making a mistake and can steer you in the right direction with regard to your investment.

Look for knowledge first. That is whether you are looking for a real estate coach or a course, or both. There is no replacement for knowledge and experience, which is why you can learn to avoid the mistakes that most real estate investors have made on the way up. You will have to provide the desire to learn and get ahead and your real estate coach will be able to supply the rest for you. Make sure that any real estate course that you take is taught by a real estate coach who has had a good deal of experience within real estate.

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Buying a Colorado Springs real estate from investment point of view can be a good thing. looking at the popularity of Colorado Springs you may have a good return on investment if you decide to sell off the property at a later date. You may hire the services of a reputed Colorado Springs REALTOR to find you the property of your choice. If you have any questions about Colorado Springs commercial real estate please contact Mike Stuard.

Don’t Neglect the Home Inspection

Home inspection is important in determining the actual condition or state of a certain home. Although this is an essential process, many are not taking it seriously. In fact, a lot of buyers do not see the sense of having a property inspected especially if the price of the property is really low. People think that this is just another unnecessary additional expense. There are also homebuyers who regretted not doing this before purchasing a property.

Home is a major purchase for most. This is why it is essential that you know exactly what you are purchasing. This will also prevent you from regretting any purchases you made. You will get a lot of benefits from doing the inspection. As mentioned earlier, you will know what the current state of the property is. It may seem all right when you first look at it. However, you will not know if there are underlying problems in the property unless you hire a home inspector to take a look at it.

Aside from uncovering problems, you will also have an overview of the kind of property you are purchasing. This way, you will be able to ask for a more appropriate value. This is especially true if you made a significantly high offer. After showing the inspection report to the seller, you can talk about the price of the property. If you cannot agree on the price, you can request the seller to make the necessary repairs.

If you cannot agree on the value or the arrangement for the purchase, you can cancel the transaction. This is another advantage of home inspection. You do not have to purchase the problematic property. If you do not think that the price is not right, invest your money in another property. There are a lot of properties out there. You will be glad that you did not push through with the transaction.

If you were able to agree on a more reasonable value for the property, purchase the property. It is a good thing that you had the property inspected not only because you brought the price down but it also allows you to prepare an amount for the repair. Knowing what you are about to deal
with is important in facing the problems. This will also let you know what to do. The report will tell you what to attend to first and what to do with it.

It will also affect your plans. If the report says that there are problems in the property that will prevent you from transferring, then you have to deal with them first. You have to schedule the repairs and prioritize those that have to be done before you can transfer. In order to live comfortably, you have to check if the water supply is okay, the electrical lines are secured, the plumbing checked and the like.

Do not neglect the home inspection because it will greatly help you. This will help you decide whether to continue with the purchase or not. It will also allow you to renegotiate the value of the property. Further, it will help you come up with a better plan when you decide to move in.

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Always have a home inspection done when you are planning to buy a Colorado Springs real estate. This in no way means that all the properties for sale in Colorado Springs are bad, it's just a way to be sure that the property that you are dealing in is right and and justifies its price tag. You may hire a Colorado Springs REALTOR to help you find some great properties here in Colorado Springs, one that will suit you and your family and if you have any questions about Colorado Springs commercial real estate please contact Mike Stuard.

Promises That Kill Real Estate Deals

The law is something we are all supposed to understand inherently, yet many of us do not. This is particularly true when it comes to real estate transactions. Whether you are buying or selling, there are some legal issues you need to understand.

You hear about it all the time in real estate. An issue arose during escrow and the seller promised the buyer something that would fix it. When the deal closed, however, the seller refused and the buyer was left hanging.

A man is only so good as his word. If a person says something, they should be held to it, right? We have all seen it in movies, television and the like. We were probably told as much regarding our personal lives by our family.

The idea of keeping your word is a laudable, basic lesson in life. Unfortunately, there are simply a lot of people that do not live by the notion. They will say one thing and do another. In legal terms, an oral promise means almost nothing.

Assume that I am selling my home. I get an offer from a buyer. After going back and forth, we agree to a price. The buyer, however, also wants me to throw in money for upgrading all the plumbing in the home. I agree and we shake on it.

As the days of escrow tick off, the buyer serves me with a $45,000 demand for the fix. I am outraged because I think it should only cost $8,000. We cannot agree on a middle point, the deal fails and into court we go to resolve our differences.

During trial, a funny thing happens. Both of us give our side of the story, but neither has any hard evidence to show we are right. Given this fact, how is a jury supposed to figure out the party that is correct?

A flip of the coin has as much of a chance of coming up with the right decision as a judge or jury does in this case. Instead of deciding on the merits, the decision will be based on who testifies better. This is not a good way to decide cases.

To avoid these situations, the concept of the statute of frauds has been enacted in nearly every state. This statute simply says any oral promise that has a value over a certain dollar figure is void as a matter of law. In most cases, the dollar figure is $750.

This is a vital lesson to remember when buying or selling a property. If the other side promises you something, you better get it in writing that they have physically signed. Only then can you force them to live up to their promise.

This legal issue is there to protect you. Think it through. If the other party is unwilling to put something in writing, what does that tell you? It should tell you there is something fishy going on and maybe you should pass on this deal.

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When buying a Colorado Springs real estate property, be sure that you have all the papers in place and there is nothing left to chance. Hire a reputed Colorado Springs REALTOR to help you understand the complete procedures of buying a home. One who will help you find the home that suits you in every respect. If you have any questions about Colorado Springs commercial real estate please contact Mike Stuard.

Home Selling Checklist

It's not an easy job to selling a house. It's a process. You just don't publish your house, meet a buyer, negotiate and sell it, but there is a checklist to sell your house. The home selling checklists include some procedures you must do in the correlation of home selling.

This is the checklist you must pay more attentions to sell your house:

- Decide whether you pay an agent to sell your house or you just do it by yourself. Pay a realty agent gives you a little effort for you to sell your house. An agent will carry out all of business in correlation of your home selling checklist. You just hire an agent and pay him. But it will spend costs of course. So, it's up to you to pay a little effort or bigger one.

- Be a communicative and informed seller. It is correlated with your promotion strategic. You can use media to promote your home, such as newspaper, pamphlet, DVD, or websites. Don't forget to put the reasonable and proper price for your house.

- Get your house ready to sell by doing some preparations for your house exterior, interior, and appliances.

- Decide whether you pay a professional to do pre-listing house inspection or not.

- Doing some sales of your unnecessary furniture and appliances.

- Get familiar with financing terms, such as mortgage financing (fixed, adjustable, seller financing, assumable loans), pre-qualified, pre-approved, commitment.

- Get familiar with negotiation and it stuffs, such as contract, offer, deal, etc. You should learn to do some offer approaching and all correlated with a legal transaction process.

- Know about what you can improve or not in your house, what you can improve such as interior, exterior and what you can not improve such as location, style, etc.

- Decide whether you will put a home warranty to your house or not.

- Find some tips to buy a new house while you have sold your old one.

- Decide for closing and settlement to a buyer.

- Making moving plans.

The home selling checklist above shows us that there are some involvements to sell a house. You should pay attention to home selling checklist and do the steps rightly. But if you decide to pay a realty agent to organize your home selling business, just let them carry out the points above. And your involvements in home selling will be decreased.

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A reputed and a well established Colorado Springs REALTOR will help you sell your Colorado Springs real estate and take care of all the procedure involved in the selling process. Discuss with the real estate agent how he/she plan to go ahead with the selling process. And if you have any questions about Colorado Springs commercial real estate please contact Mike Stuard for all your commercial real estate needs.

Stress- Free Moving Day

Whether moving across town or across the country, there is no denying that while going into a new home is exciting, it can also be a stressful and time-consuming endeavor. Hiring a moving company to pack, load and unpack on the other end certainly makes things easier, but still requires a certain amount of preparation and vigilance. An organized relocation will relieve a lot of the stress of moving day.

Begin by finding a reputable moving company and thoroughly checking their references, along with comparing prices of various companies. Everyone has heard a moving horror story or two, so doing the homework on moving companies is worth the effort. Once a company has been selected and a packing day has been set, it's time to get things organized.

Whether packing belongings personally or having the moving company pack everything, careful labeling of boxes is a key component of hassle-free unpacking on the other end. Merely labeling a box "kitchen" or "bedroom" isn't as helpful as knowing the contents of a box in order to better assess which box to unpack first. This may sound like a minor inconvenience, but when faced with a new house full of cardboard boxes, knowing where the coffee maker is can be extremely helpful.

Before the packers come, take some time to go through the house room by room and de-clutter. Moving is a great time to finally get rid of extra things that have been piling up. Make a pile to donate, a pile to recycle and some things may need to go to the trash pile.

Take the time to look over valuable jewelry, collections and papers. It's a good idea to move things like that personally. It's also important to known the moving company's policies on items like paint cans or propane tanks. The more things are in order on the day of packing, the more efficiently (and quicker may mean cheaper) belongings can be packed up.

After boxes have been packed and carefully labeled with an inventory of the contents, it is time to come up with an unpacking plan. Most moving companies offer a variety of services, from the basic to full-service unpacking. No matter who is opening the boxes on the other end, it's a good idea to map out where furniture should be placed ahead of time. This certainly doesn't mean adjustments won't be made once the furniture is in the house, but having a plan minimizes stress for everyone involved. Another good idea is to decide if boxes are going to be placed in individual rooms for unpacking or a general unloading area.

Before meeting the moving truck at the new home, have a list of contacts from the moving company on hand, such the person responsible for the account and the dispatcher for the truck. It's important to set up a good line of communication immediately with the workers unloading the truck. Be sure to walk through the house with them before anything is unloaded to understand exact expectations of both parties. An inventory list should be provided and take the time to check each item as it is removed from the truck. Again, it sounds tedious but tiny details matter on moving day. Preparation before packing and vigilance as things are being unloaded are the extra steps that will take the stress out of the big move.

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Buying a Colorado Springs real estate property and relocating could be one of the most important events in your life. While looking for some great property listings, you may hire the services of a reputed Colorado Springs REALTOR who will help you find a property that will suit you in all respects. If you have any questions about Colorado Springs commercial real estate please contact Mike Stuard.

Quickly Sell Your Home

When it comes time to sell your house, you will have the option of selling your house on your own, or with the help of a real estate agent or broker. There are pros and cons to both options; however your particular situation will determine which option for selling your house is ideal for you.

Before you consider selling your own home you need to understand all that is involved in making the decision. A great deal of work is necessary if you want to be successful in selling your home. Gather all the information you can on the local market and selling customs before deciding to do it yourself.

There are many advantages of selling a house on your own. For one, you are removing the possibility of the brokerage fee, which is the commission that you would otherwise have paid to the real estate agent showing your home to potential buyers.

Many homeowners would rather be in control of showing and selling their home. For some, its less stressful to decide themselves when, how and who they will show their house. For the work and time involved homeowners get to keep all the profit from the sale rather than pay out a hefty commission to a Realtor.

If you take on the challenge of selling your home you get to make all the decisions and any mistakes made fall on your shoulders. This is appealing to some homeowners. If you don’t have enough equity in the home selling yourself may be the only option.

A disadvantage to selling your home yourself may be your experience level. Are you comfortable with your judgment and do you trust your instincts? You certainly can do the job if you prepare and gain the knowledge needed but there is some risk involved especially if you are new to selling real estate.

Many do not realize the marketing and advertising costs a Realtor will incur when trying to sell a house. You must be willing to pay for enough advertising in enough places to bring the amount of interest in your home needed to make a sale.

If you decide to sell your home without a Realtor there are only two outcomes possible. If you do not do your homework you may negotiate poorly and lose any potential profit. It is also a possibility, if you gather information and prepare yourself properly, you can make a large profit including the commission you save.

All the advantages and disadvantages are crucial to the decision as to whether or not you should attempt selling your house on your own. Always think carefully before making this type if decision.

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Hiring the services of a Colorado Springs REALTOR is the best way to sell your Colorado Springs real estate property, simply because there are a lot of procedures involved in selling a real estate property and if you are doing it for the first time, chances are you could get overwhelmed with the procedures and the paper work involved. This can often lead to frustration and loss of hundreds of dollars. If you are looking to buy or sell a Colorado Springs commercial real estate, you may contact Mike Stuard for all your commercial realestate needs.

How Can You Have Profit When You Buy Foreclosed Property

If you are interested in the real estate business, you may want to know about foreclosures. Even if this industry has been removed by the nowadays economic crisis, it is still good in getting money in some other methods . Therefore , there are a great number of people who continue to engage in real estate business.

The most crucial thing to know when you invest in foreclosure is that there are a lot of details to take into consideration . You will not just need to get to know your own situation, but you will also have to learn heaps about the foreclosure process in your place. Each district has its own process for foreclosed properties.

Nevertheless, investing in foreclosed properties is not totally difficult for everyone who is interested in . If you grow aware of all the minor information, then you can definitely reach the success that you ever hoped for . You will explore what this kind of property can give you along the way.

First of all, you must know about the process of investing on foreclosed properties. Generally , a foreclosure is a property that is owned by the bank because the owner of this property can no longer pay the mortgage.

In turn, the bank has the possession of these properties and is obliged to sell them again to the public to be enable to return the money that they lost. And to go along with this, the bank v naturally | normally } tries to sell foreclosed properties immediately since they are not getting any income in holding on to them. The longer the property remains under their supervision, the lower the probability of selling it. All of these things are considered to be profits to individuals who are eying for foreclosures.

When you begin to invest on foreclosure, you do not really must undergo complicated procedures, compared to the ordinary home buying process. Once you understood how foreclosure works, it will be simple for you to look for suitable properties.

There can be a lot of ways on looking for foreclosed houses, and you have to look into each option so that you can make the best selection. Try to search the newspaper and on the internet. There are a great quantity of listings under this sort of property.

As soon as you are ready to buy a foreclosed property you need to familiarize the steps that are demanded in your region . Buying foreclosures varies in every region. There are people who have foreclosure auctions in a week.

As a result, investing in foreclosed property can be a great form of earning money. You may have to get to know the real estate business before you start. However, after becoming familiar with the main operation, everything will all be easy for you. This is when you will understand what foreclosure investing can give you.

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If you are looking for foreclosed properties in the Colorado Springs real estate market, you can hire the services of a reputed and well established Colorado Springs REALTOR who will not just show you such properties but will also help you with all the necessary procedures required to own one. If you have any questions about Colorado Springs commercial real estate please contact Mike Stuard.

How To Sell Your House For More And Build A Better House For Less

My father always told me Real estate is a good investment because they do not make it anymore. Because real estate companies are so busy these days they will be thinking more of listing more homes than your welfare.

If you plan on selling and moving, you will need to take some simple steps to get the most money you can.
Most Real Estate companies do a good job but in a sellers market you can probably sell your home yourself. Anyway, if you have the time it will not hurt to try.

Do not believe the radio ads with the exaggerated problems. If it does not sell then you can always call the pros in latter. The internet has been a blessing to the average person and it is getting better every day.

Not only can you sell many things you do not need anymore, you can even sell your home on the net. Thousands of people visit sites like this looking for a new home. Even if your home is with a Broker, you can still speed things along by putting low cost ads on the internet.

First, you need to get your home ready to show. Buyers like homes that are clean with as few of your things as possible lying around so it is time to do a spring-cleaning. Some big furniture may cost more to move than its worth so sell these things locally. You may want to buy new things later anyway.

Look around for small stuff you do not want and sell it on eBay. What is left is stuff you cannot live without or it is just junk. If you are not sure then ask your wife people, she will point out the junk to you.

Most people have collected too much stuff over the years and consider renting storage for a month or two and this is good. But let me tell you that long term storage is not worth it. The cost's can overrun the value of the items before you know it and you are still left with old things.

Clean out the garage and hose it down to get rid of dust and spider webs. Men like garages and want to picture their tools and things there. One of the best home improvements that dosen't cost a lot of money is pant, especially if you don't mind doing the labor.

Ever notice how guests always end up in the kitchen? Most people like kitchens and this is the first room to remodel or just clean and paint. The next most important room is the bathroom. Repair leaks, rust spots, and replace the little things that seem to get ugly over time. If you have pets make sure you don't have a cat litter box sitting around smelling up the place.

Homeowners get used to their own smells and cannot smell a thing but your visitors sure can!
Big dogs scare some people (not me) and maybe it would be best to let Bruno visit Uncle Pete for a few weeks. After you finish with everything, invite some friends over for a party and get some feedback on how everything looks.

When everything looks good it is time to take some pictures. You need good clear pictures to post on the net and mail to interested buyers. If you are not experienced at photography, find someone that is.

Good photography takes years to learn and that is what you need now. I have tested photos of my products on eBay and believe me it makes a big difference. Remember, a picture is worth a thousand words.

If you use a Real Estate broker, select one with lots of experience. I like the larger companies because they give you lots more exposure through their advertising and intercity referrals. Buyers trust them more also.

The small cut-rate company's may be slower to find a buyer and fix problems. When you are ready to move be careful to pick an honest moving company. Many of them have been holding truckloads of belongings and demanding more money. Pick one with a good reputation.

Building Another House And Saving Big

In the early 90s my family and I built our own home. No, we did not hire a contractor we did it ourselves in about a year. We saved a lot and you can also by doing most of the work yourself. I know what you are saying, It is a big project and you do not have the knowledge and time to do all that work.

My wife and son who was ten and myself while holding a full time job did almost everything but the concrete. There are companies on the net that offer the whole package and will help you every step of the way. One of these is Endeavor homes and there are others.

If you do not know something, you have to ask someone that does. I did not know plumbing at all so the local plumbing supply made a deal with me. Careful now, notice that I said local professional plumbing supply not Home Depot. They deal with pros and know everything about plumbing.

So get down there and ask. It is the same with electric. You must ask people who know in exchange for buying your supplies there and only professional suppliers know enough to help you. It is worth the little extra money for all that information.

I wish you wonderful success!

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Whether you hire the services of a professional Colorado Springs REALTOR or not, there are some fantastic properties available in the Colorado Springs real estate market. You can even look at some of these properties from investment point of view. If you wish to invest in Colorado Springs commercial real estate, you may contact Mike Stuard.

How To Use A Mortgage Refinancing Calculator To You Advantage

One of today’s most useful tools for helping you to budget your mortgage is a mortgage calculator. Most mortgage calculators are free to use and can provide some very helpful information that will assist you in finding the perfect mortgage fit for your needs.

Helping With The Changes

Alternatively, if you are an algebra freak and think that you would love the calculation part and do not require the handy mortgage rate calculator, it is time that you reconsider it. A mortgage rate calculator is not just a calculator to help with the confusing numbers but is also devised to better decipher and thus help analyze the complications entailed in the ever increasing changes of a lender-borrower market.

To use a mortgage calculator you will need to provide the amount of the mortgage principle, your interest rate, the amount of your property taxes, and private mortgage insurance if you pay it. The calculator will figure your payment amount and show how the interest is paid over time. Mortgage loans are front loaded with interest; at the beginning almost all of your payment is pocketed by the mortgage lender for the interest due. As time passes, the ratio of interest to principle gradually reverses and more of your payment goes to pay back the loan.

If you are in the process of refinancing our mortgage a mortgage calculator can help you budget to avoid taking out more mortgage then you can afford. There are dozens of free mortgage calculators available online for you to use; your mortgage lender of choice will probably offer one on their website as well.

So, if you’re in the process of refinancing our mortgage you might want to use a mortgage calculator so that you can avoid the mistake of taking out more mortgage then you can afford.

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Use the mortgage calculator to assess you financial position when buying a Colorado Springs real estate. A reputed and well established Colorado Springs REALTOR should also be able to help you find some great real estate properties. You may also contact Mike Stuard, if you cra considering buying a Colorado Springs commercial real estate property.

Buying a foreclosure? Buyer beware!

Every day, I see the media touting what great deals exist today are on distress sales — foreclosed homes and short sales. The reports I’ve seen tend to minimize the downside of buying distressed properties. Here are several things to be cautious about when deciding to buy a distressed property:

Foreclosures

Pricing: Most banks hire experienced real estate brokers or appraisers to give them more than one opinion of value. While there are some cases where banks have accepted offers 10% less than the listed price, in most cases, the listed price takes condition and marketability into consideration and the property is priced to sell quickly and with as few complications to the lender/asset manager as possible.

Buyers who jump into the foreclosure market thinking they are going to make offers of 10, 20 or 30% under the list price will waste their time and effort. They will quickly discover they are competing with multiple offers from cash buyers and 20% down conventional mortgage buyers.

Why are foreclosures priced so low? One, banks cannot lend money when their assets are tied up with bad loans. They need to dump them at any cost. Two, they have so many bad loans on their books that their asset managers cannot be bothered with buyers who want things fixed, like bad furnaces, water damage, etc. They price them to get rid of them as easily and quickly as they can.

Buying As-is: Buying as-is means as-is Many foreclosed homes have no utilities operating no lights, no gas, water lines disconnected, etc. Some have been winterized properly; some haven’t been winterized at all. Even if it appears to be winterized, there is no way to tell if it was winterized before freezing weather did damage.

Many lenders and third-party foreclosure companies will NOT agree to turn the utilities on for a buyer to perform inspections. If there are competing offers, they will most likely choose to accept the offer that waives any and all inspections (i.e. the buyer is willing to assume all risk regarding frozen pipes, bad furnace, etc.)

In some cases, a lender/asset will allow a buyer to pay to connect utilities (in the buyer’s name), pay for any and all utility connection fees, pay to de-winterize the property and pay to re-winterize it after inspections, provided they get it all done in 5 days!!

Preparation: Lenders/asset managers will require a minimum $1,000 earnest deposit, usually in certified funds (bank money order or cashier’s check), made payable to and held by the lender’s title company. Imagine how difficult it will be to get that earnest deposit back if the inspections reveal major problems and you want to get out of the deal!

They will also require a Letter of Prequalification attached to the buy/sell agreement. They won’t even look at your offer without one.

Financing: Most first-time home buyers want to finance FHA or some other low-down payment program. FHA will (obviously) not underwrite a home purchase where the collateral (the house) may have water damage, a bad furnace, etc. The FHA appraiser will require inspections be performed so the buyer, if they wish to continue with the transaction, must pay to have the lights turned on, etc. (see Paragraph 2 above). With those costs added to a normal set of inspections structural, electrical, heating & cooling, plumbing, radon, termite, and, where applicable, fireplace and chimney, swimming pool and equipment the inspections can easily exceed $1,000, money that is lost if you choose to walk away.

Even private mortgage insurance options will require a full range of inspections.
Before you jump on the Foreclosure Bandwagon, know what you’re getting into!

Short Sales

As if buying foreclosures isn’t difficult enough, wait till you try to buy a short sale property (a home being sold for less than what is owed on the mortgage.) Many short sales properties are abandoned and face the same risks as foreclosures. But there are three big, additional headaches in attempting to buy a short-sale property:

Realtors are listing properties at prices they know the banks will not accept. Buyers are chasing after homes listed at, let’s say, $100,000, but the bank is owed $150,000. The Realtor knows good and well the bank will not accept $100,000, but is throwing in on the MLS wall to see if it sticks. If they get an offer for $100,000 (or even $110,000), the Realtor will submit it to the lender and see if it flies. Usually, the lender will counter at $130,000, for example, and the buyer will walk away angry (rightly so) because they offered full price or more and still didn’t buy a house.

Lenders have very little incentive to make a decision. Be prepared that you may not hear a decision from a bank on your offer for weeks or even months. One short sale in my office took 10 months for the bank to respond.

Short sales are notorious for sitting on the desk in a bank’s Loss Mitigation Department. Foreclosures are their first priority and there are more than enough to keep them busy.

Lenders have little incentive to accept an offer. Why? If the property was underwritten by F.H.A. or P.M.I., The bank has no incentive to take a loss. They may get more money by foreclosing and having the insurance pay them off.

If you still want to pursue buying distressed properties after reading this, choose a Realtor who is knowledgeable about the pitfalls. He or she will most likely know how to deal with them as expeditiously as possible.

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A reputed Colorado Springs REALTOR will help you find the perfect Colorado Springs real estate property that suits your style and budget. If you have any questions about Colorado Springs commercial real estate please contact Mike Stuard.