Colorado Springs Vintage Homes Blog » For Sellers

Short Sale Addendum help answer questions

Kathy Torline — Mon, 14 May 2012 14:00:16 +0000

Mandatory Colorado Short Sale Addendum is part of the contract

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It continues to look like short sales in Colorado Springs are going to be here for awhile longer, and they are definitely a viable option for some buyers. Even though they can take some time to get short the sale acceptance from the lien holders, for a patient buyer, they can definitely be a good deal.

Having written two short sale offers this week for buyers, I thought it would be a good topic to discuss the short sale addendum that is required in Colorado. The Colorado Real Estate Commission has came up with a couple of forms called a “Short Sale Addendum.” These forms try to cover some of major and minor complexities a short sale brings to the purchase and sale of property.

The addendum should be included with the Contract to Buy and sell Real Estate between the buyer and seller and has several key points.

** The buyer enters details on how long the seller has to submit the short sale information to the lien holders.

** The buyer can also say how long they will wait for short sale acceptance.

** The buyer can also check a box regarding Early Termination that says either the seller or the buyer can terminate at any time with written approval. This is a very helpful clause for a buyer who has waited for months for approval; and essentially just wants to give up on this property and find something else.

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Kathy (719-287-1049) KTorline@msn.com

Disadvantages of buying a new home

Kathy Torline — Tue, 08 May 2012 13:15:32 +0000

Interested in buying a new home in Colorado Springs

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I certainly understand the appeal of buying a new home. Nothing better than being the first owner of a house; everything new, everything in good shape. BUT, there are some disadvantages to buying a new home. Since I spent part of this week looking at new builds and visiting model homes; it reminded me of some of these disadvantages.

Window coverings not included. Don’t underestimate the cost of what it will take to get window coverings on all your windows. If you are buying a $300,000 to a $500,000 home, I’m guessing you don’t want the cheap $20 blinds that you can buy a Home Depot. Make sure and include this in your budget

Landscaping is also important to include in your budget. Many of the communities include front landscaping, most don’t include back landscaping. But some new communities don’t include it and they required the landscaping to be completed within 6 months to a year after you move in. By the time you put in sprinkler systems, install sod, put in bushes, trees, rock, etc, it doesn’t take long to spend $5000 to $10000; and even more if you have to put in retaining walls or terraces for sloped lots.

And then there is the lot premium for the more desirable lot. The large cul-de-sac lot, or the lot with the great view can cost anywhere from $20,000 to $100,000 more. Granted the lot a house sits on is extremely important, but almost always you won’t get that money back when you go to sell it. There is some consideration in the resale market for a nice lot with a view, but it’s not even close to the amount charged when you originally buy the property.

Also, if you need to sell within a year or two, you are competing against the other homes that are still being built and can be customized. Buyers will almost always choose a brand-new home rather than a 1-year-old home.

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To find out more information about buying a home or an investment property in Colorado Springs area, call ….

Kathy (719-287-1049) KTorline@msn.com

Less Inventory = a more stable Colorado Springs housing Market

Kathy Torline — Thu, 03 May 2012 12:58:35 +0000

Colorado Springs housing inventory is down

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Why should you care that there is less inventory on the market?

Real estate has always been about supply and demand. When there are more houses on the market then the demand, the market conditions start to adjust and pricing goes down. When there is less houses on the market, pricing starts to stabilize and go up. As the information listed below, housing inventory, is down. In fact, it’s way down.

I’m not sure if this means we are going to start to see a rise in pricing, but I do think the market has hit bottom. As usual, time will tell ………………

Existing Single Family Homes on the Market

April 2012 4,433 Sales 2,289

April 2011 4,866 Sales 2,252

April 2010 6,228 Sales 2,382

April 2009 5,304 Sales 2,009

April 2008 6,787 Sales 2,298

April 2007 6,372 Sales 3,007

April 2006 6,114 Sales 2,725

April 2005 6,512 Sales 2,659

April 2004 6,181 Sales 3,068

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To find out more information about buying a home or an investment property in Colorado Springs area, call ….

Kathy (719-287-1049) KTorline@msn.com

Don’t forget about the pipes

Kathy Torline — Thu, 08 Mar 2012 16:32:14 +0000

It’s important to check the sewer lines in older homes

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If you are looking at buying an older home in the Colorado Springs area, especially a Historic Home, don’t forget about inspecting the sewer pipes.

Why should I check the sewer lines?

Sewer lines are buried underground and are susceptible to intrusions like tree roots and excess waste products and paper, not to mention the general aging of the pipes. Common sewer line problems can include roots in the lines, holes, cracks, and pipe separation.

Once tree roots get into sewers, they are often expensive and messy to deal with. It can mean calling in a backhoe to dig up the your yard which adds additional costs to the sewer replacement. Also, it can bring up interesting questions, such as what if your neighbor’s tree rots finds its way into your pipes?

A residential sewer is critical in the proper operation of the whole home’s plumbing system.

Should I get my pipes replaced?

There are several different types of sewer lines, including clay (85+yrs old), cast iron (50+yrs old) and ABS or PVC. Clay can collapse on its own as it ages and can be expensive to replace. Some experts believe that cast Iron, is the best. A plumber can advise you whether you should get the pipes replace or not.

What is a sewer scope?

A sewer scope is a fairly inexpensive procedure performed by an experienced plumber, involves inserting a cable into the sewer line from the main in the home or in the clean out all the way to the connection with the municipal sewer or a septic tank. The clean out may be located in the basement, crawlspace or outside where the sewer line exits the home.

On the end of the cable is a tiny television camera that “scopes” through the pipes and detects blockage, breaks and potential clogs in the line. These images can be recorded on a DVD and may be reviewed by the homeowner and/or prospective buyer to verify the condition of the sewer line.

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To find out more information about buying a home or an investment property in Colorado Springs area, call ….

Kathy (719-287-1049) KTorline@msn.com

Cash continues to drive the REO Market

Kathy Torline — Wed, 25 Jan 2012 13:10:08 +0000

Cash is still King

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There was an interesting article in DS News about how cash investors are pushing down prices. According to a quote in this article “In December 2011, data collected for the HousingPulse Survey shows that the overall proportion of cash buyers in the housing market surged to a record 33.2 percent, up from 29.6 percent a year earlier.” There is also a Press Release put out by Campbell, that essentially was repeated by DS News.

I did a quick calculation of Colorado Springs home transactions for 2011 and came up with the following information on what type of financing was used for home purchases in the area;

Cash 19%

Conventional Financing 31%

FHA Financing 19%

VA Financing 31%

One of the reasons that the numbers are different from the national average in the Colorado Springs Housing market, could be because of the strong military presence in the area which is shown by the 30% of home buyers that use VA financing.

This article has several key points on why they think cash buyers were bringing down prices

More cash buyers are the winning bidders on REO properties, and REO banks prefer transactions that can close within 30 days
Even though investors may not be the first offer accepted, they often end of getting the property because other buyers can be eliminated because of lengthy mortgage approval timelines. Since cash sales can typically close in 20 to 30 days and financed offers, especially VA and FHA can take closer to 45 – 60 days, REO banks have a strong preference for cash.

In my opinion, investors are important in this market. They often buy homes that are distressed and can’t be financed because of the condition of the property. If the house is in disrepair, most lenders don’t want to lend on them. As an example, the roof may be in bad shape, plumbing may not work, the house may have been stripped of all of the appliances and cabinets by the foreclosed home owner. Seems to me it’s much better to get the house sold, and fixed up, vs. letting it sit empty. (Although I have to admit that I’m biased, as I’m also a real estate investor).

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To find out more information about buying a home or an investment property in Colorado Springs area, call ….

Kathy (719-287-1049) KTorline@msn.com

Don’t Assume anything in Real Estate Series, #1

Kathy Torline — Thu, 19 Jan 2012 14:01:23 +0000

I’ve decided to start a new Series, Don’t Assume Anything in Real Estate.

This series is really just a bunch of random articles about the many assumptions buyers and sellers make when selling, leasing, or purchasing a home.

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You aren’t under contract yet!

Some buyers are under the mistaken impressions that once they write an offer on their dream home, or their first investment property, they are under contract to purchase the home. This is definitely not correct.

After they put together their offer, their Buyer’s Agent submits the offer to a Listing Agent, and the offer is then presented to the seller. The seller has many options on how they respond.

They can reject the offer and not respond.
They can counter the offer
Or they can accept the offer.

THE MOST IMPORTANT THING TO UNDERSTAND ……….. Until the offer is completely accepted and all of the appropriate documents are signed and acknowledged, a buyer and seller are not under contract. Another offer can always be presented to the seller from a completely different buyer and the seller can accept it.

The terms “under contract” may seem like a technicality, but it’s not. After a seller presents a counter-offer to the buyer, it’s important to remember that another offer can come in on the property and the seller can certainly accept it.

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To find out more information about buying a home or an investment property in Colorado Springs area, call ….

Kathy (719-287-1049) KTorline@msn.com

3 reasons to get building permits

Kathy Torline — Wed, 14 Sep 2011 15:00:03 +0000

3 reasons to get a Building Permit in Colorado Springs

Some people complain about getting a building permit from the local code enforcement office for changing something in their house, erecting a deck, adding a garage or making any other improvement to their property. I think it’s very important to get permits.

Before you start your next home improvement project, here’s 3 reasons to get a building permit:

It might be a law that if you make enhancements of a certain nature to your property you must get a building permit to begin the work.
The permit keeps everyone honest. There won’t be any shortcuts by the contractor that might affect your investment or safety. If there have been shortcuts that affect safety, the code enforcement officer would typically find it.
You get free inspections of the work the contractor does. The code enforcement officer typically comes out to check the work and to ensure the work is up to code. Wouldn’t you prefer to know about problems on your your remodeling project? Especially before you make the final payment to your contractor.

As an example, we’re currently getting the electric panel upgraded on a Colorado Springs rental house that my husband and I own. Even though we’ve done our homework on the contractor we’ve hired, we won’t know if the work is “up to code”, as we’re not trained electricians. Pikes Peak Regional Building will come out and inspect the work to make sure it meets code requirements. It certainly gives me peace of mind.

According to information on the Pikes Peak Regional Building web site, “The main goal of the Department is to safeguard life and limb, health, property and public welfare by regulating and controlling the design, construction, quality of materials, use and occupancy, location and maintenance of all buildings and structures within all zoned areas of El Paso County through the enforcement of minimum building code standards.”

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To find out more information about buying a home in Colorado Springs or Manitou Springs, call ….

Kathy (719-287-1049) KTorline@msn.com

Don’t forget about the outside

Kathy Torline — Wed, 03 Aug 2011 14:00:51 +0000

The outside is just as important as the inside

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In today’s age of Internet savvy buyers, the pictures of a property that are posted online are everything. And lately it seems like more and more buyers focus just as much on the outside of the property, including the landscaping, the backyard, the deck, the hot tub, the views, the front porch; just as much as they focus on the inside of the property. They are buying more than a home, they are buying a lifestyle.

Many buyers moving to Colorado Springs are doing so because they want to enjoy the beautiful views and the outside space; yet over and over I see listings that don’t include any outdoor pictures. Too bad for the sellers, as the outside can be just as important as the inside.

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To find out more information about buying a home or an investment property in Colorado Springs area, call ….

Kathy (719-287-1049) KTorline@msn.com

It’s taking longer

Kathy Torline — Wed, 27 Jul 2011 13:16:08 +0000

Why should you care about Days on Market?

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Colorado Springs on list of most affordable Homes in Colorado

Why should you care about Days on Market? Why is this number important? Sellers know that the longer their house is up for sale, the less likely they have of being offered their asking price and are often willing to discuss a lower price. Buyer’s often look at properties and want to know the Days 0n Market; and essentially the longer the property has been on the market, the more buyers think they are in a better negotiating position.

But just as important as the current days on market, is the trend for the days on market. If the days on market continues to drop in a neighborhood, the market is starting to become more of a seller’s market in this particular area; and the more the days on market continue to increase, the more the housing market in this particular area becomes a buyer’s market.

Here’s some of the facts about days on market in Colorado Springs:

Single Family homes in the Colorado Springs area lingered on the market this year 136 days as of June 30th versus 105 as of June 30th, 2010.
It took an average of 31 days longer to sell single-family homes in the Colorado Springs area in June 2011 than it did in June 2010.
The average days on the market for June was 90 days for the 2nd quarter in 2011 vs. 70 days for the same quarter in 2010.
Denver is currently at 86 days for a house to sale. Phoenix is 106 days on market. Las Vegas is 159 days.
Breckenridge is 90 days. Pueblo is 125 days. Fort Collins is 59. Aspen is 300 days.

I know I always write articles about real estate is local, but this chart really shows the differences in the Colorado Springs area. The shortest days on market in the area is 78 days in the Southeast, which also happens to be one of the lowest priced areas in the city. The highest days on market are in Black Forest and Manitou; which are areas where the house prices are above the average in Colorado Springs.

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To find out more information about buying a home or an investment property in Colorado Springs area, call ….

Kathy (719-287-1049) KTorline@msn.com

More Research required

Kathy Torline — Tue, 19 Jul 2011 12:12:23 +0000

The El Paso County Assessor’s office provides a wealth of information

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One of the many things I do when I’m getting ready to write an offer for a buyer, is to look at the property at the Assessor’s Office. In El Paso County, the Assessor’s web site site, provides a wealth of information for perspective buyers.

In El Paso County, you can search by address, by a range or addresses, by Schedule Number, of by Last name.

Once you go to a specific Colorado Springs address, or schedule number, the web site will tell you the owner’s name, the owner’s mailing address; as well as it will give you the legal description of the property. It also includes information on the assessed value.

Part II of this article, will show you how to find information on previous sale information, assessor maps, year built, and square footage.

Remember Knowledge is Power

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To find out more information about buying a home or an investment property in Colorado Springs area, call ….

Kathy (719-287-1049) KTorline@msn.com

Colorado Springs Vintage Homes Blog » For Sellers

Short Sale Addendum help answer questions

Mandatory Colorado Short Sale Addendum is part of the contract

Search for Colorado Springs Short Sales

Disadvantages of buying a new home

Interested in buying a new home in Colorado Springs

Less Inventory = a more stable Colorado Springs housing Market

Colorado Springs housing inventory is down

Don’t forget about the pipes

It’s important to check the sewer lines in older homes

Cash continues to drive the REO Market

Cash is still King

Don’t Assume anything in Real Estate Series, #1

You aren’t under contract yet!

3 reasons to get building permits

3 reasons to get a Building Permit in Colorado Springs

Don’t forget about the outside

The outside is just as important as the inside

It’s taking longer

Why should you care about Days on Market?

Colorado Springs on list of most affordable Homes in Colorado

More Research required

The El Paso County Assessor’s office provides a wealth of information