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Don’t Assume anything in Real Estate Series, #1
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 Read the rest of this entry »
7 things to know about Bank addendums and Foreclosed Homes
Want to buy a Foreclosed Home for Sale in Colorado Springs?
Get ready to sign the bank addendum
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Bank addendum’s can be scary documents for buyers to sign; as they are completely in favor of the bank, who is the seller. Colorado Real Estate Contracts are considered very “buyer
friendly”, but addendum’s for bank-owned properties gives up many of the rights the buyer usually has when buying a home
1. “As-Is”: The addendum will state (usually several times in several places, that the Buyer accepts the Property in “AS IS” condition at the time of closing, including any hidden defects known or unknown. It will remind the Buyer that it is the right and responsibility of the Buyer to inspect the Property and the Purchaser must satisfy himself/herself as to the condition of the Property.
2. Inspections: Regardless of the dates written in the Colorado Real Estate Contract, the addendum will set out the terms and deadlines of the inspection. It also will say something about the Buyer acknowledges and agrees that he/she is not relying on any statements or representations made by the Seller or Seller’s agents (including but not limited to information disclosed in the MLS) as to the condition of the Property and/or to any improvements.
So regardless of the verbiage and statements in the MLS, it’s up to the Buyer and the Buyer’s Agent to do their due diligence.
3. Earnest Money. More and more banks are asking for 10% Earnest Money in the form of a certified Check. The addendum will normally state the terms of keeping the Earnest Money. It may say something like ……….. In the event Buyer defaults in the performance of this Contract, it is expressly agreed that the entire earnest money deposit shall be paid to Seller as liquidated damages for, among other things, the additional cost of carrying the Property and lost marketing time which the parties acknowledge and agree are difficult to calculate.
4. Locks and Utilities: The addendum will often times explain who is responsible for changing the locks before or after closing; as well as information that the buyer needs to get the utilities changed to the Buyer’s name after closing.
5. Assignment of the contract: Some addendum’s will allow the contract to be assigned and some won’t. It’s important to understand the options.
6. Risk of Loss: If the property becomes damaged before closing, the addendum will typically explain what the seller will or will not fix and the buyer’s options to accept the damaged property in “as-is” condition.
7. Survey: The addendum will typically explain that if the title company requires a survey, it’s the Buyer’s Cost to get the survey.
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Kathy (719-287-1049) KTorline@msn.com
Colorado Real Estate Contracts are changing in 2011
2011 brings all new Colorado Real Estate Contracts
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The one thing you can count in Colorado Real Estate is constant change. There are all new contracts for 2011, and here’s a quick summary of the some of the changes in new 2011 Colorado Real Estate Contracts and my interpretation of the contract. If you would like to see the new forms, here’s the link to Colorado Division of Real Estate.
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The new contract states ………… If any fixtures are attached to the Property after the date of this Contract, such additional fixtures
are also included in the purchase price. My Interpretation, if the contract is signed, and the seller (owner of the property) puts in a new built-in stove; that new stove is now included in the contract. -
On Line 111 and 112 the new contract states…………… Seller concessions shall be reduced to the extend it exceeds the aggregate of what is allowed by the Buyer’s Lender, but in no event shall Seller pay or credit an amount for Seller Concession that exceeds the lesser of (1) he states amount for Seller Concession of (2) Buyer’s Closing cost. My interpretation of this, if the Buyer has negotiated $4000.00 in closing costs but there are only $3500.00 in allowable closing per the lender, the Seller can’t give a check to the buyer for the unused closing costs.
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Line 227 states …………… If FHA or VA Appraisal is checked, the Appraisal Deadline (3) does not apply to FHA or VA Guaranteed loans. My Interpretation, if the Buyer’s Agent puts a date in the contract for the appraisal deadline and it’s an FHA Loan, the date does not apply.
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Line 378 & 379 states ……. Buyer acknowledges that Seller is conveying the Property to Buyer in an “as is” condition, “where is” and “with all faults”. My interpretation, the property is sold as is; which can still be subject to an inspection, but the seller may or may not make any repairs to the property. Read the rest of this entry »
8 biggest mistakes made by home buyers
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Biggest mistakes that home buyers make
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(1) Home Buyers don’t think about resale before they buy. Every house will be resold at some time in the future.
(2) Home Buyers base their decisions on what they hear in the national news. They need to remember that real estate is local; not national. Read the local Colorado Springs newspaper and watch the local news, hire a local Realtor.
(3) Home Buyers only talk to one lender. They need to shop for a loan, just like they shop for a house. Ask your Colorado Springs Realtor for some referrals.
(4) Home Buyers don’t understand the benefits of using a Buyer’s Agent. They should interview an agent who represents them, and make sure they specialize in buyer representation.
(5) Home Buyers don’t read and Read the rest of this entry »
