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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 »
9 key things to know about buying a bank repo
Do you want to buy a bank-owned property in Colorado Springs?
Understand the Differences
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Buying Bank properties is very different than buying a home from a regular seller. Make sure you and your Realtor have discussions about what makes them different, as bank-owned properties aren’t for everyone. Here’s some of the big differences
(1) “As-is”: Most banks won’t repair anything in the property, the property is sold “as-is”. Although there are starting to be some exceptions to this and some banks are starting to fix up the properties, most are sold “as-is”.
(2) No Seller’s Disclosures: The banks typically won’t give out any Seller’s Disclosures or Square Footage Disclosures as they don’t know anything about the property. Hence, it all up to the buyer to do their due diligence.
(3) Response Time: Sometimes banks respond quick and fast when they receive an offer; but many times it can take days, or even a week to get a response to an offer. Read the rest of this entry »
Appraisals and Inspections, 2 important steps for home buyers
The following information is the fifth in a series of Buyer Tips to provide tips for both the first-time home buyer and the most experienced home buyer. The goal is to help the consumer to become better educated about purchasing real estate in Colorado Springs and the surrounding area. This article includes tips #11 through 15.
For a FREE Buyer’s Guide, Email KTorline@msn.com
11. When making an offer to purchase a home, consider any minor repairs or defects when determining your offer 
price. If there are items you wish to be resolved at the time of purchase, include those items on the Purchase Contract.
12. Understand that the appraiser and the inspector are two different people. The appraiser is hired by the lender to determine whether sufficient market value in the property warrants making the requested loan. The home inspector is hired by the homebuyer to conduct a general home inspection, or a more specific inspection for environmental issues, such as lead-based paint, radon, asbestos, mold, etc.
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Home inspectors are NOT licensed in Colorado. and you should choose a home inspector who is a member of the American Society of Home Inspectors (ASHI). (See my previous post: One way to find a good home inspector)
13. Attend the property inspections. A good inspector will show you problems and potential problems with a property, but will also give you tips on how to care for a house.
7 important things to know about FHA Loans
Colorado Springs Vintage Homes is happy to feature a great article by
Harry Venik with Adams Mortgage, LLC
For a free Buyers Guide, Email Kathy Torline at KTorline@msn.com
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The Advantages of FHA Loans
The following are a just a few of the recent changes that have made FHA loans a more attractive option again for some consumers looking to buy a new home or refinance an existing one:
(1) Congress passed the Stimulus Act of 2008. During the recent housing boom, home values sur
passed FHA loan limits in many regions of the US. The recent enactment of this important legislation, however, increased FHA loan limits up to $729,500 in many high-cost regions of the US through the end of the year. FHA loan limits vary by county; current limits for El Paso County $ 325,000(1unit ), $ 416,050 (2units), $502,900 (3units), and $ 625,000 (4units).”
(2) The FHA has changed its appraisal and fee negotiating guidelines. In the past, many sellers steered clear of FHA loans because the appraisals were too strict and certain fees were non-negotiable. The FHA has greatly loosened these guidelines to make it easier for both buyers and sellers. Read the rest of this entry »
