Colorado Springs Vintage Homes Blog
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Real Estate Agents have a fiduciary relationship
Fiduciary Duties
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- Real Estate Agent or Realtor? What’s the difference?
- How to choose a Buyer’s Agent
I came across a great article in the Gazette over the weekend about Fiduciary Responsibilities. It was informative, well-written, and very much applies to Colorado Springs Real Estate and Realtors. My favorite quote from the article written by Jim Flynn ”The law expects more of 
fiduciaries than others who have legal duties to another person.” Some examples of professional who have a fiduciary responsibility are trustees, executors, and guardians, as well as Realtors.
You may wonder what all of this has to do with real estate. The answer is, it has everything to do with Realtors and real estate in Colorado and it starts with an understanding of agency in Colorado
Agency and Real Estate
Colorado is considered an agency state, and Real Estate Agents have 2 choices of how they represent clients. According to the information in the Colorado Real Estate Manual:
Home sales in Central Colorado Springs continue to be brisk
Colorado Spring Real Estate
Market Report for homes in Central Colorado Springs – Single Family Homes
Search for Homes in Central Colorado Springs
The Central part of Colorado Springs housing market continues to be a NEUTRAL Market, as there is currently a 5.66 month of supply of homes on the market. A 6 month supply of houses on the market is considered a “NEUTRAL MARKET”. Sales were only down 16% from 2008 to 2007, but average pricing was down 5% from 2007 to 2008. 395 single family homes have been sold in 2009 vs. 467 for the same period in 2008; a decline of 15%.
70% of Foreclosed Properties go under contract in less than a week
Sunday bargains – Homes in Colorado Springs
Foreclosure Listings in Colorado Springs as of July 3, 2009
During the week of July 6th, 64 bank-owned properties came on the market; 45 of them are are already under contract, or pending.
For a FREE list of up-to-date Foreclosure Homes, Email KTorline@msn
What can I expect to pay?
WHAT CAN I EXPECT TO PAY?
For a FREE List of Foreclosures email Kathy Torline at KTorline@msn.com
I am consistently asked by buyers how much they can expect to pay for Colorado Springs foreclosures. My research shows that short sales and foreclosure sell for right around 95% to 99% of the list price. If you think you will get a Colorado Springs foreclosure or a Colorado Springs short 
sale for 50% off, you are wrong and wasting your time. These homes are already priced aggressively and ready to move.
Colorado Springs Foreclosures May 2009
- 153 Foreclosures Sold (16% of the total sales for the month)
- $157,454 Average Sales Price
- 98% Sold for Price vs. List Price
- Average days on market: 72
Colorado Springs Short Sales May 2009
- 53 Short Sales Sold (6% of the total sales for the month)
- $176,960 Average Short Sales Price
- 98% Sold for Price vs. List Price
- Average days on market: 167 Read the rest of this entry »
84% of Colorado Springs foreclosed homes went under contract in a week
Sunday bargains – Homes in Colorado Springs
NEW Foreclosure Listings in Colorado Springs – for the week of June 15, 2009
During the last 7 days, 51 bank-owned properties came on the market; 36 of them are already under contract or pending. 84% of these new listings went under contract in a week.
For a FREE list of up-to-date Foreclosure Homes, Email KTorline@msn
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.
Foreclosures represent 33% of the closed sales
Foreclosure bargains in Colorado Springs?
Many home buyers say that foreclosures are a bargain and are increasingly eager to buy them, according to a Harris Interactive survey conducted for Trulia.com and RealtyTrac.
The survey found that 55 percent of U.S. adults are at least somewhat likely to consider purchasing a foreclosed home, up from 47 percent who answered the same question in November 2008. Although I don’t have any data to back this up, I think these numbers seem very similar to what I’m finding in the Colorado Springs area from home buyers.
The report is also full of interesting tidbits, including that 40 percent expect to pay at least 50 percent less for a foreclosed home. The Colorado Springs real estate market does have it’s share of bank-owned properties for sale; and the good deals go quick and fast; they don’t last on the market and many of them get multiple offers. They are definitely not 50% less than market prices; more like 15% to 25% less than market price. All of these things made me wonder how much of the sales in the area for last 5 months have been bank-owned. Consequently I did some quick market stats; and 33% of the closed sales in 2009 in the Colorado Springs area were from some type of foreclosure or pre-foreclosure property.
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Related Articles:
To find out more information about buying a foreclosure in Colorado Springs, call
Kathy (719-287-1049) KTorline@msn.com
Colorado Springs Homes for Sale — New Foreclosure Listings For week of May 16th
Saturday bargains – Homes in Colorado Springs
NEW Foreclosure Listings in Colorado Springs – for the week of May 17, 2009
For a FREE list of up-to-date Foreclosure Homes, Email KTorline@msn
Related Articles:
- Don’t let your dream house become a nightmare
- Homes sold “As Is” in Colorado Springs….what does it mean?
- Homes in Colorado Springs, 5 things to know about buying foreclosures
- Buying HUD homes in Colorado Springs, Part I
- Buying HUD homes in Colorado Springs, Part II
- Colorado Springs HUD Homes – Part III in FAQ’s
- HUD homes available for $100.00 downpayment
6 BIG advantages of VA loans
VA Loans
For a free Buyers Guide, Email Kathy Torline at KTorline@msn.com
Must Read Articles:
- NORAD is still alive and smaller under Cheyenne Mountain
- After fierce competition Colorado Springs finally lands the Air Force Academy
- An early history of Ft. Carson
- History of Ft. Carson part II
- Military relocation? 6 tips to read before you buy a home
- Relocating to The Air Force Academy? Here’s some great info to make your move easier.
I went to a training class last week on VA loans and came across all types of valuable information I wanted to share with our Colorado Springs home buyers. (I’m a strong believer that a Realtor needs to constantly increase and update their knowledge about all things real estate, never can learn too much.)
Since Colorado Springs is surrounded by military bases (Fort Carson, Peterson AFA, Schriever AFA, and the U.S. Air Force Academy 
) ; as well as there are many military retirees in the areas, VA loans are very popular. The stats show that 30% of all loans in the area are VA Loans.
Advantages of VA loans
When a Colorado Springs home buyer is trying to decide what type of loan they are going to use, it’s important for them to understand some of the advantages of VA loans:
- No down-payment requirements.
- There are not many loans left that don’t require a down-payment
- No monthly MIP
- MIP is the abbreviated term for the Mortgage Insurance Premium that many FHA loans and Conventional loans add to your monthly mortgage payment
- Assumable Mortgage
- This could be really important in the future if interest rates start to rise; it could make it much easier to sell a property and have a new buyer assume the existing loan
Read the rest of this entry »
- This could be really important in the future if interest rates start to rise; it could make it much easier to sell a property and have a new buyer assume the existing loan
5 things to know about buying a short sale home
Want to buy a short sale?
Related post: Buying a short sale vs. a foreclosure, what’s the difference?
For a FREE List of Foreclosures and Short Sales email Kathy Torline at KTorline@msn.com
Do you have questions about buying a Colorado Springs home that is noted as a “short sale”? Here are some of the most frequently asked questions I often hear from buyers, along with a brief answer.
1. Is the Short Sale negotiation process the same for a short sale as for a regular sale?
Yes, except that there is one EXTRA layer: After the buyer and seller agree on a price and terms, the seller’s 
lender (or lenders) and other lien holders must also agree on the offer. This can add anywhere from a month to 5 or 6 months to the process.
2. Are loans types the same for a short sale as for a standard home purchase?
The type of loans a buyer can use are the same as for a standard real estate transaction. But if the property is not in good condition, a buyer may not be able to use a VA loan or a FHA loan; as the property may come back with conditions from the appraisal process; and most sellers in a short sale situation don’t have the funds to make the requested repairs. Most short sales are sold “as-is”.
3. What are some of the disadvantages of buying a short sale property?
It can often takes the seller’s lender(s) and lien holders a long time to respond to a offers, and a buyer can become frustrated and give up. Also, some Realtors accept offers from several buyers, and submit all of these offers to the lender(s). Read the rest of this entry »
What are the credit consequences on a short sale?
Part VII in Short Sales Series for Colorado Springs Home Owner’s
Related Previous Posts:
- Colorado Springs Homes, 4 things to know about a short sale – Part I of Short Sales Series
- Avoid Foreclosure, Know Your Options – Part II of Short Sales Series
- Colorado Springs Home Foreclosures – 11 benefits of a short sale – Part III of Short Sales Series
- The final step in the Colorado Foreclosure process – Part IV of Short Sale Series
- How long does it take to do Colorado Springs Short Sale? – Part V in Short Sale Series
- Are there tax ramifications to a Colorado Springs Short Sale – Part VI
Are there any credit consequences to a Short Sale?
As I continue to do more and more Short Sales for home sellers in Colorado, I frequently get asked this question. It’s a fairly simple answer, as the moment a home owner get 30+ days behind on their mortgage payment, the bank will probably report this information to the credit bureau. When a late payment is reported; it does have a direct affect on your credit.
It’s also important to note that when the actual Short Sale is completed, many lenders will report that the account was “paid in full for less than the full amount.” A credit report may also be marked as “settled.” Each lender has a different way of reporting that a Short Sale was done, but this seems to be the most common language that is seen. Read the rest of this entry »
What are closing costs?
Closing cost explanation
For a free Buyers Guide, Email Kathy Torline at KTorline@msn.com
When buying real estate in Colorado Springs, the closing is the last step. It is the process of passing ownership of property from seller to buyer. As a buyer, you should be familiar with these costs that are both mortgage-related and government imposed. Here are some common fees:
Appraisal Fee: This fee pays for the appraisal of the property. You may already have paid this fee at the 
beginning of your loan application process.
Credit Report Fee: This fee covers the cost of the credit report requested by the lender. This too may already have been paid when you applied for your loan.
Loan Origination Fee: This fee covers the lender’s loan-processing costs. The fee is typically one percent of the total mortgage, but varies from lender to lender.
Title Insurance Fees: These fees generally include costs for the title search, title examination, title insurance, document preparation and other miscellaneous title fees.
PMI Premium: If you buy a home with a low down payment, a lender usually requires that you pay a fee for mortgage insurance. This fee protects the lender against loss due to foreclosure. Once a new owner has 20 percent equity in their home, however, he or she can normally apply to eliminate this insurance.
Prepaid Interest Fee: This fee covers the interest payment from the date you purchases the home to the date of your first mortgage payment. Generally, if you buy a home early in the month, the prepaid interest fee will be substantially higher than if you buy it towards the end of the month.
Escrow Accounts: In locations where escrow accounts are common, a mortgage lender will usually start an account that holds funds for future annual property taxes and home insurance.
Recording Fees and transfer taxes: This expense is charged by most states for recording the purchase documents and transferring ownership of the property.
Must Read Posts for Buyers and Sellers:
- It’s against the law
- Who is Representing YOU?
- Shop for a Lender like you shop for a house
- Research who you are working with
- 8 biggest mistakes made by home buyers
- Colorado Springs Home — Is a Condo or a Townhome right for you?
- Joint Tenants or Tenants-In-Common, the choice is yours when purchasing a home
- How to choose a Buyer’s Agent
Keep in mind that you can negotiate these costs with the seller during the offering stage. In some instances, the seller might even agree to pay a portion of all of the settlement costs.
Kathy (719-287-1049) KTorline@msn.com
