12.04.08
Posted in Colorado Springs Real Estate at 9:27 am by Angela Byrne
MSN Real Estate just posted a great article on common inspection items: Inspector’s Top 10. Our Buyer’s Agent, Courtney Gatti, sent it over…thanks Courtney!
The article is a good one because it helps put inspection items into perspective if you are thinking about buying a home. If home inspectors are ASHI Certified, they follow certain guidelines when inspecting a home. This means you may come across some rather unusual things on a home inspection. For instance, Federal Pacific Electrical Panels may be flagged as items of concern (even if there is no evidence of faulty operation). These things can be hard to view objectively if you don’t attend home inspections on a regular basis.
The MSN article identifies issues that could be potential money pits. Here are the things noted:
1. The house has poor drainage.
This is the most common problem found by home inspectors. To improve drainage, you may have to install
a new system of roof gutters and downspouts or have the lot re-graded to better channel water away from the house. Angela’s note: This is especially important in purchasing Colorado Springs real estate since we have expansive soils here. Water close to a foundation can mean movement. Movement can mean damage.
2. The house has faulty wiring.
An insufficient or out-of-date electrical system is a common problem, especially in older homes. This is a potentially hazardous defect and not to be taken lightly. You may have to replace the entire electrical system, or at least part of it, to bring this home up to code or to make it safe. Angela’s note: Mark Baxley of Brick and Mortar Home Inspections has done many home inspections for Buyers working with our team. A good inspector like Baxley can tell you what wiring posing a threat and what wiring locations (ie; aluminum wiring going into the panel) need to be reviewed.
3. The roof leaks.
If the roof has water damage, it may be caused by old or damaged shingles, or improper flashing. It’s cheap and relatively easy to repair shingles and small amounts of flashing, but if the roof is old, you face a much larger expense to replace the whole thing. Angela’s note: Be sure to get a copy of the Seller’s Property Disclosure and any roof warranty paperwork prior to the home inspection. This may give you an idea of how to focus during the review.
4. The house has an unsafe heating system.
An older heating system or one that has been poorly maintained can be a serious health and safety hazard. You may have to repair or replace the old furnace. This is a major expense, but new furnaces are more energy-efficient, which will probably save you money down the line. If your heating system is anything but electrical, install carbon monoxide detectors in a couple of locations in the house. Angela’s note: If a home has a dated heating system but no known issues, the owners may still be willing to work with you on replacement cost. If a home is on propane, but has natural gas available…this may be an additional area of potential savings.
5. The whole house has been poorly maintained.
Examples of poor maintenance include cracked or peeling paint, crumbling masonry, broken fixtures or shoddy wiring or plumbing. You can easily repaint a wall, replace a fixture or repair a brick wall, but makeshift electrical or plumbing situations are serious and potentially dangerous problems. Replace any such wires or pipes. Angela’s note: Sometimes making a comprehensive To Do list will help you quantify the potential expense. Be realistic about the cost…don’t sugarcoat.
6. The house has minor structural damage.
Minor structural damage means the house is not likely to fall down, but you should deal with the problem before it becomes more serious. Such damage is usually caused by water seepage into the foundation, floor joists, rafters or window and door headers. First you need to fix the cause of the problem (a leaky roof, for example), then repair or replace any damaged pieces. The more extensive the damage, the more expensive it will be to repair. Angela’s note: There are several local structural companies who will give free (or inexpensive) estimates for repairs.
7. The house has plumbing problems.
The most common plumbing defects include old or incompatible piping materials and faulty fixtures or waste lines. These may require simple repairs, such as replacing a fixture, or more expensive measures, such as replacing the plumbing itself. Angela’s note: Dependent upon the type of piping, the water source (well, municipal, etc.) could affect the piping condition. A qualified home inspector should be able to give you a good idea of condition.
8. The house’s exterior lets in water and air around windows and doors.
This usually does not indicate a structural problem, rather poor caulking and weather stripping that require relatively simple and inexpensive repairs around windows and doors.. Angela’s note: New windows are not always required. Like the article says, there are often other solutions.
9. The house is inadequately ventilated.
Poor ventilation can result in too much moisture that wreaks havoc on interior walls and structural elements. It can also exacerbate allergic reactions. Install ventilation fans in every bathroom if there are no windows, and regularly open all the windows in your home. To repair damage caused by poor ventilation, you may only have to replace drywall and other inexpensive pieces. If you have to replace a structural element, it will be more expensive. Angela’s note: The venting in the attic should be looked at by the inspector. If the home is newer and the attic is sealed, be sure to request permission to break the seal for the inspection.
10. The house has an environmental hazard.
Environmental problems are a new and growing area of home defects. They include lead-based paint (common in homes built before 1978), asbestos, formaldehyde, contaminated drinking water, radon and leaking underground oil tanks. You usually need to arrange a special inspection to determine environmental problems, and they’re usually expensive to fix. For example, it costs $1,000 to install a radon-ventilation system, and about $6,000 to remove a leaking oil tank. Angela’s note: sometimes these hazards are beyond the scope of the typical inspection. An expert in the specified field may be needed.
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10.30.08
Posted in Colorado Springs Real Estate at 6:44 am by Angela Byrne
Boy, am I sick of bad news. Expensive bailouts. Economic crisis. Election mud slinging. I’m to the point that a root canal sounds more fun than watching 20 minutes of Headline News. So, how ’bout some good news for a change?
SmartMoney Magazine (November 2008) published a list that ranks Colorado Springs as #6 in the nation of “25 Cities Ready to Rebound”!
The article proposes that overbuilding and speculative pricing are now “working their way through the system”. Experts are beginning to predict a slow, but definite turnaround. National sales figures do not correctly explain local market trends. In fact, the Colorado Springs market is doing much better (and has in the past) than the national averages.
The study in SmartMoney Magazine analyzed 25 metropolitan areas that they found to be promising. In Colorado Springs, they cite a 21.3% increase in pricing from 2002-2007. The year-to-date price change (2008) is only -.03%….a much smaller change than the general media would have us believe.
Colorado Springs has always made the cut for the best-of-the-best lists (fitness, places to live, business-friendly cities, etc.) so I believe this article make a valid prediction. Colorado Springs is a wonderful place to call home and it only makes sense that the housing market will recover in support of the trends. If you’re thinking about buying a home or selling a home in Colorado Springs, let us know.
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09.24.08
Posted in Colorado Springs Real Estate at 2:31 pm by Angela Byrne
Well, the August stats are out. Things are looking better…but we’re not out of the woods yet. Here is what we’re seeing at our brokerage.
Showing Activity:
- August 2007 = 3,293 Showings
- August 2008 = 3,779 Showings
Overall, ‘Active’ Listings for Single Family Homes are down 10.3% from last year. This is a much-needed decline in the amount of inventory available. However, sales are still down 17.7% from last year. If you look at our 2008 sales, you’ll see an increase in sales each month so far. This is a trend that may show our market improving gradually over time. Overall, ‘Active’ Listings for Condos/Townhomes are down 14.4% from last year. Sales of these units are also down. However, the sales are down by a larger margin at 32.3%.
Last week, the Rocky Mountain News posted an article with some good news. Wells Fargo, one of Colorado’s largest lenders, is relaxing some of their loan requirements. They are allowing less money down and are relaxing the requirements for qualifying credit scores. They made the decision because they believe the housing market in Colorado has bottomed out and is going to improve now. I think this is very good news because this lender is putting their money where their mouth is. There not just issuing statements or giving their opinion…they are actually acting. It’s about time! I hope that we’ll see some other institutions follow suit.
Overall, the Days Supply remains steady. Take a look at the following chart to see the latest numbers by MLS area:
If you have any questions about how the current market conditions may affect your real estate purchase or sale, please contact us at your convenience.
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08.28.08
Posted in Colorado Springs Real Estate at 8:08 am by Angela Byrne
When I talk to homeowners about selling the property they own, we always discuss value. I first prepare a 
Comparative Market Analysis (CMA) for the subject property. Because market value has been changing over the course of the last 18 months, I have had a lot more people say “we HAVE to walk away with x” or “well, we owe x, so we need to list for x”. It’s important to remember that our monetary obligations have nothing to do with what a qualified, able-bodied Buyer will pay.
So, how do we determine what the market will support? First of all, we look at what has been selling in the last 4-6 months in the surrounding area(s). If comparable properties are found in the subject property’s neighborhood, then we will not look in other neighborhoods (even if they’re close). We then make adjustments if they are necessary. For example, if the subject property has an additional bathroom, then we would credit the property for an improvement over the comparable property.
We can look at the “active” competition to see how it may affect marketing efforts. However, we don’t look at the “active” competition to determine value. Others may have their homes listed at unrealistic values. If a Seller prices their home based on the prices of those around them, they may never see a showing. Or, they may see showings, but no offers.
The key to determining value is to set aside any expectations or pre-conceived notions about the market and evaluate the data. Buyers are showing us every day what they are willing to act on. They are showing us what types of discounts they expect for a home in less-than-stellar condition. They are showing us that short sale and foreclosure properties are REAL competition for resale. It’s a time to be competitive. Selling a home now is a price war and a beauty contest. If a Seller keeps this in mind, they can make a move happen. Call me today if you’d like a pricing analysis on your home.
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08.17.08
Posted in Colorado Springs Real Estate at 1:13 pm by Angela Byrne
Any first-time homebuyer looking for monetary assistance for their home purchase may find themselves coming up empty handed. Many of the state (CHFA) or county-funded (El Paso County Bond) programs are out of money to give. I just helped a family sell their home (on Friday) and they were able to contribute to the 
Buyers’ down payment. Recent legislative decisions will end this. And, as of October 1, 2008 it doesn’t look like the homeowner is going to be allowed to provide this type of assistance either.
There may be a new alternative for first-time homebuyers, though. It is called the Housing and Economic Recovery Act of 2008. Here are some details about the program so you can decide if it’ll work for you.
1. The qualified home purchase must be made between April 8, 2008 and June 30, 2009.
2. The credit is maxxed out at 10% of the purchase price (not to exceed $7,500).
3. Can be used for the purchase of any single-family residence (condos/townhomes included) that will be a primary residence for the Buyer.
4. The credit reduces income tax liability for the year of the purchase. It’s claimed on the tax return for that tax year.
5. The program is available for individuals with adjusted gross income of no more than $75,000 ($150,000 on a joint return).
6. The Recovery Act assists anyone who has not owned a principal residence in the 3 years previous to the purchase.
7. Here’s a biggie. The money can be recaptured. A portion (6.67 % of credit) is to be repaid each year for 15 years. If home sold before 15 years, then remainder of credit recaptured on sale.
As you can see, there are quite a few stipulations to working with this program. However, if a Buyer doesn’t have other options, this may be a blesssing. If you are considering utilizing the Housing and Economic Recovery Act of 2008, please contact me. I’d be happy to get you started.
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07.21.08
Posted in Colorado Springs Real Estate at 8:18 am by Angela Byrne
I’ve seen how clutter can kill a home sale. Too much “stuff” can distract visitors and detract from their experience in the home. So, prior to putting your piece of Colorado Springs real estate on the market, why not have a great yard sale? Clearing out the house will not only provide you with a little fun money but chances are you’ll net more in your home sale, as well. This is how preparing a yard sale coudl make you thousands.
Here are a few things to remember:
1. Check your neighborhood rules and regulations to make sure you can have the yard sale when you want to. See if they have any signage restrictions, etc. that may affect your marketing.
2. Prepare ample signage to advertise the yard sale and your location. If you are off the beaten path, you may consider putting an ad in your community paper. Always advertise the sale online (on sites like CraigsList.com that are free).
3. Pick up plenty of change (especially quarters, one’s and five’s) so you can make change for purchases.
4. Label all items with price tags. You will always make more at the sale by starting the bidding (other than having visitors suggest sale prices).
5. Keep things in the driveway instead of in the garage. More people are likely to stop if you have plenty of tables and racks in full view from the road. Not enough stuff? Combine your sale with a few neighbors. You will get fewer drive-by’s and more visitors if it looks like it’s worth their while to stop.
6. Organize clothes by size. If parents are looking through clothes for their kiddos, make it easy for them to find everything in one spot. Their browse faster and will purchase more.
7. Keep pets inside. I can’t tell you how many times, I’ve had a “friendly” dog run me off from a good yard sale before I was really done looking. If you can keep them in the house, you’ll have more comfortable visitors.
8. Set the atmosphere with music. Invite neighborhood children to sell snacks or coffee.
9. Finally, call a local thrift store and schedule a pick up after the sale is over. You do NOT want to be carting these items back in the house. Afterall, the purpose of the sale is to de-clutter the house. Resist the temptation to hold on to things that you will never use again.
A little planning goes a long way for yard sales. You can even spread the work out over time if you think in advance. It’s worth your time and effort to clear out the house and make your home more saleable. If you have questions about getting your home on the market for sale, complete our Seller Packet Request and we’ll get a free copy to you ASAP.
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07.09.08
Posted in Colorado Springs Real Estate at 11:59 am by Angela Byrne
Courtney, our Buyer’s Agent, sent me this message from Chris Starks. Starks is a Senior Loan Officer with First Class Financial Services.
He writes to Realtors, but I thought the information was interesting and useful:
I hope this finds you doing well. We have received some great news from Fannie Mae - the Denver metro area as a whole is no longer considered a declining market…..this includes all counties other than Weld County and the Pueblo area. There are a few pockets in the state that are considered a declining market and it is on a case by case basis. As long as the investors automated system and the appraiser do not say it is a declining market then we are good! You can call me with the zip code of a property and I can tell you if it is considered declining or not.
What does this mean to your buyers? With the declining market designation, your buyers were having to put an extra 5% down - this is no longer a problem in most areas. As long as the investors automated system and the appraisal do not deem the property in a declining market - your investor is fine and is not having to put the extra 5% down.
Our (financial) investors have already started to follow suit and are allow financing to 95% on conventional loans. Condos are still to 90% even if they are not in a declining market (assuming your buyer is going conventional and not going FHA which allows for 97% financing and VA to 100%) because the private mortgage insurance (PMI) companies currently only insure condos to 90%. Again, the investors will go to 95% but there are currently no private mortgage insurance companies who will insure a condo to 95%. We are hoping this will change in the near future.
This is good news! Share this with your buyers and co-workers. Things are changing here locally and rates are still great. This is going to be a great summer!
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07.08.08
Posted in Colorado Springs Real Estate at 6:58 am by Angela Byrne
It’s easy to see what type of activity is going on with new construction in and around Colorado Springs by looking at the current builder permits. It’s interesting to see how many people are making improvements (as opposed to starting new construction projects). In 2006, we saw a total of 2,426 
new home permits pulled. In 2007, the number dropped drastically to 1,475. This year (as of May), we are on track to come back up again. The current number of permits pulled is 852. If that continues at the same pace, then we could see as high as 2,044 by year end. This is great because it shows that new home builders are showing their confidence in the market.
Conversely, the remodeling permits in 2006 were 3,777. In 2007, they were 3,302. As of May of 2008, we had already seen 4,177! That’s more than in the entire 12 months of the previous year! I think it’s because more people are investing in their homes and preparing them to sell at a later date…when the current inventory stabilizes.
For now, most builders are motivated to keep moving forward. This means they do not want to hold on to inventory that isn’t moving. I just met with some home Buyers at a Journey Homes rancher in the Falcon community of Parkview at Woodmen Hills. This home they had under contract about a year ago at $225,000. Unfortunately, they had some family issues to contend with and had to terminate their contract at that time. Now that things are better, they came back and the same home is still on the market…at a discounted price of $189,900. This is a brand new home, never lived in. It’s got a finished basement and backs to open space. What a deal! To top it off, we are going to get a free central airconditioning system installed and still have some of the closing costs paid by the builder. Not all builders are extending $35k discounts…but many are. I would venture to guess that they won’t be doing this in 6 months.
Take a peek at the current Colorado Springs new home inventory. And contact the Springs Living Team if you see any you would like to view in person. We can negotiate some great incentives for you…and our commission is paid by the builders, so great representation comes at no expense to you.
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07.03.08
Posted in Colorado Springs Real Estate at 3:59 pm by Angela Byrne
To some of you, this may seem like a silly topic. However, if you’ve ever lived in a old, creaky house frequented by eerie noises, unexplained icy drafts or shadowy figures, you may way to read on.
I always get funny looks from homeowners when I get to the part of the Listing Agreement that talks about “any facts or suspicions regarding circumstances that could psychologically impact or stigmatize the Property.” This clause is listed in under the section that says ”Broker shall not disclose the following information without the informed consent of the Seller”. One example of one of a stigmatizing factor is a suspected haunted house. This means we are not required by the Colorado Real Estate Commission to disclose this. We are not even authorized to talk about this unless authorized by the homeowner.
So, what can you do to address any of your concerns? If I were working with a client who specifically wanted to avoid homes potentially “haunted”, I would first talk to the Listing Agent and the Seller. If we can convey that this type of activity is a “material fact” to you as the Buyer, we may be able to get the information we need. Next, if the homeowners or occupants are not available or are avoiding the conversation, it may be time to meet some of the neighbors. It’s important to remember that any second hand information may be exaggerated or even untrue (dependent upon the neighbors actual knowledge or their personal involvement).
To sum things up…even though disclosure isn’t required, you may be able to do your own investigation to get to the bottom of things. If you’d like more information about buying Colorado Springs real estate (haunted or not), give us a call!
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06.30.08
Posted in Colorado Springs Real Estate at 11:26 am by Angela Byrne
I don’t think it’s difficult to see how working with a recognizable company like RE/MAX Properties can 
benefit you in a home sale. But what about the reputation of the specific Realtor you hire to represent you? Does it matter?
I would argue that recognition and trust are some of the most important qualities that people look for when selecting a Realtor. In fact, Quality Service Certification (QSC) tracks the way that home buyers find the homes they end up purchasing. According to their latest study:
9.45% “knew the associate personally”
5.4% were a “satisfied past customer” of the Realtor
6.75% looked for “company name and reputation”
These numbers translate to 21.6% of Buyers acting on relationships and recognition.
Besides having someone you feel comfortable with (and an agent who will truly represent you as an advocate) what are some of the other benefits of listing your home with a professional who has a good reputation?
- They know the market (and Buyers see this).
I get calls from Buyers who see/hear my name in the neighborhood. I can tell them about the trends and the activity. Then I am able to give them more details about the homes I have listed for sale that meet their needs. This turns experience into qualified Buyers viewing the homes I represent.
- They get people to act.
Having the right information come from a reliable source means people can let their force field down and really interact with the experience. A home purchase is a big stop for a lot of people. Most approach the activity with their guard up. When they come into contact with a Realtor who is trustworthy (and can prove it) they are more likely to act.
- They attract cooperating Brokers.
There are Realtors around Colorado Springs, especially those at limited service brokerages who have the reputation that they don’t facilitate fair negotiations or easy communication. With so much inventory out there, why deal with dishonest people? In fact, I feel it’s my duty when working with Buyers to inform them of my previous dealings with real estate agents (whether good or bad) so they can decide which people they would like to deal with.
When you make the decision to list your home with a Realtor with a good reputation, you get more showing activity. This often results in more offers, a quicker and more profitable sale. Don’t overlook the warning signs when you interview Realtors. Work with someone who is honest, ethical and has your best interests at heart.
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