10.28.07
Posted in Colorado Springs Real Estate at 11:26 pm by Angela Byrne
Talked to another Realtor the other day because she listed a home for sale that was WAY below market. I was working with a Buyer who wanted to find out what the “catch” was. It didn’t take long to get her side of the story. The agent said the home was used as a meth lab and hadn’t been cleaned up yet. She said the property was so filthy and contaminated she was recommending to the Seller (the bank) that they sell the property at land value. Not the amazing deal my Buyer was looking for.
Even in cities like Colorado Springs that are known for being safe and having reasonably low crime rates, are seeing issues with meth labs. According to the Rocky Mountain News, “Methamphetamine has taken a hold in Colorado, posing dangers never before confronted in the drug world. Law enforcement offices throughout the state are busting labs, many in residential neighborhoods, at a rate of more than one a day.”
As a Buyer, what do you need to watch for. Well, here’s a biggie. The Colorado Real Estate Commission says that if a house has been cleaned up (by a recognized, professional company), then the seller DOES NOT have to disclose that the home was used as a meth lab. Our brokerage policy is to disclose…but many do not. Don’t trust the MLS data and the marketing materials…they may not be required to share the tainted history. If I have knowledge that any property was used as a meth lab, I feel this is a material fact that should be disclosed. When walking through a house, here’s what to look for:
- Over-the-counter cold medicines
- Household cleaning products
- Battery acid
- Antifreeze
- Plastic tubs
- Hotplates
- Funnels
- Are there “burn” spots on the lawn?
- Is there a strange odor in the property?
There are companies that provide professional testing. If you have a suspicion, but can’t find evidence…hire a professional.
To see a list of recent meth lab seizures, visit
http://www.springsgov.com/Page.asp?NavID=6823
For more information, visit
http://www.klickmeth.com/detecting
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10.19.07
Posted in Colorado Springs Real Estate at 8:38 am by Angela Byrne
More and more people are exploring real estate investing as a way to generate extra income or fund retirement. If you are to become one of these people, here are some pointers on preparing to be an investor and choosing an investment property.
Build a strong investment team.
This should consist first of a licensed Realtor. I can put you in touch with my business partners and introduce you to a mortgage broker, appraiser, home inspector, attorney and contractors. These people will all become an important part of your investment team.
Remember, as much as you might want to fly solo, you will be able to manage more investment properties and increase your profits by teaming up with a professional who already knows the ins and outs of the transactions. The team-based approach minimizes the risk for novice investors but helps maximize the profit potential.
Focus on Foreclosures
When dealing with foreclosures, you might find yourself dealing with banks and REO departments directly. When dealing with them the most important thing is to have your financing in place and be able to act quickly to solve the bank’s problems. They like to own mortgages, not houses.
Search for Colorado Springs Foreclosure Properties.
Buy at deep discounts
A good goal is to receive a 20% return on your total investment. To determine how much you can invest, start with the price you think you can sell the property for after fixing it up (as your Realtor partner, I can provide a market pricing analysis to project value) and divide it by 1.2. For example, if you think you can sell a house for $250,000 after all the repairs and/or renovations, divide $250,000 by 1.2 and you will come up with around $208,000. Take the $208,000 and subtract what you might expect to pay in repairs, renovations, and agent commissions (to sell the house). This will give you a ballpark figure of what you can pay for the house to earn a 20% profit. For example, if you estimated all your costs and came up with $40,000, you could then afford to pay up to $168,000 for the house you plan to sell for $250,000.
Long Term Approach – Buying and holding
There are two types of investors. Those known as “flippers” and those know as “buy-and-holders”. When the market changes, as it has recently, flippers need to make a shift to the buy and hold strategy to ride out the slump. “Buy and Hold” investors buy real estate and lease it out for a steady cash flow. The tenants then pay down the mortgage principal while the property increases in value, and when the investor is ready to sell they can leave with the equity that’s built up over the years. An added benefit is that the property can also offer some nice tax write-offs.
No matter the approach you choose, with patience and perseverance, investing in Real Estate can be an exciting, profitable venture.
Technorati Tags: Colorado Springs Real Estate, Foreclosure, Homes For Sale
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10.11.07
Posted in Colorado Springs Real Estate at 1:06 pm by Angela Byrne
It’s on the news (or in the paper) every day now. The Colorado Springs housing market is a Buyers’ Market! For you, this provides ample opportunity. It might be a really good time to consider investing in real estate. There is plenty of inventory from which to choose …and quite a few motivated Sellers out there. Whether a property is considered a short sale, pre-foreclosure, or bank-owned…there are deals to be had for the qualified, persistent investor.
How do you get started? There are several things to consider when buying a distress-sale or foreclosure home. First, learn about the local real estate market before making any buying decisions. Just like any product, the law of supply and demand is applicable. It’s quite crucial to grab the hottest properties as soon as they are placed on the market. This means reliable foreclosure listings are vitally important. These listings contain important information like pictures, asking price, required repairs, complete address, number of bedrooms and bathrooms, etc. You can get more information on these available homes in Colorado Springs by looking at Search Colorado Springs Foreclosures For Sale
Second, make sure you inspect the foreclosure home thoroughly and take into consideration the cost of repairs needed. This will help you to determine if the bank foreclosure home is really a bargain…or just a money pit. Consult a professional home inspector to go over every nook and cranny of the property to ensure you have the proper budget for all foreseeable repairs. Contact me at (719) 494-2777 and I can recommend a reputable, licensed home inspector.
Third, negotiate the asking price. Finding bargain homes should not be too difficult with the recent influx of foreclosure homes on the market. Whenever you place an offer, make sure it is reasonable or else you risk losing to another bidder. I always try to “feel out” the activity when first talking to the listing agent. Once a purchase price is negotiated, it may still be possible to negotiate some repair costs…even on an “as is” sale. I’ve done it. It could be a win-win situation if you manage to negotiate these successfully.
Finally, when buying a foreclosure property, make sure you have taken the time to explore multiple financing/loan options (if needed). Do some research to familiarize yourself with the different possibilities, or contact us so we can put you in touch with a local lender who has experience in helping obtain financing for investment or rehab properties.
If you would like to be notified daily of new properties priced under market, please give me a call. We have a special program that helps us identify the best deals out there.
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Posted in Colorado Springs Real Estate at 11:04 am by Angela Byrne
Prices for remodeling projects are climbing, while the recoup value at resale is declining. Do not fear….a licensed Realtor can assist you in choosing the projects which will help you get the most bang for your buck.
Get and compare cost estimates. Small differences in size, scope, or quality of finishes can dramatically affect the final project cost. Ensure any/all permits are pulled for any project. If a project is done without one, you may not be able to add the improvement into your resale value.
A variety of factors play into the “cost recouped”. Some of these are: the condition of the rest of the house, the value of similar homes nearby, and the rate at which property values are changing in the surrounding areas. A homes setting, whether rural, urban or suburban also affects its value, as does the availability and cost of new and existing homes in the vicinity.
According to Realtor Magazine, Dec. 2006 “a home improvement project only costs 20 cents to 25 cents on the dollar. The other 75 cents to 80 cents spent on a project goes directly back into the home through increased value- not to mention increased owner enjoyment.”
Energy efficient home improvement projects are recouping the most for the money right now. Upgrading to upscale fiber cement siding, upgrading to a midrange vinyl siding or upgrading or replacing wood windows are the biggest returns. However, the thing that motivates buyers overall is aesthetics. Most buyers are looking for homes with curb appeal. If a potential buyer drives up to a home with dingy aluminum siding and old windows, they often automatically get a bad taste in their mouth.
If you are in need of assistance to help you decide what and where to improve your home prior to putting it on the market, contact me and I’ll be happy to assist.
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10.03.07
Posted in Colorado Springs Real Estate at 11:29 am by Angela Byrne
There are many reasons why Buying or Selling a home in the traditionally slow winter months is a good idea. It may even mean you get more out of the transaction.FOR HOME BUYERS:
The winter months are a neat time to buy a house. You probably have less competition since a lot of buyers wait to purchase when their children are out of school. It may also mean that the homes you view are owned by more motivated sellers. They may be on the market because they are relocating or because a change in needs requires a different home. Another advantage that Buyers have is an ability to see how the yard looks in the cooler months. If the deciduous trees no longer provide coverage, is there a problem with adjacent areas? If there is snow on the ground, will it accumulate on the driveway?
Visit my website for more information about Buying Colorado Springs Real Estate
FOR HOME SELLERS:
In the winter months you have less competition than in warmer times. Potential Buyers are more serious in their viewing process so you have fewer “lookie –loos”. Buyers will also be ready to make an offer when they find something they desire. Be ready to have a “Welcome” mat out for Buyers to wipe their feet on as this is the time they tend to track in more slush.Visit my website for more information about Selling Colorado Springs Real Estate
For more information on Buying or Selling in the winter look at http://www.SpringsLiving.com
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10.02.07
Posted in Colorado Springs Real Estate at 10:24 am by Angela Byrne
When one gets ready to sell any home, it is a hard decision. When you have four legged friends to accommodate it gets a little harder. As the winter months approach I have a few suggestions on readying your property for sale.
The more you pay attention to the way your property presents itself the more you receive at the bottom line. This is where “the devil in the details” truly pays. Oft times we can be “owner blind”. The things we do daily become invisible to us but can be glaring to an outside observer (buyer). Use all of your senses when evaluating your property. What will the buyer’s first impressions be? What will they see, hear and smell?
Clean up the property. Your property needs to be clean and free of debris. Patch any holes in the road or driveway which you are responsible for. Cut down and clear any trees and excessive undergrowth. Benefits of thinning and harvesting your land include improving recreational opportunities and wildlife habitats. This also can improve views from your property and be a selling point in marketing your property. Remove any potential eyesores - old tires, abandoned vehicles and excess trash. Do all the “little” things you have been putting off doing.
Check your fences. Assess and repair fences as needed and prepare for drifting snow. If you own horses and cattle this is a vital step as animals can step over drifted snow and away from your property. Oil all hinges on your gates for easy winter access.
Inspect Barns and Outbuildings: Improve heat retention by repairing any broken windows and closing up drafts. Barns do need some circulation so make sure you don’t seal it up tight. Clean all stalls THOUROUGHLY! Clean all windows, inside and out! No one wants a dirty property and windows are a dead give away of property condition. Use a broom and clean all the cobwebs from the corners of barns and outbuildings.
Assess your water situation. Check all spigots and make sure they are functioning properly. Turn off the water supply to unused lines and drain them. This assures potential buyers that there will be no breakage or floods come spring.
After you do these things, call me for a comparative market analysis of your property. I will include the value of all fencing, outbuildings and vacant land in this report and can help you through the steps of selling your home for the right price.
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