Category: Uncategorized

Should Sellers Pre-inspect?

In a typical real estate transaction it is the buyer that orders and pays for the home inspection. However, sellers can have their property inspected before the house ever hits the market. A pre-inspection provides the seller with information regarding the condition of their home. But is it a good idea for a seller to do an inspection before their home goes on the market? Before you schedule your pre-inspection, here are three things to consider.

Disclose, disclose, disclose

  1. Once you know about it you have disclose it. The old real estate proverb is “when in doubt, disclose, disclose, disclose.” A pre-inspection can expand what you know and what you have to disclose. Let’s say you have a water stain on your ceiling. You have never been in your attic and will not go there. But your inspector does go in your attic and discovers that your stain on the ceiling is due to a roof leak. Now you need to disclose a stain your ceiling and a roof leak. Do you wish you did not know, or are you happy that you know you need to have work done on the roof?
  2. The buyer will more than likely get their own inspection. Just because you have had an inspection, does not mean that the buyer will not hire their own inspector. That means another inspector who may see something that your inspector did not see. The buyers inspector may not interpret the same information differently. So a pre-inspection may reduce surprises. However, the buyer’s inspection may uncover other issues.
  3. Once you have received the inspection report you may feel some pressure to start fixing things and do more than you need. With a pre-inspection in hand there is the temptation to fix all of the issues that the inspector found before your home hits the market. That is certainly not necessary and probably not wise. Most buyers are fine with cosmetic flaws or aging systems if they are reflected in the price or covered by a home warranty. Most of the time it is in your best interest to disclose and let the buyer do their own inspection. Then determine what the buyer feels needs to be addressed.

Consult with your agent before making a decision

There is no one size fits all answer about whether you should or should not do a pre-inspection. It really depends on your home and your personal situation. Before you schedule any inspections or completely skip them, have a candid conversation with your real estate agent on what is best given your situation. Your agent can help you weigh the pros and cons based on market conditions and your home. If you decide to get an inspection have your agent recommend an inspector. Not all inspectors are good. Your agent more than likely has experience working with the good ones. Remember to follow your agents lead on what makes sense in todays market.

Don’t skip the inspection on a new home

So you have found your dream home, it is a newly built home that has that fresh paint smell, the beautiful countertops and the latest in flooring. You will be the first one to call this place home. You are thinking, why should I bother with an inspection. The house is new. What could be wrong with it? It turns out, there could be quite a bit wrong. New homes aren’t immune to inspection issues. According to a report from the National Association of Realtors, 65% of home buyers who conducted inspection on their newly build homes found issues. The report also found that 24% of those buyers reported that their homes did not pass the inspection. Builders today are under increasing pressure to build new house quickly and efficiently. Whenever you increase quantity, you decrease quality. Builders cut corners.

A home inspection is completely optional. That is the case whether you are buying new or an existing home. When you have an inspection done on a property, you are buying peace of mind. When you pay for an inspection on a new build you are ensuring that the “i’s” are dotted and the “t’s” are crossed. What are some common issues that can be found at time of inspection on a new build?

Plumbing issues

Plumbing defects can be found at time of inspection. This can include improperly installed pipes. An inspection can also show plumbing fixtures or drains that are not installed properly. Plumbing issues can cause water damage and mold growth, nothing that you want included in your new home.

Drainage and improper grading

Another issue that can be found at time of inspection, in a new build is poor drainage and improper grading. When there is poor grading water from gutters won’t drain away from the home and this can cause water damage and flooding around the house.

Roof and siding issues

An inspection can also uncover damaged siding and roofing problems. Siding can look great to you and me, but a trained eye can notice issues. This can include siding that cracked during installation. Other common problems that can be uncovered in an inspection is siding that is not sealed around vents. This can lead to water infiltration. Another way to have water infiltration into your home is with a hastily installed roof. With a hastily installed roof you could have problems like improper flashing around roof penetrations for exhaust vents.

There is more

Other issues that are possible to discover during an inspection could include framing issues, installation issues and structural and foundation problems. All of these issues can be discovered during the construction process, but may not be easy to detect once the house has been completed. When you contract with your inspector find out if the inspection will be a one time inspection or if you can have the property inspected during the build process. Also check with the builder to see if independent inspections are allowed and when they can occur. Remember that typically new homes undergo building code inspections. These inspections include framing, electrical, plumbing and insulation. These inspections ensure that the home meets building codes but they do not look at safety.

Lastly remember that the purpose of an inspection is to hire an objective third party to evaluate the condition of the property. Some of defects that will be uncovered do not affect your ability to safely occupy the home. No home is perfect. Not even a home that is brand new.

How is the market?

This is one of the most frequently asked questions of real estate agents. Everyone wants to know what the market is like. Is the current market favoring sellers or buyers? In our current market, in Northern Colorado, buyers are more likely to get concessions from sellers than we have seen in the past. This is because inventories are rising. It seems like every day the number of new listings coming on the market is exceeding the number of homes that have gone under contract. When the market has more homes for sale than the demand, buyers may be able to get concessions. These can be paid closing costs, mortgage rate buy-downs. It is possible that the buyer can choose what is most important in their situation and get the seller to provide that concession.

What is a concession?

What is the definition of a concession? A concession is when a seller gives the buyer some extra help to purchase the home. This extra help is typically more than just reducing the price of the home. Another way to say it is: a concession occurs in order to reach a compromise and close a deal.

Builders are offering help to buyers too

Builders are sellers too, and they can also offer concessions to buyers. They like to call their concessions, incentives. These incentives, that a builder can offer, can include upgrades or appliances that are not usually included. An example would be a builder that includes the fridge, washer and dryer as apart of the sale. Another incentive that can be offered is with closing costs and /or mortgage rate buy-downs. A builder is willing to offer concessions or incentives in order to avoid sitting on inventory. Inventory that is sitting and not selling is costing a builder every month.

Concessions can make a difference

For buyers, getting any of these incentives or concessions included can be a big deal. Especially if the buyer is on a tight budget. These concessions can save on the monthly payment for a buyer or help reduce the upfront costs associated with the purchase of a home.

The market is not in trouble

This isn’t a sign of trouble in the market, it is rather, an opportunity for buyers. Concessions do not always mean a big discount. While more sellers are compromising on price, that is not always what they do to make a sale happen. Sometimes it is as simple as the seller paying for repairs, leaving appliances behind or helping with closing costs. These small things for the seller, can make a difference in a buyer being able to purchase their home or not.

Curb Appeal Secrets for Sellers

Curb appeal is very important when selling a home. It is the first impression that the buyer has of your home. A well maintained exterior suggests that you care about your home and that you have maintained the home both inside and out. Good curb appeal can increase the perceived value of your home and your home’s desirability.

Fresh cut grass

What should you focus on when you are ready to put your home on the market? The first thing is to make sure that your lawn is mowed to perfection. That means not just the grass mowed, but edged and trimmed too. Another thing to make sure you do is to fertilize so that your grass is a healthy, vibrant green. Try to make your lawn look better than the neighbors.

Add some color

If you have flower beds, stick some blooming flowers in those beds. This can also mean a pot of flowers by the front door or hanging plants off the patio. Some plants in the beds and scattered around is the second most important thing you can do to add curb appeal.

Welcoming porch

Nothing says welcome home like an appealing front porch. Perk up your porch to add to the curb appeal of your home. Add a rug or at least a new welcome mat. Add a cozy place to sit if you have room. Those potted plants are important and a wreath added to the front door can also add a feeling of welcome!

Mulch

Another thing to look at and consider sprucing up is the mulch in your yard. Fresh mulch smells great and instantly makes everything look polished and put together without too much effort. An added bonus is this will help to keep weeds down.

Outdoor lighting

Does your yard have outdoor lighting? It is not just for safety. Outdoor lighting can inexpensively add to curb appeal. Thirty nine percent of homeowners say attractive outdoor lighting matters to them. Consider some pathway lights or even some hanging lights for extra charm. Don’t go over board. Remember tasteful.

Curb appeal matters. Homes with strong curb appeal tend to sell faster and for higher prices. Curb appeal is a powerful marketing tool. By investing a little bit of money and time into some simple improvements you can crate a welcoming first impression that can lead to your home selling quickly

First time home seller

Congratulations, you have decided to sell your first home. When you were a first time home buyer, you may have noticed that there was no storage of people wanting to offer you advice. As a first time home seller, you may be feeling like things are a bit quiet with no one offering any advice. People may be acting like you should know what to do. Selling a home is not like buying like in reverse. The process comes with its own set of challenges.

One important thing to remember when selling your home is what it felt like to be a buyer. What turned you off when you were house hunting? What caused you to fall in love with the home that you purchased? Was it the view or the fresh paint and new carpet? Perhaps it has been so long that you do not remember. Let’s take a look at some of the things that can make your home as appealing to a buyer.

Price it right from the start

Price it right from the start. Overpriced homes do not sell. They sit on the market and buyers start to wonder what is wrong with them. There is probably nothing but that they are overpriced. Set a competitive price from the beginning to avoid unnecessary price drops.

Make your property easy to show

Make your property easy to show. It is frustrating when you want to see a property and the seller limits you to certain times on certain days or require you to provide 24 hour notice. The more flexible you are with showings, the more potential buyers will get to see your home. More showings can lead to more and better offers.

Declutter and depersonalize

Declutter and depersonalize. It is hard for buyer to picture themselves in a property if it has family photos scattered around. They feel like they are visiting your house, not looking at home that they might be able to make their own. Buyers can also get very distracted by clutter. They are there to look at the home, not your stuff. Create a clean, blank slate that buyer can imagine as theirs.

Smell matters

Smell matters more than you think. I have told sellers to bake cookies before an open house so that the smell lingers in the home. Make sure that your home does not smell like your pet or have other bad smells. Sometimes we become nose blind to smells. Ask a friend to stop by and give their honest opinion. Even if a home looks great, bad odors can be a turnoff. Make sure the house smells clean and neutral, creating an inviting atmosphere.

Listen to feedback

Listen to feedback. Remember when you were the buyer and you had opinions about every house? You may have had nicknames for the houses. The cat house, the yard mess etc. Your agent more than likely shared your feedback with the seller’s agent. Now that you are the seller you expect the same from buyers. Remember to not take feedback personally. If multiple agents mention the outdated bathroom or the worn carpet, consider making adjustments to improve your chances of selling your home.

Selling your home can be a bit overwhelming. Think like a buyer and this will set you up for success. Be sure to price your home right and make it easy to show. Don’t forget to take the time to prepare it for sale. Do all of this while working with a great agent. You will get your home SOLD!

Is it worth it to pay more for an updated home?

If you are in the market to purchase a home you are more than likely wanting to negotiate the best price possible. But in the real estate market getting the best deal is not always about getting the lowest price. Rather it is about making smart financial decisions regarding convenience and long term value.

Remodeled sell for more

As you look at homes on the market you may have noticed that updated homes sell quickly. They also sell at higher prices. There currently is a greater demand for homes that have been “remodeled.” This demand is a shift in the market and what buyers want. In the past, buyers were more interested in purchasing a “fixer upper” and doing what was needed themselves. That leaves us with the question are you better off spending more for a home that has been fixed up? How do you decide whether to pay a premium for an updated home or roll up your sleeves and do the work yourself? From an investment prospective the math behind home improvements rarely favors the buyer doing the work themselves.

Do the math

This math is one of the reasons why buyers are willing to pay more upfront, rather than taking on the renovation costs and stress. Are you still trying to decide? Here are some things to consider when deciding if paying more makes sense.

  1. Do you have the time, patience and know how to do the renovations?
  2. Are the updates worth the premium that you are paying. Check to see if you can purchase the updated home for less or the same cost of a home that his not updated plus, how much the renovations would actually cost. Your real estate agent can help you with this.
  3. Remember that cost predictability rarely comes with home renovations. There is always the unexpected that costs more money. If you purchase an updated home you know what you are getting upfront. The updated home will not have the remodel surprises.

Every buyers situation is different. Sometimes buying a home that needs some work can be a good investment. Make sure that you take off your rose colored glasses and do the research to know the real costs of fixing up the home. No matter what route you choose, be sure to involve your real estate agent. Your realtor can help you evaluate, unemotionally what is best. They can also connect you with contractors for the things that you can’t do yourself. Lastly, your agent can ensure that you get the best price possible for your home.

Embarrassing moments in Real Estate

We can all enjoy a smile from time to time. How about a blog post about embarrassing moments. This should be fun. An embarrassing moment can happen anytime. Here are some of the top, memorable embarrassing moments that I have had in the twenty seven years that I have been a realtor.

Keys, lockboxes, getting lost and more

  1. Embarrassing moment number one! I just can’t get the key to work in the door. If you can’t get the key to work in the door, guess what, you can’t show the house. I hate when this happens. One of the things that my clients count on, is a realtor that can open the door for them. Well, sometimes it is not that easy. When this happens, sometimes I ask my client to try the key and see if they can get it to work. Often times they can. That only adds to my embarrassment. But at least we got in the house.
  2. Another embarrassing moment is when you are not able to find the lock box. You look on the door. You look on the gas meter and all of the other places you usually find the lock box and you cannot find it. Then, what usually happens to me is my client finds it some place I did not look. Guess what, this is another one of those embarrassing moments.
  3. Animals can lead to more embarrassing moments. The showing instructions for the house are simple. Don’t let the cat out. The embarrassing moment occurs when you are standing in the snowy backyard and you realize that the sliding glass door did not get close completely. The cat discovers it too and decides that now is a great time to explore the backyard. It is no fun chasing a strange cat around a snowy backyard. Good news the cat was captured and put back in the house.
  4. Getting lost can certainly be another embarrassing moment. Imagine you are following me around in your car while we look at property. I simply cannot find the house. It doesn’t happen much these days with GPS, but it can still happen. I have even had GPS give me the wrong directions. This, for me, is another embarrassing moment.

Through all of these embarrassing moments I have learned that you have to have a sense of humor. You also have to be able to laugh at yourself. Embarrassing moments can be bonding moments with you clients. They remember the moment and you!

    The Price is Right?

    You are ready to put your home on the market to sell. One of the most important decisions that you will be making is the list price for your home.

    Your real estate agent should be able to give you expert advice on setting the price. Agents work in the market and should know of recent sales and the current market. Be sure that your agent does a market analysis for you so you have the most up to date information. The goal is to set the right price from the start so buyers will move quickly and make an offer on your home.

    Three reason why setting the right price is important

    1. The right price can help your home sell faster and for more money. The National Association of Realtors (NAR) has found that the longer a home stays on the market, without selling, the more likely the sale price is lower than the original list price. NAR found that a third of homes on the market for at least three to four weeks had their price reduced at least once. Pricing your home correctly in the beginning will decrease the odds that you will set on the market without any offers.
    2. You affect how the buyers view your home from the start. The price that you set on your home is your “price tag.” Pricing your home too high in the beginning may cause buyers to dismiss your home. They may dismiss it because they feel it is over priced. Buyers could also dismiss it because your home is out of their price range. But if a home is priced too low, buyer may shy away fearing there is something wrong with the house. If you are able to be like Goldilocks and set the price just right the buyer will be ready and willing to submit an offer to buy your home.
    3. The right price just might start a bidding war. When your home is priced comparatively with other homes in your market, it increases your chances of having multiple buyers interested in your home. If that happens those buyers may compete for your property. Competing buyers can drive up the price of your home. Even if you don’t have a bidding war, your home can still sell for list price.

    It is easy to see why pricing your home correctly is important. By understanding market conditions and following the guidance of your agent, you can increase your chances of a successful sale. When selling a home, making informed decisions will help you to achieve your goals.

    Tips for buying in an HOA

    After considering the pros and cons of an HOA you are ready to go looking at houses to purchase. Knowing that the home that you choose to purchase might in in an homeowner association. Here are some tips to ensure that you are ready for the life in an HOA if your dream home is located in one.

    Tip number one:

    Read all of the rules and regulations BEFORE buying. In the State of Colorado the contract has dates and deadlines for when the buyers must be provided with all of the HOA information. This includes rules, regulations and the financial information regarding the HOA. Once the information is received the buyer has the right to cancel the contract, due to finding the HOA docs unsatisfactory. This could be because you find out the HOA has a maximum weight for dogs of 25 pounds. You have a wonderful black lab that weights 75 pounds.

    Tip number two:

    Another things to remember when you are living in an HOA is to follow the rules. Once you have purchased your property and moved in, you need to follow the rules. They are not suggestions. You cannot bend or or change the existing rules. Not following the HOA rules and regulations can mean you are charged fines.

    Tip number three:

    Stay informed. Your HOA will communicated with you and let you know proposed changes in rules and fees. Your HOA will also provide you with meeting minutes so that you can stay informed about issues before the HOA board.

    Tip number four:

    Attend board meetings. Reading the minutes is great, but being present for the annual meeting is even better. The more involved you are the more informed you will be. Being involves allows you to have a say in community decisions.

    Tip number five:

    Join the board. Most HOA.s are needing board members to volunteer their hime to join the board. Serving on the board lets you directly influence decisions that are made that affect your neighborhood. As a board member, you are able to affect policies and advocate for your interests.

    HOA’s are not entirely good or bad. Whether you buy a home in an HOA or not is a personal preference. If you valued the amenities and services that the HOA offers, an HOA could be a good fit. Make sure that you know what you are getting into. Making an informed decision is important. Once you are in an HOA be sure to follow the rules and get involved.

    Is buying a home in an HOA for you?

    Home buyers often have mixed feelings about homeowner association. (HOA’s) On one hand they often have nice amenities like pools and parks. They also can help to maintain the neighborhood standard. On the other hand, they do come with monthly fees. HOA’s come with rules and regulations that need to be followed. These rules may feel a bit stifling.

    If you are looking to buy a home, it is important to sort out how you feel about HOA’s. It is getting more difficult to avoid HOA’s. The number of HOA’s has skyrocketed recently. Locally, most homes that have been built in the last 20 years are in a neighborhood with a home owners association. So, let’s weigh the advantages and disadvantages to help you sort out if you would want to buy a home that is apart of a HOA.

    Advantages of buying in an HOA

    1. They provide amenities that you might not have if you were not a part of the HOA. Some HOA’s provide swimming pools, workout gyms, parks and clubhouses. These are great features if you use them. If you will not use these amenities, this may not be an advantage.
    2. HOA’s make it possible for you not to have to deal with neighbors that are not taking care of their homes. Most HOA’s have standards that have to be met. Exterior maintenance will need to be maintained. These standards will keep the neighborhood looking good and help keep property values going up.
    3. Another benefit of a home in an HOA is that there are often maintenance items that are taken care of for you. This can be things like snow removal or lawn care. Other times that can be all exterior maintenance. If you do not like doing these things, this is something you will probably consider a huge benefit.

    Disadvantages to buying in an HOA

    1. Those wonderful amenities that I talked about under advantages to buying in an HOA, come with a price. Depending on the amount of services you are receiving from the HOA and the amenities, the HOA fees may make be uncomfortable. The HOA fees may be enough to make the home unaffordable.
    2. HOA dues go up. It is rare, but it is not unheard of for the dues to stay the same, or in rare cases, go down. Please expect and plan for the dues to go up an dup.
    3. HOA’s have rules and the rules are enforced. Make sure that you can live within the rules of the community. They may not allow you to fly the flag of your alma mater from your porch. Are you okay with following that rule and all of the others?

    After considering all of the advantages and disadvantages you can see that living in an HOA is not for everyone. If you value the amenities, being a part of a community and are able to follow the rules of that community then living in an HOA could be a great fit.