Call Denver Home Real Estate Blog

Cash Is King When Buying Homes in Denver

Denver Bank Takes 20K Less Than Highest Offer To Get Cash

I couldn’t believe my ears this morning when I received the call.  In fact the agent who was calling me was surprised that the asset manager at the bank took our offer even though it was 20K less than the “highest and best” offer.  The ironic thing is that the bank reps accepting offers on bank owned properties would rather not deal with their own lending institutions.  Has lending gotten that difficult lately? Wouldn’t you think that the bank who owned the property would prefer that their own company get the loan???

A Tale of Two Offers

I will give you the quick scenario on the cash offer.  The property was a 4 BR tri-level with a basement Read the rest of this entry »

REALTOR Nationwide Open House in Highlands Ranch

Highlands Ranch Open House April 10th and 11th

There will be more Open House signs than Garage Sale signs in Highlands Ranch this weekend.  I plan on holding my listing at 9215 Mountain Brush Ct. in Highland Ranch Open on Saturday from 10 am to 2pm. ( Come by and See Me ) This is an effort by the National Association of Realtors to get the message out that there are some great deals out there for home buyers.  There will be thousands of homes in Colorado Read the rest of this entry »

100% Financing in Littleton Still Exists

No Money Down Loans in Littleton???

No Money Down Financing

I received a mail from local mortgage broker in Littleton the other day.  She works for KeyBank as a loan officer. She was telling me about a loan program that allows borrowers to get up to 100% loan to value. This is an amazing loan program because most loans today require at least 3.5 percent down just to go FHA.  On top of 3.5% down the FHA loan also requires PMI insurance and an up front funding fee of 2.25%.  The loan from Read the rest of this entry »

How To Search Douglas County Assessor Information

What did your neighbor really pay and how big is their house?

Douglas County keeps all of the information about your home and mine public on their website.  The website is actually pretty advanced as far as county websites go.  Just compare it to Adams County and you will get an idea of what I mean.  The Douglas County Assessor website is where I spend much of my investigative time when looking for real estate information that Metrolist does not offer.  ( Metrolist is the Denver MLS service where realtor’s Read the rest of this entry »

A Kinder and Gentler Bank of America Short Sale

Bank of America Short Sales in Denver Getting Easier???

Ask any agent who has had to deal with Bank of America on a short sale during the past few years and they will have war stories of hours, weeks and months spent in vain trying to get a short sale approved. There is nothing worse than investing hours, advertising dollars and more for months on end only to never make a dime when it goes to foreclosure. I can tell you that I would tell my home buyers to avoid them if I found out they were the lien holder. I am assuming that most of America now knows that a short sale is an attempted sale of a property where the loan is greater than the value of the house. The seller wants to / has to sell and the bank needs to take less than what is owed on the loan. This last week Bank of America took me by surprise and they seem to have finally gotten their act together.

Bank of America now using the equator.com platform for Short Sales

equator.com is a website where banks process thousands of foreclosed properties Read the rest of this entry »

New Construction Homes in Parker Worth a Look

Parker New Homes vs Foreclosure Properties

Parker New Home Vs Repo

So I get to meet a new client that is in a relocation from California today and set up to see about seven properties to get a feel for areas and price ranges.  He works in Inverness near DTC so we decided to stay within a 10 minute drive to the office. He wants to stay under the 300K range and isn’t looking for anything too big so I chose a few neighborhoods that would work.  We had never met before so we started at a neighborhood closest to his office.

Walnut Hills and Willow Creek in Cherry Creek School District

Our first stop was in Walnut Hills where the homes were built in the 1960’s and 70’s and range from 170K to 280K.  There are many bi-level, ranch and tri-level homes in this area.  The lot sizes are pretty big Read the rest of this entry »

Highlands Ranch and Lone Tree Sales Increase in 2010

Existing Home Sales In Highlands Ranch Increase 50% Over First Two Months of 2009

Great news for Real Estate in Highlands Ranch and Lone Tree so far this year.  In 2009 there were 110 closed sales from January to February. So far in January and February we have had 167 closed sales in the same time frame according to information in Metrolist. ( A Multiple Listing Service – MLS in the Denver Metro Area )  There are several factors that have contributed to the rapid increase in closed sales. The historically low interest rates combined with government incentives for first time home buyers and move up buyers has helped people get off the fence and into a home.  We have also had a relatively mild winter as far as snow goes which makes it easy for us to get out and look at homes.

The Average Sale Price Increased 8.9% over February 2009

Not only were there more sales in the area, but the average sale price also had an upward trend.  In 2010 the average sale price was $334,635 compared to  $307,185 in February of 2009.  One month does not make up a whole year Read the rest of this entry »

Highlands Ranch Going Green?

Will all the medical marijuana media attention effect Highlands Ranch property values?

First of all, why would a marijuana grower in a residential neighborhood with tons of covenants go on television and brag about making 400K a year growing pot in his basement?  Was he high? Really?  Now that I have that off my chest, how will this effect real estate values? The media hype and flash will subside and I doubt there will be any lasting effect on home values except for the homes really close to the property.  The house will be labeled ” The Pot House” and it will stigmatize the house and possibly those next door to it.  Some people aren’t going to care but believe me there are some who will.  If I were the neighbor, I’d be pretty upset at Bartkowicz.

NIMBY is a term that most of us are familiar with. ( Not In My Back Yard )

Highlands Ranch Community Association sent me the following email

Reported Marijuana Growing Operation in Highlands Ranch

9News is reporting that there is a medical marijuana growing operation in Highlands Ranch. Read the rest of this entry »

Best Highlands Ranch Pizza Restaurant

Nicolo’s Pizza Is The Best in Highlands Ranch

Nicolos Pizza

My family and I were in the mood for pizza the other night and decided to check out Nicolo’s Pizza in Highlands Ranch 303-791-9800.  We had a great time and so I thought I’d take a break from writing only about Real Estate and tell you about the experience.  It was a Friday night and we had our family of five plus our son’s friend Elliott who might as well live with us.  The place was busy but there was no waiting so we were seated pretty fast.  They asked for our drinks and brought out some rolls.

A Pizza Place that you can sit down and eat at.

Many of the quick pizza chain places are fine for take out, but I like to be able to sit in a restaurant and get served.  The atmosphere was good and comfortable for our family, not too loud.  Like I said earlier, they brought out drinks and bread within a few minutes of getting there.  We ordered a cheese pizza Read the rest of this entry »

New FHA Policy Will Have Denver Home Sellers Making Repairs

Denver Home Sellers Restricted on Buyer Credits

Denver Home Sellers

Beginning this summer, new FHA regulations will reduce allowable seller concessions from 6% to 3% according to a recent announcement from US Department of Housing and Urban Development.  Every new regulation that comes out is designed to protect consumers in some way.  This new policy will be put in place to restrict inflating property values in order to pad the purchase price with lending fees, closing costs and repairs.  The less desirable effect of this policy change will effect Denver home sellers as well as home buyers if there is a need to give a credit to the buyer for home repairs that the seller cannot complete prior to closing.

3% Seller Credit Used to Pay Buyer Closing Costs

FHA loans require that a buyer have 3.5% down payment ( rumored to be increasing to 5% some time this summer ) in order to get an FHA loan.  Many home buyers have to save and scrape together just enough for that down payment.  Since much of their money goes towards the down payment, they do not have and extra 3% to pay for closing costs, escrows, insurance, pre-paid interest, and appraisals so they ask the seller to contribute that money on their behalf.  Many sellers agree to these terms because they understand that the buyer for their home doesn’t have the additional funds and if they did not make those contributions, the buyer would not be able to purchase the home.

And Then Comes the Dreaded Inspection

Imagine that the full 3% seller concession has to be used for closing costs etc.  Now imagine that a few items show up on the home inspection that require repairs.  On FHA loans, the FHA appraiser also inspects the home to make sure that the property is FHA insurable. Lets pretend that an independent inspector that is hired by the buyer finds repairs that should be made totaling $2,000.  In the past, the seller could credit $2,000 to the buyer at closing for the repairs and the buyer did the work after closing.  That type of credit will quickly become a thing of the past for many real estate transactions.  The transaction would no longer be in compliance with the new policy because seller concessions exceed 3%.

There is Risk for Sellers Who Make Repairs

Many sellers prefer to give buyers a credit at closing for repairs instead of fixing the problem or perceived problem.  They prefer that because there is risk in doing the repairs.  Have you ever heard of a real estate closing that didn’t happen?  In my 17 years of selling real estate I can assure you that financing can fall apart the day of the closing. The sellers may have spent money to complete repairs needed to close the deal only to end up empty handed at the closing.  Just to complicate things even more, what if the transaction is a short sale and the seller doesn’t have any money to do the repairs?  How would you comply with the policy and get the repairs done?

Creative Solutions Required to Navigate the New FHA Policy

This policy isn’t even in place yet, but the announcement will be made in February. I am looking for ideas from lenders, Realtors and others in the industry to address this issue that will effect real estate transactions in Denver this summer.  One idea that I have is to have a check cut to the contractor at closing from the sellers proceeds.  The credit to the contractor would be in compliance because it is on the HUD and disclosed to all parties.  The buyer would hold on to the check until the work is complete.  The only problem that I see is that a red flag will go up for the lender asking what that credit to the contractor is for.  One thing to be sure of, expect delays during the next few months while everyone figures out what they can do and not do.