Read it and let me know what you think.

and let me know what you think. There are many opportunities for profit right now in real estate. I am an experienced flipped who knows how to make money in this segment of the market. Feel free to contact me with all of your questions about making money in a down real estate market. I would love to assist you with your investment plan!

A good home inspector will look at the quality and safety of the home including the basement. He may or may not check to see if the basement was finished with a building permit. Guess what–this info is available to the public online.

The Pikes Peak Regional Building Department web site has a feature that allows for an address search of any area property. The search will yield info on all of the building permits that have been pulled for that property. If there are no basement finish permits, this could indicate a future problem with the home. If no permit was pulled for the work then more questions need to be asked. The basement may look fine but the issue could be with what we cannot see.

The building department does periodic inspections during the construction process. The insures that the framing, electrical, plumbing etc. all were done according to the local building codes. If these inspections were not done, the new homeowner may be required to prove that the code has been followed to bring the permit current. This might require cutting into walls to show how the work was done.

Many buyers do see this as a major inspection issue. This is because when they get ready to sell in a few years, their new buyer might want the inspections to be completed. If not done, resale value can be affected. Safety can be greatly impacted if wiring or plumbing wa not done correctly. Just because your cousin Billy used to work in construction does not mean he is qualified to wire a basement properly!

Bottom line here is that all work done on a home needs to be properly inspected if it impacts the structure or safety of that home. A new deck require a permit. New kitchen cabinet installation does not. For more info on local building permit issues, contact me or leave a comment below.

If you have done any online searching at all you know how hard it is to find the right neighborhood in Colorado Springs. Searching the MLS for  homes is not just about a price range and square footage. So many other factors should go into your home search.

Price of course will dictate the beginning of your search. After you have narrowed down how much you want to spend on a home, you need to get serious. Many people just say they want a certain price range and size of home. What about the needs of your family members?

Schools should be a critical part of any home search. Again, online research will not tell the whole story. If your child plays high school soccer, you will want to make sure the high school in your search area offers that sport. If your child plays club sports, you will want to think about where the practice facility is located at. I drive hundreds, maybe thousands  (no, that is not an error) of miles per month taking my son to school and sports activities. I chose a private school for my son and we live in an area in the far north part of the city. For my family, the drive is worth it. I have two sons who have attended both public and private schools in Colorado Springs. I can assist you with details about individual schools and districts. Test scores alone will not tell you the whole story about schools in Colorado Springs.

For many people, a short commute is a key part of the home search. Traffic in Colorado Springs is not very bad but the city is very spread out. Someone who will be working at Fort Carson might not want to live in the Monument (TRI for MLS purposes) since the commute can be nearly an hour one way. Lots of people assisgned to Fort Carson choose to live in the Fountain Valley (F/V) area since it is so close to the post.

I get many requests for information on mountain properties. There are great areas to live just to the west of Colorado Springs. The key will be to find one that is near amenities that are important to the person who will be living there. Woodland Park is a small town up Ute Pass and has everything you might need but on a small scale. I personally would not want to live in the area full time but used to have a cabin in Florissant, a 40 minute drive from Colorado Springs, The road is a bit winding and the winter conditions can be difficult. The upside is that you get to live in the mountains. if you have always dreamed of living up there, then lets get searching for your dream home!

If you want to begin your Colorado Springs home search, please contact me first. I will let you tell me about all of the needs of your family. Then we can define the areas that will work for you. Then I will set up a private search for you that can be easily modified or expanded to fit your criteria.

Finding a home in Colorado Springs. If you have done your homework in advance, we can narrow down the perfect property for you in just a matter of a few days. The key is to tell me about yourself and your family so I can assist you in defining the perfect neighborhood!

NAR Issue Brief: Homebuyer Tax Credit

Click on the above link for the chart showing all of the details of the program. Some highlights include:

Move-up buyers can receive a $6500 credit if they have owned their current home for at least 5 years.

First-time buyers will receive up to $8000 credit

Contract to purchase a home must be written by April 30, 2010.

The first-time buyer credit will be a great thing for military buyers who PCS to Colorado Springs this summer. The key will be to make a house hunting trip prior to mid-April in order to make an offer on a home. We can extend closing dates but the April 30 is the deadline for this good deal.

For owners of existing homes, this is also good. The first time buyers can now have an incentive to purchase your home and then you can move up, down or sideways (ha ha) and receive a tax credit.

For more details, contact me or leave a comment here.

That is what most real estate agents would say. Their biggest concern through the inspection process is for their buyer and any potential liability that they may carry if they do not recommend a home inspection.

Most home buyers, especially first timers, are not savvy enough to go without a thorough multi-faceted inspection. A qualified inspector will do a full check of all of the major systems in the house as well as possible radon testing. I have bought and sold homes for many years and now feel pretty confident that I can do my own inspection with the help of my Dad who has a lifetime of experience in plumbing and construction. I have also witnessed so many inspections over the years that I know just what to be looking for A buyer who has never bought a home in Colorado Springs might not have that advantage. He is the one who definitely needs to hire a pro!

The key to a good inspection is a good inspector. I have seen many people choose an inspector who is not really qualified to do the job. Some do a half-way job and then give a scribbled report with a bunch of nit-picky items on it but miss the big things that will most likely cost the new buyer a lot of money. I recommend Scott Whitbeck of Home Team Inspections.  I found his video on You Tube today and think it gives a good idea of who he is what he does. I have used many inspectors over the years but Scott is the first one I have seen give a 90 day guarantee to home buyers. Wow! If your water heater blows up a month after closing, he has it under warranty for you! What a comfort.

When choosing an inspector, don’t just rely on your real estate agents list that they give you. They may just be giving you that list because the inspector takes them to lunch or offers other perks. Do your homework prior to contacting anyone. A good inspector should have some sort of info online, either a national web site for their franchise or their business here in town. Make sure the inspector is a member of ASHI, the American Society of home Inspectors. They have a strict set of standards and guidelines for all of their members. You do not want to just hire some guy who has a truck and a flash light to inspect your biggest investment ever! You want someone who is insured and has passed a standards test. Ask about the background of the inspector. Ask about the price of the inspection and exactly what it will include. I recommend a radon test for all homes in Colorado Springs. Refer to my previous post a few weeks ago for more info on that subject.

You can expect to pay a fee of approx. $250 for a home inspection and an additional fee for radon testing. Prices will depend also on the size and age of the property. Be sure to ask up front about all of the options available and the cost of each one. Many inspectors will also accept credit cards for payment.

The cost of a home inspection will be money well spent for the peace of mind you will have after moving into your new home. A home purchase is a huge investment. Buyer’s need to use all of the available tools to make sure they are buying a property that is safe and in working order.

Sounds like a 70’s song to me! Actually every potential home buyer needs to know exactly what the term “PITI” is.

P

This is the Principle of your mortgage. The lender calculates the payment based on the principle balance of the loan. This amount is small at the beginning of the loan term and grows larger as the balance is paid down and the interest owed becomes less.

I

This is the interest that is paid monthly on the amount of the principle. This amount will make up the bulk of the monthly payment but reduce in tiny increments as the loan’s principle balance is paid down.

T

Taxes. This is the part we all hate. The taxes paid on a home are paid in arrears. This means that you will be paying a monthly amount (1/12th of the yearly tax bill) into an escrow account. At the end of the year, the El Paso County Assessor will bill you (actually the mortgage company gets the bill) and it gets paid out of the escrow account. Taxes will be for things like the library district, schools, fire protection etc. They will vary depending on the area that the home is located in. It is very important to check the yearly taxes PRIOR to making an offer on a home. If the home is brand new, keep in mind that the current taxes will be for the land only. The bill will go up quite a bit once the property has been assessed. Most lenders will escrow enough money to cover this future bill.

I

Insurance is required on all mortgaged properties. This will protect you and the lender is case of a loss on the property. The bill is paid each year in advance. When you buy the home, the first years premium is collected at time of closing. Every month, the insurance portion of the payment goes into an escrow account and is then paid when the yearly bill comes due. The key to having a lower insurance payment is to keep a close watch on the yearly deductible as well as the amount of personal property that you have. I have USAA insurance and they are famous for over estimating the amount of personal property that a person has in order to get a much higher premium. I once had a second home in the mountains with minimal furniture in it. USAA quoted my policy with $250,000 worth of contents inside. The home was not even worth that much. I am a savvy shopper so I caught that trick and made them reduce the amount. This gave me a much lower quote than the previous one. I have also had several clients that have experienced this as well. Be sure to get a written copy of the quote and read it carefully to look for ways to save money.

The mystery of PITI is really not so difficult to solve. The key is to analyze each separate component in order to keep the total monthly payment as low as possible. If you would like to know how to reduce your PITI, please contact me or leave a comment below.

The $8000 Federal Tax Credit for first time home buyers will end at midnight on November 30th. I fully expect the closers at our local title companies to be working up until the deadline that day. Currently I am seeing many frenetic first time buyers and their agents looking at anything with a roof on top of it hoping to find “the one”.  The problem is that even if the home is found, it might be difficult to guarantee a closing prior to 11/30.

I posted a new listing last week that is priced at $170000.  Since it went in the MLS I have had over 50 calls from agents asking questions about it. The house most likely will not qualify for a VA or FHA loan. These are the two most common types of financing right now for first time buyers.

The Bank Said No No No

If a home needs any repair, the lender will not allow VA or FHA financing without the repairs being done. This can work just fine when the home is owned by a regular “human” seller. If the owner of the property is a bank, then we could have a problem. I have seen repairs done by banks but this takes time to negotiate, get bids and then get the work completed prior to closing. Remember, the clock is ticking here–every day counts.

Mission Impossible?

I did receive an offer on the listing that I mentioned above. One agent was willing to go the extra distance and take a chance with a VA mortgage. We are waiting for the bank to respond on the offer. I expect it to be accepted. The challenge will be to get any required repair items taken care of in time for the buyers closing date. Creativity will be required on the part of all parties but I think it can be done. I’ll post later about how it turns out. I’ll also post about the brave agent who did take the chance for their buyer. He is really doing some out of the box thinking in order to get the deal done. This is rare these days and I am enjoying it!

Act Now!

If you are thinking about finding a home before the deadline, contact me now! I can assist you with an expedited search, contract and closing. I know which deals can close and which ones can’t. The housing credit may not be renewed. It certainly could be worth taking advantage of now while you still can. I look forward to hearing from you!

The first site is called Spot Crime.  It features a city map overlaid with little crime icons. A bit cartoony given the seriousness but a good way to detail the types of crime in an area. The site uses little icons like a fist for an assualt crime, a set of handcuffs to show an arrest, etc. Cute and gets the point across. The user can search by address or by date. This site is a good way to see at a glance what is happening in certain areas.

The Colorado Springs Police site has several mapping options on its web site.  It lists weekly stats of various crimes on several different maps, all shown in a .pdf format. I think this site is a bit clearer to the user than the other site I mentioned above.  Users may also search for Meth Lab busts, as well as local Sex Offender lists.

Having all of this data can make it much easier to decide which neighborhood to choose. If the maps are studied even briefly, it’s pretty clear what the safer parts of the city are. The downside to these options is that they only include the city of Colorado Springs. Communities such as Fountain and Monument are not large enough to have the data to publish like Colorado Springs does. Watch this site for new developments in those areas as I find them.

If you would like to know more about Neighborhoods in Colorado Springs, leave a comment below or contact me.

I asked the buyer if they were working with a Realtor. She said “no, we always call the listing agents. That’s what my family does.” What? Why? How?

This buyer is missing out on critical information that a good buyer’s agent would provide. When time is short and the market is moving fast, a buyer does not have time to waste calling listing agents.

It has long been a myth that calling the listing agent direct will net a buyer a discount on the commission. I am here to dispel that myth right here and now! The seller of the home has already agreed to pay a total commission of X%. The listing agent is nt going to give you, the buyer part of his paycheck just because.

The listing agent is also working for, you guessed it, the seller! They will not represent you in the transaction. Think about it–this is maybe the biggest investment that a buyer will make in their life. Wouldn’t it be a good thing to have some help and representation in the transaction? The seller’s agent is to get the best terms, price and conditions for THEIR client–the seller, not you as the buyer.

The buyer that called me today is wasting their time! Savvy buyers know to interview a good professional realtor in Colorado Springs. Don’t waste valuable time. Call or contact me now for information on how you can buy a home in today’s market without wasting time and money calling on homes that have already sold!