Sellers - Are You Taking the Sale of Your Home Seriously?
July 26th, 2010 categories: Relocation Tips, Selling Strategies
I’ve been working with two families who will be relocating to Denver in the next few weeks. Both are lovely couples with school-age children, both are motivated to find a home to land in as soon as their houses sell.
When buyers who are moving to a new town come for a house hunting trip it can be a whirlwind. We hit the ground running, whether it’s 95 degrees out, raining cats and dogs or the snow is anything less than a blizzard. The days are long, the homes run into each other, and sellers have only moments to make an impression.
First impressions count.
This is an actual sign I saw on a home last week. I’ve made one alteration. I’ve altered what was spelled out in full force to hit us between the eyes as we stepped up to the front door.
The buyers had their two young boys with them in their car, and asked me to run up and preview the house quickly before they got the kids out. There was a retail center behind the house we weren’t counting on, and they felt it would be a deal killer. However, being respectful to the sellers, they wanted me to take a quick look and leave my card.
As I came up the walkway, there were cigarette butts all over the front patio and crumpled cigarette packages in an empty planter. The paint on the front door jamb was discolored and poorly re-painted. Then there was the big sign on the door. I’ve never seen anything like it.
Needless to say, we beat it out of there and never looked back.
I have to wonder who those sellers are? This home is priced more than double the average home price in metro Denver, and is in an area of large suburban single family homes. Do these sellers think this is funny? Do they have teenagers and forget that you don’t talk to everyone else like this? (Or anyone else for that matter?)
I sent the listing broker detailed feedback and never received so much as a comment back from him. A match made in heaven. He apparently doesn’t want to sell his listing any more than his seller does.
Sellers - we have plenty of choices for buyers out there. If you aren’t serious, don’t waste my time or my clients’. Get your house looking its best. This is a beauty competition. The house with the sign won for ugly.
Check out my listings online for terrific homes with fabulous sellers!
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Real Estate Buyers Facing Greater Lending Hurdles
June 27th, 2010 categories: Real Estate News, Relocation Tips
Denver, Colorado - Buyers who want to finance the purchase of their home should rethink carefully what they do financially in the time between obtaining their first conditional loan approval and the time they close on their new home.
Lenders are facing more regulations for underwriting mortgages. These standards will certainly ensure that buyers will need to do more than fog a mirror to get a loan.
If you’re considering purchasing a home, here’s what you’ll need to know:
- The lender will be pulling another credit score about three days before you close. If you opened a new credit card, bought the SUV you thought you had to have to live in Colorado or decided to max out a credit card with your new appliances, beware - your credit score could be negatively affected. Don’t let that happen. Put off your big purchases until after the closing and don’t open new credit.
- Employment verification - yes, the lender has to do this again too. Three days before closing. Don’t quit your job before you buy your house!
- As I said in a recent article about credit scores, buyers’ initial scores need to be higher than ever to get the best rates. Make sure you handle any credit repair issues in the months prior to applying for a home loan.
The best advice of all is to utilize a loan officer who clearly knows the guidelines, and who can advise you throughout the process. Use a loan officer in the community you’ll be buying in. Out-of-state lenders rarely know or understand the nuances of closing loans in another state. We see more delayed and messed up closings with out-of-state lenders than for any other reason. Now, buyers themselves may cause delays (and be at risk of losing their deposit) if they don’t heed the warning to leave well enough alone when it comes to their credit and employment.
Look for your new house here: www.GretchensDenver.com and click “contact me” to ask for references to great local Denver loan officers.
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Bad Score, Bad Score - What You Gonna Do?
January 18th, 2010 categories: Market Trends, Relocation Tips
What you gonna do when they deny you?
I got my 
credit score the other day. We’re about to refinance our house and this was the beginning of the process. My score was always stellar - high 700’s at one time over 780.
This time my score was just below 720. By some people’s standards, not bad. Well, in this lending climate it’s not great.
When I began selling real estate over 14 years ago, a score of 620 or higher was considered pretty good. At the end of the last decade, 680 was the minimum needed to get favorable rates. Last Spring, the minimum score needed for the good rates was 720, and now lenders say borrowers need a score of 730 to 740.
What drove down my score and what should borrowers pay attention to?
1. My former husband had two credit card accounts that were closed, but for some odd reason were being reported with balances. I never had this particular brand of credit card, but I was listed as an “authorized user.” This was bad news for two reasons: first was the reported balances, and second was that these two cards, on top of my actual credit cards, skewed my ratios to look like I had way too much unsecured credit.
2. I got in a fight a few years ago with a certain Visa issuer (Chase.) One day, I decided to check my account on their site. This somehow changed my bills to paperless, but I didn’t realize the change had happened. Subsequently, I read that this happened to scores of people.
I waited weeks for my bill, called Chase and told the rep I hadn’t received it, and his response was, “huh, we mailed it.” A week later, still no bill. I again called and authorized a draft over the phone. What did Chase do? They reported me as “seriously delinquent.” More than 30 days late.
I called Chase again and begged. Pleaded. Explained that I’d had their stupid card for years and had never missed a payment. Their response? “Well, you missed this one.”
What did I do then? Totally peeved, I closed the account. Take that Chase!
Guess what that did to my credit report?
Again, this was bad news for two reasons: first was that I had a “serious delinquency” and the other was that the account stated, “delinquent, closed.” That does not look good to the credit agencies. Plus, a seasoned or older card is much more valuable on your score.
3. Finally, two of my credit cards were nearly up to the credit limits. Credit reporting agencies want to see your revolving credit be only about 30% of the limit. So if you have more than one card, spread the love, but not more than 30% of it. And of course, pay by cash as much as possible. That’s our new mantra - cash. Forget the miles. Use the cards a little to keep the credit agencies interested and your score high.
The good news is that these items can be relatively easily fixed for many people.
- Pay off as much revolving debt as you can, spread your debt over the cards you have.
- Don’t cancel cards you’ve had for a long time, just stop using them. Seasoned cards bear a lot of weight on your report.
- Don’t apply for too many credit cards.
- Make sure that your credit report is correct and dispute cards or other debt that appear and don’t belong to you.
After 30 days, your score will begin to come up and it should happen pretty quickly. MSN Money has written about fixing your credit score and you can check your credit report at Experian. Keep in mind that you do not need to pay for your credit report, you can access a free one every year. However, these reports typically do not include the FICO score that lenders use to evaluate you.
According to my lender, the basic fixes I did should positively impact my score in about a month. If you’re thinking about buying or refinancing a house this year, begin to get your score straight now. You may need more than 30 days or you may already be Platinum!
| Discussion: 14 Comments »
Earnest Money Requirements in Denver
October 4th, 2009 categories: Relocation Tips
Relocating buyers often ask how much earnest money they’ll need when they make an offer on Denver real estate.
My answer? “It depends.”
Some brokers and sellers request 3% some request 10%. Earnest money requests/requirements are entered in the MLS, so your Buyer Agent can tell you what the sellers have requested. 3% is more the norm for mid-priced homes, 10% is extremely high. However, for high end homes, closer to 10% isn’t too unusual.
What the sellers request and what the buyers provide are not always the same amount. When you prepare an offer for a property, consider how motivated you are, how strong you want to appear as buyers and how much money you want to risk.
Keep in mind that your earnest money is not at risk if you legitimately terminate the contract on inspection, appraisal or loan conditions. Make sure your broker and lender are keeping tabs on those dates.
Colorado is a very easy state to contract for purchase. We have state-mandated contracts that all real estate brokers are required to use. We close properties “at the table” in the offices of a title company (not in escrow.)
Earnest money is meant to show good faith on the buyer’s part. Plan to deposit enough to show you’re serious, but not more than you could stand to lose in the event of a default.
Looking to buy in Denver? www.GretchensDenver.com gives you access to nearly all listed properties plus the ability to map them! Bookmark the site today!
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Mortgage Caution - Delays in Closings Will Happen!
September 3rd, 2009 categories: Real Estate News, Relocation Tips
A broker in my office came to me yesterday with some questions about a seller’s recourse if the loan doesn’t fund at closing.
Colorado is a “table closing” state, and our contract expressly states that the buyer must attend the closing with all moneys and documents. This means that if a closing is at 4 p.m. on a Wednesday, as this broker’s closing was, the buyer and the buyer’s lender must perform under the terms of the contract at 4 p.m.
This lender had a lackadaisical attitude, ignored the new HERA/HOEPA regulations and essentially didn’t do his job. He was told on August 23rd that there was a slight change in the final figures, but he failed to disclose the change to the buyer.
Under the new regulations, any change upward to the buyer’s APR (over 1/8%) must be disclosed in writing to that buyer and the closing can’t happen until 3 days after the disclosure is made.
The loan broker did not disclose the resulting change in APR to the buyer until yesterday, the day of the closing. Actually, it was the second date for the closing, since this lender also didn’t order the appraisal on time (another story.)
Real Estate Buyers - Caution!
You are at risk to lose your earnest money in Colorado if you aren’t prepared to close at the date and time the closing is scheduled in the contract. In this case, the earnest money was $8,000. You lender and your real estate broker must be watching out for you and advising you. How could you possibly keep up with the changes in our industry? It’s obvious that many lenders and real estate brokers aren’t even keeping up. If the real estate broker in this instance had been on top of her game, she would have hounded the loan broker to get his disclosures out.
Her managing broker is helping her out, and using this as a “teaching moment” by paying the sellers’ damages. This equates to their loan per diem until the closing and various other pro-rations and charges. He’s a good broker and stepped up to the plate immediately because he understood that we must not stand in the way of a buyer and seller finalizing the transaction, or risk our clients’ earnest money. I’m sure he’ll also go after that lender for leaving him hanging in the wind like that.
This added level of complexity makes it more essential than ever that you hire a professional and seasoned real estate broker and that you listen when they tell you what to look for in your lender.
Don’t leave your earnest money to chance.
| Discussion: 3 Comments »
Any Way You Want It - That’s Not Going to Get It
July 27th, 2009 categories: Relocation Tips
My friends recently went to Red Rocks to see Journey. Red Rocks is an experience in itself, but seeing the 80’s hair band at a mile high with a short, Asian Steve Perry impersonator must have been a trip. The same friends are looking to buy a new house and we’ve found a couple that might work.
For the specific type of property they’re identifying, we’ve been aggressive in making offers. They’re astute buyers and understand the complexities of the market niche they’re looking in.
Most buyers aren’t buying the same type of property, and most buyers think that “any way they want it, that’s they way they’ll get it.” Well, they may not necessarily be right.
Buyers - get an education, learn about the price point and neighborhood you’re looking in. You may find that you can’t go in with a 25% off list offer. You may actually find that you need to pay closer to full price than not.
A broker I’ve worked with in past transactions met me for coffee recently. I wanted to find out his perspective of our current market. Ron told me that he’s been saying this to his buyer clients,“Find the home you love first. Then let me negotiate the best deal. Don’t put the deal first thinking you should get an automatic 30% off.Those houses that have been sitting for months and months may be the very same houses that take a long time to sell in 3 years. Find the house you’re excited to drive up to every evening. That’s where you should live. Then we’ll go and get you the best deal possible for that house.”
I like Ron’s advice to buyers. It’s not only practical, it’s tactical. Buy smart. Think about the street appeal, the location, the floor plan, the comparable sales in the neighborhood. Analyze whether you think the house will appraise.You need a great real estate broker to help you through all of this. And ultimately, you need to be excited to come home every night. I’m not talking about your choice of spouse, but your choice of house.
To search for your next great house (spouse not included) use the search function at GretchensDenver.com.
And yes, I did buy esc4p3 on vinyl…
| Discussion: 6 Comments »
A Tale of Two Markets - Denver Real Estate’s Opposite Ends of the Spectrum
May 3rd, 2009 categories: Market Trends, Real Estate News, Relocation Tips, Selling Strategies
I was a busy Realtor today. Showing houses in the morning, an open house in the afternoon. Typical Sunday.
Morning Glory
It was an interesting dichotomy. My morning clients are an adorable couple with their baby looking for their first home together. They can spend around $160,000 for a single family house. That’s a tough price range in Denver Metro Real Estate. The houses that fit their criteria are either trashed foreclosures or they already have multiple offers. The best house today had three offers pending bank approval when I called to tell the broker we had some interest.
In the lower price range, we’ll need to be ready to move fast when we find that perfect house. Buyers must be pre-approved, should think hard before they ask a seller for concessions, and shouldn’t expect sellers to accept an offer contingent on the sale of another property.
Afternoon Delight
This afternoon, I held my Park Hill listing open. This is a new home built in 2007 and is priced at $1,749,000. The house is absolutely gorgeous, but this price range is struggling in Denver. We’ve marketed the house like crazy, held it open many weeks in a row, even reduced the price a couple of times. Sellers in this price range must understand that the only real weapons we have are price reductions until the house sells or time. Time may take longer than most sellers would like. Thankfully, these sellers are very supportive and patient and they understand the market. Many Realtors I know are receiving tremendous pressure from their clients, and it’s a big burden when you have little control over market dynamics.
I firmly believe that our burgeoning lower end real estate market will soon be trickling up into higher and higher price points. Jumbo mortgage rates are more affordable and comparable with conventional loans. Pent-up demand is seen in the numbers of people going through open houses every weekend - even with the Nuggets in the playoffs this afternoon!
Buyers - Prepare by contacting your lender first. Get a pre-approval, keep on top of new inventory through a real estate broker, and don’t assume you can lowball anymore.
Sellers - Respond to what else is selling in your neighborhood. If similar houses are selling at 10-20% less than yours is listed for, then you are overpriced. Appraisals are tough right now, you need to be able to see what the market is telling you about the value of your house. Give it time, there’s an ass for every saddle - someone will love your house - listen to the wise counsel of your broker and the buyers’ feedback and in time you’ll have your name off that title.
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Top 3 Reasons to Understand Real Estate Agency Rules in Colorado
April 19th, 2009 categories: Relocation Tips, Selling Strategies
You’re thinking about buying Denver Real Estate and you’re ready to hire a broker to represent you. What you need to know is that we have very specific rules here in Colorado about disclosing and explaining the rules of Agency to our clients and customers.
There are 3 very important reasons to understand the Colorado Agency Rules before you get started:
1. Is Your Broker a Coach? I like to explain to people that an Agent (a Buyer Agent or a Listing Broker) is like a coach. We have a fiduciary obligation to represent your best interests, negotiate on your behalf, uncover issues with the property that are discoverable and disclose any pertinent information we might have or learn. Your coach puts you in the game, advises you how to play and roots for you all the way.
2. Is Your Broker a Referee? If your agent is working for you as a Transaction Broker (sometimes called a TB) then you can think of her as the Ref. The referee runs up and down the field and makes sure the game is played fairly. A TB will owe you the duty of honest and fair dealings, but will not be able to advise you or represent your interests. It’s required that a broker who is working with both the buyer and seller either be a TB or keep the Agency relationship with one client and treat the other as a “customer” - someone he has no brokerage relationship with at all. It’s not inherently bad to have your broker be a TB, but always ask in what capacity is your agent working with you.
3. Do You Have Anyone in Your Corner? If your broker is representing the other party as an Agent and treating you as a customer, you might want to rethink that relationship and get some help and advice. I’m always amazed at the people who will walk into an open house, say they want to make an offer, but also say they want to do it on their own to, “save the co-op commission.” People, really! This is probably the most complex and expensive purchase of your life! Get someone who understands the ins and outs of real estate to help you. If you like the broker at the open house, ask her if she can be a TB (her sellers would have to agree.) You can also ask her to make a referral for an outstanding Buyer’s Agent. You might even want to engage the services of a crack real estate attorney. We aren’t required to use attorneys in Colorado transactions, but someone should be in your corner.
For more information on Colorado Agency Rules, you can visit the Colorado Real Estate Commission site. And one more thing - these disclosures are supposed to be made in writing! Ask your broker for the Definitions of Agency if you’d like a more thorough description.
| Discussion: 4 Comments »
Denver Real Estate | Denver’s Architectural Styles
January 3rd, 2009 categories: Life In Denver, Relocation Tips, Selling Strategies
When you’re selling your home in Denver, you may want to have the correct label on the house for it’s architectural style. I’ve seen homes that were clearly Victorian labeled Tudor, or Mid-Century Modern called International Style. Denver Real Estate is replete with fabulous architectural styles, and remember, marketing is everything. Your Bungalow may or may not be Arts and Crafts.
My home is a Tudor style, something my husband and I said we didn’t want when we were looking for a home. We tended to gravitate to clean lines and a more modern, warm feel. Our house was built in 1938, and many of the architectural details reminded me of the house I grew up in, built the same year. While we thought a Tudor home would be dark and choppy, we discovered that the house was perfect for our family’s lifestyle.
Another lovely style that’s been adopted as a Denver original is the Foursquare. Locals call this a “Denver Square” and these homes were primarily built in the late 1800’s and early 1900’s. They supplanted the more embellished Victorians found in many of our older neighborhoods.
Always a favorite of mine is the Modern Style home. Among “Modern” you’ll find Prairie and Usonian styles, and in some 
neighborhoods (Bonnie Brae for example) there are fine examples of International style homes. These tend to be devoid of decoration with clean lines and flat roofs. As a child, our coffee table books were Art or Architecture books. I clearly remember thumbing through my parent’s Bauhaus book and being enthralled with the artistry of the style.
Other typical Denver styles of architecture are Neoclassical and Georgian. These are often confused. The Georgians are very symmetrical and formal. They usually have a grand entryway or portico. The keystones above the windows are another giveaway that you’re looking at a Georgian style home. The Neoclassical style shows off the very prominent columns and you can’t mistake the look that was intended to mimic a Greek Temple.
Finally, we must admire the workhorse of Denver’s Washington Park neighborhood - The Bungalow. Bungalows in Denver are low slung and brick. They typically have lovely front porches with brick columns holding up the roof. Many bungalows have beautiful Craftsman style mill work inside, and it’s always a pleasure to find the warm wooden trim unpainted or restored.
Central Denver is a unique mix of architectural styles, and while some have been adapted with a western flair, there are elements of historic styles in new and older neighborhoods. Read today’s terrific article in the Rocky Mountain News if you’re interested in more information on Denver’s architecture.
Enjoy your search for a new home in Denver, Colorado!
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Eight Home Closing Essentials
August 29th, 2008 categories: Real Estate News, Relocation Tips
Real estate purchases can entail hours searching online for possible homes, days in the car with your real estate broker looking at those homes. Discovering that sometimes the pictures don’t exactly match up with the reality, and then finally pulling the trigger and preparing an offer.
Now what?
The period of time we call “under contract” in Colorado Real Estate, sometimes known as “in escrow” in other states, can stretch out for weeks and make time feel like it’s moving at a snail’s pace. There is much to be done, though, and these eight real estate closing fundamentals are important to know:
Property Inspection - The home should be inspected, and you should definitely accompany the inspector while he or she is there. This is a great time to ask questions, and get a sense of whether the property is truly the right one for you, as well as whether there are any material defects you will want to ask the seller to clarify or repair.
Underwriting Period - We build time into our Colorado Real Estate contracts for appraisal, underwriter review of your financial situation and final loan commitment. Each step is essential to getting your loan finalized for the closing day. In Colorado, we schedule a pre-determined closing date. This means that the loan must fund and the documents finalized and delivered to the Title Company by the date you’ve chosen as your closing date. Make sure your lender knows the procedures in Colorado.
Title Review - The Listing Agent will order the title commitment from the closing company. You and your agent will have time to review the document to ensure that you’ll be receiving clear title to the property. You can also choose to have an attorney review any and all documents throughout the closing period. In Colorado, we typically don’t use attorneys to close residential real estate, but you may certainly choose to do so. Especially if it’s a somewhat complicated transaction.
Scheduling Moving Day - Another customary practice in Denver Real Estate transactions is for the buyer to take possession of the property a couple of days after the closing. With a vacant property, possession is typically granted the day of closing. Make sure to check the dates and deadlines in your contract before you schedule the movers.
Walk Through - Most buyers choose to have a walk through the day or so before closing. In the real estate contract, it states that the buyer has a right to walk through and verify the condition of the property prior to closing. Some buyers who are buying a vacant house and have been through it a few times state that they don’t need to have a walk through, but it’s really a good idea to do so. This is your time to check that all of your requested repairs during the inspection negotiations have been completed.
Utility Transfer - The water departments here in Colorado have lien rights on properties, so the Title Company will transfer that utility for you on the day of the closing. They’ll arrange to have the final reading done and the final payment withheld from the Seller’s proceeds. Other utilities such as gas and electricity, satellite or cable and phones should be contacted a couple of weeks prior and you’ll need to arrange to have them transfered the day of closing. The Seller should also call and give permission for the utilities to be removed from their name and put into yours.
Final Closing Documents - As I said, the Colorado real estate contract calls for a pre-scheduled closing date. Everyone comes to the title company on the designated closing date and signs the closing documents, then the deed is transferred and the keys handed over to the buyer. We like to say that there are “two closings”. The usual order of the two closings is to close the real estate portion of the transaction first, then close the loan portion. There are many documents to sign and there will be little time to review them word for word. It’s important to look at the key fundamentals, and always feel free to ask questions if you aren’t sure what the document means. It’s certainly appropriate to request a full packet of the closing documents ahead of time to review before you come to the closing. This isn’t typically supplied by the Title Company, so you’ll need to have your agent request it at least a few days prior to the closing.
Pack and Move! - Many buyers say that they have more stuff than they thought. You’ll save money with the moving company if you have all of your boxes packed up ahead of time and moved to a central location. The movers will be slowed down if you’re still packing boxes while they’re moving you out, so plan on being super organized for the moving day.
| Discussion: 8 Comments »
