Realtor F.A.Q.
These are some of the most frequently asked questions I get from clients looking for homes for sale in Colorado.
Q--What is the biggest challenge you are facing this year with the Subprime Fallout?
A--Appraisals are now scrutinized more closely by the Underwriters. Sometimes, the negotiated price per the contract has to be reduced per the appraisal.
Q--Which areas have been affected most by the Subprime and Foreclosure Crisis?
A--Recently, I heard that Adams County, which is Northeast Denver, has now been classified as an "Area of Declining Value" Lenders are requiring Buyers put up an additional 5% down payment due to the high foreclosure rate in Adams County.
Q--Is the Colorado Division of Real Estate doing anything to crack down on Mortgage Brokers as a result of the subprime meltdown?
A--Recently, they came out with this "Emergency Rule" for Mortgage Brokers: Disclosures for Mortgage Lenders There's a lot of reading here, but very worthwhile when you are in process of initially talking to a Lender.
Q--Which website(s) do you recommend for searching properties?
A--I recommend two websites for searching. www.coloproperty.com is an excellent site for searching. It's the public version of the Northern Colorado Realtor MLS we use, it's updated nightly. You don't have to submit an email address to use the site and will never receive any emails from the site. And another good website is www.remax.com which also does not require you to sign up or submit your email address to use. Re/Max redid their website recently to include all listings from the MLS, not just Re/Max listings.
Q--What cities in your area have the best rate of appreciation over time for Real Estate?
A--As a Realtor who works in Louisville and covers Boulder, Superior, Broomfield, Lafayette, Erie, and Longmont I get this question a lot. The most simple economic theory applies here, "Supply and Demand." You always to have to keep in mind "supply and demand" when buying a property. The cities which are still building a considerable amount of new homes are Broomfield, Erie and Longmont. So, if you are buying a home in one of those cities you have to see where your house will match up against new inventory over time. Right now, Boulder Houses, Louisville, and Superior have good resale value because there's not much new construction and the Demand is strong in these cities. I exclude Boulder Condos/Townhomes from that statement because Builders have been building a lot of that product in Boulder the past couple of years so the Condo/Townhome market is very soft.
Q--In general, how are the schools in Colorado?
A--Overall, the public schools in this are area are above average. You have to look at each school's Report Card and CSAP test scores.
Here's a good link for Boulder Valley School District School Report Cards and you can drill down to CSAP Scores for each school. www.rockymountainnews.com/education
And a link for St. Vrain Valley School District www.rockymountainnews.com/education
Q--How many houses do we need to see before we find the one we want to place an offer on?
A--This is a tricky question. Some Buyers find the house they want within the first 5-10 they see. And then some Buyers need to see a lot more before they find the house they want. What I tell my Clients is most important in the beginning is to identify what you don't like vs. what you like so you can eliminate those types of houses from the search. For example, if you don't like Ranch Style houses then we can pull those from our search. I believe in the Sherlock Holmes method "When you have excluded the impossible, whatever remains, however improbable, must be the truth.” The same is true for house hunting, once you eliminate what you don't like it leaves you with the options which you do like.
Q--Do people come on a weekend look at houses and buy a house in 2-3 days?
A--Yes, lots of people do this. When people are relocating here they come on a "house-hunting" trip which is usually paid by their new employer. The transferees coordinate their trip with their Realtor and if they need to buy a house to coordinate their move they can usually get this accomplished in a long weekend. It is possible but it requires a lot of coordination and a high level of expertise from your Realtor to show the homes which have the best possibility of meeting the needs of the Buyers moving in from out of town.
In July of this year I helped two couples with children who were relocating to this area. The first couple and I coordinated our list of homes they wanted to see and when they got here we went and saw homes in Longmont, Erie, Frederick, Firestone, Windsor and Loveland. In two days we viewed 22 homes and on the third day of their visit they chose a home in Loveland and we wrote a contract later on the third day and we were under contract the next morning. The second couple I helped viewed 25 homes with me in Boulder, Superior and Louisville in two days. Late on the 2nd day we saw three of the homes on their "short list" and on the third day we wrote a contract on a home in Louisville.
Q--I get this one a lot lately. Is it a good idea to try and get a great deal on a property under foreclosure in Colorado?
A--First off, foreclosed properties are under foreclosure for one reason most of the time. The Seller is not able to sell their house in a timely fashion. Most of the foreclosed properties in Colorado recently have been in high growth areas where the Builders are still building new homes. Just because you think you are getting a good price on a foreclosure doesn't mean that it's a good deal.
Buying a foreclosed property in a low-demand area could eventually cost you money over time. Because most foreclosures require a lot of work and money to get the house back into "move-in" condition you are then putting money into the house above the price you paid for it so then your cost goes up. Someone told me recently they had an acquaintance who bought a foreclosed property in Erie and they tried to do a "fix and flip" on the house. Well, once they put money into the foreclosed property and fixed it up they then found they could not sell it because of market conditions in Erie at the time where they were competing with a lot of inventory and new construction homes as well.
I know a lot of people watch many of the fix and flip shows on TV and think they like to do the same thing. The successful fix and flips are found in high demand areas. Here most of the fix and flips the past few years have been in Boulder--South Boulder areas like Table Mesa and Devil's Thumb, North Boulder Neighborhoods and Chautauqua Neighborhoods--and Louisville has seen an increase of fix and flips and scrape-offs in Old Town.
Q-Do you like being a Realtor?
A-Yes, I do. I have many years of sales experience that I can use in Real Estate and my knowledge of the area since I have lived here so long really helps me and my customers. What I like best about being a Realtor is I make a difference for my clients by adding value to them during the buying and/or selling process.
