What are the economists saying? |
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So ... what is the economic forecast?
We're certainly not economic experts, but we frequently attend economic forecasts and try to stay up on what the experts are saying.
At several of these briefings in 2011, the economists in our region were in agreement. The Colorado Springs area wasn't as hard hit as other areas due to our large, stable military base - those servicemembers didn't lose their jobs and didn't take pay cuts. We seem to have bottomed out in November of 20009 and currently are in an inflationary status. Something we learned about inflationary periods ... all you have to do is watch the price of gas. If you're paying more for the same thing, then that's inflation.
All the economists agreed that during an inflation, real estate should be part of your investment strategy ... it tends to be a stabilizing factor when there is market uncertainty.
Contact us if you'd like to make real estate part of your investment portfolio.
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Foreclosures, Short Sales & Bank Owned properties ...
"I've gotta have a screaming deal!"
We hear that occasionally from one of our buyers or investors. They've been reading about all the owners who are behind in their payments and know all about how desperate they are to sell the property ... or they're convinced they will get a great deal if they find a foreclosure, or otherwise financially distressed property.
Some of that is true ... if you have patience and check out a bunch of these properties you sometimes can truly find a rare bargain. The only problem is that there are a bunch of buyers with the same mindset and you're all competing for the few really good bargains out there.
In many cases when owners are forced out of their properties they aren't really happy - frequently these properties are stripped of appliances and light fixtures and the interior is otherwise damaged or destroyed. When considering one of these properties the cost of getting it back into habitable shape has to be analyzed. The types of loans available for properties in need of repair are limited and in almost all cases the properties are being sold "as is," meaning the Seller has no intention of making any repairs.
In the case of a property in foreclosure, there are time constraints within which a purchase must occur, otherwise the property is sold to the highest bidder on the foreclosure date.
In the case of a bank owned property or if the property requires a short sale agreement from the lender, it may take from several days to months to get the agreements necessary to get the property under contract or to have the short sale approved.
These transactions require patience and after much work and waiting they may not turn into closings. If this is what you're after, plan on taking some time to achieve your goals - you may have to identify and make offers on several properties before one of the transactions works for you. We have experience in these troublesome purchases and can help you unlock the doors to a successful acquisition!
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Services we provide for Buyers:
- Assist in finding the right lender ... and the right loan product
- Identify properties that match your budget and your needs ... land, residential resale, new construction or residential investment properties
- Show you neighborhoods and properties
- Determine market value of the properties you like
- Prepare the purchase offer
- Negotiate on your behalf
- Coordinate inspection of the property
- Track contract dates
- Ensure contract terms and conditions are met
- Prepare for closing of the sale
- Help you through closing
- Available for assistance after the sale
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 How we work with Buyers ...
- Buyer Interview ... we like to start by learning a bit about your family, occupation, recreational activities and your desires in a home. A short interview allows us to focus the process so we don't waste a lot of your time.
- Get connected with a good lender ... we can help you with this during the interview. Your lender should be prepared to issue a prequalification letter when we write your offer.
- Neutral or Your Advocate? ... In Colorado, when we first meet you we are neutral in the home purchase process - if you want us to be your advocate, and almost all of our Buyers do, then we have to complete some paperwork to establish that relationship
- The elimination process ... The home search is like a big pyramid - we start at the broad bottom and start working our way up, narrowing the search until we reach the tip (the 2 or 3 homes you like the best)
- The top 3 ... now it's time to get really serious! Let's find out more about the properties you really like and prepare to make an offer - tax records, permit history, market analysis all help decide what you should offer
- Make an offer .... the paperwork takes about an hour - we'll explain the entire contract and we'll help you fill in all the entries in the Colorado Real Estate Commission approved contract form
- Negotiation ... if you've agreed that you want us to be your advocate, we get to work trying to get you the terms and conditions you want - we may have to go back and forth between you and the Seller until we reach an agreement
- Under contract! ... Wow, you got the home!!! ... almost. Now we have to get through the contract provisions and take the sale to closing
- The loan process ... The lender is going to want documentation to support the verbal information you've already given him. You should move quickly to get that to the lender so your loan can be processed
- Inspection ... you'll have the right to inspect the property, and we encourage you to hire a qualified professional to do that. We'll explain your rights under the contract if you find something you don't think is right
- Appraisal ... your lender will order the appraisal - the property has to appraise for the sale price or more, or your lender won't issue the loan
- Closing! Woo - hoo! You'll need photo ID and your immediately negotiable funds for any amount you're bringing to closing. In Colorado you usually get the keys to the property at closing. Now it's time to get busy decorating and moving into the new home!!
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 Here are some tips for Buyers!
- Start by prequalifying with a lender ... this only takes about 20 minutes over the phone - only look for properties you can afford to buy
- Work with a reputable lender ... not all loan originators are created equal! As you shop lenders, find one who is established, has a good track record, and one who is familiar with Colorado real estate transactions. Some out of state lenders are not familiar with Colorado transactions.
- Find the right loan product ... there are many different types of loans out there, and the types available and interest rates change frequently. As you talk about different loan products ask: what will it cost me up front?; what will it cost me over the life of the loan?; and what will it cost me during the time that I intend to own the property?
- Determine what your requirements are ... how many bedrooms, baths, garage size, lot size, style of home and locations that are acceptable to you, how quickly you want to move in ... the more you can tell your Realtor, the faster you will find the right property
- Your best source of properties is the MLS ... our Pikes Peak Multiple Listing Service requires Realtors to post properties under contract, pending and sold. If you get your properties from this source, almost all of them will still be available for sale.
- Give your Realtor a bit of notice ... it takes a little time to research the homes you want to see and to set showings
- Get a baby sitter ... you can move faster and see more homes without the kids; you can always bring them back when you find the 2 or 3 homes that pop to the top of the list
- Hire a professional home inspector ... a good inspector is a teacher - you will learn much about care and maintenance of your new home. If the inspector finds something that causes you not to buy the home, it will probably be the best money you ever spend.
- Don't make any major purchases ... if you do that while you're searching for and buying a home, it can change your credit scores and you just might not get the loan!
- The best tip we can give you is to have you contact Marsha & Ron to help you with this confusing process! Send them a note.
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