Contract Timelines Will Affect You

Buyers and Sellers, Your World is Changing, so listen up!

Some changes have taken place on the lending side that will affect your world and you really need to know them when writing contracts. These changes took place 7/30/09. It will affect how contracts are written and how transaction fees are disclosed.

New guidelines for dates:

Loan Application Deadline: 1 day only
Inspection Deadline: 3-4 days
Resolution Deadline: 4-5 days
Appraisal Deadline: 3 weeks minimum
Closing Deadline: 6 weeks
Ideal closing date: around the 20th of each month, NOT THE LAST DAY

Basically what this is going to do is slow down the entire real estate industry. Once the lender gives a good faith estimate, if the APR changes by 1/8 of a point by the closing, new disclosures have to be signed and the clock rolls back on the lending process, causing delays for your buyer.

A 30 day close is going to be next to impossible to pull off. A 45 day close is highly recommended and might be the only thing you can rely on. You need to give enough time for the appraisal process (2 solid weeks after your Inspection Resolution Deadline,) and you do not want to close at the end of the month, or even close to it if you can help it. If that 1/8 rule gets broken at all and the loan is delayed, you better allow yourself breathing room to close it that month. AND if the closing doesn't happen the last day of the month and has to leak into the next month, the APR will automatically change more than 1/8 of a point, and you are guaranteed a 1-2 week delay and a lot of heartache for all parties at that point.

Who is going to look bad in the deals? The lender. And consequently the buyer. And consequently YOU. But the lenders are getting pushed around by these new government rules and they can’t do anything about them.

Most fees to the buyer are going to have to be disclosed to the lender once you are under contract, because he will have to build that into the APR. Also, Title companies are going to have to get used to putting out estimated HUD's sooner than they ever have; anytime a buyer wants to lock in a rate it will be needed so the lender is aware of all of the fees and can disclose them up front.

So be advised that if you ignore these changes potential pain is coming for your contract!

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Tips for Selling any House in Parker Colorado, or Anywhere Else For That Matter!

Top 10 Seller Sins

1. Priceaphobia: The fear that a property will sell for less than a premium price. Price and greed combine to form a drug like addiction to unrealistic expectations. Researchers are split in attributing this to heredity or stupidity.



2. Shagitis: A burning sensation due to the realization that a home is not a castle when placed for sale. Shag carpet is not coming back. Get over it and have it replaced. Halloween is one day a year. Orange counters are ugly every day of the year. Hire a home stager.



3. Pet Addiction: The feeling that everybody loves your pet as much as you do. Symptoms include scripts such as, "His bark is worse than his bite". Or, "The cat must like you to nestle in your lap". Or, "Don't put your finger in the cage".



4. Photorea: A need to keep dozens of old photos hung to distract a buyer's attention from the real property. A variation of this virus includes 'childhood incrementalism'. Monthly photos of the first born that are in chronological order as a buyer ascends the stairs.



5. Pack Rat Plague: Doll collections, old Coca Cola bottles, Civil War rifles, WWII bayonets, mounted swordfish, big game taxidermy, high school trophies, college dioplomas,10k race medals, Toastmaster ribbons, bronze baby booties, salt & pepper shakers, and Grand Canyon placemats. Prepack these items.



6. Additionism: What was the seller thinking when they enclosed the garage? Probably not the same thing a prospective buyer is estimating. Cold winter cars, hot summer sun, faded auto paint, and remodeling funds. Bigger is not always better.



7. Fried Fish Fetish: If you can smell it, you can't sell it! What do cigar smoke, kitty litter boxes, piles of backyard pet poop, and baby diapers have in common? Shorter visits and fewer breaths by agents and buyers.



8. 'As-Is' ism: If a stubborn seller says, "The buyer can take it or leave it as-is"; they usually won't. Buyers 'horribilize' defects. A broken doorbell symbolizes electrical problems. A cracked window means a faulty foundation. Water stains come before roofing problems and future floods.



9. Color Blindness: Webster's dictionary defines a real estate tour as, "Agents caravaning from house to house making fun of decorating disasters". Most color schemes are ephemeral. Navajo white, white washed cabinets, and flocked wallpaper are out. Less is usually more.



10. Audio Selectivism: The ability of a seller to hear only what they want."The buyer must be confused". "The appraiser was in a bad mood". "My neighbor said I wasn't asking enough". There is a difference between hearing and listening



This is also a great article below, and totally true:



The Secret of Selling Houses
By: Paul Pastore


Albert E.N. Grey once said in The Common Denominator Of Success that, "The secret of success of every man who has been successful lies in the fact that he formed the habit of doing things that failures don't like to do". The same quote applies to home sellers.



Unsuccessful sellers (called expired listings) have formed bad habits such as: not listening to their agent's advice, not pricing the property aggressively, not making cosmetic changes, and not periodically reducing the listing price.



Successful sellers don't enjoy doing the items above, but their motivation mandates that they focus on the goal of selling as compared to micromanaging the marketing. Successful sellers 'respond proactively' to no showings, no offers, low offers, or elevated inventories.



Unsuccessful sellers 'react emotionally', defend their egos, and are quick to shoot the messengers. Warren Buffet said, "Price is something we pay when we buy. Value is what we receive when we sell". Some sellers fail to realize there is a difference between cost and value.



Recently, I visited an expired listing. They wanted to move from Arizona to Missouri since their relatives relocated to that destination. Their house was free and clear. They didn't want to reduce their price. They were unsure why their brightly colored, overpriced, property that backed to a busy street was rejected by the local market.



M/M Expired had located a bank owned property in Missouri that was 100k below market. A smart seller would discount their price to affect a sale in Arizona so they could recapture the loss and buying bonanza in Missouri. A stubborn seller would 'step over dollars in order to pick up dimes'. A stubborn seller would wait for the market to change. A stubborn seller would miss those priceless moments with their relocated relatives.



The secret of selling houses in this market is to retain an aggressive agent, lead the field with a competitive price, remain patient yet proactive, and a realize a protracted time on the market is not a favorable ally.

Stonegate Stunner!

Offering tantalizing amenities at a true value, this home features 5 bedrooms, 4 baths, and 3582 finished square feet. The location is ideal; one block from Lincoln with quick access to the Tech Center or E-470, and shopping minutes away. The lot sits on a corner, so one less pesky neighbor to deal with. Plus, it fronts to a nicely landscaped park, so its open and private in the front.

This two story home offers the classic floor plan everyone wants. In the front is a living/dining combination, and in the back is a appealing 2 story family room with a wall of windows and entertainment center wired for surround sound. Want to work at home? A private office space awaits you in the corner. The expansive kitchen features loads of Oak cabinets, including a center island and built-in desk space. Gleaming hardwood floors in the kitchen and hallways give it a warm and rich feel.

Upstairs is a large master with vaulted ceiling, and sumptuous master bath complete with striking walk-in closet (that could be a small bedroom in itself!) and large soaking tub. A generous loft could be another office space, bedroom, or living space.

The basement is 90% finished and ready for your personal touches All it needs is light electrical, doors, and carpet. A fully finished bedroom and full bath are ready for you now though! Put this house on your must-see list!

Other amenities include: Sprinkler/drip system, air, refrigerator, 6 panel doors, sink in laundry, 3 ceiling fans, deck and patio outside.

2009 Color Forecast

With the new year comes change. People are changing the colors around them in fashion and home interiors. Yellow is still going to make a statement. The color is bright and uplifting, especially in trying times. Soft neutral yellows will be seen in more homes. The overall colorpallet is toning to softer hues with a dusty palett. The traditional neutral beige is turning to the grey neutrals for both commercial and residential spaces.

Color Trends!

Sellers Beware!

A lot has changed in our market. Some good, and some not so good. I have been recently encouraged that the media is finally starting to report some good things. The Front Range metro area has been named on more than one occasion as an emerging top real estate market. Most recently, the Denver Business Journal reported that the Urban Land Institute had named Denver among the top real estate markets in the country.

Obviously it’s a great time to buy a home. Yes, there are plenty of challenges. But for those looking for the right home, it’s never better. With the elections behind us, there are signs home buyers are coming back out to look. Though traffic is up, there appears to be a lot of uncertainty on the buyer’s part as to “what is a good deal?” Whether they pursue resale or new, they want to know they are getting a great value. I've seen tremendous price reductions in the new home market around Parker Colorado. We're talking over 100K price reductions sometimes, so they are doing what it takes to stay competitive with the relase housing market I'll give them credit for that (but hey, I firmly believe those homebuilders were part of the cause of this housing spike too so they deserve to get hit hard.)

Most buyers have expectations about buying at the right price and fear overspending. So if you are a seller, don't be in denial! You have to be realistic about pricing your home, or it is going to sit. Nobody cares what you want to get out of it. Nobody cares what you bought it for, and nobody cares what you put into it either!

New Workshop Launched-Come One Come All

If you would like to join a group of people who are all interested in Parker Colorado real estate, this is your chance. We will be meeting twice a month so you have ample opportunites to meet with us and share/grow your knowledge of real estate.

Power Real Estate Buying and Selling Skills

This Blog is dedicated to Parker Colorado Real Estate and homes in Parker Colorado, Elizabeth Colorado real estate and Elizabeth Colorado homes, Franktown Colorado homes and Franktown Colorado real estate, Castle Rock real estate, Castle Rock homes, and metro Denver Colorado real estate property listings. Search for Denver homes and real estate directly at http://www.coloradodreamhomes.info/ and access a huge real estate resource at http://www.coloradodreamhomes.net/

What Planet Are These People Living On?

Looked at those fancy magazine inserts from Fuller Towne and Country or Kentwood recently?

The listings in there are mind boggling. Most of those homes are in the upper tiers of the price ranges for the Denver Area, but to me, they look extremely expensive! I cannot believe homw many homes are listing for 2 million, 3 million, 4 million and way more up in Denver! To me, it seems like these people are living in a different world! The luxury home buyer is not stupid these days. The "Greater Fool" theory doesn't apply anymore in my mind, but these people are living in a dream world of their own fantasy.

Just because you spent 1 million on a home 3 years ago and remodeled a bathroom, doesn't mean that same home is now worth 1.8 million! What are these people thinking? Are they blind to the economy? Are they blind to the stock market crash? These people are crazy enough to think that in their price range, buyers don't care because they are probably going to pay cash anyway. The luxury home buyers are not sensitive to pricing and will pay whatever they have to to get the right property. Yeah, right. Those days are over.

The lower pricing tiers have seen a big hit in price, so why should these home be any different? One day over a year ago I was fortunate to show a few homes listed for over 4 million around Cherry Creek, and guess what? They are still sitting there at the same price! What gives? Are these people stupid enough to think that they can "wait until the market catches up to their pricing?" Are they willing to wait say, 9 years?

There is even a home in Parker Colorado listed for 22 million. It's been listed since September 2007 at this price. Do you think they might consider a price drop by now? No! Because those buyers living from another planet are going to swoop down from the heavens and give them their price someday! By the way, what does a price drop look like at that price level? You'd have to come down in increments of 500,000 to make any difference at all. Crazy.

This Blog is dedicated to Parker Colorado Real Estate, Parker Colorado Homes, Elizabeth Colorado real estate, Elizabeth Colorado homes, Franktown Colorado homes, Franktown Colorado real estate, Lone Tree Colorado real estate, Lone Tree Colorado homes, Highlands Ranch real estate, Highlands Ranch homes, Castle Rock real estate, Castle Rock homes, and metro Denver Colorado real estate property listings. Search the Denver MLS directly for properties and homes at http://www.coloradodreamhomes.info/ and access a huge real estate resource at http://www.coloradodreamhomes.net/