5 Tips to Prepare Your Home to Sell

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When buying or selling a home, there can often times be issues that are uncovered during the inspection process. In order to avoid surprises and insure your home is ready to sell, we recommend addressing five items that commonly cause home sales to fall through.

 

1. Have the Sewer Line Inspected

 

More often than not, homeowners neglect their sewer lines and are completely unaware of their condition. By hiring a licensed professional to inspect the lines, you can rest assured your sewer lines are free from any cracks, tree root intrusion, or other possible issues.

 

2. Check Your Roof for Damage

 

Along with sewer lines, your home’s roof is a big ticket item that buyers are concerned with. With hail storms in Colorado, it is always best to have your roof inspected for damage as soon as possible. Damage that is unattended to can lead to more severe issues and a more costly repair.

 

3. Inspect the Electrical Wiring Throughout Your Home

 

Newer homes typically don’t have issues with proper wiring, however, older homes built between the 1920’s and 1950’s may have older wiring that has yet to be updated. If this is the case, the wiring must be brought up to code in order to handle the higher voltage modern appliances.

 

4. Make Sure Your HVAC Systems Are in Good Condition

 

HVAC systems include your furnace, air conditioner, evaporative cooler, and water heater. Having these essential components inspected before selling your home will give you and potential buyers peace of mind knowing everything is in working order.

 

5. Test Your Home’s Radon Levels

 

Colorado has higher levels of radon gas than other parts of the country. If the levels in your home are high, installing a radon mitigation system will be required to ensure your safety and the safety of your buyers.

 

By having these five items inspected before selling your home, you can eliminate some of the headaches and surprises that popup throughout the process, give potential buyers better piece of mind, and you more negotiating power having taken care of these beforehand.

If you are currently preparing to sell your home or would just like to have these items inspected. Please reach out to us and ask for our recommended inspectors by contacting us above!

Choosing the Right Home

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Looking for the right home can be a daunting process for first time buyers and seasoned vets alike. From the style of the house to the type of appliances, there are countless factors that can go into such a big purchase. The following short checklist outlines the most important things you should think about when you’re on the hunt for a new home. 

1. Define your budget: 
It’s never fun to fall in love with a house that you can’t afford. Avoid the heartbreak by taking the time to analyze your financial situation before you begin the search. Start by reviewing your credit score, monitoring your debt and choosing an appropriate down payment. Meeting with a financial professional can help you get an accurate picture of your financial situation and the loans you are eligible for. 

Looking at your debt-to-income ratio is one of the ways that creditors establish how qualified you are for a mortgage loan. Your debt-to-income ratio is determined by taking your monthly debt (think current mortgage payments, student loans, car loans, etc.) and divide them by your gross monthly income. Ideally, you want to keep that ratio at 43% or lower. According to the Federal Consumer Finance Protection Bureau, “studies of mortgage loans suggest that borrowers with a higher debt-to-income ratio are more likely to run into trouble making monthly payments. The 43 percent debt-to-income ratio is important because, in most cases, that is the highest ratio a borrower can have and still get a Qualified Mortgage.” 

Don’t skip the down-payment analysis! A huge factor in getting the best mortgage rate relies on how much cash you are able to put down initially. The rule of thumb has been to put 20% down as a minimum. Anything below the 20% rule will usually require mortgage insurance and end up costing you more on the loan long term. Determining the right path for you will require you to analyze your own situation—your budget, timeframe and any other factors involved in figuring out your financial capacity to save and put money away for your new home. 

2. Your Must-Have List: 
Always search for homes that meet your “must-have” list. A must-have list encourages you to write out exactly what you need in a new home and will significantly aid in narrowing down the scope of your search, especially when searching with another person. This list will also foster communication on critical aspects of your new home that might not have been discussed previously, and help you identify requirements that may be in conflict with each other. 

Focus your list on the high-level, pricey aspects of a home. Minor changes such as painting and smaller renovation projects can be worked on down the road, but changes that add up in time and money should be avoided (think kitchen remodels or adding another bathroom). Narrowing down your search to homes that don’t require major changes will help ensure you choose a home that is within your budget. 

If you are struggling on where to start, think about what type of home you want to live in–Single Family or Townhome/Condo? How many bathrooms and bedrooms do you need? Do you want a fireplace or pool? What’s the minimum lot size you would be comfortable with and do you require a garage? What about air conditioning? 

Keep your list short and sweet–try to keep your must-haves on the shorter side by focusing on major requirements and ranking them by importance. Prioritizing your list will help when it comes to decision-making time, as selecting a home will often require some flexibility. Your list will provide you with an easy way to determine which aspects you can compromise on and which are red flags telling you to move on. 

Compromise can be hard, but don’t let small things completely take a home off of your short list. Remember, minor changes such as painting and smaller renovation projects can be worked on down the road, however, if there are a lot of these things the costs of those projects can add up. Focus on the minor modifications that you feel comfortable changing. 

3. Location, Location, Location! 
While the importance of location is often a no-brainer, the location of your potential new home serves multiple purposes. Location will impact your daily life and happiness as well as your home’s value down the road. 

When looking at location in terms of resell value, you want to look at a multitude of things: school districts, crime stats, and the neighborhood & community. A little research can answer most of these questions, and this website offers Market Insider, a tool to give you details on all these factors and more! Besides looking at the current stats and trends, take this information and think about what the value of the area might be in 5 or 10 years when you potentially could resell your home. 

Along with the resale value, analyze the location of a home from the perspective of your wellbeing and happiness. Things such as your daily commute, surrounding noise, and community will greatly shape your experience in the home. 

Along with this checklist, seeking guidance from a professional is always a good idea! A realtor like me can offer a wide array of skills and expertise, from the showing of a home to the endless paperwork. You can count on me to guide you through the process and assist in your home buying decisions. 

Finding the right home might not necessarily mean finding the “perfect” home, but rather, finding the right home for you to make your own. Hopefully this checklist provides you with a guide to start your journey towards the right home. When you’re ready to start looking, don’t hesitate to give me a call!

5 DIY Improvements to Make Your Home Classier

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Updating your home to be more chic – without looking cheap – is completely doable on a budget. 

If you’re looking to add more class to your home, taking on a DIY project can give your house that extra sense of style while saving you money. No need to cringe at those three little words: “do it yourself.” There really are fast, easy and affordable projects you can do on your own. Here are five relatively easy ways to enhance your home. 

1. Replace Your Light Fixtures
Switching out an old or basic light fixture for a more elegant one is an easy way to shift the ambiance of a room. By adding a sophisticated light fixture, you can control the intensity of the light and character of your room. And you don’t need to pay a pretty penny for expensive new fixtures – you can buy used fixtures online. 

2. Add Floating Shelves
Installing floating shelves in your home combines the functionality of extra storage space with a bit of style and personal flair. Floating shelves can be mounted on walls in many different patterns, and they come in various materials to give your rooms a unique touch. For a small room choose shallow shelves to display framed photos; for a larger room you can afford to use deeper shelves to hold vases, books and unique trinkets. 

3. Paint an Accent Wall
Painting an accent wall can add a pop of color and showcase your personality. Usually a low-risk project, a homeowner of any skill level can tackle this project in a day. You just need some painter’s tape, a brush and the color that suits you! Just make sure the color you choose is complementary with the other colors in the room. Stay consistent between warm and cool tones. 

4. Install Decorative Molding
Adding decorative molding around your home can add an extra touch of elegance. Install molding to the ceiling by capping walls, columns and cabinets, or add chair molding lower to the ground. With detailed molding you can add character to your rooms while also making them feel taller and more finished. 

5. Build a Stone Fire Pit

Take your sophisticated style outside by building a stone fire pit in your backyard. Completed in only a few hours, take uniquely shaped rocks or large stones and put them together to create a functional and stylish fire pit. Before starting the project, be sure to check your local fire codes or homeowners association to ensure you are safe and allowed to start building. 

Adding a touch of class to your home doesn’t have to break the bank! Just be sure to start with one project at a time, allowing yourself to complete one before starting the next. Otherwise, you’ll fall victim to chronic project incompleteness syndrome – not a good look! 

Now that you know about these five inexpensive DIY projects, which will you try?

Top 4 Deal Killers for Homebuyers

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Falling in love is exhilarating. It can also be a bit scary, especially when a home has captured your heart. What if something goes wrong and you end up not spending the rest of your life with this stack of brick and mortar you’re lusting after? 

No matter how careful you are, some deal killers are unavoidable. Others, however, are preventable, so pay heed if you hope to keep your deal alive. 

1. Don’t Mess with Your Mortgage Preapproval
A common reason for a real estate deal to fall apart is that many homebuyers don’t fully understand the mortgage process. Sure, you may get a loan preapproval, but don’t think for one minute that this guarantees you will get the loan. It doesn’t. 

Here’s what happens after you receive your preapproval letter and decide to move forward with the purchase. The lender will start your file, give you a list of paperwork required, order an appraisal and credit reports, verify your employment and income, and more. 

The file is then sent to the processor who will review all of your information as well as the appraisal. He or she will then put together a package of all pertinent information to be sent to the underwriter. 

The underwriter is the person who ultimately determines whether or not you are an acceptable credit risk. He or she will assess your ability to repay the loan, your credit, and the collateral used to secure the mortgage – in this case the collateral is the home. Then, just before funding the loan, the underwriter will perform what is known as a “soft pull” of your credit information to see if anything has changed. 

This is the point where many borrowers run afoul. If you hope to keep your purchase alive, don’t do anything – from application to closing – that might change your financial picture and sabotage your final approval. This means no shopping on credit for appliances, furniture or anything else. Don’t switch jobs, fall behind on your bills, co-sign a loan for anyone, or in any way reduce the income stated on your application. 

2. Read Homeowners Association Documents Carefully
When you purchase a home in a managed community governed by a homeowners association (HOA), you’ll be given a mountain of paperwork to read and approve. Because there may be deal killers included in the fine print, it’s important to get to this task immediately upon receipt of the documents. 

Look for any information about liens against the property; current litigation against the HOA, the builder, or the developer; and any red flags in the HOA budget. Since these documents aren’t easy to read and understand, it is worth the money you’ll spend to have your attorney look them over and advise you of any potential deal killers lurking within. 

While the aforementioned HOA problems could potentially derail the deal, it’s better to have it happen upfront rather than when you’re further along in the process. 

3. Home Inspection Problems
All homes – even newly constructed ones – may have problems. Going into the process not fully understanding this can set you up for a failed real estate deal. Sure, you ideally want to find a home that was owned by Mr. or Mrs. Clean who conscientiously took care of it during their entire ownership, but those are few and far between, and seeking them out is unrealistic. 

Set your sites on finding a home that has small, easy-to-fix problems, and don’t freak out if some are worse than others. In other words, when considering making an offer, laugh at the loose doorknob but negotiate when it comes to water damage or worse. 

The nitpicky homebuyer, who plans on nickel and diming the homeowner into replacing missing switch plates and dripping faucets, is the picture of a deal-breaker-in-the-making. Sure, in a buyer’s market you may get away with minor demands. In a seller’s market, however, there is always a cleaner offer right behind yours. 

4. Budgeting Blunders
The real estate industry does a bang-up job of reminding homebuyers that they’ll need a down payment – typically from 3 percent to 20 percent of the total loan amount – when they purchase a home. What they often fail to inform real estate consumers about are the loan’s closing costs – the money you will be required to pay before the house is yours. This is most likely because closing costs are a little harder to pin down. They vary wildly and depend on the type of loan, the amount of the down payment, and a host of other factors. 

Unfortunately, this lack of information frequently causes real estate deals to disintegrate. To avoid this particular problem, pay attention to all communications from your lender. 

First, you will receive a form called a Loan Estimate. Look this over carefully to ensure that everything your lender agreed to is included. Pay close attention to the “Calculating Cash to Close” section, which concludes with an estimated cost to close the loan. Remember, this is an estimate and the amount may go higher or lower in the end. Speak with the lender if you find any problems here, especially if it will be impossible for you to come up with this money. 

Just before closing you will receive the “Closing Disclosure,” which is quite similar to the estimate, but these figures are final. Again, review the “Cash to Close” figure. 

By and large, real estate deals conclude successfully. Typically, it all comes down to the experience of your agent. Choose wisely and you’ll avoid the common pitfalls that can derail transactions. For a smooth, low-stress real estate transaction, slow down, keep your expectations realistic and heed the advice of your real estate agent or attorney.

Tips for Empty Nesters and Why Downsizing Your Home Could Mean “Living The Dream”

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While owning a home remains the American Dream, “aging in place” or staying in one’s own home as you age is also considered part of it.  However, staying at your bigger home isn’t always the best option. And as you get older, downsizing or settling into a smaller home could also be one definition of “living the dream” and aging in place.

Older Americans, more of whom are homeowners, are now more likely to downsize. At least 37 percent of baby boomers said they plan to move at some point in their life, and 42 percent of that number said they would prefer to live in a smaller home, according to a 2016 study released by the Demand Institute, which is jointly operated by the Conference Board and Nielsen.

In an article by Time Magazine, the current US housing market is said to have more good news towards the empty nesters and homeowners who are looking to downsize, so many are calling it the “empty nester’s housing market.” Builders and developers are now catering to the 55+ crowd or the Baby Boomer market, creating more age-restricted communities, compact townhouses, and even high-service luxury condominiums.

SO WHAT DOES IT MEAN TO DOWNSIZE?

While downsizing may be daunting at first, it offers many financial and emotional benefits in the longer run. People who are taking the proactive approach see and do it out of necessity, choosing to downsize before they get older and it becomes more difficult to do so.

Offers many financial advantages. While your six-bedroom farmhouse with a spacious garden holds so many memories of your children, maintaining it now takes time and has larger costs compared to living in a two-bedroom flat. Downsizing means there are fewer maintenance costs, cheaper utility bills, or even lower taxes and monthly mortgage costs. A smaller house also undoubtedly has fewer rooms to clean. This is a great chance to increase your retirement savings and allocate this fund for other better investment options, or you can even spend more time in travel and vacation.

You can focus more on your lifestyle and well-being. Especially in age-restricted communities and luxury condominiums, the focus is not only on the accessibility of the place to main city places and attractions, but it’s more lifestyle-oriented as well. These communities offer a wide selection of homes and resort-style amenities and better accommodate active retirees, making them ideal retirement destinations. You can focus more on engaging yourself in new activities and hobbies you’d always been dreaming to do.

Best for any of your health concerns. While we always say that we’re “as young as we feel,” we may encounter some health problems as we age. There are many housing options if you want to avoid going up and down the stairs because of arthritis or fear of falling when doing your own cleaning. You could also choose a home that’s near a clinic or hospital if you want a shorter trip to your next medical appointment.

 

Here are some tips to make downsizing “rightsize” and a positive experience:

Seek help from an agent who specializes in senior home purchases. The purchase process itself for this kind of communities is not much different from any home purchase, except that there’s a level of detail in selecting a home that allows you to live exactly as you want. There are real estate professionals who are downsizing specialists and have profound education in senior housing and the moving process for older adults.

Be assured that your housing options are not limited. Whether you’re looking into moving to a smaller home, an age-restricted community, or even into assisted living, remember to choose a home that meets your needs and current lifestyle, where you’ll be more comfortable and happy.

Set a definite but realistic timeline. Unlike when buying your first house, looking for a perfect smaller home or an age-restricted community may take longer than expected. There are websites that specialize in providing active-adult community information to help with your search. Many people are also starting to look for these areas two or three years before making a purchase. Just remember that you are now looking for the perfect location and community that suits your needs.

Minimize your storage by knowing what you’ll own and what you can throw away. Downsizing also means you’ll have lesser storage space, so you’d want to keep only the things you need. You can opt to sell, donate and throw some items you have accumulated over the years, and just keep those that you deem valuable or those things that have increased their value over time. Experts also recommend doing an estate sale once you’ve sorted out your items, so you’ll be able to collect money as well. If you’re having a hard time to let go, just remember that the true memories and experiences you’ve had are indefinitely stored in your mind and heart and not in these physical items.

From Renter To Owner: 8 Important Reminders Before Making The Transition

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If you’re renting now, you most probably dream of having your own house one day. In fact, you’re probably already looking into buying a property to your name right now. So aside from finding that perfect dream home, what else do you have to prepare for in buying your own place of residence? Here are 8 important reminders before making that renter-owner transition:

1. Make a Realistic Renter-to-Owner Timeline

After the tedious task of searching and even after your seller accepts your offer, you may think that the job is done. You’re move-in ready! Not just yet. Be reminded that it may take around 30-50 days to close a home. You have to make sure that you time it right with the end of your lease. You don’t want it to be a renter-homeless-owner story!

2. Know the costs associated with homeownership

Costs, costs, costs! There’s a lot more to pay for upfront than just a security deposit as a renter—from deposits, home loan origination, title insurance, land surveys, home inspection, insurance escrow, appraisal, among others. Then, of course, you have to consider mortgages, home association dues, etc. in the long run.

3. Study Rent-vs. Buy Math

More costs mean more math. This will be more than just rental payment vs. P.I.T.I. A more accurate comparison will also include after-tax-benefit homeownership costs and rent costs.

4. Know Your Tax Benefits

With all these costs, don’t worry, your tax deductions will significantly lower the costs of homeownership. Mortgage interest and property taxes will be deductible in filing annual tax returns, and reduce your taxable income.

5. Start preparing your credit score now

In getting the best mortgages, credit scores are very important. Those who lend want reliable and on-time payers, after all. If you only have one credit card, start getting more now, while you have time to grow your credit score. More credit accounts are seen as better.

6. Research mortgage options

You can’t only shop for the best-fitting home for you, but also the best-fitting lender too. Compare rates of your mortgage based on your loan type, location, purchase price, down payment, and as mentioned earlier, credit history.

7. Prepare for more responsibilities

These include maintenance issues from the roof of your home down to its very foundation. Set up insurance and even an emergency fund for these responsibilities.

8. Think long term

Consider the fixed features of the home such as location, think of the things you may want to alter in the long run, even take note that the neighbors you will have in this new home may be your neighbors for life, and if need be, think about the property’s resale value.

The 5 Biggest Red Flags To Spot When Purchasing A New House

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Whether it’s your first time buying a home or have had experience in purchasing properties, it’s very important to be reminded of what can be a problem after the sale has been made. After all, we want to minimize costs and get the best deals. How can this be done? Home inspections are crucial in the process of house hunting. Sure, the house is charming and homey, but there might be some cracks and rotting that are signs of major damage. Here are five of the biggest red flags to spot:

1. Any Foundation or Structural Issues

Cracking is one of the biggest signs to watch out for in terms of foundation problems. Cement settling, for example, may be indicated by small cracks in the basement. Larger cracks on the other hand, may be a symptom of structural integrity issues of the home. You may also take note of unfit doors. If you have a hard time closing and open doors in the house, this may mean a larger structural issue. Specifically, check if the door fits squarely in its doorframe.

2. Pest/Insect Problems

Aside from sending shivers down your spine, having pests in your home may also mean wood destruction. The most common pests you should look out for are termites, powder post beetles, and carpenter ants which may damage your home.

3. Random Freshly Painted Walls

Freshly painted rooms are normal because this makes the property feel clean and fresh. But if only one wall or area of a room looks freshly painted, this may be a sign of the seller trying to cover up a problem. This is automatically a cause of concern, and you should ask about it right away.

4. Amateur Workmanship or Repairs

The older the home, or the longer a family has stayed in it, the more repair work the previous homeowner or another amateur may have done. You will most commonly see this in areas of plumbing, carpentry, and electrical work. It is best to watch out for leaky faucets, toilets, missing trim work, and other potential do-it-yourself/handyman projects in doing home inspections.

5. Neighborhood

Remember, in purchasing a home, you are not only going to live in the specific lot, you will also be living in the neighborhood. If a house seems perfect, and do not have the above red flags, make sure that it also has a neighborhood with an overall good condition. How do you know this? Take note if there are a lot of vacant lots in the area, and if the other houses are boarded up. If you can, also check the crime rate in that particular area—is it increasing or decreasing? This may not only affect your stay in the home, but also the property’s resale value in the future.

3 Important Questions To Ask Before Choosing A Real Estate Agent

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Hiring an agent is a must if you’re off to sell your property. Of course you want to be represented by someone who’s competitive and is also trustworthy and easy to communicate with, since an agent will have access to information about your finances. You may ask for recommendation from friends and family, or look up online. Once you have a list of names, call them up for an interview. Here’s 3 important questions you should ask:

Experience is the best teacher, especially for this kind of job. An agent that can’t sell will not last long in the field since their earnings are commission-based. It’s ideal to hire someone who has years of experience under his or her belt – they’ve bulked up their contacts, are more prepared to handle situations when faced with conflict, and are better communicators and organizers. Ask for their history of sales over the past 6 months and the areas that they’ve covered. This will help you gauge how competitive they are and how much they know about the market, which are both deciding factors in choosing an agent. Although experienced agents are the better option by default, novices have good things going on for them too. They’re definitely eager and enthusiastic to make that sale. Ask if they’ve been under the wing of a mentor and look up the credentials of that person too. Newer agents will tend to have more time to cater to you since they probably don’t have a string of clients just yet.

This will help you determine if your prospective agent has time for you. If she is working with a dozen other clients, ask her what her strategy is in juggling all of you while still delivering the best possible work. Also ask if she has a team on her side to help her. In line with this, ask for references from past clients. They will of course give you contact to a client with which they had a smoothest transaction with but it’s still best to know firsthand how their experience with the agent went.

This will test if your prospective agent is adamant on selling your property. If she asks for things such as details on the property, what your preferred marketing strategy is, what your timeline is in making the sale, your preferred mode of communication and available hours, it’s an indication that she is making way for a client-centered transaction which works best to your advantage.

The Complete Home Sellers Checklist (Exterior Preparation)

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Before putting your house on the market, make sure that the exterior of your home has the best chance of passing the standards of even the most meticulous visitors.

It may seem like a daunting task, but don’t be overwhelmed. We made this complete checklist to help you get the job done.

3 Important Questions You Must Ask A Listing Agent During An Open House

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Open houses are a good opportunity for you to meet personally with the seller and their listing agent so take advantage of this moment to get the details that will help you decide if you will push through with making an offer or look elsewhere. Here’s 3 questions you definitely need to ask as a prospective buyer:

Buying a house is probably the biggest investment you’ll ever make and it’s best to be critical on where you could possibly put a big amount of your money and time on. Open houses are designed to please your senses – there’s fancy lights, newly-painted walls, fragrant candles, you name it! But there might be issues on areas you can’t spot right on such as issues with the roof (ask what material the roof is made of; tile and slate roofs last 50+ years, while asphalt shingles last 15-20 years), wiring, sewage, drainage, heating and air-conditioning systems etc. You can opt to do the investigation yourself while touring the house, and if you’ve spotted issues that the listing agent did not disclose upon your asking – low water pressure, dripping sinks, subflooring covered by a fancy carpet — that might be a sign to step back. Also ask if the home appliances and systems are covered by a home warranty. Keep in mind that it is required by the law for sellers to disclose to buyers any code violations or structural issues. You can ask for written seller’s disclosure and take photos of problem areas so you could review them when you make your offer.

You can find this information on your own but asking the listing agent can put the information in context. If it’s been on the market for a long time, you could have more bargaining power. But it could be that the sellers had a previous transaction with a buyer whose financing fell through. In the case where the house has been on sale for only a short while, there might be a sling of buyers expressing interest. The information you get will be useful when you make your deal.

It’s good to know information about people you will be surrounded with for a good lot of time in your family’s life. Ask details that correspond to your lifestyle, like if the neighborhood is kid-friendly, or if it’s congenial to retirees. Also ask about nearby schools, hospitals, police and fire stations and make your own research on their credibility and efficiency.