Buying or Selling in Colorado Springs – but not ready to commit?

Are you in the beginning stages of your Home Search or the process of deciding to sell your home? But you’re not ready to take that final step and either talk to a Realtor or register on a Real Estate Site?

 Did you know, that the Pikes Peak Association of Realtors in Colorado Springs lets you search on their site, without having to register? You can search for Homes, get Information on Financing, Foreclosure Prevention and Schools, view Maps, learn about the process of buying and/or selling a home, link to the local Building Department and even be connected with a number of foreign language helpers.

Curious about the process? Check it out.

Will I get my Money back?

TV lineups seem to be fairly bursting with Real Estate Shows, from flipping to restoring, renovating to landscaping, curb appeal to interior design – there is something to be found for anyone. Yet, the same questions still come up - will I see a return on my investment? For many markets, you’ll be best served by using a Realtor – but to just give you some ideas, as to where your Dollar would be most likely to return to you in case of a sale, check out the following link: A big payoff from the tiniest room

Colorado Springs & Foreclosure Help

By now, everyone, or at least most of us, have heard about the housing market. How it’s not doing well, it’s in a crisis, the prices are dropping, homes aren’t selling and in general it’s in a downslide.

If you’re secure in your job and with your payments – you probably have less worries, than someone who might have lost their job or is stuck with an adjusting mortgage rate. If that’s the case – foreclosure might have crossed your mind. But before you stop making payments, check out the following resource link: Pikes Peak Foreclosure Prevention Partnership.

This site is dedicated to help you prevent foreclosure. The biggest issue is waiting too long – and hoping that it’ll work itself out. If you are foreseeing a time, when you are unable to make your house payment, contact the Foreclosure Prevention Hotline and talk to specially trained people. A number of resources are given on the site as well – just keep in mind – not all of them work free of charge.

If it’s not you that needs help – but you know of someone who does – please direct them to the Pikes Peak Foreclosure Prevention Site.

Real Estate – What’s happening?

With all the recent articles about the Market turning down, Sub Prime Mortgages dissapearing, Mortgage Companies closing their doors and a bevy of homes on the market, knowing the facts is more important than ever. Feel free to check out the following links to ‘catch up’ on your Real Estate Reading.

Realty Times

Inman News

CNN Money

Real Estate News

Real Estate Insider on Pricing

You’ve decided to sell with the help of a real estate agent and are ready to “put your home on the market”.  You’ve reviewed the agent’s market analysis and decided on a list price. List Price? Wait a minute – not list price, what you had in mind was the sales price! Well, truth is – list and sales price CAN be the same, but they don’t have to be. The list price is the price, determined by your agent and yourself, at which the property will be offered to the market.

The sales price is the price the market is willing to pay for your property. That can be higher, if it is a very active market, or lower, if it is not.  It is not determined by any other factor – only by the market. It doesn’t matter what your neighbor’s house sold for, what you would like to receive or even what your agent told you – the market (all the potential Buyer’s) will determine the sales price.

It is then up to you to decide if that is a price you can and will sell at, or if it is unacceptable. There might be some negotiating room – however, usually buyers will not pay more for a property than market value. (Keep in mind – it’s not only the Buyer’s who have to “buy” your sales price – it’s also the appraiser who will have to agree on that sales price, in order for the Buyer’s to get the mortgage to purchase the home.)

Does that mean you should offer your home at a higher price and wait for an offer? No! You have to be compatible with similar properties in the area, to have a chance of receiving an offer. If your property is priced too high, you will price yourself right out of the market. For example: If 10 homes are available in your area, and they are all priced around $250,000, with similar square footage and features, yet your home is priced at $280,000, why would a buyer want to pay more? Put yourself into the Buyer’s “shoes”.

The best way of determining pricing is by talking to a professional and maybe touring some of the available homes in your area for comparisons. As always, if you have any questions, feel free to contact me. Thanks.

What do you know about loans?

A big part of Home-ownership is your home loan. If you’re like everyone else – that’s probably NOT your favorite component. However, it’s probably the one element you really need to be knowledgeable about.

 According to a recent article on CNNMoney.com, more than 3 out of 10 Consumers do not know the terms of their home loan. Do you know what type of loan you have? If you’re looking to buy – how familiar are you with the different types of mortgages available to you? Do you have, or are looking for a conventional loan, fixed for 15, 20 or 30 years? Or an adjustable rate loan, where the interest rate is fixed for 2, 3 or 5 years and then adjusts?  A VA loan or FHA loan?   

If you’re thinking about an Adjustable Rate loan, to keep the initial payments lower, consider this: According to a recent survey, 34% of homeowners who currently hold an adjustable rate mortgage do not know how to make the payments, once their loan adjusts to a higher interest rate. If you are unsure about your current or planned home loan, talk to a professional and have them explain your mortgage type to you, to see what your best option might be – to keep your current loan or to refinance, or what to choose when getting ready to purchase. (Be sure to discuss things like: Length of time you expect to live in this home, any expected future pay raises, a monthly payment amount that would be acceptable to you etc. And if you’re choosing an ARM – adjustable rate mortgage – ask for what your worst case scenario/highest payment might be.)

 Regardless of the type of loan you end up choosing – either for a new purchase or to refinance your current home – beware of predatory lending.  What does that mean? There really is no single definition – but more a combination of a variety of factors; a “group” of warning signs. 

Basically, the same thing your parents told you growing up still holds true:   

If it sounds too good to be true, it probably is.

For example: If you have heard from a number of people that the rate is currently at 6%, yet someone offers you a 2.5% rate (*), if several lenders/banks have told you that you have to “clean up” your credit first or pay off a credit card/car/etc, and yet someone tells you it’s no  problem, or if, once you receive a Good Faith Estimate, the closing costs and fees are much higher than on any other Good Faith estimate you received, if hard pre-payment penalties are part of the loan (**) and/or closing gets delayed several times, making the initial low quoted interest rate expire and thereby increase your costs and monthly payments.  All of those could be warning signs of predatory lending.

Your best option is to work with a professional, ask questions, do your research, check out your lender with the Better Business Bureau,  find out how long your lender has been in business and compare a couple of lenders/banks and their loan products.

With all the recent news about problems in the sub-prime lending market and changing interest rates, your best option is to be educated about the possibilities available to you (either to refinance a current property or purchase a new home), BEFORE making a decision.

(*) – If the offered rate is below the current market rate – you might be incurring negative amortization. Meaning: You pay less than the loan is actually costing you, and anything you do not pay in any given month (both principal AND interest) will be added on to the total loan amount, which leaves you owing more at the end of the period than when you started.

(**) – Pre-payment penalties come in two forms: hard and soft pre-payment penalty. A hard pre-payment penalty means that whether you sell your home or refinance your home, you will have to pay the penalty, often a percentage of the interest due for several months. A soft pre-payment penalty usually means that you only incur the penalty if you refinance within a certain period of time, not when you sell your property. It’s important to know which type of penalty, if any, applies to you, to plan accordingly.

Making your Move easier on your Family

People generally have two kinds of needs during a home purchase. First are the transactional needs, such as searching for a home, obtaining financing, negotiating the terms of purchase, completing paperwork and legal documents, and arranging the move.

The second are emotional needs, which can be more stressful than the financial ones. The following are some tips to help ease the stress.

Prepare your children
Although you may have lived in your current home for just a few years, four years is half the lifetime of an eight-year-old. Your home may be the only home your children remember. It’s where they feel safe and it’s probably the center of your son or daughter’s world.

Be sure to announce the move in a completely upbeat way.
You might talk about how beautiful the new neighborhood is and how good the schools are.

Bring your children to the new house, if that’s possible or positively describe it to them.
Find out what your children’s favorite things are in your current home, and then try to re-create them in the new house.

Keep your children actively involved.
For instance, take them shopping for paint, bedspreads, carpets, and other items for their new room.

Your children are bound to have worries during the move.
Help lessen these anxieties by finding ways to make parting pleasant. For example, plan a going-away party or create a photo album with pictures of neighbors, their house and the neighborhood.

Gain knowledge
As you begin the process, you may start to feel out of control, as though other parties to the purchase transaction are running the show. Your mortgage company, the appraiser, the inspector, and the seller all have certain powers to approve or disapprove of your overall plan to purchase this home and move successfully. To alleviate your feelings of helplessness, one of the best things you can do is to understand as much of the purchase process as possible. Work with your real estate agent to prepare yourself for the unknown and tie down loose ends.

Trust the process
here can be so much to do that it’s easy to panic. Buying a home may feel risky, but the truth is it’s an opportunity for you and your family. Even though you can’t predict what will happen every step of the way, your real estate agent helps people buy and sell homes as a profession! Your agent has been there before and understands that this is a major upheaval in your life. Trust that your agent is looking out for you on your way to a successful closing and move.

Be flexible
Although your agent will do everything possible to prepare you for your home purchase, there is no such thing as a perfect world. The property inspection may reveal areas of concern, or closing may be delayed for some reason. Try to take a deep breath and be flexible in your thinking.

Seek entertainment
Whenever you feel things are spinning out of control, find a diversion! Take a walk around your new neighborhood; go out of town or to a movie with your family. Whatever outlet works best for you, this is a good time to engage in it! Remember to take one “move” at a time.

Colorado Springs Real Estate Information brought to you by the Colorado Highlands Group

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Home Buying and Kids

School Districts in Colorado Springs

If you have children and are looking to buy a home, you have a whole new range of Items to take into consideration. In addition to finding the perfect home, getting financing and closing, you’ll most likely consider School Districts as a major part of your decision.Check out the following websites for the different School Districts in Colorado Springs.

One of the biggest Districts, is Home Website for D-11 has links to all schools in the District, Information, Board of Education Information, Delays and Closures and much more.

North of D-11 is D-20.You will find Information about the District, Enrollment Procedures, Boundary and School Information.

The area North of D-20 includes Monument, Palmer Lake, Trilakes, Gleneagle and this area is served by the Lewis Palmer District 38.

On the East Side of Colorado Springs is D-49.Schools, Publications, Departments including contact information, and a variety of Community Information.

The South Side is serviced by D-3 Security Widefield, D-8 Fountain/Ft. Carson, D-14 Manitou Springs and D-12 Cheyenne Mountain.

West of Colorado Springs lies Woodland Park and it’s School District is Re-2.

Consider not only checking out Neighborhoods, but School Districts as well, prior to making your final decision.

Colorado Springs Real Estate Information brought to you by the Colorado Highlands Group

Get your current "house" in order first…

The short version…

You can do much to improve your chances for a smooth home purchase, if you do a couple of things up front.

1. Get a copy of your credit report and verify it.
Are all the items listed your accounts? Credit Bureaus are not infallible, they do make mistakes. If you discovered a mistake, contact them, in writing, to have it corrected. (This does take time!)

2. Don’t make any changes to your “financial picture” – that includes no major purchases that involve your credit (i.e. buying a car), no major changes in jobs etc. Anything can affect your credit rating and make the loan underwriter question your “risk” in regards to loan approval.

Good Luck. If you have questions – ask away. Or email me at Info@ColoradoHighlandsGroup.com , if that’s more to your liking.

Colorado Springs Real Estate Information brought to you by the Colorado Highlands Group