Real Estate Articles

Get Going on Your Energy Conservation Plan

2009-06-30T10:38:00.000-07:00

Before you can possibly start to make informed choices about your home use of energy, you need to give it some thought and start from a solid foundation of applicable knowledge, and then do a few calculations. Being informed on how you use energy in your home will let you make the best choices about replacing your appliances or changing your heating and cooling systems.

To get started, the first step is finding out what your baseload energy consumption is. Your baseload consumption includes those systems and appliances in your home that run the whole year. It includes things like the gas grills, refrigerator, computers, ovens, lights, entertainment centers, and any other regularly used appliances. If your home uses both natural gas and electricity, then you will have to figure your electricity and gas baseloads in separate calculations. It's not too hard.

You will need about a year's worth of electric and gas statements. If you don't have them on hand, contact the company and have them send you the last year's collection of bills. Next, you'll want to take a look at how your energy usage changes during the year. Mark the numbers on a graph. The usage curve will be defined by your climate. If you live in a cold region, your highest expenses will be for heat; conversely in a hot climate your air conditioning costs will be the larger share. Find the lowest energy usage months. These months are the months that consist of mostly your baseload consumption. The idea is to identify the months for which there is little or no seasonal usage. If there happen to be a number of months that fit this pattern, use the average monthly level as your baseload figure. Measure the actual energy usage, not the dollar amount you pay. Energy prices change over time and are subject to long-term and seasonal cycles of world energy commodities like natural gas, coal, and oil. Your electricity is billed in kilowatt hours and gas is measured in therms, which is a unit of heat energy, or less commonly, in hundred cubic feet segments. Record the amount of your usage in the actual units used rather than the dollar amount of the bill so that you will have a good picture of your energy consumption at the commodity level over the years.

Now that you have found what your baseload energy usage is, it is simple to determine what your seasonal demands are. Simply subtract the baseload usage from each month to determine how much of each month's bill is due to heating or cooling usage. Add up the amount for each month and this will give you your annual cooling and heating needs. Multiply the average baseload usage by 12 to get the yearly baseload numbers. As an extra step, to put the figures in context, you can confirm the figures by checking them against the amounts you actually paid, which can be found right on the statements. Then to find the amount of your annual costs, check the bills to see the price you pay for each kWh of electric power and each therm (or whatever metering unit your utility utilizes to bill gas usage) of gas. Multiply the annual usage and the unit price and you can see what your annual cost is. Finally, check your work against the dollar totals, and you will have the amounts exceeding baseload for reference.

So what?

Here's where this all pays off. You can use the information you put together to put your energy efficiency projects in an order of priority. Should you buy a new, more efficient heating unit or replace your inefficient refrigerator? If you know your baseload energy usage in comparison with the seasonal, the decision will be easier to make. You will know which project will be worth investing in.

Content presented by Automated Homefinder, your Colorado Boulder real estate specialists.

Real Estate Finance Terms: What Exactly Does PITI Mean?

2009-04-28T17:05:00.000-07:00

Regardless of whether you are dealing with the purchase or sale of real property, there are many terms that come up. You might say the language of finance and lending is an art in itself. There are hundreds of these special terms and it's not reasonable for a seller or buyer to learn all of them. However, there are some words or abbreviations that it's especially good to become familiar with for your own benefit, and PITI is one. Following is an explanation of the term and of each letter.

Principal
The principal is the actual amount of money that you are borrowing from the lender in order to buy the home. This figure differs all the time at the same home price depending on how large a down payment you make on the home and how much money you actually borrow from the lender. The principal is generally the biggest portion of the PITI equation.

Interest
Whenever you borrow money or pay on credit, you pay interest. This is the amount the lender earns from you as the price of loaning you the money you need, based on the cost of keeping the money from being invested anywhere else. It's calculated in percentages. Depending on the terms you agree on, the interest rate can stay fixed throughout the life of the loan or it can be variable, meaning it is subject to adjustment based on stated rates or factors.

Taxes
Even when buying real estate, you can't avoid paying taxes to Uncle Sam. Taxes on property, though, go to governments at the local level like the city or county to help schools and infrastructure operate. The tax revenues from homeowners help emergency facilities, rec centers, schools and other such facilities serve local residents. The tax assessments are typically added in with your monthly mortgage payment and are prorated each month. The lender pays the tax to the appropriate local government.

Insurance
It would be foolish to have a home without having being insured, and if you buy the home with borrowed money the lender will insist that you are properly insured. A home is your largest investment and a homeowners insurance policy is vital for your family's protection against disaster. There are many kinds of homeowner insurance policies from which you can select, which is more than we can cover in this article. Your insurance options also depend on how much of a down payment you make on the property. If you make a down payment of less than 20% percent, lenders will require you to carry a certain policy that assures they will get their money if you the home is lost to foreclosure. Any required insurance payments are normally rolled into your monthly payment.

When you want to find Boulder homes, try the Colorado real estate experts at Automated Homefinder.

Picture Perfect Showing Condition for the Sale of Your Home: With Children? Yikes!

2009-03-27T12:29:00.000-07:00

"Kids, keep quiet! Kids, put away those clothes! No, go out to the back yard! Somebody's coming. Clean up! No, no! The agent is coming with a buyer." Sounds like a comedy show, or more like a tragedy if the Realtor is coming with someone to inspect the home. When you have children in the home it can be difficult to keep the place in condition. The conventional wisdom is that it has to be perfect. Here are some things to take into consideration, to keep your house in order, so to speak, and still be in a position to show the home like a piece of fine art.

Get The Messy Things Organized
Children of all ages like to collect toys of all kinds. They like variety. As a parent you have probably become accustomed to seeing toys casually left in a cluttered disarray, but a homebuyer will notice it. The very first thing to do to get your home ready to go on the market is to organize your children's belongings so they can easily be put away and mostly out of sight. This may involve things such as toy chests or big storage boxes. Use storage that can be used in the room without being overbearing.

Organizing the outside of your home is what provides the first impression to a buyer. Try finding ways to set up, or store, the children's outdoor playthings and other toys in a neat and tidy way to present the outside of your house as attractively as possible.

Giving Things Up
Of course, the habit of cleaning out possessions that are excess to your needs on a regular basis is just as pertinent to kids' things as it is to all the other old things. This is an invaluable skill to learn whether you are moving or not. Children as well as adults have to make choices. Learning the process of letting things go and moving on is a necessary part of living. This process can be an occasion of learning for children, though it will be important to get their participation and not force their decisions.

Even if you didn't get rid of a thing, though, you're doing quite a lot of good if you start using smart storage and keeping things neat. Besides, keep in mind that anyone looking at a home where a family is raising small children will generally be interested in a family oriented home in the first place. Just showing that the children's rooms can handle all of the children's toys and games can be the perfect demonstration of your home.

Discipline will be necessary to maintain everything in order once you get it all ready. The job of keeping the house well organized once it is all fixed up can be a challenge, but it is not impossible. Once you have your storage set up, keeping ahead of things will be immeasurably easier. Try to limit the number of different things your children are playing with while you are in the process of selling your home. It is a good idea to make the challenge of keeping the house organized a game, or adventure or challenge for your children. They in turn may even remind you to keep other things in the house in order.

You wouldn't want to turn your home into a sterile clean home where it looks like no children would be allowed. Many people buying a family home have children themselves, and are happy to see a house that is comfortable to live in, and some toys being in use gives that feeling. Just be aware that it should be kept a little on the high side of normal.

If your children are an exceptionally hard case you could buy a rug to play on that can be put away when the agent brings clients by. Keeping the finger paints put away and out of sight might be a good plan too, at least until you move into your new home.

Patience and a little attention, coupled with regular attention to clutter, will make the sale of your home with young children in the picture much more achievable.

This content was provided through your Colorado specialists in Boulder real estate, Automated Homefinder.

School District Makes a Big Difference

2009-02-24T10:46:00.000-08:00

It might be understandable for some individuals who are looking for a home not to consider the performance of the school district. This is an important factor to consider when home shopping. Overlooking this factor might be an understandable tendency for a single person not thinking ahead to having children, a young homebuyer, or an older person who does not personally connect with the question of local schools. It might surprise you to know that even in those cases, the quality of the school district deserves serious evaluation as a significant factor to include in your plan.

School Desirability Affects Home Prices
The district where a home is situated is a key driver affecting the prices of homes in certain areas or neighborhoods. With increased sophistication of the vast majority of buyers in recent years, it has become more frequently the case that homes in better school districts sell for significantly higher prices than homes in other districts, even comparing homes that are otherwise nearly identical.

The difference attributable to the performance of the school district is real. Homes that are situated in higher-performing school districts can sell for as much as 30 percent more than comparable homes in other neighborhoods. If you look at an median cost of a residence at approximately between $180,000 and $240,000, the difference is significant.

In a Buyer's Market, Buyers Can Be Picky
In previous years, home buyers were more worried about such things as the home's nearness to shopping centers, downtown businesses, work, and possibly aesthetic attributes such as the appearance of the neighborhood. Now, home buyers are more attuned to negative factors such as being located in school districts that are less desirable. Homes located in these districts can be hard to sell.

Perception Leads to Real Value
In some areas with the best schools, buyers actually bid against each other. This can contribute to inflated real estate prices; or, in a slow market can cause homes to hold value against a prevailing decline. This affects the listed price of all other homes in the area available for sale after the transaction has closed. Savvy buyers get school performance reports early in the search for a home. They know that this is a big factor in the value of the home and an factor in what the home may go for in the future.

School District Uncertainty
No matter the state of the market, any reason that could compel an individual to buy a home in a particular area adds to the value of the homes there. Investors and homebuyers alike must remember that the boundaries of school districts can be changed, which can increase or decrease the value of the property significantly. In an established district that is near a new subdivision, for example, things could shift seemingly on a whim. In the real estate market not much is guaranteed.

This article was provided by Automated Homefinder, your Boulder home specialists in Colorado.

Real Estate Purchase Contracts: Moving in After Closing

2009-01-26T20:18:00.000-08:00

Finished at last! The paperwork has all been completed, and you're anxious to move in. It seems like it has taken forever, and finally here you are. But wait. What's that? A delay? Just a little one, what harm can it do?

Sometimes the seller will ask to stay in the property for a time after the closing. As the buyer, you can approve or disapprove the seller's request, but before you make that decision, here are some things to consider.

It can happen, in the last days of frantic activity just before closing, that the seller asks for more time. It could seem reasonable, that they want to clean out the home a little better, or clean up other loose ends related to their own move or the transfer of the property in a clean condition. While the request may seem to be perfectly in order, you must consider it with caution. If you choose to allow the seller to stay in the house after closing, the seller must, at the very least, be required to pay a fee for the additional days, and that part of the contract must be documented.

There must be a definite limit on the time the seller can stay in the property after the signing of the contract, and it must be in written form. A clear agreement or contract addendum containing the details of the post-closing possession for benefit of the seller can be provided by the real estate attorney or, in jurisdictions where attorneys are not necessarily part of real estate contracts, by the escrow officer.

If the seller announces at the time of closing that he or she has to stay in the property longer, it is normally a good idea to delay closing on the home until such time as the seller can clear out or acceptable paperwork has been drafted and signed.

As a buyer, once you complete the purchase of a property, that property belongs to you and is your responsibility. This is true even if it is occupied by another party. If the seller causes a fire on the property, it is your loss. The seller will not have to pay for the loss unless it is included in the post-closing possession agreement, and even then the seller's liability as a renter may be restricted under law.

Additionally, sellers who retain possession of the real estate after closing have less motivation to take care of the property and make needed repairs. When closing on any property, you are accepting the property in the condition in which it stands at the time of closing.

Liability Issues
Whatever occurs to the property after closing is the responsibility of the buyer, regardless of who is actually occupying the property. If a furniture mover scars a wall or the kitchen tile or a window pane gets knocked out, you will have to pay for the repair.

A common problem with letting the seller keep possession of the home beyond the closing date is that items that should remain with the home can vanish between the closing and the time the buyer eventually takes possession of the property. Even when such a thing as this happens, the buyer is responsible for the missing items because they own the property.

As a buyer, you have a responsibility commensurate with your investment in the home. It is in your best interest to insist on possession at the time of closing, or to reschedule the closing until the previous owner has gotten out from the property and can turn over the keys.

Content furnished by your Highlands Ranch real estate experts in Colorado, Automated Homefinder.

Finished vs. Unfinished Basements: Let Someone Else Do All the Work

2008-12-27T09:22:00.000-08:00

If you are looking for a home, you might look at quite a few before giving a thought to the basement or the condition it's in. You have so many things to consider, and the kind of basement you want is probably not at the top of your list. Considering that question, though, could be more involved than you had thought. Do you want to buy a home with a finished basement, or would it be advantageous to get a home with the basement in an unfinished state and finish it yourself?

One thing to consider is that finishing a basement can be surprisingly expensive, and you're not likely to get back your investment when you sell your house. In fact, the cost of remodeling a basement will only get you about 75% return when the home is sold. The bottom line is that it is an unsound plan to look for a home with an unfinished basement and then plan to do the work on your own.

The way it turns out, then, is that when you are looking for, it's advantageous to find a home that has a finished basement. It's the other side of the analysis that says it doesn't pay for the seller to spend make the investment on the job. With the advantage of being the buyer, you get the bargain end of that deal because being on your side of the equation.

In addition to the likelihood of saving cost and time, there are other reasons for choosing a home with the basement finishing completed. Basements that aren't in use can get damp and can begin to accumulate mold and mildew. They tend to turn into very unpleasant places, and can even become hazardous. If, on the other hand, the space is in use you can take advantage of the fact that basements tend to be naturally temperature controlled. They keep relatively warm in the winter and cool in the summer. This means that you can arrange your activities so that you spend less on heating and air conditioning.

A usable, functional basement provides living space to your house. Basements are no longer just used for storage of unused items. A finished basement can be turned into additional bedrooms, game rooms, a hobby room, a large living room, or just about anything.

If you live in a tornado-prone area, a basement can be a good place to take shelter from the threat of a storm. The need to go into a shelter during a storm can be frightening for a child. A comfortable and accommodating atmosphere can help ease anxieties and make the experience more palatable for the family.

So when you buy your next piece of real estate, do yourself a favor and look for a home with a finished basement. Let someone else do all the work and you will be ahead on the deal.

Article provided through Automated Homefinder, your Colorado Castle Rock real estate specialists.

The Dangerous Side of Living in Quaint Homes: Old Lead Paint

2008-11-28T19:17:00.000-08:00

Even though paint formulated with lead in it has been against the law for a long time, it remains a real issue for sellers and real estate professionals. In 1992, a law referred to as the Housing and Community Development Act established a requirement that the seller was required to make a signed disclosure of known lead-based paint to the buyer of a home in order to complete the sale. Lead had been used as a paint additive for well over a century before it was definitively linked to health problems in approximately 1978. That year, it was determined that lead was prohibited from being put in paint as an additive.

Lead-based paint in the home can expose the family to lead poisoning. Young children under six years old are at the highest risk of developing lead poisoning from lead-based paint because young, actively growing bodies take in many of the mineral substances they touch, regardless of whether it is much needed calcium or a deadly substance such as lead. Continuously high levels of lead can lead to brain and organ damage, behavior problems, hearing difficulties, and can seriously damage the nervous system. These problems can occur in adults and children, and additionally in the case of children, it can cause impairment of normal growth.

Any home that was built earlier than 1978 that has cracked, peeling, or chipped paint should be considered a potential hazard. The paint should be repaired as a high priority. If paint containing lead was used around the door or window frames in the home, normal usage of these things in the home may be creating a surprisingly large amount of dust containing lead. Lead dust is hazardous and can be almost impossible to dispose of. Sweeping, vacuuming, and dusting can cause it to reenter the air and dust will be kicked up every time you move around. The dust can also be tracked out into the yard where it will contaminate the soil around the home. This could pose a further risk for young children, as well as pets and growing plants.

Are You at Risk?

In order to find out whether or not your home has a lead-based paint problem, if you live in a home built prior to 1978, the most conservative thing to do is to get a paint inspection done by a professional. That will let you determine lead additive in every painted surface in the home and will uncover any areas of serious lead danger.

Even though there are kits that individuals can buy to run the testing themselves, an inspection by a licensed professional is highly recommended to uncover problem areas that may be missed by a nonprofessional.

Content provided by the Colorado home experts, Automated Homefinder.

Use a Home Warranty to Help Your Home Sell Faster

2008-10-30T09:31:00.000-07:00

If you are thinking of selling your home, you will be given the choice of buying a homeowner's warranty. What, after all, is a home warranty? And how does it improve the chances of getting a better deal when you sell?

OK, So What Is It Anyway?
A home warranty is a policy that provides coverage for all the repairs or replacements of any appliances or major systems in the home. This typically includes such things as electrical, waste disposal, heater, built-in microwave, dishwashing unit, cooktop, range, and similar items. Coverage may also include other items such as the Jacuzzi and hot tub. This is comparable to the homeowner insurance but while homeowner policies provide protection against risk of damage to the house and the personal belongings within that are caused by factors or occurrences such as losing valuables, the home warranty provides coverage on failure of systems and appliances in the home.

Those who have a home warranty are covered against having to pay the major costs that would be incurred if any of the systems or items in the home break down. There is normally only a small fee involved for a house call for repairs. These charges are usually negligible if you compare them with the expenses one would face if the system or appliance would have to be replaced. The price of a home warranty policy is less than a homeowner policy, which is due to the narrower range of hazards covered and the generally lower cost of what is covered. For example, a homeowner policy will have to cover the structural damage if a tree falls on your house; comparatively speaking, your trash compactor or dishwasher is easy.

One good thing about getting a home warranty is that it can be obtained by anybody, without regard to the type of house. A home inspection might even be waived as not necessary to get a policy. The contract will state clearly what is covered and what is not.

Depending on how much you are willing to pay, you would need to decide on a policy length. You can have a policy for as short as a year and there are longer contracts up to lifetime. In general, a longer contract period will have a lower cost per year. If you are selling, though, offering to buy a contract for a year's period is typical, to provide a break-in period. The new homeowner can then decide about the renewal.

As with any services, the home warranty comes in various "flavors" and you will find a variety of quotes from providers, each touting different combinations of features. In order to get a good deal, you should look into a few sources. Using the Internet makes it easy to become informed and make a good selection.

Having a home warranty can be an attractive advantage for a buyer. If you are the seller, providing one gives that advantage to you.

This content was provided through Automated Homefinder, the Denver real estate specialists of Colorado.

How to Do an Effective Remodeling Project

2008-09-29T10:10:00.000-07:00

Do you own a home? If you do, and if you are anything like the vast majority of homeowners, you have probably considered doing some remodeling, "someday." Many people get in the remodeling mode with the thought of selling, with an eye toward increasing the value of the property or correcting faults that might detract from the saleability of the home. Home improvements can be expensive, so, of course, you will want to get the most beneficial upgrades done with minimal amount of expenditure. Not spending too much is important to most people, but that does not mean you want a cheap looking job.

Home ownership is a business with high stakes, and if you are not careful you could spend too much, even for what should be a small job. Hiring a legitimate professional is the key to getting a quality job accomplished at an affordable price. The importance of choosing the right contractor deserves your full attention.

The Federal Trade Commission recommends that homeowners should be aware of the tricks of dishonest contractors. Here are some signals that your hired help might be dishonest:

Those are some of the warnings that you should run and find a different contractor. Sometimes these con artists will try to get you to borrow the money for the job through a lender that they just happen to know. The worst case of a loan scam could literally leave you without a home at all.

Precautions
There are a few key things you can do to avoid being taken advantage of. Interview your potential contractors thoroughly. Ask about the length of time they have been in business, license details, and insurance coverage. Check with the local city or county building permit office to find out what you need to know about applicable permit laws.

Another important thing to be sure to do is asking for references. Not only should you get a list of former clients, but you should check those references. Ask them about the quality of the work. Question them about whether there were last-minute costs, and other problems.

Make sure that the payment terms are clear before the job is started. Some local laws set limits on how much higher the final cost can be above the contract estimate. Find out the laws where your work will be done.

This information was provided by Automated Homefinder, the ultimate Colorado home experts.

First Things First When it Comes to Choosing a Home

2008-08-26T16:07:00.000-07:00

So, you're ready to buy a home. If you're ready to do that, you must be ready to see into the future. You have to perceive what the future will bring. In this case, the future is yours to determine.

If you are in the position of being able to afford anything you want, you are in a good position here. If this is the case you are able to satisfy your wants, the little luxuries that make your lifestyle a little nicer. Your needs will be below that level and you will be able to say, "No problem." If you are under a tight budget, you will need to prioritize and it is your needs -- the things to maintain life and health -- that will need to be the focus of your attention.

When sellers are finding it hard to get buyers, prices may be depressed and some buyers will get greedy. This may lead to trouble for buyers as time goes by, if it leads to buying more house than they are able to handle.

Consider some essential things that be classified as needs. If you are young and just starting out, sit down with your spouse and discuss how many children you would like to have. A family needs a good secure home. You don't want to have to move every few years to accommodate another child when the family grows. Do you run a business out of the home? Then you will need a home that will accommodate your office and storage areas.

Next let's take a moment to look at the items in the "wants" camp. First, take a look at your lifestyle. If you entertain on a frequent basis then you might need to focus on a house with a formal dining room and kitchen, or maybe a backyard patio and pool. If you don't envision this playing a major role in your regular activities, then focus on other pursuits. A game room, or an area for doing work on cars? Amenities that cater to a hobby or interest are a luxury, and should be handled accordingly for appropriate evaluation in terms of finding the right place in line.

The line separating wants and needs may vary widely between different individuals based on income, expectations of the future, and how much maintenance they are willing to do, just to name a few aspects. This is a good time to sit down with pencil and paper and discuss with your spouse just are just "wants" as opposed to what you actually need in order to have a safe and fulfilling life. Once you get the list firmly set, it's time to go!

Article furnished by the leading Longmont real estate professionals of Colorado, Automated Homefinder.

Get the Perfect Real Estate Agent

2008-07-26T14:21:00.000-07:00

In anything you do, having helpful and reliable assistance can make the defining difference between success and failure. In real estate, as a case in point, having the right person as your representative is a substantial advantage. It makes it easier for you to find the right new place to live, or if you are on the selling end, to bring buyers to the table. In either case it is that acquisition and selection process that facilitates completion. Some people may feel a little lost when it comes to finding the right Realtor to help with their purchase or sale needs. Here are five pitfalls to watch out for when shopping for a Realtor.

Not Asking About the Fee

Prior to deciding on a Realtor, it is important to find out about what they will receive for the work. A seller's agent will charge a percentage of the final sale price as the fee for their effort. It is in your best interest as a seller to make sure the percentage is favorable, and the time to address this is early on. A percentage that is well below what other in the area are getting can be a warning sign as well; since it's often the case that you get what you pay for, a low fee offer will likely shortchange you on the services it takes to get the deal done. The buyer's representative, incidentally, is paid from the proceeds of the sale, out of the overall commission amount set by the seller. For this reason, if you are a buyer, there is no extra cost for your representation in the deal.

Thinking That Only Big Real Estate Chains Have the Best Agents

Some who are shopping for an agent may think that only the biggest real estate companies will have all of the experienced people. Though they may have excellent people in the office, it is advisable to consider small companies as well as larger ones in your search.

Not Inquiring About The Agent's Qualifications and Experience

It is definitely beneficial to ask the Realtor questions concerning their expertise in the business. Questions pertaining to length of time working as a real estate agent, length of time with the particular firm and any type of business specialties they may have worked in are all important. Experienced Realtors will not hesitate to tell you about any awards they have won or honors they have achieved. High rankings within a geographical area such as national ranking, at the state or city, or even the local office level, tell a worthwhile story. Professional recognition by one's peer group usually has a good reason behind it.

Picking Too Quickly

Don't just choose the first person you find. Jumping in with your first reaction may be a good approach for a school quiz, but without some honest effort that favorable first impression can fade away quickly. People can be so anxious to buy or sell a home that they hear the name of somebody and go with that individual without looking into options. This is a big mistake which all who are looking for a Realtor should avoid.

Being Reluctant to Ask Enough Questions

The final mistake anyone shopping for a Realtor should steer clear of is being hesitant to ask candidates enough questions. Some people think that they are being too much trouble and do not want to bombard the Realtor candidates with a lot of questions regarding fees, procedures, etc. Asking questions is the only way to be sure that you've selected the one who will be best for you.

This content was made available by your Colorado Boulder real estate specialists at Automated Homefinder.

Set the Right Target Price and Sell It on Your Terms

2008-06-23T09:38:00.000-07:00

When you're getting ready to put your home on the market, if you want a quick sale you have to list it at the right price point. The higher your price, the longer it will take you to sell it. Rather than starting out too ambitiously and having to concede later, it may be advisable to start a little lower than your brother-in-law said, in order to make the deal go through without delay. If you have already started looking for another house you would increasingly feel the pressure to sell, and sitting on the market with too high a price is a real morale killer.

Use Available Resources to Be Competitive
If you want to have a successful sale the thing to keep in mind as a starting point is to be the best deal in the area. Market analysis, which involves more than just seeing what else is for sale in the area, is something best accomplished by your Realtor. Setting a workable price point is definitely something a Realtor can bring to the process to get headed toward a successful conclusion.

Speed of Transaction Versus Higher Price
Consider the process of buying a consumer item for your home. You would probably not spend too much time deciding between an item you could buy in your neighborhood and one that might cost less but you needed to spend a lot of time and energy researching, finding and hauling and making complicated arrangements to obtain. There is a value on your time, and that is true as well for the time needed to find the right buyer, or rather having that buyer get around to finding your gem of a home. If you look at it with this in mind, you can start to see the problem from a different perspective. If you are listing your home in a depressed market, you may end up having to not only drop your price after it goes on the market, but also offer other extras such as cosmetic repairs or improvements to get a sale at all.

The Art of Compromise
Market conditions may dictate not only the price you can get for your home as mentioned above, but also the timing of your sale. It might not be the time for you to sell for your desired top price, but when the situation changes you may have to go quickly. You may have to wait, or go in on a shift in conditions and sell quickly, depending on the market environment and momentum. This can mean selling your home before you decide on another one, and unless you have relatives or very special friends with whom you can stay awhile, you may defeat your purpose in gaining extra profit from the sale by having to move into temporary rental housing until you find another home. Sometimes the buyer might be agreeable to wait for you, especially if they can stay in their current home a little longer. More often, though, it works out that the buyers are anxious to move into their new place as soon as their loan is approved so you might not have the luxury of staying -- that big train of events is hard to stop once it gets moving.

About That Repair Work...
It is too easy to not think about actual differences when you are setting the price on your home and you see other homes going for what seems to be attractively high prices. It's easy to see a home sell for an attractive price on their block and conclude that yours should be sold for the same, turning a blind eye to features or repairs that would make all the difference. You can, however, price it to move pretty quickly by lowering your price to offset the work the new owner will have to do. You must realize, though, that this option is only pertinent jobs of a cosmetic nature -- normally things such as structural problems and air conditioning units must be repaired before closing. Things like painting, replacing tired landscaping, refinishing wood floors and similar projects can be put off by lowering your price for the home. The main point to remember is that if you take both the value of your valuable time and effort, and having the house sit losing luster too long with the for sale sign up, the smartest approach is truly to do the strategic thing by pricing right from day one. Price it right if you want to sell it quickly.

You must be especially sensitive to this rule if your home is not clearly the best one around. There are people who like to buy a home that needs some repair work so they can make it their own, and if your home is in need of work then being too high-priced will leave you in a bad position. Even if yours is the best one around, though, unrealistic asking prices have a way of hurting in the end. From the outset, your best bet is to price it right.

This content was provided by Automated Homefinder, Colorado's Denver real estate experts.

Living in a Bigger Home

2008-05-27T11:14:00.000-07:00

Is your home getting too small? Here are some things you can do to make your home seem larger. This can be a definite advantage when you are selling a small house. You could even like the results enough to take the edge off the urge to move!

1. Wall Color -- Use light shades of colors that have a warm feeling such as red, yellow, brown and orange. These colors can make a room seem bigger and more welcoming. To give a particular room the sense of added depth, you might want to try the approach of using light colors on three walls and a coordinated darker tone on the remaining wall to make it look like there is more depth in that direction.

2. Using Light -- Sufficient lighting makes any space seem larger. The impression of openness is assisted by bright lighting, since we associate brightly lighted places with open spaces. Focus the lighting on the walls so they will be brighter. You might want to have lighting controls that will allow you to dim or increase the intensity of the lights in each room to meet your mood.

3. Minimum Furniture -- Rooms that have too much furniture tend to look smaller than they really are. The more crowded a space is, the smaller it will appear. Be sure not to crowd your furniture together when you want to make the room look larger than it really is. Avoid putting overbearing armchairs and overstuffed sofas in cramped spaces. To maximize space, use dual purpose furniture. An example would be a footstool or seat that opens up for magazine or pillow storage. This would save the space otherwise needed for a second dedicated piece.

4. Reduce Unattractive Clutter -- Having efficient storage is important in small spaces. The more unneeded clutter you have in your home, the smaller it will seem. This is not just a matter of making your home nicer for prospective buyers, but a good thing to keep in mind in having a healthy outlook for yourself too. Come up with storage systems and solutions that fit your family's needs and lifestyle. By reducing clutter, your house will seem more appealing to guests and homebuyers.

5. Be Mindful of Your Choices in Decorator Items As Well -- The accessories you choose can have an impact on the appearance of size. Use light colored curtains to allow plenty of light during the day. Choose light colored furniture, or as a minimum use light colored covers for the furniture, because choosing light colors will give a more open appearance to the space.

6. Mirrors -- Use wall and door mirrors to give depth to a room. This is one of the most direct and effective home tips ever. Mirrors can be beautiful decorative pieces in themselves, and they serve the additional purpose of adding visual depth.

These six techniques can save you money and effort in the necessary task of making your home more attractive and marketable. When it comes right down to it, these suggestions are among the most efficient methods to improve the value of your home as well as simply making it look great.

Article furnished by Colorado's Louisville real estate specialists of Automated Homefinder.

4 Serious Secrets for Buying Real Estate

2008-04-30T21:54:00.000-07:00

One of the best methods of making a profit, as long as anyone can remember, has been by investing in real estate. One of the key features that distinguish real estate from other forms of investment is the very obvious fact that you can live in it. The next layer of complexity in the investment scenario is the phenomenon of "flipping," which is buying a house to remodel and sell for a profit. Whether you plan to invest in a home for your own use or buy a property to fix and resell, approaching it as an investor is something that can benefit you in either case. No matter what type of investment is being considered, having a plan is essential. In the case of real estate, particularly when you need a place to live, this may be the most important element of the whole process. The planning must be completed before even getting started on choosing a property as the target for your investment.

1. Allow Plenty of Time
It is a good idea to begin your search well in advance of needing to make your move. Begin looking and learning with plenty of time before you might feel any pressure to get something settled. Sign up with a number of home-search sites. Check out different firms to find out what their listings are and what is on the market. Sticking with just one could limit your options, and checking out all the available resources so you don't get stuck in what can be seen through one agent's or company's (possibly) narrow field of view takes time. A home purchase involves significant time, money and commitment regardless of whether you plan to use it as an investment Doing it in a hurry could hurt you in a big way.

2. Getting Prequalification Is Important
Another step before buying real estate is getting qualified in advance for a loan. The lender should be located in the community and should have a good reputation. This will help you in setting a maximum price for the transaction. A lender should be able to assist you in determining a reasonable amount to spend, taking into account your household income and other existing debts. Just knowing that you have a lender who is prepared to give you that predetermined amount can boost your confidence. Having that information at the ready as you shop is a significant factor in your favor.

3. Ascertain What You Are Going After
You have to be clear on what it is that you are looking for. You have to really think about it until the details are crystal clear. Set your standards as high as you logically can. If you shoot high, you can always adjust as necessary. You shouldn't have a minimum mentality in the serious matter of buying your home. Target your aspirations for the best, taking your budget into account of course. There is no great loss in bringing it down a tad in case things change, or to be more realistic. Sometimes, some features just aren't available where you are looking.

4. Work with an Expert to Represent You
Locate Realtors who are buyer agents. Don't just rely on whoever is selling the home because that agent has an obligation to look out for the seller. Choosing someone you can work with is something you have to do with careful attention. You must do this with care. It may or may not be advisable to go to a friend in the business, unless you are certain that friend has a good professional standing independent of the relationship.

That's not so bad, is it? Take enough time, find out the level of your buying power, determine your standards, and get yourself a good agent. Using these few steps will help you find the right home for you.

This content was provided by Automated Homefinder, your Colorado home experts.

Seller tip: Hire your own appraiser

2008-04-30T21:29:00.000-07:00

Whenever you sell your home, whether it's a villa on the Mediterranean coast, a mud hut in the jungle or your old suburban hideaway, the same principle applies: Buyers are going to have doubts about the asking price. Whether you like it or not, that's just the way it is. They're about to make the biggest investment of their lives.

Buyers can't get much better assurance than an uninterested third party validating the value of your home.

Since real estate dealings involve such a large financial commitment, sellers can boost their home's likelihood of selling by getting a certified opinion from a real estate appraiser. Real estate appraisers have only one job to do. That job is to estimate the worth of a home and they don't have a vested interest in the transaction. Their job is to document an unbiased estimate of the value of the home. An advance appraisal can help you get the most money possible because of the feeling of security the appraisal offers to the prospective buyer.

During the inspection of the home, the real estate appraiser determines the quality of construction, the condition of the total property, and how dated (or outdated) the home may be. They compile data on the property as a whole by making notes and searching public records for the details of other property assessments, past sales and leases, and any other transactions.

Negotiate ahead of time for the appraiser to transfer the appraisal to the buyer.

The home appraisal is a valuable asset that is part of the home, but it loses its value to the seller as soon as the home is sold. Why not offer that appraisal to the buyer? The borrower would save $250 to $500 (or even more), which, in turn, can help you get more money during negotiations. In addition to helping reassure the buyer of your home's worth, you can, for all practical purposes, get all or most of the appraisal cost reimbursed by simply transferring it to the buyer. In addition to saving the buyer money, you also guarantee that the loan won't fall through because of a different (lower) appraisal, because if the borrower hires their own appraiser, it's possible that that appraiser will think the home isn't worth what they're paying.

For a very small charge, usually $25 to $50, you can have the appraiser re-write the appraisal to the new owner. In this real estate market, buyers can walk away from a contract for any reason; sellers need to do what they can to close the deal fairly. Getting an appraisal in advance is a good, inexpensive bone you can toss into the deal to show your good faith and cooperative spirit as a seller. Not only does it increase the buyer's confidence in you, but in most cases it will increase your bottom line as a seller.

Visit AutomatedHomefinder.com for all of your Colorado real estate needs.

What's With The "We Buy Ugly Houses" Signs All Over The Place?

2008-04-29T18:54:00.000-07:00

In recent years, the number of signs proudly proclaiming "We Buy Ugly Houses" has started to appear everywhere. This unique advertising campaign was developed in the early 1990's by a man named Ken D'Angelo. His vision was to focus on recycling and reselling single family homes. Starting in Dallas, Texas, he eventually expanded throughout the United States.

For individuals who wanted to sell their homes quickly and didn't mind selling them at a discounted price, this program was a dream come true. D'Angelo's company was willing to purchase the home, even if it was badly in need of expensive repairs that the homeowner could not afford to make.

Franchise OpportunitiesSome of the properties were resold to other real estate investors and some were repaired and sold to new homeowners. This process improved the quality of the neighborhoods in which the company operated and generated so much positive publicity that many more homeowners began to choose this route to get rid of substandard properties.

Because of the number of individuals interested in the program, D'Angelo decided to turn his vision into a franchise operation, teaching other real estate investors how to follow his formula to extract a profit from substandard homes while improving neighborhoods and providing a much needed service to the communities in which they operated.

HomeVestorsD'Angelo's company was named HomeVestors of America. It provides training and support to real estate investors specializing in properties that are in need of repair. Today, the company has more than 260 franchise locations across the United States and is constantly adding new locations as homeowners with limited choices for their properties choose to use the services provided by the company. Unfortunately, D'Angelo did not live to see his vision become a nationwide reality. He was diagnosed with a deadly cancer in September of 2004 and passed away soon after.

HomeVestors of America was the first franchise operation of its kind, but in recent years many more individuals have entered the market to rehab and resell distressed homes. Many real estate investors choose the "We Buy Ugly Houses" system, because it allows them to find homes to purchase using a proven system with a minimum of hassle. Homeowners generally come to them due to the creative and aggressive marketing campaign created by the HomeVestors marketing team.

This creates a continuous flow of business for the individuals that purchase a franchise. HomeVestors also allows franchisees to borrow funds to purchase and repair their initial properties. Because of the system created by HomeVestors, many real estate investors are able to create a thriving business by purchasing and reselling distressed properties. Many homeowners can sell properties that they would not be able to get rid of any other way, and many neighborhoods are enhanced by the repaired properties and new homeowners that begin to appear.

This information was provided by the Denver real estate specialist, Automated Homefinder specialist, Automated Homefinder.

Buying a Home With a Cat: How a Black Light Can Be Your Best Friend

2008-04-29T18:52:00.000-07:00

When a home is for sale, homeowners tend to go out of their way to make sure that it is in the best possible condition at all times, especially when a prospective buyer is expected to visit. Therefore, when you are shopping for a home, it is really important to remember that you aren't really getting the full effect of how the home usually looks or smells.

When you are looking at homes, you need to be on the lookout for things that might have been disguised so that the house will show well that could potentially become problems down the road. Animal odors, for example, can be masked effectively in many cases. However, masked odors don't always stay hidden, and can become a real problem if they surface after you have already purchased a home.

What's That Smell?
Have you ever walked into a home and been instantly hit by an overwhelming smell that lets you know that cats have been marking their territory inside the home? If you tour a home that has cat odor problems on a warm day, you are very likely to notice this smell if it is present right away. However, on a cold day, the smell might not be so easy to detect.

You certainly don't want to be surprised by the smell of cat urine emanating from your carpet as winter turns into spring in your new home. As a homebuyer, there are steps that you can take to protect yourself from such a problem. You can actually buy a tool at your local pet store or department store that will allow you to detect if there is a problem with cat urine in the home.

Black Light to the Rescue
When you are looking at a house that is currently (or was previously) occupied by cats, you should purchase a black light urine detection tool. Most people don't realize that urine glows when it is under a black light. This simple inexpensive piece of equipment will allow you to see if there is a problem with cat urine in the house, and just how extensive the problem might be.

You are certainly better off finding out about this type of problem before you purchase your home rather than after you have moved in. If you know that there is a cat urine problem in the home, but you still love it, you can always use the knowledge you gained from using your black light to try to negotiate new flooring as part of the purchase agreement.

When it comes to dealing with problems related to cat urine and other pet odors in a home, an ounce of prevention really is worth a pound of cure. When you are making an investment as significant as the purchase of a new home, you need to do everything that you can to learn as much as you possibly can about the home's condition. A simple black light can save you a lot of trouble and expense when it is used to help you flush out hidden animal odor problems.

Contributing author: Highlands Ranch real estate experts, Automated Homefinder of Colorado.

Home Remodeling Tips - Where to Get the Most Bang for Your Buck

2008-04-29T18:49:00.000-07:00

Are you a homeowner? If you are, and you have been for a while, you are probably considering remodeling. If you are looking to sell, it might be a good idea to remodel the home, and raise the value. Money doesn't grow on trees, so, of course, the average homeowner is going to try to get the nicest changes done with minimal cost. Saving money is important to a majority of people, but that doesn't mean you don't want to get a cheap remodeling job done.

Real estate is a big business, and if you don't do things right, you could over-invest. Remodeling could be for one room, just the outside, or the entire property. Hiring a quality professional is one way that you can get a good job done at an affordable price.

According to the Federal Trade Commission (FTC), homeowners should be aware of the scams of so-called contractors, architects, and designers. The FTC warns about these red flags that your hired help may be running a scam:

Offers you a discount for finding other customers

Just happens to have materials left over from a previous job

Pressures you for an immediate decision

Only accepts cash payments

Asks for all the money up front

Asks you to get the required building permits

Those are some of the signs that you should walk away from the deal. Sometimes these con-artists will also try to get you to borrow money from a lender that they suggest. The worst case scenario of a home improvement load scam could rob you out of house and home.

Precautions to Take
There are several precautions that you can take to avoid being taken advantage of. Interview your prospective contractors carefully. The FTC suggests that you ask about the length of time they have been in business, license details, permit laws, and insurance offerings.

One other, very important suggestion is to ask for references. You should not only collect a list, but you should check those references. Ask these references about the quality of the job and service. Question them as to whether or not there were surprise expenses, and other problems.
Make sure that your payment terms are clear and agreed upon before they start. Some local laws do set limits on how much higher the actual cost of a project can be from the estimate. Find out the laws in your area, and make sure they are followed. Don't pay in full until you are satisfied with the remodeling work.

Article contributed by Colorado's Fort Collins real estate service, Automated Homefinder.

3 Quick Landscaping Tips to Make Your Home Shine

2008-04-29T18:46:00.000-07:00

Selling a home would always be easier if the home looks as attractive as it is well constructed. The esthetics is always very important when it comes to the real estate. You could compare this with the packaging of an expensive gift - it if often that the cover is an important as the gift itself. This is why most real estate agents typically advise the owners before selling a home to pay sufficient attention to the overall packaging of the house - both inside and outside.

The outside is vital because that is what the buyer sees first, and they say "you never get a second chance to make a first impression". This would determine whether or not they would still want to pursue the matter with your house. Hence, some quick landscaping would be great before selling a home, as this would not only attract buyers, but also give the home a good "curb appeal".

3 Top Landscaping TipsThere is a lot you could do on the landscaping aspect. However, this time you would need something that is not very expensive, yet it is quick and impressive at the same time.

Here are some great suggestions:

Spruce up the gardenYou could just run the lawnmower over the lawn, and then create a edge with the flowering plants of the season enclosing the lawn into a bright rectangle of flowers. Flowers always create an welcome impact on the eye. In case it is too much trouble to make a bed of flowers, you could just add potted plants around it in a similar manner. You could then take the pots with you after the same of the house.

Fencing You would be surprised how much fencing would improve the looks of the outside of a home. You could use synthetic fencing materials which are less expensive but no less impressive looking to highlight the front yard. You would need to judge at what height the fencing you look most attractive. Alternatively, you could build fencing with hedge plants which would look as impressive, if not more.

Clean upIf you could nothing else for whatever reason, you could simply clean up everything both in the front and back yards. You would need to pay special attention to the driveway asphalt, gutters, and downspouts. Cleanliness by itself has a great impact on the value of real estate.

Besides the above, you could also clean the facade of the home, the garage, paint the windows, polish the door and window knobs or completely replace them, among other things. It is important before selling a home that you ensure everything looks new and inviting. This would not only increase the real estate value of your property, but also have it sold fast.

Contributing author -- Cherry Hills Cherry Hills real estate company - Automated Homefinder.

Buying Real Estate & Getting a Home Loan: What are Discount Points?

2008-04-29T18:45:00.000-07:00

Are you buying a home and need a good home loan? Before you go for shopping for the best mortgage you would need to understand what these offer and how you could get the best possible offer. For example did you know that you could lower your interest with discount points?

What Are Discount PointsDiscount points are basically prepaid interest. Normally these points represent one percent of the loan and the maximum point you could avail of would be four. The points are usually exchanged for lower interest for the mortgage home loan, though some use it for negotiating other terms as well. The means you could bargain for better terms if you could pay an amount of extra (up to) four percent of the total home loan.

The discount point negotiations usually are applicable for those who have less than perfect credit history. This is a way of making up for the lacking in certain aspects regarding the credit records. Hence, before buying a home you should take your time to research well regarding the basic terms and conditions that a mortgage would impose and what you need to do to qualify for the best home loan.

Why Pay Discount Points?If you have a good credit record you do not need discount points. However, if the credit record is not that sound, then the discount point might become a pre-requisite for the mortgage home loan. If your credit is just so-so then it would depend on the lender and your negotiating power whether you would have to pay or not the discount points.
The advantage of paying for discount points even when you have a perfect credit record is that it may bring you some relief in terms of lower interest rates or other similar benefits. Find out from different lenders what the discount points would offer you in terms of getting a lower rate. Also you would need to find out how much leverage the discount points can give you in choosing the mortgage home loan lender.

When to Avoid Discount PointsBe careful that you do not pay for discount points without having any real benefit from the payment. If the benefits are not worth it then it better than you avoid paying anything extra for the mortgage home loan. It is good to know that these points are tax deductible but this benefit by itself might not be sufficient to justify buying discount points.
Good background research would help you find out the best rates offered by different lenders so you could avail yourself of the best possible mortgage for buying a home.

This article was provided by Automated Homefinder -- a Castle Pines real estate company.