Walk Score
These days more and more home buyers contact me with the goal of buying a home in a walkable neighborhood. Most don’t ask me in those terms, usually they say they want to buy a home in an area where they can walk to a restaurant, park and the bus stop. Sometimes buyers need these amenities close by because they prefer not to drive, can’t drive or they are committed to using only one car in a two or more driver family!
No matter how they ask I hear “walkable neighborhood.” Lucky for us some brilliant people have put together a website that actually has a way to measure the “walkability” of many metro neighborhoods. Ha! Where do these people come up with these ideas!
Getting a Walk Score is just as easy as inputting the address, waiting a few seconds and walla! There’s your score along with all the attractions/amenities on a Google map for you to see! How easy is that?
What makes a neighborhood walkable?
According to Walk Score a neighborhood should have a “center.” It needs to be have “density” or a compact composition in order to support public transportation and enough local businesses to stay in business. There should be a diverse cross-section of incomes providing housing across all levels. Parks and public space are also very important to provide places to play and congregate. Naturally the neighborhood needs to be “foot friendly”. If you can’t walk safely on a sidewalk, it just isn’t going to work!
I don’t know about you, but a place like this sounds very appealing to me. How the people who invented lay out the scores is beyond me.
Is there a downside?
Probably! As much as I am excited about having an easy method for measuring a home’s walk score, I can’t imagine it being the sole reason for purchasing a home or not…
Just for grins I input a home I have listed in Denver’s City Park. This home is located one block from the entrance to the City Park Golf Course. Now this may not be an exciting feature for everyone, ask a golfer and I will guarantee they will agree, this location is awesome.
Well the Walk Score people only gave my listing a score of 52! I suspect golf course homes don’t rate extra points! Boo!
OK, I won’t contest, but I would like to encourage any golfer out there who is interested in buying a nice urban Denver home close to a golf course, Denver City Park, Denver Zoo and a few minutes from downtown Denver to give me a call!
Operators are standing by! (yes LIVE operators!)
Top 10 Home Features
According to the National Association of Realtors Annual Profile of Buyer’s Home Feature Preferences, buyers want:
- Central Air Conditioning
- Garage (2 or more spaces)
- Walk-in closet in master bedroom
- Backyard/play area
- Cable/Satellite TV-ready
- High-speed Internet Access
- Separate shower enclosure in master/main bath
- Patio
- Fencing
- Home less than 10 years old
What do home buyers in Denver want?
- Central Air Conditioning is a maybe, or rather that depends. In the city and the suburbs air conditioning is a favorite feature. However as one gets up into the higher elevations above Denver, air conditioning becomes less and less necessary.
- 2 Car Garage. Once again, that depends. Urban parking doesn’t require or should I say "allow" most home owners to have a 2 car garage. In urban areas designated street parking might be the ultimate cat’s meow. Of course travel a few miles to the ‘burbs and the desire holds true. A 2 car garage is the minimum standard for most homes. Of course when homes are priced over say $400k a 3 or 4 car garage is the minimum standard!
- Walk-in closet. No argument here. Inner city home owners would settle for a closet that is wide enough to fit modern day clothes hangers! Suburban home owners wince at the thought of not having proper storage for all their worldly goods.
- Backyard/play area. Dream on homeowners. Colorado has been "Californicated" the smaller the lot the bigger the smile on the developer/tax collector/water marshall. What we do well in Colorado are parks, open areas and recreation centers.
- Cable/Satellite TV-ready. no argument here. Homeowners have a variety of choices from cable to satellite dishes. To each his own delight!
- High-speed Internet access. Actually this amenity is right up there with "air" when it comes to necessity. Who can remember a world without it?
- Sparate shower enclosure in the master/main bath. Around these parts we call that a "5-piece bath". Count ‘em; 1. toilet 2. double sinks 3. shower 4. tub. = 5 pieces in the bathroom. Most modern homes will have these features.
- Patio. Absolutely! Colorado sunshine is so delightful to soak up. We all enjoy the big bar-b-que out on the patio or deck.
- Fencing. Fido and kids need to have boundaries.
- Home less than 10 years old. It’s true selling a newer home is much easier than selling an older one. However many of our charming older homes have been updated to retain the charm and still present a modern face. Need I say they also sell quicker?
What else would you count as important in a home feature?
Personally, I like spacious, sunny rooms. Most of my time in spent in only a few rooms, so for me the more spacious the better. I can do without the areas of the home that are seldom used. Give me space where I spend my time and do away with everything else!
How about you?
Home Inspection
Saturday evening, most people are relaxing after a satisfying work week. Some may even be popping the corks off wine bottles celebrating a moment or just enjoying life.
Tonight I was at a celebration of a different kind, a home inspection. This week I worked with a buyer who is relocating here from the Washington D.C. area. It was her second time out and the first time to seriously look at homes.
We spent two days touring all the homes that fit her specific criteria in the Highlands Ranch area. On Thursday night we wrote the offer which was accepted late Friday. With one full day left before she went home, we scheduled a home inspection!
Much to my surprise, John Braddock the inspector who I can always count on agreed to do it Saturday night, the first time he had available! We were delighted at the prospect of my buyer being able to return home with her mission accomplished! So we accepted the appointment.
My hat goes off to the family with young children who agreed to leave us in their home for 3 hours on a Saturday night! They were most gracious and accommodating, in fact they left us fresh, home-made chocolate chip cookies! Yum!
The inspection went quickly as John called in his partner, Ryan. At the end we celebrated by clinking our water bottles in a toast to us and all the people that pull together to make a real estate transaction happen.
Thank you to the buyers, sellers, inspectors, listing agent, relo manager (who accepted the offer at home after hours), assistants and the future helpers; appraiser, title reps, closer and the neighbors who will welcome the new comers to Colorado!
Oh I forgot the mention Frances Wehner, the loan officer who took time out of her Saturday to travel to Park Meadows Mall to meet with the buyer as a convenience as to not interrupt her shopping!
Tomorrow my buyer goes home satisfied. She visited all the schools, registered the pre-schooler, shopped in her future grocery store, got a pedicure, went to the mall and purchased a home! All in 5 days.
Now that is what I call a productive week!
Welcome to Denver!
First time home buyer assistance
First Time Home Buyers in Colorado have many benefits to assist them in purchasing a home. Counties in Colorado offer a wide assortment of programs to assist not just first time buyers, but all home buyers in learning more about the process of purchasing and maintaining a home.
Understanding the process helps future home buyers make better decisions. Once they understand the consequences of making a wrong decision they can avoid doing so. Local governments have prepared educational classes so successful that discounts are given to participants, because they have proven to be more responsible in homeownership.
Rewards for taking the education course comes in a variety of forms:
- lower interest rate
- grants for closing costs
- down payment assistance in the form of a “silent” loan
- discounts on PMI are a few incentives.
If you are looking to purchase a home, I suggest you investigate your eligibility for one of these programs. Each county and some city programs are offered throughout the State of Colorado. Check into the program in the county/city where you are interested in purchasing a home.
City Programs:
- Arvada - House to Home Ownership Down Payment Assistance Loan Program (970)-494-2021
- Aurora - Homeownership Assistance Program or (303) 739-7900
- Boulder - Homeownership Programs (303) 441-3157
- Colorado Springs - Homeownership Programs - Affordable homeownership opportunities (719) 385-5985
- Commerce City - Commerce City Housing Authority or call (303) 289-3698
- Delta - West Central Housing Development - Down payment assistance (970) 874-8204, ext. 24
- Denver - Del Norte’s Homeownership Program or (303) 477-4774, ext. 18
- Denver - Colorado Housing Assistance Corp at (303) 572-9445
- Denver - New West Side Economic Development (NEWSED) or (303) 534-8342 ext. 124
- Denver - Southwest Improvement Council (SWIC) - First Time Homeownership Program (303) 934-2268
- Carbondale - Mountain Regional Housing Corporation - Down payment assistance program (970) 963-9606
- Fort Collins - Home Buyer Assistance Program or (970) 221-6758
- Greeley - High Plains Housing Development Corp. (970) 346-7660, ext. 6540
- Longmont - Down Payment Assistance Program or (303) 651-8530
- Loveland - Larimer Home Ownership Program or (970) 667-3232, ext. 39
- Pueblo - Housing Department (719) 553-2850
- Pueblo - Colorado Bluesky Enterprises - Down payment assistance for individuals with developmental disabilities (719) 546-0572
- Pueblo - Neighbor Works of Pueblo - Affordable Housing Program (719) 544-8078
- Westminster - Home ownership Assistance (303) 227-2075
- Wheat Ridge - WRHA Home Ownership Program (303) 422-8600
Statewide Programs:
- Colorado Housing Enterprise (303) 428-1448
- Colorado Housing and Finance Authority (CHFA) - or (303) 297-7376 or (800) 877-2432, ext. 376
- Colorado Housing Assistance Corporation (303) 572-9445
- Colorado Division of Supportive Housing and Homeless Programs - Section 8 Homeownership Program or (303) 866-7350
County Programs:
- Adams County Housing Authority - Homeownership or Program HOTLINE (303) 227-2089
- Arapahoe County - HomeBuyer Program or (303) 738-8060
- Boulder County - Outside city limits of Boulder - Down Payment Assistance Program or (303) 651-8530
- Eagle County - Colorado Housing Assistance Corp or (303) 572-9445
- El Paso County - Single Family Mortgage Bond Program or (719) 520-6481
- Fremont, Chaffee, Custer and Lake counties - Upper Arkansas Area Council of Governments - Mutual Self-Help Housing or call (719) 269-7687 ext. 107
- Jefferson County - Colorado Housing Assistance Corp or (303) 572-9445
- Larimer County - Larimer Home Ownership Program - Outside city limits of Ft. Collins - (970) 667-3232, ext. 39
- Weld County - High Plains Housing Development Corp. (970) 346-7660, ext. 6540
- Bent, Crowley and Otero counties - Tri-County Housing - Downpayment and closing cost assistance, 2nd mortgages for repairs to a home being purchased, and Home Ownership Counseling (719) 263-5168
- Cheyenne, Elbert, Kit Carson and Lincoln counties - Prairie Development Corp. Down payment assistance program or (719) 348-5562 or (800) 825-0208
- Logan, Morgan, Phillips, Sedgewick, Yuma and Washington counties - Northeast Colorado Housing, Inc. in Fort Morgan - Down payment assistance program call (970) 542-0955
- All counties - Colorado Housing Assistance Corp or (303) 572-9445
Home buying boo boos
There’s not a day that goes by where I don’t learn something new. Occasionally I learn what NOT to do the hard way.
When these lessons thump me over the head, they make an impact. The results are usually a big benefit to my clients, through my lessons of hard knocks I know where NOT to step next time.
Yesterday was a hard knock day. I’m working with a first time buyer relocating to the Denver area from a neighboring state. He’s a sweet young man with an excellent job, outstanding credit and money in the bank. To a mortgage banker he is an A+ buyer.
Mr. A+ decided to pick his own mortgage lender. Not following the references of his buyer broker (that’s me) but instead walking into his local bank and speaking to the resident mortgage person.
Mistake #1 ~ When dealing with a mortgage broker always get a reference.
Mistake #2 ~ Use local mortgage bankers who are familiar with local laws and standards of practice.
As a Realtor I respect loyalty in my clients and never try to force my will on their decisions. Of course in this case it was not one of loyalty but luck. Luck that is on the part of the mortgage banker. She obtained a client based on nothing more than being in the right place at the right time.
Oh well, I figured what could happen? Mr. A+ was a perfect candidate for a loan. What could go wrong?
Colorado contracts have deadlines for various action items. These dates must be met in a timely manner. If a date is not met on or before the deadline, the buyer could risk losing his earnest money.
Here’s the catch. The mortgage broker didn’t read the contract. She went on what the laws and practices were in her state. She thought she was doing it right, but she failed to order the appraisal.
I discovered this by accident. After she said her work was done and loan was approved, she mentioned she just was waiting on the appraisal.
The sirens went off in my head. The appraisal is PART of the loan conditions, so if it wasn’t done how could the loan be done? DUH!
Luckily for us we discovered it in time.Had we not and the home didn’t appraise Mr. A+ may have lost his $4000!
The sad thing is all of this is written in the contract. All she had to do was read it.
In my conversation with her it didn’t take long to figure out she had very little experience. So little in fact I bet this was her first rodeo. OUCH!
I harp on out of state lenders all the time. Seldom do they perform like our local lenders who know the ropes and perform like super stars without my supervision.
Today’s real estate transaction is more complicated than ever. Things go wrong all the time and we fix them. Knowing what to fix and when is critical. It’s nice to be surrounded by capable professionals who work together to make the transaction smooth and seemingly effortless.
My strategy is so simple. When it comes to buying a home follow the voice of experience. Use a mortgage banker you can trust to get the job done and comes recommended by others.
Take advantage of my road rash and avoid having the pain of your own.
(Photo credits to Bill and Jane who know the joys of homeownership and the pain of road rash obtained from one small moment of oops on the road)
Foreclosure Investing for Dummies
First time home buyers, second time home buyers, investors whoever you are, our Denver real estate market in many sectors is prime for making a good deal. Many savvy buyers/investors realize this and are making their purchases now.
Investing in Foreclosures is not for everyone. There are many aspects that need to be considered, researched and understood. If you are thinking about purchasing a distressed property, there’s a new book that might help you understand the process. Written by Ralph Roberts it’s called: Foreclosure Investing For Dummies.
The book is written in plain English and talks about the different foreclosure purchase strategies.
- Banking on Bankruptcies
- Knowing When to Purchase
- Negotiating Short Sales
- Knowing the Lien Holder pecking order
- Tracking down property tax sales
- Bidding for properties at a foreclosure sale
Working with foreclosures is not for the weak of heart. Armed with knowledge of the process, a solid strategy and some investment capital, a wise investor can make a good living by specializing in this market.
The Dummy book is a valuable resource for those who wish to learn or merely brush up on their skills. I highly recommend it!
CHFA ~ an alternative source for financing
Homebuyers are finding their pot of gold at CHFA
Industry news in the finance sector has been scary to say the least. Home buyers are finding themselves with less and less options each passing day. One steady financing resource for purchase funds in Colorado is CHFA.
I received an excellent email from Mark Afman a Senior Loan Consultant with Universal Lending explaining CHFA’s offerings. Mark has given me permission to post his email:
CHFA is a non-profit investor that sells tax free municipal bonds to fund their loans and is there specifically to help low to middle income buyers into homes. They allow FHA and conforming loan programs to be funded through CHFA. The CHFA program is the antidote for the predatory lending practices that are now under so much scrutiny. CHFA sets the Interest rate so a lender could not charge a higher interest rate even if they wanted to and CHFA caps the closing fees that a lender can charge so CHFA is considered a loan program that protects home buyers.
There are 4 programs that CHFA offers. All programs require the buyer to attend a CHFA approved, free first time buyers education course.
1) MRB First Step: This is the program for first time buyers (someone that has not had an ownership interest in a home for at least three years). This is a 30 year fixed loan. There are income limits, for example a 2 person family can not make more then $71,400 a year. There are also purchase limits, for example in the Denver Metro area, the limit is $365,100. CHFA also offers a 3% "Silent 2nd" for down payment assistance. This 2nd mortgage has no interest or payments due for the life of the loan but is is a lien against the property so when the buyer is done with it they have to give it back. So if the buyer sells the property, refinances the mortgage, or lives there for 30 years, the original 3% must be paid back to CHFA. This effectively offers the buyer 100% financing. However, if a buyer uses the CHFA 2nd mortgage for down payment assistance, the interest rate on the 1st mortgage will be 1/4% higher then if they bring their own 3% down payment. The buyer is required to put in a minimum of $1,000 in to the transaction. The interest rates are set by CHFA at an affordable level usually below the normal prevailing market rates. They also cap the amount of closing costs a lender can charge at $600 plus a 1% origination fee. For current rates and information on the training, etc. go to www.CHFAinfo.com
2) Taxable Home Opener: This program is very similar to the MRB First Step program but it allows for non-first time buyers to use the CHFA advantages. The income limits are higher, for example, a 2 person household needs to be under $82,100 and there are no purchase limitations. The rates are about 3/8% higher on the Taxable Home Opener program then the MRB First Step rates but it offers a safe 100% financing option to those that do not have a down payment saved up.
3) HomeStretch: This is a new CHFA program for buyers that may need help keeping their payments lower. It is a 40 year fixed loan and has lender paid mortgage insurance, unlike the other 2 programs. The rates are higher by about 7/8% but with the combination of a longer term and no MI, the payments are generally lower. This program also allows for non-first time buyers to use it. It can also be used for refinancing. This program also allows for Involuntary Unemployment Insurance which pays up to $1500 a month against the mortgage payment for up to 6 months.
4) Home Access: This program is specifically for buyers that have a disability or the parents of a child with a disability. This is for low income, first time buyers. You can find more information at CHFA.
Looking to Denver real estate? Call me! (303-589-2022) Need to finance a home? Call Mark Afman 303-759-7392.
Thanks Mark! We all appreciate your sharing this excellent advice.
FHA steps into the limelight
The mortgage industry is in a flux right now. Companies that funded sub-prime loans are hurting, actually they are closing their doors. Respectable companies that routinely made good loans found themselves in a liquidity crisis and are shutting their doors as well.
As the pendulum swings towards the conservative side of lending, many would be home-buyers are finding themselves scrabbling to find funding for their new home.
Buyers who aren’t blessed with a huge down payment are turning to FHA mortgages. FHA loans are backed by the government and could be the answer for many. 100% financing may be going the way of the dinosaur, remembered fondly but extinct.
Saving for a home is back in vague.
FHA requires only a 3% down-payment. Three percent down is not a lot of money, it’s a manageable down payment. The source doesn’t have to be the borrower, the down-payment can come from family in the form of gift funds.
Saving for a home has many benefits.
Mortgage investors love to see buyers with down payments. Families pull together when they have a common goal. The unity of purpose creates a strong bond for everyone involved. The
No Brainer
There is an ad on the radio that makes my skin crawl. The company shall remain nameless, to protect the annoying. You will recognize the ad by what he says, "We don’t need your money!" Yes, you’ve heard it, they are selling refinances and new home loans direct to us from Gullible Island.
We don’t need your money? Yeah sure, those radio ads pay for themselves.
Primal Scream Catch 22 a Denver relocation nightmare
Denver Relocation Tips
Moving to a new area brings horrors of it’s own. The biggest horror of all is having a Catch 22 problem you cannot solve.
The most common problem I see is when the transferee packs up all his belongings. As the moving van pulls away from the curb the Denver lender calls, asking for documentation for the new loan.
No problem the transferee says, I’ll fax it to you, then he remembers…
OH NO! It’s packed away in the truck!
What happens now? The moving van does not arrive until next week sometime, just after closing.
But closing can’t occur until there is a loan. The loan won’t occur until there the documents are delivered.
What a predicament.
The solution? Get your loan in place before you pack. Separate all your important back up data from the items to be moved. Keep them with you, this might even mean HIDING them from the moving guys, who have been known to be extra efficient in packing!
This Denver Relocation Tip works in every part of the country whether you are buying
Denver Real Estate or not!
(Photo of Norway’s most famous painter, Edvard Munch’s emotional Primal Scream. Painted in th 17th Century were obviously the artist experienced a distraught moment in relocation!)
This site brought to you by Kristal Kraft, a licensed Colorado Real Estate Broker