Turning an ugly duckling into a swan
The end of the month is a good one when it means closings, negotiations and more business.
I sold (closed actually) a great investor property today. A builder is going to take the ugly little 1970’s house that is surrounded by charming old bungalows and make it charming too. He plans to gut it, build a second story and change the front to give it the bungalow style.
This house sold for $225,000 (it was listed for $257,900). The surrounding homes sell in the $260’s and higher. This home would have sold for much more but it had a few things working against it;
- The facade of the home was not popular.
- It was tenant occupied and the tenant was a pack-rat. The home showed poorly.
- The home was owned by an estate. They just wanted to “not lose money”.
Funny by not getting rid of the tenant they ended up losing value. True, they kept the rent income, but lost potential value because of the condition of the interior.
So Mr. Builder comes along, sees potential, does his numbers and makes an offer. He got the house.
Let’s watch over the next few months and see how he takes this ugly duckling and turns in into a swan.
Ding Dong Gone
I could have sworn I wrote a post about a deal I’m working on. It’s a repeat of a repeat, I let a client walk into a bank and go with the loan officer on floor.
Luck of the draw was not working that day.
This gal is clueless. So totally clueless I wonder how she manages to get through the day.
She failed to order an appraisal until AFTER the deadline. When I would call to confirm how the process was going, she tell’s me her job was done WEEKS ago. She’s only waiting on the appraisal.
DUH!
The appraisal is PART of the loan process. If the home does not appraise there’s no loan.
Period.
After 3 conversations with her, she still doesn’t get this.
My client is fine, his loan will happen, hopefully if the ditzy lender doesn’t do something really dumb.
I worry about the others that come along, the ones who may not have buyer representation to follow up and follow through, babysit the contract.
I wonder if they have any idea the biggest transaction of their life is in the hands of a ding dong dummy.
Trusting this ding dong is like walking blindfolded across the freeway. Some will make it, some won’t.
The secret is out.
The Real Estate Zebra unveils the #1 way NOT to sell your home.
Learn about it here.
One Size Bandaid Fits All
As the Mortgage Crisis continues to ripple through the country solutions are being offered up.
Global Insight prepared a report for the U.S. Conference of Mayors projecting a lost of $6.6 billion in tax revenue in 10 states. In the same report lenders were told they need to modify the finance terms of people who could pay for their homes had they not been placed in high risk home loans.
The factors bringing our country to this point can be likened to the layers of an onion. Each layer building upon the next entwining, growing until there is one big stinky mess. It’s been called “the perfect storm”. An over mortgaged, under-qualified America is now looking for relief.
Colorado House Bill HR 3609 is looking to legislate help for bankrupt homeowners. This bill would allow the bankruptcy trustees to rework mortgage terms to benefit the homeowner.
Currently trustees can rework other loans, but they are prevented from touching primary home mortgages. The bill appears to have merit but one wonders how far can one expect the mortgage lenders to bend? When a high risk loan is given to a buyer, it is done so at a higher rate for a reason; profit that is worth the investor taking the risk.
So I ask, if the lender is required by law to renegoiate a note that is currently delinquent, with a borrower who now has bad credit (they are in bankruptcy) how long with these new terms last? How long can a mortgage lender afford to stay in business? By doing so are we postponing the inevitable?
Offering up a “one size fits all” solution just doesn’t work. There are many issues here, none are going to be easy to solve on their own much less all at once.
We have a problem in this country with lack of responsibility. Buying a home, getting a loan, purchasing a car or whatever comes with a responsibility to pay for it….yourself. It’s a promise. A promise should be kept. It’s not a promise to keep as long as you feel like it.
I realize this comes across as sour to those in trouble. Those folks who took out loans and found themselves on the wrong side of a housing down swing. All I can say is this, it won’t last forever.
This market is a market and will adjust, eventually. We in America will always need housing. Owning a home is the American Dream. It always will be.
Right now for some the Dream is more like a nightmare. But nothing is forever. This too will pass.
This One sized bandaid does not fit all.
(If you are a Colorado homeowner in trouble there is help for you. Call the Colorado Foreclosure Hotline 1-877-601-HOPE)
What happened in Vegas…got recorded. Oh my!
2007 may go down as the year NAR recognizes the Blogger! In Las Vegas last week, blogging was talked about and bloggers were present. It is becoming abundantly clear, blogging is a way to connect with consumers. If Realtors aren’t blogging they should be.
Dan Green put together a short video starring a group of bloggers (me too!).
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The stars of the show are:
Thanks for including me Dan, it was fun!
Denver Holiday activities
Blossoms of Light
Dec 1, 2007 - Jan. 20, 2008
Denver Botanic Gardens
Candy Cane Festival
Dec. 1 & 8, 2007
Hammond’s Candies Factory, Denver
Downtown Denver’s Grand Illumination
November 23, 2007
From Union Station to Larimer Square, from Skyline Park to Denver Pavillions, culminating at City and County Building between 6:45 & 7:00 p.m.
House on Fire makes for a Sad Thanksgiving Day
A furious fire gutted a home today on Krameria Way in Centennial, CO. Curiosity got the best of us when we spotted the smoke. The home nestled well within a tight neighborhood was the only structure involved.
The homeowner lived along and was found sitting on the sidewalk waiting for the emergency vehicles. He told the firemen the fire started in his basement.
I’ve never seen a fire burn like this. Even as water poured on from 3 ladder trucks the fire continued to blaze. The home burnt beyond saving. The homeowner suffered 2nd degree burns on his face and hands.
Thankfully no one else was injured.
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 Realtor 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 Denver (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 buyer broker 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)
Shooting a gun, well sortof…
Bryce Canyon National Park is one of the most beautiful places on earth. Time and weather has carved amazing sites of color and contrast. It is a photographers dream location. One can stand in the same spot and take hundreds of interesting photos over the course of hours.
Larry and I hiked into the canyon, which is not an easy walk in the park. The terrain is steep and the trail is narrow. One must pay attention to every step, for a wrong step a twisted ankle could by the difference between life and a very bad day.
Our experience was rich in enjoyment. My camera in my hand the entire time. On one of the switchbacks, I saw a man go down on his stomach reaching over the side trying to retrieve an object. I couldn’t see what he was reaching for, but he was putting himself in a predicament beyond safe. I turned my camera toward him, thinking the horrible, I would catch a shot of him as he went over the steep side.
Lucky for the man, he gave up. As we approached him, he said there was a gun down there. He wanted to retrieve it.
He was right, it was a gun. We couldn’t tell if it was a relic from Butch Cassidy or the Sundance Kid or a toy. I changed lenses but still couldn’t determine if the gun was real or not.
So I shot the gun with my Canon. Twice!
We ended up forgetting about it, until the thought occurred to me to ask someone. I emailed the park asking if they were aware of a gun on the hillside. They were very concerned and wanted to know the location and if I would send them photos. I obliged.
A few hours later in a follow up email the Park Ranger said he sent several rangers out to retrieve the weapon. It turned out to be a child’s toy. They thanked me for bringing up the matter, saying others may have put themselves in danger trying to retrieve the gun.
I must say I was a little disappointed not to have found a relic from the old west. But I was impressed with the efficiency of the Park Rangers who were very concerned for the safety of their guests.
It’s nice to know the most beautiful real estate in the country is in good hands.
Now tell me folks, does that gun look real to you?
First day back at work…why does it feel foreign?
So I checked out for 12 days to take a road trip to the National Real Estate Convention in
Las Vegas. We left early in order to visit a few of the National Parks along the way. Typically we go blowing by on the highway, this time I wanted to slow down and take to pictures. So we did.
Now back to work and I feel one step out of kilter. Showing homes I couldn’t get the keys to unlock the doors! The first three were a challenge, not just for me, but my client too. Persistence won and we managed to not to miss an entry. Smooth it wasn’t.
What is it about vacations that slows us down? The pace changes and the senses become more tuned into the surroundings. But return home and it takes a few tries before the old familiar is sharp and fast again.
Day two will be better. I may even have time to wade through the mountain of mail on my desk. The email, well that’s another story.
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