Most home seekers don’t understand the importance or role of an Exclusive Buyers Agent  who can look after their best interest when purchasing a home. Some people may assume that means this service is expensive, but remember that all these features are available to you without you incurring additional costs! Exclusive Buyers Agents are paid at closing out of the proceeds of the transaction just like any agent except they are there to help you! Imagine you get the protection of their services and experience without any extra fees!

* They negotiate the best price possible since they aren’t working for the seller.
* They sign a contract to represent only you and your best interests
* Using the criteria you provide they search all possible listings and properties.
* With their experience they can point out the strengths and weaknesses of each property.
* Give you the truth about a properties value, not its perceived value in the eyes of the seller or listing agent.
* Help guide you for property inspection and warranties
* Offer advice on how to make offers on properties.
* Submit offers promptly and professionally.
* Provide honest and complete financial information about neighborhood properties and how this can affect your future.
* Respond honestly and accurately to your questions.
* Negotiate solely on your behalf.
* Assist in choosing the closing authority.
* Perform loan analysis from multiple lenders to find the most favorable loan for your particular situation.
* Review HUD-1 settlement statement for accuracy.
* Most importantly they keep your personal information private from the seller and other agents, something listing agents are obligated NOT TO DO!

Do you fit the criteria of someone who could benefit from a buyers agent?

* Buyers re-locating to a new city
* First time home buyers
* Buyers interested in maximizing their purchasing power
* Buyers looking for a lot and/or builder
* Buyers who want to protect their investment

 Contact us today to see how using an exclusive buyers agent can be the best fit for your home shopping needs!

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The show starts at 7:30 at KPOF Hall, 1340 Sherman St. Denver CO but come early at 6:45 for pre-concert talk where  Dr. Rebecca Koenigberg discusses the phenomenon of vocal competitors and competitions.

$20 Adult, $15 Senior, $10 Student, 12 and under free. You can get your tickets to this Denver event here.  For more information about location, seating and parking, visit this website.

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Buyers who close on a new home and finance their mortgage with Wells Fargo Home Mortgage are eligible for a closing gift valued at $1,000! Buyers can choose from among many items in the online catalog.

If you have already been preapproved by another lender, Wells Fargo will reward buyers for allowing them the opportunity to provide their own preapproval decision (generally within 30 minutes or less) so that  buyers can compare and ensure they are getting the home financing option that meets their needs. Buyers will even get a $50 Wells Fargo VISA reward card for allowing us to give a second opinion.

Borrowers are eligible to redeem this promotion after closing on any new purchase or refinance loan secured by a first mortgage or deed of trust with Wells Fargo Home Mortgage (“New Loan”) as specified above, subject to qualification, approval and closing. This promotion is not available for all New Loan programs and New Loan excludes loans originated with a broker or a correspondent lender. Contact a Home Mortgage Consultant to learn what programs qualify.

This promotion is not available with any other promotion, discount, or rebate. Only one gift permitted per New Loan. FHA New Loans are ineligible for a gift card and are only eligible for merchandise valued in the amount stated in this promotion. This promotion is void where prohibited, applies only to designated promotion recipient and is not transferable, subject to the terms herein.  Redemption period ends within 30 days after your New Loan close date. Gifts may constitute taxable income. Federal, state and local taxes, and the use of the Gift not otherwise specified herein are the responsibility of the Gift recipient. Please present your good faith estimate or preapproval letter at the time of your request for your preapproval. If you have a current lock-in agreement, this is not an inducement to transfer your loan. This promotion may not be combined with any other offers, discounts or promotions.

Are interested in taking advantage of this incentive? Contact me today to see if this is a good program for you and your family!

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1. Why is the seller moving?  This is the one question that every home buyer should always ask the seller when buying a home. Unfortunately, it’s not always easy to get an honest answer. Many times even the listing agent doesn’t know the real reason the seller is moving.

It may help to know why the seller is moving, you can make an offer that will meet his needs. For example, if the seller needs a cash­out sale and cannot help with the financing by carrying back a mortgage, it will help the buyer to know this. However, the seller may want the income that a seller-mortgage provides and could be willing to help finance the sale!

2. How much did the seller pay for the home?  The recorded price paid for a property is public information in most communities. Smart home buyers want to know this because the price paid affects how much negotiating room the seller has. If the seller bought the home many years ago for a very low price, there is a large potential profit and the seller might be willing to sell below the market value.

Keep in mind however, if the seller bought recently for a high price, there may not be much room for negotiation because nobody likes to sell at a loss. However, remember that the purchase price has nothing to do with today’s market value of the home.

3. How much does the seller owe on the home?  Public records also reveal what loans are on the property. The exact loan balance may have been paid down in the years since the home was purchased or refinanced. If the seller has a lot of equity, it may be easier to negotiate a better price.

If more is owed on the home than it is worth, the buyer may have to work out a “short sale” with the lender. Your real estate consultant should check out what loans are recorded on the property before you make an offer.

4. How did the seller decide the asking price?  This is a serious question to ask a seller or their listing agent when buying a home. A good agent will gladly prepare a CMA (comparative market analysis) for you to review.

The CMA shows recent sales prices of comparable homes, the list prices of competitive neighborhood homes currently for sale and the expired list prices of homes that did not sell. After analyzing this information, with the help of their real estate agent, smart buyers can quickly figure out the fair market value of the home they are interested in.

5. Has the seller prepared a written Transfer Disclosure Statement?   Most states require sellers and the real estate agents to prepare a written disclosure of material facts about the home. Usually, it’s given after an offer is accepted. To prevent surprises, a buyer may want to see this statement before making an offer to purchase.

When a home is offered for sale “as is” (meaning the seller will not pay for any repairs), the seller and agent must still disclose all known defects. If the defects are severe, the buyer may decide to not buy the home, or will want a big discount off the market value.

6. Are there any nuisances or problem neighbors?  These are important questions for buyers to ask a seller when buying a home. The answers will help you find out if you really want to live in the neighborhood. Find out if a noisy or problem neighbor is the real reason the seller is moving. It will be good to know if there are transportation system noises such as airports and railroads, or if there are any future roads or commercial development planned for the area. These factors can affect the future value of the property.

7. Are there any crime problems or is there any litigation?   Savvy buyers will always want to ask sellers this question when buying a home. You can always find out the crime statistics from the police department. Construction litigation is rampant in both condominium and single-family neighborhoods. This can be a hassle and may hold down property values until it’s resolved. Be sure to ask sellers about construction litigation. However, at settlement the properties involved in litigation are usually restored. Owners may receive new roofs, windows, siding, etc. and there can even be a welcome cash windfall.

8. Ask the seller what past problems have they had with this house?  Seller disclosure forms do not require disclosing past problems that have been corrected. There may be some things that have been fixed that you want to know about. For example, major structural problems, plumbing and electrical defects, roof leaks, fire damage and drainage problems have a habit of coming back. It’s good to know about these things so you can check out the remedies and be sure they were resolved successfully.

9. What is the reputation of public schools in the area?  If you have children, you will want to know the school rating statistics before selecting a neighborhood to buy a home. But, it’s wise to ask the sellers and both real estate agent’s about the schools.

Nothing adds more value to a neighborhood than fine public schools and in turn, having a low rated public school system can cause buyers to look elsewhere. Sending your children to private schools is expensive, so be sure to check out the public schools during the contingency period.

10. What do you like the most and what do you dislike about this home?  Asking sellers this open-ended question when buying a home gives the seller an opportunity to emphasize the home’s best features and worst drawbacks. The seller’s answers to these key questions will help you decide if you want to own the home or not.

Are there any other questions that you think are important? Share them with us today!

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Pre-approval is the first step towards purchasing a home. Many home buyers get pre-qualified for a home loan early on, and then become pre-approved before beginning a serious home search. By completing your mortgage application prior to choosing a home, you’ll get the pre-approval letter that needs to accompany your offer so that the seller will know you are financially ready to buy. And many real estate professionals require pre-approval before agreeing to represent you and begin to show you properties.

If you’re ready to get pre-approved contact me today so that I can help you with this process!

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• First, resale.  Set your budget so that you can afford upgrades.  Builder model homes are top of the line models with many upgrades.  Builder grade is a lot cheaper, but it doesn’t have the resale value that upgraded homes do, even years later.  Plan to include the latest counter top style, floor coverings, wall colors, light fixtures, appliances, back yard landscaping, deck – the absolute best you can afford.  Today’s buyers have been spoiled by model homes.  But upgrades are the name of the game for resale.

• Don’t buy new furniture for your new house until you HAVE your new house.  Don’t buy a dining room set that may be too big for the house you love otherwise except for the too small dining room.

• Be sure to have a builder home inspected.  People think that builder homes are a good bet that the house won’t have any problems because it’s new.  But Mike Holmes of HGTV and DYI’s Holmes on Homes is rescuing lots of people in jeopardy because they thought their homes shouldn’t have had problems because they were “new.”  But sometimes even worse problems can show up in a brand new house than in a typical resale home.

Call Judith Clausen toll free at 877-570-4469 to speak to her now about buying a builder home here in the Denver metro area.

Click here to talk to us now.

1. Why is the seller moving?  This is the one question that every home buyer should always ask the seller when buying a home. Unfortunately, it’s not always easy to get an honest answer. Many times even the listing agent doesn’t know the real reason the seller is moving. It’s a smart move to do what you can to get this information.

It may help to know why the seller is moving, you can make an offer that will meet his needs. For example, if the seller needs a cash­out sale and cannot help with the financing by carrying back a mortgage, it will help the buyer to know this. However, the seller may want the income that a seller-mortgage provides and could be willing to help finance the sale!

2. How much did the seller pay for the home?  The recorded price paid for a property is public information in most communities. Smart home buyers want to know this because the price paid affects how much negotiating room the seller has. If the seller bought the home many years ago for a very low price, there is a large potential profit and the seller might be willing to sell below the market value.

Keep in mind however, if the seller bought recently for a high price, there may not be much room for negotiation because nobody likes to sell at a loss. However, remember that the purchase price has nothing to do with today’s market value of the home.

3. How much does the seller owe on the home?  Public records also reveal what loans are on the property. The exact loan balance may have been paid down in the years since the home was purchased or refinanced. If the seller has a lot of equity, it may be easier to negotiate a better price.

If more is owed on the home than it is worth, the buyer may have to work out a “short sale” with the lender. Your real estate consultant should check out what loans are recorded on the property before you make an offer.

4. How did the seller decide the asking price?  This is a serious question to ask a seller or their listing agent when buying a home. A good agent will gladly prepare a CMA (comparative market analysis) for you to review.

The CMA shows recent sales prices of comparable homes, the list prices of competitive neighborhood homes currently for sale and the expired list prices of homes that did not sell. After analyzing this information, with the help of their real estate agent, smart buyers can quickly figure out the fair market value of the home they are interested in.

5. Has the seller prepared a written Transfer Disclosure Statement?   Most states require sellers and the real estate agents to prepare a written disclosure of material facts about the home. Usually, it’s given after an offer is accepted. To prevent surprises, a buyer may want to see this statement before making an offer to purchase.

When a home is offered for sale “as is” (meaning the seller will not pay for any repairs), the seller and agent must still disclose all known defects. If the defects are severe, the buyer may decide to not buy the home, or will want a big discount off the market value.

6. Are there any nuisances or problem neighbors?  These are important questions for buyers to ask a seller when buying a home. The answers will help you find out if you really want to live in the neighborhood. Find out if a noisy or problem neighbor is the real reason the seller is moving. It will be good to know if there are transportation system noises such as airports and railroads, or if there are any future roads or commercial development planned for the area. These factors can affect the future value of the property.

7. Are there any crime problems or is there any litigation?   Savvy buyers will always want to ask sellers this question when buying a home. You can always find out the crime statistics from the local police department. Construction litigation is rampant in both condominium and single-family neighborhoods. This can be a hassle and may hold down property values until it’s resolved. Be sure to ask sellers about construction litigation. However, at settlement the properties involved in litigation are usually restored. Owners may receive new roofs, windows, siding, etc. and there can even be a welcome cash windfall.

8. Ask the seller what past problems have they had with this house?  Seller disclosure forms do not require disclosing past problems that have been corrected. There may be some things that have been fixed that you want to know about. For example, major structural problems, plumbing and electrical defects, roof leaks, fire damage and drainage problems have a habit of coming back. It’s good to know about these things so you can check out the remedies and be sure they were resolved successfully.

9. What is the reputation of public schools in the area?  If you have children, you will want to know the school rating statistics before selecting a neighborhood to buy a home. It’s always a good idea to ask the sellers and both real estate agent’s about the schools, especially if you are new to the area.

Nothing adds more value to a neighborhood than fine public schools and in turn, having a low rated public school system can cause buyers to look elsewhere. Sending your children to private schools is expensive, so be sure to check out the public schools during the contingency period.

10. What do you like the most and what do you dislike about this home?  Asking sellers this open-ended question when buying a home gives the seller an opportunity to emphasize the home’s best features and worst drawbacks. The seller’s answers to these key questions can help you with your due diligence in deciding if you want to own the home or not.

There are many things to take into consideration when looking for your home, but you don’t have to do it alone. Contact us  if you are ready to buy a home, we CAN help you find the home of your dreams!

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Tonight ESPN will premiere Sound FX: Tom Brady & Tim Tebow at 7 p.m. MST. The show is described as a compilation of the best on and off field sounds from the New England Patriots quarterback and the Broncos signal caller.

Afterwards, at 7:30 p.m. MST, Denver and New England’s Week 15 clash will be replayed. The Broncos lost the game 41-23 after grabbing an early 16-7 lead.

Finally, on Friday at 6 p.m. MST, NFL Network will broadcast Tim Tebow: Season in Review.

Tebow jerseys are hard to find, so if you want one you may be out of luck.  Go Broncos!!

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Typically, closing costs run between 3% and 5% of your loan amount, so if you’re borrowing $100,000 you can expect closing costs of $3,000 to $5,000. If you’re borrowing $200,000 you can expect closing costs of $6,000 to $10,000.

The smart thing to do is to obtain good faith estimates from two or three lenders and compare the costs. Then be prepared to ask the lender you choose to meet the best offer.   Here are some of the items you can expect to find on a Good Faith Estimate:

~ Loan origination fee — 1% of the amount borrowed, or $100 for every $10,000 borrowed — (if you use Rate One “The Mortgage People” as your lender, there is no origination fee)
~ Loan discount fee
~ Points (to “buy down” the interest rate: between $100 and $300 for every $10,000 borrowed)
~ Appraisal fee
~ Credit Report
~ Tax service fee
~ Processing fee
~ Underwriting fee
~ Wire Transfer fee
~ Interest from the day of closing to the date of the first mortgage payment
~ Private mortgage insurance premiums to protect your lender ($750 to $1750)
~ Hazard insurance premiums (homeowner’s insurance)
~ Property taxes from the day of closing to the end of the tax year
~ Closing fee paid to title company or other closing entity
~ Document preparation fee
~ Notary fee
~ Title search and title insurance to protect your lender ($400 to $600)
~ Title insurance to protect you
~ Recording fees

When you finalize your closing, you will need a cashier’s check to cover the remaining cash required. The title company or other entity conducting the closing will tell you the required final amount for the above costs. They’re required to tell you 24 hours prior to closing, but sometimes you won’t know until just before closing.  You’ll have enough time to get the cashier’s check (made payable to you) before closing.

It’s important to note that surveys are not normally required in Colorado, but an Improvement Location Certificate is recommended.

Property taxes placed in an escrow account are one of the largest expenses at closing. The amount depends on the value of the house you buy and the tax rate in the county where the house is located. Many lenders require you to include a monthly estimate with your mortgage payments equal to 1/12th of your annual property taxes and homeowners insurance. For most people, this is easier than coming up with a large lump sum each year when taxes are due.

There is a lot of information to take in, especially if you’re a first time home buyer. Stay educated and don’t go to closing unprepared.

Contact me and I’ll be happy to discuss the closing process and help you find the best home for you and your family!

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My question is how can an ethical real estate agent start out offering her services as a seller’s exclusive agent, but then halfway through the transaction change her status when she brings the buyer so that now she can’t fulfill her fiduciary obligation to her original client, the seller? And what buyer will feel confident that their interests are being best served when the agent they’re working with turns out to have a legal obligation to the seller?

In this situation the parties have to come to a screeching halt while the agent changes her status from a representative with fiduciary legal obligations to a “facilititator” who can no longer advocate for or give advice to either party. She becomes one who advocates for getting the sale accomplished, and that serves her own interests over the interests of either party. She does this because she gets a commission from both parties. It’s called “double-ending.”

It’s crazy! If you’re a seller you want the best representation you can have in getting your precious home sold. You want the best financial outcome possible. And if you’re the buyer you, too, want the best possible outcome for yourself. After all, this is most likely the biggest financial transaction of a lifetime. And all you wind up having is somebody who can “facilitate” the transaction, but not advocate for you! This situation is untenable for the parties, but not for the agent, and that’s wrong.

Dual agency is becoming increasingly outlawed in favor of the above situation which is called transaction broker. Transaction brokers are forbidden by law to offer advice or to advocate. But as I said, wouldn’t you want the best kind of representation possible when you’re spending a lot of money to buy a house? That includes advocacy and advising by the professional you’ve hired.

What’s the solution? If you’re a buyer you’ll need an Exclusive Buyer’s Agent who never takes listings and only represents buyers. They don’t have the kind of built-in conflict of interest described in the above situation. They work only for the buyer’s best interests, including advocating and advising. They’ve got your back. Take a look at this video which explains it all.  Buying a House – Exclusive Buyer\’s Agents and Others