The headlines are loud and clear and everywhere, “recession, depression, housing crisis, unemployment, and the national credit rating is devalued”.  With all this great news, how could I possibly suggest this be a time to invest? Especially in real estate?

Yet that is exactly what I’m asking you to consider.  Yes it is true, real estate values have been hit hard in the last several years and many areas have been decimated with foreclosures and distressed properties can be found everywhere.  However, looking at the long, cyclical history of real estate markets in this country, over time real estate is still a powerful investment.

Some argue that real estate is too risky, the bottom hasn’t been hit yet so it would be better to put money into the stock market.  We’ve seen with the recent volatility of the stock market, that can be far more risky. 401k’s and other investment accounts can be wiped out practically overnight.

There is an important point to make here.  That is the difference between investing and speculating.  Real estate investing looks at market trends, demand for rentals, neighborhood values and affordable financing among other things.  I’m not talking about get rich quick, fix and flip (although there can be opportunity here) strategies.  I’m talking about solid investment, buy and hold, long term property investment which historically almost always winds up a winner.

So, if you wonder where to put your extra retirement income and not just place it in another mutual fund or money market, then consider real estate investment.  Take advantage of the all time, incredibly low interest rates we have now along with the low cycle of the market with value opportunities in every area and buy some rental property now with an eye on the longer term gain and the shorter term tax advantage.  You may already have the bulk of your investment money in a retirement account.  That’s ok, there are vehicles like self directed IRA’s that if done correctly, maintain the tax advantage and allow for real estate investment through the account. I can’t provide legal and tax advice, but I can provide guidance to help you make real estate investment a very successful strategy.

They say, buy a rental for each of your children, if you have any, when they are young and use it to fund their college education when the time comes.  Who knows, depending on where you buy, maybe they’ll even live in it while at school.  If I can help you or someone you know make real estate investing a tool in your arsenal, please get in touch and I’m happy to help.

720-849-6101

Real Estate Transaction Series: Final Walk Through

There are plenty of important parts to the real estate transaction that always seem to get taken care of, and rightfully so.  However, there is one thing that doesn’t always get taken care of, sometimes it gets overlooked or forgotten.  That is the final walk through.

What do I mean by the final walk through? According to the Colorado real estate contract, it’s a buyers right to walk through the property prior to closing and make sure that it is in the same condition that it was at the time of contract, normal wear and tear excluded. It’s also a good idea to go over the items that were supposed to be repaired or replaced per the inspection.  This way, if things are missing, damaged or not taken care of you have a chance before closing to get it handled.

The final walk through isn’t a time to renegotiate an inspection, but sometimes there can be obvious issues that need to be addressed.  Some of those may be missing items, new damage from move out or damage previously hidden from furniture and not disclosed, etc… Better to do a final walk through prior to closing and negotiate and agreement rather than get to your new home after closing and have your excitement squashed by issues that you could have discovered and resolved.

Note: This article is intended to provide general information and is not intended to provide specific advice.

Questions?
If you have specific questions about your specific real estate transaction, contact your real estate agent.  If you don’t have one and have further questions, I would love to help with all your Denver real estate needs.

Final walk Through: is the 3rd Post in my Real Estate Transaction Series.  You can also read the others as well here:
The Real Estate Transaction Series: Deadlines and Dates

The Real Estate Transaction Series: HOA Matters

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Click Here to Search All Denver and Highlands Ranch Real Estate

Steve Scheer, Denver REALTOR®

For More Info on Denver & The Suburbs:

Highlands Ranch Real Estate
Greenwood Village Real Estate
Denver Real Estate
Lone Tree Real Estate

The Real Estate Transaction Series: HOA Matters

HOA’s, or Homeowners Associations, can be very good to have in place in a community. The HOA’s can serve to enforce covenants, guidelines and be a positive addition to a community. Not everyone likes them and there are plenty of communities that don’t have them. So the choice is yours. But, if you choose to own in an HOA governed neighborhood, then just remember that you agree to abide by the terms of the HOA and agree to adhere to the authority of the HOA.

Some HOA’s are very organized and active in the areas they serve. Some are not. And some, you may not even know exist! This is one area that can affect a potential buyer without them even knowing it.  These situations can be very problematic for a homeowner that isn’t aware of an HOA, or the rules of the HOA. Sometimes there can be an existing HOA that formed long ago and has since faded away and became less relevant to the neighborhood.  Basically, nobody continued to be active and enforce the HOA rules, etc…now forgotten by most, maybe even the sellers of the home you are looking to buy or bought.  But this doesn’t mean the HOA was dissolved and may still exist! That means that you likely need to abide by those requirements.  What if they say that you can’t grow a garden for example, and that’s exactly what you love to do. So you grow your garden then suddenly someone discovers the HOA rules and gardens are not allowed.  Then the rules are enforced on you and your garden! Will it matter that you were unaware of an HOA and therefore the rules? I can’t say.  But you can see the problems it can cause.  Of course, an unknown HOA almost never exists but it can happen and sometimes it does.

So it is very important to find out if there is an HOA, get the details required for public disclosure per the Colorado Real Estate contract, such as the financials, insurance, meeting minutes and actually look though them. Take the time to contact the HOA and find out if there is any planned or likely increase in dues.  Right now, there are plenty of distressed homes in many of these HOA guided communities.  So, many of them may be increasing the fees, charging special assessments, etc…to save from going broke from lack of payment from these distressed homes.  It’s just real important to check it out within your rights via the real estate contract.

Remember, if you know there is an HOA, get the required information and understand it. If you don’t know if there is an HOA, do your best research to find out one way or another. HOA’s are a positive thing and benefit the home owners. Just know that when they exist, you are not only buying a home, you’re also buying into an HOA controlled community and the rules that go along with them.

Note: This article is intended to provide general information and is not intended to provide specific advice.

Questions?
If you have specific questions about your specific real estate transaction, contact your real estate agent.  If you don’t have one and have further questions, I would love to help with all your Denver real estate needs.

HOA Matters is the 2nd Post in my Real Estate Transaction Series.  You can also read the first post here on my Denver Real Estate Blog:  The Real Estate Transaction Series: Deadlines and Dates

Click Here to Search All Denver and Highlands Ranch Real Estate

Steve Scheer, Denver REALTOR®

For More Info on Denver & The Suburbs:

Highlands Ranch Real Estate
Greenwood Village Real Estate
Denver Real Estate
Lone Tree Real Estate

If you would like more information on the Denver area or more information on Highlands Ranch real estate, contact Steve at 720-849-6101.

Often times when working with different types of Denver real estate clients, there are many questions regarding various parts of the real estate contract.  Every state is different, and this series of posts will cover different parts of the real estate contract in Colorado.  Stay tuned for future posts on other areas of the real estate transaction.

Real Estate Transaction Series: Part 1 Deadlines and Dates

In Colorado, the real estate contract has a table of dates and deadlines for the many parts of the transaction. The purpose is to keep the transaction on task and create deadlines pertaining to the rights and responsibilities of the buyer and seller.  Basically, things in a real estate transaction need to get done and these dates define how long everybody has to do it.

The dates and deadlines are created at the time of contract and stretch between the contract date and the closing date. The dates are agreed to by the home buyer and seller by contract and have rights and responsibilities for either party to make sure they are met. For example, there is a deadline and date by which the buyer may inspect the property and either terminate or ask the seller to repair or replace those items of concern to the buyer. If the buyer doesn’t terminate or ask for repairs on or before the deadline, then the buyer waives the right to ask and expect the seller to comply.  If the buyer elects to terminate the contract based on these inspection rights, and does so on or before the deadline, then the buyer had the right to do so per contract.  In either case, the contract defines the rights and responsibilities of the parties and the dates and deadlines set the time limits.  As you can see, the deadlines and dates of the contract have a very real purpose and very real consequences to the parties.

The key value of having the dates and deadlines is to keep the transaction moving on course towards closing.

Of course, like most things these dates in a Colorado real estate contract can be negotiable and may be determined and amended as long as all parties to the contract agree to it. Just remember to understand your rights, responsibilities and the potential consequences of the deadlines and hopefully you can stay on course towards a successful closing!

Note: This article is intended to provide general information and is not intended to provide specific advice.

Questions?
If you have specific questions about your specific real estate transaction, contact your Realtor.  If you don’t have one and have further questions, I would love to help with all your Denver real estate needs.

photo courtesy of John-Morgan on flickr with Creative Commons license

Read also:

The Real Estate Transaction Series – HOA Matters

Click Here to Search All Denver and Highlands Ranch Real Estate

Steve Scheer, Denver REALTOR®

For More Info on Denver & The Suburbs:

Highlands Ranch Real Estate
Greenwood Village Real Estate
Denver Real Estate
Lone Tree Real Estate

If you would like more information on the Denver area or more information on Highlands Ranch real estate, contact Steve at 720-849-6101.

I know that the last couple of years have been a dream come true to some Denver area real estate buyers and yet for some sellers, a nightmare. That is the times we are in right now.

However, the times they may be a changing.

In some neighborhoods, the real estate market is improving and in many others values have at least flattened out some. We’re still volatile and there’s no crystal ball for the future, but conditions for buying are still pretty good right now.

For some, taking advantage of this market and buying a home now is a wise decision. Buyer’s negotiating power is still strong in most cases and I am starting to see an influx of new investors considering Denver real estate as a sound investment.

If you are qualified to buy a home for yourself or as an investment and haven’t, then here are just a few things to consider that should get you off the fence.

5 Reasons To Buy A Denver Home Now

1. Unbelievably low interest rates – Mortgage rates are at historic lows which makes owning a home way more affordable and as importantly, qualifying for a loan much more attainable.  It is important to speak to a reputable mortgage broker to find out what you can qualify for and then make a decision of what is truly within your means.

2. Incredible selection of Denver homes – Inventories are flattening out in the Denver real estate market yet there are still tons of distressed Denver area home opportunities as well as motivated sellers willing to negotiate.

3. Home Prices are great – Pricing in the Denver real estate market generally echoes pricing of several years ago, prior to this current slowdown.  Great news for buyers and investors looking to turn back the clock on values in Colorado.

4. Possible Tax Advantages – Interest on mortgages and the tax deductions on property that may be available to you can significantly impact your bottom line. Contact your accountant for tax advice.

5. Long term security – Hard for many to believe that real estate can be a path to security, especially if they are taking a loss right now. However, historically real estate ownership held over longer periods of time has proven to be a path to wealth and security more than most other sources. True for investors as well as individual homeowners needing a sound and solid home to fall back on.

So, if you haven’t yet taken advantage of the current Denver real estate market and instead have thought maybe I will soon when things get better, worse…or any other reasons, then it could be time to get on board for you. Interest rates will rise, FHA and other lending rules are changing now, making loans more difficult. Denver home inventories are stabilizing which will change supply and demand and possibly reduce your options. If you can think, yes I know this is a good time to buy or invest in the Denver real estate market, then this could be the time to start making that a reality.

Other Denver Real Estate related articles:

What is an Absorption Rate?

What is the Best Highlands Ranch Neighborhood?

Title Insurance in the Real Estate Contract

Click Here to Search All Denver Real Estate

Steve Scheer, REALTOR®

Denver Realty Partners –

For More Info on Denver & The Suburbs:

Highlands Ranch Real Estate
Greenwood Village Real Estate
Denver Real Estate
Lone Tree Real Estate

If you would like more information on the Denver area or more information on Denver real estate, contact Steve at 720-849-6101.