Denver Real Estate: Home Buyer Tips While Under Contract

I have encountered harrowing experiences with home buyers while in the “under-contract” phase of Denver real estate deals.  From seasoned home buying veterans to first time buyers – it easy to get caught up in the excitement of purchasing that new home and forget some key factors that might adversely affect your credit score.

This list is by no means meant to be condescending and it probably not exhaustive – just a refresher course on important reminders while you are under contract on your new home.  Your credit will be under scrutiny until you turn over that cashier’s check and sign your final documents at the closing table…

Purchase nothing – no furniture, vehicles, barbeque grills….

Stay at your current job (no sudden quitting or deciding to become self-employed or even switching to another company)

Keep your financial accounts in order (don’t make large deposits, open new accounts, transfer funds between accounts, withdraw large deposits) or anything else that might trigger alarm bells

Don’t apply for new credit

Don’t spend the money you have saved for the home purchase

Don’t co-sign on a loan for anyoneWhen in doubt –

Call your lender to confirm that your financial decisions will not negatively impact your credit and ultimately the financing of your new home.  For additional tips about closing a home in Denver, read the closing costs page on my site – Denver Relocation Broker.

Michelle A. Potter

RE/MAX Professionals

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Extension of the First Time Home Buyer Tax Credit?

The deadline for the first time home buyer tax credit is looming on the horizon.  Buyers must close on their new home by 11-30-09.  So, will the first time tax credit be extended beyond this date? 

Fraud allegations might be the final nail in the coffin for a potential extension:

Michelle A. Potter

Denver Realtor

Re/Max Professionals

303-489-4035

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Denver Real Estate: Asbestos in the Home

Providing a great environment for active lifestyles, the state of Colorado is one of the great living destinations in the country. With its proximity to the Rocky Mountains, snow filled fun, beautiful landscapes and homes, cities such as Denver have become a hot spot for potential home buyers.

Purchasing a home can be filled with excitement and anticipation for homeowners. It can also be a time where additional responsibilities are acquired. Having the assistance of a reliable and honest Denver real estate agent will make all the difference in when buying a home. One of the many things that can go unnoticed is taking precautions against obsolete and toxic building materials which may still be present in homes. Newly bought homes are often remodeled and repairs may be needed.

Citizens of Colorado are pushing for continued use of new green, Eco-friendly technologies. Green construction brings together many techniques which aim to reduce or eliminate the impacts in which physical structures have on the environment and health, especially when remodeling or re mediating older homes.

Asbestos

Used throughout the 20th century to insulate pipes, boilers and in roofing, asbestos gained recognition due to its resistance to heat and electrical conductivity. Homes built before 1980 should be aware that older homes may still harbor asbestos materials. In most situations, asbestos appears in roof shingles, dry wall, attic insulation, popcorn ceilings, joint compounds and electrical wires. The only way to verify asbestos content before a remodeling project is to have it sampled by specialists in a laboratory setting.

Asbestos fibers are thin and strong, and when inhaled frequently, an individual can develop mesothelioma, a rare but severe lung ailment caused by asbestos exposure. This asbestos-related illness is difficult to treat and diagnose because symptoms may not show up from 20 to 50 years after exposure. This makes a mesothelioma diagnosis a difficult task for physicians.

If asbestos is located, it must be left un-touched until a professional can provide a course of action. In many situations, the best action is no action. Asbestos that is disturbed or damaged due to age is known as “friable” asbestos. This is a concern because its toxic fibers can easily circulate and become inhaled. If asbestos removal is recommended, it should be performed by a licensed abatement contractor who is trained in handling asbestos materials. They must wear protective equipment such as masks and gloves to avoid any exposure.

Green Homes in Denver

Organizations such as Environment Colorado help bring together programs and projects that are helping make the state become a more sustainable and environmentally friendly city. In Denver, construction practices are upgrading methods to suit better lighting, heating, cooling systems and environmentally habitable insulation.

Green options such as cotton fiber, cellulose and lcynene should be given consideration as replacements to asbestos. Not only will Eco-friendly materials provide a healthy atmosphere, it can significantly reduce energy costs. Cotton fiber is quickly becoming a favorite for home builders and renovators. Made from recycled batted material, it is also treated to be fireproof. Research has demonstrated that the use of Eco-friendly insulation alternatives can reduce annual energy costs by 25 percent.

The implementation of Eco-construction and green energy home solutions will play an important role in the transformation to a healthier and sustainable world. Green building is the consequence of a design that will increase energy efficiency, water and have a direct impact on your health and the environment.

Article Provided by:

Joe Lederman
Mesothelioma Center
National Awareness Coordinator

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Home Buyer Tips from Barbara Corcoran

Once again, Barbara Corcoran delivers no-nonsense information for home buyers.  I respectfully disagree with her position that suggests most listing agents will reveal the home sellers reason for moving.  A good real estate agent simply does not share this information unless specifically directed by the home seller. Beyond this, all good advice:

Michelle A. Potter
Denver Realtor
RE/MAX Professionals

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Is Zillow Accurate in Pricing Denver Homes?

Zillow’s  home valuation tool,“Zestimate”, pulls data from county records – so the more detailed the county records - the better the accuracy. Zillow’s most current information on the Denver-Aurora metropolitan statistical area (MSA) indicates an accuracy rate of home valuation of within 9.8%. This number reflects the original Zillow Zestimate and compares it with the actual sold price of that home.

Zillow Chart on Denver accuracy

*This graph shows three month data, collected on 9-30-09 and updated on 5-20-09

Zestimate is a fun tool and like any automated home tool – it has its limitations. In Denver home valuations, Zillow misses the mark on some important considerations:

It does not adjust for mountain views.

It fails miserably by comparing a home in one Denver neighborhood sub-area to another that is no way comparable in terms of home style and neighborhood nuances.

It does not account for different architectural styles, different home builders or custom home builders.

Zillow Zestimates misses finished basements when the home seller fails to pull the necessary permit.

Zillow doesn’t adjust for backing to a busy street.

It doesn’t account for upgrades in the home such as granite or quartz countertops, stainless appliances, high-end cabinetry…that might not be standards for the neighborhood.

It doesn’t account for homes located gated-communities.

With all this said, I think Zestimates, are a fun tool. Plus, the folks at Zillow don’t pretend that the home estimations are perfect nor do they pretend to be appraisers. Zillow’s offerings in terms of pictures, neighborhood information and advice section are all entertaining while providing value.

Keep in mind the limitations listed and play with the Zillow tools understanding they have flaws. Never list a property or purchase a property in Denver solely based on a Zillow Zestimate. A Realtor can provide far more accurate comparables when buying or listing a Denver home.
If you are interested in listing or purchasing a home in Denver or the Denver suburbs feel free to contact me.

Michelle A. Potter
Denver Realtor
Remax Professionals

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