Homebuyers Beware!

Foreclosures in Colorado continue to be high and filings last week reached 915 for all counties in Colorado. Out of the 915 filings last week, El Paso County had 115 filings for foreclosure. Although there are many foreclosures in Colorado, we are no longer one of the top 5 foreclosure states in our country.

I actually have not known anyone personally who was at high risk of losing their home to foreclosure until recently. These homeowners purchased their home in Arapahoe County not even one year ago and are going to stop making payments on their mortgage since they are in over their heads. I reviewed some of the possible options with the homeowners and they are leaning in the direction of foreclosing on the home despite of the consequences the foreclosure will have on their already less than perfect credit. They do not have money to bring to the closing table if they are able to sell and they do not want to receive a deficiency judgment from the lender down the road (lenders have 6 years to file a judgment) as a result of a possible short sale.

After paying their mortgage, there is minimal money leftover to pay for everything else (utilities, groceries, gas, car payments, etc...). One of the homeowner's told me: "Looking back, I wish they didn't approve me for the loan." Ultimately, it is the responsibility of the buyer to ensure they can afford a home but many individuals look to a lender for guidance and this lender put them in a home they could NOT afford. I am wondering how he qualified these homeowners and if he even calculated their debt less income (back end ratio). I don't know what kind of ratios he was using when qualifying them for their 80/20 conventional loan let alone how they were approved for it! In this instance, the homeowners did not create a budget and prior to purchasing this home, looked at a mortgage calculator to find out how much they could afford and figured they could afford the mortgage. Mortgage calculators are useful tools but buyers need to take into account other expenses and debts as well!

If you are looking to purchase real estate in Colorado Springs make sure and qualify with a good and reputable lender. If the pre-qualification you receive is based on your gross income, you may want to re-think how much you can afford to buy. Gross income is before taxes and last time I checked, a large amount of your earnings go to taxes. Instead, look at your net income and then subtract all of your debts every month (car payments, credit cards, school loans, etc...) and you will have a better idea of how much you can really afford. Be wise, don't get into the situation where you pay your mortgage each month and then charge all of your other expenses on credit cards. Before you know it, you will be in over your head in thousands of dollars of credit card debt.

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For information on the buying process and available Colorado Springs Housing please go to www.patricia-beck.com.

5 things sellers can do to make a deal go sour fast!

1. Talking to or meeting with the buyers without the knowledge of your realtor- If you are speaking with the other party and no one else knows about it, promises can be made verbally that are not reflected in the written contract and this is a big no, no! The reason you hire a real estate agent is so they can communicate with the buyers' agent to ensure the transaction goes smoothly. Do not talk to the other realtor without your agent present either.


2. Not disclosing material defects of the property- If you are aware that the roof leaks or about the black mold in the bathroom upstairs, it is wise to disclose the information to your Colorado Springs Realtor and on the seller's property disclosure form you fill out. Think you're off the hook after you walk away from the closing table? Wrong! The buyer can take you to small claims court. Disclose all material defects with the home, it's the right thing to do and the buyer deserves to know!


3. Refuse to repair a big problem in the home- Sure it's your right to refuse repairing items requested by the buyer after an inspection and I am not saying you should agree to repair everything but think twice before saying "no" to a large or serious repair. If the roof has hail damage and needs replacement and you refuse to repair it for the first buyer, the next buyer who comes along will more than likely request the roof be replaced also. If the item is serious enough to come up in the future with another buyer again, you should probably fix it.


4. Not being honest with your realtor- You and your realtor work as a team during the transaction so if you withhold certain information from them that could affect the transaction, you may have a big problem. Keep it simple and be honest with your agent.


5. Not having permits for work completed in the home- You didn't get a permit from Pikes Peak Regional for the basement, bathroom, or deck you built and now you are under contract with a buyer for your home. If you try to acquire permits for work completed after you finished a project while you are under contract you may have to make corrections in order to bring the work completed in the home up to building code. Not only can that become costly, but also very time consuming. In some circumstances, the buyer may have issues with their lender or homeowner's insurance due to the absence of permits. The buyer also knows when they go to sell the home in the future, they have to obtain permits (which may involve making corrections at their expense) and that just may be enough to steer them away from the deal. It is wise to obtain permits for work completed before you list your home for sale.

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To find out more about Colorado Springs Realty and The Colorado Springs Area contact me or visit my website.

Factors to consider when selecting an agent to sell your home in Colorado Springs

There are many good real estate agents in Colorado Springs and if you are planning on selling your home, take the time to interview a handful of agents first. Here are a few questions to add to your list when interviewing a realtor in Colorado Springs.

1. How well does the agent know the area your home is located in?

Some agents specialize in specific areas of the city and may know your area better. Has the agent lived in the area long or did he/she just move here?

2. Is the agent you are interviewing a Realtor^®?

A Realtor^® subscribes to the Code of Ethics and is a member of the National Association of Realtors.

3. How is the real estate agent going to market your home?

Will they advertise on television, the radio, newspapers, internet, or Open Houses? Some real estate agents may not be willing to hold an Open House for your home, is that a problem for you? Approximately 75%-85% of buyers go online to search for a home in Colorado Springs, is your agent internet savvy?

4. How many years has the real estate agent been in the field and have they obtained any additional designations in addition to their real estate license?

It is important for realtors to continuously stay educated since real estate trends and laws are always changing. Your agent must be knowledgeable and educated in real estate and it is important they have experience.

5. What commission is the agent going to charge and what will that entail?

Make sure and negotiate a commission you are comfortable with and keep in mind that a lower commission may include limited services by some real estate agents.

6. How is the agent going to price your home?

What kind of research does the agent have to back up the price they are recommending? If your home is overpriced it will not sell, it needs to be priced accurately to the current market value.

7. Is the individual an honest and ethical agent? Can you trust him or her?

You may have heard something about the agent from a friend or you may have not heard anything about the agent and are meeting for the first time. Do you feel comfortable with the agent? Do they seem trustworthy, sneaky, transparent...? Do they tell you the honest truth about the market value of your home or just what you want to hear?

8. Does the agent listen to you?

Make sure the Realtor takes the time to listen to you and to the information you have about your home that may be important to know. If the agent does not take the time to listen to you and just talks over you about what they know it may not be a good fit.

9. Is the Realtor working as a full-time or part-time real estate agent?

This is a very important question to ask. Is your agent going to be too busy at his/her other job to answer your phone calls or concerns? How flexible are they? If he/she is working as a part-time real estate agent, is that going to be an issue for you? Will your listing get the adequate attention required to sell?

10. How do your personalities mix?

If you and your agent clash or have different expectations, that can be a recipe for disaster. Make sure you and your Realtor get along and connect because selling your home is going to be a team effort! You need to get along with everyone on your team and have the same game plan. Make sure you feel comfortable communicating with your Realtor; good communication is essential!!

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To find out more about Colorado Springs Realty and The Colorado Springs Area contact me or visit my website.

Filthy Listings

Have you ever walked into a home with your client and as you walk through, the home is just so dirty that you cringe turning on the light switches in the bathroom and touching the door knobs? Well I have. There are some filthy listings in the Colorado Springs area and I would be embarrased to have my sign in front of a home that is so messy and dirty.

If the seller is not willing to clean the property or if there is no seller and it is a bank owned property, shouldn't the listing agent hire someone to get the place clean? I'm not sure how much cleaning services are here in town but I do know the listing will probably sell more quickly if it is more presentable.

Some of the homes I have shown smell strongly of cat urine (yuck!) it is barely tolerable, have extremely dirty interior walls, food all over the kitchen (it is not fresh), really stained carpet that looks like drinks were intentionally spilled on it for vast coverage, and big clumps of cat hair or other strange things like butter knives (is that safe?) all over the floors (would it hurt to vacuum?).

I'm not saying it's the agent's sole responsibility to get the home in selling condition but doing a few things that are inexpensive would make the property show more nicely to potential buyers.

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For more information on Colorado Springs Real Estate or the Colorado Springs Area contact me or visit my website.

Overprice and you won't sell!

The housing market in Colorado Springs has been impacted as other areas in the nation but homes are still selling in our city if they are priced correctly. Many sellers do not understand how market values affect how much they can ask for their home. Sure, you can ignore what the market values are in your area and list your home for much more, but it probably will not sell and that does not do any good. If your home is has been actively for sale and you have had many showings with no offers or have had few showings, your list price is probably too high for the market in your area. It is not wise to overprice your home and then drop it a few thousand here and a few thousand there every few of months, that does not work very well in today's market. You will lose marketing time if you do not price your home correctly from the beginning.

There are many factors that go into your asking price including the home's condition, recent upgrades, and the sellers' personal motivations and how quickly they need to sell. If you have another home being built and it will be ready in a couple months, you may want to list your home's asking price in the lower range of the market value in your neighborhood in order to sell more quickly and hopefully, avoid having to pay two mortgage payments. If you are not in a huge rush you may be able to list your home in the higher range of the market value for your area.

So what is the difference between cost, price, value, and market value? The cost of the home is the amount you actually paid for the home at the time you purchased it. The price of the home is essentially what you are asking for the home (i.e. listing your home for 250K). If your home has green carpet, bright orange paint, and very expensive and gaudy hardware throughout, the home would probably not appeal to many buyers in your area. On the other hand, there may be a specific buyer who has very similar taste to yours whom your home would appeal to and this would be what your home is worth to someone. What your home is worth to a specific buyer defines your home's value. Many sellers are hearing their agent mention what the market value is for their home and sometimes the market value is shockingly less than what the seller paid for the home or maybe the sellers spent a considerable amount of money on upgrades and remodels that do not significantly change the market value of their home. Many sellers want to list their home in relation to the amount or cost they paid for the home 2 years ago when the market value may be less.

The market value of a home appeals to many buyers, which in turn, produces a sale in a reasonable amount of time. A reasonable amount of time is not 200 days, I would say closer to 90 days or less is a more reasonable amount of time in the current market here in Colorado Springs. If you are serious about selling, listen to your Realtor and work together to price your home correctly within the range of the market value for a home similar to your own in the area. Otherwise, don't waste your time; you may just want to wait a while; if you price your home any more than 3% above market value, it just will not sell. I think appraisals are so important, especially in certain markets. If you have many updates in your home, if your home is unique compared to others in the area, or if there are not many comparable properties that have sold in the past 6 months, obtain an appraisal. A Realtor's Comparative Market Analysis is not an appraisal. More and more Realtors are encouraging their sellers to obtain an appraisal with the changing market.

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For more information on Colorado Springs Real Estate or the Colorado Springs Area contact me or visit my website.

Don't forget these items for your new home!

You close on your home, clean the carpets and paint, move everything in, and then you are ready to finally begin settling in to your new home, but wait, did you remember everything? Here are a few items to look over just in case you forgot something and it is an easy thing to do, especially, if you are a first time homebuyer!

1. Call the utility company before closing and make sure the utilities are moved to your name, you won't be happy if there is no electricity!


2. You are going to create garbage, so set up a trash service to come pick it up. Don't forget to buy trash cans for different rooms in the house.

3. Set up the internet, cable, and phone service. You can reference these important phone numbers if you live in the Colorado Springs area.



4. Change your address with the post office so you keep getting your mail, unless you don't want to see those bills anymore!


5. Before purchasing new furniture, did you remember to measure the doorways, hallways, and the room the furniture will go in to make sure it will fit? After spending the time to pick out, order, and pay for the furniture and delivery only to find out it will not fit would be frustrating so avoid any possible hassle and make sure to measure!

6. If you live in a city like Colorado Springs where it snows, don't forget to buy a snow shovel and a de-icing product for your driveway. It is not helpful to remember you forgot to buy a snow shovel after a big snow storm. It's happened to me!

7. If you have large trees, you will need to buy a rake to clean all of those leaves up when they come down in the fall.

8. If don't already have some tools, you need to buy a few of the basics just in case you have a small repair that needs to be tended to in your home down the road. You can purchase many basic tools in one kit at a hardware store like Home Depot. A hammer, wrench, drill, nails, screws, level, screwdriver (Phillips and a flathead), paint brushes, scissors, and measuring tape are just a few of the things you want to make sure and have handy in your garage.


9. You never know when a toilet in your home will get clogged or flood and your garbage disposal may act up after you put something down it that you were not supposed to, so make sure you have a plunger around.

10. Whether you are mopping, have a leak, or are doing other types of work in your home, you will probably come in need of a bucket. Buy a couple buckets; you will be happy you did!

11. You need to water the flowers or wash the car but where is the garden hose, the seller didn't leave it with the house? Oops. Check the spickets around the house and check if you need to buy a garden hose.


12. Shower curtains may not be left behind for you and if you don't have one in your bathroom, you are going to have a lot of water that does not stay in the tub!


13. Black trash bags are a must have whether you are doing yard work outside or have a big project you are working on inside; they come in handy so don't forget to buy them.

14. If you have a yard, you are going to need a lawn mower. Keep your yard looking nice, otherwise, you may have some neighbors complaining to your Home Owner's Association

15. Light bulbs, batteries, and furnace filters are never around when you need them so make sure and buy some in advance and store them in a place where they can be easily found.

16. You never know when an emergency will arise, make sure and have a fire extinguisher and first aid kit in your home.






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For information on the buying process and available Colorado Springs Housing please go to www.patricia-beck.com.

Market Report for Greenbriar Park

Greenbriar Park is a desirable area to live in if you are looking for a home on the north end of town; it is close to the intersection of Dublin and Union. It is located in School District 11 with many conveniences nearby. Many of the homes in this area were built in the 1980's and have larger lots. Cottonwood Park is within walking distance of Greenbriar Park and offers a newer playground, Frisbee golf, trails, tennis courts, basketball courts, baseball fields, soccer fields, and a rec center that is fun for the whole family with a workout room, wave pool, lazy river, and waterslide. If you have children and live in the area, there is plenty to do at Cottonwood Park and it is only minutes away! The park can get pretty busy during the spring and summer months with sports, runners, and outdoor concerts. There is always something going on for everyone.









There has not been much activity between 2/1/08-3/8/08 in this area of Colorado Springs:

Homes for Sale: 7

Homes Under Contract: 0

Homes Sold: 1

Average List Price in Greenbriar Park: $219,250

Average Days on Market for homes in Greenbriar Park: 80 days

Current Months of Inventory: 5 months



For further information on avaliable Real Estate in Colorado Springs contact your Colorado Springs Realtor, Patricia Beck.

Go Green with Bamboo!

Bamboo flooring is one of the new trends in flooring and because bamboo is a more sustainable material opposed to other traditional wood flooring it is great for the environment. Bamboo can replenish quickly, trees take much longer to grow!! It looks different from hardwood floors and it is so beautiful, I love it! There are many options to choose from when picking out bamboo floors:

Horizontal or Vertical Bamboo Grain: Horizontal bamboo and vertical bamboo look very different; I prefer the horizontal bamboo. So what is the difference? Horizontal bamboo is created by uniting strips of bamboo together that are laid flat; the surface shows the bamboo’s natural growth rings. Vertical bamboo is created by uniting strips of bamboo together that are laid sideways creating a very different look of vertical rows that are close together.

Natural or Carbonized Bamboo: Natural bamboo is not stained or carbonized so it is much lighter than the other types of bamboo. Carbonized bamboo is boiled to achieve a darker color (the picture to the right is carbonized horizontal bamboo flooring).

Stained Bamboo: This type of bamboo is actually stained and there area many stains to choose from.

Hand scraped Bamboo: This type of bamboo is hand crafted and has more of a distressed appearance. If you run your hand across one of these bamboo planks, it feels kind of wavy from the ridges in the bamboo and is not flat like the traditional bamboo styles. For a textured look, this is a great choice!

Strand Bamboo: The entire bamboo stock is used for this type of flooring. The bamboo strips are heated together with extreme pressure which not only gives it a slightly different look than other types of bamboo, but also makes it much stronger than traditional bamboo.

Bamboo looks beautiful in homes but there are a few disadvantages:

1. It is said bamboo flooring is stronger than maple but I have also been told it is softer and more comparable to a birch or beech wood. If you prefer the darker color carbonized bamboo has to offer instead of the natural bamboo, note that boiling the bamboo does make it about 30% softer than the natural bamboo. The hardest bamboo flooring is the strand bamboo.

2. From my experience, it scratches easily, if you have pets that run around the house, bamboo floors may not be the best option for you. Depending on what type of bamboo you install, the scratch resistance may vary.

3. Similar to wood floors, the color of the bamboo changes when hit directly by sunlight. If this occurs, move your rugs and furniture around so the sun can hit all areas of the bamboo floor in the room. Otherwise, you will see defined lines separating the different shades on your flooring.

Price of bamboo is surprisingly affordable when compared to wood flooring and can be purchased for $2.19/SFT through Lumber Liquidators! Depending on the type of bamboo flooring you purchase, it may have a warranty as well. As far as installation goes, bamboo is installed with the same techniques and tools as with any other wood floor installation. The bamboo planks have a tongue and groove edge just as the normal hardwood planks do. Don’t forget to let the bamboo acclimate for at least 1 week prior to installation.

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To find out more about Colorado Springs Realty and The Colorado Springs Area contact me or visit my website.