Inspect Everything After your offer is accepted, set up a home inspection. The Colorado Contract to Buy and Sell Real Estate gives you - the buyer - a reasonable period of time in which to conduct inspections to determine if there are any undisclosed problems. It's not uncommon to find problems - roof deficiencies, leaky plumbing, heating or electrical concerns. Hire a reputable inspector and you will find out if there are any issues with the property that you haven't already built into the purchase price. If your inspection turns up any significant repair or safety issues, you have the right to negotiate the repairs as part of the purchase.  Here are a few of the things your inspector should look at... Foundation Drainage  Electrical system Plumbing system Heating and air conditioning systems Appliances Doors and windows Fireplaces Attic insulation Building code violations Water damage Insect damage The above items should be part of an inspection conducted by a reputable home inspector, but there are additional inspections you should seriously consider. These inspections will be an additional cost, but the money will be well spent if it saves you the nightmare of purchasing a home with hidden problems. Radon testing. Because high levels of radon are health hazard, we recommend that you have a radon test performed. High concentrations of radon are very common in Colorado homes. If radon in the home tests above the EPA guideline, negotiate with the seller to have it reduced to a safe level by an EPA approved contractor. Sewer line inspection. If the home was built before the 1980s, the sewer line is probably constructed with sections of clay pipe. Over time, tree roots wrap around the clay pipes - trying to get to the moisture within - and sometimes will block or break the sewer line. Replacing or repairing all or part of a sewer line is very expensive. If you are buying an older home, we recommend that you have the sewer line inspected. Sprinkler system. A standard home inspection won't include the sprinkler system. So you'll need to make additional arrangements to determine whether the watering system is working properly. If you don't already have a reputable home inspector, we can give you the names of several reputable inspectors. And, although many large real estate companies advise their agents not to attend inspections, it is our company policy to attend the inspections with our buyers. We help you review the inspection results, and we help you negotiate a satisfactory resolution of unsatisfactory items. Posted 7/27/10 7 Tips for First-Time Home Buyers A year after the financial collapse of 2008, the housing market is very different than it was before the foreclosure crisis. Here are seven bits of wisdom from economists and financial planners for anyone contemplating a home purchase today. Old-fashioned basics are more important than ever. The safest way to purchase a home is to put down 20 percent on a fixed-rate, 30-year (or less) mortgage. Don't become overconfident about income growth. Even though buyers in their 20s and 30s will likely see their incomes grow more quickly than during previous generations, it is important to act sensibly when borrowing. Anyone contemplating adding children to their family should calculate whether they could live on one income.  Because having both halves of a couple work may turn out to be impractical. Include a maintenance budget. Even new homes need upkeep and repairs. Buyers who can't afford their dream home now should opt for a starter home. They can save money each month and get what they really want when their financial situation improves. Consider a property that can be expanded and improved later when money becomes available. No two buyers are the same, but no matter what the size of the mortgage, they all need to feel confident with their loan before they enter into it. Posted 6/7/10 Buyer's Remorse Have you ever bought something, then had second thoughts about the wisdom of that purchase? This is a common experience, known as "buyer's remorse." Even though it isn't unusual to feel this way, it can cause a lot of distress. Common symptoms of buyer's remorse... "I paid too much!" After all the negotiating is done, you begin to wonder if you could have gotten the property for less.  This is often aggravated by a well-meaning friend or relative who thinks you paid too much when compared to what they paid for their home.  Remember, every piece of real estate is unique - comparing homes can be like comparing apples and oranges. "I acted too quickly!"  Sometimes you can get so engaged emotionally in the purchase process that you need to come down from the euphoria of getting your dream home. Two or three days after the offer is accepted, you begin to question various aspects of the transaction, including timing. It isn't unusual to feel you moved too fast, but you need to trust your instincts. You bought when you did because you felt it was the right thing to do. "I didn't see enough homes!"  After the offer is accepted, you may begin to think about the shortcomings of the property.  Perhaps the master bedroom is not quite as large as originally desired.  Or perhaps some redecorating will be necessary.  If you find yourself having these feelings, it is essential to recognize that there is no such thing as a perfect house. You chose this property because of its strengths. You will have to accommodate yourself to its shortcomings - every home has them. ADVICE:  Buyer's remorse is normal and usually occurs in some form.  The best way to feel good about a real estate purchase is to use the services of a professional who can provide you with all the information and assistance you need to make an informed decision. Posted 3/26/10 It's Getting Easier to Get a Jumbo Loan Rates on jumbo loans - which in the Denver market are loans more than $417,000 - rose during the financial crisis and lending standards tightened to the point where borrowers couldn't refinance or get a new loan.    But the jumbo loan market is starting to thaw, making it easier for move-up buyers to borrow.  In the last couple of weeks, the average interest rate on a 30-year fixed-rate jumbo fell to 5.79 percent, a five-year low, according to rate tracker Informa Research Services.  Rates are even lower on hybrid adjustable mortgages. Since Fannie Mae, Freddie Mac, and the Federal Housing Administration do not insure jumbo loans, the availability of these loans suggests that banks are feeling more confident. Source: Los Angeles Times, E. Scott Reckard Posted 3/4/10 Take Photos During the Inspection Bring your camera to the inspection and take photos of the property. Make sure to use a date stamp on the pictures. Then, when you do the final walk-through, if there are any damage issues or missing appliances, you can prove it. Posted 3/4/10 Location, Location, Location You've heard it before... "The three most important things in real estate are location, location, location." Virtually no other single factor has a bigger impact on the desirability and resale value of your home. No home is an island, and the value of yours is affected by the homes that surround it. Your first consideration is the neighborhood. If you're not very familiar with the area or community, ask us. We can point you in the right direction. Then visit those neighborhoods at various times of day and observe the homes carefully. Look also for things like traffic congestion, intrusive sounds or annoying smells. You may find the perfect home, but if the neighborhood has problems, your investment won't be worth much when it's time to sell. Real estate agents and financial advisers usually recommend that you look for the least expensive home in the most desirable neighborhood. This is a always a wise investment move, because the smallest home in the neighborhood tends to be "pulled up" in value by the more expensive homes surrounding it. Conversely, extremely large homes surrounded by smaller ones tend to appreciate less than will a large home surrounded by other large homes. However, researchers have found that you may be happier if you take a different approach.  Humans are biologically programmed to care about how they rank against their peers.  You may say that you don't care about "keeping up with the Jones," but you may be afflicted by a comparison complex without realizing it.  Studies show that on average, the more you are surrounded by people who earn more than you, the less satisfied you will feel with your life.   These studies show that most people will ultimately be happier if they pick the most expensive house in a lower-cost neighborhood, rather than the least expensive house in a higher-cost area. As time goes by, you're less likely to feel that that your home is getting smaller and that you're constantly being upstaged by the neighbors.  This may not be the wisest financial investment, but it may be a better choice for your long-term personal happiness and satisfaction. In these unsettling time, it's something to think about. Posted 3/4/10 Buy a Home with Resale Potential As strange as it may seem, thinking about a home's potential future resale value before you make an offer makes a lot of sense. It's smart to consider it, because someday you'll be trying to sell that home. While your first consideration should be to find a home that you love and that suits your needs, you should always keep in mind what others will find attractive in a home as well.   Location is a very important to resale value. Consider the proximity of the home to schools, jobs, shopping and future development. Consider area crime rates and school district ratings. Consider traffic noise and proximity to power lines towers. Is the neighborhood's water supply secure? Remember, the three most important things about real estate are location, location, location. Consider functional obsolescence. Features that don't meet current standards, that date a home and will make it unattractive to future buyers include having only one bath, only one covered parking space, no central air conditioning, single-pane windows, kitchen and bathroom fixtures in outdated colors. These can all severely affect resale value and cost significantly to update, so take them into consideration before making any offers. Buyers tend to like large closets and lots of them. Having at least one walk-in closet will help increase resale potential.  Buyer's also like natural lighting, open floor plans, large master bedrooms and master baths, fireplaces, brick or stone facings on the exterior, and mature well-tended landscaping. Ranch style homes will continue to grow in popularity as the baby boomer generation gets older.  Two-story homes that have their master bedroom on the main level will also be very popular. Laundry facilities on the main floor will be a must for those buyers. After you buy your home, you'll need to maintain it. New paint and  carpeting will help you maintain the resale value of your home. Updating kitchens and bathrooms with new cabinets, tile and lighting fixtures also will add a new look to your home. Ultimately, the best resource for determining a home's potential resale value - whether it's your current home or one you're considering buying - is your Realtor®, so be sure to seek their advice. Posted 2/8/10