The Difference Between A Short Sale & A Foreclosure

As unfortunate as it can be when homeowners fall behind on mortgage payments and must face the possibility of losing their homes, short sales and foreclosures provide them options for moving on financially. The terms are often used interchangeably, but they’re actually quite different, with varying timelines and financial impact on the homeowner. Here’s a brief overview.

A short sale comes into play when a homeowner needs to sell their home but the home is worth less than the remaining balance that they owe. The lender can allow the homeowner to sell the home for less than the amount owed, freeing the homeowner from the financial predicament.

On the buyer side, short sales typically take three to four months to complete and many of the closing and repair costs are shifted from the seller to the lender.

On the other hand, a foreclosure occurs when a homeowner can no longer make payments on their home so the bank begins the process of repossessing it. A foreclosure usually moves much faster than a short sale and is more financially damaging to the homeowner.

After foreclosure, the bank can sell the home in a foreclosure auction. For buyers, foreclosures are riskier than short sales, because homes are often bought sight unseen, with no inspection or warranty.

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The Difference Between A Short Sale & A Foreclosure

Be A Better LandLord

Rental properties are one of the best ways to earn passive income and build wealth, but “passive” is a little misleading—it can still be a substantial amount of work. However, with a little planning and dedication, you can run your properties efficiently while also keeping your tenants happy.

Treat it like a business
Successful businesses have plans and procedures that keep things running smoothly, and the same should be true for renting and managing your properties. That means committing to customer service, outsourcing work appropriately, and paying close attention to income and expenses. Don’t just assume that you’ll collect a check each month and everything else will be a breeze.

Thoroughly vet your tenants
Collecting applications, interviewing tenants, and checking references means a lot of legwork up front, but it’s worth it in the long run. Choosing the right tenant could mean going years without incident—no late payments, no legal issues, and no property damage. Choosing the wrong tenant could mean monthly calls and visits to collect late rent, expensive property damage and repairs, eviction processes, court dates, and a whole lot of stress.

Make sure your lease is rock solid
Lease agreement laws vary from state to state, so don’t cut corners—find a lawyer who specializes in lease agreements. You’ll be glad you were thorough if you ever have legal issues with a tenant.

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Be A Better LandLord

5 Things That Will Kill Your Offer

You finally found THE perfect home but your offer can kill the deal.  Take note of these 5 negotiation tactics buyers should avoid in the competive  Denver's real estate market:

1. Lowball offers: Going far below market value when you make an offer damages your credibility as a buyer and can be insulting to the seller. In the Denver market, the seller will most likely have multiple offers and if you are lowballing, your offer won’t even be considered.

 2. Incremental negotiations: Don’t continue to go back to the seller with small increases in your offer ($1,000 or less). The constant back-and-forth can grow tiresome and lead the seller to consider other opportunities.

3. “Take it or leave it”: Try not to draw a line in the sand with your initial offer. The seller can get defensive and consider other offers if you immediately show that you’re unwilling to budge. Even if it’s true, don’t make a show of it.

4. Nitpicking after inspection: Obviously if inspection reveals a major issue, it should be factored into the final sale price. But insisting on a lower price for every minor repair can put negotiations in a stalemate.

 5. Asking for more, more, more: Some buyers will request that the sellers throw in add-ons like furniture or appliances that weren’t included in the listing. Once again, we are in a seller's market in Denver so try to avoid giving the seller a reason to build up resentment and think that you’re being greedy.

When buying or selling a home in the Denver metro area, contact Delilah,

 and let me put my knowledge, experience, expertise, and professionalism to work for you. 

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5 Things That Will Kill Your Offer

The Dangers of Radon in Your Colorado Home

Radon is cancer-causing radioactive gas that you can’t see, taste, or smell and 50% of homes in Colorado have high levels of radon.  It’s in the Colorado soil and can typically move up through the soil to the air in your home through cracks and other holes in the foundation. Radon can be a problem in ANY home whether it’s old, new, drafty, or well-sealed. According to the Surgeon General, radon is the second leading cause of lung cancer, next to cigarette smoke. If you are a smoker or former smoker and your home has high levels of radon, your risk of lung cancer is especially high.

If you are a current homeowner, I strongly recommend testing your home for this carcinogenic gas especially if your family spend lots of time in areas such as offices, bedrooms, and family rooms in the basements.

For more information about radon, how to test for it, and how to mitigate, click here. Get a coupon for a free radon testing kit here.

When buying or selling a home in the Denver metro area, contact Delilah,

 and let me put my knowledge, experience, expertise, and professionalism to work for you. 

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The Dangers of Radon in Your Colorado Home

3 Reasons Stopping You From Owning A Home In 2018

2018 is the year you want to become a homeowner but below are some popular reasons you are still renting: 

• Low Credit Score

You can buy a home with a credit score of 500, however, you will need 20% down payment. Speak with a mortgage consultant who can help you raise your credit score FREE of charge.  The higher your credit score, the better loan programs, and in some cases, lower down payment cost.  So contact me, if you need a mortgage consultant referral, your credit score could be on its way up in as little as a few weeks or a couple of months depending upon your situation.  

• Waiting for the Market to Settle

I can't tell you how many times that I have heard this response.  The reality is that Colorado has a thriving economy, with low unemployment rate. Companies are moving here and people are moving here for the jobs, the quality of life, and as a result, the demand for housing is greater than the supply.  In December of 2015, the median home sales for Colorado was $310k, in December 2017, it was $371k.  If you purchased a home just 3 years ago, you will have acquired approximately 60k in equity.

• Locked in the Leasing Cycle

Planning and preparation are all it takes to break the leasing cycle, but sometimes people underestimate this process and start looking too late.  If your lease ends in May, you will need to notify your landlord by March, which means that you need to start the home buying process approximately six weeks before you plan to give notice or in this scenario, late Jan, early Feb. If you find your perfect home in March, a 30-day closing takes you into April, and your first mortgage payment is due in May.  Another option is to rent month to month for 1-3 months until you find a new home. Rent will be higher but it is better than signing another 12-18 month lease if your desire is to be a homeowner.

If 2018 is your year to start earning some equity, give me a jingle.  

When buying or selling a home in the Denver metro area, contact Delilah,

 and let me put my knowledge, experience, expertise, and professionalism to work for you. 

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3 Reasons Stopping You From Owning A Home In 2018

FIVE FALL HOME MAINTENANCE TIPS

These simple maintenance tasks can save you from expensive repairs and big headaches over the next few months.

 1. Take care of hoses and faucets: Disconnect your hoses before the freezing temperatures arrive, because they can cause water to back up in your faucets—and eventually cause the plumbing to crack. Then, if possible, shut off the valves for your exterior faucets.

 2. Winterize the lawn mower: Either run the mower dry, or use a fuel stabilizer to prevent the gas in your mower from degrading and damaging the engine.

 3. Clean the gutters: Twigs and leaves will build up in your gutters throughout the fall. Make sure to clean the gutters before there’s heavy snow, because the weight of both the leaves and the melting snow could cause the gutters to break away from the house.

 4. Get the furnace ready: Your best bet is to call in a professional to give the furnace a tune up, but at the very least you should change the filters.

 5. Inspect the roof: As snow accumulates and melts from your roof, it can cause major water damage if the roof isn’t in good shape. Look for loose shingles, rust, moss—anything that could lead to decay or water damage. It’s best to be proactive with your roof—repairs can be extremely expensive—so don’t hesitate to call a roofing professional if necessary. It’s worth it in the long run!

When buying or selling a home in the Denver metro area, contact Delilah,

 and let me put my knowledge, experience, expertise, and professionalism to work for you. 

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FIVE FALL HOME MAINTENANCE TIPS

Ready to Sell? These Upgrades Will Help With Property Values

Homes that are "move-in-ready" will bring you a higher return on your equity than an 'as-is' property that needs lots of work. Yet, the biggest mistake homeowners make is spending more on the remodeling project than their home value can support. Typically, you should plan to spend between 6 - 10 percent of a home's value to get a fair return.

So, which "fixes" are worth it, and which aren't? Read on:

Worth It: Addressing major maintenance and safety issues. Would you buy a house with faulty electrical wiring, foundation issues, or with high radon levels?

Not Worth It: Major bath renovations. Instead of spending thousands of dollars turning your bathroom into a spa oasis, stick to things like repairing cracked shower doors, updating a facet, replacing a faulty toilet, and painting.

Worth It: Ripping up old carpeting. Whether you replace it with new carpets or refinish the underlying wood floor is less important than getting rid of an eyesore.

Not Worth It: Major kitchen renovations.

Worth It: Simple kitchen renovations: Replacing older counter tops with granite (it doesn't have to be the most expensive granite), choose neutral counter tops, cabinets, and floors, any type of convenience items such as a pull out pantry, extra drawers, and lighting added to under-cabinet fixtures.

Worth It: Anything that enhances "curb appeal." If buyers are turned off before exiting their cars it usually makes them predisposed to find even more things they don't like.

Not Worth It: Anything that screams clutter. The less of "you" there is, the more likely prospective buyers are to imagine themselves happily living there.

When buying or selling a home in the Denver metro area, contact Delilah,

 and let me put my knowledge, experience, expertise, and professionalism to work for you.

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Ready to Sell? These Upgrades Will Help With Property Values