Chad Board

I've had a tough time concentrating on work this week. I'm going backpacking with my son this weekend and I keep getting distracted by thoughts of where we are going and the trails we are going to take.

I think we are heading to the Flat Tops Wilderness in Colorado. Our plan is to take the the Lost Lake trail from Stillwater Reservoir and then circle around and catch the Chinese Wall trail back toward the lake. It's about a 30 mile loop.

I think that is what we are going to do, anyway. But when I open the map, I am struck by the endless possibilities. Colorado is gorgeous and there are so many great options, it's sometimes hard to decide what will be the best option for Mason and me.

Right now, behind the window where I am typing this I have 14ers.com open so I can reconsider climbing Mt. of the Holy Cross. I've climbed it once before, but Mason and I could try a different route. I also considered Fulford Cave. (Ok, so I just got distracted again. I'm back after 5 minutes).

If you've read my newsletter, website, or blog, you'll know that I often use a trail and guide metaphor for how a real estate agent can help sellers and buyers. There are so many choices, so many different options, so many ways to get lost in the Real Estate wilderness.

I was reminded of this recently when one of my friends asked me about a short sale versus renting their house out until the market gets better. They may need to move to another part of the country due to a job change situation. They bought their house four years ago at the height of value. Now their house value is upside down compared to what they owe. It is a familiar situation for many people in Colorado Springs, CO.

My friends have three (reasonable)options.

1. They can sell at a loss and make up the difference themselves.
2. They can rent the house out.
3. They can do a short sale.

Three different paths with three different options. Option one would be the absolute best. They could pay off their loan and walk away with perfect credit and the ability to buy a new house. The only problem is that they don't have $20,000 to pay all the costs. So that path won't work.

So which is better: renting a house out or doing a short sale?

The answer--of course--is, "It depends."

It's a complicated question that involves a lot of considerations, but here are five questions you should ask yourself.

1. What are rents in the area? If you rent your house out, will the rent cover the mortgage? If not, can you pay the difference each month? Figure out how much holding on to your house will cost you at 1 month, 3 months, 6 months, 12 months, etc. Is this an expense you can accept? Then maybe it is worth renting.

2. Do you have a financial reserve? When renting a house, you are usually responsible for big maintanence items. Do you have a reserve to take care of an emergency plumbing call or furnace that isn't working? Also, do you have someone who can manage the house for you or are you going to try to do it long-distance? What will that cost?

3. If you rent your current house to someone, what will you do for housing where you are moving? Can you qualify for a second home or are you going to need to rent too? A short sale will most likely keep you from buying a home for approximately two years. For most people, you will have to rent in either case so this might be considered a wash.

4. Are values stabilizing in your area? Are they starting to rebound? If values are going back up and you are not too far upside down, it might make sense to hold on for a year. Maybe then you can sell without taking a loss.

5. How important is your credit? Are you going to need a new car or other big ticket item in the next couple of years? A short sale will most likely drop your credit anywhere from 100-150 points depending on how far behind you are on your mortgage. Can you live without great credit for a couple of years? If you can, maybe just moving on and getting rid of the headache is the best idea.

Here's the good news. We live in the United States of America. There are lots of paths you can choose from.

We don't have debtors' prison and we have an understanding government and less understanding but still reasonable financial system that rewards people for making good faith efforts.

Your home situation might not be ideal, but you can get through it. Look at your options, get some good advice from a Realtor or Real Estate Attorney, and make the best possible choice you can. And then get on with your life.

P.S. I did go to the Flat Tops Wilderness! You can check out pictures on Facebook. Now that is some real estate!

(or Lessons Learned from The Karate Kid)

Recently, The Karate Kid came out in theaters around the United States. And it was a huge success--the number-one movie this week.

But for me, The Karate Kid will always be the original movie from 1984. I was in the 8th grade. I had radical parachute pants and the beginnings of a truly awesome mullet.

Continued on Chad's Real Estate Adventures

Color is a tricky thing. No two people perceive color in the same way. Perception of color is subjective.

My 7 year old daughter Maia is a great example. The girl is a budding fashionista. She is bold in her choices and has an incredible sense of color. She mixes and matches her clothes coming up with gorgeous combinations never before imagined.

Usually...

Then there are the other times. Fewer than the great times, there are times when Maia loses her mind (to my jaded eyes). These are the times she picks something so outlandish, so garish, that it is impossible to look at without believing that you have somehow dropped into a Van Gogh painting with surreal overtones.

In this instance, Maia's perception of color does not match the reality experienced by those around her. She loves the combination and will defend it with her formidable resources (just ask her mother about that one).

Sometimes, home sellers forget that not everyone agrees with their choice of color. They love the lime green kitchen walls with a passion that refuses to acknowledge that others may HATE green with the same intense passion. Or the color could be yellow, or blue, or red, off-purple.

Whatever color it is that you are devoted to, you've got to consider whether it is the right choice to sell your house. It may be the perfect choice for the home you are living in, but is it right for the house you are trying to sell.

I was in a house this week in Stetson Hills. The house was very nice. It was clean with a great floor plan. It showed really well. I was touring the house with another real estate agent and her response when she looked at a bedroom that was well painted in a light blue color was, "I don't like that blue. They should paint that." I didn't see a problem with the blue room, but this other agent did.

Perception is everything.

As a seller, you've got to ask yourself if the color you absolutely adore is worth increasing the time it takes to sell your house. If you have colors that cause buyers to have a bad reaction, you might be increasing the length of time it takes to sell your property.

Ultimately, the best advice from most REALTOR's® is to choose a paint color that is pleasing on the the eye and generally perceived to be neutral in color.

Neutral colors appeal to the masses and that is exactly who you are trying to reach when you sell a house. What are a neutral colors? Soft colors like creme or light browns and gold are good. Done right, light greys can be an excellent choice. White is actually a cold color, so you want to look for warmer colors that are just off white. Click here for an idea of some neutral colors.

Don't let your love of color interfere with your love of getting to closing table quickly. You can always paint your new house exactly like you want. Isn't that the joy of moving?