Darren Bryce

Foreclosures in Colorado Springs- things to do, NO MATTER WHAT.

I have worked with buyers for many years who consider that buying a foreclosure is the always the best way to save money. Well, unfortunately many factors have to be considered. I have sold foreclosures in Colorado Springs for the last five years and find that many of them have had unforseen expenses associated with the purchase. There are some very important things you should have done:

• Do have a home inspection from a reputable company. Choose an inspector that has experience in the trades in his background. It can be very complicated to get all the utilities turned on for the inspection, but make sure and get them on. The problems I have had have all been related to a buyer not opting to have the utilities on because of the difficulty.
• Understand the restrictions on property condition that the lender imposes. Even though you might be ok with a certain property condition issue, the lender may not be ok. FHA, VA have there own requirements. Most of the time the agency who owns the property won't do any work to it for closing. Of course, an experiened agent can help with this one. Some investors (banks) require there own conditions above and beyond the requirements of the loan program.
• Prepare an accurate cost analysis to bring the property up to the condition you want. Even if it looks like a great deal, you need to accurately figure all of the costs to bring it up to satisfactory condition---than add another 25% for unseen issues.
• Look at an accurate market analysis prepared by a professional Realtor that is an expert in values in the area you are purchasing. This is critical so that once that you add all the costs up you can really determine if it is a good deal or not.
• If there is a concern on something structual-- DON'T buy it. Don't say "I'm sure it's OK"-- just walk away. Too many buyers think it's easy to fix structual issues but they always end up costing way more than you think.
• Owner Occupied- buy neighborhood. You can change the house but not the location. Real Estate ABC. I just see way too many buyer's buy the "best deal in town" just to discover they hate the area once that they move in.

This is just a partial list. Take a look at my web site for additional info at www.dbcolorado.com/foreclosures.htm.

I look forward to answering any questions about purchasing forclosure properties- just drop me a note!

Darren Bryce- Broker Associate/ Realtor

WWW.dbcolorado.com dbryce@dbcolorado.com 719-659-4000

Buying a short sale property in Colorado Springs

I just wanted to take a quick "blog" moment to help buyers understand some of the pros and cons to buying a short sale home. Please visit my web site directly at www.dbcolorado.com and click on the short sale links for specific, detailed information about short sales in Colorado Springs and around the nation.

I have been a buyer's agent in many short sale transactions that have closed, and many that haven't. First - what a short sale isn't:

• A quick process
• Easy and not complicated
• A transaction that has a very cooperative seller willing and able to complete work requests
• A transaction that closes on schedule
• A transaction that requires very little expertise

Of course you can take the opposite to be true:

• The process usually takes a considerable amount of time to complete and can require a high level of patience.
• Is complicated for the seller, and the contract has to be prepared very carefully to protect the buyer with date issues, closing timing, etc. A short sale buyer agent has many details to consider when writing the offer- make sure to use an experienced agent.
• The seller usually doesn't have the funds or motivation to complete any work requests a buyer makes after an inspection. The seller only has a small motivation to complete the process and isn't really happy his property is selling for less than he owes.
• The bank sets the closing once that they approve the sale. Might not meet the buyers wants.
• Use and experienced agent. I have helped many inexperienced listing agents get though the process so that my buyer gets the home he wants.

As a buyer, education is the key. The great deals are out there. Be patient. Use an experienced short-sale buyer agent. Contact me right away to get a list of short sale properties in Colorado Springs.

Darren W. Bryce 719-659-4000 www.dbcolorado.com dbryce@dbcolorado.com