Whether buying or selling a house, the existence or lack of building permits for past work is easy to determine in the city of Arvada, Colorado. And it's an interesting little bit of sleuthing too, based on my recent experiences.
My eyes were opened to the importance of checking for building permits recently when my clients made an offer on a beautifully remodeled home. The place had been purchased recently for over $100,000 less, with some mention of structural issues in the listing. I checked with the listing agent, who forwarded the receipts for the work - done by a structural enginering firm. I called the engineer and found out about their warranty. He also said he'd personally explain to the buyers what they did and how they solved the structural problems.
Then, we noticed that there was a new electrical box and wiring, and there was also a new roof, windows, many other items. After we got under contract, I checked for permits.
There were no permits on record - not even for the structural work!
Not surprisingly, my clients backed out of the deal.
So then, I previewed three other houses I thought might work for them, and recommended they see all three because they each had their 
plusses and their issues, but any of them could work. This time, I decided to check those pesky building permits before I even showed the homes, and here's what I found:
- The house that needed the most work, and that the agent had written, 'Property is sold "AS IS", but also claimed, 'newer furnace and water heater' had no building permits on record.
- The other one that mentioned 'newer furnace and hot water heater', had permits on record for both of those appliances, from January of 2006. Yeah! This home also happened to be one of the best-looking homes I've seen in this price range, as far as looking like the owner tended it carefully. Very clean and well taken care of.
- MLS listing only said, 'Quiet street, very clean and neat'. But when I checked building permits, I found a new roof (1 month old), sprinkler system (2007), vinyl windows (2001), and a water heater (2004). Hmmm ... these are things an agent might want to mention in the marketing, I'd think.
When I checked building permits for my other home buyers, who are already under contract, one home showed a roof permit from last month (BTW - there was a big hail storm in Arvada a month ago, hence the abundance of new roofs.), a furnace in 2002, and the gas fireplace was permitted in 1991. The other one (a townhouse) showed a hot water heater in May of 2009 and a furnace in 2002.
Good to know - interesting that in neither case did the sellers note on their property disclosures how new these appliances were. Weird, huh?
To check building permits on homes in the City of Arvada, simply go to http://arvada.org/DM/address.php and input the address. Click on 'Get Doc' and all the building permits of record come right up.
I am a residential real estate agent, licensed in the State of Colorado, and would love to assist you if you're considering buying or selling a home in the northwestern Denver suburbs.
Find homes for sale in Arvada.
There's a new twist adding frustration to home buyer's ability to buy a foreclosure. Many listings include the statement, "Buyer must qualify with XYZ Bank." There's a couple problems with this requirement - not the least of which is, home buyers who've already jumped through all the hoops necessary to get a good lender's OK to go ahead and find their new home are well aware of all the personal info they have to hand over. The thought of doing that again, with a complete stranger that they're being forced to submit to, is anathema to many good, sincere home buyers.
And I don't blame them. It's difficult for anyone who doesn't have cash to get in on the best entry-level deals. Buyers are finding it necessary to submit offers on several homes, because they keep losing out to people who have cash or stronger loans, even if they offer above asking price. So there's a good possiblity that they'll be distributing their social security number and paycheck records to multiple unknown individuals, when there never really was a chance that they'd get the house, because an investor with cash already has submitted the winning offer.
Besides that, multiple hits on their credit can actually reduce their score!
And why is this happening? Most real estate agents seem to assume the bank who owns the foreclosed home is making the requirement. And many agents say, "I don't blame them - lender letters are so often useless."
But I've discovered that's not necessarily the case.
I noticed the name of a particular bank popping up repeatedly in our MLS, yet I didn't recognize it as one of the big local players in the mortgage market. So I called and asked what's up. I lucked out by reaching a helpful and honest lady who told me what's going on -
Lenders are actually buying the 'right' to require anyone who makes an offer on bank-owned homes get pre-qualified through them. This is NOT the bank that owns the home. This is a third party, who has paid many tens of thousands of dollars to the selliing bank, just for the opportunity to try to steal buyers from the lender that has done all the up-front work.
This lady told me that 95% of the time the buyers already have a lender, and want to stay with them, so it's a waste of her company's money and time.
So we have a situation that's benefitting the lender that foreclosed on the home, and no one else. I wonder if this pointless income stream is figured into the 'bottom line' when lenders are considering whether or not to accept a short sale offer?
I wonder how many other ways banks are making money off of foreclosures, other than the amount they actually sell the house for?
My clients tell me, "We aren't interested in making offers on homes that have this requirement." So hopefully, these third-party lenders will figure out that they're throwing their money away, and get out of this game soon.
Subscribe to my blog using the button to the right.
(To see the first three articles in this series,click here, here, and here.)
Proper preparation means getting your finances ready. This is not a step to skip, or skimp on.
I want to talk about this first from a real estate agent's perspective. Some agents will not spend any time taking you to see homes for sale until you've been qualified (or pre-qualified) for a loan. Some agents will take you to see a few houses, but then will ask you to get the loan in order before seeing any more. Yet others will run you all over, looking at houses in whatever price range you feel good about, and only prod you to get the loan ready when you've found a house you love.
I prefer the second method. I like to give you the chance to get to know me, and me you, and I'm willing to spend some time even though I know sometimes it won't work out. I do a little pre-qualifying of my own, usually by asking you what monthly payment you're happy with, what do you pay now, etc. Then, I figure the price range based on current interest rates and we can talk about what features you're likely to find in the area you desire.
But then I want you to firm things up with a lender. There's good reason for not getting too far into it without truly knowing what you'll qualify for. If we're searching in too low a price range, you might get discouraged about what's out there and give up. If we're searching in too high a price range, it'll be hard for you to downsize mentally and emotionally, especially if you've fallen in love with a house. And it's great to know you're getting the best deal with your loan so you can shop confidently.
Plus, the kind of loan you qualify for may affect whether or not a house is a candidate, even if it's in your price range. For example, if you're getting an FHA loan some homes don't meet FHA standards due to their condition, even if you are willing to do the work. So, to save your time and heartache, please get qualified with a reputable lender as soon as possible.
Please, don't get online with one of those sites that garner multiple responses. Your credit report can get hit dozens of times and that can actually lower your score. A few inquiries are OK, so you can check around to get a few opinions.
Here's some places to look for a lender -
Most loan officers have an online application form, or they'll take your initial information over the phone. That's fine to get started, but the one you will want to work with will be one who wants to sit down and talk with you face to face about your loan options. Even if it turns out you can't get a loan right now, there's a kind of lender who will still work with you - they'll help you fix your credit. (You can pay for that service, of course, but I know a lender who'll advise you how to do it without charging you.)
The loan officer should be able to give you some sense of what kind of loan you can get just from the initial information. But then, they'll need a lot of documentation to formalize your application. It's normal for them to request documentation two or three times throughout the approval process. Don't stress about it, just respond as quick as you can and remember you're all on the same side.
Read the first post in this series.
Subscribe to my blog using the button to the right.
Picture this – a husband and wife lived in their 4-level home for more than three decades, and now climbing all those stairs is getting difficult and dangerous. They’d love to get a one-level house, but the nice ones cost more than they could sell their current home for. They can’t use any of their savings to make up the difference, because they need that cash for living.
Or how about this – after raising her family in the home she shared with her husband, a lady has lost her husband, and there is a mortgage on the home. She can’t keep up with the payments, and the house needs serious maintenance, plus there’s medical expenses from her husband’s illness. Sure, she has equity and she could sell, but she doesn’t want to. She wants to stay in her home, but she’s in danger of losing it to foreclosure.
The answer in these cases, and many others, may be a reverse mortgage.
Now, I know reverse mortgages were awful in the past, and many people won’t even consider them. But today’s reverse mortgage could be a lifesaver for many seniors. They’re not the same dangerous product they used to be.
For one thing, they’re now FHA insured. A person can’t lose their home as long as they live in the house, pay the taxes, and keep the insurance policy paid up. To get a reverse mortgage, a person doesn’t have to have a job, a credit score, assets, or income, You do not give up title to your home. You do not make payments. You are never required to leave or sell the home as long as one borrower occupies the home as the primary residence and the taxes and insurance are paid. Your heirs retain 100% of the excess equity when the home is sold, after the senior leaves it. And today’s reverse mortgage never leaves you or your family in debt. The cash you take out of the home is tax free.
You can get a lump sum of tax-free cash, or get monthly payments. What’s more, it’s now possible to purchase a home with a reverse mortgage.
I know this sounds like a commercial, but I have a heart for the senior citizens of our communities, who’ve worked hard all their life, did everything right to the best they knew how, and are now struggling while they have hundreds of thousands of dollars of equity in their home that they’re afraid to touch.
If you are 62 years of age and you could benefit from this, or you know someone who could, please call Christine Jensen of Cherry Creek Mortgage (303-456-4403). She can get you started in about ten minutes.
I had a closing last week, and it turned out that that the closer and my client were long-time residents (for those of you who don’t live here, that’s kind of a rare thing!). While papers were flying back and forth, I had the pleasure of hearing a few great ‘insider’ stories.
First – did you know that the Boulder turnpike was the first toll road in the nation to pay for itself? I didn’t know it ever was a toll road, but I think it’s cool that once it paid for itself they quit collecting tolls. It was expected to take 30 years, but usage was so high, it only took 15.
There was a toll booth just north of where I live, at the intersection of 287, and there was a dog that hung around that toll booth. This dog was familiar to all the travelers who passed by there, and people affectionately called him, ‘Shep’. When Shep died, a grave was dug for him at that intersection, and there’s still a little marker there in his honor. (Everyone say it – Awwwww!!!)
There was some mention about tomato fights between Colorado and Texas. I tried to find some info on that, but failed. However, in my search I discovered an announcement for a best tasting tomato contest just a block from my house, which I unfortunately missed on August 22. It was at the King Sooper’s parking lot in Arvada, first prize was $2400. (WOW!) Did anyone catch that?
The site I found it on was www.PickYourOwn.org. The site has info about pick-your-own farms, corn mazes, pumpkin patches, and more. I found one pick-your-own berry farm in Adams County, two farms in Boulder County (1 for veggies, 1 for apples), one in Denver County (pumpkins), and ‘0’ in Jefferson County. That’s sad. Do you know of any pick-your-own farms in the Metro Area?
I love these insider stories, if you have any to share, please do!!
- From Karen “This coming Saturday is Arvada’s Harvest Festival, go watch Pomona march!!!”
- From Cory Ceilings to floors I can fix your doors, windows, trim and more. A man of many trades. Licensed and insured Independent Contractor”
- From Amanda “The Westminster center does prenatal yoga on Tuesdays and Thursdays. I haven't gone yet but it's pretty cheap compared to the ones I've looked at in Boulder. They also have scheduled fall hikes, walks, and drives. The info is here under adult activities http://www.ci.westminster.co.us/178_2200.htm You can also call 658-2400 for more info.”
- From Tammra “I walk the neighborhood with my dog and see trash set out for collection. What I notice is that there is a lot of stuff that can be recycled that isn't. I have found several recycling sites (through web searches) that I take my stuff to when I am out and about and these sites are FREE. I know curbside recycling is easy, yet can be expensive and many trash collection businesses may stop collecting it as the cost to pick up recyclables is currently outweighing the income it used to produce for these companies (unless they hike the price). Here are the web sites to check out: Earth911.com
#1 - Get your own radio station for free (from Amanda)
If you have the internet and decent speakers hooked up to your computer, and if you like music, go to www.Pandora.com now. Put in your favorite artist or band, or whatever you’re in the mood for. And Pandora will play music for you, similar to what you chose. It’s so wonderful! My daughter told me about it. She said there is a commercial every now and then, but I’ve had it on for several minutes and haven’t heard one yet, so can’t say how often they occur.
#2 – Quit carrying paper coupons around (from Cindy)
This is another tip for those who have access to the internet. Go to shortcuts.com and select the coupons you want to use, then download them to your grocery store’s ‘club card’. Then, when you use your club card to buy those items, the coupons will automatically be deducted from your total. You can also look up the store itself, then click ‘coupons’. You’ll be directed to the proper screen. No more paper coupons!
Did you catch the Denver Post Article by Karen E. Crummy, “No Road, but Millions Spent for Jeffco Parkway”, on 7/27? She said $15 million has been spent for an environmental impact study that was never completed, and $5 million on top of that for attorneys, consultants, and other studies and meetings. Golden has spent $3.4 million of that amount to fight the parkway, and Arvada has spent $900,000 in support. Well, I guess it doesn’t sound like all that much when we keep hearing about spending in the trillions! But what do you think?
I’m pretty sure my Golden readers are opposed. I wonder, would you participate in fundraising activities to keep up the fight?
And those of you who live elsewhere: How often do you think to yourself, “I sure wish that road was finished – it would save me time and gas right now”?
(The metropolitan beltway is planned from 128 in Broomfield to 64th north of Golden.)
Here’s a link to the article.
I was innocently reading an article Sunset Magazine, about collecting rain water for use in yards and gardens, when I came across a statement that it’s illegal in Colorado to collect rainwater. Someone ‘owns’ the ‘rights’ to the water in the atmosphere! So I called the Division of Water Resources to find out if that was true.
I contacted a nice man named Kevin, who told me it was true, but Colorado has just passed a law starting some pilot projects for rainwater collection. He referred me to www.water.state.co.us.
Once I got to the site, I found out it’s still illegal for most of us. People who own a well can collect rainwater from their roofs if there’s no municipal water available and they meet some other requirements too. So – how about that? Water rights are still a big deal here in the wild west, and always be.
I write articles about local neighborhoods, businesses, events, and ‘other such’ and post them online. I write them as a service for people who are new to the area, or anyone who likes to find out what’s going on in their town. I have quite a list of them, so I put them together into one post.
Check it out – and leave me a comment if you do. Just say hi!
And please keep coming back. I’ll keep posting new articles. You could even suggest topics for me.
You can also find me on Facebook and Twitter.
It’s so very important for real estate agents to be active online these days. That’s where the buyers are, so that’s where your real estate agent should be too.
I’ve been working hard at blogging and social networking for over a year now. I’m having a lot of fun with it, and I’d love if you’d visit me at the sites above.
But I still like to talk on the phone (and even in person) too! So if you need anything, call, twitter, text, email, or stop by and knock on the door if you’re in the neighborhood.
Flicks in the Square
There’s only two nights left to enjoy music and a movie in Olde Town Square. On August 21 and 28 music starts at 7 p.m., movies start at 9 p.m. See The Bucket List on 8/21 and Breakfast at Tiffany’s on 8/28.
Arvada Food Bank Grand Opening
The old library building is starting its new life as Arvada’s expanded food bank. The grand opening celebration will take place from 10:00 AM to 2:00 PM on Saturday, Aug. 22. 8555 W. 57th Avenue, Arvada
Did you know Arvada has a community garden? They had an open house last Friday, and I stopped by. What a great place, and a nice bunch of people. It’s located at 57th and Garrison. There are 120 plots. Club membership is $25 per year for individuals, $35 for families, and includes a plot, water, hose. Non-members can rent plots, but they have a waiting list.
You can tour the gardens, and be sure to stop by for your fall decorating needs, such as pumpkins, corn stalks, and gourds. They’ll have a booth at the Festival of Scarecrows on October 10 in Olde Town Square.
I read an article the other day about the lost art of presenting offers to buy a house in person. I think this is a great idea, and I’m hereby announcing to anyone who works with me from now on, if you’re a seller I’m going to ask if you’d like the buyer’s agent to present the offer to you in person, and if you’re a buyer I’m going to ask for the opportunity to present your offer in person.
(The most recent offer I received on behalf of a seller was emailed to me, not even a phone call first. Just there it was when I logged in. Sellers almost always ask me what the buyers are like. It matters to them, even though they’re selling, it’s still their home.)
I’m looking forward to my first opportunity to break the current mold of faxing or emailing an offer, and never even meeting the other parties until we sit down at the closing table.
I also read an article about what is happening when lenders are foreclosing on a home and the homeowner insists that the lender produce the original note, proving that they owe the debt to the party that is doing the foreclosure. Often, they cannot produce the note, and therefore cannot foreclose. If any of you have any experience with this scenario, please tell me about it. (It is important, because some people are losing their home to foreclosure, then the new owner gets notice that someone else – who does have the original note – is foreclosing on it.)
The following info for Jefferson County came from Metrolist today, August 18. If you would like to know what the stats are for a more specific area, let me know!
YTD YTD
8/08 8/09 Change 2008 2009 Change
New Listings 1,790 1,729 - 3.4% 12,252 10,534 - 14.0%
Sold Listings 833 740 - 11.2% 4,601 3,861 - 16.1%
Average Sold Price* 2008: $254,806 2009:$272,780 Change: + 7.1%
*Does not account for sale concessions and/or down payment assistance.
I am a residential real estate agent, specializing in the northwestern Denver suburbs of Arvada, Golden, Westminster, Broomfield, Thornton, and Wheat Ridge. See all the homes for sale here.
Joetta Fort~ Metro Brokers ~ 720-353-8031 ~ Joetta.fort@comcast.net
 |
|
|
I help people buy homes and sell homes in Westminster,Arvada, Golden,Broomfield, Thornton,Longmont,Louisville CO;only 3 buyers and 3 sellers at a time so I can serve you in a relaxed, friendly manner.
ActiveRain Corp. is not responsible for the accuracy of the site's content (which is written by members of the ActiveRain Real Estate Network) and does not endorse the views of the real estate agents, mortgage brokers, and others listed here.
Powered by the ActiveRain Real Estate Network
© 2009 ActiveRain Corp. All Rights Reserved
