The U.S. Census released a report on October 6, 2011, Housing Characteristics: 2010, that shows the homeownership rate is the second highest on record, behind only 2000, since homeownership data collection began in 1890.
Metro areas have more homeowners while major cities have more renters. That is another major reason why this is a great time for real estate investors to add to their rental portfolio.
Thanks for reading.
Mike Malvey
mmalvey@thegroupinc.com
Posted in Uncategorized
Tagged 2010 Census, Fort Collins, homeownership rate, housing characteristics, Mike Malvey, Real Estate
A written proposal is the foundation of a real estate transaction. Oral promises are not legally enforceable when it comes to the sale of real estate. Therefore, you need to enter into a written contract, which starts with your written proposal. This proposal not only specifies price, but also all the terms and conditions of the purchase. For example, if the seller offered to help with $2,000 toward your closing costs, make sure that’s included in your written offer and in the final completed contract, or you won’t have grounds for collecting it later.
REALTORS® have standard purchase agreements and will help you put together a written, legally binding offer that reflects the price as well as terms and conditions that are right for you. Your REALTOR® will guide you through the offer, counteroffer, negotiating and closing processes. In many states certain disclosure laws must be complied with by the seller, and the REALTOR® will ensure that this takes place.
If you are not working with a real estate agent, keep in mind that you must draw up a purchase offer or contract that conforms to state and local laws and that incorporates all of the key items. State laws vary, and certain provisions may be required in your area.
After the offer is drawn up and signed, it is usually presented to the seller by your real estate agent, by the seller’s real estate agent, if that’s a different agent, or often by the two together. In a few areas, sales contracts are drawn up by the parties’ lawyers.
The purchase offer you submit, if accepted as it stands, will become a binding sales contract (known in some areas as a purchase agreement, earnest money agreement or deposit receipt). So it’s important that the purchase offer contains all the items that will serve as a “blueprint for the final sale.” The purchase offer includes items such as:
If your offer says “this offer is contingent upon (or subject to) a certain event,” you’re saying that you will only go through with the purchase if that event occurs. Here are two common contingencies contained in a purchase offer:
You’re in a strong bargaining position, that is, you look particularly welcome to a seller, if:
In these circumstances, you may be able to negotiate some discount from the listed price.
On the other hand, in a “hot” seller’s market, if the perfect house comes on the market, you may want to offer the list price (or more) to beat out other early offers.
It’s very helpful to find out why the house is being sold and whether the seller is under pressure. Keep the following considerations in mind:
This is a deposit that you give when making an offer on a house. A seller is understandably suspicious of a written offer that is not accompanied by a cash deposit to show “good faith.” A neutral third party such as a title company or an attorney usually holds the deposit, the amount of which varies from community to community. This will become part of your down payment.
You will have a binding contract if the seller, upon receiving your written offer, signs an acceptance just as it stands, unconditionally. The offer becomes a firm contract as soon as you are notified of acceptance. If the offer is rejected, that’s that – the sellers could not later change their minds and hold you to it.
If the seller likes everything except the sale price, or the proposed closing date, or the basement pool table you want left with the property, you may receive a written counteroffer including the changes the seller prefers. You are then free to accept it, reject it or even make your own counteroffer. For example, “We accept the counteroffer with the higher price, except that we still insist on having the pool table.”
Each time either party makes any change in the terms, the other side is free to accept, reject or counter again. The document becomes a binding contract only when one party finally signs an unconditional acceptance of the other side’s proposal.
Can you take back an offer? In most cases the answer is yes, right up until the moment it is accepted, or even in some cases, if you haven’t yet been notified of acceptance. If you do want to revoke your offer, be sure to do so only after consulting a lawyer who is experienced in real estate matters. You don’t want to lose your earnest money deposit or find yourself being sued for damages the seller may have suffered by relying on your actions.
When an offer comes in, you can accept it exactly as it stands, refuse it (seldom a useful response) or make a counteroffer to the buyers with the changes you want. In evaluating a purchase offer, you should estimate the amount of cash you’ll walk away with when the transaction is complete. For example, when you’re presented with two offers at the same time, you may discover you’re better off accepting the one with the lower sale price if the other asks you to pay points to the buyer’s lending institution.
Once you have a specific proposal before you, calculating net proceeds becomes simple. From the proposed purchase price you can subtract the following costs:
Your present mortgage lender may maintain an escrow account into which you deposit money to be used for property tax bills and homeowner’s insurance. In that case, remember that you will receive a refund of money left in that account, which will add to your proceeds.
When you receive a purchase offer from a would-be buyer, remember that unless you accept it exactly as it stands, unconditionally, the buyer is free to walk away. Any change you make in a counteroffer puts you at risk of losing that chance to sell.
Who pays for what items is often determined by local custom. You can, however, negotiate with the buyer any agreement you want about who pays for the following costs:
You may feel some of these costs are none of your business, but many buyers – particularly first-timer buyers – are short of cash. Helping them may be the best way to get your home sold.
Please visit www.SearchFortCollinsMLS.com to find a home in Fort Collins or Northern Colorado. You can email me with any questions at: Mike@MikeMalvey.com.
Now that I’ve completed the 10 steps to homeownership…here are the easy links to each one.
Step 9: The Closing of Escrow…It’s Your Home Now!
These are the 10 basic steps to become a homeowner. The home buying process can be quite daunting and time consuming so if you are thinking about buying a home in the Fort Collins, Loveland or Windsor area be sure to use a qualified realtor…you can reach me by e-mail: Mike@MikeMalvey.com, or www.SearchFortCollinsMLS.com. My real estate team looks forward to helping you find your dream home.
I hear many home sellers lamenting the current real estate market in Fort Collins, Loveland, Windsor and throughout Northern Colorado. The perception is that our Colorado real estate market is poor due to the high number of foreclosures which has hurt property values and home appreciation. This false perception is fueled by the media which looks at the overall real estate market in the United States but real estate is local. What I mean by this is that Las Vegas, Michigan and Florida, for example, may be effected by slumping home sales but that does not necessarily relate to Colorado or even more specifically to the Northern Colorado region.
Homes in Fort Collins, Loveland and Windsor are still being sold at record numbers for record prices…so don’t believe the false hype.
Granted, we are in a changing real estate market but that is not a negative. As with any change in a market, people need to adjust which is what I have done with my marketing plan for home sellers.
Over 80% of today’s buyers begin their home search online and they demand multiple photos and visual tours otherwise they will skip over the homes lacking these important features. So with consumers demanding as much information as quickly as possible I have adjusted my marketing strategy to accommodate today’s buyer and here is how:
If you are in the market to sell a home in the Fort Collins, Loveland, Windsor or neighboring towns/cities then I would be happy to sit down and discuss my marketing plan and my success rate in selling homes…email me: Mike@MikeMalvey.com.
Below is a chart from the National Association of Realtors (NAR) showing their projected national home price growth through 2008. As you can see, NAR is showing a market recovery in 2008 and they predict 2009 will be back to the historical normal market. That won’t be soon enough for most of us. Based on these projections, I would encourage anyone interested in real estate as an investment to contact me as this is the time to buy low, hold for a few years then sell to get something bigger.
Your feedback is wanted…please provide your thoughts.
Real Estate information located at www.MikeMalvey.com
We keep hearing on the evening news and from all the so called experts that our real estate market is very bad and is in a free fall with no end in sight. Well since I strongly disagree with those comments I thought I would share some facts which should clear up the negative perception of our real estate market.
The following table is for the Fort Collins and Wellington real estate market.
Year Homes Sold % Change Average Price % Change
2000 3,681 $196,007
2001 4,059 10% $213,042 10%
2002 4,175 3% $217,314 2%
2003 3,821 -8% $228,541 5%
2004 4,087 7% $230,589 1%
2005 4,008 -2% $245,494 6%
2006 3,701 -8% $248,767 1%
So even though the number of homes sold fluctuated, the average price increased every year. Is that such a bad real estate market? I don’t think so…as a matter of fact, I would say we are in a very stable market.
The following table is for the Loveland and Berthoud real estate market.
Year Homes Sold % Change Average Price % Change
2001 1,866 $210,327
2002 2,045 10% $218,034 4%
2003 1,976 -3% $222,088 2%
2004 2,621 9% $237,886 7%
2005 2,142 -1% $248,251 4%
2006 1,820 15% $255,033 3%
So just like the Fort Collins and Wellington market the number of homes sold fluctuated but the average price increased every year.
The bottom line is don’t believe everything you hear or read about our real estate market…we are doing pretty well!
The source for this data comes directly from IRESis which is our mulitple listing service (MLS).
Do you have any comments? Please share your thoughts.
For more real estate information visit www.MikeMalvey.com
Posted in Northern Colorado Real Estate
Tagged annual sales, Northern Colorado, price comparison, Real Estate
The Fort Collins & Northern Colorado Real Estate Blog 