Reluctant Denver Homebuyers are Missing Out on a Great Opportunity!

The Rocky Mountain News recently published an interesting article that examines an epidemic currently plaguing the Denver real estate market. In Friday’s article, “Home buyers have cold feet in hot market,” RMN Reporter John Rebchook examines a trend plaguing the Denver real estate market– although home prices are low and inventory is plentiful, many prospective homebuyers are simply sitting on the sidelines, fearful that they will make a mistake. We don’t want our prospective homebuyers to miss out on one of the most optimal buyer’s markets in years, so TeamCox Realtors has been trying to cure for this epidemic for months. If you are a bargain hunter, now is the time to purchase a home in Denver.

We understand homebuyers’ uncertainty given the state of the national real estate market, but the Denver housing market is rebounding much faster than other cities’ markets. Last month’s S&P/Case-Shiller Home Price Index indicated that Denver home prices are faring the best out of the 20 metropolitan areas surveyed. Other strong indicators are that the pace of home sales is increasing, and the inventory of homes for sale has plummeted 15% from last year. A few more reasons to buy this fall include: mortgage rates are relatively low, sellers are willing to negotiate much more than they will next fall, and there are bargains to be found throughout the Denver metro area. One other thing to consider is that even if your home doesn’t sell for top dollar, you will easily make this amount up when you negotiate a fantastic deal on your new dream home. 

In addition, if you are first time Denver homebuyer, it is imperative that you understand all of the changes that will be taking effect on October 1st - please click here to read our blog on this subject. You will need to act very quickly to beat this deadline.

Warm up those cold feet, and start house hunting! If you are sitting on the sidelines, waiting for the Denver real estate market to rebound, someone else is going to snatch up your dream home at a fantastic price. For more information on purchasing a home in the Denver real estate market, please contact TeamCox Realtors at 303-400-6060.

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The Lowest Bidder Isn’t Always the Best One!

A recent Rocky Mountain News article, “Try haggling with real estate agents to cut fees,” really caught my attention. Perhaps it is a personal preference, but the word “haggling” is rather demeaning. I prefer to use, “negotiating,” a much more sophisticated word.

Many variables collided to create today’s perfect real estate storm. In recent years, many new agents entered the real estate field as a third or fourth career, since barriers to entry are rather low and inexpensive. These newly licensed agents often find the grueling work and long hours to be quite arduous. As the Denver real estate market declined and quality buyers became scarcer, the only way for the rookie Realtors compete was to cut their fees.

The real estate industry is now facing a dilemma similar as the airline industry, which has operated in the red for many years. It is quite simple - operating at a loss diminishes customer service. It is hard to deliver quality service if you cannot pay your bills. Discount agents often lack many assets including: experience weathering previous down cycles, highly functioning websites, personal assistants, and high levels of education and prestigious designations.

Similar to airlines, which often fold when they are unable to turn a profit, real estate agents will often leave the business if they are operating in the red. Where does this leave the customer if his or her real agent is out of business six months later when a problem arises? While the problem may have developed regardless of the agent’s level of experience, a seasoned agent may have been able to spare the client.

A more accurate depiction of the real estate industry recently appeared in the August 5th edition of USA Today, which reported that Realtors’ compensation is actually dwindling. According to the National Association of Realtors, the median Realtor income in 2007 was $42,600, a 10.7 percent decline from $47,700 in 2006.

While you are interviewing potential agents in the Denver real estate market, always do your due diligence, as fees are certainly negotiable. Please keep in mind that an experienced real estate agent will save you a good sum of money. Skilled real estate agents know the best lenders, title companies, appraisers, home inspectors and contractors, who will ensure that the transaction closes with few glitches. Don’t just hire the lowest bidder to represent possibly your largest investment – experience and skills are crucial.

For advice on choosing a qualified real estate agent in the Denver metro area, please contact TeamCox Realtors at 303-400-6060.

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Mercury Companies Closes Several Well-Known Title Companies

TeamCox Realtors has learned that some well-known title companies closed on Tuesday, July 29th. The title companies, operating under the parent of Mercury Companies of Colorado, are located in Colorado, California, Arizona, Oregon, Nevada, and Texas. It has been reported that all of the companies, operating outside of Colorado, were closed at the end of the day and their employees were dismissed. Over the years TeamCox has interacted with many of these businesses, but none of our current clients are impacted. If you have a contract pending with any of these companies, it is urgent you contact your closer immediately to confirm that your money is protected. Again, none of the title companies operating in Colorado have closed.

If you are relocating into Colorado and have a closing, refinancing or bridge loan scheduled with one of the identified title companies, you may need to re-open title with a different title company that has not been affected with these closures. If you would like a title company referral, we will be happy to help. 

• American Heritage Title Agency, Inc.

• Arizona Title Agency, Inc.

• Financial Title Company

• First American Heritage Title Company

• Guardian Mortgage Documents, Inc.

• InvestorsTitle Company

• Lender’s First Choice Agency, Inc. (dba Lenders Choice Title Company in California)

• Mercury Exchange, Inc

• Mercury Settlement Services, Inc.

• Mercury Settlement Services of Utah

• Mercury Transaction Services, Inc.

• Security Title

• Guaranty Co.

• Title America, Inc.

• Title Guaranty Agency of Arizona, Inc

• Title Guaranty Agency of Colorado, Inc.

• United Title Company, Inc.

• United Title of Texas

• USA Digital Solutions, Inc

If you have any questions or concerns regarding these closures, please contact a TeamCox member at 303-400-6060. This is not a time to panic, but an opportunity to be diligent and take control of the situation.

• The required down payment for FHA loans will also increase from 3% to 3.5%.    

   

• There is a new $7500 homebuyer tax credit that is available for any qualified purchase between April 8, 2008 and June 30, 2009. The credit is repayable over 15 years, which makes it in effect, an interest-free loan.

Please click here to read more about the changes in store for homebuyers. For more information on how the new law will affect you, please contact us at 303-400-6060. TeamCox , Denver real estate specialists, would love to help you find your dream home.

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Looking to Hire a Denver Contractor? Be Very Cautious!

Spring is in the air in Denver, Colorado! Well, sort of, if you can forget the March snowstorm that hit last weekend!

The coming of spring often means that new home improvement projects are budding. If you are looking to hire a Denver contractor to help with your project, it is important to be very cautious about whom you employ. While most contractors are very ethical, there are some who do not necessarily have your best interest at heart. Here are a few tips for hiring a reliable contractor in the Denver metro area:

• Always seek recommendations from trusted sources.
• Utilize referral sites like Service Magic (based in Golden) and Handyman Connection. These sites provide a piece of mind. Service Magic prescreens its contractors and Handyman Connection will even guarantee the service for up to a year.
• Ask the contractor to provide a written detailed bid on company letterhead that includes an estimated slated start and completion date.
• Always check the contractor out with the Denver Better Business Bureau.
• Make copies of the contractor’s third-party liability and worker’s compensation insurance.
• Interview multiple contractors (at least three) and don’t hesitate to contact their references.

If you need a recommendation for a trustworthy home contractor in the Denver area, please do not hesitate to contact TeamCox Realtors. We have dealt with many reliable home contractors of many trades in the Denver real estate market and would be happy to share our insights with you.

How To Find a Qualified House Inspector in the Metro Denver Area

When buying a home in Colorado, it is in your best interest to have that home inspected by a qualified, experienced inspector.  In Colorado, home inspectors are not licensed so how do you pick a good home inspector?  It is a good idea to interview an inspector before you hire him or her.  Yes, there are female home inspectors and they usually are very good!  Ask the inspector how many inspections they perform annually. A good, full-time inspector will complete at least 200 inspections each year.

We feel that an inspector who is also in the business of repairing defects found in the home might have a conflict of interest. These inspectors are not be included on our list of preferred inspectors. In metro Denver, many inspectors belong to the American Society of Home Inspectors (ASHI), a trade organization that only admits experienced inspectors for membership. 

A good inspector will always go over the inspection scope prior to beginning at the inspection site. Buying a home in metro Denver will be a different experience than buying a home in Florida, Texas, California or many other places in the country sine the home’s components and systems will be entirely different. In many parts of the country, inspectors are not familiar with basements, sump pumps or the various building materials that are routinely used in Colorado.  The inspectors who we recommend will provide a detailed written report, a verbal explanation and assessment during the inspection and multiple pictures of the items needing repair.  A house inspection is usually one of the very best expenditures a buyer can make

 
What To Expect From Your Home Inspection in Colorado

A certified property inspection is designed to educate a buyer about the house he is interested in buying. The inspector will follow an industry-recommended routine which minimizes the risk of missing something. It does NOT guarantee that every defect will be found nor is it a warranty that every item will remain the same as the inspector found it for any specified period of time.

A certified property inspection DOES NOT make requirements. It is simply a statement of the condition of the property at the time of the inspection. A buyer and their REALTOR may find the report helpful in making the "Inspection Report" which is then delivered to the seller for possible further negotiations.

A certified property inspector is usually willing to explain to the buyer (and the seller) how to repair the defects noted on his report. The inspector DOES NOT make any recommendations to either the buyer or to the buyer’s agent whether they should purchase the property or not.

If you have any questions regarding this process, please call a TeamCox member.  We will advise you in all aspects of the home buying process in the Denver real estate market.

Paying For Only Those Services You Need Can Save Money

"How can using a consultant really save money?"  This was the question put forth today by a homeowner who will be putting his home on the market right after the New Year.  I liked this gentleman’s forthright approach and respect his earnestness.  I explained to him that the consulting model we use allows for the consumer to pay only for the services they receive.  Not all of our clients want or need everything that we are trained to do. Consider going to the doctor.  As a patient, you do not always need surgery.  Of course, then, you do not pay for a surgical procedure when all you really need is an examination and perhaps a prescription. 

There are approximately 100 Accredited Consultants in Real Estate, ACRE™, in the country and TeamCox Realtors are the only agents in metro Denver real estate market who have completed this invaluable training. 

Since becoming an Accredited Consultant in Real Estate earlier this year, we have spent a great deal of time and effort to create a fee system that is fair and equitable to both our clients and ourselves.  It is possible for us to save our clients thousands of dollars on each transaction and for our clients to still receive a full level of professional services.  This has resulted in a win-win situation that our clients really appreciate.

For more information on how using an Accredited Consultant in Real Estate will benefit you, visit  http://www.myreconsultants.com/ or please contact Bonnie Cox at 303-400-6060 or bonnie@teamcox.com for a copy of our exclusive needs analysis that will help you decide which option is right for you.