Tips for First Time Home Buyers

 

Thinking about buying a home?

1. Start saving early

Here are the main costs to consider when saving for a home:

• Down payment: Your down payment will depend on the type of mortgage you choose and the lender. Some conventional loans aimed at first-time home buyers with excellent credit allow as little as 3% down. But even a small down payment can be challenging to save. For example, a 3% down payment on a $300,000 home is $9,000. Set up automatic transfers from checking to savings to get started.  There are also loans with 0% down.  This is different than Earnest Money that shows the seller that you are earnestly proceeding with purchase.  

• Closing costs: These are the fees and expenses you pay to finalize your mortgage, and they typically range from 2% to 5% of the loan amount. You can ask the seller to pay a portion of your closing costs, and you can save on some expenses, such as home inspections, by shopping around. 

2. Decide how much home you can afford

Figure out how much you can safely spend on a house before starting to shop.  Check out NerdWallet’s home affordability calculator.

3. Check and strengthen your credit

Your credit score will determine whether you qualify for a mortgage and affect the interest rate lenders will offer. Take these steps to strengthen your credit score to buy a house:

 

• Get free copies of your credit reports from each of the three credit bureaus — Experian, Equifax and TransUnion — and dispute any errors that could hurt your score.

 

• Pay all your bills on time, and keep credit card balances as low as possible.

 

• Keep current credit cards open. Closing a card will increase the portion of available credit you use, which can lower your score.

 

• Track your credit score. NerdWallet offers a free credit score that updates weekly.

4.  Research First Time Buyer Assistance Programs.

• Check out HomesFund.

5.  Shop around for lenders and compare fees.

• Not all lenders are the same.  Some lenders are offering free appraisal if home doesn’t appraise.  Appraisal fees are paid out of pocket very soon after getting a home under contract and are about $700.  You want to know exactly what the lender will charge for a loan. Roughly it’s about $5000 and that charge will be built into the loan as well as your property insurance and taxes.

6.  Get prequalifed before looking for a home!

• Many buyers start looking and they find a home they would like to purchase however it’s already under contract before they can get a prequalification letter.

Call Carrie Summers with Colorado Ranch & Home Realty  970-759-2540!

Should I Renovate Before I Sell?

Thinking about selling and unsure if you should renovate?  Will it make your home more appealing to buyers?  Will you recoup the cost?  Renovations might not be for important in the current market.  

Homes are currently flying off the market if priced right.  Multiple offers and above asking price is the norm.  Due to the high demand, spending time and money on renovations might not be smart.  

Cleaning up the property is still key, and decluttering.  However some repairs might not be necessary.   

In today's market, many buyers are willing to take on home improvement projects, thus they can transform the home to their needs and tastes.  

Contact me for how to get top dollar for your home, without doing major repairs.

 

Happy New Year! 2021!!

 

What is a Final Walkthrough?

 

A final walkthrough is an opportunity for a home buyer to inspect a home.   The final walkthrough before closing ensures the buyer’s new home is being delivered as spelled out in the purchase contract.

During your final walkthrough you will check to see that the home is in the same condition as you last saw it, the seller has performed any negotiated repairs, everything is in working order and there is no new damage to the home.

WHEN DOES THE FINAL WALKTHROUGH HAPPEN?

A final walkthrough should be done just prior to closing.  Anywhere from just before closing to 48 hours before closing.  

The time to do your final walkthrough is after the sellers have completely vacated the property. 

Ideally, if the home seller vacates a day or two early that is best for the homebuyer.  But in reality, sometimes the seller’s move goes right up to the closing. 

You want the home vacated for the walkthrough so you ensure items are not left behind for you to trash and you can easily inspect the home.

Start talking about the final walkthrough 7 days prior to your closing. 

This allows time to set expectations for both the buyer and the seller.  If they vacate a day before closing this allows time to fix or negotiate any walkthrough issues.

WHO ATTENDS THE FINAL WALKTHROUGH?

You and your real estate agent should both attend the final walkthrough. Often the seller’s agent will be present as well. But, really anyone can be present.

On occasion, the home seller will be present.  Though as a buyer’s agent I prefer they don’t attend.  The final walkthrough just prior to closing is for your benefit and I don’t want my homebuyer’s distracted with idle chit chat.

Sometimes, if there are items like a hot tub, generator, etc… is present the seller can give a quick tutorial of how to run the equipment if they are present.  That can be done at the final walkthrough or at a previous get together.

WHAT TO EXPECT DURING THE LAST RUN THROUGH OF THE HOME

As you are walking through the home you should expect the following as spelled out in your purchase and sale agreement:

• The home is delivered in the same condition as you saw it in during your last visit.  Check for damage from the seller moving and it appears to be in the same condition as you last saw it.
• The home is delivered free and clear of all personal belongings and debris. The seller should not be leaving anything that is a burden for you to remove.  This includes construction materials, old paint and chemicals, unwanted items the seller thought was to burdensome for them to remove.
• The home is clean.  In your contract, your real estate agent should specify windows, rugs, cabinets, walls, etc. 
• All appliances and fixtures that are supposed to stay with the home are in place.  Fall back to your purchase contract about what is staying and what is going.
• Any negotiated items are in place.  Sometimes items like play equipment, garage tools and even furniture are negotiated as part of the sale.
• There has been no new damage to the home.   Occasionally storm damage, a pipe bursts, or other damage occurs to the home.  If this has happened you should have been notified and the problem fixed under the seller’s homeowners’ insurance.

WHAT TO BRING TO YOUR FINAL WALKTHROUGH

Be prepared with the following before walking through your new home before closing.

• Your real estate agent!  Make sure your real estate agent is in attendance.  To be honest a good buyer’s agent will bring everything that needs to be brought with you.
• Your purchase contract.  It spells out the details of how your new home is to be delivered.
• A notepad or some means of taking notes.
• A camera to document any issues.

I've got a great checklist to make sure we don't miss anything.  I'm here to help! Carrie Summers 970-759-2540  MancosHomes.com

  

How To Make Your Home Smell Great

When it comes to selling your home, it’s important to make a good first impression with potential buyers. An important thing to work on is the way your house smells. Even if you have decorated and staged your home perfectly, if potential buyers walk in and detect an unpleasant odor, they could leave fast! On the other hand, good scents can entice them to linger.

 Everyone has different thoughts on what smells good, so it’s important to keep scents subtle and not overpowering. Here are some tips for making your home smell amazing before home buyers arrive.

Clean
 The first step to a good-smelling home is to get rid of any unpleasant odors. Scrub all surfaces, wash the rugs, clean the carpets, and take out the trash. Without doing this, you’ll only be masking bad smells.

Bake
Throw on an apron and bake a batch of chocolate chip cookies, or banana bread. The smell of freshly baked cookies can evoke a warm and homey feeling. Not only will this make your home smell enticing, but it can also double as a snack for potential buyers.

Simmer Scents
If you don’t have time to bake, you can create another appealing sweet scent by simmering vanilla extract diluted in water on the stove. You can also mix 5 cinnamon sticks, 1 teaspoon vanilla, 2 tablespoons cloves, 3 bay leaves, and an orange rind to a pot of simmering water for a pleasant fall-like smell.

Just Add Soap 
Take your unused bars of fancy soap you’ve been gifted over the years, and place them in a pretty bowl on the bathroom counter. Dove brand soap also works great for this. This can fill a room with a clean scent for weeks.

Essential Oils 
Essential oil diffusers can be very useful as well. Fresh, neutral scents such as lavender and lemon are best. If you don’t want to invest in a diffuser you can dab a drop of oil on cold light bulbs before turning them on. As the bulb warms up it will give off a subtle fragrance. Avoid using plug-in air fresheners or candles as they can be too strong.

Clean Air 
If you have an air purifier, use it! They can be extremely effective in removing any lingering odors. Also, open the blinds, and crack your windows to allow fresh air inside.

Fore more tips on how to make that first great impression, give me a call- Carrie Summers 970-759-2540.

What to Repair Before Your List

When you’re getting ready to list your home, it’s of the upmost importance to ensure you are showing it in the best light. Taking time to highlight its strengths and fix up some of its possible weaknesses can make a big difference in how fast it sells. Here are our top five recommended repairs to make before selling your home.

Repaint walls.

Giving your home a fresh coat of paint is one of the most cost-effective ways to spruce it up, and generally, it can be a do-it-yourself project. Make sure cover any walls with scratches and chips and consider updating any accent walls with a more neutral coat.

Repair floors.

Hardwood floors are a very desirable feature in a home, so you want to ensure they look their best by fixing scratches or dull areas. If your carpet is worn or stained, consider replacing them. And don’t forget the tile in your kitchen or bathrooms. Re-grouting can go a long way in making dingy tile work look brand new!

Refresh the landscaping.

Show buyers your home is the full package by dressing up the outside as well as the in. Clean walkways and driveways, plant seasonal flowers and plants, trim hedges and trees, install outdoor décor pieces and fill in mulch and gravel.

Fix your fixtures.

Leaky faucet? Rusted drains? Loose drawer handle? Making these small fixes can make a big difference to potential buyers with detailed-orientated minds. Improve your kitchen. An outdated kitchen can be a real eyesore in a home. Updating cabinetry, repairing or replacing countertops, and installing new faucets and sinks may be worth the investment

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Hidden Costs when Buying a Home

Purchasing a home is arguably one of the biggest financial decisions you will make in your lifetime. As you start your hunt, don't forget there will be other costs associated with your purchase then the price of the home. Here are 5 fees to keep in mind as you begin to budget. 

1. Home inspection. This is a crucial step in the home buying process. The findings that come from the inspection can help you negotiate price and repairs. Generally, you can expect to pay between $300 to $500 depending on the home and the location.
2. Title services. Title services encompass the transfer of the title from the seller and a thorough search of the property’s records to ensure to no one will pop up with a claim to the property. Additionally, you may need to buy title insurance which will protect the lender or your investment in the home.
3. Appraisal fee. Before getting a loan, you will likely be required to get an appraisal of the home to determine its estimated value. This will be conducted by a third-party company and the cost can land anywhere between $300 and $1,000, depending on the size of the home.
4. HOA fees. Many communities have a homeowners’ association that enforces monthly fees. This money is used for general maintenance and updates to areas like pools, parks, and more. Typical HOA fees are around $200 per month.
5. Taxes. The taxes each buyer pays at the closing table differ, but it is not uncommon for it to be up to two months’ worth of county and city property taxes. Additionally, there may be taxes for the transfer of the home title.
6. I'm here to help make the process of buying a home go smoothly! Carrie Summers 970-759-2540

The Difference between Home Warranty and Home Insurance

When purchasing a new home, it’s important to do in-depth research on all facets of the homebuying process. One thing you’ll need to understand is how to best protect yourself and your investment if anything were to go wrong. Check out the information on home insurance versus home warranty below to educate yourself on your options.

Home Insurance

Homeowners insurance pays for any accidental damages and loss that are caused by fire, lightning strikes, windstorms, and hail, however, damage from earthquakes and floods is typically not covered. It also covers the replacement of personal property in case of theft or damage and liability if a person were to get injured in your home or on your property. According to American Home Shield, the average annual cost of a homeowner's insurance policy ranges between $300 and $1,000, and the bank usually asks you to obtain a policy before the mortgage is issued. Make sure to keep in mind that each type of coverage in the policy is subject to a limit and, in most cases, you will have to pay a deductible.

Home Warranty

A home warranty is designed to cover the cost of repairs and replacements of larger appliances and crucial systems in your home that may fail or break due to age and wear and tear. This includes but isn’t limited to HVAC, electrical, or plumbing components, kitchen appliances, and your washer and dryer. With a home warranty, you are required to pay premiums year-round, even if you do not use it, and it won’t cover damages if appliances were not maintained properly or if the damage is from a fire or other disaster.

Turn your tax refund into a new home!

Excited about getting a tax refund and thinking about the 60" TV you can buy or thinking of buying that new couch?  Well how about using it to buy a home!

Renters are typically paying more per month than home owners!  Many people think they need a down payment equal to 20% of the purchase price to buy a house.  Well, that is definitely NOT the case! There are FHA programs than require 3.5% and also first time home buyers programs with just 1% of the purchase price!

Let's say you were looking to purchase a home for $250,000.  This means your down payment for a conventional mortgage of 20% would be $50k.  Many lenders have loans for less than 20%.  FHA program loans requiring 3.5% down payment would be $8750 or home assistance programs would be $2500!  There are also closing costs to be paid, but you may be able to negotiate for the sellers to pay a part or all of the closing costs.  

If you're tired of renting, use your tax refund to buy a place of your own. The 60" TV can wait until next year when you have your own place to put it in!  

I'm here to help!  Carrie Summers MancosHomes.com  970-759-2540

Southwest Colorado Home For Sale!

Selling? Things to do and NOT do.

Here's some tips of things to do and NOT do when selling your home.

1.  Don't try to sell it by yourself.  For sale by owner homes sell typically for 20% less than with a Realtor.  Plus do you know what to disclose? You could be opening up a huge can of worms by trying to do it yourself. 

2.  Have the Realtor do a market analysis.  Look at similar homes that are on the market, and that have sold to set the price.

3.  Once listed, make sure you have the home looking it's best.  Clean up the front yard, maybe a fresh coat of paint on the deck, and declutter!  Do not plug in air freshners to cover up a smell.  Remove the cat litter boxes, make sure all animals are outside of home and won't bug or bite a potential buyer. 

4.  Allow the Realtor to put up a sign.  I understand you don't want "looky lous" however you want it to sell so we need to get the word out.  Share your listing with all your friends, co workers and share on social media. 

5.  When you do have a showing, do not be around.  Buyers want to feel comfortable looking around and do not want a tour or story from you. Put a snack on the counter for Buyers with a note, saying "Enjoy the view"!  You want the Buyers to linger and not feel rushed.  Put together a list of things you love about the home and leave on the counter along with a plat map of the home. 

In today's market it is a Seller's Market since there are few homes for sale.  Be sure to put your best foot forward to get top dollar. 

For more tips, please give me a call.  Carrie Summers 970-759-2540  MancosHomes.com

Looking for a new home? Covenants- Pros and Cons

Are you shopping for a new home?  Many people contact asking for homes or land without covenants.  Covenants are rules that restrict your use.  Sounds bad, however without them you might be buying a home and it turns into your worst nightmare. 

When land is subdivided in Montezuma County (Mancos, Cortez and Dolores), the county requires covenants for setbacks, weed control and fire mitigation.  It's very important you understand the pros and cons of covenants.

Recently I showed a home to a potential buyer and once looking at the neighbors we soon found out that their place was in disrepair and had cars coming and going throughout the day.  If there were covenants it might have prevented this kind of activity.  I have story after story, of unhappy homeowners trying to live in an area that doesn't fit. 

Sure you want to do whatever you want on the place you own, however we all have to live together in harmony unless you are miles away from others. 

Most covenants have restrictions to building size, how many animals,  type of home you can build, and road maintenance.  If you were living in an area with covenants, you  have grounds to get the neighbors to abide by the rules.  Without covenants, you can call the sheriff however getting them the neighbors to change, might just cause more friction.

It's best to do your homework, before you buy.  Call me, Carrie Summers, I'm here to help.  970-759-2540

Are you a good neighbor?

This week I was suppose to close on 10 acres, however all things can change.  The potential buyer was walking around the property, noticed the fence was down and horses were grazing.  Horses were put back on neighbors property and fence was fixed.  The neighbor told the potential buyer that "the grass would go bad if not eaten" and that she'd take the fence down again and cut the gate.  Well needless to say, the buyer backed out of the sale and didn't want to have a neighbor like that.  

Colorado law states that property owners have to fence animals out, however that doesn't give the right for a neighbor to cut down the fence.  So who's fence is it?  Well, whoever has maintained the fence!  The property owner had installed a 4 string, slick wire fence 5 years ago along with stays.  Pretty nice fence until it was cut down.  

Last month I also had a crazy experience while showing a home.  The neighbor was beating on the drums, yelling and when we walked over, the dog bit me. We learned from another neighbor that there has been many problems with them, in which cops have been called.  The buyers loved the home, but wouldn't buy it due to the wild card next door.  

So the question is, "Are you a good neighbor?"  Remember to treat people like you like to be treated and it's a happier world!  Tip of the week- If your are buying, be sure and meet the neighbors!

So you don't have a lot of savings, but you want to buy a house. What can you do?

Have you been renting for a long time, and want to own a home?  Don't have much savings?  No worries!  

Have you heard about CHFA loans?  It helps with down payment assistance with as low as $1000 down! You might even be able to avoid mortgage insurance! There's even help with closing costs!  It's dependent on how much you make and what county in Colorado you want to live in.  For example in Montezuma County which is Mancos, Cortez and Dolores, a family of 4 can't make more than $49,500 and the house can't cost more than $271k.   What's your credit score?

You need to decide if renting or buying is right for you.  How long will you stay in the home?  Are home prices in the area going up?  Are you restricted by the landlord rules?

There are several loans out there to help with down payment.   Just because you don't have a lot in savings, doesn't mean you can't be a homeowner.

Call me and lets discuss! 970-759-2540

Are you ready to sell your home?

Should I sell my house?  If you have been asking yourself this questions, I've got great news.  It's a great market for sellers.  There are a shortage of homes on the market which drives home prices up.  

Here's some things to ask yourself.

1.  Are you emotionally ready to sell your home?  Are you ready to put in the work to get your home ready for sale?  Yes, it's a big chore and I can help you declutter and make that first impression a good one.  Are you ready the reasons potential buyers don't like your home?  Are you ready to leave those memories created in the home?  

2.  Do you have equity in your home?  You need to know what your home is worth.  Look at your mortgage statement balance and call me for a Comparative Market Analysis (CMA).  With these two things I can help you determine your equity.    Do you owe more on your home than it's worth?  Probably not since the last several years home values have been rising and that means you are building equity.  

3.  So how much equity do I need?  You want to have enough equity to pay off your current mortgage with enough left over to provide a 20% down payment on your next home.  Having this 20% will help you keep your next private mortgage insurance (PMI) down.  

4.  Are you out of debt and have cash in the bank?  This is super important that you have money to pay for emergencies.  So how much?  You should have at least 3 months of expenses saved up.  Need help working on a budget or figuring this out?  Call me.

5.  Does your current home fit your lifestyle?  Is it too small for your family or too far away from the school?  Do you really want to spend all your time shuffling kids around?  Maybe your home is too big, now the kids are out of the house or there are just too many stairs.  

These are really important things to consider.  I'm here to be your trusted advisor.  Call me, Carrie Summers and lets talk.  970-759-2540

Should I sell my home in the Fall?

Should I sell my home in the Fall?  This is a question I'm asked frequently. Many people think that the best time to sell a house is in the Spring.  Here's some things to consider.

1.  Less Competition- Usually the homes that were for sale in the Spring have sold, if they were priced right.  Simple supply and demand.  If there are fewer homes on the market, you will be getting more showings, which result in more offers  and ultimately top dollar for your home.

2.  Faster Transactions- Since appraisers and banks are not swamped, this means a quicker turn around on getting loans approved.

3.  Serious Buyers-  There are always buyers.  Your Realtor should be able to price your home right by doing a complete market analysis, and by having professional photography this will make your home stand out.  Don't forget curb appeal and that first impression is very important.

I'd love to sit down with you and discuss the pros and cons.  If you are overwhelmed thinking about selling I can help.  I can orchestra cleaning and all the details to help you sell your home less stressful.

Are you living in a former meth house?

Before you buy or rent, get wise.  It's sad to say but meth houses do exist.  Recently, I had some clients who were going to buy a home, until they found out what prior renters were doing.  The risks of living in a home where there was meth is huge.  The chemical smells penetrate walls, furniture, floors, and everything.  Many think that just cleaning out a home will fix the problem.  It doesn't. Headaches,stomach aches, feeling ache all over, and not being able to sleep are just a few of the health risks.  Usually a complete overhaul of the house is needed.

So how do you find out about your potential new home?  First of all get a realtor who can become your trusted adviser.  I've lived in the area for 27 years and  I will find out the history of the home as well as the previous owners.  I'll talk with neighbors, cops and help you make a wise decision. Buying a home is a huge investment so don't risk your health! 

Looking to buy?

Have you been looking at homes online and dreaming about a new home?  If you have started searching, you might be frustrated.  Buying a home is a very important decision and you want to make sure you are doing everything right.   Here are some tips.

1.  Get prequalified for a loan-  I recommend talking to a few lenders and see what they offer.  First time home buyer, or veteran?  There are no down payment loans out there for you!  Once you are prequalified than you are ready to start the search.
2.  Hire a Realtor who will become your trusted advisor.  They should know the area,  are easy to reach, and can work around your schedule. Get references, and google them.  Do they have a website,  and Facebook page? Get a list of their homes they have sold, and speak to their buyers.
3. Your Realtor will search all listings on the internet, for sale by owners and will be able to help you narrow down your search.  They will be able to tell you if a home is over priced, the history of the home, and do comparisons.
4.  If after searching for a home you just can't find a suitable home, you might want to consider building.  Builders in Mancos are getting $125 a square foot, and a typical 5-10 acre lot will cost you around $50-90k.

Check me out on Zillow and ask about me at the coffee shop.  I'm here to help!

Thinking of Selling?

Have you been thinking of selling?  Here are 4 signs that now is the right time.

.     1. You can afford to move.  Sure, when you sell your home you will have money but do you have the money now to help you get top dollar for your home?   Tips to making your home look it’s best:
-         Paint is the #1 investment.  Buyers love the clean look.
-         Curb appeal-  Need to do some minor repairs?
-         Kitchen and Bathrooms- upgrade faucets and fixtures.
-         Declutter

2. Your current home doesn’t fit your lifestyle.  Do you need more space or is it time to downsize?  Do you like your neighborhood?  Have you been daydreaming of building or been looking at other homes?

3. How’s the market?  Do you know if there are buyers looking for your type of home?  How long will your home be on the market till it sells? Did your neighbor’s home sell quickly?

4. How much is your house worth?  Do you have enough equity in your home that once you sell, you can buy another?   

      Selling your home is a big decision.  Want to know what your home is worth? Call me for a free market analysis.  I also have a seller’s guide to help make the transition smoother.  One thing I offer my clients is that I will help you get your place ready to sell by orchestrating handymen, cleaners and even provide the trailer.  I look forward to helping you.  

Do you have a will?

A will is the last gift you will give to your family.  It's a legal binding document that gives you control of what happens and what won't happen to your estate.  You spell out exactly who will watch over your children, and your assets.  It is a gift since it will make the whole process of dying easier for your loved ones since they know your wishes.

There are software programs that can walk you thru it just as easy as Turbo Tax.  You can also go to a lawyer or just google it and you will find many options.  Make this a priority.