Changing your loan terms.

Dan Polimino discusses the Denver Metro real estate statistics from August, cash offers, and changing your loan terms while under contract.

Full transcript.

00:02                                 Hi everyone welcome to ask the Colorado Dream House team I’m your host Dan Polimino coming to you live from Denver Colorado I hope you’re having a great week. And welcome to the show if you’re new to the show and you want to know what it’s all about. We answer. All of your real estate questions. We help you strategize the market whether you’re buying selling or investing in real estate. We’re here to help. And although we’re in Denver a lot of the information we give out works anywhere in the country so use our years and years of experience in our thousands of transactions to help you in the real estate market. As always if you’d like to leave a comment you can right here on Facebook. We welcome those questions and comments and we’ll use them on the show. Or you can e-mail us or call us e-mail us at team at Colorado Dream House dot com or call us at 7 2 0 4 4 6 6 3 2 5.

00:56                                 We look forward to talking with you or possibly helping you buy sell or invest in real estate. Well as many of you know if you’ve been watching this show for a long time we like to accomplish two things we want to give you a little market update and we want to answer your questions. This is what I’ve been telling you is the second selling season begins right after Labor Day and goes all the way through Thanksgiving. This is the second best time to sell a home in the state of Colorado. What is the first best time but the third week of March through the first or second week of June. All right. But this is the second best time I like to call this time the upgrade time.

01:37                                 I kind of view the first selling season as a time when people are thinking about moving because of a school change. And I like to think of the second selling season as a time when people are looking to up create a home. But before we get to your questions let’s talk about the August numbers which came out last week and they looked like this. It was another down month in August. If you’ve been watching the show you know that July was a down month for sales and then August was our second consecutive down month. How much so. Well the average price in a home went from 4:48 to 4:28. It’s about a 3 percent drop from July to August. The number of homes sold also decreased in August by about 6 percent.

02:26                                 Bigger number there is that the decreased by 9 percent. Same time a year ago August 26th to August 2017 about a nine percent drop. Now you’re saying Dan is there anything to be worried about concerned about. Listen we’ve been telling you that July and August traditionally are some of the slowest months of the year due to seasonality. The question we keep asking is is it going to bounce back. And are we going to have a really robust fall if we do then we can chalk these last two months up just to seasonality if we don’t then this might be the correction that we’ve been talking about. So we’ll keep a close eye on that for you. Other numbers to point out to be outside the number of homes sold. The number of homes that came on the market only about four thousand nine hundred homes came on the market which is not a lot.

03:18                                 And again inventory for the month of August only went up by about 500 homes. So that’s not unusual in the month of August. We start seeing a lot more homes come on in the month of September. Again we’ll pay close attention to that. If you want more detailed information about the numbers. By all means contact us. Contact us at the color of a dream house team and we’ll help you through that.

03:41                                 All right. The questions for today dear Colorado a dream house team. What is your thought about paying cash and getting a loan. After closing. Well I think I know why you’re asking the question because if Obviously you present an all cash offer to the seller you may have a bit of an advantage right. You might get some money off the price of the house you might get a better deal. You may also waive your appraisal if you’re in an all cash offer and you might be able to do a quick or close those three things may be a better incentive for the seller to do a deal with you on that particular house. So that’s why you might want to present a cash offer. But on the flip side you don’t want to tie up your cash so you go get a loan after close couple of things I want you to remember about getting the loan after closing.

04:32                                 A lot of times the lender giving you the loan after closing is not going to allow you to pull out the full amount of money. Right. I would plan on at the very minimum leaving about 25 percent in still in the house. A lot of lenders are only going to let you pull about 50 percent of the value out of the house. So that’s point one. Don’t think you’re going to put like 95 percent out because it doesn’t always happen. And again it changes from lender to lender it’s lenders specific. The other thing about getting the loan after closing is that be prepared to possibly pay a higher interest rate could anywhere be between a quarter percent to a half percent. All right dear Colorado dream house team can I change my loan terms throughout the contract say for example could I change from an all cash offer to a loan.

05:21                                 The Colorado real estate contract allows you to change your terms of your financing at any time during the course of the contract. However as long as it doesn’t adversely affect the contract adversely affect is kind of a subjective term between a buyer and a seller would consider adversely if you change from an all cash offer to a loan. You’re

05:48                                 all of a sudden going to have an appraisal. My guess is that you didn’t write an appraisal condition into the contract. That’s going to be a change that probably the seller may or may not go along with. And again having a loan and having to clear a loan in one person’s eyes that may not be adverse in another person’s eyes. It may be either way if you do change your loan terms during the course of the contract it’s probably best to let the seller know what’s going on and be upfront and let them know that this is not going to change the closing date. This

06:21                                 is not going to change your ability to close this deal. Bottom line seller wants to get to the closing table on time. All right.

06:31                                 Dear Colorado dream house team. Do you have a favorite neighborhood. That’s like saying which one of my kids is my favorite Yeah. I have a bunch of favorite neighborhoods and I would suspect that many of you do too. And they’re largely based on where you had already lived. Right. Because you had pleasant memories or experiences there and there are so many great neighborhoods around Colorado. I couldn’t possibly name it all but I lived in Washington Park when I first moved to Colorado and absolutely loved it. It was just a great place to be young and single in the park. And that whole thing and then when we got married we moved out to Highlands Ranch. I guess it goes like the old story you get married you have kids you get a minivan and you move to the suburbs and for those people who cringe at that thought.

07:19                                 I’ve been really really happy. The last 17 years in Highlands Ranch it’s worked out wonderfully but I could name a whole bunch of other places. I mean the Sloans lake in the Highlands neighborhood or LoDo or Rhyno or Congress Park and we could go on and on. They all have their special unique niches and things that you’re going to love and things that you might not like but we’re happy to navigate through all of the neighborhoods because we sell about 100 homes a year just about every one of these places. All right. Don’t forget about our 250 marketing guarantee. Here’s how it works. If you’re thinking about selling your home. Interview us the Colorado dream house team. Let us present to you our marketing plan and then interview our competition. And if their marketing is better than ours you can hire them and we’ll pay you 250 bucks.

08:12                                 It’s that simple. I don’t think that’s going to happen because I think when you get done meeting with us you’re going to see that our marketing for your home is heads and tails above everybody else’s any questions comments. Love to hear from you. Courage to send in those questions and in the meantime everybody have a great weekend and we’ll talk to you next Tuesday.