VIDEO: Our New Colorado Home Buying Guide plus Inspections and Appraisals

 

*Transcription Below

Hi everybody, and welcome to another episode of “Ask the Colorado Dream House Team.” I’m Dan Polimino and happy Tuesday to you. Well, a lot going on in the real estate market, and again, if you’re just tuning into this show for the very first time, our whole objective is to give you good database driven information about the real estate market. Not only in Denver, but wherever you live. A lot of the information that we hand out here on Tuesdays and Thursdays, 4 P.M. Mountain Time, you can use in any city you live in. If you live in Denver, we hope this helps you, and of course, we’d love to hear from you.

To submit a question or a comment, a couple of different ways to do that: you can submit one right here on Facebook in the comments, you can call us at 720-446-6325, or you can email us at team@coloradodreamhouse.com. Always want to accomplish a couple of things in each show. First, give you real estate news and information and second, answer your questions and help you navigate and strategize the real estate market.

All right, a couple of things to announce. If you were with us on Thursday’s show, you know we made a special announcement about our marketing program. We think our marketing program is so great and so much better than the competition’s, that we’re willing to put our money where our mouth is. That’s right. Here’s what we’re offering: If you’re thinking about selling your home, interview us, The Colorado Dream House Team, and let us do a presentation, including our marketing plan. Then interview our competition, and if our competition’s marketing plan is better than ours, you can hire them and we’ll pay you $250. Seriously. We are so confident that our marketing plan is better than everybody else’s to sell your home, which then of course leads to a higher price, that we’re willing to bet $250 on it.

Now, if you want more details about this and how it works; again, my trusty whiteboard, coloradodreamhouse.com/250. That gives you all of the information about how you collect $250. As I say, what do you have to lose? Nothing, and you have 250 bucks to gain. What’s the worst that could happen? That we could sell your house for a really high price? Maybe.

All right, the second thing I want to tell you about is our home buying guide. This is coming up in a couple of weeks. We’re going to release this online. It is “How to Buy a Home in Colorado.” In addition, we are also going to be doing a “How to Sell a Home” buying guide in Colorado. I think we’re going to release them within a week of each other. If you want an advance copy now, you can email us at team@coloradodreamhouse.com or call us, and we will send you an electronic version that you could open your email. But it is “How to Buy a Home in Colorado” and then closely followed by that is going to be “How to Sell a Home in Colorado.” So be looking for those two things.

All right, I want to talk about the questions now. So, let’s get to them.

“Dear Colorado Dream House Team, I have heard you say in the past, there are two rounds of negotiation when it comes to selling your home. I know there’s the purchase price, but what is the second round of negotiation?”

Great question. We like to tell our sellers that we represent to get ready for two rounds of negotiation. The first round, of course, is the purchase price as they’ve just pointed out. We’ve got to get the home under contract, buyer and seller have to agree on that purchase price. And that’s always a little sticky. The second round of negotiation is when we get to the inspection, right? If a deal is going to fall apart, 9 times out of 10 it falls apart on inspection. Buyer and seller can’t agree on the inspection items, how they’re going to be handled, how they’re going to be fixed. So, that’s why we tell people, that’s the second round of negotiations. That’s why you need a real professional on your side to help you strategize that. Because there’s all kinds of schools of thought. “Do we fix the inspection items the buyer asked for?” “Do we credit them money and have the buyer fix them?” “What’s the best solution?” “Or maybe there’ a combination thereof.” “Or maybe the market’s just so great, you don’t need to fix anything.”
There’s lots of different strategies about how we handle this second round of negotiations. So contact us and let us help get you through, and walk you through that process, all right? Number two.

“Dear Colorado Dream House Team, What is the best way to handle inspection items?”

Well, here we go, right? “Do we fix them or have the buyer fix them?” Great question. So, it’s this simple. What we like to tell our sellers is, if you can avoid fixing the inspection items and credit the buyer, that’s probably the best way to go. And it’s that way for a couple of reasons. Number one, it saves you the time and hassle from having to contractors come in your home while you’re trying to move, and get these inspection items fixed. Number two, there’s not a great chance that whoever you hire to fix the inspection items that it’s going to be done to the satisfaction of the buyer. We don’t want to get into one of these scenarios where the buyer comes in and says, “Well, geez, I don’t like the way you fixed that, we want it redone.” Again, to avoid all of that, I like to look at the inspection items that the buyer has submitted on behalf of my seller. I tell my seller, “Let’s try to put some numbers on that. What is that worth? Or what would that cost to repair or fix?” Then I advise our sellers to try to credit the buyers that amount of money. As opposed to the sellers trying to fix them or not fixing them to the liking of the buyer. Make sense? Okay.

Question number three, “Dear Colorado Dream House Team, what’s the best way to ensure your home appraises at purchase price?”

Very, very timely topic because when you’re in a seller’s market and homes are flying off the shelf, people are asking for a premium price. If they are asking for a premium price, the next question you’ve got ask yourself is, “If a buyer is willing to this, will it actually appraise?” Now, here’s what we do at The Colorado Dream House Team, we do not let any appraisers go to any of our homes, where we’re representing the seller, without us being there. We are there for every appraiser. We come prepared, we bring our homework, right? We bring all of our comparables, we don’t let that appraiser leave that house unless we’ve gone over all of those comparables to get him to buy in on how we did the pricing. We want to show him that we’ve got proof, right? Now, sometimes there isn’t proof. Sometimes you don’t have a lot of comparables. At that point, you are just banking on the appraiser going along with the buyer’s offer and understanding that the market is on an uphill climb. The prices are going up and that he takes account for that.

We’ve got a couple of other strategies that we like to use that I don’t want to divulge here, all right? So, if you want to know what those are, contact us at The Colorado Dream House Team and we’ll tell you how we make sure our homes appraise.

All right, that’s all the questions we have time for this week. Thanks to everyone who sent those in. Keep the questions coming, you can post them on Facebook, you can email us, call us. If you want more information on anything we talked about today, feel free to reach out to us at The Colorado Dream House Team. Hey, enjoy the NCAA tournament and have a great week.

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