The Difference Between Escrow and Table Funding States

The Difference Between Escrow and Table Funding States

Dan Polimino discusses what to do with your home over the holidays, what to do if you want to sell your home as is, whether or not you need a lawyer to close a real estate transaction in #Colorado and the difference between escrow and table funding states.

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Full Transcript

00:02                                     Hi everyone and welcome today's show of ask the Colorado Dream House team I'm damn Palatino your host. Coming to you live from Denver Colorado. And every Tuesday and Thursday right here on the show we answer your real estate questions. You don't have to be in Denver. You're going to be in Seattle you can be in Miami or you can be in Arizona. All of the information we share with you can help you strategize to buy sell or invest in the real estate market. Two things we like to accomplish in every show which is to give you some market information and to answer your questions. So let's get into today's market update. Can you believe it. We're almost midway through October the fall is absolutely flying by. So as we get out of October and we get into November we start thinking about the holidays and so some of the questions I'm starting to see is.

00:54                                     Dan what do we do with our home over the holidays. Well let's assume that you're on the market right now and you're selling. The question that always comes up do you leave the home on the market over the holidays or do you take it off. This has been one that I've answered for a lot of years and here there's really no definitive answer. But here's the information I can give you. Number one if you do decide to leave your home or on the market over the holidays it's perfectly okay to decorate actually decorate it all up. I know when I was a buyer's agent and I was taking people out to see homes in late November and early December I actually looked forward to seeing how everybody had decorated their house and it'll will give the buyers an idea of what it could look like for them.

01:38                                     So that's perfectly OK. Decorate all you want right. Second part. I would expect that over the holidays there's probably not going to be a lot of showings. All right. So just lower your expectations a little bit and think to yourself there's probably not as many buyers out shopping right now for a home because why would you in the middle of the holiday season when all the hustle and bustle and the parties and the shopping are going on. So just lower your expectations and understand that you're probably not going to get a lot of showings. However the one or two buyers that do come in see your home over the holidays are probably serious. They are probably not looky loos right. It's not like they just didn't have anything else to do.

02:22                                     More than likely they've got a job relocation they're moving into Colorado they've got to find something before the end of the year because maybe the job starts January 1 something like that. All right. So on one hand if you keep it on there is going to be far fewer showings but the people who do see it are probably going to be real buyers. I mean interested in writing an offer. The other thing is some people say Well Dan I just don't want to be hassled during the holidays. I don't want you know I'm going to have family over there going to be in and out the house is going to be a mess I can insure it's going to be show ready. Can I just take it off. And the answer is yes.

02:59                                     You can take it off when we do that for many of our clients and we usually do it the week after Thanksgiving and then we bring it back on right after New Year's. OK. And we give everybody a little break. Now one thing I want to caution you on in the old days when you took it off for the holidays and brought it back on after New Year's. It appeared after New Year's that it was a brand new listee. That doesn't happen anymore. They stopped doing that a number of years ago. So the history of your home being on the market prior to Thanksgiving will still be present in the MLS and everyone will know that you just took it off for a period. So don't do it with the intent that if I put it back on after January it's going to show up as a new list.

03:43                                     OK. Hope that helps see if you want to talk more about that. Obviously feel free to call us at team at Colorado Dreamhouse dot com or 7 2 0 4 4 6 6 3 2 5. All right let's get to today's questions. Dear Colorado. Dream house. Do I need a lawyer to close a real estate transaction in the state of Colorado. The answer is No you don't. I know many states do use lawyers to close real estate transactions. I'm glad that Colorado's not one of them because I think that's just a racket. It's just a way for more attorneys to make more money closing real estate transactions it's really not necessary in Colorado. The Colorado real estate contract the approved form by the real estate commission was actually drafted by attorneys.

04:31                                     So the you know I think we're up to like 19 pages now that 19 page contract is actually all written by attorneys and by members of the Colorado real estate commission with their input. And so it is a really a legally approved form. Now if you want to hire an attorney to review that form you can we never discourage anybody from doing that. In addition when we get to closing in Colorado title companies act as Scrivener which is another word for closing Agent and recorder and they do the closings in Colorado so we actually pay our title companies a fee to close the transaction and record all of the documents and disperse the money instead of using an attorney far more efficient. Trust me that's one of the things I love about Colorado dear Colorado Dreamhouse team what is an escrow state versus a table funding state.

05:30                                     So having owned an office in California which is an escrow state and only in an office in Colorado which has a table funding state here's the difference. At a table funding state what that basically means is the closing date that you said in the contract is just that the closing date and all of the parties either meet in an office or at the title company at once. Buyer and seller same day they sign all the documents the funds get transferred and the keys get transferred and that buyer takes possession of the home on the day of closing doesn't happen that way in an escrow state in escrow state means that the money is turned into a title company. So all of these things can happen in different sequence many times one party will sign at their respective place and the other party will sign at their respective home if they're out of state.

06:22                                     Those documents will get turned into the title company a couple of days later maybe the funds then show up. Right. And then after it's funded the lenders and the title company review all of the documents and then after a couple of days after that it's probably recorded and once it's recorded you're officially closed and then keys can transfer. It's a little bit longer drawn out process. I don't really care for it. I like a table funding state where you get the keys on the day that you hand the check and sign the documents dear Kolata Dream House team we're thinking about selling our home but we don't want to do any repairs or fix it up. Can we just advertise it and sell it as is.

07:06                                     Well sure you can always sell it as is. Nobody requires you to fix up your home. However I think you've got to know a couple of things. If you aren't going to make any repairs you're not going to fix it up and it doesn't show that well then you better adjust the price accordingly. You're probably not going to get as high a price as your neighbor or the guy down the street but bring the price down. So people understand that it's price low because you're not fixing or repairing or updating anything. In addition watch your expectations on the quote as is just because the buyer sign the contract and said that he'd take the house as is. Doesn't mean he's not going to do an inspection. In fact he is going to do an inspection and he probably will submit an inspection objection asking for repairs or additional money.

07:57                                     So the old I'm selling it as is never really works. So don't do it because it doesn't help you. All right. I hope that answers your question. Couple of things I want to tell you about. First we've got a new house that just came on the market and it is 24 6 9 9 East Marine place. In talons reach great ranch right. It's priced at 7:25. Here's the best thing about the ranch is that it's not not all that old it's kind of a newer subdivision a new area but great updates. Beautiful hardwood floors terrific cabinets and granite you'll love the kitchen great room feel but you also love the big back. It's on a 10000 square foot lot and it backs to open space and that talons reach neighborhood is absolutely on fire.

08:48                                     So check it out. Go to our Web site. Go to Colorado Dreamhouse dot com forward slash Marraine and look at the pictures. I've also included the link here on Facebook. But again check out more rain prices 725 terrific ranch with a with a big backyard. You're going to love it. Don't forget about our 250 marketing guaranteed. And here's how it basically works if you're thinking about selling your home. Interview the Colorado dream house team interview us. Cost you nothing and only take about 30 minutes. Let us present our marketing plan to you and then go ahead and interview our competition. And if their marketing plan is better than ours you can hire them to sell your house and we'll give you 250 bucks just for interviewing us. It's that simple. All right. So go to our Web site Colorado Dreamhouse dot com forward slash 250.

09:45                                     And check out the details and we'd love to hear from you of course if we can ever help you buy sell or invest in real estate. Contact us here at the Colorado Dream House team at 7 0 4 4 6 6 3 2 5. All right. That's today's show everybody will be back on Thursday. Keep the questions coming here on Facebook until then have a great week.

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