Colorado Springs Home Owner's Associations: What You Should Know BEFORE You Buy in an HOA

Many neighborhoods in Colorado Springs have a Home Owners’ Association (HOA) and it is important that a home buyer understand the benefits and restrictions that are a part of the home they are thinking of purchasing. All HOAs differ from one another. They each have their own fees, budget and finances, governing bodies, covenants, restrictions, and benefits. Many HOAs aren't run by Homeowners that live in the neighborhood, but by Professional Community Managers. Since they are all different to some degree, it is very important to understand the HOA you will be buying into.


According to Colorado law, during the negotiation of the purchase of a home, the seller is required to disclose whether the home is in a HOA. They should provide you with HOA documents including a copy of the bylaws, covenants, and most recent Annual Owner’s Meeting, and most recent financial statements, if available, for the six month period immediately preceding the date of the contract to buy. It is very important that the home buyer read these carefully, especially the financial statements. Some HOA’s may not have managed their budget wisely and have a shortage of funds for needed upkeep or repairs or may have special assessment or fees that have been approved, but not yet applied. Some Associations strictly forbid any cars to be parked on the street, what color you paint your home, or if you are allowed to have a privacy fence. While these restrictions may be exactly the type of rules that keep a neighborhood beautiful and property value more secure, it may not be the right fit for some people. Home buyers often underestimate the importance of carefully reading the Bylaws, Covenants, and financial statements during the due diligence stage of the home buying process.
HOA’s also may offer benefits such as amenities and shared areas. Some may include a pool and clubhouse, community park, tennis courts, common area gardens and maintenance, snow removal, water and trash, or additional lighting around the neighborhood.  These features can help keep a community attractive and stabilize property values.
For additional information on HOA’s in Colorado Springs, click here.  If you would like help finding a home, or have questions about how HOA’s work, I would be happy to help you in any way possible. You can email me, or give me a call #719-357-1023

Should I Wait for Interest Rates to Come Back Down?

 

 

Above is a graph of the movement of the 30 year fixed mortgage rate since the beginning of 2012.

Some Colorado Springs buyers are waiting to see if interest rates will come back down before making a decision about buying a home. Though no one can guarantee where rates will be in a few months, we don’t believe waiting is a good strategy.

Most experts believe rates may actually move higher. The Mortgage Bankers Association, Fannie Mae, Freddie Mac and the National Association of Realtors are in unison projecting that rates will continue to climb.

With Colorado Springs home prices increasing and interest rates projected to also increase, the cost of buying a house could quickly increase rather dramatically.

I would be happy to help you find your Colorado Springs home. Please call me at 719-357-1023 or email me at JulieLopezRealtor@gmail.com. You can also view Colorado Springs homes for sale at my website JulieLopezProperties.com

Colorado Springs Homes Selling at Fastest Rate in Years

If someone puts a home on the market today, chances are good it’ll sell within two months.

As of June 30, single-family homes in Colorado Springs spent an average of 62 days on the market, the lowest number since June 2006, when the Pikes Peak Association of Realtors started keeping records.

The total number of active listings is extremely low at 3,450 compared to around 6,000 active listings in June 2010. In other words, available homes for sale has decreased 40 percent from that of three years ago!

A total of 1,114 homes sold in May, an increase of 20.4 percent over the 925 homes sold in May 2012. The momentum continued in June as 1,104 homes sold, compared with 846 in June 2012, an increase of 30.5 percent.

From January through May of 2012, 3,420 homes sold, compared with 4,233 this year, an increase of 23.8 percent, according to figures from the PPAR.

Monthly inventory levels are at the lowest point since August 2005, which means one thing to Colorado Springs Realtors; It’s a healthy market, and it seems to be getting healthier.

Homes in the $400,000-to-$424,999 range sold at an average of 55 days on the market. Homes in the $250,000-to-$274,999 range sold at a quick clip of 65 days average on the market.

In northeast Colorado Springs, 93 homes were on the market only 34 days on average before being sold. In Old Colorado City, 22 homes, with a median price of $160,000, sold after an average of 36 days on the market.

In the northwest area of Colorado Springs, 29 homes were on the market for an average of 43 days before selling. Those homes had a median price of $319,680. In the Powers Boulevard area, 112 homes sold with a median price of $221,448, also on the market for an average of 43 days.

Many believe this is a reflection of what’s going on in the economy. The economy is consistently showing signs of improvement and people are more confident. They’re beginning to buy homes they’ve been putting off for years. Buyers recognize that the market is now in recovery and in order to take advantage of the prices, this is the time. They are also taking advantage of the low mortgage rates since these usually go up as the economy improves.

Colorado Springs City Wide Open House Weekend!

Are you thinking of buying or selling a home, but not ready just yet? This is a great opportunity to take a peek at what the Colorado Springs Real Estate Market looks like right now. It’s also a great time to browse for a Colorado Springs Realtor if you haven’t found one yet.

View Dozens of homes for sale in Colorado Springs at the City Wide Open House Weekend on July 13 and 14, 2013 from 1:00 – 4:00. Check the Open House section in the Gazette for a list of Colorado Springs Open Houses and look for the signs.

I will be hosting an Open House at 5575 Flintridge DR in the Sunset Ridge neighborhood on Saturday, July 13. I would love to see you there!

 

Say goodbye to ultra-low mortgage rates.

 

 

 

 

 

In the past month, rates have been on the rise and they are expected to continue to climb. This week, the average rate on a 30-year fixed-rate mortgage jumped another 10 percentage points to 3.91% and are up from 3.3% in early May, according to mortgage giant Freddie Mac. Meanwhile, those seeking a 15-year loan received an average rate of 3.03%, up from 2.56% -- a record low.

"It's unlikely that rates will ever be that low again," said Doug Duncan, Fannie Mae's chief economist.

Those who didn't take advantage of record-low rates have missed the boat -- at least for now. Here are three reasons why.

The Fed is going to stop bolstering the housing market. The Fed has kept rates at rock-bottom levels by buying up to $85 billion a month of Treasury bonds and mortgage-backed securities. That has enabled lenders to sell mortgage loans at low interest rates and recoup their money immediately -- plus profits.

"Up until recently, expectations were that the Fed would begin to taper purchases of mortgage-backed securities (MBS) and Treasury bonds late in 2013, but that timeframe appears to have moved to September, possibly sooner," said Keith Gumbinger, vice president of HSH.com, a mortgage information company.

If the Fed stops purchasing the securities, private investors will have to pick up the slack. For investors to do that, the loans will have offer a better payoff. And that would mean raising rates for borrowers, said Duncan.

The economy is no longer reeling. During the recession, the Fed lowered its short-term interest rate to near zero in order to stimulate the economy. But now conditions have improved considerably since the economy emerged from recession four years ago. As the economic revival gains traction, it is creating a tailwind for interest rate increases, according to Gumbinger.

Low rates happen when the economy is in distress. But now, the market believes the economy is getting stronger, said Wendy Cutrefelli, a vice president in the Mortgage Banking Division of Bank of the West. Job gains have picked up lately, averaging about 202,000 a month over the past six months.

That hiring is advancing rather than retreating is good news for the economy and any positive future reports are expected to push rates higher, according to Gumbinger. Even mediocre news might not cause any meaningful decline in rates.

3.3% rates are unprecedented. "The 30-year [mortgage rate] hit a 37-year low in 2003 at 5.23%," said Gumbinger. "That was the previous low-watermark prior to this financial crisis and it's likely we will move closer to that mark as we grind forward."

Any return to normal conditions, therefore, will likely be accompanied by higher mortgage rates.

Even if they go up a percentage point or two, however, mortgages will still be relatively low. Historically, 30-year loans are usually 5.5% or higher.

For clues to the direction of mortgage rates, look at the daily movements in 10-year Treasury bond yields. Mortgage rates track Treasury yields with the difference between them holding fairly constant.

These days, Treasury bonds have been on a jumpy uphill climb, with the 10-year hitting 2.21% on May 31, its highest closing since April 2012. On Thursday, the yield was about 2.10%. Since the interest rate on a 30-year is usually 1.7 to 2 percentage points higher, it indicates that mortgages should be at between 3.82% and 4.12% this week.

Why You Should List Your Home With Me

Choosing the right Colorado Springs Real Estate Professional is perhaps the most important decision you will make when selling your property. The more you look around, the more I think you will see why it makes sense to list with me. I don’t sit back and quietly wait for buyers to come to me. I aggressively market and list your Colorado Springs property in the places buyers are looking with the latest technology!

 

 

 

What I Offer that MANY DO NOT!

• I use a Professional Photographer 
• Video Home Tour with Narrator 
• Virtual 360’ Home Tour 
• Listing on All Major Internet Property Sites
• QR Code on yard sign with Recorded Information about Your Home
• Open Houses 
• Beautiful Color Flyers 
• Full Time Showing Appointment Coordinators 
• Showing Feedback from Buyer and Agents 
• 7 Day a Week Availability 
• Home Staging / Showing Advice 
• Electronic Contracts Availability

And much more! 

Allow me to share my complete market strategy with you and ask me how I can save you money! Call me today! (719) 357-1023 Or visit my Colorado Springs Real Estate website: www.JulieLopezProperties.com

 

The Problem With T-Lock Roof Shingles

T-Lock Roof Shingles were widely used on Colorado Springs homes and other areas where high winds were a problem, but were discontinued sometime around 2004. Until recently, insurance companies were still insuring homes with these type of roofs. However, over the past few years and due to wind and hail damage claims, most insurance companies have stopped writing new coverage for these because when there is damage, it is not able to be repaired and the entire roof must be replaced.

The few insurance companies left that will still cover these types of roofs will only cover them at depreciated value and since most remaining roofs are now close to 10 years old, the amount of coverage that would be provided on an actual cash value will cover very little after the deductible has been met.

For those of you looking to buy a home, keep this in mind as this issue is sometimes not brought to the home buyer’s attention until the home has closed and the new home owner gets a notice from the insurance company that they are going to cancel the insurance policy due to the roof being ineligible.

For those of you who do not know what a T-Lock roof looks like, I have included a picture. They make a distinctive T shape by the means that they lock to each other.

If you are interested in a home with this type of roof, you should talk to your realtor about this issue before the negotiating process with the seller or beware of the possibility of having to replace the roof yourself.

Updating Your Home to Get the Biggest Bang for Your Buck!

At an open house this weekend, I had many people that visited tell me they wanted to update their older home before they put it on the market so they could get the most “bang for their buck”. I thought this would be a good time to share the “inside scoop” of what many home buyers seem to be looking for in the decor of the home they purchase. Keep in mind that people are all unique and what is pleasing to one person, certainly may not be pleasing to another. That being said, there are colors and styles that appeal to a larger portion of the population than others. This is why if you go into ten different model homes, most of them will have similar color themes and styles.  It may not be what you would have in the home you are living in, but when putting your home on the market, it is in your best interest to appeal to the masses.

I’ve noticed a huge trend sweeping Colorado Springs right now. Investors have been gobbling up many of the Short Sells and Foreclosures that have been flooding the market, completely updating the homes with paint inside and out, new flooring throughout, new counters in the kitchen and bathrooms as well as new modern backsplashes that give an older kitchen a modern look and then selling the homes for a nice profit. While you can’t blame someone for making an honest living, this makes it difficult for a home that has not been updated able to compete with these “Fix n Flip” houses. That being said, it is more important than ever to invest a little money and elbow grease in your home so that buyers can see its full potential. 

You should keep in mind while you are planning and budgeting to update your home, there is something called Point of Diminishing Return, which put simply, means that a you can only raise the value and price of your home to a certain degree, regardless of how much money you spend on updates, at a certain point you will be putting more money into a home than you may be able to get back out of it. This is because much of your home's value will depend on things you can’t change, such as the location, age, housing market, and many other factors. Obviously, this rule is not always as cut and dry, such as when you are updating a very custom home in a neighborhood where the home prices may differ from each other by hundreds of thousands of dollars. But when speaking about a typical Colorado Springs neighborhood track home, there is a definite Point of Diminishing Return. You certainly don’t want to put more money into your home than you will be able to recoup and hopefully make a profit from. The key is to find the sweet spot in the areas that pack the biggest punch to help it stand apart from the other homes for sale in your neighborhood. Furthermore, doing some improvements may mean the difference between selling your home in a reasonable amount of time, or taking much, much longer to sell and with many price drops. During the planning and budgeting phase is also a good time to have a Competitive Market Analysis (CMA) done for your home. A CMA is research that is done on homes in the area that are for sale and that have sold in the last few months to give a clearer picture of the price range you can expect your home to sell for. The Colorado Springs home market changes rapidly, so it is important to see what your home is worth currently, rather than what someone quoted you six months or a year ago.

Updates that pack a big punch:

• A Fresh Coat of Neutral Paint Through-out Your Home. Your space will appear much larger if you can resist the urge to paint each room a completely different color. A light tan color with white moldings and doors is ideal.

• New Flooring- Next to Paint color, the biggest surface in your home is your floors and even though it is a significant investment, it packs a huge punch in the presentation of your home. Avoid colors that are too dark OR too light. An economical alternative to tile on the floor in the kitchen and bathroom is a new vinyl flooring product that looks and feels just like tile. It even has grooves for the "grout". Some of it is such high quality that you have to really feel it to know the difference. The big price savings in this is the labor involved with tile rather than vinyl flooring. Remember; keep it neutral and not too dark.

• Update the bathrooms and kitchen without completely replacing everything! -There are ways to update your kitchen without spending a fortune. If you aren’t willing to shell out the big bucks for the expensive granite that buyers jump for joy over, even replacing an old outdated Formica countertop with the new modern version that has the look of granite is an economical choice. Top it with a coordinating glass tile backsplash and you’ve got a customized look that will do wonders for you kitchen without breaking the bank. If your bathroom and kitchen cabinets are old and outdated, but still structurally sound, gently sand off just the gloss, clean thoroughly with a degreaser and either paint them white or use a good gel stain to make them a popular Java or Espresso color then ad brushed nickel door hinges, knobs, and pulls -don't skimp on the pulls and hinges as these really do make a big difference and are noticed by home buyers.

• Replace Brass Light Fixtures with Brushed Nickel -Lowes and Home Depot often have clearance fixtures that will do the trick for a modest price.

If you're not ready, willing, or able to do all of the suggested updates, just doing one or two of these can make a difference. There are also things that you can do to make your home show better that won't cost you a penny, such as cleaning, de-cluttering, and getting rid of excess furniture. Rooms with too much furniture or furniture that is too large for the space makes the room feel smaller than it actually is. Smell is also very important while your home is on the market. Oders from smoke, pets, or garbage are big turn-offs for buyers.

If you are planning on selling your home in the Colorado Springs area, or are still in the planning stage, give me a call (719) 357-1023 or email me! I would be happy to provide you with a free Competitive Home Analysis, and come to your home to give you some ideas on preparing for the housing market. Mention my blog and I will tell you how I can save you money on commission while still marketing your home at the highest level.

National Open House Weekend April 20 & 21

Don’t miss the National Open House Weekend coming up on the 20th and 21st of April. Realtors from all over will be hosting open homes for public viewing. Times are typically from 1pm to 4pm but may vary depending on the home and Realtor. If you are just curious, or have been thinking of buying a home or selling your current home, this is a great opportunity to sample what is going on in the housing market!

The Pikes Peak Association of Realtors (PPAR) is having a Sweepstakes and giving away prizes for this event. Please go to the PPAR Website for more information. On their site, you will also be able to access a list of where the Open Houses will be. You should wait until the date draws closer as many Realtors haven’t notified PPAR of the properties that will be participating yet.

Mark it on your calendars, and I hope to see you at the home we will be hosting at 3090 Oro Blanco Drive, Colorado Springs, CO 80918! If you have any questions, please email me or call me at (719) 357-1023. I would be happy to help you in any way possible.

What Real Estate Agents Do for Buyers

 

Buying a home can be an overwhelming experience, especially for first-time home buyers. You may think a Buyer’s Agent's primary function is just to drive their clients around and unlock homes for them to look at. But the brunt of the work that a good Realtor does comes after you find the right home. Of course, helping you in the home search and really listening to your likes and dislikes IS an important part of their job, but it doesn’t end there.

A good Buyer’s Agent will explain the contract to you and make sure you understand its contents. One of the most important jobs of a real estate agent is to negotiate a good deal on your behalf. They should be willing to educate you on the housing market and give comparisons on other homes that have sold, how long a house has been on the market, what houses haven’t sold, and any other activity going on in the housing market. In the end, it is up to you what price and terms you wish to offer, but you should be able to rely on the Buyer’s Agent to provide accurate information and advice. They should help you to make informed decisions about negotiating while putting your best interest above all others.

After the contract has been negotiated and both parties have signed on the dotted line, the Buyer’s Agent should help to make sure the many things that need to be done before a home can close are done within the deadlines. Many contracts fail because deadlines are not met on time. There are deadlines for loan approval, deadlines for disclosures, inspections, objections, and the list goes on. Since the Contract to Buy and Sell is a legal document, missing a deadline is defaulting and could potentially cause the buyer to lose their Earnest money. You should be hearing from your Agent often with updates and reminders about what is going on and guidance through what you should be doing during your home purchase.

You will need the service of many professionals such as lenders, home inspectors, title companies and appraisers during your home purchase. While it is illegal and imprudent for a Realtor to tell you which one to use - it could leave them liable for that person’s actions - a good Buyer’s Agent should have a list of trusted professionals to give you with a few choices for each category and their contact information.

A good Buyer’s Agent should be with you until the very end - the closing. They should be there to answer any questions you have and make sure you are represented even at the closing table.

These are just a few of the things that a good Buyer’s Agent should be doing during the home buying process. Has this been your experience?

If you are interested in buying a home in Colorado Springs or the Pikes Peak area, I would be more than happy to help you. I hope you will give me the chance to exceed your expectations! Please call me at (719) 357-1023 or email me.