Wednesday, April 27, 2011
Tuesday, April 26, 2011
Check out my latest real estate blog ...
Check out my latest real estate blog entry titled "5 Deal Killers" at http://ow.ly/4Hf8R
Check out my latest real estate blog ...
Check out my latest real estate blog entry titled "5 Deal Killers" at http://ow.ly/4Hf8R
5 Deal Killers. By Dan Polimino.
We just started the selling season four weeks ago and the market has been heating up nicely. Sellers are moving their properties and buyers are getting their deals. Buyers still have the upper hand; so today, I want to talk about five things that can for sure kill an opportunity for you to sell your home.
* The home shows dirty. This is probably the number one deal killer. If the buyer gets the feeling that you don't take good care of the home, forget about selling it anytime soon. In most cases, the buyer will walk out without even finishing the tour. Homes need to be "show ready." That means: freshen up the paint, clean up the marks on the walls, carpets are clean or replaced, everything is put away, lights are on, and it is clean, clean, and clean.
* Bad photos. This could easily be the number one turn off for buyers and may even prevent you from getting a showing. Make sure that you hire professionals to take pictures of the home. Also, make sure that you have taken the time to get the home ready for picture day. A good real estate photographer will know how to get the most out of your home with photos. If the pictures look bad online, there is little chance that anyone will want to make the effort to go out and see your home in person.
* Misleading information. If there is information about your home that is being circulated on the internet or ads that are incorrect or misleading, it could be a big deal killer. People need to feel like they can trust you, and if you are putting out incorrect or bad information, it raises a red flag and scares buyers away.
* Seller has too high expectations. There is no question that we, as home owners, all have a high opinion of our homes. We also need to weigh that against good sales data which should not be ignored. An unrealistic purchase price will ensure that your property stays on the market for a good long time. Sellers also need to be realistic with their expectations once the home goes under contract. It would be foolish to think that you are going to come away unscathed during the inspection process.
* Horrendous home improvements. You'll notice that I did not say "bad home improvements" because "bad" would be ok and is generally fixable. I see horrendous home improvements all the time that fall into the category of "what were they thinking," like a total concrete back yard. These can be really quick deal killers because some buyers can't see past the problem and visualize a better result.
Of course, the list is not limited to just five deal killers, but those are and should be the top five. I am sure that you can come up with a few on your own and I would love to hear them.
Dan Polimino is a Realtor with Fuller Sotheby's International Realty. He can be reached at DPolimino@fullerproperties.com and www.coloradodreamhouse.com/denverpost
* The home shows dirty. This is probably the number one deal killer. If the buyer gets the feeling that you don't take good care of the home, forget about selling it anytime soon. In most cases, the buyer will walk out without even finishing the tour. Homes need to be "show ready." That means: freshen up the paint, clean up the marks on the walls, carpets are clean or replaced, everything is put away, lights are on, and it is clean, clean, and clean.
* Bad photos. This could easily be the number one turn off for buyers and may even prevent you from getting a showing. Make sure that you hire professionals to take pictures of the home. Also, make sure that you have taken the time to get the home ready for picture day. A good real estate photographer will know how to get the most out of your home with photos. If the pictures look bad online, there is little chance that anyone will want to make the effort to go out and see your home in person.
* Misleading information. If there is information about your home that is being circulated on the internet or ads that are incorrect or misleading, it could be a big deal killer. People need to feel like they can trust you, and if you are putting out incorrect or bad information, it raises a red flag and scares buyers away.
* Seller has too high expectations. There is no question that we, as home owners, all have a high opinion of our homes. We also need to weigh that against good sales data which should not be ignored. An unrealistic purchase price will ensure that your property stays on the market for a good long time. Sellers also need to be realistic with their expectations once the home goes under contract. It would be foolish to think that you are going to come away unscathed during the inspection process.
* Horrendous home improvements. You'll notice that I did not say "bad home improvements" because "bad" would be ok and is generally fixable. I see horrendous home improvements all the time that fall into the category of "what were they thinking," like a total concrete back yard. These can be really quick deal killers because some buyers can't see past the problem and visualize a better result.
Of course, the list is not limited to just five deal killers, but those are and should be the top five. I am sure that you can come up with a few on your own and I would love to hear them.
Dan Polimino is a Realtor with Fuller Sotheby's International Realty. He can be reached at DPolimino@fullerproperties.com and www.coloradodreamhouse.com/denverpost
Thursday, April 21, 2011
Easier to buy than rent?
Is it easier to buy than to rent? Maybe. I know that some people who would not qualify for a mortgage have no choice except to rent. Recently I was surprised to discover that some people who could qualify to buy a home were having difficulty renting. The reason is simple. Vacancy rates in the Denver metro are approaching record lows, and some landlords are setting very high standards for renters.
A real estate agent I know told me about renting a single family home in South Jefferson County last week. Nice home, fairly priced, but nothing exceptional about it. She was inundated with qualified applicants. One of the first prospective renters was a couple who had a medical bankruptcy that was discharged over five years ago. They had re-established their credit, had excellent references from previous landlords, good job history, and cash in the bank. The owner of the property decided that in this landlord's market he wanted perfection. Based upon what I was told, the couple would qualify for a FHA mortgage.
The owner of a prominent property management firm mentioned last week that his firm was receiving three hundred to six hundred calls a day. Vacancy rates are tightening up for a variety of reasons. New construction has slowed dramatically, people are moving into the Denver Metro area, and we all know about the foreclosure mess. What people do not consider is that when a house is foreclosed on, the former occupants need a place to live right now. A foreclosed property may sit vacant for months or years before it is back on the market for either owner occupants or renters. Both renters and landlords are reporting double digit increases in rent. Down the road, I see landlords selling their properties when the market turns around. This will only tighten the rental market further.
If you going to be in a property for less than three years, you are probably better off renting. Longer than that, you should consider buying now. Landlords are not known for their generosity. When prices go back up the fact that you were a wonderful tenant will not matter when compared to how much the landlord can raise the rent or cash out by selling.
Let me know if you need a referral for a good: contractor or tradesmen, attorney, accountant, property manager, etc. I have been blessed to know a lot of great people who do quality work for a fair price. I sometimes know who to avoid, like the glass company that improperly installed a shower enclosure at one of my properties. They forgot to install an expansion channel and then told me how tempered glass implodes all the time. They graciously offered to fix the problem for $725. A reputable company replaced the enclosure for $417. We live and learn, and give a dog only one bite.
Chip Allen
Crestline Mortgage Bankers
A Division of Universal Lending Corp
Direct: 303.947.2109
Fax: 303.987.0676
Loanchip@hotmail.com
Colorado Mortgage Broker License # 100019831
NMLS# 378621
Your Lender for Life!
When people you care about need a mortgage,
for purchase or refinance, please do not keep me a secret.
A real estate agent I know told me about renting a single family home in South Jefferson County last week. Nice home, fairly priced, but nothing exceptional about it. She was inundated with qualified applicants. One of the first prospective renters was a couple who had a medical bankruptcy that was discharged over five years ago. They had re-established their credit, had excellent references from previous landlords, good job history, and cash in the bank. The owner of the property decided that in this landlord's market he wanted perfection. Based upon what I was told, the couple would qualify for a FHA mortgage.
The owner of a prominent property management firm mentioned last week that his firm was receiving three hundred to six hundred calls a day. Vacancy rates are tightening up for a variety of reasons. New construction has slowed dramatically, people are moving into the Denver Metro area, and we all know about the foreclosure mess. What people do not consider is that when a house is foreclosed on, the former occupants need a place to live right now. A foreclosed property may sit vacant for months or years before it is back on the market for either owner occupants or renters. Both renters and landlords are reporting double digit increases in rent. Down the road, I see landlords selling their properties when the market turns around. This will only tighten the rental market further.
If you going to be in a property for less than three years, you are probably better off renting. Longer than that, you should consider buying now. Landlords are not known for their generosity. When prices go back up the fact that you were a wonderful tenant will not matter when compared to how much the landlord can raise the rent or cash out by selling.
Let me know if you need a referral for a good: contractor or tradesmen, attorney, accountant, property manager, etc. I have been blessed to know a lot of great people who do quality work for a fair price. I sometimes know who to avoid, like the glass company that improperly installed a shower enclosure at one of my properties. They forgot to install an expansion channel and then told me how tempered glass implodes all the time. They graciously offered to fix the problem for $725. A reputable company replaced the enclosure for $417. We live and learn, and give a dog only one bite.
Chip Allen
Crestline Mortgage Bankers
A Division of Universal Lending Corp
Direct: 303.947.2109
Fax: 303.987.0676
Loanchip@hotmail.com
Colorado Mortgage Broker License # 100019831
NMLS# 378621
Your Lender for Life!
When people you care about need a mortgage,
for purchase or refinance, please do not keep me a secret.
Water Skiing Property for Sale at Larkspur, CO Your Voice Blogs Denver YourHub.com http://ping.fm/oo4wY
Hot Trends In Bathroom Remodeling. By Dan Polimino. Your Voice Blogs Denver YourHub.com http://ping.fm/Tv0Ui
Tuesday, April 19, 2011
Check out my latest real estate blog ...
Check out my latest real estate blog entry titled "Hot Trends In Bathroom Remodeling" at http://ow.ly/4Dly4
Check out my latest real estate blog ...
Check out my latest real estate blog entry titled "Hot Trends In Bathroom Remodeling" at http://ow.ly/4Dly4
Check out my latest real estate blog ...
Check out my latest real estate blog entry titled "Hot Trends In Bathroom Remodeling" at http://ow.ly/4Dly4
Hot Trends In Bathroom Remodeling. By Dan Polimino.
http://ping.fm/Zl9Jd So, what is it that people want when it comes to bathroom remodeling? Here is a short list that I complied while visiting some home and garden shows this past spring:
* A spa-like atmosphere. In tough economic times, fewer people have the opportunity to visit a spa, but if you made your master bathroom into a spa-like atmosphere, that would create some value in the home. Some surveys show that this is a high priority on a buyer's wish list. After all, if you can't go to the spa, it would be nice to have the spa in your own home.
* Heated Floors. This rated high on what people want in a bathroom. Since it's not very expensive to install, why go another day walking on a cold floor?
* Luxury tile. Spare no expense here! What is on the floor matters - like travertine, marble, granite, or other solid surfaces. A great looking tile floor will catch everyone's attention.
* Neutral colors. Colors change and different trends in shades come and go, but the latest, most popular colors that people want to see are neutral taupes and grays.
* More hot water, not less. Some people swear by tankless water heaters while others still like the good old fashioned hot water tank. Whatever products you choose, just make sure that there is plenty of hot water to go around. Don't get a hot water tank that will just get you by, and if you go tankless, make sure it can handle a large load.
* Plenty of space. Pedestal sinks are nice and can be attractive, but people want space and more space. So think about having a large vanity with plenty of storage space and drawers underneath.
* A linen closet. This seems to be a must because it fits in the same category as space and more space. People want a closet in their bathroom to store the towels, linens and other items. Moreover, they want it separate from their clothes closet.
* Nice accessories. Like flat panel TV's, heated towel racks, designer light fixtures, mirrors, jetted tubs. All these little things can add up and really make your master bath look like a "retreat" rather than just a bath.
Finally, it looks as though granite may start being pushed to the sideline. I have had more than one designer tell me that granite is out and less porous surfaces like quartz and soapstone are in. It seems that it's getting harder and harder to stay up-to-date with the changes.
Dan Polimino is a Realtor with Fuller Sotheby's International Realty. He can be reached at DPolimino@fullerproperties.com and www.coloradodreamhouse.com/denverpost
* A spa-like atmosphere. In tough economic times, fewer people have the opportunity to visit a spa, but if you made your master bathroom into a spa-like atmosphere, that would create some value in the home. Some surveys show that this is a high priority on a buyer's wish list. After all, if you can't go to the spa, it would be nice to have the spa in your own home.
* Heated Floors. This rated high on what people want in a bathroom. Since it's not very expensive to install, why go another day walking on a cold floor?
* Luxury tile. Spare no expense here! What is on the floor matters - like travertine, marble, granite, or other solid surfaces. A great looking tile floor will catch everyone's attention.
* Neutral colors. Colors change and different trends in shades come and go, but the latest, most popular colors that people want to see are neutral taupes and grays.
* More hot water, not less. Some people swear by tankless water heaters while others still like the good old fashioned hot water tank. Whatever products you choose, just make sure that there is plenty of hot water to go around. Don't get a hot water tank that will just get you by, and if you go tankless, make sure it can handle a large load.
* Plenty of space. Pedestal sinks are nice and can be attractive, but people want space and more space. So think about having a large vanity with plenty of storage space and drawers underneath.
* A linen closet. This seems to be a must because it fits in the same category as space and more space. People want a closet in their bathroom to store the towels, linens and other items. Moreover, they want it separate from their clothes closet.
* Nice accessories. Like flat panel TV's, heated towel racks, designer light fixtures, mirrors, jetted tubs. All these little things can add up and really make your master bath look like a "retreat" rather than just a bath.
Finally, it looks as though granite may start being pushed to the sideline. I have had more than one designer tell me that granite is out and less porous surfaces like quartz and soapstone are in. It seems that it's getting harder and harder to stay up-to-date with the changes.
Dan Polimino is a Realtor with Fuller Sotheby's International Realty. He can be reached at DPolimino@fullerproperties.com and www.coloradodreamhouse.com/denverpost
Wednesday, April 13, 2011
Now Dropped by 50%. Over A 2 million In Price Reductions. Your Voice Blogs Castle Rock YourHub.com http://denver.yourhub.com/CastleRock/Blogs/Your-Voice/Blog~970381.aspx
Now Dropped by 50%. Over A 2 million In Price Reductions. http://www.trulia.com/blog/dan_polimino/2011/04/now_dropped_by_50_over_a_2_million_in_price_reductions
Now Dropped by 50%. Over A 2 million In Price Reductions. http://activerain.com/blogsview/2243073/now-dropped-by-50-over-a-2-million-in-price-reductions-
Tuesday, April 12, 2011
Check out my latest real estate blog ...
Check out my latest real estate blog entry titled "You Cannot Fool Today's Buyers" at http://ow.ly/4ysXh
Check out my latest real estate blog ...
Check out my latest real estate blog entry titled "You Cannot Fool Today's Buyers" at http://ow.ly/4ysXh
Check out my latest real estate blog ...
Check out my latest real estate blog entry titled "You Cannot Fool Today's Buyers" at http://ow.ly/4ysXh
You Cannot Fool Today's Buyers. By Dan Polimino.
Story #1
A friend was telling me a story about buying a used car from a dealer. The car had the Inspected and Certified Used Car sticker on it, and the dealership represented that the car was in good working order. Nonetheless, the buyers wanted to have it checked out by their mechanic before putting down the money and driving it off the lot. Upon inspection, the mechanic told these would-be buyers that the car needed a new fuel pump as well as a new timing belt.
The buyers went back to the dealership and told them what the mechanic found, but the dealership was not cooperative. They disagreed with the mechanic's assessment and they refused to replace the items before selling the car. Obviously, the buyers did not go through with the purchase.
Story #2
Some friends wanted to go on a vacation and they planned to book it online. The pictures and reviews of the hotel were fantastic, but since they had never been to this area before, they wanted to do a little extra checking. They decided to use Oyster.com which is like the "travel police." They check out all the claims that a resort may be making, they look at potentially fraudulent reviews, and they go to the resorts and take real pictures of the rooms. Then you can compare the real pictures from Oyster to the pictures that the resort is advertising on their website. Good thing that they did their homework because the real pictures did not look anything like the website's advertised photos.
Story #3
A friend was selling his home and did some fix up work. I asked him if he replaced the roof. He said, "No, if it comes up on inspection and someone really makes a fuss about it, I'll fix it." I told him it would and it did. The buyer requested a new roof and the seller was forced to replace it or lose the deal.
What do all three of these stories have in common? Buyers are smart, they do their homework, they check, and triple check. You will not be able to fool anyone these days. It doesn't matter if you are selling a car, selling a room, or selling a home. Be honest, be up front, do what you need to do to make it right, and you'll not only have a smooth sale, but a good reputation as well.
Dan Polimino is a Realtor with Fuller Sotheby's International Realty. He can be reached at DPolimino@fullerproperties.com and www.coloradodreamhouse.com/denverpost
A friend was telling me a story about buying a used car from a dealer. The car had the Inspected and Certified Used Car sticker on it, and the dealership represented that the car was in good working order. Nonetheless, the buyers wanted to have it checked out by their mechanic before putting down the money and driving it off the lot. Upon inspection, the mechanic told these would-be buyers that the car needed a new fuel pump as well as a new timing belt.
The buyers went back to the dealership and told them what the mechanic found, but the dealership was not cooperative. They disagreed with the mechanic's assessment and they refused to replace the items before selling the car. Obviously, the buyers did not go through with the purchase.
Story #2
Some friends wanted to go on a vacation and they planned to book it online. The pictures and reviews of the hotel were fantastic, but since they had never been to this area before, they wanted to do a little extra checking. They decided to use Oyster.com which is like the "travel police." They check out all the claims that a resort may be making, they look at potentially fraudulent reviews, and they go to the resorts and take real pictures of the rooms. Then you can compare the real pictures from Oyster to the pictures that the resort is advertising on their website. Good thing that they did their homework because the real pictures did not look anything like the website's advertised photos.
Story #3
A friend was selling his home and did some fix up work. I asked him if he replaced the roof. He said, "No, if it comes up on inspection and someone really makes a fuss about it, I'll fix it." I told him it would and it did. The buyer requested a new roof and the seller was forced to replace it or lose the deal.
What do all three of these stories have in common? Buyers are smart, they do their homework, they check, and triple check. You will not be able to fool anyone these days. It doesn't matter if you are selling a car, selling a room, or selling a home. Be honest, be up front, do what you need to do to make it right, and you'll not only have a smooth sale, but a good reputation as well.
Dan Polimino is a Realtor with Fuller Sotheby's International Realty. He can be reached at DPolimino@fullerproperties.com and www.coloradodreamhouse.com/denverpost
You Cannot Fool Today's Buyers. By Dan Polimino. Your Voice Blogs Denver YourHub.com http://ping.fm/9VY6M
Thursday, April 7, 2011
Check out my latest blog entry titled...
Check out my latest blog entry titled "For Purchase or a Refi, VA IS THE WAY" at http://ow.ly/4vd6Q
Check out my latest blog entry titled...
Check out my latest blog entry titled "For Purchase or a Refi, VA IS THE WAY" at http://ow.ly/4vd6Q
Check out my latest blog entry titled...
Check out my latest blog entry titled "For Purchase or a Refi, VA IS THE WAY" at http://ow.ly/4vd6Q
For Purchase or a Refi, VA IS THE WAY
In addition to not requiring a down payment, VA mortgages are now a superior choice to FHA mortgages in most cases. The reason is simple. While the upfront costs are usually higher than a FHA loan, there is no monthly mortgage insurance on a VA loan.
Upfront costs, referred to as the mortgage insurance premium (MIP), for FHA mortgages are currently 1% of the loan amount. In addition, there is the annual mortgage insurance premium which is paid monthly. This will be increasing to 1.15% on April 18, 2011. On a FHA mortgage of $200,000, the upfront MIP would be $2,000, bringing the loan amount to $202,000, and the annual mortgage premium would be $191.67 per month.
Upfront costs on a VA mortgage are referred to as the Funding Fee. The funding fee for purchase mortgages are as follows:
* ZERO for a veteran with a service related disability
* 3.3% for a veteran who has used his eligibility before.
* 2.15% for first time buyers who are on Active duty or Veterans.
* 2.4% for reservists and National Guard.
For streamline VA refinances the funding fee ranges from zero to 0.5%. A first time buyer with a funding fee of 2.15% would have $4,300 added to a $200,000 mortgage for a total loan amount of $204,300. While this is $2,430 more than a FHA mortgage, the buyer is not paying the monthly mortgage insurance of $191.67. The buyer is money ahead after 13 months.
I recently did a purchase mortgage for a Vet who could have come up with the down payment for a FHA mortgage. After looking at his options, he wisely choose the VA mortgage. The $10,500 he would have used for his down payment was instead used for home improvements on his new home. His earnest money was $1,500, which he received back at closing. All in all, a win-win deal.
Chip Allen
Crestline Mortgage Bankers
A Division of Universal Lending Corp
Direct: 303.947.2109
Fax: 303.987.0676
Loanchip@hotmail.com
Colorado Mortgage Broker License # 100019831
NMLS # 378621
Your Lender for Life!
When people you care about need a mortgage,
for purchase or refinance, please do not keep me a secret.
Upfront costs, referred to as the mortgage insurance premium (MIP), for FHA mortgages are currently 1% of the loan amount. In addition, there is the annual mortgage insurance premium which is paid monthly. This will be increasing to 1.15% on April 18, 2011. On a FHA mortgage of $200,000, the upfront MIP would be $2,000, bringing the loan amount to $202,000, and the annual mortgage premium would be $191.67 per month.
Upfront costs on a VA mortgage are referred to as the Funding Fee. The funding fee for purchase mortgages are as follows:
* ZERO for a veteran with a service related disability
* 3.3% for a veteran who has used his eligibility before.
* 2.15% for first time buyers who are on Active duty or Veterans.
* 2.4% for reservists and National Guard.
For streamline VA refinances the funding fee ranges from zero to 0.5%. A first time buyer with a funding fee of 2.15% would have $4,300 added to a $200,000 mortgage for a total loan amount of $204,300. While this is $2,430 more than a FHA mortgage, the buyer is not paying the monthly mortgage insurance of $191.67. The buyer is money ahead after 13 months.
I recently did a purchase mortgage for a Vet who could have come up with the down payment for a FHA mortgage. After looking at his options, he wisely choose the VA mortgage. The $10,500 he would have used for his down payment was instead used for home improvements on his new home. His earnest money was $1,500, which he received back at closing. All in all, a win-win deal.
Chip Allen
Crestline Mortgage Bankers
A Division of Universal Lending Corp
Direct: 303.947.2109
Fax: 303.987.0676
Loanchip@hotmail.com
Colorado Mortgage Broker License # 100019831
NMLS # 378621
Your Lender for Life!
When people you care about need a mortgage,
for purchase or refinance, please do not keep me a secret.
Wednesday, April 6, 2011
Amazing Mountain Home in Lone Tree, Colorado Your Voice Blogs Lone Tree YourHub.com http://ping.fm/70ti6
Tuesday, April 5, 2011
Check out my latest real estate blog ...
Check out my latest real estate blog entry titled "Inspections On New Construction" at http://ow.ly/4tzlP
Check out my latest real estate blog ...
Check out my latest real estate blog entry titled "Inspections On New Construction" at http://ow.ly/4tzlP
Check out my latest real estate blog ...
Check out my latest real estate blog entry titled "Inspections On New Construction" at http://ow.ly/4tzlP
Inspections On New Construction. By Dan Polimino.
It's one of those frequently asked questions: "Should I get an inspection on a newly constructed home?" Great question and I usually tell my buyers that the answer is yes/no and I'll explain why.
You see, most builders offer a one-year bumper to bumper warranty on the home that they just sold you. Moreover, during the due diligence process, buyers usually get a chance to do two walkthroughs with the warranty and service superintendent. The purpose of the first walkthrough is to point out any defects, problems, or items that you think need to be fixed in the house. The second walkthrough is to make sure that the items have been corrected and to take one more look to see if you missed anything in the first walkthrough. I know a lot of people that get worried if they still missed something after the two walkthrough inspections. I usually tell them not to worry because they have a full year to have the builder's service people come back and fix something that they may have missed.
Then the question comes up about hidden defects that the buyer can't see like structural problems, stucco or siding issues, electrical, plumbing, HVAC, and etc. Buyers say, "Shouldn't we check that the builder isn't hiding any problems by doing a full blown inspection?" Yes, you should, but I think that there is a better way to handle it. Since you have a full one-year warranty, why not wait until 10 months into the warranty and then spend a few hundred dollars for a full blown inspection? By doing so in month 10, you then can come up with a laundry list of items that need to be repaired or replaced, including hidden defects discovered by the inspector. Then, before your warranty is up, you can get a complete checkup and fix up of your home, courtesy of the builder. If you are concerned about closing and moving into a home that has structural problems, don't worry; most builders offer 10-year warranties on structural defects. Everything can be discovered and fixed in the first year.
In my opinion, this is the best of both worlds. You get all the things that need to be fixed, replaced or repaired before you close and move in. Then you "test drive" the home for 10 months and get another list of items fixed, replaced or repaired with no money out of your pocket except the fee for inspection.
Dan Polimino is a Realtor with Fuller Sotheby's International Realty. He can be reached at DPolimino@fullerproperties.com and www.coloradodreamhouse.com/denverpost
You see, most builders offer a one-year bumper to bumper warranty on the home that they just sold you. Moreover, during the due diligence process, buyers usually get a chance to do two walkthroughs with the warranty and service superintendent. The purpose of the first walkthrough is to point out any defects, problems, or items that you think need to be fixed in the house. The second walkthrough is to make sure that the items have been corrected and to take one more look to see if you missed anything in the first walkthrough. I know a lot of people that get worried if they still missed something after the two walkthrough inspections. I usually tell them not to worry because they have a full year to have the builder's service people come back and fix something that they may have missed.
Then the question comes up about hidden defects that the buyer can't see like structural problems, stucco or siding issues, electrical, plumbing, HVAC, and etc. Buyers say, "Shouldn't we check that the builder isn't hiding any problems by doing a full blown inspection?" Yes, you should, but I think that there is a better way to handle it. Since you have a full one-year warranty, why not wait until 10 months into the warranty and then spend a few hundred dollars for a full blown inspection? By doing so in month 10, you then can come up with a laundry list of items that need to be repaired or replaced, including hidden defects discovered by the inspector. Then, before your warranty is up, you can get a complete checkup and fix up of your home, courtesy of the builder. If you are concerned about closing and moving into a home that has structural problems, don't worry; most builders offer 10-year warranties on structural defects. Everything can be discovered and fixed in the first year.
In my opinion, this is the best of both worlds. You get all the things that need to be fixed, replaced or repaired before you close and move in. Then you "test drive" the home for 10 months and get another list of items fixed, replaced or repaired with no money out of your pocket except the fee for inspection.
Dan Polimino is a Realtor with Fuller Sotheby's International Realty. He can be reached at DPolimino@fullerproperties.com and www.coloradodreamhouse.com/denverpost
Inspections On New Construction. By Dan Polimino. Your Voice Blogs Denver YourHub.com http://ping.fm/vgx5K
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