It's safe to say that all real estate is national, but not all-national real estate is local. What do I mean by that? It simply means that yes, our local neighborhoods and markets make up the total national real estate picture, but the national real estate picture may not be a fair representation of our local market. I hear buyers and sellers all the time talking about the Case-Shiller Index. I hear them quoting national real estate statistics like they apply to Denver and the neighborhood where they are interested in buying. So, you may be asking yourself, "Why don't all the national real estate reports matter or apply to Denver?" The reason is that real estate is, and has always been a local event. What is happening on the ground, in say, a neighborhood like Washington Park, cannot possibly be represented accurately in a national index or a report in the Wall Street Journal.
I remember back in 2008 and 2009 when it seemed liked everyone in the country was in the middle of the real estate crash. I would call and speak with my fellow Realtors in Dallas, Austin, or the Carolina's and they would tell me how great their market was doing in the midst of the storm. I used to pull my hair out and could not fathom how they were doing well in the middle of the worst real estate crash in the country's history. They would go on to explain how their unemployment rate was low and how people were moving from hard hit areas to their cities. They would tell me why people still wanted to live in Dallas, Austin, Charleston, and Durham. These cities had a lot to offer and people were flocking there to improve their situations. This is a perfect example of local markets doing well when the whole national picture told quite a different story. I could go on for another two pages with example after example of cities, towns, and neighborhoods that are bucking the national trends.
The take home point here is yes, it is important to understand what is happening nationally with the economy and real estate, but understand that it may not apply to your local market. When Realtors tell you "this isn't Florida, Nevada, or California," they are most likely right and speaking from a position of knowledge and experience.
Dan Polimino is a Realtor with Fuller Sotheby's International Realty. He can be reached at DPolimino@fullerproperties.com and www.coloradodreamhouse.com/denverpost
Tuesday, June 28, 2011
Thursday, June 23, 2011
Read my latest blog post titled "Unle...
Read my latest blog post titled "Unless you are yokel, borrow local" at http://ow.ly/5oO50
Read my latest blog post titled "Unle...
Read my latest blog post titled "Unless you are yokel, borrow local" at http://ow.ly/5oO50
Read my latest blog post titled "Unle...
Read my latest blog post titled "Unless you are yokel, borrow local" at http://ow.ly/5oO50
Unless you are yokel, borrow local
Unless you are a yokel, borrow local. Near the end of the last century, I was at a mortgage conference in Spokane, Washington. The conference had mortgage professionals from across the nation and was a great opportunity to see what was going on in the industry. The industry was changing and a topic of much discussion (and fear) was the impact of internet lenders and the big national banks. Supposedly they were going to use economies of scale, centralized processing, and underwriting to dominate the market. Unbeatable rates, great customer service, and quick closings. While not directly mentioned, I wondered if this would also not reduce global warming and promote world peace. One small problem. As my friends in the military say, "Brilliant idea, sir. I just do not think it is tactically executable".
One of the company's top mortgage originators was serene throughout the discussions. I asked her why she was not the least bit concerned. Turns out she had been doing some "secret shopping". She lived in a western state and a lot of her clients and realtors were excited about the prospect of the whole world competing for the borrower's loan. She had a first time buyer come into her office with a number of realistic questions and wanted a quote. She answered all of his questions and gave the borrower a written Good Faith Estimate. The borrower asked if she could compete with the giant nationwide banks. Sly old fox that she is, she invited the client to call and talk to the big national bank from her office on speakerphone. The borrower asked the same questions and noticed the loan officer either did not know the answer or gave incorrect answers. These were simple questions that any first time buyer might ask. Why do I need an inspection when the property is being appraised? Will the mortgage insurance make my payments if I loose my job? Would an FHA or VA loan be better when you consider my circumstances?
The bank loan officer kept talking about how low their rates were. The borrower at this point was smart enough to know the rate on the mortgage is only half the equation. The rate AND closing costs are what matters when comparing mortgages with similar features such as the term of loan. When the Good Faith Estimate arrived the borrower said he felt like he just missed being run over by a stagecoach. He noticed that while the rate was a little lower, the closing costs were much higher. Before considering the time value of money, etc, it would take the borrower almost 14 years to break even. He noted that the product knowledge and analytical skills of the bank loan officer were limited and seemed more interested in writing a loan up quickly, rather than seeing what was best for the borrower. He wisely went local and got a great rate, service, the right mortgage, AND closed on time.
I see the same thing today with internet lenders and big banks. When refinancing a mortgage it is inconvenient for the borrower, and much worse on a purchase transaction. Sometimes borrowers are required to use a bank's mortgage company when the property is owned by a bank. The last deal I saw like this was typical. Underwriting and processing were out of state and customer service was pathetic. Fortunately the loan options for the borrower were limited, so the bank did not have the opportunity to select the wrong mortgage. In this instance the real estate agent and buyer got lucky and the deal actually closed on time. One of the more amusing comments from the out of state lender, after they finally returned a phone call to the listing agent, was that they were sure that if the wire did not arrive in time for the closing, it would not be more than three days late.
I have seen other loans that sat for weeks or months and never closed. A prominent real estate agent told me that he would not accept any purchase offer from a nationally known lender that supposedly specialized in VA loans because of their performance on the last three deals. The first two deals never closed, and the third deal closed only after the contract was extended for three weeks. The loan had been in process for 6 weeks with the out of state lender who suddenly discovered they could not do the loan because of a minor problem with the borrower's credit report. Three weeks after the deal was transferred to a local lender, me, it closed.
There is an old saying that the best friend you can have is an incompetent enemy. That is why I love to compete against the internet lenders and big banks, that have their mortgage operations centralized and out of state.
Chip Allen
Crestline Mortgage Bankers
A Division of Universal Lending Corp
Direct: 303.947.2109
Fax: 303.987.0676
Loanchip@hotmail.com
Your Lender for Life!
When people you care about need a mortgage,
for purchase or refinance, please do not keep me a secret.
One of the company's top mortgage originators was serene throughout the discussions. I asked her why she was not the least bit concerned. Turns out she had been doing some "secret shopping". She lived in a western state and a lot of her clients and realtors were excited about the prospect of the whole world competing for the borrower's loan. She had a first time buyer come into her office with a number of realistic questions and wanted a quote. She answered all of his questions and gave the borrower a written Good Faith Estimate. The borrower asked if she could compete with the giant nationwide banks. Sly old fox that she is, she invited the client to call and talk to the big national bank from her office on speakerphone. The borrower asked the same questions and noticed the loan officer either did not know the answer or gave incorrect answers. These were simple questions that any first time buyer might ask. Why do I need an inspection when the property is being appraised? Will the mortgage insurance make my payments if I loose my job? Would an FHA or VA loan be better when you consider my circumstances?
The bank loan officer kept talking about how low their rates were. The borrower at this point was smart enough to know the rate on the mortgage is only half the equation. The rate AND closing costs are what matters when comparing mortgages with similar features such as the term of loan. When the Good Faith Estimate arrived the borrower said he felt like he just missed being run over by a stagecoach. He noticed that while the rate was a little lower, the closing costs were much higher. Before considering the time value of money, etc, it would take the borrower almost 14 years to break even. He noted that the product knowledge and analytical skills of the bank loan officer were limited and seemed more interested in writing a loan up quickly, rather than seeing what was best for the borrower. He wisely went local and got a great rate, service, the right mortgage, AND closed on time.
I see the same thing today with internet lenders and big banks. When refinancing a mortgage it is inconvenient for the borrower, and much worse on a purchase transaction. Sometimes borrowers are required to use a bank's mortgage company when the property is owned by a bank. The last deal I saw like this was typical. Underwriting and processing were out of state and customer service was pathetic. Fortunately the loan options for the borrower were limited, so the bank did not have the opportunity to select the wrong mortgage. In this instance the real estate agent and buyer got lucky and the deal actually closed on time. One of the more amusing comments from the out of state lender, after they finally returned a phone call to the listing agent, was that they were sure that if the wire did not arrive in time for the closing, it would not be more than three days late.
I have seen other loans that sat for weeks or months and never closed. A prominent real estate agent told me that he would not accept any purchase offer from a nationally known lender that supposedly specialized in VA loans because of their performance on the last three deals. The first two deals never closed, and the third deal closed only after the contract was extended for three weeks. The loan had been in process for 6 weeks with the out of state lender who suddenly discovered they could not do the loan because of a minor problem with the borrower's credit report. Three weeks after the deal was transferred to a local lender, me, it closed.
There is an old saying that the best friend you can have is an incompetent enemy. That is why I love to compete against the internet lenders and big banks, that have their mortgage operations centralized and out of state.
Chip Allen
Crestline Mortgage Bankers
A Division of Universal Lending Corp
Direct: 303.947.2109
Fax: 303.987.0676
Loanchip@hotmail.com
Your Lender for Life!
When people you care about need a mortgage,
for purchase or refinance, please do not keep me a secret.
Wednesday, June 22, 2011
Check out Denver Weekly Real Estate M...
Check out Denver Weekly Real Estate Market Update titled "Don't Expect Many More Homes On The Market" at http://ow.ly/5nWn3
Check out Denver Weekly Real Estate M...
Check out Denver Weekly Real Estate Market Update titled "Don't Expect Many More Homes On The Market" at http://ow.ly/5nWn3
Check out Denver Weekly Real Estate M...
Check out Denver Weekly Real Estate Market Update titled "Don't Expect Many More Homes On The Market" at http://ow.ly/5nWn3
Tuesday, June 21, 2011
Check out my latest real estate blog ...
Check out my latest real estate blog entry titled "Time Is Running Out" at http://ow.ly/5mMVo
Check out my latest real estate blog ...
Check out my latest real estate blog entry titled "Time Is Running Out" at http://ow.ly/5mMVo
Check out my latest real estate blog ...
Check out my latest real estate blog entry titled "Time Is Running Out" at http://ow.ly/5mMVo
Time Is Running Out. By Dan Polimino.
Can you believe that it's already the end of June? The big 4th of July weekend is next week, and then we really only have one more good month left in the selling season here in Colorado for real estate. I know what you're thinking, "What about August, it's still warm in August." Yes, that is correct, we still have the month of August, but traditionally, August is a slow month in real estate. You see, families are taking last minute vacations and parents are starting to think about getting their kids ready for school. If families were moving to a new school district, then chances are, they did this back in June or July to make sure that they were enrolled in time. While August and the beginning of September may again be slow this year, there is the fall to look forward to. I think that the second best selling season in Colorado is from mid-September to mid-November. So if you have not put your home on the market yet, don't panic; gear up for September.
If your home is still on the market and you are worried that time is running out, let's talk about what we can do to garner some interest.
1) Is it priced right? I find that most people are only about 3-5% off from having the right price. Sometimes, all that it takes is making a 4% adjustment to the price, and some people go from having no offers to multiple offers.
2) What has the feedback been saying about your home? Does it sparkle, and does it look its best? Maybe you need to replace the carpet, instead of giving people a carpet allowance. People can't see allowances for items that need to be replaced or repaired, but they do notice when you say that new carpet has been installed. It's all theater of the mind; make sure that your home has the WOW factor.
3) Put on a big marketing push for the final 30 days and pull out all the stops. This may require you adding some marketing dollars to help your realtor buy some over and above advertising.
Good luck and make the most of this last month.
Dan Polimino is a Realtor with Fuller Sotheby's International Realty. He can be reached at DPolimino@fullerproperties.com and www.coloradodreamhouse.com/denverpost
If your home is still on the market and you are worried that time is running out, let's talk about what we can do to garner some interest.
1) Is it priced right? I find that most people are only about 3-5% off from having the right price. Sometimes, all that it takes is making a 4% adjustment to the price, and some people go from having no offers to multiple offers.
2) What has the feedback been saying about your home? Does it sparkle, and does it look its best? Maybe you need to replace the carpet, instead of giving people a carpet allowance. People can't see allowances for items that need to be replaced or repaired, but they do notice when you say that new carpet has been installed. It's all theater of the mind; make sure that your home has the WOW factor.
3) Put on a big marketing push for the final 30 days and pull out all the stops. This may require you adding some marketing dollars to help your realtor buy some over and above advertising.
Good luck and make the most of this last month.
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, June 15, 2011
Check out Denver Weekly Real Estate M...
Check out Denver Weekly Real Estate Market Update titled "You Will Have Inspection Items" at http://ow.ly/5iuPY
Check out Denver Weekly Real Estate M...
Check out Denver Weekly Real Estate Market Update titled "You Will Have Inspection Items" at http://ow.ly/5iuPY
Check out Denver Weekly Real Estate M...
Check out Denver Weekly Real Estate Market Update titled "You Will Have Inspection Items" at http://ow.ly/5iuPY
Tuesday, June 14, 2011
Check out my latest real estate blog ...
Check out my latest real estate blog entry titled "Less Inventory" at http://ow.ly/5hori
Check out my latest real estate blog ...
Check out my latest real estate blog entry titled "Less Inventory" at http://ow.ly/5hori
Check out my latest real estate blog ...
Check out my latest real estate blog entry titled "Less Inventory" at http://ow.ly/5hori
Less Inventory. By Dan Polimino.
It's not your job to pay attention to MLS statistics, but it is mine. In May, there were still an incredibly low amount of homes on the market. In fact, according to Metrolist, there were only 17,000+ single family homes and condominiums on the market. Again, it's worth repeating how low that is for this time of year. If this were February, that would not surprise me, but since it is June, I am shocked. We should see around 22 or 23 thousand single-family homes and condos on the market about now. So, what's going on? What does this mean for buyers?
1) In most cases, I believe those people that had to sell already have. The rest have decided to stay off the market until conditions improve (BTW conditions have improved).
2) We have not seen the massive influx of foreclosures come on the market that everyone had been predicting. One can speculate that the whole foreclosure paperwork debacle at the end of last year may have held up properties from coming on the market.
3) Some people are getting mortgage relief and are figuring outways to stay in their homes or their personal situation has gotten better and maybe, they can afford to stay there now.
So what does this mean for buyers? First, it means less selection. Less selection means prices either remain stable or go up. Second, it means that buyers cannot delay in making decisions. Over the past three years there was absolutely no hurry to buy because chances are, the buyer's favorite house wasn't going to sell anytime soon. That has changed and we are seeing less and less days on market in most neighborhoods.
In summary, buyers need to be prepared this summer and in many cases, if they find the house they like, they need to pull the trigger right away. I have been involved in more than my fair share of bidding wars this summer. In fact, my buyers have had to compete for listings more this year than anytime in the last four.
Dan Polimino is a Realtor with Fuller Sotheby's International Realty. He can be reached at DPolimino@fullerproperties.com and www.coloradodreamhouse.com/denverpost
1) In most cases, I believe those people that had to sell already have. The rest have decided to stay off the market until conditions improve (BTW conditions have improved).
2) We have not seen the massive influx of foreclosures come on the market that everyone had been predicting. One can speculate that the whole foreclosure paperwork debacle at the end of last year may have held up properties from coming on the market.
3) Some people are getting mortgage relief and are figuring outways to stay in their homes or their personal situation has gotten better and maybe, they can afford to stay there now.
So what does this mean for buyers? First, it means less selection. Less selection means prices either remain stable or go up. Second, it means that buyers cannot delay in making decisions. Over the past three years there was absolutely no hurry to buy because chances are, the buyer's favorite house wasn't going to sell anytime soon. That has changed and we are seeing less and less days on market in most neighborhoods.
In summary, buyers need to be prepared this summer and in many cases, if they find the house they like, they need to pull the trigger right away. I have been involved in more than my fair share of bidding wars this summer. In fact, my buyers have had to compete for listings more this year than anytime in the last four.
Dan Polimino is a Realtor with Fuller Sotheby's International Realty. He can be reached at DPolimino@fullerproperties.com and www.coloradodreamhouse.com/denverpost
Friday, June 10, 2011
Thursday, June 9, 2011
Read my latest blog post titled "Will...
Read my latest blog post titled "Will the real FICO score please raise their hand!" at http://ow.ly/5e3lI
Read my latest blog post titled "Will...
Read my latest blog post titled "Will the real FICO score please raise their hand!" at http://ow.ly/5e3lI
Read my latest blog post titled "Will...
Read my latest blog post titled "Will the real FICO score please raise their hand!" at http://ow.ly/5e3lI
Will the real FICO score please raise their hand!
This is the best explanation I have seen on why credit scores vary so widely. Whether a consumer, real estate agent or mortgage professional, this information from Mindy Leisure, Director of Product Development, at Advantage Credit will help you understand why credit scores vary widely. Your questions and comments are always welcome.
Every year you do your due diligence and order copies of your credit reports so you can be sure that everything is in order and you've not been a victim of identity theft. Just for the heck of it you order your scores too. So far, so good - scores in the 700's. Now you're going to apply for a mortgage and the loan officer pulls your credit and your scores are in the 600's?! What happened? Possibly nothing...
Every industry has its own scoring models or scoring method. If you apply for a car, a credit card, a mortgage, even insurance - all use different scoring models and will have different scores, based on different parameters. Personal scores or those you get when you request your own credit report or scores, will almost always be the highest, but they are not used by any industry for any reason. I prefer to call them the "warm and fuzzy scores" to make us feel good about ourselves.
There are some scores that are not even true FICO (Fair Isaac Company) scores. One place you can get your FICO scores, short of a lender requesting it, is through www.myfico.com. But again, you receive personal FICO scores that are not industry driven.
What about www.annualcreditreport.com? This takes you to each individual bureaus website to obtain your credit. Those are FICO scores - right? Not necessarily. When you pull credit though Experian and order your scores you receive a Plus Score which is a score based on an in-house model developed by Experian not by FICO. The same is true for TransUnion; you are receiving an in-house model called a TransRisk score. If you want a FICO score from Trans Union you have to order it through their sister sight which is www.transunioncs.com. Equifax does provide a FICO score; however, they are still personal scores. The only way to obtain your mortgage scores is when you apply for a mortgage loan through a lender, bank, credit union, etc. They are set up with special codes that are used to pull your credit through the mortgage scoring models.
There are many websites that offer "credit scores". Be careful since they are usually not true FICO scores but rather in-house score models, otherwise known as FAKO scores.
We've all seen the rather annoying guitar playing, table waiting gentleman on television who's been a victim of identity theft and is touting "freecreditreport.com". This is an Experian based website and you will receive the Experian Plus score, which is not a FICO score. In addition, it's not free! You have to sign up and pay for their credit monitoring service to receive your "free" credit report. The TransRisk score is provided at "TrueCredit.com" and "PrivacyMatters.com". Both may offer valuable services, but again, they are not true FICO scores.
Be careful of "bankcard scores". Washington Mutual/Providian will send you your score on your monthly statement. This is a true FICO score, however, it is a revolving score which will be different from a mortgage score and they are usually 30 days old by the time the cardholder receives the statement. Scores can change daily so they may not be very accurate. Why so many scores and why even bother to look at your score if they're all going to be different? Each score model has factors that carry different weight depending on what they support. For example, when you apply for a credit card it will look primarily at past credit card history and balances, whereas a mortgage FICO score will lean towards previous or existing mortgage history.
When you sign up for a credit card or through some credit monitoring services you may receive a Vantage Score. This score was developed by the credit repositories (Experian, Equifax and TransUnion) and the score range is from 501-990. However, it is not accepted by Fannie and Freddie or used when applying for a mortgage loan.
Just remember, the most important scores are your FICO scores. If you decide to order your credit scores from any entity, if it just says "credit scores" and it doesn't say FICO you're not getting the real deal.
Chip Allen
Crestline Mortgage Bankers
A Division of Universal Lending Corp
Direct: 303.947.2109
Fax: 303.987.0676
Loanchip@hotmail.com
Your Lender for Life!
When people you care about need a mortgage,
for purchase or refinance, please do not keep me a secret.
Every year you do your due diligence and order copies of your credit reports so you can be sure that everything is in order and you've not been a victim of identity theft. Just for the heck of it you order your scores too. So far, so good - scores in the 700's. Now you're going to apply for a mortgage and the loan officer pulls your credit and your scores are in the 600's?! What happened? Possibly nothing...
Every industry has its own scoring models or scoring method. If you apply for a car, a credit card, a mortgage, even insurance - all use different scoring models and will have different scores, based on different parameters. Personal scores or those you get when you request your own credit report or scores, will almost always be the highest, but they are not used by any industry for any reason. I prefer to call them the "warm and fuzzy scores" to make us feel good about ourselves.
There are some scores that are not even true FICO (Fair Isaac Company) scores. One place you can get your FICO scores, short of a lender requesting it, is through www.myfico.com. But again, you receive personal FICO scores that are not industry driven.
What about www.annualcreditreport.com? This takes you to each individual bureaus website to obtain your credit. Those are FICO scores - right? Not necessarily. When you pull credit though Experian and order your scores you receive a Plus Score which is a score based on an in-house model developed by Experian not by FICO. The same is true for TransUnion; you are receiving an in-house model called a TransRisk score. If you want a FICO score from Trans Union you have to order it through their sister sight which is www.transunioncs.com. Equifax does provide a FICO score; however, they are still personal scores. The only way to obtain your mortgage scores is when you apply for a mortgage loan through a lender, bank, credit union, etc. They are set up with special codes that are used to pull your credit through the mortgage scoring models.
There are many websites that offer "credit scores". Be careful since they are usually not true FICO scores but rather in-house score models, otherwise known as FAKO scores.
We've all seen the rather annoying guitar playing, table waiting gentleman on television who's been a victim of identity theft and is touting "freecreditreport.com". This is an Experian based website and you will receive the Experian Plus score, which is not a FICO score. In addition, it's not free! You have to sign up and pay for their credit monitoring service to receive your "free" credit report. The TransRisk score is provided at "TrueCredit.com" and "PrivacyMatters.com". Both may offer valuable services, but again, they are not true FICO scores.
Be careful of "bankcard scores". Washington Mutual/Providian will send you your score on your monthly statement. This is a true FICO score, however, it is a revolving score which will be different from a mortgage score and they are usually 30 days old by the time the cardholder receives the statement. Scores can change daily so they may not be very accurate. Why so many scores and why even bother to look at your score if they're all going to be different? Each score model has factors that carry different weight depending on what they support. For example, when you apply for a credit card it will look primarily at past credit card history and balances, whereas a mortgage FICO score will lean towards previous or existing mortgage history.
When you sign up for a credit card or through some credit monitoring services you may receive a Vantage Score. This score was developed by the credit repositories (Experian, Equifax and TransUnion) and the score range is from 501-990. However, it is not accepted by Fannie and Freddie or used when applying for a mortgage loan.
Just remember, the most important scores are your FICO scores. If you decide to order your credit scores from any entity, if it just says "credit scores" and it doesn't say FICO you're not getting the real deal.
Chip Allen
Crestline Mortgage Bankers
A Division of Universal Lending Corp
Direct: 303.947.2109
Fax: 303.987.0676
Loanchip@hotmail.com
Your Lender for Life!
When people you care about need a mortgage,
for purchase or refinance, please do not keep me a secret.
Will the real FICO score please raise their hand! Your Voice Blogs Denver YourHub.com http://ping.fm/jMmuV
Wednesday, June 8, 2011
Incredible Tuscan Style Ranch For Sale in Golden, Colorado Your Voice Blogs Golden YourHub.com http://ping.fm/UUbC6
Tuesday, June 7, 2011
Check out my latest real estate blog ...
Check out my latest real estate blog entry titled "When Is It Too Much?" at http://ow.ly/5ccfW
Check out my latest real estate blog ...
Check out my latest real estate blog entry titled "When Is It Too Much?" at http://ow.ly/5ccfW
Check out my latest real estate blog ...
Check out my latest real estate blog entry titled "When Is It Too Much?" at http://ow.ly/5ccfW
When Is It Too Much? By Dan Polimino.
Did you know that in Costa Rica, the contract to buy and sell real estate is just two pages long? In fact, it's not even written by a real estate agent. All contracts in Costa Rica must be written by an attorney and it is quite an easy and painless transaction.
In Australia, the contract to buy and sell real estate is a generally a three-page contract. They don't even do inspections in Australia. They do a walk through, meaning the buyers walk through the house and if it looks good, then they buy it. There is no inspection period, inspection notice, resolution, and the endless stream of paperwork that we have here in the US.
In Colorado, which may be one of the worst states in the country for excessive real estate paperwork, we have a 15-page contract to buy and sell real estate. But that is just the tip of the iceberg. By the time you put a home under contract, including things like disclosures, inspection notices, amendments, addendums and other documents, you could sign well over two to three dozen different documents. Why? What is our problem? Why can't we make this an easy transaction like our foreign friends?
The answer is twofold: 1) We live in an incredibly litigious society (we love to sue each other) and 2) No one trusts anyone. Just last month, I was negotiating an inspection objection when the listing agent said to me, "Why won't your buyers just take our word for it?" I laughed and thought to myself, "Because my buyers don't trust you or anyone else for that matter." I was working with another agent on closing one of my listings and his buyers objected to just about everything you could object to in the real estate contract. They objected to title, to inspection, to CIC's, to survey, and would have objected to due diligence documents had we had any to provide. In fact, I am pretty sure these folks would not be able to go through the Burger King drive through without a team of lawyers and a week of research.
So what is the solution? How we do we make this process better? It seems as though we just keep adding more and more legal documents every year for buyers and sellers to sign. When is it too much? I can't imagine that we can continue to legislate every possible circumstance that COULD go wrong in a real estate contract? I would love to hear your suggestions and I will print the best ideas in my column next.
Dan Polimino is a Realtor with Fuller Sotheby's International Realty. He can be reached at DPolimino@fullerproperties.com and www.coloradodreamhouse.com/denverpost
In Australia, the contract to buy and sell real estate is a generally a three-page contract. They don't even do inspections in Australia. They do a walk through, meaning the buyers walk through the house and if it looks good, then they buy it. There is no inspection period, inspection notice, resolution, and the endless stream of paperwork that we have here in the US.
In Colorado, which may be one of the worst states in the country for excessive real estate paperwork, we have a 15-page contract to buy and sell real estate. But that is just the tip of the iceberg. By the time you put a home under contract, including things like disclosures, inspection notices, amendments, addendums and other documents, you could sign well over two to three dozen different documents. Why? What is our problem? Why can't we make this an easy transaction like our foreign friends?
The answer is twofold: 1) We live in an incredibly litigious society (we love to sue each other) and 2) No one trusts anyone. Just last month, I was negotiating an inspection objection when the listing agent said to me, "Why won't your buyers just take our word for it?" I laughed and thought to myself, "Because my buyers don't trust you or anyone else for that matter." I was working with another agent on closing one of my listings and his buyers objected to just about everything you could object to in the real estate contract. They objected to title, to inspection, to CIC's, to survey, and would have objected to due diligence documents had we had any to provide. In fact, I am pretty sure these folks would not be able to go through the Burger King drive through without a team of lawyers and a week of research.
So what is the solution? How we do we make this process better? It seems as though we just keep adding more and more legal documents every year for buyers and sellers to sign. When is it too much? I can't imagine that we can continue to legislate every possible circumstance that COULD go wrong in a real estate contract? I would love to hear your suggestions and I will print the best ideas in my column next.
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, June 1, 2011
Attractive 35 Acre Colorado Ranch with 25 Acre Ski Lake Your Voice Blogs Denver YourHub.com http://ping.fm/wJi3d
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