Kelly has been licensed since 2005 and loves every aspect about being a realtor. Growing up in the industry has helped her understand the business. After being a realtor and involved in new construction in Dallas, Kelly decided to join the family business in Colorado. Her positive attitude and easy-going personality combined with excellent problem solving skills keep buyers at ease in difficult situations. Some of her hobbies include skiing, spending time with family and friends, and checking out hot spots in our beautiful state.

Understanding Dates & Deadlines in the Real Estate Contract

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In residential real estate, the Contract to Buy & Sell can be a bit confusing for first timers, especially because it’s 19 pages long. The dates & deadlines are covered even before the sales price. If you understand what those dates mean, you will understand 75% of the contract. There are 36 possible deadlines, but you usually don’t use all of them.  You can find an example of the current deadline chart at the end of this blog.

Item No. 1 - Alternative Earnest Money Deadline

This is the date that your Earnest Money deposit must be turned in to either the Brokerage or Title Company. The next 7 dates are about the Title Policy.

Item No. 2 - Record Title Deadline

This is the deadline in which the Title Company must provide the Buyer, a current commitment for an owner’s title insurance policy. This will consist of copies of any plats, declarations, covenants, conditions & restrictions burdening the property. And copies of any other documents listed in the Schedule of Exceptions in the Title Commitment that was furnished to the Buyer.

Item No. 3 - Record Title Objection

The Buyer can object to the Record Title Deadline here. This can be based on any unsatisfactory title condition, in the Buyers sole discretion.

Item No. 4 - Off-Record Title Deadline

The Buyer must receive, on or before this deadline, true copies of all existing surveys in the Seller’s possession pertaining to the Property and must disclose to Buyer all easements, liens or other title matters not shown by public records, of which the Seller has actual knowledge.

Item No. 5 - Off-Record Title Objection

This is similar to the Record Title Objection. The Buyer can object & terminate if unsatisfied with documents provided in item No.4.

Item No. 6 - Title Resolution Deadline

This is the date in which all title objections must be resolved.

Item No. 7 - Right of First Refusal

This date applies to situations, where an outside entity, like an HOA, has to approve a Buyer’s contract. If the entity who holds this right, disapproves the contract, the contract terminates.

Item No. 8 - Association Documents Deadline

The Listing Agent typically handles this for the Seller. This is the deadline in which the Buyer must receive all current HOA documents. This is VERY important for Buyers to review, especially in Townhome or Condo Communities. This is where buyers can find pet, design, parking, and many other rules and restrictions.

Item No. 9 - Association Documents Objection Deadline

The Buyer has the right to terminate on or before this deadline, based on any unsatisfactory provisions in the HOA docs.

Item No. 10 - Sellers Property Disclosure Deadline

Sellers typically complete this document before listing their home for sale. This is the Sellers disclosure on any issues or improvements that they have any knowledge of pertaining to the home. There is no objection for this because it’s simply a disclosure. The Buyer will have their own inspections to get the current facts on the property.

Item No 11 - Loan Application  Deadline

This is pretty self-explanatory. Buyers have usually gone through this process before submitting an offer. It’s the deadline in which the Buyer must submit a full loan application to the lender.

Item No. 12 - Loan Objection Deadline

This contract is conditional upon the Buyer determining, in Buyers sole discretion, whether the new loan is satisfactory. This includes payments, interest rate, terms, conditions and cost. This deadline is for the sole benefit of the Buyer.

Item No. 13 - Buyers Credit Information Deadline

In the case of owner carry financing, this deadline applies to the Buyer supplying the Seller with financials, a credit report, etc...

Item No. 14 - Disapproval of Buyer’s Credit Information Deadline

This is the Seller’s opportunity to decline the Buyer based on the information provided.

Item No. 15 - Existing Loan Documents Deadline

This is only applicable for assumptions; by this deadline, the Seller must provide all current loan documents to the Buyer for review.

Item No. 16 - Existing Loan Documents Deadline

Once the Buyer receives the Seller’s current loan information, they have the right to review the terms and object or decline.

Item No. 17 - Loan Transfer Approval Deadline

This only applies to assumptions; this final deadline applies to the lender approving the assumption.

Item No. 18 - Seller of Private Financing Deadline

This deadline applies if any portion of the financing of the transaction is by private or seller financing. The Buyer must decide by this date if the financing being offered is acceptable.

Item No. 19 - Appraisal Deadline

This is the date in which the Buyer must receive an appraisal of the property. It’s probably best for the Buyer Agent to communicate with the lender as the deadline approaches because appraisers tend to be behind during the busy season. This does not apply to VA loans.

Item No. 20 - Appraisal Objection Deadline

Either the appraisal matches the price or it doesn’t. By this deadline, the Buyer must submit in writing that the valuation is less than the purchase price. At this point, a couple of things can occur: a) the Seller can come down in price to match the valuation; b) the Buyer can bring the difference in cash or c) the Contract can terminate.

Item No. 21 - Appraisal Resolution Deadline

If there is an appraisal objection, the issue must be resolved by this date or the contract terminates.

Item No. 22 - New ILC or New Survey Deadline

An Improvement Location Certificate or Survey is usually only ordered if the lender requires it, or if the Buyer has questions as to where the exact property lines are. The Buyer must receive either document by the deadline.

Item No. 23 - New ILC or New Survey Objection Deadline

The date when the Seller must receive a written description of any matter that is unsatisfactory and the Buyer requires the Seller to correct.

Item No 24 - New ILC or New Survey Resolution Deadline

If there is a ILC or Survey objection, the issue must be resolved by this date or the contract terminates.

Item No. 25 - Inspection Objection

The Buyer must have all home inspections completed by this date. Seller must receive a written description of any unsatisfactory physical condition that the Buyer requires the Seller to correct.

Item No. 26 - Inspection Resolution Deadline

If an objection is received by the Buyer, the Seller has until this date to respond in writing, addressing the Buyers repair requests. The Buyer has to agree to the terms or the contract terminates.

Item No. 27 - Property Insurance Objection Deadline

Prior to this date, the Buyer must obtain as many bids as they’d like for home owner’s insurance. If the insurance does not meet their satisfaction, they must terminate in writing by this deadline.

Item No. 28 - Due Diligence Documents Delivery Deadline

If the box is checked, the Seller agrees to deliver copies of the requested documents pertaining to the property. This can include any leases, completed contract work, warranties, permits, etc.

Item No. 29 - Due Diligence Documents Objection Deadline

If the Due Diligence Documents are not supplied to the Buyer or are unsatisfactory, the Buyer can terminate or Object. If the Buyer Objects, they must deliver a written description of unsatisfactory documents that they require the Seller to correct.

Item No. 30 - Due Diligence Documents Resolution Deadline

If there is a Due Diligence Document Objection, the issues must be resolved by this date.

Item No. 31 - Conditional Sale Deadline

If the Buyer has a property to sell before they can complete the purchase, list that property here. If it is not sold and closed by this date the Buyer may terminate.

Item No. 32 - Closing Date

This is when the Seller delivers the deed to the Buyer. The Closing date is specified here or by mutual agreement. The hour and place will usually be designated by all parties.

Item No. 33 and No. 34 - Possession Date and Time

This is when the Buyer gets keys and the Seller is no longer allowed to enter the property at their own discretion. This usually occurs at closing.

Item No. 35 and No. 36 - Acceptance Deadline Date and Time

This is the day and time in which the Buyer requires the Seller to respond to their offer. If the Seller is countering, a new deadline is established on the Counterproposal.

These dates and deadlines might seem so overwhelming when reviewing the contract, but they all serve an important purpose. Read more about steps to buying a house, or steps to selling a house, or simply give me a call with your questions about buying and selling houses.

Dates and Deadlines Summary Chart

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Out of Pocket Expenses for Buyers

Out of Pocket Expenses for Buyers

When purchasing a home, you know the sales price you have negotiated, but when you make it to the closing table your might be surprised at some of the other expenses involved in the process. Here is a detail explanation of all of the out of pocket expenses you might encounter when you buy a house.

Earnest Money Expense

The first out of pocket expense that you’ll have is the earnest money. The earnest money shows the seller that you are committed to the purchase & aren’t out submitting offers on other properties. You give the earnest money check to your Broker or Title Company and it’s kept in escrow until the purchase is finalized. This money will go towards your closing cost or down payment at closing. There are instances throughout the buying process, where this is refundable to the buyer should the deal fall through.

Inspection Fees

The next out of pocket expense are inspection fees. There are many types of inspections you may wish to have done on your home which might include:

  • Basic home inspection to determine the condition of the home. Usually runs $300-400, depending on the size & age of the home.
  • Radon Test. This determines if your home has unsafe levels of Radon gas. Usually about $175.
  • Sewer Line Scope. To see if there are any issues with the current sewer line. Usually about $125- 200.
  • Lead Based Paint Assessment. This determines if the home contains lead paint & applies to anything built prior to 1978. This usually runs about $300.
  • Meth Lab Test. This will check to see if there has ever been methamphetamine in the home. This starts around $600 & can go to about $1200.
  • Mold Test to see if your home contains dangerous mold. This usually runs about $300. There’s also Well & Septic testing if the home has them.

These fees are to be paid in full at the time of service.

Down Payment Expense

The next expense is your down payment. This is a percentage of the sales price of the home, which you pay at closing. VA loans do not require any down payment. There’s also first-time buyer programs that provide down payment assistance for buyers that qualify. The most common loan for first timers is FHA. This requires 3.5% down payment due at closing. Conventional loans start with a minimum of 5% down payment and go up from there.

Closing Costs

The last out of pocket expense is closing costs. These are fees paid at the closing of a Real Estate transaction. This pays for things like points, appraisal and title company fees, taxes, pre-paids and many other important items. Luckily, you will know what to expect ahead of time, because lenders will provide a cost analysis worksheet with estimated fees.

If you have any questions about out of pocket expenses, please give me a call!! I’d love to help anybody that’s beginning or curious about this process.

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A Seller's Guide on How to Handle Showing Feedback

A Seller's Guide on How to Handle Showing Feedback

Selling your home can be stressful at times. The sign is in the yard, the lock box is on the door & your house is finally active in the MLS & third party sites. Now, you’re eagerly waiting to hear what potential buyers thought of your property. Feedback is imperative for sellers, especially for those whose homes might be taking a little longer to sell than anticipated. Here is my best advice when you start getting feedback from showings.

  • First & foremost, don’t take comments too personally. If somebody says that your home smells bad, you can fix the problem ASAP, so that other potential buyers don’t have the same issue.
  • Focus on the things that are changeable. Paint, lighting, temperature, decor and staging are all pretty easy fixes. There is no sense to fret over the comments about the busy street, lack of 3 car garage or placement of power lines.
  • Feedback helps both the Realtor and the Seller. If I get a comment stating that the buyers didn’t like the paint color in the kid’s bedroom, I can call my seller to see if they’d be willing to fix that problem.
  • If a showing agent has trouble with the key & had a hard time accessing the property, we want to know. Same goes for odors, décor, how the home showed, etc.
  • If 10 potential Buyers go through a property with similar feedback, then it’s probably time to address and fix the problem, if you can.
  • At times, you’ll get Buyers who forget or ignore your feedback requests, that’s why you have us to chase them down!
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Tis The Season For Holiday Lights in Colorado Springs!

Tis The Season For Holiday Lights in Colorado Springs!

‘Tis The Season For Holiday Lights!

It’s that time of year again! Last year was my first experience in driving around town specifically to look at homes with computerized Christmas light shows. It was awesome!! I’ve put together a list for any of you who may want to get out this year & give it a go. I also wanted to mention some “holiday light etiquette” because it’s easy to forget basic things when you’re in the moment.

- If homes are crowded with long lines of cars, please just watch for one cycle.

- Don’t block driveways of neighbors who need to come & go from their homes.

- Park on the opposite side of the street & turn your lights off, but leave on your parking lights.

- A couple of homes collect donations for various charities. Feel free to donate.

- Most homes have lights that sync with music. I have the list of homes below with stations if they were provided online. Otherwise, there should be a display out front with the appropriate station.

3148 Deergrass Place – 88.5 FM

9075 Musgrave Street – 89.9 FM

2635 Clapton Drive – 107.3 FM

3565 Windjammer Drive – No station listed.

8210 Caravel Drive - 93.7 FM

1894 Whitehorn Drive – 88.9 FM

1263 Shrider Road – 107.7 FM

7790 Fargo Drive – 93.9 FM

6690 Barrel Race Drive – 101.9 FM

4910 Nugent Drive – these owners will be collecting canned goods for Christmas. No station listed.

2168 Riverwalk Parkway – No station listed.

2570 Nadine Drive – 93.5 FM

2601 Rigel Drive – 97.7 FM

I hope this map will make your viewing experience a little easier!! If you would like to look for a home this holiday season, feel free to give me a call. Happy Holidays!!

Holiday Lights in Colorado Springs

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Why Buyers Should Get Sewer Inspections

Why Buyers Should Get Sewer Inspections

A lot of first time homebuyers may not be aware that sewer inspections are not part of your routine home inspection. This is so important. Buying a home & moving is stressful enough as it is. Finding out that you have a bad sewer line after closing would just add to that list. Sewer line inspections can range from about $150-$300. Plumbers will inspect the line to see if its bellied, split, offset, collapsing or clogged with tree roots. They will also check the material of the line as well. This has become important because construction in the 1950’s, utilized a tar like cardboard called Orangeburg. This type of material is known to just fall apart & collapse resulting in very costly repairs.

Even if your potential dream house wasn't built in the 1950's, a sewer inspection might be a worthwhile cost. If there are issues encountered during the inspection, you’ll want to be sure to have your plumber record a video of the line so that it can be provided to the sellers. Sewer line replacements or back-ups can cost thousands of dollars and the repair or replacement of the line is usually EXCLUDED by most insurance companies. Sewer inspections are easy. You can ask your Realtor for a recommendation, or call a plumber of your choice. It's worth the peace of mind & security, knowing that there aren’t any hidden issues in your new home. 

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