Touring Homes and Neighborhoods

There is a big difference between a foreclosure and a short sale.

What is a Foreclosure?

A foreclosure is where the property is already owned by the bank, and the bank is now the seller. The former owner couldn’t make his house payments, so the bank (his mortgage lender) took the house back. The good thing about a foreclosure is the bank/seller has already determined what their bottom line price is.  They already know what they can or cannot accept. Typically, they will negotiate some, and can usually close within 45-60 days.  Generally speaking, foreclosures are the less risky and less painful of the two.

What is a Short Sale?

A short sale is where the property is in danger of foreclosure, but it hasn’t happened yet.  The homeowner cannot make his house payments.  He is behind at least 30 days.  He may still be living in the home.  He plans to go to his bank and ask “will you take a payoff SHORT of what I actually owe?”  Hence, the term Short Sale.

Short sales can be difficult.  Mr. Homeowner always doesn’t know IF his bank will accept a payoff short of what he owes.  So, his advertised price may not even be what his bank will allow it to sell for.  Another challenge; will the bank allow a closing to happen anytime soon?  I’ve heard of short sales taking up to 11 MONTHS to close. Ouch!  Banks are notorious for taking a long time to negotiate these deals.

What I tell Buyers is if you can stomach the uncertainty of price, the long wait to close, and not knowing until the last minute if this transaction will even close, then go for the short sale!  But prepare yourself for frustration and possible disappointment.  If you want a good deal without that hassle and risk, stick to the foreclosed properties.

The actual act of going out and looking at houses seems pretty fun, especially when you watch buyers and Realtors on TV. Usually, it’s some of the most rewarding time we get to spend as Agents. It’s the time when you truly get to know your buyers, what they like, and – more importantly – who they really are. Unfortunately, what TV doesn’t show and the public doesn’t see is all the preparation that occurs before getting to the point where you’re actually at a house and unlocking the door.

In a previous article, we talked about buyer needs assessment; that article gives you an inkling of the type of homework that needs to happen before going out and looking at houses. Everything from mortgage pre-qualification and area tours to getting ready to show houses takes time, preparation, and knowledge. Once the Realtor and client have an understanding of what they’re looking for it’s time to get out and see some houses, but even that step requires significant preparation.

Preparing to show

Once your search parameters are established and we’ve found the homes that match them, the process of setting up or scheduling the showings of the homes you’d like to tour begins. Setting up showings is a process that makes our tours as efficient as possible for all parties involved, and most certainly for you, our buyer.

We first determine what the listing agent has allowed for us to gain access to the Seller’s home, via the Seller’s instructions in the MLS. For instance, which days and times the Seller is willing to show the home, and what, if any, showing restrictions the Seller has placed on the home for viewing. For example, is a pet present at the home, and will it need to be removed before allowing a showing? Or is there a small child who lives in the home who has a sleeping schedule that will need to be honored?

At this point, we sit down and map out the most efficient route in conjunction with seller restrictions. Unfortunately, we aren’t able to go from house to house in the most efficient manner in terms of distance if a seller won’t allow showings within a certain time frame, so we will often need to double back around and see that house at a later time. These types of hurdles require organization, especially in combination with the homebuyer’s schedule.

Hitting The Road

Once the trip is planned, there are still more options based on the buyer’s preferences. For instance, would you rather drive in your own car, or ride in a car with one of the real estate brokers on our team? We can either agree to meet at the first home, or meet at a mutually agreed upon location where you can hop in the car with one of us, and we’ll drive you to your first showing. Our personal preference is that you ride with us. There are several reasons behind this preference. First off, it’s just more efficient: there’s no getting separated, no awkward U-Turns, etc. This also allows us to use the time in between seeing houses to discuss what the buyers liked, and – more importantly – disliked about the previous house. Additionally, while driving around we get a better sense of what aspects of a neighborhood appeal to you.

What to Look for When Touring a House

Once we arrive at the first home, we go to the front door and knock a ‘courtesy knock’ to make sure the Seller is not home, or if they are, that we aren’t walking in on them unexpectedly. Ask any Realtor – seriously, ask any Realtor that has shown a significant number of homes about their walking in on a seller story, we all have one. Once that is confirmed, we will use a designated lockbox, with the key to the home inside the box, to gain access to the home. We then enter the house and begin your private tour. It’s important to note that we are actually in someone’s home, and it’s pertinent that we treat the home with the appropriate level of respect; the home is there to be viewed. In other words, don’t let your children play with toys, pound on the piano, etc… We are there to see the house, not to try out the owner’s stuff.

It’s important for you, the buyer, to communicate your thoughts about the home to your agent while you are on the tour. This is a key step for several reasons; we learn more about what you are looking for from what you don’t like about a house than what you do like. Learning what you dislike helps us hone in on what you really want.

Another reason to give input is that after we complete our showings, your Realtor will be bombarded with a stream of requests for feedback from the seller’s agents. The more input the agent receives, the more honest feedback they can provide, which is important for the sellers. This feedback helps them with pricing as well as staging, and it lets them know if there are issues outside of the things they’ve noticed that are keeping their house from selling.

Although it would be nice to find your ideal home on the first trip out, that is certainly not our expectation or experience. Each trip out to look at houses helps us narrow into the home that best suits your needs.We will continue this process until we find you a home in which you would like to make an offer.

Giving Feedback After The Showing

After any showing, the listing agent will request both your feedback as the Buyer and our feedback as the real estate professional. This feedback is vital to the Seller and to the current real estate market, as it allows the Seller to make changes to the home itself, or adjust the list price of the home to one in which the current market supports. Typically we will ask your opinion of the home, whether it’s positive or negative, as we are leaving. Positive feedback could indicate a potential interest in the home, and negative feedback will allow the Seller to make any changes to the home or price of the home to help it sell to another Buyer. This feedback also has the potential to open up a dialogue with the seller’s agent. For example, let’s say you do have an interest in a home but hesitate given its price in conjunction with the improvements you’d have to make. That kind of feedback sometimes elicits a response from the seller to “Make an offer.” As you can see, giving honest feedback is important. The more transparent you are with your agent, the better we can do to meet your expectations.

In Summary

It’s fitting to think about showings like an iceberg. The small part the public sees is fun and interesting. The larger part they don’t see is time-consuming, laborious and methodical. Having said that, the difficult part of showing properties is usually overshadowed by the satisfaction we find in helping good people find great homes.

Additional Resources:

Lynn Pineda wrote a great article entitled, 8 Things a Realtor Does Behind Your Back? This is a great read.

People come to the Colorado Springs area from all over the country… the world for that matter. They move here primarily because of our military and technology companies, but also just for the sheer beauty and reasonable cost of living. The Pikes Peak region is a popular place. One of the first things people ask for (especially from the midwest or south) is for a Pikes Peak view! “America’s mountain” sometimes feels like she’s right on top of our beautiful city! Since the angle and view of Pikes Peak can vary so much, it can be a big factor in determining where you should buy a house.

I frequently tell incoming clients that there is a trade-off between the view versus the feeling of living in the mountains. Once you get pretty far west, it’s actually more difficult to see Pikes Peak because the other mountains stand in the way. So, I just wanted to give you a little perspective on our beautiful mountain from various angles. As you look through them, I’m sure you can hear “for purple mountain majesty, above the fruited plains..” playing in your head. Katherine Lee Bates wrote America the Beautiful lyrics, inspired by Pikes Peak, actually originated as a poem called “Pikes Peak”; later it was put to music with Samuel A. Ward of Grace Episcopal Church in NJ.

This beauty was taken from eastern El Paso County in the Calhan/Peyton area as I headed back into town after showing houses. As you can see, Pikes Peak looks like a lone, towering peak from this distance, the rest of the mountain range hardly discernable. Note the cows and wide open spaces… if you’re looking for this type of land and view, maybe this is the area for you!

Head just a bit further west into Colorado Springs. This shot it taken from the Briargate area. Obviously, a recent snowfall helps define the lines on the mountains, but it’s also just a little more clear the closer you are.

This one is on the way up Ute Pass. This might be the type of “peek-a-boo view” you might expect if you land in a home on the west side of town (west side is pretty much west of I-25, our major interstate… but the further west the better for most with this preference).

Not sure I will call this saving the best for last, but I have a strong opinion on the beauty in Woodland Park… our mountain town, just 20-30 minutes “up the pass” west of Colorado Springs. The perspective on Pikes Peak is completely different. The mountain is far deeper than it seems from the Colorado Springs area. I’ve hiked the Crags from this backside and you can see to the west for miles.

Needless to say, I love this area, the weather, the friendliness, and so much more… but Pikes Peak is probably our most notable landmark, with Garden of the Gods, the United States Air Force Academy and the Broadmoor hotel as other major draws to the area. I’m not sure if this helps you make a decision about where you will end up buying a home, but in any case, I’m sure you’ll love the area and our mountains almost as much as I do!

There is a lot of confusion about the differences between condos vs townhouses. They share many similarities, and this seems to be the source of this confusion. Even amongst real estate professionals we often hear more opinions than facts. If you are considering buying a condo or a townhouse, it is important for you to understand the different real estate terms.

So, let’s start by clarifying, condominiums or condos are a type of real estate ownership. Whereas, a townhouse is an actual style of building.

A condominium is best described as “the concept of ownership of a single unit of air space within a multi-unit dwelling, along with co- ownership of any common amenities (recreation centers, pools, etc…) and common areas of the structures and land among all unit owners.”

Townhouses are generally attached structures of 2 or more stories with common walls. These are a version of the old “Brownstones or “Row Houses” made popular on the east coast.

Let’s Review the Similarities:

Townhouse ownership means you own the structure along with any associated land. So the owner of a townhouse can have absolute ownership, like a single family home.

Here’s where things get a little confusing. It is not unusual to have “condominium ownership” of a townhouse. In other words, the structure is a “townhouse” while the ownership is “condominium”.

Let’s Compare the Differences:

Ownership and common areas are the primary differences between condos and townhouses. You can actually have absolute ownership of a townhouse as well as the land (yard) associated with it. In a Condominium you only own the “air-space” inside of your particular unit.

The owners of a condominium development each own an equal share of the “General Common Elements”. This includes the structural elements of the building roof, walls, halls, clubhouse, pool, etc…

In a townhouse community, any common elements are deeded to the Home Owners Association (HOA). The townhouse owners are a part of the HOA but don’t own an interest in these elements.

“Limited Common Elements” are where we see a departure between townhomes and condos. Limited Common Elements are only seen in condo ownership. These are things that are intended for the use on the individual unit owners. Parking spaces, garages, balconies and patios are examples of Limited Common Elements. Although these are owned by all of the unit owners, they are limited to the use of specific owner/s.

In a townhouse, the balcony and garage are actually owned by the townhouse owner. The exception to this would be if a “townhouse” style home is owned as a “condominium”.

Summary:

Both condos and townhouses are what is known as “Common Interest Communities”. A “Common Interest Community” is one where common real estate is maintained through assessments and dues.

Because of the Common Interest Community designation, we see a lot of confusion. The easiest way to remember the differences is this: A condominium is a form of real estate ownership and a townhouse is an architectural style.