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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Things to Do in Colorado Springs this Weekend (June 10-June11)

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Things to Do This Weekend

David Blaine Live! - Sat June 10, 7:30am - 9:30pm, Pikes Peak Center for the Performing Arts 190 South Cascade Avenue

Admission: $33.75 – $350. Be awed and amazed by one of the greatest magicians of our lifetime. For more info, visit: Pikes Peak Center.


Solar Eclipse Workshop - Sat June 10, 10:00am - 12:00pm, PPLD - Rockrimmon Branch 832 Village Center Drive


Admission: Free. There's a big solar eclipse event happening in August, and the PPLD with the Space Foundation are hosting this workshop to prepare. Join us to learn about eclipses and make viewing tools. For more info, visit: PPLD.


Protospiel: Game Designer's Day - Sat June 10, 1:00pm - 8:00pm, Petrie's Family Games 7681 N. Union Blvd.

Admission: Free. Are you into board games? Maybe you want to test prototypes for new games. Head on over to Petrie's Family Games to do just that. For more info, visit: Petrie's Family Games.


World War II B-17 Tours & Flights - Sun June 11, 10:00am - 5:00pm, Colorado Springs Jet Center 1575 Aviation Way

Admission: Free for military, $10 individual (kids under 8 free), $20 family. Take a tour of one of the few remaining flyable WWII B17s. For more info, visit: EAA.


Springs Spree - Sun June 11, 10:00am - 7:00pm, America the Beautiful Park 126 Cimino Drive

Admission: Free. Celebration of all things outdoor! Sports, activities, food, music, and entertainment all happening Sunday at America the Beautiful Park. For more info, visit: Springs Spree.

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How Do You Determine Market Value?

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As a Realtor people often ask me how market value is determined. Sellers want to know their market value so they can decide on a fair asking price. Buyers want to know the market value of their home so they can see that the price of the home is justified. Here is the advice that I usually I give them.

Factors that Influence Market Value

Back in school, they taught us that market value is "what a willing buyer will pay and a willing seller will accept". That's definitely true. Here are some factors that influence market value.

1. Inventory - In a competitive market like we're in now, there aren't as many homes for sale. Supply is low and demand is high, creating bidding wars. A willing buyer will pay more for a property now than they would have a few years ago. Many people are desperate to secure the sale and they are willing to pay a higher price to beat out the competition. Market value is redefined each time buyers write an offer.  

2. Home Sales - Recent home sales in the area also influence market value. You may have heard the term "comparable properties". The definition of comparable properties is homes nearby which are similar in size, age and condition to the subject property. These comparable homes will definitely be used to establish a home's market value. Buyers will look to see what homes have been selling for lately and will often base their offers on such. And appraisers will use these comparable sales to justify the current contract price.

Factors that Do NOT Influence Market Value

1. What a seller originally paid for the property does not determine it's current market value. It doesn't matter if they got a screaming deal on it just two years ago. It doesn't matter if they paid a crazy low price when they bought the home. They could have paid five dollars for the property. You are not going to benefit from the great deal they once got.

2. What your relatives in another state think the price "should be" doesn't determine market value. If your parents live in Texas, chances are they paid less for their 4,000 square foot, all brick rancher on 2 acres of land than you're going to pay for that 1,700 square foot 2-story home in Colorado Springs. Conversely, your sister in California paid more for her $925,000 townhome in Santa Barbara than you will pay for a spacious single family home in Colorado. An accurate estimate of market value needs to compare apples to apples, and we all know that home prices can really vary across different regions.

3. The public assessor's site property valuation is not actual market value. I don't know why, but the assessor's estimate is always under market value. And really, that's a good thing. Our property taxes are calculated on this, and if the county assessor thinks a home is worth less, then our property taxes are lower. Hooray!

4. Public internet sites are not always accurate with their valuations. For example, Zillow posts home values on their site and call these valuations "Zestimates". I constantly tell buyers and sellers not to believe the Zillow Zestimate they have seen. They are always low. To prove my point, NBC News recently reported a class action lawsuit was filed against Zillow for undervaluing properties. It turns out they are obtaining these valuations from the county assessors site. Interesting!

Realtors, the Best Resource for Market Value

Anyone can give you an idea of what they think your home will sell for, but they won't always be right, and it won't always be supported by data and facts. The only way to get an accurate determination of the market value of your home is to call a professional. Realtors live and breathe the housing market, and giving homeowners a market value on their home is a regular part of our job. When I meet with a homeowner to do a market value analysis, I will not only give you a value based on data and my many years of experience, but I will tell you how I arrived at the market value and all of the factors that were considered.

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Things to Do in Colorado Springs this Weekend (June 3-June 4)

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Lots of local events happening in Colorado Springs this first weekend of June! Whether you want to get outside, learn something new, or relax with some wine we have it all around town. 

Things to Do This Weekend

Crusin' The Gods: Summer Saturday Series - Sat June 1, 11:00am - 2:00pm, Bird Dog BBQ 4153 Centennial Blvd

Admission: Free. Classic car cruise-in through Garden of the Gods Park and enjoy BBQ from Bird Dog. For more info, visit: Cruisin' the Gods.


Bee Keeping Workshop - Sat June 3, 9:00am - 11:00pm, Environmental Services Building 3255 Akers Dr

Admission: $7/person. Curious about keeping bees of your own? This is the perfect workshop for you. For more info, visit: The Conservation District.


2017 Manitou Springs Colorado Wine Festival - Sat June 3, 11:00am - 5:00pm, Memorial Park, Manitou Springs 502 Manitou Ave.

Admission: $35. Enjoy sampling wine from 30 Colorado wineries along with music, food, and vendors. For more info, visit: Eventbrite.


6th Annual Doggie Dash 5K Walk/Run - Sun June 4, 8:30am - 12:00pm, Coutura Design Inspirations 6380 Corporate Centre Circle

Admission: $30.00. Run, walk, or stroll at the Doggie Dash hosted by All Breed Rescue & Training. Prizes for top three finishers and goodie bags for first 200 participants. For more info, visit: All Breed Rescue & Training.


City Summer Fest - Sun June 4, 11:00am - 11:00pm, Colorado Springs Event Center 3960 Palmer Park Blvd.

Admission: Free, $25 all day rides. Music, food, and fun all at the City Summer Fest from June 2-18. Big By Toy Expo today with cars, bikes, and BMX performance. For more info, visit: City Summer Fest.

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3-D Real Estate Tours with Matterport Camera

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Springs Homes just became the first real estate company in Colorado Springs to own “The Matterport Camera”. We have started to use the “Matterport Camera” to create 3-D spaces of our for-sale listings. We are then able to share these spaces online with potential home buyers.

The “Matterport Camera” is a combination camera and measuring device. It scans and measures spaces as it takes pictures. Springs Homes has been at the cutting edge of residential real estate technology from the early days of the internet, 1997 to be exact. We were early adopters of Virtual Tour technology when it was difficult to implement, we jumped into producing videos of our listings when it wasn’t easy to implement either. The “Matterport Camera” changes the game, this technology is very straightforward to use and the results are easy to implement.

The camera weighs 6.5 lbs. and has a rechargeable battery which lasts 8 to 10 hours. A 2,000-square foot residential real estate shoot takes 45 minutes to an hour, so battery life is not an issue. The camera has six lenses and six sensors and sits on a regular tripod. The camera has a small internal motor which allows it to rotate 360 degrees for each scan. You communicate with the camera through a wireless connection to a tablet on the matterport app.

matterport camera

Once the camera is setup and you are shooting, the app walks you through putting the space together. After each scan, the camera sends its data back to the app, which then aligns the scan and displays a photographic representation of the floorplan. If the camera doesn’t have enough information the app shows a black space in those areas where it needs more data.

matterport camera interface

We generally move the camera 5 to 8 feet in between scans. As you are scanning the operator must mark mirrors and windows, this helps the camera understand how to treat these surfaces. This is important because the camera sees through windows, so it tries to incorporate what it sees outside into the 3D model. By marking the windows, the app knows to ignore what it sees outside when compiling the floorplan. We deal with the outside by using 360-degree views.

Once the entire interior space has been scanned, the “Matterport Camera” has a feature called “360-view”. This enables the user to go outside and photograph a 360-degree image of the outdoor spaces, this is done without scanning for walls. This comes in handy during the post-production phase. You can start your tour outside showing the neighborhood or landscaping features. During the post-production phase, we are then able to link back to the indoor space.

Once you finish the entire project, the tablet is disconnected from the camera and re-connected to the internet. At this point, we upload the project to Matterports servers. Once uploaded, the images are processed and the basic tour is produced. It’s important to talk about the quality of the images this camera produces, they are really nice! The camera shoots 7 exposure brackets and turns them into HDR images. This is why the windows are not “blown out” except in extremely bright conditions. The stitching, white balance and color correction are all handled by matterport so the scans look balanced and consistent.

The tour is ready for further editing and or release in a couple of hours after upload. We work in an online app called Matterport Workshop in order to tag our tours as well as build engaging walkthroughs.

Details Page

"The Details Page" is the first place we look when we start to work on creating a finished Matterport Space. Details allows us to add the correct and complete address, our company details, website URL as well as a brief description of the property. “Details” is also where you setup your preferred sharing options as well as get the URL’s and embed codes you’ll need when you’re ready to distribute your tour.

This section is also where you go to see how your space is performing. The “Space Statistics” shows you analytical data like; the number of impressions (An impression is registered when someone views a page containing a 3D Showcase or clicks on a public 3D Showcase link), “Visits” (A visit is registered when a Space loads successfully) and “Unique Visitors” (Number of distinct users who visited this 3D Showcase one or more times).

These statistics become important as you look for the most effective ways to promote your spaces. We would really like to be able to see where the visitors came from and how long they stayed. This feature might exist but we have yet to find it.

Post Production in the Workshop

The real post production work gets done in the "Matterport Workshop". This is a robust web-based editor that allows you to refine the user experience.

The first option available in this app is the ability to set the start location of your 3D model. This is the same image as your "Hero Image"(the image that the user sees before the space loads).

Start positions can consist of the following scenes:

  • Any position in the inside view of the space. This is accomplished by moving to the desired location and selecting the “Update Start Location” button.
  • Dollhouse View-This is the iconic Matterport view (see below).

doll house

  • Floorplan View-This is a flat photograph of the actual floorplan.

floorplan view

  • 360 º View-These are individual 360 º images usually taken of outdoor spaces. You can use these images if you would like to start your tour outside or show backyard spaces as well as landscaping.

 

The space will show a white translucent circle at each point you set the tripod to take a scan. There are times when you may take too many scans in an attempt to get better coverage. The downside to this is your space can end up with a distractingly large number of scan circles. The workshop will let you hide those extra scans, creating a cleaner space. 

The workshop also lets you build a guided tour. These tours move quickly through the property and give the user a good overview of the house. The user can stop the tour and investigate an area at any time by simply clicking and dragging on the space and relaunch the tour by clicking the play button.

Guided tours are built by taking “Snapshots” of the areas you want to include in your tour. Once you have compiled all your desired snapshots, you simply drag them into a “Highlight Reel” in the specific order you want them to appear in your tour. The guided tour automatically moves you through the Highlight Reel by simply pressing play.

Another valuable feature found in the Workshop is the ability to tag things. These are named “Matter Tags”. Matter Tags appear in the space as a small bullseye. When the viewer clicks on the bullseye, they see a description of the tagged item. These tags also allow you to add links to more in-depth information. We think these are really valuable, they allow us to provide as much additional detail as we need without visually cluttering up our tours.

 Floorplans are another feature we find useful. One of the view options in the Matterport viewer is “Floorplan”. This provides an overhead photographic view of each level of the property. The look is admittedly a little rough but the user will certainly get the gist of how the floorplan looks. We have experimented with taking snapshots of floorplans, downloaded a JPEG version of them and then used the image to trace the floorplan in something like Illustrator or Floorplanner.com. We then export or save them as image files and post them to the MLS and our website. If you don’t want to do the floorplan yourself, there is an option to have Matterport create a floorplan for an additional fee.

The workshop has other features that we frankly haven’t had time to tap into like Virtual Reality settings and the ability to measure rooms. We are also experimenting with using the guided tour function to create videos. Look for more on this in future articles.

We have had the Matterport Camera for a couple of weeks now and feel like we are just beginning to tap into its potential. This was a great purchase and we can’t wait to do more with it. To see a collection of our Matterport Tours, visit: https://www.springshomes.com/.

 

 

 

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