Living Colorado Springs » Home Buying Process

Finding Colorado Springs Homes for Sale Gets Easier

Rick Van Wieren — Sun, 07 Feb 2010 00:39:17 +0000

New software is going to make it even easier to find homes for sale in Colorado Springs on our web site. We’ve added the Home Search option to our main menu at the top of the screen, making it easier to access without ever leaving our site. While we have a couple of options for searching for homes (those are still available), this menu item is based on the MLS Wizard from 1Park Place. It provides map based searching, even allows searching based on school district boundaries, and is a very fun way to browse our MLS. The search capabilities of this software are still not going to give the same filter capabilities as having us set up a “Client Web” site on our regular MLS system (please contact me at 888-568-6784 if that is what you need), but this will give a much more complete home search experience than we’ve ever had before.

Rick Van Wieren — Thu, 24 Apr 2008 19:12:00 +0000

What you can expect when buying distressed properties in Colorado Springs (ie short sales, pre-foreclosures, foreclosures, bank owned, etc) is both more and less than you bargained for. Less money, there are some great deals out there. Less amenities (the sprinklers may not work, the A/C compressor may be gone, along with the stove!). More headaches, angst, problems, etc. And possibly more sweat equity and return on investment. I worked some folks this week in the “under $150″ category, and thought I would share a few things.
1. In this price, we did not used to see much at all, and I was pleasantly surprised by both the quantity, and in some cases even the quality of what we saw. There were definitely some “dogs” out there however, with foundation problems, water issues, etc. Houses are not always large in this segment, and almost all of them needed something to be done after closing, generally in the $10k plus category.
2. The water is off in virtually all of bank owned (and other vacant) homes right now, meaning there will be some additional expense for de-winterizing the property, and some nervousness when the water first comes back on for possible leaks. A broken pipe inside the walls can really be a mess to clean up, but if you don’t get that sort of thing looked at, the problems can be even bigger.
3. We did not see a lot of badly gutted homes this time, but I have seen them where even the light fixtures are gone, along with appliances, cabinets, etc. On the property they selected, the stove, some cabinets, and most of the carpet was gone.
4. The response time from the bank that owned the house they wrote on was surprisingly quick. Many will tell you right up front that they need several days, and with short sales, it can be weeks. Bank owned properties are usually 2 or 3 round negotiations, and sometimes more.
5. The match between the house and the buyer should be right, and it was gratifying to see that this particular buyer was very knowledgeable on the particular things this house needed, making it a good fit.
6. Out of state banks don’t really pay much attention to our contracts, and have all kinds of forms, addendums etc that are not really “buyer friendly”, shortening inspection and other contingency deadlines, etc. That does not make them bad, but it is something to be prepared for.
7. Have your lending situation nailed down tight before you start. These kinds of properties don’t give much time to “fool around” with getting your loan situated.
8. They like quick closes, so expect to close in 30 days or less, or else wait before you shop.
9. Don’t expect to use a government loan (ie VA or FHA) for your financing. Many of these properties are neglected to the point where they will not pass muster for a VA or FHA inspection. Keep some cash on hand for doing the repairs, that is not so easily financed.
10. Don’t expect the owner to fix anything. These are pretty much all “as is” deals, and sometimes that will not only mean you have to do the fixes yourself, but in some cases, you mght want to stay in a motel until the fixes are done!

Rick Van Wieren — Fri, 11 Apr 2008 13:23:00 +0000

I have an inspection today, and thought I would share a few notes about such things. In Colorado Springs, home inspectors are not licensed, but I only work with ones that are certified, usually by either ASHI (American Society of Home Inspectors) or NAHI (National Association of Home Inspectors), and that have errors and omissions insurance. I always attend home inspections for my buyers, because I want to hear what is said in case interpretation is needed in negotiating inspection issues. They are time consuming, but it has really helped in the past to be there, so I continue to do it.
Here, a typical home inspection is around $300, plus some additional services if desired, such as radon testing, water flow and/or potability testing (if the home is on a well), and sometimes we have to get additional inspectors involved if there are indications of mold, wood destroying insects (termites), or structural issues. It takes between 1 1/2 and 3 hours usually. I had an out of state client who said the inspector who came out when they sold their home, was only there for 20 minutes. That would be pretty impossible to do a proper job.
Generally radon testing is always a good idea. Radon is suspected as the #2 cause of lung cancer in the US, and while there are differences of opinion as to what the REAL limit should be for radon (the US EPA says 4 Pcl, in Canada they used to say 10, now it is 5), it is best if you know what you have before you just blow this off. Mitigation typically costs around $1,000 here.
We don’t often run into mold, and the inspector will usually look for it to determine whether additional inspection or testing is done. The same applies to wood destroying insects. While termites are not very prevalent here, they do show up from time to time, especially in older neighborhoods where the trees have finally grown up.
Structural issues come up from time to time for a couple of reasons. We have some tricky soil conditions here. Sometimes the builder did not do things right, although this is more rare. Often, site drainage has been modified from what the builder had done, for landscaping usually, and it results in water coming in contact with expansive or poorly compacted soil, and this can create problems. We also have some hillside “creep zones”, and even mine tunnels under the ground that can also wreak havoc. The areas most likely to have structural issues to watch for are west of I25, but they can happen almost anywhere.
The most common issues that come up on inspection reports are roof problems (previously undetected hail damage), electrical issues (usually homeowner done), furnace cleaning and servicing, bathroom grout issues and site drainage. The purpose of the inspection is really for the buyer to understand the true condition of the house at closing, so that they know what their “honey do” list will look like. The list of things the seller normally takes care of fall into the category of “safe, sound and sanitary”. If any of these areas is affected, we typically ask the seller to take care of it. In Colorado, the inspection clause of the real estate contract is one of the most important contingencies. A buyer can terminate the contract for any inspection issue they choose.
Finally, a shameless plug for my favorite home inspector, Randy Morrow at Hawkeye Home Inspections. He does a great job, has inspected hundreds of homes for my clients, and I trust him completely. His number is 719-330-9821, and he does pre-inspections for sellers in addition to “due diligence” homes inspections for buyers.