If you are buying and selling a house, it can be difficult to understand all the real estate terminology you would come across in the process. Too keep yourself in the loop with Aurora real estate, you either need to have a helpful agent or time to hit the real estate books. Check out some common real estate terminology so that you don’t get left behind:

Escrow—a party outside of the buyer and seller that holds onto funds until notified that the transaction can officially take place. This may be used when there are conditions that must be met before the transaction, but the other party needs the reassurance that the money is there.

Amortization—a method of loan payment where the borrower must follow a payment schedule. The initial period of this schedule will primarily focus on repaying the interest first.

Underwriting—this is when lenders will take a close look at the financial risk of lending to a buyer and determining the right characteristics for the loan. The lender will also look at appraising value of the house in regards to future collateral. The borrower will have to pay an underwriting fee for these services and for verifying data from the borrower’s application.

FHA—the Federal Housing Administration, which offers mortgage insurance from approved lenders. This is called an FHA insured loan.

Agency disclosure—during a real estate transaction, the requirement for agents to be upfront concerning who they are representing. Different states will have different laws determining at which point in the process this must be disclosed.

Upgrades—an option to improve a feature of the home. When looking at home features, if there is a weak spot that is not just a quick fix, then the seller will often offer an upgrade as part of the package.
Decorating allowance—similar to upgrades, a decorating allowance is an agreement that money will be offered by the seller for redecorating. This is often held in escrow, and is typically negotiated along with all the other terms of the purchase agreement.

Encroachment—this is a structure on a neighboring property, such as a fence, that extends over the boundary lines. This is a common concern for potential buyers, as the previous owners may have agreed to the encroachment (Letting tree branches extend over the fence because they thought it was pretty, for example.) didn’t notice, or did notice but didn’t say anything.

About PorchLight Real Estate: PorchLight Real Estate Group has the most experienced and knowledgeable Denver real estate agents in Colorado. For more information about homes for sale in Denver CO or specific neighborhood homes please visit www.porchlightgroup.com.

Even if you aren’t knew to the real estate game, understanding real estate lingo can be confusing. You may find yourself constantly researching the words you’re looking at. And if you don’t have a real estate agent to help you sort things out with homes for sale in Denver CO, you should look forward to study sessions to get a handle on the process. To help you out, we’ve listed some common real estate lingo with some helpful definitions:

Closing costs—the price of the home in question is not the only expense that buyers and sellers have to deal with. The total costs associated with closing on a home are called closing costs. These may include fees or costs dealing with mortgage, escrow, attorneys, brokerage commission, taxes, transfers, insurance, and anything else that is paid for when buying the home.

Fixture—this term deals with the difference between real property and personal property. In the legal sense, real estate is termed “real property” while anything movable that the previous owners will be taking with them is personal property. Fixtures are a part of real property and are often put in writing so it’s clear who will be getting what, because it can be tricky with items like blinds that could be seen as either and that the previous home owner may have become attached to.

Contingency—a contingency is an agreement that includes an if. This means that the terms of the agreement are not officially legally binding until a certain thing happens. For example, a home buyer and seller could have an agreement that states that the buyer must have an appraisal that matches the asking price of the home before legally purchasing it. Even if they agreed to sell, a seller here could back out if this condition isn’t met because of a contingency provision.

Disclosure—this is anything that the seller must inform the buyer of before they take over ownership. These are things that will have an effect on future value or use of a property. This could be a leaky roof, a property that is prone to flooding, or anything else that the new buyer may need to know.

CMA—a comparative market analysis or competitive market analysis. This report will analyze the market for similar homes in the area that were sold, and what price they were sold for. These reports also often show details for homes currently on the market.

About PorchLight Real Estate: PorchLight Real Estate Group has the most experienced and knowledgeable Denver real estate agents in Colorado. For more information about homes for sale in Denver CO or specific neighborhood homes please visit www.porchlightgroup.com.

When you’re getting ready to put your home up for sale, one of the first things you must consider is to update your home. Not every area may need an update, but there are likely some problem areas and eyesores that you should try and improve. This could be anything from fast updates to complex renovations, and it could be key to selling your home to the right buyers. Consider these common outdated home weak spots that could probably use a tune up:

The Kitchen

An outdated kitchen is one of the most common turnoffs to prospective buyers. Even if the buyers don’t cook much, a kitchen is a common source of pride when it comes to home owning. An outdated kitchen not only looks very unattractive, but can make even the most simple kitchen tasks a pain. At the very least, you should give your kitchen a thorough cleaning and make some simple updates, like replacing broken cabinet knobs or fixing that leaky sink. But if your kitchen is so outdated that you would need to renovate, make sure you don’t underestimate how much this can boost your asking price. You can very easily look at a kitchen update as an investment that you’ll see pay off with your increased home value.

The Bathroom

Like the kitchen, home owners like their kitchen to be sleek and shiny. Make sure you thoroughly clean all the tiles, the toilet, the sink, and any other common bathroom problem areas. It can be very easy to overlook sore spots like a run-down floor if you’ve been looking at it all these years. Don’t leave any dirt or grime behind, and like your kitchen, you may want to consider some more major updates like re-tiling or renovating your shower.

The Landscaping

If you’ve been laid back about your landscaping these last couple of years and haven’t kept things as trimmed as they should be, then you should look at updating this. A great looking outside can make quite the impression on prospective buyers, so perhaps hire a new landscaper or trim everything up to get it back to your last landscaping plan. If you do minimal work outdoors but maintain it well, consider augmenting what you have landscaped to make an even bigger impression.

The Exterior

Exteriors can get dull and have dirty buildup over the years. If you are selling Berkeley real estate, this can be fixed with a power wash and a repainting, which can make a big different.

About PorchLight Real Estate: PorchLight Real Estate Group has the most experienced and knowledgeable Denver real estate agents in Colorado. For more information about homes for sale in Denver CO or specific neighborhood homes please visit www.porchlightgroup.com.

Whether your home has been on the market for a year or a week, having a potential buyer is exciting. Before you even put your home on the market, you and your agent have put in hours and hours of work preparing and marketing your home. So, once it seems like you might have a buyer, it is easy to get anxious over when things will become official. But it can take some time between a buyer unofficially expressing serious interest and actually taking over ownership, and stalls can happen at any point in the process. If you are looking at putting up Denver Colorado homes for sale, take a look at some common reasons why potential buyers may stall officially buying during this period:

They’re letting the decision settle

If you have been playing the real estate game for a while, it can be easy to forget what a big decision buying a home is. From the seller’s end, for the most part, as long as the financials look good, the decision to sell to a certain buyer is easy. But the buyer has to consider many different aspects of the home, the financials, and yes, even the seller. Especially if they are first time home buyers, this life-altering decision can cause anxiety.
Letting the dust settle after initially considering the possibility of calling a home yours is common. While very motivated buyers may want to go full speed ahead, you may find that your right buyer needed a little more time to feel comfortable with the decision. This is “sleeping on it” in a broader sense of the term.

They’re still shopping around

This doesn’t mean that they’re totally unsure about your home. It could be that your potential buyers want to gather more information on the market, similar homes, and other data to make sure they’re getting the right deal. It’s like finding a great pair of shoes, but looking around anyway just to make sure there isn’t a similar pair out there for cheaper. Odds are, this is just confirming what they already know, and getting the reassurance that this is the right house for them might take a little more market scoping.

Not everything’s right

Your buyer may be stalling because the house isn’t exactly what they wanted. They could still be interested, however, because the totally perfect house is difficult to find, and many homeowners are open to compromising. Perhaps one member of a buying partnership has some misgivings. These types of buyers may stall because they are hoping for a price reduction or to motivate the seller to accept a lower offer, or they may just be taking their time considering a home that doesn’t have everything they wanted.

About PorchLight Real Estate: PorchLight Real Estate Group has the most experienced and knowledgeable Denver real estate agents in Colorado. For more information about homes for sale in Denver CO or specific neighborhood homes please visit www.porchlightgroup.com.

A common question from those selling their home is: “Why can’t I get showings anymore?” Many sellers may host many showings at first but then see them slowly taper off the longer your home is on the market. There are many reasons for this, and many ways you can stimulate interest:

The initial rush is over

Before you put your house on the market, you should understand that there is already a market of buyers that have been looking around for their dream home for a while, hovering over the listing database for any new listing to look into. Many of these buyers have already seen everything that’s already out there, and so they will be sure to look into any new listings right away. They already know what they want and they already know what their market has to offer, meaning if they have any interest on the home, they will want to jump on the opportunity right away in order to avoid competition from other similar prospective buyers.

This is why you will typically see a rush of interest after first putting your house of for sale. Along with the above types of buyers, you could also see some that are just curious about the new listing and aren’t serious about buying anything anytime soon. If this rush of interest does not result in any offers, don’t worry—it is common for this initial interest to not result in anything serious, as many prospective buyers are so thorough that they will check out a new home even if they have a hunch it isn’t for them. You may see a prospective buyer come back later after this rush after considering your home or other more serious interest after your home has been on the market for a few weeks. Some serious buyers also may not jump on the house right away, as they may be focusing on other houses first or want to reflect upon the listing before approaching the home itself.

Your marketing isn’t reaching anyone

This may be an issue with your agent or your marketing strategy if you are selling by-owner. The reason you’re not getting any showings may be because new prospective buyers may not be seeing your listing. If you initially marketing your home through several outlets and put out fliers, you may not be getting any new buyers because these strategies aren’t attracting any new people. Whether you are listing Cherry Creek homes for sale or other areas of Denver and Aurora, changing up your strategy and listing on different websites or other outlets to try and widen you marketing network.

About PorchLight Real Estate: PorchLight Real Estate Group has the most experienced and knowledgeable Denver real estate agents in Colorado. For more information about homes for sale in Denver CO or specific neighborhood homes please visit www.porchlightgroup.com.

Bad neighbors can be a huge frustration for home owners. Whether you are buying or selling, you should take into account how your neighbors will affect your real estate experience. If you are selling, bad neighbors could scare off that perfect match. If you are buying, you don’t want to buy a house next to residents that you don’t think would be pleasant. Whether you selling or buying Denver Colorado homes for sale, keep these qualities of a bad neighbor in mind:

Close proximity

This may not always be a bother, but even the best neighbors can be a pain if their property is too close to yours. You may have to deal with common issues of close neighbors—dogs getting into each other’s yards, tree branches growing over fences and dropping leaves into the other’s yard, or perhaps just being so close that you can hear even the lowest of conversations. This can be even more difficult to deal with if your neighbor is “bad” in the social sense, as in impolite, antagonistic, or any other quality you wouldn’t seek out in a companion.

Intrusiveness

This would be proximity in the social sense, or perhaps a lack of privacy. If you neighbor’s yard has a clear view of your yard, windows, or other elements, then you should hope that neighbor isn’t also nosy. Even if they are respectful of your privacy, it may be irritating relaxing in your yard knowing that you don’t have total privacy. If they aren’t respectful of your privacy, well, then you might consider getting some nice blinds.

The other type of intrusiveness may come from neighbors that may feel overly friendly. Some neighbors may not realize how often is appropriate to drop by for a chat or to wave down your car for a word as you pull in your driveway. Even if you like them personally, too much interaction can feel a bit smothering if you live next door to someone, and communicating this could cause future resentment. The major problem here is that if someone is intrusive, it’s impossible to avoid if that person lives right next door.

Noisiness

This is perhaps one of the major complaints of homeowners concerning their neighbors. Sure, you can call the authorities for when things get too loud, but this noisiness may not always be a clear cut house party. It could be a dog that barks intermittently or some occasional but very loud banging as they drag out their trash cans. If this type of noise is exorbitant, it can be hard to stop.

Untidiness

If your neighbors have an untidy lawn, this depreciates the look of your own property. You don’t want to take meticulous care of your perfectly manicured lawn only for the aesthetics to be ruined by that untidy neighbor.

About PorchLight Real Estate: PorchLight Real Estate Group has the most experienced and knowledgeable Denver real estate agents in Colorado. For more information about homes for sale in Denver CO or specific neighborhood homes please visit www.porchlightgroup.com.

You’ve finally found it—the home of your dreams. All you want to know is where to sign. Well, before you sign on the dotted line, there are some things to consider first. Here are some tips and warnings for those who fall in love with a home up for sale:

Don’t overlook the cons

If you think you’ve found your dream house, and you’re over the moon over its great features, you should take a step back and look closely at the whole package. Say you’ve been looking for the perfect covered patio for ages, and now you’ve finally found it on what seems like your dream house. In all the excitement, you may have overlooked other negative features, like that lack of an extra bathroom you thought you wanted. While the perfect house sometimes does not exist and it is reasonable to make compromises, you need to keep in mind what exactly your priorities are. You don’t want to get so blinded by all the features in the ‘pros’ column that you don’t even fill out the ‘cons’ section. Sure, you’ll be happy about that covered patio, but after moving in you may remember just how important that other bathroom was. That’s why it’s important to take a close look at your ‘dream house’ without the sparkle in your eye.

It may be too good to be true

Even after a buyer has settled on a home, it can be a while before the home actually becomes theirs with all the processing involved with transferring ownership. There is a lot that can happen between realizing you’re in love with a home and being able to officially call it your own. First of all, the seller could not accept your offer, or you may have to deal with competing offers. Or, you could hit a snag after the inspection reveals an issue. There could also be legal reasons tying up the sale. This is why, after you fall in love with a home, it is important to keep in mind that it is not a done deal to avoid heartbreak.

It may not be practical

When you’re deciding on your home features, it can be tempting to prioritize the things you want rather than the things you need. For example, your fantasy home may include a swimming pool with a waterslide and an outdoor kitchen. Before you even find this dream Baker real estate house, you should consider whether this is really going to be the right home for you.

About PorchLight Real Estate: PorchLight Real Estate Group has the most experienced and knowledgeable Denver real estate agents in Colorado. For more information about homes for sale in Denver CO or specific neighborhood homes please visit www.porchlightgroup.com.

Recently, we took a look at do’s and don’ts for home sellers when showing their home. Now we’ll be talking about the other side of things. When you are looking for homes for sale in Denver CO, it is important to follow certain etiquette when attending a home showing. If you’re going to take a look inside of a home, make sure to follow these important tips:

Don’t bring your kids or pets

This should be obvious, but you would be surprised how many showing attendees think of attending a home showing as a trip to a park. It is better to not bring your kids, but if they must come, make sure they are not running around and causing a ruckus in your host’s home. If your child makes a mess or breaks something, this can turn your dream home into an awkward situation that may not be worth pursuing for the resentful seller anymore. Generally you will not want to bring pets at all, as you cannot always control their behavior or the allergies and preferences of the home sellers.

Leave everything how you left it

If you are attending a home showing, it is important to remember to look, not touch. If you have to touch something, make sure everything is still in order when you leave it. This also means cleaning up after yourself if you use any of the facilities.

Try not to schedule for awkward times

When scheduling a showing, you will want to schedule a look at appropriate times. Many sellers know that they should try to accept any times that a buyer wants to look at a home, and also that they should try and be absent during showings. This is why you will not want to schedule showings too early or too late in the day. You don’t have to adhere to normal business hours, but you don’t want to schedule a time that the seller may not have left for work yet or when they are trying to go to sleep.

Focus

When you are looking at a home, try not to waste the time of the agents, sellers, and buying partners by focusing on the matters at hand. This does not necessarily mean non-home buying issues are off limits, but try not to be so social or otherwise distracted that you don’t get to the point of the visit. Be polite and conversational, but make sure that you take care of business at the same time.

About PorchLight Real Estate: PorchLight Real Estate Group has the most experienced and knowledgeable Denver real estate agents in Colorado. For more information about homes for sale in Denver CO or specific neighborhood homes please visit www.porchlightgroup.com.

Home showings are like first dates. It’s important to make a good impression and communicate what you have to offer. Afterward you may be nervously dialing a number or answering your phone. Just like there are first date faux pas, there is certain etiquette when it comes to showing your home. Don’t be guilty of these common showing ‘don’ts.’

Don’t buzz around the showing

Although the rule is not set in stone, it is generally thought that the owners shouldn’t be around while a showing is taking place. Even if the seller is not being intrusive, the prospective seller may not be able to totally focus on imagining themselves living in the house, ask questions, or voice opinions to their agent or buying partners. It is usually distracting to have the current home owner there, and the prospective buyer may feel pressure to express positive thoughts to the current owner.

So, if you are present while your home is showing, it is important to give the prospective buyer some space. You can be polite and introduce yourself, but don’t buzz around them as they are taking a look at things. That way, they feel more comfortable with taking a close, scrutinizing look at your home that they will need in order to advance further in the process. You should also make sure that any pets or other members of the household are absent as well. Try to be able to schedule showings whenever the buyer can come, but be sure your Denver real estate agents know what times you absolutely cannot be showing your home.

Don’t press the prospective buyer afterwards

It’s not the status quo to communicate with the buyers afterward unless they want to pursue the home further, but the modern showing process often offers more opportunity for feedback. Many online listing have an application where prospective buyers can leave comments for the seller after the showing. But with this new process comes new etiquette. Don’t pester the prospective buyers for a response, and be sure to accept constructive criticism gently—don’t argue with the buyer over their opinions or take them personally. The buyer may have given negative feedback despite being interested, so you don’t want to scare away the potential sale.

Don’t leave valuables sitting around

As much as you would like to trust people you are showing your home to, since you will not be around for every showing, make sure your valuables or other personal items are put away. This way, you don’t have to deal with the awkwardness of questioning showing attendees over lost items.

About PorchLight Real Estate: PorchLight Real Estate Group has the most experienced and knowledgeable Denver real estate agents in Colorado. For more information about homes for sale in Denver CO or specific neighborhood homes please visit www.porchlightgroup.com.

When thinking about where you want to live and what you want to live in it is important to decide whether it is more cost effective to buy or rent a home. These are some things that make coming to that conclusion easier. Purchase costs are the costs you pay at the close of the purchase including the down payment and typical closing costs. Yearly costs are recurring monthly or yearly expenses. Mortgage payments, property taxes, homeowner’s insurance, condo fees (or other community living fees), maintenance and renovation costs.

Selling costs is what you pay when you go to the closing for the house you are selling, including the remaining principal balance that you pay to your mortgage bank as well as the broker’s commission and other fees. The money that you receive from the person who is buying your home is what is called proceeds from sale. This amount reflects the value of the house that year, it is shown as a negative number because it is money you receive. If your buying total is negative, you made enough of a profit to cover yearly operating expenses and the cost of your home.

Renting is ideal for someone who plans to live in an area for fewer than three to five years. If you were to buy a house in that time, you might not get the return on your investment. Renting is ideal for the nomad who has yet to settle down. You should rent if you don’t want to be tied down to a mortgage or if you know that you never stay in one place for very long. If you purchase a home and sell it within a couple years, you’ll lose about 6 to 7 percent of the money you put in to the home through the cost of selling it. That said, no one should rent forever. Apartment rents are expected to increase by 12 percent by 2015.

House prices are making the jump as well, but when you own the house you are putting your money into that investment not into a landlord’s pocket. If you plan on being in your home for only a little while then renting is the way to go, as not to lose money trying to sell it when you decide to uproot again. Rent if you can only commit yourself to staying in the same spot for a year or two. If your career keeps you in the same place for many years, now is a good time to buy Denver real estate for sale.

About PorchLight Real Estate: PorchLight Real Estate Group has the most experienced and knowledgeable Denver real estate agents in Colorado. For more information about homes for sale in Denver CO or specific neighborhood homes please visit www.porchlightgroup.com.