Home Contingencies You Should Never Waive, Part 2

In Part 1 we reviewed common contract contingencies found in a typical real estate contract. Now we’re going to discuss home contingencies that you should never waive.

Title contingency

Home Contingencies You Should Never Waive, Part 2The first and most important contingency that you should never waive is the title contingency. All contracts have a clause requiring that the seller deliver clear title to the property to the buyer. Clear title means that there are no liens or mortgages left on the property once it transfers from one owner to another. If you waive this contingency you will be responsible to pay any outstanding liens or mortgages the seller decides to leave attached to the title.

Inspection contingency

Next, don’t waive the inspection contingency. An inspection contingency gives the buyer a specific time period to have a home inspector come and look at the home to make sure there are no serious defects or issues that need to be addressed. In most contracts, should something be found the seller has the chance to fix it or either party can decide to walk away from the deal.

If you are a home builder or contractor and have the knowledge to address problems yourself, this contingency is a serious protection for the buyer. To many things can be easily hidden from the average buyer’s sight. Can you see electrical issues inside a wall? What about a pipe drip that is slowly causing mold issues? Is that crack in the basement a superficial one or a foundation issue? Don’t take a chance.

Appraisal contingency

The appraisal contingency allows the buyer to walk away if the home appraisal comes back lower than the price agreed upon. Most banks and mortgage companies require this and should the appraisal be short, they won’t write a mortgage for the property, or will but only if the buyer puts up a serious cash down payment.

If you waive this contingency, you will be required to purchase the property whether you can get financing or not.

Financing contingency

Which leads to the financing contingency. Unless you can pay all cash for a property, you will be getting a mortgage to secure the purchase money. What if you can’t? For whatever reason, do you want to be contractually required to buy a home that you don’t have the money to pay? Of course not. So don’t waive this one!

4 Reasons They Didn’t Accept Your Denver Real Estate Offer

You find the perfect Denver area home and make an offer and the seller rejects it. It can be heart breaking. There are some common reasons why they didn’t accept your real estate offer, and if you know what they are ahead of time, you can avoid setting yourself up for disappointment.

One reason sellers reject offers is because the offer is way too low

Regardless of whether you think it was fair or not, a super low offer can be rather insulting to a seller, or may convey the message to them that you aren’t a serious buyer. If it’s a new listing the seller may reject it 4 Reasons They Didn't Accept Your Denver Real Estate Offerbecause it would be too early to accept a lower than list offer. If the home is truly overpriced, you might want to rethink whether it’s truly the home for you.

A better offer tendered

Another reason is that a better offer could have been tendered to the seller that they are considering. If a home is getting a lot of attention and your Realtor feels that there may be other offers, your best bet is to keep your offer as close to list as possible, and keep contingencies to a minimum.

Not prequalified for a mortgage

A big reason offers are rejected is because you are not prequalified for a mortgage. Pre-approval of a mortgage is something that sellers prefer because it means that 1) you are a serious buyer and 2) you can complete settlement and purchase the home. Be sure to include your pre-approval letter with your offer.

A long escrow period

Requiring a long escrow period can also be a deal killer. The reasons for this could be because you need to sell your current home or time to save your down payment. Whatever the reason sellers usually don’t want to be strung along for months. Your best bet is to begin your search after you have your down payment together, or once your current home is at least listed or closer to selling.

Is It Better To Rent Or Buy in a Hot Real Estate Market Like Denver

The real estate market in Denver is hot and the question can come up, is it better to rent or buy in a hot real estate market? The answer depends on a lot of things and only you can answer it.

First time home buyers

Is It Better To Rent Or Buy in a Hot Real Estate Market Like DenverThe market in Denver can be really difficult right now for both buyers and renters. First time buyers have it tough because the homes normally available to first time home buyers are now higher priced and out of reach or are very hard to find, but they are also getting priced out of the rental market as well. So what can you do?

Weigh your options

In order to make a decision, weigh your options. Would it be better for you to continue to rent for awhile? If not, are you willing to find a property below your expectations that may need work? Sometimes that is a good idea if the ready to move in homes are out of your price range. Also look in up and coming neighborhoods. They may not be ideal… yet. Those that appear to be getting popular will mean your investment will give you the equity you need to move up later.

Be sure to save your pennies

Having a substantial down payment can help you get a home when people with smaller amounts saved find it harder to buy. Having more to put down can help you get that house too. You look like a better potential buyer to a seller entertaining multiple offers and it could give you an edge.

Rental potential properties

Look for a property that could have rental potential. Either through an income suite or later when you decide to move up. An income suite could provide you with the ability to purchase a higher priced home because the income will help with the mortgage.

Your best bet is to talk with a Realtor to help you figure out when the best time to buy for YOU might be.

Moving To Denver? The Top Five Interesting Places To Live

If you are moving to Denver you might not know about some of the neat little towns that are commuting distance to Denver proper. These are

Erie Colorado : Real Estate and More!

Erie, CO is an interesting little area 28 miles northwest of Denver proper. It is a residential community that has a great vision for its residents and businesses. They have a dynamic community center and Moving To Denver? The Top Five Interesting Places To Livelibrary. Much of the charm of Erie comes from its active outdoor lifestyle. There are many parks, trails and open spaces available to keep you moving!

Golden Colorado : A Historical Gem

Golden is probably the most well known of all the little towns we are talking about today. It is located 18 miles due West of Denver. It has a rich heritage stemming back to the “gold rush” of the 1850s. Sitting nestled right against the Rocky Mountains, it is a great little town to call home!

Lafayette Colorado : A Fun Little Town

Lafayette is an “artsy” town that prides itself on showcasing culture and art. Lafayette is located 22 miles North and slightly West of Denver (well within commuting distance). Quieter than either Louisville or Golden, Layfayette is a sweet, old world town with historic charm.

Louisville Colorado : A Great Place To Live

Louisville is maybe one of the neatest towns around. Located 31 minutes North West of Denver, Louisville has a straight shot into town via Route 36. It is a charming village of old, historic homes and contemporary restaurants and stores. Louisville’s vibrant downtown area is a major draw for both young and old alike!

Arvada Colorado : Old World Charm With Benefits

Arvada is another neat town with an amazing downtown area. Just 11 miles North West of Denver, Arvada is a great residential area to live! It has all the modern conveniences, great access for commuting into Denver and charming “Olde Town” houses.

If you are thinking about moving to Denver and would like to learn more about these great towns, give Tena a call today! 303-452-5853

Denver Relocation – 4 Myths Busted

If you are thinking about a Denver relocation you are probably all sorts of crazy things, some of which are true and some of which are not exactly right. Here are the top 4 Mythbusters to consider if you are moving to Denver!

Denver Is Full Of Farms

Metro Denver is a large area that is has been developed for quite a while. It has experienced urban sprawl and has a number of outlying Denver Relocation - 4 Myths Bustedsubdivisions (like Thornton, Westminster, Broomfield, Parker and Centennial. While there are pockets of farmland strangely still remaining in the city proper, generally Denver is an urban area with lots of amenities.

There Are Cowboys Everywhere

Except during the annual National Western Stock Show cowboys are few and far between in Denver. While dress is certainly more casual than in other big cities, cowboy boots are worn more for show and less for work.

You Will Get Sick Coming So High Up

While some people get altitude sickness when they come to the “Mile High City”, not everyone does and there are things that you can do to help stop from getting sick. First off you need to drink A LOT of water. Denver is actually considered to be an arid climate and if you are not properly hydrated you will feel the effects more strongly. Next, relax your first day here. There is a reason so many athletes train around here, it is harder to do things so you need to condition yourself to the altitude.

Lastly, according to Berkley Wellness if you experience acute mountain sickness (AMS) you should talk to your doctor about prescription acetazolamide (brand name Diamox and others).

We Are All A Bunch Of Pot Smokers

Yes, pot smoking was legalized in Colorado and it is okay to smoke it here. That said, for most of us, nothing much changed. There is not really a haze over the city and most people are just like you, going about your normal lives without lighting up every 5 seconds.

It is good to note that you are only allowed to carry pot in the state and that if you try to leave with it you could face all the normal fines or criminal charges you would in your home state.

All that being said, Denver is an amazing place to live. The Rocky Mountains sit majestically to the West and there are wonderful things to do here. If you are thinking about a Denver relocation, give Tena D a call today to find out more! 303-452-5853