School District Makes a Big Difference

It might be understandable for some individuals who are looking for a home not to consider the performance of the school district. This is an important factor to consider when home shopping. Overlooking this factor might be an understandable tendency for a single person not thinking ahead to having children, a young homebuyer, or an older person who does not personally connect with the question of local schools. It might surprise you to know that even in those cases, the quality of the school district deserves serious evaluation as a significant factor to include in your plan.

School Desirability Affects Home Prices
The district where a home is situated is a key driver affecting the prices of homes in certain areas or neighborhoods. With increased sophistication of the vast majority of buyers in recent years, it has become more frequently the case that homes in better school districts sell for significantly higher prices than homes in other districts, even comparing homes that are otherwise nearly identical.

The difference attributable to the performance of the school district is real. Homes that are situated in higher-performing school districts can sell for as much as 30 percent more than comparable homes in other neighborhoods. If you look at an median cost of a residence at approximately between $180,000 and $240,000, the difference is significant.

In a Buyer's Market, Buyers Can Be Picky
In previous years, home buyers were more worried about such things as the home's nearness to shopping centers, downtown businesses, work, and possibly aesthetic attributes such as the appearance of the neighborhood. Now, home buyers are more attuned to negative factors such as being located in school districts that are less desirable. Homes located in these districts can be hard to sell.

Perception Leads to Real Value
In some areas with the best schools, buyers actually bid against each other. This can contribute to inflated real estate prices; or, in a slow market can cause homes to hold value against a prevailing decline. This affects the listed price of all other homes in the area available for sale after the transaction has closed. Savvy buyers get school performance reports early in the search for a home. They know that this is a big factor in the value of the home and an factor in what the home may go for in the future.

School District Uncertainty
No matter the state of the market, any reason that could compel an individual to buy a home in a particular area adds to the value of the homes there. Investors and homebuyers alike must remember that the boundaries of school districts can be changed, which can increase or decrease the value of the property significantly. In an established district that is near a new subdivision, for example, things could shift seemingly on a whim. In the real estate market not much is guaranteed.

This article was provided by Automated Homefinder, your Boulder home specialists in Colorado.

Real Estate Purchase Contracts: Moving in After Closing

Finished at last! The paperwork has all been completed, and you're anxious to move in. It seems like it has taken forever, and finally here you are. But wait. What's that? A delay? Just a little one, what harm can it do?

Sometimes the seller will ask to stay in the property for a time after the closing. As the buyer, you can approve or disapprove the seller's request, but before you make that decision, here are some things to consider.

It can happen, in the last days of frantic activity just before closing, that the seller asks for more time. It could seem reasonable, that they want to clean out the home a little better, or clean up other loose ends related to their own move or the transfer of the property in a clean condition. While the request may seem to be perfectly in order, you must consider it with caution. If you choose to allow the seller to stay in the house after closing, the seller must, at the very least, be required to pay a fee for the additional days, and that part of the contract must be documented.

There must be a definite limit on the time the seller can stay in the property after the signing of the contract, and it must be in written form. A clear agreement or contract addendum containing the details of the post-closing possession for benefit of the seller can be provided by the real estate attorney or, in jurisdictions where attorneys are not necessarily part of real estate contracts, by the escrow officer.

If the seller announces at the time of closing that he or she has to stay in the property longer, it is normally a good idea to delay closing on the home until such time as the seller can clear out or acceptable paperwork has been drafted and signed.

As a buyer, once you complete the purchase of a property, that property belongs to you and is your responsibility. This is true even if it is occupied by another party. If the seller causes a fire on the property, it is your loss. The seller will not have to pay for the loss unless it is included in the post-closing possession agreement, and even then the seller's liability as a renter may be restricted under law.

Additionally, sellers who retain possession of the real estate after closing have less motivation to take care of the property and make needed repairs. When closing on any property, you are accepting the property in the condition in which it stands at the time of closing.

Liability Issues
Whatever occurs to the property after closing is the responsibility of the buyer, regardless of who is actually occupying the property. If a furniture mover scars a wall or the kitchen tile or a window pane gets knocked out, you will have to pay for the repair.

A common problem with letting the seller keep possession of the home beyond the closing date is that items that should remain with the home can vanish between the closing and the time the buyer eventually takes possession of the property. Even when such a thing as this happens, the buyer is responsible for the missing items because they own the property.

As a buyer, you have a responsibility commensurate with your investment in the home. It is in your best interest to insist on possession at the time of closing, or to reschedule the closing until the previous owner has gotten out from the property and can turn over the keys.

Content furnished by your Highlands Ranch real estate experts in Colorado, Automated Homefinder.

Use a Home Warranty to Help Your Home Sell Faster

If you are thinking of selling your home, you will be given the choice of buying a homeowner's warranty. What, after all, is a home warranty? And how does it improve the chances of getting a better deal when you sell?

OK, So What Is It Anyway?
A home warranty is a policy that provides coverage for all the repairs or replacements of any appliances or major systems in the home. This typically includes such things as electrical, waste disposal, heater, built-in microwave, dishwashing unit, cooktop, range, and similar items. Coverage may also include other items such as the Jacuzzi and hot tub. This is comparable to the homeowner insurance but while homeowner policies provide protection against risk of damage to the house and the personal belongings within that are caused by factors or occurrences such as losing valuables, the home warranty provides coverage on failure of systems and appliances in the home.

Those who have a home warranty are covered against having to pay the major costs that would be incurred if any of the systems or items in the home break down. There is normally only a small fee involved for a house call for repairs. These charges are usually negligible if you compare them with the expenses one would face if the system or appliance would have to be replaced. The price of a home warranty policy is less than a homeowner policy, which is due to the narrower range of hazards covered and the generally lower cost of what is covered. For example, a homeowner policy will have to cover the structural damage if a tree falls on your house; comparatively speaking, your trash compactor or dishwasher is easy.

One good thing about getting a home warranty is that it can be obtained by anybody, without regard to the type of house. A home inspection might even be waived as not necessary to get a policy. The contract will state clearly what is covered and what is not.

Depending on how much you are willing to pay, you would need to decide on a policy length. You can have a policy for as short as a year and there are longer contracts up to lifetime. In general, a longer contract period will have a lower cost per year. If you are selling, though, offering to buy a contract for a year's period is typical, to provide a break-in period. The new homeowner can then decide about the renewal.

As with any services, the home warranty comes in various "flavors" and you will find a variety of quotes from providers, each touting different combinations of features. In order to get a good deal, you should look into a few sources. Using the Internet makes it easy to become informed and make a good selection.

Having a home warranty can be an attractive advantage for a buyer. If you are the seller, providing one gives that advantage to you.

This content was provided through Automated Homefinder, the Denver real estate specialists of Colorado.

Set the Right Target Price and Sell It on Your Terms

When you're getting ready to put your home on the market, if you want a quick sale you have to list it at the right price point. The higher your price, the longer it will take you to sell it. Rather than starting out too ambitiously and having to concede later, it may be advisable to start a little lower than your brother-in-law said, in order to make the deal go through without delay. If you have already started looking for another house you would increasingly feel the pressure to sell, and sitting on the market with too high a price is a real morale killer.

Use Available Resources to Be Competitive
If you want to have a successful sale the thing to keep in mind as a starting point is to be the best deal in the area. Market analysis, which involves more than just seeing what else is for sale in the area, is something best accomplished by your Realtor. Setting a workable price point is definitely something a Realtor can bring to the process to get headed toward a successful conclusion.

Speed of Transaction Versus Higher Price
Consider the process of buying a consumer item for your home. You would probably not spend too much time deciding between an item you could buy in your neighborhood and one that might cost less but you needed to spend a lot of time and energy researching, finding and hauling and making complicated arrangements to obtain. There is a value on your time, and that is true as well for the time needed to find the right buyer, or rather having that buyer get around to finding your gem of a home. If you look at it with this in mind, you can start to see the problem from a different perspective. If you are listing your home in a depressed market, you may end up having to not only drop your price after it goes on the market, but also offer other extras such as cosmetic repairs or improvements to get a sale at all.

The Art of Compromise
Market conditions may dictate not only the price you can get for your home as mentioned above, but also the timing of your sale. It might not be the time for you to sell for your desired top price, but when the situation changes you may have to go quickly. You may have to wait, or go in on a shift in conditions and sell quickly, depending on the market environment and momentum. This can mean selling your home before you decide on another one, and unless you have relatives or very special friends with whom you can stay awhile, you may defeat your purpose in gaining extra profit from the sale by having to move into temporary rental housing until you find another home. Sometimes the buyer might be agreeable to wait for you, especially if they can stay in their current home a little longer. More often, though, it works out that the buyers are anxious to move into their new place as soon as their loan is approved so you might not have the luxury of staying -- that big train of events is hard to stop once it gets moving.

About That Repair Work...
It is too easy to not think about actual differences when you are setting the price on your home and you see other homes going for what seems to be attractively high prices. It's easy to see a home sell for an attractive price on their block and conclude that yours should be sold for the same, turning a blind eye to features or repairs that would make all the difference. You can, however, price it to move pretty quickly by lowering your price to offset the work the new owner will have to do. You must realize, though, that this option is only pertinent jobs of a cosmetic nature -- normally things such as structural problems and air conditioning units must be repaired before closing. Things like painting, replacing tired landscaping, refinishing wood floors and similar projects can be put off by lowering your price for the home. The main point to remember is that if you take both the value of your valuable time and effort, and having the house sit losing luster too long with the for sale sign up, the smartest approach is truly to do the strategic thing by pricing right from day one. Price it right if you want to sell it quickly.

You must be especially sensitive to this rule if your home is not clearly the best one around. There are people who like to buy a home that needs some repair work so they can make it their own, and if your home is in need of work then being too high-priced will leave you in a bad position. Even if yours is the best one around, though, unrealistic asking prices have a way of hurting in the end. From the outset, your best bet is to price it right.

This content was provided by Automated Homefinder, Colorado's Denver real estate experts.

Living in a Bigger Home

Is your home getting too small? Here are some things you can do to make your home seem larger. This can be a definite advantage when you are selling a small house. You could even like the results enough to take the edge off the urge to move!

1. Wall Color -- Use light shades of colors that have a warm feeling such as red, yellow, brown and orange. These colors can make a room seem bigger and more welcoming. To give a particular room the sense of added depth, you might want to try the approach of using light colors on three walls and a coordinated darker tone on the remaining wall to make it look like there is more depth in that direction.

2. Using Light -- Sufficient lighting makes any space seem larger. The impression of openness is assisted by bright lighting, since we associate brightly lighted places with open spaces. Focus the lighting on the walls so they will be brighter. You might want to have lighting controls that will allow you to dim or increase the intensity of the lights in each room to meet your mood.

3. Minimum Furniture -- Rooms that have too much furniture tend to look smaller than they really are. The more crowded a space is, the smaller it will appear. Be sure not to crowd your furniture together when you want to make the room look larger than it really is. Avoid putting overbearing armchairs and overstuffed sofas in cramped spaces. To maximize space, use dual purpose furniture. An example would be a footstool or seat that opens up for magazine or pillow storage. This would save the space otherwise needed for a second dedicated piece.

4. Reduce Unattractive Clutter -- Having efficient storage is important in small spaces. The more unneeded clutter you have in your home, the smaller it will seem. This is not just a matter of making your home nicer for prospective buyers, but a good thing to keep in mind in having a healthy outlook for yourself too. Come up with storage systems and solutions that fit your family's needs and lifestyle. By reducing clutter, your house will seem more appealing to guests and homebuyers.

5. Be Mindful of Your Choices in Decorator Items As Well -- The accessories you choose can have an impact on the appearance of size. Use light colored curtains to allow plenty of light during the day. Choose light colored furniture, or as a minimum use light colored covers for the furniture, because choosing light colors will give a more open appearance to the space.

6. Mirrors -- Use wall and door mirrors to give depth to a room. This is one of the most direct and effective home tips ever. Mirrors can be beautiful decorative pieces in themselves, and they serve the additional purpose of adding visual depth.

These six techniques can save you money and effort in the necessary task of making your home more attractive and marketable. When it comes right down to it, these suggestions are among the most efficient methods to improve the value of your home as well as simply making it look great.


Article furnished by Colorado's Louisville real estate specialists of Automated Homefinder.

4 Serious Secrets for Buying Real Estate

One of the best methods of making a profit, as long as anyone can remember, has been by investing in real estate. One of the key features that distinguish real estate from other forms of investment is the very obvious fact that you can live in it. The next layer of complexity in the investment scenario is the phenomenon of "flipping," which is buying a house to remodel and sell for a profit. Whether you plan to invest in a home for your own use or buy a property to fix and resell, approaching it as an investor is something that can benefit you in either case. No matter what type of investment is being considered, having a plan is essential. In the case of real estate, particularly when you need a place to live, this may be the most important element of the whole process. The planning must be completed before even getting started on choosing a property as the target for your investment.

1. Allow Plenty of Time
It is a good idea to begin your search well in advance of needing to make your move. Begin looking and learning with plenty of time before you might feel any pressure to get something settled. Sign up with a number of home-search sites. Check out different firms to find out what their listings are and what is on the market. Sticking with just one could limit your options, and checking out all the available resources so you don't get stuck in what can be seen through one agent's or company's (possibly) narrow field of view takes time. A home purchase involves significant time, money and commitment regardless of whether you plan to use it as an investment Doing it in a hurry could hurt you in a big way.

2. Getting Prequalification Is Important
Another step before buying real estate is getting qualified in advance for a loan. The lender should be located in the community and should have a good reputation. This will help you in setting a maximum price for the transaction. A lender should be able to assist you in determining a reasonable amount to spend, taking into account your household income and other existing debts. Just knowing that you have a lender who is prepared to give you that predetermined amount can boost your confidence. Having that information at the ready as you shop is a significant factor in your favor.

3. Ascertain What You Are Going After
You have to be clear on what it is that you are looking for. You have to really think about it until the details are crystal clear. Set your standards as high as you logically can. If you shoot high, you can always adjust as necessary. You shouldn't have a minimum mentality in the serious matter of buying your home. Target your aspirations for the best, taking your budget into account of course. There is no great loss in bringing it down a tad in case things change, or to be more realistic. Sometimes, some features just aren't available where you are looking.

4. Work with an Expert to Represent You
Locate Realtors who are buyer agents. Don't just rely on whoever is selling the home because that agent has an obligation to look out for the seller. Choosing someone you can work with is something you have to do with careful attention. You must do this with care. It may or may not be advisable to go to a friend in the business, unless you are certain that friend has a good professional standing independent of the relationship.

That's not so bad, is it? Take enough time, find out the level of your buying power, determine your standards, and get yourself a good agent. Using these few steps will help you find the right home for you.

This content was provided by Automated Homefinder, your Colorado home experts.

Seller tip: Hire your own appraiser

Whenever you sell your home, whether it's a villa on the Mediterranean coast, a mud hut in the jungle or your old suburban hideaway, the same principle applies: Buyers are going to have doubts about the asking price. Whether you like it or not, that's just the way it is. They're about to make the biggest investment of their lives.

Buyers can't get much better assurance than an uninterested third party validating the value of your home.

Since real estate dealings involve such a large financial commitment, sellers can boost their home's likelihood of selling by getting a certified opinion from a real estate appraiser. Real estate appraisers have only one job to do. That job is to estimate the worth of a home and they don't have a vested interest in the transaction. Their job is to document an unbiased estimate of the value of the home. An advance appraisal can help you get the most money possible because of the feeling of security the appraisal offers to the prospective buyer.

During the inspection of the home, the real estate appraiser determines the quality of construction, the condition of the total property, and how dated (or outdated) the home may be. They compile data on the property as a whole by making notes and searching public records for the details of other property assessments, past sales and leases, and any other transactions.

Negotiate ahead of time for the appraiser to transfer the appraisal to the buyer.

The home appraisal is a valuable asset that is part of the home, but it loses its value to the seller as soon as the home is sold. Why not offer that appraisal to the buyer? The borrower would save $250 to $500 (or even more), which, in turn, can help you get more money during negotiations. In addition to helping reassure the buyer of your home's worth, you can, for all practical purposes, get all or most of the appraisal cost reimbursed by simply transferring it to the buyer. In addition to saving the buyer money, you also guarantee that the loan won't fall through because of a different (lower) appraisal, because if the borrower hires their own appraiser, it's possible that that appraiser will think the home isn't worth what they're paying.

For a very small charge, usually $25 to $50, you can have the appraiser re-write the appraisal to the new owner. In this real estate market, buyers can walk away from a contract for any reason; sellers need to do what they can to close the deal fairly. Getting an appraisal in advance is a good, inexpensive bone you can toss into the deal to show your good faith and cooperative spirit as a seller. Not only does it increase the buyer's confidence in you, but in most cases it will increase your bottom line as a seller.

Visit AutomatedHomefinder.com for all of your Colorado real estate needs.

Home Remodeling Tips - Where to Get the Most Bang for Your Buck

Are you a homeowner? If you are, and you have been for a while, you are probably considering remodeling. If you are looking to sell, it might be a good idea to remodel the home, and raise the value. Money doesn't grow on trees, so, of course, the average homeowner is going to try to get the nicest changes done with minimal cost. Saving money is important to a majority of people, but that doesn't mean you don't want to get a cheap remodeling job done.

Real estate is a big business, and if you don't do things right, you could over-invest. Remodeling could be for one room, just the outside, or the entire property. Hiring a quality professional is one way that you can get a good job done at an affordable price.

According to the Federal Trade Commission (FTC), homeowners should be aware of the scams of so-called contractors, architects, and designers. The FTC warns about these red flags that your hired help may be running a scam:

• Offers you a discount for finding other customers


• Just happens to have materials left over from a previous job


• Pressures you for an immediate decision


• Only accepts cash payments


• Asks for all the money up front


• Asks you to get the required building permits

Those are some of the signs that you should walk away from the deal. Sometimes these con-artists will also try to get you to borrow money from a lender that they suggest. The worst case scenario of a home improvement load scam could rob you out of house and home.

Precautions to Take
There are several precautions that you can take to avoid being taken advantage of. Interview your prospective contractors carefully. The FTC suggests that you ask about the length of time they have been in business, license details, permit laws, and insurance offerings.

One other, very important suggestion is to ask for references. You should not only collect a list, but you should check those references. Ask these references about the quality of the job and service. Question them as to whether or not there were surprise expenses, and other problems.
Make sure that your payment terms are clear and agreed upon before they start. Some local laws do set limits on how much higher the actual cost of a project can be from the estimate. Find out the laws in your area, and make sure they are followed. Don't pay in full until you are satisfied with the remodeling work.

Article contributed by Colorado's Fort Collins real estate service, Automated Homefinder.