Are the holidays a good time to list a home?

You've heard it before. The holidays are a horrible time to sell real estate. Everything is slow during the holidays. While it may be true that sales do slow during the winter months in your market it can also be a great time to put your home up for sale. Here are a few points to ponder. Some buyers might need to purchase property before the end of the year for tax purposes. Other buyers are more emotional during the holidays so they might be more inclined to pay your price. Typically there aren't as many homes on the market during the holidays for buyers to choose from and gives the seller greater negotiating power. Homes that are decorated for the holidays have better curb appeal and generally will show better since we just cleaned it for the holiday guests! New employees starting jobs during the first of the year will also be out looking since they cannot wait until spring to purchase once transferred. After January listings ( your competition) usually start picking up. If you sell during the holidays you could get more money and be able to make a non contingent offer on your next home and have a larger pool of listings after the first of the year. Remember, the more listings that are on the market equals less competition for the sale of your home. Buyers will also take time off from work during the holidays and have better availability to preview properties than during a regular work week. The number one reason for selling your home during the holidays is that the people that are looking at property are serious buyers and generally want to get something done quickly. The "Looky Loo" buyers are out shopping, sledding, or spending time with family. This brings up the point that you can always restrict showings on the actual holidays or the days surrounding it. If you have any questions about our local Grand Junction Real Estate Market please contact us. We are available around the holidays to help you realize your real estate goals.

Why do I need title insurance when I purchase or are selling a property?

When buying or selling real estate in Grand Junction CO it is very important to have a title insurance policy and to review it before moving forward in a transaction. With a title insurance policy, you as owner, have coverage  that will reimburse you for loss in the event someone places a claim against your property that is covered by the policy.When a title policy is ordered the title company will review the public records throughly and create a list of requirements and exceptions that affect the coverage of the title policy. For example, if a seller had work completed on the property and didn't pay the contractor the contractor could then place a mechanic's lien on the property. This lien would have to be satisfied before closing so that the title to the property could be conveyed free and clear. Other requirements might include satisfying a release of deed of trust on the current seller's mortgage and a affidavit and indemnity agreement signed by the seller stating that no other issues affect the property that wouldn't be disclosed by a public records search. Like most insurance policies there are exceptions that they won't cover. These should be of particular interest to the buyer because down the road you can't use those items to make a claim since they were disclosed to them before the title policy was issued. These items might include right of ways, homeowners associations covenants, or other rights that someone might have to the property that was disclosed in the public record. An example of this might be that if you build a shed on a known right of way for a utility company and the utility company needed to tear down the shed to access that right of way. The new owner likely wouldn't be able to make a claim for the damage since it was disclosed in the title commitment before transfer of title. It is also wise to get a survey or improvement location certificate and provide it to the title company prior to closing so that they can investigate any possible encroachments or boundary issues not shown by public record. Title insurance will pay for defending against any lawsuit attacking your title as insured, and will either clear up title problems or pay the insured's losses. For a one-time premium, an owner's title insurance policy remains in effect as long as you, or your heirs, retain an interest in the property. A few of the most common hidden risks that can cause a loss of title or create an encumbrance on title could also be false impersonation of the true owner of the property, deeds by persons supposedly single, but that are in fact married, fraud, undisclosed or missing heirs, and mistakes in recording legal documents. Buyers should also be aware that a title examination will be looking at any judgments or adverse items on them, so it is important to have those items taken care of when purchasing a property as well. Navigating the title policy can be a little tricky, so be sure to review it with your real estate professional, title examiners, and an attorney should you not be clear on what exactly is being covered and conveyed at closing. 

Mesa County Third Quarter Real Estate Report for 2013

Real estate sales have continued to increase this quarter when compared to the same quarter a year ago. There were 1045 real estate sales reported in the third quarter for 2013 and has increased 11% from the 938 sales in 2012. Year to date there has been a total of 2770 real estate sales in Mesa County and represents a 7.6% increase from the 2573 sales reported in the first 9 months of 2012. The dollar volume also rose in the third quarter transactions in Mesa County totaling $232.4 million. This is a  25.6% increase when you compare the $185.1 million in volume for third quarter 2012. Year to date volume is totaling $580 million and represents a 15.3% increase from the $502.9 million reported for the first three quarters of 2012.
The median residential property price for the third quarter is at $184,900 for July, $169,500 for August, and $167,500 for September.  The average price of a residential home in the Grand Junction Area Realtor Association's  Multiple Listing Service for the third quarter was $203,631 for July, $187,037 for August, and $202,125 for September. In the first three quarters of 2013 there were 591 foreclosures filed and represented a 41% decrease from the 1000 foreclosure filings reported from the same period in 2012. Completed foreclosures (as indicated by the recording of Confirmation deeds) through the first three quarters of 2013 stands at 470 and represents a 24% decrease from the 2012 period's 616 completed foreclosures. The remaining filed foreclosures are either in process, or have been cured and withdrawn. 19% of sales in the first 9 months of 2013 were bank owned re-sales totaling 521 properties. This represents a 24% decrease from the same period 2012 that reported 613 bank owned re-sales. In the third quarter there were 143 single family permits pulled, a 43% increase from the 100 permits pulled last year.  Year to date there have been 353 permits issued for single family homes and that represents a 15% increase from the 307 permits from the same period in 2012. Things are looking up for real estate in Mesa County. Sales, volume, and building permits are up, foreclosure filings and bank owned resales are down. If you have any questions about our real estate market, or are thinking about buying, selling, or investing please contact The Harris Group at Keller Williams Realty and we would love to help. Special thanks to Heritage Title and the Grand Junction Area Realtor Association for the information used in this report.

Buying a HUD home in Grand Junction CO

HUD homes are a great opportunity in the Grand Junction CO area. A HUD home is a 1-to-4 unit residential property acquired by HUD as a result of a foreclosure action on an FHA-insured mortgage. HUD becomes the property owner and offers it for sale to recover the loss on the foreclosure claim. Almost anyone can purchase a HUD home, including owner occupants and investors. Often times there is a owner occupant bidding period where only purchasers who intend to occupy the property as a principal residence can submit an online bid. The time frame is set by HUD when it is offered for sale. Any properties that don't receive an acceptable offer within that time frame is then opened up to all buyers, including investors. To make an offer you need to place a bid. To place a bid on a HUD home you will need to have HUD authorized bidding agent to submit your offer and terms. Previewing the homes is much like any other property listed for sale, it needs to be scheduled through the appropriate office. Don't make the mistake of going on or in the property unannounced or alone as it is considered trespassing if you do. As the buyer you should also be aware that HUD doesn't usually complete any work or even allow the purchaser to do any work prior to closing and they are sold as is. If you are utilizing an FHA loan and the property doesn't meet FHA appraisal guidelines your lender might allow you to escrow funds to bring it to FHA standards once the property closes. If your bid is accepted your agent will be notified and a real estate packet with the contract and addendum's will be sent for you to review and sign. There is usually a limited window of 48 hours to get this returned otherwise it will go back on the market so time is of the essence. Since HUD homes have been vacant and are offered "as is" we HIGHLY recommend that our clients get a home inspection so you know what will need to be repaired after closing or if there are items that weren't apparent during the property preview. The purchaser has a 15 day window to perform these inspections. If there aren't any inspection items then you may move forward reviewing the title commitment, ordering appraisals, and getting your underwriting for your new loan complete. If there are items that need addressed you will need to contact your agent and let them know what you've found and how that impacts the sale of the property. If you are utilizing FHA financing you might not have to purchase another appraisal since the value that HUD set came from an appraisal that was completed before it was offered for sale. This will depend upon when it was completed and it's effective date however so talk with your agent and lender for the details on the particular property you are under contract on. HUD homes are offered for sale on www.hudhomestore.com and is available to the public. No real estate deal is the same so be sure to get an agent in your corner who will represent your best interests. If you follow these following steps you will have great success in purchasing homes offered by HUD.

1. Contact a HUD Authorized bidding agent
2. Contact a Mortgage Professional
3. Find a property that suites your goals and needs.
4. Place a realistic bid
5. Return the original signed contract and addendum's
6. Get a home inspection
7. Review the title commitment/homeowner association documents
8. Close the transaction

Throughout this whole process you should be also asking a lot of questions as well so that you are confident in the decisions you make. HUD homes are a great way to build sweat equity and/or a real estate portfolio so contact us today and we will walk you through the process in person!



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Think your credit score is killing you?

So what is your credit score? Have you been scared to look? Made some mistakes in the past? Would you like to move forward in your goals of home ownership and lower interest rates on other types of credit?
Contact us, we might be able to help guide you towards that goal. We have found that many clients, to their surprise, could actually be pre-qualified to purchase a new home since there are many different loan types and credit conditions that fit their situation. Other clients have seen that even if they have a few marks against their credit with a few simple strategies they could purchase in as little as 3-6 months. Even clients that have experienced bankruptcy or foreclosure have chosen to form a game plan that allows them to purchase on the "seasoning date" of their particular credit challenge. No matter what the situation, with a good game plan you can always start over and move toward your future goals. We love to assist people with those goals and if you know of anyone thinking about buying or selling a home in the Grand Junction or surrounding area's we would love to chat with them.

Keller Williams Realty #1 in the Nation!

We wanted to take a moment on our blog to recognize Keller Williams Realty International. It was recently announced that it is the largest real estate franchise in North America. Keller Williams Realty continues to grow every year and has recently launched real estate firms across the Globe. This continued growth is a direct result of the culture, training, and vision of the leadership at the national ,regional, and local levels. The Harris Group at Keller Williams Realty is proud to be associated with this great company. We are grateful that we can network with the top agents across the globe and provide real estate referrals to our friends and family that are buying or selling real estate outside of the Grand Junction Area. Please contact us if you are looking to buy or sell real estate even if it might not be in the Grand Valley, because we know the best agents in markets all across the globe!

FHA relaxes guidlines to get a loan after a short sales & foreclosures!



FHA has moved to relax its guidelines for borrowers who “experienced periods of financial difficulty due to extenuating circumstances”.  It is called the “Back to Work – Extenuating Circumstances Program”.

Ex-Homeowners, who lost their homes to a short-sale, deed-in-lieu, foreclosure, and/or had to claim bankruptcy because of an extenuating circumstance, or circumstances, are now eligible to purchase a new home in as little as 12 months after a one or both of these events, and FHA has confirmed that they will waive their waiting requirements of 3 years for a foreclosure related (short-sale and deed-in-lieu) event, and 2 years for someone who discharged their debts via a bankruptcy.

With this new program, FHA is evaluating mortgage applicants who have experienced periods of financial difficulty due to extenuating circumstances.  FHA is now allowing for the consideration of borrowers who have experienced an “Economic Event” and can document that:

• certain credit impairments were the result of a Loss of Employment or a significant loss of Household Income, beyond the borrower’s control;
• the borrower has demonstrated full recovery from the event; and,
• the borrower has completed housing counseling via a HUD approved housing counseling agency.

FHA mortgage insurance is now available for any loan which meets two conditions:

1. The loan must be made by an approved FHA lender
2. The loan must meet the minimum standards of the “FHA Mortgage Guidelines”

You may be eligible to qualify for the “Back to Work” exception if:

• You experienced a 20% loss of household income for a minimum 6 month period
• Your loss of income created an economic event such as bankruptcy, foreclosure, short sale, or loan modification.
• You can show a (timing) correlation between the loss of income and the hardship
• You can show that you have recovered from your hardship with 12 months of timely payments

You must also have satisfactory credit:

• You credit history is clear of late housing or installment debt payments, and major derogatory credit issues on revolving accounts;
• Any open mortgage is current and shows twelve (12) months satisfactory payment history.  Mortgages that have been brought current through loan modifications, which may be “temporary” or “permanent”  so long as all payments have been documented as being received in accordance with the modification agreement(s); and
• You meet all other HUD requirements for qualifying for an FHA insured mortgage

You must have housing counseling:

A requirement of establishing Satisfactory Credit following an Economic Event, boomerang buyers looking to use the Back to Work Extenuating Circumstances exception must complete Housing Counseling from a HUD approved housing counseling agency.

Please contact us if you are looking to make a real estate sale or purchase in Grand Junction or would like more details about this program