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        <title>Denver Real Estate Blog</title>
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        <description>Denver real estate topics including local metro Denver community news and events.</description>
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            <guid>http://www.denversrealestate.com/blog/how-to-react-to-a-low-offer.html</guid>
            <link>http://www.denversrealestate.com/blog/how-to-react-to-a-low-offer.html</link>
            <author>bruce@bruceswedal.com (Bruce Swedal)</author>
            <title>How to React to a Low Offer</title>
            <description> <![CDATA[ 
You have waited for what seems like eternity and now, out of the blue an offer comes in to purchase your home. The excitement builds and turns into relief, then you realize that the offer is much lower than your list price. What should you do?


Give every purchase offer for your home due consideration. Is it truely unacceptable? If so, your best response is to propose a counteroffer with price and terms that are acceptable. In this market many home buyers submit an offer to check the motivation level of the seller, expecting a counteroffer if it is unacceptable. Keeping a dialog going with a potential puchaser of your home and keeping them involved often times will result in a sale.


Check your Emotions at the Door


Even a low purchase offer still means that there is someone interested in purchasing your home. It deserves a response so stay calm and talk over the different options you have in responding with your Realtor. 


Prepare a Counter


A counteroffer signals the buyer that you are willing to negotiate. Some buyers have a fear of paying too much for a home and want to test a sellers limits. The best response to unacceptable offers is to counteroffer with a price and terms that you are willing to accept. This is true even in multiple offer situations because in competition a low offer could come back with the best offer in the end.


Be careful in how you counter an offer because you could counter yourself out of a deal by changing some things. It is common practice today for a seller to request closing cost assistance. Often times the purchaser needs this assistance in order to close and countering it out of the offer could kill a deal. Make sure your Realtor discusses what is truely important to buyer with their agent.


Talking Terms


Price is usually the first component of any agreement but it is not the only factor. Other negotiating points include closing dates, posession dates, inclusions. In some cases it may make sense to leave price and remove the refrigerator, change a closing date or possession date. By making one part of a transaction more appealing it can make the entire package more appealing.


Check Comparable Home Prices


Check with your Realtor for any new comparable homes either on the market or sold since you listed your home for sale. If those new market statistics indicate the prices have fallen you may need to lower your expectations to match the marketplace if you truly want to sell.


Check the Buyers Comparables


Many times a purchaser or their agent will submit comparable prices with an offer to convince a seller that the offer is fair. Give any comparables submitted with an offer due consideration. Are they similar and truly comapable? If they are, you may have to adjust your expectations. If those comparables are not valid you may want to include comparables with your counteroffer to the purchaser to validate your own price. If the buyer does not include comparables to try and justify the low purchase offer, your Realtor can ask the buyers agent to provide those comparables.


Talk it Out


In many cases having your Realtor discuss the offer with the buyers agent can help to identify what is truly important to both parties and make a counteroffer more likely to be acceptable.


 
 ]]> </description>
            <pubDate>Thu, 26 Jan 2012 09:36:27 -0700</pubDate>
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            <guid>http://www.denversrealestate.com/blog/what-is-a-short-sale.html</guid>
            <link>http://www.denversrealestate.com/blog/what-is-a-short-sale.html</link>
            <author>bruce@bruceswedal.com (Bruce Swedal)</author>
            <title>What is a short sale?</title>
            <description> <![CDATA[ To put this in basic terms a real estate short sale is when the proceeds from sale fall short of the loan balances which encumber the property. This happens when a home owner (borrower) can no longer pay the mortgage against their property. The lender may decide that selling the property short with a moderate loss is better than either pressing the home owner or foreclosure options. Foreclosure can mean larger costs to the bank and a less desirable credit report outcome for the borrower. A short sale does not necessarily release a borrower from the deficiency/remaining balance of the debt or the obligation to repay that deficiency.Short Sale ProcessFor a short sale to occur the mortgage lender needs to agree and facilitate the discounting of the loan balance against the encumbered property because of a financial hardship on the part of the home owner. This allows the home owner the ability to sell the property for less than the outstanding loan balance, turning over the sales proceeds to the lender. The reason for doing a short sale can make sense for both sides, the lender incurs smaller financial losses and the borrowers incur less damage to their credit. Selling a property short is usually faster and less expensive than foreclosure. Borrowers should be careful, because a short sale does not extinguish the deficiency balance unless that is stated clearly in the lenders offer of acceptance.Most lending institutions have a loss mitigation department to test for qualifying conditions and process transactions which could end in a short sale. The timing, criteria and willingness to process short sale transactions really does vary between lenders. The lender will order a Broker Price Opinion, an appraisal or both to establish value when evaluating offers.A Notice of Default need not be issued in order for a bank to accept a short sale request and lenders are slowly becoming more willing to work with short sales. Short sales are being used to help borrowers in financial hardship avoid foreclosure in cases where they owe more than their home is worth.Approvals and ConditionsIt is common for a short sale to require many approvals and conditions. There may be a first and second mortgage on the home which would mean that both lenders would need to approve the short sale, each likely would have their own set of conditions. Other junior lien holders such as an HOA, tax liens and mechanics liens also have the ability to object to a short sale. If there was mortgage insurance that company may also be a part of negotiations if required to pay out a claim. It is a complex process requiring specialized knowledge. There is a high rate of short sales that fail with the home ending up in foreclosure when not properly managed.The rate of short sale failure also varies by the lending institution. In 2009 the lender with the highest failure rate and longest approval time was Bank of America. Smaller, local banks tend to process short sales faster.Differentiation is ConsentAn easy way to understand the differences between short sales and foreclosures is through consent. A foreclosure is the forced sale of a home by the lender while in a short sale both lender and borrower are mutually consenting to the sale. That mutual consent in a short sale process is tenuous at best. Negotiations can be ongoing even while the property is for sale. The home owner may decide to refinance and stay or become uncooperative with the bank and force them to foreclose. On the other hand, the bank may also change their mind or not approve the price agreed to by buyer and seller.Short Sales and CreditShort sales can and do have an adverse effect upon a borrowers credit score. It is recorded as a kind of settlement. However, this effect is less than the effect that a foreclosure would have on a credit history. The effect on credit is also not as long lasting as a foreclosure would be. Through a short sale credit scores can be restored in as little as eighteen months with the ability to obtain a new mortgage in one to three years. In cases where the borrower is current when the short sale occurs, better results are achieved.During the short sale process lenders will occasionally forgive the deficiency debt and care should be taken to understand exactly how that deficiency debt will be treated. Lien holders to the property other than the lender are not as likely to forgive that outstanding debt. After completing a short sale the borrower should also take care to ensure the lender has updated mortgage balances to zero for credit reporting. ]]> </description>
            <pubDate>Sun, 11 Apr 2010 17:15:15 -0600</pubDate>
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            <guid>http://www.denversrealestate.com/blog/seven-easy-tips-to-better-curb-appeal-for-your-denver-home.html</guid>
            <link>http://www.denversrealestate.com/blog/seven-easy-tips-to-better-curb-appeal-for-your-denver-home.html</link>
            <author>bruce@bruceswedal.com (Bruce Swedal)</author>
            <title>Seven Easy Tips to Better Curb Appeal For Your Denver Home</title>
            <description> <![CDATA[ 
Do you need to sell your Denver home quickly or just sell your Denver home?&nbsp; Maybe you just want to get on with your life and into your next home.&nbsp; Generating a quick sale is easier when you know a few of the tricks to give potential Denver home buyers a better impression of your home by improving its curb appeal.&nbsp; Even if youre not selling it never hurts to spruce up the outside of your home with a bit of handy work and maintenance.

Where to start?&nbsp; Most want to start with the clean-up but Denver home-owners should start with the work that is going to either take the longest or make the most mess.&nbsp; You want to take care of these issues first so you can avoid having a mess while Denver home buyers are previewing your property.

Sidewalks and DrivewaysThoroughly inspect your sidewalks and driveway for any damages which need repair.&nbsp; If there is any damages home-owners in Denver should seriously consider taking on the expense of having them repaired.&nbsp; This could end up being one of the most expensive tasks in your list, but it is also sure to instantly increase your homes curb appeal.&nbsp; This is an item that every potential home buyer seeing your property will ask themselves &ldquo;How much will this cost us?&rdquo; and lower any offer by at least that amount.&nbsp; Sellers who make these repairs themselves will be able to avoid buyers asking this question and lowering their bid.&nbsp; They will also not exclude potential buyers who either dont want to bother with the repair or dont have the capital to make the repairs themselves.

FencingMost homes in the Denver metro area will include some kind of fence.&nbsp; If that is the case, taking care of any needed fence repairs or maintenance is equally as important as sidewalk and driveway repair.&nbsp; One nice thing about repairs to the fence is they should cost substantially less than the driveway.&nbsp; After metro Denver home buyers pay a large sum of money for the home purchase, the last thing they want to do is shell out additional money for fence repairs.&nbsp; In most cases you will not have to go as far as replacing the entire fence but can simply repair any damages.

Landscaping: Shrubs and LawnsThe idea behind landscaping is to enhance the curb appeal not hide the assets of the property.&nbsp; The landscaping should add color through flowers and bushes to brighten and accent the areas around your home.&nbsp; Make sure to select your plants, shrubs and trees carefully so they complement the areas and do not look out of place.&nbsp; Make sure that the landscaping does not hide any doorways, block views from windows or make walking pathways tricky.

Maintaining your landscape is just as important as planting it, so make sure to trim the shrubs and mow the grass.&nbsp; Take care of any bare spots with sod or seed and edge the lawn for a more crisp appearance.&nbsp; Any trash or debris should be removed from the yard and disposed of.

Shrubbery should be trimmed to a clean look and manageable size and any dead tree branches should be removed and discarded.&nbsp; Plants which show signs of disease should be treated by professionals or removed and replaced.

The GarageThe first thing to do when cleaning a garage is to identify anything you will not be moving with you and get rid of it.&nbsp; Thoroughly sweep out the garage and check the corners for any cobwebs which need removing.&nbsp; You might also consider going with the trend and covering the floor with a garage coating.&nbsp; If you have any issues with bugs take the time to use an insecticide in the garage area.&nbsp; Lastly you should inspect the garage door for any needed repairs and wash or paint it as needed.

Exterior Windows and DoorsThat front door is the potential entryway to your Denver home buyers nirvana and should be treated accordingly.&nbsp; Scrub it down, paint it up and if need be send it to the scrap heap and replace it.&nbsp; Ensure that you have a properly functioning doorbell, replace any hardware that is looking worn.&nbsp; You dont want home buyers cringing when they open your door as it makes a sound like nails on a chalkboard so oil those hinges.&nbsp; Repair any broken or cracked glass or torn screens.&nbsp; Do this throughout the home.

Dont forget about the windows!&nbsp; Completely clean the windows, including the screens, frame and tracks.&nbsp; Look for any broken or cracked glass or torn screens and make the needed repairs.&nbsp; If the paint is looking dull or dirty, take care of that by giving it a new coat.&nbsp; Dont forget about the window coverings.&nbsp; Look at them from the inside and outside.&nbsp; If they look dirty, clean them.&nbsp; If washing them does not do it then replace them.

CleaningThere is a method to cleaning.&nbsp; Cleaning your Denver home should include taking the time to remove any debris, put away any tools and dont leave toys laying around.&nbsp; If you have a dog house, outbuildings or any other exterior features or structures give them a thorough examination.&nbsp; Clean everything you can, paint everything that needs it and inspect that mailbox while youre at it.

Sprucing UpNow that you put in the time you think all the difficult chores are over.&nbsp; Not so fast!&nbsp; Now is the time for a bit of sprucing up or you might call it accessorizing.&nbsp; Is there anything missing to get that nice finished look?&nbsp; How about some flowers or a window box to give potential buyers something for their senses as they walk up the path?

A small investment in improving curb appeal can mean thousands back when selling and most importantly it can be what tips the scale in a potential Denver home buyers mind to choose your home.&nbsp; A home that looks well maintained gives the impression to home buyers that it was well cared for.&nbsp; No Denver home buyer dreams of paying a large sum of money to purchase a home only to have to make numerous repairs to right away.&nbsp; So when you want to sell your home quickly, take the steps needed to make it stand out from the curb.
 ]]> </description>
            <pubDate>Fri, 12 Jun 2009 15:18:04 -0600</pubDate>
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