Having a honey-do list is true to some extent in everybody’s house.  Chores are always getting completed just as a few more items are added.   It’s good to understand the difference between items on the list that don’t have to be taken care of immediately and those that needed to be fixed yesterday.  Here’s the list of chores that cannot wait, get your tool belt ready.

10 Things You Can Live With About Your Home That Buyers Can’t—And Won’t

1.Light switches/fixtures that don’t operate or have mystery functions. If there’s a switch, it should do something. There should be a working light bulb so that people can see it in action–and for goodness sake, the switch should not come with any warning labels! (See picture). Don’t leave any questions about the integrity of your electrical system and make sure all fixtures work properly and safely.

2.Things that wiggle, shimmy, shake or teeter. While you may know where to grab the basement handrail so it doesn’t wiggle, buyers won’t and inspectors will be sure to notice and list the item in the report. So walk through the house as if you are a buyer, note any items that need securing and fix them right away. (You might even enlist the help of a friend since it will likely be hard to find these things that you are so used to).

3.Anything that takes “magic” to operate. If there is an item in your home that requires a “magic touch” to properly operate, chances are it’s something that should be on your list of necessary repairs. People who walk through your home will expect every item to work the way it’s supposed to–without jiggling, banging, jerking, or secret combinations of lifting, turning and shoving. (This includes stuck windows and doors).

4.Sinks or showers that don’t drain efficiently. We get used to sinks or showers that don’t drain well, but this is a symptom of an issue. It’s time to remove the stopper, remove clogs, and if necessary, snake drains. Buyers will appreciate it, and you’ll probably realize how much nicer your bathroom functions (and wish you’d fixed the issue years ago).

5.Leaks, drips, or water stains. Buyers don’t want to see any little brown spots, no matter how small or old the stains are. If you have water anywhere where it shouldn’t be, it’s time to take care of it and repair the damage it left behind.

6.Loss of pressure in the shower. Do you have low pressure in your shower or do you lose pressure if anyone else in your house so much as thinks about using another fixture? This may seem like a minor nuisance, but your buyers probably won’t think so. Start by checking for a clogged shower head or a shower shut-off valve that has been inadvertently knocked partially closed. If that doesn’t work, have a plumber evaluate the system to determine what and where the problems are.

7.Moist or musty basements. The first thing buyers think when they smell a musty basement is water problems. So take an assessment of your basement: why does it smell musty? Do you need a dehumidifier? Do your walls need to be sealed? Is a basement professional necessary for water penetration issues? It’s better to address this now, rather than later. A musty smell is something that could instantly turn-off potential buyers.

8.Fireplaces that don’t work. It’s a great idea to make sure that your fireplace is in tip-top shape when you are selling. Fireplaces are features that draw buyers, but they can also bring worry if there is any uncertainty about its condition, especially for a buyer who has never had one before. If it’s functional and recently serviced or clean, that’s one less thing the buyer has to worry about–and just think how nice winter showings can be with the fireplace going in the background.

9.Uneven walks. Can you say tripping hazard? Now can you say it five times fast while a stranger walks up your path for the first time with a baby in her arms? Are you wincing? Anyone visiting your house should be able to safely navigate your walkways without risking bodily harm. So if that’s not the case at your place, fix it, and fix it fast–you’re about to have a lot of foot traffic!

10.Toilets that run or need special instructions to flush properly. One thing MANY of us get used to over the years is our quirky toilets. I’m sure all of us have been to someone’s home and witnessed first-hand a toilet that doesn’t operate as expected–or you are laughing to yourself right now because you have one of these trick toilets. Toilets are a great invention, but they’re also pretty simple–one of the easiest items around the home to fix. So address any issues right away so they don’t end up being another question on the mind of a buyer.

Making sure all these items are in good working order before you put your house on the market will ensure smoother showing experences for the potential buyers and eventually a smoother inspection.

This information is courtesy of www.usinspect.com

Loving Denver Life,

Vali Hooker
Denver Real Estate Chick

This is a roofing maintenance checklist homeowners can use to assess the health of their roof. As for repairs, it is always recommended that a licensed, professional roofer is used. You may find a problem using the methods below, but it is essential that repairs are performed correctly and thoroughly by a licensed professional; otherwise, the problem could continue to exist—or even get worse. Here are some things to consider when examining your roof:

•Look at the edge of the shingles at the fascia or gutter area. Do you see multiple layers? Three layers is the maximum desired. Do you know the age of this roof covering? Most asphalt shingles are designed to last about 20 years.

•Debris in valleys and gutters should be removed as it blocks water runoff, which may backup under shingles and penetrate the home. Gutters and downspouts should be free flowing and unrestricted.

•Do you see signs of damage from wind, hail, or mechanical impact? Shingles may be torn, missing, worn from tree branches, have holes or punctures, or may be cupping and curling at the edges. Ice damming commonly occurs when melting snow refreezes at the roof’s overhang and will cause shingles to deteriorate prematurely. If in doubt about any observed deficiencies, contact your insurance company and schedule an adjuster to conduct an inspection free of charge.

•Check for worn or damaged flashing around projections through the roof such as vent pipes or hoods, skylights, radon vents, and chimneys. You might also look for metal flashing in the valleys, inspecting for rust.

•Protruding nails (called nail pops) or nails not flush with underlying shingles need to be reset or replaced.

•Look at the top of the chimney, called the splay or cap. Is it cracked or otherwise allowing water to penetrate the chimney interior?

•Are there signs of ponding created where low sloped roofs have started to sag? Do you see cracking, blistering, or alligatoring of the roofing material of low sloped roofs?

•Are there signs of previous repairs? Note the location and condition of those repairs.

•Take a moment to look at your roof venting. Make sure it is not blocked or clogged. Birds, squirrels, and raccoons commonly will nest in vents and roof overhangs.

•Look for moss, mold or brown spots on roofing material. Also check for low hanging limbs or tree branches resting on the roof.

Courtesy of: www.usinspect.com

HUD-owned properties are homes there were acquired by HUD (US Department of Housing and Urban Development) by mortgage default on an FHA-insured mortgage. HUD offers the properties for sale that they have obtained through foreclosure to recover their loses from the defaults.

Greater denver has HUD-owned foreclosures in all neighborhoods, in every price range in many conditions (turn-key to gutted).  A HUD-owned property can be anything from a single-family home to 4-unit residential building.   The process of buying a HUD home is different than purchasing process that is standard in Denver.

Here’s what you need to know:

• HUD Homes are first offered to buyers that will live in the property as their primary residence, owner-occupants.  This exclusive listing period for owner occupants can vary from five days to 30 days depending on the amount of repairs the property needs.  After the exclusive listing period if no bids have been received by owner occupants HUD will open bidding to non-owner occupants, investors.
• During this owner occupant exclusive listing period HUD will collect all bids from owner occupants before accepting one.  They give no priority to the bids that were submitted first.  The property is awarded to the bid that will net HUD the highest proceeds.
• If a buyer bids over the list price then the buyer must bring cash to closing for the amount of the overbid.  So if HUD has a home for sale for $100,000 and you submit a bid for $103,000 because you really want the house you will be responsible for bringing the extra $3,000 to the closing table.  (not including buyer closing costs and down payment)
• When submitting a bid you can ask for HUD to contribute up to 3% of the purchase price towards your closing costs. If you ask for HUD to pay closing costs the amount will be deducted dollar-for-dollar off your bid so don’t ask for closing cost assistance if you don’t want your bid to be lower by that amount.
• HUD Homes are sold AS-IS without warranty or repairs.  It’s strongly recommended to get a home inspection on all properties but no repairs will be made by HUD if problems are found.  If you get an inspection and find there are more problems than you want to deal with then an owner occupant buyer can withdraw before the inspection period ends.
• A buyer must use a HUD-approved real estate broker to view properties, prepare and complete contracts, and submit Internet bids.  When buying a HUD home you really want a professional who is familiar with the HUD buying process.
• HUD homes are in the Denver MLS and are also listed at the HUD Home Store.
• All purchasers must close on or before 45 days of contract acceptance date for normal closings.  Cash closings may be 20 days and 203k closings must close 60 days of contract acceptance.
• It’s true that HUD has 1/2 priced houses under the Good Neighbor Next Door Program.  There are certain restrictions that apply.

This is the short version of buying a HUD property and it’s strongly advised to discuss the entire process in detail with your agent as soon as you find a HUD home you are interested in purchasing.  Each and every one of my buyers that have purchased a HUD home couldn’t be more pleased with their homes but they will all tell you it did take some extra perseverance to get to the closing table.  Denver currently has a number of HUD homes available in all neighborhoods and price points – have you considered buying a HUD property?

Vali Hooker
Denver Real Estate Agent

The term Deed Restricted comes from the Inclusionary Housing Ordinance passed by Denver City Council passed in 2002. Deed Restricted housing in Denver real estate terms is the same as Income Qualified, Affordable or Work Force Housing and they are all references to the City of Denver’s Affordable Housing Program. This program is actually an Affordable Housing Covenant that has restrictions on maximum allowable income of a buyer, sets maximum allowable sales price on future sale of the property and requires that the owner occupy the property as a primary residence.

In Denver private real estate developers that build projects of 30 or more units are required to offer a number of units as affordable homes within their housing development.  Historically speaking Denver’s property values have increased faster than average salaries.  The affordable housing program (covenant) exists to ensure that there will be housing in central Denver that moderate-income buyers can afford, now and in the future.

A buyer must submit an appliance to become eligible to purchase an Income Qualified Home. An eligible buyers must make less than or equal to 80% of the Denver area median income.  The income cap for buyers also varies according to the number of people in the household.  To get an idea of income limits take a look at the Area Median Income at 80% based on the number of people in your household:

Information available at denvergov.org, click table to link

Income qualifying buyers are able to purchase a property in an area (or building) that they may have been priced out of at normal market prices. The property deed is restricted to only be transfered to other income qualified buyers, for now and in the future.  This deed restriction can be forever or for a specific amount of time (20 years, 30 years) and varies with each condo/loft development.  What does this mean to a buyer?  If you buy an affordable property you most likely have to sell it deed restricted as well.  When it is time to sell a seller must submit a Maximum Resale Price request form to the City of Denver.  They will calculate the maximum price the unit can be sold.

To buy an affordable housing home a buyer must be able to qualify for a mortgage loan on there own however they are allowed to seek assistance from programs approved by the City of Denver or accept gifts from a friend or relative. To be eligible for an Income Qualified Home a buyer must complete an application and provide documentation.

Here are points to remember about Denver’s Affordable Housing Program:

• To buy an affordable housing unit a buyer must be an income eligible buyer
• A buyer’s income eligibility will be reviewed through an application and other income documentation that they must submit to the City
• The buyer must live in the unit as their primary residence, no renting the unit
• The owner can rent out a room but still must live in the property as well
• Future sale of the unit is limited to eligible buyers that must submit application to the City
• Resale price will be limited in accordance to the Covenant, to ensure prices of these affordable units continue to be affordable
• A Maximum Resale Price form must be submitted and upon review a maximum resale price will be given to the buyer
• Upon successful sale an affordable housing property may have a profit sharing requirement in which the seller shares profits with the City and/or the developer.

This list is a snapshot of the bigger picture, buying a property in Denver using the Affordable Housing Program may be the perfect way to own in your ideal neighborhood but it’s clear it will take a few extra steps and time to complete the process.  It’s critical that a buyer completely review the covenant agreement before proceeding.  The restrictions should be fully understood as they do vary with each housing development.

Loving Denver Life,

Vali Hooker. Denver Real Estate Broker.

Loft Chicks | 720.273.1969
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5 years ago, Mayor Hickenlooper appointed a community-based Zoning Code Task Force to guide and oversee a multi-year effort to update the zoning code that has been in effect since the 1950’s. Back in the 50’s the zoning code was simple, to make Denver as automobile friendly as possible. The old code didn’t just allow the destruction of historic neighborhoods, it actually encouraged it. In recent years the trend and the plan for Denver is more “urbanism” which means pedestrian friendly neighborhoods, with more mixed-use buildings and capitalizing on public transportation such as FastTracks.  

Denver’s new zoning code, which is simply a regulatory tool for implementing plans and vision for city’s future, is now in sync with this “new urbanism”. The change in zoning is now on par with the city’s investments in DIA and FastTracks and it’s a huge shift which will allow and encourage smart urban redevelopment.

As of June 25^th, 2010 this new zoning code went into effect and what you probably want to know most is “what does this mean to me?” The first step is to understand what the zoning code will mean to you, your home and your neighborhood. You can go to www.denvergov.org to find out the zoning for your home. Since I was last on the site, they’ve made some changes that make that info a little harder to find the new zoning code information so the easiest thing to do is click here and that’ll take you directly to the Denver Zoning Code page. Enter your street address or intersection to find out your zoning code for your specific house or neighborhood.

The zoning codes have all changed, for example, I live in the Platt Park neighborhood and  my home used to be zoned R-2 and the new code is U-SU-B1. U = Urban neighborhood, SU = Single Unit, B refers to lot size and the 1 means that an accessory dwelling unit is allowed.

Like any major effort, the new zoning code is not perfect and no one says it is. This was an enormous undertaking the city of Denver should be commended for the extensive outreach and collaboration used when developing the code. There will be mistakes along the way and more changes will be made but this is an huge step in making Denver an even better place to live. The real test of the new zoning code will come through the private sector developing new projects under the code. And only time will tell what this will mean for you and I and our property values…stay tuned!

Next week, I’ll be posting additional information on the zoning code and give you a cheat sheet that should make it easy to decipher the code. In the meantime, www.newcodedenver.org is a great resource.

Loving life in Denver!

Kim Beethe Byers

Do you think that all of the tax credits have expired? Well, think again!

The City and County of Denver offers a Mortgage Credit Certification (MCC) program that allows qualifying borrowers to receive an annual federal income tax credit equal to 20% of the annual interest they pay on their mortgage loan. A tax credit differs from the standard interest deduction in that… it is a dollar for dollar reduction in taxes owed by the borrower. Borrowers may choose to adjust their W-4 withholding in order to receive the value of the credit on a monthly basis or they can submit the certificate with their 1040 form on an annual basis. The remaining 80% of mortgage interest paid by the borrower remains a normal/standard mortgage interest deduction, which reduces the borrowers taxable income.

Program is For First Time Homebuyers - You cannot have owned a home in the past three years (except in “Targeted Areas”) Borrowers will be required to provide three most years of tax returns to evidence.

Maximum Family Income         Targeted Area      Non Targeted Area

 Families of 2 or fewer                     $91,200                              $88,600

Families of 3 or more                    $106,400                            $101,900

ALL sources of income for persons living in the home must be included in income limitations.

Maximum Purchase Price

Single Family Residence                $433,800                            $354,900

Eligible Properties- Single Family Homes, Condominiums and Townhomes

Benefits - While the exact benefit that a specific borrower might derive from the program is based upon his/her individual tax and income circumstance, the overall credit can be roughly estimated as 20% of the mortgage interest paid on the loan for the life of the loan. As an example on a $350,000 loan with a note rate of 4.5% the credit would be in excess of $50,ooo over the life of the loan.

Funding for this program won’t last forever so act now and give us a call today! You can reach Kim at 303-618-6806 or kim@tbgdenver.com or Vali at 720-273-1969 or vali@tbgdenver.com  Thank you to Jaxzann Riggs of The Mortgage Network for providing this information. You can reach her at 303-394-2121 or jaxzann@earthlink.net

Photo: Matley0 via Flickr

Are you ready to start the process of buying a house in Denver but don’t know what the first steps are? This is a question I get asked most often so here is a quick list to get the ball rolling down the correct path.  Once you do decide this is the direction you would like to go make sure you take time to sit down with your real estate agent to discuss the steps and details that will happen during the home buying process as to avoid any surprises.

1. Decide what you can afford. Generally, you can afford a home equal in value to between two and three times your gross income.  A mortgage lender can help you come to a price range that’s comfortable for you.

2. Develop your home wish list. Then, prioritize the features on your list.

3. Select where you want to live. Compile a list of three or four neighborhoods you’d like to live in, taking into account items such as schools, recreational facilities, area expansion plans, and safety.  Your real estate agent is a great resource for this, they may help you discover other areas that you didn’t think of that match your home criteria and price range.

4. Start saving. Do you have enough money saved to qualify for a mortgage and cover your down payment? Ideally, you should have 20 percent of the purchase price saved as a down payment. Also, don’t forget to factor in closing costs. Closing costs — including taxes, attorney’s fee, and transfer fees — average between 2 and 7 percent of the home price.  If you don’t have 20% saved don’t worry there are other options.  Your real estate agent and lender can help you explore all options.

5. Get your credit in order. Obtain a copy of your credit report to make sure it is accurate and to correct any errors immediately. A credit report provides a history of your credit, bad debts, and any late payments.  IF there are items that are mistakes and/or inaccurate then your mortgage lender can guide you through the process of correcting these items.

6. Determine your mortgage qualifications. How large of mortgage do you qualify for? Also, explore different loan options — such as 30-year or 15-year fixed mortgages or ARMs — and decide what’s best for you.

7. Get preapproved. Organize all the documentation a lender will need to preapprove you for a loan. You might need W-2 forms, copies of at least one pay stub, account numbers, and copies of two to four months of bank or credit union statements.

8. Weigh other sources of help with a down payment. Do you qualify for any special mortgage or down payment assistance programs? Check with your state and local government on down payment assistance programs for first-time buyers. Or, if you have an IRA account, you can use the money you’ve saved to buy your fist home without paying a penalty for early withdrawal.

9. Calculate the costs of homeownership. This should include property taxes, insurance, maintenance and utilities, and association fees, if applicable.

10. Contact a REALTOR®. Find an experienced REALTOR® who can help guide you through the process.

Denver is a large city with many different areas and neighborhoods, it’s best to have the basics taking care of before you start viewing homes.  By doing this you can focus on the features and Denver neighborhoods during the search process and be ready to go when you find one you are interested in calling your home.

Loving Denver Life,

Vali Hooker

One of the biggest frustrations with the government’s $8,000 first-time home buyer tax credit is that a first-time buyer must purchase a property and THEN wait for the tax credit to come.  Saving the money for a down payment and for closing costs is difficult and many first-time home buyers really could benefit from receiving the credit to actually contribute towards the big chunk of change they need up front at the closing table.

A handful of non-profit organizations are paying close attention and have created assistance programs to get those first-time buyers that are eligible for the $8,000 tax credit the money at closing to help pay for the costs to close.  Enter CHAF JumpStart.  CHAF (Colorado Housing and Finance Authority) offers first-time home buyers a fixed interest rate first mortgage loan combined with a second mortgage loan in the amount of $6,000 or 3.5% of the purchase price (whichever is less) for buyers to use to assist in paying for down payment and closing costs.  The second loan is at 0% interest and no payments are due until June, 30th 2010.  The ‘grace’ period of no interest and no payments is to allow first-time buyers time to get the tax credit on their 2008 or 2009 tax returns and then use the tax credit to pay off the second loan.

Now this CHAF program is a great way for first-time buyers to have enough money to get into their first house but it may not be a perfect fit for every buyer.  For first-time buyers that already have other plans for their $8,000 tax credit it’s not a good option. If a buyer uses the CHFA second and doesn’t pay off the loan before the June 30, 2010 deadline then the loan will adjust to 8% interest with a 10 year term. 

If this program sounds like it may work for you or a first-time home buyer that you may know then Kim and I are happy to fill you in on the details on this great program and also get you started looking at houses.  Don’t forget that to receive the first-time buyer $8,00 tax credit you must find and close on your home before the deadline of November 30, 2009.  Contact Kim or me (Vali) to get on track to  find the house that could be your next home!

Below is a chart comparing the Revised First-time Home buyer Tax Credit 0f 2009 with the Firt-time Homebuyer Tax Credit introduced in 2008.  When you purchased your home will have a direct effect on which credit you will be able to take advantage.  

Those who have pruchased in 2009 CAN take the creidt on their 2008 Taxes.  

FIRST-TIME HOMEBUYER TAX CREDIT 

As Modified in the American Recovery and Reinvestment Act

Major Modifications Shaded

February 2009 

This chart is provided to you by Jerra Ryan, Cherry Creek Mortgage Company.

The downtown Denver Partnership is hosting a housing event, Center Yourself, with a long list of condo developers and new rental communities — find out the haps in the downtown housing market! The event is this Thursday, October 9th, 2008 in the Grand Ballroom at the Oxford Hotel (1600 17th Ave.) from 5-7 PM.

There is no admission fee and it’s a great event to grab a cocktail and visit with the developers of Frontview 40, 2020 Lawrence, Spire and many more. There is a lot of new residential developement in Denver’s city center come find out what’s going on.

See you there!