How is the Colorado Springs real estate market?
Many times I get asked by people I meet: “How is the real estate market? It’s great isn’t it?”
- Are you a seller moving out of state into a less expensive area? If so, yes.
- Are you a seller wanting to upsize or downsize within the city? Then not so much.
- Are you a buyer trying to get out of a rental into your own 4 walls? Definitely, not.
Someone gets left behind….
In an extremely uneven real estate market like we’ve been having in the past few years, someone gets left out in the cold. In the downturn, buyers dictated price and what sellers had to do in order to “entice” a buyer to want to buy their home. It was quite sad. Sellers scraping by foreclosure or short sale. Buyers sometimes being very unreasonable with their demands.
NOW: the tide has turned. Sellers are on the upside now. If you want to buy a house you’ll have to play by the sellers fiddle. Buyers have to accommodate lease backs after closing, they really can’t ask too much to be fixed by sellers, or preferably nothing, buyers being outpriced by other offers or just bumped because someone brings a suitcase full of cash.
1. Seller beware
a. Sellers Property disclosure
Sellers describe in the Sellers Property Disclosure form what “issues” they’ve had with the home since they’ve owned it or what they know. This form used to be a bit difficult, so it was changed by the State of Colorado to make it less confusing for sellers to fill it out. It does look much simpler now, but more than ever do I find sellers not reading the sellers property disclosure very closely and what has to be filled out.
The form states “Do you have or have you ‘ve ever had problems with….” then behind each appliance or home feature is a “yes”. If there are no issues, nothing has to be checked. Since most sellers don’t think that their home has never had any issues, they dismiss the rest of the form resulting into an empty signed form, not realizing that there also are sections starting with “Have you ever had the following ON the premises” (ie. animals, certain home features), that gets skipped as well and renders the form invalid and useless.
It can become a liability issue. Though buyers are just acknowledging receipt of this document, sellers HAVE to disclose issues and certain facts, so that buyers can make a decision according to the provided information. Sometimes non-disclosure happens accidentally, sometimes willfully. Either way it can be a problem.
b. Due diligence documents
It almost sounds a bit mysterious, but these are all documents that pertain to the home ie. surveys, insurance claims, manuals, repair receipts, etc.
I see many times, sellers not understanding that they HAVE to provide these documents no later at a certain time during the purchase/sales process to give buyer ample time to research everything. Note that this is not necessarily a way to get out of the contract but buyers need to know the good, bad and ugly in order to make an informed decision, whether this home is right for them or not. Wouldn’t you want that as well?
Pushing a folder of documents across the table after closing like a seller did to my buyer is NOT the way to do it, because there were details discovered in this folder that will most likely lead to a dispute involving a lot of money.
These due diligence documents are not to be treated non-nonchalantly as an afterthought. Pull everything out that you have, sellers, and pass it on! Less liability and the knowledge that you have done everything the right and correct way. After all, in this market, you will probably get top dollar for your home anyways.
Buyers are easily left behind in this Colorado Springs Real Estate market. Stressed out from the 5th offer they submitted, arranging moving, financing and juggling the transaction itself. However, it is essential to read documents provided and review statements and information and ask all the questions you have. I do see many buyers not digging deep enough into a home. Don’t skip on home inspections, have them done! A general one, a radon test, sewer scoping, etc.
How do you feel about this market? Are you a seller or buyer?