good article to consider in this local Colorado market with seller's market conditions...
Learn Why Buyers Pay Over List Price for a Home
from thebalance.com
For many buyers, paying over list price for a home goes against the grain. It goes against everything they have ever known about real estate, which is to say they think you're supposed to negotiate. How can a buyer negotiate if the seller wants more money way over the asking price? How high do you go?
The problem is competition. You've got more buyers than there are homes to buy in a seller's market.
In real estate lingo, it's known as limited or falling inventory. Whenever you have a big
demand for a product in small supply, the price for that product goes up. In a multiple-offer situation, the final price often exceeds the list price.
Using an Escalation Clause to Pay Over List Price
In highly competitive markets, some buyers try to get creative because they are desperate to buy a home. They might employ an escalation clause in their purchase offer. An escalation clause works like this. I want to buy your home, and you are asking $200,000. I would write an offer that says I will pay X amount, let's say $1,000 more than your highest competing offer up to X amount, say, $220,000.
There are buyers who think this is a very clever strategy but few real estate agents agree. I do not use escalation clauses in my real estate practice. Here are a few of the
problems:
•For starters, you don't really know if there is another higher offer.
•Second, you might pay a lot more than you would pay in a normal negotiation process.
•And third, there is no solid sales price named, and lawyers say it could make the contract invalid.
Bidding Against Yourself to Pay Over List Price
In certain circumstances, a seller might ask buyers to go into round two of negotiations.
Say, 10 buyers have made an offer to buy a home. If the seller cannot decide between the offers, or if the offers are similar to each other, the seller might elect to ask each of the buyers to submit their highest and best price for the property.
This is known as bidding against yourself. Because you are asked to increase your offer without knowing how much the other offers are or even if your offer is already the highest offer. Another way to look at this practice is the fact you are given a second chance to change your offer price. Maybe you were the second offer, thinking there would be only two offers. If you had known that there would be 10 offers, you might have offered more in the first place.
The Problem With Paying Over List Price for a Home
On the plus side, if you pay over list price for a home, you might buy a home. Whereas, not paying over list price for a home in a multiple offer situation would mean you are not buying a home at all. However, you run the risk that the home might not appraise. If you are relying on financing to close the transaction, you will need to obtain an appraisal for the bank.
Appraisals are simply a matter of professional opinion and professionals can differ from each other in opinions.
The appraisal will be based on comparable sales. If there are no comparable sales to support your offer price, the home will not appraise. This means you will most likely be asked to pay the difference or to cancel the transaction.
Smart sellers do not accept an offer from a buyer that is too high to appraise. Not unless the buyer has given the seller assurance that the buyer will absorb the difference and close, regardless of appraisal. Bear in mind that a buyer who says the appraisal is waived might be relying on other contingencies by which the buyer could cancel. An appraisal contingency waiver is not always a guarantee that the buyer will close.
Friday, April 27, 2018
High-Resale Value Projects You Can Tackle In a Weekend
from rismedia.com
High-Resale Value Projects You Can Tackle In a Weekend
“There’s no place like home,” as the old saying goes. That’s especially true when it comes to an investment.
You live in and love your home, but there might come a time when you have to leave it. And when that time comes, you’ll want to get as much money as you can for your property so you can move onward — and upward.
In order to increase your abode’s value, you might think you have to put in a ton of time, effort and money, but that’s not entirely true. Instead, you can take on weekend projects over time to spruce the place up so when it’s time to sell, you have a completely updated property that’ll end up selling itself.
Ready to get to work? Roll up your sleeves and start on one of the following five weekend projects.
1. Repaint Your Kitchen Cabinets
When it comes to smart investment in your home, the kitchen is one of the best places to start. Buyers expect kitchens to be updated. Stone countertops, stainless appliances and sleek flooring all make a space feel modern. Obviously, these changes require a lot of money and, sometimes, a lot of time. That’s why you can tackle it in bits and start first with your cabinets.
Old wooden cabinets with equally dated hardware — think oak doors with shiny brass handles — don’t require a complete gut job. Instead, spend a weekend repainting them a more neutral hue. Finish the project off with new metallic knobs and pulls to complete the modernized look.
2. Make the Eye Go up With Crown Molding
Most homes have roughly the same ceiling heights, but there’s a little trick to make yours look bigger — crown molding. Yes, that white line at the top of your painted walls will draw eyes upward, making the room appear airier than it may very well be.
The project is easy enough to complete, too. You might not be able to install molding throughout your entire home over a single weekend, but you can certainly tackle the project on a room-by-room basis. Again, start with the spaces likely to draw in the most moolah:
•Kitchens
•Bathrooms
•Living spaces
•Master bedrooms
These tend to be the make-or-break rooms when it comes to a big purchase. Crown molding adds a bit of detail, a feeling of luxury that’ll certainly add to the bottom line.
3. Boost Curb Appeal — and Backyard Bonuses
No one will come in your home unless the first impression is stunning. Another DIY project should be a landscape overhaul of your front yard. It can be something as simple as adding a path of pavers to your front yard or sprucing up your flowerbeds with colorful blooms. All of this will catch the eye of potential buyers — and fatten up the bottom line of the offers they make.
Another easy fix — your garage door. If it’s street-facing, it’s another area for prospective buyers to look at, and it has a great return on investment.
You don’t have to stop with the front of your home. Especially if you live in a climate that permits lots of outdoor activity, you’ll want a backyard to match. Some may require you rent or buy tools for landscaping and other applications, but imagine the payoff with, for example, the beauty of a functioning fire pit in your backyard. Not only will you be able to enjoy it while you’re still living in your home, but potential buyers will easily be able to envision themselves sitting around a fire.
4. Beautify the Bathrooms
Bathrooms have a big effect on buyers. They expect clean, modern updates, just like in the kitchen. Overhauling your powder room is an easy weekend task that might require small swaps, such as a new modern light fixture over the vanity or a new vanity altogether.
Your full bathrooms will require a bit more attention if you want them to be up to snuff. Again, look in the familiar places:
•Lighting fixtures
•Cabinets
•Hardware
•Countertops
•Tile
You don’t have to shell out a ton of money to have someone else re-tile a wall or backsplash in your bathroom, either, if you have the patience to demo and tile the space yourself.
5. Out With the Really Old
Some accents once considered fresh and fashionable now give your home a dated appearance. You probably already know what in your home screams 70s, 80s or 90s. Whatever it is should go in due course.
The list of outdated design elements is truly endless, but some of the biggest offenders are old-school wallpaper, the floor-to-ceiling wood paneling that may or not be actual wood, and, of course, popcorn ceilings. By removing these three offenders alone — a popcorn ceiling doesn’t take much effort — your home will snap right back into 2017.
Once people start envisioning themselves living in your home, you won’t have to envision offers pouring in — they’ll start coming thanks to your hard work. You go, weekend warrior.
High-Resale Value Projects You Can Tackle In a Weekend
“There’s no place like home,” as the old saying goes. That’s especially true when it comes to an investment.
You live in and love your home, but there might come a time when you have to leave it. And when that time comes, you’ll want to get as much money as you can for your property so you can move onward — and upward.
In order to increase your abode’s value, you might think you have to put in a ton of time, effort and money, but that’s not entirely true. Instead, you can take on weekend projects over time to spruce the place up so when it’s time to sell, you have a completely updated property that’ll end up selling itself.
Ready to get to work? Roll up your sleeves and start on one of the following five weekend projects.
1. Repaint Your Kitchen Cabinets
When it comes to smart investment in your home, the kitchen is one of the best places to start. Buyers expect kitchens to be updated. Stone countertops, stainless appliances and sleek flooring all make a space feel modern. Obviously, these changes require a lot of money and, sometimes, a lot of time. That’s why you can tackle it in bits and start first with your cabinets.
Old wooden cabinets with equally dated hardware — think oak doors with shiny brass handles — don’t require a complete gut job. Instead, spend a weekend repainting them a more neutral hue. Finish the project off with new metallic knobs and pulls to complete the modernized look.
2. Make the Eye Go up With Crown Molding
Most homes have roughly the same ceiling heights, but there’s a little trick to make yours look bigger — crown molding. Yes, that white line at the top of your painted walls will draw eyes upward, making the room appear airier than it may very well be.
The project is easy enough to complete, too. You might not be able to install molding throughout your entire home over a single weekend, but you can certainly tackle the project on a room-by-room basis. Again, start with the spaces likely to draw in the most moolah:
•Kitchens
•Bathrooms
•Living spaces
•Master bedrooms
These tend to be the make-or-break rooms when it comes to a big purchase. Crown molding adds a bit of detail, a feeling of luxury that’ll certainly add to the bottom line.
3. Boost Curb Appeal — and Backyard Bonuses
No one will come in your home unless the first impression is stunning. Another DIY project should be a landscape overhaul of your front yard. It can be something as simple as adding a path of pavers to your front yard or sprucing up your flowerbeds with colorful blooms. All of this will catch the eye of potential buyers — and fatten up the bottom line of the offers they make.
Another easy fix — your garage door. If it’s street-facing, it’s another area for prospective buyers to look at, and it has a great return on investment.
You don’t have to stop with the front of your home. Especially if you live in a climate that permits lots of outdoor activity, you’ll want a backyard to match. Some may require you rent or buy tools for landscaping and other applications, but imagine the payoff with, for example, the beauty of a functioning fire pit in your backyard. Not only will you be able to enjoy it while you’re still living in your home, but potential buyers will easily be able to envision themselves sitting around a fire.
4. Beautify the Bathrooms
Bathrooms have a big effect on buyers. They expect clean, modern updates, just like in the kitchen. Overhauling your powder room is an easy weekend task that might require small swaps, such as a new modern light fixture over the vanity or a new vanity altogether.
Your full bathrooms will require a bit more attention if you want them to be up to snuff. Again, look in the familiar places:
•Lighting fixtures
•Cabinets
•Hardware
•Countertops
•Tile
You don’t have to shell out a ton of money to have someone else re-tile a wall or backsplash in your bathroom, either, if you have the patience to demo and tile the space yourself.
5. Out With the Really Old
Some accents once considered fresh and fashionable now give your home a dated appearance. You probably already know what in your home screams 70s, 80s or 90s. Whatever it is should go in due course.
The list of outdated design elements is truly endless, but some of the biggest offenders are old-school wallpaper, the floor-to-ceiling wood paneling that may or not be actual wood, and, of course, popcorn ceilings. By removing these three offenders alone — a popcorn ceiling doesn’t take much effort — your home will snap right back into 2017.
Once people start envisioning themselves living in your home, you won’t have to envision offers pouring in — they’ll start coming thanks to your hard work. You go, weekend warrior.
12 Agrihoods Taking Farm-to-Table Living Mainstream
Fun new neighborhood styles....
from charterforcompassion.org
Ever wish you could live at your CSA? Or move to a neighborhood where everyone is as excited about fresh, healthy food as you are?
All over the United States people are embracing local food production in an exciting new way. Called 'agrihoods,' this new type of neighborhood serves up farm-to-table living in a cooperative environment. Instead of being built around a pool or tennis court, these housing developments are centered around a farm, often using the sweat-equity of residents to create a sustainable food system for the entire community.
Of course, community gardens, urban agriculture, and cohousing communities are nothing new. But as the rapidly growing crop of agrihoods demonstrates, families are eager to reimagine these collaborative efforts in a new setting--often at the same or lower prices than a traditional suburban neighborhood.
Although the term is freshly minted, agrihoods are already popping up all over the United States. We've rounded up a dozen established or planned communities so you can learn more about how this trend encourages sharing, collaboration, and a healthier, more environmentally-friendly diet.
1. Agritopia
Located well inside the Phoenix metro area, Agritopia features 450 residential lots along with commercial, agricultural, and open space tracts. All are specifically designed to reduce physical, social and economic barriers to relationships between neighbors. The central feature is a working farm complete with lambs, chickens, a citrus grove and rows of heirloom vegetables. "By encouraging sharing, making homes more maintenance free, having easy pedestrian access to most of a resident’s needs, and making an adaptable community, our lives can be simplified giving us more time to enjoy friends and family," explain the residents.
2. Serenbe Commnity
Serenbe is a 1,000 acre community located under 30 minutes from Atlanta’s Hartsfield-Jackson
International Airport. The develpment's four omega-shaped hamlets are carefully fitted into the natural landscape forming an interface between green, wetland and watershed areas of the site and the surrounding sloping hills. Central to all is Serenbe Farms, a 25-acre working, organic farm and CSA which provides organic produce for Serenbe's three on-site restaurants as well as other businesses throughout Atlanta and The Chattahoochee Hill Country.
3. Prairie Crossing
Located in Grayslake, Illinois, this agrihood was designed to combine the preservation of open land, easy commuting by rail, and responsible development practices. In addition to shops, a charter school that emphasizes environmental education and global citizenship, and stables, Prairie Crossing is known for its 100-acre working organic farm which is working to launch the next generation of farmers to grow organic food for the Chicago region.
4. South Village
This community was designed to combine two of Vermont’s most cherished traditions: open space and village living. The agrihood features paths for cycling and cross-country skiing, community gardens, and a 4-acre organic farm that plays a vital role in connecting South Village residents to local food production via a cooperative CSA. Unlike many of the farms we've mentioned, The Farm at South Village boasts a one-acre, 528-panel photovoltaic solar array that produces150kW of carbon-free electricity for the South Village community, the Farm, and the City of South Burlington itself.
5. Hidden Springs
This community in Boise, Idaho, was created around an agricultural heritage and with a small town feel. Created on the site of a 135 year-old farmstead, Hidden Springs offers access to 800 acres of open space. In addition to the Dry Creek Mercantile and restaurant, schools, fire department, and salt water swimming pool, the development centers around an organic farm that produces vegetables and herbs for CSA members and customers of the Mercantile.
6. Willowsford
Located in the heart of Loudoun County, Virginia, Willowsford spans over 4,000 acres and is comprised of four distinctive yet interconnected "villages." More than half of this land is designated to remain as open space under the stewardship of the non-profit Willowsford Conservancy. Out of the other half, 300 acres is used to cultivate more than 150 varieties of vegetables, herbs, fruit, flowers and raise several breeds of livestock--many of which are distributed to the community through the CSA program and Farm Stand.
7. Kukui'ula
It doesn't take long to see that Kukui'ula is a bit more upscale than most of the agrihoods we've listed so far. But the same principles of community and sustainable agriculture guide daily life in this Hawaiian paradise. Tucked in a valley beside a 20-acre lake, the Upcountry Farm allows members to plunge their hands into the stunning red earth, cultivating bananas, papaya, chard, citrus, herbs, pineapple, arugula and breadfruit for the community to eat.
8. Bucking Horse
No where are citizens more hungry for the supportive ties of community than my own home state of Colorado. That's why local developer Bellisimo, Inc. is planning something new for its next project in the popular foothills town of Fort Collins. Built around the principles of community, environment, education, health and economics, the Bucking Horse project will strive to create new standards for a healthier lifestyle. The 160 acre agrihood will feature a trail system, healthy retailers (think bike shop and yoga studio), community gardens, and a farm-to-fork restaurant that will serve up produce and other edibles grown on site.
9. Skokomish Farms
Skokomish Farms is an environmental community built on a former hay farm in the Puget Sound area of Washington state. The community consists of 18 parcels, each of which is divided into a 5 acre homesite with the remaining 35 acres cultivated under a perpetual conservation farm easement. Agricultural activities are managed by a democratically elected farm manager. "You'll enjoy abundant healthy organic and natural produce year-round. We plan to cross-pasture grass-fed livestock, and to raise field crops. In the winter some crops will be grown in greenhouses," explains the website.
10. Harvest
Harvest is an 1,150-acre master-planned, mixed-use development in Northlake, Texas that will eventually be home to approximately 3,200 energy-efficient, single-family houses. At its heart is Tassione Farms, a community garden and orchard where residents will learn how to grow fresh, organic produce and embrace a farm-to-table lifestyle.
11. Sendero
This is just one of three unique villages that will eventually make up the 6,000 Rancho Mission Viejo development in San Juan Capistrano, California. Located on 17,000 acres of permanent open space, Sendero residents can choose from a mix of house styles and neighborhoods that wrap around paths, parks, gardens and the Ranch House – the social hub of the village. Down the road, Sendero Farm and the Ranch Marketplace provide easy access to organic vegetables, herbs and flowers grown right on site--including citrus and avocados.
12. Prairie Commons
Specifically designed with the senior citizen in mind, Prarie Commons will be a pedestrian-friendly development built around a 15-acre lake in Olathe, Kansas. On-site, Tibbet's Farm will transform the existing single-crop operation into a certified organic farm that produces a variety of fruits, vegetables and small-scale livestock. In addition to the farm, a series of community gardens, a farmers' market, cooking school, restaurants and a small grocery market will "reintroduce the heritage of fresh food into a contemporary development."
from charterforcompassion.org
Ever wish you could live at your CSA? Or move to a neighborhood where everyone is as excited about fresh, healthy food as you are?
All over the United States people are embracing local food production in an exciting new way. Called 'agrihoods,' this new type of neighborhood serves up farm-to-table living in a cooperative environment. Instead of being built around a pool or tennis court, these housing developments are centered around a farm, often using the sweat-equity of residents to create a sustainable food system for the entire community.
Of course, community gardens, urban agriculture, and cohousing communities are nothing new. But as the rapidly growing crop of agrihoods demonstrates, families are eager to reimagine these collaborative efforts in a new setting--often at the same or lower prices than a traditional suburban neighborhood.
Although the term is freshly minted, agrihoods are already popping up all over the United States. We've rounded up a dozen established or planned communities so you can learn more about how this trend encourages sharing, collaboration, and a healthier, more environmentally-friendly diet.
1. Agritopia
Located well inside the Phoenix metro area, Agritopia features 450 residential lots along with commercial, agricultural, and open space tracts. All are specifically designed to reduce physical, social and economic barriers to relationships between neighbors. The central feature is a working farm complete with lambs, chickens, a citrus grove and rows of heirloom vegetables. "By encouraging sharing, making homes more maintenance free, having easy pedestrian access to most of a resident’s needs, and making an adaptable community, our lives can be simplified giving us more time to enjoy friends and family," explain the residents.
2. Serenbe Commnity
Serenbe is a 1,000 acre community located under 30 minutes from Atlanta’s Hartsfield-Jackson
International Airport. The develpment's four omega-shaped hamlets are carefully fitted into the natural landscape forming an interface between green, wetland and watershed areas of the site and the surrounding sloping hills. Central to all is Serenbe Farms, a 25-acre working, organic farm and CSA which provides organic produce for Serenbe's three on-site restaurants as well as other businesses throughout Atlanta and The Chattahoochee Hill Country.
3. Prairie Crossing
Located in Grayslake, Illinois, this agrihood was designed to combine the preservation of open land, easy commuting by rail, and responsible development practices. In addition to shops, a charter school that emphasizes environmental education and global citizenship, and stables, Prairie Crossing is known for its 100-acre working organic farm which is working to launch the next generation of farmers to grow organic food for the Chicago region.
4. South Village
This community was designed to combine two of Vermont’s most cherished traditions: open space and village living. The agrihood features paths for cycling and cross-country skiing, community gardens, and a 4-acre organic farm that plays a vital role in connecting South Village residents to local food production via a cooperative CSA. Unlike many of the farms we've mentioned, The Farm at South Village boasts a one-acre, 528-panel photovoltaic solar array that produces150kW of carbon-free electricity for the South Village community, the Farm, and the City of South Burlington itself.
5. Hidden Springs
This community in Boise, Idaho, was created around an agricultural heritage and with a small town feel. Created on the site of a 135 year-old farmstead, Hidden Springs offers access to 800 acres of open space. In addition to the Dry Creek Mercantile and restaurant, schools, fire department, and salt water swimming pool, the development centers around an organic farm that produces vegetables and herbs for CSA members and customers of the Mercantile.
6. Willowsford
Located in the heart of Loudoun County, Virginia, Willowsford spans over 4,000 acres and is comprised of four distinctive yet interconnected "villages." More than half of this land is designated to remain as open space under the stewardship of the non-profit Willowsford Conservancy. Out of the other half, 300 acres is used to cultivate more than 150 varieties of vegetables, herbs, fruit, flowers and raise several breeds of livestock--many of which are distributed to the community through the CSA program and Farm Stand.
7. Kukui'ula
It doesn't take long to see that Kukui'ula is a bit more upscale than most of the agrihoods we've listed so far. But the same principles of community and sustainable agriculture guide daily life in this Hawaiian paradise. Tucked in a valley beside a 20-acre lake, the Upcountry Farm allows members to plunge their hands into the stunning red earth, cultivating bananas, papaya, chard, citrus, herbs, pineapple, arugula and breadfruit for the community to eat.
8. Bucking Horse
No where are citizens more hungry for the supportive ties of community than my own home state of Colorado. That's why local developer Bellisimo, Inc. is planning something new for its next project in the popular foothills town of Fort Collins. Built around the principles of community, environment, education, health and economics, the Bucking Horse project will strive to create new standards for a healthier lifestyle. The 160 acre agrihood will feature a trail system, healthy retailers (think bike shop and yoga studio), community gardens, and a farm-to-fork restaurant that will serve up produce and other edibles grown on site.
9. Skokomish Farms
Skokomish Farms is an environmental community built on a former hay farm in the Puget Sound area of Washington state. The community consists of 18 parcels, each of which is divided into a 5 acre homesite with the remaining 35 acres cultivated under a perpetual conservation farm easement. Agricultural activities are managed by a democratically elected farm manager. "You'll enjoy abundant healthy organic and natural produce year-round. We plan to cross-pasture grass-fed livestock, and to raise field crops. In the winter some crops will be grown in greenhouses," explains the website.
10. Harvest
Harvest is an 1,150-acre master-planned, mixed-use development in Northlake, Texas that will eventually be home to approximately 3,200 energy-efficient, single-family houses. At its heart is Tassione Farms, a community garden and orchard where residents will learn how to grow fresh, organic produce and embrace a farm-to-table lifestyle.
11. Sendero
This is just one of three unique villages that will eventually make up the 6,000 Rancho Mission Viejo development in San Juan Capistrano, California. Located on 17,000 acres of permanent open space, Sendero residents can choose from a mix of house styles and neighborhoods that wrap around paths, parks, gardens and the Ranch House – the social hub of the village. Down the road, Sendero Farm and the Ranch Marketplace provide easy access to organic vegetables, herbs and flowers grown right on site--including citrus and avocados.
12. Prairie Commons
Specifically designed with the senior citizen in mind, Prarie Commons will be a pedestrian-friendly development built around a 15-acre lake in Olathe, Kansas. On-site, Tibbet's Farm will transform the existing single-crop operation into a certified organic farm that produces a variety of fruits, vegetables and small-scale livestock. In addition to the farm, a series of community gardens, a farmers' market, cooking school, restaurants and a small grocery market will "reintroduce the heritage of fresh food into a contemporary development."
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