Gimme! A Legal Land Grab in Boulder
by Osman Parvez ---- Recently, a judge granted a trespassing Boulder couple ownership of land backing open space. The takers of the land are a former judge and lawyer couple. Obviously, they know the law. Seeing the owner's intent to build, they filed an action to possess the land and maintain their access. According to the defendants, this wasn't about access to open space. It was really about protecting their views. The plaintiff's were given a portion of the land, possibly rendering the full lot unbuildable. The previous owners value the lot (and their loss) at $800,000 to $1,000,000. What's [...]
Tell ’em The Facts – Full Disclosure
by Osman Parvez ---- In most states, including Colorado, real estate agents and home sellers must disclose known material facts about a property that could influence a buyer's purchase decision. If you know your roof is leaking, sellers must note this in the disclosure documentation. So what happens if the disclosure is made but the buyer didn't read or notice it? This is a real problem. It recently happened to one of our buyers. He didn't realize that his new HOA banned dogs. Although we had strongly advised him to read the HOA rules and minutes, he didn't do it [...]
Buy Vs. Rent (Download the Model)
by Osman Parvez ---- As part of due diligence, it's very important to do the math before making a real estate purchase. Although I recommend everyone run the numbers, it's especially important for first time home buyers and current renters. About a year ago, I built a model that took your assumptions including length of ownership, appreciation, maintenance costs (and many others) and calculated the difference in cost between renting and owning. I do this because the online calculators I found were woefully inadequate. I've since sent hundreds of copies of my buy vs. rent model to people who contacted [...]
How to Find a Great Real Estate Agent – 12 Interview Questions
by Osman Parvez ---- Recently, I've helped a number of friends and family members find real estate agents in places outside our local market. With Realty Unique's consumer focus and growing online presence we often get these requests. We're happy to help. Yet even with our expertise in real estate, the process to find a good agent can be challenging. In the last few months, I've been getting a fresh taste of what many buyers and sellers go through. Maybe it was a good thing. My recent experiences are the basis for this post. I hope it helps you choose [...]
Due Diligence: Checking Sex Offender Databases
by Osman Parvez ---- Due Diligence. These are the things that all buyers and sellers should do as they move towards completing a residential real estate transaction. Today I'm rolling out a series on due diligence. Here's the first post. --------- An important part of a buyer's due diligence should be to check the database of registered sex offenders. Today, a sexually violent predator is moving from Boulder to Broomfield. Tomorrow it could be elsewhere, perhaps your neighborhood. Two years ago Colorado passed a law to make the databases available online. It's now very easy to check. Please be aware [...]
Radon Scare
by Osman Parvez ---- Worried About Radon? Get the Facts. When I was a little kid, there used to be public service ads on TV about Radon. In the middle of my Saturday morning cartoon binge, up would pop an ad showing children playing in the basement of their home. Suddenly the image would freeze and flip to X-RAY view. There was an alien sounding buzzer noise, and then the image would return to normal. The children would start playing again. The dark and dramatic voice over said something to the effect of, "Did you know that being exposed to [...]
My Lender Lied to Me
by Osman Parvez ---- I happened to check the Searchlight Crusade mortgage blog last night and found an article that relates to my post on option or "pick a pay" loans. It's about a borrower who refinanced his mortgage and was seemingly tricked into a toxic loan by his dodgy lender. The borrower writes, "I recently refinanced and the mortgage broker lied to me about many, many things. I was sold a negative amortization mortgage. The broker provided me a chart showing my payment schedule for 30 yrs; it showed my payment split between interest & principal. I was [...]
Buyers Who Don’t Want A Buyers Agent
by Osman Parvez If you're thinking about buying real estate, I recommend reading "Buyers Who Don't Want A Buyer's Agent", from Searchlight Crusade. The author is a mortgage broker who writes and thinks as a consumer advocate, explaining "the system" as he likes to call it. I've been reading his pieces for over a year and am impressed. His latest article nails it on the head for why you should get a Buyer's Agent if you're in the market for a home. Dan writes, "Buyer's Agents will make more difference to the sales price - not to mention the quality [...]
What Silver Lining?
by Osman Parvez For the last few months, I've noticed an uptick in the number and size of commercial property deals in our region. Interlocken is again hot. Longmont is attracting a number of new companies. Denver is frequently announcing new projects underway and large commercial property deals. A quick glance in downtown Boulder now yields a surprising number of cranes (and more are on the way). As I've mentioned before, rising interest rates and tougher lending standards (including a move against piggyback mortgages) are all signs of credit tightening, which should push potential buyers into renting. Sure enough, residential [...]
A Wall of Water Hits Boulder
by Osman Parvez If you happened to be in Boulder yesterday morning, you may have heard the sirens. Boulder was practicing for a flood evacuation. While there is little statistical chance of a massive flood rampaging down Boulder Canyon into the City of Boulder, on July 31, 1976 just such a flood did occur nearby. The Big Thompson Flood killed 145 people, destroyed 418 houses, and caused more than $40 million in damages - in about two hours. Whether or not you live or work in the flood zone, have a plan for you and your family including a safe [...]
Black Gold?
by Osman Parvez With rising energy prices predicted in the future, perhaps you've entertained the notion of turning the oil and gas buried in the ground below your property into royalty checks 'ala Beverly Hillbillies' Jed Clampett. Not to dash your daydreams, but like most western states, Colorado has separate ownership of underlying minerals and surface real estate. Somebody else very likely owns the oil and gas. Kidding aside, where this has real impact is when it comes time to buy or sell property in Colorado. Title searches may turn up leases or other records that indicate ownership to the [...]
Realtor Conflicts and Buyer Agency
by Osman Parvez According to the Colorado Realtor Commission approved definitions of working relationships, a buyer's agent "works solely on behalf of the buyer to promote the interests of the buyer with the utmost good faith, loyalty and fidelity." Yet, brokers are constantly bombarded with enticements that may create conflict with their responsibility as a Buyer's Agent. Here's an example. Let's say I take up the realtor who emailed me today with an offer for $2500, a chair massage, gift certificates, and a free breakfast (click on image below). Later, when I bring my client to look at the property, [...]
