Once you have made an offer on a home and it is accepted, you go into a process called escrow. While you have made a huge step forward into buying your home, there's still a long way to go until you actually close on the home and are named the new owners!
What is Escrow
Escrow is "a contract, deed, bond, or other written agreement deposited with a third person, by whom it is to be delivered to the grantee or promisee on the fulfillment of some condition." It includes the sales contract, earnest money and other instructions such as insurance, inspections or repairs that is put into an account and held by a third party, the escrow agent, until the sale is complete. This protects those funds and ensures that everything in the agreement are met. It also lessens the risk involved for the buyers, lenders and the sellers. It protects the seller, by proving that the buyers actually have the funds to buy the home. It protects the buyer by proving that the seller is the legal owner of the home and that the home has a clear title. As for the lender, they are protected, because, by placing earnest money into the escrow account, the agents involved know that there are funds to pay them for their work. Once the escrow agent collects what they need, the buyer gets title insurance and a title search to make sure there are no claims on the house.
What Needs to Get Done During Escrow
During the time when the home is in escrow, a lot of things need to get completed. This is when the home inspection occurs to ensure that there aren't any problems with the property. Here, you will learn what repairs are needed and how much that might cost. If it is getting way more expensive than you bargained for, you can go back to the seller and request a credit back for those repairs at closing. You will also have to go through the final steps with your lender. All pay stubs and other documents should be up to date and the home should get appraised during this time. You will also finalize how you want to pay off your loan and what interest rates you want to lock in. During escrow it is also the time to read all documents related to title insurance, plat/survey, HOA and schedule of exclusions. A meeting with your insurance agent is also a good idea to make sure you are properly ensured.
The End of Escrow
The escrow process can fail for many different reasons and lead to an unsuccessful closing. For example, the seller can refuse the sale of the home if the escrow agent doesn't do their job right, if the home isn't worth the loan amount, the lender won't ok the loan or if the buyer can't provide proof of their financial stability. If everything checks out ok, however, the escrow agent will be in charge of putting together the purchase agreement and coordinating the final close. The buyer will then sign documents, the deed will be recorded in the buyers name, the down payment will be paid and you will own the home!
How much money do you need to be making to afford a home in Denver? Read the article from the Denver Business Journal to learn more:
Here's how much salary you'd need to buy a home in DenverFeb 21, 2017, 2:09pm MST
Caitlin HendeeDigital Producer / Social Engagement ManagerDenver Business JournalBUSINESS PULSEPOLLCould you afford to buy your home today?RELATED CONTENT9Neighborhoods: Local business surging in Denver's Berkeley districtThis Denver neighborhood is ranked No. 1 for environmental risks322-unit apartment complex to break ground in Golden TriangleHOME OF THE DAYSPONSOR LISTINGRare Divisible Property with a Mountain View
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Homebuyers have a lot more than just the home loan to consider when it comes to purchasing a house.
Besides the principal, mortgage payments also include interest, taxes and insurance payments, meaning things quickly start to get pricey.
EnlargeHomes line the street in the Stapleton neighborhood in Denver.
KELLY JENSEN | KUSA-9NEWS
So, just how much of an annual salary does someone in Denver need to make to really afford a median-priced home?
According to Riverdale, New Jersey-based mortgage company HSH.com's new report, the needed salary total is $72,771.94.
HSH compiled a list of the salaries required to buy a home priced at the median market rate in the U.S.'s 27 largest metros based on:
That means a homeowner would pay $1,698.01 a month for a home, requiring a salary of $72,771.94, the report says. That an increase of just over $2,000 compared to Q3.
Nationally, homeowners need to make $51,962.53 to afford the $235,000 median home price, according to the report.
Among the 27 metros analyzed, Denver ranked 20th for growth in the necessary salary. Pittsburgh ranked first, followed by Cleveland and Cincinnati, respectively.
HSH.Inc is a unit of Foster City, California-based marketing and media company QuinStreet Inc. (Nasdaq: QNST).
Caitlin Hendee is digital producer and social engagement manager for the Denver Business Journal and covers education. Email: firstname.lastname@example.org. Phone: 303-803-9226.
Dakota Ridge is located in North Boulder with stunning views of the foothills. Located near Uptown Broadway and Holiday Neighborhood, restaurants, retail stores and other facilities are easily accessible. A newer neighborhood, Dakota Ridge's properties have a modern feel and are built to be energy-saving and eco-conscious. If you are looking for green-living that is so popular in Boulder, this is the place for you!
Housing in Dakota ridge is diverse. Single family homes ranging from the mid $600's to several millions, townhomes and apartments can all be found in this community. The neighborhood will be complete when the last of its few dozen homes are built and the 3 acre park is complete.The park will include a playground, fields for dogs to run and gathering areas. This will make Dakota Ridge truly attractive for young families.
If you are interested in outdoor activities, Dakota Ridge ranks at a 10. It is conveniently located to hiking and biking trails, Lee Hill Road and Boulder's extensive open space. For family activities, try Gateway Fun Park located just minutes away.
For more information on Dakota Ridge, visit the Boulder Neighborhood Guide
A fireplace is an integral part of a living room. It's a cozy place to stay warm in the summer and it's the perfect centerpiece to seating. What if you have an old, outdated fireplace though? Doing a simple demolition to replace the fireplace and it's mantel can not only give your living room a sleek new look, but, depending on the fireplace, can even increase your living room's square footage.
Demo in a Nutshell
First off, make sure you won't do damage to the structure of the fireplace itselft. Get a contracter to tell you if there is any piping you are going to hit or damage.
Second, you need the right tools. A sheet of plastic should be laid down on the ground to help prevent the demolition from damaging your flooring and surrounding area. Putting plastic in front of surrounding doors will help prevent dust from going into other rooms and an opened window in the demo room will help remove dust. A sledge hammer, large scrap and power chisel are suggested tools. The sledge hammer used to hit parellel to the wall will help prevent damage the the wall behind the fireplace and a large 2 by 4 scrap used like a chissel will help lift the current fireplace up from the wall without damaging the fireplace itself. With this technique, you might even be able to reuse the old fireplace materials somewhere else in your home. And a power chisel is a great choice for fast removal.
Demolition of fireplaces, however, depends on what your fireplace is made out of. So, make sure to get directions on the specifics of demolition for stone, brick, and other fireplaces.
Popular Fireplaces in 2017
Find more at 17 Hot Fireplace Designs
The Denver Business Journal released:
Denver is nation's 3rd-best city for home sellers: Report
Feb 14, 2017, 8:05am MST Updated Feb 14, 2017, 10:38am MST
INDUSTRIES & TAGS
Ben MillerContributing WriterHOME OF THE DAYSPONSOR LISTINGGorgeous renovated home in Sloans Lake/Highlands area
See All Homes of the DayIt's no secret that Denver is a hot residential market.
Last month, the DBJ reported that Denver area had seven of the nation's most 30 competitive neighborhoods for home sales, according to Redfin. And in December, it was reported that Denver homes were flying off the market.
EnlargeA real estate agent shows a home for sale in Denver.
MATTHEW STAVER | BLOOMBERG
Today, Zillow reported that only two hot California Bay Area markets — San Francisco and San Jose — are better home sellers' markets in the country than Denver.
Zillow said it ranked its sellers' markets by the length of time a home stays on the market and the percentage of listings with a price cut.
In Denver, only 6.5 percent of home listings saw a price cut, and homes stayed on the market for an average of only 57 days.
"West Coast powerhouse markets like Seattle, Denver and Portland have been driving the housing market over the past year. Strong job growth is attracting newcomers, causing demand for homes to skyrocket," Zillow said in a statement.
Ben Miller contributes to the Denver Business Journal and compiles the Morning Edition email newsletter. Contact him at email@example.com.
Uptown Broadway is a new neighborhood just on the outskirts of NoBo (North Boulder). Being on Broadway, the neighborhood still has quick and easy access to downtown Boulder, but has properties with more reasonable prices than those near Pearl Street. The neighborhood also has easy access to Estes Park, Lyons and Erie.
Being a newer community, the Uptown Broadway is set up with amenities that make up a downtown of its own. Biking and hiking trails are just minutes away, restaurants, coffee shops and art walks line the streets and the bank and gym are located within the area. It's excess of facilities have really made the Uptown Boulder community a top place to live in NoBo!
The newest addition to the Uptown Broadway area will be the Village at Uptown Broadway. For homeowners looking for townhouses with an urban feel, this new community is just the place to look!
For more information on Uptown Broadway and the Village at Uptown Broadway, visit Village at Uptown Broadway
Since 1994, Zolo Grill has been offering up modern southwestern cuisine. It was recognized by 5280 for its exceptional food and service and thrives to treat guests not only to good food, but to a great experience as well. Head chef, Justin Goerich offers menu items based on the best local and seasonal ingredients around. Not to mention, he brings in the best organic food possible. All items, including meats like chorizo and bacon, sauces,salsas and desserts are made in house. It is no wonder, Zolo has been a Boulder staple for so long!
If you are looking for a good drink and socializing over happy hour, Zolo has that too. With over 150 types of tequila and the special touch of Mixologist, Brian Julsen, treat yourself to a specialized margarita. At happy hour enjoy a margarita for only $5, along with beer and wine for $4-$5. This is the perfect time as well to sample both traditional Mexican items as well as creative Zolo surprises such as Chorizo Stuffed Dates, Jalapeno Rellenos and Seasonal Tamales.
Also check out Zolo for Brunch Saturdays and Sundays 10am-2:30pm, to host a Private Event or to celebrate National Margarita Day on Feb. 22!
Visit their menu http://www.zologrill.com/menus/dinner/
If you are about to sell your home, you are expecting to make a ton of money, but it is important to remember some of that money will be going to realtor and selling fees. Many people are blindsided by these expenses, so make sure you do your research and are sure that selling your home is worth the expenses.
The first expense comes from prepping your home for showings. A home needs to be presentable, so getting your home ready to sale will require some work. You may need to paint, clean your windows, clean the carpet, fix broken hinges and clean up the yard to have good curb appeal. Making sure the home looks like "home" to potential buyers is important. You don't want buyers walking into a home without heat or lighting. So expect to continue to pay utilities for a while. Staging and decorating is also important. You want a home to remain neutral so that the buyer can picture him/herself in the house. You don't want the home cluttered with your personal belongings and family pictures. But, it is a good idea to keep some nice furniture and decor in the home so that it is easy to picture what living there would feel like. Having your home appear nice online is important too. More so now than before, buyers are going online first. So splurge on taking professional photographs of your home.
Closing will incur more expenses as well. A big expense that the seller is responsible for is realtor commissions. Generally 5-6% is paid in commissions split between the buyer's realtor and the seller's realtor. Other expenses could come up based on the closing deal you make with the buyer. Sometimes in the closing, the seller agrees to pay certain fees. Looking for a good realtor will help here. If you have someone that has your goals and best interest in mind, they will make sure you get the best deal possible. Some sellers also incur a home warranty fee if they agree to pay repairs to appliances or other systems in the house. As for taxes, if you get less than $250,000 on your home, you may escape paying taxes. But, if you earn more, you may be paying taxes on the home. Title Insurance is something else that the seller must provide to protect the buyer from any issues associated with the home's history. And finally, moving! Solicit friends to help to try and save money. Moving can become a huge expense, especially if you are moving out of the state.
Nestled up against the foothills with easy access to Mount Sanitas, Newlands Neighborhood is quite the catch in North Boulder.
Developed by the Newland family in 1871, Newlands Neighborhood is speckled with old-style homes and new modern rebuilds. In 1922, when the Boulder Community Hospital opened, Newlands became the established community that it is today. The neighborhood is located between Mapleton Hill and Woodland Hill and only minutes from Pearl Street Mall. The community is also conveniently located close to Ideal Market and a strip mall complete with shopping and coffee shops.
The area is abundant with old apple trees, playgrounds and baseball fields in North Boulder Park. It also has easy access to North Boulder Rec Center, which offers great after shcool programs for kids. Because of the neighborhoods location and convenience, this Boulder neighborhood is one of the most expensive in the areas. But, for young families looking for a nice community or for couples looking to live the life of luxury, this grown up Boulder neighborhood is just the place for you.
To learn more about Newlands Neighborhood, visit the Boulder Neighborhood Guide
When buying a home, it is important that the home is inspected before you go through with the final closing. Your dream home may appear perfect with the naked eye but there are a lot of things that can end up costing you a lot of money in the long run. From the structure of the home to the electrical and ventilation, how much you should actually be spending on the home can change drastically. So, make sure a professional gets in the home and looks it over top to bottom.
Areas that should be examined by a professional:
Structure and Exterior
Structural aspects of a home such as the foundation and framing should be inspected closely before buying a home. If the home is built in a way that will not stand up to expansive soils, you will have a big problem down the road. It is sometimes easy to spot signs of poor structure, but issues can be hidden as well. Further, during the inspection, sidewalks, the driveway, steps, windows, doors, trim, decks, etc. should be closely examined.
The walls, ceilings, counter tops and floors should be closely examined. These areas are key to showing any signs of water damage, construction issues and more.
Roofing can become very expensive. If you buy a home that happens to have a newly replaced roof, you are really lucky! This will save you lots of money in the future. During the inspection, the professional should check the roof, gutters, drainage system and chimneys.
Plumbing and Electrical
Plumbing and electrical are perfect examples of hidden problems in a seemingly nice home. Make sure that the inspector checks the water supply and drainage systems, the water heater and pipes for rust. For electrical, check the number of outlets, the breakers and service panels. Fixing these things down the line aren't a fun way to spend your money in a new home.
Heating and AC
Vents, flutes, air conditioning and the water heater in the home should be inspected. Just like a new roof, a new water heater is a gold mine. Not having to replace this will save you a lot down the road.
Having a home properly insulated is important for saving you money every month. Especially during the winter in Colorado, it is important to make sure heat is not escaping. The attic, crawl spaces and unfinished areas should be checked out. Ventilation is also very important to avoid water damage and mold.
Fireplaces can be a huge hazard if not properly installed. Inspecting the fireplace is especially necessary in older homes to make sure there are no fire hazards that you could be at risk with.
To learn more, visit the National Association of Realtors
I am a real estate professional, serving Boulder and Denver, Colorado. My extensive knowledge of the market, coupled with my commitment to provide extraordinary service, has resulted in hundreds of successful transactions. Let me help you buy or sell your home.