When you are buying a home, the first thing you do, after your offer is accepted, is to do a home inspection.  Depending on the age of the home, maybe even more than one.  Why?  Inspections uncover big-ticket items that will be your problems, soon after you close on the home.  Depending on what needs to be fixed, as a buyer, you can negotiate a lower price, or a seller credit for closing costs, to reduce your cash due at closing.

I am working on a transaction now where the borrower skipped the inspection all together to save the money.  I did not know about this, until the following series of events took place.  The home is a $70,000 home in Greeley, and at that price point,  it was bound to have some challenges.  The appraisal came back with a list of 30+ things that needed to be fixed/replaced.  This home was in the worst condition of any home I have ever seen in 11 years.  The Realtor, who I don't know, also happened to be really new at the business.  So now it has turned into a nightmare scenario where the FHA appraisal is logged in the HUD system, so anyone who wants to buy that home for the next 4 months, has to use this appraisal.  The seller is trying to fix everything, but pretty much, everyone is frustrated.  I asked the borrower if he did an inspection, because I found it odd that an inspector would not have raised these 30 red flags.

An experienced Realtor would not have put a contract on that home, and a home inspection would have cost the borrower $200, and uncovered all these major problems.  By skipping the inspection, the borrower saved $200, but spent $500 on an appraisal -- an appraisal that told him the same thing that the inspection could have told him - essentially STOP moving forward with this home.

Please make sure you hire an experienced Realtor, and never skip an home inspection!

August.....Really? Where has this year gone? The summer is winding down and school is close to starting again. Which if you are a parent then I'm sure you have a little grin on your face. We took a fun family trip in July to visit my wife's sister in Houston and I would never recommend driving it like we did. Just a little advice I wanted to share with you all.

July again showed that the Real Estate market in the metro area is hot. In fact, Denver reached the highest level on records dating back to 2000. That marks the first time since the housing bust that any city has reached an all-time high. Home values are rising as more people are bidding on a scarce supply of houses for sale. Steady price increases, along with stable job gains and historically low mortgage rates, have in turn encouraged more Americans to buy homes.

Higher home prices help the economy in several ways. They encourage more sellers to put their homes on the market, boosting supply and sustaining the housing recovery. And they make homeowners feel wealthier, encouraging consumers to spend more. The average rate on a 30-year fixed mortgage has jumped a full percentage point since early May and reached a two-year high of 4.51 percent in late June.

Rates jumped after Chairman Ben Bernanke said the Federal Reserve could slow its bond-buying program later this year if the economy continues to improve. The Fed's bond purchases have kept long-term interest rates low, encouraging more borrowing and spending.In recent weeks, Bernanke and other Fed members have stressed that any change in the bond-buying program will depend on the economy's health, not a set calendar date.

Martin Home Group was honored to help 8 clients in July either buy, sell or both. If you are thinking of buying or selling or know anyone who is, please don't hesitate to call me. I appreciate your continued support and trust as, Your Real Estate Agent!

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Sincerely,

Corey Martin

President & CEO

Martin Home Group

Keller Williams Realty, DTC

Mobile: 720-350-3363

Email: [email protected]

www.MartinHomeGroup.com