Food for thought

Food for thought: Thomas Jefferson on property rights

“The right to procure property and to use it for one’s own enjoyment is essential to the freedom of every person, and our other rights would mean little without these rights of property ownership. It is also for these reasons that the government’s power to tax property is placed in those representatives most frequently and directly responsible to the people, since it is the people themselves who must pay those taxes out of their holdings of property.”
– Thomas Jefferson

As I was working towards become an agent, this quote really resonated with me.  If you’re looking for an advocate in your real estate transaction in the Colorado Springs or Denver area, my team and I would be honored to earn your business.   Outside the area?  We have an alliance of local agents that want to earn your business, too.

Call Rob @ 719-440-6626 and let’s talk options.

QOTD

From the inbox: what is earnest money?

Good question!  Simply put, earnest money is your deposit on a home.  (See: Realtor.com The Earnest Money Deposit)  When you make an offer on a home, the seller will often require earnest money to ensure you are a committed borrower.  This can range from $1 – 1% of the purchase price of the home.   Often, you can get this money back at closing, too (though that’s subject to negotiation between you and your lender!).

Looking to buy or sell in Colorado Springs or Denver?  We’d be honored to earn your business!  Call 719-440-6626!

 

 

Landlording, Listings, Real Estate Investing

MARKET FLASH: 3614 Purdue St – asking $157K!

Looking for a great home in Colorado Springs for a fantastic price?  Looking for a cash flow property?  This may meet your needs, too! Look no further than 3614 Purdue!  Lots of showings – get it before it’s gone!  Call Rob @ 719-440-6626!

Mortgages, Short Sales

Mortgage Debt Forgiveness Act extended for 2015

If you owe more than your home is worth, there may be more options than you know.  One such option is a short sale, in which the bank agrees to allow you to sell the home for less than the mortgage balance owed.

If the home is your primary residence, you may also be exempt from paying taxes on the forgiven debt.

What does this mean?  If the lender forgives $10K in debt, the IRS may treat this as income, meaning you could owe taxes.  This Act – the Mortgage Debt Forgiveness Act – is meant to exempt you from those taxes (provided you meet the conditions, etc.).

Questions?  If you’re in Colorado, I’d love to help.  If you’re in one of our sister states, let me know and I will connect you with the local agent!

This is not legal advice.  Always consult a CPA, Attorney and local Realtor as needed!

Colorado Springs, From the inbox, Mortgages, VA loans

From the inbox: Can I really buy a home for $780 up front on a VA loan?

I get variations of this question a lot! The short answer is, “Yes, in Colorado Springs and with a VA loan, it is possible (other areas, please consult your local Realtors!).”

Longer answer: there are three costs to a home buyer generally in the purchase process.

1. Earnest money: this is “good faith” money a buyer puts up to compensate the seller if they (the buyer) breaches contract for a non-protected reason.  I’ve had a lot of success w/$500 earnest money in town.  When that hasn’t worked, we try $750 or $1,000. Note: coordinate with your lender but you can often get this money back at closing.

2. Inspection costs: a home inspection costs about $280 in Colorado Springs. This is a sunk cost; even if you choose not to continue with the purchase, this isn’t reimbursable in the normal course of a purchase.

3. Appraisal: there is an appraisal cost that some lenders will charge upfront, others charge as part of the loan costs.

In sum, it is entirely possible to buy a home for an upfront cost of $780-$1280, depending on the lender and the earnest money required…and that earnest money can often come back to you.

Questions, please give me a call! If you’re looking to buy or sell in Colorado Springs or Denver, I’d be honored to earn your business.

Facebook.com/robthompsonrealtor

Food for thought

Food for thought: On “knowledge is power”

I’ve long held to the idea that “knowledge is power.”  However, I read something today that simply clicked. Is knowledge power? Napoleon Hill doesn’t think so, to a degree.

“Knowledge is only potential power. It becomes power only when, and if, it is organized into definite plans of action and directed to a definite end.”  (Hill, Think and Grow Rich)

This, Hill argues (and I agree) is a key component of success.  It should also be noted Mr. Hill isn’t advocating for power for power’s sake.  Rather, the kind of power he’s talking about is the power to act, to make your way through life and build success.  Knowledge is potential power.  Specialized knowledge, applied to building success, is the key to achieving that success.

The short takeaway: education is important — acting on your knowledge even more so.

This is a fascinating book, providing much food for thought.

QOTD

Quote of the day: we are the product of our thought

“Each of us is what we are because of the dominating thoughts we permit to occupy our mind.”  – Napoleon Hill, Think and Grow Rich

This is a profound quote.  The more I’ve thought about it, the more it’s grown on me. (I am aware of the irony there.)

Personally, I’m driven to advocate for people.  As a father, a military member, as an agent, as a consumer advocate,  I wake up every morning wanting to do battle for and take care of my people.  This is my dominating thought.

What is yours?

From the inbox, Rentals

From the inbox: what’s up with these application fees?

Good question!  Short answer: property managers generally charge an application fee for the work they do in screening tenants for the properties under their management.

Longer answer: Often, companies will charge an application fee only once. If you don’t get accepted to a given property, they may apply that fee to any property in their inventory.  ALWAYS ask them before paying the fee.

Consider, too, that Company X’s fee doesn’t cover Company Y’s fee, even if you don’t get accepted into X’s properties.

You’re best covered by asking about the fees involved in the application with each management company.

Questions, please don’t hesitate to ask!

– Rob

**NOT LEGAL OR FINANCIAL ADVICE**

Maintenance

HouseLogic: Time for a wiring upgrade?

Courtesy of Debbie Long from the Maryland Select Homes group, here’s some tips on what to watch for in your home regarding electrical systems.  Always, always make sure you if you don’t have the training/expertise to make these repairs, you call a pro.

I’m pretty savvy with electronics but I still wouldn’t mess with the electrical system in my home!

 

Colorado Springs Realtor®