We Feel Lied To...

Dave,

After moving into our house, a neighbor told us that a few years before a man had committed suicide in the kitchen.  We would not have purchased our home had we know this had happened in the house.  Do we have any recourse other than simply selling the house and moving on or accepting what happened and making the best of it? Surely someone should have told us about what happened!

William, Grand Junction

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William,

I am sure the news came as a shock to you and your family and I have no doubt that it may make it more difficult to live there, knowing what happened in the home.  Unfortunately, in your case,  Colorado has no requirement to disclose such details about any property being sold.  Under and Exclusive Right-To-Sell Listing Contract, Section 5.2.5 deals with situations like this.  It specifically states the broker shall NOT disclose “any facts or suspicions regarding circumstances that could psychologically impact or stigmatize the property”, without the informed consent of the seller. 

It is at the sole discretion of the seller to disclose or not to disclose.  It is likely that your agent did not have any knowledge of the act and quite possible that the listing agent did not know.  Even if the listing agent had knowledge, he/she can not disclose it without the sellers consent.  Bottom line, if the seller chooses not to disclose, it is highly likely a buyer would not find out till after the fact.  

I believe the intent is to not stigmatize a property because of a senseless act that was not the “fault” of the home and thus seriously impact the marketability and value of the home.   You will have to decide what is best for you and your family and I would remind you that you do not have to disclose what happened if you choose to sell.  My suggestion would be to make the best of it.  It is you chance to give this home a “second chance” at being a happy home and making it a home that is filled with peace and love and turning a bad past into a bright future!!  A home is what you make of it, moving forward, not what happened in the past.  Obviously you will choose which way to proceed, but you might find it an opportunity for your family to choose a path of healing and turn the page on a past which was filled with hopelessness and fill it with hope. 

I hope this helps and I will bet you can give this home a new start!!

Dave Kimbrough

The Kimbrough Team

RE/MAX 4000, Inc.

Is Now a Good Time To Buy?

Dear Dave,

It looks like interest rates are going pretty low. We are thinking about taking the jump and buying a house. Do you think that now is a good time to buy considering the rates or should we wait until after the first of the year?

We have heard many different opinions on the time of year to buy a home and just aren’t sure of when to proceed.

We would like to know what you think. Thanks for the time- 

Jim and Sherri - Grand Junction, CO

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Jim and Sherri,

Yes, I believe it is a great time to purchase a home!  We talk about it all the time with our clients and prospective clients.  If you believe you are going to be staying in your home for over 3-5 years then I believe buying at today’s interest rates (again at a multi-year low) is a really good idea.  As for the time of year…. I believe any time of year is a good time of year to buy, as long as it is the right time for you and you find the right home!  I believe the home you live in should be more than an investment, it should be where you want to shape your life and create memories and if you find that place, then that trumps the right/wrong time to buy! 

Who knows what next year will bring… higher prices?  Lower prices? Higher rates? Lower rates? Economic stability? Economic turmoil?  Who knows?  That’s why I subscribe to the “if the time is right” philosophy.  On a personal note, I have many times been hesitant to make a move because of future uncertainty and come to later realize that the uncertainty I was concerned about never materialized.  It was more my own concern about making the wrong decision that I got in the way of making the right one!  Often times the right decision is simply the decision we make, because each of us has a significant impact on the outcome of our decisions!  I will say this in close, don’t pass up on wave after wave looking for the perfect ride, make the most of the wave you catch and you just might get the ride of your life!  Good luck and make the most of whatever path you decide to take.

Dave Kimbrough

The Kimbrough Team

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Can We Perform Our Own Home Inspection?

Dave,

My husband is a home inspector, can he inspect our house we want to purchase?

Anita, Grand Junction

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Anita,

Absolutely!  There are no rules regarding who can and can not inspect a home!  In fact, many of the inspections performed on our listings each year are done by the buyers themselves or one of their relatives.  You can choose whomever you want to do your home inspection or even waive the inspection all together.  We always encourage buyers to perform a home inspection by a reputable home inspector so if you are married to one then you probably know one! : ) 

I hope everything checks out great and you love your new home! 

Dave Kimbrough

The Kimbrough Team

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How Should I Prepare My Home For Winter?

Dear Dave,

I am new to Western Colorado, coming from the East Coast. I am used to winter weather, but am wondering how much I should prepare my home for winter conditions here in Grand Junction.

Do you have any recommendations on whether or not I need a back-up generator in case of power outages? What about sprinkler systems - is there anything special I need to do? I would appreciate any suggestions you might have for me.

I look forward to hearing from you-

Joan - New to Grand Junction, CO

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Joan,

Welcome to Western Colorado, where the people are nice, the living is easy and our winters are really not that bad!  I don’t believe you will find our winters anything like what you are used to.  We do get snow, but it generally melts in a few days, if not later that afternoon when the sun comes back out!  Having a backup generator is not a bad idea, however I have never had need for one in my 25 years of living in Grand Junction.  Power outages are generally short lived and few and far between, as we don’t get ice storms here.  As you know, ice storms are generally the culprit of long power outages.  Although we see little severe winter weather, there are a few thing you do need to do to get ready for winter.

Your irrigation system needs to be winterized and blown out.   Your evaporative cooler (if you have one) needs to be drained and the water supply line blown out.  While you are at it, you need to make sure it is covered or at least the cooler vents are covered so you don’t lose heat through your vents all winter long.  It is also a good idea to close your crawl space vents (if you are on a crawl space) and cover them with insulation.   Clean out your gutters, roof valleys and downspouts to help reduce your chances of getting an ice dam and allow proper drainage when we do get snow and it is subjected to the freeze/thaw cycle.  These items should cover most of the things you need to do to prepare for winter that might be different from back east. 

My bet is, you will love it here and wonder why it took you so long to move west!  Welcome!

Dave Kimbrough

The Kimbrough Team

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Are Skylights a Good Idea in Older Homes?

Dear Dave,

I own an older home that doesn’t have very many windows. I have been throwing around the idea of putting in a skylight or solar tubes. I have heard of people having problems with these things leaking, but I have also heard stories where people didn’t have any problems with them. What is your experience with skylights and/or solar tubes? Would you recommend putting them in a house?

Thanks for the help-

Bob - Grand Junction, CO

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Bob,

I love them!  I love Skylights and solar tubes.   A dark home is NOT a good thing and bringing in more natural light is always a good thing!  You can’t get too much natural light, especially if your home tends to come off dark.   Skylights and Solar Tubes are a wonderful way to brighten up any home with few lingering issues.

There is always a chance for leaking when you penetrate your roof with a hole and then attempt to seal it up, however if installed properly I think you will find few, if any, lingering problems.  The added benefits certainly outweigh the risks and introducing more natural light will not only add value to your home, but also increase your quality of life!  Trust me, it will be some of the best money you can spend on your home.  It is time for you to come into the light!

Dave Kimbrough

The Kimbrough Team

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Are Pre-home Inspections a Good Idea on Older Homes?

Dave,

We will soon be selling our home and looking to downsize.  We have lived here almost 15 years and are the second owners.  We have taken good care of our home and have kept up on routine maintenance and also fixed any items needed over the years.   Our home is older, built in 1976, but has been well taken care of.  We are considering a Pre-home inspection, as one of our friends intimated that it might be a good idea.  Your thoughts on pre home inspections?  Thanks.

Dwight, Grand Junction

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Dwight,

On face value it sounds like you could go either way.   Your friend is right, it can be a really good thing and offer you, the buyer, and the real estate agents some peace of mind that the home is in good condition and free of any major problems.   The decision should be based on your knowledge of the home and how likely you believe it is that a problem may come up during the home inspection period. With any home built in the 70’s there is a reasonable chance that quite a few items will come up on the home inspection, not because you haven’t taken care of your home, but because it is old!   Generally I think it is a good idea, based on the age of your home, but it will set you back $300-$400.  This may be a very small sum in the long run, if it prevents a deal from falling apart.

One major thing that a pre home inspection will do is likely bring any “deal killers” to the surface before you get your home on the market and under contract.  If you do find a significant issue up front this will allow you to get it resolved prior to putting it on the market and getting it under contract.  There is no doubt in my mind that many things that happen during and related to the inspection period, after a home goes under contract, are blown way out of proportion and have as much to do with leverage, emotion, fear and lack of knowledge than the problems that are discovered and their remedies.  Once a For Sale sign goes up in your yard, regardless of what anyone says, everything changes and everything gets magnified, especially in a market where buyers can be difficult to find.

There are two things that I think are a great idea, regardless of the age of your home.    If you are currently on a septic system, I highly recommend you have your tank pumped and inspected prior to putting the home on the market as this serves not only as great preventive maintenance but will also put a stop to any potential septic issues before they generally get started.  Also, have a Licensed heating and air conditioning professional come and give your heating and cooling systems the once over and provide a receipt for a clean bill of health.  Septic systems and your homes mechanical systems (especially heating) are two items that many home inspectors single out and recommend buyers have those evaluated by Septic and HVAC professionals.  It is good preventive maintenance and eliminates the potential for a conflict of interest to have those things checked out ahead of time.   One more thing, if you have any question or doubts about your roof, have that inspected also.  Roof inspections are generally free and will bring any potential issues to light and notify you in advance if your roof is at the end of its expected life. 

I recommend a pre-home inspection if you have ANY concerns about a “deal killer” issue that may come to light.  If you have no concerns about that, then I would not do one.  If you do have concerns that there may be an issue there, some little nagging hunch, then I would pull the trigger on one and not even think twice about it.  You know your home better than anyone and if you think you need to have one done let me know and I will be happy to recommend a few that will do a great job!  A pre-home inspection is not for everyone, but maybe it should be….. I am finding myself rethinking the issue as I write this column.   Thanks for the thought-provoking question.

Dave Kimbrough

The Kimbrough Team

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What Is The Best Way To Estimate The Value of Our Home?

Dave,

We are thinking about selling our house, but we would first like to know how much our home is worth. We’ve seen a few websites—like Zillow and Truila, just to name a couple of them—that say they can estimate the value for us, but we aren’t sure if they are reliable. We know you’ve been doing this for quite a while and trust your advice. When you are selling a house how do you determine if these web sites are a reliable source for establishing the value of our home?

Tom, Grand Junction

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Tom,

I love this question!   For the purpose of this answer we will focus on Zillow as it is by far the most used and relied upon real estate web site.  Zillow is, in my opinion, the best of all the real estate web sites at marketing to the public and to Real Estate agents.  It has established itself as the “go to” web site for helping the public not only keep track of local and national real estate trends and homes for sale, but has also been effective at instilling the perception that it can help you establish a value for your home.  The Zillow.com home valuation tool is called a “Zestimate”. 

I encourage you to go to Zillow.com and click on the FAQ, frequently asked questions, and scroll down to the “How accurate is the Zestimate?” and click to open.  What you will find is what very few know or ever venture to find out.  Here you will find out how good their marketing has been.  The marketing has been so good that the public has willingly flocked to a product that is almost wrong more often than right.  In the terms of statistical accuracy a “Zestimate” is virtually worthless.  What Zillow.com is admitting, in the fine print, is that their Zestimate is not overly accurate.  Actually, statistically speaking it is amazingly inaccurate!  There are too many variables, that don’t have to do with measurable and quantifiable characteristics, to allow a computer to provide an accurate statistical analysis on a home’s value.  Lets dive into some of the specifics!

When the Zillow website states that the Zestimate is accurate within 5, 10 or 20% keep in mind that can potentially mean a PLUS or MINUS percentage number!  In other words, IN COLORADO, if an “off market” (meaning the home is not currently for sale) home zestimate is $400,000 you can figure that value is correct within 10% ($360k - $440k…. an $80k spread) only 68.4% of the time… that means that 31.6% of the time they are even more inaccurate!  In Colorado the Zestimate gets it right to within (+ or - 5%) only 43% of the time!  This means that if you are on Zillow and your home is NOT on the market, the value provided by the Zestimate can not be considered accurate… its more of a poor guesstimate!  On the bright side…. If we look at the Zestimate numbers of “on market” homes the numbers are much more reliable. 

Zillow’s accuracy numbers in Colorado for “ON MARKET” homes (meaning a home that has been listed for sale by a real estate agent or for sale by owner) the accuracy increases significantly (90% are within +/- 5%) and are much more reliable.  Why such a dramatic increase in accuracy AFTER a home goes on the market?  This is because they have a local real estate agent establish a market number so the Zestimate can react accordingly.  In their own FAQ’s they site that after a home is listed that their algorithm incorporates new listing data to provide “valuable signals” about the homes eventual sales price!  I find this statement funny….. the new listing data or “valuable signal” is an accurate list price established by someone with local market knowledge!  

Overall, I would say that online valuation modulators are not a reliable source to establish a homes value.  At Zillow.com it goes on to say that a “Zestimate is a good starting point as well as a historical reference, but it should not be used for pricing a home.”  The very best way to establish your homes value is to have a local real estate professional (or two or three) out to view your home and help you establish a proper market value for your home based on neighborhood home sales and what those numbers indicate that a buyer is willing to pay for similar homes!  These quick computer tools are novel and potentially useful to gauge the overall market temperature, but that may be the limit of their usefulness at this juncture.  No doubt there will be many that work to improve the AI in an attempt to better hone property values, but that day has yet to arrive. 

Hope that helps,

Dave Kimbrough

The Kimbrough Team

Have a question? Ask Dave!

What Is A "Pocket" Or "Off-Market Listing"?

Hi, Dave.

Great columns. I always learn a lot. Can you explain exactly what "pocket" or "off-market listings" are, how they work, and how a buyer can tap into that segment of the market?

Thanks.

Bill F., Grand Junction

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Bill F,

The under used, but often successful "pocket listing"! One of my favorites! A pocket listing can be a sellers best friend and is something that we certainly use an awful lot each year. In fact, we will sell a dozen properties each year by utilizing the “pocket listing” status. A pocket listing is a listing that is not advertised and may be withheld from the multiple listing service until such time you are ready to go public with the sale of your home. With a pocket listing your listing agent can promote it to their peers and colleagues and will typically do so through word of mouth. If you go this route, you always run the risk of word getting out, but your chances of keeping it quiet are exponentially greater. A pocket listing can be a successful way to flying under the radar and still getting your home sold in a timely fashion and getting a jump start on selling before you are ready to put the sign in the front yard. If you go this route, I would suggest you be prepared to move as the results are often times quite good. 

The pocket listing is a great way to get your property exposure on the “down low” and buyers are generally excited to see these properties as they feel like they are getting a sneak peak at it before everyone gets a chance.  It’s a great option for those who dread the showing process or don’t want the hassle of showing after showing for several weeks. The traffic flow is often sporadic at best, but using this method allows you to hunt and peck for candidates that are most often much more targeted and many times pre-screened to help increase the chances they are a fit!  Keep in mind that a pocket listing may not always be the best option.

The pocket listing process does not provide the best environment for competition and multiple offers as the selectivity of who knows or has access can limit the big rush that many times occurs when a new property hits the market. This means that getting multiple competing offers that may drive the price up above the listing price is not common but getting an offer at the list price is a likely outcome because you can leverage the early access angle. Access to these properties is often times just being in the right place at the right time!  Many buyers are often frustrated when they see a house has sold before it even hit the market and feel cheated that they did not get a chance to view it.  One way we help our buyers get access to the ‘off, but on market’ properties is networking with other agents and e-blasting (email blast) to all the agents about what kind of property we are seeking! It’s amazing how many properties turn up when we e-blast for a buyer’s need if properties on the market at that time don’t fill the bill. 

I would encourage you to hook up with a real estate agent and have them start networking and e-blasting your specific property needs and see what turns up after doing so. You have to turn over every stone and sometimes turn them over time and time again to find just the right place! It does not always happen, but it sure can be an effective way to discover special/unique properties that are ready for sale, but just not in plain sight! Looking off the beaten path is sometimes where the best trails are forged! Looking in ways and places not everyone is looking is sometimes where real gems are found. Have a wonderful Sunday and thanks for your question.

Dave Kimbrough

The Kimbrough Team

Have a question? Ask Dave!