I hope everyone had a nice Thanksgiving Day yesterday! I did. We ate, were disappointed to see the Dallas Cowboys lose to the New Orleans Saints, and Skyped with our children. Holidays aside, I have been studying like crazy. There is so much to learn. Not only does Colorado want real estate people to learn everything at the broker level, but the Real Estate Commission also wants to go to great lengths to protect the public. They want the people to understand what's going on.
Today I'd like to talk about the different relationships someone (who could be an individual, more than one person, a partnership, and a company) can have with a Colorado real estate broker. I'd also like to give you a link to the "Consumer Corner" of Colorado's Division of Real Estate. They have lots of good information for people interested in buying or selling a house.
Now, in plain words I'll tell you the three basic ways I can have a working relationship with you, and then I'll tell you my obligations to you based on that relationship. The first type of relationship is as a customer. If I meet you and I don't know your name, or I meet you when I am working as an agent for someone else, you are a customer to me. We do not have any written agreement.
The next type of relationship is as an agent. I could be a seller's agent or a buyer's agent, but we have a written contract and I have obligated myself to "represent you" or work FOR you. You are my client or principal, or whatever the legal jargon is, and I may not necessarily get paid by you, but I will work on your behalf.
The third type is as a transaction broker. There may or may not be a written contract and the relationship is in-between a customer and a client. If there is no written contract and I am working with you in some way, Colorado considers the transaction-broker relationship as the default way that we are working together.
You don't get any special designation if you are in a transaction brokerage relationship with me or any Colorado real estate broker, although maybe the law will eventually come up with a name besides "party." However, I have more obligations to you when you are a party than when you are a customer.
Although it may seem obvious, in any of these relationships, I want you to know that I do not have any obligation to do anything illegal.
Now, to help you choose, I'd like to spell out some of the obligations I have to you. I have the fewest obligations to a customer and the most obligations to a client. However, I do have responsibilities to customers.
When I am a Colorado real estate broker, and you are a customer, I owe to you all the obligations owed under state and federal consumer protection laws. I owe you:
(1) Honest and fair dealings—For example, this means that if we are trying to work a deal together, I must tell you if I am an agent for someone else in the same deal, so that you don't tell me information that I can use FOR my client.
(2) Reasonable care and skill in performance—For example, if you give me a "good faith deposit," I must be very careful to deposit it into an appropriate trust or escrow account.
(3) Disclosure of all material facts about the property that I know or that I should have known—For example, if the property has a house built before 1978 and there is a possibility of lead-based paint, I need to tell you about that possibility as well as give you federal information.
When I am a Colorado real estate broker, and we are in a transaction broker relationship, I still owe you the same obligations I owe to a customer. The examples may be different, but I still need to treat you ethically and responsibly. In addition to those obligations, I owe you:
(1) Performance of the terms we set in the written agreement—For example, I will present all offers to you and help you fill out any Colorado Real Estate Commission approved forms.
(2) Neutrality and confidentiality—I may be working with another person as a transaction broker in the same purchase, so I need to advocate for neither and neutrally help both parties. I also need to not disclose to either party confidential information about the other party. What you tell me, stays with me and what the other person tells me, stays with me. However, in following "disclosure of all material facts," including information about the seller’s property, I must disclose a buyer's financial ability to complete the transaction and whether the buyer intends to live in the residential property.
(3) Assistance with closing—For example, I will help organize a list of deadlines so that obligations can get done before the closing.
When I am a Colorado real estate broker, and I am an agent for the seller or the buyer, I still owe the same obligations as to a customer. I also owe you all the obligations in a transaction brokerage, except for neutrality. I go beyond neutrality and I work FOR you. I work hard to fulfill the terms of our contract. I advocate for you, which means I encourage and protect your interests with maximum loyalty and faithfulness. My focus becomes figuring out the best way to solve any issues and presenting that information to you. I spend lots of time and effort trying to accomplish the goal of the contract. I also want to give you any knowledge, experience, and advice that will help you along the way.
The best reason to have an agency relationship - to be my client - is to have an ally during a very complicated process that involves a lot of your money. An advocate is someone who stands beside you and fights for you. I would also want to make sure that you understand everything as things happen. I absolutely hate buying or selling houses when I'm surprised about what's happening. I really want to know BEFORE it happens. By the way, something interesting about Colorado real estate law is that I can be a buyer's agent and get paid by the seller, so it may not cost the buyer any extra to have my help.
In case you want more information about Colorado real estate working relationships, you can also look at Chapter 14 of the 2009 Colorado Real Estate Manual.
Friday, November 26, 2010
Tuesday, November 9, 2010
The Fair Housing Act Prohibits Discrimination
Today I want to talk about the federal laws regarding housing discrimination. They are actually about eliminating discrimination when people want to buy a home. This topic is really important. To start with, Title VIII of the Civil Rights Act of 1968 (Fair Housing Act), prohibits discrimination in the sale, rental and financing of dwellings based on race, color, religion, sex or national origin. This was amended in 1988 to include discrimination because of disabilities or family status. At the United States Department of Justice, Civil Rights Division, the latest Fair Housing Act directive is spelled out, including how to file complaints and criminal penalties.
What are the exceptions? Who is exempt from following these laws when selling their property to someone?
There is an exception to the family status (children or pregnant women in the family) which is based on the Housing for Older Persons Act of 1995 (HOPA). To qualify for the exception, the housing development must advertise that it is for older adults and there must be a person who is 55 years of age or older living in at least 80% of the occupied units. If you want more information about the "older people" exception, it's available in the Federal Register for Friday, April 2, 1999.
Religious organizations and private clubs can still limit their property to just their own members as long as the restriction is only based on religion or club membership. Also exempt is someone selling their own home as long as that person doesn't own more than three homes at a time. Another exemption is an owner who lives in a unit of a fourplex or smaller.
However, if the person or property doesn’t fit into any of these categories, he or she does not have to worry about discriminating against someone who has been convicted of illegally manufacturing or selling "controlled substances" (drugs). It is okay to not sell their property to someone like that.
Now that we've talked about exemptions, let's talk about what the Fair Housing Act basically means. Ignore the exceptions for now. Let's say I'm a Colorado real estate broker, which I'm going to be some day, and someone comes in to buy or sell a house.
Let's take two imaginary people. We'll call them Jang and Vanar, using names from a "neutral baby name" site. We will say that they are two people, but beyond that I don't know anything about them: their genders, ages, nationalities, functionalities, or beliefs. One or both of them could need my services.
If one or both want to sell a house and I create a legal contract with them to list and sell the house, I would want to see the house and get the best value possible, which means showing the house to anyone who qualifies financially and is interested in that type of housing.
If one or both want to buy a house, and if I have a policy of asking people to prequalify financially, I would ask the prospective buyer to do that first. If I am truly acting without discrimination, I treat everyone equally. I find out what kind of housing is wanted and I try to show places that will work.
Basically, if we ignore the exceptions (housing for only those over 55 years of age, religious or private clubs, someone convicted of involvement with illegal drugs), it is not okay to treat someone differently when selling, buying, renting, leasing, etc., because of their family status, ethnicity, age, religion, gender, or physical or mental disability. The only way to differentiate people is on their "ability to pay" or for economic reasons.
What are the exceptions? Who is exempt from following these laws when selling their property to someone?
There is an exception to the family status (children or pregnant women in the family) which is based on the Housing for Older Persons Act of 1995 (HOPA). To qualify for the exception, the housing development must advertise that it is for older adults and there must be a person who is 55 years of age or older living in at least 80% of the occupied units. If you want more information about the "older people" exception, it's available in the Federal Register for Friday, April 2, 1999.
Religious organizations and private clubs can still limit their property to just their own members as long as the restriction is only based on religion or club membership. Also exempt is someone selling their own home as long as that person doesn't own more than three homes at a time. Another exemption is an owner who lives in a unit of a fourplex or smaller.
However, if the person or property doesn’t fit into any of these categories, he or she does not have to worry about discriminating against someone who has been convicted of illegally manufacturing or selling "controlled substances" (drugs). It is okay to not sell their property to someone like that.
Now that we've talked about exemptions, let's talk about what the Fair Housing Act basically means. Ignore the exceptions for now. Let's say I'm a Colorado real estate broker, which I'm going to be some day, and someone comes in to buy or sell a house.
Let's take two imaginary people. We'll call them Jang and Vanar, using names from a "neutral baby name" site. We will say that they are two people, but beyond that I don't know anything about them: their genders, ages, nationalities, functionalities, or beliefs. One or both of them could need my services.
If one or both want to sell a house and I create a legal contract with them to list and sell the house, I would want to see the house and get the best value possible, which means showing the house to anyone who qualifies financially and is interested in that type of housing.
If one or both want to buy a house, and if I have a policy of asking people to prequalify financially, I would ask the prospective buyer to do that first. If I am truly acting without discrimination, I treat everyone equally. I find out what kind of housing is wanted and I try to show places that will work.
Basically, if we ignore the exceptions (housing for only those over 55 years of age, religious or private clubs, someone convicted of involvement with illegal drugs), it is not okay to treat someone differently when selling, buying, renting, leasing, etc., because of their family status, ethnicity, age, religion, gender, or physical or mental disability. The only way to differentiate people is on their "ability to pay" or for economic reasons.
Friday, November 5, 2010
What Do Real Estate Appraisers Do?
Hello again. Along with lots of studying, this week I have been doing some fun things, too. On Tuesday night I went to the Grand Junction Symphony Orchestra's performance. It was great as usual. On Monday night I went to Pantuso's Ristorante at their new location. They invited people to dine before they officially opened in order to get the wait staff some experience and to see what needed to be improved.
On the real estate front, I wanted to share some information about appraisals. Lenders usually require an appraisal done before financing is approved. That is done to make sure that the lender is not authorizing more money than the property is worth. There is an organization, the Appraisal Foundation, which establishes national qualifications and standards for practicing appraisers. Then each state has its own requirements. If you want to find a licensed appraiser on your own, you can go to the Appraisal Institute. You can enter your zip code and find a list of appraisers who are members of the institute. You can also find out about those initials after the appraiser's names, like MAI, SRA, and SRPA.
But what do appraisers do? Remember last time when we talked about picking a listing price for your house. We talked about finding recently sold properties, currently listed properties, and properties that were taken off the market without selling. Appraisers look at recently sold properties, but they also look at so much more. They look at the national, regional, and even neighborhood trends. They look at the physical conditions of the property. When they compare the property to other properties, they are usually looking at market value.
What if you have updated your house yourself and kept all your receipts? You may be wondering if you can just add that to the original cost of your house. Or what if you read on the internet that the cost of houses in your city is increasing by so much per year - can't you just do the math yourself?
I wish it was that easy. Although all the hard labor you put into your house is very valuable to you, it may not mean as much to someone considering the purchase of your house. Buyers pay attention to market value, not the value that you have put into your house. Market value is what a motivated buyer is willing to spend on your house, but, in order to be accurate, the buyer must not be emotionally involved in your hard work. The buyer is emotionally involved in seeing themselves in your house, instead. Their tastes might be different from you and they probably care about different things than you do. Sellers and buyers definitely look at the same house differently.
This is why selling a house is hard work for the seller. It means letting go of memories and trusting that someone else will make new memories with their house.
Once an appraiser has done the market research of your house, the neighborhood, and real estate trends, the appraiser analyzes the information usually using three approaches. They are the sales or market approach (comparing it with other properties sold), the cost approach (how much would it cost to rebuild it at today's prices), and income approach (how much money, like rent, could be gotten from the property). He or she picks the "highest and best use." If your house is in a residential neighborhood, its highest and best use is usually to be used as a residential property. He or she reconciles the estimated values to get the final estimate. Then he or she prepares a report with all of that information.
The most important thing to remember is that the appraiser doesn't create the value of the property. He or she does research and then verifies the value with the appraising tools.
On the real estate front, I wanted to share some information about appraisals. Lenders usually require an appraisal done before financing is approved. That is done to make sure that the lender is not authorizing more money than the property is worth. There is an organization, the Appraisal Foundation, which establishes national qualifications and standards for practicing appraisers. Then each state has its own requirements. If you want to find a licensed appraiser on your own, you can go to the Appraisal Institute. You can enter your zip code and find a list of appraisers who are members of the institute. You can also find out about those initials after the appraiser's names, like MAI, SRA, and SRPA.
But what do appraisers do? Remember last time when we talked about picking a listing price for your house. We talked about finding recently sold properties, currently listed properties, and properties that were taken off the market without selling. Appraisers look at recently sold properties, but they also look at so much more. They look at the national, regional, and even neighborhood trends. They look at the physical conditions of the property. When they compare the property to other properties, they are usually looking at market value.
What if you have updated your house yourself and kept all your receipts? You may be wondering if you can just add that to the original cost of your house. Or what if you read on the internet that the cost of houses in your city is increasing by so much per year - can't you just do the math yourself?
I wish it was that easy. Although all the hard labor you put into your house is very valuable to you, it may not mean as much to someone considering the purchase of your house. Buyers pay attention to market value, not the value that you have put into your house. Market value is what a motivated buyer is willing to spend on your house, but, in order to be accurate, the buyer must not be emotionally involved in your hard work. The buyer is emotionally involved in seeing themselves in your house, instead. Their tastes might be different from you and they probably care about different things than you do. Sellers and buyers definitely look at the same house differently.
This is why selling a house is hard work for the seller. It means letting go of memories and trusting that someone else will make new memories with their house.
Once an appraiser has done the market research of your house, the neighborhood, and real estate trends, the appraiser analyzes the information usually using three approaches. They are the sales or market approach (comparing it with other properties sold), the cost approach (how much would it cost to rebuild it at today's prices), and income approach (how much money, like rent, could be gotten from the property). He or she picks the "highest and best use." If your house is in a residential neighborhood, its highest and best use is usually to be used as a residential property. He or she reconciles the estimated values to get the final estimate. Then he or she prepares a report with all of that information.
The most important thing to remember is that the appraiser doesn't create the value of the property. He or she does research and then verifies the value with the appraising tools.
Sunday, October 31, 2010
Choosing a Listing Price
Hello, readers. I have been learning so much new material that I've been overwhelmed by all the good topics to blog about. And I've been busy with my class: after I went through the chapters and homework and quizzes, I had to study for a huge test that covered lots of material regarding national real estate laws. There will be more of those tests, so I developed a process of studying the material and doing well on the tests.
I'd like to share with you about finding a listing price when a house is offered for sale. Let's say that you have a house that you want sold. You contact me and I come over to look at the house with you. We reach an agreement that I am going to sell your house. We are going to use an exclusive right-to-sell listing agreement. This means that I will be the agent working for you and I will follow all legal orders you give me about selling the house. In order to help you decide on the selling price, I will provide you some information about:
1. similar houses that were recently sold,
2. houses currently being offered for sale, and
3. those that were taken off the market without being sold.
If you have a range of comparable prices that are gotten from those three groups, you can make a decision. After studying that information, you choose a price that reflects both how soon you want the house sold and how much money you want from the sale. The price will be the compromise of those two wishes.
Of course, most people want the house sold as quickly as possible and for as much money as possible. But it's not often possible to achieve both.
In example 1, the wish is to sell the house as quickly as possible. Let's say that you want the house sold in the next hour. We could list it at $100. Somebody would pay that. If you priced your house at an astonishingly low price, it would increase the chances that someone would hand over the money and buy the house on the spot. You could even say that the land without the house itself is worth at least $100. You would achieve your goal of selling your house as quickly as possible by ignoring your wish to get as much money as possible.
In example 2, the other wish is to get as much money as possible when selling the house. Let’s say you want to list the house for $5,000,000, which is probably nowhere near what you paid for it. How long do you think it would take to get the house sold for that price? In most cases, the house would be on the market until all the other houses are sold and someone really needed a house to live in. If there were no other houses available to be sold & someone really wanted to buy a house, they could pay five million dollars and buy yours. It may take many, many years for that situation to happen, but you would have achieved your goal of selling your house for as much money as possible by ignoring your wish to sell your house as quickly as possible.
Hopefully, this shows you that there is a direct relationship between price and time when it comes to selling a house. The lower the listing price, the sooner it will probably sell, but the less money you will make from the sale. The higher the listing price, the more money you will probably make from the sale, but the longer the house will be on the market.
You tell the buyers a lot about your intentions with the initial listing price of the house. And you tell them even more by the changes in the pricing as the house remains on the market. As a general rule, it makes more sense to not start selling the house until you're ready, and to list it at the most reasonable price you can afford.
I'd like to share with you about finding a listing price when a house is offered for sale. Let's say that you have a house that you want sold. You contact me and I come over to look at the house with you. We reach an agreement that I am going to sell your house. We are going to use an exclusive right-to-sell listing agreement. This means that I will be the agent working for you and I will follow all legal orders you give me about selling the house. In order to help you decide on the selling price, I will provide you some information about:
1. similar houses that were recently sold,
2. houses currently being offered for sale, and
3. those that were taken off the market without being sold.
If you have a range of comparable prices that are gotten from those three groups, you can make a decision. After studying that information, you choose a price that reflects both how soon you want the house sold and how much money you want from the sale. The price will be the compromise of those two wishes.
Of course, most people want the house sold as quickly as possible and for as much money as possible. But it's not often possible to achieve both.
In example 1, the wish is to sell the house as quickly as possible. Let's say that you want the house sold in the next hour. We could list it at $100. Somebody would pay that. If you priced your house at an astonishingly low price, it would increase the chances that someone would hand over the money and buy the house on the spot. You could even say that the land without the house itself is worth at least $100. You would achieve your goal of selling your house as quickly as possible by ignoring your wish to get as much money as possible.
In example 2, the other wish is to get as much money as possible when selling the house. Let’s say you want to list the house for $5,000,000, which is probably nowhere near what you paid for it. How long do you think it would take to get the house sold for that price? In most cases, the house would be on the market until all the other houses are sold and someone really needed a house to live in. If there were no other houses available to be sold & someone really wanted to buy a house, they could pay five million dollars and buy yours. It may take many, many years for that situation to happen, but you would have achieved your goal of selling your house for as much money as possible by ignoring your wish to sell your house as quickly as possible.
Hopefully, this shows you that there is a direct relationship between price and time when it comes to selling a house. The lower the listing price, the sooner it will probably sell, but the less money you will make from the sale. The higher the listing price, the more money you will probably make from the sale, but the longer the house will be on the market.
You tell the buyers a lot about your intentions with the initial listing price of the house. And you tell them even more by the changes in the pricing as the house remains on the market. As a general rule, it makes more sense to not start selling the house until you're ready, and to list it at the most reasonable price you can afford.
Tuesday, October 12, 2010
Studying Real Estate: Homeowner's Insurance
I'm back, and I finally got my technical glitches worked out. I'm making progress in the online real estate class. It's actually fun to be working on the real estate broker license.
I know it's not very exciting, but today I really wanted to talk about home insurance. Everybody who owns a home needs insurance to protect them from unexpected events. I think it seems boring because it's hard to understand and remember what is covered. If I explain even just one component, it makes it easier for me to understand.
To start, here's one of my favorite websites, "How Stuff Works," covering homeowners insurance in much greater detail. Another place for information is Home Insurance Quotes.
In a brief explanation, homeowner's insurance is insurance that helps you if something bad happens to your home. I want to focus on a situation where you have a home and something BIG destroys it, like a fire. When that happens, you still need a place to live. You can file an insurance claim and you will get financial help in rebuilding your home, living expenses while it is being rebuilt, and replacing your furniture, dishes, and any personal items.
When you are purchasing your homeowner's insurance, you will need to decide what kind of coverage you need. There are different kinds of coverage. The original contract price of the house is not accurate because you don’t need to insure the land that can't be destroyed. The current market value of the house may not be accurate because the house may be overvalued or undervalued by sellers and buyers.
You could get the actual cash value of the property , which includes the original cost of building less the depreciation and amounts to what your old stuff is worth today. But there may be newer, better building techniques or materials. Rebuilding a house similar to yours at today’s costs could be more expensive than the coverage you would get insuring at actual cash value.
If you know you want a house similar to what you have, but you want it created at today’s building standards & costs, you will want to insure the house for the REPLACEMENT COST, or what it would cost to get you new stuff.
Generally, most people are happier with homes insured at replacement cost rather than actual cash value. If everything got destroyed, they would be able to get their lives back to a more familiar style of living. However, it does cost more to insure at replacement cost rather than actual cash value. It is good to find out what your homeowner’s insurance covers if your house was ever destroyed.
I know it's not very exciting, but today I really wanted to talk about home insurance. Everybody who owns a home needs insurance to protect them from unexpected events. I think it seems boring because it's hard to understand and remember what is covered. If I explain even just one component, it makes it easier for me to understand.
To start, here's one of my favorite websites, "How Stuff Works," covering homeowners insurance in much greater detail. Another place for information is Home Insurance Quotes.
In a brief explanation, homeowner's insurance is insurance that helps you if something bad happens to your home. I want to focus on a situation where you have a home and something BIG destroys it, like a fire. When that happens, you still need a place to live. You can file an insurance claim and you will get financial help in rebuilding your home, living expenses while it is being rebuilt, and replacing your furniture, dishes, and any personal items.
When you are purchasing your homeowner's insurance, you will need to decide what kind of coverage you need. There are different kinds of coverage. The original contract price of the house is not accurate because you don’t need to insure the land that can't be destroyed. The current market value of the house may not be accurate because the house may be overvalued or undervalued by sellers and buyers.
You could get the actual cash value of the property , which includes the original cost of building less the depreciation and amounts to what your old stuff is worth today. But there may be newer, better building techniques or materials. Rebuilding a house similar to yours at today’s costs could be more expensive than the coverage you would get insuring at actual cash value.
If you know you want a house similar to what you have, but you want it created at today’s building standards & costs, you will want to insure the house for the REPLACEMENT COST, or what it would cost to get you new stuff.
Generally, most people are happier with homes insured at replacement cost rather than actual cash value. If everything got destroyed, they would be able to get their lives back to a more familiar style of living. However, it does cost more to insure at replacement cost rather than actual cash value. It is good to find out what your homeowner’s insurance covers if your house was ever destroyed.
Wednesday, October 6, 2010
Studying Real Estate Law: Agency
I've had another busy day. I got some stuff worked out with the online class. I resolved one technical glitch, but then another one showed up. Eventually I know that things will work out; I just need to be patient.
In the meantime, I did get some studying done. The main topic for me today was the law of agency. I remember some of the material from my business law class, but it was interesting to see the real estate aspect of it all.
There's a lot to learn. When I was studying about agency, I got overwhelmed with all the details. I've been studying the national aspects of it, and I think getting to Colorado law will be interesting, too.
Here's an important point: first of all, the law of agency concerns the relationship between a client and his/her agent. It sounds simple, but it gets complicated when one person is the agent for two clients vying for the same thing. This can happen by accident or intentionally, and it can be illegal in some states. (But I don't know yet which ones.) For example, if I have agreed to sell a house for someone, he/she is my client. I have certain obligations to that person, such as getting the best deal possible. However, if I have another client for whom I have agreed to find a house to buy, AND I take them to the seller's house, then I could be an agent for the buyer and seller at the same time. How do I protect both parties at the same time and make sure each party gets the best deal?
If I see that possibility, I am obligated (possibly legally, and certainly in my mind) to let both parties know about the other relationship if I am going to work with them together on a property. That way either party can choose to work with me or not work with me.
In the meantime, I did get some studying done. The main topic for me today was the law of agency. I remember some of the material from my business law class, but it was interesting to see the real estate aspect of it all.
There's a lot to learn. When I was studying about agency, I got overwhelmed with all the details. I've been studying the national aspects of it, and I think getting to Colorado law will be interesting, too.
Here's an important point: first of all, the law of agency concerns the relationship between a client and his/her agent. It sounds simple, but it gets complicated when one person is the agent for two clients vying for the same thing. This can happen by accident or intentionally, and it can be illegal in some states. (But I don't know yet which ones.) For example, if I have agreed to sell a house for someone, he/she is my client. I have certain obligations to that person, such as getting the best deal possible. However, if I have another client for whom I have agreed to find a house to buy, AND I take them to the seller's house, then I could be an agent for the buyer and seller at the same time. How do I protect both parties at the same time and make sure each party gets the best deal?
If I see that possibility, I am obligated (possibly legally, and certainly in my mind) to let both parties know about the other relationship if I am going to work with them together on a property. That way either party can choose to work with me or not work with me.
Tuesday, October 5, 2010
Studying Real Property: Fixtures
I got started with my online real estate course! There are a few technical glitches that hopefully will be worked out, but as a first time it went fine. I need the online video to stop freezing up or jumping ahead. I'm hoping things will settle down and stream smoothly.
So far, it reminds me of my classes when I was getting my Bachelors degree. There are inklings of economics, business law, finance, and, of course, real estate principles. It has actually been fun getting back to these areas.
From today's lesson, I think the most important issue was about fixtures. If an item is a fixture, it is included with the property when it is sold & goes with the buyer. If an item is not a fixture, it is personal property of the owner & goes with the seller. No one really cares if something is a fixture or not until the property is being transferred to a new owner. If items in a house, such as curtains or a dishwasher, are not clearly mentioned as fixtures or personal property when the house is listed for sale, there might be confusion about who gets the item.
A seller and a buyer could wind up fighting over an item, or the buyer might get an unpleasant surprise. Imagine expecting certain things to stay with the house, such as the dishwasher, and then finding it gone. People get upset.
There are some legal tests about whether something is a fixture or not. And there are items listed as standard inclusions with the property. But, the best thing a seller can do is to mention that an item, such as Great-grandmother's Tiffany ceiling lamp, DOES NOT go with the house and will be removed when selling the house. If you're a buyer, on the other hand, you might want to mention a specific item in the contract offer that you expect to be included in the sale. If a seller wants to be certain that a valuable item won’t be included in the sale of the house, the best thing to do is to REMOVE the item before listing the house on the market. If it needs to be replaced by a similar, less valuable item, it should be done before any buyer falls in love with it!
So far, it reminds me of my classes when I was getting my Bachelors degree. There are inklings of economics, business law, finance, and, of course, real estate principles. It has actually been fun getting back to these areas.
From today's lesson, I think the most important issue was about fixtures. If an item is a fixture, it is included with the property when it is sold & goes with the buyer. If an item is not a fixture, it is personal property of the owner & goes with the seller. No one really cares if something is a fixture or not until the property is being transferred to a new owner. If items in a house, such as curtains or a dishwasher, are not clearly mentioned as fixtures or personal property when the house is listed for sale, there might be confusion about who gets the item.
A seller and a buyer could wind up fighting over an item, or the buyer might get an unpleasant surprise. Imagine expecting certain things to stay with the house, such as the dishwasher, and then finding it gone. People get upset.
There are some legal tests about whether something is a fixture or not. And there are items listed as standard inclusions with the property. But, the best thing a seller can do is to mention that an item, such as Great-grandmother's Tiffany ceiling lamp, DOES NOT go with the house and will be removed when selling the house. If you're a buyer, on the other hand, you might want to mention a specific item in the contract offer that you expect to be included in the sale. If a seller wants to be certain that a valuable item won’t be included in the sale of the house, the best thing to do is to REMOVE the item before listing the house on the market. If it needs to be replaced by a similar, less valuable item, it should be done before any buyer falls in love with it!
Monday, October 4, 2010
Career and Job Changes are Common
I'm back after a great weekend. I really enjoyed seeing "The Drowsy Chaperone" performed by the Mesa State College Theatre Department. The actors were funny and the audience was wild. The theatre was full of students and everyone had a good time. I also enjoyed going up to the Grand Mesa and seeing all the colorful trees. Some of the leaves had fallen off, but there were still enough swatches of color to be impressive. I really love it here. Today's weather was great, too. Not too hot, but it was pretty nice for October.
Today I'd like to talk about my background and my future. My career recently has been in computer software tutoring, and now of course I'm becoming a Grand Junction real estate broker. This isn't as big a change as you might think: I have a Bachelor's degree in Finance, so real estate is not that far off. And changing careers or jobs is more common than most people know.
The U.S. Bureau of Labor & Statistics has some information on their National Longitudinal Surveys at the Frequently Asked Questions page. They have never tried to measure how many times people change careers over their lifetime, stating: "The reason we have not produced such estimates is that no consensus has emerged on what constitutes a career change."
However, the Bureau had a news release last month, September 2010, about tracking people born 1957-1964 and how many jobs they held from age 18 to age 44. They stated: "These younger baby boomers held an average of 11 jobs from ages 18 to 44." So people my age change jobs and may be changing career fields more than society thinks. And I am one of them.
Today I'd like to talk about my background and my future. My career recently has been in computer software tutoring, and now of course I'm becoming a Grand Junction real estate broker. This isn't as big a change as you might think: I have a Bachelor's degree in Finance, so real estate is not that far off. And changing careers or jobs is more common than most people know.
The U.S. Bureau of Labor & Statistics has some information on their National Longitudinal Surveys at the Frequently Asked Questions page. They have never tried to measure how many times people change careers over their lifetime, stating: "The reason we have not produced such estimates is that no consensus has emerged on what constitutes a career change."
However, the Bureau had a news release last month, September 2010, about tracking people born 1957-1964 and how many jobs they held from age 18 to age 44. They stated: "These younger baby boomers held an average of 11 jobs from ages 18 to 44." So people my age change jobs and may be changing career fields more than society thinks. And I am one of them.
Friday, October 1, 2010
I got my books! (Day 2)
I opened the box from the real estate online class, and inside I found two big, 2" binders, one 1 ½" binder, and two books. There also was some information from the school, including a paper fingerprint card. You may be wondering why I received a fingerprint card; I'll explain.
There is a great website with information about the Colorado legal requirements for getting real estate broker license. It is the Colorado Division of Real Estate. When applying for a new real estate broker's license, there is an application form that has lots of information.
On that form, it states: "Before submitting an application for a real estate broker license, each applicant shall submit a set of fingerprints to the Colorado Bureau of Investigation for the purpose of conducting a state and national fingerprint-based criminal history record."
So I'll be submitting a set of fingerprints, being sure to turn them in so that Colorado Bureau of Investigation, or CBI, has enough time to process them.
My class starts Monday, October 4th. I'm looking forward to it. In the meantime, it's a beautiful fall. Time to go up to the Grand Mesa and look at the leaves changing color.
There is a great website with information about the Colorado legal requirements for getting real estate broker license. It is the Colorado Division of Real Estate. When applying for a new real estate broker's license, there is an application form that has lots of information.
On that form, it states: "Before submitting an application for a real estate broker license, each applicant shall submit a set of fingerprints to the Colorado Bureau of Investigation for the purpose of conducting a state and national fingerprint-based criminal history record."
So I'll be submitting a set of fingerprints, being sure to turn them in so that Colorado Bureau of Investigation, or CBI, has enough time to process them.
My class starts Monday, October 4th. I'm looking forward to it. In the meantime, it's a beautiful fall. Time to go up to the Grand Mesa and look at the leaves changing color.
Thursday, September 30, 2010
I got my books!
I've been busy lately - I had a great time at the radio station, fundraising for KAFM, and today along with dishes, washing clothes and exercise I got three errands accomplished. I got groceries at City Market, which was opened by the Prinster brothers as a small grocery store in the 1920s.
I got tickets for "The Drowsy Chaperone" which is being performed by the Mesa State College Theatre Department. I will see it in the William S. Robinson Theatre, which is in the Moss Performing Arts Center. I've never been in there, so that should be exciting. They're opening tonight.
And on my third errand, to Grand Junction's main post office, I got a big box addressed from the real estate online class. That's why I'm so excited. I haven't opened the box yet, but I'm guessing that it is the books I need to succeed in the online real estate class.
I'll be back soon to tell you if I was right!
I got tickets for "The Drowsy Chaperone" which is being performed by the Mesa State College Theatre Department. I will see it in the William S. Robinson Theatre, which is in the Moss Performing Arts Center. I've never been in there, so that should be exciting. They're opening tonight.
And on my third errand, to Grand Junction's main post office, I got a big box addressed from the real estate online class. That's why I'm so excited. I haven't opened the box yet, but I'm guessing that it is the books I need to succeed in the online real estate class.
I'll be back soon to tell you if I was right!
Tuesday, September 28, 2010
First Steps
I have been answering phones at KAFM for their 2010 Fall Pledge Drive today. They had another open slot tomorrow, so I'm going back to answer phones again. KAFM is a wonderfully unique community radio station, one I'm glad to support.
I also want to support people in the processes of buying and selling their homes, although I really won't know how effective I'll be until I start doing it. I have been in a service industry, tutoring people about computers for many years in Oregon, but I don't know how my tutoring skills will transfer to real estate.
I think the thing that is going to make the difference is that I am lucky enough to be part of a mentoring program. In "Mentors and Mentoring: What is a mentor?" by F. John Reh, from the About.com Guide, it mentions: "The original Mentor is a character in Homer's epic poem The Odyssey. When Odysseus, King of Ithaca went to fight in the Trojan War, he entrusted the care of his kingdom to Mentor. Mentor served as the teacher and overseer of Odysseus's son, Telemachus."
In Merriam-Webster Online, a mentor is defined as a trusted counselor, guide, tutor, or coach. No matter the origin or meaning, I like having someone with experience and the ability to do a reality check that will keep me headed in the right direction.
I'm now signed up for my online real estate class; as soon as my materials arrive, I'll be able to begin.
I also want to support people in the processes of buying and selling their homes, although I really won't know how effective I'll be until I start doing it. I have been in a service industry, tutoring people about computers for many years in Oregon, but I don't know how my tutoring skills will transfer to real estate.
I think the thing that is going to make the difference is that I am lucky enough to be part of a mentoring program. In "Mentors and Mentoring: What is a mentor?" by F. John Reh, from the About.com Guide, it mentions: "The original Mentor is a character in Homer's epic poem The Odyssey. When Odysseus, King of Ithaca went to fight in the Trojan War, he entrusted the care of his kingdom to Mentor. Mentor served as the teacher and overseer of Odysseus's son, Telemachus."
In Merriam-Webster Online, a mentor is defined as a trusted counselor, guide, tutor, or coach. No matter the origin or meaning, I like having someone with experience and the ability to do a reality check that will keep me headed in the right direction.
I'm now signed up for my online real estate class; as soon as my materials arrive, I'll be able to begin.
Monday, September 27, 2010
Introductions
Hello. My name is Davienne Jacobson. I'm named after my dad, Davie, and my name is pronounced "day-veen."
My husband and I moved to Grand Junction in May 2010, just four months ago. I love it here and I have a lot of faith that Grand Junction is going to continue to grow. After all, the U.S. Census Bureau that tracks "Metropolitan and micropolitan statistical area population and estimated components of change: April 1, 2000 to July 1, 2009" put this area's population at 146,093 in 2009. That's 15,000 more people since the year 2005. And if you go to Sperling's Best Places, choose Grand Junction Metro area, click on the economy section and scroll to the bottom, it says: "Future job growth over the next ten years is predicted to be 19.42%." That's all quite encouraging for Grand Junction, and for my future career as a Colorado real estate broker.
The next thing for me to do is to sign up online at a Colorado real estate institute that offers a class on how to get my associate broker license. Eventually I'll be a Grand Junction Broker, just as the title of this blog suggests.
My husband and I moved to Grand Junction in May 2010, just four months ago. I love it here and I have a lot of faith that Grand Junction is going to continue to grow. After all, the U.S. Census Bureau that tracks "Metropolitan and micropolitan statistical area population and estimated components of change: April 1, 2000 to July 1, 2009" put this area's population at 146,093 in 2009. That's 15,000 more people since the year 2005. And if you go to Sperling's Best Places, choose Grand Junction Metro area, click on the economy section and scroll to the bottom, it says: "Future job growth over the next ten years is predicted to be 19.42%." That's all quite encouraging for Grand Junction, and for my future career as a Colorado real estate broker.
The next thing for me to do is to sign up online at a Colorado real estate institute that offers a class on how to get my associate broker license. Eventually I'll be a Grand Junction Broker, just as the title of this blog suggests.
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