Discover the Power of the Flat Rate Realty Group Blog: Your Ultimate Guide

Welcome to Flat Rate Realty Group’s blog, a premier resource tailor-made for homebuyers, sellers, and investors exploring Colorado real estate in Colorado Springs and beyond. Our mission is clear: to empower you with trusted, actionable real estate knowledge that drives confidence and success in your property journey.

With today’s real estate market evolving rapidly, having an expert guide can make all the difference. That’s why our blog combines in-depth market analysis, detailed how-to guides, insider tips, and regional neighborhood insights — all framed by the proven Flat Rate Realty model of exceptional customer service paired with flat-fee savings.

Why Read the Flat Rate Realty Group Blog?

  • Expert Local Insight: We live and breathe Colorado real estate — sharing first-hand neighborhood trends, market stats, and investment opportunities.
  • Cost-Saving Strategies: Learn how our flat rate commissions save typical sellers about $10,000 in real estate fees while receiving full professional services.
  • Comprehensive Guides: Step-by-step instructions for buying, selling, negotiating, and financing homes or land in Colorado efficiently and stress-free.
  • Buyer Rebates and Incentives: Exclusive details on programs offering rebates up to $3,500 for buyers who list through Flat Rate Realty.
  • Market Updates & News: Stay current with regional price trends, inventory updates, and economic drivers impacting Colorado real estate.
  • Real Client Stories: Authentic testimonials showcasing how we’ve helped buyers and sellers save money and achieve goals.

What You Will Find in Our Blogs

Our blog covers critical topics, including but not limited to:

  • Colorado City and Neighborhood Guides: Detailed posts on communities like Colorado Springs, Castle Rock, and more.
  • Real Estate Market Trends: Analysis supported by data from sources such as the Colorado Association of Realtors.
  • How-To Guides: From preparing your home to sell, home inspections, appraisal tips, to navigating loan approvals.
  • Financial Tips: Optimizing buyer credits, financing options, costs breakdowns, and tax considerations.
  • Flat Rate Realty Service Deep Dives: Understanding our unique flat-fee approach and how it benefits you directly.

Step-by-Step: How to Maximize Benefits Using Our Blog

  1. Identify Your Goals: Browse posts focused on either buying or selling to hone in on your current needs.
  2. Leverage Neighborhood Links: Access the city guides for detailed local insights before home search.
  3. Engage with Market Trends: Use our data-supported posts to time your purchase or sale advantageously.
  4. Apply Financial Tips: Make informed decisions on budgeting and rebate opportunities informed by our expert content.
  5. Follow Our How-To Guides: Prepare yourself for each transaction step with checklists, timelines, and best practices.
  6. Contact Our Team: Use insights gained to approach Flat Rate Realty agents ready to support your unique real estate journey.

Key Benefits of Using Our Blog as a Resource

  • Unique Flat-Fee Savings explained and illustrated
  • Insider market knowledge specific to Colorado Springs & Colorado’s evolving landscape
  • Actionable advice for professionals and first-timers alike
  • Direct access to trusted agents and affiliate services
  • Regular updates and fresh perspectives keep your knowledge current

Client Voices: Success Stories From the Flat Rate Realty Group Family

"Had the absolute pleasure of buying a home with Frank. We not only got our number 1 choice but also got it for over $10,000 cheaper than it was listed for... He is one of the best Real Estate Brokers in Colorado Springs!" – Ross Keps
"Frank and his team sold our house above market value while charging a fraction of traditional commissions. Their personal dedication and expertise outshone all others." – David Goscha

This is the kind of personalized service and savings you can expect, and our blog is the first step in learning how to replicate this success.

Comparison: Flat Rate Realty Blog vs. Other Real Estate Blogs

Feature Flat Rate Realty Blog Typical Real Estate Blogs
Local Colorado Focus Deeply specialized Broad/general
Flat-Fee Real Estate Insights Extensive, practical guides Minimal or none
Buyer Rebate Information Detailed and transparent Rarely mentioned
Regular Market Updates Data-driven, timely Occasional, inconsistent
Client Testimonials & Case Studies Featured frequently Less personalized

Access These Premium Tools & Resources

Ready to start your real estate journey with trusted Flat Rate Realty experts? Contact us through this link or email Homes@FlatRateRealtyGroup.com for personal assistance today.

Summary: Why Our Blog is Your Go-To Colorado Real Estate Resource

  • Unrivaled local expertise: Unpack Colorado Springs and regional market trends.
  • Actionable insights: Step-by-step guides you can implement immediately.
  • Cost-saving strategies: Learn how to maximize equity with our flat-rate commission model.
  • Exclusive rebate info: Understand and access buyer rebates and incentives.
  • Trustworthy & personable: We are Colorado real estate agents with your best interests at heart.

Explore our full blog archive and start turning information into successful real estate decisions: Flat Rate Realty Group Blog

 

April 7, 2018

Real Estate Appraisal - Do It Yourself

 

Real Estate Appraisal - Do It Yourself

There are two simple ways used in appraising real estate for single-family homes. The two ways are replacement cost analysis and comparable sales. A third way to assess it is based on capitalization; this is used for income properties and is elaborated in a different article.

In figuring replacement cost the question is: What would it cost to buy this land and put this house on it? If the land (improved) would cost $40,000, and the house could be built for $150,000, the value indicated would be around $190,000 - if the house is fairly new. In case it has used close to 10% of its useful life, you can subtract $15,000 as depreciation.

Replacement cost is not actually a very suitable measurement. It is hard to say the value of the land in a city center where nothing is left for sale, for example, tough to measure depreciation as well. It is used as a secondary method, and for unique homes that can't be compared easily with others. The primary method of real estate appraisal used for homes is a market analysis using comparablea sales.

 Real Estate Appraisal 101

 To get a good idea of what a home should sell for, you need to compare it to homes that have sold. Find at least three similar homes in the same area that have sold within the last year, preferably within the last six months. This information is accessible in the county records, or from a real estate agent who has access to the MLS (multiple listing services).

Now the unclear part, you begin with the selling price of each of your comparable. In case your subject home has an extra bathroom, and the comparable doesn't, you add the value of the extra bathroom to the sales price of the comparable. If a comparable home has a blacktop driveway, and the subject home doesn't, you remove the value away.

You are correcting differences, to see what comparable homes would have sold for if they were like yours. Therefore if a comparables is sold for $140,000, and a bathroom is valued at $15,000 in your area (ask a real estate agent to assist with the value), you ADD $15,000 for the bathroom it doesn't have. Then you subtract, let’s say $4,000, for the covered driveway it does have. This provides you a comparable sales price of $151,000. 

You do same with all differences between each comparable and subject home. When done with it, you average the three comparables prices. Therefore, if the three comparable have adjusted prices of $151,000, $149,000 and $162,000, you add all the three figures and divide by three to get the average. The designated value of the home will be $154,000.

Of course, all appraisals are an inaccurate science. In case you can only see comparable sold over one year, you have to approximate appreciation in the area. If one sold with seller financing, you have to decide how this affected the price. For all of its flaws, however, for single-family homes, this is the most accurate method of real estate appraisal.

 

Posted in Buyers Resources
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April 6, 2018

Properties Investment Types

 

 

Real estate investment is a complex affair. There are several factors that affect the viability of the investment. Viability is generally dependent upon your ability to find the best likely deal in the market.

You must be able to identify the real estate deals that have the best potential that will allow you to maximize your profits.

Let us discuss some types of real estate investments that would top the list.

 Big City Vacant Land: Land in big cities is understandably more expensive than that in small towns.

Although buying land in a big city would pay richer dividends, it would also involve a higher investment. It is important to understand when to make that investment.

 

Experts suggest that boom time would be a good time to invest, as the property value will appreciate rapidly giving a higher ROI (Return On Investment). Or, you could buy land in low-cost outlying areas, where the population is still expanding. With a little patience, this would give you excellent returns.

 

Land with Ocean Frontage: Scout around for oceanfront land in areas that are yet to be developed. Make sure that the land is residential, and can be built upon, with no legal impediments.

 

This kind of a deal would be one of the soundest investments to make in real estate.

You just have to wait for development to take off, and reap a huge profit on the investment.

Oceanfront properties are the most sought after in real estate.

 

Land with Lake Frontage: This is similar to land that has an ocean frontage, but on a smaller scale. However, you have more options, because, in general, there are more numbers of lakes.

Properties like this are of optimum value because most people like to live in the vicinity of water, enjoying lakeside walks.  So take advantage of this to invest in lakefront land if you are unable to get oceanfront land.

 

Land with a view of a Lake: Don’t confuse this with the lakefront land. This is land that has a lake nearby.

People who are unable to buy land right on the lakeshore prefer a place that may be a few blocks from there, which would give them access to it. But be cautious, and invest in such land only if there are ongoing expansion and development in the area.

 

Golf Course Land: Golf is a great sport, enjoyed by multitudes of people nowadays. Lately, there has been a growing trend of buying property on or near a popular golf course.

The greater the popularity of the golf course, the better the chances of a higher return on the investment.

To a golfer, walking a few minutes to the course and returning home again every day would sound like paradise, especially to retirees. Try to invest in such land for assured high returns.

Ranch Property: This requires heavy investment, but if you have the resources, it can be a long-term project that would give bumper returns.

Big lots, say one hundred acres, which may be in a remote location, but are next to some other developing lots of similar sizes, can be a sound investment. But it needs to be within your investment limits and other required capacities.

 

Posted in Buyers Resources
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April 5, 2018

Pre-Construction Real Estate Investing

 

If you have the mind to take the risk just like a gambler or in love with extreme sports and activities such as skydiving or bungee jumping then you may be the right person for pre-construction real estate investing. Pre-construction returns are sometimes among the highest in the industry. And so are the risks as well.

You will find the ultimate highs and lows that can be seen in the ground of real estate investing lie underneath the umbrella of pre-construction returns and several of the big names we hear pretty well in the real estate investing business have made much of their riches through speculation and pre-construction sales.

Before I go any further, one word of caution should be spoken. While the potential for profits in this particular corner of the real estate market is unconventionally high the risks are also abundant. This is speculative real estate at its very greatest and as we have all learned in the past when the situation worst in a precise market those who invested more are the ones who regularly loose most severely.

 

 

 

Insofar as pre-construction real estate is there are a few explanations. The first is also the most observable. You are buying real estate at some point before construction is complete. In hot markets, you will often need to purchase the units before ground was broken on the project in order to get the lowest price for your investment and the highest potential payoff for your pockets.

 

Once you’ve purchased the unit or units you plan to sell you then begin seeking buyers for those units. In markets that are on fire like some Vegas suburbs and big retirement and vacation cities along the Florida coastline, the same property is not exactly uncommon for a property to change hands and have several owners before the unit is complete. Each one will take a little something home from the table for their efforts with those who get in earliest often taking the largest piece of the pie home with them.

 

You may be wondering why this occurs and the answer really is simple. When the contractors attempt to get funding for their buildings in these large complexes they often need to have a certain percentage of the units “pre-sold” in order to convince the banks that there is an adequate market and to garner some of the revenue that is needed to get the venture up and running, so to speak.

 

So real estate investors buy these units at rock bottom prices because essentially they are paying for the idea of the unit (which hasn’t at this time been built and isn’t yet approved to be built in many cases) rather than a brick and mortar property.

 

As the project draws closer to completion, particularly in markets where real estate is in high demand, the value of the property rises dramatically ending in ridiculous profits for those who have managed to hang on.

 

The risks, however, are many. There is any number of things that can go wrong on a project such as this not the least of which is that the demand for housing will be met before the unit is actually built. This has happened and continues to happen.

 

Also, recessions, business closings, economies collapsing, and tragedies in the vicinity can occur before the property is complete leaving everyone who has invested heavily in the project holding a little bit of the bag and losing their profits and, quite possibly, their investment. These projects generally take a great deal of time to complete which makes the risks that much greater and the anticipation of these events a little more difficult to map out ahead of time.

 

If you can manage to make it through however many investors see more than a one hundred percent return on their investment making it a popular type of investment among many despite the rather large risks involved.

 

 

 

 

Posted in Buyers Resources
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April 4, 2018

FSBO Open Houses - What If You Get An Offer?

You've decided to sell your home yourself and decide to have an open house to show off the property. Potential buyers come and you get an offer. What now?

Qualifying Buyers 

Your home is looking sharp and you've got the word out telling people about the open house. Now you need to be prepared to take action if a qualified buyer attends, likes your home and wants to buy it.

Most qualified buyers will have a strong lender letter. If one of them wants to buy, you can move on to the next step. There may be people who come to your open house who would like to buy but don't yet have a lender letter. Let me suggest a mutually helpful alliance for dealing with that situation.

Call several lenders before you schedule your open house. Tell them you're planning an open house and you'd like to have a lender on hand to help buyers (even if they don't want to buy your home) figure out what they can afford. Tell them you'd also like them to help you evaluate any lender letter you're offered by a potential buyer. Choose the lender you feel most comfortable with and work out a mutually acceptable date for your open house.

You can introduce all attendees at your open house to the lender. This often proves to be helpful to you, some of the buyers who attend and can be a source of additional loans for the lender. Everybody wins.

Be Prepared for Action

You need to know how you want to handle a contract should someone want to make an offer. Do you have an attorney who will draw it? Are you going to suggest using a contract form? If so, have one on hand. Do you have a specific settlement company you'd like to use? Do your homework and think these things through in advance. Buyers may have ideas and connections of their own. You should consider any reasonable suggestion a potential buyer makes, but be prepared with your own approach if the buyer isn't sure how to proceed. The point is to plan your course of action in advance.

In Closing

FSBO sellers often worry whether anyone will attend their open houses. They are then happily surprised when people arrive. Such happiness can turn to embarrassment when an offer is made and the FSBO seller isn't sure how to handle it. If you think positively and prepare, this need not happen to you.

Posted in Sellers Resources
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April 3, 2018

Refinancing Rental Property

Article Body: You have a rental property for years, and never for once see the "big payoff." Is it the period to cash in on your investment, now that you've paid down the mortgage, and values are up? Maybe not…

The Problem with Selling

Selling is same as you'll have to pay a huge capital gains tax. This can be dodged if you reinvest via a 1031 exchange, but then the idea is that you need your money, right? Besides, a good rental gets more income as rents go up. Do you want to lose this inflation-indexed retirement plan? What's the alternative?

Refinancing Rental Property

Have you thought that if you refinance, you can get much of your profit out of the property, without giving a penny in taxes? Borrowing money is not a taxable event. You can take it and use it anyhow you want, and still keep your rentals.

Let's view an instance. Assuming you own a small studio apartment building for years. You bought it for $240,000, with a downpayment of $40,000, and mortgage payments of $1650 monthly on the balance.

Now it is worth $400,000, you only owe $120,000, and your cash flow is around $800/month. How do you get at that equity?

A bank will probably loan you $280,000 or 70% of the value. After paying off the initial mortgage, you are left with $160,000.  Compare with today’s lower interest rates, your payment on the new mortgage will be almost the same. At the most, you might lose $50 monthly as cash flow.

A good scenario: Spend $40,000 for high-return improvements to the property, such as airports, laundry rooms, and then increase the rents. You could have $120,000 left over to spend anyhow you want, AND have higher cash flow. Does that sound better to selling your retirement plan? Don't sell. Refinance that rental property!

 

Posted in Sellers Resources
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April 2, 2018

Real Estate Sales

Its springtime folks! You know what this means. It's time to start buying houses. Or at least that's what statistics show. Most people in the market for a new home will purchase it in the spring. Makes sense I suppose.

That's the season when everything is blooming and green. It's easier to have great curb appeal in the spring than it is in the winter time. Obviously real estate agents get stoked about the spring months because this is when real estate sales are through the roof.

Now, the question is, are you currently buying or selling? Either way, there are a few things you should know about.

For all of you home buyers out there, you're vastly in luck. Currently, we're stuck in a buyer's market. This basically means that the interest rates are in your favor and there is an ample amount of homes for sale. What does this mean for you?

Well, it means that you can likely find a stellar house at a wonderfully low price. Maybe you can afford something that would have surely been out of your price range. Even if you intend to sell the house in a few years, this is a great advantage.

You'll surely make a hefty profit when real estate sales return to their norm. So get that house you're pondering NOW. You won't soon encounter a better time to buy. Get online and take a look at what's in your area.

There are plenty of your sellers out there. Trust me; I know the routine quite well at this point. I've sold two homes already and I'm only 31 years old.

It can be a hassle. And if you're selling yours right now, it likely will be a hassle. As you already know, the competition is fierce. All the little things will make a difference for you. Think about fixing up anything that needs it.

Replace junky old appliances. Clean the house from top to bottom on a regular basis. And don't forget about curb appeal. This actually plays a valid role in real estate sales.

Everyone with a family wants a decent yard. They want trees, flowers, and rich green grass to play in. So be certain to make these changes before you slap that home up on the market with the rest.

Posted in Sellers Resources
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April 1, 2018

Real Estate Buying And Selling Tips

In buying a property, a buyer interested should contemplate the time he expects to remain in the place because selling a house too early would possibly not be a lucrative move, particularly if there is uncertainty in the market.

Be certain that you stick with your price range and to reduce lower depreciation for your house, purchase a property that is slightly cheaper than the ones in your community. The extra wisdom in this is a smaller liability to market instability, with close luxury homes pulling the neighborhood’s price range in times of market rise. It would be favorable if you chat with a real estate agent on the market condition of your preferred neighborhood.

Ask for special incentives in house buying, as there are countless sellers now and the market is quite flooded. Be very alert on the financial terms presented by the seller and try to control any option of decreasing your transaction costs, like asking the seller to bear the closing cost.

More importantly, always consider the location of the house you wish to purchase. Try to shun properties near populated streets or places where a lot of people come together at specific times of the day. Pick a house situated in a community with the profitable economy, to make sure your property will still sell a few years in the long run. Look at also the local services available, as well as the crime rate. A house near a decent school is regarded a good find. Do not be disappointed if the house is situated in a community with higher property tax, as this often turns to better services and infrastructures.

Hire a home inspector to check if appliances are in good working condition, the electrical wirings are all in order and determine the state of the heating and air conditioning systems. A decent home inspector should also inspect the outside of the house, also the roofing. Have the inspector check the ventilation, plumbing and the general foundation of the house.

At the other end of the tunnel, selling your house also involves that you must first communicate a good marketing plan. This includes making an allowance for a number of listing contracts with your real estate agents, who will be the one bringing the clients to your house. Assess also your asking price and try to modify it with the current pricing styles in the local area. Timing is important also as it will do you no good to sell during a market crash.

Then, improve your house’s appeal through scrubbing, cleanup up the yard and even adding a fresh coat of paint. Don’t forget that first impression always makes a big influence on potential buyers. Ensure that you are also acquainted with disclosure laws in your area. Finally, be selective in who you let inside your house. The value of a good real estate agent comes into play here, as it is always good to have somebody nearby who is quite experienced and can answer questions concerning real estate.

 

Posted in Buyers Resources, Sellers Resources
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March 31, 2018

1031 Exchange

Section 1031 of the IRS is a blessing for a potential investor, selling an investment asset and thinking to make a profit by reinvesting in a similar property somewhere else in the country. This perfect model works on the principle of gain rolling from the old to the new.

There is a general unawareness on the concept of this exchange; as an effect, 30-40 percent of house owners’ end up paying tax in the course of the sale. Exchange 1031 not only becomes productive into vital tax savings but makes possible the trading of property in the most reasonable manner at places of choice.  No wonder that the 1031 Exchange motivates the property market so much.

The new income-generating extra property gives the investor the dual gain of added income and savings from tax that else would have gone to the IRS coffers.

Apart saving the buyer from a huge tax liability coming in the pretense of capital gains, the instrument provides maximum protection and flexibility in reinvesting the money gained from the sale in a replacement property within a given period. 

The exchange being time-bound is no child’s play either. In all exchange of this kind, Qualified Intermediaries (QI) plays an important role linking the buyer and seller. The Federal Tax Code makes service of QI mandatory since 1991 in any exchange.

The federal nature of the 1031 Exchange regulations makes the Qualified Intermediary play a wizard in guiding and structuring the exchange, satisfying all parameters and suiting the goals of the clients. It is the QI who does the paperwork required by the IRS to document the exchange. The QI carefully prepares all documents and serves the parties with copies of the exchange agreement, novation agreement, and escrow instructions.

The Exchange Agreement reads like a contract between the Exchanger and a Qualified Intermediary. The Exchanger openly reaches an agreement to hand over his old property to the Intermediary, in place of a new property to be supplied by the Qualified Intermediary within 180 days. The contract lists all terms and conditions under which the exchange of properties should take place.

For a 1031 Exchange to take effect, both the old property as well as the new property should be in the category of investment property, capable of generating income. The examples could be a rental property, bare land, vacation homes or more.

Immediately the old property is sold, within 45 days the seller has to come out with a list comprising two or three likely properties proper for replacement. And the entire process of acquiring the new property or replacement property from the list must be over within a period of 180 days. 

The exchange becomes bona-fide only when the title remains intact and whosoever held title to the old surrendered property gets the title of the new property.

In the middle of the sale and purchase of property, the seller of the old property would get no access to the money he accumulated from the sale, as the money will be lodged with the ‘Qualified Intermediary’ till the exchange gets over.

This 1031 Exchange process has matured and had many names in the past including Like-Kind Exchange, Deferred or Delayed Exchange, Simultaneous or Concurrent Exchange, Starker Trust or Exchange, Alderson Exchange, Reverse Exchange, Two, Three, or Four Party Exchange and Baird Exchange.

Posted in Buyers Resources, Sellers Resources
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March 30, 2018

Real Estate School Will Lead the Way to Successful Real Estate Career

Real estate school will lead the way to successful real estate career

 

Real estate brokering is a profitable and fulfilling career.  You get to work on your own and earn unlimited income if you are able to negotiate well with your clients.  It is also fulfilling that you see dreams become a reality right in front of you. 

 

Especially, if you are able to help first-time real estate buyers, the happiness that you bring by helping them negotiate advantageously for their dream house will prove to be priceless.  On top of it all, real estate commissions are not minimal. 

 

Because if it is so, why do you think, many people want to jump into the real estate brokering bandwagon.

 

To jumpstart your career and earn unlimited income from real estate broker, you can start by taking courses from real estate schools.

Real Estate Schools

 

Real estate schools will teach you on the basics of real estate transactions and license.  Additionally, they offer continuing education for real estate professionals.

 

 

Real estate schools will likewise help you prepare for licensing and post-licensing requirements.  Real estate schools are becoming popular because the real estate industry is moving fast-forward.

 

In order to be able to take advantage of this boom in the real estate industry, taking courses to jumpstart your real estate career will help you get there faster.

 

Professionalism, handling skeptic buyers and various other skills that will lead to simple and stress-free real estate transactions are also learning you can get from these real estate schools.

 

Find one near you and make sure that you can ride with the booming real estate industry.  You may later on learn that you can already afford your dream of having your own home.  You fulfill your dream while taking time out to help others fulfill their dreams as well.

 

Your knowledge in handling real estate transactions will be Godsend especially for first-time real estate buyers, they need a lot of help because they may not be able to negotiate fairly without the help of professional real estate brokers or agents.

 

The real estate school is also a good source of information for real estate related questions.  You can surely find one near you because real estate schools are now conducting classes in various locations.

 

You may also find other links and helpful tips on the internet if you surely want to get into the real estate brokering business.  Licensing requirements and information on where to go for licensing may also be found on the internet.

 

Additionally, it is also on the internet where you may be able to find the most reliable real estate schools.

 

Posted in Real Estate News
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March 29, 2018

FSBOs –The Secret of “After Settlement Escrow” to Resolve Issues

Several FSBOs (individuals who are selling their own houses) are aware of the conventional use of escrow. In this article, we look at different ways to use escrow to resolve issues.

Escrow

Escrow refers to different things in different parts of the country.  In California for example, it’s part and parcel of the settlement process. While there’s no formal escrow before settlement in Virginia, the settlement agent collects title info, draws or has a deed drawn, organizes with the lender, accepts various assessment reports and in overall conducts an informal escrow in the days before settlement. The difference is that, in Virginia, usually documents aren’t signed by the parties until they meet at the settlement table.  It’s the use of escrow after this period that we’re concerned with here.

An Issue Rears Its Head

What’s possible differs from state to state, however making an escrow account (usually held by the settlement agent) after a home is sold can resolve issues. What types of issues? Let’s look at a few.

Firstly, let’s assume the buyer or seller wants, or needs, to resolve by a certain date. Lots of things can cause this including the date school starts, the date a breadwinner starts a new job or the date of settlement on the seller’s new home.

 Now, let’s assume an issue arises, which would stop that settlement time limit from being met.  Such issue might be caused by finding termites and termite damage, the discovery of intrusion on a utility right of way by a garden shed on the property being sold or the finding of high levels of radon gas within the home. 

Let’s further assume that the buyer and seller have settled on the basic solution of the issue. In the above examples, typical solutions might be that the seller will have the home treated for termites and have a licensed contractor repair the damage. Or the seller will have a contractor move the shed out of the right of way. Or the seller will install a radon mitigation system.  Of course, everything is negotiable, and a buyer who wants a property badly enough could agree to fix the defects himself.

What if the pest control company, contractor or the radon mitigation company can’t finish their work until after the planned settlement date?  What happens then?  Most frequently, settlement is delayed until these sorts of things are taken care of, but sometimes that isn’t desirable.  Sometimes delay of settlement can be a deal killer.

Problem Solving 101

Enter the “after settlement escrow.” The parties agree that an amount of money (usually a bit larger than the estimate) is kept aside in escrow awaiting completion of the work. The escrow agent has clear (normally written) guidelines about what must be completed before the money is released to the individual who put it up (or before the work is paid for and any excess returned to the person who put it up).

 The funding of an after settlement escrow usually comes from the proceeds of the sale, so it can be used where there are no funds to take corrective action any other way. Not minding if the person in charge could get a loan for the purpose, the procedure could take too long to meet the settlement time limit. In that way, it can be a “cash flow” solution, too.

 No matter what problem you encounter, it’s usually possible for a willing seller and a willing buyer to work things out. Remember that all sorts of needs can be accommodated without anyone’s being a loser.  Situations in which both buyer and seller are winners happen frequently. With any luck, that’s what will happen in your case. It just takes creativity and persistence.

 

Posted in Sellers Resources
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