Major Changes to Closing a Loan and What it Means to you
With the acronym of The TILA RESPA Rule and the lack of publicity to consumers, most people are not aware of the significance of the changes coming to the real estate industry nationwide on August 1st. You may be familiar with a document called the Truth in Lending Disclosure or the Good Faith Estimate that a lender will provide to you to clarify fees associated with a real estate purchase. Starting August 1st, both of these documents will be completely replaced with the Loan Estimate Disclosure and the New Closing Disclosure designed to elucidate the fees and provide a mandatory timeline when documents are delivered to Buyers. Further guidelines include mandatory three day waiting periods between when a consumer receives documents and when they can close on a property. As a result of these changes, there is widespread speculation on how much longer it will take to close on a real estate transaction secured by a loan. The reality is that until Lenders, Real Estate Brokers and Consumers start to employ these forms, we really don't know the full impact of this change. In any scenario, if you plan to purchase or sell Real Estate after August 1st of this year, expect the possibility of delays and extended timelines for closing until the system is more fully in place.
Denver and the Nation
Once again, Denver has been listed as the hottest real estate market in the country based on our current supply of inventory. Here's a link to the full article from RisMedia. Here are a few graphs from the Metrolist to provide greater emphasis of how the Denver Market has performed.
Percentage of List Price vs. Sold Price in Denver for Single Family Homes between $300,000-$500,000. This is one of the most competitive price points in the city.
Active Number of Listings Between 0-$500,000 of Detached Single Family Homes in Denver
Number of Sales of Detached Single Family Homes in Denver Priced Between 0-$500,000
COMING SOON SIGNS
There's so much competition in the marketplace, that the "Coming Soon" signs you often see in front of houses have started generating controversy. The major concern among many Real Estate Brokers is that by pre-advertising the house, the listing agent is attempting to capture both sides of the transaction and limit exposure to the open real estate market. The Colorado Real Estate Commission has recently clarified the broker's obligations to a seller because a coming soon rider has both advantages and disadvantages as a marketing tool. As a result, a coming soon sign should be specifically addressed in a listing contract. Buyers- keep your eyes peeled for those signs, they can often be the first indication before a house hits the market! If you like the house, take a picture of the sign and address and send to us so we can find out all of the details and set up a showing!
Realtor.Com has a new Look
Realtor.com is making some dramatic changes in order to better serve Buyers looking at listings. They've just released some great new commercials with Elizabeth Banks about their new systems, check it out: Realtor.com Commercial. Commercial #2
Fitness Across the US
Once again, Denver remains one of the fittest cities in the Nation- here are some of the details provided by AmericanFitnessIndex.com