First official Groundhog Day was February 2, 1886 in Punxsutawney, PA

It is a German tradition, they used to use Hedgehogs but when the German settlers came to PA they used groundhogs instead

Groundhog Day is rooted in a German superstition that says if a hibernating animal casts a shadow on Feb 2, winter will last another 6 weeks, if no shadow spring will come early

Punxsutawney was first settled by the Delaware Indians in 1723, the name comes from the Indian name for the location “ponksad-uteney” which means “Town of Sand Flies”

Phil’s full name is Punxsutawney Phil, Seers of Seers, Sage of Sages, Prognosticator of Prognosticators and Weather Prophet Extraordinary, the Punxsutawney Groundhog Club in 1887 declared Punxsutawney to be the weather capital of the world

Phil is 100 years old, he is given a mysterious Groundhog Elixer, which magically lengthens his life for seven years.

Phil lives in a climate-controlled home at the Punxsutawney Library and is taken to Gobbler’s Knob and places in a heated burrow underneath a simulated tree stump and pulled out at 7:25am on Ground Hog Day.

There is only 1 Phil, all others are imposters!

There are a lot of homebuyers out there who know home-buying backwards and forwards. They will march along with a home inspector from attic to basement, chuckling over chimney design and debating the pros and cons of in-floor heating. If that isn’t your home inspection style it’s perfectly fine.

If you hire a home inspection professional, you really don’t need to know exactly what to look for during a home inspection. Your home inspector will be able to point out anything the seller may have tried to sweep under the rug (or hold up with duct tape) as well as give you a time frame for when certain problems will need attention. If you are thinking, How do I do my own home inspection?ö below is a basic list of things to look for when doing it yourself. However, we suggest professional home inspectors because their extensive knowledge is usually worth the cost in the long run.

Things to Look For in Home Inspection

Buyer Home Inspections – Tip 1: Check structural aspects

Structural aspects include the foundation, support structures (like beams), and framing, among others. Cracks in the foundation, improper structural engineering and things that could potentially make the home unsafe will all be evaluated. Some people ask, Should I get a structural inspection in addition to a general home inspection? If your general home inspector finds any structural issues, you might want to get a specialized structural engineer to do a home inspection.

Buyer Home Inspections – Tip 2: Inspect plumbing

Does this property have water and gas supply lines with the proper shut-offs? How is the water pressure? Could there be anything potentially hazardous, or even just plain inconvenient, with the drainage and functional flow of liquids? Your home inspector will be able to tell you.

Buyer Home Inspections – Tip 3: Examine heating, cooling and ventilation systems

Ah, HVAC. There is a lot of hype surrounding super-efficient heating and cooling systems these days, so HVAC is often in the news. During your home inspection, all of the home’s controls and thermostats, filters, ductwork and pumps will be examined so you can decide if you want or need to keep what comes with the home purchase, or if you’re going to upgrade.

Buyer Home Inspections Tip 4: Inventory major appliances

Not all new homes come with their appliances, but most will  even if they aren’t stainless steel. From washers and dryers to ceiling fans and microwaves, you will have a complete evaluation of what works, what kind of works and what didn’t pass inspection. If you are buying a house that is a short sale and foreclosure, and the appliances have been removed, the home inspector can help ensure there was no damage when the appliances were removed.

Buyer Home Inspections û Tip 5: Scrutinize the roof

Roof inspections cover the materials used, chimneys, all the gutters and downspouts, and the things they refer to as ôflashed penetrations, which include vents and skylights. With an inspection, you’ll have a better idea if you’ll be spending autumn months digging goop out of your gutters, and if those pretty cedar wood shingles are as flammable as they say they are. But most importantly, you will know approximately how long before the roof will need to be replaced. If you are negotiating after a home inspection, roof issues are one of the most expensive items to fix or replace.

Buyer Home Inspections û Tip 6: Don’t forget attics and exterior components

Insulation? Check. Ventilation? Check. Crawl spaces? Check. All these hard to reach places are key components in a home inspection. And with a professional home inspector, he is the one crawling and climbing into these less than desirable places.

Buyer Home Inspections û Tip 7: Wiring and breakers

If you are wondering, How do I do my own home inspection? Ask yourself whether you really know enough about electrical wiring to ensure your new home is safe. At the very minimum, you want to know: Is anything going to explode or catch on fire? And if it does, are there working smoke detectors? A professional home inspector will also let you know if the electrical wiring is up to code.

What to Expect During a Home Inspection

Your home inspection should take a few hours, depending on the house size and number of accessories. Many times, you’ll be invited to tag along, so the home inspector can verbally explain what he or she is looking at and for. In addition, you’ll be given a detailed, written account of everything within a couple of days of the inspection. Some of the more tech-savvy inspectors take photos or videos of issues and supply electronic files along with a written report.

These services do not come cheap and there is really no set rate for buyer home inspections. Most will cost at least several hundred dollars depending on the region, size of home, age of home and extras such as septic systems and wells, but it is worth it not to cut corners and pinch pennies.

Hopefully everything will check out, and you can shake hands with the seller and start moving in! If not, though, you will at least have a professional opinion of anything that might need fixing or replacing before you sign away your bank account.

Where to Find a Home Inspector

A quick Google search for home inspector will give you the certified home inspectors in your area. Asking your friends or real estate agent for recommendations is also a good way to find trustworthy and qualified professionals. With all the online review sites these days, you can also find recommendations online. For a certified home inspector, visit the American Society of Home Inspectors to connect with those who have met and exceeded rigorous testing in the industry.

What Does it Mean to Buy and Bail?

Buying and bailing refers to the act of buying a second property and allowing a first home to fall into foreclosure. Homeowners who purchase second properties in this scenario are typically upside down on their primary residence, meaning they owe more on their first home than it is worth in the current market. It’s likely that they had an adjustable rate mortgage and their monthly mortgage payment grew to a payment they could no longer afford. For some, an easy solution appears to be buying a second property at a depressed price with a fixed rate mortgage in order to lower their monthly mortgage payments. At the same time, they let their first home fall into foreclosure  hence the term buying and bailing.

You may wonder why a lender would loan someone money for a second property when they are already having difficulty making the mortgage payments on their first home. Typically, the buying and bailing homeowners will state in their loan applications that they intend to rent out the first property, but it should be noted that lying on a loan application constitutes fraud. Fanny Mae and Freddy Mac have instituted rules to curb the practice, but it continues. In addition to fraud, homeowners could get themselves into deep water when dealing with foreclosure and second properties.

Things to Consider About Foreclosure and Second Properties

There are two different scenarios that can occur with foreclosures and second properties. The first is the buy and bail situation explained above where the homeowner buys a second property and allows the home that has been his primary residence to go into foreclosure. The second is where a homeowner has a second property, perhaps a vacation home, and allows that second property to go into foreclosure.

When a home goes into foreclosure it will be auctioned off  usually for a much lower amount than what is actually owed on the property. The difference between the amount owed and the amount received at auction is called a deficiency balance.

How the settlement of the deficiency balance will be handled varies greatly depending on where you live and your state’s laws regarding foreclosure and the enforcement of deficiency balances. In about two-thirds of U.S. states, deficiency balances are treated like all other unsecured debts, and lenders may pursue a borrower after foreclosure by seeking a deficiency judgment. This allows a lien on the second property for the amount still owed on a previous mortgage. In states such as California and Arizona there are restrictions on lenders, and they may not have that option if the original home was a primary residence.

If you have a vacation home that goes into foreclosure, and end up owing a deficiency balance after foreclosure on that second property, the lender may file a lawsuit against you to collect the debt. This could result in garnishment of your wages, levies on your bank accounts, and/or liens placed on your property, including your primary residence, depending on your state’s laws relating to the enforcement of judgments.

After foreclosure, the lender, otherwise known as the judgment creditor, may be able to force the sale of your primary residence to obtain the money needed to pay off its judgment depending on the state in which you live. Judgment creditors are more likely to pursue a forced sale of your property if you have a lot of equity in your home. Therefore, if you have a substantial amount of equity in your primary residence, you may want to think long and hard before allowing a foreclosure on your second property. A consultation with an attorney specializing in real estate law is advisable before deciding to let a foreclosure on a second property to occur.

What is the fair market value of my home?

These are two very common questions when people are considering selling a home. Talk to any real estate agent, and the first thing they’ll tell you about calculating home value is that location is a big factor, but not the only factor. After the big real estate crash many people are asking themselves, What is the fair market value of my home?

Most of us understand there are more factors involved in calculating home value than just granite countertops and stainless steel appliances. We also know that there are online sources like HouseValues.com that can assist with determining house values by address. HouseValues.com is one of the best ways to calculate the market value of your house because it doesn’t just use algorithms and general housing data. HouseValues.com has a local real estate expert in your area to determine the real fair market value of your home. It’s okay if you are just checking out the value of your home and aren’t actually ready to sell your house. Asking an agent to help with calculating your home value is very common in today’s economy. Many people are wondering, Could we sell our home if we had to or wanted to?

Whether you are trying to calculate the value of your home because you are thinking of selling or just out of curiosity, here are five factors to consider.

Five Factors that Help Determine the Market Value of Your Home

Home Location

Location is the key influence for calculating the value of your home. Besides the proximity of the home to a major metropolitan area or a breathtaking view, these are a few more location factors that can increase home value:

• Proximity to schools, parks and points of interest

Homes within reasonable walkability to schools or parks will strongly influence buyers with small children. However, homes that boarder school or park property lines may suffer in home value due to unwanted traffic, parking limitations and the likelihood of youth mischief.

• Neighborhood with increasing desirability

Where is new growth heading in town? Will there be any new business areas, grocery stores, or libraries in the future?

• Proximity to infrastructure

Is the house surrounded by other houses? Apartment complexes? Other buildings? The best possible situation for your home is to be situated between two other houses and located along a road without yellow traffic lines.

Homebuyer Demographics

After you buy a house, the market value of your home is affected by who else is likely to purchase the property. If the property is a perfect starter home for pre-family newlyweds, and the main homebuyers in town are senior-citizens, the fair market value of your home might be lower than you think.

Older buyers typically look for one story homes without stairs, whereas families with small children often desire homes with a front yard away from a busy street and multiple bathtubs.

Home Storage Space

The more closets, garages and laundry rooms a house has, the higher the fair market value of your home. Most homebuyers look for a walk-in closet in the master bedroom, as well as closets in high traffic areas like front entryways, bathrooms and other bedrooms.

The two-door garage is the most common size for most homes, yet three-car garages are becoming more and more common.

As for the laundry room, the washer and dryer units should be located together in a common access space without creating an eyesore.

Kitchen

The kitchen is the most active area of a home. Typically, the following features add value to the kitchen:

• Granite countertops
• Stainless steel appliances
• Gas stovetops
• Convection ovens and microwaves
• Ice machines
• Cable television access ports

Also, the proximity of the kitchen to the dining room and family room will impact the usability of the house and thus is a factor in calculating the value of your home.

Home Layout and Size

Homebuyers typically look for homes with three to five bedrooms with an average of one shower per every two bedrooms. Split bedroom plans with bedrooms on opposite sides of the house are a popular trend with modern homes. Also, many real estate professionals love to use the phrase light and bright to highlight homes with lots of natural lighting.

As for size, most residential neighborhoods will have a slight variation in square-footage and number of rooms, but they all should be within a standard deviation of one another. If resale value of your home is a big concern, it’s in your best interest to not buy the largest home in the neighborhood. When calculating the market value of your home, real estate professionals measure the homes in the surrounding area against yours, and if most of the nearby properties are smaller than yours, it can act as an anchor to drag down your fair market value.

Pre-approval is one of the most important steps in the home buying process. You should apply for a loan and receive approval from a lender before searching for a home.

Here are some reasons why being approved at the beginning of the home buying process is so important:

1. Pre-approval for a home loan will determine your price range. Based on your down payment and that pre-approved mortgage amount, you’ll know what you can afford before you start looking. This saves you time and allows you to focus on houses that you can actually purchase.

2. Pre-approval strengthens your offer and negotiating position. Home sellers tend to accept an offer from a buyer who is pre-approved for a home loan over someone whose financial picture is still in question.

3. Pre-approval often cuts days or even weeks when you close. The lender has already analyzed your credit and approved you for a mortgage.

What is the difference between being pre-approved and pre-qualified?
There is actually a big difference between buyers who are ôpre-qualifiedö and those who are pre-approved. Lenders pre-qualify buyers and determine how much they can borrow based only on information the buyer has provided. The buyer still must fill out a loan application and go through the lender’s approval process. If you are pre-approved, lenders have already done a credit check and verified employment and deposit. Pre-approval is a commitment to lend you a predetermined amount. The only piece missing is the lender’s appraisal of the home to confirm its value.

How long should a pre-approval for home loan take?
If you are dealing with an experienced mortgage representative who uses an automated approval system, it should only take a few minutes to get a pre-approval. However, if your lender is not using the most up-to-date automated systems, pre-approval for a home loan could take a few days. The automated system takes all of your income, debt and asset information and enters it into their computer. The pre-approval process is usually pretty fast as long as the loan officer is certified to use the DU underwriting system (automated underwriting). The final loan approval comes once you have an actual property and then the lender re-verifies all of the property, income, debt and asset information.

What happens if I change jobs after getting pre-approval for a home loan? Do I have to go through the process again?
Unfortunately, the answer is usually yes. Your pre-approval is good as long as none of the information provided to the lender changes. You will need to notify the company that pre-approved you that your employment status has changed. They will have to enter your new income data. The good news is that if you took a new job that pays more, you might be able to afford a larger house.

What happens if I decide to work for myself after getting pre-approval for a home loan?
There will be complications when going from W-2 employee to 1099 or Schedule C income. You will probably need a two-year history of self-employment to qualify with that income. In this instance, you might want to ask your lender about undocumented home loans.

When it comes to investing in land/real estate or stocks, there is no one size fits all. Although both vehicles have proven over the long run to provide excellent returns when handled properly, each person will have their own unique goals, risk tolerance, and capital that they are willing to spend. The key is to not rush things. If you don’t have the capital to invest, then wait until the time is right. Most people fail at investing when they do it before they should. The late night infomercial talking about day trading or investing in real estate should be considered too good to be true!

Additionally, this is where a financial planning specialist may offer useful insights. You may have heard the advice to not put your eggs all in one basket. Therefore, it may even be beneficial to consider pursuing both forms of investments to better leverage your profits. So our goal is to offer an overview of both sides of the coin in order for you to start forming your own opinion. Take the time to create mock portfolios or mock real estate investments to begin learning how to invest. All in all, it is important that you proactively take your financial future into your own hands and only pursue the path that you feel will be the best for you and your family.

Benefits of Investing in Land or Real Estate

Many very successful people started out their investing careers in real estate. Plus regardless of what happens in the economy, it is factual that people will always need a place to live. Homes very rarely decrease in value when they are well maintained and purchased correctly. Purchasing a home correctly means not overpaying, not buying with emotions, and knowing a market’s potential upside. In addition, land can be an extremely lucrative investment since the world’s population continues to increase, and as a result the demand for land used by residential, commercial and retail entities is always on the rise. Here is a famous quote from Mark Twain that applies to land, “Don’t wait to buy land, buy land and wait!”

With real estate you are offered something that is tangible and can be easier to calculate your due diligence. In other words, after reviewing the property specs with appraisers, brokers, and inspectors, you have a fairly good idea of what you are getting into.

Downside of Real Estate Investments

First of all, there is typically a lot more time and energy invested in managing your investments. Whether you are renting your property out to tenants or keeping your lots clean and free of debris and coding violations, this is something you will be much more actively involved in. Next, real estate always has some sort of cost involved. Regardless of what you decide to do with your properties, you will still be responsible for taxes, insurance, utilities, repairs/maintenance and possible a host of other expenses. The most critical piece is knowing you can end up overspending. Most real estate investors who lose their shirt on their first deal never invest again. Don’t be that guy!

Finally, you have to have the proper investment strategy in place. Although real estate has historically been a strong hedge against inflation, you always need to consider your own local trends so you can properly leverage your investments to realize a strong ROI. Real estate is highly localized and knowing the market inside and out will position you well into the future.

Benefits of Investing in Stocks

Unlike real estate, this is an investment that can be essentially placed on autopilot. Aside from keeping an eye on your portfolio for rises and dips, you can leave the management and operation of each entity up to the professional staff. You own a piece of each company without having to work for it. Even with the Great Depression and other scares that we have witnessed over the last century, stocks have historically proven to be the best return on investment for those who hold on through the tough times and invest their returns properly. Stocks also provide some margin for error. If someone buys 10 shares of a bad stock the downside risk is much less than purchasing the wrong home in a bad neighborhood.

Additionally, it typically doesn’t take a huge upfront investment to get involved in the market, and this is very beneficial for those who don’t have a lot of cash on hand. As long as you choose the right companies, earnings will continue to increase. Selling your stocks is also infinitely easier than listing a property or land for sale as well.

Downside of Stocks

On the other hand, the greatest benefits of stocks can sometimes be the most detrimental weaknesses. For example, though you do not need to actively invest sweat into each company, you are also leaving your finances in the hands of a management team that dictates how things operate. Therefore, if business takes a nosedive so do your stocks. Some will recover while others may crash and burn. Also, this can be a very emotional game. Especially for those who are getting closer to retirement, the couple scares that we have witnessed in the last decade caused many people to pull out at huge losses to retire with much less than expected.

Finally, stocks can be a lot more unpredictable, especially if you are jumping on the bandwagon of rising trends or promising starter companies. Though some may end up being a homerun, you are always listening to the speculations of gurus or your own gut feeling. Alternatively, real estate can typically be more accurately measured. Most people are able to become an “insider” through due diligence in a specific neighborhood or sub-area.

In conclusion, it is important that you take the time to assess the investment opportunities that are available to you before making any decisions. It is important to look out for your financial future and well being, and we’re here to support you along the way.

If you need more information about how you can get started investing in real estate or land, and want to discover the options available in our local area, take the time to contact The Hightower Team today. We look forward to doing business with you!

Due to the mortgage crisis that our country has faced over the last several years, there are continually more and more foreclosed home for sale everywhere you turn. Of course, this can be very tempting for Home Buyers as people can sometimes get properties at a deep discount. However, if you are considering purchasing a Denver foreclosed home for your next purchase, then there are some common pitfalls that you will need to avoid along the way to protect yourself. Remember, foreclosure inventory is very localized in the Denver Metro Area and across the nation. So keep that in mind when making offers or trying to find a bargain.

1. Avoid Making Emotional Offers: When you are planning to make and offer on a foreclosed home, you need to be extremely confident with the home’s current condition, its true market value, and the repairs needed to restore the home. Too many buyers will think that they found a slamming deal and fear that they will lose the home to another bidder. So instead of taking the time to truly do their homework and complete the proper inspections and analysis, they end up locking up a property for more than it’s actually worth. Purchasing real estate is a game of emotions. If you let them take control you end up learning an expensive lesson!
   

2. Estimate Neighborhood Values: Consider what other comparable properties are selling for and talk to a real estate agents who have a working knowledge of the area. In fact, it’s a wise decision to thoroughly review these questions and any other recommendations your Realtor may make. Also, request a competitive market analysis on any property you are seriously considering. 3-6 Sold comps in the area should be sufficient, or a full analysis including 3 active and 3 sold comps may be recommended depending on your home buying experience. Below are 5 questions you should ask yourself before making a purchase.

   Is this neighborhood a desirable location and how are crime rates?

   What schools would be available for my kids or future buyers?

   Were there any other foreclosures or investor sales that could negatively affect the future value of my home?

   How long do I plan on living there and how could that affect things?

   What type of appreciation should I expect?

3. Get Preapproved: Before you start looking at homes, you should get preapproved on a mortgage in order to know exactly what you can afford. Sadly, many buyers can miss out on some phenomenal deals or spend hours of wasted time because they avoid this step. Show banks that you are a serious buyer and have your financing in place!
   

4. Get Professional Help: Not only should you seek the expertise and of an experienced Realtor, but you may also need guidance from a real estate attorney or financial consultant as well. Each professional can ensure that you are making the right choices throughout the process and can protect you from any issues you may come across along the way.

Remember that there is a lot more than meets the eye when you are trying to buy a foreclosed home. Negotiating with the banks, filling out paperwork properly, and undergoing all the necessary inspections can be a very detailed and tedious process.

Therefore, we encourage you to give The Hightower Team a call to get started. We have years of bank owned experience assisting both banks and individual clients when buying or selling foreclosed homes. Discover how we can help you to make a smart and profitable investment when buying a Denver foreclosed home!