Know the terms: Prorations

If you are buying or selling a home, something you should expect to see at your closing are prorations on your final documents. Prorations are basically credits or debits that "proportionally divide" various costs, bills, assesments, or taxes. Common prorations include property taxes, utilities, and homeowner association dues.

Since the seller lived in the home for part of the year there may be fees or dues that they have paid already which they should be reimbursed for. These could be monthly fees or annual fees. Often, HOA fees are paid in advance, so these would need to show as a proration in the form of a credit to the seller and a debit to the buyer for the remaining days in the month. Prorations can go the other way too - for instance, property taxes are paid in arrears (i.e. you pay 2005 taxes in 2006). So, the buyer would need the credit in this case. Since they will have to pay taxes down the road, they need a credit for the time the seller lived in the property for that year.

When calculating prorations, keep in mind that laws and calculations vary by state so talk with a real estate professional who is licensed in your area.

See exactly how it's written in the Colorado Real Estate contract (see line 373 on pg 7).

If you live in Colorado, feel free to contact me with any questions.

Colorado Springs continues to grow - 9 people per day!

Colorado Springs continues to grow - take a look at the figures recently released.

Census 2000 Population Growth Over 1990

In 2000, the population of Colorado Springs was 360,890 people. Five years later, we made it to 369,156 and then in 2006 we reached 372,437. Keep in mind, this is just for Colorado Springs proper, not the surrounding communities such as Monument, Manitou Springs, and Fountain.

In fact, the areas that have grown the quickest in the past 6 years are Monument and Fountain. On the other end of the spectrum, Calhan, Cripple Creek, and Victor are down anywhere from 3-5%.

The Gazette breaks down the growth by area in today's edition. Take a look:

Uneven Population Shifts

In my opinion, it's a great time to be living in Colorado Springs. We're seeing the growth that gives the city the ability to "be alive and thrive". Plus, we're seeing campaigns like DAP (Downtown Action Plan) to help increase redevelopment and revitalize crucial target areas. These plans will continue to assure that The Springs will have a vibrant and exciting future.

Ready to start looking?

I know that buying a home is a huge decision. It's unbelievable the amount of paperwork you have to sign at the closing table. But even before that, let's admit, it can be a stressful process. The good news is, that's why I'm here. I can help guide you through the process and take it at your own pace. I'm not a high pressure sales guy - I want you to go at your own pace and be completely happy with your final decision.
So, where do you start? Let me set up a search for you of our local MLS. You'll be able to see all listing, from all agents and can change your search criteria at anytime. You'll get emails when new properties become available that meet your criteria and then you can go online to your personal website and view them at your convenience. Your able to view pictures and information on potential properties, and even get driving directions if you want to go check them out yourself. Then, once you're ready, we'll go out and look at some of your picks. I'll also give you some references of some great mortgage brokers so we can figure out a comfortable price range for you. Once you've found a home you're interested in, we'll put in an offer and I'll negotiate with the other agent to get you the best price and terms. All along the way, I'll keep you informed and handle the details. Finally, I'll be right by your side at closing to make sure everything is taken care of properly.
The best part is, as a buyer you don't pay commission! Typically, the seller will pay both agents. So, why wouldn't you want professional assistance for your next purchase?