Colorado R.E. Marketplace

Buy a home-Get an $8K tax credit

2009-09-04T13:06:00.001-07:00

Time is Slipping Away!

THE TIME TO BUY IS NOW!!!!

Okay, folks! If you have been on the fence about whether or not to buy a home, it is time to get off that fence and time to buy your home! The $8K tax credit goes away December 1st of this year! That means, you need to close on your home NO LATER than November 30, 2009. If you have not owned a home in the previous 3 years, and have the credit to qualify, especially in light of the prices in the real estate market today....why not buy and get that $8K "give-away!?"

If you need help, contact a real estate professional today!

Just don't miss out on what's being handed out.

Foreclosure Prevention Plan Guidelines Revealed

2009-03-07T08:49:00.000-08:00

Thursday, March 5, 2009
Foreclosure Prevention Plan Guidelines Revealed
by Chris Mygatt, and his Coldwell Banker Real Estate Market Watch

Earlier this week, the Obama administration released the guidelines which enable lenders to begin modifications of eligible mortgages under the administration’s Homeowner Affordability and Stability Plan. Here is a summary of the guidelines, direct from the Department of Treasury: http://www.treas.gov/press/releases/reports/guidelines_summary.pdf.

This “foreclosure prevention plan” (dubbed by the media as such) is estimated to help some seven to nine million homeowners make their mortgages more affordable and help to prevent the continuation of the devastation that foreclosures have caused in this country.

According to the U.S. Department of Treasury, “The Home Affordable Refinance program will be available to 4 to 5 million homeowners who have a solid payment history on an existing mortgage owned by Fannie Mae or Freddie Mac. Normally, these borrowers would be unable to refinance because their homes have lost value, pushing their current loan-to-value ratios above 80%. Under the Home Affordable Refinance program, many of them will now be eligible to refinance their loan to take advantage of today’s lower mortgage rates or to refinance an adjustable-rate mortgage into a more stable mortgage, such as a 30-year fixed rate loan.

“GSE lenders and servicers already have much of the borrower’s information on file, so documentation requirements are not likely to be burdensome. In addition, in some cases an appraisal will not be necessary. This flexibility will make the refinance quicker and less costly for both borrowers and lenders. The Home Affordable Refinance program ends in June 2010.

”The Home Affordable Modification program will help up to 3 to 4 million at-risk homeowners avoid foreclosure by reducing monthly mortgage payments. Working with the banking and credit union regulators, the FHA, the VA, the USDA and the Federal Housing Finance Agency, the Treasury Department today announced program guidelines that are expected to become standard industry practice in pursuing affordable and sustainable mortgage modifications. This program will work in tandem with an expanded and improved Hope for Homeowners program.
With the information now available, servicers can begin immediately to modify eligible mortgages under the Modification program so that at-risk borrowers can better afford their payments.”

Industry online magazine, RISMedia, weighed in on the plan this week and offered this insight that I thought would be helpful: http://rismedia.com/2009-03-04/how-to-help-homeowners-understand-obamas-foreclosure-plan/

I know that many clients have a lot of questions right now and we are working to gather some communication tools to help. One good option in the meantime is a consumer-friendly Q&A recently put together by the Treasury Department, the U.S. Department of Housing and Urban Development (HUD) located at http://www.financialstability.gov/makinghomeaffordable/.

TIME TO MOVE and Get off the FENCE!

2009-02-28T08:21:00.000-08:00

Thursday, February 26, 2009
It May Be Time to Get Off the Fence!
Reprinted here from "weekly market watch" by Chris Mygatt

Now that we’ve passed the months of talk regarding the Economic Stimulus Package and the Foreclosure Prevention Plan, we can finally move on. I for one am relieved.

It’s time to get back into a position where we feel secure, where we feel confident and where we can once again make strong decisions regarding our future…and that includes decisions we make about real estate.

Right now what I am finding is that many buyers are on the proverbial fence. They’ve been waiting to see what was going to happen to interest rates. They were waiting to see what the results of the Economic Stimulus Package would be. And so they sit.

Now I realize that every individual situation is different so please don’t take this as a broad based brush that I am painting with, but what I can say is that buyers may truly be in one of the best positions than they have been in some 50 years to purchase a home. Consider the benefits to today’s homebuyer:

New $8,000 first time home buyer credit (and in most cases, the buyer does not have to repay the tax credit).

Reinstatement of FHA, Freddie Mac and Fannie Mae loan limits. These limits were equal to the greater of 125% of the 2008 local area median home price or $271,050 for FHA and $417,000 for Fannie and Freddie, with an overall maximum cap of $729,750.

Historically low interest rates. In my February Reality Check message I shared with you how changes in mortgage rates can affect a consumer’s purchasing power. The fact is, right now interest rates are low—certainly by historical standards—and those low rates translate to increased purchasing power for buyers.

Though we’ve seen decreasing inventory in many of our markets over the last several weeks, we still do have quite a bit of inventory in many markets. This translates to more choices for buyers. We are also anticipating that Spring will bring on a lot of good, new inventory for us and that should bring in a surge of new buyers—for today’s buyer’s, that’s competition for you.

The lesson I’d like to leave you with this week is that waiting for the real estate market to hit rock bottom may be a mistake. The only way to know that the market has “hit rock bottom” is when it is on its way up and by then, the window of opportunity is gone.

The current housing market offers a unique window of opportunity for confident buyers. The exciting news is that for the first time in quite a while, the stars are in alignment for consumers: mortgage rates remain low (certainly by historical standards), loan limits have been raised, there is an $8,000 first time home buyer credit and there is a large selection of homes to choose from. Now truly may be the time to buy and you may not want to make the mistake of waiting; because my guess is that if we were able to jump ahead 10 years from now, we’ll be looking at this market as a thing of the past—a time when we all probably should have been buying a lot more real estate.

"First Time" Home Buyers Take Note-Really "Did Not Own a Home in 3 Years DEAL!"

2009-02-20T06:30:00.000-08:00

MortgageMinute
February 17th, 2009

Compliments of
Matthew Hibler
Coldwell Banker Home Loans, Reprinted here with permission

PHONE:
(303) 409-6176

The Stimulus Plan was signed into law by President Obama today. It contains a new tax credit for first-time homebuyers. Essentially, first-time homebuyers within certain income limits who purchase a home in 2009 before December 1, 2009 will receive a tax credit of up to $8,000. The program is similar to the $7,500 tax credit which applied to home purchases made in 2008 after April 9. A comparison of the two credit programs is outlined below.

While the Stimulus Plan was still being debated, the Senate version originally included a $15,000 tax credit for all homebuyers. To lower the cost of the Stimulus Plan, the final version of the Plan contained this smaller tax credit, and this tax credit is applicable only to first-time homebuyers.

To qualify as a first-time home buyer as defined in the programs, the purchaser (and the purchasers spouse) may not have owned a home in the three years prior to the purchase date of the home. Single family homes qualify for the program. The home must be the primary residence.

Both tax credits are subject to the same adjusted gross income limitations (full credit for AGI less than $75,000 single/$150,000 joint, phased out for AGI up to $95,000 single/ $170,000 joint).

The amount for either credit is the lesser of 10% of the home purchase price or $7,500 or $8,000, as applicable.

While a purchaser still owns the home, the $7,500 credit must be repaid in equal payments over a period of 15 years, starting with the 2010 tax filing. The $8,000 credit will not need to be repaid. Again, the $7,500 credit needs to be repaid, while the $8,000 credit does not!

Upon sale of the home, any portion of the $7,500 credit not yet repaid is due in full. No portion of the $8,000 credit is due upon sale of the home, if the home is owned for more than three years. If the home is sold within the first three years, the full amount of the credit is due upon sale.

The $7,500 credit was not available to any purchaser utilizing state/local revenue bond money to help finance the home purchase. There is no such restriction on the $8,000 credit.

Under both the $7,500 and the $8,000 programs, the credit will be claimed on the purchaser's income taxes. Any amount in excess of taxes owed will be refunded to the purchaser.

Modified to be displayed here:
FIRST-TIME HOMEBUYER TAX CREDIT

As Modified in the American Recovery and Reinvestment Act

Modifications are marked by "B", as created in 2008 marked by "A"
February 2009

FEATURE
"A"- CREDIT AS CREATED JULY 2008
APPLIES TO ALL QUALIFIED PURCHASES ON OR AFTER APRIL 9, 2008
"B"REVISED CREDIT –
EFFECTIVE FOR PURCHASES ON OR AFTER JANUARY 1, 2009 AND BEFORE DECEMBER 1, 2009

Amount of Credit
"A"-Lesser of 10 percent of cost of home or $7500
"B"-Maximum credit amount increased to $8000

Eligible Property
"A"-Any single family residence (including condos, co-ops, townhouses) that will be used as a principal residence.
"B"-No change

All principal residences eligible.

Refundable
"A-Yes. Reduces (or can eliminate) income tax liability for the year of purchase. Any unused amount of tax credit refunded to purchaser.
"B"- No change, Purchasers will continue to receive refund for unused amount when tax return is filed.

Income Limit
"A"-Yes. Full amount of credit available for individuals with adjusted gross income of no more than $75,000 ($150,000 on a joint return). Phases out above those caps ($95,000 and $170,000).
"B"-No change, Same income limits continue to apply.

First-time Homebuyer Only
"A"-Yes. Purchaser (and purchaser’s spouse) may not have owned a principal residence in 3 years previous to purchase.
"B"No change, Still available for first-time purchasers only. Three-year rule continues to apply.

Revenue Bond Financing
"A"-No credit allowed if home financed with state/local bond funding.
"B"-Purchasers who utilize revenue bond financing can use credit.

Repayment
"A"-Yes. Portion (6.67% of credit or $500) to be repaid each year for 15 years, starting with 2010 tax filing.
"B"-No repayment for purchases on or after January 1, 2009 and before December 1, 2009

Recapture
"A"-If home sold before 15-year repayment period ends, then outstanding balance of repayment amount recaptured on sale.
"B"-If home is sold within three years of purchase, entire amount of credit is recaptured on sale. Applies only to homes purchased in 2009.

Termination
"A"-July 1, 2009 (But note program changes for 2009)
"B"-December 1, 2009

Effective Date
"A"-Purchases on or after April 9, 2008 and before January 1, 2009. Repayment to begin for 2010 tax year.
"B"-All revisions are effective as of January 1, 2009

Market Watch-What impact might this economic stimulus plan have on you?

2009-02-16T06:19:00.000-08:00

The Economic Stimulus Plan-and How it Might Affect YOU!

These thoughts were taken from Chris Mygatt's Market Watch

It Passed! Now What?

A compromise on the Economic Stimulus Package has been reached. The new price tag: $787 billion. That’s below both the $820 billion House-passed version and the $838 billion Senate-passed version.

Just like with anything in life, the final package is all about compromise. Real estate advocates from NAR and Realogy President Richard Smith lobbied well on our behalf but in the end only a portion of the requests we had of lawmakers were made part of the final Economic Stimulus Package.

I am encouraged that lawmakers have now reached an agreement and we can finally move forward with some direct action.

The goal of the highly controversial Economic Stimulus Package is to create or save some 3.5 million jobs while helping to rebuild our nation’s economy which has been in a recession since December 2007. Although, at the writing of this piece, the details of the legislation had not been finalized we do anticipate a number of important housing provisions, including (as reported by NAR):

• “Homebuyer Tax Credit – a $8000 tax credit that will be available for qualified purchase of a principal residence by a first time homebuyer between January 1, 2009 and December 1, 2009. The credit does not require repayment. Individuals who purchase in 2009 using financing assistance from state and local mortgage bonds will be permitted to use the credit, as well. Click here for a chart with details on the first-time home buyer tax credit: http://www.realtor.org/wps/wcm/connect/b32db1004d05f6338052c5fd73e5610f/government_affairs_tax_credit_chart_021308.pdf?MOD=AJPERES&CACHEID=b32db1004d05f6338052c5fd73e5610f
• FHA, Fannie and Freddie Loan Limits – Revised loan limits for FHA, Freddie Mac, and Fannie Mae. Specifics have not been released but reports indicate that the 2008 limits have been reinstated for 2009 except in those communities where the 2009 limits are higher. Additional increases in individual communities may also be available at the discretion of the HUD Secretary.
• Foreclosure Mitigation & Neighborhood Stabilization – Funding for states and local communities to be used for neighborhood stabilization activities for the redevelopment of abandoned and foreclosed homes are authorized.”

In addition to these new elements, NAR continues to work with the Department of Treasury to implement a mortgage buy-down program. The details on that will surface over the next several weeks.

To view all of the housing provisions, click here: http://www.realtor.org/government_affairs/gapublic/uae_hr1_additional_provisions

So what’s next? President Obama is pushing to get quick approval of the emergency package so he can sign it into law before the end of this three-day holiday weekend.

Once it is signed into action, Washington is eager to get the funds into the local state governments and ultimately the local economies so they begin to directly affect Main Street. Consider reading this article from CNN with more details on the package itself: http://money.cnn.com/2009/02/13/news/economy/stimulus_individuals/index.htm?postversion=2009021308

There’s no question, it will take several weeks—if not months—before we begin to see some patterns or trends and for this package to have a full impact on our economy. But I am gratified that the government recognized the importance of passing the Economic Stimulus Package. The health of the nation’s housing market is critical to the financial well being of every household in the country and that, of course, is front and center right here at home. I believe the legislation will help to stabilize the housing market, at a time when our country needs it most.

New Radio Show from the National Association of Realtors!

2009-02-15T07:46:00.000-08:00

Real Estate Today: NAR Is Bringing Real Estate to Radio
Real Estate Today, a new national radio show produced by NAR, will premiere on February 14, 2009.

The show will air online at www.RETRadio.com – visit the site any time after the premiere to listen to current or past programs.

Real Estate Today will cover the benefits and challenges of homeownership, from expert advice on buying and selling, to remodeling and landscaping, to the state of the current market and home financing issues.

The show will be an interactive experience that offers listeners an opportunity to exchange information and learn from some of the nation’s most recognized experts on a variety of real estate related topics such as landscaping, gardening, carpentry and general contracting, as well as mortgage experts and respected members of the media.

Hosted by award-winning radio broadcaster Gil Gross, the show will offer a fast-paced format that includes provocative experts, listener call-ins, field reports and a customized segment on local market conditions.

Where to tune in to Real Estate Today:

In the Washington, D.C., area, Real Estate Today will air on the show’s flagship station, 630 WMAL AM, every Sunday from 1-3 p.m., EST.

Satellite radio subscribers can hear Real Estate Today on:

America’s Talk, XM Channel 158, Saturdays 5-7 p.m. EST
Talk Radio, XM Channel 165, Saturdays 1-3 p.m. EST
Stars, Sirius-XM Channel 102, Saturdays 6-8 a.m. and Sundays 9-11 a.m. EST
For more information:

Visit the Real Estate Today Web site at www.RETRadio.com.

Frequently Asked Questions (PDF: 48KB)

DENVER in TOP Markets for Small Businesses!

2009-02-11T21:06:00.000-08:00

From BIZ JOURNALS
by G. Scott Thomas

Best markets for small business

9. Denver
Denver joins Boise and Salt Lake City in the top 10, proving that the Rocky Mountain region is congenial for entrepreneurs. Only six U.S. markets have more than 30 small businesses per 1,000 residents, Denver among them.
Small-business stats
(ranks in parentheses)
Small-business vitality score: 27.03 points
Number of small businesses: 72,867 (17)
1-year change in small businesses: 1.47% (52)
Small businesses per 1,000 residents: 30.21 (6)
Other stats
(ranks in parentheses)
Population: 2,464,866 (21)
5-year change in population: 8.11% (32)
Private-sector employment: 1,092,700 (19)
5-year change in employment: 9.19% (29)
Note: All statistics are the latest official figures available -- small businesses from 2006, population from 2007, employment from the third quarter of 2008. Ranks are among the nation’s 100 largest metros. See the methodology for details.

See : http://www.bizjournals.com/edit_special/75.html for full story!

Why not buy your home here today.....before everyone else is going to want to!?

Increased Home Buying Power-An Historical Perspective on Interest RAtes

2009-02-11T07:50:00.000-08:00

A Look at 30-Year Fixed Rate Mortgages Since 1971
From an e-mail sent by Chris Mygatt with Coldwell Banker

We’ve all seen the headlines. “Rates on 30-year mortgages drop back below 6%.” “Lower rates help sell houses, but market faces broader ills.” “Mortgage Applications Surge with Large Drop in Rates in Latest MBA Weekly Survey.” But what do changes in rates really do for your personal purchasing power and how low is “low” when it comes to today’s rates?

To answer these questions, we turned to the experts including Coldwell Banker Home Loans and Freddie Mac.

An Historical Perspective

To give you a better perspective as to how low mortgage rates currently are, we turned to Freddie Mac, a shareholder-owned corporation developed by the United States Congress in 1970. The mission of the organization is to provide homeowners and renters with lower housing costs and better access to home financing.

Click here access a chart which includes the monthly average commitment rate and points on 30-year fixed rate mortgages since 1971.

http://www.freddiemac.com/pmms/pmms30.htm

A few of the key highlights:

As of January, 2009, we are averaging a 5.05 percent commitment rate on 30-year fixed rate mortgages
To put it in perspective, in October 1981, interest rates reached their highest point, averaging 18.45 percent; more than three times today’s current rate
Though rates eventually came down, they did remain at double digit numbers for most of the 1980s and into 1990 (nearly a decade)
At today’s rate of around 5.05 percent, rates are the lowest they’ve been in Freddie Mac’s record which dates back to 1971
Historically speaking, rates have moved relatively slow and consistent through the years though there have been some notable peaks. Among them:
Since 2000, mortgage rates have remained relatively low with a peak of 8.52 percent in May 2000 to the January 2009 low of 5.05 percent
But to put it into perspective of how fast things can change, in January 1979, rates were at 10.39 percent. Just over two years later, rates reached their peak of 18.45 percent in October 1981. During this period, rates rose dramatically, and at one point jumped almost two percentage points in just 30 days.
How Do Mortgage Rate Changes Affect My Purchasing Power?

But how do changes in interest rates affect my personal purchasing power? While each person’s situation is different, we turned to mortgage banker and broker Coldwell Banker Home Loans to put together three different scenarios that would help you understand how even the slightest change in interest rates can dramatically improve (or hinder) your purchasing power. Here’s what Coldwell Banker Home Loans reported, based on loan amounts of $300,000, $500,000 and $700,000:

As you can see, in this example, even by a 1/4 percent increase in a 30-year fixed mortgage rate on a $500,000 loan, a consumer would increase his/her monthly payment by $77.93. More importantly, over the life of the loan, the consumer would pay an additional $28,054.80.

The bottom line is that with interest rates remaining at historic lows, this increases an individual’s purchasing power and makes the mortgage payment more manageable. All of this is leading up to a very strong market for buyers.

Denver is America's FAVORITE City!

2009-01-30T06:45:00.000-08:00

FromThursday, January 29, 2009, 8:58am MST | Modified: Friday, January 30, 2009, 6:02am From the Denver Business Journal

Survey: Denver is America's most popular cityDenver Business Journal

If you live in Denver, know that you're envied.

That's according to a national survey released Thursday by the Pew Research Center's Social & Demographic Trends project. It found that Denver is America's most popular big city -- both among people who live here and those who don't.

Of those Americans surveyed, 43 percent say they want to live in the Denver area, more than any of the 30 cities on Pew's list.

No. 2 on the list is San Diego (40 percent), followed by Seattle (38 percent) and Orlando, Tampa and San Francisco (tied at 34 percent).

The least-favorite cities are Detroit (8 percent), Cleveland (10 percent), Cincinnati (13 percent), Kansas City (15 percent) and Minneapolis (16 percent).

Denver area economic-development officials and business recruiters say frequently that a high opinion of the Mile High City around the country helps them in their tasks.

Pew found that 46 percent of those surveyed would rather live somewhere else.

Pew also found that:

By a 3-1 ration, people want to live where the pace of life is slow and where neighbors know each other well.
By about 2-1, they prefer to live in a hot-weather place over a cold-weather place.
About 70 percent of whites rate their current community as "excellent" or "very good, but only about half of Latinos and 40 percent of African Americans say the same.
Rural and suburban residents rate their communities better than do residents of cities and small towns.

Pew's report is based on a telephone survey of a nationally representative sample of 2,260 adults, conducted Oct. 3-19.

Local Denver Market Brightening!

2009-01-28T18:49:00.000-08:00

Positive News in Colorado! Read the article below!

Housing weathers storm

Metro home prices fall but do better than in most cities
By John Rebchook, Rocky Mountain News (Contact)
Published January 27, 2009 at 9:14 a.m.
Updated January 27, 2009 at 11:53 p.m.

The Denver-area housing market outperformed all but one market in the 12 months ended in November, according to a national housing report released Tuesday.

And in November, Denver-area homes lost only 1.1 percent, making it the best-performing city in the S&P/Case-Shiller Home Price Indices.

For the 12-month period as well as the month of November, all 20 markets in the index showed negative returns.

Home prices in the Denver area fell by only 4.3 percent in the 12 months ended in November; the overall drop for the index's 20 metro areas was 18.2 percent. Only Dallas, with a 3.3 percent decline, fared better than Denver.

"Sometimes I have to chuckle when we celebrate negative returns, but relative to other cities we are in much better shape," said economist Patty Silverstein, principal of Development Research Partners.

While the Denver area will lose jobs this year, Denver and the state will continue to outperform the nation, Silverstein told about 300 people at a real estate forecast breakfast Tuesday in Lakewood.

Silverstein said she expects "minor" increases in home sales activity this year from 2008 and perhaps even a slight increase in prices.

"Our marketplace is not overbuilt," Silverstein said. "We are building next to nothing. We are not plagued by an over-abundance of inventory like so many other places. And we never had the roller-coaster rise and fall of prices other places saw."

Chris Behrens, a principal of UrbanThrive Real Estate, called the Case-Shiller report "encouraging" and "good news."

Behrens said he has noticed that there seems to be a "core group of career professionals" selling real estate in Denver, while many brokers are leaving the business because they couldn't weather the tough economic climate.

"I get the impression there are fewer buyers looking around on their own," Behrens said. "There are buyers out there who think you can get some really great deals, and they are turning to a core group of knowledgable people to help them find and evaluate properties."

Denver's housing market is in far better shape than in cities in California and in Phoenix, Las Vegas and Miami, said Chris My- gatt, president of Coldwell Banker Residential in Colorado.

"These are catastrophically affected markets," Mygatt said.

Phoenix and Las Vegas were the two worst markets through November, losing 32.9 percent and 31.6 percent, respectively, according to Case-Shiller.

In some towns in California, homes that sold for $1 million two years ago probably are worth less than $600,000 today, Mygatt said.

Since January 2000, a typical home in Denver has appreciated 26.65 percent, while other markets have appreciated far more. For example, during that period, homes in Los Angeles have appreciated almost 76 percent; Miami, almost 70 percent; New York 87 percent; Seattle 66 percent; and Phoenix and Las Vegas are both up about 30 percent, according to Case-Shiller.

However, the free-fall in prices for many of the markets outside of Denver is expected to continue.

Despite showing a smaller drop than most of the nation, the Denver market is several months away from hitting bottom, said independent broker Gary Bauer, who prepares a monthly report on the Denver-area market.

"I don't think we're close enough to pinpoint the bottom yet," Bauer said

Have These Home Features Really Diminished in Value?

2009-01-23T23:35:00.000-08:00

I can't help wondering what everyone else thinks of the following excerpted blog from the Realtor blog, and written by By Melissa Dittmann Tracey:

Home Fads That Are Falling Out of Style

LAS VEGAS – Some home features don’t stay popular forever. More homes are inching away from incorporating the following home features, according to recent consumer preference surveys.

1. Fireplaces: The fireplace skyrocketed in importance in homes in 1991 with 62 percent of new homes having one or more. But the number has steadily been decreasing ever since. In 2007, the number dropped to 51 percent.

2. Carpet: While 54 percent of homes still have carpet floors, the number is decreasing and hardwood floors are taking the place. Vinyl and ceramic tile flooring also are being bypassed more by buyers. Seventeen percent of new homes contain hardwood floors throughout the entire house.

3. Living room: These once-decorative centerpieces of homes are slowly vanishing from newer homes. Thirty-four percent of consumers say they’re willing to buy a home without a living room.

4. Desks in the kitchen: These desks were once looked at as great storage areas but they’re often too small and quickly become clutter spaces in a home, said Gayle Butler, editor in chief of Better Homes and Gardens. Instead, more consumers say they prefer larger desks in or near the family room—equipped with a messaging center—where they can keep an eye on their kids as they work on the computer.

5. Skylights: The little windows that allow natural light to seep into a home from above are falling out of style. Only 10 percent of new homes will include them this year, a continuing downward spiral for skylights.

6. Upscale kitchen finishes: Granite countertops are slowly becoming less desirable among buyers who are now moving toward affordable, low-maintenance laminate countertops—which tend to last longer and now come in various styles.

More Moves to Colorado!

2009-01-19T09:39:00.000-08:00

I remember when I sold real estate back in the 1980's! So many moved here from California.....and from the sounds of the article below, we may be repeating history!

For multiple reasons, I have the luxury of living anywhere in the country, or even the world, for that matter. I wouldn't give up living in this land of sunshine for anything! Keep reading about this family in an article by Michael Blood, a writer with the Associated Press, below:

January 12, 2009
Go East, young man? Californians look for the exit
By MICHAEL R. BLOOD
Associated Press Writer
Mike Reilly spent his lifetime chasing the California dream. This year he's going to look for it in Colorado.

With a house purchase near Denver in the works, the 38-year-old engineering contractor plans to move his family 1,200 miles away from his home state's lemon groves, sunshine and beaches. For him, years of rising taxes, dead-end schools, unchecked illegal immigration and clogged traffic have robbed the Golden State of its allure.

Is there something left of the California dream?

"If you are a Hollywood actor," Reilly says, "but not for us."

Since the days of the Gold Rush, California has represented the Promised Land, an image celebrated in the songs of the Beach Boys and embodied by Silicon Valley's instant millionaires and the young men and women who achieve stardom in Hollywood.

But for many California families last year, tomorrow started somewhere else.

The number of people leaving California for another state outstripped the number moving in from another state during the year ending on July 1, 2008. California lost a net total of 144,000 people during that period — more than any other state, according to census estimates. That is about equal to the population of Syracuse, N.Y.

The state with the next-highest net loss through migration between states was New York, which lost just over 126,000 residents.

California's loss is extremely small in a state of 38 million. And, in fact, the state's population continues to increase overall because of births and immigration, legal and illegal. But it is the fourth consecutive year that more residents decamped from California for other states than arrived here from within the U.S.

A losing streak that long hasn't happened in California since the recession of the early 1990s, when departures outstripped arrivals from other states by 362,000 in 1994 alone.

In part because of the boom in population in other Western states, California could lose a congressional seat for the first time in its history.

Why are so many looking for an exit?

Among other things: California's unemployment rate hit 8.4 percent in November, the third-highest in the nation, and it is expected to get worse. A record 236,000 foreclosures are projected for 2008, more than the prior nine years combined, according to research firm MDA DataQuick. Personal income was about flat last year.

With state government facing a $41.6 billion budget hole over 18 months, residents are bracing for higher taxes, cuts in education and postponed tax rebates. A multibillion-dollar plan to remake downtown Los Angeles has stalled, and office vacancy rates there and in San Diego and San Jose surpass the 10.2 percent national average.

Median housing prices have nose-dived one-third from a 2006 peak, but many homes are still out of reach for middle-class families. Some small towns are on the brink of bankruptcy. Normally recession-proof Hollywood has been hit by layoffs.

"You see wages go down and the cost of living go up," Reilly says. His property taxes will be $1,300 in Colorado, down from $4,300 on his three-bedroom house in Nipomo, about 80 miles up the coast from Santa Barbara.

California's obituary has been written before — "California: The Endangered Dream" was the title of a 1991 Time magazine cover story. The Golden State and its huge economy — by itself, the eighth-largest in the world — have shown resilience, weathering the aerospace bust, the dot-com crash and an energy crunch in recent years.

But this time, the news just keeps getting worse.

A state board halted lending for about 2,000 public works projects in California worth more than $16 billion because the state could not afford them. A report by Sen. Barbara Boxer, D-Calif., last month said the state lost 100,000 jobs in the last year and the erosion of home prices eliminated over $1 trillion in wealth.

"I don't think the California dream, per se, is over. It has become and will continue to become grittier," says New America Foundation senior fellow Gregory Rodriguez. "Now, perhaps, we have to reassess the California of our imagination."

Gov. Arnold Schwarzenegger is among those who say the state needs to create itself anew, rebuilding roads, schools and transit.

"We've lived off the investments our parents made in the '50s and '60s for a long time," says Tim Hodson, director of the Center for California Studies at California State University, Sacramento. "We're somewhat in the position of a Rust Belt state in the 1970s."

Financial adviser Barry Hartz lived in California for 60 years and once ran for state Assembly before relocating with his wife last year to Colorado Springs, Colo., where his son's family had moved.

"The saddest thing I saw was the escalation of home prices to the point our kids, when they got married, could not live in the community where they lived and grew up," Hartz says. "Some people call that progress."

Another Credit Score Added to the Formula!

2009-01-18T07:54:00.000-08:00

The following article appeared in a Realtor newsletter and it is sure to shed some light on your credit! I learned a few things from this, and think you might also!

New threats to credit scores by Liz Pulliam Weston
A revised FICO formula will kick in soon, and the balances you carry will matter more than ever. Luckily, little missteps will count less. Plus: How you can protect yourself.
By Liz Pulliam Weston
A long-delayed update to the leading credit scoring formula is rolling out in 2009, offering a few advantages to consumers -- and some serious new risks.
FICO 08, the latest version of the FICO scoring model, was initially supposed to be introduced in the fall but was delayed by lawsuits between its creator, Fair Isaac, and the nation's three main credit bureaus.
Everybody's since made up, and TransUnion will offer the new score to lenders starting in late January, with Equifax introducing it in the spring, said Craig Watts, a Fair Isaac spokesman. (Experian, the third bureau, hasn't yet announced when it will offer the score.)
Fair Isaac says the new score will do a better job of predicting defaults than the classic FICO, which is used in more than 75% of mortgage lending decisions and by 90% of the largest U.S. lenders.
But FICO 08 is even more sensitive than the classic FICO to how much of your available credit you're using. If your credit card issuer slashes your credit limit -- which is increasingly likely these days -- you could see your scores plunge, regardless of whether you carry a balance.
Another hazard: The new scoring formula responds more negatively if consumers have few open, active accounts. Because more credit card issuers are shutting down unused and unprofitable accounts, that boosts the chances of damage to your scores.
3 victories for consumers
Not all the news is bad. FICO 08 offers some definite improvements for consumers in several areas, including:
• Collections. The new formula ignores small collection accounts in which the original debt was less than $100. This is a big victory for consumers and one I've advocated for years, because niggling little debts -- created by unpaid library fines, forgotten parking tickets or a small medical bill that slipped through the insurance cracks -- had an outsize impact on people's scores.
• Credit missteps. Fair Isaac says the new version is less punishing to those who have had a serious credit setback, such as a charge-off or a repossession, as long as their other active credit accounts are all in good standing.
• Authorized users. Fair Isaac initially said FICO 08 would combat potential fraud by ignoring any "authorized-user" accounts in a borrower's credit report. After a big consumer outcry and potential credit fairness issues, Fair Isaac backed off and decided some authorized-user information would be included.
Adding a spouse or child to your credit card as an authorized user has long been a good way to improve that person's credit score, because your good history with the account typically could be imported to the relative's credit file. But in 2007, credit repair companies began abusing this feature by "renting" authorized-user slots from good credit risks and selling them to strangers who wanted to boost their scores. Some of these strangers bought slots on dozens of different people's cards, boosting their scores by tens or even hundreds of points.
Lenders pressured Fair Isaac to drop authorized-user information from its calculations. But consumer advocates protested, noting that the change could punish millions of innocent parties, including spouses whose entire credit history depended on authorized-user information. Legal experts also warned that ignoring information regarding spouses on authorized credit lines could be a violation of the Equal Credit Opportunity Act.
• Video: New credit card safeguards
So now Fair Isaac says the FICO 08 formula will factor in authorized-user accounts "while materially reducing potential impacts to the score," according to the company's FICO 08 marketing brochure. Fair Isaac won't disclose exactly how it does that, but speculation is that the new score will count a limited number of authorized-user accounts and ignore the rest.
Better? Worse?
Fair Isaac made another course change regarding how FICO 08 would handle "inquiries," or applications for credit. At first, the company said applying for new credit would hurt less than in the past, since initial research seemed to show that inquiries had become less predictive of future defaults. Subsequent research, though, contradicted that finding, said Watts, the company spokesman. So you still want to be cautious and apply for credit only when necessary.
But clearly, one of the biggest hazards for consumers is the credit utilization issue. As issuers slash credit limits, the gap narrows between customers' balances and their limits, which is generally bad for their credit scores.
How bad is tough to predict. A limit reduction on a single account won't necessarily trash your credit, Watts said. Because FICO scores assess a lot of data, the effect of a single factor like a credit limit reduction will depend on what other data is on the credit report and how much the line is reduced.
"The person's score could be unchanged; it could go down," Watts said. "Or in some cases, it could go up."

It's fair to say, though, that big reductions in credit limits, and reductions affecting more than one account, aren't going to be good for your scores. Credit card expert Ben Woolsey of CreditCards.com noted that issuers' credit limit reductions so far -- and the promise of more to come -- are "clearly a hazard" to consumers' scores.
Still, Fair Isaac defends the accuracy of its formulas. Watts said the company's research has so far found the credit limit reductions have affected "a relatively small population, and those line reductions have been a relatively small amount for a sizable part of that population."
At the same time, he said, a "notable number" of consumers have reduced their use of revolving credit such as credit cards, which is helping to minimize any impact to their FICO scores from credit limit reductions.
"Our most recent performance study," Watts said, "indicates that the FICO score continues to appropriately rank-order consumers based on credit risk."
Different yardsticks, same strategies
Other ways to protect your scores:
Watch those balances. The less of your credit lines that you use, the better, even if you pay your balances every month. The credit bureaus and your credit scores don't distinguish between balances you pay off and those you carry month to month; the balance that's reported to the bureaus is typically the one that shows on your most recent monthly statement.
If you're in the habit of using a big portion of your credit limit -- because you travel on business or are chasing credit card rewards -- consider asking for a higher limit or using more than one card. Ideally, you'd use no more than 30% of your available limit at any time during the month; under 10% is even better.
If your credit card issuer slashes your credit limit, try to get the decision rescinded (read "Thaw out your frozen credit" for details). If that's not possible, use the card less and move at least a portion of your balance to other cards or to an installment loan. For credit scoring purposes, it's better to have small balances on a number of cards than a big balance on a single account.

Don't close accounts. Fair Isaac has made it clear that closing accounts can never help a classic FICO score and may hurt it. With FICO 08, that's even more true. You get more points for having open accounts in good standing; conversely, having a higher proportion of closed accounts can hurt you more.
Keep your accounts active. Issuers increasingly are shutting down unused accounts, which reduces your available credit and can hurt your scores. Even if your account isn't closed, though, FICO 08 doesn't like to see a bunch of unused cards -- it wants to see you actively and responsibly using a variety of credit accounts.
A simple way to keep an account active is to have a monthly bill charged to it, and then arrange for an automatic monthly payment to ensure you don't miss a due date (a single skipped payment can devastate a great credit score).

Consider an installment loan. There are two main types of credit: revolving accounts that allow you to build up and pay down balances, and installment loans that typically have fixed payments that require you to pay down your balance over time. Credit cards and lines of credit are examples of revolving accounts, while auto loans and mortgages are considered installment loans.
The FICO formula has always rewarded folks who had and successfully managed both types, which is why getting an installment loan was often recommended as a way for people with troubled credit to rehabilitate their scores. The new scoring formula is even more sensitive to the mix of credit types people have and use. In the past, people were able to get and keep very high scores using only credit cards; it's not clear if that will still be true under FICO 08.

Liz Pulliam Weston's latest book, "Easy Money: How to Simplify Your Finances and Get What You Want Out of Life," is now available. Columns by Weston, the Web's most-read personal-finance writer and winner of the 2007 Clarion Award for online journalism, appear every Monday and Thursday, exclusively on MSN Money. She also answers reader questions on the Your Money message board.

Lowest rates in 40 years!

2009-01-16T06:34:00.000-08:00

While a good credit score is more important than ever in qualifying for a mortgage, those who have excelled are in an excellent time to reap the benefits of paying their bills on time!

With interests around 5%, lenders are busier than ever. That means many people are either buying or refinancing. If you own a home right now and your area is still suffering from a decrease in property values, you still might want to consider keeping that home and renting it out! While lenders won't use 100% of your rental income in qualifying for a mortgage on your new home. the amount may improve your qualifying ratios. The best way to find out is to call a good lender today. If you don't know one, your local Realtor will!

There are such deals out there right now. Prices on some homes dropping $30-100K at one pop! I'm showing a buyer some today, and will keep you posted on the outcome!

Happy real estate buying!

Better NOW than EVER!

2008-12-04T19:05:00.000-08:00

Maybe it is time to beat the crowd to make application for loan approval and then get out and find a house before the prices start rising! With the forecast for rates potentially at just 4.5%, it is better than anyone could have predicted!

Make sure your credit is in the best shape possible, and consider calling a Realtor today!

As a broker in Colorado, with a passion for real estate, I have not seen the value in my properties plummet like the value of many stocks! And, when it is a bad time to buy, it is a great time to rent out property.

Beat the crowd sure to form after the holidays, and talk with a lender and real estate broker now! Lock in a price before demand drives prices up on your new home!

The Time to Buy is NOW!

2008-01-10T14:55:00.000-08:00

For anyone "sitting on the fence" about whether or not to buy a home, it may be the perfect time to get off the fence!

Take a look at the linked article http://jobs.aol.com/article/_a/want-to-be-a-millionaire/20070830171709990004. The second way to become a millionaire.....start buying property! The market makes it easier than ever, provided you have okay credit.

Find a broker to help you today!

Boom, Bust or Even Keel?

2007-12-21T07:19:00.000-08:00

Looking in any paper in the Colorado area over the past few weeks, one is likely to see numerous articles related to the Colorado real estate market, including ones on foreclosures, real estate auctions and builder incentives inflating the "sold" prices of new homes.

Without a doubt, the market has changed. There are certainly some bargain buys here. There are homes which can be purchased thousands and even hundreds of thousands below the price at which the home was first listed, or even below the price at which the home previously sold.

Don't assume, however, that this price cut is a blanket, across the board situation. There are still areas and neighborhoods "holding their own." In some areas, homes can be sold 10-15% higher than the sold price 1-2 years ago. Location, location, location! Not a new concept.

The best area to buy right now may be one that is simply a neighborhood that appears to be an area in which you wish to live. Is the location suitable to you? Are the amenities you desire close by? Does the home fit you or your family? Is the home a "deal" or one that will likely be worth more in a few years than it is worth today?

If you are planning to live in the home, you could get in now at a price apt to be quite lower than the price will be a few years from now. And, living in it for at least two years, you could make a profit on which you will not have to pay a portion of to Uncle Sam.

If you are an investor, opportunities abound. While foreclosures are in abundance, I would still stipulate that location remains a very important factor. Maybe look for the needle in a haystack kind of property.....where foreclosures are rare. I have seen some which would be incredible for investors. I saw one property in an extremely desirable, high end area of the Denver metro area, with a couple of acres, listed initialy for more than $200,000 over the sold price! I had even contemplated putting in an offer, but was reluctant to "offend" the seller. Apparently, I would not have; and I will never allow that kind of thinking to stop me in the future. Perhaps my "insult" would have been just what the seller was looking for. In fact, the seller accepted a more "insulting" offer than my planned offer.

What do you have to lose for not trying to get the property you want today? Perhaps a very healthy bargain!

Mortgage Rates Lowest in 2 Years!

2007-12-03T07:43:00.000-08:00

Mortgages rates on 30 year loans have fallen nationally to the lowest level in more than two years, according to Freddie Mac.

If you have been waiting to buy, the right time may be now.

There are a lot of homes one the market, and, in some cases, you may be able to buy well below what a property would have sold for this past spring and likely lower than you would pay next summer!

I have also seen some incredible properties for investor/developers.
Some properties are in primo areas and need to be scraped. One in a very prestigious area surrounded by $1.5 million homes could be purchased and scraped. Look around! A lot of leg-work by you or your broker could prove profitable!

Who's writing the ever-changing headlines?

2007-11-25T21:53:00.000-08:00

It is interesting to read the ever-changing headlines regarding the real estate market! Incredible how the headlines read from week to week in the major Denver newspapers. Most recently, a headline referred to the "poor grades" for the local housing market.

It pays to remember that these are "headlines," and if you ever watched Jay Leno review headlines from across the country, you may already well realize that such do not always accurately portray the actualy news! In fact, these headlines often leave you feeling even more confused.

The bottom line in the Denver area is that housing starts are down by about 29% for the first nine months of this year when compared to the same period of time in 2006. It is also worthwhile noting that vacancies are way down. This may well have happened as a result of houses available for sale not getting sold, and would-be sellers having become landlords. But, that does make for a good rental market, and one worth considering for investors and one-time "sellers" alike.

It is an excellent time to own real estate here. If you want to sell, but are struggling to get offers or even showings, it may be worthwhile to consider renting out the property to cover the mortgage until the market turns more favorable for you. Remember, that with vacancies being low, rental rates can usually be a bit higher.

And, just a tip: Don't just read the headlines. There is often much more to uncover in the rest of the story!

$945 Million "Overpaid" in Taxes!

2007-11-15T09:41:00.000-08:00

If you own your own home, you may have contributed to this over-payment!

It appears that about 2.2 million homeowners who took the standard deduction on their tax returns, instead of itemizing on their returns, paid $945 million more in taxes than necessary, according to the Government Accountability Office, a research arm of Congress, reported.

On average, the overpayment was $438 apiece, according to the study of 1998 returns.

If you own your residence, and particularly if your home is new or recently purchased, you may be short-changing yourself to the benefit of Uncle Sam! If in doubt, it would behoove you to talk with a certified public accountant, or CPA.

Other often overlooked deductions include points paid when originating a mortgage! If you are not familiar with the financial benefits in home ownership, be sure to talk with a knowledgable real estate broker or CPA!

Double Value!

2007-11-09T06:01:00.000-08:00

It is said in the news that a home's value, on average, doubles every 10 years! That is a good investment return! Not only that, the benefits of home ownership are numerous.

First, you have a place you own, a place to live. Second, you have tax deductions in the form of property taxes and mortgage interest. And, when you think of the average increase in value of 100% over a ten year period, buying a home is a very wise investment.

The added beauty is that you can sell your primary residence once every two years and not pay any taxes on the gain! If you don't want to sell every two years, you can wait and rent the property out for awhile, and as long as the property was your primary residence for at least two of the previous five years, any gain is yours tax-free. I cannot think of any other "investment" that permits earning such money without giving the IRS a share.

I also see ads all over the Denver metro area for builders discounting new homes by as much as $129K! One ad showed an original price of $429K+, and that homes is now being offered at $299,900! Incredible. If you have been looking, today may be the time to make the deal!

Tough market?

2007-11-07T05:54:00.000-08:00

Homes are selling! I know, because I am selling some. Many are priced right and are selling quickly. Or, they are selling quickly after a sometimes dramatic price drop. In some cases, the drop is preceding a bank foreclosure, and sometimes the drop is following a bank foreclosure.

I showed a condo in a downtown high-rise a few days ago that was an UNBELIEVABLE price. For a "fix and flip" investor, this property was a trashed gold mine. The price had dropped $71,000 after the foreclosure. For a spacious unit with 180 degree views, if I had cash available, I would have put in an offer!

Whether or not a house sells in today's market comes down to two factors. The first, as always, will be location. If a buyer isn't looking in a certain location to begin with, an available property will not be considered. Further, within the same building or neighborhood, certain locations will win over less desirable ones when getting offers.

The second, and a "bigger" factor than a few years ago, is the price. From times in Denver when you would no sooner see a sign up (if it got that far), and a property was under contract, today, there are many others on the market from which to choose, and if a seller won't budge at all on price, a buyer may go to the next door.

Another place to tap into if looking for a home today is with new build communities. Many builders are giving so many incentives, particularly when it comes to spec homes that are ready close. Builders typically like to get these homes sold and closed and off their books before the end of the calendar year.

Why not consider taking advantage of one of these opportunities today?

Colorado Home Prices Up!

2007-11-03T23:21:00.000-07:00

Okay....it is in the news now. Home prices increased in Colorado over the past couple months. It seems that, despite the high numbers of homes in foreclosure, the average price of homes sold and closed has increased. This upward trend will likely continue, many believe, as homes in Colorado had not seen the double digit appreciation as other markets in the U.S. over the past decade. Rather, Colorado had seen an even, steady growth.

Additionally, Colorado and the Denver area especially have been in the news with "ski" conventions being held here in 2010 (taken out of Las Vegas...to a place where what happens here doesn't have to stay here!), and with the hosting of the Democratic National Convention. The market is abuzz with the forcasted need for housing over a four month period in the area next year. I talked with the owner of a high-rise condominium unit in downtown Denver...who told me he had his place leased out for four months at $15,000 a week! $60,000 a MONTH.....for FOUR months. Maybe it's time for YOU to invest!?

Deals abound!

2007-10-30T10:24:00.000-07:00

There are so many properties on the market today, it is easy to find one that is going to result in a profit to you!

If you don't have the ability or motivation to look for these properties yourself, or if you would like assistance in hunting properties and negotiating offers, please begin your search by locating a licensed real estate professional in your area. It won't cost you anything to seek this help. You don't pay a retainer...and in most cases, any commission paid to the real estate agent who helps you find the right proeperty, will come from the seller of the property you buy.

Online or in person, start your search...either on real estate posting online...or by finding an agent to help you get started!

The real estate market in Colorado is HOT!

2007-10-28T16:27:00.000-07:00

The time is NOW! Remember back in the 1980's when interest rates were high and real estate prices were flat. So many poeple were afraid to invest in real estate. Let's face it, you want to see your money increase....or the value of your property appreciate. It is awful to buy stock and watch the number decline cent by cent, dollar by dollar. It is the same with real estate. But, there are SO MANY good deals to be had out here right now. The time is now. Whether you want to fix and flip, or move up to a little more space inside or out.....a good time to buy is now! You should consider it!