This may be the best buyers’ market in a decade. Why aren’t the buyers out in droves?

Credit has become important again and not all current buyers have a credit history that will allow them to qualify. Some who would have easily qualified for 100% funding a year ago will find that if they don’t have good credit, they need no longer apply. There are good loan opportunities out there, but most will require solid credit and a good down payment.

Before many become buyers, they need to be successful sellers first. Many prospective sellers owe more on their house than a buyer is willing to pay for it. This happened in a couple of ways. Some people have only lived in the house for a short time and put little to no money down. They haven’t been there long enough for it to appreciate to a level where they will walk away from the closing table with money in hand. In other cases, people have listened to the all the enticing commercials about consolidating debt and every time the house appreciated, they pulled the money out for other purposes instead of letting it grow in value so they could get another home when the time was right.

Buyers are nervous. The media’s evaluation of the current market has created fear. Does anyone have the crystal ball to tell us exactly when we will or have hit bottom? The answer is a resounding “No”. So what if I buy a home today and the values in my neighborhood are going to drop 10%? While that is certainly a possibility, it is extremely unlikely. We won’t know when the bottom has arrived until we are well into the recovery. By that time, a buyer’s opportunity to “buy low” will be limited because prices will have begun the climb  and incentives will be shrinking and soon to be gone.

No one can tell us the perfect time to buy, however, with the current conditions, sellers are dropping prices and offering amazing incentives. Sellers are paying buyer closing costs and, in some cases, offering home theaters or furnishings. It wasn’t that long ago where builders had people waiting in line for each house in case the first buyer fell through. There was no negotiating. If you wanted the house, you gave in to builder demands. Today, you’ll get free finished basements, 4% thirty year fixed loans and too many other incentives to list.

Knock, Knock

Who’s there?

A Homebuyer.

A Homebuyer who?

A Homebuyer who recognizes a great buyers’ market.

(The door opens and the buyer walks in.)

Don’t let a great opportunity pass you by.

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By running the numbers on the value of your home, you may have discovered that there is no way to sell or refinance without bringing money you don’t have to the closing table.

Consider another option. Your lender doesn’t want your house. With the current crop of short sales and foreclosures on the market, lenders are losing significant money. While there are no guarantees and you will have to be persistent, especially if you aren’t late on your payments, give your lender a call and ask to renegotiate.

Can your current rate be extended and the adjustment on your Adjustable Rate Mortgage deferred for a year or two until the market works it’s way through the current crunch?

Are they willing to modify your loan to a fixed rate with limited to no closing costs? After all, they already know your history and you may have been a good customer for years.

This may not be the current time to sell if you owe more on your home than a buyer will pay. When selling isn’t possible and your payment is more than you can handle, working with your lender may result in renegotiating your loan to an affordable payment. You may have to keep calling. Will they renegotiate? It can’t hurt to ask and may save your house.

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There is something about kids and water…

A child can be having the worst day where the world seems to be ending and a flow of water makes it immediately all better.

As I’ve grown out of my kid phase, it’s been easy for me to forget some of those simple pleasures.

When the day gets long, the paperwork pile seems to get higher every time I turn my back and the phone calls come one after another with people wanting things, I need to remember that there is a sprinkler outside just waiting for me to run through it.

There is something about kids and water…thank goodness.

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Trivia Question: Why is this Annual Wheat Ridge event named the Carnation Festival?

As a native to Colorado you might have thought that I was an annual attendee to the 38th Annual Wheat Ridge Carnation Festival. Sad to say, this was a first for me. But, it will definitely not be the last. The food, the music and especially “A Step Above”, the five women dancers from ages 70–93, helped make this event a memorable one.

While Friday evening brought some rain, the die hards stuck it out and were rewarded with one of the most vibrant rainbows I have ever seen, soon followed by an evening of fireworks. The Wheat Ridge Police Department team beat the Wheat Ridge Silver Foxes in a friendly game of softball. I understand that the Silver Foxes, with an average age of 67, usually win this game. Maybe they let the police officers win this year.

Trivia Answer: From the 1950s-1980s, Wheat Ridge was world renowned for the beautiful carnations. In the mid 1980’s cheap carnations from Columbia put most of the local growers out of business. The last of the major wholesalers, the Novacek Family, still runs a garden center in the area. The family members were the 2007 parade marshalls.

If you missed this year, plan to attend the 39th Annual Wheat Ridge Carnation Festival in August of next year. You’ll be glad you made it.

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COMING SOON!

$265,000

Within walking distance of the Highlands Ranch Town Center, schools and parks, this house will be a wonderful place to call home for the next lucky owner. If you love an open house with lots of natural light, this will be a perfect fit. A beautiful master suite with a five piece bath awaits you at the end of a busy day. Grab the bubbles and a glass of wine and settle down in the oversized bathtub. A gardener and grill master will be at home in the oversized backyard.

Warning: Your house may become the local gathering place for friends and neighbors who will enjoy taking a break in the lush park-like backyard. The scents of a well cooked barbecued meal will draw them over, so grill extra steaks. You are going to need them.

Your dogs will also get to know their neighbors at the four dog parks in the Highlands Ranch neighborhood.

3 Bedrooms
3 Bathrooms
Upstairs Laundry
Amazing Natural Light
Corner Lot
Backyard Deck and Barbecue Patio
Outdoor Fountains
Vaulted Ceilings
Open Floor plan

The photos and virtual tour will be available next week. Don’t miss this great house. It won’t be available for long.

For a private showing, contact me at 720–260–3133.

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Bloggers across the world have an opportunity to speak on behalf of improving our environment.

55 days from now on October 15th, Blog Action Day, bloggers are called to unite. Everyone is asked to write an article about any topic that relates to improving our environment.

Currently 1431 bloggers have registered to participate. If you’d like to see which bloggers have committed, click here. These may be blogs you want to visit during the middle of October. It will be interesting to see the diversity of articles and opinions.

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I’ve read numerous blogs and articles in the last couple of days about Countrywide with predictions on both sides. One school of thought is that the lender will be going bankrupt and another is that the infusion of cash in the last few days is proof that the company is still viable. After all, why would banks lend so much money if the ship were sinking. Check out the end of the post for a few of the opinions.

I received this email just a short time ago from Chris Brooks who is one of our local loan consultants with Countrywide. It is the letter released by Countrywide for its consultants to distribute. He gave me permission to use it on my blog.

News about the current state of the mortgage industry can be unsettling for those of us who make our living in this business. This challenging time has brought about greater than usual media coverage of our sector, including coverage about Countrywide.

With all the information that’s being distributed, I wanted to take a moment to personally update you on what’s going on at Countrywide.

We have supplemented our existing liquidity options by infusing an additional $11.5 billion in to our operation through a syndicate of 40 of the worlds largest banks. More than 70 percent of this facility has an existing term of greater than four years.  

The $11.5 billion infusion is in addition to our previously announced available liquidity of $48 billion.

We announced our strategy to fund a significant portion of loans through Countrywide Bank, which has approximately $100 billion in assets. Today, we fund approximately 70 percent of our loans through Countrywide Bank, and expect that nearly all of our loan volume will be funded through the bank by the end of September.

We expect that approximately 90 percent of the loans we originate will be eligible for funding through Countrywide Bank or the Government Sponsored Entities (Fannie Mae, Freddie Mac).  

Just this week, we increased our product options for fully documented Jumbo loans.

I want to let you know that while this industry turmoil may continue for some time, Countrywide is here to meet the home loan needs of your customers. Countrywide is America’s number one mortgage lender and has been serving real estate professionals just like you for nearly 40 years. We will continue to be here to assist you and your customers.

While the current industry news can be unsettling, know that I am here, backed by Countrywide, to meet your mortgage lending needs. Feel free to contact me directly.  

Sincerely,  

Chris Brooks
Home Loan Consultant
Countrywide Capitol Hill
Denver, Colorado

Here are links to other interesting articles related to Countrywide from the Inman Blog and some of my favorite bloggers, Jeff Brown, Jay Beckingham and Chris Lengquist.

Countrywide Failing?
A Billion Here, A Billion There and Suddenly You’re Talking Real Money
Everybody Take a Deep Breath — Countrywide isn’t Chrysler
CW The Way I see It
Here is What I Think About Countrywide

Countrywide is still open for business. Most people agree that if you are an “A” borrower, there are plenty of lenders at your service. If there are some challenges in getting a loan, you may want to have a back up plan in the form of an application with a second lender.

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I can’t believe it is August already. This is the last list of free Denver outdoor events for the summer. Soon it will be over and we’ll actually have to sit in a theater or at home to see a good movie. Concerts will be in event centers or on television. There is nothing like sitting outside with neighbors and friends while being able to see a great movie or dance to some of the amazing bands that are appearing in our area. If you haven’t made it yet, now is the time.

Grab your lawn chair, fill the cooler and head to any one of the many free events occurring in parks and shopping centers across the Denver metropolitan area. Feel free to add any events I may have missed to your comments. Don’t forget the date, time and location. 

Remember to bring a blanket in case it gets cool, and don’t forget your favorite lawn chair. I look forward to seeing you there. A special thanks to all the communities and shopping centers that gave us such a wonderful time this year.

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Swimming in Denver is for the dogs at the, “Berkeley Bark Day and the Dog-a-Pool-ooza”. It’s a doggie swim day. Be there early. Only 50 dogs at a time are allowed at the pool and it is first come first served.

Location:  Berkeley Park Pool, 46th and Tennyson

When:  Sunday August 19th from 10am-12pm and 12:30pm-2:30pm

Cost:  $5.00 per dog

Sponsored by:  Denver Parks and Recreation an Denver Animal Care and Control

There will also be a vaccination and License clinic at a cost of $20 and lots of games, prizes and even doggie ice cream! Kudo’s to the sponsoring agencies for a unique and fun way to get the word out about pet licensing. I wonder if they have a way to get rid of that wet dog smell before Fido goes back in the car?

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Cherry Creek continues on its path of amazing development. Cranes dot the skyline and everyone is still waiting to see the final additions to the community. A number of homes sold during the month of July but there are still quite a few to select from if you want to live in this beautiful and vibrant neighborhood.

Here is a quick summary of July 2007 sales in the Cherry Creek Neighborhood. The east and west boundaries are Colorado Boulevard and University Boulevard and the north and south streets are approximately E. 6th Avenue and Cherry Creek Drive North. It isn’t unusual to see a large custom home next to a 1950’s ranch, although new construction is winning out. Cherry Creek is a highly desirable place to live if you want to be within walking and biking distance of some of the best restaurants, shopping and urban trails in Denver. 

Google Maps

If you missed out on purchasing one of these houses, there are 144 other homes currently on the market in the Cherry Creek neighborhood ranging in price from $180,000 to $3,495,000. If you’d like to get your house on the sold list so you can move on, or to purchase one of the available homes, I’d be happy to help. Give me a call.

Related Articles:

Treat Yourself to Cherry Creek North

The astericked (*) properties were listed and/or sold by other companies. Based on information from Metrolist, Inc. for the period of July 1, 2007 to July 31, 2007. Note: This representation is based in whole or in part in content supplied by Metrolist, Inc. does not guarantee nor is in any way responsible for its accuracy. Content maintained by Metrolist, Inc. may not reflect all real estate activity in the market.

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Would you like to be advised when a house in your neighborhood goes on the market? Or, are you looking for just the right home? Check out the tools on the right side of this screen.

Complete a home search by clicking on “Search the MLS for Free”. For daily e-mails on what is new on the market or what listings have been refreshed, select “Free Daily Email MLS Listings”.

On the next screen you can narrow the parameters of your search.

 My promise: You won’t get a phone call or email from me until you ask for my help. This is a free service with no strings attached.

I like keeping on top of the market. Now, you can too.

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Looking for some unusual and educational places to visit with your kids before summer is over? Here is a list of suggested places that may encourage your children well into the future.

1. With so much in the news about renewable energies, we are lucky to have the National Renewable Energy Laboratory in our backyard in Golden. They have a visitor’s center that has interactive exhibits on energy sources and what the lab is doing to develop and encourage the use of alternative fuels. Click here for information on location and hours. Will one of your children be the scientist to discover an ecologically friendly and effective source of energy in the next fifty years?

2. Have you wondered about global warming at its impact on our weather? For some answers, visit the National Center for Atmospheric Research in Boulder. During the development and aftermath of Hurricane Katrina, many of the interviews were with scientists in Boulder. If you and your kids have ever wondered why the sky is blue, you may want to visit the Blue Sky exhibit. This is a wonderful place for that budding meteorologist and anyone who is interested in weather and climate. Click here for more information on location and hours.

3. The Lowry area offers the Wings Over the Rockies Air and Space Museum. If you love planes, this is a museum where you will get your fill. The huge B-1 bomber greets you as you drive up. The community saved the plane years ago when a vandal attempted to deface it. You and your family will also see historic planes and best of all for Star Wars fans, Luke Skywalker’s X-wing fighter. Click here for the location and visitor hours.

4. For a combination of indoor and outdoor activities, visit the Lookout Mountain Nature Center and its one and one half miles of kid friendly hiking trails. The Center has interactive exhibits on native Colorado wildlife. If your child loves the outdoors and animals, this center may spark a future naturalist. Click here for location and visitor hours.

5. Most children love things with wheels. If so, they will love the Forney Transportation Museum. The museums includes trains, bicycles, cars, motorcycles and any other form of transportation you can think of on wheels. Amelia Earhart’s Kissel and a Rolls Royce Phantom I are just a couple of the cars that highlight this museum. Click here for location and visitor hours.

 

I’m sure I’ve missed a number of unusual places, but this should give you and your family some ideas on how to finish out the summer. For more wonderful information, Fodor’s has a book called Around Denver with Kids, 68 Great Things to Do Together.

Have a great time!

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With the tightening of the mortgage lending market, lenders are going to require a down payment. While there may be 100% financing available in some limited cases, buyers will pay for it in the form of higher interest rates and less house for the money. Many of the foreclosures we are seeing today are as a result of 100% financing and the increase in payments due to Adjustable Rate Mortgages. Sometimes the discipline it takes in saving a good down payment translates into good money management skills that can keep us out of trouble when the market hits a tough stretch.

How do you save money for a good down payment on your first home?

1.  Decide how much home you can afford. Contact your preferred lender and have them work the numbers. Why do you want this information when you are not ready to buy? To determine what kind of monthly mortgage payment, down payment and closing costs you can expect. Once you know this, set the goal. How much money do you need and how soon would you like to buy your house? As an example, in order to buy my home I need $10,000 and I’d like to buy that home within two years, I’ll need to set aside $417 a month. Any interest earned will be a bonus and get me there at a quicker pace.

2. Write down your goal and keep it in a very visible place. If we don’t set goals, we’ll never get there.

3.  Keep a spending log for at least a few weeks. Note everywhere your money goes from coffee to chewing gum. You can change this to a savings log once you begin growing your down payment.

4.  Categorize the spending into two areas. What was required spending like rent, groceries, insurance and car payments? Can I reduce my rent, shop at one of the discount warehouse grocery stores, sell my new car and get something more reliable and a little less expensive? Can I ride the bus, subway or light rail into work and save money on gas and parking costs? What was optional spending? The optional category, or what David Bach refers to as your ‘Latte Factor’ in his book, the Automatic Millionaire Homeowner,  is one area where it may be easier to make cuts. When I buy a cup of coffee in the morning and add a breakfast burrito, it costs me $5.00 a day. If I could save that $25.00 a week by eating breakfast at home, it would be a good start towards my savings plan.

5. Create a budget. How much do you bring home on your paycheck and what payments do you need to make each month? Don’t forget to budget in utilities, groceries, gas and insurance? How much is left over and what can you commit to saving for your new home. If there is extra that you can budget into savings, pay yourself first. There are lots of budgeting tools online. MS Money is a good place to start.

6.  Start a “Home Savings Account”. It’s easy to spend money when it is mixed into accounts used for other purposes. The bank or your investment professional can help. There may be bond funds that pay more interest than a traditional savings account and make it a bit more difficult, but not impossible, to withdraw. Set it up so that what you have decided you can save out of each paycheck comes out before you get it. Pay yourself first. If you don’t see it, you won’t be as tempted to spend it on optional things.

7.  Make your future house payment. If my payment will be $1,700 a month and my current rent is $1,200, I can invest the difference in my “Home Savings Account”. This will also give me an idea whether or not I can afford that level of house payment.

8.  Every time you get a raise, add 50% or at least some percentage of your after tax raise into the “Home Savings Account” every payday. After all, we’ve adjusted to living on what we used to make and this money will be put toward a great cause that will pay off more than spending it on optional items.

9.  Remember to budget in some fun. While we can save every extra dime, we’ll be hard pressed to stay within our budget if we never have a little extra to go out with friends or buy a new outfit.

10.  Call me when you are ready to begin the home search. All of your hard work now will result in finding a great home you can call your own.

It may take time to build a good down payment, but it will pay off in the long run with lower payments and mortgage loan interest rates. Is it worth the sacrificing your daily cup of coffee? Only you can decide.

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It’s amazing how quickly this year is passing. August is here and fall is right around the corner. The leaves will begin turning in the next month or two. The lucky people who bought one of the houses in the Bonnie Brae and Belcaro neighborhoods will have a great view of our fall colors right in their own backyard. Several of the sales are the smaller homes. Will these be the next to be renovated into new masterpieces?

Here is a quick summary of July 2007 sales in the Bonnie Brae and Belcaro neighborhoods. The east and west boundaries are Colorado Boulevard and University Boulevard and the north and south streets are E. Exposition Avenue and E. Mississippi Avenue. It is a wonderful neighborhood with a eclectic selection of homes. From historical homes to custom contemporary construction, the neighborhood offers something for everyone. The neighborhood is within walking distance of restaurants, shopping, parks and transportation routes.

Google Maps

If you missed out on purchasing one of these houses, there are 38 other homes currently on the market in the Denver Bonnie Brae/Belcaro neighborhoods ranging in price from $315,000 to $4,285,000. If you’d like to get your house on the sold list so you can move on to your next adventure, or to purchase one of the available homes, I’d be happy to help.

Related Articles:

June Market Activity- Bonnie Brae and Belcaro
May Market Activity- Bonnie Brae and Belcaro

The astericked (*) properties were listed and/or sold by other companies. Based on information from Metrolist, Inc. for the period of July 1, 2007 to July 31, 2007. Note: This representation is based in whole or in part in content supplied by Metrolist, Inc. does not guarantee nor is in any way responsible for its accuracy. Content maintained by Metrolist, Inc. may not reflect all real estate activity in the market.

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The latest round of CSAP scores were released last week. In some cases, our schools are not meeting the needs of our children. While this video is 8 minutes long, it is well worth taking the time to view.  The staff of a Colorado school were the first ones to see it.

DID YOU KNOW? 2.0

Just a little food for thought.

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