There are no areas during the first quarter of 2008 that we would consider to be Seller’s Markets. We’ve moved into a neutral market in most residential areas, but this will change as the year moves on. Buyers will be aggressively negotiating in those areas that have increased supply on the market.

I have seen a marked increase in showings on my listings just in the last few weeks, so the spring and summer buyers are out and looking. This will change our report for next quarter possibly into more of a seller’s market in a few areas.

Considering Absorption Rate is one way to measure the health of our real estate market. Absorption Rate designates the number of months of housing supply on hand. The larger the supply, the more competition there is for sellers and the higher likelihood that prices will drop or concessions will be offered. The market has definitely slowed in the last quarter.

More Months of Supply = Buyer’s Market = Possible Reduced Pricing and/or Concessions

Fewer Months of Supply = Seller’s Market = Possible Price Increases and/or Bidding Wars

The commonly accepted separation between markets is:

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With 24,489 houses on the market in the Denver area as of the end of January and only 2,987 closings, is the successful sale of your house a roll of the dice? The answer is a resounding “No”. While there are certainly no guarantees, you can turn the odds in your favor by completing the followings steps.

1. Declutter– We’ve heard it dozens of times on the home shows and you will hear it from your Realtor and Stager. The less clutter, the larger a home feels and the less people will be distracted by your “stuff”. We want them to picture themselves in your fabulous home. Pull out the boxes and pack anything you won’t need for a couple months, including those precious family photos, to create open space on walls, counters and shelves.

2. Clean– Before your house goes on the market, do the spring cleaning. It’s time to wipe the baseboards, wash the windows and have the carpets professionally cleaned. If a buyer comes in and sees dirty light switches, it turns them off. Professional cleaning services are available for a one time deep clean. If you don’t have the time, hire a professional. It may cost you now, but you’ll reap the benefits of a sold house later.

3. Paint– It’s just like buying a new car and getting the first ding, when you paint, it is inevitable that you’ll bump the wall with furniture or the dog will rub up against it. If your walls have a few scrapes, get out the brush and repaint it. Once again, it will take time, but paint is relatively inexpensive. It contributes to the clean feeling that a buyer will experience when they walk in. If you have any odd colors, repaint the walls neutral. To get some idea of what buyers are looking for, you can take a tour of new model homes or check with your Realtor.

4. Replace Burnt Out Bulbs– Buyers love light and you can create an open and light filled space by replacing burnt out bulbs and turning on the fixtures in each room.

5. Price it Right– This is the biggest contributer to whether or not your house will sell. Forget what your neighbors house sold for last year because it is a new market and your home may have experienced a drop in value. Your Realtor will run a comparative market analysis. It is critical that you price it at, or even just a little below, where other similar homes have sold.

6. Get it Done Before the Showings Start– Once people have made the decision to sell, they usually want the house on the market right away. But, we want to make sure every buyer sees the home in its best condition. If you need two weeks to get everything done, wait before opening it to buyers. We can put up a coming soon sign until you are ready. This also gives your Realtor time to get the photographer through and provide professional brochures that will highlight the features of your house.

7. Every Showing Counts– Having your house on the market is inconvenient and frustrating at times. But when the office calls to schedule a showing, say “Yes” whenever possible. Buyers have a variety of schedules and it’s important that we accommodate them. In my experience, the majority of buyers will never return after a showing time has been turned down.

8. Hire a Professional– Marketing your house is critical in this market. Since most buyers are finding their houses on-line, make sure your Realtor has a strong internet presence. The more people who see the photos of your house, the better chance it will sell, especially if you have completed all the above steps.

Whenever I take a listing, the first person I call is my preferred stager. She visits the house at no cost to the seller and makes recommendations on how best to stage the home. Sellers then paint, add table settings and get rid of the clutter. While each house may not look like a show home, just a few simple changes can make a big difference.

Take these steps and increase your odds that you will be successful in putting your home in the SOLD column.

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Paul Martin from Security Title Guarantee has once again provided great information for us on Reverse Mortgages. His first article, Take a Stand for Reverse Mortgages, appeared last month.

Here is the second article in his series of three. Thank you Paul!

Hope you didn’t get tired of standing during the last blog, but I wanted you to experience and personalize the value that a reverse mortgage can provide to a senior.

Today, we take a quick look at the “Nevers” of a reverse mortgage. They are:

Never Make a Payment

Borrowers can make payments if they choose, but that defeats the purpose of a reverse mortgage to tap in their home equity without having to make monthly payments. Any payment made increases the line of credit available. We will take a look at the line of credit increase and how a senior could use this to their advantage in the next blog.

Never Give up Title

“Doesn’t the bank get the house?” is a common misconception to almost everyone who considers a reverse mortgage as an option for tapping into home equity. There is the assumption that seniors sign over the Title to the lender when they close. When seniors do use a reverse mortgage to draw out equity, a lien is placed in the form of a Deed that is recorded at the county in which they live just like any other mortgage. BUT the homeowner is still the homeowner!! There is NOT a transfer of ownership since a senior still remains the Title holder.

Never owe more than the Home is Worth or Pass Debt on to the Children

I heard it just the other day. An adult child was very concerned that they would be held responsible for debt beyond the value of the home at the eventual time that their parent was no longer living in the home. Her fears were calmed when she could see in the Deed that there are NO deficiency judgements. The collateral for the loan is the home, therefore no personal liability. Even if there is a shortfall from the price the property is sold verses the balance of the loan, the debt cannot be passed on to the borrower or the estate. Most reverse mortgages are Federal Housing Administration (FHA) Home Equity Conversion Mortgages (HECM) loans. Borrowers pay an up front mortgage insurance premium and a percentage built into the interest rate to FHA for the insurance. It protects them, their heirs and the lender.

Next time…The value of the line of credit and other options for taking loan proceeds.

Paul Martin
Business Development Manager
Security Title Reverse Mortgage Division
303–889–8104
pmartin@stgco.com

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President Bush signed the Economic Stimulus package on Wednesday and the impact for Colorado is yet to be determined. At this time it looks like Boulder may be the only area with a median home price high enough to gain an increase from the current $417,000 limit.

1. Loan limits will go up in metropolitan areas with high housing prices. Most experts are estimating that will occur in only 20 of 160 metropolitan areas.

2. The higher loan limits expire at end of the year. With HUD having 30 days to establish where the increase in loan limits will occur, it will be the middle of March before this is set. That will give borrowers about nine months if Fannie Mae and Freddie Mac have a process in place to purchase those loans.

3. The increase in the FHA loan limits may or may not reach our area.

It’s yet to be seen whether or not more borrowers in Colorado will see more of a benefit than the rebate checks. I’ll keep you posted.

For further thoughts and comments from bloggers, visit:

Business Week

Bloodhound Blog

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Fourth quarter real estate statistics show that Highlands Ranch and Lone Tree are continuing to average a lower absorption rate in comparison to other featured areas, which can translate into quicker home sales. North Jefferson County’s absorption rate is also lower in this current quarter. During the third quarter we had three areas identified as a Buyers Market. This quarter, we are up to eight areas. Buyers tend to shy away from purchasing a home during the holidays and that may explain the increase.

Considering Absorption Rate is one way to measure the health of our real estate market. Absorption Rate designates the number of months of housing supply on hand. The larger the supply, the more competition there is for sellers and the higher likelihood that prices will drop or concessions will be offered. The market has definitely slowed in a the last quarter.

More Months of Supply = Buyer’s Market = Possible Reduced Pricing and/or Concessions

Fewer Months of Supply = Seller’s Market = Possible Price Increases and/or Bidding Wars

The commonly accepted separation between markets is:

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“You know, your Dad and I almost bought that land years ago. Just imagine what it is worth today.” My mom said that every time drove by land along Parker Road just of I-225. That was more than a few years ago when my sisters and I were growing up. Is this year’s housing market one where we may look back and wish we woulda made that decision to buy? 

When I listen to the Sunday financial shows one person will tell us that we’ve hit bottom and the time is ripe to buy. The next “expert” will tell us that the housing market still has a long way to drop. There are more mortgages that are going to be adjusting this year and some families will be hit hard. However, the new federal tax rebates are coming this summer and a quick three quarter point drop by the feds this week may begin the turn around. So, what should we do?

That depends. (Don’t you hate that kind of answer? It happens to be the right one in every housing market.)

What are your circumstances?

If you have a house you need to sell before you can buy another, it may be time to hold if there isn’t enough equity in the property to actually walk away from the closing table with enough to buy a new one.

If you are looking to buy a home and plan on staying in it for a minimum of three to five years, it’s probably a great time to buy.

I suggest meeting with your family members, real estate professional and financial advisor to talk about whether or not the time is perfect to begin looking for a house you can make your home.

Don’t let the woulda, shoulda, couldas catch you if now is the perfect time for you to buy.

Give me a call and let’s chat.

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Over the last few months I’ve received a number of questions about reverse mortgages. Since the interest is high, I thought I’d go to one of my experts. Paul Martin is a Business Development Manager with the Security Title Reverse Mortgage Division. Paul has agreed to be a guest blogger regarding this critical topic. The decision to seek a Reverse Mortgage is a serious matter. Please make sure you only work with credible professionals. If you have questions about this post or about Reverse Mortgages, Paul can be contacted at 303–889–8104. I can also assist if you are looking for a mortgage loan professional to help you or your family member.

It’s all yours Paul.

I’m blogging today to create a basic understanding of Reverse Mortgages. We will go into more information in detail in future articles, but for now, let’s talk about what they are and the value they may bring to select homeowners.

Who here has a friend, family member, neighbor, someone in your life that you really care about who is 62 or older? If so, please stand. Yes, stand. If you have to close the door so no one thinks you are nuts, go ahead and do so.

Good…now I am going to ask you a series of simple “Yes or No” questions. If you answer “No” to any of these questions, please take your seat. However, if you answer “Yes”, please remain standing. OK? Let’s begin.

1. Does the person who came to mind own their own home? By ownership, I mean are they on the title even if they have a mortgage. If “No” take your seat.

2. Does the person you are thinking of live in that home as their primary residence? If “No” take a seat. The person you are thinking about right now may qualify for a Reverse Mortgage at this very moment. Yes, qualifying can be that easy. But what makes a reverse mortgage such a life giving / freedom giving opportunity for a senior homeowner? Let me ask a couple more yes or no questions following the same stand up or sit down format.

3. Do you feel the person would  appreciate a loan the doesn’t require them to verify income? No W-2s or pay stubs to submit. No debt to income ratios to worry about. If “No”, please be seated.

4. Do you feel the person would also appreciate a loan that didn’t require them to be working? No employment verification what so ever? If “No”, please be seated.

5. Do you feel that  person would also appreciate a loan where their credit score, good or bad, doesn’t matter? Late payments don’t count against them. They could have judgements, be in foreclosure or even bankruptcy. If “No”, please be seated.

6. Do you feel that the person would also appreciate having a loan where no monthly payments would ever be required as long as they live in their home? They can make payments if the want, but aren’t required to. And, the money drawn out on the loan doesn’t affect their Social Security or Medicare benefits. If “No”, please take your seat.

7. Do you feel that the person would also appreciate using the proceeds from such a loan for anything they want – medical expenses, home improvements, paying off an existing mortgage, helping their kids get out of an adjustable rate mortgage when payments are increasing, travel, long term care insurance, life insurance, a new car, even a face lift? If “No”, please take a seat. And, the final question.

8. Do you feel the person would appreciate such a loan in which they would not have to give up title of their home? If “No”, please be seated.

You’ve just experienced the value that a Reverse Mortgage can provide to a senior. Because you experienced it, you’ll likely remember it much longer than reading about the details in future blogs. Maybe, the person you thought of is someone who needs to take a closer look at the benefits of a reverse mortgage to see if it is right for them. The next reverse mortgage blog will look at the “Nevers” of a reverse mortgage. Oh, almost forgot, please take a seat!

Paul Martin
Business Development Manager
Security Title Reverse Mortgage Division
303–889–8104
pmartin@stgco.com

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Every Christmas I admire the most creative and beautifully decorated trees imaginable. I see them at stores, on do it yourself television shows and in other people’s homes. However, I wouldn’t trade my tree for any of them. Why? Because every one of our well-loved ornaments has a story.

We pull out the ornament box and unwrap each piece from toilet paper to discover what lies within. From the “Baby’s First Christmas 1980” ornament to the hand crafted ornaments made over the years by my son, sisters and friends. Some of the ornaments hung on the trees we had when I grew up. My son and I sat and laughed as we talked about memories that were inspired by each of those treasures that only come out once a year.

There were those years when we couldn’t afford to give anything other than handmade gifts and ornaments fit the bill. We went through the bread dough ornament phases where we hand molded each piece to the reindeer clothes pins that included moving eyes and puffy tails. I’ve taken tole painting classes, cut wooden ornaments and hand painted each one. There are those that are crafted with needlepoint and works of art done by my sisters who both are very artistic. Many of them were created as moms, dads, nieces, nephews, sisters, sons, daughters and friends sat around the kitchen table and played. Several of the ornaments aren’t even recognizable to anyone but my son and I. A very young boy molded those and painted wild designs. It brings a smile to my face today.

A windmill from Amsterdam to teddy bears from Yellowstone, tell stories of our travels.

We have a variety from quirky ornaments to some pieces that take my breath away. Many families pass on heirlooms in the form of furniture and jewelry. Our family heirlooms will include small pieces that hang on a tree with stories to remind of of life’s difficulties and triumphs. As I look at them, I realize how quickly time flies and how blessed we are to have each other and those crazy and lovely memories to see us through.

Those wonderful designers that create beautiful Christmas delights just can’t compete. All my ornaments have a story and each one of them is priceless.

Merry Christmas!

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I’ve been blogging now for a little less than a year. When I try to explain blogging to my clients, family members and friends, their eyes usually glaze over. I have to admit that mine probably did as well just a couple of years ago. So, what in the world is blogging?

Commoncraft has come up with a fabulous video that puts the concept of blogging into plain English. Their video productions are a definite must see. Check it out.

Special thanks to Jim Duncan who featured this video on his Real Central VA blog, one of my favorite reads.

Enjoy!

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The Lowry neighborhood is continuing to grow with lots of opportunities for new buyers interested in the area. Here is a look back on October 2007 home sales in the Lowry neighborhood.

The area is generally located between Yosemite Street (east) and Quebec Street (west), E. 11th Avenue (north) and Alameda Avenue (south). There is a small pocket that juts out to the west side.

The Lowry neighborhood was developed as a result of the Lowry Air Force Base closure. It is a wonderful community that has a variety of parks, the Lowry Town Center and neighborhood activities that are scheduled year round.

Lowry living opportunities range from historical homes that have been renovated to areas still waiting for the soil to be turned before construction begins. The Lowry neighborhoods are within walking distance of restaurants, shopping, parks and transportation routes.

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Third quarter real estate statistics show that Highlands Ranch and Lone Tree are averaging a lower absorption rate in comparison to other featured areas, which can translate into quicker home sales.

Considering Absorption Rate is one way to measure the health of our real estate market. Absorption Rate designates the number of months of housing supply on hand. The larger the supply, the more competition there is for sellers and the higher likelihood that prices will drop or concessions will be offered. Second quarter statistics showed seven areas that were considered sellers’ markets. The quarter, we only have three. The market has definitely slowed.

More Months of Supply = Buyer’s Market = Possible Reduced Pricing and/or Concessions

Fewer Months of Supply = Seller’s Market = Possible Price Increases and/or Bidding Wars

The commonly accepted separation between markets is:

Based on information from Metrolist, Inc. for the period of July 1, 2007 to September 30, 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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One of the Fox news shows last weekend on the real estate market put things into perspective. Over 97% of homeowners are paying their mortgages on time. That leaves less than 3% of homeowners struggling and facing a possible foreclosure. It is definitely a tragedy for those families. While it it difficult to look over the horizon when things are in crisis, there are still places for them to live and opportunities in the future for them to buy. It may be more difficult, but it can still be done. In other words, there is hope.

These difficulties and the current real estate market slowdown create opportunities for people wanting to buy in the Denver market and especially for investors. Prices are down and incentives are up.

Forbes just published their list of the ten “Best Renters’ Markets”. It’s not a surprise to find Denver high on the list. Families having to leave their homes have to move somewhere.

Forbes’ list identifies the following cities as having the best renters’ markets:

1. Atlanta
2. Denver
3. Phoenix
4. Las Vegas
5. Tampa, Fla.
6. Houston
7. Cincinnati
8. Indianapolis
9. Sacramento, Calif.
10. Dallas

There are two things that investors should take note of, one that Denver’s vacancy rate has declined by 11% during the last year, and two, while rental prices have grown at lower rates than the other cities listed, at some point supply and demand will require increasing rental rates.

What is crisis for some homeowners