After more than a trillion dollars of bailouts, an improvement in mortgage rates, a drop in home values and new home-buyer tax breaks, the buyers have finally come off the sidelines. If you have been waiting for the right time to put your house on the market, this may be it.

I’ve had several Realtors tell me that up to 40% of their clients are new home-buyers and we have seen an increase in all buyers who ready to sign a contract. One of my listings was under contract to a new homebuyer within a week of hitting the market earlier this year. So, if you are eager to get your house sold and have just been waiting, let’s get ‘er done.

Before the sign goes up, get your house in sale condition. Free from Broke, a financial blog, has several solid steps outlined in the post, Frugal Ideas to Help Your Home Sell. Here are a few of mine.

• It is always a great idea to repaint. Even quality paint is fairly inexpensive and spring sales should help lower the cost even further. Keep it neutral.
• You may have lived with leaky faucets or old light fixtures but a new buyer won’t be impressed. Replace them with nice, but inexpensive fixtures you can buy at your local home improvement store.
• Clean, clean, clean. Remove the clutter and clean your house from top to bottom. There are lots of cleaning services around that can provide a one time massive spring cleaning. Even a little dust can send a negative message to a buyer. Don’t forget the carpet and windows.
• Check out the competition.Let’s go out and look at other houses on the market in your neighborhood. That will help us establish a competitive price and show you what buyers will be seeing.

If you were unable to sell your home last year, but still want to move, make sure your house is in good condition and let’s get together and make a plan. Home prices have not increased yet, so if you are upside down and owe more than your home is worth, you may need to wait until later this year or early next. Otherwise, now may be your time.

Jennifer

The $700+ billion dollar financial bail out agreement was announced this morning. It sounds like our elected officials have finally come to agreement on a bill that will purchase what they are calling “toxic” loans. This includes many sub prime loans that probably should never have been made in the first place.

Who is to blame? If you listen to elected officials from both parties, it is the key executives of these companies who make millions or members of the other party. Now I’m not a market or economy expert, but it seems to me there is plenty of blame to go around.

Our own elected officials from both parties created regulations over the years during both Democratic and Republican administrations that penalized lending companies that were more conservative in their lending practices and rewarded those that gave loans to just about anyone. I haven’t heard any of them take responsibility for their votes and positions that helped create this mess.

A system in the market that allowed these “toxic” loans to be passed on to other companies and ultimately investors of all income levels. There was no accountability because the bad debt could be passed on to others without companies feeling the pain of their bad decision making. These companies included those whose executives were making millions. Both current presidential candidates appear to have some of these people advising the campaigns.

There are many borrowers who have had significant  difficulties including medical emergencies, job layoffs and other major unforeseen circumstances that have not allowed them to make payments. However, other borrowers clearly took out loans that they could not afford. Should they take responsibility for making bad decisions?

There is a time and place for Adjustable Rate Mortgages, but when we use them specifically to qualify people at low interest rates knowing that the payments are going to increase at a drastic level, that is irresponsible and not living up to an expected level of fiscal responsibility. Yes, there are unethical mortgage lenders. The vast majority, however, are honest and work to the benefit of their clients.

This situation makes me sick. I am tired of the finger pointing that is going on when there are plenty of people pointing their fingers at others while they should be admitting they played a key role in this disaster. Where are the leaders willing to stand up and take responsibility? Can we fix this problem when no one is willing to take responsibility? Who is looking at changing regulations that helped create this problem? Who is willing to take responsibility for borrowing more than they could pay?

A bail out is probably needed and should move forward, but if no one will admit their contribution to the mess, are they willing to fix the laws and the system that brought us to this place? I hope so, or this is bound to happen again. Where are the leaders? Anyone?

Just my opinion.

As we here in Denver are preparing for the Democratic National Convention, I got to thinking about poor Senator Barack Obama. This man is running for President of the United States. Why would I be feeling bad for him?

1. He has to live in Washington D. C. I know Washington D. C. is a beautiful city, as a matter of fact, I’ve visited a couple of times and would love to go back. But, it is not Denver. (Here is where the disclosure comes in. I’m a Colorado native so I may be a bit biased.)

2. If Mr. Obama ends up living in the White House, he has an amazing lawn and will host large picnics, but it still isn’t Washington Park. Denver has a number of premier parks, but Washington Park has always been one of my favorites with it’s diverse and fun-loving crowd of people. Up for a volleyball game? I’m not sure they host volleyball games on the White House Lawn. Just let us know Mr. Obama if you’d like us to hold you a spot in one of our games.

3. While we’ve been having a warmer summer than usual this year, our weather has still been fantastic. We have more than 300 days of sunshine that melt away the snow usually within 24 hours. I’m sure with the White House driveway, someone has to be ready with the shovel when the first snowflake hits. Here, we check the next day’s weather to decide whether to shovel or not. It gives us more time for skiing instead of shoveling. How many ski slopes are within driving distance of Washington D. C.? I’m betting we have lots more.

4. No 14ers. Colorado has 54 peaks that are more than 14,000 feet in elevation. Talk about places to clear your head. These are good spots to contemplate the energy crisis, health care, social security and other key issues impacting our country. I wonder if the key leaders of our country would benefit from having to debate issues while in hiking boots at the top of mountains? Since there isn’t quite as much oxygen, it might require using fewer and more focused words to get your point across. Regardless, I know there aren’t 14ers in the Washington D. C. area. Let us know if we can schedule a trip for you while you are in town, Senator Obama. It will change your perspective.

5. You can never be alone. It is too bad in this day and age that our highest leaders require constant security. Here in Colorado, we value our solitude. There is nothing like sitting on a rock in the middle of one of our Colorado streams just enjoying the scenery. The rush of water, the mountain wildflowers and the amazing wildlife keep us balanced when life gets crazy. We have some fabulous wildflower drives if your black vehicles are 4WD.  I will  insist, though, that you open the windows so you can enjoy the view during the drive. I’ll even bring the picnic and a wonderful bottle of Colorado wine.

I’m sorry Senator Obama that you can’t just pick up and move to Colorado. We’d love to have you visit more of our beautiful state beyond just the Pepsi Center and Invesco Field at Mile High. They are definitely both wonderful Colorado venues, but you’ll still be missing the bigger Colorado picture. Give me a call after things get settled in November. I’m sure we could arrange at least a taste of what Colorado has to offer and if you are looking for a “western” White House, I’m your gal. By the way, Senator McCain, ditto!

Don’t forget to vote.

Instead of swimming the murky real estate waters, some homeowners are choosing to renovate their current homes. If you are looking to do a major renovation, one of HGTV’s newest series, “My Amazing Renovation” is looking for you.

The series is produced by our local High Noon Entertainment and they are looking for homeowners who are transforming their current home into their dream home.

Your home may be considered if you are:

Just starting a major renovation (preferably already in demo)
Doubling the size of your home
Transforming the original space including the kitchen
Have unique design projects planned as part of the renovation
Are eager to share the experience with others
Updating the outside of your home

Homeowners who want to be considered should contact Cindy Baggish at 303–712–3093 or cbaggish@highnoonentertainment.com.

I can’t wait to see your masterpiece.

The Denver area real estate market is showing improvement during the second quarter of 2008. In the first quarter there were no areas that we would consider Seller’s Markets. That has drastically changed over the spring. Ten areas for Single Family Homes are now seller’s markets and five areas in the Condominium/Townhome market. Things should continue to be active as we move into the third quarter. These figures are based on the absorption rates.

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 improved 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:

Based on information from Metrolist, Inc. for the period of April 1, 2008 to June 30, 2008. 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.

 

I received an email last week from the High Point community advertising an opportunity to stop by and see the model homes.  These advertisements are not unusual. But I have to admit, this one grabbed my attention. Why? Because it invited not only me, but other important members of my family, my dogs.

High Point at Grove Park is located at 64th Avenue and Tower Road. On Saturday, July 26th, from 9 am– 3 pm, they are hosting “Dog Days”. Trainers will be providing free training for puppies and mature dogs along with a Doggie Water Park. I have to admit the water park sounds like the ticket, especially on a hot summer day.

The planning for High Point includes a three acre dog park along with trails, a recreation center and town center. I haven’t seen these models yet, but I’m looking forward to it. This is a fabulous idea.

Splish! Splash! I hope they have towels.

If you are looking for a weekend of good food, wonderful crafts and great bands, plan to attend June’s Capitol Hill People’s Fair.

Saturday June 7th from 10am-8pm
Sunday June 8th from 10am-7pm
Civic Center Park
Downtown Denver

The Fair began as a community get together in 1971 and has continued to grow into a diverse and wonderful weekend event to launch the summer season. Attendance is free, but you will be enticed to have a beer and taste the variety of food choices so bring some cash along. This is a family event for adults and kids alike. As a matter of fact, some of the best dressed attendees can be found rolling around in the many strollers.

Here is a short list of just a few of the amazing bands that will be available to serenade us during this enjoyable weekend:

Wendy Woo
Funk Shui
Colorado Storm
Six Foot Joe and the Red Hot Rhinos

There will be something for everyone in this wonderful weekend event. It has been recognized by the Rocky Mountain News as one of the best Arts and Crafts Festivals in the state.

Some of my favorite artwork hanging in my home today was purchased from some of the fabulous artists that will be at the Fair. Hmmm, looks like I still have wall space to fill.

See you there!

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:

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.

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

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

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:

“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.

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

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!