www.DenverRelocation.com
Not just relocation! We help nice folks buy & sell homes in Highlands Ranch Colorado.
These are Pete's Blog Postings in 2007 at www.highlands-ranch-real-estate-blog.com
I maintain these pages as some folks have been known to pilfer blog postings.
Sadie as a puppy and as a 3 year old in the same bed. Thought you would enjoy!
Real Estate blogs can be BORING!!!!
How do you make them more exciting?
Statistics? Data? Pictures? Clients? Family? Hobbies?
Snapshot: Denver's real estate market is healthy. No huge drops, but plenty of deals.
Nervous sellers make it a great time to buy. Low interest rates are also helping.
Should you need a good lender for refinance try these folks:
http://www.denverrelocation.com/lenders.html
I went to another IRA buying real estate seminar yesterday (my 3rd).
I have 2 sources for this and now know how the mechanics of the program work.
Talk to me if you have self directed IRA or 401k funds you want to invest in the Denver Real Estate market.
See for more details:
http://www.denverrelocation.com/IRABUYINGHOUSES.asp
My daughter came from Scotland for 2 weeks over Christmas with husband, baby in the oven, Mother & Father in Law. We spoiled them. Still working leftovers. What a great trip.
If you ever need something fun for the family to do that does not require huge exertion but you still want winter sports try the Frasier Tubing Hill http://tinyurl.com/34re8b. You should see a 63 year old Scotsman hurtling down the hill the first time! "THAT STICKS OUT" he yells with a broad grin and hurries to the lift line to do it again.
The rules for Colorado foreclosure are changing the first of the year to a program much (in my honest opinion) less friendly to the home owner. If you are currently late on your payments and have not gotten a "Notice of Election and Demand" (NED) by January 1st the date date you will no longer be able to occupy your home will be shortened to 4 months versus the previous 6 plus months. These are new rules and you will need an attorney who is current on the rules to explain what they mean. What I can say is that previously when a home owner started to miss payments they could count on an NED being files within 3-4 months with a conventional loan and 3-6 months with a government loan.
Go to this link for a very good explanation by Ron Childs of Security Title http://www.stgco.com/STGCurrentNewsLetter/currentnews.pdf. On page 2 of this newsletter Ron has created a timeline. In essence, and as I understand it, when the sale at the courthouse occurs, the owner is the buyer of the defaulted note. There is NO period after the sale for the Owner to redeem the certificate of sale.
Anyone who is facing foreclosure in Colorado needs to be aware of these changes in their rights.
There will be allot of folks who will be surprised to find the eviction crew at their home with the sheriff the day after the sale.
12-3-07 Denver Mortgage Rates Fall!
Got this from a lender friend this morning... mortgage rates are continuing in a downward spiral. We are officially in the FIVES now! It would be a great time to lock in a loan if you have people sitting on the fence. I caution that "for no good reason" interest rates could jump up at any time. Keep in mind that while rates typically creep downwards, they have a tendency to move upwards VERY quickly. We have all seen it happen before...
If you look back in the archives of this Blog, you will see I predicted this and I fully expect interest rates to bottom close to 5% sometime around February 1st. What an amazing time to be able to buy a home. Last week I saw 5.875% rate on a conforming 30 year fixed rate loan.
I would be refinancing, or buying right now, before the supply is used up...that is what happens you know. Supply of long term money is great right now (lenders have not been making loans) so interest rates are low to entice you into the market. "We have all seen it happen before...".
Years of experience gives you an extra leg to stand on.
Denver Colorado fun POST 11-29-07
From the fun facts section in my Denver Colorado Relocation guide found at http://www.denverrelocation.com/, How many states does Colorado share a border with?
In other words, how many states abut Colorado? Answer is below...
That is just one of the little tidbits we offer in our Relocation Guide, for folks who may be newcomers and wanting to buy a home, or for folks who may be thinking about moving to and living in Denver. There are about 25 suburban cities that suround Denver Colorado. The real estate prices vary from area to area and so one will also find "Fast MLS SEARCHES" by cities to see what is available in which price range.
While I live and office in Highlands Ranch, we find we can work in any part of Colorado, however we best know the cities listed below. How can we help you best find that perfect home in Denver?
The answer to the above question is 7. Wyoming, Nebraska, Kansas, Oklahoma, New Mexico, Utah, & Arizona (four corners).
What did I learn at the above class?
A couple of things that could save you loads of money, or make you some money.
#1. Adjudicate your well, even the low deliverability domestic use well. Why? To establish prior appropriate use. That can add value to any water claim. It may be worth it but it takes quite a while.
#2. Make sure any well on the property that is not in use has been properly abandoned. That means having the tubing and rods pulled plus cementing the hole closed, both at the production interval and the surface. Should you buy a property with a well that was not properly abandoned, you may have to stand the expense of doing it your self. SO , check with the state engineers office for all wells on the property and the abandonment reports.
#3. Make sure any easements to the well across adjacent properties are included in the title policy and are not simply a license to cross the land for acess to the well and its equipment.
Part of the Colorado Real Estate license procedure requires continueing education credits. After 22 years of this work, plus 11 as a landman in the oil business, I certainly have enough experience in most residential issues. Water and the rights therein tend to be a little less studied. So here I sit in a CE class with the title above. 5 minutes in and I have already learned a tidbit. If you want to know more, let me know!
Last Friday evening we had a group of 14 people attend an evening seminar on IRA's as a source of cash for buying investment Real Estate. Much to my delight we disproved the concept that folks do not come to meetings on Friday night. The demographics are not such that "date night" applies. In any event the presentation got going at 6 and much to my delight folks started arriving right on time. IRA Administrator ENTrust was the major presenter and provided a great overview of the process.
In short, if your IRA administrator has told you "no" when you have asked if you IRA could own real Estate, automobile loans, or tax leins, it is only because they cannot sell them to you. Collectibles and Insurance are the only 2 specific prohibitions I can recall. Creating a truly "self directed IRA" with an administrator would allow you to invest that money where you direct, not where the company wants you to invest. EnTrust is such an administrator.
And of course, the possibility of having residential real estate income properties in that sort of portfolio is certainly available and can provide a source of cash for down payments and operations. The advisors will help you set up your fund to be focused on the investments where you want it to be directed. The Denver Real Estate market is one of those that is segmented and localized making it a great time to buy and help the sellers make their next move. As we specialize in the south Denver residential market, we do have strong referral networks in the north end of town. So make sure you talk to Pete Doty about your next real estate move.
There have been allot of posts on this seminar and I apologize but I am compelled to tell you about this awesome tool you might have available to buy rental real estate. This is the last chance to register for this informative seminar this Friday at 6:00 PM.
We have about 4 seats left so make sure to call Elaine at 303-880-5585 to reserve yours.You might have cash available you did not even think about that would allow you to take advantage of Buy LOW Sell HIGH. The Denver Real Estate Market is a perfect opportunity for this!
Go to the below link for more information and e-mail registration:
http://www.denverrelocation.com/IRABUYINGHOUSES.asp
Make hay while the sun shines!
HOW CAN I USE MY IRA MONEY TO BUY INVESTMENT REAL ESTATE? Foreclosures are at record levels, many mortgage loan companies are calling it quits, and many so-called experts are claiming the real estate market is investment poison. This is exactly why, with the help of a team of experts, you may be able to help yourself, right now, by investing in real estate with money you didn't know you had.
You may have heard the wise old adage "Buy low and sell high". Real estate, right now, fits this description. You may have always wanted to invest in real estate; you may have seen many opportunities pass you by because you thought you didn't have the money or the experience. You may have said to yourself, I'd love to invest in real estate, but I don't know where to start.
What does a successful real estate investor have? He or she has the money to buy, probably with the help of a loan, and the knowledge of what property to buy in what location. The first step, whether you have a target property or not, is assembling your team. With the help of a team, you have all the tools you need to invest in real estate.
Your team:
1) Pete Doty, Colorado Real Estate Broker, specializing in investment real estate, who can find you an excellent opportunity for growth.
2) Entrust New Direction, who can help you use your retirement account to invest in the best property you find.
3) First Bank, who can help you leverage your retirement account to buy more than you may have thought possible.
Learn how to find the investment property, how to invest your retirement funds, and how to leverage those retirement funds in one evening. Pete Doty and Company, Entrust New Direction and First Bank and will be hosting a seminar to show you how to buy investment properties with your retirement account. The free educational seminar will be Friday November 16 th from 6:00 to 7:30 PM, at the Pete Doty and Company office. The office is located at 9090 South Ridgeline Blvd., Ste 200, in Highlands Ranch. RSVP by calling 303-880-5585 or emailing pete@denverrelocation.com. SEATING IS LIMITED
Learn how you can find cash to Buy investment Real Estate using your IRA.
"But I do not have any cash for a down payment".
Maybe not in the bank, but your self directed IRA or 401k might. Register for our seminar Novemebr 16 at http://www.denverrelocation.com/IRABUYINGHOUSES.asp and find out how to use your available cash in a Cash Poor Real Estate Market.
11-9-07
2 notes, one e-mail
I love/hate to see these kinds of messages from folks I have worked with in the past. Both came from one person:
"(girlfriend) She did a refi a couple years ago and met up with a very dishonest Mortgage person who signed her up for an ARM with a hard pre-payment penalty (before I met her...)."
"I bought a property from a friend of a friend type deal and won't make the same mistake" in reference to a "sweet deal" he made away from our counsel, regarding value and terms.
When you put my 22 years of experience to work for you, we strive to make sure you can say "that was easy". Sometimes it appears to be so easy folks make mistakes thinking they can do it themselves. It is a shame, some folks get to pay the tuition to the school of hard knocks. We have already done that, and been there and that is the advice and direction you should expect from a Realtor. We can save you money and heartburn.
Want to learn about this source of funds to buy real estate? Join us November 16, 2007 at our offices for a fast 1.5 hour presentation on how to utilize IRA money to buy investment real estate. Make sure to RSVP as seating is limited. Call Elaine at 303-880-5585 for your space in this presentation by EnTrust.
Find out how Friday, November 16 at 6:00 PM at the Highlands Ranch office of Pete Doty & Company. Click here to reserve your seat:http://www.denverrelocation.com/IRABUYINGHOUSES.asp
Cash is king buying real estate. Allot of cash is held in self directed IRAs & 401ks and most folks do not know you can structure your IRA to use that cash to buy investment real estate for you.
Learn how by coming to this seminar presented by EnTrust and hosted by Highlands Ranch real estate agent, Pete Doty.
The time is right and now the nation knows it!
According to the Rocky Mountain News http://tinyurl.com/3xvf5j
Denver is the highest appreciating real estate market in the COUNTRY!
A large part of that has to be coming from Douglas County.
Lets add another bit… according to the National Association of Realtors Research based on 2006 data Denver is one of the top markets to invest in. Here is a slide from their May 2007 mid year meeting presentation:
But shameless plugs are OKAY aren't they?
I was asked the other day for a comparison of cost of living for Denver, Colorado to Tampa, Florida. I said hmmmmm? Don't I have that somewhere? And sure enough, right there on www.denverrelocation.com/relocating.html (you have to scroll down a little) was a link to a cost of living comparison tool, online. I guess when you have so many pages of content on this one site, it is OKAY to forget what you have.
10-19-07
Statistics can be boring! Take a look at this though!
Sometimes someone else does something special that needs to be seen by you, the public.
Land Title has created an interactive map showing all of the metro Denver market areas that links to the most recent statistics. This is really a wow and is where I have been generating part of my monthly newsletter information. Yet I have never seen one so well done nor as complete. Take a look at http://www.jimrenshaw.com/real_estate_statistics/real_estate_statistics.htm.
I was "wowed" with Jim Renshaw's Colorado Real Estate Statistics. Tell me what you think.
Also note that Highlands Ranch Real Estate prices are up as are Parker Colorado's from the same time a year ago! Browse around a little!
10-18-07
A Prediction About Interest Rates
In the not too distant future, 30-45 days, I can see the credit meltdown having some positive effects on those of us who will still be in business. The major effect I see is that home mortgage interest rates will decline. Some say this started yesterday. Why? Supply & demand. The companies that lend money have not been lending money. They scared all the regular folks out of the process with all the news stories. The mortgage companies have been focused on the current performance ratios of their loans and properties they might or might not get back, and frankly, cleaning up their own messes from the past.
However, what should be happening soon is that the mortgage companies will realize that their income and profitability has also been affected by not originating as many loans or giving new mortgages to buyers. That will cause us to see them attempting to draw people into the market by lowering mortgage interest rates. That is good news for the buying public and I expect even more as this is a normal and seasonal thing as well due to a large amount of money being dedicated to consumer (holiday) spending. This year I believe the money supply will lower rates and that will translate into great rates for all well qualified buyers and investors. So get cracking now and get a property under contract to close before Thanksgiving.
What does it take?
Loans are still plentiful for the buyer who has good credit (650 FICO or better) has a job or verifiable income, and has a down payment of 10-20% plus. A loan can even be gotten for those with little to no down, if credit and income can be verified.
Investors should be jumping on this!
But here is the real point: There is an opportunity here for a savvy investor to buy low and sell high later. There are some markets that have taken a 5% decrease in the last 6 months in metro Denver for no reason other than over supply. Add that 5% decrease to a very motivated seller pool and 20% down payment and you are in cash flow heaven! One more item, rents are going up in Denver!
So the next question is "At what Interest Rate for an Investor?" I asked four of my best lenders that very question and all of them said similar things today:
10% down payment 7.125% with 1% origination.
20% down payment 6.75% with 1% origination.
25% down payment 6.625% with 1% origination.
Once again cash is KING. Even if you have savings in an IRA there are ways to make it work for you in the real estate world. So make sure we talk before you invest in the stock market. Real estate is REAL property!
Denver is in a uniquely suited place in the national real estate market. Here is why:
Please remember, I started in real estate in 1985 (not the best time). By 1989 we were surrounded with foreclosures, short sales, the Savings and Loan Crisis and interest rates were in the ceiling somewhere. Then we slowly started to claw out of the basement.
By 1995 I was wishing I had bought some rental properties while the prices were low and I could have made a great deal. I just did not have the cash and was scared of the market and had never seen anything like it before. I still see homes that were on the market then for about 39k and now sell for well over 250k. Oh Well!
So you have already guessed the proposition here:
We have had 3 years of doom & gloom about foreclosures in Denver.
We have a branch of the credit industry going through an ordeal nationally.
We have short sales and foreclosures still in abundance in our market place.
We have builders with standing inventory of new homes.
HOWEVER, interest rates for non owner occupied homes are in the 7% range, not the 17% range. And what you need is cash, 10-20% to assure you cash flow before taxes.
OH, yeah, there is that too, the tax benefit of owning a rental home has not changed substantially, except the capital gains tax has dropped so much.
The philosophical speed bump seems to be “what if the market keeps going down?” That is one I cannot answer, but the glory goes to the winner, not those who thought about running. And where will that bottom be? I will only know, as will you, after prices start going up again.
Where to buy? My personal preference is to buy in the strongest market you can afford as I believe it is least likely to endure future shocks. One of the reasons for the crisis of foreclosures is the prior confidence folks had in neighborhoods and areas, yet to have proven themselves. In short the values there were artificially inflated due to “hinckey” financing.
So I would be buying in the south metro area of Denver. Almost any of the suburbs but in particular, Highlands Ranch, Littleton, Centennial, Englewood, & Lone Tree, Colorado. And I would be buying 3 bedroom, 2 bath, 2 car garage homes that have little or no fix up and deferred maintenance costs, and that can be rented quickly (did I mention rental rates are going up). Typically, you want these to be newer homes so there are less issues with maintenance like water heaters, furnaces and roofs, because I like the idea of low maintenance rentals. Townhomes with these attributes are also good investments, and may prove to be the best over a 10 year hold.
And do not forget the 1031 exchange as a tool to move that rental property in east omigosh with remote management, to the Denver area where you can manage it locally. Remember the old saying goes, Buy low, Sell High. Now is the time. And this is a great time of year for this type of purchase. We can help all the way through.
Denver is in a uniquely suited place in the national real estate market. Here is why:
Please remember, I started in real estate in 1985 (not the best time). By 1989 we were surrounded with foreclosures, short sales, the Savings and Loan Crisis and interest rates were in the ceiling somewhere. Then we slowly started to claw out of the basement.
By 1995 I was wishing I had bought some rental properties while the prices were low and I could have made a great deal. I just did not have the cash and was scared of the market and had never seen anything like it before. I still see homes that were on the market then for about 39k and now sell for well over 250k. Oh Well!
So you have already guessed the proposition here:
We have had 3 years of doom & gloom about foreclosures in Denver.
We have a branch of the credit industry going through an ordeal nationally.
We have short sales and foreclosures still in abundance in our market place.
We have builders with standing inventory of new homes.
HOWEVER, interest rates for non owner occupied homes are in the 7% range, not the 17% range. And what you need is cash, 10-20% to assure you cash flow before taxes.
OH, yeah, there is that too, the tax benefit of owning a rental home has not changed substantially, except the capital gains tax has dropped so much.
The philosophical speed bump seems to be “what if the market keeps going down?” That is one I cannot answer, but the glory goes to the winner, not those who thought about running. And where will that bottom be? I will only know, as will you, after prices start going up again.
Where to buy? My personal preference is to buy in the strongest market you can afford as I believe it is least likely to endure future shocks. One of the reasons for the crisis of foreclosures is the prior confidence folks had in neighborhoods and areas, yet to have proven themselves. In short the values there were artificially inflated due to “hinckey” financing.
So I would be buying in the south metro area of Denver. Almost any of the suburbs but in particular, Highlands Ranch, Littleton, Centennial, Englewood, & Lone Tree, Colorado. And I would be buying 3 bedroom, 2 bath, 2 car garage homes that have little or no fix up and deferred maintenance costs, and that can be rented quickly (did I mention rental rates are going up). Typically, you want these to be newer homes so there are less issues with maintenance like water heaters, furnaces and roofs, because I like the idea of low maintenance rentals. Townhomes with these attributes are also good investments, and may prove to be the best over a 10 year hold.
And do not forget the 1031 exchange as a tool to move that rental property in east omigosh with remote management, to the Denver area where you can manage it locally. Remember the old saying goes, Buy low, Sell High. Now is the time. And this is a great time of year for this type of purchase. We can help all the way through.
Allen Hainge, the great kahuna of the Cyberstars was kind enough to focus a recent blog article on my efforts at web design. Take a look at http://blog.cyberstars.net/public/item/177849 and see what he has to say. Then take a look around www.denverrelocation.com and let me know places we might improve our service or presentation to you.
A constant I find in this business is that folks do not want to lose their equity and are always asking, "WHAT IS OUR MARKET LIKE". Sometime statistics are the only answer so here are a couple of charts:
Sales data is represented since 2000 while "new listing" data was finally trackable as of 2003.
The large spike in data that first year of listings is a result of a data field change that allowed actual reporting of that data.
I was visiting with some folks the other day who had taken their home OFF the market and out of the MLS and decided to try it on their own. They complained they had only 2 showings in 6 months and since they went on the market as a FSBO they have received 5 offers!
WOW, I said and asked had they accepted any of them. They explained that no, they were all INVESTORS who wanted to buy their home for 100k less than they were asking.
Two things this tells me... 1. Denver is prime for a turn around as there are investors buying homes. 2. Those same investors do not want to buy at market value and are afraid of working with Realtors who have property listed.
9-6-07 Mortgage Fraud = Federal Time
I just read a post over at Peter Toner's site http://tinyurl.com/2cpw6y and found his comments, as usual spot on. Folks have asked me to do all kinds of things to "help them buy a home" in the last 22 years. Frankly, this is the only way I make a living and so I will not risk my license with something that steps outside the box. Some are offering rebates or discounts (not all are illegal) or other incentives to gain your business. I have always stayed away from it. Read on...
WHY...because every deal I have done has had some kind of US Government involvement, either through FHA, VA, FNMA, GNMA, etc. Even a cash deal has US dollars involved. Well that is not a big deal right? Yeah, it is! Government involvement + Fraud = hard time at one of uncles not so friendly country clubs. And you, the consuming public, while less likely to be targeted than those in the professions, can also be held accountable. So, if I offer to give you, a buyer, a $1,000.00 rebate after closing but I do so to acquire your business, through advertising this fact, and I do not tell the lender that you are getting it, there is a case for loan fraud. It could be that simple. Now, if I chose to give it to you after the closing, and there was no trail of offering it, that is a different story. The lender cannot give anyone anything without disclosing it, before, after or durring the transaction. All should check with compenant legal counsel on this.
The key is the "INCENTIVE PAID TO DO BUSINESS". When you make a decision based upon an offer of an "incentive" your antenna should start to tingle. Just be careful. Anyone who has a concern about this needs to consult with an attorney who knows and understands the words "Federal Loan Fraud". I know a good attorney and will happily make the referral.
The old saying "If it seems to be too good to be true, it probably is" goes right next to "everyone is doing it". Be careful out there! If you need a good Denver area real estate broker drop me a note.
Sometimes statistics help us understand the true picture. Here are some from July 2007 that tell us that real estate is based upon localized markets, not national news.
Even though I could not do the stats before I now have an interactive map at www.denverrelocation.com just below the 2 pictures.
Click the link next to the word statistics to see ALL of Denver's MLS statistics.
Unfortunately I cannot format this properly so please make 3 columns marked:
July 2006, July 2007, Percent change, and then assemble the numbers below under them.
Sorry for the inconvenience.
Douglas Elbert Parker
# of Sales Closed -YTD
1,297 1,345 3.6%
Avg Days on Market
100 87 -14.9%
# of Active Listings
1,388 1,324 -4.8%
Douglas Highlands Ranch
# of Sales Closed -YTD
1,416 1,403 -0.9%
Avg Days on Market
57 54 -5.6%
# of Active Listings
744 652 -14.1%
What this tells us is that Highlands Ranch and Parker are still doing better than the metro market as a whole. Days on Market and number of active listings are key to what will be a strong Seller's market in short order. HOWEVER: Advantage BUYER as the press continues to hound and beat the Denver Area seller.
We got this e-mail from our showing service last week:
It’s hard to be optimistic when every news report seems to start with doom and gloom about the housing market nationwide. And, after reading the Denver Business Journals report on Metro Housing it doesn’t get any easier.
“The Genesis Group real estate research firm graded metro Denver’s single family housing market a “D” in its mid-year 2007 report card. Home foreclosures continue to plague metro Denver with initial foreclosure filings up 40% to 13,412 in this year’s first half from 9,574 for the same period of 2006. Denver county had the biggest increase at 62% to 1,548 foreclosures. Foreclosure rates continue to increase as mortgage rates rise, the resale home market slows…and home appreciation remains flat”.
Slightly happier news shows Colorado’s foreclosure rate slipped to the 5th highest in the nation in July. This is the lowest spot the state has held in more than a year. A total of 5,920 foreclosure filings were made in Colorado in July (1 for every 347 households). This lower ranking continues the trend started in June when we dropped to third down from second place February-May, 2007. This shows a dramatic improvement from 2006 when Colorado ranked #1 for eight months beginning in March.
Metro List shows a decrease of 5.37% in numbers of active listings from last year. DOM also has dropped to 95. Unfortunately Average Sold Prices have also dropped almost 3½% from this same time a year ago.
RERCs showing numbers have remained more or less unchanged from this time last year. Weekdays we are averaging showings on about 9% of all listings down only slightly from 2006. Saturdays remain strong with about 12% of listings being shown down from 14% in June of this year. For more than a year Sunday showings have languished at less than 8%. Our current client inventory reflects 47.75% of all listings are vacant! WOW…sadly this probably mirrors the huge number of foreclosures statewide.
As our market is mostly in the south metro area, we continue to have a good year.
We will always have time for you or friends of yours that mention your name.
As you learn the Denver real estate market, you will find that most of the information reported has a national slant. Real estate markets are localized. "Denver" with over 2mm people could be "in the tank" per the press and yet local markets within the metro area are thriving.
I got the following in an e-mail from one of my "trusted" lenders. This is certainly what I am hearing on the streets. Thanks Sandy Levy!
"Never has the mortgage industry been in the news so much!! Funding for loans that fall within the Fannie Mae, Freddie Mac (Conventional) and Ginnie Mae (FHA, VA) guidelines are becoming the only loan products that are certain to close. 100% financing is still available, but is accompanied by slightly higher interest rates and the requirement for mortgage insurance. One by one we are seeing the banks that fund the seconds in 80/20 or 80/15/5 situations pull back from 100% combined loan to values, limiting their offerings to 90% CLTV."
Good friend and fellow Cyberstar Peter Toner of San Diego crafted a short article on the mortgage woes we are facing and how it affects the credit markets and housing. I suggest you read it at http://real-estate.sandiego-mls.com/2007/08/23/is-the-sky-falling/.
To make a long story longer, use folks that have earned their stripes, that have solved problems in the past and that are affiliated with reputable, long standing organizations. If the mortgage deal you are being promised sounds too good to be true, it probably is.
Those who have "normal credit scores" and have downpayment sources, and employment history, can typically count on getting the needed financing at a good rate. Which, by the way, Wells Fargo quoted to me yesterday for a conventional conforming loan would be at 6.375%. Does anyone out there remember the 1980's? That is when interest rates were touching 15-16% for a similar loan.
8-17-07
Rates drop Fed eases Credit
Today the fed announced a lowering of a bank interest rate and the domestic mortgage market is feeling the benefits with rates dropping a quarter point at Wells Fargo within 1/2 hour of the announcement.
Write a contract to buy your home today and lock your loan today!
Good Fico? Got a Job? Got Down payment?
You can still get a loan and buy a home!
The credit markets are sure driving the world nuts right now!
And the nervousness in the Realtor world is almost palpable!
Buyer’s do not think they will get their loan.
Seller’s do not think they can sell, because they won’t be able to get their loan to buy the new house OR their buyer won’t get their loan!
And the nerves compound as the stock market twitches!
Yet, my mother (I think it was her) used to say “When you get lemons make lemonade”.
Where is the lemonade here?
Nervous Sellers? Nervous Buyers? Nervous Realtors? Nervous Lenders?
The truth is, the seller who called who has a 2 year old is still going to need more room, and said he did not think he could get his loan to buy a place. He does have a 720+ fico score and he really needs to talk with his lender, and get pre-approved. Get a locked interest rate.Then buy a place while the Seller is still nervous. But which lender?
(BTW, You can still buy right up to the maximum mortgage limit without going into an "ALT-A" loan. "ALT-A" loans are the non conforming products like limited documentation, stated income, etc.)
I recommend you find a lender who has been through this before…someone with 20+ years experience who know how the boat rocks and what to do about it. There are 4 good, qualified trustworthy Colorado Lenders at: http://www.denverrelocation.com/lenders.html. Two are "young lions" and two more mature and experienced lenders offer over 20 years in the mortgage business each. Both have seen this before. As a matter of fact one sent me this article http://tinyurl.com/2syu9g to me (note the date is July 2007) about looking backward to see where we are going. Sad thing is I remember most of it. In short, the Fed won't intercede. (OK I was wrong! They did.)
The credit market is changing daily and a qualified, experienced loan officer can make all the difference in your home buying experience. Sellers still need to sell. If you can buy, you have the credit scores, down payment and job, now is a great time. And remember, all real estate markets are localized. It may be awful where you currently live, yet 20 miles away it can be booming.
You know, every real estate deal is different and offers it own set of challenges. The following is not brag, just fact. One of the things we offer is approximately 1100 deals done over the past 22 years. Every transaction provides 3-4 new experiences or challenges, so that is between 3300 and 4400 challenges that we have already faced and we are prepared to help you face. That is why an experienced Realtor is so valuable to you in your next real estate transaction.
On the 1st my daughter & son-in-law flew in from Scotland, where they live. And we have been pampering and spoiling them like all parents do, but what a joy they are to have here with us. Today they head back to Duddingston Edinburgh. The jet lag is not so bad in this direction but going there they will lose 7 hours, and so that is a little tough. And we will miss them allot. Maybe again at Christmas?
I am also grateful for some folks who allowed me to schedule their needs around Stewart & Elaina's visit. Turns out Monday was an errand day for the kids so off they went with Mom & I showed some pretty amazing homes to a couple looking for a "lock & go" here in Denver. Normal requires the first home to be "it" but we still had another 10 to see. Got back to find we were competing with another offer and ultimately won.
The best part was I found another "perfect" ranch style house on 2 acres with an incredible view! Not for me, you understand, but for one of you who has been looking in that sub 600k market for that "perfect Denver home on acreage, in the country, in the trees, but not too far out, and only a mile from a sort of major road. It was a wow! Make sure to call or drop me an e-mail if this is something you might want to look at.
And by the way, my previous post about sellers making their home available to see was posted as I was setting up these showings. There were 4 owners who could not be bothered that day and whose houses we passed by. "If they cannot see it, they cannot buy it".
Setting showings this morning and all the Seller's want a one hour window?
A couple of VERY experienced agents listings?
Please, let's make it harder to sell by reducing my ability to show it.
AND it is the agent that does this "as a convenience" to the Seller.
However, if I cannot make the showing time, or the other guy at the end of the schedule wants to be first, then what?
AGENTS, in a tough market, make sure your sellers know:
"YOU CANNOT SELL IT UNLESS THEY CAN SEE IT"
And we are not in an extremely tough market with an average days on market of 78.
However, if the objective is to get the house sold, that should not be too hard, should it?
SELLERS: Advice is worth what you pay for it. This is really good, tried & true.
7-16-07
Virtual Real Estate in Denver
We recently completed a virtual transaction for a client who never saw the house she bought, except via e-mail and virtual tours.
She was located in Anchorage and had asked her Realtor there if he knew anyone in Denver who could help her buy a home as a rental that her brother would look after. Niel Thomas (http://www.reals8.com/) & I have been roomates at a couple of Cyberstar Summits and he freely offered my name to her.
Once we had done a telephone interview, we started by getting the signed agency documents to her via e-mail as well as the required definitions etc. These were received back with her electronic signature and I did the same using my tablet PC.
We then connected her with a local lender that approve the loan electronically and with in a few days she had a pre-approved loan and a letter stating such.
I offer 4 different e-mail search engines for the Denver property listings. Knowing her OS she and personality from our phone and e-mail I decided on MyBuyingBuddy and shipped off 50 homes to sort through. She high graded those and sent her brother her "top" candidates. He drove past all of them and selected 5 of the "best".
There was one that was the "best" and it was available so a showing to Mom & Dad & Brother & Sister in Law plus the kids was arranged (NONE of these folks will live here) and it was decided that this was really the one that would best meet their objectives.
I spoke with the client, got my directions, prepared the offer to buy and sent it to her via e-mail. We received the signed document back via e-mail and forwarded it to the Listing agent across town. They forwarded it to the Seller, a bank. And within 24 hours we had a response and acceptance.
The inspection got done and it was attended by the brother but the report was sent to the buyer via e-mail.
The appraisal was ordered, and the documents assembled. They were all sent via e-mail and then signed in front of a notary in Alaska and then overnighted back to the title company while the funds were wired in and the deal was closed.
I met the Buyer at the house two weeks later when she came to town to see what she had purchased and to get it ready for her tenants. Once again the whole family was there working on the home.
7-10-07
New WATER RULES FOR REAL ESTATE effective 1/1/2008
Colorado House Bill HB07-1156 was signed into law by the Govenor to take effect January 1, 2008.
In short it says anyone selling a piece of real estate MUST disclose the name address and phone number of the provider of the potable water to the property, whether via well, ditch, surface or water district. Additionally it is recommended that the Buyer contact the water supplier to determine long-term sufficiency of the water provider"s water supply. The reasons for this bill are simple, the state legislature want s to make the public more aware of it's water use and supplies. Goverment protecting us again. So you will start to language in real estate contracts requiring this disclosure. For sellers of typical residential real estate in Colorado, a copy of the most recent water bill would be good, or a copy of the well permit for more rural properties would be good. Other types of properties, and ditch rights and adjudication and seniority etc etc etc will be critical. Long and short, real estate professionals need to make sure this disclosure is made to the Buyer.
7-9-07
An Open e-mail to an out of town buyer
I am doing an inspection with some folks who came in last Thursday from California. One of their first comments was, "we have been watching houses come on the market and then sell before we have been able to get to them. This is not a buyers market, it is a sellers market". I added that the press just has not told anyone yet. (BTW, their price range was 200k to 250k and the house we bought we did get to negotiate on, so it is not yet a seller's market).
So all the friends who live here in Denver, while well meaning, that are giving advice are not active in the real estate market (or if they are their home is not selling because it is overpriced). They really do not know what it is like in the south suburbs of Denver. They can only regurgitate what they hear/read, and frankly, that is all bad news (it is the only thing that sells advertising and circulation). If they spent 2 days out looking in the price range and area you want, they would get a very clear picture.
Finally, in my opinion it is not going to get better for price (not going down) or volume of homes (choices) available. So renting for a year will only prolong the agony. Houses will get more expensive and there will be fewer good choices. You need to get out here and pick a house out and buy it.
Of course part of this could be "we can't sell our house". I should mention how that effects ones opinion of where one is moving. For some reason people think prices in the new town should be the same as the old town but if it was you would not want to live there would you? I mean why leave friends & family? If it was the same in Denver the ecomomy would be going south, or at least the housing prices, jobs would not be worth it, and lifestyle wouldn't be as nice. But that is not true! Take the loss (is it really a loss or just compared to 3 years ago?) there and sell the house. Then buy something that is on the upside of the curve here in an area you want to live in. Renting is just abusing yourself by making you move twice.
7-7-07
Don't believe what you read or what friends tell you about the south Denver suburban real estate market! It is vibrant. SOme buyers in from California said yesterday "This isn't a Buyer's Market. This is a Seller's Market. The Seller's just don't know it yet".
Yep, that is what I am seeing, so if you are buying, better do it quick.
5-31-07
Great Summer Fun
If you have never been to a local rodeo, try the Elizabeth Stampede this weekend June 2-3.
Elizabeth is a sleepy little town, except for the traffic, southeast of Denver (see maps at http://www.denverrelocation.com/ElizabethColoradoMap.html) and hosts this event every year.
Pro Rodeo Cowboys will be there and it will be a great weekend for all you wanna be cowboys. Dust off those boots, get out the Stetson and Check it out at:
http://www.elizabethstampede.org/
Win A House
5/25/07
The Colorado Association of Realtors Housing Opportunity Fund is giving away a house through an annual raffle. This is a raffle where the number of tickets are limited and the opportunity is great! The fund is explained at www.carhof.org and it is basically a way for Realtor to give back into the community. You can buy a ticket at www.denverrelocation.com and clicking on the "WIN A HOUSE" image on the right or by going to the CARHOF website.
5-15-07
A sucess story! Escalation clause
It may be happening sooner than we thought!
Since January I have been working with a buyer who was beaten on price 3 times. In a Buyer’s market that is not supposed to happen, but it sure has been in the south Denver Suburbs. Wow.
I have previously posted how in February we had a listing we got multiple offers on and the Seller netted 20k more than asking. Two weeks ago we had another situation where the Seller had verbally accepted an offer when another offer made itself apparent. The Seller made the decision that his word was his bond and so we never looked at the 2nd offer. But we easily could have been in a multiple offer situation on this Highlands Ranch home.
So now, as I visit with Sellers and Buyers they need to know about the market and how they might need an escalation clause telling the Seller that they are willing to pay more than any other bonafide offer. Boy, that does not fit what the press is telling you does it? And I certainly cannot reconcile the national news of today, with prices falling 2% in Denver.
All I can say is the market is different in the south part of Denver and that in particular Highlands Ranch, Lone Tree, Castle Rock and Parker are holding prices up.
Should you need to buy a home in the Highlands Ranch area, make sure you take a look at how long properly priced homes are staying on the market. You need someone who really has a pulse and can interpret data, or just give it to you. Then hire them to represent you…me if you like. But make sure you are the winner on the house you want to buy.
HRCA adds value
4/25/07
I had an interesting comment from a friend in another, much older area of the country, who believes that "oppressive CC&Rs" or home owners associations might not be the best thing for values of the real estate. Having lived and worked in Highlands Ranch since 1989, I know the values have been appreciating (most of the time) and that the HOA does add value as the association is large enough to provide wanted ammenities. Take a look at the chart the HRCA provided in their latest newsletter. Given the proper mix, an HOA can be a good thing.
A Past Client's Concern
Monday, April 16, 2007
How’s Your Year Going?
I have been worried about you & your business.
Is your business OK?
What a blessed way to walk into church last weekend! A past client pulled me aside and asked these questions with the heart of God clearly displayed and I was touched. But more than that, I realized I have not told any of you how business has been. We have been blessed in a multiple of ways and business, in spite of what you have heard, is good!
In 2006 we matched a good year in 2005 in terms of net revenue. And that was largely because I was watching trends, saw the market going into a real dip and managed to cut some costs. 2007 looks very promising in that we had a very successful 1st quarter due to our internet presence. I will estimate we will match the last 2 years plus some but we still need your referrals and business to do that.
Our main website www.DenverRelocation.com has been in the top 10 on Google when searching for “Highlands Ranch Colorado Real Estate” for the first 3 months of the year.
It is all over Google for the other towns in metro Denver and we continue to get good out of town leads for buyers moving here. And the real scary part is I am the webmaster on this site. I have some great coaches.
I just returned from speaking at the Western Slope Realtor Rally on April 13 on Capturing Web Leads. This is an honor and I have some very strong, counter industry, convictions on this process. If you have some experience here I would love to do a lunch to share what I know as well.
Another blessing occurred, and this one without my desires. As you know I have been a Metro Broker® since 1988. In 2001 I moved my operation and not too long after that I was asked to become a full fledged Metro Broker office which I would own. That is the best positive spin I can put on that event, so we will leave it there. In any event, I now rent office space to other Metro Broker companies as well as at home brokers and so that should create good positive cash flow. However, I had until May of 2007 to get a minimum of 6 brokers and associates. In January we had a 66% growth spurt and are now at 7 and are actively interviewing other Brokers and Associates to join us. So while all this does not pay 100% of the bills, we have an amazing potential and will be putting up a lit outdoor sign God and HRCA willing. And if you know of other real estate brokers who might want to join us, I think it is a special place to be.
The single thing that has been sitting and waiting for this fleshing out of the industry, and re-establishing a strong business base after the re-trenching I had to do in 2006, has been my Land for Churches project. This is still there on my heart and hanging on the wall. It is a program where the LFC organization can receive charitable donations and with those proceeds acquire Land for Churches to give them a building site. Someday, in His time, this will come to be.
The greatest blessing has been Elaine, who after 5 years is still with me. She, and her dog Panther, have started to complete sentences for me! I would truly be lost with out her (she can keep the dog!).
Thank you all for your prayers and concerns. We are doing well, but will always have time to help you, your friends, or anyone who mentions your name. Whenever you hear someone mentioning a move, please hand them a card of ours and give us a call with their name and number.
A Post about Estate Planning from a friend, Attorney Sue Kokinos
Friday, March 23, 2007
Does this make a trend? Only one point of data certainly does not but reviewing the previous year’s new single family listings compared to previous year’s (admittedly, only 5 years of data but 22 of experience) one can see a true reduction in the number of new listings entering the market.
The large spike of "new listings" in 2003 was due to a Denver MLS rule change.
This is really good news for the seller today as it means there are fewer new listings competing with their’s. Unfortunately, it does not mean there are fewer homes on the market, rather the ones that will normally sell fastest are coming on the market at a slower pace.
And ultimately, that is good for prices. The trend I noticed reminds me of a very active market in the spring 3-4 years ago. And part of that was based upon the sales figures, while down, are not in the basement.
As you review these graphs please remember I only track 2 data points and certainly one could track a myriad of them. These 2; Denver Single Family SALES and NEW LISTINGS OF SINGLE FAMILY HOMES should give a good general direction for the market. Sold data is the only true indicator of activity so take note of January & February 2007, both down from the previous year yet up or on par with our market of 2-3 years ago. So far from burying our heads in our hands, we should take advantage of this "depressed" market place and the differential pricing*** it offers. ***When moving up from a 200k home to a 400k home the larger home will have taken a larger discount than the smaller. So, while you might not make as much selling your current home, you make up for it in the purchase of the new home.
Advice? I feel like a broken record but if you look at the past you will see that events such as this last 12 months are always followed by sharp increase in activity (sales) and the number of listings stays down so prices start to climb. If I were thinking of making a move and needed to sell in order to buy, I would do it now. If I was making my first investment in Denver Real Estate now is a great time.
A couple of notes about the new Daylight savings time & computer sycronization
Well, not sure if this is worthy of a post, but if you have an old 95, 98 or 2000 machine running in your system, you might want to look at theses sources for DST patches/answers:
From one of my webmasters, Howard Towt at Solucian Networking:
You need to worry about this if you use the Outlook calendar on your Windows 98 machine. If you are using Outlook Express or Outlook just for e-mail and not calendaring and scheduling, it shouldn’t be a problem. Just manually update your time when the DST change occurs. (Double-Click on the time indicator in the bottom left corner of the computer screen and adjust the time appropriately.)
The irritating thing is that you’ve got to change it next week, then when the old DST change occurs, then reverse the process in the fall. It’s more of an irritation than anything else.
For a blog reference with multiple sitings:http://tech.yahoo.com/blogs/null/14880
For a short article on how to: http://tinyurl.com/3d5eot
We make a commute map available to our customers!
Commuting can be one of the first questions for any relocation buyer?
How far will it be to work?
Where are the good schools?
Where is the good shopping?
Where are the good neighborhoods?Let me direct your search so you have some of that information…specifically drive times.
The best question to ask is “what is the maximum acceptable commute time?” 10 minutes? 20 minutes? 30 minutes? Some folks feel an hour one way is acceptable.
So, I can develop for each family a “Commute Map” that shows the approximate driving time radius such as this 38 minute map to downtown Denver.
As to the other questions above. Some I cannot answer directly but rather can point you to information that would let you make your own decisions. For instance, I do not know where the best shopping is but I have driven past Nordstroms. I can only report the school test reports and point you towards some state and county resources at my website
http://www.denverrelocation.com/community_schools.html and you can decide where the “best schools are”.
Good neighborhoods are important especially when you think about resale (and I do). So one of the first things I will do for HOUSE HUNTER is to do a basic geographic orientation and then a “Chamber of Commerce” type tour to help you get your bearings; all throughout providing pricing or sale information about areas and neighborhoods we pass through. But one of the most important things for you to do is drive through those neighborhoods yourself, see who lives there and who comes and goes, if there are kids and dogs or not.
So, if this kind of service could be valuable to you or your friends, put my 22 years of experience to work for you, learning about your new home town!Lone Tree Colorado, Highlands Ranch Homes, Littleton, Castle Rock, Centennial, Englewood, Parker co, Elizabeth, Larkspur, Franktown, Kiowa, and metro, Denver Colorado real estate, property listings, mls, is available at www.DenverRelocation.com including, searches for properties and homes. Drop me a note to pete@Denverrelocation.com
This was my 1st "trend report of 2007
Note the new listings are down!!!
Well if you cannot tell by my previous posts I tend to be a bit of a trend watcher.
In 2005 I saw a spike in NEW LISTINGS occur towards the end of the year.
I have seen this before…end of the year wannabes who say “well if I can get that much I will sell”. They are also known as greedy sellers and silly Realtors who take the listings. Now take a look at the NEW LISTINGS in January 2007!!!! Is this the start of a trend? Oh by the way, the new home builders have reported 14% fewer new home starts. What do you think?
In 2005 Sales stayed even with the previous year. 
Then the press hit Denver with the stories of so many listings on the market and the foreclosures. This had a stifling effect on the sellers and the buyers so in 2006 sales were down by over 10% from the previous 2 years, but right on que for the years of 2001, 2002, & 2003. Here is the graph of sales:
One of the reasons I watch these indicators is to help my Buyers make good decisions. The other is selfish…I knew we were going to have a bad year in 2006 so I re-aligned my business model to reduce expenses as a result of this “analysis”. Now I am faced with 2 realities, listings are down and sales are too. That means Supply is down and Demand is growing. Lets add to this mix a report I heard that new home starts in Denver are down 14%, further indication that Supply is down. Yet we know that in a frenzy of buying activity the Denver market can sustain 35000 single family sales (demand) in any given year.
In order to get an econ class waived as a requirement in college I once said to a college dean that if you could teach a parrot to say “Supply and Demand” you would have an economist. Certainly it is not that easy, but with supply down, and sustainable demand prices at sometime must go up!
NOW for some Highlands Ranch information…
Well even after looking at this data, there is still a hole in my view…where is the news coming from with these record foreclosures? Well, lets report what I know from Land Title…
For the year 2006 in the Castle Rock MLS area the number of sales were up 5.1% and the average sale price was up 13%. Days on the market were also up 28%.
For the year 2006 in the Parker MLS area the number of sales were down 1.4% however the average sale price was up 8%. Days on the market were also up 32%.
For the year 2006 in the Highlands Ranch/Lone Tree MLS area the number of sales were even however the average sale price was up 7%. Days on the market were also up 32%.
I do not know about you, but these numbers are encouraging to me. They also point out the idea of Macro vs. Micro economies. While the market on the north end of the Denver metro area may be taking a beating, the south end seems to be holding up. Imagine what the reports would be if the market was not so good in the south area. We have been blessed but we will continue to help folks sell homes here in Colorado, no matter the circumstance.
And it seems as though, right now would be an excellent time to buy property, while the rest of the world believes the Denver real estate, market is in the tank.
In the past I have said "Going out to buy a home without a Buyer's Agent is like going to a gunfight with no bullets in your gun!" Well, we had a friend from another real estate market report this conversation with a past builder's on-site sales person. I thought it was so important, I asked for permission to share it. She asked that I not even disclose the market area. Here is her e-mail:
I had a sales rep from one of the national builders in my office yesterday.
I told him about the investor who contacted me to sell the model homes he
had purchased the year before (not with me as the selling agent).and thanked
him for the referral but that I couldn't help him with the values he
expected.
I SO wish I had had this discussion on tape to send to the public:
"Well, yes, I'm sure he wanted to be able to make some money on those!
(lol) But, hey, basically my job was just to sell the homes for the
company, and move them off of our inventory. I would never recommend anyone
buy a model, they are so overpriced.in truth, I really kind of screwed him
in that respect, but that wasn't my job to make him money l later. My job
was to sell those homes for the company."
Doesn't that just REALLY sum it up when the public walks into a builder's
office and expects to get a great deal not using their own broker?
So, does this also fit with the new home buyer who walks into a sales office without a Buyer's Agent? You bet. If you want representation, but have not made all the contacts with me or your Realtor of choice make sure to announce your intent to include a Buyer's Agent from the outset to the builder's rep: "I AM WORKING WITH ....... AS MY BUYER's Agent. Here is his/her card. And BTW I am not signing in. You can call my Buyer's Agent and get my details from them". And then call us!!!! A Buyer's Agent can advise you about how good a deal you are really getting. But without one you will never know until you go to sell and are faced with the investor's challenge above. Food for thought I hope.
Email:
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