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ArchivesOctober 2006September Housing SurveyWe recently received the monthly Bank of America Real Estate Agent survey regarding home sales and pricing. Once again, it shows a declining market with slow sales and depressed prices.
In the Denver market in particular, new home builders are offering up to $80,000 in incentives and one home builder noted "Any offers we do see being made are 20% or more below offering prices."
If you are considering purchasing a home, make sure to take a look at builder inventory. Most builders have spec homes available that can close in 30 days or less and some will still have the ability for you to pick some options. These same builders usually have an arrangement with a lender where you can get below average interest rates and other incentives.
Although some builders have rules against it, it is also a good time to invest in new homes. They make a good buy for investors for the same reasons they are good buys for home owners. Be prepared to rent them out of a while as the ability to make a profit may not be there for a while - at least until the builder completes the project and moves on.
2:54 PM - Oct. 31, 2006 - comments {0} - post commentYou can own a "Real World" houseThe property used to film Real World:Denver is on the market. Listed for $3.3 Million, the almost 22,000 square foot property was a commercial billiards parlor before the producers of Real World bought it and fixed it up. It's located in the trendy part of downtown known as LoDo and includes an outdoor courtyard with basketball hoop, a mini-pool and hot tub. The indoor living spaces are centered on an aquarium. The upstairs areas include a loft, three bedrooms and one large bath - all without doors.
The show itself begins airing November 22nd. Take a peak. You might want to own the property! 2:44 PM - Oct. 30, 2006 - comments {0} - post commentA great gift ideaThe holidays are coming! Don't you hate always trying to come up with that gift for someone who already has everything they would ever need? We got a catalogue today that actually makes sense.
It's called Heifer International and before you laugh, these people are doing good work all over the world. The idea is that an animal given to a family in Africa or another impoverished part of the world, will help feed the family and, through breeding of the animal, produce income through calf sales. All farm animals including goats, sheep, bees and chickens are included.
Gifts can start as low as $10 and can go up much higher depending on what you wish. You can donate online by going to www.catalog.heifer.org. This organization has been in existence for 60 years and has been recognized by leaders all over the world.
In the catalogue was the most revealing quote I have read in some time. It quotes a Thai farmer who says, "If I die, my family will weep for me. If my buffalo dies, my family will starve."
You might want to consider making a donation in your own name as well as others.
4:54 PM - Oct. 29, 2006 - comments {0} - post commentGet fit for the winterThe nice folks at WebMD recently put out a list of things you should do this winter to get fit and keep fit. They include:
We all know winter can be a hard and depressing time. Check out this article. It might help. 4:48 PM - Oct. 27, 2006 - comments {0} - post commentYour retirement homeIf you, like me, are a member of the Baby Boom generation, your thoughts may be turning to retirement. Or perhaps not. A recent study by NAR indicates that most boomers think they'll stop working at around age 70 or so. But 27% don't think they'll ever retire!
I was thinking about why that is. My parents generation couldn't wait to get the gold watch and hit the golf course or the trout stream. But, for the most part, they had physically demanding jobs that wore out their bodies. Today's worker is very different. Instead of standing on their feet in a factory they have their feet up on a desk while talking on the phone and typing at a keyboard. We certainly don't feel the need to relax and recuperate because of physical stress and strain.
Those of us that have thought about it, though, still consider the South and West as places where we'd like to spend our retirement years. Lots of us, 4 out of 10, already have a vacation home that we intend to convert into a retirement home. Since most of us own real estate this is a natural progression.
The lure of small town life is strong. Most boomers say they want to get away from the rat race and retire to a small town - but it still has to have services. We really don't want to be too far away from cultural and sporting activities and good restaurants and book stores are a must.
In short, most of us have thought about retirement and even done some planning. But we're not ready to actually do it yet. 9:55 AM - Oct. 25, 2006 - comments {0} - post commentMistakes Sellers makeThe market has changed. It is definitely a Buyer's market in almost all parts of the country. Problem is, some Seller's are still thinking the market is the same as it was a year ago. Here are the major mistakes we think most Seller's make - and most of them have to do with pricing.
1. Basing the price on the original price of the home plus improvements or replacement cost. Unfortunately, the market doesn't really care what you paid for the home or the cost of improvements. The market cares about what comparable homes are selling for.
2. Hiring a Realtor based on what they recommend as the listing price rather than their experience. In the trade we call this "buying a listing". It rarely works out well for either party.
3. Failure to make minor repairs and touch ups. With all the competition, the house that looks the nicest will sell the quickest.
4. Offering some sort of carpet or decorating allowance rather than doing the work before listing. The usual excuse is "I don't know what the Buyer will want." Truth is, the Buyer won't want your property at all unless it's clean and shiny. Put in neutral carpeting and paint the red walls. You'll be glad you did.
5. Pricing a home too high and asking Buyers to make an offer. If the home is priced incorrectly, most Buyers will either choose not to see it or choose not to make an offer. Price it correctly to begin with and it will sell quickly rather than sitting on the market.
6. Listening to Uncle Joe about where to price the home. You've hired an experienced Realtor. She has presented you with a detailed market comparison showing what she thinks the house will sell for. If you don't trust the Realtor enough to price your home right, find another Realtor. 9:23 AM - Oct. 23, 2006 - comments {0} - post commentAll we are saying....October 9th would have been John Lennon's 66th birthday. Somehow that just doesn't seem possible. A few of his better quotes include:
As usual, there is a great woman behind every idiot.
If everyone demanded peace instead of another television set, then there'd be peace.
Love is a promise, love is a souvenir, once given never forgotten, never let it disappear.
The more I see the less I know for sure.
And, of course...
All we are saying, is give peace a chance. 12:35 PM - Oct. 21, 2006 - comments {0} - post commentHouse prices vs. incomeOur friends at the Census Bureau have recently confirmed something that we all probably already knew. Personal income isn't keeping up with housing prices.
It is particularly bad on the coasts where double digit housing price increases have been the norm for the past few years. But mid-America is suffering as well. Defined as those who pay at least 30% of their incomes on rent or home mortgages, the Bureau sees housing affordability decreasing in places like New York City (DUH!), Loudoun County, Virginia and Bastrop County, Texas.
However, the place in the country with the largest increase in price of housing vs. income is Olathe, Kansas, which is a suburb of Kansas City. Others included Temecula, California as well as Boulder, Colorado and College Station, Texas. Of course, suburbs around New York City and Los Angeles are also showing effects of the housing price increase.
The Census Bureau indicates that those with the highest numbers of homeowners shelling out more than 30% of their income are those in poorer areas where the gap between income and housing prices is most prevalent. That includes El Monte, California, a Los Angeles suburb, had the highest percentage of mortgage holders, 73%, spending more than 30% of their income on housing. In Newark, the figure was 72%; in El Cajon, California, east of San Diego, 69%; and in South Gate, California, 69%. 12:17 PM - Oct. 19, 2006 - comments {0} - post commentPoint, what's your point?Interest rates are creeping up again. Maybe a home buyer can pay some points to the lender to get the rate back down and lower their monthly payment. Is it worth it to do that?
The simple answer to that question is, it depends. You have to do a little math and figure out the return - or time frame - required to take advantage of a lower rate.
Let's take an actual example. You want to get a 30 year fixed rate mortgage with no points and no origination fees. The average rate for that loan is 6.5%. If you wanted to reduce the rate to 6.0%, what would it take?
The question in this example is, is it worth more to have the $3000 you would pay in points up front for other purchases - like a new frig - or is it worth paying the $3000 knowing it will take almost 4 years to break even?
Of course, this is merely an example. Your mortgage lender can give you real world figures for you to base your decision on. 12:01 PM - Oct. 17, 2006 - comments {0} - post commentAll the world's a stageIt's all the latest rage in home selling. Have the home "staged." But what, exactly, does that mean?
There are actually two different ways to stage a home. One is if the home is vacant and the other is if it is not. There can be some overlap, of course.
If the home is vacant, a staging professional will actually bring in furniture and decorative items to show off the selling points of the home. Perhaps they want to emphasize the fireplace so they'll place chairs and tables around it. If it's the kitchen, a few copper pots and some nice stemware and voilà! Usually not all rooms are staged in a vacant house. Just the main attractions - living room, kitchen, perhaps master bedroom.
If the home is still being lived in, the goal is the same but the execution may be different. First a stager will "declutter' and "depersonalize" the home. Take down all the family photos and get rid of all the stuff on the counters and in the closets. Then they may move furniture around. Of course, they will recommend that rooms be painted and carpets be cleaned.
What's the purpose? To show off the home to it's maximum advantage. With as much competition as there is today, it is very important that a potential buyer sees everything the home has to offer. if it's cluttered, dirty or filled with personal objects the buyer may just move on to the next house.
What does it cost? Typically about 1% or so of the sales price is a good rule of thumb. So a $300,000 home would cost about $3,000 to stage. Sometimes the broker will pick up part or all of the tab and sometimes it's up to the home seller. Of course, a stager can come in and tell the seller what to do for a lot less money and it will be up to the seller to actually complete the work. 11:49 AM - Oct. 15, 2006 - comments {0} - post commentMeth labsIn working with buyers we are often asked whether or not a particular home contained a meth lab. Certainly we are not experts so we use experts.
A recent article by Carl Brahe of Inspection Perfections speaks to the main issues. Many of his points may surprise you including:
What trained investigators look for is the totality of the surroundings. Things like cat litter in unusual places or being used in unusual ways. Or jars containing unidentified liquids. Other indicators may include drug paraphenalia, trap doors and unusual ventilation and plumbing.
So if the house is vacant, how would a potential know if a meth lab had been present? Colorado just passed bill that will hold the Seller responsible for some notification depending on whether or not meth was actually produced on the property. Known as the Colorado Methlab Real Estate Discovery and Disclosure Act it may help Buyers to ascertain whether meth was ever produced.
The bottom line for us is to engage the services of an expert if there is any question that a drug lab may have existed in the property. It would be money well spent.
For a full copy of the report please go to Forensic Applications web site. 7:56 AM - Oct. 9, 2006 - comments {0} - post commentTime for that winter check upDon't you just love fall? The temperature is perfect, the changing colors are beautiful. It's a great time to enjoy life.
But you know winter is just around the corner. It's time to do a checkup on the house and make sure everything is in tip top shape before the snow flies. Here are a few tips:
1. Check for adequate insulation in both the basement and/or crawlspace. Make sure there are no broken or leaking basement windows where heat can escape.
2. Caulk, caulk and more caulk. Check around doors, windows and any other openings for leaks. A little caulk can save you big $$ in heating bills.
3. Check for roof problems. Clean out the gutters (wait til after the leaves fall). Check for cracked shingles and roof leaks. Check around your chimney for any leaks or cracks as well.
4. Put some light on your electrical lighting. Make sure all your outdoor bulbs are working and check to make sure there aren't any leaks in outdoor fixtures. If you have a "tripping" problem with any breakers, do yourself a favor and get an electrician out to check on the problem. You don't want that furnace breaker tripping during a snow storm.
5. Water leaks can be dangerous. Make sure you blow out your sprinkler system. Put your hoses inside the garage or shed (blow out the water first) and make double sure the hose bib isn't leaking. Put a blanket around your hot water heater - this will save you more money than you can imagine - and insulate any other water pipes that might freeze.
6. Put your HVAC to bed. Air conditioners like a nice cover for the winter. At the same time, have your furnace cleaned and certified. Carbon monxide leaks are deadly so install carbon monoxide detectors.
It'll take a couple days out of your beautiful fall to do these things, but you'll appreciate it in the dead of winter. 10:10 AM - Oct. 7, 2006 - comments {0} - post commentNow IS the time to buy!Headlines scream - Home values drop 1.7%! First drop in 10 years! Henny Penny had nothing on these guys....
So let's think about it. The stock market can take a 5% hit in a day and nobody even turns a hair. The real estate market drop 1.7% for the first time in 10 years and it's front page news. Why is that? BECAUSE REAL ESTATE HOLDS IT'S VALUE SO WELL! Yes, I'm yelling. Real estate holds it's value.
So if it drops a little, what does that mean? It means now is the time to buy. You know all those stock brokers who send out buy signals when the stock market drops? They tell everyone the market has to go back up so invest now.
The same logic applies to real estate. Because home values decrease once in a blue moon, now is the time to buy. Interest rates are still very low historically speaking (said by someone who lived through the 17%+ rates in the '80's) and home values are dropping. Now may be the time to pick up a good value that will appreciate in years to come. 9:01 AM - Oct. 5, 2006 - comments {0} - post commentInformation PleaseWe subscribe to the Trisler Times, a sales e-newsletter put out by Hank Trisler each month. In this month's newsletter was the following article which we found touching and wanted to share with you.
When I was quite young, my father had one of the first telephones in our neighborhood. I remember the polished, old case fastened to the wall. The shiny receiver hung on the side of the box. I was too little to reach the telephone, but used to listen with fascination when my mother talked to it. Then I discovered that somewhere inside the wonderful device lived an amazing person. Her name was “Information Please” and there was nothing she did not know. Information Please could supply anyone's number and the correct time.
My personal experience with the genie-in-a-bottle came one day while my mother was visiting a neighbor. Amusing myself at the tool bench in the basement, I whacked my finger with a hammer, the pain was terrible, but there seemed no point in crying because there was no one home to give sympathy. I walked around the house sucking my throbbing finger, finally arriving at the stairway. The telephone. Quickly, I ran for the footstool in the parlor and dragged it to the landing. Climbing up, I unhooked the receiver in the parlor and held it to my ear. “Information, please” I said into the mouthpiece just above my head.
A click or two and a small clear voice spoke into my ear. “Information.”
“I hurt my finger...” I wailed into the phone, the tears came readily enough now that I had an audience.
“Isn't your mother home?” came the question.
“Nobody's home but me,” I blubbered.
“Are you bleeding?” the voice asked.
“No,” I replied. “I hit my finger with the hammer and it hurts.”
“Can you open the icebox?” she asked.
I said I could.
“Then chip off a little bit of ice and hold it to your finger,” said the voice.
After that, I called “Information Please” for everything. I asked her for help with my geography, and she told me where Philadelphia was. She helped me with my math. She told me my pet chipmunk that I had caught in the park just the day before would eat fruit and nuts.
Then, there was the time Petey, our pet canary, died. I called, “Information Please,” and told her the sad story. She listened, and then said things grown-ups say to soothe a child. But I was not consoled. I asked her, “Why is it that birds should sing so beautifully and bring joy to all families, only to end up as a heap of feathers on the bottom of a cage?”
She must have sensed my deep concern, for she said quietly, “Wayne, always remember that there are other worlds to sing in.”
Somehow I felt better.
Another day I was on the telephone, “Information Please.”
“Information,” said in the now familiar voice. “How do I spell fix?” I asked.
All this took place in a small town in the Pacific Northwest. When I was nine years old, we moved across the country to Boston. I missed my friend very much. “Information Please” belonged in that old wooden box back home and I somehow never thought of trying the shiny new phone that sat on the table in the hall. As I grew into my teens, the memories of those childhood conversations never really left me.
Often, in moments of doubt and perplexity I would recall the serene sense of security I had then. I appreciated now how patient, understanding, and kind she was to have spent her time on a little boy
A few years later, on my way west to college, my plane put down in Seattle. I had about a half-hour or so between planes. I spent 15 minutes or so on the phone with my sister, who lived there now. Then without thinking what I was doing, I dialed my hometown Operator and said, “Information Please.”
Miraculously, I heard the small, clear voice I knew so well. “Information.”
I hadn't planned this, but I heard myself saying, “Could you please tell me how to spell fix?”
There was a long pause. Then came the soft spoken answer, “I guess your finger must have healed by now.”
I laughed, “So it's really you,” I said. “I wonder if you have any idea how much you meant to me during that time?”
I wonder,” she said, “if you know how much your calls meant to me. I never had any children and I used to look forward to your calls.”
I told her how often I had thought of her over the years and I asked if I could call her again when I came back to visit my sister.
“Please do”, she said. “Just ask for Sally.”
Three months later I was back in Seattle. A different voice answered, “Information.” I asked for Sally.
“Are you a friend?” she said.
“Yes, a very old friend,” I answered.
“I'm sorry to have to tell you this,” she said. “Sally had been working part-time the last few years because she was sick. She died five weeks ago.” Before I could hang up she said, “Wait a minute, did you say your name was Wayne?” “Yes.” I answered.
“Well, Sally left a message for you. She wrote it down in case you called. Let me read it to you.”
The note said, “Tell him there are other worlds to sing in. He'll know what I mean.”
I thanked her and hung up. I knew what Sally meant.
Never underestimate the impression you may make on others. Whose life have you touched today?
10:34 AM - Oct. 3, 2006 - comments {0} - post commentNot againAnother school shooting. And another one in Colorado.
We are very familiar with Bailey, Colorado. We have clients that live there. We have friends that live there. We have listed and sold property there. But, in all honesty, it is not a destination location. It's one of those places that you pass through on the way to somewhere else. Oh, it has Bailey Days every summer which is kind of fun and the river running through town is scenic. So why would a nut case choose Bailey to act out his murderous issues?
And who is this guy? A transient apparently. Living out of his Jeep the last few weeks at least. Someone who had lots of guns and apparently not many friends or family members that he was close to.
We were here when Columbine happened. That high school is not far from our home. My husband is also an auctioneer and he did an auction for the victims after that shooting. We ended up listing and selling a home just down the block from one of the Columbine shooters homes. It was a terrible, gut wrenching time.
Now it has happened again. A little further away in distance, but still too close. Any school shooting would be too close. What can we do to stop this? Is there any way to keep the nut cases away from our schools?
We don't have any answers. We only have questions ... and sorrow. 8:24 AM - Oct. 2, 2006 - comments {0} - post commentWatch out for those sugar junkies!OK, I admit it. I am a sugar junkie. I have a sweet tooth. It shows on my waist line and other parts of my anatomy. My day is simply not complete without a sugar fix.
I just read a statistic that states that the average American consumes almost 160 pounds of refined sugar a year. 160 pounds!! That is a 25% increase over the past three decades. I am so glad that I am above average in something...
This same study goes on to indicate that sugar may have addictive properties. Just like alcohol or drugs. So does that mean if sugar is in short supply, we will see an increase in sugar related crime? Will our jails fill up with sugar thieves? Will we have to appoint a Sugar Czar to cope with the crisis? Will there be an embargo on imported sugar?
Join me in stopping this insanity before it starts. Encourage others to stop consuming sugar. That way there will be more for us.... 12:07 PM - Oct. 1, 2006 - comments {0} - post comment |
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