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My wife has a favorite saying, “Move is a 4-letter word!” Why in the world would someone purposely decide to compress their entire life into a stream of boxes and then carry all those boxes somewhere else? So from that starting point we have come to the conclusion that we are outgrowing our 2-bedroom condominium in Denver, Colorado. It is time to start looking for a housing upgrade, taking those steps to define our wants, search the desired neighborhoods, and determine how much money is available as cash and financing.

As an Accredited Buyers Representative (ABR), a full-time real estate agent who works exclusively with Buyers, this is a great opportunity to get into the perspective of my clients. As a licensed Realtor, I am very familiar with the multitude of steps involved in the purchase or sale of real estate, and I guide people through it every week. As a Buyer looking to run the gauntlet, it is a very daunting task full of tough decisions, possible missteps, and potentially positive gains, financially and in family style.

My wife and I each have roles in this job of finding our new home. Mine is to search the available market, preview the properties with potential for us, and finally to present to her only those homes deemed acceptable. We are looking for a location that supports a lifestyle not entirely reliant on the automobile. We have focused our attention on Old Town Littleton, Colorado. It is an established neighborhood with mature trees, large parks, and a business district offering restaurants and bars, galleries, and other commercial options. There is also a Light Rail station immediately adjacent to downtown with easy access to downtown Denver. Stay tuned for the rest of the adventure . . .

Regulators are coming up with a proposal that will change some rules regarding appraisals as part of a settlement agreement between the Attorney General of New York, Fannie Mae, and the Office of Federal Housing Enterprise Oversight (OFHEO).  Although these “rules” will not become Federal Law, or Regulation, they will basically have the same effect.

Some highlights of issues that will negatively impact consumers are:

• Real Estate Brokers and Lenders will not be able to give an appraiser any old appraisals, helpful data, or any other estimate of what a home might be worth.
• Real Estate Brokers and Lenders will not be able to have any communication with the appraiser during the appraisal process.
• Consumers would not be allowed to request a new appraisal from the lender if they disagree with the appraiser’s opinion.

These are all ridiculous in my opinion! First of all appraisers are not infallible.  In fact, many times they miss great comparables and the ability to provide this “missed” data is crucial to the accurate appraisal process!  Second, and most importantly, a consumer can not question the authority of some appraiser?  This is total garbage!   There must be some kind of check and balance to prevent an incompetent appraiser from wreaking havoc upon a defenseless seller.  Can you smell lawsuit?

Who will the appraiser be accountable to?  If the mortgage broker, real estate broker, and seller can not speak to the appraiser there is going to be trouble in River City, with a capital T!

This is a complete over-reaction to the FRAUD of a few corrupt mortgage broker’s, real estate agents, and APPRAISERS! Yes, the appraiser was as much to blame on any of these transactions, if not more, than anyone else.  The appraiser’s excuse seems to be that they were pressured by the big bad real estate brokers and lenders. Bull!   So, rather than hold some bad appraisers accountable for their valuations, we want to tell everyone to just leave them alone and trust they are competent professionals.  I think it’s already been proven that some, in fact, are not!  If a qualified, professional appraiser believes one thing, it doesn’t matter how much pressure I’ve ever tried to exude, the valuation stayed the same. (In an effort for full disclosure, whenever an appraisal comes in low, and it affects a seller client of mine, I will go to the mat trying to persuade an appraiser to see our side of the story, and raise the valuation.)

It smells bad to me.  What do you think?

Today from the Rocky Mountain News

Denver home prices fell 5.5 percent over the 12-month period that ended in February, which is less than half the 12.7 percent drop from 20 cities in the much-watched S&P/Case-Shiller National U.S. Home Price Index. View article…

Once again, as we’ve commented here many times, we may not be the ugliest kid at the party!

Men dressed as pigs frolicked outside the annual meeting of Richmond American Homes in Denver this morning, drawing attention to the role they say corporate home builders played in creating the mortgage and foreclosure crises. View article…

This one cracks me up! Let’s dress up as pigs, and frolick outside a builder’s place of business! This will teach them to sell homes to people who don’t take any personal responsibility for their finances.

The number of U.S. homes heading toward foreclosure more than doubled in the first quarter from a year earlier. View article…

I think this means the flood waters of foreclosure are cresting. Now let’s start getting back to figuring out who is going to scoop up these great deals!

What are your thoughts on these articles?

In terms of Denver, Colorado Real Estate, there may be a new definition to “Buyer’s Market.” 

The typical definition of a “Buyer’s Market” is one that says the conditions of the market place are more favorable to the buyer than the seller.  With the number of foreclosures still hitting the market, the mass amounts of publicity to the nationwide Mortgage Fiasco and the potential long term implications it is causing, it is easy to fall into the “trap.”

Unfortunately, many homebuyer’s in the Denver area are getting a not so pleasant wake up call.  My team has two separate clients that are thinking that Buyer’s Market equates to Bidding War! 

Over the past month Client “A” has put in 5 bids on 2 different properties and has yet to have one accepted.  Each time others have outbid them, and we are now in search of a new target. 

Client “B” found a great foreclosure, and could hardly wait to make it their first home.  Not wanting to lose this property, we offered full price, with a small amount credited to the buyer, at closing, for closing costs.  This was a HUD owned property and, the HUD process is such that if your bid is not accepted, you are not notified directly.  Rather the property remains active with HUD, and you can place another bid.  Another bid was placed last Friday, and today we found out that someone else had their bid accepted,  for over asking price.

The market has spoken, and it seems to be saying it wants to be redefined!

You may have seen this in your neighborhood. A “for sale” sign goes up in a yard, and after a long period of time, you notice it’s gone. Thinking that the home sold, you are then surprised to see a new sign go up, “for rent”. As “days on market” figures continue to climb and our economy remains sluggish, this is becoming a very common occurrence. So, why does a seller decide to give up on selling, and rent, instead? Of course, it’s all about money.

I could fill up this blog with horror stories of tenants who skip out without paying, never clean, leave damaged walls and carpets, and turn lovely homes into something inhabitable. Sellers need to think about this when they are making that decision to open their home to strangers. If you can’t get a decent renter, it will cost you more money in the long run. And let’s say you are one of the fortunate ones who find good renters. Isn’t your ultimate goal to sell the home?

As a professional stager, I am starting to see a trend. I have had several sellers contact me to hire my staging services, with a deadline in mind. They tell me that they want the home staged for two or three months and if it doesn’t sell, they plan on renting it out. Fortunately, after the homes have been staged, they sell before that deadline. These are sellers who are making the right decision and having their properties staged, but my main concern is for those who give up and stick the “for rent” sign in the yard without exploring other alternatives. Those sellers need to keep in mind that there will be costs down the road, like repainting and/or re-carpeting, at the least, after the tenants have moved out. Having the home staged now is a less expensive choice, and gets them to their goal that much faster.

So, if your home isn’t selling and you are thinking about renting it, please consider hiring a professional stager, who’s committed to enhancing your home for a quicker and higher sale. Or, you can rent it and find that the tenants have moved out, but left a pot-bellied pig (I told you I had horror stories!)

Here are current mortgage rates for the Denver Metropolitan area. These rates change constantly, so they are subject to change.  I will post new rate information if these figures increase, or decrease dramatically.

Conventional 30 year fixed: 5.75%

FHA 30 year fixed: 5.75%

VA 30 year fixed: 5.75%

5 year interest only arm: 5.75%

Jumbo 30 year fixed: 7.875%

You’ll notice the market is not wanting to play on adjustable rate mortgages, and they are making sure to get a premium for the Jumbo loan programs.

If you have any questions about mortgages, or how to lock in a rate, please contact us at any time.

I wanted to pass along this great article about Colorado Foreclosures from the Rocky Mountain News.

Governor Bill Ritter and Senator Ken Salazar are urging Colorado Homeowners to use the free counseling hotline for those in the danger of Foreclosure.  The hotline connects homeowners with about a dozen nonprofit counseling agencies.  Since October of 2006, it is estimated the hotline has helped approx. 5600 families keep their homes.

Senator Salazar said those who call the hotline have found an 80% success rate in the re-negotiation of their mortgage contract.

To reach the Foreclosure Prevention Hotline, call 1-877-601-HOPE

Are you confused by all the advice you read about how to prepare your home for the market? I have come up with a very simple concept that most everyone can follow. Prepare your home as if you were throwing a party. Think about the steps you take when you entertain, and consider the buyers coming through your home as your party guests. Not into entertaining? Then, think back to a party where you were the guest and your host or hostess made you feel special.

So, how do you want to present your home to your “guests?” It should be clean, of course. Fresh towels should be put out in the bathrooms, and personal items placed out of sight. The everyday clutter like the stack of mail on the entry table, the collection of remote controls on the sofa, the pile of shoes that grows bigger every day, needs to be cleared away. Have you ever arrived at a party and the hostess hung your coat in a closet, and you wonder how she had room for them? She anticipated you arriving with a coat and cleared out a space. That same kind of planning will make your buyers feel comfortable in your home.

What about music? You can’t possibly know what everyone likes, so try to play music that is soft and soothing, and will appeal to the greatest number of tastes. Soft lighting created by table and floor lamps, or indirect lighting are good choices for enhancing the look of your home, and is preferable to the more harsh overhead lighting. There are flameless candles on the market now, which are perfect for creating a welcoming ambience. The enticing smell of something baking always keeps your guests interested, and buyers are no different. Fresh cut flowers are a nice addition, adding a wonderful scent and a touch of elegance.

A successful party is one in which your guests enjoyed your home and hospitality so much they didn’t want to leave. Wouldn’t it be wonderful if buyers felt the same way?

Here are some recently compiled market stats for March 2008. My market area is the South Metro Denver cities, including Denver, Centennial, Greenwood Village, Cherry Hills Village, Englewood, Littleton, and Highlands Ranch.

Big Picture (Covering the Entire Metro Denver Area) The figures are for single family residential properties only, and Do NOT include Condos, Land or Commercial data.

Total Closings for the Month: 2951, Down 11% from 2007, Up 21% from previous month.

Average Days on Market: 109, Down 6.8% from 2007, Down 2% from previous month.

Active Listings: 19,509, No Change from 2007, Up 2.3% from previous month.

Average Sold Price: $274,693, Down 9.1% from 2007, Down 1.5% from previous month.

Absorbtion Rate: 6.5 Months, Down 2% from previous month.

South Suburban Central & South Suburban East MLS Market Areas (This data includes condos, and covers the majority of Greenwood Village, Cherry Hills Village, Englewood, Littleton, Centennial, south Aurora, and un-incorporated Arapahoe County.)

Total Closings for the Month: 126, Down 14.3% from 2007, Down 24.5% from previous month.

Average Days on Market: 93, Down 31.1% from 2007, Down 14.7% from previous month.

Active Listings: 1008, Up 10.6% from 2007, Down 19.7% from previous month.

Average Sold Price: $414,188, Down 14.2% from 2007, Up 3.5% from previous month.

Absorbtion Rate: 7.6 months, Up 32.1% from 2007

The conclusion is, no conclusion! We are receiving mixed messages with this data. Prices are down year to year, but up from last month. Days on the market are down, but absorbtion rates are higher. Properties are still being sold, and in the South Metro Denver area, they are selling quicker, than last year!

My opinion is we won’t know much more about the market until we’ve hit our summer stride. At that point, the numbers should start giving us an indication on where we are headed!

Click Here to download the full report in .pdf format. March MLS Stats

Yearly reviews are a great way to keep on track with your financial goals. You’re probably already meeting with your financial advisor and other asset manager for quarterly or annual reviews, and you should do the same with your Mortgage Planner as well. An annual mortgage check-up is an ideal way to make sure your mortgage is still having the maximum positive impact on your overall financial plan.

A lot can happen in one year. The market can take turns that can open up new opportunities, such as reduced interest rates, new loan products or changes in home values. Furthermore, your personal and financial situation could be mildly to radically different than it was just 12 months prior. Perhaps one or more of the income earners got a raise or lost a job. Maybe you received an inheritance. Even a more…