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Homebuyer Education is essential

I follow a blog from a disgruntled home buyer in the Denver area.  This person bought a home, used a Realtor, and is VERY unhappy with the results.

If what is written is true, there would appear to be some shiftiness on their broker’s side, but no huge problems uncommon with home ownership.  The major issues are that there seems to be a whole lot of repairs and maintenance items that these buyers were unaware of and unprepared for.

I follow this blog for the simple reason of training my agents (and myself) of how NOT to provide customer service. The blog writer has caused a public relations nightmare for a very prestigious local company, and it could have all been prevented with better education, honest communication, and the belief that the clients needs are more important than the brokers! I also believe that if the problem was taken care of in a responsible manner, after the fact, the agent could have gained a great client, instead of a real thorn in the side!

The Get Home Denver Team has a very educational approach to the home buying process.  We have an initial consultation with every home buyer, and go over the entire real estate transaction process.  At this time we discuss the potential benefits and responsibilities of home ownership.  We discuss the related costs and financial benefits to owning versus renting.  And finally, we make sure the client fully understands the process, and has no questions.

After the initial consultation, the home buying process begins in earnest.  When looking at homes, there is plenty of “windshield” time driving between properties.  We use this time to go over past experiences, discuss the pros and cons of properties, talk about the importance of home inspections and the critical need of knowing exactly what you’re in for once you own the home.

Knowledge is power! Once you purchase a home, it is your responsibility to maintain the property.  Yes there are costs involved, but an informed consumer will know, and accept those costs BEFORE they close on the home.

The bottom line is to know what you are getting yourself into and make informed decisions. It is your responsibility to make sure you have the information you need, and the choice of a great agent will make that job much simpler!

Note: I have purposely not included a link to the blog of the disgruntled because I think they are being slightly unfair in the characterization of their broker, and taking very little responsibility for the problem.  If you would like the blog link, send me an email (bob at gethomedenver dot com) and I would be happy to respond with the link.

photo credit: jnb photos

Make your home Picture Perfect

A large majority of today’s buyers start their home search on the internet.  What does that mean to you? It means the first impression buyers get of your home could be photos posted online. And, they need to be pretty darn good to make your home stand out.

Would it be safe to say that if the home looks good in person, it will also look good in photos? There are a few things to remember to make the photos of your home the best they can be.

So, if you have a small room, edit the amount of furniture, and make sure what is in there is the proper scale. A large sectional sofa in a small family room is going to eat up even more space in a photo. And, an overly large room will appear even bigger if there is too much empty space.

A pop of color is crucial in photos. They have a tendency to wash out color, so the room you thought was colorful enough, may not photograph that way. The solution can be as simple as adding some colorful throw pillows on a couch, or a vibrant piece of art on the wall.

Light says cheery and dark says dreary! Natural light can cast an appealing glow on your home, so take advantage of it. Open those curtains and blinds, but the best time of day to have your home photographed is early morning or in the evening. The sun is lower, and your photos will be softer with less contrast.

Clutter is even more apparent in photos. It’s hard for buyers to concentrate on the home, when there are hairdryers on the bathroom counters, a collection of remote controls on the coffee table, or a dining room table stacked high with the family’s belongings.

People and pets in photos are a no-no. It may be that Grandpa hasn’t left his recliner in ten years, but his presence in the photo will be too distracting. And kitty needs to be moved off the bed, just long enough for photos to be taken. Be sure to watch out for reflections, too.  Many an unsuspecting agent or homeowner has been caught in a mirror!

Whether your agent takes the photos or a professional photographer is brought in, it is your responsibility to have the home in camera-ready condition. And, since these photos will either entice buyers to see your home or cause them to put your home in the “definitely not” pile, be sure you get to see the photos before they are posted. There are websites dedicated to bad MLS photos, and you wouldn’t want your home to wind up there. It’s the responsibility of you and your agent to make sure your home looks perfect in pictures.

With all the turmoil in the financial and real estate markets, I am constantly striving to provide up to date information and data on what is REALLY going on in the Denver Market.

I’ve found a couple of sources of live, dynamic information that I will provide to you.  I have a new “Market Research” tab on the Top navigation bar.  Click here to see charts that are automatically updated with the latest data available.

Real Estate is local, and without local facts and figures it is easy to get the wrong view of the market place.  Therefore, take a look and make up your own mind.

If you have questions on how to interpret any of the data, please contact me and I’d be happy to explain what all the metrics represent.

In Colorado, it is not a requirement to disclose the knowledge of registered sex offenders near any property for sale. It is the buyers responsibility to do the research and determine if the location of the property is acceptable to them.

So here is a great website to check out who may be living nearby.

http://sor.state.co.us

This is the BEST article I’ve read about the recent demise of some of this countries largest financial institutions.  It is so well researched and written that anything I may add would only detract.  So here it is, in it’s entirety.  Thanks and credit go to Jeff Corbett with Agent Genius!

September 16th, 2008

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Black Monday

Black Monday: The end of the financial world as we know it….

If you watch any of the financial TV shows one would think that we are on the verge of an epic economic implosion… Well, the world didn’t end, though you wouldn’t have known it by watching TV or reading the paper.  Pessimistic, drama laced hyperbole sells newspapers and drives up viewership ratings.  It also confuses people to what the hell is really going on.

Being that AgentGenius is a real estate professional centric community, the natural question is ‘What does this mean to the real estate and mortgage markets?‘

The Bazillion Dollar Question

Long term, that’s a tough question that can’t easily be answered. If I could, I would be a Bazillionaire, own many private islands and wouldn’t be writing this article.

Short-term, it probably means lower interest rates as investors shift their assets out of some huge equity brokerages and into cash and/or more stable bonds.  What are ‘more stable bonds’?  Ironically: Mortgage Backed Securities, especially since the Treasury backed Fannie Mae and Freddie Mac.

However, lower rates do not mean faster, looser underwriting standards and it will probably take longer to close a loan due to the uptick in mortgage applications.  With all the staff cuts in the industry, an uptick in business will bog down most mortgage lending operations. Patience is a virtue that is wisely practiced in today’s market.

Back In The Day

Mortgage qualification has moved to ‘back in the day’, where borrowers

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When you put your home on the market, you are selling more than the physical structure.  Think of it as selling a lifestyle.  This is why preparing your home is so important.  As buyers walk through your home, they are trying to imagine themselves living there.  A savvy seller will help them along the way!

Here are some suggestions to get you started:

One of the ways is to set the dining room table.  The china doesn’t come with the house, so why would you do it?  Because buyers want to believe that if they buy your home they will finally be able to have those fabulous dinner parties they’ve been dreaming about.  You are not trying to deceive buyers; you are just providing a visual to stimulate their imagination.

What do cluttered bathrooms bring to mind? A family rushing

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Major Points

• Fannie and Freddie have been placed in conservatorship. (Federal government has taken 79.9 percent of common stock and all dividends in return for buying $1 billion of preferred shares.)  Top Fannie/Freddie executives have been replaced.)  In return, the Treasury will receive new senior preferred stock and warrants on the GSE’s (Government Sponsored Entitites) common stock.
• Treasury Department says both are open for business with no major changes in operations.
• Fannie/Freddie can grow their guaranteed mortgage book with no limits and grow their retained portfolios with limits. Ultimately, the government plans to shrink their portfolios (10% per year starting in 2010).
• The federal government will provide capital to keep Fannie/Freddie’s net worth positive (up to $100 billion)
• The federal government will begin buying Fannie/Freddie mortgage-backed securities (MBS) on the open market.
• Treasury Department will create a Secured Lending Credit Facility, a liquidity backstop for GSEs

• World markets respond positively to news: stocks up on Monday, September 8, 2008.

• Federal Reserve Chairman Ben Bernanke: “These necessary steps will help to strengthen the U.S. housing market and promote stability in our financial markets.”
• Investor Warren Buffett: “Secretary Paulson has made exactly the right decision for the country.  He is minimizing the problem of moral hazard and maximizing the benefits for the housing market and for the smooth functioning of financial markets.”

The number of homes on the market, in the Denver, area plunged by 20 percent in August from a year earlier, the largest percentage drop in five years.

According to data from Metrolist, there were 24,648 unsold homes on the market last month, compared with 30,827 in August 2007.

This is very good news and reflects what we’ve been seeing also.  Home choices are not what they were 6 months ago.  However, there are still many options for those looking to buy right now.

Year to Year pricing is way down for August.  Both the median and average prices of single-family homes sold last month showed double-digit percentage drops.

The average price of a single-family home was $284,531, down nearly 14 percent from $329,783 in August 2007.  And the median price of a single-family home was $225,000, down nearly 13 percent from $257,500 in August 2007.

This data is skewed slightly as it takes the entire Denver Metro area into consideration.  There are many parts of town where both average and median prices have actually gone up in the past year.  Additionally, from June to August of this year, prices have been on the rise.

This is another indicator that the market is at, or near bottom.  Contact us if you have any questions, or would like further information.

We’ve been getting many questions on the Fannie Mae/Freddie Mac seizures by the U.S. Government.  Here is some information to help get your arms around the situation.

This from the Wall Street Journal

U.S. Seizes Mortgage Giants

Government Ousts CEOs of Fannie, Freddie;
Promises Up to $200 Billion in Capital
By JAMES R. HAGERTY, RUTH SIMON and DAMIAN PALETTA
September 8, 2008 11:31 a.m.

In its most dramatic market intervention in years, the U.S. government seized two of the nation’s largest financial companies, taking direct responsibility for firms that provide funding for around three-quarters of new home mortgages.

Treasury Secretary Henry Paulson announced plans Sunday to take control of troubled mortgage giants Fannie Mae and Freddie Mac and replace the companies’ chief executives.
Mr. Paulson on Monday said in a CNBC interview that the government’s takeover was necessary, but it was “not something I wanted to do.” …

The Treasury will acquire $1 billion of

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