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Get ‘em while there hot people!  Mortgage Rates are down to 5.375% for a 30 year fixed!

Contact us today, and we’ll help you get locked in to this great rate!

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How does making an inquiry on your Credit Report effect your credit score???

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When a consumer pulls their own credit report, it is considered a “consumer disclosure” request and therefore their credit scores will not be impacted by the pull.  However, anytime a creditor accesses a consumer’s credit report it posts a credit inquiry. The credit report keeps a record of who pulled the credit report and on what date.  The credit bureaus are required to keep a complete list of all inquiries into a credit report for, in most cases, 24 months.  According to credit scoring research, consumers who are actively shopping for credit are higher credit risks than consumers who are not.  Since there is a correlation between shopping for credit and being a higher credit risk, an inquiry will, in some cases, lower a consumer’s credit score.

FICO scoring models have logic built into them that addresses “rate” shopping for auto and mortgage lending.  The models are smart enough to discriminate between comparison-shopping for the best interest rate and trying to open many credit accounts in a short period.

While the actual number of points that an inquiry is worth is a closely guarded secret, it is safe to say that only consumers who are “excessively” shopping for credit are seriously damaging their scores.  Consumers should shop and apply for credit only when they need it and, optimally, only after getting their credit and scores in good order.

This is a great topic for discussion, so please leave your comments and questions below.  Hopefully, this can be a learning experience for us all!

The number of unsold homes in the Denver area continues to decline. In October there were 23,120 homes on the market, a 20.1% drop from 2007!  Inventory hasn’t been this low since January 2005, when there was slightly less than 21,000 homes available.

One of the primary reasons for the lessening inventory is the fact that would be home sellers, are not putting their homes on the market given the current conditions.  Many sellers we work with are choosing to be landlords, or just sit tight until the competition from bank owned properties subsides.  Unfortunately, they may have to wait a while.  I predict the REO properties will continue to dominate our landscape for the next 6-9 months.

Another reason for the smaller inventory numbers is that we’ve seen investor money start to pour in.  There has been 3 occassions in the past month where Get Home Denver Team clients, have lost buying opportunities due to bids on properties we identified.  These multiple offer scenarios are a good sign that this market is on the rebound!

There are some really good deals out there, and investors are starting to gobble them up!  We scour the market on a daily basis, and present these deals to our clients.  If you would like to be included on these deals, simply contact us and I’ll make sure you are receiving this info!

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The First Time Buyer….

• They have an opportunity to buy homes today that don’t have inflated values…
• They don’t have to wait for their home to sell…
• They have sellers willing to pay their closing costs and buy-down already low interest rates….
• They are in the first “Buyers” Market in nearly 8 years….
• They have the largest selection of homes in 15 years…..
• The current down turn in pricing will allow them to buy homes in neighborhoods that were out of their reach 2 years ago…
• They can get that extra bedroom or bath or garage…
• They can still buy a home with 3% down, a job, and reasonable (not perfect) credit through FHA..
• If rates go dramatically lower …FHA has a streamlined refinance program that doesn’t require re-qualification of the buyer…..
• If they buy before July 9, 2009 they are eligible for a $7500 tax credit
• If they buy before Dec 31 2008 they will get that back with their 2008 return

This is a life changing opportunity……

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HomeVestors of America Inc. ranked Denver No. 6 on its list of top 10 markets for residential real estate investing in the third quarter…

Based on HomeVestors data, the best U.S. markets for home sales, in order, are:

(1.) Dallas
(2.) Houston, Texas
(3.) Fort Worth, Texas
(4.) Atlanta, Georgia
(5.) San Antonio, Texas
(6.) Denver, Colorado
(7.) St. Louis, Missouri
(8.) Philadelphia, Pennsylvania
(9.) Milwaukee, Wisconsin
(10.) Richmond, Va.

Based in Dallas, HomeVestors was started in 1996 and now has more than 230 franchisees in 35 states. The company’s slogan is “We Buy Ugly Houses.”  Franchise Brands LLC of Connecticut became majority owner of HomeVestors in June 2008, acquiring 62 percent of it.

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The next 45 days will tell us a lot about the state of the State.  Or, more precisely the state of the Denver area in terms of the real estate market.

A quick historical overview.

• The Denver Real Estate market started to flatten out in 2001.  15% annual appreciation slowed to less than 6%.
• The Denver Real Estate market had very little appreciation from 2003-2005
• From 2005-2007 the Denver market dropped at a fairly steady pace.  Prices corrected over this time by over 15%
• From March 2008 to September 2008 the Denver Real Estate market appreciated, or stayed even, each month.

Analysis of 2008

I’ve been saying since January of 2008 that the Denver Real Estate market was on the mend.  We had hit bottom, and were ready for the eventual upswing.

In February 2008, we were finding many GREAT values for investor clients to purchase.  Values of homes that were 20%-30% below that of 2005.  Today, these deals are few and far between!  There are still some great deals to be had, but the weeding out process is much more difficult, and the competition stiff.

The recovery process has been slower than I anticipated, but the numbers are bearing out this prediction.  The Denver Real Estate market has been bouncing off the bottom for 7 months, and the upswing is near.  Or, is it?

The past 2-3 weeks have seen a dramatic DECREASE in activity. Historically the Real Estate Market takes a breath before an Election, and the gravity of this Election, along with the National Economy and the woes of Wall Street, have inflated the problem.  There is a definitely a “Wait and See” attitude in the buyer population right now.

So, in my opinion, the next 45 days will tell us everything about this market that we will need to know. The election will be behind us, and the country, along with consumer confidence, will no longer need to worry about the leader of the free world for the next four years.  Americans can get back to work, and back to living.  And, we can all move on from the uncertainty, fearmongering, and mudslinging that comes standard with Presidential Elections.

I think we will see the months of November, December and January be some of the best months for home sales in many years (compared to the same months in years past.)

The reason for this is there is HUGE pent-up demand from home buyers. There are 1000’s of first time home buyers in the market with month to month leases, looking for the right opportunity to jump into the market.  There are 1000’s of people, who have a home to sell, that would love to buy up, or buy down, and take advantage of the depressed pricing.  This group has been sidelined because they have been unable to sell their current property for what they believe it is worth.  These people are looking to VOLUNTARILY move, and as such, have decided to “wait it out” rather than take the necessary beating to sell over the past year.

If I’m wrong, and the next 45 days don’t show any improvement, it’s my fear that we will be looking at late spring, early summer to see the rebound begin in earnest.

So let’s get this Election over with already!

What do you think?  Do you believe the Denver market is ready to rise?  How about Nationally?

photo credit: Ricardo Carreon

For Denver area Real Estate, the number of unsold homes in September dropped to the lowest level since December 2005 and the number of homes placed under contract jumped almost 22 percent from September 2007, the best September for sales in three years.

The average and median sale prices of homes, meanwhile, have fallen back to 2002 levels.

Certainly we’re not out of the woods yet, but this data continues to confirm our belief that the end of this down cycle is near!  My 17 years of experience have been telling me for months that we are in recovery mode.  Since March of this year, the Denver market has actually seen appreciation.  Less than 1%, but it’s certainly better than depreciating at 3%-5% per month like some other markets!

Invest in Denver Area Real Estate?

Since the beginning of the year we’ve been telling our clients that now is the time to start investing in Denver area real estate.  Here are some of the past articles.

• The Rich Get Richer
• Investment Trends

Some things to consider

• Prices are 10%-25% lower currently than they were last year.  This equates to the market, in general, being “On Sale”
• The Denver market has appreciated every month since March this year.  This tells me that the “Sale” is over, or will be very soon!

We have been advising clients based on our 18 years of experience in the market.  There have been numerous people take advantage of the bargain pricing, but I fear many of our clients will be left telling themselves, “I wish I would have bought properties during the housing crisis of 2007-2008!”

So in an attempt to move the weary off the fence a bit, I wanted to share with you some thoughts from the pre-eminent investor in US history, Warren Buffett.  Mr. Buffett, through his investment company Berkshire Hathaway, own real estate companies and continue to acquire more real estate assets based on the current “opportunities” in the real estate markets.

Quotes From Warren Buffett

I will tell you how to become rich. Close the doors. Be fearful when others are greedy and greedy when others are fearful.
Lecturing to a group of students at Columbia U. He was 21 years old.

The most common cause of low prices is pessimism - some times pervasive, some times specific to a company or industry. We want to do business in such an environment, not because we like pessimism but because we like the prices it produces. It’s optimism that is the enemy of the rational buyer.
1990 Chairman’s Letter to Shareholders

We will reject interesting opportunities rather than over-leverage our balance sheet.
Berkshire Hathaway Owners Manual

Managers thinking about accounting issues should never forget one of Abraham Lincoln’s favorite riddles: `How many legs does a dog have if you call his tail a leg?’ The answer: `Four, because calling a tail a leg does not make it a leg’.

Tell us what you think.  Do you believe that this is a good time to be a buyer in the real estate market, and if not, why?

photo credit: trackrecord

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

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