Short sales has become synonomous to some 4-letter words in the English language. But this may soon be changing. The federal government is backing a new directive which should speed up the usually crucially slow and stressful process of a 'short' sale. It's also offering the seller $1500! Read the details below!
HAFA Details
Monday, April 19, 2010
Tuesday, March 23, 2010
Monday, March 8, 2010
Thursday, February 25, 2010
Short Sales EVERYWHERE in Metro Denver
Right now there are over 500 active short sale listings in Denver alone. There are over 400 in Aurora. And hundreds more all around Metro Denver. Each week in Metro Denver alone there are 600-700 new filings of home-owners who are in default of their mortgage. We've all heard about short sales and know the major reasons for them: bad loans (adjustable rates, refinances, stated-income qualifications, etc.), drop in values, and financial hardships of the sellers.
(To understand what a short sale is, click here)
But many people don't know that short sales can be a major win-win situation for them - either as sellers of their own home, or as buyers. If you own a house that you can no longer afford because of financial hardships, you should NOT be scared or ashamed to look into the possibility of selling it as a short sale. If you have a legitimate hardship, you can sell your home as a short sale, AND possibly get the entire deficiency amount forgiven by the bank. It is a much better option than foreclosing.
On the buyer's side, IF you have the time and patience of a 3-7 month bank-approval process, you will enjoy a home with lots of equity at an under market-value price.
Call me if you are considering a short sale. We have an entire team that will help you through every step of the process.
Is a Short Sale Right for You?
(To understand what a short sale is, click here)
But many people don't know that short sales can be a major win-win situation for them - either as sellers of their own home, or as buyers. If you own a house that you can no longer afford because of financial hardships, you should NOT be scared or ashamed to look into the possibility of selling it as a short sale. If you have a legitimate hardship, you can sell your home as a short sale, AND possibly get the entire deficiency amount forgiven by the bank. It is a much better option than foreclosing.
On the buyer's side, IF you have the time and patience of a 3-7 month bank-approval process, you will enjoy a home with lots of equity at an under market-value price.
Call me if you are considering a short sale. We have an entire team that will help you through every step of the process.
Is a Short Sale Right for You?
Friday, February 12, 2010
January 2010 Denver Market Statistics
Prices in January of 2010 vs. 2009 continue to show the trend upwards, as they did in December. Average sold price out of the 1,841 single-family home closings in January 2010 was $260,530, $30,000 higher than the average sold price in January of '09, which was $230,878. This is a great trend for Denver and continues to show that prices are giong up all over the board (exceptions are Broomfield, Douglas, Lafayette, and snippets of Jefferson County North Central).
Total MLS Stats
All MLS Stats
Total MLS Stats
All MLS Stats
Wednesday, February 10, 2010
North Aurora - Competition and Appreciation
North Aurora has experienced appreciation over the last year. As youll see, many neighborhoods are green (appreciation), and months of inventory are very low. Many investors tell me how difficult it is to get a property even under $100K in North Aurora, especially because it's still a highly sought after area for cash-flow and a solid rental.
What was selling easily for $65,000 in 2007 now you couldnt get for $100,000 (and in 2003-05 was $150,000). But Aurora is still a safe and cheaper place to invest in Denver. It has Fitzsimmons to the East, Lowry to the West, Stapleton to the North, and South Aurora just south. Investors continue to try to get a hold of properties here.
Tuesday, January 19, 2010
December '09 Sold Prices Sky-Rocket over Dec '08 in Denver
Houses sold just last month sold at an average price of 17% higher than prices last December of '08 (from $240,900 to $281,700). This is yet more evidence that Denver, unlike other cities in the nation, is way passed bottom.
Some neighborhoods did even better than this, such as Denver Northeast and Southeast. Denver Northeast sold at 33% higher December of '09 than December of '08! And Denver Southeast sold at 22.4% higher. Denver Southwest was even higher at 24.7%!
These are significant numbers. That 22% in Denver Southeast actually means houses are selling for $80,000 MORE this December than last December! And thats 175 sales in Dec '09 vs 168 in Dec '08, so if anything Dec '09 is a more precise average with the more number of sales. Who says prices are still going down in Denver? These numbers are all across the board except for Broomfield(down 9% Dec '09 vs Dec '08) and Brighton(-2.8%).
Click here for MLS All Area Stats for December '09
Some neighborhoods did even better than this, such as Denver Northeast and Southeast. Denver Northeast sold at 33% higher December of '09 than December of '08! And Denver Southeast sold at 22.4% higher. Denver Southwest was even higher at 24.7%!
These are significant numbers. That 22% in Denver Southeast actually means houses are selling for $80,000 MORE this December than last December! And thats 175 sales in Dec '09 vs 168 in Dec '08, so if anything Dec '09 is a more precise average with the more number of sales. Who says prices are still going down in Denver? These numbers are all across the board except for Broomfield(down 9% Dec '09 vs Dec '08) and Brighton(-2.8%).
Click here for MLS All Area Stats for December '09
2010 Denver Price Change Map!!
Here is the 4th Quarter '09 Denver neighborhood price change map. Not only does it show you average home price changes from the most recent 12 months to the previous 12 months (per neighborhood), along with the average days on market per neighborhood, it also shows you the number of solds, number of active short sales(which can significantly drive down average sold prices), and months of inventory per neighborhood. A good measure for months of inventory is 6 months: below 6 months usually means seller's have the advantage (less inventory, more competition), and above 6 months usually means a buyer's market (more inventory, more leverage for the buyer). Notice that many of the neighborhoods are below 6 months of inventory, meaning a SELLER'S, not buyer's, market.
Give me a call if you'd like to see different area maps! 720.987.8998
Thursday, November 12, 2009
October Market Stats: '09 Better than '08
October 2009 surprisingly (or not so surprisingly, depending on how much you want to blame the tax credit expiring) outperformed October 2008 in average sold prices being higher ($261,771 in '09 up from $250,172 in '08) AND the better absorption rate (4.9 months in '09 vs. 5.5 months in '08). Although there were a bit more than 300 more closings in October of '08, there were also over 3,500 more listings in '08, making for much more choice and much less competition (it's competitive today, believe it or not!).
Check out the stats:
Thursday, November 5, 2009
Tax Credit is EXTENDED!!
To: All REALTORS® Date: November 5, 2009 Dear Fellow REALTOR®, I am VERY excited to report that Congress has answered our call to extend and expand the homebuyer tax credit!
Both the House and the Senate have passed an unemployment insurance bill, which includes an amendment that expands and extends the tax credit. That bill will be sent to President Obama for his signature in the next day or so.
I have recorded a special edition of my President’s Podcast, with details on the new tax credit and when it takes effect. Please take just a couple of minutes to listen.
We also have posted a comparison chart on Realtor.org. This can be a helpful resource as you work with buyers to take advantage of the credit in the months ahead.
On behalf of NAR, I thank you all for your participation in our advocacy efforts on this issue. Not only did we set a new record on responses to Calls for Action, but we helped move another step closer to a brighter future for America’s families and our economy.
Sincerely,
Charles McMillan, CIPS, GRI | |
Friday, October 30, 2009
The news is misleading! Tax Credit Extension – the real status
My friend just posted this:
Friends,
I found the news reports to be a little confusing regarding the agreed continuation and modification of the first-time homebuyer tax credit, so I contacted NAR (National Association of Realtors) to get clarification.
Here are the results of my conversation with Linda Goold. Linda Goold serves as the Director of Federal Tax Programs for the National Association of REALTORS® and works for the NAR in Washington, DC. She is an advocate for NAR tax policies that protect and enhance ownership and investment in both residential and commercial real estate.
I’m paraphrasing her comments:
The current news reports are misleading. Senate has agreed to the content of the home buyer tax credit extension with some modifications, BUT senate has not taken vote on final passage. It will be GOING UP FOR VOTE MONDAY EVENING at 5:30pm. Then it will have to go back to the house, but expectation is that the House will take it up the next day and approve it without amendment, and then it will go to the President.
When I asked how long it might take to go before the President, Linda said that sometimes it takes a while, and sometimes it will occur the next day – it has to be printed on parchment and go through an administrative process. This bill extension of home buyer tax credit is included in an extension of unemployment insurance benefits, which Linda says she has “to think the president will want to sign it as soon as possible. Hopefully it’ll be accomplished a week from now, but no guarantees.”
Aaron Lebovic
http://aaronlebovic.wordpress.com/2009/10/30/the-news-is-misleading-home-buyer-tax-credit-extension-the-real-status/
Friends,
I found the news reports to be a little confusing regarding the agreed continuation and modification of the first-time homebuyer tax credit, so I contacted NAR (National Association of Realtors) to get clarification.
Here are the results of my conversation with Linda Goold. Linda Goold serves as the Director of Federal Tax Programs for the National Association of REALTORS® and works for the NAR in Washington, DC. She is an advocate for NAR tax policies that protect and enhance ownership and investment in both residential and commercial real estate.
I’m paraphrasing her comments:
The current news reports are misleading. Senate has agreed to the content of the home buyer tax credit extension with some modifications, BUT senate has not taken vote on final passage. It will be GOING UP FOR VOTE MONDAY EVENING at 5:30pm. Then it will have to go back to the house, but expectation is that the House will take it up the next day and approve it without amendment, and then it will go to the President.
When I asked how long it might take to go before the President, Linda said that sometimes it takes a while, and sometimes it will occur the next day – it has to be printed on parchment and go through an administrative process. This bill extension of home buyer tax credit is included in an extension of unemployment insurance benefits, which Linda says she has “to think the president will want to sign it as soon as possible. Hopefully it’ll be accomplished a week from now, but no guarantees.”
Aaron Lebovic
http://aaronlebovic.wordpress.com/2009/10/30/the-news-is-misleading-home-buyer-tax-credit-extension-the-real-status/
Monday, September 28, 2009
Thursday, September 24, 2009
Thursday, September 10, 2009
Denver Foreclosures are Plummeting
The number of distress sales, however, continues to plummet. Since were selling, relatively, more Cadillacs and fewer Chevys, it’s driving up our average price. The number of distress sales in August matched the 2007 sales level.
Average Home Prices going....up!
Continuing the great trend from July, the average home price in August was a little higher in 2009 than it was in 2008.
Thursday, August 27, 2009
Wednesday, August 12, 2009
Top 20 Cities for Young Professionals: Denver in Top 5
Denver ranked high in "Next Cities" rankings - the best places to live and work for young professionals. The study, conducted by Next Generation Consulting (NGC), tabulated the rankings after collecting and analyzing 45 measures for all U.S. cities with over 100,000 people.
"Simply being the cheapest place to live, or the city with the most jobs is not a long-term workforce strategy," says NGCs founder, Rebecca Ryan. Although jobs are important, Ryan says, "The next generation is very savvy about choosing where they'll live. They look carefully at quality of life factors like how much time they're going to spend in traffic commuting, if they can live near a park or hike-and-bike trail, and whether a city's downtown stays awake after five." The Next Cities list ranks cities that are - or have the capacity to be - great places to live and work for the next generation, because they have the best overall score in the seven indexes the next gen values.
"Simply being the cheapest place to live, or the city with the most jobs is not a long-term workforce strategy," says NGCs founder, Rebecca Ryan. Although jobs are important, Ryan says, "The next generation is very savvy about choosing where they'll live. They look carefully at quality of life factors like how much time they're going to spend in traffic commuting, if they can live near a park or hike-and-bike trail, and whether a city's downtown stays awake after five." The Next Cities list ranks cities that are - or have the capacity to be - great places to live and work for the next generation, because they have the best overall score in the seven indexes the next gen values.
Super Cities for Young Professionals with Population over 500,000
1. San Francisco, California
2. Seattle, Washington
3. Boston, Massachusetts
4. Washington, District of Columbia
5. Denver, Colorado
6. Austin, Texas
7. Baltimore, Maryland
8. Portland, Oregon
9. New York City, New York
10. Columbus, Ohio
11. Milwaukee, Wisconsin
12. Charlotte, North Carolina
13. Chicago, Illinois
14. Nashville, Tennessee
15. Jacksonville, Florida
16. Tucson, Arizona
17. San Antonio, Texas
18. Los Angeles, California
19. San Diego, California
20. Houston, Texas
2. Seattle, Washington
3. Boston, Massachusetts
4. Washington, District of Columbia
5. Denver, Colorado
6. Austin, Texas
7. Baltimore, Maryland
8. Portland, Oregon
9. New York City, New York
10. Columbus, Ohio
11. Milwaukee, Wisconsin
12. Charlotte, North Carolina
13. Chicago, Illinois
14. Nashville, Tennessee
15. Jacksonville, Florida
16. Tucson, Arizona
17. San Antonio, Texas
18. Los Angeles, California
19. San Diego, California
20. Houston, Texas
Tuesday, August 4, 2009
Trends
We noticed that the average sales price iS region AUN (Aurora North) and DSW (Southwest Denver) increased in June. After significant declines in 2006 and 2007, prices were generally stable in 2008. Prices are now edging upwards in these distressed areas!
Monday, August 3, 2009
Wednesday, July 29, 2009
Tuesday, July 28, 2009
Denver Home Prices Up a 3rd Month
Denver Business Journal - by Mark Harden
Home prices in Denver rose in May for the third consecutive month, and the city scored the second-lowest year-over-year price decline of the 20 cities included in Standard & Poor's closely watched S&P/Case-Shiller Home Prices Index.
Released Tuesday, the index reveals how 20 cities are faring as the economy continues to batter the residential market.
Home prices in Denver rose 1.3 percent in May from the previous month, according to the index report. That follows a 1.5 percent rise in April and a 0.1 percent gain in March.
Denver prices fell by 1.7 percent in February and 2.7 percent in January.
Among the 20 cities in the S&P/Case-Shiller index, Cleveland saw by far the greatest month-to-month home price rise in May, 4.1 percent, followed by Dallas (1.9 percent) and Boston (1.6 percent). Denver was tied for the fifth-highest month-to-month price increase in May.
The greatest month-to-month price decline among the 20 cities was in Las Vegas (down 2.6 percent).
Denver home prices fell 4.6 percent in May from the same month in 2008, the index shows.
That's the second-smallest drop of the 20 cities in the index, bested only by Dallas' 4.1 percent year-over-year decline. Boston was No. 3 with a decline of 7.2 percent.
At the other extreme, home prices plummeted 34.2 percent in Phoenix between May 2008 and May 2009, the index showed. Other big year-over-year losers were Las Vegas (32 percent), San Francisco (26.1 percent) and Miami (25.2 percent).
The 20-city composite index shows home prices were up an average 0.5 percent in May from the previous month, and down 17.1 percent since May 2008.
Nationwide, "the pace of descent in home price values appears to be slowing, ... [but] we likely do have a way to go before we see sustained home price appreciation," David Blitzer, chairman of the Index Committee at Standard & Poor’s, said in a statement.
The index is compiled by comparing matched-price pairs for thousands of single-family homes in each market. It is published by Standard & Poor’s and Fiserv Inc.
Click here to download the index in PDF format.
FirstAmerica CoreLogic home-price report, released July 22, also showed Denver outperforming the nation on home prices.
In case you haven't heard...
Forbes: Denver is America’s best city to buy a home
Forbes rankings seem geared more toward each market’s current and future potential as a place to buy a home, since some of the cities at or near the top of the list are among those hardest hit by the recession.
The report ranked the 25 largest U.S. metro areas on the basis of change in price per square foot, frequency of real-estate transactions, and how evenly distributed home-sales activity is in a metro area.
“Denver tops the list,” Forbes said. “It had 25 percent of its property sales occur within approximately 25 percent of the city’s ZIP codes. This means sales in various parts of the city were fairly evenly distributed, showing proportionate activity. The further a city deviates from the 25 percent mark, the less evenly distributed the market is in that city, and thus the lower that city ranks.”
Forbes also determined that average price per square foot of housing space increased 5.7 percent in Denver between February and March of this year, and that transactions decreased 8.4 percent between March 2008 and March 2009, less of a drop than many cities.
“Denver scores very well in terms of being able to bring people into a stable housing market,” the magazine quoted Moody’s economist Christopher Cornell as saying. “It has better growth potential than most cities today.”
From The Denver Business Journal http://denver.bizjournals.com/denver/stories/2009/06/22/daily46.html
Monday, July 27, 2009
De-Mystifying the Home Buying Process
Buying a house can be an overwhelming, and even exhausting process. I want to make it as easy as possible for you so that you have a headache-free, and even fun experience! These are the 9 steps we'll follow to ensure you have a smooth and enjoyable purchase:
Your Home-Buying Process Step-by-Step!
1) Needs Analysis: You’ll fill out a Home Preference Profile to help me understand both your wants and your needs, and to help you get a clearer picture of the perfect home for you.
2) Pre-Approval: You’ll then get pre-approved by a recommended loan officer who will use your credit and qualification status.
3) Target Neighborhood Information: I'll create a broad neighborhood search profile matching your desired area and price-range using my Your Castle tools.
4) Home Search: I’ll run a search according to your criteria, and you will select the available homes of your interest and we will set up a time to take a tour to see them. Before we go on tour, we’ll have to sign the Buyer-Agency contract to make our agency-relationship explicit.
5) Make an Offer: I’ll run comps on the home(s) that you like and are ready to write an offer on to get an idea of what the neighborhood is selling for. I will write the offer contract for you, and advise you on the terms and numbers for the offer. You’ll sign the offer, and I’ll present it to the listing agent.
6) Negotiation: If they submit a counter-proposal, I’ll present it to you and advise you on what I think, and you can either accept it or make a counter-proposal.
7) Under Contract: I’ll guide you through all the dates & deadlines of the contract (title, inspection, appraisal, survey, loan conditions deadline, etc.) and recommend trusted vendors like an inspector, sewer scoper, etc., and make sure things run as smoothly as possible! If something is seriously wrong with the house that comes out in the inspection for example, you will be able to exit the contract and get your earnest money back.
8) Pre-Closing: We’ll be in touch with the loan officer and make sure everything is approved for the loan, and all documents are prepared and any monies are ready for closing.
9) Closing: Congrats! Sign the papers and move into your new home!!!
Friday, July 24, 2009
$8,000 Tax Credit
Our own Charles Roberts talking about the $8,000 First-Time Home Buyers Tax Credit on 7News.
Wednesday, July 22, 2009
Facing Short Sales as a Buyer: Fight or Flight?
I'm currently working with quite a few buyers that are becoming rather frustrated with the amount of deals they like that end up being short sales. In this ever-changing market, adaptability is key for success. And right now, being able to adapt to short sales can provide a good discount and a good buy...IF (and I cannot over-emphasize this!), IF you have the time and patience.
*The only way a Buyer can really understand why a short sale is so long a complicated, you'll first have to understand what the Seller has to go through (see below).
What is a Short Sale?
- Put simply, a short sale happens when the bank approves the sale of a home for less than what is owed to the bank.
- By accepting a short sale, the lender can avoid a lengthy and costly foreclosure, and the owner is able to pay off the loan for less than what he owes. Short sales can be a win-win for everyone.
What causes a Short Sale?
- 1) The Home's market value has dropped, being less than what is due on the loan
- 2) The mortgage is in or near default or late status
- 3) The Seller has a legitamate hardship: unemployment, divorce, medical emergency, sudden illness, bankruptcy, or death.
3 Stages of the Pre-Foreclosure Process
1. Default (1 to ? Months)
2. Acceleration or Notice of Election or Demand ("The list").
3. Foreclosure (Banks want to avoid this).
3 Keys to a Successful Short Sale (on the Seller side)
- Knowing the proper step-by-step process, depending on the type of loan that you are shorting. The process for shorting an FHA loan is different than the process of shorting a VA or Conventional loan. So knowing the proper steps, and the order of those steps, is critical.
- Knowing what components each of the Lenders require for their Short Sale Package, getting a copy of the Lenders Short Sale Package in a timely manner, and then submitting that Package, in its entirety and in a format that will get the banks attention, meet their requirements and ultimately get you an approval.
- Knowing what the Lenders have to “net” in the Short Sale. All Lenders have a bottom-line amount or percentage that they have to “net” in the transaction. Knowing that net is absolutely imperative for you, the Agent, to know so that you know where to price the property in MLS, so that you generate an offer that will be both quick, but also sufficient to enough to meet the bank’s net requirements, cover all of you clients closing costs, as well as cover all the commissions at closing.
Basic Short Sale Package (for the Seller)
- Authorization to Release Information Form
- Hardship Letter
- Financial Worksheet
- Listing Agreement
- Copies of Tax Returns (last 2 years)
- Copies of All Bank Statements (last 2 months for all borrowers)
- Copies of Pay Stubs (last 2 pay periods for all borrowers)
- Application for Pre-Foreclosure Sale Program (if FHA, HUD Form 90036)
- Homeownership Counseling Form (if FHA, HUD Form 90038)
- Purchase Offer (if there is one yet)
Once all this is filled out, the bank has an offer both seller and Buyer have agreed to, then it's a matter of waiting for the bank's approval. After the bank's approval, everything is smoother.
In short, if you have the time and patience to wait 45-120 days to close on a short sale, knowing that the whole thing could fall apart at any time, then you have the stamina for dealing with short sales (and saving a lot of money in the process). If you need a house soon, and hate waiting for bank responses that take weeks (if not more), stay away from short sales.
If you are thinking about buying a short sale, please let me know, I will guide you through the whole process. Plus you'll get $8000 if you're a first-time home buyer!
Tuesday, July 21, 2009
2nd Quarter 2009 Your Castle Neighborhood Price Change Map is here!
What's your neighborhood doing?
Every neighborhood in Denver and metro is different. Location really does affect everything.
See what your neighborhood is doing on our updated neighborhood price change map not available anywhere else in real estate.
Explanation: the map is color coded according to what neighborhoods are depreciating (red) and which ones are appreciating (green), from comparing the most recent 12 months with the previous 12 months to get an apple-to-apple comp. Also included is the average sold home price, percentage of foreclosures of all sold homes in the last 12 months, & the average days on market for each neighborhood.
Need a map for a different area? Just let me know.
-Only at Your Castle (= very nerdy)
Explanation: the map is color coded according to what neighborhoods are depreciating (red) and which ones are appreciating (green), from comparing the most recent 12 months with the previous 12 months to get an apple-to-apple comp. Also included is the average sold home price, percentage of foreclosures of all sold homes in the last 12 months, & the average days on market for each neighborhood.
Need a map for a different area? Just let me know.
-Only at Your Castle (= very nerdy)
Monday, July 20, 2009
Denver cities Months of Inventory
So, months of inventory is the time it would take to sell all of the homes on the market if the rate of sales in the last year continued at its current pace. 6 months is considered a "balanced market". More expensive homes have more inventory.
City -Average Sales Price-Months of Inventory
Federal Heights-$110,000 -2
Northglenn-$151,000 - 2.8
Commerce City-$149,000-3.4
Aurora- $180,000-3.4
Thornton- $195,000- 3
Wheat Ridge-$235,000-4
Westminster- $235,000-4.2
Denver- $235,000- 4.6
Lakewood-$251,000-4.8
Arvada-$251,000-5
Englewood-$280,000-4.2
Centennial-$300,000-4.3
Littleton- $320,000-5.2
Highlands Ranch-$345,000-4.6
Broomfield- $340,000 -5.7
Morrison- $320,000 -7.3
Parker- $350,000 -6.9
Golden-$415,000- 8.6
Castle Rock-$425,000-11.3
Evergreen-$475,000-14.3
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