tag:blogger.com,1999:blog-1200544621426425842024-03-14T07:38:06.795-06:00RealtorJenn, the Running RealtorInsights, ideas, rants and raves about Running, Real Estate, and navigating the brave, new world of Technology (with a capital T)RealtorJennhttp://www.blogger.com/profile/12721664492463557604noreply@blogger.comBlogger51125tag:blogger.com,1999:blog-120054462142642584.post-76287792683341227262010-09-18T12:28:00.000-06:002010-09-18T12:28:27.838-06:00How To Reduce Home Energy Costs By Sealing Air Leaks<img alt="Air leaks " height="243" src="http://bringtheblog.com/i/air-leaks.jpg" style="border: 1px solid black; float: right; margin-left: 5px; margin-right: 5px;" title="Air leaks " width="220" />With Labor Day past, the autumn and winter months aren't far behind. It's a good time to reflect on your home's heating and cooling costs, and take steps to lower your energy bills. Finding air leaks may be a perfect first project.<br />
According to the U.S. Department of Energy, <a href="http://www.energysavers.gov/your_home/energy_audits/index.cfm/mytopic=11170" target="_blank" title="Home energy audits">up to 30 percent can be cut</a> from a home's energy costs just by reducing drafts. For example, a 1/16-inch gap unsealed gap around a window is equivalent to leaving the window 3 inches open.<br />
That's a lot of wasted Brighton air.<br />
The good news is that air leaks are rather simple to identify, and simple to fix. The key is to know where to look. And, to make the job easier, the government offers a complete <a href="http://www.energystar.gov/index.cfm?c=diy.diy_index" target="_blank" title="DIY Guide Sealing And Insulating Your Home">DIY Guide To Sealing and Insulating</a> a home.<br />
Some of the key tips include:<br />
<ul><li>Focus on the attic and basement, where most air is lost</li>
<li>Locate problem areas on a chimney</li>
<li>Check recessed lights which allow air flow between conditioned and unconditioned air</li>
</ul>The government's website also provides <a href="http://www.energystar.gov/ia/partners/publications/pubdocs/DIY_Guide_May_2008.pdf" target="_blank" title="DIY Guide Sealing And Insulating Your Home">a 13-page PDF with detailed images</a>, instructions, and recommendation to help you with the work.<br />
However, if the job is beyond your skill set, be sure to call a qualified contractor. Sealing your home from air leaks <em>will</em> reduce your monthly energy bill and the money spent to pay a professional will be just a fraction of what you'll save over time.<br />
(<em>Image courtesy: <a href="http://www.energysavers.gov/your_home/energy_audits/index.cfm/mytopic=11170" target="_blank" title="US DOE Website">US Department of Energy</a></em>)RealtorJennhttp://www.blogger.com/profile/12721664492463557604noreply@blogger.com0tag:blogger.com,1999:blog-120054462142642584.post-68424112384896589502010-09-11T13:30:00.000-06:002010-09-11T13:30:03.276-06:00How To Change A Showerhead<object data="http://www.youtube.com/v/fHBaTCKcYPU?fs=1&hl=en_US&rel=0" height="344" type="application/x-shockwave-flash" width="425"> <param name="allowFullScreen" value="true" /><param name="allowscriptaccess" value="always" /><param name="src" value="http://www.youtube.com/v/fHBaTCKcYPU?fs=1&hl=en_US&rel=0" /><param name="allowfullscreen" value="true" /></object> <br />
There's plenty of reasons to want to change a showerhead in your head. Perhaps you're trying to fix a leak in the faucet; or, remodeling your bathroom; or, trying to conserve water via a low-flow showerhead.<br />
Whatever the reason, changing a showerhead can be a basic do-it-yourself project. The tools aren't complicated and the job is a quick one.<br />
In this <a href="http://www.youtube.com/watch?v=fHBaTCKcYPU" target="_blank" title="How to change a showerhead video">2-minute video from AOL</a>, you'll learn:<br />
<ul><li>What tools you'll need to change the showerhead</li>
<li>How to remove your old showerhead</li>
<li>How to firmly attach your new showerhead to prevent leaks</li>
</ul>If you get stuck, or just want to outsource, call a professional handyman to finish the job. Changing a showerhead should take less than a hour to complete.RealtorJennhttp://www.blogger.com/profile/12721664492463557604noreply@blogger.com0tag:blogger.com,1999:blog-120054462142642584.post-39077613317227693612010-08-10T14:08:00.000-06:002010-08-10T14:08:17.620-06:00The Fed Is Meeting Today. Should You Float Or Lock Your Mortgage Rate?<img alt="Fed Funds Rate June 2007-June 2010" height="302" src="http://bringtheblog.com/i/fed-funds-rate-201006.png" style="border: 1px solid black; float: right; margin-left: 5px; margin-right: 5px;" title="Fed Funds Rate June 2007-June 2010" width="216" />The Federal Open Market Committee holds a one-day meeting today, its <a href="http://www.federalreserve.gov/monetarypolicy/fomccalendars.htm#6274" target="_blank" title="FOMC meeting calendar">fifth scheduled meeting</a> of the year, and sixth overall since January.<br />
The FOMC is the government's monetary policy-setting arm and the group's primary tool for that purpose is an interest rate called the <a href="http://en.wikipedia.org/wiki/Federal_funds_rate" target="_blank" title="Fed Funds Rate on Wikipedia">Fed Funds Rate</a>.<br />
The Fed Funds Rate is the prescribed rate at which banks borrow money from each other and, since December 16, 2008, the Federal Reserve has voted to keep the benchmark rate within a target range of 0.000-0.250 percent.<br />
It's the lowest Fed Funds Rate in history.<br />
Because the Fed Funds Rate is near zero, it's accommodative of economic growth, spurring businesses and consumers to borrow money on the cheap. This, in turn, fosters economic growth within a U.S. economy that is somewhat tentative and facing headwinds.<br />
The Fed has said over and again that it will hold the Fed Funds Rate "<a href="http://www.federalreserve.gov/newsevents/press/monetary/20100623a.htm" target="_blank" title="FOMC Press Release June 2010">exceptionally low</a>" for as long as conditions warrant. It's expect that the Fed will reiterate that message in today's post-meeting press release.<br />
However, just because the Fed Funds Rate won't be changing today, that doesn't mean that <em>mortgage </em>rates won't. Mortgage rates are not set by the Federal Reserve; open markets make mortgage rates.<br />
Mortgage rates in Colorado tend to be volatile when the Fed is meeting. This is because the Fed's press release highlights strengths and weaknesses in the economy and, depending on how Wall Street views those remarks, bond markets can undulate and mortgage rates are based on the price of mortgage-backed bonds.<br />
When Ben Bernanke & Co. speak, Wall Street listens.<br />
The Fed's press release today will be dissected and analyzed. Talk of higher-than-expected inflation, or better-than-expected growth should have a negative effect on rates. Talk of an economic slowdown may help rates to fall.<br />
Either way, we can't be certain what the Fed will say or do this afternoon so if you're floating a rate right now and wondering whether the time is right to lock, the safe choice is to lock before 2:15 PM ET today.RealtorJennhttp://www.blogger.com/profile/12721664492463557604noreply@blogger.com0tag:blogger.com,1999:blog-120054462142642584.post-84066566170529321112010-07-27T07:02:00.002-06:002010-08-10T09:03:06.258-06:00New Homes Sales Gain in June, But Gains Are Relative<img alt="New Home Supply June 2009 - June 2010" height="302" src="http://bringtheblog.com/i/new-homes-supply-201006.png" style="float: right; margin-left: 5px; margin-right: 5px;" title="New Home Supply June 2009 - June 2010" width="216" /><br />
After a down month in May, the sales of newly-built homes appears back on track.<br />
As published by the Census Bureau, June's New Home Sales report showed:<br />
<ol><li>A <a href="http://www.census.gov/const/www/newressalesindex.html" target="_blank" title="New Home Sales report">24 percent sales volume increase</a> from the month prior</li>
<li>A 2-month drop in the supply of newly-built home</li>
</ol>There are now just <a href="http://www.census.gov/const/newressales.pdf" target="_blank" title="New Home Sales report">210,000 new homes for sale</a> nationwide.<br />
June's data is a major improvement over May, but it's possible that the true "new home market" may be softer than the statistics suggest. This is for several reasons.<br />
First, we're comparing June's sales data to the worst month in New Home Sales history.<br />
In May, sales of new homes totaled just 267,000 units nationwide. That's one-quarter fewer sales than in the <em>previous</em> worst month in New Home Sales history. May's sales levels were awful by <em>any</em> measure but June's improvement to 330,000 units remains <em>second</em>-worst sales levels ever posted.<br />
Second, although much improved, June's new home supply of 7.6 months is elevated versus the historical norm near 6.0 months. The last year has averaged 7.7 months.<br />
For buyers of new homes in Henderson, Colorado, this combination of low sales volume and higher-than-normal inventory may be a positive. It's the main reason why homebuilder confidence <a href="http://www.nahb.org/news_details.aspx?newsID=11078" target="_blank" title="NAHB builder confidence for June 2010">is reeling</a> and the downturn has opened some doors for big discounts and deals. Free upgrades and closing cost credits can make a well-priced home even more attractive.<br />
Plus, with mortgage rates at all-time lows and expected to rise, home affordability is may never be better.RealtorJennhttp://www.blogger.com/profile/12721664492463557604noreply@blogger.com0tag:blogger.com,1999:blog-120054462142642584.post-79738113374912162892010-07-20T14:36:00.000-06:002010-07-20T14:36:20.447-06:00Sagging Homebuilder Confidence Opens The Door For Good Deals<img alt="NAHB Housing Market Index July 2008-2010" height="302" src="http://bringtheblog.com/i/nahb-hmi-201007.png" style="float: right; margin-left: 5px; margin-right: 5px;" title="NAHB Housing Market Index July 2008-2010" width="216" />Builder confidence in the housing market slipped this month, according to the National Association of Homebuilders' monthly Housing Market Index.<br />
The Housing Market Index is actually a weighted composite of 3 separate surveys. One measures current single-family sales; one measures projected single-family sales; and one measures traffic of prospective buyers.<br />
All three surveys were down in July:<br />
<ul><li>Single-Family Sales : From 17 (June) to 15 (July)</li>
<li>Single-Family Project : From 22 (June) to 21 (July)</li>
<li>Buyer Foot Traffic : From 13 (June) to 10 (July)</li>
</ul><a href="http://www.nahb.org/news_details.aspx?newsID=11078" target="_blank" title="NAHB builder confidence for June 2010">The HMI's July reading of 14</a> puts confidence at its lowest point since April 2009.<br />
For home buyers in Henderson, Colorado , a drop in builder confidence could create an opportunity for negotiation.<br />
Remember, it wasn't too long ago that most builders were flush with home inventory, unable to find willing buyers. To help move product at that time, builders dropped prices and offered incentives including free upgrades. If confidence continues to sag going forward, home purchase deals of that nature may return -- especially as the foreclosure market gets larger.<br />
See, in the past, builders' main competition for buyers were the existing home sellers. Today, builders compete with the existing home sellers <em>and </em>the banks with REO.<br />
It's a terrific time to be a home buyer, in other words -- sellers are fighting for you. It's no wonder <a href="http://www.smartmoney.com/personal-finance/real-estate/home-sellers-have-little-leverage/" target="_blank" title="Sellers have little leverage story from SmartMoney">sellers have little leverage anymore</a>. Couple that with all-time low mortgage rates and affordability for homes is at an all-time high.<br />
If you're planning to buy a home later this year, you may want to consider moving up your time frame. The market looks ripe for good deals this summer.RealtorJennhttp://www.blogger.com/profile/12721664492463557604noreply@blogger.com0tag:blogger.com,1999:blog-120054462142642584.post-63338871328034295262010-07-20T07:01:00.000-06:002010-07-20T07:01:00.143-06:00Foreclosure Activity Slows Again In June 2010<img alt="Foreclosures per capita, June 2010" height="228" src="http://bringtheblog.com/i/foreclosures-per-household-201006.png" style="border: 1px solid black;" title="Foreclosures per capita, June 2010" width="450" /><br />
313,841 foreclosure filings were made in June, according to <a href="http://realtytrac.com/" target="_blank" title="RealtyTrac tracks foreclosures">foreclosure-tracking firm RealtyTrac</a>. The figure represents a 3 percent drop from May and 7 percent drop from June of last year. However, foreclosure filings remain relatively high nationwide.<br />
June marks the 16th straight month the filings topped 300,000. 1 in every 411 U.S. homes received some form of notice last month with foreclosure density varying wildly from state-to-state.<br />
Like everything else in real estate, it seems, foreclosures are a local phenomenon.<br />
The states with the highest foreclosures per capita were:<br />
<ul><li>Nevada : 1 foreclosure filing per 88 homes</li>
<li>Florida : 1 foreclosure filing per 171 homes</li>
<li>Arizona : 1 foreclosure filing per 189 homes</li>
</ul>The states with the lowest foreclosures per capita were:<br />
<ul><li>Vermont : 1 foreclosure filing per 26,051 homes</li>
<li>West Virgina : 1 foreclosure filing per 8,058 homes</li>
<li>South Dakota : 1 foreclosure filing per 6,528 homes</li>
</ul>Overall, 40 states beat the national Foreclosure Per Capita average and 10 states fell below. The sheer volume of REO, though, is creating interesting buying opportunities for first-timer buyers, move-up buyers, and real estate investors in Denver.<br />
Homes bought from banks are usually less expensive than non-foreclosure homes. This is one of the major reasons why distressed sales account for roughly <a href="http://www.realtor.org/press_room/news_releases/2010/06/may_strong_pace" target="_blank" title="Existing Home Sales report May 2010">30 percent of all home resales</a>. Less expensive, though, doesn't always mean "cheaper". Foreclosed homes are often sold as-is and may be defective or otherwise uninhabitable.<br />
Making repairs to get these homes into "living condition" can be costly.<br />
Therefore, if you're buying a foreclosed home, make sure you know what you're buying before you make your bid. Have a certified professional inspect the home to check for damage, and consider enlisting the help of a real estate agent to assist with negotiations and management of the contract.<br />
The process of buying a foreclosed home is different from buying a typical resale. Make sure you do your homework.RealtorJennhttp://www.blogger.com/profile/12721664492463557604noreply@blogger.com0tag:blogger.com,1999:blog-120054462142642584.post-58170441946549564772010-07-19T17:00:00.001-06:002010-07-19T17:00:02.395-06:0025 Cities In Which To Get A Bang For Your Homebuying Buck<img alt="Affordable cities for homebuyers" height="200" src="http://bringtheblog.com/i/dollar-value-homebuying.jpg" style="border: 1px solid black; float: right; margin-left: 5px; margin-right: 5px;" title="Affordable cities for homebuyers" width="225" />Home affordability is at an all-time high. Home values are still in recovery while mortgage rates continue to make new lows. But where are homes the <em>most </em>affordable?<br />
CNNMoney.com recently ran a piece titled "<a href="http://money.cnn.com/galleries/2010/moneymag/1007/gallery.best_places_affordable_homes.moneymag/index.html" target="_blank" title="CNNMoney story on Where Homes Are Affordable">Where Homes Are Affordable</a>", listing 25 communities around the U.S. in which median incomes are relatively high and median homes are relatively low. It's a housing market "bank for your buck" list.<br />
The top 10 cities as listed by the editors:<br />
<ol><li>Deerfield Beach, FL</li>
<li>Lafayette, IN</li>
<li>San Antonio, TX</li>
<li>Deltona, FL</li>
<li>Spring, TX</li>
<li>Glendale, AZ</li>
<li>Avondale, AZ</li>
<li>Bolingbrook, IL</li>
<li>Fishers, IN</li>
<li>Des Moines, IA</li>
</ol>Of the top 10, 2 picks are from the Southeast; 4 are from the Midwest; and 4 are from the Southwest. 2 are "major" cities and the rest are suburbs of bigger cities. Lafayette stands lone as a college town.<br />
The <a href="http://money.cnn.com/magazines/moneymag/bplive/2010/top25s/housing/index.html" target="_blank" title="CNNMoney story on Where Homes Are Affordable">rest of CNNMoney.com's 25 cities</a> follow a similar pattern -- larger suburbs geographically concentrated in the Midwest and Southwest. Surprisingly, though, New Jersey and Virginia do find themselves represented. Even the expensive Eastern Seaboard has its good buys.RealtorJennhttp://www.blogger.com/profile/12721664492463557604noreply@blogger.com0tag:blogger.com,1999:blog-120054462142642584.post-8987074142464978222010-07-08T08:07:00.000-06:002010-07-08T08:07:48.496-06:00June's Jobs Report Wasn't As Bad As The Headlines (And How You Can Take Advantage)<img alt="Net Job Gains July 2008 - June 2010" height="302" src="http://bringtheblog.com/i/nfp-net-new-jobs-201006.png" style="float: right; margin-left: 5px; margin-right: 5px;" title="Net Job Gains July 2008 - June 2010" width="216" />In June, for the first time since December 2009, the U.S. workforce shrank.<br />
According to the Bureau of Labor Statistics, the economy <a href="http://www.bls.gov/news.release/empsit.nr0.htm" target="_blank" title="Non-Farm Payrolls">shed 125,000 jobs</a> last month even as the Unemployment Rate dropped to 9.5 percent. The drop in the Unemployment Rate is being attributed to fewer Americans looking for work.<br />
At first glance, the jobs report looks weak but a deeper look shows something different.<br />
Excluding the 225,000 government Census workers that recently left the workforce, the total number of employed persons actually <em>grew</em> by 83,000 in June. That's 50,000 more working Americans as compared to May.<br />
And, since the start of the year, the U.S. workforce has grown by 857,000.<br />
Jobs growth is closely tied to economic growth because more working Americans means more disposable income which, in turn, stokes consumer spending. Job growth is better than job loss.<br />
Consumer spending makes up the majority of the U.S. economy so as consumer spending grows, investor mentality tends to shifts toward "return on principal" (i.e. stock markets) from "<em>safety</em> of principal" (i.e. bond markets).<br />
A move like this is often bad for home affordability because falling demand for bonds is tied to higher mortgage rates. In addition, with the growing number of Americans earning a paycheck, demand for homes is likely to increase, thereby helping to push home prices higher.<br />
Overall, therefore, the jobs report should be bad<em> </em>for rate shoppers and home buyers in Denver. Except the markets aren't reacting that way. For now, mortgage rates are slightly improved since the jobs report's release.<br />
Perhaps Wall Street is watching the wrong figures, but don't let that be <em>your </em>loss. If you're shopping for a mortgage, a home, or both, now may be your best time to make a move- while rates are still low, with home prices down- before traders change their tune.<br />
Because when markets change, it'll likely happen fast.RealtorJennhttp://www.blogger.com/profile/12721664492463557604noreply@blogger.com0tag:blogger.com,1999:blog-120054462142642584.post-80912756894640143512010-07-05T23:00:00.000-06:002010-07-05T23:00:01.517-06:00The 1 Force That Can Really Change A Mortgage Rate<img alt="Inflation and mortgage rates" height="250" src="http://bringtheblog.com/i/inflation-changes-mortgage-rates.jpg" style="border: 1px solid black; float: right; margin-left: 5px; margin-right: 5px;" title="Inflation and mortgage rates" width="220" />All day, every day, conforming and FHA mortgage rates in Colorado are in flux. Rates move in response to <em>hundreds</em> of factors which exact varying levels of influence.<br />
Among the <em>biggest</em> influences on mortgage rates is inflation. When inflation is unexpectedly high, mortgage rates tend to rise quickly. Conversely, when inflation is unexpectedly low, rates tend to fall quickly.<br />
But what is inflation?<br />
By definition, inflation is when a currency loses its value; when what used to cost $1.00 now costs $1.10.<br />
As <em>consumers</em>, we recognize inflation by the items we buy on a daily basis becoming more expensive. However, it's not that goods are more expensive -- it's that the dollars we're using to buy them have become worth less.<br />
With respect to mortgage rates, this is a big deal because mortgage rates are directly related to the price of a special type of bond called a mortgage-backed bond.<br />
On Wall Street, mortgage-backed bonds are priced, bought, and sold in U.S. dollars so as inflation renders those dollars less valuable, so it does to mortgage-backed bonds as well. It's a chain reaction by which mortgage bonds lose value, leading investors sell them, causing bond prices to fall on the excess supply.<br />
And, because mortgage rates move opposite of bond prices, as inflation takes hold, mortgage rates rise.<br />
Lately, inflation has been exceptionally low. The Federal Reserve acknowledged as much in <a href="http://www.federalreserve.gov/newsevents/press/monetary/20100623a.htm" target="_blank" title="FOMC Press Release June 2010">its last statement to the market</a>s, and <a href="http://online.wsj.com/article/SB10001424052748703964104575334562265693580.html" target="_blank" title="Inflation and PCE are lower than expected">available data backs that position</a>. This, after predictions that inflation would be "<a href="http://online.wsj.com/article/SB10001424052748704375604575023632319560448.html" target="_blank" title="Inflation "runaway" call for 2010">runaway</a>" in 2010.<br />
The Cost of Living is up just modestly this year and it's helping mortgage rates stay low. And, so long as it lasts, the cost of owning a home in Belle Creek will remain relatively inexpensive.RealtorJennhttp://www.blogger.com/profile/12721664492463557604noreply@blogger.com0tag:blogger.com,1999:blog-120054462142642584.post-42068350885707177802010-07-05T20:40:00.000-06:002010-07-05T20:40:44.411-06:00How To Use A Fire Extinguisher In Your Home<object data="http://www.youtube.com/v/iI7f2DBkmYQ&hl=en_US&fs=1&" height="272" type="application/x-shockwave-flash" width="448"> <param name="allowFullScreen" value="true" /><param name="allowscriptaccess" value="always" /><param name="src" value="http://www.youtube.com/v/iI7f2DBkmYQ&hl=en_US&fs=1&" /><param name="allowfullscreen" value="true" /></object> <br />
In 2006, in the U.S., a person died in an in-home fire every 2 hours, 42 minutes, on average; someone was injured every 32 minutes. Nearly $7 billion of property damage was caused.<br />
In this <a href="http://www.youtube.com/watch?v=iI7f2DBkmYQ" target="_blank" title="How to choose and use a fire extinguisher">2-minute video from Lowe's</a>, you'll get a basic education on fire extinguishers:<br />
<ul><li>How to pick the right fire extinguisher for the right job</li>
<li>Where to place fire extinguishers in a home</li>
<li>How to use the "PASS" technique on a fire</li>
</ul>Keeping your household safe from fire requires preparation, and part of that preparation is keeping fire extinguishers on-hand, and ready for use. Fire deaths are preventable -- make sure your home is properly equipped.RealtorJennhttp://www.blogger.com/profile/12721664492463557604noreply@blogger.com0tag:blogger.com,1999:blog-120054462142642584.post-10853601657521821182010-07-02T09:51:00.000-06:002010-07-02T09:51:16.626-06:00Was The Pending Home Sales Report Really That Bad? It Depends Who You Ask -- Buyer Or Seller.<img alt="Pending Home Sales Nov 2008 to May 2010" height="302" src="http://bringtheblog.com/i/pending-home-sales-201005.png" style="border: 0pt none; float: right; margin-left: 5px; margin-right: 5px;" title="Pending Home Sales Nov 2008 to May 2010" width="216" />The Pending Home Sales Index plunged in May 2010, just one month after the expiration of the federal home buyer tax credit program.<br />
The Pending Home Sales Index is now at <a href="http://www.realtor.org/press_room/news_releases/2010/07/phs_drop" target="_blank" title="Pending Home Sales report May 2010">a record-low level</a>.<br />
A "pending home sale" is an existing home under contract to sell, but not yet closed. According to the National Association of Realtors®, 80 percent of homes under contract <a href="http://www.realtor.org/research/research/phsbackground" target="_blank" title="Pending Home Sales Methodology">close within 60 days</a>.<br />
Because of this timeline, we can expect the summer's Existing Home Sales to be weak, too. With fewer homes going under contract, fewer homes can close.<br />
On the surface, May's Pending Home Sales Index looks like terrible news for housing. And, if you're a seller, it just might be. But, if you're a <em>buyer</em>, the story reads differently. Just consider the market conditions.<br />
A broad look at the housing market shows:<br />
<ol><li>Home supplies are rising in most markets</li>
<li>Home sales are falling in most markets</li>
<li>Mortgage rates are <a href="http://www.freddiemac.com/pmms/release.html?week=26&year=2010" target="_blank" title="Freddie Mac PMMS survey July 1 2010">at all-time lows</a></li>
</ol>In other words, in most markets, more sellers are competing for fewer buyers, and the "winning" buyers are financing their homes at the lowest rates in history.<br />
It's an <em>excellent</em> time to be a home buyer in Denver.RealtorJennhttp://www.blogger.com/profile/12721664492463557604noreply@blogger.com0tag:blogger.com,1999:blog-120054462142642584.post-74284155335927994972010-06-25T06:22:00.000-06:002010-06-25T06:22:19.834-06:00A Simple Explanation Of The Federal Reserve Statement (June 23, 2010 Edition)<img alt="Putting the FOMC statement in plain English" height="186" src="http://bringtheblog.com/i/FOMC-Announcement.jpg" style="border: 1px solid black; float: right; margin-left: 5px; margin-right: 5px;" title="Putting the FOMC statement in plain English" width="222" />Today, in its first meeting in 5 weeks, the Federal Open Market Committee voted 9-to-1 to leave the Fed Funds Rate unchanged.<br />
The Fed Fund Rate remains within its target range of 0.000-0.250 percent.<br />
In its press release, the FOMC said that, since April, "the economic recovery is proceeding" and that the jobs market "is improving gradually". Business spending "has risen significantly", too, with the exception of commercial real estate.<br />
Today's statement is the 8th straight press release in which the Fed shows optimism for the U.S. economy, dating back to June 2009. Since that time, the Fed has terminated all of the programs it created to support the economy through the economic crisis.<br />
The recession is widely <a href="http://en.wikipedia.org/wiki/Recession#United_States_2" target="_blank" title="Recession on Wikipedia">believed to be over</a>.<br />
And, although the Fed's statement acknowledged economic growth, it did highlight lingering threats, too.<br />
<ol><li>Employers are still reluctant to hire new workers</li>
<li>European debt concerns could spill-over to the U.S.</li>
<li>Bank lending is contracting</li>
</ol>Also, as expected, the Fed re-affirmed its plan to hold the Fed Funds Rate near zero percent "for an extended period", citing that "inflation has trended lower" recently.<br />
Mortgage market reaction has been positive thus far. Mortgage rates in Colorado are slightly improved post-FOMC.<br />
The FOMC's next scheduled meeting <a href="http://www.federalreserve.gov/monetarypolicy/fomccalendars.htm" target="_blank" title="FOMC meeting calendar">is August 10, 2010</a>.RealtorJennhttp://www.blogger.com/profile/12721664492463557604noreply@blogger.com0tag:blogger.com,1999:blog-120054462142642584.post-22744691917584233552010-06-23T16:04:00.003-06:002010-06-23T16:04:00.813-06:00May 2010 Existing Home Sales Is Better Than The Headline Data Suggests<img alt="Existing Home Sales May 2009-May 2010" height="302" src="http://bringtheblog.com/i/existing-home-sales-201006.png" style="float: right; margin-left: 5px; margin-right: 5px;" title="Existing Home Sales May 2009-May 2010" width="216" />Existing Home Sales <a href="http://www.realtor.org/press_room/news_releases/2010/06/may_strong_pace" target="_blank" title="Existing Home Sales report May 2010">dropped in May</a> for the first time in 3 months but still managed to post its second-highest since November 2009, buoyed by the expiring federal tax credit program.<br />
An "existing home" is a home that cannot be considered new construction; a resale of an existing home. Existing Home Sales fell 2.2 percent in May.<br />
The press is calling the drop in sales "<a href="http://www.google.com/hostednews/afp/article/ALeqM5g-1tVeJh_8kfpMxDH4y9LJAAn-UA" target="_blank" title="Existing Home Sales story May 2010">unexpected</a>" and <a href="http://www.bankrate.com/financing/federal-reserve/existing-home-sales-disappoint/" target="_blank" title="Existing Home Sales story May 2010">disappointing</a>, but a deeper look at the data shows the news isn't as bad as it first appears.<br />
First, on a regional basis, sales were mostly solid. Only the Northeast region posted a loss. The West even managed a gain.<br />
<ul><li>Northeast : -18.3 percent</li>
<li>Midwest : 0.0 percent</li>
<li>South : +0.5 percent</li>
<li>West : +4.9 percent</li>
</ul>Second, the supply of homes for sale <a href="http://www.realtor.org/ro/research/21582c6c30be1217322cdb9aebaf4a59/rel1005ehs.pdf" target="_blank" title="Existing Home Sales historical data">dropped to 8.3 in May</a> and, because home prices are based on supply and demand, this is a positive for pricing.<br />
By comparison, in 2008, the average existing home inventory was 10.4 months.<br />
And, lastly, in May, first-time home buyers represented 46 percent of all buyers. The number was likely buoyed by the tax credit program but that doesn't damper the fact that first-time buyers provide a support floor for the housing market. Keep in mind that, in a 'normal' market, first time homebuyers make up about 1/3 of homebuyers.<br />
First-time buyers in Denver enable "existing owners" to move-up to bigger homes, which, in turn, trickles up to the mid-size and jumbo markets.<br />
Analysts expected more from May's numbers and that may explain why the reaction to the data is generally negative. However, in many cities, home resales did just fine.RealtorJennhttp://www.blogger.com/profile/12721664492463557604noreply@blogger.com0tag:blogger.com,1999:blog-120054462142642584.post-14098700236187659662010-06-21T07:18:00.000-06:002010-06-21T07:18:08.618-06:00The Largest Historic Homes In The United States<img alt="The Biltmore Estate in Asheville, NC" height="186" src="http://bringtheblog.com/i/largest-home-biltmore.jpg" style="border: 1px solid black; float: right; margin-left: 5px; margin-right: 5px;" title="The Biltmore Estate in Asheville, NC" width="230" />In 2009, the median size of new homes started <a href="http://www.nahb.org/generic.aspx?genericContentID=134543#top3" target="_blank" title="NAHB study on home size">was roughly 2,100 square feet</a>. This figure was down from 2,200 square feet between 2005-2007 which, itself, was down from 2,350 in 2004.<br />
Homes are getting smaller across the United States.<br />
But, as compared to the nation's <em>largest </em>homes, the shrinking is laughable. The Biltmore Estate, built in 1895 by George Washington Vanderbilt II, <a href="http://en.wikipedia.org/wiki/Biltmore_Estate" target="_blank" title="Biltmore Estate">measures 175,000 square feet</a> -- 83 times the size of a typical home today.<br />
The Biltmore Estate in Asheville, North Carolina is the largest home in the country and, meanwhile, <em>another </em>Vanderbilt-built property built in 1895 checks in at number two. <a href="http://en.wikipedia.org/wiki/The_Breakers" target="_blank" title="The Breakers on Wikipedia">The Breakers</a>, in Newport, Rhode Island, measures 165,000 square feet and cost $150 million to build in today's dollars, adjusted for inflation.<br />
Both homes are open to the public.<br />
The next three largest U.S. estates in terms of square footage are:<br />
<ul><li><a href="http://en.wikipedia.org/wiki/Oheka_Castle" target="_blank" title="Oheka Castle">Oheka Castle</a> in Huntington, New York (109,000 square feet)</li>
<li><a href="http://en.wikipedia.org/wiki/Winterthur_Museum_and_Country_Estate" title="Winterthur Museum and Country Estate">Winterthur</a> in Winterthur, Delaware (96,582 square feet)</li>
<li><a href="http://en.wikipedia.org/wiki/Meadow_Brook_Hall" title="Meadow Brook Hall">Meadow Brook Hall</a> in Rochester Hills, Michigan (88,000 square feet)</li>
</ul>Hearst Castle, arguably the most famous "large home" in the country, measures 60,645 square feet and ranks 7th.<br />
See the complete list of <a href="http://en.wikipedia.org/wiki/Largest_Historic_Homes_in_the_United_States" target="_blank" title="Largest Historic Homes in the United States on Wikipedia">Largest Historic Homes In The United States</a>, including their build date and architecture style, on Wikipedia.RealtorJennhttp://www.blogger.com/profile/12721664492463557604noreply@blogger.com0tag:blogger.com,1999:blog-120054462142642584.post-57990529792269866962010-06-18T07:36:00.000-06:002010-06-18T07:36:35.355-06:00The Home Buyer Tax Credit Extension Has Not Been Passed Into Law (Yet)<img alt="Tax credit was not extended -- yet" height="239" src="http://bringtheblog.com/i/tax-credit-fact-fiction.jpg" style="border: 1px solid black; float: right; margin-left: 5px; margin-right: 5px;" title="Tax credit was not extended -- yet" width="180" />As its June 30, 2010 closing deadline approaches, the federal home buyer tax credit is back in the news.<br />
Unfortunately, the headlines are misleading.<br />
Contrary to what you may have read (or heard), the federal home buyer tax credit has <em>not </em>been extended past June 30, 2010. At least not yet. And here's why there's confusion.<br />
Look at these headlines from earlier this week:<br />
<ul><li>Senate Extends Date On Home-Buying Tax Credit (<a href="http://www.philly.com/philly/business/homepage/20100616_Settlement_date_extended_for_home-buying_credit.html#axzz0rACX74vY" target="_blank" title="Inquirer story on tax credit">Philadelphia Inquirer</a>)</li>
<li>U.S. Senate Approves Extension Of Home Buyer Tax Credit (<a href="http://www.nasdaq.com/aspx/stock-market-news-story.aspx?storyid=201006161548dowjonesdjonline000654&title=us-senate-approves-extension-of-home-buyer-tax-credit" target="_blank" title="NASDAQ story on tax credit">NASDAQ</a>)</li>
<li>Senate Approves Home Tax Credit Extension (<a href="http://www.google.com/hostednews/ap/article/ALeqM5gyeaY6RTkGpP0yC5IUaTXUXLpe6AD9GCIFFO0" target="_blank" title="Reuters story on tax credit">Reuters</a>)</li>
</ul>Nothing above is factually incorrect, but each neglects a key piece of the country's law-making process -- it takes more than the Senate to pass a law. For <a href="http://en.wikipedia.org/wiki/Bill_%28proposed_law%29" target="_blank" title="What is a bill? on Wikipedia">a bill to become a law</a>, it must pass the Senate <em>and </em>the House of Representatives and <em>then</em> it must be ratified by the President.<br />
To date, we've only cleared just one of those 3 steps.<br />
This means that the federal home buyer tax credit has <em>not </em>been formally extended. As of now, it's still in discussion. Ultimately, though, if the extension <em>does</em> pass, it's expected to extend the closing date deadline for Henderson and Denver home buyers beyond the original June 30, 2010 date into September 2010.<br />
Homeowners must still have been in contract as of April 30, 2010 to claim up to $8,000 in federal tax credits.RealtorJennhttp://www.blogger.com/profile/12721664492463557604noreply@blogger.com0tag:blogger.com,1999:blog-120054462142642584.post-7131147102852876452010-06-17T09:54:00.000-06:002010-06-17T09:54:21.436-06:00Good News For Sellers : Housing Starts Fall To 1-Year Low In May 2010<img alt="Housing starts June 2008 - May 2010" height="302" src="http://bringtheblog.com/i/housing-starts-201005.png" style="float: right; margin-left: 5px; margin-right: 5px;" title="Housing starts June 2008 - May 2010" width="216" />Single-family housing starts plummeted to a one-year low in May, just 30 days after soaring to a 20-month high. It's no wonder <a href="http://www.nahb.org/news_details.aspx?newsID=10938" target="_blank" title="NAHB builder confidence for June 2010">home builders are confused</a>.<br />
Against a revised April figure, <a href="http://www.census.gov/pub/const/newresconst.pdf" target="_blank" title="Housing Starts report">Housing Starts fell 97,000 units in May</a>, a figure representing almost one-fifth of the total market size.<br />
It's the worst showing for Housing Starts since<em> </em>May 2009, a surprise to builders and economists alike.<br />
Furthermore, single-family Building Permits plunged in May, too -- down 10 percent from April. A permit is a certification from local government that authorizes home construction.<br />
Housing permits are a precursor to Housing Starts with 82% of homes starting construction <a href="http://www.census.gov/const/pct_authtostart_cust.xls" target="_blank" title="Census Bureau construction stats">within 60 days of permit-issuance.</a> Fewer permits, therefore, directly reduces the number of new homes coming to market in the coming months.<br />
For home buyers in Henderson , this should create a sense of urgency.<br />
Home prices are based on supply and demand and supply appears to be falling about the same time that economists predict <a href="http://money.cnn.com/2010/06/15/real_estate/new_housing_bubble/" target="_blank" title="Experts call for a surge in home demand">a surge in home demand</a>. It could spell rising home prices and a complete loss of negotiation power with home sellers.<br />
For now, though, home affordability remains high with properties cheap and mortgage rates near all-time lows. If you plan to buy a home later this year, the May 2010 Housing Starts data may be a reason to move up your timeframe a bit.RealtorJennhttp://www.blogger.com/profile/12721664492463557604noreply@blogger.com0tag:blogger.com,1999:blog-120054462142642584.post-52485977889638882272010-06-15T08:03:00.000-06:002010-06-15T08:03:56.568-06:00Shopping And Paying Bills Online? Here are Methods To Protect Your Online Financial Identity<object data="http://www.msnbc.msn.com/id/32545640" height="245" id="msnbc4d4902" type="application/x-shockwave-flash" width="420"> <param name="FlashVars" value="launch=36800910&width=420&height=245" /><param name="allowScriptAccess" value="always" /><param name="allowFullScreen" value="true" /><param name="wmode" value="opaque" /><param name="src" value="http://www.msnbc.msn.com/id/32545640" /><param name="name" value="msnbc4d4902" /><param name="flashvars" value="launch=36800910&width=420&height=245" /><param name="allowfullscreen" value="true" /></object> <br />
In May 2010, Retail Sales at non-store retailers <a href="http://www.census.gov/retail/marts/www/marts_current.html" target="_blank" title="Retail Sales report May 2010">topped $29 billion</a>, up 16 percent from May 2009. Clearly, Americans are doing an increasing amount of shopping online. And we're paying our bills online, too.<br />
But how well are we protecting our identities?<br />
In <a href="http://today.msnbc.msn.com/id/26184891/vp/37639111#36800910" target="_blank" title="Online Financial Security from NBC The Today Show">this 5-minute piece</a> from NBC's The Today Show, you'll learn the basics of online fraud and methods to minimize the likelihood of identity theft. Furthermore, the tips go beyond the basic "choose a challenging password". For example, you'll hear about:<br />
<ul><li>Why you shouldn't pay bills from a coffee shop</li>
<li>Who might be hiding behind an unprotected public wifi network</li>
<li>The dangers of storing credit card numbers with an online retailer</li>
</ul>And, although, at one point, the interviewee goes over the top with respect to spyware and anti-phishing prevention, the point being made is a good one -- you can't be too careful with your online financials and common sense goes a long way.RealtorJennhttp://www.blogger.com/profile/12721664492463557604noreply@blogger.com0tag:blogger.com,1999:blog-120054462142642584.post-22451382420162896772010-06-14T08:20:00.000-06:002010-06-14T08:20:21.401-06:00Change Your Air Filters Monthly (But Don't Go Cheap)<img alt="3M Filtrete for HVAC units" height="260" src="http://bringtheblog.com/i/filtrete.jpg" style="float: right; margin-left: 10px; margin-right: 10px;" title="3M Filtrete for HVAC units" width="220" /><br />
As the mercury rises into the summer months, don't forget to change your home's air filters regularly. It not only extends the life of your HVAC unit, but can help keep your energy costs down, too.<br />
Not all air filters are created alike, however. Don't go cheap.<br />
Your local hardware store carries a variety of air filters ranging in price from less than a dollar to $20 or more per filter. They're all purported to do the same job, but after watching this<a href="http://www.youtube.com/watch?v=lh4dUco7qa4&feature=related" target="_blank"> 1-minute video</a>, you'll see why cheaper isn't necessarily better.<br />
Airborne particles are smaller than most mesh filters. Pleated filters are recommended instead.<br />
<br />
Most high-quality air filters start around $11 and can be <a href="http://www.amazon.com/3M-Filtrete-6-Pack-Allergen-Reduction/dp/B000KERAY0/ref=pd_bxgy_hi_img_b" target="_blank" title="Filtrete air filters on Amazon.com">purchased in bulk</a> at discounts of up to 20 percent. 3M's Filtrete line of products is a popular, well-selling brand and can last up to 3 months.<br />
If your home has shedding pets or is dust-prone, consider changing them monthly.RealtorJennhttp://www.blogger.com/profile/12721664492463557604noreply@blogger.com0tag:blogger.com,1999:blog-120054462142642584.post-1311109276286828812010-06-10T07:54:00.000-06:002010-06-10T07:54:43.506-06:00Bank Reposessions Reach Record Levels For The Second Straight Month<img alt="Foreclosure concentration, by state (May 2010)" height="370" src="http://bringtheblog.com/i/foreclosure-concentration-201005.png" style="border: 1px solid black; float: right; margin-left: 5px; margin-right: 5px;" title="Foreclosure concentration, by state (May 2010)" width="200" /><br />
According to foreclosure-tracking firm <a href="http://realtytrac.com/" onclick="javascript:pageTracker._trackPageview('/outbound/article/http://realtytrac.com');" target="_blank" title="RealtyTrac tracks foreclosures">RealtyTrac.com</a>, bank repossessions reached record levels for the second straight month in May, topping 93,000 properties nationwide.<br />
As compared to May 2009, all 50 states now show an increase in annual REO activity.<br />
Data like that won't surprise today's active home buyers in Brighton or Denver. Foreclosed homes are prevalent, available and accounted for <a href="http://www.realtor.org/press_room/news_releases/2010/05/ehs_april" target="_blank" title="Existing Home Sales report April 2010">one-third of all home resales made in April</a>.<br />
Furthermore, total foreclosure actions -- the sum of REO, default notices, and foreclosure auctions in May -- topped 300,000 for the 15th straight month.<br />
Foreclosures remain a huge influence on the housing market.<br />
However, two interesting trends emerged in the data:<br />
<ol><li>9 of the top 10 metro areas for foreclosure posted annual activity decreases</li>
<li>Each of the top 4 states for Foreclosures per Household posted annual activity decreases</li>
</ol>We can infer, therefore, that foreclosure activity may be in <b>permanent decline</b> in the areas hardest hit through 2007, 2008, and 2009. In 2010, the data shows, foreclosures are waning.<br />
This is reason for optimism -- especially as <a href="http://online.wsj.com/article/SB10001424052748704726104575290841574349032.html" target="_blank" title="FHA delinquencies are slowing">FHA delinquencies slow</a> nationwide. As fewer homeowners go delinquent, the pace of foreclosures will slow further and that should help boost home values on every block in the country.<br />
If you've been considered bank-owned homes for your own purchase, give a look at the RealtyTrac foreclosure report. It's provides insight on a state-by-state level, and in the nation's largest metropolitan areas.<br />
<br />
Then, to complement your research, talk to your real estate about the foreclosure market and what opportunities may exist. Competition for bank-owned homes can be fierce at times, but there's plenty of "deals" out there.<br />
You just have to know where to look.RealtorJennhttp://www.blogger.com/profile/12721664492463557604noreply@blogger.com0tag:blogger.com,1999:blog-120054462142642584.post-32755385479586598322010-06-09T08:33:00.000-06:002010-06-09T08:33:32.280-06:00Conforming Loan Costs Are Rising, Says Freddie Mac<img alt="Mortgage discount points are rising" height="288" src="http://bringtheblog.com/i/mortgage-rates-down-fees-up.jpg" style="border: 1px solid black; float: right; margin-left: 5px; margin-right: 5px;" title="Mortgage discount points are rising" width="220" />Mortgage rates may be dropping, but mortgage <em>costs</em> are not.<br />
According to Freddie Mac, the average required discount points on a conforming mortgage rate are higher by 0.1 percent since early-May.<br />
A "discount point" is prepaid mortgage interest; an up-front fee paid by a borrower in exchange for a lower mortgage rate. In most cases, discount points are tax-deductible.<br />
Tax-deductible or not, though, rising costs are rising costs and Freddie Mac glosses over it. In <a href="http://freddiemac.com/pmms/release.html?week=22&year=2010" target="_blank" title="Freddie Mac PMMS survey">its weekly press release</a>, the government group offers mortgage rate comparisons to weeks prior, but doesn't do the same for required points.<br />
The press <a href="http://online.wsj.com/article/SB10001424052748703340904575284781556303628.html?mod=WSJ_FamilyFinance_MoreHeadlines" target="_blank" title="WSJ story about mortgage rates and PMMS">fails to mention discount points entirely</a>.<br />
An increase of 1/10 percent in discount points costs homebuyers and refinancing households in Henderson an extra $100 per $100,000 borrowed.<br />
The hike reminds us that there's more to a mortgage than just its rate -- costs matter, too. And if you've only been watching the headlines, you would have missed how costs are rising.RealtorJennhttp://www.blogger.com/profile/12721664492463557604noreply@blogger.com0tag:blogger.com,1999:blog-120054462142642584.post-48720372198473162362010-06-04T09:33:00.001-06:002010-06-04T09:35:22.496-06:00Uncharted Territory- the End of the Tax CreditThe end of April marked an historic event.<span style="font-family: Calibri, Verdana, Helvetica, Arial;"><span style="font-size: 11pt;"></span></span> <br />
<div><br />
</div><div>Think about it. Never before in American history has there been a homebuyers' tax credit. On April 30th, it expired.</div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhQFZtwiyc7d6hECMJML5ZMrEflBZgHBW2wzWqOBHrrt8TKSBeJUrwcm4P4QYtJJd0jp-FZzs67rVl5CqmLUKbefPnM5zNjLq2IC1ZQhQTYeStH1TBh-UmJhN1FGWBYZFdNLInkDhyphenhyphenL63I/s1600/uncharted.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhQFZtwiyc7d6hECMJML5ZMrEflBZgHBW2wzWqOBHrrt8TKSBeJUrwcm4P4QYtJJd0jp-FZzs67rVl5CqmLUKbefPnM5zNjLq2IC1ZQhQTYeStH1TBh-UmJhN1FGWBYZFdNLInkDhyphenhyphenL63I/s320/uncharted.jpg" /></a></div><div><div style="text-align: center;">We are in uncharted territory</div></div><div><div style="text-align: center;"><br />
</div></div><div>If you were planning on buying your first home, or even replacing the home that you had lived in for 5 of the last 8 years, you would get <a href="http://www.irs.gov/newsroom/article/0,,id=204671,00.html">FREE money from the government</a> if you were under contract by the last day of April. That contract would have to close by the end of this month to qualify for the tax credit.</div><div><br />
</div><div>So, what impact will this have on our market? No one actually knows. The first deadline for the credit was scheduled for the end of November, 2009. Eager first time homebuyers rushed to the closing table to make the November 30 deadline- in spite of the holiday weekend that bumped right into the deadline.</div><div><br />
</div><div>This time, however, <a href="http://www.nytimes.com/2010/04/27/business/27home.html">the impact</a> seemed slightly less notable. Many houses went under contract well before the April 30 deadline, and closings were spread out over April, May and June. There is speculation that some home sales were "borrowed" from the coming months because of the tax credit, and this certainly has some merit. </div><div><br />
</div><div>Meanwhile, showings of for sale properties dropped. If you are trying to sell a home, you have seen this effect. It's time to sit tight and have patience. </div><div><br />
</div><div>As I said, we are in uncharted territory.</div>RealtorJennhttp://www.blogger.com/profile/12721664492463557604noreply@blogger.com0tag:blogger.com,1999:blog-120054462142642584.post-57911311344962581722010-05-20T13:33:00.000-06:002010-05-20T13:33:49.192-06:00Asking for Referrals the Right Way!I just got an email from another agent here in town. At the end of her signature, in <i>quotation marks</i> no less, it says Oh, by the way.... and asks her nearest and dearest to refer anyone who is thinking of buying or selling their home. This made me cringe.<br />
It wasn't the quotation marks. It wasn't the folksy, off-hand style (Oh! By the way! I just thought of something!!). It wasn't the fact that everyone from her best friends to her clients, to her business partners will get this request.<br />
It is all of those things together.<br />
Amazingly, I got <a href="http://www.brokeragentsocial.com/article/765/generating-referrals-from-people-you-know">an Article</a> by Dirk Zeller today about just this very thing. It is about asking for referrals from people you know.<br />
The whole article is worth reading, but one of the standout quotes was:<br />
<blockquote><span class="Apple-style-span" style="color: #555555; font-family: 'Times New Roman', 'Trebuchet MS', arial, serif;">Don’t merely use a throw away line like “Oh, by the way” before you ask for the referral. This tactic cheapens the referral process rather than raising it to the high level of honor and respect it deserves. The client can see right through this cheap technique.</span></blockquote>Wow. He read my mind! In a nutshell, if you respect your business and your clients, take the time to do things right. You are asking them to let you into their circle, and what's more, you are asking them to vouch for your professionalism and trustworthiness. This is a 2 way street, so show them the consideration you are asking them to show you, and you will see your referral business boom.RealtorJennhttp://www.blogger.com/profile/12721664492463557604noreply@blogger.com0tag:blogger.com,1999:blog-120054462142642584.post-13466704881314625962010-05-08T08:39:00.001-06:002010-05-08T08:39:00.393-06:00How Many Showings Does it Take?When selling your home, one of the "moving targets" is the number of showings to expect. Not surprisingly, the number of showings goes down during the holidays and during cold winter months when the weather is unpredictable. But different price points will also experience different levels of activity.<br />
Following is a breakdown by price level of home many showings per month we experienced in the Denver Metro market for the first quarter of 2010:<br />
<br />
<ul><li>Overall, the number of showings per month for all price categories was 8.7 per home.</li>
<li>Homes under $250,000 saw an average of 10.5 showings per month, with the $50k-100k range seeing the highest number of showings per month at 15.</li>
<li>Homes from $250k-300k saw an average of 7.4 showings per month. Homes from $350k-400k were at 3.7 showings per month.</li>
<li>Homes in the higher price ranges, from $400,000 up, saw an average of 4.8 showings per month.</li>
</ul>The good news for those selling homes in the $250k-400k price range is that the number of showings increased year over year: from 4.7 in 2009 to 6.1 for 2010. Homes above that range increased from 3.4 to 4.8. Homes priced in the lower ranges held steady at 10.5 showings per month.<br />
Buyers are getting back out there, which is good news for all homeowners. With renewed interest and activity in residential real estate, we will see a ripple effect throughout the economy.RealtorJennhttp://www.blogger.com/profile/12721664492463557604noreply@blogger.com0tag:blogger.com,1999:blog-120054462142642584.post-81330082022654145502010-05-04T13:03:00.000-06:002010-05-04T13:03:23.655-06:00Hey- I Thought You Said that House was Under Contract?<div class="separator" style="clear: both; text-align: center;"></div><div style="margin-left: 1em; margin-right: 1em;"><img src="webkit-fake-url://D3487E8C-8ECF-4008-8058-9C994D1A05F8/image.tiff" /></div><div style="margin-left: 1em; margin-right: 1em;"><br />
</div><div style="margin-left: 1em; margin-right: 1em;"></div><div style="color: #186533; font: 9.0px Arial; margin: 0.0px 0.0px 9.0px 0.0px; text-align: center;"><span style="letter-spacing: 0.0px;"><b><span class="Apple-style-span" style="font-size: medium;">What Does “Under Contract” Mean? What Comes Next?</span></b></span></div><div style="font: 8.0px Arial; margin: 0.0px 0.0px 10.0px 0.0px;"><span style="letter-spacing: 0.0px;"><span class="Apple-style-span" style="font-size: medium;">Recently, I was driving through our neighborhood with a buyer. He was very interested in a property a few months ago, and had been considering making an offer. When I called the listing agent to let her know of our intent, she told me it had just gone “under contract” and was no longer available. When we drove past this property last week, the sign was still in the front yard. “I thought you said that home wasn’t available?” he asked. And it’s not. It is still “under contract”.</span></span></div><div style="color: #186533; font: 8.0px Arial; margin: 0.0px 0.0px 10.0px 0.0px;"><span class="Apple-style-span" style="font-size: medium;"> </span><span style="letter-spacing: 0.0px;"><b><span class="Apple-style-span" style="font-size: medium;">How properties go Under Contract, and what happens next.</span></b></span><span style="font: 8.0px Baskerville; letter-spacing: 0.0px color: #000000;"><span class="Apple-style-span" style="font-size: medium;"> </span></span></div><div style="font: 8.0px Arial; margin: 0.0px 0.0px 10.0px 0.0px;"><span style="letter-spacing: 0.0px;"><span class="Apple-style-span" style="font-size: medium;">When a buyer finds the right home, he or she makes an offer. This is presented on the Colorado Contract to Buy and Sell. It is a detailed contract with a schedule of dates, room for contingencies, attachments, concessions, offer price, financing arrangements and appraisal requirements, among other things. It is 12 pages long, and is designed to protect both buyer and seller during what is often the largest sales transaction private parties ever make.</span></span></div><div style="font: 8.0px Arial; margin: 0.0px 0.0px 10.0px 0.0px;"><span style="letter-spacing: 0.0px;"><span class="Apple-style-span" style="font-size: medium;">When buyers purchase a home, they want the assurance that they have thoroughly researched their purchase before the sale is final, and that no other buyer can purchase the property out from under them during this time. If the buyer and seller can agree on the initial terms, both parties will sign a binding contract that allows the buyer to do this research. The property is then “under contract”. This period usually lasts from 30-60 days. A short sale listing can take longer- sometimes several months.</span></span></div><div style="font: 8.0px Arial; margin: 0.0px 0.0px 10.0px 0.0px;"><span style="letter-spacing: 0.0px;"><span class="Apple-style-span" style="font-size: medium;">The buyer is then responsible for doing this research, and there is a time limit and an Earnest Money deposit submitted so that the seller is protected. </span></span></div><div style="font: 8.0px Arial; margin: 0.0px 0.0px 10.0px 0.0px;"><span style="letter-spacing: 0.0px;"><span class="Apple-style-span" style="font-size: medium;">These steps include applying for a loan, having a certified inspection of the property, obtaining title and title insurance, obtaining property insurance, reviewing any HOA documents, reviewing Improvement Location Certificates or surveys of property boundaries and making sure the property appraises.</span></span></div><div style="font: 8.0px Arial; margin: 0.0px 0.0px 10.0px 0.0px;"><span style="letter-spacing: 0.0px;"><span class="Apple-style-span" style="font-size: medium;">The For Sale sign remains in place during this process because the sale is not yet completed. Often times, the Realtor will place an “under contract” banner on the sign. The idea is that it “ain’t over ‘til it’s over,” so the sign remains in place until funds have been transferred and keys are passed to the buyers.</span></span></div>RealtorJennhttp://www.blogger.com/profile/12721664492463557604noreply@blogger.com0tag:blogger.com,1999:blog-120054462142642584.post-62314045545830594502010-04-22T17:56:00.000-06:002010-04-22T17:56:46.149-06:00Are Open Houses a Waste of Time?In a word: NO!<br />
But, I get ahead of myself. When I started in the Real Estate game, things were gloomy (to put it mildly). Foreclosures were everywhere and entire "<a href="http://www.denverpost.com/ci_4719353">ghost towns"</a> were created when people walked away from homes they saw no way of getting out from under.<br />
Those were bleak times. Many Realtors left the business and didn't look back. A couple of years ago, telling people you were a Realtor would garner a few snickers or sympathetic head shakes.<br />
So we saw signs go up in front of houses without brochure boxes, or worse, empty boxes. In my neighborhood, there hadn't been an open house in <i>several years</i>. I'm not kidding.<br />
But sometimes Old School is just what a neighborhood needs. I held an <a href="http://www.10813bellecreekblvd.besthomearound.com/">open house</a> last weekend in Belle Creek. I put signs and balloons at every entrance to the neighborhood. I walked to every home in the neighborhood (all 300+) and invited every neighbor. I posted on Twitter and Facebook. And I waited.<br />
And I reinforced what I've always felt about Belle Creek. It is a pretty special place to live, and people seem to want to be a part of this community. Right at 11am when the open house was to start, a young couple came through the door. Shortly after they left, another couple came along. During the time of the open house, I had about 25 people come through. When it was over, 6 more people rang the bell (after I left!) to see if they might have a look too.<br />
So, are Open Houses worth it? Only if you want to sell your house. If your Realtor is <i>not </i>holding open houses, maybe you should ask them why.RealtorJennhttp://www.blogger.com/profile/12721664492463557604noreply@blogger.com0