Tips for Getting Your Home SOLD

This market has created some unique challenges for sellers that need to get their home sold. You can not turn on the news, log on to your computer, or read a newspaper without being bombarded with reports about "The Credit Crisis", "States with the highest Number of Foreclosures or Short Sales", "Sub-Prime Mortgages",or "Banks going into Bankruptcy". There are some of us that just need to sell our home for any one of a number of reasons, like we had a baby and need more space, children moved out and need less space, moving out-of-state for a job or family, or getting divorced and do not want a big home or payment, anymore. So here is my advice on getting your home sold in this market.

I truely believe the phrase "what you resist, persists" and the way this translates into selling your home, stop reading all the bad Real Estate news! If you feel like you need to stay informed, save the old newspapers and pick them up after your home is sold. It is already known that the stock market and the economy to a great extent is driven by emotions; so don't let your emotions believe this is never going to sell because you may be right. There is another phrase that applies here and that is, "fake it, until you make it". If you are having problems believing your home will sell, try this one: take three of the brochures or flyers for your home and in big black letters write SOLD, then place these in places you will see several times a day. When you open that cabinet door or look in the mirror that brochure is staring back at you and say, "I am so happy & grateful now that my home is SOLD"!

Now you have to get your home ready for that perfect Buyer. Buyers make their decision on whether or not to purchase a home in 20 seconds after opening the door. Therfore, consider this 20 second rule with keeping the front door clean, maybe paint the door, polish the hardware, clean the cob webs out of the light fixture, sweep the front walk, add a wreath or a pumpkin or a potted plant, but keep this space always looking clean and welcoming. This would include leaving the porch light on, now that our days are shorter.

Another tip on making your home feel welcoming to Buyers is put a sign on the refrigerator saying," Thank you for taking the time to show our Home, please help yourself to a bottle of water or juice". Then keep your refrigerator stocked with bottled water or juice. This really only works well if the home is vacant. If the home is vacant, make sure every room has a light source or use a floor lamp. Timers on the light are sometimes a good idea as well.

Stay posted....on my next blog I will offer you some Home Staging Tips. If anyone uses these tips and has a comment I would love to hear your thoughts.

Successful Seller's in a Buyer's Market

I have been working on evaluating my business for 2007 and have found some similarities with the sellers that have been successful in achieving their goals and those that have not. I want to share the differnces that I have found. To say that this is a 'bad market' is only looking at one side of the market. The market is always going to sway one way or the other. Most people who are selling their home also need a place to live or to buy a home. If your goal in selling is to get top dollar on the sale of your home, then this is not the time to sell. However, if you also need to buy a home then take advantage of the huge inventory to choose from, the low interst rates, and the low prices on your purchase. I will share an example of some clients that were in the scenerio of having to sacrifice $10,000 to $20,000 on the sale of their home, then they turned around and saved $40,000 to $45,000 on their purchase. This couple was very clear on where and when they wanted to move. They were honestly thrilled with the prices in that area being lower then they anticipated and had no problem lowering the price on their current residence to move forward with their dream home.

I have also had sellers who were not able to get their homes sold. Understanding that when they purchased their first home in 2002, it was still a sellers market and they paid market value for their home. In 2007 home prices are declining, the market has shifted and to stay ahead of the market you have to lower your price to what the market will bare. If your thinking about a move in the near future, this is probably the best time to purchase and if you have to sell as well, focus your attention on where your going rather then focusing on what your leaving behind and the over all picture will be in your best interest.

The alternative is to wait for the market to turn around again and it will, then sell your home for top market value and purchase a home for top market value. I doubt you will find yourself ahead financially, but you have a good excuse for putting your life on hold a little longer.

I would love to hear your thoughts about the real estate market. Thanks

Denver Real Estate Report

I believe statistics and the actual numbers of what we have all seen in the Real Estate market in metro Denver paint a pretty clear and should have been a predictable picture for us to get to where we are. I have witnessed allot of finger pointing in an attempt to figure out who is to blame. It is easy to point the finger at the mortgage industry and say they should have known this would happen. A couple of years ago it was actually easier to obtain a Home Loan for $200,000. then it was to sign a lease for 6-12 months and cheaper. Colorado was one of only a few states that had unlicensed mortgage brokers and offered mortgages without rules. Meaning no income verification, stated income, no documentation loans for 100% financing. Then the low interest rates made refinancing an alternative to the high interest rates on credit cards and auto loans plus the tax benefits of deducting the interest on home loans; this made debt easier and more affordable then ever.

However, the banks offering home loans could not have provided these loans if the demand did not exist. Consumers or home buyers either first-time home buyers or those wanting bigger homes moving-up created the demand for more. We as Americans are innately optimistic and always believe that everything will just get better; which is why Adjustable Rate Mortgages were possible. Everyone thought their incomes would simply go up over time. Then something unexpected happened, corporate lay-offs, downsizing or large corporations went into bankruptcy. As the foreclosure and short-sale market increased, banks lost money.

The story does not end here. In 1997-2001 the Real Estate market in Colorado was in the top 5 in the nation for appreciation at approximately 18% per year. Large corporations were moving into the Denver metro area and creating a huge demand for housing. As the demand increased and the supply remained the same, prices soared. Colorado has lower property taxes then many other states, and had low land prices; so developers/builders moved in to provide the necessary supply to meet the demand in this high appreciating real estate economy. Many of these Builders purchased the land in 2000 with development to begin in 2004-2005. The Developers/Builders have the land purchased, the construction loans in place and then have to move forward, even though the demand has diminished some since the original plans were drawn up years earlier. However, they have choices the homeowner does not, they can offer huge incentives, lower prices and alternative financing options. The resell real estate market is struggling to compete.

This scenario is not unique to Colorado. Many staes have experienced a much greater decline then Colorado. Californa has experienced a huge decline in average home prices, but they a much more accustomed to their Real Estate hitting peaks and valleys. However, they continue to invest in Real Estate and make money on their investments.

I have been a licensed Real Estate Broker in Colorado since 1997 and a homeowner since 1989. When I purchased my first home in 1989, we had a similiar market with a drop in average home prices, lots of inventory of bank-owned or HUD Homes on the market. I am grateful we purchased a home at that time, even though the interest rates were over 10%. Interest Rates eventually dropped, we refinanced to a 15 year note at a 7% rate kept our housing payment the same and sold our home 8 years later for a profit of $65,000.00

The advantage prospective home buyers have today that did not exist then, is lower interest rates. In my opinion, this is the best time to purchase a home; lower home prices, lots to choose from and great interest rates. If you or someone you know is in the market for a home purchase; the time is now.

Renters Have Much to Gain by Pursing Home Ownership

A Qualified Mortgage Consultant Can Outline Your Options
Renters Have Much to Gain by Pursuing Home Ownership

CITY, ST – Buying a home vs. renting is a big decision that takes careful consideration, as most mortgage consultants will agree. But the rewards of home ownership are great. For many years, purchasing real estate has been considered an extremely profitable investment. It is an achievement that offers a sense of pride, financial stability and potential tax advantages.

Yes, there are certain responsibilities associated with owning a home. Landlords will often argue the benefits of renting, and for obvious reason. If you are renting, you’re helping them make their mortgage payment.

The numbers are staggering if you look at it this way. If you are paying $1,000 per month for an apartment, and you know your rent will increase 5% every year, then over the next five years you will pay your landlord $66,309. If you are currently renting a house, you may be paying much more than that each month. Either way, you gain no equity by shelling out this monthly housing expense and you certainly won’t benefit when the property value goes up!

However, if you were to purchase your own home or condominium, you would be well on your way toward building equity within that same five-year period. By choosing a fixed-rate loan program, you can have the comfort of knowing that your monthly mortgage payment will never go up. In fact, you would have the option of refinancing to a lower interest rate at some point in the future should interest rates drop, and this would cause your monthly mortgage commitment to go down.

In addition to building equity, there are tax advantages that come into play with home ownership. Depending on your tax bracket, owning a home is often less expensive than renting after taxes. Interest payments on a mortgage below $1 million are tax-deductible, and your mortgage consultant should help you evaluate the tax advantages of various loan scenarios, and share this information with your tax consultant to glean feedback on your behalf.

To find the loan program that is right for you, your mortgage consultant will need to evaluate your monthly household income, current assets and savings, as well as any monthly obligations you may have for credit card payments, car payments, child support, etc. These prequalification factors, along with the report of your credit score, will determine how much house you can afford and what interest rate you will pay for financing. It is also important to let your mortgage consultant know what your future goals are, because this will help narrow down which loan option is the best fit for your long-term needs.

There are many different types of loan programs available, including “low” and “no” down payment mortgage programs. These types of programs require the borrower to provide less than 3 percent of the loan amount as down payment. FHA lenders rule that the mortgage payment, including principal, interest, taxes and insurance (PITI) should not exceed 31 percent of your gross income, and the PITI plus other long-term debt (car payments, etc.) should not exceed 43 percent of your gross income.

Housing is an expense that takes a big bite out of the monthly budget. If you are a renter and feel that “home” is more than just someplace to hang your hat, think about the advantages of purchasing real estate. It may be time to take the step into building your personal net worth as a home owner.

If you would like to search available homes for sale in your area, please visit http://www.ShellieClark.com

Real Estate Trends in Colorado

Anyone planning to relocate to another state wants to know what the average property values are in the new location. Currently the annual rate of appreciation from 3rd quarter of 2004 to 3rd quarter of 2005 nationally is 12.95%. The states that rank the highest are Arizona at 34.90% and Florida at 26.83%. The appreciation rate during that same timeframe for Colorado is 5.99% on the average for the state and is ranked number 44th out of 51 states. This is a bit of a shock for homeowners in Colorado who purchased there current residence approxiamately 5-6 years ago when Colorado was in the top 5 for appreciation.

There are many theories as to why this happening, but it always boils down to supply and demand from Economics 101. We have a higher supply of homes on the market currently then we have had in the past decade. That is why people refer to this as a Buyer's market. It is my personal opinion that this is one of the best Buyers markets I have seen. There are alot of homes to choose from, prices are more competitve then ever, the interest rates are still low, and the many alternative financing options makes home ownership easier then ever for the First-time Home Buyer.

How long will this market last? I have no idea. Real estate is impacted by economic trends and with so many changes happening world-wide; it is hard to let history predict the future in real estate. I believe Colorado is one of the best places to live and as more and more natural disasters are happening along the coastal states people will want to move more inland. That certainly does not explain why Florida is #2 nationally for appreciation or why California is #6 with an annual appreciation rate of 21.07%.

If your thinking about purchasing a home in the future and you ask me if this is a good time to buy-my answer is yes. I can not tell you about future predictions, there are many experts that are better at predicting the future then I am.